HBA-EDN, MPM C.S.H.B. 932 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 932
By: Solis, Jim
Economic Development
4/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, Texas lacks a statewide economic development planning process to
guide and improve longterm economic development.  Although the state's
Strategic Economic Development Plan set forth some broad goals, the plan
did not outline the long-term implications of current programs or its
recommendations for future programs.  Information relating to the effect of
certain activities on economic development could potentially help
communities to improve allocation and use of economic development
incentives.  In addition, this information could serve to illustrate the
effects that state economic development efforts may have on the educational
system, in improving per capita income and income distribution, in raising
employee skill levels and increasing wages, and on the availability of
health insurance and child care.  C.S.H.B. 932 requires the comptroller of
public accounts to collect and make available information prior to each
session for purposes of evaluating the effect of certain activities on
economic development in the state. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 932 amends the Government Code to require the comptroller of
public accounts (comptroller), before each regular session of the
legislature, to collect and make available information that: 

_lists the strategies in the General Appropriations Act identified as
meeting the statewide priority goal or service category of economic
development, if any, of each state agency and institution of higher
education; 

_lists all investments financed with money from the Texas growth fund;

_contains a summary of the information reported to the comptroller by each
4A and 4B industrial development corporation and a copy of the report
submitted by each of the 10 corporations with the largest total revenue in
the most recent fiscal year ending before the date the information compiled
is made available; 

_contains a summary of the required report on the effect of certain tax
provisions and information on the effect on revenues of allocation or
apportionment of taxable capital or taxable earned surplus; 

_contains a summary of reports the comptroller is required to submit by
other law to evaluate the effectiveness of tax provisions, including
certain biennial reports; 

_to the extent practicable, contains information on employment, capital
investment, and personal income relating to at least two of the provisions
on the following taxes: sales, excise and use tax, franchise tax, school
district property taxes, and any other tax generating more than five
percent of state tax revenue in the prior fiscal year.    

The bill provides that the information compiled by the comptroller must
cover the five-year period ending on the last day of the fiscal year ending
before the date the information is made available.  The bill authorizes the
comptroller to request information needed to compile the information
described by these provisions from any appropriate entity or agency.  The
bill requires each entity or agency to provide the information and requires
the Legislative Budget Board to provide information regarding strategies in
the General Appropriations Act. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 932 modifies the original by requiring the comptroller of public
accounts (comptroller) to collect and make available information relating
to certain economic development activities, rather than requiring the
comptroller to submit a report to the legislature and to the governor on
specified activities and projects. The substitute sets forth provisions
modifying the information that the comptroller is required to compile. The
substitute provides that the information must cover the five-year period
ending on the last day of the fiscal year ending before the date the
information is made available, whereas the report in the original covered
the six-year period ending on the last day of the fiscal biennium during
which the report was submitted.