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.