SRC-DPW H.B. 1916 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1916
By: Oliveira (Lucio)
Economic Development
5/14/1999
Engrossed


DIGEST 

Currently, worker training is a major issue for companies wishing to
relocate to Texas, and some economic development corporations would like to
be able to offer companies funds for job training to make relocating more
attractive to those companies. The ability to use economic development tax
money for job training could be a spur to economic development in areas
with an acute shortage of trained workers.  H.B. 1916 allows industrial
development corporations to use sales tax revenue for job training
expenditures.  

PURPOSE

As proposed, H.B. 1916 relates to funding certain job training expenditures
through taxes collected by certain industrial development corporations. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2(10), Article 5190.6, V.T.C.S. (Development
Corporation Act of 1979), to provide that the definition of "project" also
includes job training required or suitable for the promotion of development
and expansion of business described in this article, and makes a conforming
change. Creates new paragraphs from existing text.  

SECTION 2. Amends Section 3, Article 5190.6, V.T.C.S., to make conforming
and nonsubstantive changes.  

SECTION 3. Amends Section 4A(f), Article 5190.6, V.T.C.S., to make a
conforming change.  

SECTION 4. Amends Section 4B(a)(2), Article 5190.6, V.T.C.S., to make
conforming and nonsubstantive changes.  

SECTION 5. Amends Section 4C(b), Article 5190.6, V.T.C.S., to make
conforming and nonsubstantive changes.  

SECTION 6. Amends Article 5190.6, V.T.C.S., by adding Section 38, as
follows:  

Sec. 38.  Defines "average weekly wage." Authorizes a corporation to spend
tax revenue received under this article for job training offered through a
business enterprise only if it has committed in writing to create new jobs
paying the average weekly wage for the county, except as provided in
Subsection (c).  Authorizes a corporation to spend tax revenue received
under this article for job training offered through a business enterprise
only if the business enterprise has committed in writing to create new jobs
paying 90 percent of the average weekly wage for the county, if the county
unemployment rate for the preceding calendar year is 1.5 times the average
unemployment rate for the state.   Prohibits a corporation from spending
tax revenue received under this article in an amount that exceeds more than
one-half the actual cost of job training.  Prohibits a corporation from
using tax revenue received under this article for job training if other
state or federal funds dedicated  to job training are used on the project,
unless the county unemployment rate for the preceding calendar year is 1.5
times the average unemployment rate for the state.  

SECTION 7.Emergency clause. 
  Effective date: upon passage.