SRC-MWN H.B. 931 77(R) BILL ANALYSIS Senate Research Center H.B. 931 By: Solis, Jim (Shapleigh) Business & Commerce 5/10/2001 Engrossed DIGEST AND PURPOSE Currently, Texas lacks a statewide economic development planning process to guide and improve longterm economic development. Although the Texas Strategic Economic Development Plan (19982008) lists some strategic economic development goals, the plan is not scheduled to be updated. A regularly updated statewide economic development plan could serve to help coordinate economic development efforts and account for the long-term effects of state infrastructure investments. H.B. 931 requires the Texas Department of Economic Development, in consultation with the comptroller of public accounts, to develop a comprehensive statewide economic development plan to be updated every five years. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Department of Economic Development in SECTION 1 (Section 481.104, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 481, Government Code, by adding Subchapter G, as follows: SUBCHAPTER G. STATEWIDE ECONOMIC DEVELOPMENT PLAN Sec. 481.101. COORDINATED ECONOMIC DEVELOPMENT PLAN. Requires the Texas Department of Economic Development (department), in consultation with the comptroller, to develop a coordinated, comprehensive economic development plan to provide for the orderly development and management of economic development in this state. Requires the plan to include certain provisions. Sec. 481.102. INITIAL PLAN; UPDATES. (a) Requires the department, not later than September 1, 2002, to adopt the comprehensive state economic development plan. (b) Requires each fifth following year the department, in consultation with the comptroller, to update the plan. Sec. 481.103. USE OF PLAN. (a) Requires the state economic development plan to be a guide to state economic development policy. Requires the department to take the plan into consideration in matters coming before it. (b) Requires the department to disseminate the plan to local governments and to encourage the local governments to use the suggested standards to improve efficient allocation and use of economic development resources. (c) Authorizes local economic development efforts that produce a cost to the state to adopt the goals and standards established by the plan. Sec. 481.104. RULES. Requires the department by rule to adopt guidance principles for the state economic development plan that reflect the public interest of the entire state, including the needs of rural and urban areas, economically depressed areas, and areas experiencing significant changes in population. Sec. 481.105. DELIVERY OF PLAN AND UPDATES. Requires the department to promptly deliver the state economic development plan and each update of the plan to the governor, the lieutenant governor, and the speaker of the house of representatives and present the plan for review to the appropriate legislative committees. Requires the plan and updates to include legislative recommendations that the department believes are needed and desirable to facilitate more voluntary economic development. SECTION 2. Effective date: upon passage or September 1, 2001.