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.