SRC-TBR, JEC S.B. 143 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 143
77R2035 JMG-DBy: Shapleigh
Business & Commerce
1/31/2001
As Filed


DIGEST AND PURPOSE 

Currently, there is no statewide economic development planning process to
guide and improve longterm economic development.  As proposed, S.B. 143
directs the Comptroller of Public Accounts and the Department of Economic
Development to create a statewide plan to coordinate the state's economic
development. 

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, to add 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 (plan) to provide for the orderly development and management of
economic development in this state.  Requires the plan to provide for:
establishing goals and standards to measure whether state efforts are
having a positive economic effect; tracking benefits and wage and retention
performance measures; and reevaluating economic development initiatives
that offer fewer benefits in relation to their costs. 

Sec. 481.102. INITIAL PLAN; UPDATES. Requires the department, no later than
September 1, 2002, to adopt the plan.  Requires the department, each fifth
following year, in consultation with the comptroller, to update the plan. 

Sec. 481.103. USE OF PLAN. (a) Requires the 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) Requires 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 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.