1-1 By: Shapleigh, et al. S.B. No. 1837 1-2 (In the Senate - Filed May 4, 2001; May 4, 2001, read first 1-3 time and referred to Committee on Business and Commerce; 1-4 May 9, 2001, reported favorably by the following vote: Yeas 6, 1-5 Nays 0; May 9, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the creation of the Texas Border Strategic Investment 1-9 Commission; making an appropriation. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Chapter 481, Government Code, is amended by 1-12 adding Subchapter G to read as follows: 1-13 SUBCHAPTER G. TEXAS BORDER STRATEGIC INVESTMENT COMMISSION 1-14 Sec. 481.101. DEFINITIONS. In this subchapter: 1-15 (1) "Commission" means the Texas Border Strategic 1-16 Investment Commission. 1-17 (2) "Texas-Mexico border region" has the meaning 1-18 assigned by Section 2056.002. 1-19 Sec. 481.102. PURPOSE. The future economic health of this 1-20 state is dependent on investing now in the Texas-Mexico border 1-21 region. The Texas-Mexico border region has the highest poverty and 1-22 unemployment rates in the country, and the per capita income is the 1-23 lowest in the country. An emergency situation exists. Texas must 1-24 invest in and create economic engines in the Texas-Mexico border 1-25 region that will allow that part of the state to grow, prosper, and 1-26 participate in the Texas dream. If this is not done, the future 1-27 cost to the state to provide for the Texas-Mexico border region 1-28 will increase and affect future family incomes across Texas. 1-29 Strategic funding for one region of the state, even where the 1-30 benefit to the whole state is the primary objective, is politically 1-31 difficult to achieve in the legislative process. Therefore, this 1-32 commission is established and funded to bring a statewide 1-33 perspective to strategic Texas-Mexico border region investments. 1-34 Sec. 481.103. TEXAS BORDER STRATEGIC INVESTMENT COMMISSION; 1-35 MEMBERS. (a) The Texas Border Strategic Investment Commission is 1-36 established. 1-37 (b) The commission is composed of: 1-38 (1) the lieutenant governor; 1-39 (2) the speaker of the house of representatives; 1-40 (3) the comptroller; 1-41 (4) the commissioner of agriculture; and 1-42 (5) the secretary of state. 1-43 (c) The lieutenant governor shall serve as the chair of the 1-44 commission. 1-45 Sec. 481.104. FUNCTIONS OF COMMISSION. (a) To the extent 1-46 that funds are specifically appropriated for the purpose, the 1-47 commission shall, after the conclusion of each regular session of 1-48 the legislature, meet, identify, and direct funding for strategic 1-49 economic development initiatives in the six metropolitan 1-50 statistical areas in the Texas-Mexico border region. 1-51 (b) The strategic investment initiatives to receive funding 1-52 shall be identified using criteria that include the following: 1-53 (1) whether the initiative is the most significant 1-54 investment the state can make in a key regional cluster to produce 1-55 a sound foundation for economic development; 1-56 (2) whether the investment leverages other significant 1-57 funds or has an objective and calculable rate of return; 1-58 (3) whether the funds are being invested in a clearly 1-59 defined concept with significant regional support; 1-60 (4) whether the concept requires special investment in 1-61 order to be accomplished in the near future because similar and 1-62 timely funding by local, state, or federal sources in the normal 1-63 appropriations process is unlikely; and 1-64 (5) whether the investment will increase the per 2-1 capita income and decrease the unemployment rate of the affected 2-2 area. 2-3 (c) The commission must identify initiatives for funding on 2-4 or before December 1 of each odd-numbered year. 2-5 Sec. 481.105. REPORT. (a) Not later than December 1 of 2-6 each even-numbered year, the commission shall file a report with 2-7 the legislature that states the strategic investment initiatives 2-8 considered by the commission during the preceding two-year period 2-9 and identifies the initiatives that received funding during the 2-10 preceding fiscal biennium. The report must include any 2-11 recommendations for legislative action the commission considers 2-12 appropriate to further the creation or function of the commission. 2-13 (b) For those initiatives that received funding from the 2-14 commission during the biennium in which the report is made, the 2-15 commission shall, in addition to evaluating other performance 2-16 measures identified by the commission, evaluate the following 2-17 performance measures in the report: 2-18 (1) the number of jobs created by the initiative and 2-19 the nature of economic development created by the initiative; 2-20 (2) the impact of any economic development on wage 2-21 rates in the affected metropolitan statistical area; 2-22 (3) the wages and benefits paid by the employer of the 2-23 created jobs compared to the county-wide average wage for the 2-24 particular industry sector that received funding; 2-25 (4) the other funds that were leveraged or the 2-26 calculable rate of return from the commission's investment in a 2-27 particular initiative; 2-28 (5) the initiative's ability to attract new industry 2-29 and economic development to the Texas-Mexico border region; and 2-30 (6) the duration and quality of the jobs, economic 2-31 development, and opportunities created. 2-32 Sec. 481.106. FUNDING. (a) In addition to any amount 2-33 appropriated by the legislature, the commission may apply for and 2-34 accept funds from the federal government or any other public or 2-35 private entity. The commission may also solicit and accept grants, 2-36 gifts, and donations from private sources on the commission's 2-37 behalf. The use of a gift, grant, or donation solicited or 2-38 accepted under this section must be consistent with the purposes of 2-39 the commission. 2-40 (b) The commission shall administer and approve 2-41 disbursements of any appropriation, fund, pledge, gift, or 2-42 endowment that is the property of the commission. 2-43 SECTION 2. There is appropriated from the economic 2-44 stabilization fund the sum of $250,000,000 to the Texas Border 2-45 Strategic Investment Commission established under Subchapter G, 2-46 Chapter 481, Government Code, as added by this Act, for the 2-47 two-year period beginning September 1, 2001, for the purposes of 2-48 that subchapter. 2-49 SECTION 3. This Act takes effect immediately if it receives 2-50 a vote of two-thirds of all the members elected to each house, as 2-51 provided by Section 39, Article III, Texas Constitution. If this 2-52 Act does not receive the vote necessary for immediate effect, this 2-53 Act takes effect September 1, 2001. 2-54 * * * * *