SRC-AMY S.B. 15 78(R)    BILL ANALYSIS


Senate Research CenterS.B. 15
By: Madla
Finance
8/5/2003
Enrolled

DIGEST AND PURPOSE 

Recently, in an effort to re-employ former defense workers, San Antonio
has focused on attracting Toyota.  Toyota insisted on locating a site that
offered competitive rail access; however, the site under consideration by
Toyota does not offer such access.  S.B. 15 would authorize the Texas
Department of Economic Development to grant $15 million from the Smart
Jobs Fund Account for the construction of a secondary rail line. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Department of
Economic Development in SECTION 2 of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  LEGISLATIVE FINDINGS.  Provides that the legislature finds
that the use of public funds for certain purposes relating to business
location incentives is in the public interest and serves a public purpose
of the state. 

SECTION 2.  BUSINESS LOCATION INCENTIVES.  (a) Provides that the Texas
Department of Economic Development (TDED) is authorized to make grants to
local governmental entities within Texas for the purpose of diversifying
the economy, reducing unemployment or underemployment, or developing or
expanding transportation or commerce.  Requires TDED to develop procedures
or adopt rules to implement this Act. 

(b) Provides that from the amounts appropriated by Chapter 637, Acts of
the 77th Legislature, Regular Session, 2001, and Chapter 1515, Acts of the
77th Legislature, Regular Session, 2001 (the General Appropriations Act),
from Smart Jobs Fund No. 891 to TDED in connection with the smart jobs
fund program, TDED is authorized to expend the unencumbered amount of $15
million during the remainder of the fiscal year ending August 31, 2003,
for business location incentives.  

(c) Provides that if TDED is not abolished on September 1, 2003, by
operation of Chapter 325 (Texas Sunset Act), Government Code, the
unexpended balance of funds described by Subsection (b) of this section
remaining at the end of the fiscal year ending August 31, 2003, is
appropriated from Smart Jobs Fund No. 891 to TDED for the fiscal year
beginning September 1, 2003, for business location incentives.  Prohibits
the total amount of funds appropriated from Smart Jobs Fund No. 891 under
this subsection and Subsection (b) of this section from exceeding $15
million. 

(d) Provides that a grant awarded under this section is contingent on the
recipient meeting certain criteria relating to the purposes for which the
grant is made.  Requires TDED, before awarding a grant under this section,
to enter into a written agreement containing certain specifications with
the local governmental entity being awarded the grant.  

(e) Requires the unexpended balance of funds described by Subsection (b)
of this section remaining at the end of the fiscal year ending August 31,
2003, if TDED is abolished on September 1, 2003, by operation of Chapter
325 (Texas Sunset Act), Government Code, to be transferred to an
appropriate state agency designated by the governor to be used for the
purposes and in the manner described by this Act.  Prohibits the total
amount of funds  appropriated from Smart Jobs Fund No. 891 under this
subsection and Subsection (b) of this section from exceeding $15 million. 

SECTION 3.  Effective date: upon passage or September 1, 2003.