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


Senate Research CenterC.S.S.B. 15
By: Madla
Finance
2/20/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, 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.  As proposed, 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
businesses locating within Texas for the purpose of diversifying the
economy, reducing unemployment or underemployment, or developing or
expanding transportation or commerce.  Authorizes 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
program, TDED is authorized to expend the unencumbered amount of
$15,000,000 during the remainder of the fiscal year ending August 31,
2003, for business location incentives.  

(c) Provides that 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. 

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



SUMMARY OF COMMITTEE CHANGES

Differs from original by adding new SECTION 2(a) which states the Texas
Department of Economic Development (TDED) is authorized to make grants to
businesses locating in Texas for certain reasons  and gives TDED
rulemaking authority to implement this Act. 

Differs from original in SECTION 2 by redesignating Subsection (a) as (b)
and adding amounts appropriated by Chapter 637, Acts of the 77th
Legislature, Regular Session, 2001. 

Differs from original in SECTION 2 by redesignating Subsection (b) as (c)
and making a conforming change.