| TO: | Honorable Suzanna Gratia Hupp, Chair, House Committee on Human Services |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB3050 by Hopson (Relating to the creation of an economic development plan for local communities affected by the closure or change in operation of a state school or hospital.), As Introduced |
The bill would amend Subchapter B, Chapter 531, Government Code to create an economic development plan for local communities affected by the closure or change in operation of a state school or state hospital. The bill would require HHSC to notify the Governor prior to closing, downsizing, privatizing, or consolidating a state school or hospital. The notification must include the proposed action, the number of employee positions to be eliminated and the economic impact to the local community.
The bill would also require the Governor to prepare and fund an economic development plan for the identified community. The plan may include providing infrastructure development, community development, job training programs, financial assistance, business incentives, business development services, or small business services and useful publications.
The bill would take effect September 1, 2005.
Due to the requirement of the bill for the Governor to fund an economic development plan as a result of the closure or change in operation of a state school or hospital, there could be a significant fiscal impact to the state. This would depend upon the closure or change in operation actually occurring. However, the Office of the Governor states that the impact can not be determined since the potential communities affected are so diverse and the actual affected community is currently unknown.
| Source Agencies: | 301 Office of the Governor, 529 Health and Human Services Commission, 537 Department of State Health Services, 539 Department of Aging and Disability Services
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| LBB Staff: | JOB, CL, KF, MB, KJG
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