By: Davis S.B. No. 1391

A BILL TO BE ENTITLED

AN ACT

relating to a requirement that the comptroller perform a study of the Texas Economic Development Act.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. STUDY OF TEXAS ECONOMIC DEVELOPMENT ACT. (a) The comptroller of public accounts shall conduct a study of the Texas Economic Development Act. The purpose of the study is to determine:

(1) if the Act, as implemented:

(A) accomplishes the intended purposes of the Act, as stated in Section 313.003, Tax Code; and

(B) complies with the intent of the legislature in enacting the Act, as expressed in Section 313.004, Tax Code; and

(2) if legislative action is needed to increase the efficiency or effectiveness of any part of the Act.

(b) The comptroller of public accounts shall conduct an in-depth and cumulative study of certain agreements entered into under Chapter 313, Tax Code, as determined under this subsection. To determine the agreements to study, the comptroller shall perform risk assessments on each agreement entered into under Chapter 313, Tax Code, that is active on the effective date of this Act. In addition to the requirements of a risk assessment prescribed by Chapter 321, Government Code, a risk assessment conducted under this subsection must specifically consider the items listed in Subsection (a), Section 313.009, Tax Code, and whether the qualifying period for the agreement has expired. The comptroller shall select five energy-related agreements and five manufacturing-related agreements under Chapter 313, Tax Code, that pose the greatest risk to the state, as identified by the risk assessment conducted under this subsection, on which to conduct an in-depth study.

(c) In conducting the study required by Subsection (a) of this section, the comptroller of public accounts must:

(1) determine for each of the 10 agreements identified:

(A) if the terms of the agreement were implemented in a manner that complies with Sections 313.003 and 313.004, Tax Code;

(B) what changes to Chapter 313, Tax Code, if any, would increase the effectiveness and efficiency of the administration of the agreement;

(C) the number of jobs actually created, and the median wage for the new jobs created, under the agreement; and

(D) whether any requirements relating to the number of jobs, or the wages paid for those jobs, specified in the agreement were waived; and

(2) consider the entire period the agreement has been in effect when making the determinations required under Subdivision (1) of this subsection.

(d) The comptroller of public accounts may require a party to an agreement under Chapter 313, Tax Code, to submit information to complete the study required by this Act.

(e) At the comptroller of public accounts' request, the state auditor may assist the comptroller in conducting the study required by this Act.

SECTION 2. REPORT. (a) Not later than December 1, 2014, the comptroller of public accounts shall submit a report of the results of the study to the governor and the legislature.

(b) The report must include:

(1) a complete discussion of each agreement studied by the comptroller of public accounts; and

(2) the comptroller's recommendations, based on the study's findings, of ways to increase the effectiveness and efficiency of agreements entered into under Chapter 313, Tax Code.

(c) If the report recommends amending a provision of Chapter 313, Tax Code, the comptroller of public accounts shall include proposed legislation necessary to implement the suggested amendment.

(d) The report may not include information that is confidential by law.

SECTION 3. EXPIRATION DATE. This Act expires January 1, 2015.

SECTION 4. EFFECTIVE DATE. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.