BILL ANALYSIS

H.B. 3172

By: Button

Economic & Small Business Development

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note that the state offers various economic development incentives for businesses that are considering relocating to or expanding in Texas but contend that the process of determining which incentives to apply for and filling out multiple applications may be challenging for many of these businesses. H.B. 3172 seeks to address this issue by providing for an electronic economic development incentives information and application system.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3172 amends the Government Code to require the Department of Information Resources (DIR) to establish an electronic government project to develop a website accessible through the state electronic Internet portal that provides a single location that a business entity considering relocating to or expanding in Texas may use to receive information relating to state monetary and tax incentives for which the entity may be qualified; includes an interactive tool that allows a business entity to determine whether the entity may be eligible for any state monetary or tax incentive in Texas; allows, when feasible, the business entity to fill out one application for all state monetary incentives for which the entity may be eligible and state tax incentives for which the entity may be eligible, other than a tax incentive for which the entity, or a transaction involving the entity, qualifies for by operation of law; and allows, when feasible, for the application to be submitted to each state agency that offers a monetary or tax incentive.

H.B. 3172 requires DIR, in establishing and operating the electronic government project and in coordination with the Texas Economic Development and Tourism Office, the Texas Workforce Commission (TWC), and the comptroller of public accounts, to direct, coordinate, and assist state agencies in establishing and using a common electronic application and reporting system and a process for improving interagency coordination of information collection and sharing of data relating to monetary and tax incentives and for improving the timeliness, completeness, and quality of applications received by a state agency for monetary and tax incentives described by the bill.

H.B. 3172 amends the Labor Code to remove the specification that the application an employer and a college must file for concurrent participation in the skills development fund program and the Texas enterprise fund program for customized training and assessment from the college complies with any rules adopted by the TWC and to instead specify that the employer's and college's filing of such an application is done using a common electronic application under the bill's provisions.

EFFECTIVE DATE

September 1, 2017.