BILL ANALYSIS

Senate Research Center	H.B. 3360
85R9611 SMH-D	By: Button et al. (Estes)
	Natural Resources & Economic Development
	5/17/2017
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Interested parties note that the Economic Incentive Oversight Board is tasked with examining many of the state's economic development incentive programs and the need for the board to examine the effectiveness, efficiency, and financial impact on the state of the property tax incentive program established by the Texas Economic Development Act. H.B. 3360 provides for that examination.

H.B. 3360 amends current law relating to a periodic review by the Economic Incentive Oversight Board of the ad valorem tax incentive program established by the Texas Economic Development Act.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 490G.001, Government Code, by amending Subdivision (2-a) and adding Subdivision (2-b), as follows:

(2-a) Defines �office.�

(2-b) Creates this subdivision from existing text and makes no further changes.

SECTION 2. Amends Chapter 490G, Government Code, by adding Section 490G.0055, as follows:

Sec. 490G.0055. REVIEW OF PROGRAM ESTABLISHED BY TEXAS ECONOMIC DEVELOPMENT ACT; PERFORMANCE MATRIX. (a) Requires the Economic Incentive Oversight Board (board) to examine the effectiveness, efficiency, and financial impact on this state of the ad valorem tax incentive program (program) established by Chapter 313 (Texas Economic Development Act), Tax Code, including whether that chapter is being implemented by school districts (districts) and the Texas comptroller of public accounts (comptroller) in such a way as to accomplish the purposes of that chapter as expressed in Section 313.003 (Publication of Notice for Laws Primarily Affecting Persons) of that chapter and comply with the intent of the legislature in enacting that chapter as expressed in Section 313.004 (Proof of Publication or Posting) of that chapter.

(b) Requires the board to develop a performance matrix that clearly establishes the economic performance indicators, measures, and metrics that will guide the board�s evaluation of the program.

(c) Requires the comptroller to provide to the board on request information concerning the program as necessary to enable the board to perform the board�s duties under this chapter (Economic Incentive Oversight Board).

SECTION 3. Amends the heading to Section 490G.006, Government Code, to read as follows:

Sec. 490G.006. SCHEDULE OF REVIEW OF STATE INCENTIVE PROGRAMS; RECOMMENDATION TO LEGISLATIVE AUDIT COMMITTEE.

SECTION 4. Amends Chapter 490G, Government Code, by adding Section 490G.0065, as follows:

Sec. 490G.0065. SCHEDULE OF REVIEW OF PROGRAM ESTABLISHED BY TEXAS ECONOMIC DEVELOPMENT ACT. (a) Requires the board to develop a schedule for the review of the program established by Chapter 313, Tax Code, for the purpose of making recommendations concerning the effectiveness and efficiency of the program to the Texas Economic Development and Tourism Office (TEDTO) and reporting the findings and recommendations resulting from the review to the legislature as required by Section 490G.007 (Biennial Report). Requires the board to review and make findings and recommendations regarding the program according to the review schedule.

(b) Requires the board, on request, to provide to the governing body of a district or the comptroller any recommendations submitted to TEDTO under Subsection (a) concerning the program.

SECTION 5. Amends Section 490G.007, Government Code, to require the board, not later than January 1 of each odd-numbered year, to submit to certain government officials a report containing findings and recommendations resulting from each review of state incentive programs and funds and of the program established by Chapter 313, Tax Code, conducted by the board under this chapter during the preceding two calendar years.

SECTION 6. Effective date: September 1, 2017.