By: Button, et al. (Senate Sponsor - Estes) H.B. No. 3360

(In the Senate - Received from the House May 3, 2017; May 10, 2017, read first time and referred to Committee on Natural Resources & Economic Development; May 21, 2017, reported adversely, with favorable Committee Substitute by the following vote: Yeas 8, Nays 2; May 21, 2017, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR H.B. No. 3360 By: Estes

A BILL TO BE ENTITLED

AN ACT

relating to the Economic Incentive Oversight Board.

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

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

(2-a) "Office" means the Texas Economic Development and Tourism Office.

(2-b) "Rural county" means a county with a population of less than 60,000.

SECTION 2. Sections 490G.002(a) and (b), Government Code, are amended to read as follows:

(a) The Economic Incentive Oversight Board is an advisory body composed of nine members as follows:

(1) two public members appointed by the speaker of the house of representatives, one of whom must be from a rural county;

(2) two public members appointed by the lieutenant governor, one of whom must be from a rural county;

(3) two public members appointed by the comptroller, one of whom must hold an advanced degree in economics; and

(4) three public members appointed by the governor, one of whom must hold an advanced degree in statistics and one of whom must hold an advanced degree in economics.

(b) A person is ineligible to serve as a member of the board if the person has, within the five years preceding the person's appointment:

(1) served as an officer, director, or executive of an entity that received a monetary incentive or an ad valorem tax incentive under Chapter 313, Tax Code;

(2) accepted compensation to represent a person or entity that sought a monetary incentive or an ad valorem tax incentive under Chapter 313, Tax Code; or

(3) accepted compensation to represent a state agency, local government, school district, or economic development corporation with the authority to grant a monetary incentive or an ad valorem tax incentive under Chapter 313, Tax Code. [In appointing members of the board, each appointing officer shall appoint one member who has expertise in the area of economic development].

SECTION 3. Chapter 490G, Government Code, is amended by adding Section 490G.0055 to read as follows:

Sec. 490G.0055. REVIEW OF PROGRAM ESTABLISHED BY TEXAS ECONOMIC DEVELOPMENT ACT; PERFORMANCE MATRIX. (a) The board shall examine the effectiveness, efficiency, and financial impact on this state of the ad valorem tax incentive program established by Chapter 313, Tax Code, including whether that chapter is being implemented by school districts and the comptroller in such a way as to:

(1) accomplish the purposes of that chapter as expressed in Section 313.003 of that chapter; and

(2) comply with the intent of the legislature in enacting that chapter as expressed in Section 313.004 of that chapter.

(b) The board shall 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) The comptroller shall 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.

SECTION 4. The heading to Section 490G.006, Government Code, is amended to read as follows:

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

SECTION 5. Chapter 490G, Government Code, is amended by adding Section 490G.0065 to read as follows:

Sec. 490G.0065. SCHEDULE OF REVIEW OF PROGRAM ESTABLISHED BY TEXAS ECONOMIC DEVELOPMENT ACT. (a) The board shall develop a schedule for the review of the ad valorem tax incentive program established by Chapter 313, Tax Code, for the purpose of making recommendations concerning the effectiveness and efficiency of the program to the office and reporting the findings and recommendations resulting from the review to the legislature as required by Section 490G.007. The board shall review and make findings and recommendations regarding the program according to the review schedule.

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

SECTION 6. Section 490G.007, Government Code, is amended to read as follows:

Sec. 490G.007. BIENNIAL REPORT. Not later than January 1 of each odd-numbered year, the board shall submit to the lieutenant governor, the speaker of the house of representatives, and each standing committee of the senate and house of representatives with primary jurisdiction over economic development a report containing findings and recommendations resulting from each review of state incentive programs and funds and of the ad valorem tax incentive program established by Chapter 313, Tax Code, conducted by the board under this chapter during the preceding two calendar years.

SECTION 7. A serving board member who would have been ineligible for appointment under Section 490G.002(b) as amended by this Act shall cease to be a board member as of the effective date of this Act.

SECTION 8. This Act takes effect September 1, 2017.

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