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A BILL TO BE ENTITLED
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AN ACT
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relating to a periodic review of local government programs that |
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award economic development incentives to business entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 490G.001, Government Code, is amended |
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by adding Subdivision (1-a) and amending Subdivisions (2) and (3) |
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to read as follows: |
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(1-a) "Local government" means a county, |
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municipality, special district, school district, junior college |
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district, or other political subdivision of the state. |
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(2) "Monetary incentive" means a grant, loan, or other |
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form of monetary incentive paid from state or local government |
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revenues, including a state trust fund, that a business entity or |
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other person may receive in exchange for or as a result of |
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conducting an activity with an economic development purpose. |
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(3) "Tax incentive" means any exemption, deduction, |
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credit, exclusion, waiver, rebate, discount, deferral, or other |
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abatement or reduction of state or local government tax liability |
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of a business entity or other person that the person may receive in |
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exchange for or as a result of conducting an activity with an |
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economic development purpose. |
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SECTION 2. Chapter 490G, Government Code, is amended by |
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adding Section 490G.0055 to read as follows: |
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Sec. 490G.0055. REVIEW OF LOCAL GOVERNMENT INCENTIVE |
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PROGRAMS; PERFORMANCE MATRIX. (a) The board shall examine the |
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effectiveness, efficiency, and financial impact on this state of |
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programs administered by local governments that award to business |
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entities and other persons monetary or tax incentives for which the |
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local government has discretion in determining whether or not to |
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award the incentives. |
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(b) The board shall develop a performance matrix that |
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clearly establishes the economic performance indicators, measures, |
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and metrics that will guide the board's evaluations of those |
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programs. |
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(c) A local government shall provide to the board on request |
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information concerning a program described by Subsection (a) as |
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necessary to enable the board to perform the board's duties under |
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this chapter. |
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SECTION 3. The heading to Section 490G.006, Government |
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Code, is amended to read as follows: |
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Sec. 490G.006. SCHEDULE OF REVIEW OF STATE INCENTIVE |
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PROGRAM; RECOMMENDATION TO LEGISLATIVE AUDIT COMMITTEE. |
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SECTION 4. Chapter 490G, Government Code, is amended by |
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adding Section 490G.0065 to read as follows: |
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Sec. 490G.0065. SCHEDULE OF REVIEW OF LOCAL GOVERNMENT |
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INCENTIVE PROGRAMS. The board shall develop a schedule for the |
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periodic review of each class or type of local government program |
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described by Section 490G.0055 and identified by the board for the |
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purposes of making recommendations concerning program |
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effectiveness and efficiency to the governing bodies of applicable |
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local governments and reporting the findings and recommendations |
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resulting from the program review to the legislature as required by |
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Section 490G.007. The board shall review and make findings and |
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recommendations regarding each class or type of program as |
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described by this section according to the review schedule. |
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SECTION 5. Section 490G.007, Government Code, is amended to |
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read as follows: |
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Sec. 490G.007. BIENNIAL REPORT. Not later than January 1 of |
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each odd-numbered year, the board shall submit to the lieutenant |
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governor, the speaker of the house of representatives, and each |
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standing committee of the senate and house of representatives with |
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primary jurisdiction over economic development a report containing |
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findings and recommendations resulting from each review of state |
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incentive programs and funds and local government incentive |
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programs conducted by the board under this chapter during the |
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preceding two calendar years. |
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SECTION 6. Section 490G.008(a), Government Code, is amended |
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to read as follows: |
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(a) A member of the board who has a substantial interest in a |
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business entity or other person that previously applied for or |
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received a [state] monetary or tax incentive from a program or fund |
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subject to review by the board shall disclose that interest in |
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writing to the board. |
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SECTION 7. This Act takes effect September 1, 2017. |