Highlights 77th Texas Legislature - Senate

_________________ E CONOMIC
CONOMIC DEVELOPMENT
77 th Texas Legislature
Municipal Industrial Development Districts - H.B. 1390
by Representatives Najera and Pickett
Senate Sponsor: Senator Shapleigh
Addresses the unintended consequences of legislative actions and modifications to the Development
Corporation Act of 1979 authorizing cities in counties with a population of 500,000 or fewer, and cities in
counties with a population of 750,000 or more, to adopt up to a one-half percent sales tax on local retail
sales to support local economic development projects. Counties which fall between these two populations,
including El Paso, Hildalgo, and Travis, have been prevented from utilizing this economic development tool.
Lowers the population requirement for an “eligible city” where the combined rates of sales and use taxes do
not exceed 8.25 percent to include a city located in a county with a population of 500,000 or more.
Tax Abatements Encouraging Property Redevelopment Continue (Sunset) - H.B. 1449
by Representative Oliveira
Senate Sponsor: Senator Sibley
Local governments use tax abatements to attract new industry and commercial enterprises and to
encourage the retention and development of existing businesses. Over 700 tax abatement agreements
have been executed by local governments in Texas since the early 1980s and these agreements are
credited with producing approximately 275,000 new or retained jobs. Currently, incorporated cities,
counties, school districts, and special districts are allowed to enter into tax abatement agreements. In 1995,
the legislature reauthorized local governments to use property tax abatements until September 1, 2001.
Continues the Property Redevelopment and Tax Abatement Act, Tax Code, until September 1, 2009.
Local Workforce Development Boards in Rural Areas - H.B. 1723
by Representative Seaman, et al.
Senate Sponsor: Senator Armbrister
There is concern that more populated urban areas may receive greater attention and funding than less
populated rural counterparts under the workforce development programs provided by local workforce
development boards (LWDBs). State block grants for employment, training, and child care are
administered to the LWDBs by the Texas Workforce Commission, and rural communities have problems
that need to be addressed by these programs.
Authorizes the commissioners court of a county with a population of 50,000 or less to establish a county
employment development board for the purpose of supplementing existing workforce development
programs administered by an LWDB.
Senate Research Center 77