Bill

HB 28

84(R) - 2015
House Economic & Small Business Development
House Economic & Small Business Development
Economic Development
Oversight

Vote Recommendation

Yes
  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral

Author(s)

Angie Chen Button

Co-Author(s)

Poncho Nevarez

Bill Caption

Relating to an audit by the state auditor of certain programs and funds providing economic development incentives to entities and other persons.

Fiscal Notes

A fiscal note dated April 20, 2015 anticipates a negative two-year net impact to General Revenue Related Funds for CSHB 28 of $450,000 through the biennium ending August 31, 2017.

Bill Analysis

House Bill 28 would amend Chapter 321 of the Government Code related to the State Auditor to require that the State Auditor conduct an audit of certain programs and funds providing economic development incentives.

Starting September 1, 2015, every 12 years the state auditor would have to conduct an audit of the programs and funds listed in the bill. Depending on the program or fund, the first audit would take place in 2015, 2017, 2019, 2021, or 2023.

The state auditor would be able to establish the scope of the audit, and should try to assess the efficiency and effectiveness of each program and fund subject to an audit. No later than 2 years after the date the audit is to be conducted, a report should be filed with the lieutenant governor, the speaker of the house of representatives, and the presiding officer of each standing committee of the senate and house of representatives with primary jurisdiction over economic development.

The scheduling of audits would be subject to a risk assessment and to inclusion in the annual audit plan. The state auditor could decide to delay an audit in some cases but would have to notify the Legislative Audit Committee and each standing committee of the senate and house of representatives with primary jurisdiction over economic development of the reasons for the delay.

Vote Recommendation Notes

House Bill 28 would try to provide additional oversight for some programs and funds providing economic development incentives, and the number of programs listed in the bill is impressive.

The role of government is not to use taxpayer money to provide economic development incentives to entities or persons. Nevertheless, House Bill 28 is a step in the right direction since the state auditor would be encouraged to assess the efficiency and effectiveness of the programs. As a consequence, we support this bill.