HB 3092

83(R) - 2013
Economic & Small Business Development

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral


Tan Parker

Bill Caption

Relating to qualified manufacturing project zones and the creation and funding of the Texas workforce investment program.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB3092: a negative impact of ($2,650,000) through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. No significant fiscal implication to units of local government is anticipated.

Bill Analysis

Summary: HB 3092 would establish the Texas Workforce Investment Fund for the purpose of attracting businesses focused on manufacturing jobs and developing a skilled workforce to Texas. In order for businesses to participate, they are required to 1) be actively looking outside of Texas to start or relocate their business, 2) create 200 new full-time jobs, and 3) invest $100 million into the construction of their facility. For the business that operates in Texas, the Comptroller's Office will determine the increase in sales tax revenue that the business brings in from the previous year that is collected in the host county and is attributed to the manufacturing business. Of the new sales tax revenue attributed to the manufacturing business, 25% will be allocated to the workforce investment fund which the manufacturing business can allocate to the institutions of higher education or public high schools to fund manufacturing workforce development classes and training that the manufacturing facility needs to prepare their current and future workforce.

Analysis: HB 3092 would expand the scope of government by creating a new taxpayer funded program. This would give preferential tax treatment to businesses in the manufacturing industry that are not available to other businesses in other industries. While the goals of this legislation may be laudable, the new program would be an expansion of government and it would interfere in the free market. As a result, we oppose HB 3092.