House Bill 5

SIGNED BY THE GOVERNOR

House Author: Representative Todd Hunter (R-Corpus Christi) 
Senate Sponsor: Senator Charles Schwertner (R-Georgetown)

• Ensures a competitive business climate and fosters growth by developing a new, transparent, and accountable economic development program for Texas.
• Makes the state attractive to emerging industries and ensures long-term competitiveness.
• A state-wide economic development incentive program is critical to attracting businesses that invest in local communities and provide high-quality jobs. After the expiration of the Chapter 313 economic development program last session, Texas was in need of a new school property tax abatement program as a competitive economic development tool.

Texas has long been a national leader in securing large capital-intensive investments and attractive to businesses looking to relocate on nearly all measures companies consider. However, Texas often falls short on property taxes, and the lack of a new school property tax abatement program could cause it to fall behind other states in landing new businesses.

After the last session, when the Texas Legislature allowed Chapter 313 to sunset, the Partnership and other business organizations began working on its replacement. Leading up to this session, a coalition of supporters conducted statewide polling, finding that Texans overwhelmingly support utilizing economic development tools to attract businesses.

The Partnership also partnered with statewide business organizations to mobilize regional partners to support House Bill 5, resulting in the collection of over 250 signatures from chambers of commerce and economic development organizations across the state on a letter of support for the creation of a new program.

House Bill 8

SIGNED BY THE GOVERNOR

House Author: Representative Gary VanDeaver (R-New Boston)
Senate Sponsor: Senator Brandon Creighton (R-Conroe)

• Overhauls the state’s method of financing community colleges, shifting toward an outcomes-focused, industry-aligned
  model.
• Increases college affordability by creating new scholarships to support high-demand industries.
• Improves college capacity by providing funding for student support and inter-institutional shared services, to better serve
  the state as its population grows.

Currently, Texas’ community colleges are funded by combination of property taxes, tuition, and enrollment, meaning they remain fully funded regardless of student outcomes. A strong economy is supported by its workforce talent pipelines and strong community college graduates drive the talent pipeline. Therefore, student outcomes should be part of the equation on how community colleges are funded.

House Bill 8 provides for a transformational change by moving towards an industry-led, outcomes-based funding model, while also increasing college affordability and capacity. Community colleges will also work with employers to ensure they are producing the type and caliber of workers needed for the future economy.

The Partnership is proud to have supported the development of House Bill 8 by promoting industry voices at the Texas Commission on Community College Finance hearings, which was charged with studying how community colleges are funded and making recommendations to the legislature for improvement.

House Bill 1 

SIGNED BY THE GOVERNOR

House Sponsor: Representative Greg Bonnen (R-Friendswood) 
Senate Author: Senator Joan Huffman (R-Houston) 

• Allocates more than $70 million in  general revenue  for the Texas Water Development Board (TWDB) to hire more staff for the implementation of the Flood Infrastructure Fund (FIF).  

Senate Bill 30 

SIGNED BY THE GOVERNOR

House Sponsor: Representative Greg Bonnen (R-Friendswood) 
Senate Author: Senator Joan Huffman (R-Houston) 

• Allocates nearly $625 million in one-time general revenue funds to replenish the Flood Infrastructure Fund (FIF) prior to the state flood plan due September 2024. 

Following Hurricane Harvey, the Partnership advocated for the creation of the Flood Infrastructure Fund (FIF) during the 2019 legislative session to address the need for adequate relief from flooding and protection from future severe weather events across the state.

As of February 2023, the greater Houston region received more than $159 million of the initial $793 million FIF appropriation, meaning Houston received 20% of the original funding for flood mitigation projects.

In late 2022, the Texas Water Development Board (TWDB), the state agency charged with oversight of the FIF, signaled that the fund is oversubscribed and would soon be exhausted.

This session, the Partnership prioritized the effort to replenish the FIF. As a result, the Texas Legislature invested more than $1.3 billion in flood prevention and resiliency work. The FIF received nearly $625 million in one-time general revenue funds in Senate Bill 30—a first for the fund as it was originally funded by a one-time infusion from the Economic Stabilization Fund. Additionally, House Bill 1 provided more than $70 million in funding to the TWDB for more staff to implement the substantial investment in the FIF.