Solomon Ortiz, Jr.

March 31, 2009

~ Bill Enhances Oversight of Emerging Technology, Texas Enterprise Funds ~

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AUSTIN- Rep. Solomon Ortiz, Jr announced today that he has filed HB 3329, which would reform the way that the Texas Enterprise Fund and Texas Emerging Technology Fund do business.

"The Texas Enterprise Fund and Emerging Technology Fund have the potential to be effective economic development engines, but both funds need more oversight," said Ortiz. "We must make sure that our economic development decisions are being driven by what's good for the Texas economy, not by political considerations."

HB 3329 establishes a Texas Enterprise Fund Board and provides that the board shall review and approve each award of money from the Texas Enterprise Fund. The bill also takes the existing Texas Emerging Technology Advisory Committee, whose recommendations are not binding, and requires that it review and approve each award of money from the Emerging Technology Fund.

It was recently revealed that the Emerging Technology Advisory Committee did not give its approval to an unusually large $50 million grant made for a pharmaceutical manufacturing center. In another unusual move, the $50 million was transferred to the Emerging Technology Fund from the Texas Enterprise Fund to facilitate the grant.

"The recent lack of oversight of the Emerging Technology Fund is disturbing and a toothless advisory committee is part of the problem" Ortiz said. "It's time to get serious about protecting taxpayer money and taxpayer interests."

Additionally, HB 3329 requires that the board members of both the Enterprise Fund and Emerging Technology Fund be from certain defined regions of the state, which helps ensure a broad array of voices from all areas of the state have input into the process.

"Corpus Christi has yet to receive a dollar from the Texas Enterprise Fund, and South Texas has gotten very little," Ortiz said. "By requiring that board members come from different regions of Texas, HB 3329 gives those regions a seat at the table and a voice in the process."

HB 3329 also requires that companies receiving money from either fund provide health care benefits to all their employees in Texas.

"Texas is a national leader in using incentives to attract business, but we have to make sure that we are using those incentives in the best way possible. HB 3329 puts the checks and balances we need in place, and makes sure that there is proper oversight of these important funding decisions," Ortiz said.

Ortiz represents District 33, which includes part of Nueces County and the City of Corpus Christi. Rep. Ortiz encourages constituents to contact his office on this or any issue of interest at (512) 463-0484, email him at district33.ortizjr@house.state.tx.us or visit the State of Texas House website at www.house.state.tx.us.