The House Committee on International Relations & Economic Development met for an organizational hearing and heard invited testimony from agencies. A copy of the agenda is available here and the archive is located here.

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

Ed Serna, Executive Director of the Texas Workforce Commission

  • Have recovered to levels prior to COVID, still paying unemployment to just over 1 million individuals
  • Reviewed supports they provide and what supports they worked on over the last year
  • Replacing IT system, anticipates it will take a couple years to complete
  • Have only had call centers down three days over the last 12 months, they still took calls on bad weather days
  • Have seen fraud increasing – either a person trying to game the system to get more or they stole the persons identity
  • Only paid out 1.2% to suspicious claims, approx. $90 million in state dollars
  • There are other states paying out higher claims
  • About 5700 subsidized childcare providers, provided childcare to 29k essential workers
  • Trust fund was nearing ceiling of $2 billion before COVID, projections were trust fund was going to go to zero by mid-May but employers making insurance payment allowed trust fund to not hit zero until mid-June and then borrowed title 12 loans
  • Bell – how do we do insurance payments, there are no free lunches?
    • Try not to include COVID charges, but are working to resolve to minimize impact
  • Hunter – request TWC contact House members so they are not surprised and they like updates as well, contact members when you are in their area
  • Beckley – didn’t realize dentist were number 2 business in her district, do you need additional funding?
    • No, but there is a request in the appropriations bill for them to carry over unexpended balances
  • Canales – has a hard time with TWC website, discusses difficulties with it, how do we make it better?
    • Parts where claimant has trouble entering will be addressed when they replace the existing system
    • The website “clunkiness” is addressed in HB 1 as a recommendation for federal funding to completely redo the website
  • Canales – seems to be lack of communication and outreach from TWC
    • Started discussing various activities of follow up
    • Button – interrupted, can you get the committee a written report of how we are going to address

Adriana Cruz, Governor Economic Development and Tourism

  • Provides overview of services
  • Had to modify outreach efforts and have participated in a lot of virtual events
  • Pivoted with office of small business assistance, hosting webinars and found them very successful
  • Several successful virtual trade events
  • Texas has been national top exporting state in the nation, provided additional statistics
  • Economic Development Finance Team oversees business incentives and houses Texas Economic Bank
    • This division includes TEF, GUR, Enterprise Zone Program, Event Trust Funds, Industrial Revenue Bonds, Capital Access Program, Product Development and Small Business Incubator fund
    • Produces reports on these programs
  • Also divisions to promote Texas as tourist destination, Texas Music Office which promotes music business, and support Texas film/game development

David Zapata, Secretary of State Office for Mexican and Border Affairs

  • Reviews responsibilities and relationships they have established
  • Texas and Mexico are number one trading partners
  • In 2020 for Texas $187 billion trade relationship with Mexico
  • Communicate regularly and identify areas to make relationship stronger
    • Such as Untied States – Canada- Mexico agreement
    • They organized several discussion events on this agreement
  • Working on collaboration with Texas Transportation Commission- working to help address infrastructure of border areas
    • Have developed a Border Master Plan; plan is still in draft form as public comments are being reviewed
  • Button – said talented committee he is welcome to reach out
  • Hunter – thank you for communicating with our office

Lee Rector, Executive Director of the Texas Workforce Investment Council

  • Gave high level overview
  • Reviewed three key mandate: assist Governor and legislature with strategic planning and evaluation for the workforce system, promoting highly skilled and educated workforce, and to advocate for an integrated system which reduced duplication and aligns programs
  • Discuss key council products, and partnerships, etc

Wes Hambrick, Interim Director of Texas Office of State Federal Relations

  • Provided brief overview of their work
  • Engaged in every level and every step of the way since COVID, including the funding
  • Provided an opportunity real time for state officials to talk to federal officials
  • Congress is debating another bill that would send $350 billion to state and local governments, $50 billion for FEMA relief fund and $7.5 billion for vaccine rollout
    • As bill moves through Congress the situation is fluid
  • Provided update on vaccine work, Texas first state to administer more than 1 million
  • Texas has capacity and ability to administer more vaccines
  • Button – appreciate efforts in stressful time
  • Beckley – do you know when the state will reach herd immunity? Aren’t we the lowest state in vaccinations?
    • Don’t have the answer to that question but can put her in touch with health officials
    • Do not know where we rank in relation to other states

Carlton Schwab, Texas Economic Development Council

  • Largest association of economic development professionals in the nation
  • Main priorities:
    • Protection of economic development sales tax,
    • Reauthorization of Ch 313 of the tax code,
    • Texas Enterprise Fund has dedicated nearly $700 million since it was created,
    • Maintenance of funding for workforce development funding

Button – starting next week will hear bills