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Texas Department of Economic Development

This agency is currently inactive. An agency can be labeled inactive if it has been abolished, had a title change, was merged into a different agency or split into different agencies. See Agency History on the right for further information.

      Next Review Date: none
    • Last Review Date: 2002-2003 Review Cycle - 78th Legislative Session

    Sunset Review Documents for 2002-2003 Review Cycle, 78th Legislative Session

    Legislative Documents

    Final Results from Last Sunset Report

    The Texas Department of Economic Development was created in 1997 when the 75th Legislature abolished the Texas Department of Commerce and transferred its functions to this new agency. The Department has three primary missions: marketing Texas as a premier business location and tourist destination; providing financial, location, and export assistance to Texas businesses and communities; and serving as a central source of economic development information. The Department’s annual appropriation is about $32.4 million and it operates with 127 staff positions.

    Senate Bill 275 contains the Sunset Commission’s recommendations to abolish the Department and transfer its primary functions to the Office of the Governor; and to improve the coordination of the State’s tourism efforts. The Legislature added several other statutory modifications to S.B. 275, including transferring the functions of the Texas Aerospace Commission to the Governor’s Office, and establishing an economic development bank for communities and businesses. Overall, S.B. 275 will result in an annual savings of more than $1.6 million and a reduction of 27 staff positions. The list below summarizes the major provisions of S.B. 275.

    • Abolish the Texas Department of Economic Development and Transfer Its Functions to the Texas Economic Development and Tourism Office Within the Office of the Governor.
    • Improve Coordination Among the State Agencies Involved in Tourism Activities.
    • Transfer the Functions of the Texas Aerospace Commission to the Texas Economic Development and Tourism Office.
    • Create the Texas Economic Development Bank Within the Office.
    • Simplify the Administration and Operation of the Texas Enterprise Zone Program.
    • Require the Office to Identify Industry Clusters on a Regional and Statewide Basis, and to Assist the Clusters in Strengthening Their Competitiveness.
    • Require the Office to Coordinate State Efforts Regarding Advanced Technology Industries in the State.
    • Require the Office to Establish Incentive Grants for Fuel Ethanol and Biodiesel Producers.
    • Authorize Certain Cities and Counties to Use State and Local Taxes to Support Major Sporting Events.
    • Require the Office to Promote the Sports Industry and Related Industries in This State.