Houston lawmakers pass bill requiring companies offer better pay and benefits for tax relief

HOUSTON, Texas (KTRK) -- Houston city councilmembers passed an ordinance on Wednesday requiring companies in Houston seeking new tax breaks to offer higher pay, better safety, and more benefits to workers.

The City of Houston has used property tax abatements to attract investment, encourage business investment, and create jobs, but enforcement of the rules for receiving them has sometimes been questioned.

"For too long, when we gave out tax abatements in the City of Houston, we encouraged but not required companies to meet certain wages and provide certain benefits. Now, that has changed, and it is law in the City of Houston that if you are going to get a tax abatement, then you have to provide prevailing wages or comparable wages to municipal workers. You have to provide health insurance. You must provide apprenticeship programs," Houston City Councilmember Alejandra Salinas said.

Councilmember Salinas helped create the ordinance passed Wednesday, and she said it will include strict enforcement mechanisms.

"All of this will be enforced by city departments and, through our auditing powers, it allows the City of Houston to go in and inspect audits of their records. It requires these companies to submit affidavits declaring that they are providing certain benefits, that they're providing certain wages, so there are a number of checks along the way," Salinas said.

The City of Houston Mayor's Office of Economic Development is responsible for ensuring tax-break deals are followed and will continue to be under the updated ordinance.

ABC13 examined city records and found that since 2004, the city has awarded only 21 tax breaks.

Eyewitness News also found multiple instances in which the city extended deadlines when it determined companies receiving breaks could not meet them.

The ordinance says the reforms passed Wednesday apply only to tax abatements the city grants in the future.