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House Bill 1982 |
House Author: Murphy |
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Effective: Vetoed |
Senate Sponsor: Hinojosa |
House Bill 1982 amends Government Code and Tax Code provisions relating to the enterprise zone program. Among other provisions, the bill:
· removes a restriction on a county’s authority to nominate an enterprise project located within the jurisdiction of a municipality located in the county;
· requires a county nominating an enterprise project located within the jurisdiction of a municipality to enter into an interlocal agreement with the municipality specifying which governmental body has administrative authority over the project;
· authorizes new permanent jobs held by veterans to satisfy certain minimum employment requirements for the purpose of local incentives;
· authorizes an enterprise project designation to be split into two half designations and establishes the maximum refund for a half enterprise project;
· makes the tax refund for double and triple jumbo enterprise projects based on the creation of new permanent jobs, rather than on the creation or retention of jobs; and
· specifies that a state-mandated or federally mandated capital investment does not qualify as a committed capital investment in an enterprise project.
Reason Given for Veto: "I applaud the intent of House Bill 1982 to improve the enterprise zone program by requiring projects that get the biggest tax refunds to create more jobs rather than focusing on job retention. However, HB 1982 also contains ambiguous language which could hurt, rather than help, the program. Therefore, I veto HB 1982 and will recommend that the lieutenant governor and speaker of the House conduct an interim study to review this issue and ways to improve the program."