Enrolled Bill Summary

            House Bill 2001 limits the current cap of 65 businesses that can be designated as enterprise projects under the enterprise zone program during any biennium to the biennia beginning September 1, 1997, and September 1, 1999, and permits the Texas Department of Commerce to withhold up to five project slots at its discretion. It amends certain requirements restricting the geographic applicability of certain incentives for a governmental entity nominating an area as an enterprise zone. It also requires a business to make a commitment to create or retain at least 10 jobs in a community of 50,000 or less, and 25 jobs in one larger than 50,000, in order to be designated as an enterprise project, adjusts the scoring system used to select enterprise projects by changing the relative weights of existing criteria and adding a weight for the amount of capital investment, and repeals certain provisions relating to restricting zone boundary changes, state auditor review, and refunds for job creation in enterprise zones.

            The act makes an enterprise project eligible for a tax refund for equipment rental, repair purchases, and electricity and natural gas used in certain leased or rented facilities, and it removes the requirement that the department annually certify the level of qualified employment to the Legislative Budget Board. Enterprise projects designated after August 31, 1997, may not receive the tax refunds, as amended by this act, or a tax reduction before September 1, 1999. Projects designated after August 31, 1999, may not receive refunds or reductions before September 1, 2001. The act limits the total amount of state sales and use tax per biennium that can be refunded to enterprise projects to $8 million for any biennium. The act also expands certain provisions relating to hotel projects near county or municipally owned convention centers to apply to municipalities of 440,000 or more and establishes restrictions.