73R9328 LJD-D
By Dutton H.B. No. 1872
Substitute the following for H.B. No. 1872:
By Yarbrough C.S.H.B. No. 1872
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain building projects as enterprise zone projects.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2(b), Texas Enterprise Zone Act (Article
1-5 5190.7, Vernon's Texas Civil Statutes), is amended to read as
1-6 follows:
1-7 (b) It is therefore the public policy of this state to
1-8 provide the people of this state with the necessary means to assist
1-9 communities, their residents, and the private sector to create the
1-10 proper economic and social environment to induce the investment of
1-11 private resources in productive business enterprises located in
1-12 severely distressed areas and to provide employment to and create
1-13 housing opportunities for residents of those areas. In achieving
1-14 this objective, through this Act the state seeks to provide
1-15 appropriate investments, tax benefits, and regulatory relief to
1-16 encourage the business community to commit its financial
1-17 participation. Accordingly, the legislature declares the
1-18 revitalization of enterprise zones through the concerted efforts of
1-19 government and the private sector to be a public purpose.
1-20 SECTION 2. Section 3(a)(11), Texas Enterprise Zone Act
1-21 (Article 5190.7, Vernon's Texas Civil Statutes), is amended to read
1-22 as follows:
1-23 (11) "Qualified business" means a person, including a
1-24 corporation or other entity, that the department, for purposes of
2-1 state benefits under this Act, and a governing body, for purposes
2-2 of local benefits, certifies:
2-3 (A) to have met the following criteria:
2-4 (i) <(A)> the person is engaged in or has
2-5 provided substantial commitment to initiate the active conduct of a
2-6 trade or business in the zone; and
2-7 (ii) <(B)> at least 25 percent of the
2-8 business's new employees in the zone are residents of any zone
2-9 within the governing body's or bodies' jurisdiction or economically
2-10 disadvantaged individuals; or
2-11 (B) as a builder that has demonstrated:
2-12 (i) proficiency in residential
2-13 construction in the state by providing five satisfactory homeowner
2-14 references for properties constructed by the builder in the
2-15 preceding three years that include the name of the property and the
2-16 builder of the property, together with copies of inspection reports
2-17 performed by code-certified residential inspectors or municipal
2-18 inspectors on the residences, or other satisfactory evidence;
2-19 (ii) financial stability by providing bank
2-20 references, financial compilations, and copies of two years of tax
2-21 returns, or other satisfactory evidence; and
2-22 (iii) participation in a 10-year insured
2-23 warranty program.
2-24 SECTION 3. Sections 10(b) and (i), Texas Enterprise Zone Act
2-25 (Article 5190.7, Vernon's Texas Civil Statutes), are amended to
2-26 read as follows:
2-27 (b) The application to the department must include:
3-1 (1) a complete description of the conditions in the
3-2 zone that constitute pervasive poverty, unemployment, and economic
3-3 distress for purposes of Subsection (b) of Section 4 of this Act;
3-4 (2) a description of each municipality's or county's
3-5 procedures and efforts to facilitate and encourage participation by
3-6 and negotiation between all affected entities in the zone in which
3-7 the qualified business is located;
3-8 (3) an economic analysis of the plans of the qualified
3-9 business for expansion, revitalization, or other activity in the
3-10 zone, including the anticipated number of new permanent jobs it
3-11 will create, the anticipated number of permanent jobs it will
3-12 retain, the amount of investment to be made in the zone, and other
3-13 information that the department requires; <and>
3-14 (4) a description of the local effort made by the
3-15 municipality or county, the administrative authority, the qualified
3-16 business, and other affected entities to achieve development and
3-17 revitalization of the zone; and
3-18 (5) if the qualified business is a builder proposing a
3-19 housing project, a complete description of the new residential
3-20 housing to be constructed, including preliminary plans, number of
3-21 units to be constructed, estimated sales price of homes, statement
3-22 of affirmative action participation in employment practices,
3-23 statement of coordinated use of other federal, state, or local
3-24 funds to enhance the project, and other enhancements to the
3-25 project.
3-26 (i) Factors to be considered in evaluating the local effort
3-27 on the part of a public entity include:
4-1 (1) tax abatement, deferral, refunds, or other tax
4-2 incentives;
4-3 (2) regulatory relief, including:
4-4 (A) zoning changes or variances;
4-5 (B) exemptions from unnecessary building code
4-6 requirements, impact fees, or inspection fees; and
4-7 (C) streamlined permitting;
4-8 (3) enhanced municipal services, including:
4-9 (A) improved police and fire protection;
4-10 (B) institution of community crime prevention
4-11 programs; and
4-12 (C) special public transit routes or reduced
4-13 fares;
4-14 (4) improvements in community facilities, including:
4-15 (A) capital improvements in water and sewer
4-16 facilities;
4-17 (B) road repair; and
4-18 (C) creation or improvement of parks;
4-19 (5) improvements to housing, including:
4-20 (A) low interest loans for housing
4-21 rehabilitation, <or> improvement, or new construction; and
4-22 (B) transfer of abandoned housing to individuals
4-23 or community groups;
4-24 (6) business and industrial development services,
4-25 including:
4-26 (A) low interest loans for business;
4-27 (B) use of surplus school buildings or other
5-1 underutilized publicly owned facilities as small business
5-2 incubators;
5-3 (C) provision of publicly owned land for
5-4 development purposes, including residential, commercial, or
5-5 industrial development;
5-6 (D) creation of special one-stop permitting and
5-7 problem resolution centers or ombudsmen; and
5-8 (E) promotion and marketing services; and
5-9 (7) job training and employment services, including:
5-10 (A) retraining programs;
5-11 (B) literacy and employment skills programs;
5-12 (C) vocational education; and
5-13 (D) customized job training.
5-14 SECTION 4. The importance of this legislation and the
5-15 crowded condition of the calendars in both houses create an
5-16 emergency and an imperative public necessity that the
5-17 constitutional rule requiring bills to be read on three several
5-18 days in each house be suspended, and this rule is hereby suspended,
5-19 and that this Act take effect and be in force from and after its
5-20 passage, and it is so enacted.