1-1  By:  Dutton (Senate Sponsor - Whitmire)               H.B. No. 1872
    1-2        (In the Senate - Received from the House May 10, 1993;
    1-3  May 12, 1993, read first time and referred to Committee on Economic
    1-4  Development; May 24, 1993, reported favorably by the following
    1-5  vote:  Yeas 8, Nays 1; May 24, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Parker             x                               
    1-9        Lucio              x                               
   1-10        Ellis              x                               
   1-11        Haley                                         x    
   1-12        Harris of Dallas   x                               
   1-13        Harris of Tarrant          x                       
   1-14        Leedom             x                               
   1-15        Madla              x                               
   1-16        Rosson             x                               
   1-17        Shapiro            x                               
   1-18        Wentworth                                     x    
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to certain building projects as enterprise zone projects.
   1-23        SECTION 1.  Section 2(b), Texas Enterprise Zone Act (Article
   1-24  5190.7, Vernon's Texas Civil Statutes), is amended to read as
   1-25  follows:
   1-26        (b)  It is therefore the public policy of this state to
   1-27  provide the people of this state with the necessary means to assist
   1-28  communities, their residents, and the private sector to create the
   1-29  proper economic and social environment to induce the investment of
   1-30  private resources in productive business enterprises located in
   1-31  severely distressed areas and to provide employment to and create
   1-32  housing opportunities for residents of those areas.  In achieving
   1-33  this objective, through this Act the state seeks to provide
   1-34  appropriate investments, tax benefits, and regulatory relief to
   1-35  encourage the business community to commit its financial
   1-36  participation.  Accordingly, the legislature declares the
   1-37  revitalization of enterprise zones through the concerted efforts of
   1-38  government and the private sector to be a public purpose.
   1-39        SECTION 2.  Section 3(a)(11), Texas Enterprise Zone Act
   1-40  (Article 5190.7, Vernon's Texas Civil Statutes), is amended to read
   1-41  as follows:
   1-42              (11)  "Qualified business" means a person, including a
   1-43  corporation or other entity, that the department, for purposes of
   1-44  state benefits under this Act, and a governing body, for purposes
   1-45  of local benefits, certifies:
   1-46                    (A)  to have met the following criteria:
   1-47                          (i) <(A)>  the person is engaged in or has
   1-48  provided substantial commitment to initiate the active conduct of a
   1-49  trade or business in the zone; and
   1-50                          (ii) <(B)>  at least 25 percent of the
   1-51  business's new employees in the zone are residents of any zone
   1-52  within the governing body's or bodies' jurisdiction or economically
   1-53  disadvantaged individuals; or
   1-54                    (B)  as a builder that has demonstrated:
   1-55                          (i)  proficiency in residential
   1-56  construction in the state by providing five satisfactory homeowner
   1-57  references for properties constructed by the builder in the
   1-58  preceding three years that include the name of the property and the
   1-59  builder of the property, together with copies of inspection reports
   1-60  performed by code-certified residential inspectors or municipal
   1-61  inspectors on the residences, or other satisfactory evidence;
   1-62                          (ii)  financial stability by providing bank
   1-63  references, financial compilations, and copies of two years of tax
   1-64  returns, or other satisfactory evidence; and
   1-65                          (iii)  participation in a 10-year insured
   1-66  warranty program.
   1-67        SECTION 3.  Sections 10(b) and (i), Texas Enterprise Zone Act
   1-68  (Article 5190.7, Vernon's Texas Civil Statutes), are amended to
    2-1  read as follows:
    2-2        (b)  The application to the department must include:
    2-3              (1)  a complete description of the conditions in the
    2-4  zone that constitute pervasive poverty, unemployment, and economic
    2-5  distress for purposes of Subsection (b) of Section 4 of this Act;
    2-6              (2)  a description of each municipality's or county's
    2-7  procedures and efforts to facilitate and encourage participation by
    2-8  and negotiation between all affected entities in the zone in which
    2-9  the qualified business is located;
   2-10              (3)  an economic analysis of the plans of the qualified
   2-11  business for expansion, revitalization, or other activity in the
   2-12  zone, including the anticipated number of new permanent jobs it
   2-13  will create, the anticipated number of permanent jobs it will
   2-14  retain, the amount of investment to be made in the zone, and other
   2-15  information that the department requires; <and>
   2-16              (4)  a description of the local effort made by the
   2-17  municipality or county, the administrative authority, the qualified
   2-18  business, and other affected entities to achieve development and
   2-19  revitalization of the zone; and
   2-20              (5)  if the qualified business is a builder proposing a
   2-21  housing project, a complete description of the new residential
   2-22  housing to be constructed, including preliminary plans, number of
   2-23  units to be constructed, estimated sales price of homes, statement
   2-24  of affirmative action participation in employment practices,
   2-25  statement of coordinated use of other federal, state, or local
   2-26  funds to enhance the project, and other enhancements to the
   2-27  project.
   2-28        (i)  Factors to be considered in evaluating the local effort
   2-29  on the part of a public entity include:
   2-30              (1)  tax abatement, deferral, refunds, or other tax
   2-31  incentives;
   2-32              (2)  regulatory relief, including:
   2-33                    (A)  zoning changes or variances;
   2-34                    (B)  exemptions from unnecessary building code
   2-35  requirements, impact fees, or inspection fees; and
   2-36                    (C)  streamlined permitting;
   2-37              (3)  enhanced municipal services, including:
   2-38                    (A)  improved police and fire protection;
   2-39                    (B)  institution of community crime prevention
   2-40  programs; and
   2-41                    (C)  special public transit routes or reduced
   2-42  fares;
   2-43              (4)  improvements in community facilities, including:
   2-44                    (A)  capital improvements in water and sewer
   2-45  facilities;
   2-46                    (B)  road repair; and
   2-47                    (C)  creation or improvement of parks;
   2-48              (5)  improvements to housing, including:
   2-49                    (A)  low interest loans for housing
   2-50  rehabilitation, <or> improvement, or new construction; and
   2-51                    (B)  transfer of abandoned housing to individuals
   2-52  or community groups;
   2-53              (6)  business and industrial development services,
   2-54  including:
   2-55                    (A)  low interest loans for business;
   2-56                    (B)  use of surplus school buildings or other
   2-57  underutilized publicly owned facilities as small business
   2-58  incubators;
   2-59                    (C)  provision of publicly owned land for
   2-60  development purposes, including residential, commercial, or
   2-61  industrial development;
   2-62                    (D)  creation of special one-stop permitting and
   2-63  problem resolution centers or ombudsmen; and
   2-64                    (E)  promotion and marketing services; and
   2-65              (7)  job training and employment services, including:
   2-66                    (A)  retraining programs;
   2-67                    (B)  literacy and employment skills programs;
   2-68                    (C)  vocational education; and
   2-69                    (D)  customized job training.
   2-70        SECTION 4.  The importance of this legislation and the
    3-1  crowded condition of the calendars in both houses create an
    3-2  emergency and an imperative public necessity that the
    3-3  constitutional rule requiring bills to be read on three several
    3-4  days in each house be suspended, and this rule is hereby suspended,
    3-5  and that this Act take effect and be in force from and after its
    3-6  passage, and it is so enacted.
    3-7                               * * * * *
    3-8                                                         Austin,
    3-9  Texas
   3-10                                                         May 24, 1993
   3-11  Hon. Bob Bullock
   3-12  President of the Senate
   3-13  Sir:
   3-14  We, your Committee on Economic Development to which was referred
   3-15  H.B. No. 1872, have had the same under consideration, and I am
   3-16  instructed to report it back to the Senate with the recommendation
   3-17  that it do pass and be printed.
   3-18                                                         Parker,
   3-19  Chairman
   3-20                               * * * * *
   3-21                               WITNESSES
   3-22                                                  FOR   AGAINST  ON
   3-23  ___________________________________________________________________
   3-24  Name:  Steve Hudson                              x
   3-25  Representing:  Texas Assn. of Builders
   3-26  City:  Austin
   3-27  -------------------------------------------------------------------
   3-28  Name:  Max Hoyt                                  x
   3-29  Representing:  Greater Houston Builders Assn
   3-30  City:  Houston
   3-31  -------------------------------------------------------------------