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.
1-22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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 -------------------------------------------------------------------