By Oliveira, et al. H.B. No. 2065
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to enterprise zones.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. (a) Subchapter B, Chapter 2303, Government Code,
1-5 is amended to conform to Section 25, Chapter 986, Acts of the 73rd
1-6 Legislature, Regular Session, 1993, by adding and amending Section
1-7 2303.0525 to read as follows:
1-8 Sec. 2303.0525. COST-BENEFIT ANALYSIS. (a) On or before
1-9 December 1 of each even-numbered year, the department shall prepare
1-10 a cost-benefit analysis of the enterprise zone program.
1-11 (b) The department shall submit the analysis to the state
1-12 auditor for review and comment on the methodology and conclusions
1-13 of the analysis.
1-14 (c) Before the regular session of the legislature convenes,
1-15 the state auditor shall submit the analysis and the state auditor's
1-16 comments on the analysis to the governor, the lieutenant governor,
1-17 and the speaker of the house of representatives.
1-18 (b) Section 25, Chapter 986, Acts of the 73rd Legislature,
1-19 Regular Session, 1993, is repealed.
1-20 SECTION 2. Section 2303.102, Government Code, is amended to
1-21 read as follows:
1-22 Sec. 2303.102. Area of Pervasive Poverty, Unemployment, and
1-23 Economic Distress. (a) An area is an area of pervasive poverty,
1-24 unemployment, and economic distress for the purposes of Section
2-1 2303.101 if:
2-2 (1) the average rate of unemployment in the area
2-3 during the most recent 12-month period for which data are available
2-4 was at least one and one-half times the <local,> state<, or
2-5 national> average for that period; or
2-6 (2) the area had a population loss of at least 12
2-7 <nine> percent during the most recent six-year period or at least
2-8 four <three> percent during the most recent three-year period; and
2-9 (A) the area is a low-income poverty area;
2-10 (B) the area is in a jurisdiction or pocket of
2-11 poverty eligible for urban development action grants under federal
2-12 law, according to the most recent certification available from the
2-13 United States Department of Housing and Urban Development;
2-14 (C) at least 70 percent of the residents or
2-15 households of the area have an income that is less than 80 percent
2-16 of the median income of the residents or households of the locality
2-17 or state, whichever is less; or
2-18 (D) the nominating body establishes to the
2-19 satisfaction of the department that:
2-20 (i) chronic abandonment or demolition of
2-21 commercial or residential structures exists in the area;
2-22 (ii) substantial tax arrearages for
2-23 commercial or residential structures exist in the area;
2-24 (iii) substantial losses of businesses or
2-25 jobs have occurred in the area; <or>
2-26 (iv) the area is part of a disaster area
2-27 declared by the state or federal government during the preceding 18
3-1 months; or
3-2 (v) the area has had a substantial
3-3 increase in the number of individuals younger than 18 years of age
3-4 arrested due to criminal activity.
3-5 (b) Labor force and population data are considered current
3-6 if:
3-7 (1) they are the most recently published estimates; or
3-8 (2) the enterprise zone application containing the
3-9 data is received by the department before the 61st day after the
3-10 date revised estimates of that data are published.
3-11 SECTION 3. Section 2303.109(b), Government Code, is amended
3-12 to read as follows:
3-13 (b) Notwithstanding Subsection (a), an area designated as a
3-14 federal enterprise zone, federal empowerment zone, or federal
3-15 enterprise community may be designated as an enterprise zone
3-16 without further qualification for longer than seven years but not
3-17 longer than the period permitted by federal law.
3-18 SECTION 4. Section 2303.205(c), Government Code, is amended
3-19 to read as follows:
3-20 (c) The report must include<:>
3-21 <(1)> for the year preceding the date of the report:
3-22 (1) <(A)> a list of local incentives for community
3-23 development available in the zone;
3-24 (2) <(B)> the use of local incentives for which the
3-25 governing body provided in the ordinance or order nominating the
3-26 enterprise zone and the effect of those incentives on revenue;
3-27 (3) <(C)> the number of businesses assisted, located,
4-1 and retained in the zone since its designation due to the existence
4-2 of the enterprise zone;
4-3 (4) <(D)> a summary of <copy of the report required
4-4 under Section 103, Internal Revenue Code of 1986 (26 U.S.C. Section
4-5 103), for> all industrial revenue bonds issued to finance projects
4-6 located in the zone; and
4-7 (5) <(E)> a description of all efforts made to attain
4-8 <statement on the attainment of> revitalization goals for the
4-9 zone<; and>
4-10 <(2) for the year preceding the date on which the area
4-11 was designated as an enterprise zone, the number of businesses
4-12 located in the zone>.
4-13 SECTION 5. Subchapter C, Chapter 2303, Government Code, is
4-14 amended by adding Section 2303.112 to read as follows:
4-15 Sec. 2303.112. EXCEPTION TO LIMIT ON DESIGNATION.
4-16 Designation as an enterprise zone under this chapter of an area
4-17 designated as a federal enterprise zone, federal empowerment zone,
4-18 or federal enterprise community located in a municipality or county
4-19 does not reduce the number of enterprise zones that the
4-20 municipality or county may have designated under this chapter.
4-21 SECTION 6. Subchapter F, Chapter 2303, Government Code, is
4-22 amended to conform to Sections 26 and 27, Chapter 986, Acts of the
4-23 73rd Legislature, Regular Session, 1993, Sections 1-3, Chapter 974,
4-24 Acts of the 73rd Legislature, Regular Session, 1993, and Sections 5
4-25 and 8, Chapter 231, Acts of the 73rd Legislature, Regular Session,
4-26 1993, and further amended to read as follows:
4-27 SUBCHAPTER F. QUALIFIED BUSINESSES AND ENTERPRISE PROJECTS
5-1 Sec. 2303.401. DEFINITION. In this subchapter, "new
5-2 permanent job" means a new employment position created by a
5-3 qualified business as described by Section 2303.402 that:
5-4 (1) has provided at least 1,820 hours of employment a
5-5 year to a qualified employee; and
5-6 (2) is intended to exist during the period that the
5-7 qualified business is designated as an enterprise project under
5-8 Section 2303.406.
5-9 Sec. 2303.402. Qualified Business. (a) A person is a
5-10 qualified business if the department, for the purpose of state
5-11 benefits under this chapter, or the governing body of an enterprise
5-12 zone, for the purpose of local benefits, certifies that:
5-13 (1) the person is engaged in or has provided
5-14 substantial commitment to initiate the active conduct of a trade or
5-15 business in the enterprise zone; and
5-16 (2) at least 25 percent of the person's new employees
5-17 in the enterprise zone are:
5-18 (A) residents of any enterprise zone in the
5-19 jurisdiction of the governing body of the enterprise zone; or
5-20 (B) economically disadvantaged individuals.
5-21 (b) The governing body of an enterprise zone may certify a
5-22 franchise or subsidiary of a new or existing business as a
5-23 qualified business if the franchise or subsidiary:
5-24 (1) is located entirely in the enterprise zone; and
5-25 (2) maintains separate books and records of the
5-26 business activity conducted in the zone.
5-27 (c) For the purposes of this section, an economically
6-1 disadvantaged individual is an individual who:
6-2 (1) was unemployed for at least three months before
6-3 obtaining employment with the qualified business;
6-4 (2) receives public assistance benefits, including
6-5 welfare payments or food stamps, based on need and intended to
6-6 alleviate poverty;
6-7 (3) is an economically disadvantaged individual, as
6-8 defined by Section 4(8), Job Training Partnership Act (29 U.S.C.
6-9 Section 1503(8));
6-10 (4) is an individual with handicaps, as defined by 29
6-11 U.S.C. Section 706(8);
6-12 (5) is an inmate, as defined by Section 498.001;
6-13 (6) is entering the workplace after being confined in
6-14 a facility operated by <unit of> the institutional division of the
6-15 Texas Department of Criminal Justice or under contract with the
6-16 Texas Department of Criminal Justice <or a correctional facility
6-17 authorized by Chapter 495>; <or>
6-18 (7) has been released by the Texas Youth Commission
6-19 and is on parole, if state law provides for such a person to be on
6-20 parole; or
6-21 (8) meets the current low income or moderate income
6-22 limits developed under Section 8, United States Housing Act of 1937
6-23 (42 U.S.C. Section 1437f et seq.).
6-24 Sec. 2303.403 <2303.402>. Prohibition on Qualified Business
6-25 Certification. If the department determines that the governing
6-26 body of an enterprise zone is not complying with this chapter, the
6-27 department shall prohibit the certification of a qualified business
7-1 in the zone until the department determines that the governing body
7-2 is complying with this chapter. The department may not designate
7-3 more than 65 businesses as enterprise projects during any biennium.
7-4 Sec. 2303.404. REQUEST FOR APPLICATION FOR ENTERPRISE
7-5 PROJECT DESIGNATION. (a) A qualified business in an enterprise
7-6 zone described by Subsection (b) may request that the governing
7-7 body of the enterprise zone apply to the department for designation
7-8 of the business as an enterprise project. The request must also be
7-9 made to the enterprise zone's administrative authority, if one
7-10 exists.
7-11 (b) A request may be made under this section only to the
7-12 governing body of an enterprise zone that has:
7-13 (1) an unemployment rate that is at least one and
7-14 one-half times the state average; or
7-15 (2) a population loss of at least:
7-16 (A) 12 percent during the most recent six-year
7-17 period; or
7-18 (B) four percent during the most recent
7-19 three-year period.
7-20 Sec. 2303.405. APPLICATION FOR ENTERPRISE PROJECT
7-21 DESIGNATION. (a) If the governing body of an enterprise zone or
7-22 the governing body and administrative authority of an enterprise
7-23 zone, as appropriate, approve a request made under Section
7-24 2303.404, the governing body may apply to the department for the
7-25 designation of the qualified business as an enterprise project.
7-26 (b) An application must:
7-27 (1) describe completely the conditions in the
8-1 enterprise zone that constitute pervasive poverty, unemployment,
8-2 and economic distress for purposes of Section 2303.101;
8-3 (2) describe the procedures and efforts of the
8-4 governmental entity or entities that applied to have the area
8-5 designated as an enterprise zone to facilitate and encourage
8-6 participation by and negotiation among all affected entities in the
8-7 zone in which the qualified business is located;
8-8 (3) contain an economic analysis of the plans of the
8-9 qualified business for expansion, revitalization, or other activity
8-10 in the enterprise zone, including:
8-11 (A) the number of anticipated new permanent jobs
8-12 the business will create;
8-13 (B) the anticipated number of permanent jobs the
8-14 business will retain;
8-15 (C) the amount of investment to be made in the
8-16 zone; and
8-17 (D) other information the department requires;
8-18 and
8-19 (4) describe the local effort made by the governmental
8-20 entity or entities that applied to have the area designated as an
8-21 enterprise zone, the administrative authority, if one exists, the
8-22 qualified business, and other affected entities to develop and
8-23 revitalize the zone.
8-24 (c) For the purposes of this section, local effort to
8-25 develop and revitalize an enterprise zone is:
8-26 (1) the willingness of public entities in the zone to
8-27 provide services, incentives, and regulatory relief authorized by
9-1 this chapter and to negotiate with the qualified business for which
9-2 application is made and with neighborhood enterprise associations
9-3 and other local groups or businesses to achieve the public purposes
9-4 of this chapter; and
9-5 (2) the effort of the qualified business and other
9-6 affected entities to cooperate in achieving those public purposes.
9-7 (d) Factors to be considered in evaluating the local effort
9-8 of a public entity include:
9-9 (1) tax abatement, deferral, refunds, or other tax
9-10 incentives;
9-11 (2) regulatory relief, including:
9-12 (A) zoning changes or variances;
9-13 (B) exemptions from unnecessary building code
9-14 requirements, impact fees, or inspection fees; and
9-15 (C) streamlined permitting;
9-16 (3) enhanced municipal services, including:
9-17 (A) improved police and fire protection;
9-18 (B) institution of community crime prevention
9-19 programs; and
9-20 (C) special public transportation routes or
9-21 reduced fares;
9-22 (4) improvements in community facilities, including:
9-23 (A) capital improvements in water and sewer
9-24 facilities;
9-25 (B) road repair; and
9-26 (C) creation or improvement of parks;
9-27 (5) improvements to housing, including:
10-1 (A) low-interest loans for housing
10-2 rehabilitation, improvement, or new construction; and
10-3 (B) transfer of abandoned housing to individuals
10-4 or community groups;
10-5 (6) business and industrial development services,
10-6 including:
10-7 (A) low-interest loans for business;
10-8 (B) use of surplus school buildings or other
10-9 underutilized publicly owned facilities as small business
10-10 incubators;
10-11 (C) provision of publicly owned land for
10-12 development purposes, including residential, commercial, or
10-13 industrial development;
10-14 (D) creation of special one-stop permitting and
10-15 problem resolution centers or ombudsmen; and
10-16 (E) promotion and marketing services; and
10-17 (7) job training and employment services, including:
10-18 (A) retraining programs;
10-19 (B) literacy and employment skills programs;
10-20 (C) vocational education; and
10-21 (D) customized job training.
10-22 (e) Factors to be considered in evaluating the local effort
10-23 of a private entity include:
10-24 (1) the willingness to negotiate or cooperate in the
10-25 achievement of the purposes of this chapter;
10-26 (2) commitments to hire underskilled, inexperienced,
10-27 disadvantaged, or displaced workers who reside in the enterprise
11-1 zone;
11-2 (3) commitments to hire minority workers and to
11-3 contract with minority-owned businesses;
11-4 (4) provision of technical and vocational job training
11-5 for enterprise zone residents or economically disadvantaged
11-6 employees;
11-7 (5) provision of child care for employees;
11-8 (6) commitments to implement and contribute to a
11-9 tutoring or mentoring program for area students;
11-10 (7) prevention or reduction of juvenile crime
11-11 activity; and
11-12 (8) the willingness to make contributions to the
11-13 well-being of the community, such as job training, or the donation
11-14 of land for parks or other public purposes.
11-15 Sec. 2303.406. ENTERPRISE PROJECT DESIGNATION. (a) The
11-16 department may designate a business as an enterprise project only
11-17 if the department determines that:
11-18 (1) the business is a qualified business under Section
11-19 2303.402 that is located in or has made a substantial commitment to
11-20 locate in an enterprise zone described by Section 2303.404(b);
11-21 (2) the governing body of the enterprise zone making
11-22 the application has demonstrated that a high level of cooperation
11-23 exists among public, private, and neighborhood entities in the
11-24 zone; and
11-25 (3) the designation will contribute significantly to
11-26 the achievement of the plans of the governing body making the
11-27 application for development and revitalization of the zone.
12-1 (b) The department shall designate qualified businesses as
12-2 enterprise projects on a competitive basis. The department shall
12-3 make its designation decisions using a weighted scale in which:
12-4 (1) 50 percent of the evaluation depends on the
12-5 economic distress of:
12-6 (A) the enterprise zone in which a proposed
12-7 enterprise project is located; and
12-8 (B) the area within the enterprise zone where
12-9 the project is located;
12-10 (2) 25 percent of the evaluation depends on the local
12-11 effort to achieve development and revitalization of the enterprise
12-12 zone; and
12-13 (3) 25 percent of the evaluation depends on the
12-14 evaluation criteria as determined by the department, which must
12-15 include:
12-16 (A) the level of cooperation and support the
12-17 project applicant commits to the revitalization goals of the zone;
12-18 and
12-19 (B) the type and wage level of the jobs to be
12-20 created or retained by the business.
12-21 (c) The designation of an enterprise project is effective
12-22 until the fifth anniversary of the date on which the designation is
12-23 made.
12-24 (d) The department may remove an enterprise project
12-25 designation if it determines that the business is not complying
12-26 with a requirement for its designation.
12-27 Sec. 2303.407. ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
13-1 When the department designates a business as an enterprise project,
13-2 the department shall allocate to the project the maximum number of
13-3 new permanent jobs or retained jobs eligible to be included in a
13-4 computation of a tax refund for the project. The number may not
13-5 exceed 625 or a number equal to 110 percent of the number of
13-6 anticipated new permanent jobs or retained jobs specified in the
13-7 application for designation of the business as an enterprise
13-8 project under Section 2303.405, whichever is less.
13-9 Sec. 2303.408. DURATION OF CERTAIN DESIGNATIONS.
13-10 <Sec. 2303.403. ENTERPRISE PROJECT DESIGNATION. (a) After August
13-11 31, 1993, the department may not designate a business as an
13-12 enterprise project.> The department's designation of a qualified
13-13 business as an enterprise project <before that date> is effective
13-14 until the fifth anniversary of the date on which the designation is
13-15 made regardless of whether the enterprise zone in which the project
13-16 is located expires before the fifth anniversary of the project.
13-17 <(b) The department may remove an enterprise project
13-18 designation if it determines that the business is not complying
13-19 with a requirement for its designation.>
13-20 SECTION 7. Section 2303.505(a), Government Code, is amended
13-21 to read as follows:
13-22 (a) To encourage the development of areas designated as
13-23 enterprise zones, the governing body of a municipality through a
13-24 program may refund its local sales and use taxes paid by a
13-25 qualified business on:
13-26 (1) the purchase, lease, or rental of equipment or
13-27 machinery for use in an enterprise zone; <or>
14-1 (2) the purchase of material for use in remodeling,
14-2 rehabilitating, or constructing a structure in an enterprise zone;
14-3 (3) labor for remodeling, rehabilitating, or
14-4 constructing a structure in an enterprise zone; and
14-5 (4) electricity and natural gas purchased and consumed
14-6 in the normal course of business in the enterprise zone.
14-7 SECTION 8. Section 2303.511(b), Government Code, is amended
14-8 to read as follows:
14-9 (b) A reduction in utility rates under Subsection (a)(9)(B)
14-10 is subject to the agreement of the affected utility and the
14-11 approval of the appropriate regulatory authority under Sections 16
14-12 and 17, Public Utility Regulatory Act (Article 1446c, Vernon's
14-13 Texas Civil Statutes). The rates may not be reduced more than five
14-14 percent below the lowest rate offered to any customer located in
14-15 the enterprise zone, including economic development rates and
14-16 standby rates. A qualified enterprise project or the governing
14-17 body of the enterprise zone may petition the appropriate regulatory
14-18 authority to receive a reduced rate under this section, and the
14-19 regulatory authority may order that rates be reduced. In making
14-20 its determination under this section, the regulatory authority
14-21 shall consider revitalization goals for the enterprise zone. In
14-22 setting the rates of the utility the appropriate regulatory
14-23 authority shall allow the utility to recover the amount of the
14-24 reduction.
14-25 SECTION 9. Section 2303.514, Government Code, is amended to
14-26 read as follows:
14-27 Sec. 2303.514. Waiver of Performance Bond. A subcontractor
15-1 <prime contractor> is not required to execute a performance bond
15-2 under Chapter 2253 if:
15-3 (1) the construction, alteration, repair, or other
15-4 public work to be performed under the contract is entirely in an
15-5 enterprise zone; and
15-6 (2) the amount of the contract does not exceed
15-7 $200,000.
15-8 SECTION 10. Section 481.155, Government Code, is amended by
15-9 adding Subsection (h) to read as follows:
15-10 (h) In awarding a grant under this section, the executive
15-11 director shall give priority to a project that is located in an
15-12 enterprise zone as defined by Section 2303.003.
15-13 SECTION 11. Section 151.429(a), Tax Code, is amended to read
15-14 as follows:
15-15 (a) An enterprise project is eligible for a refund in the
15-16 amount provided by this section of the taxes imposed by this
15-17 chapter on purchases of:
15-18 (1) equipment or machinery sold to an enterprise
15-19 project for use in an enterprise zone; <or>
15-20 (2) building materials sold to an enterprise project
15-21 for use in remodeling, rehabilitating, or constructing a structure
15-22 in an enterprise zone;
15-23 (3) labor for remodeling, rehabilitating, or
15-24 constructing a structure by an enterprise project in an enterprise
15-25 zone; and
15-26 (4) electricity and natural gas purchased and consumed
15-27 in the normal course of business in the enterprise zone.
16-1 SECTION 12. Section 312.203, Tax Code, is amended to read as
16-2 follows:
16-3 Sec. 312.203. Expiration of Reinvestment Zone. The
16-4 designation of a reinvestment zone for residential or
16-5 commercial-industrial tax abatement expires five years after the
16-6 date of the designation and may be renewed for periods not to
16-7 exceed five years, except that a reinvestment zone that is a state
16-8 enterprise zone is designated for the same period as a state
16-9 enterprise zone as provided by Chapter 2303, Government Code. The
16-10 expiration of the designation does not affect an existing tax
16-11 abatement agreement made under this subchapter.
16-12 SECTION 13. Section 312.204, Tax Code, is amended by adding
16-13 Subsection (f) to read as follows:
16-14 (f) The agreements made with owners of property in an
16-15 enterprise zone that is also designated as a reinvestment zone are
16-16 not required to contain identical terms for the portion of the
16-17 value of property that is to be exempt and the duration of the
16-18 agreement.
16-19 SECTION 14. Section 312.206, Tax Code, is amended by adding
16-20 Subsection (e) to read as follows:
16-21 (e) If property taxes on property located in an enterprise
16-22 zone are abated under this chapter, the governing body of each
16-23 taxing jurisdiction may execute a written agreement with the owner
16-24 of the property not later than the 90th day after the date the
16-25 municipal or county agreement is executed, whichever is later. The
16-26 agreement may, but is not required to, contain terms that are
16-27 identical to those contained in the agreement with the
17-1 municipality, county, or both, whichever applies, and the only
17-2 terms of the agreement that may vary are the portion of the
17-3 property that is to be exempt from taxation under the agreement and
17-4 the duration of the agreement.
17-5 SECTION 15. Section 2(10), Development Corporation Act of
17-6 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
17-7 read as follows:
17-8 (10) "Project" shall mean the land, buildings,
17-9 equipment, facilities, and improvements (one or more) found by the
17-10 board of directors to be required or suitable for the promotion of
17-11 development and expansion of manufacturing and industrial
17-12 facilities, transportation facilities (including but not limited to
17-13 airports, ports, mass commuting facilities, and parking
17-14 facilities), sewage or solid waste disposal facilities, recycling
17-15 facilities, air or water pollution control facilities, facilities
17-16 for the furnishing of water to the general public, distribution
17-17 centers, small warehouse facilities capable of serving as
17-18 decentralized storage and distribution centers, and facilities
17-19 which are related to any of the foregoing, and in furtherance of
17-20 the public purposes of this Act, all as defined in the rules of the
17-21 department, irrespective of whether in existence or required to be
17-22 identified, acquired, or constructed thereafter. As used in this
17-23 Act, the term "development areas" shall mean any area or areas of a
17-24 city that the city finds and determines, after a public hearing,
17-25 should be developed in order to meet the development objectives of
17-26 the city. In addition, in blighted or economically depressed
17-27 areas, development areas, federally designated empowerment zones
18-1 and enterprise communities designated under Section 1391, Internal
18-2 Revenue Code of 1986, or federally assisted new communities located
18-3 within a home-rule city or a federally designated economically
18-4 depressed county of less than 50,000 persons according to the last
18-5 federal decennial census, a project may include the land,
18-6 buildings, equipment, facilities, and improvements (one or more)
18-7 found by the board of directors to be required or suitable for the
18-8 promotion of commercial development and expansion and in
18-9 furtherance of the public purposes of this Act, or for use by
18-10 commercial enterprises, all as defined in the rules of the
18-11 department, irrespective of whether in existence or required to be
18-12 acquired or constructed thereafter. As used in this Act, the term
18-13 blighted or economically depressed areas shall mean those areas and
18-14 areas immediately adjacent thereto within a city which by reason of
18-15 the presence of a substantial number of substandard, slum,
18-16 deteriorated, or deteriorating structures, or which suffer from a
18-17 high relative rate of unemployment, or which have been designated
18-18 and included in a tax incremental district created under Chapter
18-19 695, Acts of the 66th Legislature, Regular Session, 1979 (Article
18-20 1066d, Vernon's Texas Civil Statutes), or any combination of the
18-21 foregoing, the city finds and determines, after a hearing,
18-22 substantially impair or arrest the sound growth of the city, or
18-23 constitute an economic or social liability and are a menace to the
18-24 public health, safety, or welfare in their present condition and
18-25 use. The department shall adopt guidelines that describe the
18-26 kinds of areas that may be considered to be blighted or
18-27 economically depressed. The city shall consider these guidelines
19-1 in making its findings and determinations. Notice of the hearing
19-2 at which the city considers establishment of a development area or
19-3 an economically depressed or blighted area shall be posted at the
19-4 city hall before the hearing.
19-5 "Federally assisted new communities" shall mean those
19-6 federally assisted areas which have received or will receive
19-7 assistance in the form of loan guarantees under Title X of the
19-8 National Housing Act and a portion of the federally assisted area
19-9 has received grants under Section 107(a)(1) of the Housing and
19-10 Community Development Act of 1974, as amended.
19-11 SECTION 16. Section 21, Development Corporation Act of 1979
19-12 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
19-13 as follows:
19-14 Sec. 21. Every unit is hereby authorized to utilize a
19-15 corporation to issue bonds on its behalf to finance the cost of
19-16 projects, including projects in federally designated empowerment
19-17 zones and enterprise communities or enterprise zones designated
19-18 under the Texas Enterprise Zone Act, to promote and develop new and
19-19 expanded business <industrial and manufacturing> enterprises to
19-20 promote and encourage employment and the public welfare. No unit
19-21 is or shall be authorized to lend its credit or grant any public
19-22 money or thing of value in aid of a corporation. The unit will
19-23 approve all programs and expenditures of the corporation and
19-24 annually review any financial statements of the corporation, and at
19-25 all times the unit will have access to the books and records of the
19-26 corporation.
19-27 SECTION 17. (a) An enterprise project designated under
20-1 Chapter 2303, Government Code, after August 31, 1995, may not
20-2 receive a tax refund under Section 151.429, Tax Code, as amended by
20-3 this Act, or a tax reduction under Section 171.1015, Tax Code,
20-4 before September 1, 1997.
20-5 (b) Not more than $8 million in state sales and use taxes
20-6 may be refunded to enterprise projects designated during the
20-7 biennium beginning September 1, 1995.
20-8 SECTION 18. Notwithstanding the other provisions of this
20-9 Act, Sections 5, 6, 7, 8, 9, and 10, Chapter 231, Acts of the 73rd
20-10 Legislature, Regular Session, 1993, shall continue in existence and
20-11 be applicable to a qualified hotel project as defined by Chapter
20-12 231, Acts of the 73rd Legislature, Regular Session, 1993. A
20-13 qualified hotel project shall continue to be eligible to receive
20-14 tax refunds under Section 151.429(h), Tax Code, in accordance with
20-15 the provisions of Chapter 231, Acts of the 73rd Legislature,
20-16 Regular Session, 1993. A qualified hotel project may continue to
20-17 be designated as a qualified business and an enterprise project in
20-18 accordance with the provisions of Chapter 231, Acts of the 73rd
20-19 Legislature, Regular Session, 1993. Refunds to a qualified hotel
20-20 project shall not affect the refunds that may be made under the
20-21 provisions of Section 17 of this Act or affect the number of
20-22 enterprise projects that the department may approve.
20-23 SECTION 19. This Act takes effect September 1, 1995.
20-24 SECTION 20. The importance of this legislation and the
20-25 crowded condition of the calendars in both houses create an
20-26 emergency and an imperative public necessity that the
20-27 constitutional rule requiring bills to be read on three several
21-1 days in each house be suspended, and this rule is hereby suspended.