1-1 By: Oliveira, et al. (Senate Sponsor - Lucio) H.B. No. 2065
1-2 (In the Senate - Received from the House May 4, 1995;
1-3 May 5, 1995, read first time and referred to Committee on Economic
1-4 Development; May 24, 1995, reported favorably by the following
1-5 vote: Yeas 7, Nays 0; May 24, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to enterprise zones.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. (a) Subchapter B, Chapter 2303, Government Code,
1-11 is amended to conform to Section 25, Chapter 986, Acts of the 73rd
1-12 Legislature, Regular Session, 1993, by adding and amending Section
1-13 2303.0525 to read as follows:
1-14 Sec. 2303.0525. COST-BENEFIT ANALYSIS. (a) On or before
1-15 December 1 of each even-numbered year, the department shall prepare
1-16 a cost-benefit analysis of the enterprise zone program.
1-17 (b) The department shall submit the analysis to the state
1-18 auditor for review and comment on the methodology and conclusions
1-19 of the analysis.
1-20 (c) Before the regular session of the legislature convenes,
1-21 the state auditor shall submit the analysis and the state auditor's
1-22 comments on the analysis to the governor, the lieutenant governor,
1-23 and the speaker of the house of representatives.
1-24 (b) Section 25, Chapter 986, Acts of the 73rd Legislature,
1-25 Regular Session, 1993, is repealed.
1-26 SECTION 2. Section 2303.102, Government Code, is amended to
1-27 read as follows:
1-28 Sec. 2303.102. Area of Pervasive Poverty, Unemployment, and
1-29 Economic Distress. (a) An area is an area of pervasive poverty,
1-30 unemployment, and economic distress for the purposes of Section
1-31 2303.101 if:
1-32 (1) the average rate of unemployment in the area
1-33 during the most recent 12-month period for which data are available
1-34 was at least one and one-half times the <local,> state<, or
1-35 national> average for that period; or
1-36 (2) the area had a population loss of at least 12
1-37 <nine> percent during the most recent six-year period or at least
1-38 four <three> percent during the most recent three-year period; and
1-39 (A) the area is a low-income poverty area;
1-40 (B) the area is in a jurisdiction or pocket of
1-41 poverty eligible for urban development action grants under federal
1-42 law, according to the most recent certification available from the
1-43 United States Department of Housing and Urban Development;
1-44 (C) at least 70 percent of the residents or
1-45 households of the area have an income that is less than 80 percent
1-46 of the median income of the residents or households of the locality
1-47 or state, whichever is less; or
1-48 (D) the nominating body establishes to the
1-49 satisfaction of the department that:
1-50 (i) chronic abandonment or demolition of
1-51 commercial or residential structures exists in the area;
1-52 (ii) substantial tax arrearages for
1-53 commercial or residential structures exist in the area;
1-54 (iii) substantial losses of businesses or
1-55 jobs have occurred in the area; <or>
1-56 (iv) the area is part of a disaster area
1-57 declared by the state or federal government during the preceding 18
1-58 months; or
1-59 (v) the area has had a substantial
1-60 increase in the number of individuals younger than 18 years of age
1-61 arrested due to criminal activity.
1-62 (b) Labor force and population data are considered current
1-63 if:
1-64 (1) they are the most recently published estimates; or
1-65 (2) the enterprise zone application containing the
1-66 data is received by the department before the 61st day after the
1-67 date revised estimates of that data are published.
1-68 SECTION 3. Section 2303.109(b), Government Code, is amended
2-1 to read as follows:
2-2 (b) Notwithstanding Subsection (a), an area designated as a
2-3 federal enterprise zone, federal empowerment zone, or federal
2-4 enterprise community may be designated as an enterprise zone
2-5 without further qualification for longer than seven years but not
2-6 longer than the period permitted by federal law.
2-7 SECTION 4. Section 2303.205(c), Government Code, is amended
2-8 to read as follows:
2-9 (c) The report must include<:>
2-10 <(1)> for the year preceding the date of the report:
2-11 (1) <(A)> a list of local incentives for community
2-12 development available in the zone;
2-13 (2) <(B)> the use of local incentives for which the
2-14 governing body provided in the ordinance or order nominating the
2-15 enterprise zone and the effect of those incentives on revenue;
2-16 (3) <(C)> the number of businesses assisted, located,
2-17 and retained in the zone since its designation due to the existence
2-18 of the enterprise zone;
2-19 (4) <(D)> a summary of <copy of the report required
2-20 under Section 103, Internal Revenue Code of 1986 (26 U.S.C. Section
2-21 103), for> all industrial revenue bonds issued to finance projects
2-22 located in the zone; and
2-23 (5) <(E)> a description of all efforts made to attain
2-24 <statement on the attainment of> revitalization goals for the
2-25 zone<; and>
2-26 <(2) for the year preceding the date on which the area
2-27 was designated as an enterprise zone, the number of businesses
2-28 located in the zone>.
2-29 SECTION 5. Subchapter C, Chapter 2303, Government Code, is
2-30 amended by adding Section 2303.112 to read as follows:
2-31 Sec. 2303.112. EXCEPTION TO LIMIT ON DESIGNATION.
2-32 Designation as an enterprise zone under this chapter of an area
2-33 designated as a federal enterprise zone, federal empowerment zone,
2-34 or federal enterprise community located in a municipality or county
2-35 does not reduce the number of enterprise zones that the
2-36 municipality or county may have designated under this chapter.
2-37 SECTION 6. Subchapter F, Chapter 2303, Government Code, is
2-38 amended to conform to Sections 26 and 27, Chapter 986, Acts of the
2-39 73rd Legislature, Regular Session, 1993, Sections 1-3, Chapter 974,
2-40 Acts of the 73rd Legislature, Regular Session, 1993, and Sections 5
2-41 and 8, Chapter 231, Acts of the 73rd Legislature, Regular Session,
2-42 1993, and further amended to read as follows:
2-43 SUBCHAPTER F. QUALIFIED BUSINESSES AND ENTERPRISE PROJECTS
2-44 Sec. 2303.401. DEFINITION. In this subchapter, "new
2-45 permanent job" means a new employment position created by a
2-46 qualified business as described by Section 2303.402 that:
2-47 (1) has provided at least 1,820 hours of employment a
2-48 year to a qualified employee; and
2-49 (2) is intended to exist during the period that the
2-50 qualified business is designated as an enterprise project under
2-51 Section 2303.406.
2-52 Sec. 2303.402. Qualified Business. (a) A person is a
2-53 qualified business if the department, for the purpose of state
2-54 benefits under this chapter, or the governing body of an enterprise
2-55 zone, for the purpose of local benefits, certifies that:
2-56 (1) the person is engaged in or has provided
2-57 substantial commitment to initiate the active conduct of a trade or
2-58 business in the enterprise zone; and
2-59 (2) at least 25 percent of the person's new employees
2-60 in the enterprise zone are:
2-61 (A) residents of any enterprise zone in the
2-62 jurisdiction of the governing body of the enterprise zone; or
2-63 (B) economically disadvantaged individuals.
2-64 (b) The governing body of an enterprise zone may certify a
2-65 franchise or subsidiary of a new or existing business as a
2-66 qualified business if the franchise or subsidiary:
2-67 (1) is located entirely in the enterprise zone; and
2-68 (2) maintains separate books and records of the
2-69 business activity conducted in the zone.
2-70 (c) For the purposes of this section, an economically
3-1 disadvantaged individual is an individual who:
3-2 (1) was unemployed for at least three months before
3-3 obtaining employment with the qualified business;
3-4 (2) receives public assistance benefits, including
3-5 welfare payments or food stamps, based on need and intended to
3-6 alleviate poverty;
3-7 (3) is an economically disadvantaged individual, as
3-8 defined by Section 4(8), Job Training Partnership Act (29 U.S.C.
3-9 Section 1503(8));
3-10 (4) is an individual with handicaps, as defined by 29
3-11 U.S.C. Section 706(8);
3-12 (5) is an inmate, as defined by Section 498.001;
3-13 (6) is entering the workplace after being confined in
3-14 a facility operated by <unit of> the institutional division of the
3-15 Texas Department of Criminal Justice or under contract with the
3-16 Texas Department of Criminal Justice <or a correctional facility
3-17 authorized by Chapter 495>; <or>
3-18 (7) has been released by the Texas Youth Commission
3-19 and is on parole, if state law provides for such a person to be on
3-20 parole; or
3-21 (8) meets the current low income or moderate income
3-22 limits developed under Section 8, United States Housing Act of 1937
3-23 (42 U.S.C. Section 1437f et seq.).
3-24 Sec. 2303.403 <2303.402>. Prohibition on Qualified Business
3-25 Certification. If the department determines that the governing
3-26 body of an enterprise zone is not complying with this chapter, the
3-27 department shall prohibit the certification of a qualified business
3-28 in the zone until the department determines that the governing body
3-29 is complying with this chapter. The department may not designate
3-30 more than 65 businesses as enterprise projects during any biennium.
3-31 Sec. 2303.404. REQUEST FOR APPLICATION FOR ENTERPRISE
3-32 PROJECT DESIGNATION. (a) A qualified business in an enterprise
3-33 zone described by Subsection (b) may request that the governing
3-34 body of the enterprise zone apply to the department for designation
3-35 of the business as an enterprise project. The request must also be
3-36 made to the enterprise zone's administrative authority, if one
3-37 exists.
3-38 (b) A request may be made under this section only to the
3-39 governing body of an enterprise zone that has:
3-40 (1) an unemployment rate that is at least one and
3-41 one-half times the state average; or
3-42 (2) a population loss of at least:
3-43 (A) 12 percent during the most recent six-year
3-44 period; or
3-45 (B) four percent during the most recent
3-46 three-year period.
3-47 Sec. 2303.405. APPLICATION FOR ENTERPRISE PROJECT
3-48 DESIGNATION. (a) If the governing body of an enterprise zone or
3-49 the governing body and administrative authority of an enterprise
3-50 zone, as appropriate, approve a request made under Section
3-51 2303.404, the governing body may apply to the department for the
3-52 designation of the qualified business as an enterprise project.
3-53 (b) An application must:
3-54 (1) describe completely the conditions in the
3-55 enterprise zone that constitute pervasive poverty, unemployment,
3-56 and economic distress for purposes of Section 2303.101;
3-57 (2) describe the procedures and efforts of the
3-58 governmental entity or entities that applied to have the area
3-59 designated as an enterprise zone to facilitate and encourage
3-60 participation by and negotiation among all affected entities in the
3-61 zone in which the qualified business is located;
3-62 (3) contain an economic analysis of the plans of the
3-63 qualified business for expansion, revitalization, or other activity
3-64 in the enterprise zone, including:
3-65 (A) the number of anticipated new permanent jobs
3-66 the business will create;
3-67 (B) the anticipated number of permanent jobs the
3-68 business will retain;
3-69 (C) the amount of investment to be made in the
3-70 zone; and
4-1 (D) other information the department requires;
4-2 and
4-3 (4) describe the local effort made by the governmental
4-4 entity or entities that applied to have the area designated as an
4-5 enterprise zone, the administrative authority, if one exists, the
4-6 qualified business, and other affected entities to develop and
4-7 revitalize the zone.
4-8 (c) For the purposes of this section, local effort to
4-9 develop and revitalize an enterprise zone is:
4-10 (1) the willingness of public entities in the zone to
4-11 provide services, incentives, and regulatory relief authorized by
4-12 this chapter and to negotiate with the qualified business for which
4-13 application is made and with neighborhood enterprise associations
4-14 and other local groups or businesses to achieve the public purposes
4-15 of this chapter; and
4-16 (2) the effort of the qualified business and other
4-17 affected entities to cooperate in achieving those public purposes.
4-18 (d) Factors to be considered in evaluating the local effort
4-19 of a public entity include:
4-20 (1) tax abatement, deferral, refunds, or other tax
4-21 incentives;
4-22 (2) regulatory relief, including:
4-23 (A) zoning changes or variances;
4-24 (B) exemptions from unnecessary building code
4-25 requirements, impact fees, or inspection fees; and
4-26 (C) streamlined permitting;
4-27 (3) enhanced municipal services, including:
4-28 (A) improved police and fire protection;
4-29 (B) institution of community crime prevention
4-30 programs; and
4-31 (C) special public transportation routes or
4-32 reduced fares;
4-33 (4) improvements in community facilities, including:
4-34 (A) capital improvements in water and sewer
4-35 facilities;
4-36 (B) road repair; and
4-37 (C) creation or improvement of parks;
4-38 (5) improvements to housing, including:
4-39 (A) low-interest loans for housing
4-40 rehabilitation, improvement, or new construction; and
4-41 (B) transfer of abandoned housing to individuals
4-42 or community groups;
4-43 (6) business and industrial development services,
4-44 including:
4-45 (A) low-interest loans for business;
4-46 (B) use of surplus school buildings or other
4-47 underutilized publicly owned facilities as small business
4-48 incubators;
4-49 (C) provision of publicly owned land for
4-50 development purposes, including residential, commercial, or
4-51 industrial development;
4-52 (D) creation of special one-stop permitting and
4-53 problem resolution centers or ombudsmen; and
4-54 (E) promotion and marketing services; and
4-55 (7) job training and employment services, including:
4-56 (A) retraining programs;
4-57 (B) literacy and employment skills programs;
4-58 (C) vocational education; and
4-59 (D) customized job training.
4-60 (e) Factors to be considered in evaluating the local effort
4-61 of a private entity include:
4-62 (1) the willingness to negotiate or cooperate in the
4-63 achievement of the purposes of this chapter;
4-64 (2) commitments to hire underskilled, inexperienced,
4-65 disadvantaged, or displaced workers who reside in the enterprise
4-66 zone;
4-67 (3) commitments to hire minority workers and to
4-68 contract with minority-owned businesses;
4-69 (4) provision of technical and vocational job training
4-70 for enterprise zone residents or economically disadvantaged
5-1 employees;
5-2 (5) provision of child care for employees;
5-3 (6) commitments to implement and contribute to a
5-4 tutoring or mentoring program for area students;
5-5 (7) prevention or reduction of juvenile crime
5-6 activity; and
5-7 (8) the willingness to make contributions to the
5-8 well-being of the community, such as job training, or the donation
5-9 of land for parks or other public purposes.
5-10 Sec. 2303.406. ENTERPRISE PROJECT DESIGNATION. (a) The
5-11 department may designate a business as an enterprise project only
5-12 if the department determines that:
5-13 (1) the business is a qualified business under Section
5-14 2303.402 that is located in or has made a substantial commitment to
5-15 locate in an enterprise zone described by Section 2303.404(b);
5-16 (2) the governing body of the enterprise zone making
5-17 the application has demonstrated that a high level of cooperation
5-18 exists among public, private, and neighborhood entities in the
5-19 zone; and
5-20 (3) the designation will contribute significantly to
5-21 the achievement of the plans of the governing body making the
5-22 application for development and revitalization of the zone.
5-23 (b) The department shall designate qualified businesses as
5-24 enterprise projects on a competitive basis. The department shall
5-25 make its designation decisions using a weighted scale in which:
5-26 (1) 50 percent of the evaluation depends on the
5-27 economic distress of:
5-28 (A) the enterprise zone in which a proposed
5-29 enterprise project is located; and
5-30 (B) the area within the enterprise zone where
5-31 the project is located;
5-32 (2) 25 percent of the evaluation depends on the local
5-33 effort to achieve development and revitalization of the enterprise
5-34 zone; and
5-35 (3) 25 percent of the evaluation depends on the
5-36 evaluation criteria as determined by the department, which must
5-37 include:
5-38 (A) the level of cooperation and support the
5-39 project applicant commits to the revitalization goals of the zone;
5-40 and
5-41 (B) the type and wage level of the jobs to be
5-42 created or retained by the business.
5-43 (c) The designation of an enterprise project is effective
5-44 until the fifth anniversary of the date on which the designation is
5-45 made.
5-46 (d) The department may remove an enterprise project
5-47 designation if it determines that the business is not complying
5-48 with a requirement for its designation.
5-49 Sec. 2303.407. ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
5-50 When the department designates a business as an enterprise project,
5-51 the department shall allocate to the project the maximum number of
5-52 new permanent jobs or retained jobs eligible to be included in a
5-53 computation of a tax refund for the project. The number may not
5-54 exceed 625 or a number equal to 110 percent of the number of
5-55 anticipated new permanent jobs or retained jobs specified in the
5-56 application for designation of the business as an enterprise
5-57 project under Section 2303.405, whichever is less.
5-58 Sec. 2303.408. DURATION OF CERTAIN DESIGNATIONS.
5-59 <Sec. 2303.403. ENTERPRISE PROJECT DESIGNATION. (a) After August
5-60 31, 1993, the department may not designate a business as an
5-61 enterprise project.> The department's designation of a qualified
5-62 business as an enterprise project <before that date> is effective
5-63 until the fifth anniversary of the date on which the designation is
5-64 made regardless of whether the enterprise zone in which the project
5-65 is located expires before the fifth anniversary of the project.
5-66 <(b) The department may remove an enterprise project
5-67 designation if it determines that the business is not complying
5-68 with a requirement for its designation.>
5-69 SECTION 7. Section 2303.505(a), Government Code, is amended
5-70 to read as follows:
6-1 (a) To encourage the development of areas designated as
6-2 enterprise zones, the governing body of a municipality through a
6-3 program may refund its local sales and use taxes paid by a
6-4 qualified business on:
6-5 (1) the purchase, lease, or rental of equipment or
6-6 machinery for use in an enterprise zone; <or>
6-7 (2) the purchase of material for use in remodeling,
6-8 rehabilitating, or constructing a structure in an enterprise zone;
6-9 (3) labor for remodeling, rehabilitating, or
6-10 constructing a structure in an enterprise zone; and
6-11 (4) electricity and natural gas purchased and consumed
6-12 in the normal course of business in the enterprise zone.
6-13 SECTION 8. Section 2303.511(b), Government Code, is amended
6-14 to read as follows:
6-15 (b) A reduction in utility rates under Subsection (a)(9)(B)
6-16 is subject to the agreement of the affected utility and the
6-17 approval of the appropriate regulatory authority under Sections 16
6-18 and 17, Public Utility Regulatory Act (Article 1446c, Vernon's
6-19 Texas Civil Statutes). The rates may not be reduced more than five
6-20 percent below the lowest rate offered to any customer located in
6-21 the enterprise zone, including economic development rates and
6-22 standby rates. A qualified enterprise project or the governing
6-23 body of the enterprise zone may petition the appropriate regulatory
6-24 authority to receive a reduced rate under this section, and the
6-25 regulatory authority may order that rates be reduced. In making
6-26 its determination under this section, the regulatory authority
6-27 shall consider revitalization goals for the enterprise zone. In
6-28 setting the rates of the utility the appropriate regulatory
6-29 authority shall allow the utility to recover the amount of the
6-30 reduction.
6-31 SECTION 9. Section 2303.514, Government Code, is amended to
6-32 read as follows:
6-33 Sec. 2303.514. Waiver of Performance Bond. A subcontractor
6-34 <prime contractor> is not required to execute a performance bond
6-35 under Chapter 2253 if:
6-36 (1) the construction, alteration, repair, or other
6-37 public work to be performed under the contract is entirely in an
6-38 enterprise zone; and
6-39 (2) the amount of the contract does not exceed
6-40 $200,000.
6-41 SECTION 10. Section 481.155, Government Code, is amended by
6-42 adding Subsection (h) to read as follows:
6-43 (h) In awarding a grant under this section, the executive
6-44 director shall give priority to a project that is located in an
6-45 enterprise zone as defined by Section 2303.003.
6-46 SECTION 11. Section 151.429(a), Tax Code, is amended to read
6-47 as follows:
6-48 (a) An enterprise project is eligible for a refund in the
6-49 amount provided by this section of the taxes imposed by this
6-50 chapter on purchases of:
6-51 (1) equipment or machinery sold to an enterprise
6-52 project for use in an enterprise zone; <or>
6-53 (2) building materials sold to an enterprise project
6-54 for use in remodeling, rehabilitating, or constructing a structure
6-55 in an enterprise zone;
6-56 (3) labor for remodeling, rehabilitating, or
6-57 constructing a structure by an enterprise project in an enterprise
6-58 zone; and
6-59 (4) electricity and natural gas purchased and consumed
6-60 in the normal course of business in the enterprise zone.
6-61 SECTION 12. Section 312.203, Tax Code, is amended to read as
6-62 follows:
6-63 Sec. 312.203. Expiration of Reinvestment Zone. The
6-64 designation of a reinvestment zone for residential or
6-65 commercial-industrial tax abatement expires five years after the
6-66 date of the designation and may be renewed for periods not to
6-67 exceed five years, except that a reinvestment zone that is a state
6-68 enterprise zone is designated for the same period as a state
6-69 enterprise zone as provided by Chapter 2303, Government Code. The
6-70 expiration of the designation does not affect an existing tax
7-1 abatement agreement made under this subchapter.
7-2 SECTION 13. Section 312.204, Tax Code, is amended by adding
7-3 Subsection (f) to read as follows:
7-4 (f) The agreements made with owners of property in an
7-5 enterprise zone that is also designated as a reinvestment zone are
7-6 not required to contain identical terms for the portion of the
7-7 value of property that is to be exempt and the duration of the
7-8 agreement.
7-9 SECTION 14. Section 312.206, Tax Code, is amended by adding
7-10 Subsection (e) to read as follows:
7-11 (e) If property taxes on property located in an enterprise
7-12 zone are abated under this chapter, the governing body of each
7-13 taxing jurisdiction may execute a written agreement with the owner
7-14 of the property not later than the 90th day after the date the
7-15 municipal or county agreement is executed, whichever is later. The
7-16 agreement may, but is not required to, contain terms that are
7-17 identical to those contained in the agreement with the
7-18 municipality, county, or both, whichever applies, and the only
7-19 terms of the agreement that may vary are the portion of the
7-20 property that is to be exempt from taxation under the agreement and
7-21 the duration of the agreement.
7-22 SECTION 15. Section 2(10), Development Corporation Act of
7-23 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
7-24 read as follows:
7-25 (10) "Project" shall mean the land, buildings,
7-26 equipment, facilities, and improvements (one or more) found by the
7-27 board of directors to be required or suitable for the promotion of
7-28 development and expansion of manufacturing and industrial
7-29 facilities, transportation facilities (including but not limited to
7-30 airports, ports, mass commuting facilities, and parking
7-31 facilities), sewage or solid waste disposal facilities, recycling
7-32 facilities, air or water pollution control facilities, facilities
7-33 for the furnishing of water to the general public, distribution
7-34 centers, small warehouse facilities capable of serving as
7-35 decentralized storage and distribution centers, and facilities
7-36 which are related to any of the foregoing, and in furtherance of
7-37 the public purposes of this Act, all as defined in the rules of the
7-38 department, irrespective of whether in existence or required to be
7-39 identified, acquired, or constructed thereafter. As used in this
7-40 Act, the term "development areas" shall mean any area or areas of a
7-41 city that the city finds and determines, after a public hearing,
7-42 should be developed in order to meet the development objectives of
7-43 the city. In addition, in blighted or economically depressed
7-44 areas, development areas, federally designated empowerment zones
7-45 and enterprise communities designated under Section 1391, Internal
7-46 Revenue Code of 1986, or federally assisted new communities located
7-47 within a home-rule city or a federally designated economically
7-48 depressed county of less than 50,000 persons according to the last
7-49 federal decennial census, a project may include the land,
7-50 buildings, equipment, facilities, and improvements (one or more)
7-51 found by the board of directors to be required or suitable for the
7-52 promotion of commercial development and expansion and in
7-53 furtherance of the public purposes of this Act, or for use by
7-54 commercial enterprises, all as defined in the rules of the
7-55 department, irrespective of whether in existence or required to be
7-56 acquired or constructed thereafter. As used in this Act, the term
7-57 blighted or economically depressed areas shall mean those areas and
7-58 areas immediately adjacent thereto within a city which by reason of
7-59 the presence of a substantial number of substandard, slum,
7-60 deteriorated, or deteriorating structures, or which suffer from a
7-61 high relative rate of unemployment, or which have been designated
7-62 and included in a tax incremental district created under Chapter
7-63 695, Acts of the 66th Legislature, Regular Session, 1979 (Article
7-64 1066d, Vernon's Texas Civil Statutes), or any combination of the
7-65 foregoing, the city finds and determines, after a hearing,
7-66 substantially impair or arrest the sound growth of the city, or
7-67 constitute an economic or social liability and are a menace to the
7-68 public health, safety, or welfare in their present condition and
7-69 use. The department shall adopt guidelines that describe the
7-70 kinds of areas that may be considered to be blighted or
8-1 economically depressed. The city shall consider these guidelines
8-2 in making its findings and determinations. Notice of the hearing
8-3 at which the city considers establishment of a development area or
8-4 an economically depressed or blighted area shall be posted at the
8-5 city hall before the hearing.
8-6 "Federally assisted new communities" shall mean those
8-7 federally assisted areas which have received or will receive
8-8 assistance in the form of loan guarantees under Title X of the
8-9 National Housing Act and a portion of the federally assisted area
8-10 has received grants under Section 107(a)(1) of the Housing and
8-11 Community Development Act of 1974, as amended.
8-12 SECTION 16. Section 21, Development Corporation Act of 1979
8-13 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
8-14 as follows:
8-15 Sec. 21. Every unit is hereby authorized to utilize a
8-16 corporation to issue bonds on its behalf to finance the cost of
8-17 projects, including projects in federally designated empowerment
8-18 zones and enterprise communities or enterprise zones designated
8-19 under the Texas Enterprise Zone Act, to promote and develop new and
8-20 expanded business <industrial and manufacturing> enterprises to
8-21 promote and encourage employment and the public welfare. No unit
8-22 is or shall be authorized to lend its credit or grant any public
8-23 money or thing of value in aid of a corporation. The unit will
8-24 approve all programs and expenditures of the corporation and
8-25 annually review any financial statements of the corporation, and at
8-26 all times the unit will have access to the books and records of the
8-27 corporation.
8-28 SECTION 17. (a) An enterprise project designated under
8-29 Chapter 2303, Government Code, after August 31, 1995, may not
8-30 receive a tax refund under Section 151.429, Tax Code, as amended by
8-31 this Act, or a tax reduction under Section 171.1015, Tax Code,
8-32 before September 1, 1997.
8-33 (b) Not more than $8 million in state sales and use taxes
8-34 may be refunded to enterprise projects designated during the
8-35 biennium beginning September 1, 1995.
8-36 SECTION 18. Notwithstanding the other provisions of this
8-37 Act, Sections 5, 6, 7, 8, 9, and 10, Chapter 231, Acts of the 73rd
8-38 Legislature, Regular Session, 1993, shall continue in existence and
8-39 be applicable to a qualified hotel project as defined by Chapter
8-40 231, Acts of the 73rd Legislature, Regular Session, 1993. A
8-41 qualified hotel project shall continue to be eligible to receive
8-42 tax refunds under Section 151.429(h), Tax Code, in accordance with
8-43 the provisions of Chapter 231, Acts of the 73rd Legislature,
8-44 Regular Session, 1993. A qualified hotel project may continue to
8-45 be designated as a qualified business and an enterprise project in
8-46 accordance with the provisions of Chapter 231, Acts of the 73rd
8-47 Legislature, Regular Session, 1993. Refunds to a qualified hotel
8-48 project shall not affect the refunds that may be made under the
8-49 provisions of Section 17 of this Act or affect the number of
8-50 enterprise projects that the department may approve.
8-51 SECTION 19. This Act takes effect September 1, 1995.
8-52 SECTION 20. The importance of this legislation and the
8-53 crowded condition of the calendars in both houses create an
8-54 emergency and an imperative public necessity that the
8-55 constitutional rule requiring bills to be read on three several
8-56 days in each house be suspended, and this rule is hereby suspended.
8-57 * * * * *