By Uher H.B. No. 3142 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the use of enterprise zones, tax abatements and tax 1-3 increment financing and similar tax incentive vehicles in the 1-4 vicinity of an interstate highway system in order to encourage 1-5 economic development and to promote foreign and interstate trade in 1-6 and around the designated area. 1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-8 SECTION 1. Section 2303.002, Government Code, is amended to 1-9 read as follows: 1-10 Sec. 2303.002. Purposes. The purposes of this chapter are 1-11 to establish a process that clearly identifies severely distressed 1-12 areas of the state as well as other areas that would be benefitted 1-13 by increased economic development or redevelopment and provides 1-14 incentives by state and local government to induce private 1-15 investment in those areas by removing unnecessary governmental 1-16 regulatory barriers to economic growth and to provide tax 1-17 incentives and economic development program benefits. 1-18 It is therefore the public policy of this state to provide 1-19 people of this state with the necessary means to assist 1-20 communities, their residents, and the private sector to create the 1-21 proper economic and social environment to induce the investment of 1-22 private resources in productive business enterprises located in 1-23 severely distressed areas, as well as other areas that would be 2-1 benefitted by increased economic development or redevelopment, and 2-2 to provide employment to and create housing opportunities for 2-3 residents of those areas. In achieving this objective, through 2-4 this Act the state seeks to provide appropriate investments, tax 2-5 benefits, and regulatory relief to encourage the business community 2-6 to commit its financial participation. Accordingly the legislature 2-7 declares the revitalization of enterprise zones through the 2-8 concerted efforts of government and the private sector to be a 2-9 public purpose. 2-10 SECTION 2. Section 1 of Acts 1993, 73rd Leg., ch.974, eff. 2-11 Aug. 30, 1993, amending Section 2(b) of Vernon's Ann.Civ.St. art. 2-12 5190.7 is repealed. 2-13 SECTION 3. Section 2303.101, Government Code, is amended to 2-14 read as follows: 2-15 Sec. 2303.101. Criteria for Enterprise Zone Designation. 2-16 (a) To be designated an enterprise zone an area must: 2-17 (1) have a continuous boundary; and 2-18 (2) be at least on square mile but not larger than the 2-19 greater of: 2-20 (A) 10 square miles, excluding lakes, waterways, 2-21 and transportation arteries; or 2-22 (B) an area, not to exceed 20 square miles, that 2-23 is equal to five percent of the area, excluding lakes, waterways, 2-24 and transportation arteries, of the municipality, county or 2-25 combination of municipalities or counties nominating the area as an 3-1 enterprise zone; 3-2 and, 3-3 (3) be an area of pervasive poverty, unemployment, and 3-4 economic distress; or 3-5 (4) be an area with a continuous boundary adjacent to 3-6 an interstate highway that has been identified as benefitting from 3-7 increased economic development or redevelopment; and 3-8 (5) be nominated as an enterprise zone by an ordinance 3-9 or order adopted by the nominating body. 3-10 (b) The department may not designate an area as an 3-11 enterprise zone if three enterprise zones are located in the 3-12 jurisdiction of and were nominated as enterprise zones by a 3-13 governing body of the municipality or county nominating the area as 3-14 an enterprise zone. 3-15 SECTION 4. Section 26.08(d), Tax Code, is amended to read as 3-16 follows: 3-17 Sec. 26.08. (d) For purposes of this section, except as 3-18 provided by Subsection (e), the school district roll back rate of a 3-19 school district is the sum of: 3-20 (1) the tax rate that, applied to the current total 3-21 value for the district, excluding the captured appraised value, as 3-22 defined in Tax Code Section 311.012, of any land that is located in 3-23 a reinvestment zone designated, as provided by law) would impose 3-24 taxes in an amount that, when added to state funds to be 3-25 distributed to the district under Chapters 15 and 16, Education 4-1 Code, for the school year beginning in the current tax year; 4-2 (2) the rate of $0.06; and 4-3 (3) the district's current debt rate. 4-4 SECTION 5. This act shall take effect immediately. 4-5 SECTION 6. The importance of this legislation and the 4-6 crowded condition of the calendars in both houses create an 4-7 emergency and an imperative public necessity that the 4-8 constitutional rule requiring bills to be read on three several 4-9 days in each house be suspended, and the rule is hereby suspended.