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2-12 5190.7 is repealed.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.