SRC-JFA S.B. 200 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 200
By: Ellis
Economic Development
3-3-97
As Filed


DIGEST 

Currently, Chapter 2303, Government Code, relating to enterprise zones,
does not specify any incentives for the development of supermarkets within
enterprise zones.  A 1996 study by Public Voice for Food and Health
Policy, an advocacy group, found that there is a significant lack of
access to supermarkets in most inner-city neighborhoods in Texas and
across the nation.  The absence of supermarkets affects the health,
economic security, and quality of life for urban residents.  S.B. 200
authorizes state agencies, the governing body of a municipality or county,
and the Texas Department of Commerce to provide tax and other incentives
for the development of supermarkets in enterprise zones.  
 
PURPOSE

As proposed, S.B. 200 authorizes state agencies, the governing body of a
municipality or county, and the Texas Department of Commerce to provide
tax and other incentives for the location of a supermarket in an
enterprise zone.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 2303F, Government Code, by adding Section
2303.410, as follows: 

Sec.  2303.410.  QUALIFIED SUPERMARKET OWNER.  Sets forth the
qualifications for a person to be considered a qualified supermarket owner
by the governing body of an enterprise zone.  

SECTION 2. Amends the heading of Chapter 2303F, Government Code, as
follows: 

SUBCHAPTER F.  New heading:  QUALIFIED BUSINESSES, QUALIFIED SUPERMARKET
OWNERS, AND ENTERPRISE PROJECTS 

SECTION 3. Amends Section 2303.003, Government Code, to define "qualified
supermarket owner."  Makes conforming and standard recodification changes.

SECTION 4. Amends Section 2303.053(a), Government Code, to require the
Texas Department of Commerce (department) to assist a qualified
supermarket owner in obtaining the benefits of any incentive or inducement
program by law, as one of the department's duties.   

SECTION 5. Amends Section 2303.501(a), Government Code, to include a
qualified supermarket owner operating in an enterprise zone as one of the
entities that a state agency is authorized to exempt from its regulation
under certain guidelines.   

SECTION 6. Amends Section 2303.503(a), Government Code, to make conforming
changes. 

SECTION 7. Amends Section 2303.504, Government Code, to provide that a
qualified supermarket owner is entitled to a refund of state taxes under
Section 151.432, Tax Code.  Makes a conforming  change.  

SECTION 8. Amends Section 2303.505(b), Government Code, to make a
conforming change.   

SECTION 9. Amends Section 2303.506(a), Government Code, to make a
conforming change. 

SECTION 10. Amends Section 2303.511(a), Government Code, to authorize the
governing body of a municipality or county to amend zoning ordinances of
the municipality or county to promote the location of a supermarket; and
to reduce rates charged by certain utilities to qualified supermarket
owners.  Makes conforming changes.     

SECTION 11. Amends Section 151I, Tax Code, by adding Section 151.432, as
follows:   

Sec. 151.432.  TAX REFUNDS FOR QUALIFIED SUPERMARKET OWNER.  Sets forth
the guidelines and conditions under which a qualified supermarket owner is
eligible for a refund of limited sales, excise, and use taxes imposed by
the state upon the labor or building materials used in construction of or
providing for a supermarket in an enterprise zone, and upon the purchase
of goods and services in the enterprise zone by the owner for operation of
the supermarket.  Provides that a qualified supermarket owner is eligible
for refunds not to exceed $100,000.  Defines "qualified supermarket
owner."   

SECTION 12. Effective date: September 1, 1997.

SECTION 13. Emergency clause.