By Raymond H.B. No. 898
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to incentives for the location of a supermarket in an
1-3 enterprise zone.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter F, Chapter 2303, Government Code, is
1-6 amended by adding Section 2303.410 to read as follows:
1-7 Sec. 2303.410. QUALIFIED SUPERMARKET OWNER. A person is a
1-8 qualified supermarket owner if the governing body of an enterprise
1-9 zone certifies that:
1-10 (1) the person owns and operates a supermarket located
1-11 in the enterprise zone;
1-12 (2) the opening date of the supermarket is on or after
1-13 September 1, 1997; and
1-14 (3) the variety of food and household products offered
1-15 by the supermarket and prices charged are comparable to the variety
1-16 offered and prices charged by large supermarkets located outside
1-17 the enterprise zone.
1-18 SECTION 2. The heading of Subchapter F, Chapter 2303,
1-19 Government Code, is amended to read as follows:
1-20 SUBCHAPTER F. QUALIFIED BUSINESSES, QUALIFIED SUPERMARKET
1-21 OWNERS, AND ENTERPRISE PROJECTS
1-22 SECTION 3. Section 2303.003, Government Code, is amended to
1-23 read as follows:
1-24 Sec. 2303.003. DEFINITIONS. In this chapter:
2-1 (1) "Day" means the period between 8 a.m. and 5 p.m.
2-2 of a day other than a Saturday, Sunday, or state or federal
2-4 (2) "Department" means the Texas Department of
2-6 (3) "Enterprise zone" means an area designated as an
2-7 enterprise zone under this chapter.
2-8 (4) "Neighborhood enterprise association" means an
2-9 association certified as a neighborhood enterprise association
2-10 under Section 2303.302.
2-11 (5) "Nominating body" means the governing body of a
2-12 municipality or county, or a combination of the governing bodies of
2-13 municipalities or counties, that nominates and applies for
2-14 designation of an area as an enterprise zone.
2-15 (6) "Qualified supermarket owner" means a person
2-16 certified as a qualified supermarket owner under Section 2303.410.
2-17 (7) "Qualified business" means a person certified as a
2-18 qualified business under Section 2303.402.
2-19 (8) [
(7)] "Qualified employee" means a person who:
2-20 (A) works for a qualified business; and
2-21 (B) performs at least 50 percent of the person's
2-22 service for the business in the enterprise zone.
2-23 (9) [ (8)] "Qualified hotel project" means a hotel
2-24 proposed to be constructed by a municipality or a nonprofit
2-25 municipally sponsored local government corporation created under
2-26 Chapter 431, Transportation Code, [ the Texas Transportation
2-27 Corporation Act (Article 1528l, Vernon's Texas Civil Statutes)]
3-1 that is within 1,000 feet of a convention center owned by a
3-2 municipality having a population of 1,500,000 or more, including
3-3 shops, parking facilities, and any other facilities ancillary to
3-4 the hotel.
3-5 SECTION 4. Section 2303.053(a), Government Code, is amended
3-6 to read as follows:
3-7 (a) The department shall assist:
3-8 (1) a qualified business or qualified supermarket
3-9 owner in obtaining the benefits of any incentive or inducement
3-10 program provided by law;
3-11 (2) a unit of local government in obtaining status as
3-12 a federal enterprise zone;
3-13 (3) the governing body of an enterprise zone in
3-14 obtaining assistance from another state agency, including training
3-15 and technical assistance to qualified businesses in a zone; and
3-16 (4) the governing body of an enterprise zone in
3-17 developing small business incubators.
3-18 SECTION 5. Section 2303.501(a), Government Code, is amended
3-19 to read as follows:
3-20 (a) A state agency may exempt from its regulation a
3-21 qualified business, qualified employee, qualified property, or
3-22 neighborhood enterprise association in an enterprise zone, or a
3-23 qualified supermarket owner operating in an enterprise zone, if the
3-24 exemption is consistent with:
3-25 (1) the purposes of this chapter; and
3-26 (2) the protection and promotion of the general health
3-27 and welfare.
4-1 SECTION 6. Section 2303.503(a), Government Code, is amended
4-2 to read as follows:
4-3 (a) A state agency shall give preference to the governing
4-4 body of an enterprise zone, [ or] a qualified business or qualified
4-5 employee located in an enterprise zone, or a qualified supermarket
4-6 owner operating in an enterprise zone over other eligible
4-7 applicants for grants or loans that are administered by the state
4-8 agency if:
4-9 (1) at least 50 percent of the grant or loan will be
4-10 spent for the direct benefit of the enterprise zone; and
4-11 (2) the purpose of the grant or loan is to:
4-12 (A) promote economic development in the
4-13 community; or
4-14 (B) construct, improve, extend, repair, or
4-15 maintain public facilities in the community.
4-16 SECTION 7. Section 2303.504, Government Code, is amended to
4-17 read as follows:
4-18 Sec. 2303.504. STATE TAX REFUNDS AND DEDUCTION; REPORT. (a)
4-19 An enterprise project is entitled to:
4-20 (1) a refund of state taxes under Section 151.429, Tax
4-21 Code; and
4-22 (2) a deduction from taxable capital under Section
4-23 171.1015, Tax Code.
4-24 (b) A qualified business is entitled to a refund of state
4-25 taxes under Sections 151.431 and 171.501, Tax Code.
4-26 (c) A qualified supermarket owner is entitled to a refund of
4-27 state taxes under Section 151.432, Tax Code.
5-1 (d) Not later than the 60th day after the last day of each
5-2 fiscal year, the comptroller shall report to the department the
5-3 statewide total of the tax refunds made under this section during
5-4 that fiscal year.
5-5 SECTION 8. Section 2303.505(b), Government Code, is amended
5-6 to read as follows:
5-7 (b) To promote the public health, safety, or welfare, the
5-8 governing body of a municipality or county through a program may
5-9 refund its local sales and use taxes paid by a qualified business,
5-10 qualified supermarket owner, or qualified employee.
5-11 SECTION 9. Section 2303.506(a), Government Code, is amended
5-12 to read as follows:
5-13 (a) To promote the public health, safety, or welfare, the
5-14 governing body of a municipality or county through a program may
5-15 reduce or eliminate fees or taxes that it imposes on a qualified
5-16 business, qualified supermarket owner, or qualified employee.
5-17 SECTION 10. Section 2303.511(a), Government Code, is amended
5-18 to read as follows:
5-19 (a) The governing body of a municipality or county that is
5-20 the governing body of an enterprise zone may:
5-21 (1) defer compliance in the zone with the subdivision
5-22 and development ordinances or rules, other than those relating to
5-23 streets and roads or sewer or water services, of the municipality
5-24 or county, as appropriate;
5-25 (2) give priority to the zone for the receipt of:
5-26 (A) urban development action grant money;
5-27 (B) community development block grant money;
6-1 (C) industrial revenue bonds; or
6-2 (D) funds received under job-training programs
6-3 funded under the Job Training Partnership Act (29 U.S.C. Section
6-4 1501 et seq.) [ the Texas Job-Training Partnership Act (Article
6-5 4413(52), Vernon's Texas Civil Statutes)];
6-6 (3) adopt and implement a plan for police protection
6-7 in the zone;
6-8 (4) amend the zoning ordinances of the municipality or
6-9 county, as appropriate, to promote economic development or the
6-10 location of a supermarket in the zone;
6-11 (5) establish permitting preferences for businesses in
6-12 the zone;
6-13 (6) establish simplified, accelerated, or other
6-14 special permit procedures for businesses in the zone;
6-15 (7) waive development fees for projects in the zone;
6-16 (8) create a local enterprise zone fund for funding
6-17 bonds or other programs or activities to develop or revitalize the
6-19 (9) for qualified businesses or qualified supermarket
6-20 owners in the zone, reduce rates charged by:
6-21 (A) a utility owned by the municipality or
6-22 county, as appropriate; or
6-23 (B) a cooperative corporation or utility owned
6-24 by private investors, subject to the requirements of Subsection
6-26 (10) in issuing housing finance bonds, give priority
6-27 to persons or projects in the zone;
7-1 (11) in providing services, give priority to local
7-2 economic development, educational, job training, or transportation
7-3 programs that benefit the zone; or
7-4 (12) sell real property owned by the municipality or
7-5 county, as appropriate, and located in the enterprise zone in
7-6 accordance with Section 2303.513.
7-7 SECTION 11. Subchapter I, Chapter 151, Tax Code, is amended
7-8 by adding Section 151.432 to read as follows:
7-9 Sec. 151.432. TAX REFUNDS FOR QUALIFIED SUPERMARKET OWNER.
7-10 (a) A qualified supermarket owner is eligible for a refund in the
7-11 amount provided by this section of the taxes imposed by this
7-12 chapter on:
7-13 (1) labor or building materials used in constructing
7-14 or otherwise providing a supermarket in an enterprise zone; and
7-15 (2) the purchase of goods and services in the
7-16 enterprise zone by the supermarket owner in connection with the
7-17 operation of the supermarket.
7-18 (b) The total amount of tax refunds that a qualified
7-19 supermarket owner may apply for under this section may not exceed
7-20 $100,000. A qualified supermarket owner may not apply for a refund
7-21 under this section after the end of the state fiscal year
7-22 immediately following the state fiscal year in which the qualified
7-23 supermarket owner's designation as a qualified supermarket owner is
7-25 (c) To receive a refund under this section, a qualified
7-26 supermarket owner must apply to the comptroller for the refund.
7-27 The Texas Department of Commerce shall provide the comptroller with
8-1 the assistance that the comptroller requires in administering this
8-3 (d) In this section, "qualified supermarket owner" has the
8-4 meaning assigned by Section 2303.003, Government Code.
8-5 SECTION 12. This Act takes effect September 1, 1997.
8-6 SECTION 13. The importance of this legislation and the
8-7 crowded condition of the calendars in both houses create an
8-8 emergency and an imperative public necessity that the
8-9 constitutional rule requiring bills to be read on three several
8-10 days in each house be suspended, and this rule is hereby suspended.