By Raymond                                       H.B. No. 898

      75R3498 DWS-D                           

                                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.


 1-5           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:


1-21                       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

 2-3     holiday.

 2-4                 (2)  "Department" means the Texas Department of

 2-5     Commerce.

 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

6-18     zone;

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

6-25     (b);

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:


7-10     (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

7-24     removed.

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

 8-2     section.

 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.