By Rodriguez                                    H.B. No. 1396

      75R3043 CLG-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the enterprise zone program.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 2303.101(b), Government Code, is amended

 1-5     to read as follows:

 1-6           (b)  The department may not designate an area as an

 1-7     enterprise zone if six [three] enterprise zones are located in the

 1-8     jurisdiction of and were nominated as enterprise zones by the

 1-9     governing body of the municipality or county nominating the area as

1-10     an enterprise zone.

1-11           SECTION 2.  Section 2303.403, Government Code, is amended to

1-12     read as follows:

1-13           Sec. 2303.403.  PROHIBITION ON QUALIFIED BUSINESS

1-14     CERTIFICATION.   If the department determines that the governing

1-15     body of an enterprise zone is not complying with this chapter, the

1-16     department shall prohibit the certification of a qualified business

1-17     in the zone until the department determines that the governing body

1-18     is complying with this chapter.  The department may not designate

1-19     more than 75 [65] businesses as enterprise projects during any

1-20     biennium.

1-21           SECTION 3.  Section 151.429(b), Tax Code, is amended to read

1-22     as follows:

1-23           (b)  Subject to the limitations provided by Subsection (c) of

1-24     this section, an enterprise project qualifies for a refund of taxes

 2-1     under this section of $2,500 [$2,000] for each new permanent job or

 2-2     job that has been retained by the enterprise project for a

 2-3     qualified employee.

 2-4           SECTION 4.  Section 151.431(d), Tax Code, is amended to read

 2-5     as follows:

 2-6           (d)  The total amount of the onetime refund that a qualified

 2-7     business may apply for may not exceed $1,000 [$500] for each

 2-8     qualified employee retained, up to a limit of $5,000 for each

 2-9     qualified business.

2-10           SECTION 5.  This Act takes effect September 1, 1997.

2-11           SECTION 6.  The importance of this legislation and the

2-12     crowded condition of the calendars in both houses create an

2-13     emergency and an imperative public necessity that the

2-14     constitutional rule requiring bills to be read on three several

2-15     days in each house be suspended, and this rule is hereby suspended.