By Ellis S.B. No. 200
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.
1-4 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:
2-1 Sec. 2303.003. DEFINITIONS. In this chapter:
2-2 (1) "Day" means the period between 8 a.m. and 5 p.m.
2-3 of a day other than a Saturday, Sunday, or state or federal
2-4 holiday.
2-5 (2) "Department" means the Texas Department of
2-6 Commerce.
2-7 (3) "Enterprise zone" means an area designated as an
2-8 enterprise zone under this chapter.
2-9 (4) "Neighborhood enterprise association" means an
2-10 association certified as a neighborhood enterprise association
2-11 under Section 2303.302.
2-12 (5) "Nominating body" means the governing body of a
2-13 municipality or county, or a combination of the governing bodies of
2-14 municipalities or counties, that nominates and applies for
2-15 designation of an area as an enterprise zone.
2-16 (6) "Qualified supermarket owner" means a person
2-17 certified as a qualified supermarket owner under Section 2303.410.
2-18 (7) "Qualified business" means a person certified as a
2-19 qualified business under Section 2303.402.
2-20 (8) [(7)] "Qualified employee" means a person who:
2-21 (A) works for a qualified business; and
2-22 (B) performs at least 50 percent of the person's
2-23 service for the business in the enterprise zone.
2-24 (9) [(8)] "Qualified hotel project" means a hotel
2-25 proposed to be constructed by a municipality or a nonprofit
2-26 municipally sponsored local government corporation created under
3-1 Chapter 431, Transportation Code, [the Texas Transportation
3-2 Corporation Act (Article 1528l, Vernon's Texas Civil Statutes)]
3-3 that is within 1,000 feet of a convention center owned by a
3-4 municipality having a population of 1,500,000 or more, including
3-5 shops, parking facilities, and any other facilities ancillary to
3-6 the hotel.
3-7 SECTION 4. Section 2303.053(a), Government Code, is amended
3-8 to read as follows:
3-9 (a) The department shall assist:
3-10 (1) a qualified business or qualified supermarket
3-11 owner in obtaining the benefits of any incentive or inducement
3-12 program provided by law;
3-13 (2) a unit of local government in obtaining status as
3-14 a federal enterprise zone;
3-15 (3) the governing body of an enterprise zone in
3-16 obtaining assistance from another state agency, including training
3-17 and technical assistance to qualified businesses in a zone; and
3-18 (4) the governing body of an enterprise zone in
3-19 developing small business incubators.
3-20 SECTION 5. Section 2303.501(a), Government Code, is amended
3-21 to read as follows:
3-22 (a) A state agency may exempt from its regulation a
3-23 qualified business, qualified employee, qualified property, or
3-24 neighborhood enterprise association in an enterprise zone, or a
3-25 qualified supermarket owner operating in an enterprise zone, if the
3-26 exemption is consistent with:
4-1 (1) the purposes of this chapter; and
4-2 (2) the protection and promotion of the general health
4-3 and welfare.
4-4 SECTION 6. Section 2303.503(a), Government Code, is amended
4-5 to read as follows:
4-6 (a) A state agency shall give preference to the governing
4-7 body of an enterprise zone, [or] a qualified business or qualified
4-8 employee located in an enterprise zone, or a qualified supermarket
4-9 owner operating in an enterprise zone over other eligible
4-10 applicants for grants or loans that are administered by the state
4-11 agency if:
4-12 (1) at least 50 percent of the grant or loan will be
4-13 spent for the direct benefit of the enterprise zone; and
4-14 (2) the purpose of the grant or loan is to:
4-15 (A) promote economic development in the
4-16 community; or
4-17 (B) construct, improve, extend, repair, or
4-18 maintain public facilities in the community.
4-19 SECTION 7. Section 2303.504, Government Code, is amended to
4-20 read as follows:
4-21 Sec. 2303.504. STATE TAX REFUNDS AND DEDUCTION; REPORT. (a)
4-22 An enterprise project is entitled to:
4-23 (1) a refund of state taxes under Section 151.429, Tax
4-24 Code; and
4-25 (2) a deduction from taxable capital under Section
4-26 171.1015, Tax Code.
5-1 (b) A qualified business is entitled to a refund of state
5-2 taxes under Sections 151.431 and 171.501, Tax Code.
5-3 (c) A qualified supermarket owner is entitled to a refund of
5-4 state taxes under Section 151.432, Tax Code.
5-5 (d) Not later than the 60th day after the last day of each
5-6 fiscal year, the comptroller shall report to the department the
5-7 statewide total of the tax refunds made under this section during
5-8 that fiscal year.
5-9 SECTION 8. Section 2303.505(b), Government Code, is amended
5-10 to read as follows:
5-11 (b) To promote the public health, safety, or welfare, the
5-12 governing body of a municipality or county through a program may
5-13 refund its local sales and use taxes paid by a qualified business,
5-14 qualified supermarket owner, or qualified employee.
5-15 SECTION 9. Section 2303.506(a), Government Code, is amended
5-16 to read as follows:
5-17 (a) To promote the public health, safety, or welfare, the
5-18 governing body of a municipality or county through a program may
5-19 reduce or eliminate fees or taxes that it imposes on a qualified
5-20 business, qualified supermarket owner, or qualified employee.
5-21 SECTION 10. Section 2303.511(a), Government Code, is amended
5-22 to read as follows:
5-23 (a) The governing body of a municipality or county that is
5-24 the governing body of an enterprise zone may:
5-25 (1) defer compliance in the zone with the subdivision
5-26 and development ordinances or rules, other than those relating to
6-1 streets and roads or sewer or water services, of the municipality
6-2 or county, as appropriate;
6-3 (2) give priority to the zone for the receipt of:
6-4 (A) urban development action grant money;
6-5 (B) community development block grant money;
6-6 (C) industrial revenue bonds; or
6-7 (D) funds received under job-training programs
6-8 funded under the Job Training Partnership Act (29 U.S.C. Section
6-9 1501 et seq.) [the Texas Job-Training Partnership Act (Article
6-10 4413(52), Vernon's Texas Civil Statutes)];
6-11 (3) adopt and implement a plan for police protection
6-12 in the zone;
6-13 (4) amend the zoning ordinances of the municipality or
6-14 county, as appropriate, to promote economic development or the
6-15 location of a supermarket in the zone;
6-16 (5) establish permitting preferences for businesses in
6-17 the zone;
6-18 (6) establish simplified, accelerated, or other
6-19 special permit procedures for businesses in the zone;
6-20 (7) waive development fees for projects in the zone;
6-21 (8) create a local enterprise zone fund for funding
6-22 bonds or other programs or activities to develop or revitalize the
6-23 zone;
6-24 (9) for qualified businesses or qualified supermarket
6-25 owners in the zone, reduce rates charged by:
6-26 (A) a utility owned by the municipality or
7-1 county, as appropriate; or
7-2 (B) a cooperative corporation or utility owned
7-3 by private investors, subject to the requirements of Subsection
7-4 (b);
7-5 (10) in issuing housing finance bonds, give priority
7-6 to persons or projects in the zone;
7-7 (11) in providing services, give priority to local
7-8 economic development, educational, job training, or transportation
7-9 programs that benefit the zone; or
7-10 (12) sell real property owned by the municipality or
7-11 county, as appropriate, and located in the enterprise zone in
7-12 accordance with Section 2303.513.
7-13 SECTION 11. Subchapter I, Chapter 151, Tax Code, is amended
7-14 by adding Section 151.432 to read as follows:
7-15 Sec. 151.432. TAX REFUNDS FOR QUALIFIED SUPERMARKET OWNER.
7-16 (a) A qualified supermarket owner is eligible for a refund in the
7-17 amount provided by this section of the taxes imposed by this
7-18 chapter on:
7-19 (1) labor or building materials used in constructing
7-20 or otherwise providing a supermarket in an enterprise zone; and
7-21 (2) the purchase of goods and services in the
7-22 enterprise zone by the supermarket owner in connection with the
7-23 operation of the supermarket.
7-24 (b) The total amount of tax refunds that a qualified
7-25 supermarket owner may apply for under this section may not exceed
7-26 $100,000. A qualified supermarket owner may not apply for a refund
8-1 under this section after the end of the state fiscal year
8-2 immediately following the state fiscal year in which the qualified
8-3 supermarket owner's designation as a qualified supermarket owner is
8-4 removed.
8-5 (c) To receive a refund under this section, a qualified
8-6 supermarket owner must apply to the comptroller for the refund.
8-7 The Texas Department of Commerce shall provide the comptroller with
8-8 the assistance that the comptroller requires in administering this
8-9 section.
8-10 (d) In this section, "qualified supermarket owner" has the
8-11 meaning assigned by Section 2303.003, Government Code.
8-12 SECTION 12. This Act takes effect September 1, 1997.
8-13 SECTION 13. The importance of this legislation and the
8-14 crowded condition of the calendars in both houses create an
8-15 emergency and an imperative public necessity that the
8-16 constitutional rule requiring bills to be read on three several
8-17 days in each house be suspended, and this rule is hereby suspended.