By Ellis S.B. No. 1503
75R3774 DWS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to incentives for development of housing in an enterprise
1-3 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 2303.409 to read as follows:
1-7 Sec. 2303.409. QUALIFIED BUILDER. (a) A person is a
1-8 qualified builder if the governing body of an enterprise zone
1-9 certifies that:
1-10 (1) the person has demonstrated the person's
1-11 proficiency in construction by providing at least three
1-12 satisfactory references relating to the construction or
1-13 rehabilitation by the person of housing in this state in the
1-14 preceding three years;
1-15 (2) the person has provided satisfactory evidence of
1-16 financial responsibility; and
1-17 (3) the person participates in a 10-year insured
1-18 warranty program.
1-19 (b) A qualified builder is not required to be located in the
1-20 enterprise zone.
1-21 (c) The governing body may:
1-22 (1) condition the certification on the agreement by
1-23 the qualified builder to perform certain activities relating to
1-24 construction or rehabilitation in the enterprise zone; and
2-1 (2) require the builder periodically to provide the
2-2 governing body information the governing body considers necessary
2-3 to determine the builder's compliance with the agreement.
2-4 SECTION 2. The heading of Subchapter F, Chapter 2303,
2-5 Government Code, is amended to read as follows:
2-6 SUBCHAPTER F. QUALIFIED BUSINESSES, QUALIFIED BUILDERS, AND
2-7 ENTERPRISE PROJECTS
2-8 SECTION 3. Section 2303.003, Government Code, is amended to
2-9 read as follows:
2-10 Sec. 2303.003. DEFINITIONS. In this chapter:
2-11 (1) "Day" means the period between 8 a.m. and 5 p.m.
2-12 of a day other than a Saturday, Sunday, or state or federal
2-13 holiday.
2-14 (2) "Department" means the Texas Department of
2-15 Commerce.
2-16 (3) "Enterprise zone" means an area designated as an
2-17 enterprise zone under this chapter.
2-18 (4) "Neighborhood enterprise association" means an
2-19 association certified as a neighborhood enterprise association
2-20 under Section 2303.302.
2-21 (5) "Nominating body" means the governing body of a
2-22 municipality or county, or a combination of the governing bodies of
2-23 municipalities or counties, that nominates and applies for
2-24 designation of an area as an enterprise zone.
2-25 (6) "Qualified builder" means a person certified as a
2-26 qualified builder under Section 2303.409.
2-27 (7) "Qualified business" means a person certified as a
3-1 qualified business under Section 2303.402.
3-2 (8) [(7)] "Qualified employee" means a person who:
3-3 (A) works for a qualified business; and
3-4 (B) performs at least 50 percent of the person's
3-5 service for the business in the enterprise zone.
3-6 (9) [(8)] "Qualified hotel project" means a hotel
3-7 proposed to be constructed by a municipality or a nonprofit
3-8 municipally sponsored local government corporation created under
3-9 the Texas Transportation Corporation Act (Article 1528l, Vernon's
3-10 Texas Civil Statutes) that is within 1,000 feet of a convention
3-11 center owned by a municipality having a population of 1,500,000 or
3-12 more, including shops, parking facilities, and any other facilities
3-13 ancillary to the hotel.
3-14 SECTION 4. Section 2303.053(a), Government Code, is amended
3-15 to read as follows:
3-16 (a) The department shall assist:
3-17 (1) a qualified business or qualified builder in
3-18 obtaining the benefits of any incentive or inducement program
3-19 provided by law;
3-20 (2) a unit of local government in obtaining status as
3-21 a federal enterprise zone;
3-22 (3) the governing body of an enterprise zone in
3-23 obtaining assistance from another state agency, including training
3-24 and technical assistance to qualified businesses in a zone; and
3-25 (4) the governing body of an enterprise zone in
3-26 developing small business incubators.
3-27 SECTION 5. Section 2303.501(a), Government Code, is amended
4-1 to read as follows:
4-2 (a) A state agency may exempt from its regulation a
4-3 qualified business, qualified employee, qualified property, or
4-4 neighborhood enterprise association in an enterprise zone, or a
4-5 qualified builder operating in an enterprise zone, if the exemption
4-6 is consistent with:
4-7 (1) the purposes of this chapter; and
4-8 (2) the protection and promotion of the general health
4-9 and welfare.
4-10 SECTION 6. Section 2303.503(a), Government Code, is amended
4-11 to read as follows:
4-12 (a) A state agency shall give preference to the governing
4-13 body of an enterprise zone, [or] a qualified business or qualified
4-14 employee located in an enterprise zone, or a qualified builder
4-15 operating in an enterprise zone over other eligible applicants for
4-16 grants or loans that are administered by the state agency if:
4-17 (1) at least 50 percent of the grant or loan will be
4-18 spent for the direct benefit of the enterprise zone; and
4-19 (2) the purpose of the grant or loan is to:
4-20 (A) promote economic development in the
4-21 community; or
4-22 (B) construct, improve, extend, repair, or
4-23 maintain public facilities in the community.
4-24 SECTION 7. Section 2303.504(b), Government Code, is amended
4-25 to read as follows:
4-26 (b) A qualified builder [business] is entitled to a refund
4-27 of state taxes under Section 151.430, [Sections 151.431 and
5-1 171.501,] Tax Code.
5-2 SECTION 8. Section 2303.505(b), Government Code, is amended
5-3 to read as follows:
5-4 (b) To promote the public health, safety, or welfare, the
5-5 governing body of a municipality or county through a program may
5-6 refund its local sales and use taxes paid by a qualified business,
5-7 qualified builder, or qualified employee.
5-8 SECTION 9. Section 2303.506(a), Government Code, is amended
5-9 to read as follows:
5-10 (a) To promote the public health, safety, or welfare, the
5-11 governing body of a municipality or county through a program may
5-12 reduce or eliminate fees or taxes that it imposes on a qualified
5-13 business, qualified builder, or qualified employee.
5-14 SECTION 10. Section 2303.511(a), Government Code, is amended
5-15 to read as follows:
5-16 (a) The governing body of a municipality or county that is
5-17 the governing body of an enterprise zone may:
5-18 (1) defer compliance in the zone with the subdivision
5-19 and development ordinances or rules, other than those relating to
5-20 streets and roads or sewer or water services, of the municipality
5-21 or county, as appropriate;
5-22 (2) give priority to the zone for the receipt of:
5-23 (A) urban development action grant money;
5-24 (B) community development block grant money;
5-25 (C) industrial revenue bonds; or
5-26 (D) funds received under job-training programs
5-27 funded under the Job Training Partnership Act (29 U.S.C. Section
6-1 1501 et seq.) [the Texas Job-Training Partnership Act (Article
6-2 4413(52), Vernon's Texas Civil Statutes)];
6-3 (3) adopt and implement a plan for police protection
6-4 in the zone;
6-5 (4) amend the zoning ordinances of the municipality or
6-6 county, as appropriate, to promote economic development in the
6-7 zone;
6-8 (5) establish permitting preferences for businesses in
6-9 the zone;
6-10 (6) establish simplified, accelerated, or other
6-11 special permit procedures for businesses in the zone;
6-12 (7) waive development fees for projects in the zone;
6-13 (8) create a local enterprise zone fund for funding
6-14 bonds or other programs or activities to develop or revitalize the
6-15 zone;
6-16 (9) for qualified businesses or qualified builders in
6-17 the zone, reduce rates charged by:
6-18 (A) a utility owned by the municipality or
6-19 county, as appropriate; or
6-20 (B) a cooperative corporation or utility owned
6-21 by private investors, subject to the requirements of Subsection
6-22 (b);
6-23 (10) in issuing housing finance bonds, give priority
6-24 to persons or projects in the zone;
6-25 (11) in providing services, give priority to local
6-26 economic development, educational, job training, or transportation
6-27 programs that benefit the zone; or
7-1 (12) sell real property owned by the municipality or
7-2 county, as appropriate, and located in the enterprise zone in
7-3 accordance with Section 2303.513.
7-4 SECTION 11. Subchapter I, Chapter 151, Tax Code, is amended
7-5 by adding Section 151.430 to read as follows:
7-6 Sec. 151.430. TAX REFUNDS FOR QUALIFIED BUILDER. (a) A
7-7 qualified builder is eligible for a refund in the amount provided
7-8 by this section of the taxes imposed by this chapter on labor
7-9 or building materials used in constructing or rehabilitating
7-10 housing in an enterprise zone.
7-11 (b) The total amount of tax refund that a qualified builder
7-12 may apply for in a state fiscal year may not exceed $15,000. If a
7-13 qualified builder qualifies in a state fiscal year for a refund of
7-14 taxes in an amount in excess of the limitation provided by this
7-15 subsection, it may apply for a refund of those taxes in a
7-16 subsequent year, subject to the $15,000 limitation for each year.
7-17 However, a qualified builder may not apply for a refund under this
7-18 section after the end of the state fiscal year immediately
7-19 following the state fiscal year in which the qualified builder's
7-20 designation as a qualified builder is removed. The total amount
7-21 that may be refunded to a qualified builder under this section may
7-22 not exceed the amount determined by multiplying $15,000 by the
7-23 number of state fiscal years during which the qualified builder
7-24 constructed or rehabilitated housing in an enterprise zone.
7-25 (c) To receive a refund under this section, a qualified
7-26 builder must apply to the comptroller for the refund. The
7-27 department of commerce shall provide the comptroller with the
8-1 assistance that the comptroller requires in administering this
8-2 section.
8-3 (d) If the governing body of the enterprise zone that
8-4 certified a qualified builder determines that the builder no longer
8-5 qualifies for that certification or that the builder is not
8-6 complying with an agreement that the builder made in connection
8-7 with the certification, the governing body may direct the
8-8 comptroller to stop making refunds to the builder under this
8-9 section. On receiving this direction, the comptroller may not make
8-10 a refund to the builder under this section until the governing body
8-11 notifies the comptroller to resume making the refunds.
8-12 (e) In this section, "qualified builder" has the meaning
8-13 assigned by Section 2303.003, Government Code.
8-14 SECTION 12. Sections 151.431 and 171.501, Tax Code, are
8-15 repealed.
8-16 SECTION 13. This Act takes effect September 1, 1997.
8-17 SECTION 14. The importance of this legislation and the
8-18 crowded condition of the calendars in both houses create an
8-19 emergency and an imperative public necessity that the
8-20 constitutional rule requiring bills to be read on three several
8-21 days in each house be suspended, and this rule is hereby suspended.