HBA-DMD H.B. 2959 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2959 By: Jones, Delwin State, Federal, & International Relations 4/10/1999 Introduced BACKGROUND AND PURPOSE Legislation passed by the 75th Legislature created the Defense Economic Readjustment Zones Program (program) and provided grant funding for communities that are facing realignment and/or closure of military installations. Currently, the program limits the number of projects to two businesses per zone that will be granted program incentives. These businesses are then eligible to receive the incentives of franchise tax reductions based on capital investment and sales and use tax refunds. H.B. 2959 establishes a municipality or county as an adversely affected defense-dependent community provided that the Texas Department of Commerce (department) determines that within the municipality or county there is a defense facility that the department of defense or an applicable military department has publicly proposed to be closed or realigned. This bill prohibits the department from establishing an arbitrary limit on the number of readjustment zones that may be designated in the same adversely affected defense-dependent community. It also prohibits the department from designating more than four businesses in a single readjustment zone as defense readjustment projects. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 486.003(b), Government Code, to establish a municipality or county as an adversely affected defense-dependent community provided that the Texas Department of Commerce (department) determines that within the municipality or county there is a defense facility that the department of defense or an applicable military department has publicly proposed to be closed or realigned. Makes conforming changes. SECTION 2. Amends Subchapter C, Chapter 2310, Government Code, by adding Section 2310.1071, as follows: Sec. 2310.1071. LIMIT ON NUMBER OF ZONES. Prohibits the department from establishing an arbitrary limit on the number of readjustment zones that may be designated in the same adversely affected defense-dependent community. SECTION 3. Amends Section 2310.303, Government Code, to prohibit the department from designating more than four, rather than two, businesses in a single readjustment zone as defense readjustment projects. SECTION 4.Emergency clause. Effective date: upon passage.