1-1 AN ACT
1-2 relating to funding certain job training expenditures through taxes
1-3 collected by certain industrial development corporations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2(10), Development Corporation Act of
1-6 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
1-7 read as follows:
1-8 (10)(A) "Project" shall mean the land, buildings,
1-9 equipment, facilities, and improvements (one or more) found by the
1-10 board of directors to be required or suitable for the promotion of
1-11 development and expansion of manufacturing and industrial
1-12 facilities, transportation facilities (including but not limited to
1-13 airports, ports, mass commuting facilities, and parking
1-14 facilities), sewage or solid waste disposal facilities, recycling
1-15 facilities, air or water pollution control facilities, facilities
1-16 for the furnishing of water to the general public, distribution
1-17 centers, and small warehouse facilities capable of serving as
1-18 decentralized storage and distribution centers, and for the
1-19 promotion of development or redevelopment and expansion, including
1-20 costs of administration and operation, of a military base closed or
1-21 realigned pursuant to recommendation of the Defense Closure and
1-22 Realignment Commission pursuant to the Defense Base Closure and
1-23 Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
1-24 and of facilities which are related to any of the foregoing, and in
2-1 furtherance of the public purposes of this Act, all as defined in
2-2 the rules of the department, irrespective of whether in existence
2-3 or required to be identified, acquired, or constructed thereafter.
2-4 "Project" also includes job training required or
2-5 suitable for the promotion of development and expansion of business
2-6 enterprises and other enterprises described by this Act, as
2-7 provided by Section 38 of this Act.
2-8 (B) As used in this Act, the term "development
2-9 areas" shall mean any area or areas of a city that the city finds
2-10 and determines, after a public hearing, should be developed in
2-11 order to meet the development objectives of the city. In addition,
2-12 in blighted or economically depressed areas, development areas,
2-13 federally designated empowerment zones and enterprise communities
2-14 designated under Section 1391, Internal Revenue Code of 1986, or
2-15 federally assisted new communities located within a home-rule city
2-16 or a federally designated economically depressed county of less
2-17 than 50,000 persons according to the last federal decennial census,
2-18 a project may include the land, buildings, equipment, facilities,
2-19 and improvements (one or more) found by the board of directors to
2-20 be required or suitable for the promotion of commercial development
2-21 and expansion and in furtherance of the public purposes of this
2-22 Act, or for use by commercial enterprises, all as defined in the
2-23 rules of the department, irrespective of whether in existence or
2-24 required to be acquired or constructed thereafter.
2-25 (C) As used in this Act, the term blighted or
2-26 economically depressed areas shall mean those areas and areas
2-27 immediately adjacent thereto within a city which by reason of the
3-1 presence of a substantial number of substandard, slum,
3-2 deteriorated, or deteriorating structures, or which suffer from a
3-3 high relative rate of unemployment, or which have been designated
3-4 and included in a tax incremental district created under Chapter
3-5 695, Acts of the 66th Legislature, Regular Session, 1979 (Article
3-6 1066d, Vernon's Texas Civil Statutes), or any combination of the
3-7 foregoing, the city finds and determines, after a hearing,
3-8 substantially impair or arrest the sound growth of the city, or
3-9 constitute an economic or social liability and are a menace to the
3-10 public health, safety, or welfare in their present condition and
3-11 use. The department shall adopt guidelines that describe the kinds
3-12 of areas that may be considered to be blighted or economically
3-13 depressed. The city shall consider these guidelines in making its
3-14 findings and determinations. Notice of the hearing at which the
3-15 city considers establishment of a development area or an
3-16 economically depressed or blighted area shall be posted at the city
3-17 hall before the hearing.
3-18 "Federally assisted new communities" shall mean those
3-19 federally assisted areas which have received or will receive
3-20 assistance in the form of loan guarantees under Title X of the
3-21 National Housing Act and a portion of the federally assisted area
3-22 has received grants under Section 107(a)(1) of the Housing and
3-23 Community Development Act of 1974, as amended.
3-24 SECTION 2. Section 3, Development Corporation Act of 1979
3-25 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
3-26 as follows:
3-27 Sec. 3. (a) It is hereby found, determined, and declared:
4-1 (1) that the present and prospective right to gainful
4-2 employment and general welfare of the people of this state require
4-3 as a public purpose the promotion and development of new and
4-4 expanded business enterprises and the promotion and development of
4-5 job training;
4-6 (2) that the existence, development, and expansion of
4-7 business, commerce, [and] industry, and job training are essential
4-8 to the economic growth of the state and to the full employment,
4-9 welfare, and prosperity of its citizens;
4-10 (3) that the means and measures authorized by this Act
4-11 and the assistance provided in this Act, especially with respect to
4-12 financing, are in the public interest and serve a public purpose of
4-13 the state in promoting the welfare of the citizens of the state
4-14 economically by the securing and retaining of business enterprises
4-15 and the resulting maintenance of a higher level of employment,
4-16 economic activity, and stability;
4-17 (4) that community industrial development corporations
4-18 in Texas have themselves invested substantial funds in successful
4-19 industrial development projects and have experienced difficulty in
4-20 undertaking such additional projects by reason of the partial
4-21 inadequacy of their own funds or funds potentially available from
4-22 local subscription sources and by reason of limitations of local
4-23 financial institutions in providing additional and sufficiently
4-24 sizable first mortgage loans; and
4-25 (5) that communities in this state are at a critical
4-26 disadvantage in competing with communities in other states for the
4-27 location or expansion of such enterprises by virtue of the
5-1 availability and prevalent use in all other states of financing and
5-2 other special incentives; therefore, the issuance of revenue bonds
5-3 by corporations on behalf of political subdivisions of the state as
5-4 hereinafter provided for the promotion and development of new and
5-5 expanded business enterprises to provide and encourage employment
5-6 and the public welfare is hereby declared to be in the public
5-7 interest and a public purpose.
5-8 (b) This Act shall be liberally construed in conformity with
5-9 the intention of the legislature herein expressed.
5-10 SECTION 3. Section 4A(f), Development Corporation Act of
5-11 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
5-12 read as follows:
5-13 (f) On receipt of the proceeds of the sales and use tax
5-14 imposed under this section from the comptroller, the city shall
5-15 deliver the proceeds to the corporation to use in carrying out its
5-16 functions. Tax proceeds may be used to pay the principal of,
5-17 interest on, and other costs relating to the corporation's bonds,
5-18 but neither the bonds nor any instrument related to the bonds may
5-19 give a bondholder a right to demand payment from tax proceeds in
5-20 excess of those collected from the tax imposed by this section.
5-21 Tax proceeds may also be used to pay expenses incurred by the
5-22 corporation under Section 38 of this Act relating to job training.
5-23 SECTION 4. Section 4B(a)(2), Development Corporation Act of
5-24 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
5-25 read as follows:
5-26 (2) "Project" means land, buildings, equipment,
5-27 facilities, and improvements included in the definition of that
6-1 term under Section 2 of this Act, and includes job training as
6-2 provided by Section 38 of this Act. For purposes of this section,
6-3 the term includes [including] recycling facilities, and land,
6-4 buildings, equipment, facilities, and improvements found by the
6-5 board of directors to:
6-6 (A) be required or suitable for use for
6-7 professional and amateur (including children's) sports, athletic,
6-8 entertainment, tourist, convention, and public park purposes and
6-9 events, including stadiums, ball parks, auditoriums, amphitheaters,
6-10 concert halls, learning centers, parks and park facilities, open
6-11 space improvements, municipal buildings, museums, exhibition
6-12 facilities, and related store, restaurant, concession, and
6-13 automobile parking facilities, related area transportation
6-14 facilities, and related roads, streets, and water and sewer
6-15 facilities, and other related improvements that enhance any of
6-16 those items;
6-17 (B) promote or develop new or expanded business
6-18 enterprises, including a project to provide public safety
6-19 facilities, streets and roads, drainage and related improvements,
6-20 demolition of existing structures, general municipally owned
6-21 improvements, as well as any improvements or facilities that are
6-22 related to any of those projects and any other project that the
6-23 board in its discretion determines promotes or develops new or
6-24 expanded business enterprises; or
6-25 (C) be required or suitable for the promotion of
6-26 development and expansion of affordable housing, as defined by 42
6-27 U.S.C. Section 12745.
7-1 SECTION 5. Section 4C(b), Development Corporation Act of
7-2 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
7-3 read as follows:
7-4 (b) The reporting form shall not exceed one page in length
7-5 and must include:
7-6 (1) a statement of the corporation's primary economic
7-7 development objectives;
7-8 (2) a statement of the corporation's total revenues
7-9 during the preceding fiscal year;
7-10 (3) a statement of the corporation's total
7-11 expenditures during the preceding fiscal year;
7-12 (4) a statement of the corporation's total
7-13 expenditures during the preceding fiscal year in each of the
7-14 following categories:
7-15 (A) administration;
7-16 (B) personnel;
7-17 (C) marketing or promotion;
7-18 (D) direct business incentives;
7-19 (E) job training;
7-20 (F) debt service;
7-21 (G) [(F)] capital costs;
7-22 (H) [(G)] affordable housing; and
7-23 (I) [(H)] payments to taxing units, including
7-24 school districts;
7-25 (5) a list of the corporation's capital assets,
7-26 including land and buildings; and
7-27 (6) any other information the comptroller requires to
8-1 determine the use of the sales and use tax imposed under Section 4A
8-2 or 4B of this Act to encourage economic development in this state.
8-3 SECTION 6. The Development Corporation Act of 1979 (Article
8-4 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
8-5 38 to read as follows:
8-6 Sec. 38. (a) In this section, "average weekly wage" has the
8-7 meaning defined by the labor market information division of the
8-8 Texas Workforce Commission.
8-9 (b) Except as provided by Subsection (c) of this section, a
8-10 corporation may spend tax revenue received under this Act for job
8-11 training offered through a business enterprise only if the business
8-12 enterprise has committed in writing to create new jobs that pay at
8-13 least the average weekly wage for the county in which the jobs are
8-14 to be located.
8-15 (c) In a county in which the unemployment rate for the
8-16 preceding calendar year equals or exceeds 1.5 times the state
8-17 average unemployment rate for the preceding calendar year, a
8-18 corporation may spend tax revenue received under this Act for job
8-19 training offered through a business enterprise only if the business
8-20 enterprise has committed in writing to create new jobs that pay at
8-21 least 90 percent of the average weekly wage for the county in which
8-22 the jobs are to be located.
8-23 (d) A corporation may not spend tax revenue received under
8-24 this Act for job training in an amount that exceeds more than
8-25 one-half the actual cost of the job training.
8-26 (e) Unless the project is located in a county in which the
8-27 unemployment rate for the preceding calendar year equals or exceeds
9-1 1.5 times the state average unemployment rate for the preceding
9-2 calendar year, a corporation may not spend tax revenue received
9-3 under this Act for job training if other state or federal funds
9-4 dedicated to job training are used in the project.
9-5 SECTION 7. The importance of this legislation and the
9-6 crowded condition of the calendars in both houses create an
9-7 emergency and an imperative public necessity that the
9-8 constitutional rule requiring bills to be read on three several
9-9 days in each house be suspended, and this rule is hereby suspended,
9-10 and that this Act take effect and be in force from and after its
9-11 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1916 was passed by the House on May
4, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1916 was passed by the Senate on May
25, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor