By West S.B. No. 1413
76R6589 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the enterprise zones.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2303.003, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 2303.003. DEFINITIONS. In this chapter:
1-7 (1) "Comptroller" means the comptroller of public
1-8 accounts.
1-9 (2) "Day" means the period between 8 a.m. and 5 p.m.
1-10 of a day other than a Saturday, Sunday, or state or federal
1-11 holiday.
1-12 [(2) "Department" means the Texas Department of
1-13 Commerce.]
1-14 (3) "Economically distressed area" means an area that
1-15 is severely economically distressed, as characterized by high
1-16 levels of unemployment or underemployment, low income levels, and
1-17 other similar criteria.
1-18 (4) "Enterprise zone" means an area designated as an
1-19 enterprise zone under this chapter.
1-20 (5) "Enterprise zone business" means a business that
1-21 is located in an area eligible to be designated as an enterprise
1-22 zone and that would meet the criteria for designation as a
1-23 qualified business if the area were an enterprise zone.
1-24 (6) "Good faith effort" means an attempt by a state
2-1 agency, to the best of its ability, to acquire goods and services
2-2 from a business in an enterprise zone or neighborhood empowerment
2-3 zone in a cost-effective manner, while providing economic
2-4 opportunities for those businesses.
2-5 (7) "Neighborhood empowerment zone" means the area
2-6 designated by the comptroller to:
2-7 (A) promote an increase in economic development;
2-8 or
2-9 (B) increase the quality of social services,
2-10 education, or public safety provided to persons living within the
2-11 zone.
2-12 (8) [(4)] "Neighborhood enterprise association" means
2-13 an association certified as a neighborhood enterprise association
2-14 under Section 2303.302.
2-15 (9) [(5) "Nominating body" means the governing body of
2-16 a municipality or county, or a combination of the governing bodies
2-17 of municipalities or counties, that nominates and applies for
2-18 designation of an area as an enterprise zone.]
2-19 [(6)] "Qualified business" means a person certified as
2-20 a qualified business under Section 2303.402.
2-21 (10) [(7)] "Qualified employee" means a person who:
2-22 (A) works for a qualified business; and
2-23 (B) performs at least 50 percent of the person's
2-24 service for the business in the enterprise zone.
2-25 (11) [(8)] "Qualified hotel project" means a hotel
2-26 proposed to be constructed by a municipality or a nonprofit
2-27 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 (12) "Reasonable bid" means any bid within five
3-8 percent of the lowest bid received that does not cause a
3-9 substantial inconvenience to the state agency.
3-10 SECTION 2. Section 2303.051, Government Code, is amended to
3-11 read as follows:
3-12 Sec. 2303.051. GENERAL POWERS AND DUTIES. (a) The
3-13 comptroller [department] shall administer and monitor the
3-14 implementation of this chapter.
3-15 (b) The comptroller [department] shall establish criteria
3-16 and procedures for designating a qualified area as an enterprise
3-17 zone and for designating an enterprise project in compliance with
3-18 Section 2303.101.
3-19 (c) The comptroller [department] shall adopt rules necessary
3-20 to carry out the purposes of this chapter.
3-21 SECTION 3. Section 2303.052, Government Code, is amended to
3-22 read as follows:
3-23 Sec. 2303.052. EVALUATION; REPORT. (a) The comptroller
3-24 [department] shall conduct a continuing evaluation of the programs
3-25 of enterprise zones.
3-26 (b) The comptroller [department] shall develop data from
3-27 available information demonstrating the relationship between the
4-1 incentives provided under this chapter and the economy.
4-2 (c) The comptroller [department] biennially shall review
4-3 local incentives.
4-4 (d) On or before December 1 of each year the comptroller
4-5 [department] shall submit to the governor, the legislature, and the
4-6 Legislative Budget Board a report that:
4-7 (1) evaluates the effectiveness of the enterprise zone
4-8 program;
4-9 (2) describes the use of state and local incentives
4-10 under this chapter and their effect on revenue; and
4-11 (3) suggests legislation.
4-12 SECTION 4. Section 2303.053, Government Code, is amended to
4-13 read as follows:
4-14 Sec. 2303.053. ASSISTANCE. (a) The comptroller
4-15 [department] shall assist:
4-16 (1) a qualified business in obtaining the benefits of
4-17 any incentive or inducement program provided by law;
4-18 (2) a unit of local government in obtaining status as
4-19 a federal enterprise zone;
4-20 (3) a qualified business [the governing body of an
4-21 enterprise zone] in obtaining assistance from another state agency,
4-22 including training and technical assistance [to qualified
4-23 businesses in a zone]; and
4-24 (4) a qualified business [the governing body of an
4-25 enterprise zone] in developing small business incubators.
4-26 (b) The comptroller [department] shall provide to persons
4-27 desiring to locate and engage in business in an enterprise zone
5-1 information and appropriate assistance relating to the required
5-2 legal authorization, including a state license, permit,
5-3 certificate, approval, registration, or charter, to engage in
5-4 business in this state.
5-5 (c) The comptroller [department] shall publicize existing
5-6 tax incentives and economic development programs in enterprise
5-7 zones.
5-8 (d) On request the comptroller [department] shall offer to a
5-9 unit of local government having an enterprise zone within its
5-10 jurisdiction technical assistance relating to tax abatement and the
5-11 development of alternative revenue sources.
5-12 SECTION 5. Section 2303.054, Government Code, is amended to
5-13 read as follows:
5-14 Sec. 2303.054. COORDINATION WITH OTHER GOVERNMENTAL
5-15 ENTITIES. (a) In cooperation with the appropriate units of local
5-16 government and other state agencies, the comptroller [department]
5-17 shall coordinate and streamline state business assistance programs
5-18 and permit or license application procedures for businesses in
5-19 enterprise zones.
5-20 (b) The comptroller [department] shall:
5-21 (1) work with the responsible state and federal
5-22 agencies to coordinate enterprise zone programs with other programs
5-23 carried out in an enterprise zone, including housing, community and
5-24 economic development, small business, banking, financial
5-25 assistance, transportation, and employment training programs;
5-26 (2) work to expedite, to the greatest extent possible,
5-27 the consideration of applications for those programs by
6-1 consolidating forms or by other means; and
6-2 (3) work, when possible, for the consolidation of
6-3 periodic reports required under those programs into one summary
6-4 report.
6-5 (c) The comptroller [department] shall encourage other state
6-6 agencies in awarding grants, loans, or services to give priority to
6-7 businesses in enterprise zones.
6-8 SECTION 6. Section 2303.101, Government Code, is amended to
6-9 read as follows:
6-10 Sec. 2303.101. CRITERIA FOR ENTERPRISE ZONE DESIGNATION.
6-11 (a) To be designated as an enterprise zone an area must:
6-12 (1) have a continuous boundary;
6-13 (2) be at least one square mile but not larger than
6-14 [the greater of:]
6-15 [(A) 10 square miles, excluding lakes,
6-16 waterways, and transportation arteries; or]
6-17 [(B) an area, not to exceed] 20 square miles[,
6-18 that is equal to five percent of the area, excluding lakes,
6-19 waterways, and transportation arteries, of the municipality,
6-20 county, or combination of municipalities or counties nominating the
6-21 area as an enterprise zone];
6-22 (3) be an area of pervasive poverty, unemployment, and
6-23 economic distress as provided by Section 2303.102; and
6-24 (4) be submitted for designation [nominated] as an
6-25 enterprise zone by an enterprise zone business [an ordinance or
6-26 order adopted by the nominating body].
6-27 (b) The comptroller [department] may not designate an area
7-1 as an enterprise zone if three enterprise zones are located in the
7-2 jurisdiction of [and were nominated as enterprise zones by the
7-3 governing body of] the municipality or county in which the zone is
7-4 to be located [nominating the area as an enterprise zone].
7-5 (c) An enterprise zone may be based on historic community or
7-6 neighborhood identity and may also use United States census
7-7 geographical units or Indian reservations.
7-8 SECTION 7. Section 2303.102, Government Code, is amended to
7-9 read as follows:
7-10 Sec. 2303.102. AREA OF PERVASIVE POVERTY, UNEMPLOYMENT, AND
7-11 ECONOMIC DISTRESS. (a) An area is an area of pervasive poverty,
7-12 unemployment, and economic distress for the purposes of Section
7-13 2303.101 if:
7-14 (1) the average rate of unemployment in the area
7-15 during the most recent 12-month period for which data are available
7-16 was at least one and one-half times the state average for that
7-17 period; or
7-18 (2) the area had a population loss of at least 12
7-19 percent during the most recent six-year period or at least four
7-20 percent during the most recent three-year period; and
7-21 (A) the area is a low-income poverty area;
7-22 (B) the area is in a jurisdiction or pocket of
7-23 poverty eligible for urban development action grants under federal
7-24 law, according to the most recent certification available from the
7-25 United States Department of Housing and Urban Development;
7-26 (C) at least 70 percent of the residents or
7-27 households of the area have an income that is less than 80 percent
8-1 of the median income of the residents or households of the locality
8-2 or state, whichever is less; or
8-3 (D) the applying enterprise zone business
8-4 [nominating body] establishes to the satisfaction of the
8-5 comptroller [department] that:
8-6 (i) chronic abandonment or demolition of
8-7 commercial or residential structures exists in the area;
8-8 (ii) substantial tax arrearages for
8-9 commercial or residential structures exist in the area;
8-10 (iii) substantial losses of businesses or
8-11 jobs have occurred in the area;
8-12 (iv) the area is part of a disaster area
8-13 declared by the state or federal government during the preceding 18
8-14 months; or
8-15 (v) the area has had a substantial
8-16 increase in the number of individuals younger than 18 years of age
8-17 arrested due to criminal activity.
8-18 (b) Labor force and population data are considered current
8-19 if:
8-20 (1) they are the most recently published estimates; or
8-21 (2) the enterprise zone application containing the
8-22 data is received by the comptroller [department] before the 61st
8-23 day after the date revised estimates of that data are published.
8-24 SECTION 8. Sections 2303.105(a) and (b), Government Code,
8-25 are amended to read as follows:
8-26 (a) For an area to be designated as an enterprise zone, an
8-27 enterprise zone business [the nominating body, after nominating the
9-1 area as an enterprise zone,] must send to the comptroller
9-2 [department] a written application for designation of the area as
9-3 an enterprise zone.
9-4 (b) The application must include:
9-5 (1) [a certified copy of the ordinance or order, as
9-6 appropriate, nominating the area as an enterprise zone;]
9-7 [(2)] a map of the area showing existing streets and
9-8 highways;
9-9 (2) [(3)] an analysis and appropriate supporting
9-10 documents and statistics demonstrating that the area qualifies for
9-11 designation as an enterprise zone;
9-12 (3) [(4) a statement that specifies each tax
9-13 incentive, grant, other financial incentive or benefit, or program
9-14 to be provided by the nominating body to business enterprises in
9-15 the area that is not to be provided throughout the governmental
9-16 entity or entities nominating the area as an enterprise zone;]
9-17 [(5)] a statement of the economic development and
9-18 planning objectives for the area;
9-19 (4) [(6)] a description of the functions, programs,
9-20 and services to be performed by a neighborhood enterprise
9-21 association in the area;
9-22 (5) [(7)] an estimate of the economic impact of the
9-23 designation of the area as an enterprise zone on the revenues of
9-24 the proposed [governmental entity or entities nominating the area
9-25 as an] enterprise zone, considering all the financial incentives
9-26 and benefits and the programs contemplated;
9-27 (6) [(8)] a transcript or tape recording of all public
10-1 hearings on the proposed zone;
10-2 (7) [(9)] if the application is a joint application, a
10-3 description and copy of the agreement between the applicants;
10-4 (8) [(10)] the procedures for negotiating with
10-5 residents, community groups, and other entities affected by the
10-6 designation of the area as an enterprise zone and with qualified
10-7 businesses in the area;
10-8 (9) [(11)] a description of the executive board
10-9 [administrative authority, if one is to be appointed for the
10-10 enterprise zone under Section 2303.202]; and
10-11 (10) [(12)] any additional information the comptroller
10-12 [department] requires.
10-13 SECTION 9. Section 2303.106, Government Code, is amended to
10-14 read as follows:
10-15 Sec. 2303.106. REVIEW OF APPLICATION. (a) On receipt of an
10-16 application for the designation of an enterprise zone, the
10-17 comptroller [department] shall review the application to determine
10-18 if the [nominated] area qualifies for designation as an enterprise
10-19 zone under this chapter.
10-20 (b) The comptroller [department] shall allow an applicant to
10-21 correct any omission or clerical error in the application and to
10-22 return the application to the comptroller [department] on or before
10-23 the 10th day after the day on which the comptroller [department]
10-24 receives the application.
10-25 SECTION 10. Sections 2303.107(a), (b), (c), and (d),
10-26 Government Code, are amended to read as follows:
10-27 (a) If the comptroller [department] determines that an [a
11-1 nominated] area for which a designation application has been
11-2 received satisfies the criteria under Section 2303.101, the
11-3 comptroller [department] shall negotiate with the applicant
11-4 [nominating body] for a designation agreement.
11-5 (b) A designation agreement must:
11-6 (1) designate the [nominated] area as an enterprise
11-7 zone; and
11-8 (2) designate the executive board [administrative
11-9 authority, if one is to be appointed for the zone under Section
11-10 2303.202,] and describe its functions and duties, which should
11-11 include decision-making authority and the authority to negotiate
11-12 with affected entities.
11-13 (c) The comptroller [department] shall complete the
11-14 negotiations and sign the agreement not later than the 60th day
11-15 after the day on which the application is received unless the
11-16 comptroller [department] extends that period to the 90th day after
11-17 the day on which the application was received.
11-18 (d) If an agreement is not completed within the 60-day
11-19 period provided by Subsection (c), the comptroller [department]
11-20 shall provide to the applicant [nominating body] the specific areas
11-21 of concern and a final proposal for the agreement.
11-22 SECTION 11. Section 2303.108, Government Code, is amended to
11-23 read as follows:
11-24 Sec. 2303.108. DENIAL OF APPLICATION; NOTICE. (a) The
11-25 comptroller [department] may deny an application for the
11-26 designation of an enterprise zone only if the comptroller
11-27 [department] determines that the [nominated] area does not satisfy
12-1 the criteria under Section 2303.101.
12-2 (b) The comptroller [department] shall inform the applicant
12-3 [nominating body] of the specific reasons for denial of an
12-4 application, including denial under Section 2303.107(e).
12-5 SECTION 12. Sections 2303.110(a), (d), and (e), Government
12-6 Code, are amended to read as follows:
12-7 (a) The enterprise zone business that applied for creation
12-8 of the zone [nominating body] may amend the boundary of an
12-9 enterprise zone by notifying the comptroller of the amendment
12-10 [ordinance or order, as appropriate, adopted after a public hearing
12-11 on the issue].
12-12 (d) The enterprise zone business [A nominating body] may not
12-13 make more than one boundary amendment annually for an enterprise
12-14 zone.
12-15 (e) For each amendment of an enterprise zone boundary, the
12-16 enterprise zone business [nominating body] shall pay the
12-17 comptroller [department] a reasonable fee, in an amount specified
12-18 by the comptroller [department], not to exceed $500. The
12-19 comptroller [department] may use fees collected under this
12-20 subsection to administer this chapter and for other purposes to
12-21 advance this chapter.
12-22 SECTION 13. Section 2303.111, Government Code, is amended to
12-23 read as follows:
12-24 Sec. 2303.111. REMOVAL OF DESIGNATION. (a) The comptroller
12-25 [department] may remove the designation of an area as an enterprise
12-26 zone if:
12-27 (1) the area no longer meets the criteria for
13-1 designation under this chapter or by comptroller [department] rule
13-2 adopted under this chapter; or
13-3 (2) the comptroller [department] determines that the
13-4 executive board [governing body] of the enterprise zone has not
13-5 complied with commitments made in the application for designation
13-6 of [ordinance or order nominating] the area as an enterprise zone.
13-7 (b) The removal of a designation does not affect the
13-8 validity of:
13-9 (1) a tax incentive or regulatory relief granted or
13-10 accrued before the removal; [or]
13-11 (2) bonds issued under this chapter; or
13-12 (3) contracts and stipulations agreed on or entered
13-13 into before termination of designation.
13-14 SECTION 14. Section 2303.201, Government Code, is amended to
13-15 read as follows:
13-16 Sec. 2303.201. ADMINISTRATION [BY GOVERNING BODY]. An
13-17 enterprise zone is administered by an executive board appointed by
13-18 the enterprise zone business that applied for designation of the
13-19 zone. The board must:
13-20 (1) be composed of 3, 5, 7, 9, 11, or 15 members;
13-21 (2) be a viable and responsive body generally
13-22 representative of all public or private entities that have a stake
13-23 in the development of the zone; and
13-24 (3) include enterprise zone residents and
13-25 representatives of the zone and of local businesses [The governing
13-26 body of an enterprise zone is the governing body of the
13-27 municipality or county, or the governing bodies of the combination
14-1 of municipalities or counties, that applied to have the area
14-2 designated as an enterprise zone].
14-3 SECTION 15. Section 2303.204, Government Code, is amended to
14-4 read as follows:
14-5 Sec. 2303.204. LIAISON. The executive board [governing
14-6 body] of an enterprise zone shall designate a liaison to
14-7 communicate and negotiate with:
14-8 (1) the comptroller [department];
14-9 (2) [the administrative authority, if one exists;]
14-10 [(3)] an enterprise project; and
14-11 (3) [(4)] other entities in or affected by the
14-12 enterprise zone.
14-13 SECTION 16. Section 2303.205, Government Code, is amended to
14-14 read as follows:
14-15 Sec. 2303.205. ANNUAL REPORT. (a) Not later than October 1
14-16 of each year, the executive board [governing body] of an enterprise
14-17 zone shall submit to the comptroller [department] a report in the
14-18 form required by the comptroller [department].
14-19 (b) [The report must be approved by the enterprise zone's
14-20 administrative authority, if one exists.]
14-21 [(c)] The report must include for the year preceding the
14-22 date of the report:
14-23 (1) a list of local incentives for community
14-24 development available in the zone;
14-25 (2) the use of local incentives in [for which the
14-26 governing body provided in the ordinance or order nominating] the
14-27 enterprise zone and the effect of those incentives on revenue;
15-1 (3) the number of businesses assisted, located, and
15-2 retained in the zone since its designation due to the existence of
15-3 the enterprise zone;
15-4 (4) a summary of all industrial revenue bonds issued
15-5 to finance projects located in the zone; and
15-6 (5) a description of all efforts made to attain
15-7 revitalization goals for the zone.
15-8 SECTION 17. Section 2303.301(e) and (f), Government Code,
15-9 are amended to read as follows:
15-10 (e) The incorporators shall publish in a newspaper of
15-11 general circulation, encompassing [in] the [governmental entity or
15-12 entities that applied to have the] area designated as an enterprise
15-13 zone, an explanation of the proposed association and the
15-14 incorporators' rights in the association.
15-15 (f) A copy of the association's articles of incorporation
15-16 and bylaws shall be available for public inspection at[:]
15-17 [(1)] the office of the executive board [city manager
15-18 or comparable municipal officer if the entity is a municipality; or]
15-19 [(2) the county judge's office if the entity is a
15-20 county].
15-21 SECTION 18. Section 2303.302, Government Code, is amended to
15-22 read as follows:
15-23 Sec. 2303.302. CERTIFICATION OF ASSOCIATION. (a) After a
15-24 neighborhood enterprise association is organized, the association's
15-25 board of directors must apply to the executive board [governing
15-26 body] of the enterprise zone or to the comptroller [department] for
15-27 certification as a neighborhood enterprise association.
16-1 (b) The executive board [governing body] of the enterprise
16-2 zone or the comptroller [department] may not grant certification
16-3 unless the association has hired or appointed a suitable chief
16-4 executive officer.
16-5 SECTION 19. Sections 2303.304(d) and (g), Government Code,
16-6 are amended to read as follows:
16-7 (d) The state or local governmental entity responsible for
16-8 providing a service may contract with a neighborhood enterprise
16-9 association to provide services in an amount equal to the amount
16-10 saved by the entity by the provision of the service under the
16-11 contract.
16-12 (g) A neighborhood enterprise association may receive money
16-13 without approval of the executive board [governing body] of the
16-14 enterprise zone.
16-15 SECTION 20. Section 2303.401, Government Code, is amended to
16-16 read as follows:
16-17 Sec. 2303.401. DEFINITION. In this subchapter, "new
16-18 permanent job" means a new employment position created by a
16-19 qualified business as described by Section 2303.402 that:
16-20 (1) has provided at least 1,820 hours of employment a
16-21 year to a qualified employee; and
16-22 (2) is intended to exist during the period that the
16-23 qualified business is designated as an enterprise project under
16-24 Section 2303.406 and until contracts entered into while designated
16-25 an enterprise project are completed unless otherwise agreed upon by
16-26 the contracting parties.
16-27 SECTION 21. Section 2303.402(a) and (b), Government Code,
17-1 are amended to read as follows:
17-2 (a) A person is a qualified business if the comptroller
17-3 [department], for the purpose of state benefits under this chapter,
17-4 or the executive board [governing body] of an enterprise zone, for
17-5 the purpose of local benefits, certifies that:
17-6 (1) the person is engaged in or has provided
17-7 substantial commitment to initiate the active conduct of a trade or
17-8 business in the enterprise zone; and
17-9 (2) at least 25 percent of the person's new employees
17-10 in the enterprise zone are:
17-11 (A) residents of [any enterprise zone in the
17-12 jurisdiction of the governing body of] the enterprise zone; or
17-13 (B) economically disadvantaged individuals.
17-14 (b) The executive board [governing body] of an enterprise
17-15 zone may certify a franchise or subsidiary of a new or existing
17-16 business as a qualified business if the franchise or subsidiary:
17-17 (1) is located entirely in the enterprise zone; and
17-18 (2) maintains separate books and records of the
17-19 business activity conducted in the zone.
17-20 SECTION 22. Section 2303.403, Government Code, is amended to
17-21 read as follows:
17-22 Sec. 2303.403. PROHIBITION ON QUALIFIED BUSINESS
17-23 CERTIFICATION. If the comptroller [department] determines that the
17-24 executive board [governing body] of an enterprise zone is not
17-25 complying with this chapter, the comptroller [department] shall
17-26 prohibit the certification of a qualified business in the zone
17-27 until the comptroller [department] determines that the executive
18-1 board [governing body] is complying with this chapter. The
18-2 comptroller [department] may not designate more than 65 businesses
18-3 as enterprise projects during any biennium.
18-4 SECTION 23. Section 2303.404, Government Code, is amended to
18-5 read as follows:
18-6 Sec. 2303.404. REQUEST FOR APPLICATION FOR ENTERPRISE
18-7 PROJECT DESIGNATION. (a) A qualified business in an enterprise
18-8 zone described by Subsection (b) may request that the executive
18-9 board [governing body] of the enterprise zone apply to the
18-10 comptroller [department] for designation of the business as an
18-11 enterprise project. [The request must also be made to the
18-12 enterprise zone's administrative authority, if one exists.]
18-13 (b) A request may be made under this section only to the
18-14 executive board [governing body] of an enterprise zone that has:
18-15 (1) an unemployment rate that is at least one and
18-16 one-half times the state average; or
18-17 (2) a population loss of at least:
18-18 (A) 12 percent during the most recent six-year
18-19 period; or
18-20 (B) four percent during the most recent
18-21 three-year period.
18-22 SECTION 24. Sections 2303.405(a) and (b), Government Code,
18-23 are amended to read as follows:
18-24 (a) If the executive board [governing body] of an enterprise
18-25 zone approves [or the governing body and administrative authority
18-26 of an enterprise zone, as appropriate, approve] a request made
18-27 under Section 2303.404, the executive board [governing body] may
19-1 apply to the comptroller [department] for the designation of the
19-2 qualified business as an enterprise project.
19-3 (b) An application must:
19-4 (1) describe completely the conditions in the
19-5 enterprise zone that constitute pervasive poverty, unemployment,
19-6 and economic distress for purposes of Section 2303.101;
19-7 (2) describe the procedures and efforts of the
19-8 enterprise zone business [governmental entity or entities] that
19-9 applied to have the area designated as an enterprise zone to
19-10 facilitate and encourage participation by and negotiation among all
19-11 affected entities in the zone in which the qualified business is
19-12 located;
19-13 (3) contain an economic analysis of the plans of the
19-14 qualified business for expansion, revitalization, or other activity
19-15 in the enterprise zone, including:
19-16 (A) the number of anticipated new permanent jobs
19-17 the business will create;
19-18 (B) the anticipated number of permanent jobs the
19-19 business will retain;
19-20 (C) the amount of investment to be made in the
19-21 zone; and
19-22 (D) other information the comptroller
19-23 [department] requires; and
19-24 (4) describe the local effort made by the enterprise
19-25 zone business [governmental entity or entities] that applied to
19-26 have the area designated as an enterprise zone, [the administrative
19-27 authority, if one exists], the qualified business, and other
20-1 affected entities to develop and revitalize the zone.
20-2 SECTION 25. Sections 2303.406(a), (b), and (d), Government
20-3 Code, are amended to read as follows:
20-4 (a) The comptroller [department] may designate a business as
20-5 an enterprise project only if the comptroller [department]
20-6 determines that:
20-7 (1) the business is a qualified business under Section
20-8 2303.402 that is located in or has made a substantial commitment to
20-9 locate in an enterprise zone described by Section 2303.404(b);
20-10 (2) the executive board [governing body] of the
20-11 enterprise zone making the application has demonstrated that a high
20-12 level of cooperation exists among public, private, and neighborhood
20-13 entities in the zone; and
20-14 (3) the designation will contribute significantly to
20-15 the achievement of the plans of the executive board [governing
20-16 body] making the application for development and revitalization of
20-17 the zone.
20-18 (b) The comptroller [department] shall designate qualified
20-19 businesses as enterprise projects on a competitive basis. The
20-20 comptroller [department] shall make its designation decisions using
20-21 a weighted scale in which:
20-22 (1) 50 percent of the evaluation depends on the
20-23 economic distress of:
20-24 (A) the enterprise zone in which a proposed
20-25 enterprise project is located; and
20-26 (B) the area within the enterprise zone where
20-27 the project is located;
21-1 (2) 25 percent of the evaluation depends on the local
21-2 effort to achieve development and revitalization of the enterprise
21-3 zone; and
21-4 (3) 25 percent of the evaluation depends on the
21-5 evaluation criteria as determined by the comptroller [department],
21-6 which must include:
21-7 (A) the level of cooperation and support the
21-8 project applicant commits to the revitalization goals of the zone;
21-9 and
21-10 (B) the type and wage level of the jobs to be
21-11 created or retained by the business.
21-12 (d) The comptroller [department] may remove an enterprise
21-13 project designation if it determines that the business is not
21-14 complying with a requirement for its designation.
21-15 SECTION 26. Section 2303.407, Government Code, is amended to
21-16 read as follows:
21-17 Sec. 2303.407. ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
21-18 When the comptroller [department] designates a business as an
21-19 enterprise project, the comptroller [department] shall allocate to
21-20 the project the maximum number of new permanent jobs or retained
21-21 jobs eligible to be included in a computation of a tax refund for
21-22 the project. The number may not exceed 625 or a number equal to
21-23 110 percent of the number of anticipated new permanent jobs or
21-24 retained jobs specified in the application for designation of the
21-25 business as an enterprise project under Section 2303.405, whichever
21-26 is less.
21-27 SECTION 27. Section 2303.408, Government Code, is amended to
22-1 read as follows:
22-2 Sec. 2303.408. DURATION OF CERTAIN DESIGNATIONS. The
22-3 comptroller's [department's] designation of a qualified business as
22-4 an enterprise project is effective until the fifth anniversary of
22-5 the date on which the designation is made regardless of whether the
22-6 enterprise zone in which the project is located expires before the
22-7 fifth anniversary of the project.
22-8 SECTION 28. Section 2303.501(b), Government Code, is amended
22-9 to read as follows:
22-10 (b) A local government entity may suspend local regulation,
22-11 including an ordinance, rule, or standard, relating to zoning,
22-12 licensing, or building codes in an enterprise zone.
22-13 SECTION 29. Sections 2303.502(b) and (c), Government Code,
22-14 are amended to read as follows:
22-15 (b) Annually each state agency shall:
22-16 (1) review the rules it administers that:
22-17 (A) may adversely affect:
22-18 (i) the renovation, improvement, or new
22-19 construction of housing in enterprise zones; or
22-20 (ii) the economic viability and
22-21 profitability of business and commerce in enterprise zones; or
22-22 (B) may otherwise affect the implementation of
22-23 this chapter; and
22-24 (2) report the results of the review to the
22-25 comptroller [department].
22-26 (c) The comptroller [department] shall disseminate the
22-27 reports to the governing bodies of enterprise zones and others as
23-1 necessary to advance the purposes of this chapter.
23-2 SECTION 30. Sections 2303.503(a), (c), and (d), Government
23-3 Code, are amended to read as follows:
23-4 (a) A state agency shall give preference to [the governing
23-5 body of an enterprise zone or] a qualified business or qualified
23-6 employee located in an enterprise zone over other eligible
23-7 applicants for grants or loans that are administered by the state
23-8 agency if:
23-9 (1) at least 50 percent of the grant or loan will be
23-10 spent for the direct benefit of the enterprise zone; and
23-11 (2) the purpose of the grant or loan is to:
23-12 (A) promote economic development in the
23-13 community; or
23-14 (B) construct, improve, extend, repair, or
23-15 maintain public facilities in the community.
23-16 (c) A state agency shall make a good faith effort [may and
23-17 is encouraged] to contract with businesses located in enterprise
23-18 zones or neighborhood empowerment zones. A contract shall be
23-19 awarded to a business in the enterprise or neighborhood empowerment
23-20 zone that makes a reasonable bid.
23-21 (d) The comptroller [department] may give preference to
23-22 enterprise zones in granting economic development money or other
23-23 benefits.
23-24 SECTION 31. Section 2303.504(c), Government Code, is amended
23-25 to read as follows:
23-26 (c) Not later than the 60th day after the last day of each
23-27 fiscal year, the comptroller shall report [to the department] the
24-1 statewide total of the tax refunds made under this section during
24-2 that fiscal year.
24-3 SECTION 32. Section 2303.505(c), Government Code, is amended
24-4 to read as follows:
24-5 (c) The governing body of a municipality or county in which
24-6 [that is the governing body of] an enterprise zone is located may
24-7 provide for the partial or total refund of its local sales and use
24-8 taxes paid by a person making a taxable purchase, lease, or rental
24-9 for development or revitalization in the zone.
24-10 SECTION 33. Section 2303.510(a), Government Code, is amended
24-11 to read as follows:
24-12 (a) The governing body of a municipality that contains [that
24-13 is the governing body of] an enterprise zone may create, in
24-14 accordance with the Development Corporation Act of 1979 (Article
24-15 5190.6, Vernon's Texas Civil Statutes), an industrial development
24-16 corporation for use by the enterprise zone.
24-17 SECTION 34. Section 2303.511(a), Government Code, is amended
24-18 to read as follows:
24-19 (a) The governing body of a municipality or county that
24-20 contains [that is the governing body of] an enterprise zone may:
24-21 (1) defer compliance in the zone with the subdivision
24-22 and development ordinances or rules, other than those relating to
24-23 streets and roads or sewer or water services, of the municipality
24-24 or county, as appropriate;
24-25 (2) give priority to the zone for the receipt of:
24-26 (A) urban development action grant money;
24-27 (B) community development block grant money;
25-1 (C) industrial revenue bonds; or
25-2 (D) funds received under Chapter 301, Labor Code
25-3 [the Texas Job-Training Partnership Act (Article 4413(52), Vernon's
25-4 Texas Civil Statutes)];
25-5 (3) adopt and implement a plan for police protection
25-6 in the zone;
25-7 (4) amend the zoning ordinances of the municipality or
25-8 county, as appropriate, to promote economic development in the
25-9 zone;
25-10 (5) establish permitting preferences for businesses in
25-11 the zone;
25-12 (6) establish simplified, accelerated, or other
25-13 special permit procedures for businesses in the zone;
25-14 (7) waive development fees for projects in the zone;
25-15 (8) create a local enterprise zone fund for funding
25-16 bonds or other programs or activities to develop or revitalize the
25-17 zone;
25-18 (9) for qualified businesses in the zone, reduce rates
25-19 charged by:
25-20 (A) a utility owned by the municipality or
25-21 county, as appropriate; or
25-22 (B) a cooperative corporation or utility owned
25-23 by private investors, subject to the requirements of Subsection
25-24 (b);
25-25 (10) in issuing housing finance bonds, give priority
25-26 to persons or projects in the zone;
25-27 (11) in providing services, give priority to local
26-1 economic development, educational, job training, or transportation
26-2 programs that benefit the zone; or
26-3 (12) sell real property owned by the municipality or
26-4 county, as appropriate, and located in the enterprise zone in
26-5 accordance with Section 2303.513.
26-6 SECTION 35. Section 2303.513(b), Government Code, is amended
26-7 to read as follows:
26-8 (b) A municipality or county may sell a surplus building or
26-9 vacant land in the enterprise zone at less than fair market value
26-10 if the governing body of the municipality or county by ordinance or
26-11 order, as appropriate, adopts criteria that specify the conditions
26-12 and circumstances under which the sale may occur and the public
26-13 purpose to be achieved by the sale. The building or land may be
26-14 sold to a buyer who is not the highest bidder if the criteria and
26-15 public purpose specified in the application for designation as an
26-16 enterprise zone [ordinance or order] are satisfied. A copy of the
26-17 application for designation as an enterprise zone [ordinance or
26-18 order] must be filed with the comptroller [department] not later
26-19 than the day on which the sale occurs.
26-20 SECTION 36. Sections 2303.103, 2303.104, and 2303.202,
26-21 Government Code, are repealed.
26-22 SECTION 37. (a) This Act takes effect September 1, 1999.
26-23 (b) On September 1, 1999, all powers, duties, funds,
26-24 obligations, contracts, property, and records of the Texas
26-25 Department of Economic Development relating to enterprise zones are
26-26 transferred to the comptroller. A rule of the Texas Department of
26-27 Economic Development relating to enterprise zones continues in
27-1 effect as a rule of the comptroller until superseded by a rule of
27-2 the comptroller.
27-3 (c) This Act does not affect the existence or form of the
27-4 governing body of an enterprise zone existing September 1, 1999.
27-5 A reference in law to the executive board of the enterprise zone is
27-6 a reference to the governing body of the zone as established under
27-7 the law in existence when the governing body was established.
27-8 SECTION 38. The importance of this legislation and the
27-9 crowded condition of the calendars in both houses create an
27-10 emergency and an imperative public necessity that the
27-11 constitutional rule requiring bills to be read on three several
27-12 days in each house be suspended, and this rule is hereby suspended.