SRC-MWN H.B. 1027 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1027
7R9703 SMH-DBy: Cook (Brown)
Natural Resources
4/16/2001
Engrossed


DIGEST AND PURPOSE 

Currently, many properties in Texas known as brownfields are abandoned or
underused owing to the liability associated with contamination from old
industrial activity. The Texas Natural Resource and Conservation Commission
has undertaken initiatives to encourage the cleanup of these contaminated
properties, but many brownfields still exit in Texas. As proposed, H.B.
1027 provides for the cleanup of these contaminated sites through the use
of sales and use tax proceeds, the elimination of barriers discouraging the
use of property tax breaks for contaminated sites, and encouraging the use
of supplemental environmental projects. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2(4), Development Corporation Act of 1979
(Article 5190.6, V.T.C.S.), to redefine "cost." 

SECTION 2. Amends Section 4A, Development Corporation Act of 1979 (Article
5190.6, V.T.C.S.), by adding Subsection (t) to authorize the Texas
Department of Commerce (department), with the assistance of the Texas
Natural Resource Conservation Commission, to encourage the cleanup of
contaminated property by corporations created under this section through
the use of sales and use tax proceeds. 

SECTION 3. Amends Section 4B, Development Corporation Act of 1979 (Article
5190.6, V.T.C.S.), by adding Subsection (p), to make a conforming change. 

SECTION 4. Amends Chapter 2155H, Government Code, by adding Section
2155.449, as follows: 

Sec. 2155.449. PREFERENCE FOR PRODUCTS OF FACILITIES ON FORMERLY
CONTAMINATED PROPERTY. Requires the General Services Commission
(commission) and state agencies to give preference to goods produced at a
facility located on property for which the owner has received a certificate
of completion under Section 361.609 (Certificate of Completion), Health and
Safety Code, if the goods meet state specifications regarding certain
criteria. 

SECTION 5. Amends Section 2303.102, Government Code, by adding Subsection
(c), to provide that individuals who are employed by a business and whose
principal place of employment is on property for which the business has
received a certificate of completion under Section 361.609, Health and
Safety Code, are not considered for purposes of determining the average
rate of unemployment in the area under Subsection (a)(1). 

SECTION 6. Amends Section 312.211(a), Tax Code, to delete text regarding
real property value  affected by release of a hazardous substance or
contaminant. 

SECTION 7. Amends Section 7.067(a), Water Code, to authorize the commission
to encourage the cleanup of contaminated property through the use of
supplemental environmental projects. 

SECTION 8. (a) Effective date: September 1, 2001.

(b) Makes application of Section 2303.102(c) (Area of Pervasive Poverty,
Unemployment, and Economic Distress), Government Code, prospective. 

(c) Makes application of Section 312.211(a) (Agreement by Municipality
Relating to Property Subject to Voluntary Cleanup Agreement), Tax Code,
prospective.