77R9703 SMH-D
By Cook H.B. No. 1027
Substitute the following for H.B. No. 1027:
By Kuempel C.S.H.B. No. 1027
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the cleanup of contaminated property.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2(4), Development Corporation Act of 1979
1-5 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
1-6 as follows:
1-7 (4) "Cost" as applied to a project shall mean and
1-8 embrace the cost of acquisition, cleanup, construction,
1-9 reconstruction, improvement, and expansion, including the cost of
1-10 the acquisition of all land, rights-of-way, property rights,
1-11 easements, and interests, the cost of all machinery and equipment,
1-12 financing charges, inventory, raw materials and other supplies,
1-13 research and development costs, interest prior to and during
1-14 construction and for one year after completion of construction
1-15 whether or not capitalized, necessary reserve funds, cost of
1-16 estimates and of engineering and legal services, plans,
1-17 specifications, surveys, estimates of cost and of revenue, other
1-18 expenses necessary or incident to determining the feasibility and
1-19 practicability of acquiring, cleaning, constructing,
1-20 reconstructing, improving, and expanding any such project,
1-21 administrative expense and such other expense as may be necessary
1-22 or incident to the acquisition, cleanup, construction,
1-23 reconstruction, improvement, and expansion thereof, the placing of
1-24 the same in operation, and the financing or refinancing of any such
2-1 project, including the refunding of any outstanding obligations,
2-2 mortgages, or advances issued, made or given by any person for any
2-3 of the aforementioned costs.
2-4 SECTION 2. Section 4A, Development Corporation Act of 1979
2-5 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
2-6 adding Subsection (t) to read as follows:
2-7 (t) The department, with the assistance of the Texas Natural
2-8 Resource Conservation Commission, may encourage the cleanup of
2-9 contaminated property by corporations created under this section
2-10 through the use of sales and use tax proceeds.
2-11 SECTION 3. Section 4B, Development Corporation Act of 1979
2-12 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
2-13 adding Subsection (p) to read as follows:
2-14 (p) The department, with the assistance of the Texas Natural
2-15 Resource Conservation Commission, may encourage the cleanup of
2-16 contaminated property by corporations created under this section
2-17 through the use of sales and use tax proceeds.
2-18 SECTION 4. Subchapter H, Chapter 2155, Government Code, is
2-19 amended by adding Section 2155.449 to read as follows:
2-20 Sec. 2155.449. PREFERENCE FOR PRODUCTS OF FACILITIES ON
2-21 FORMERLY CONTAMINATED PROPERTY. The commission and state agencies
2-22 shall give preference to goods produced at a facility located on
2-23 property for which the owner has received a certificate of
2-24 completion under Section 361.609, Health and Safety Code, if the
2-25 goods meet state specifications regarding quantity, quality,
2-26 delivery, life cycle costs, and price.
2-27 SECTION 5. Section 2303.102, Government Code, is amended by
3-1 adding Subsection (c) to read as follows:
3-2 (c) For purposes of determining the average rate of
3-3 unemployment in the area under Subsection (a)(1), individuals who
3-4 are employed by a business and whose principal place of employment
3-5 is on property for which the business has received a certificate of
3-6 completion under Section 361.609, Health and Safety Code, are not
3-7 considered.
3-8 SECTION 6. Section 312.211(a), Tax Code, is amended to read
3-9 as follows:
3-10 (a) This section applies only to:
3-11 (1) real property:
3-12 (A) that is located in a reinvestment zone;
3-13 (B) that is not in an improvement project
3-14 financed by tax increment bonds; and
3-15 (C) that is the subject of a voluntary cleanup
3-16 agreement under Section 361.606, Health and Safety Code; and
3-17 [(D) the value of which is adversely affected by
3-18 the release of a hazardous substance or contaminant according to
3-19 the two preceding appraisals by the appraisal office; and]
3-20 (2) tangible personal property located on the real
3-21 property.
3-22 SECTION 7. Section 7.067(a), Water Code, is amended to read
3-23 as follows:
3-24 (a) The commission may compromise, modify, or remit, with or
3-25 without conditions, an administrative penalty imposed under this
3-26 subchapter. In determining the appropriate amount of a penalty for
3-27 settlement of an administrative enforcement matter, the commission
4-1 may consider a respondent's willingness to contribute to
4-2 supplemental environmental projects that are approved by the
4-3 commission, giving preference to projects that benefit the
4-4 community in which the alleged violation occurred. The commission
4-5 may encourage the cleanup of contaminated property through the use
4-6 of supplemental environmental projects. The commission may approve
4-7 a supplemental environmental project with activities in territory
4-8 of the United Mexican States if the project substantially benefits
4-9 territory in this state in a manner described by Subsection (b).
4-10 The commission may not approve a project that is necessary to bring
4-11 a respondent into compliance with environmental laws or that is
4-12 necessary to remediate environmental harm caused by the
4-13 respondent's alleged violation.
4-14 SECTION 8. (a) This Act takes effect September 1, 2001.
4-15 (b) The change in law made by Section 2303.102(c),
4-16 Government Code, as added by this Act, applies only to an area that
4-17 is nominated as an enterprise zone on or after the effective date
4-18 of this Act. An area that is nominated as an enterprise zone
4-19 before the effective date of this Act is governed by the former
4-20 law, and that law is continued in effect for that purpose.
4-21 (c) The change in law made by Section 312.211(a), Tax Code,
4-22 as amended by this Act, applies only to a tax abatement agreement
4-23 entered into on or after the effective date of this Act. A tax
4-24 abatement agreement entered into before the effective date of this
4-25 Act is governed by the former law, and that law is continued in
4-26 effect for that purpose.