1-1 By: Cook (Senate Sponsor - Brown) H.B. No. 1027
1-2 (In the Senate - Received from the House April 2, 2001;
1-3 April 3, 2001, read first time and referred to Committee on Natural
1-4 Resources; April 18, 2001, reported favorably by the following
1-5 vote: Yeas 5, Nays 0; April 18, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the cleanup of contaminated property.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 2(4), Development Corporation Act of 1979
1-11 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
1-12 as follows:
1-13 (4) "Cost" as applied to a project shall mean and
1-14 embrace the cost of acquisition, cleanup, construction,
1-15 reconstruction, improvement, and expansion, including the cost of
1-16 the acquisition of all land, rights-of-way, property rights,
1-17 easements, and interests, the cost of all machinery and equipment,
1-18 financing charges, inventory, raw materials and other supplies,
1-19 research and development costs, interest prior to and during
1-20 construction and for one year after completion of construction
1-21 whether or not capitalized, necessary reserve funds, cost of
1-22 estimates and of engineering and legal services, plans,
1-23 specifications, surveys, estimates of cost and of revenue, other
1-24 expenses necessary or incident to determining the feasibility and
1-25 practicability of acquiring, cleaning, constructing,
1-26 reconstructing, improving, and expanding any such project,
1-27 administrative expense and such other expense as may be necessary
1-28 or incident to the acquisition, cleanup, construction,
1-29 reconstruction, improvement, and expansion thereof, the placing of
1-30 the same in operation, and the financing or refinancing of any such
1-31 project, including the refunding of any outstanding obligations,
1-32 mortgages, or advances issued, made or given by any person for any
1-33 of the aforementioned costs.
1-34 SECTION 2. Section 4A, Development Corporation Act of 1979
1-35 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
1-36 adding Subsection (t) to read as follows:
1-37 (t) The department, with the assistance of the Texas Natural
1-38 Resource Conservation Commission, may encourage the cleanup of
1-39 contaminated property by corporations created under this section
1-40 through the use of sales and use tax proceeds.
1-41 SECTION 3. Section 4B, Development Corporation Act of 1979
1-42 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
1-43 adding Subsection (p) to read as follows:
1-44 (p) The department, with the assistance of the Texas Natural
1-45 Resource Conservation Commission, may encourage the cleanup of
1-46 contaminated property by corporations created under this section
1-47 through the use of sales and use tax proceeds.
1-48 SECTION 4. Subchapter H, Chapter 2155, Government Code, is
1-49 amended by adding Section 2155.449 to read as follows:
1-50 Sec. 2155.449. PREFERENCE FOR PRODUCTS OF FACILITIES ON
1-51 FORMERLY CONTAMINATED PROPERTY. The commission and state agencies
1-52 shall give preference to goods produced at a facility located on
1-53 property for which the owner has received a certificate of
1-54 completion under Section 361.609, Health and Safety Code, if the
1-55 goods meet state specifications regarding quantity, quality,
1-56 delivery, life cycle costs, and price.
1-57 SECTION 5. Section 2303.102, Government Code, is amended by
1-58 adding Subsection (c) to read as follows:
1-59 (c) For purposes of determining the average rate of
1-60 unemployment in the area under Subsection (a)(1), individuals who
1-61 are employed by a business and whose principal place of employment
1-62 is on property for which the business has received a certificate of
1-63 completion under Section 361.609, Health and Safety Code, are not
1-64 considered.
2-1 SECTION 6. Section 312.211(a), Tax Code, is amended to read
2-2 as follows:
2-3 (a) This section applies only to:
2-4 (1) real property:
2-5 (A) that is located in a reinvestment zone;
2-6 (B) that is not in an improvement project
2-7 financed by tax increment bonds; and
2-8 (C) that is the subject of a voluntary cleanup
2-9 agreement under Section 361.606, Health and Safety Code; and
2-10 [(D) the value of which is adversely affected by
2-11 the release of a hazardous substance or contaminant according to
2-12 the two preceding appraisals by the appraisal office; and]
2-13 (2) tangible personal property located on the real
2-14 property.
2-15 SECTION 7. Section 7.067(a), Water Code, is amended to read
2-16 as follows:
2-17 (a) The commission may compromise, modify, or remit, with or
2-18 without conditions, an administrative penalty imposed under this
2-19 subchapter. In determining the appropriate amount of a penalty for
2-20 settlement of an administrative enforcement matter, the commission
2-21 may consider a respondent's willingness to contribute to
2-22 supplemental environmental projects that are approved by the
2-23 commission, giving preference to projects that benefit the
2-24 community in which the alleged violation occurred. The commission
2-25 may encourage the cleanup of contaminated property through the use
2-26 of supplemental environmental projects. The commission may approve
2-27 a supplemental environmental project with activities in territory
2-28 of the United Mexican States if the project substantially benefits
2-29 territory in this state in a manner described by Subsection (b).
2-30 The commission may not approve a project that is necessary to bring
2-31 a respondent into compliance with environmental laws or that is
2-32 necessary to remediate environmental harm caused by the
2-33 respondent's alleged violation.
2-34 SECTION 8. (a) This Act takes effect September 1, 2001.
2-35 (b) The change in law made by Section 2303.102(c),
2-36 Government Code, as added by this Act, applies only to an area that
2-37 is nominated as an enterprise zone on or after the effective date
2-38 of this Act. An area that is nominated as an enterprise zone
2-39 before the effective date of this Act is governed by the former
2-40 law, and that law is continued in effect for that purpose.
2-41 (c) The change in law made by Section 312.211(a), Tax Code,
2-42 as amended by this Act, applies only to a tax abatement agreement
2-43 entered into on or after the effective date of this Act. A tax
2-44 abatement agreement entered into before the effective date of this
2-45 Act is governed by the former law, and that law is continued in
2-46 effect for that purpose.
2-47 * * * * *