By Capelo H.B. No. 2941
77R7898 JMG-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of technological development zones in
1-3 certain populous counties; providing for the power of eminent
1-4 domain and the issuance of bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle C, Title 12, Local Government Code, is
1-7 amended by adding Chapter 397 to read as follows:
1-8 CHAPTER 397. TECHNOLOGICAL DEVELOPMENT ZONES
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 397.001. DEFINITIONS. In this chapter:
1-11 (1) "Board" means a board of directors of a
1-12 technological development zone.
1-13 (2) "Development zone" means an area designated as a
1-14 technological development zone under this chapter.
1-15 Sec. 397.002. JURISDICTION OF MUNICIPALITY. For the
1-16 purposes of this chapter, territory in the extraterritorial
1-17 jurisdiction of a municipality is considered to be in the
1-18 jurisdiction of the municipality.
1-19 Sec. 397.003. PURPOSE OF DEVELOPMENT ZONE. A development
1-20 zone is created to promote and encourage:
1-21 (1) technological development, including the
1-22 development of businesses in the technology service field;
1-23 (2) workforce development;
1-24 (3) the improvement in competitiveness in education;
2-1 (4) public and private sector partnerships; and
2-2 (5) the revitalization of neighborhoods.
2-3 (Sections 397.004-397.030 reserved for expansion
2-4 SUBCHAPTER B. CREATION OF TECHNOLOGICAL
2-5 DEVELOPMENT ZONE
2-6 Sec. 397.031. CRITERIA FOR DEVELOPMENT ZONE CREATION. (a)
2-7 To be created as a development zone, an area must:
2-8 (1) have a continuous boundary;
2-9 (2) be at least one square mile but not larger than an
2-10 area that is equal to five percent of the area, excluding lakes,
2-11 waterways, and transportation arteries, of the municipality,
2-12 county, or combination of municipalities or counties nominating the
2-13 area as a development zone;
2-14 (3) be an area of pervasive poverty, unemployment, and
2-15 economic distress;
2-16 (4) be located in a county with a population of
2-17 250,000 or more;
2-18 (5) be adjacent to major transportation nodes and
2-19 thoroughfares that may be used for exporting products to major
2-20 airports, railways, and ports; and
2-21 (6) be designated as a development zone by an
2-22 ordinance or order adopted by each creating body.
2-23 (b) A municipality may contain not more than three
2-24 development zones within its municipal boundaries.
2-25 (c) A county may contain not more than three development
2-26 zones in its unincorporated areas.
2-27 (d) Creation of a development zone in a municipality or
3-1 county does not affect the number of enterprise zones that may be
3-2 designated in the municipality or county under Chapter 2303,
3-3 Government Code.
3-4 Sec. 397.032. AREA OF PERVASIVE POVERTY, UNEMPLOYMENT, AND
3-5 ECONOMIC DISTRESS. An area is an area of pervasive poverty,
3-6 unemployment, and economic distress for the purposes of Section
3-7 397.031 if:
3-8 (1) the average rate of unemployment in the area
3-9 during the most recent 12-month period for which data is available
3-10 was at least one and one-half times the state average for that
3-11 period;
3-12 (2) the area is a low-income poverty area;
3-13 (3) the area is in a jurisdiction or pocket of poverty
3-14 eligible for urban development action grants under federal law,
3-15 according to the most recent certification available from the
3-16 United States Department of Housing and Urban Development; or
3-17 (4) at least 70 percent of the residents or households
3-18 of the area have an income that is less than 80 percent of the
3-19 median income of the residents or households of the locality or
3-20 state, whichever is less.
3-21 Sec. 397.033. CREATION OF DEVELOPMENT ZONE. (a) The
3-22 governing body of a municipality or county, individually or in
3-23 combination with other municipalities or counties, by ordinance or
3-24 order may create as a development zone an area within its
3-25 jurisdiction that meets the criteria under Section 397.031.
3-26 (b) Each creating body must hold a public hearing before
3-27 adopting an ordinance or order under this section.
4-1 (c) The governing body of a county may not designate
4-2 territory in a municipality to be included in a proposed
4-3 development zone unless the governing body of the municipality also
4-4 designates the territory.
4-5 (d) A development zone created under this section is a:
4-6 (1) political subdivision of the state; and
4-7 (2) special district.
4-8 Sec. 397.034. DESIGNATING ORDINANCE OR ORDER. (a) An
4-9 ordinance or order designating an area as a development zone must:
4-10 (1) describe precisely the area to be included in the
4-11 zone by a legal description or by reference to roadways, lakes,
4-12 waterways, or municipal or county boundaries;
4-13 (2) state a finding that the area meets the
4-14 requirements of this chapter;
4-15 (3) summarize briefly the incentives, including tax
4-16 incentives and other programs, that, at the election of the
4-17 designating body, apply to business enterprises in the area; and
4-18 (4) designate the area as a development zone.
4-19 (b) The incentives or programs summarized under Subsection
4-20 (a)(3) must include:
4-21 (1) an incentive that does not apply to all business
4-22 enterprises located in the jurisdiction of a governmental entity
4-23 that designated the area as a development zone;
4-24 (2) an incentive or program designed to improve the
4-25 skills of the local labor pool; and
4-26 (3) an incentive or program designed to address
4-27 infrastructure, housing, or other elements essential to improving
5-1 quality of life.
5-2 (c) This section does not prohibit a municipality or county
5-3 from extending additional incentives, including tax incentives, to
5-4 business enterprises in a development zone by a separate ordinance
5-5 or order.
5-6 Sec. 397.035. TAX INCREMENT. A creating body may allow one
5-7 quarter of one percent of a local property tax increment to fund a
5-8 development zone, as provided by Chapter 311, Tax Code. On
5-9 adoption of an order or ordinance by each creating body, the fund
5-10 may be used to pay salaries of employees of the board and
5-11 administrative expenses of the development zone.
5-12 Sec. 397.036. AMENDING BOUNDARIES. (a) A creating body by
5-13 ordinance or order may amend the boundary of a development zone
5-14 after a public hearing on the issue.
5-15 (b) The amended boundary:
5-16 (1) must be continuous;
5-17 (2) may not exceed the original size requirement of
5-18 Section 397.031; and
5-19 (3) may not exclude any area originally included
5-20 within the boundary of the development zone as designated.
5-21 (c) The entire development zone with the amended boundary
5-22 must continue to meet the unemployment and economic distress
5-23 requirements of Section 397.031.
5-24 (d) A creating body may not make more than one boundary
5-25 amendment for a development zone in a calendar year.
5-26 (e) If more than one body created the development zone, each
5-27 body must agree on the amendment by ordinance or order.
6-1 (Sections 397.037-397.060 reserved for expansion
6-2 SUBCHAPTER C. BOARD OF DIRECTORS
6-3 Sec. 397.061. BOARD OF DIRECTORS. (a) A development zone
6-4 is governed by a board of nine directors who serve two-year terms,
6-5 appointed as follows:
6-6 (1) if all or any portion of a development zone
6-7 contains territory outside the territory of a municipality:
6-8 (A) the governing body of the municipality, if
6-9 any, that includes the greatest part of the zone's territory shall
6-10 appoint four directors;
6-11 (B) other municipalities, if any, any part of
6-12 which are included in the zone's territory, jointly shall appoint
6-13 one director; and
6-14 (C) the commissioners court of the county in
6-15 which the zone is located shall appoint:
6-16 (i) nine directors, if the zone contains
6-17 no municipality; or
6-18 (ii) four directors, if the zone contains
6-19 one or more municipality; and
6-20 (D) if a development zone contains territory in
6-21 only one municipality, the municipality and the county in which the
6-22 zone is located jointly shall appoint one director; or
6-23 (2) if a development zone contains territory entirely
6-24 within the territory of one municipality, the governing body of the
6-25 municipality shall appoint nine directors.
6-26 (b) The initial terms of directors may be staggered.
6-27 Sec. 397.062. QUALIFICATIONS OF DIRECTORS. To serve as a
7-1 director, a person must:
7-2 (1) be at least 21 years old; and
7-3 (2) be registered to vote in the county in which the
7-4 development zone is located.
7-5 Sec. 397.063. PERSONS DISQUALIFIED FROM SERVING. Section
7-6 49.052, Water Code, applies to directors of a development zone
7-7 created under this chapter as if the zone were a district governed
7-8 by that section.
7-9 Sec. 397.064. BOARD VACANCIES. A vacancy in the office of
7-10 director shall be filled by appointment by the entity that
7-11 appointed the vacating director.
7-12 Sec. 397.065. REMOVAL OF DIRECTOR. A majority of the board
7-13 may remove a director for misconduct or failure to carry out the
7-14 director's duties.
7-15 Sec. 397.066. ORGANIZATION OF BOARD. (a) Except as
7-16 provided by Subsection (b), after each appointment and
7-17 qualification of directors by the appointing entities, the board
7-18 shall organize by electing a president, a vice president, a
7-19 secretary, and any other officers the board considers necessary.
7-20 (b) If a director is appointed under Section
7-21 385.061(a)(1)(D), that director shall serve as board president.
7-22 Sec. 397.067. QUORUM; DIRECTOR'S DUTIES; MANAGEMENT OF ZONE.
7-23 Sections 49.053, 49.057, and 49.058, Water Code, apply to the board
7-24 of directors of a development zone created under this chapter as if
7-25 the zone were a district governed by those sections.
7-26 Sec. 397.068. MEETINGS AND NOTICE. (a) The board shall
7-27 designate and establish a development zone office in the county.
8-1 (b) The board may establish regular meetings to conduct
8-2 development zone business and may hold special meetings at other
8-3 times as the business of a zone requires.
8-4 (c) Notice of the time, place, and purpose of any meeting of
8-5 the board shall be given by posting a notice containing that
8-6 information at a place convenient to the public within the
8-7 development zone. A copy of the notice shall be furnished to the
8-8 clerk or clerks of the county in which the zone is located, who
8-9 shall post the notice on a bulletin board in the county courthouse
8-10 used for that purpose.
8-11 Sec. 397.069. DIRECTOR'S COMPENSATION; BOND AND OATH OF
8-12 OFFICE. Sections 375.067, 375.069, and 375.070 apply to directors
8-13 of a development zone created under this chapter as if the zone
8-14 were a municipal management district.
8-15 (Sections 397.070-397.100 reserved for expansion
8-16 SUBCHAPTER D. POWERS AND DUTIES
8-17 Sec. 397.101. GENERAL POWERS. (a) A development zone may
8-18 acquire and dispose of projects and has powers, authority, rights,
8-19 and duties necessary to permit accomplishment of the purposes for
8-20 which the zone was created.
8-21 (b) A development zone may provide for general promotion of
8-22 and tourist advertising regarding the zone and its vicinity and for
8-23 a marketing program to attract visitors. Those activities may be
8-24 conducted by the zone under contracts for professional services
8-25 with persons or organizations selected by the zone.
8-26 (c) A development zone may enter into a memorandum of
8-27 understanding with any state agency, including an institution of
9-1 higher education, to further the economic development of the zone.
9-2 (d) To the extent not inconsistent with this chapter, a
9-3 development zone has the powers of:
9-4 (1) a municipal management district created under
9-5 Chapter 375; and
9-6 (2) a county commissioners court under Section
9-7 381.004.
9-8 Sec. 397.102. DUTY TO EVALUATE AVAILABLE FINANCING OPTIONS.
9-9 The board shall evaluate all options available to the development
9-10 zone as alternatives to imposing a tax under Section 397.035,
9-11 including:
9-12 (1) regional grants from federal and state agencies;
9-13 (2) local money from a creating body;
9-14 (3) money from charities;
9-15 (4) sales taxes for economic development in the
9-16 development zone;
9-17 (5) use or impact fees on affected business entities;
9-18 (6) incentives for business entities that may benefit
9-19 from the development zone;
9-20 (7) money provided by local governmental entities; and
9-21 (8) in-kind contributions.
9-22 Sec. 397.103. LIMIT ON DEVELOPMENT ZONE POWERS; OTHER LAWS
9-23 SUPERSEDE. (a) For purposes of this section, "district or zone"
9-24 means:
9-25 (1) a federal enterprise zone;
9-26 (2) a state enterprise zone;
9-27 (3) a municipal management district; or
10-1 (4) any other special district other than a
10-2 development zone.
10-3 (b) This section applies only to a district or zone that
10-4 contains territory included in the development zone's territory.
10-5 (c) The authority granted to a development zone under this
10-6 chapter is not granted to a district or zone.
10-7 (d) This chapter does not limit the authority or
10-8 jurisdiction of any district or zone.
10-9 (e) To the extent the laws of this chapter conflict with the
10-10 laws of any other district or zone, the laws of the other district
10-11 or zone shall control over this chapter.
10-12 Sec. 397.104. NEIGHBORHOOD REDEVELOPMENT ZONES. (a) The
10-13 board may designate an area as a neighborhood redevelopment zone if
10-14 the area is:
10-15 (1) adjacent to the development zone; and
10-16 (2) eligible for inclusion in the development zone
10-17 under Sections 397.036(b) and (c).
10-18 (b) A development zone may exercise the powers available to
10-19 it in an area designated by the board under Subsection (a).
10-20 Sec. 397.105. SUITS. A development zone may, through its
10-21 directors, sue and be sued in this state in the name of the
10-22 development zone. Service of process in any suit may be had by
10-23 serving a director.
10-24 Sec. 397.106. MONITORING. (a) The board shall monitor each
10-25 person in a development zone that receives benefits available under
10-26 this chapter.
10-27 (b) On the board's request, the Texas Workforce Commission
11-1 or the comptroller's office shall provide to the board tax records
11-2 of a person that receives benefits under this chapter.
11-3 (Sections 397.107-397.200 reserved for expansion
11-4 SUBCHAPTER E. GENERAL FISCAL PROVISIONS
11-5 Sec. 397.201. EXPENDITURES. A development zone's money may
11-6 be disbursed only by check, draft, order, or other instrument
11-7 signed by at least three directors. The general manager,
11-8 treasurer, or other employee of the development zone, if authorized
11-9 by resolution of the board, may sign checks, drafts, orders, or
11-10 other instruments on any development zone operation account on
11-11 behalf of the board.
11-12 Sec. 397.202. COMPETITIVE BIDDING; CONTRACT AWARD.
11-13 Subchapter K, Chapter 375, applies to a development zone created
11-14 under this chapter as if the zone were a municipal management
11-15 district.
11-16 (Sections 397.203-397.300 reserved for expansion
11-17 SUBCHAPTER F. DISSOLUTION
11-18 Sec. 397.301. DISSOLUTION OF DEVELOPMENT ZONE BY CREATING
11-19 BODY. (a) After a hearing, a creating body may dissolve a
11-20 development zone if:
11-21 (1) the area no longer meets the criteria for
11-22 designation under this chapter;
11-23 (2) the best interests of the creating body and the
11-24 owners of property and interests in property in the zone will be
11-25 served by dissolving the zone; and
11-26 (3) each creating body agrees by ordinance or order on
11-27 the:
12-1 (A) proposition that the zone should be
12-2 dissolved;
12-3 (B) disposition of zone assets; and
12-4 (C) assumption of liabilities by the creating
12-5 bodies.
12-6 (b) The dissolution of a development zone does not affect
12-7 the validity of a:
12-8 (1) tax incentive or regulatory relief granted or
12-9 accrued before the removal; or
12-10 (2) bond issued under this chapter.
12-11 Sec. 397.302. DISSOLUTION BY BOARD REQUEST. A board may
12-12 petition a creating body to dissolve the development zone under
12-13 Section 397.301 if a majority of the board finds at any time:
12-14 (1) before the authorization of bonds or the final
12-15 lending of its credit that the continuation of the development zone
12-16 is impracticable or cannot be successfully and beneficially
12-17 accomplished; or
12-18 (2) that all bonds of the development zone or other
12-19 debts of the zone have been paid and the purposes of the zone have
12-20 been accomplished.
12-21 Sec. 397.303. TAXES. On dissolution of a development zone,
12-22 any taxes levied on behalf of the zone are abolished.
12-23 SECTION 2. This Act takes effect immediately if it receives
12-24 a vote of two-thirds of all the members elected to each house, as
12-25 provided by Section 39, Article III, Texas Constitution. If this
12-26 Act does not receive the vote necessary for immediate effect, this
12-27 Act takes effect September 1, 2001.