By Brown                                               S.B. No. 603
         77R1877 SMH-D                           
                                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, shall promote 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, shall promote 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     shall encourage the cleanup of contaminated property through the
 4-6     use of supplemental environmental projects.  The commission may
 4-7     approve a supplemental environmental project with activities in
 4-8     territory of the United Mexican States if the project substantially
 4-9     benefits territory in this state in a manner described by
4-10     Subsection (b). The commission may not approve a project that is
4-11     necessary to bring a respondent into compliance with environmental
4-12     laws or that is necessary to remediate environmental harm caused by
4-13     the 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.