SRC-VRA C.S.S.B. 403 78(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 403
By: Madla
Intergovernmental Relations
3/20/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, the Texas Department of Economic Development receives three
different types of applications to review and approve under the Texas
Enterprise Zone Act: enterprise zone applications, project applications,
and job certification applications.  The first establishes the zones, the
second designates businesses as projects, and the third certifies the jobs
to be created and/or retained as committed by the business in the project
application.  Only after the jobs are certified can the business proceed
to the comptroller to seek the promised incentives.  However, there
remains a discrepancy problem with the timing required to review the
applications.  Zones have a ten-day turnaround time in the statute with
which to comply, and projects have a ninety-day turnaround time for
negotiating the agreement between the business and the state, but the job
certification application does not have a time restriction.  C.S.S.B. 403
seeks to place all applications on the same time frame of sixty working
days in order to ensure the program's goal of attracting and retaining
businesses in distressed areas of the state. 

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 Chapter 2303B, Government Code, by adding Section
2303.055, as follows: 

Sec.  2303.055.  ACTION ON APPLICATION RECEIVED BY DEPARTMENT.  Requires
the Texas Department of Economic Development (TDED), not later than the
60th working day after the date on which TDED receives an application
under this chapter, to perform certain duties.  

SECTION 2.  Amends Section 2303.105(b), Government Code, to require an
application to include a map of the area showing existing streets and
highways, in a paper format and in an electronic format suitable for the
Internet. 

SECTION 3.  Amends Section 2303.109(b), Government Code, to authorize an
area designated as a renewal community rather than federal enterprise
zone, a federal empowerment zone, including developable areas, or federal
enterprise community to be designated as an enterprise zone. 

SECTION 4.  Amends Section 2303.110(e), Government Code, to increase the
fee charged for each amendment of an enterprise zone boundary from $500 to
$1,000. 

SECTION 5.  Amends Section 2303.112, Government Code, to make conforming
changes.   

SECTION 6.  Amends Section 2303.404(b), Government Code, to expand the
list of governing bodies of enterprise zones to which a request under this
section may be made to include the governing body of an enterprise zone
that is an area designated as a renewal community, federal empowerment
zone, including developable areas, or federal enterprise community.  Makes
nonsubstantive changes. 

SECTION 7.  Amends Section 2303.406, Government Code, by amending
Subsection (a) and adding  Subsection (e), as follows: 

(a)  Authorizes TDED to designate a business as an enterprise project if
TDED determines that a business seeking job retention benefits will
permanently lay off employees, close down permanently, or relocate
out-of-state.  Authorizes TDED to designate a business as an enterprise
project if the business facility is both adding a new business line or
product and deleting or decreasing an existing business line or product,
and the designation will prevent the facility's net production capacity
from decreasing.  

(e)  Authorizes TDED to designate multiple concurrent enterprise projects
in the same enterprise zone and to designate the same qualified business
as more than one enterprise project.  


SECTION 8.  (a)  Effective date:  September 1, 2003.  Makes application of
this Act prospective, except as provided by Subsection (b). 
  
(b)  Makes application of this Act retroactive to January 1, 2002, as
regards an application submitted under Chapter 2303, Government Code, as
amended by this Act.      





SUMMARY OF COMMITTEE CHANGES

SECTIONS 3, 4, and 6.  Differs from the original by restyling the citation
of three sections of the Government Code in the text of the bill. 

SECTION 7.  Differs from the original by replacing proposed new language
in text with existing statutory language relating to job retention
benefits.