78R5781 ATP-D

By:  Kolkhorst                                                    H.B. No. 2391



A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of certain areas of a municipality or 
county to participate in certain economic development programs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2155.449, Government Code, as added by 
Section 14.03, Chapter 1422, Acts of the 77th Legislature, Regular 
Session, 2001, is amended by adding Subsection (c) to read as 
follows:
	(c)  For the purposes of this section, an area shall be 
treated in the same manner as an economically depressed or blighted 
area if the area is located in a municipality, county, or 
metropolitan statistical area in which 45 percent or more of the 
workforce is employed by the federal or state government, according 
to the most recent report by the Texas Workforce Commission that 
provides that information.
	SECTION 2.  Section 2303.102, Government Code, is amended by 
adding Subsection (d) to read as follows:
	(d)  For the purposes of this chapter, an area shall be 
treated in the same manner as an area of pervasive poverty, 
unemployment, and economic distress if 45 percent or more of the 
workforce of the municipality, county, or metropolitan statistical 
area in which the area is located is employed by the federal or 
state government, according to the most recent report by the Texas 
Workforce Commission that provides that information.
	SECTION 3.  Subchapter E, Chapter 2306, Government Code, is 
amended by adding Section 2306.101 to read as follows:
	Sec. 2306.101.  RULES RELATING TO TEXAS CAPITAL FUND 
PROGRAMS. The Texas Department of Housing and Community Affairs 
shall provide by rule that a person is presumed to be a low or 
moderate income person for purposes of allocating funds from the 
Texas Capital Fund for real estate improvements or infrastructure 
improvements if the person resides in a municipality, county, or 
metropolitan statistical area in which 45 percent or more of the 
workforce is employed by the federal or state government, according 
to the most recent report by the Texas Workforce Commission that 
provides that information.
	SECTION 4.  Section 171.721(2), Tax Code, as effective 
September 1, 2003, is amended to read as follows:
		(2)  "Strategic investment area" means an area that is 
determined by the comptroller under Section 171.726 that is:
			(A)  a county within this state with above state 
average unemployment and below state average per capita income;
			(B)  an area within this state that is a federally 
designated urban enterprise community or an urban enhanced 
enterprise community; [or]
			(C)  a county within this state that has a 
spaceport, as defined by Section 4D, Development Corporation Act of 
1979 (Article 5190.6, Vernon's Texas Civil Statutes), as added by 
Chapter 1537, Acts of the 76th Legislature, Regular Session, 1999, 
within its boundaries; or
			(D)  an area located in a municipality, county, or 
metropolitan statistical area in which 45 percent or more of the 
workforce is employed by the federal or state government, according 
to the most recent report by the Texas Workforce Commission that 
provides that information.
	SECTION 5.  Section 171.721(2), Tax Code, as effective 
January 1, 2005, is amended to read as follows:
		(2)  "Strategic investment area" means an area that is 
determined by the comptroller under Section 171.726 that is:
			(A)  a county within this state with above state 
average unemployment and below state average per capita income;
			(B)  an area within this state that is a federally 
designated urban enterprise community or an urban enhanced 
enterprise community;  [or]
			(C)  a defense economic readjustment zone 
designated under Chapter 2310, Government Code; or
			(D)  an area located in a municipality, county, or 
metropolitan statistical area in which 45 percent or more of the 
workforce is employed by the federal or state government, according 
to the most recent report by the Texas Workforce Commission that 
provides that information.
	SECTION 6.  (a)  Except as provided by Subsection (b) of this 
section, this Act takes effect September 1, 2003.
	(b)  Section 5 of this Act takes effect January 1, 2005.                       
	SECTION 7.  The Texas Department of Housing and Community 
Affairs shall adopt rules as required by Section 2306.101, 
Government Code, as added by this Act, on or before January 1, 2004.