By: Chavez (Senate Sponsor - Lucio) H.B. No. 1659
(In the Senate - Received from the House May 2, 2005;
May 3, 2005, read first time and referred to Subcommittee on
Emerging Technologies and Economic Development; May 20, 2005,
reported favorably to Committee on Business and Commerce;
May 21, 2005, reported favorably from Committee on Business and
Commerce by the following vote: Yeas 6, Nays 0; May 21, 2005, sent
to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the designation of certain areas of this state as
enterprise zones under the enterprise zone program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2303.003, Government Code, is amended by
adding Subdivision (1-c) to read as follows:
(1-c) "Distressed county" means a county:
(A) that has a poverty rate above 15.4 percent;
(B) in which at least 25.4 percent of the adult
population does not hold a high school diploma or high school
equivalency certificate; and
(C) that has an unemployment rate that has
remained above 4.9 percent during the preceding five years.
SECTION 2. Section 2303.051, Government Code, is amended by
adding Subsection (a-2) to read as follows:
(a-2) The bank shall annually compile data identifying the
distressed counties in this state that automatically qualify for
designation as enterprise zones under this chapter.
SECTION 3. Section 2303.101, Government Code, is amended to
read as follows:
Sec. 2303.101. QUALIFICATION FOR ENTERPRISE ZONE
DESIGNATION. An area automatically qualifies for designation as an
enterprise zone if the area is:
(1) a block group, as defined by the most recent
federal decennial census available at the time of designation, in
which at least 20 percent of the residents of the block group have
an income at or below 100 percent of the federal poverty level; [or]
(2) an area designated by the federal government as a
renewal community, a federal empowerment zone, or a federal
enterprise community, including any developable area approved by
the federal agency responsible for making that designation; or
(3) an area located in a distressed county.
SECTION 4. Section 2303.109(a), Government Code, is amended
to read as follows:
(a) An enterprise zone designation remains in effect
indefinitely so long as the area continues to qualify for
designation as an enterprise zone under this chapter. If an area
described by Section 2303.101(1) no longer qualifies for enterprise
zone designation following the release of a subsequent federal
decennial census, the area's designation remains in effect until
the date on which the bank makes the updated information for that
subsequent census available to the public as required by Section
2303.051.
SECTION 5. Section 2303.405(f), Government Code, is amended
to read as follows:
(f) A nominating body may submit an application for a
project or activity that during the application process loses its
eligibility for designation as an enterprise project solely because
the project or activity is no longer located in an enterprise zone
as described by Section 2303.101(1) if the bank receives the
application not later than the 30th day after the date on which the
bank makes the updated block group data used to make the eligibility
determination available as required by Section 2303.051.
SECTION 6. Section 2303.406(b), Government Code, is amended
to read as follows:
(b) This subsection does not apply to a qualified business
located in a federally designated zone, as described by Section
2303.101(2), which will receive priority designation in allocating
the number of enterprise projects allowed statewide per biennium as
provided by Section 2303.403. The bank shall designate qualified
businesses as enterprise projects on a competitive basis. The bank
shall make its designation decisions using a weighted scale in
which:
(1) 40 percent of the evaluation depends on the
economic distress of the block group or distressed county in which a
proposed enterprise project is located;
(2) 25 percent of the evaluation depends on the local
effort to achieve development and revitalization of the block group
or distressed county in which a proposed enterprise project is
located; and
(3) 35 percent of the evaluation depends on the
evaluation criteria as determined by the bank, which must include:
(A) with respect to a proposed enterprise project
located in a block group, the level of cooperation and support the
project applicant commits to the revitalization goals of all of the
enterprise zone block groups within the jurisdiction of the
nominating governmental entity; [and]
(B) with respect to a proposed enterprise project
located in a distressed county, the level of cooperation and
support the project applicant commits to the revitalization of the
distressed county; and
(C) the type and wage level of the jobs to be
created or retained by the business.
SECTION 7. This Act takes effect September 1, 2005.
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