By:  Seliger                                                      S.B. No. 1304
	(In the Senate - Filed March 9, 2005; March 21, 2005, read 
first time and referred to Subcommittee on Emerging Technologies 
and Economic Development; April 25, 2005, reported adversely, with 
favorable Committee Substitute to Committee on Business and 
Commerce; April 28, 2005, reported adversely, with favorable 
Committee Substitute from Committee on Business and Commerce by the 
following vote:  Yeas 8, Nays 0; April 28, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1304                                   By:  Brimer


A BILL TO BE ENTITLED

AN ACT


relating to projects that may be undertaken by certain development 
corporations with respect to business enterprises or business 
development.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subdivision (11), Section 2, Development 
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 
Statutes), is amended to read as follows:
		(11) [(A)]  "Project" shall mean:                     
			(A)  the land, buildings, equipment, facilities, 
expenditures, targeted infrastructure, and improvements (one or 
more) that are for the creation or retention of primary jobs and 
that are found by the board of directors to be required or suitable 
for the development, retention, or expansion of manufacturing and 
industrial facilities, research and development facilities, 
transportation facilities (including but not limited to airports, 
ports, mass commuting facilities, and parking facilities), sewage 
or solid waste disposal facilities, recycling facilities, air or 
water pollution control facilities, facilities for the furnishing 
of water to the general public, distribution centers, small 
warehouse facilities capable of serving as decentralized storage 
and distribution centers, primary job training facilities for use 
by institutions of higher education, and regional or national 
corporate headquarters facilities;[.]
			(B)  ["Project" also includes] job training 
required or suitable for the promotion of development and expansion 
of business enterprises and other enterprises described by this 
Act, as provided by Section 38 of this Act; or[.]
			(C)  ["Project" also includes] expenditures found 
by the board of directors to be required or suitable for 
infrastructure necessary to promote or develop new or expanded 
business enterprises limited to streets and roads, rail spurs, 
water and sewer utilities, electric utilities, gas utilities, 
drainage, site improvements, and related improvements, and 
telecommunications and Internet improvements.
	SECTION 2.  Subsection (a), Section 4B, Development 
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 
Statutes), is amended by adding Subdivision (3) to read as follows:
		(3)  For a corporation created by an eligible city with 
a population of 20,000 or less, "project" shall also include the 
land, buildings, equipment, facilities, expenditures, targeted 
infrastructure, and improvements found by the board of directors to 
promote new or expanded business development.
	SECTION 3. Subsection (a),  Section 40, Development 
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 
Statutes), is amended to read as follows:
	(a)  A corporation created under this Act may not provide a 
direct incentive to or make an expenditure on behalf of a business 
enterprise under a project as defined by Section 2 or 4B(a)(2) or 
(3) of this Act unless the corporation enters into a performance 
agreement with the business enterprise.
	SECTION 4.  This Act takes effect September 1, 2005.                           



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