By: Menendez (Senate Sponsor - Van de Putte) H.B. No. 3063

(In the Senate - Received from the House May 6, 2013; May 7, 2013, read first time and referred to Committee on Veteran Affairs and Military Installations; May 17, 2013, reported adversely, with favorable Committee Substitute by the following vote: Yeas 4, Nays 0; May 17, 2013, sent to printer.)

COMMITTEE SUBSTITUTE FOR H.B. No. 3063 By: Van de Putte

A BILL TO BE ENTITLED

AN ACT

relating to defense base development authorities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. 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;

(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; or

(4) an area inside the boundaries of a defense base development authority established under Chapter 379B, Local Government Code, that is immediately adjacent to five or more block groups described by Subdivision (1).

SECTION 2. Chapter 379B, Local Government Code, is amended by adding Section 379B.0091 to read as follows:

Sec. 379B.0091. DESIGNATION AS ENTERPRISE ZONE. An area inside the boundaries of a defense base development authority established under this chapter that is immediately adjacent to five or more block groups, as defined by the most recent federal decennial census, 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, automatically qualifies as an enterprise zone as provided by Section 2303.101, Government Code.

SECTION 3. Section 379B.011, Local Government Code, is amended by adding Subsections (c), (d), and (e) to read as follows:

(c) A commercial aircraft to be used as an instrumentality of commerce that is under construction inside the authority is presumed to be in interstate, international, or foreign commerce and not located in this state for longer than a temporary period for purposes of Sections 11.01 and 21.02, Tax Code.

(d) Tangible personal property located inside the authority is presumed to be in interstate, international, or foreign commerce and not located in this state for longer than a temporary period for purposes of Sections 11.01 and 21.02, Tax Code, if the owner demonstrates to the chief appraiser for the appraisal district in which the authority is located that the owner intends to incorporate the property into or attach the property to a commercial aircraft described by Subsection (c).

(e) In this section, "commercial aircraft" means an aircraft under construction that is designed to be used as described by Section 21.05(e), Tax Code.

SECTION 4. The change in law made by Section 3 of this Act applies only to ad valorem taxes imposed for a tax year beginning on or after January 1, 2014.

SECTION 5. (a) Except as provided by Subsection (b) of this section:

(1) this Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution; and

(2) if this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.

(b) Section 379B.011, Local Government Code, as amended by this Act, takes effect January 1, 2014.

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