HBA-DMD H.B. 2959 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2959
By: Jones, Delwin
State, Federal, & International Relations
4/10/1999
Introduced



BACKGROUND AND PURPOSE 

Legislation passed by the 75th Legislature created the Defense Economic
Readjustment Zones Program (program) and provided grant funding for
communities that are facing realignment and/or closure of military
installations. Currently, the program limits the number of projects to two
businesses per zone that will be granted program incentives. These
businesses are then eligible to receive the incentives of franchise tax
reductions based on capital investment and sales and use tax refunds.  

H.B. 2959 establishes a municipality or county as an adversely affected
defense-dependent community provided that the Texas Department of Commerce
(department) determines that within the municipality or county there is a
defense facility that the department of defense or an applicable military
department has publicly proposed to be closed or realigned. This bill
prohibits the department from establishing an arbitrary limit on the number
of readjustment zones that may be designated in the same adversely affected
defense-dependent community. It also prohibits the department from
designating more than four businesses in a single readjustment zone as
defense readjustment projects.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 486.003(b), Government Code, to establish a
municipality or county as an adversely affected defense-dependent community
provided that the Texas Department of Commerce (department) determines that
within the municipality or county there is a defense facility that the
department of defense or an applicable military department has publicly
proposed to be closed or realigned. Makes conforming changes. 

SECTION 2.  Amends Subchapter C, Chapter 2310, Government Code, by adding
Section 2310.1071, as follows: 

Sec. 2310.1071. LIMIT ON NUMBER OF ZONES. Prohibits the department from
establishing an arbitrary limit on the number of readjustment zones that
may be designated in the same adversely affected defense-dependent
community.  

SECTION 3.  Amends Section 2310.303, Government Code, to prohibit the
department from designating more than four, rather than two, businesses in
a single readjustment zone as defense readjustment projects.  

SECTION 4.Emergency clause.
  Effective date: upon passage.