HomeMy WebLinkAboutPR 18869: NOMINATING THE MEDICAL CENTER OF SOUTHEAST TEXAS MEMORANDUM
DEPARTMENT OF DEVELOPMENT SERVICES
DIVISION OF PLANNING AND ZONING
To: Brian McDougal, City Manager, Mayor and City Council
FROM: Ronald Burton, Director of Development Services
DATE: February 10, 2015
RE: P.R. No. 18869 — Nominating the Medical Center of Southeast Texas, L.P. to the Office
of the Governor...for designation as a Qualified Business and Enterprise Project under the
Texas Enterprise Zone Act, Chapter 2303, Texas Government Code ("ACT").
COMM ENT:
RECOMMENDATION:
It is recommended that the City Council approve Proposed Resolution 18869 designating the Medical
Center of Southeast Texas, L.P. as a Qualified Business and Enterprise Project under the Texas
Enterprise Zone Act, Chapter 2303, Texas Government Code ("ACT").
BACKGROUND:
The City of Port Arthur on November 19, 2013, passed Ordinance No. 13-54 electing to participate in
the Texas Enterprise Zone Program.
The Office of the Governor, Economic Development and Tourism, through the Economic Development
Bank, will consider the project proposed by THE MEDICAL CENTER OF SOUTHEAST TEXAS, L.P. as
an enterprise project pursuant to a nomination and an application made by the City of Port Arthur on their
behalf.
The Medical Center of Southeast Texas, L.P. (the "Medical Center") is a 224-bed hospital located in
Port Arthur, Texas that opened in April of 2005. The Medical Center is a subsidiary of IASIS Healthcare
LLC ("IASIS").
The high-tech Medical Center in Port Arthur was the first new hospital construction project for
IASIS. Focused on creating Centers of Excellence in cardiology, emergency services, orthopedics, and
women's services, the hospital is equipped with state-of-the-art medical technology such as digital
operating suites and advanced diagnostic imaging systems. The Medical Center provides a full range of
hospital services to Port Arthur and the surrounding communities. The Medical Center has been
recognized as a Solucient Top 100 Heart Hospital and has earned the Gold Seal of Approval from the
Joint Commission on the Accreditation of Healthcare Organizations for the treatment of acute coronary
syndrome.
Over the next five years, the Medical Center anticipates making over $7 million in capital investment at
the Port Arthur facility. The majority of the capital expenditures will be used to renovate examining rooms
and to purchase machinery and equipment in an effort to provide continuous superior healthcare services.
Approximately, $1.1 million in catheterization laboratory renovations and over $500,000 in new ultrasound
systems are planned. The remaining $5.5 million in investment is planned on various equipment upgrades
and building improvements which include a LAN upgrade, ENDO equipment and tower, Radiology x-ray
equipment, MRI Anesthesia monitors and a water storage tank.
Section 2303.406(a) (4) (D) of the Texas Government Code allows a projec or activity of a qualified
business to be designated an Enterprise Project and receive job retention berefits if the business has
clearly demonstrated that "the business is able to employ individuals in accordance with Section
2303.402." The Medical Center qualifies for job retention benefits under this Statutory provision because
the Port Arthur facility is located at 2555 Jimmy Johnson Blvd., Port Arthur, Texas 77640 in Census
Tract 69, Block Group 1, in Jefferson County with an 8.26% poverty level, as defined by the U.S.
Census for 2010. Additionally, the City of Port Arthur itself has a poverty rate of 30.1%. The Medical
Center commits to hiring 35% economically disadvantaged persons or enterprise zone residents for its new
or replacement personnel, for certified jobs over the next five years.
The Medical Center employed 433 full time employees and 259 Part-Time employees on the 90
business day look-back date of October 14, 2014 at its Port Arthur facility. The Medical Center expects
to retain its existing level of employment, and it will be seeking benefit for its fu I time positions under the
Enterprise Zone Program. These full time jobs meet the definition of "retained _ob" in Texas Government
Code Section 2303.401 (2) because they currently exist, provide and will continue to provide at least
1,820 hours of employment annually, and will be employment positions for the longer of the duration of
the project's designation period or three years after the expiration date of the claim period for receipt of
state benefit. Given this proposed investment, no layoffs or reductions in employment are contemplated at
this time.
BUDGETARY EFFECT: None
STAFFING/EMPLOYEE EFFECT: None
SUMMARY:
It is recommended that the City Council approve Proposed Resolution 1886 designating the Medical
Center of Southeast Texas, L.P. as a Qualified Business and Enterprise Project under the Texas
Enterprise Zone Act, Chapter 2303, Texas Government Code ("ACT").
P.R. NO. 18869
02/10/2015 PDL
PAGE 1 OF 21
RESOLUTION NO.
A RESOLUTION NOMINATING THE MEDICAL CENTER OF SOUTHEAST TEXAS,
L.P. TO THE OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND
TOURISM ("OOGEDT") THROUGH THE ECONOMIC DEVELOPMENT BANK ("
BANK") FOR DESIGNATION AS A QUALIFIED BUSINESS AND ENTERPRISE
PROJECT ("PROJECT") UNDER THE TEXAS ENTERPRISE ZONE ACT, CHAPTER
2303, TEXAS GOVERNMENT CODE ("ACT").
WHEREAS, the City Council of the City of Port Arthur, Texas ("City") has previously passed
Ordinance No. 13-54, approved November 19, 2013, electing to participate in the Texas Enterprise Zone
Program, and the local incentives offered under this resolution are the same on this date as were outlined in
City Ordinance No. 13-54; and,
WHEREAS, the Office of the Governor Economic Development and Tourism, through the Economic
Development Bank, will consider The Medical Center of Southeast Texas, L.P. as an enterprise project
pursuant to a nomination and an application made by the City; and,
WHEREAS, the City desires to pursue the creation of the proper economic and social environment in
order to induce the investment of private resources in productive business enterprises located in the City and
to provide employment to residents of enterprise zones and to other economically disadvantaged individuals;
and,
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas
Government Code ("Act"), The Medical Center of Southeast Texas, L.P. has applied to the City for
designation as an enterprise project; and,
WHEREAS, the City finds that The Medical Center of Southeast Texas, L.P. meets the criteria for
designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds:
1. The Medical Center of Southeast Texas, L.P. is a "qualified business" under Section 2303.402 of
the Act since it will be engaged in the active conduct of a trade or business at a qualified business
site located outside an enterprise zone in the governing body's jurisdiction, and at least thirty-five
P.R. NO. 18869
02/10/2015 PDL
PAGE 2 OF 21
percent (35%) of the business' new employees will be residents of an enterprise zone or
economically disadvantaged individuals; and
2. There has been and will continue to be a high level of cooperation between public, private and
neighborhood entities in the area; and
3. The designation of The Medical Center of Southeast Texas, L.P. as a Texas Enterprise Project will
contribute significantly to the achievement of the plans of the City for development and revitalization
of the area.
WHEREAS, the City finds that The Medical Center of Southeast Texas, L.P. meets the criteria for
tax relief and other incentives adopted by the City and nominates The Medical Center of Southeast Texas,
L.P. for enterprise project status on the grounds that this enterprise project will be located at the qualified
business site and will create a higher level of employment, economic activity and stability in the area; and,
WHEREAS, the City finds that it is in the best interest of the City to nominate The Medical Center
of Southeast Texas, L.P. as an enterprise project pursuant to the Act; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS:
THAT the findings of the City and its actions approving this Resolution taken at the council meeting
are hereby approved and adopted.
THAT the Medical Center of Southeast Texas, L.P. is a "qualified business" as defined in Section
2303.402 of the Act and meets the criteria for designation as an enterprise project, as set forth in Chapter
2303, Subchapter F of the Act.
THAT this enterprise project shall take effect on the date of designation of the enterprise project by
the agency and terminate five (5) years from the date of designation.
THAT this Resolution shall take effect immediately upon its passage and approval.
P.R. NO. 18869
02/10/2015 PDL
PAGE 3 OF 21
READ, ADOPTED AND APPROVED this day of February, A.D. 2015 at a Regular Meeting
of the City Council of the City of Port Arthur, Texas by the following votes: AYES:
MAYOR
COUNCILMEMBERS
NOES:
Deloris "Bobbie" Prince, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Y‘ €9
Valecia "Val" Tizeno, Attorney
APPROVED FOR ADMINISTRATION:
Brian McDougal, City Manager
411WA
Ronald "Ron" Burto D`ctor of Development Services
P.R. NO. 18869
02/10/2015 PDL
PAGE 4 OF 21
EXHIBIT "A"
The edical Center
2555 Jimmy
OFJohnson SOUTHEAST TEXAS
Boulevard
Port Arthur,TX 77640
Ph.409.724.SETX (7389)
Fax 409.853.5910
www.medicalcentersetexas corn
February 10, 2015
Mr. Ron Burton
Director of Planning
City of Port Arthur
PO Box 1089
Port Arthur, Texas 77641
Re: Request Nomination for Enterprise Project Status for Job Retention under
2303.406(a)(4)(D) of the Texas Government Code
Dear Mr. Burton:
We are pleased to present the relevant information required by Chapter 2303 of the Texas
Government Code for your consideration and nomination of The Medical Center of Southeast
Texas, L.P. (the "Medical Center") as an Enterprise Project for job retention benefits.
The Medical Center of Southeast Texas, L.P. (the "Medical Center") is a 224-bed hospital
located in Port Arthur, Texas that opened in April of 2005. The Medical Center is a subsidiary
of IASIS Healthcare LLC ("IASIS"). IASIS is a privately held company that owns and operates
community-focused hospitals in high growth urban and suburban markets. Founded in 1998 and
headquartered in Franklin, Tennessee, IASIS owns and operates 15 acute care hospitals and one
behavioral health hospital throughout the U.S., including in Arizona, Arkansas, Colorado,
Louisiana, Texas and Utah. In total, IASIS has more than 3,600 licensed beds and employs more
than 13.000 employees.
The high-tech Medical Center in Port Arthur was the first new hospital construction project for
IASIS. Focused on creating Centers of Excellence in cardiology, emergency services,
orthopedics, and women's services, the hospital is equipped with state-of-the-art medical
technology such as digital operating suites and advanced diagnostic imaging systems. The
Medical Center provides a full range of hospital services to Port Arthur and the surrounding
communities. The Medical Center has been recognized as a Solucient Top 100 Heart Hospital
and has earned the Gold Seal of Approval from the Joint Commission on the Accreditation of
Healthcare Organizations for the treatment of acute coronary syndrome.
Over the next five years,the Medical Center anticipates making over $7 million in capital
investment at the Port Arthur facility. The majority of the capital expenditures will be used to
renovate examining rooms and to purchase machinery and equipment in an effort to provide
SOLUCIENT
TOP HOSPITALS
TOW Gu/...+rcr4r
Mr. Ron Burton
City of Port Arthur
10 February 2015
Page 2
continuous superior healthcare services. Approximately, $1.1 million in catheterization
laboratory renovations and over$500,000 in new ultrasound systems are planned. The remaining
$5.5 million in investment is planned on various equipment upgrades and building improvements
which include a LAN upgrade, ENDO equipment and tower, Radiology x-ray equipment, MRI
Anesthesia monitors and a water storage tank.
Section 2303.406(a)(4)(D) of the Texas Government Code allows a project or activity of a
qualified business to be designated an Enterprise Project and receive job retention benefits if the
business has clearly demonstrated that "the business is able to employ individuals in accordance
with Section 2303.402." The Medical Center qualifies for job retention benefits under this
statutory provision because the Port Arthur facility is located at 2555 Jimmy Johnson Blvd., Port
Arthur, Texas 77640 in Census Tract 69, Block Group 1, in Jefferson County with an 8.26%
poverty level, as defined by the U.S. Census for 2010. Additionally,the City of Port Arthur itself
has a poverty rate of 30.1%. The Medical Center commits to hiring 35% economically
disadvantaged persons or enterprise zone residents for its new or replacement personnel, for
certified jobs over the next five years.
The Medical Center employed 433 full time employees and 259 Part-Time employees on the 90
business day look-back date of October 14, 2014 at its Port Arthur facility. The Medical Center
expects to retain its existing level of employment, and it will be seeking benefit for its full time
positions under the Enterprise Zone Program. These full time jobs meet the definition of
"retained job" in Texas Government Code Section 2303.401(2) because they currently exist,
provide and will continue to provide at least 1,820 hours of employment annually, and will be
employment positions for the longer of the duration of the project's designation period or three
years after the expiration date of the claim period for receipt of state benefit. Given this
proposed investment, no layoffs or reductions in employment are contemplated at this time.
We look forward to working with the City of Port Arthur in the coming years and participating in
the Texas Enterprise Zone Program.
Sincerely,
William Stokes
Vice President of Finance & Tax
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 1 of 15
SUBCHAPTER F. QUALIFIED BUSINESSES AND ENTERPRISE PROJECTS
Sec. 2303 . 401 . DEFINITIONS. In this subchapter:
(1) "New permanent job" means a new employment position
that:
(A) is created by a qualified business as described by
Section 2303 . 402 at the qualified business site not earlier than the
90th day before the date the business ' s project or activity is
designated as an enterprise project under this chapter;
(B) will provide or has provided for the duration of
the project ' s designation period at least 1, 820 hours of employment a
year to a qualified employee; and
(C) will exist or has existed at the cualified business
site for the longer of:
(i) the duration of the project ' s designation
period; or
(ii) three years after the date on which a state
benefit is received as authorized by this chapter.
(2) "Retained job" means a job that:
(A) existed with a qualified business on the 91st day
before the date the business ' s project or activity is designated as
an enterprise project;
(B) has provided and will continue tc provide
employment to a qualified employee of at least 1, 820 hours annually;
and
(C) will be or has been an employment position for the
longer of:
(i) the duration of the project ' s designation
period; or
(ii) three years after the expiration date of the
claim period for receipt of a state benefit authorized by this
chapter.
Added by Acts 1993, 73rd Leg. , ch. 268, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 1995, 74th Leg. , ch. 76, Sec. 5. 52 (a) , eff. Sept . 1,
1995; Acts 1995, 74th Leg. , ch. 985, Sec. 6, eff. Sept. 1, 1995;
Acts 1999, 76th Leg. , ch. 1121, Sec. 3, eff. Sept. 1, 1999; Acts
2003, 78th Leg. , ch. 814, Sec. 3 . 09, eff. Sept. 1, 2003 .
Amended by:
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 2 of 15
Acts 2007, 80th Leg. , R. S. , Ch. 1114 (H.B. 36941 , Sec. 4, eff.
June 15, 2007 .
Sec. 2303 . 402 . QUALIFIED BUSINESS. (a) A person is a
qualified business if the bank, for the purpose of state benefits
under this chapter, or the nominating body of a project or activity
of the person under this chapter, for the purpose of local
incentives, certifies that:
(1) the person is engaged in or has provided substantial
commitment to initiate the active conduct of a trade or business in
an enterprise zone, and at least 25 percent of the person' s new
employees in the enterprise zone are:
(A) residents of any enterprise zone in this state; or
(B) economically disadvantaged indivicuals; or
(2) the person is engaged in or has provided substantial
commitment to initiate the active conduct of a trade or business in
an area of this state that does not qualify as an enterprise zone,
and at least 35 percent of the person ' s new employees at the
qualified business site are :
(A) residents of any enterprise zone in this state; or
(B) individuals who are economically cisadvantaged.
(b) Repealed by Acts 2003, 78th Leg. , ch. 814, Sec. 6. 01 ( 6) .
(c) For the purposes of this section, an economically
disadvantaged individual is an individual who:
(1) was unemployed for at least three months before
obtaining employment with the qualified business;
(2 ) receives public assistance benefits, including welfare
payments or food stamps, based on need and intended to alleviate
poverty;
(3) is a low-income individual, as defined by Section 101,
Workforce Investment Act of 1998 (29 U. S .C. Section 2801 (25) ) ;
(4 ) is an individual with a disability, as defined by 29
U. S.C. Section 705 (20) (A) ;
(5) is an inmate, as defined by Section 498 . 001;
(6) is entering the workplace after being confined in a
facility operated by or under contract with the Texas Department of
Criminal Justice for the imprisonment of individuals convicted of
felonies other than state jail felonies;
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 3 of 15
(7) has been released by the Texas Youth Commission and is
on parole, if state law provides for such a person to be on parole;
(8) meets the current low income or moderate income limits
developed under Section 8, United States Housing Act of 1937 (42
U. S .C. Section 1437f et seq. ) ; or
(9) was under the permanent managing conservatorship of the
Department of Family and Protective Services on the day preceding the
individual ' s 18th birthday.
Added by Acts 1993, 73rd Leg. , ch. 268, Sec. 1, eff. Sept. 1, 1993 .
Renumbered from Government Code Sec. 2303 . 401 and amended by Acts
1995, 74th Leg. , ch. 76, Sec. 5 . 52 (a) and Acts 1995, 74th Leg. , ch.
985, Sec. 6, eff. Sept. 1, 1995; Acts 2003, 78th Leg. , ch. 814, Sec.
3 . 10, 6. 01 ( 6) , eff. Sept. 1, 2003 .
Amended by:
Acts 2007, 80th Leg. , R. S . , Ch. 1114 (H.B. 3694) , Sec. 5, eff.
June 15, 2007 .
Acts 2009, 81st Leg. , R. S . , Ch. 87 (S.B. 1969) , Sec. 25 . 089,
eff. September 1, 2009 .
Acts 2009, 81st Leg. , R. S . , Ch. 1116 (H.B. 1043) , Sec. 2, eff.
September 1, 2009 .
Sec. 2303 . 403 . PROHIBITION ON QUALIFIED BUSINESS CERTIFICATION;
LIMIT ON ENTERPRISE PROJECT DESIGNATIONS . If the bank determines
that the governing body eligible to nominate an enterprise project is
not complying with this chapter, the bank shall prohibit the
certification of a qualified business until the bank determines that
the governing body is complying with this chapter. The bank may not
designate more than 105 enterprise projects during any biennium. Any
designations remaining at the end of a biennium may be carried
forward to the next biennium.
Added by Acts 1993, 73rd Leg. , ch. 268, Sec. 1, eff. Sept . 1, 1993 .
Renumbered from Government Code Sec. 2303 . 402 by Acts 1995, 74th
Leg. , ch. 76, Sec. 5 . 52 (a) , eff. Sept . 1, 1995, and Acts 1995, 74th
Leg. , ch. 985, Sec. 6, eff. Sept. 1, 1995 . Amended by Acts 2001,
77th Leg. , ch. 813, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th
Leg. , ch. 814, Sec. 3 . 11, eff. Sept . 1, 2003 .
Amended by:
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 4 of 15
Acts 2007, 80th Leg. , R. S . , Ch. 1114 (H.B. 3694 ) , Sec. 6, eff.
June 15, 2007 .
Sec. 2303 . 404 . REQUEST FOR APPLICATION FOR ENTERPRISE PROJECT
DESIGNATION. (a) A qualified business may request that the
governing body of a municipality or county in which the qualified
business is located apply to the bank for designation of a project or
activity of the business as an enterprise project .
(b) The enterprise project designation must be for:
(1) an expansion or relocation from out-of-state, an
expansion, renovation, or new construction, or other property to be
undertaken by a qualified business; and
(2 ) a predetermined designation period approved by the
bank, with beginning and ending dates for each proposed project or
activity.
(c) The designation period for an enterprise project may not be
for less than one year or more than five years from the date on which
the designation is made.
(d) If an enterprise project designation is for a franchise or
subsidiary, separate books and records must be maintained for the
business activity conducted at the qualified business site.
Added by Acts 1995, 74th Leg. , ch. 76, Sec. 5 . 52 (a) , eff. Sept . 1,
1995, and Acts 1995, 74th Leg. , ch. 985, Sec. 6, eff. Sept. 1, 1995 .
Amended by Acts 2003, 78th Leg. , ch. 814, Sec. 3 . 11, eff. Sept . 1,
2003 .
Amended by:
Acts 2007, 80th Leg. , R. S. , Ch. 1114 (H.B. 3694 ) , Sec. 7, eff.
June 15, 2007 .
Sec. 2303 . 405 . APPLICATION FOR ENTERPRISE PROJECT DESIGNATION.
(a) If the governing body approves a request made under Section
2303 . 404, the governing body may apply to the bank for the
designation of the project or activity of a qualified business as an
enterprise project only after it submits to the bank the order or
ordinance and other information that complies with the requirements
of Sections 2303 . 4051 and 2303 . 4052 .
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 5 of 15
(b) An application must contain an economic analysis of the
plans of the qualified business for expansion, revitalization, or
other activity with regard to the enterprise project, including:
(1) the number of employment positions in existence at the
qualified business site on the 91st day before the application
deadline;
(1-a) the number of new permanent jobs the enterprise
project commits to create during the designation period presented in
the form of a tabular listing of:
(A) the classification titles of those jobs; and
(B) the number of jobs and salary rance for each
classification title;
(2) the number of permanent jobs the enterprise project
commits to retain during the designation period presented in the form
of a tabular listing of:
(A) the classification titles of the retained jobs; and
(B) the number of retained jobs and salary range for
each classification title;
(3) the amount of investment to be made by the enterprise
project;
(4 ) a complete description of the projected schedule for
completion of the specific activity described by Section 2303 . 404 (b)
to be undertaken by the enterprise project;
(5) other information the bank requires;
(6) a description of the local effort made by the
nominating body, the qualified business, and other affected entities
to develop and revitalize the jurisdiction of the governmental entity
nominating the project or activity; and
(7) if the nominating body is applying for a double or
triple jumbo enterprise project, as defined by Section 2303 . 407, an
indication of which level of designation is being sought.
(c) For the purposes of this section, local effort to develop
and revitalize a municipality or county is:
(1) the willingness of public entities in the municipality
or county to provide services, incentives, and regulatory relief
authorized by this chapter and to negotiate with the qualified
business for which application is made and with other local groups or
businesses to achieve the public purposes of this chapter; and
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 6 of 15
(2) the effort of the qualified business and other affected
entities to cooperate in achieving those public purposes .
(d) Factors to be considered in evaluating the local effort of
a public entity include:
(1) tax abatement, deferral, refunds, or other tax
incentives;
(2 ) regulatory relief, including:
(A) zoning changes or variances;
(B) exemptions from unnecessary building code
requirements, impact fees, or inspection fees; and
(C) streamlined permitting;
(3) enhanced municipal services, including:
(A) improved police and fire protecticn;
(B) institution of community crime prevention programs;
and
(C) special public transportation routes or reduced
fares;
(4 ) improvements in community facilities, including:
(A) capital improvements in water and sewer facilities;
(B) road repair; and
(C) creation or improvement of parks;
(5) improvements to housing, including:
(A) low-interest loans for housing rehabilitation,
improvement, or new construction; and
(B) transfer of abandoned housing to individuals or
community groups;
(6) business and industrial development services,
including:
(A) low-interest loans for business;
(B) use of surplus school buildings or other
underutilized publicly owned facilities as small business incubators;
(C) provision of publicly owned land for development
purposes, including residential, commercial, or industrial
development;
(D) creation of special one-stop permitting and problem
resolution centers or ombudsmen; and
(E) promotion and marketing services; and
(7) job training and employment services, including:
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 7 of 15
(A) retraining programs;
(B) literacy and employment skills programs;
(C) vocational education; and
(D) customized job training.
(e) Factors to be considered in evaluating the local effort of
a private entity include:
(1) the willingness to negotiate or cooperate in the
achievement of the purposes of this chapter;
(2) commitments to hire underskilled, inexperienced,
disadvantaged, or displaced workers who reside in the enterprise
zone;
(3) commitments to hire minority workers and to contract
with minority-owned businesses;
(4 ) provision of technical and vocational job training for
enterprise zone residents or economically disadvantaged employees;
(5) provision of child care for employees;
(6) commitments to implement and contribute to a tutoring
or mentoring program for area students;
(7) prevention or reduction of juvenile crime activity;
and
(8) the willingness to make contributions to the well-being
of the community, such as job training, or the donation of land for
parks or other public purposes .
(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 .
Added by Acts 1995, 74th Leg. , ch. 76, Sec. 5 . 52 (a) , eff. Sept . 1,
1995, and Acts 1995, 74th Leg. , ch. 985, Sec. 6, eff. Sept. 1, 1995 .
Amended by Acts 2003, 78th Leg. , ch. 814, Sec. 3 . 12, eff. Sept. 1,
2003 .
Amended by:
Acts 2005, 79th Leg. , Ch. 1243 (H.B. 1659) , Sec. 5, eff.
September 1, 2005 .
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 8 of 15
Acts 2007, 80th Leg. , R. S . , Ch. 1114 (H.B. 3694 ) , Sec. 8, eff.
June 15, 2007 .
Sec. 2303 . 4051 . ORDINANCE OR ORDER FOR IDENTIFICATION OF LOCAL
INCENTIVES. (a) In this section, "local incentive" means each tax
incentive, grant, other financial incentive or benefit, or program to
be provided by the governing body to qualified businesses
participating in the enterprise zone program and any other local
incentive listed in Section 2303 . 511 .
(b) Before nominating the project or activity of a qualified
business for designation as an enterprise project, the governing body
of the municipality or county in which the business is located, by
ordinance or order, as appropriate, must identify and summarize
briefly any local incentives available.
(c) The ordinance or order must:
(1) state whether the project or activity to be nominated
as an enterprise project is located in an area designated as an
enterprise zone under this chapter;
(2) summarize briefly the local incentives, including tax
incentives, that, at the election of the governing body, are or will
be made available to the nominated project or activity of the
qualified business; and
(3) nominate a project or activity as an enterprise
project .
(d) Repealed by Acts 2007, 80th Leg. , R. S . , Ch. 1114, Sec. 21
(1) , eff. June 15, 2007 .
(e) An ordinance or order adopted under this section is not
valid unless the nominating body holds a public hearing before
adopting the ordinance or order. Notice of the hearing must be
published in a newspaper having general circulation in the
municipality not later than the seventh calendar day before the date
of the hearing. The notice must contain:
(1 ) the date, time, and location of the hearing;
(2 ) the provisions for any tax or other incentives
applicable to the enterprise zone program;
(3) the name of the qualified business whose project or
activity is being nominated for enterprise project designation; and
(4 ) the location of the qualified business site.
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 9 of 15
(f) If the nominating body has previously nominated a project
or activity for designation as an enterprise project, the nominating
body, instead of issuing a new ordinance or order under this section
for a nominated project or activity, may by resolution make a
reference to a previously issued ordinance or order that met the
requirements of this section if:
(1) the resolution nominates the project or activity for
designation as an enterprise project and states :
(A) whether the nominated project or activity is
located in an area designated as an enterprise zone;
(B) the level of enterprise project designation being
sought; and
(C) the ending date of the project ' s designation
period;
(2) the local incentives described in the previously issued
ordinance or order are the same on the date the resolution is issued;
and
(3) the local incentives to be made available to the
nominated project or activity are the same as those made available to
the project or activity that are the subject of the previously issued
ordinance or order.
(g) This section does not prohibit a municipality or county
from extending additional incentives, including tax incentives, for
qualified businesses in an enterprise zone by a separate order or
ordinance.
Added by Acts 2003, 78th Leg. , ch. 814, Sec. 3 . 13, eff. Sept . 1,
2003 .
Amended by:
Acts 2007, 80th Leg. , R. S . , Ch. 1114 (H.B. 3694 ) , Sec. 9, eff.
June 15, 2007 .
Acts 2007, 80th Leg. , R. S . , Ch. 1114 (H.B. 3694) , Sec. 21 (1) ,
eff. June 15, 2007 .
Sec. 2303 . 4052 . REQUIRED INFORMATION FROM NOMINATING BODY.
Before nominating the project or activity of a qualified business for
designation as an enterprise project, the nominating body must submit
to the bank:
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 10 of 15
(1) a certified copy of the ordinance or order, as
appropriate, or reference to an ordinance or order as required by
Section 2303 . 4051;
(2 ) a transcript of all public hearings conducted with
respect to local incentives available to qualified businesses within
the jurisdiction of the governmental entity nominating the project or
activity, regardless of whether those businesses are located in an
enterprise zone;
(3) the name, title, address, telephone number, and
electronic mail address of the nominating body' s liaison designated
under Section 2303 . 204;
(4 ) if the business is seeking job retention benefits,
documentation showing the number of employment positions at the
qualified business site; and
(5) any additional information the bank may require.
Added by Acts 2003, 78th Leg. , ch. 814, Sec. 3 . 13, eff. Sept. 1,
2003 .
Amended by:
Acts 2007, 80th Leg. , R. S . , Ch. 1114 (H.B. 3694) , Sec. 10, eff.
June 15, 2007 .
Sec. 2303 . 406. ENTERPRISE PROJECT DESIGNATION. (a) The bank
may designate a project or activity of a business as an enterprise
project only if the bank receives all of the information required by
Section 2303 . 4052 and determines that:
(1) the business is a qualified business under Section
2303 . 402 that is located in or has made a substantial commitment to
locate in an enterprise zone or at a qualified business site;
(2) the nominating body making the application has
demonstrated that a high level of cooperation exists among public,
private, and neighborhood entities within the jurisdiction of the
governmental entity nominating the project or activity;
(3) the designation will contribute significantly to the
achievement of the plans of the nominating body making the
application for development and revitalization of the area in which
the enterprise project will be located; and
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 11 of 15
(4 ) if the business is seeking job retention benefits, the
business has clearly demonstrated that:
(A) the permanent employees of the business will be
permanently laid off;
(B) the business will close down permanently;
(C) the business will relocate out-of-state;
(D) the business is able to employ individuals in
accordance with Section 2303 . 402; or
(E) the business facility has been legitimately
destroyed or substantially impaired because of fire, flood, tornado,
hurricane, or any other natural disaster and that at least 60 percent
of the capital investment is being spent to repair damages resulting
from the disaster.
(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;
(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
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 12 of 15
(C) the type and wage level of the jobs to be created
or retained by the business .
(c) The bank may remove an enterprise project designation if it
determines that the business is not complying with a requirement for
its designation.
(d) The maximum number of enterprise projects that the bank may
designate for each nominating body during any biennium is :
(1 ) six, if the nominating body is the governing body of a
municipality or county with a population of less than 250, 000; or
(2) nine, if the nominating body is the governing body of a
municipality or county with a population of 250, 000 or more.
(e) The office may, during any biennium, designate multiple
concurrent enterprise projects to a qualified business located at a
qualified business site.
(f) An approved designation as a double jumbo enterprise
project, as defined by Section 2303 . 407, counts as two project
designations against both the nominating body for purposes of
Subsection (d) and the number of enterprise project designations
allowed statewide per biennium under Section 2303 . 403. An approved
designation as a triple jumbo enterprise project, as defined by
Section 2303 . 407, counts as three project designations against both
the nominating body for purposes of Subsection (d) and the number of
enterprise project designations allowed statewide per biennium under
Section 2303 . 403.
(g) The bank may lower the designation level of a proposed
project or activity nominated for enterprise project designation:
(1) if there are fewer designations available than
applications received; or
(2) to further the economic interests of the state.
(h) A state benefit may not be obtained under this chapter or
Chapter 151, Tax Code, for jobs moved from one jurisdiction in this
state to another jurisdiction in this state.
Added by Acts 1995, 74th Leg. , ch. 76, Sec. 5 . 52 (a) , eff. Sept. 1,
1995, and Acts 1995, 74th Leg. , ch. 985, Sec. 6, eff. Sept . 1, 1995 .
Amended by Acts 1999, 76th Leg. , ch. 1121, Sec. 4 , eff. Sept . 1,
1999; Acts 2001, 77th Leg. , ch. 813, Sec. 2, eff. Sept. 1, 2001;
Acts 2003, 78th Leg. , ch. 209, Sec. 92, eff. Oct. 1, 2003; Acts
2003, 78th Leg. , ch. 814, Sec. 3 . 14, eff. Sept. 1, 2003 .
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 13 of 15
Amended by:
Acts 2005, 79th Leg. , Ch. 1243 (H.B. 1659) , Sec. 6, eff.
September 1, 2005 .
Acts 2007, 80th Leg. , R. S. , Ch. 1114 (H.B. 3694 ) , Sec. 11, eff.
June 15, 2007 .
Acts 2007, 80th Leg. , R. S . , Ch. 1114 (H.B. 3694 ) , Sec. 12, eff.
June 15, 2007 .
Acts 2007, 80th Leg. , R. S. , Ch. 1114 (H.B. 3694 ) , Sec. 21 (2) ,
eff. June 15, 2007 .
Acts 2009, 81st Leg. , R. S. , Ch. 256 (H.B. 271) , Sec. 1, eff.
September 1, 2009 .
Acts 2009, 81st Leg. , R. S . , Ch. 256 (H.B. 271 ) , Sec. 2, eff.
September 1, 2009 .
Sec. 2303 . 407 . ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND. (a)
The bank shall allocate to an enterprise project the maximum number
of new permanent jobs or retained jobs eligible based on the amount
of capital investment made in the project, the project ' s designation
level, and the refund per job with a maximum refund to be included in
a computation of a tax refund for the project .
(b) A capital investment in a project of:
(1) $40, 000 to $399, 999 will result in a refund of up to
$2, 500 per job with a maximum refund of $25, 000 for the creation or
retention of 10 jobs;
(2) $400, 000 to $999, 999 will result in a refund of up to
$2, 500 per job with a maximum refund of $62, 500 for the creation or
retention of 25 jobs;
(3) $1, 000, 000 to $4, 999, 999 will result in a refund of up
to $2, 500 per job with a maximum refund of $312, 500 for the creation
or retention of 125 jobs;
(4 ) $5, 000, 000 to $149, 999, 999 will result in a refund of
up to $2, 500 per job with a maximum refund of $1, 250, 000 for the
creation or retention of 500 jobs;
(5) $150, 000, 000 to $249, 999, 999 will result in a refund of
up to $5, 000 per job with a maximum refund of $2, 500, 000 for the
creation or retention of 500 jobs if the bank designates the project
as a double jumbo enterprise project; or
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
I _
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 14 of 15
(6) $250, 000, 000 or more will result in a refund of up to
$7, 500 per job with a maximum refund of $3, 750, 000 for the creation
or retention of at least 500 jobs if the bank designates the project
as a triple jumbo enterprise project.
(c) An enterprise project for which a commitment for a capital
investment in the range amount and the creation or retention of the
number of jobs specified by Subsection (b) (5) is made is considered a
double jumbo enterprise project if the project is so designated by
the bank.
(d) An enterprise project for which a commitment for a capital
investment in the range amount and the creation or retention of the
number of jobs specified by Subsection (b) (6) is made is considered a
triple jumbo enterprise project if the project is so designated by
the bank.
Added by Acts 1995, 74th Leg. , ch. 76, Sec. 5 . 52 (a) , eff. Sept . 1,
1995, and Acts 1995, 74th Leg. , ch. 985, Sec. 6, eff. Sept. 1, 1995 .
Amended by Acts 2001, 77th Leg. , ch. 1134, Sec. 1 . 01, eff. Sept . 1,
2001; Acts 2001, 77th Leg. , ch. 1134, Sec. 2 . 01, eff. Sept . 1, 2005;
Acts 2003, 78th Leg. , ch. 814, Sec. 3 . 16, eff. Sept . 1, 2003 .
Amended by:
Acts 2007, 80th Leg. , R. S . , Ch. 1114 (H.B. 3694) , Sec. 13, eff.
June 15, 2007 .
Sec. 2303 . 4071 . MAXIMUM TAX REFUND. (a) In this section,
"double jumbo enterprise project" and "triple jumbo enterprise
project" have the meanings assigned by Section 2303 . 407 .
(b) An enterprise project is eligible for a maximum refund of
$250, 000 in each state fiscal year.
(c) A double jumbo enterprise project is eligible for a maximum
refund of $500, 000 in each state fiscal year.
(d) A triple jumbo enterprise project is eligible for a maximum
refund of $750, 000 in each state fiscal year.
Added by Acts 2003, 78th Leg. , ch. 814, Sec. 3 . 17, eff. Sept. 1,
2003 .
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015
GOVERNMENT CODE CHAPTER 2303. ENTERPRISE ZONES Page 15 of 15
Sec. 2303 . 4072 . ENTERPRISE PROJECT CLAIM FOR STATE BENEFIT. A
person must make a claim to the comptroller for a state benefit as
prescribed under this chapter and Chapter 151, Tax Code, not later
than 18 months after the date on which the term of the enterprise
project designation expires as provided by Section 2303 . 404 .
Added by Acts 2003, 78th Leg. , ch. 814, Sec. 3 . 17, eff. Sept. 1,
2003 .
Amended by:
Acts 2007, 80th Leg. , R. S. , Ch. 1114 (H.B. 3694 ) , Sec. 14, eff.
June 15, 2007 .
Sec. 2303 . 408 . DURATION OF CERTAIN DESIGNATIONS. The bank' s
designation of the project or activity of a qualified business as an
enterprise project is effective until the period approved by the bank
under Section 2303 . 404 regardless of whether the enterprise zone in
which the project is located, if any, fails to qualify as an
enterprise zone before the expiration of the project.
Added by Acts 1995, 74th Leg. , ch. 76, Sec. 5 . 52 (a) , eff. Sept . 1,
1995, and Acts 1995, 74th Leg. , ch. 985, Sec. 6, eff. Sept . 1, 1995 .
Amended by Acts 2003, 78th Leg. , ch. 814, Sec. 3 . 18, eff. Sept. 1,
2003 .
http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2303.htm 2/10/2015