HBA-TYH, ALS, MAJ H.B. 313 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 313
By: Giddings
Urban Affairs
7/21/1999
Enrolled


BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, there was no law authorizing a municipality
to establish neighborhood empowerment zones.  The establishment of such
zones could have been a useful means of revitalizing distressed
neighborhoods. H.B. 313 authorizes a municipality to create a neighborhood
empowerment zone (zone) if it finds that the zone would benefit the public
health, safety, and welfare of municipal residents.  H.B. 313 also
authorizes a municipality to: waive or adopt certain fees related to
construction in the zone; enter into agreements to benefit the zone; grant
sales tax refunds; grant municipal sales tax abatements; and enter into
agreements abating municipal property taxes on property located in the
zone, or abate municipal property taxes on property within the zone. 

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 Subtitle A, Title 12, Local Government Code, by adding
Chapter 378, as follows: 

CHAPTER 378.  NEIGHBORHOOD EMPOWERMENT ZONE

Sec. 378.001.  DEFINITION.  Defines "zone" as a neighborhood empowerment
zone created by a municipality under this chapter. 

Sec. 378.002.  CREATION OF ZONE.  Authorizes a municipality to create a
neighborhood empowerment zone (zone) covering a part of the municipality if
it determines the zone would promote the creation of affordable housing,
including manufactured housing; an increase in economic development; an
increase in the quality of social services; education, or public safety; or
the rehabilitation of affordable housing in the zone. 

Sec. 378.003.  ADOPTION OF ZONE.  Authorizes a municipality to create a
zone if the governing body of the municipality adopts a resolution
containing the determination described by Section 378.002, a description of
the boundaries of the zone, a finding by the governing body that the zone
would satisfy the requirements of Section 312.202 (Criteria for
Reinvestment Zone), Tax Code , and a finding that the zone would benefit
the public health, safety, and welfare of residents in the municipality.
Authorizes a municipality to create more than one zone and include an area
in more than one zone. 

Sec. 378.004. MUNICIPAL POWERS.  Authorizes a municipality to waive or
adopt certain fees related to construction of buildings in the zone; to
enter into agreements that will not exceed a period of 10 years for the
purpose of benefitting the zone, for sales tax refunds or abatements of
municipal sales tax on sales made in the zone; to enter into agreements
abating municipal property taxes on property in the zone, subject to the
duration limits of Section 312.204 (Municipal Tax Abatement Agreement), Tax
Code; set base line performance standards such as the Department of
Energy's Energy Star Program to encourage using alternative building
material to address environmental, building costs, maintenance, or energy
consumption concerns. 

SECTION 2.  Emergency clause.
  Effective date: upon passage.