By:  Gallegos                                          S.B. No. 712
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the eligibility of an area with a history of and
    1-2  continuing problem with gang activity to be included in an
    1-3  enterprise zone.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subsection (a), Section 2303.101, Government
    1-6  Code, is amended to read as follows:
    1-7        (a)  To be designated as an enterprise zone an area must:
    1-8              (1)  have a continuous boundary;
    1-9              (2)  be at least one square mile but not larger than
   1-10  the greater of:
   1-11                    (A)  10 square miles, excluding lakes, waterways,
   1-12  and transportation arteries; or
   1-13                    (B)  an area, not to exceed 20 square miles, that
   1-14  is equal to five percent of the area, excluding lakes, waterways,
   1-15  and transportation arteries, of the municipality, county, or
   1-16  combination of municipalities or counties nominating the area as an
   1-17  enterprise zone;
   1-18              (3)  be an area:
   1-19                    (A)  of pervasive poverty, unemployment, and
   1-20  economic distress; or
   1-21                    (B)  with a history of and continuing problem
   1-22  with gang activity; and
   1-23              (4)  be nominated as an enterprise zone by an ordinance
    2-1  or order adopted by the nominating body.
    2-2        SECTION 2.  Section 2303.102, Government Code, is amended to
    2-3  read as follows:
    2-4        Sec. 2303.102.  Area of Pervasive Poverty, Unemployment, and
    2-5  Economic Distress; AREA WITH GANG ACTIVITY.  (a)  An area is an
    2-6  area of pervasive poverty, unemployment, and economic distress for
    2-7  the purposes of Section 2303.101 if:
    2-8              (1)  the average rate of unemployment in the area
    2-9  during the most recent 12-month period for which data are available
   2-10  was at least one and one-half times the local, state, or national
   2-11  average for that period; or
   2-12              (2)  the area had a population loss of at least nine
   2-13  percent during the most recent six-year period or at least three
   2-14  percent during the most recent three-year period; and
   2-15                    (A)  the area is a low-income poverty area;
   2-16                    (B)  the area is in a jurisdiction or pocket of
   2-17  poverty eligible for urban development action grants under federal
   2-18  law, according to the most recent certification available from the
   2-19  United States Department of Housing and Urban Development;
   2-20                    (C)  at least 70 percent of the residents or
   2-21  households of the area have an income that is less than 80 percent
   2-22  of the median income of the residents or households of the locality
   2-23  or state, whichever is less; or
   2-24                    (D)  the nominating body establishes to the
   2-25  satisfaction of the department that:
    3-1                          (i)  chronic abandonment or demolition of
    3-2  commercial or residential structures exists in the area;
    3-3                          (ii)  substantial tax arrearages for
    3-4  commercial or residential structures exist in the area;
    3-5                          (iii)  substantial losses of businesses or
    3-6  jobs have occurred in the area; or
    3-7                          (iv)  the area is part of a disaster area
    3-8  declared by the state or federal government during the preceding 18
    3-9  months.
   3-10        (b)  For the purposes of Section 2303.101, an area has a
   3-11  history of and continuing problem with gang activity if the
   3-12  attorney general certifies to the department that the area has
   3-13  suffered and continues to suffer from substantial economic hardship
   3-14  caused by significant and repeated criminal activity committed by
   3-15  gang members.
   3-16        SECTION 3.  Subsection (c), Section 2303.110, Government
   3-17  Code, is amended to read as follows:
   3-18        (c)  The entire enterprise zone with the amended boundary
   3-19  must continue to meet the unemployment and economic distress or
   3-20  gang activity requirements of Section 2303.101.
   3-21        SECTION 4.  The importance of this legislation and the
   3-22  crowded condition of the calendars in both houses create an
   3-23  emergency and an imperative public necessity that the
   3-24  constitutional rule requiring bills to be read on three several
   3-25  days in each house be suspended, and this rule is hereby suspended,
    4-1  and that this Act take effect and be in force from and after its
    4-2  passage, and it is so enacted.