By Merritt H.B. No. 3506 75R7271 SMH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation and powers of a turnaround zone and to 1-3 municipalities' and counties' duties and powers with respect to 1-4 turnaround zones. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subtitle G, Title 10, Government Code, is amended 1-7 by adding Chapter 2310 to read as follows: 1-8 CHAPTER 2310. TURNAROUND ZONES 1-9 Sec. 2310.001. DEFINITION. In this chapter, "zone" means a 1-10 turnaround zone created under this chapter. 1-11 Sec. 2310.002. REINVESTMENT ZONE. A zone is a reinvestment 1-12 zone within the meaning of Section 1-g(a), Article VIII, Texas 1-13 Constitution. 1-14 Sec. 2310.003. CREATION OF ZONE. (a) On the filing with 1-15 the municipal or county clerk of a petition signed by at least 20 1-16 percent of the qualified voters of a municipality or county and 1-17 after a public hearing, the governing body of a municipality or 1-18 county by ordinance or order may create a turnaround zone covering 1-19 a part of the municipality or county if the governing body 1-20 determines that the territory in the zone is an area of pervasive 1-21 poverty, unemployment, and economic distress as defined by Section 1-22 2303.102. 1-23 (b) The ordinance or order must contain: 1-24 (1) the determination described by Subsection (a); 2-1 (2) a description of the boundaries of the zone; and 2-2 (3) a finding by the governing body of the 2-3 municipality or county that the creation of the zone benefits and 2-4 is for the public purpose of promoting the public health, safety, 2-5 and welfare of the residents of the zone. 2-6 Sec. 2310.004. BENEFITS OF ZONE. (a) The governing body of 2-7 the municipality or county may: 2-8 (1) grant tax abatements as provided by Section 2-9 2310.005, tax deferrals, tax refunds, or other tax incentives to 2-10 owners of property in a zone; and 2-11 (2) provide regulatory relief to owners of property in 2-12 a zone, including: 2-13 (A) zoning changes or variances; 2-14 (B) exemptions from building code requirements, 2-15 impact fees, and inspection fees; and 2-16 (C) streamlined permitting. 2-17 (b) A state agency may exempt from its regulation owners of 2-18 property in the zone if the exemption is consistent with: 2-19 (1) the purposes of this chapter; and 2-20 (2) the protection and promotion of the general health 2-21 and welfare. 2-22 Sec. 2310.005. AD VALOREM TAX ABATEMENT. (a) The governing 2-23 body of a municipality or county may enter into an agreement with 2-24 an owner of taxable real property in a zone to exempt from taxation 2-25 a portion of the value of the property or of tangible personal 2-26 property located on the property, or both, for a period not to 2-27 exceed 20 years, on the condition that the owner of the property 3-1 make specific improvements or repairs to the property. An 3-2 agreement may provide that: 3-3 (1) for the first 10 years covered by the agreement, 3-4 the appraised value of the property for ad valorem tax purposes may 3-5 not exceed the appraised value in the year in which the agreement 3-6 was entered into; and 3-7 (2) for each year covered by the agreement following 3-8 the 10th year of the agreement, the appraised value of the property 3-9 for ad valorem tax purposes may not exceed 110 percent of the 3-10 appraised value of the property for the preceding year. 3-11 (b) The agreement may authorize the municipality or county 3-12 to modify or cancel the agreement if the owner fails to make the 3-13 required improvements or repairs. 3-14 Sec. 2310.006. AUTHORITY OF TEXAS DEPARTMENT OF COMMERCE. 3-15 (a) The Texas Department of Commerce shall administer and monitor 3-16 the implementation of this chapter. 3-17 (b) The department shall establish criteria for determining: 3-18 (1) the types of benefits that should be provided in a 3-19 zone; and 3-20 (2) the improvements or repairs on which receipt of 3-21 the benefits should be conditioned. 3-22 (c) The department shall adopt rules to implement and 3-23 administer this chapter. 3-24 SECTION 2. This Act takes effect September 1, 1997. 3-25 SECTION 3. The importance of this legislation and the 3-26 crowded condition of the calendars in both houses create an 3-27 emergency and an imperative public necessity that the 4-1 constitutional rule requiring bills to be read on three several 4-2 days in each house be suspended, and this rule is hereby suspended.