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.