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


Office of House Bill AnalysisC.S.H.B. 313
By: Giddings
Urban Affairs
3/21/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, there is no law authorizing a municipality to establish
neighborhood empowerment zones. The establishment of such zones may be a
useful means of revitalizing distressed neighborhoods. C.S.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. C.S.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; an
increase in economic development; increase 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, Tax Code (Criteria for
Reinvestment Zone), 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, Tax Code (Municipal Tax Abatement
Agreement); 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original bill in SECTION 1, as follows:

Sec. 378.002. Adds language authorizing a municipality to create a
neighborhood empowerment zone within the municipality if it finds its
creation would promote the rehabilitation of affordable housing in the
zone.   

Sec. 378.004.   New title: "MUNICIPAL POWERS."  Redesignates text in
Section 378.005 of the original to Section 378.004 of the substitute.  Adds
language authorizing a municipality to set base line performance standards
such as the Department of Energy's Energy Star Program to encourage using
alternative building materials to address concerns about the environment,
building costs, maintenance, or energy consumption. Deletes "additional"
from the title of the original bill.  Makes nonsubstantive changes.