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


Office of House Bill AnalysisH.B. 313
By: Giddings
Urban Affairs
2/18/1999
Introduced



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. 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; to enter into
agreements to benefit the zone, grant sales tax refunds, or grant municipal
sales tax abatements; and enter into agreements abating municipal property
taxes on property located in 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, or increase the quality of social
services, education, or public safety. 

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.  EFFECT OF CREATION OF ZONE.  Authorizes a municipality that
creates a zone to, in the zone, take any action allowed under this
subtitle, use any power given the municipality or any other political
subdivision under this subtitle, and exercise any other power granted by
this chapter.   

Sec. 378.005.  ADDITIONAL 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, and 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). 


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