76R10132 E                           
         By Giddings, et al.                                    H.B. No. 313
         Substitute the following for H.B. No. 313:
         By Carter                                          C.S.H.B. No. 313
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation and powers of a neighborhood empowerment
 1-3     zone.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle A, Title 12, Local Government Code, is
 1-6     amended by adding Chapter 378 to read as follows:
 1-7                 CHAPTER 378.  NEIGHBORHOOD EMPOWERMENT ZONE
 1-8           Sec. 378.001.  DEFINITION.  In this chapter, "zone" means a
 1-9     neighborhood empowerment zone created by a municipality under this
1-10     chapter.
1-11           Sec. 378.002.  CREATION OF ZONE.  A municipality may create a
1-12     neighborhood empowerment zone covering a part of the municipality
1-13     if the municipality determines the creation of the zone would
1-14     promote:
1-15                 (1)  the creation of affordable housing, including
1-16     manufactured housing, in the zone;
1-17                 (2)  an increase in economic development in the zone;
1-18                 (3)  an increase in the quality of social services,
1-19     education, or public safety provided to residents of the zone; or
1-20                 (4)  the rehabilitation of affordable housing in the
1-21     zone.
1-22           Sec. 378.003.  ADOPTION OF ZONE.  (a)  A municipality may
1-23     create a zone if the governing body of the municipality adopts a
1-24     resolution containing:
 2-1                 (1)  the determination described by Section 378.002;
 2-2                 (2)  a description of the boundaries of the zone;
 2-3                 (3)  a finding by the governing body that the creation
 2-4     of the zone benefits and is for the public purpose of increasing
 2-5     the public health, safety, and welfare of the persons in the
 2-6     municipality; and
 2-7                 (4)  a finding by the governing body that the creation
 2-8     of the zone satisfies the requirements of Section 312.202, Tax
 2-9     Code.
2-10           (b)  A municipality may create more than one zone and may
2-11     include an area in more than one zone.
2-12           Sec. 378.004.  MUNICIPAL POWERS.  In addition to other powers
2-13     that a municipality may exercise, a municipality may:
2-14                 (1)  waive or adopt fees related to the construction of
2-15     buildings in the zone, including fees related to the inspection of
2-16     buildings and impact fees;
2-17                 (2)  enter into agreements, for a period of not more
2-18     than 10 years, for the purpose of benefiting the zone, for sales
2-19     tax refunds or abatements of municipal sales tax on sales made in
2-20     the zone;
2-21                 (3)  enter into agreements abating municipal property
2-22     taxes on property in the zone subject to the duration limits of
2-23     Section 312.204, Tax Code; and
2-24                 (4)  set baseline performance standards, such as the
2-25     Energy Star Program as developed by the Department of Energy, to
2-26     encourage the use of alternative building materials that address
2-27     concerns relating to the environment or to the building costs,
 3-1     maintenance, or energy consumption.
 3-2           SECTION 2.  The importance of this legislation and the
 3-3     crowded condition of the calendars in both houses create an
 3-4     emergency and an imperative public necessity that the
 3-5     constitutional rule requiring bills to be read on three several
 3-6     days in each house be suspended, and this rule is hereby suspended,
 3-7     and that this Act take effect and be in force from and after its
 3-8     passage, and it is so enacted.