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.