Amend CSHB 1770 (Senate committee report) by adding the 
following SECTIONS to the bill, appropriately numbered, and 
renumbering the subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Subsection (a), Section 311.006, Tax Code, is 
amended to read as follows:
	(a)  A municipality may not create a reinvestment zone if:                     
		(1)  more than 10 percent of the property in the 
proposed zone, excluding property that is publicly owned, is used 
for residential purposes; or
		(2)  the total appraised value of taxable real property 
in the proposed zone and in existing reinvestment zones exceeds:
			(A)  20 percent of the total appraised value of 
taxable real property in the municipality and in the industrial 
districts created by the municipality, if the municipality is the 
county seat of a county:

				(i)  that is adjacent to a county with a 
population of 3.3 million or more; and
				(ii)  in which a planned community is 
located that has 20,000 or more acres of land, that was originally 
established under the Urban Growth and New Community Development 
Act of 1970 (42 U.S.C. Section 4501 et seq.), and that is subject to 
restrictive covenants containing ad valorem or annual variable 
budget-based assessments on real property; or
			(B)  15 percent of the total appraised value of 
taxable real property in the municipality and in the industrial 
districts created by the municipality, if Paragraph (A) does not 
apply to the municipality.
	SECTION ____.  Section 311.006(a), Tax Code, as amended by 
this Act, applies only to a reinvestment zone created on or after 
the effective date of this Act.  The creation of a reinvestment zone 
before the effective date of this Act is covered by the law in 
effect immediately before the effective date of this Act, and the 
former law is continued in effect for that purpose.