85R25219 JG-F
 
  By: Bernal H.B. No. 3691
 
  Substitute the following for H.B. No. 3691:
 
  By:  Alvarado C.S.H.B. No. 3691
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the eligibility of certain municipalities to establish
  homestead preservation districts and reinvestment zones.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 373A.003, Local Government Code, is
  amended to read as follows:
         Sec. 373A.003.  APPLICABILITY OF CHAPTER. (a) Except as
  provided by Subsection (b), this [This] chapter applies to a
  municipality with a population of more than 750,000 and less than 2
  million [that is located in a uniform state service region with
  fewer than 550,000 occupied housing units as determined by the most
  recent United States decennial census].
         (b)  Subchapter E does not [Subchapters A, B, C, and D] apply
  to any municipality with a population of 1.18 million or more which
  is located predominantly in a county that has a total area of less
  than 1,000 square miles and has adopted an urban land bank
  demonstration program under Chapter 379C, Local Government Code.
         SECTION 2.  Sections 373A.052(a) and (b), Local Government
  Code, are amended to read as follows:
         (a)  To be designated as a district within a municipality
  described by Section 373A.003(a) under this subchapter, an area
  must be composed of census tracts forming a spatially compact area
  with:
               (1)  fewer than 75,000 residents;
               (2)  an overall poverty rate of at least 25 percent
  [that is at least two times the poverty rate for the entire
  municipality]; and
               (3)  in each census tract within the area, a median
  family income that is less than 80 percent of the median family
  income for the entire municipality.
         (b)  To be designated as a district within a municipality
  described by Section 373A.003(b) under this subchapter, an area
  must be composed of census tracts forming a spatially compact area
  contiguous to a central business district and with:
               (1)  fewer than 75,000 residents;
               (2)  a median family income that is less than $30,000
  according to the last decennial census; and
               (3)  an overall poverty rate of at least 25 percent
  [that is at least two times the poverty rate for the entire
  municipality].
         SECTION 3.  This Act takes effect September 1, 2017.