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.