BILL ANALYSIS

 

 

Senate Research Center

H.B. 4577

87R7249 JXC-D

By: Deshotel (Creighton)

 

Local Government

 

5/11/2021

 

Engrossed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Chambers County Improvement District No. 1 (district)

 

 

 

 

 

 

 

 

Failure to remove the petition requirement and the debt limit will render the district unable to finance further infrastructure to support additional economic development and employment, which is the purpose for which the district was created. 

 

H.B. 4577 amends current law relating to the authority of the Chambers County Improvement District No. 1 to issue bonds and impose certain taxes or assessments.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 3854.152, Special District Local Laws Code, as follows:

 

Sec. 3854.152. ELECTIONS. Requires the Chambers County Municipal Improvement District No. 1 (district), except as provided by Section 3854.202 (Tax and Bond Elections), to hold elections as provided by Subchapter L (Elections), Chapter 375 (Municipal Management Districts in General), Local Government Code. Makes a nonsubstantive change.

 

SECTION 2. Amends Section 3854.202, Special District Local Laws Code, by amending Subsection (a) and adding Subsection (c), as follows:

 

(a) Requires the district, except as provided by Subsection (c), to hold an election in the manner provided by Subchapter L, Chapter 375, Local Government Code, to obtain voter approval for the district to impose a maintenance tax or issue bonds payable from ad valorem taxes or assessments.

 

(c) Provides that Section 375.243 (Petition Required for Bond Election), Local Government Code, does not apply to the district.

 

SECTION 3. Amends Section 3854.205(b), Special District Local Laws Code, to provide that a petition under Section 375.114 (Petition Required) or 375.243, Local Government Code, is not required for the board of directors of the district to levy a tax, assessment, or impact fee to finance improvement projects and services under Chapter 3854 (Chambers County Improvement District No. 1).

 

SECTION 4. Repealer: Section 3854.209(b) (relating to prohibiting the district, with certain exceptions, from issuing bonds of a certain amount payable from an ad valorem tax imposed over the entire district), Special District Local Laws Code.

 

Repealer: Section 3854.209(c) (relating to providing that if TCEQ approves the feasibility of certain district bonds, the limit on the amount of bonds to be issued is the amount set by TCEQ), Special District Local Laws Code.

 

Repealer: Section 3854.209(d) (relating to providing that Subsection (b) does not limit the district's authority to issue bonds that are not payable from ad valorem taxes imposed over the entire district), Special District Local Laws Code.

 

SECTION 5. Provides that all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished.

 

SECTION 6. Effective date: upon passage or September 1, 2021.