BILL ANALYSIS

H.B. 4597

By: Thompson, Ed

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

After the creation of the East Lake Houston Management District, the need for increased financing options for district improvements and services became evident, including a need for the district to assess single-family residences for the beneficial improvements and services the district provides. There have been calls to address the district's need for the financing of improvements and services. H.B. 4597 seeks to address this issue by providing for the validation of certain acts and proceedings of the district and by authorizing the district to exercise certain powers, issue bonds, and impose fees, taxes, and assessments.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4597 amends the Special District Local Laws Code to grant the East Lake Houston Management District powers provided to a municipality or county under the Public Improvement District Assessment Act. The bill authorizes the district to issue, by public or private sale, bonds, notes, or other obligations payable wholly or partly from assessments in the applicable manner provided under that act if the improvements financed by such an obligation will be conveyed to, operated and maintained by, or otherwise financed pursuant to an agreement between the district and the county, a municipality, or a retail utility provider entered into before the issuance of the obligation.

H.B. 4597 exempts the district from a prohibition against the board of directors of the district imposing an impact fee, assessment, tax, or other requirement for payment, construction, alteration, or dedication on single-family detached residential property, duplexes, triplexes, and fourplexes. The bill provides for the validation and confirmation in all aspects of the following:

· the creation of the East Lake Houston Management District; and

· certain acts or proceedings of the district.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2021.