BILL ANALYSIS
C.S.H.B. 3223
By: Bailey
5-6-95
Committee Report (Substituted)
BACKGROUND
The Greater Greenspoint Management District (the "District") was
legislatively created in 1991 by Chapter 817, Sessions Laws, 72nd
Legislature (the "Creating Legislation") and granted all the rights
and powers of a municipal management district under Chapter 375 of
the Local Government Code. The top priority of the District to
date has been to increase security in the area, and to such end the
District established a public safety center in the area staffed by
Houston City Police and Harris County Sheriff's Deputies. The
crime rate in the District has dropped significantly with major
crimes down by 30 percent since 1991.
The District would like to undertake new projects and to take steps
to stimulate growth and economic revitalization but under its
creating legislation, it does not have the authority to build or
finance some of the projects it would like to undertake. One
example is the construction, either solely or jointly with another
governmental entity, of a meeting facility useful for both business
(convention) and educational purposes (convocation).
In addition, the District has noted several areas of authority and
procedure in the laws applicable to it that need to be clarified,
such as the procedure to correct its assessment rolls and the
prohibition of one taxing unit to foreclose on property owned by
another taxing unit for delinquent taxes incurred prior to the
acquisition of the property by a taxing unit.
PURPOSE
House Bill 3223 would grant to the District the authority it needs
to finance and build facilities needed in the area for economic
revitalization purposes and to authorize it to levy a maintenance
tax to operate and maintain them in the future; enable the District
to take steps on its own to encourage economic revitalization and
development, such as granting abatements of the District's
assessments or taxes; and clarify the statutes and case law
applicable to the District where the District has noted some
ambiguity. This bill is local in nature and would apply only to
the twelve square mile commercial district known as Greenspoint in
north Houston.
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.
SECTION BY SECTION ANALYSIS
SECTION 1. Declares that the District is necessary to promote
transportation, housing, tourism, convention and
convocation activities, recreation, arts, and
entertainment, in addition to safety.
SECTION 2. Establishes definitions for terms used in the bill.
SECTION 3. Finds that pedestrian ways, street lighting, street
landscaping, and street art objects are parts of and
necessary components of a street and shall be deemed a
street or road improvement.
SECTION 4. Grants the District the following powers: those of an
economic development corporation under Article 5190.6
of the Texas Civil Statutes but without the power to
levy a sales tax; the power to levy ad valorem taxes,
assessments or impact fees pursuant to Chapter 375,
Local Government Code for any project the District is
authorized to undertake; the power to grant abatements
of the District's assessments or taxes without the
necessity of the City of Houston first granting an
abatement of the City's taxes; and the power to create
a non-profit (on behalf of) corporation to implement any
of the District's projects.
Establishes that the District has the right to modify
and correct its assessment rolls by using the same
notice and procedure requirements as required to
establish its assessment roll and that the District may
create a "defined area" where services will be provided
and for which taxes or assessments may be levied as
provided in Chapter 54 of the Taxes Water Code.
SECTION 5. Authorizes the district to issue bonds or other
obligations payable in whole or in part from ad valorem
taxes, assessments, impact fees, revenues, grants, or
other funds of the District, or any combination thereof,
to pay for any authorized purpose of the district.
Establishes assessments, reassessments or assessment
resulting from an addition to or correction of the
assessment roll by the district as a first and prior
lien against property assessed within the district which
is superior to any other lien or claim other than a lien
or claim for County, school district or municipal as
valorem taxes and as a personal liability of and charge
against the owners of the property.
SECTION 6. Grants the District the right to hold an election for
bond or maintenance tax approval upon receipt of a
petition signed by 50 owners of property in the District
rather than upon petition of 50 percent of the owners
of property or 50 percent of the value of property in
the District as the number of owners and the value of
property in the twelve-square mile District is so large
as to make it impractical to obtain the requisite number
of signatures to call an election. This is consistent
with the creating legislation's requirements for a
petition signed by 50 owners of property in the District
requesting that the District undertake improvements or
services.
Provides that if bonds are sold for improvements or
services for a "defined area," the election to approve
such bonds is to be held within the "defined area."
SECTION 7. Grants the District the right to levy a tax to maintain
its facilities and projects if approved by the voters
in the District.
SECTION 8. Authorizes the City of Houston, Harris County, and any
other political subdivision, without further
authorization, to contract with the district to
implement a project or service of the district and
establishes the permissible terms of such contracts.
Authorizes the district to contract with, or accept or
make grants and loans to or from, the United States, the
State of Texas, political subdivisions, public and
private corporations, and other persons.
Authorizes the district to perform all acts necessary
for the full exercise of the powers vested in it.
SECTION 9. Declares the District eligible to be included in a tax
increment reinvestment zone, a tax abatement
reinvestment zone, or an enterprise zone.
SECTION 10. Protects property acquired by the District from
foreclosure by another taxing entity for tax which
accrued prior to the District's ownership of the
property.
SECTION 11. Finds all notice and consent requirements for the
enactment of the act have been met.
SECTION 12. Severability Clause.
SECTION 13. Emergency Clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
SECTION 4 of the original bill gave the management district the
authority to acquire property for any governmental purpose for
which it is authorized through the exercise of the power of eminent
domain. This provision was deleted from the substitute.
SUMMARY OF COMMITTEE ACTION
Pursuant to suspension of the 5 day posting rule on May 2, 1995,
the House Committee on State Affairs convened in a formal meeting
on May 4, 1995 to consider HB 3223. The Chair laid out HB 3223 and
explained the bill. The committee considered a complete substitute
for the bill. The complete committee substitute was adopted
without objection. The bill was reported favorably as substituted
with the recommendation that it do pass and be printed, and be sent
to the Committee on Local and Consent Calendars, by a record vote
of 14 ayes, 0 nay, 0 pnv and 1 absent.