BILL ANALYSIS
H.B. 3233
By: Danburg (Brown)
Economic Development
5-27-95
Senate Committee Report (Unamended)
BACKGROUND
The Upper Kirby area in Houston lacks the financial support for
infrastructure improvements, street pavement and detail
improvements, traffic control, and landscape improvements.
PURPOSE
As proposed, H.B. 3233 provides for the creation, administration,
powers and duties of the Upper Kirby Management District; grants
the authority to issue bonds; and authorizes a tax.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the board of directors of the Upper Kirby Management District
under SECTION 21 of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. CREATION OF DISTRICT. (a) Provides that a special
district to be known as the Upper Kirby Management District
(district) exists as a governmental agency, body politic and
corporate, and political subdivision of the state.
(b) Authorizes the name of the district to be changed by
resolution of the board of directors of the district (board).
(c) Provides that the creation of the district is essential to
accomplish the purposes of Section 52, Article III, Section
59, Article XVI, and Section 52-a, Article III, Texas
Constitution, and other public purposes stated in this Act.
SECTION 2. LEGISLATIVE DECLARATION. Sets forth the findings and
intention of the legislature in relation to the creation of the
Upper Kirby Management District.
SECTION 3. DEFINITIONS. Defines "board," "district," "city," and
"county."
SECTION 4. BOUNDARIES. Sets forth the boundaries of the district.
SECTION 5. FINDINGS RELATING TO BOUNDARIES. Sets forth the findings
of the legislature in relation to the boundaries of the district.
SECTION 6. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. Sets forth the
findings of the legislature in relation to the benefits and public
purpose of the district.
SECTION 7. CONSTRUCTION OF ACT. Requires this Act to be liberally
construed in conformity with the legislative findings and purposes
stated in this Act.
SECTION 8. BOARD OF DIRECTORS IN GENERAL. (a) Provides that the
district is governed by a board of five directors who serve
staggered four-year terms.
(b) Provides that quorum requirements, concurrence for board
action, officers' duties, and fees of office for the board are
governed by Sections 54.107 and 54.114, Water Code. Provides
that Chapter 375D, Local Government Code, applies to the board
to the extent that subchapter does not conflict with this Act.
SECTION 9. INITIAL DIRECTORS. (a) Sets forth the composition of the
initial board.
(b) Provides that of the initial directors, the directors
appointed for positions 1 and 2 serve until June 1, 1997, and
the directors appointed for positions 3 through 5 serve until
June 1, 1999.
SECTION 10. SUBSEQUENT DIRECTORS. Requires subsequent directors
to be appointed and qualify to serve in the manner provided by
Chapter 375D, Local Government Code. Requires a vacancy in the
office of director because of the death, resignation, or removal of
a director to be filled by the remaining members of the board by
appointing a qualified person for the unexpired term.
SECTION 11. POWERS OF DISTRICT. (a) Provides that the district
has all powers necessary or required to accomplish the purposes for
which the district was created.
(b) Provides that the district has the rights, powers,
privileges, authorities, and functions of a district created
under Chapter 375, Local Government Code.
(c) Provides that the district has the powers conferred on a
corporation under Section 4B, Article 5190.6, V.T.C.S.
Authorizes the district to own, operate, acquire, construct,
lease, improve, and maintain projects described by that
section.
(d) Authorizes the district to exercise the power of a housing
finance corporation created under Chapter 394, Local
Government Code.
(e) Authorizes the district to levy, impose, assess, charge,
or collect ad valorem taxes, assessments, impact fees, or
other fees in accordance with Chapters 375F-H, Local
Government Code, or Chapter 54, Water Code, for purposes
specified in Chapter 375, Local Government Code, or as
necessary to accomplish a purpose, function, power, or duty
for which the district is created.
SECTION 12. CONFLICTS WITH OTHER LAW. Provides that if any
provision of general law, including a law referenced in Section 11
of this Act is in conflict with or is inconsistent with this Act,
this Act prevails. Provides that any law referenced in this Act
that is not in conflict or inconsistent with this Act is adopted
and incorporated by reference.
SECTION 13. TORT CLAIMS. Provides that the district is a unit of
government for purposes of Chapter 101, Civil Practice and Remedies
Code. Provides that the operations of the district are considered
to be essential governmental functions for all purposes and not
proprietary functions.
SECTION 14. NONPROFIT CORPORATION. (a) Authorizes the board by
resolution to authorize the creation of a nonprofit corporation to
aid, assist, and act on behalf of the district in implementing a
project or providing a service authorized by this Act.
(b) Requires the board to appoint the board of directors of a
nonprofit corporation created under this section. Requires the
board of directors of the nonprofit corporation to serve in
the same manner as, for the same term as, and on the
conditions of the board of directors of a local government
corporation created under Article 15281, V.T.C.S. (Texas
Transportation Corporation Act).
(c) Provides that a nonprofit corporation created under this
section has the powers of and is considered for purposes of
this Act to be a local government corporation created under
Article 15281, V.T.C.S.
(d) Authorizes a nonprofit corporation created under this
section to implement any project and provide any services
authorized by this Act.
SECTION 15. DEBT. Authorizes the district to issued bonds,
notes, or other debt obligations in accordance with Chapters 375I
and J, Local Government Code, for the purposes specified in that
chapter or as may be required to accomplish the purposes,
functions, powers, and duties for which the district is created.
SECTION 16. ASSESSMENTS. (a) Provides that an assessment imposed
on property under this Act is a personal obligation of the person
who owns the property on January 1 of the year for which the
assessment is imposed. Provides that a person is not relieved of
the obligation if the person transfers title to the property.
(b) Provides that on January 1 of the year for which an
assessment under this Act is imposed on property, a lien
attaches to the property to secure the payment of the
assessment and any interest accrued on the assessment.
Provides that the lien has the same priority as a lien for
taxes of the district.
(c) Authorizes the district, no later than the fourth
anniversary after the assessment became due, to file suit to
foreclose the lien on or enforce the personal obligation for,
or both foreclose the lien on and enforce the personal
obligation for, an assessment that is not paid in a timely
manner and any interest accrued on that assessment.
(d) Authorizes the district, in addition to recovering the
amount of the assessment and interest accrued on the
assessment, to recover in a suit certain costs, including
attorney's fees, incurred by the district in foreclosing the
lien or enforcing the personal obligation in an amount not to
exceed 20 percent of the delinquent assessment and interest.
(e) Provides that an assessment that is delinquent for more
than four years after the date on which the assessment became
due and any interest imposed on the assessment is considered
paid if a suit is not filed before the time period prescribed
by Subsection (c) of this section.
(f) Provides that for purposes of a title insurance policy
issued under Chapter 9, Insurance Code, an assessment is a
tax.
SECTION 17. ELECTIONS. (a) Requires the district to hold
elections in the manner provided by Chapter 375L, Government Code.
(b) Authorizes the board to submit multiple purposes in a
single proposition or to submit multiple propositions at an
election.
SECTION 18. MAINTENANCE TAX. (a) Authorizes the district, if
authorized at an election, to levy and collect an annual ad valorem
tax on taxable property in the district for the maintenance,
restoration, replacement, or operation of the district, the
improvements constructed or acquired by the district, or the
facilities, works, or services of the district.
(b) Requires the board to determine the tax rate.
SECTION 19. DISSOLUTION OF DISTRICT. (a) Authorizes the district
to be dissolved as provided in Chapter 375M, Local Government Code.
(b) Authorizes a district that has debt to be dissolved as
provided by Chapter 375M, Local Government Code. Requires the
district, if the district has debt and is dissolved, to remain
in existence solely for the limited purposes of charging its
bonds or other obligations according to their terms.
SECTION 20. CONTRACTS. (a) Authorizes the district to contract
with any entity to carry out the purposes of this Act. Sets forth
authorizations for a contract under this subsection.
(b) Authorizes the district, to protect the public interest,
to contract with the city of Houston (city) or Harris County
(county) for the provision of law enforcement and security
services by the county or city in the district on a fee basis.
Authorizes the district to contract with private security
providers to supplement the security services provided by the
city or county.
SECTION 21. COMPETITIVE BIDDING. Provides that the competitive
bidding requirement provided by Chapter 375K, Local Government
Code, applies to the district.
SECTION 22. REINVESTMENT ZONES. Provides that all or any part of
the area of the district is eligible to be included in a tax
incremental reinvestment zone created by the city under Chapter
311, Tax Code, or included in a tax abatement reinvestment zone
created by the city under Chapter 312, Tax Code.
SECTION 23. NOTICE AND CONSENT. Sets forth the findings of the
legislature in relation to the notice and consent of the intention
to introduce this Act.
SECTION 24. Emergency clause.
Effective date: upon passage.