BILL ANALYSIS S.B. 1601 By: Brown (S. Turner) May 18, 1995 Committee Report (Unamended) BACKGROUND The Westchase area of Houston lacks financial support for services such as crime prevention programs and infrastructure improvements. PURPOSE As proposed, S.B. 1601 creates the Westchase Area Management District in Harris County in order to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, arts, entertainment, economic development, safety, and the public welfare in the district. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. CREATION OF DISTRICT. (a) Declares that a special district in Harris County to be known as the "Westchase Area 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) Declares the creation of the district to be essential for the purposes of specific sections of the Texas Constitution and of other public purposes stated in this Act. SECTION 2. LEGISLATIVE DECLARATION. Sets forth the findings and intent of the legislature concerning the Westchase area of Harris County. 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 relating to the boundaries and field notes of the district. SECTION 6. FINDINGS OF BENEFIT AND PUBLIC. Sets forth the findings of the legislature concerning the land and property included within the district boundaries and the creation of the district. Declares that the district will not act as the agent or instrumentality of any private interest. SECTION 7. APPLICATION OF OTHER LAW. Declares that Chapter 375, Local Government Code, applies to the district, except as otherwise provided by this Act. SECTION 8. CONSTRUCTION OF ACT. Requires this Act to be liberally construed in conformity with the legislative findings and purposes stated in this Act. SECTION 9. BOARD OF DIRECTORS IN GENERAL. (a) Declares that the district is governed by a board of 17 directors (board) who serve staggered four-year terms. (b) Declares that Chapter 375D, Local Government Code, applies to the board to the extent that subchapter does not conflict with this Act. SECTION 10. INITIAL DIRECTORS. Sets forth the initial membership and term limits for the initial members of the board. SECTION 11. SUBSEQUENT DIRECTORS. Sets forth guidelines for the appointment of subsequent directors. SECTION 12. EX OFFICIO MEMBERS OF BOARD OF DIRECTORS. Authorizes the board to appoint nonvoting ex officio members to serve on the board. SECTION 13. POWERS OF DISTRICT. (a) Grants the district all powers necessary or required to accomplish the purposes for which the district was created. (b) Grants the district the rights, powers, privileges, authorities, and functions of a district created under Chapter 375, Local Government Code. (c) Grants the district the powers conferred on a corporation under Section 4B, Article 5190.6, V.T.C.S. (d) Authorizes the district to levy certain taxes, assessments, or fees, and to correct, add to, or delete certain assessments from its assessment rolls. (e) Prohibits the district from acquiring property through eminent domain. (f) Prohibits the district from levying a sales and use tax. (g) Requires certain changes to certain district property to be accomplished at the sole cost and expense of the district, and requires damages suffered by owners of the property or facilities to be borne by the district. SECTION 14. CONFLICTS WITH OTHER LAW. Declares that this Act prevails if any provision of law referenced in Section 13 of this Act is in conflict with or is inconsistent with this Act. Declares that any law referenced in this Act that is not in conflict or inconsistent with this Act is adopted and incorporated by reference. SECTION 15. REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS. Prohibits the board from financing services and improvement projects under this Act unless a written petition requesting those improvements or services has been filed with the board. Requires the petition to be signed by certain persons. SECTION 16. DISBURSEMENTS OR TRANSFERS OF FUNDS. Requires the board, by resolution, to establish the number of directors' signatures and the procedure required for a disbursement or transfer of the district's money. SECTION 17. BONDS. (a) Authorizes the district to issue bonds or other obligations payable from ad valorem taxes, assessments, impact fees, revenues, grants, or other funds of the district, to pay for any authorized purpose of the district. (b) Authorizes bonds or other obligations of the district to be issued in certain forms. (c) Requires the district to obtain the City of Houston's (city's) approval of the issuance of bonds for an improvement project and the plans and specifications of an improvement project to be financed by the bonds. (d) Authorizes the district, if it obtains the city's approval of a capital improvements budget for a specified period not to exceed five years, to finance the capital improvements and issue bonds specified in the budget without further city approval. (e) Requires the district, before it issues bonds, to submit the bonds and the district's record of the proceedings relating to bond authorization to the attorney general for approval. SECTION 18. ASSESSMENTS. (a) Authorizes the board to levy and collect an assessment for any purpose authorized by this Act. (b) Makes certain assessments and reassessments, penalties and interest, expenses of collections, and attorney's fees a first and prior lien against the property assessed, superior to certain liens or claims, and the personal liability of and charge against the owners of the property. (c) Sets forth requirements for the lien. (d) Prohibits the district from imposing an assessment on certain property, equipment, or facilities of a public utility. SECTION 19. APPROVAL OF CERTAIN IMPROVEMENT PROJECTS. Requires the district to obtain the city's approval of the plans and specifications of any district improvement project related to the use of land owned by the city, an easement granted by the city, or a right-of-way of a street, road, or highway. SECTION 20. ELECTIONS. Requires the district, in addition to the elections required under Chapter 375L, Local Government Code, to hold an election in the manner provided by that subchapter to obtain voter approval before the district imposes a maintenance tax or issues bonds payable from ad valorem taxes or assessments. (b) Authorizes the board to submit multiple purposes in a single proposition. (c) Prohibits the board from calling an election under this Act unless a written petition requesting an election, signed by certain persons, has been filed with the board. SECTION 21. IMPACT FEES. (a) Authorizes the district to impose an impact fee for a purpose authorized under Chapter 375G, Local Government Code. (b) Prohibits the district from imposing an impact fee on certain property, equipment, or facilities of a public utility. SECTION 22. MAINTENANCE TAX. (a) Authorizes the district, if authorized at an election under Section 20 of this Act, to levy and collect an annual ad valorem tax, at a rate determined by the board, on taxable property in the district for maintenance and operation of the district and of the improvements constructed or required by the district or for the provision of services to industrial or commercial businesses, residents, and property owners. (b) Requires the board to determine the tax rate. SECTION 23. DISSOLUTION OF THE DISTRICT. (a) Authorizes the district to be dissolved under Chapter 375M, Local Government Code. (b) Authorizes a district that has a debt to be dissolved as provided by Chapter 375M, Local Government Code. Requires the district, if it has debt and is dissolved, to remain in existence solely for the limited purpose of discharging its bonds or other obligations. SECTION 24. CONTRACTS. (a) Authorizes the district, in order to protect the public interest, to contract with the city or county for the provision of law enforcement services on a fee basis. (b) Authorizes the city, county, or other political subdivision of the state to contract with the district to implement a project of the district or to aid and assist the district in providing services authorized under this Act. Sets forth guidelines for such a contract. (c) Authorizes the district to enter into a contract, lease, or agreement with, or make or accept grants and loans to or from, the United States; the state or a state agency; a county, municipality, or other political subdivision of the state; a public or private corporation; and any other person. (d) Authorizes the district to perform all acts necessary for the full exercise of the powers vested in the district on the conditions and for the term that the board determines to be advisable. SECTION 25. COMPETITIVE BIDDING. Authorizes the district to enter into a contract for more than $10,000 for services, improvements, or the purchase of materials, machinery, equipment, supplies, or other property as provided under Chapter 375K, Local Government Code. SECTION 26. NOTICE AND CONSENT. Sets forth the findings of the legislature concerning notice and consent of this Act. SECTION 27. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION SB 1601 was considered by the Committee on State Affairs in a public hearing on May 16, 1995. The Chair laid out SB 1601. The bill was reported favorably without amendment, 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: 9 ayes; 0 nays; 0 pnv; and 6 absent.