BILL ANALYSIS S.B. 1694 By: Whitmire (Bailey) 05-19-95 Committee Report (Unamended) BACKGROUND The Greater Greenspoint Management District (district) was created by the 72nd Legislature to increase security in the area. Upon creation, the district was granted all rights and powers of a municipal management district under Chapter 375 of the Local Government Code. Since creation, the district has noted several areas of authority and procedure in the laws that lack clarity. The district would like to have increased authority to undertake new projects and to stimulate economic growth in the district, but its creating legislation does not grant the district the authority to take on these responsibilities. PURPOSE S.B. 1694 clarifies and increases the administration, powers, and duties of the Greater Greenspoint Management District; creates regulations for contracting between the district and other political subdivisions. 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. LEGISLATIVE DECLARATION. (a) Sets forth findings, determinations, and declarations of the legislature regarding the purposes of the Greater Greenspoint Management District (district). (b) Sets forth the findings of the legislature regarding the creation of the district and authorizing the City of Houston (city), Harris County (county), and other political subdivisions to contract with the district. SECTION 2. DEFINITIONS. Defines "board," "district," "city," and "county." SECTION 3. FINDING OF BENEFIT AND PUBLIC PURPOSE. (a) Sets forth findings of the legislature regarding further promotion of the health, safety, welfare, and enjoyment of the public by the district. (b) Requires this Act to be liberally construed in conformity with the legislative findings and purposes in this Act and in Chapter 817, 72nd Legislature, Regular Session, 1991. Requires the district to have the powers necessary or required to be able to accomplish the purposes for which the district was created. SECTION 4. (a) Sets forth powers of the district in addition to all of the rights, powers, privileges, and authority granted by Chapter 817, 72nd Legislature, Regular Session, 1991, and the general laws of this state. Provides that all laws or provisions of laws referenced in this Act and subsequent amendments to those laws are adopted and incorporated into this Act for all purposes and may be used by the district independently of each other. Provides that this Act prevails if any provision of the referenced laws is in conflict with or inconsistent with this Act. (b) Provides that the district is authorized to adopt a resolution authorizing the creation of a nonprofit corporation (corporation) to aid, assist, and act on behalf of the district in the implementation of any project, provision of residential housing, or provision of any services authorized by this Act. Requires any such corporation authorized to be created by the board of directors of the district (board) to be created and dissolved, without any further authorization or approval. Requires the board of directors of the corporation to be appointed by the board. Requires the board of directors of the corporation to serve in the manner, for the terms, and on the conditions of the board of a local government corporation created pursuant to the provisions of Section 4A, Article 1528l, V.T.C.S. Requires any corporation so created to have the powers of and be deemed for all purposes to be a local government corporation created pursuant to the provisions of Section 4A, Article 1528l, V.T.C.S. Requires the corporation to have the powers necessary to implement any project and provide any services authorized by this Act. SECTION 5. BONDS AND ASSESSMENTS. (a) Authorizes the district to issue bonds or other obligations payable from ad valorem taxes, assessments, impact fees, revenues, grants, other district funds, or any combination of those funds, to pay for an authorized purpose of the district. Authorizes bonds or other district obligations to be used in the form of bonds, notes, certificates of participation, including other instruments showing a proportionate interest in payments to be made by the district, or other obligations that are issued in the exercise of the district's borrowing power. (b) Provides that assessments, reassessments, penalties and interest on an assessment or reassessment, expenses of collection, and attorney's fees incurred by the district are a first and prior lien against the property assessed, are superior to any lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes, and are the personal liability of and charged against the owners of property even if the owners are not named in the assessment proceedings. Provides that the lien is effective from the date of the board resolution levying the assessment until the assessment is paid. Authorizes the board to enforce the lien in the same manner that the board may enforce an ad valorem tax against real property. SECTION 6. ELECTIONS. Requires the district to hold elections to obtain voter approval for the district to levy a maintenance tax, issue bonds, or issue assessments, provided that the board may call a bond or maintenance tax election upon receipt of a written petition requesting the election signed by 50 persons owning property in the district, if there more than 50 property owners in the district according to the most recent certified county property tax rolls. Authorizes the board to submit multiple purposes in a single proposition at an election. Requires any election required, when issuing bonds payable from a "defined area," to be held only in the "defined area" and not in the entire district. SECTION 7. MAINTENANCE TAX. Authorizes the district to levy and collect an annual ad valorem tax on taxable property in the district for maintenance, improvements, and services performed by the district. Requires the board to determine the tax rate. SECTION 8. CONTRACTS. (a) Authorizes the city, county, or other political subdivision, without further authorization, to contract with the district to implement a district project or to aid and assist the district in providing services. Authorizes any contract to be for the duration and on terms as the parties determine. Authorizes the contract to be payable from taxes or other revenues available for such purpose. Provides that any contract may provide that taxes or revenues collected at the district project or at a project in a tax incremental reinvestment zone, or from persons using or purchasing commodities or services at any such project may be paid or rebated to the district according to terms in the contract. (b) Authorizes the district to enter into contracts, leases, and agreements with and to accept or make grants and loans to or from the U.S. and its departments or agencies, the state and its agencies, counties, municipalities, and political subdivisions, certain corporations, and other persons. Authorizes the district to perform all acts necessary for full exercise of its powers on terms and conditions and for the term the board determines to be advisable. (c) Authorizes the district to join and pay dues to organizations that have tax-exempt status under the Internal Revenue Code, that perform services or activities consistent with the purposes of the district. Provides that an expenditure of public funds for such membership is found to be in furtherance of the purposes of the district. SECTION 9. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. Provides that all or part of an area of the district is eligible, notwithstanding other statutory criteria, to be included in a tax increment reinvestment zone or tax abatement reinvestment zone created by the city. Provides that all or part of the district is eligible to be included in an enterprise zone created by the city. SECTION 10. OWNERSHIP OF PROPERTY BY THE DISTRICT. Prohibits an independent school district, community college district, county, city, hospital district, or other political subdivision or taxing authority, after title to real property is acquired by the district, from foreclosing its tax lien or otherwise pursuing unpaid taxes on the property which accrued prior to the district's ownership of the property against the district or any successor in title to the district which is a political subdivision of the State of Texas, regardless of the manner in which or the price for which the district obtained the title to the property. SECTION 11. NOTICE AND CONSENT. Sets forth findings of the legislature regarding proper and legal notice of the intention to introduce this Act. SECTION 12. Severability clause. SECTION 13. Emergency clause. Effective date: 90 days after adjournment. SUMMARY OF COMMITTEE ACTION The House Committee on State Affairs met in public hearing on May 16, 1995 to consider SB 1694. The chair laid out SB 1694. 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 10 ayes, 0 nays, 0 pnv, and 5 absent.