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.