JBM H.B. 3561 75(R)BILL ANALYSIS


NATURAL RESOURCES
H.B. 3561
By: Williams
4-16-97
Committee Report (Amended)



BACKGROUND 

The Town Center Improvement District of Montgomery County ("the District")
was created by the 73rd Legislature to promote health, safety, welfare,
and economic growth through the creation of jobs and facilitation of
business development in south Montgomery County.  For twoplus years, the
District has operated one of the most successful public safety programs in
the region.  Although public safety remains the District's number one
priority, the District is ready to move forward and address other economic
issues. 

An expansion proposal is being considered to establish the Waterway
Convention Center and Hotel.  This capital investment would develop the
District into a dynamic meeting, shopping and entertainment area, similar
to the Riverwalk in San Antonio.  This project will create approximately
700 permanent jobs with an annual payroll of $11,500,000.  It will also
result in a capital investment in our community of $50,000,000.  It will
create approximately 600 construction jobs with a payroll of $17,000,000
and an estimated total economic impact to south Montgomery County over the
next five years of $143,000,000. 

PURPOSE

To make changes to the Town Center Improvement District of Montgomery
County including taxing powers, operations and financing of the District
to allow the District to pursue the above expansion. 

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.  Amends Section 1, Chapter 289, Acts of the 73rd Legislature,
Regular Session, 1993, by adding subsection (f) to provide that, except as
otherwise provided by that Act, the District is not subject to the
jurisdiction or supervision of the commission under Chapter 49, Water
Code, or other law. 

SECTION 2.  Amends Section 2, Chapter 289, Acts of the 73rd Legislature,
Regular Session, 1993, by adding a definition of "commission" and
expanding the definition of "improvement project."  

SECTION 3.  Amends Section 6(a), Chapter 289, Acts of the 73rd
Legislature, Regular Session, 1993, to conforming references to previous
general laws in the original legislation to the current Code forms of such
general laws. 

SECTION 4.  Amends Section 7, Chapter 289, Acts of the 73rd Legislature,
Regular Session, 1993, by conforming the District's authority to add or
exclude territory to current Code references and reinstating the former
provision that the District need not secure city consent to add or exclude
territory.  Also, this section authorizes the imposition of and the
application of the proceeds from a hotel occupancy tax. 
 
SECTION 5.  Amends Sections 8(b), (c), (e), and (k), Chapter 289, Acts of
the 73rd Legislature, Regular Session, 1993, to alter eligibility
requirements for the District's Board of Directors, permit appointment of
members to the Board by the Texas Natural Resource Conservation Commission
(TNRCC) in the event that the number of directors should ever be less than
the minimum number required for a quorum, and clarify public officials'
capacity to serve on the Board. 

SECTION 6.  Amends Section 11, Chapter 289, Acts of the 73rd Legislature,
Regular Session, 1993, by amending Subsection (h) and adding Subsection
(j) to provide as follows:  (h)  adopts procedures contained in Section
312.637(h), Tax Code, providing for a reduction of the District's sales
and use tax and the orderly retirement of any outstanding bonded
indebtedness of the District in the event of either annexation or
incorporation of all or part of the District; and (j) allows the District
access to information available under general law to municipalities
concerning sales and use taxes. 

SECTION 7.  Amends Chapter 289, Acts of the 73rd Legislature, Regular
Session, 1993, by adding Sections 11A and 11B to authorize the District to
adopt a hotel occupancy tax and designates uses for proceeds. 

SECTION 8.  Amends Chapter 289, Acts of the 73rd Legislature, Regular
Session, 1993, adding Section 12A to authorize the District to issue
bonds. 

SECTION 9.  Amends Section 14, Chapter 289, Acts of the 73rd Legislature,
Regular Session, 1993, by adding Subsection (d) to provide that the
District may not be dissolved by a municipality. 

SECTION 10. Repeals Section 12, Chapter 289, Acts of the 73rd Legislature,
Regular Session, 1993. 

SECTION 11.  All required notices for introduction of the bill have been
given. 

SECTION 12.  Emergency clause.


EXPLANATION OF AMENDMENTS

Committee Amendment #1:  In Section 4 of the bill, the amendment deletes
Section 7(3) of Chapter 289, Acts of the 73rd Legislature, Regular
Session, 1993.  The amendment also inserts a new Section 7(3) which states
that the board may add or exclude territory in the manner provided by
Subchapter J (H), Chapter 49 (54) and Section 54.016, Water Code, except
that Section 42.042 and Section 54.016, Local Government Code, shall not
apply to the annexation of land restricted primarily to commercial or
business use.