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.