BWH S.B. 19 75(R)BILL ANALYSIS


COUNTY AFFAIRS
S.B. 19
By: Gallegos (Torres)
5-15-97
Committee Report (Unamended)


BACKGROUND 

Currently, in Harris County, as in many major metropolitan areas, there
are areas which could be considered economically depressed.  One such area
is the Richmond area of Houston.  This legislation would create the
Greater East End Management District, with the goals of promoting,
developing, encouraging, and maintaining employment, commerce,
transportation, housing, tourism, recreation, arts, entertainment,
economic development, safety, and the public welfare in the Richmond
Avenue area of Houston.   

PURPOSE

As proposed, S.B. 19 creates the Greater East End Management District in
Harris County. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the board of directors of Greater East
End Management District under SECTION 1 (Sections 376.161, 376.169, and
376.176, Local Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 12A, Local Government Code, by adding Chapter 376,
as follows: 

CHAPTER 376.  SPECIFIC MUNICIPAL MANAGEMENT DISTRICTS

SUBCHAPTER E.  GREATER EAST END MANAGEMENT DISTRICT

Sec. 376.161.  CREATION OF DISTRICT.  Provides that a special district to
be known as the "Greater East End Management District" exists as a
governmental agency, body politic and corporate, and political subdivision
of the state.  Authorizes the name of the district to be changed by
resolution of the board of directors.  Provides that the creation of the
district is essential to accomplish the purposes of Section 52, Article
III, Section 59, Article XVI, and Section 52-a, Article III, Texas
Constitution, and other public purposes stated in this subchapter. 

Sec. 376.162.  DECLARATION OF INTENT.  Provides that the creation of the
district is necessary to promote, develop, encourage, and maintain
employment, commerce, transportation, housing, tourism, recreation, arts,
entertainment, economic development, safety, and public welfare in the
Richmond Avenue area of the city of Houston.  Provides that the creation
of the district and this legislation are not to be interpreted to relieve
the county of the municipality from providing the level of services, as of
September 1, 1997, to the area in the district or to release the county or
the municipality from the obligations each entity has to provide services
to that area.  Provides that the district is created to supplement and not
supplant the municipal or county services provided in the area in the
district. Provides that by creating the district and in authorizing the
municipality, county, and other political subdivisions to contract with
the district, the legislature has established a program to accomplish the
public purposes set out in Section 52-a, Article III, Texas Constitution.

Sec. 376.163.  DEFINITIONS.  Defines "board," "district," "municipality,"
and "county." 

 Sec. 376.164.  BOUNDARIES.  Provides that the district includes all the
territory contained in a certain area.  

Sec. 376.165.  FINDINGS RELATING TO BOUNDARIES.  Provides that the
boundaries and field notes of the district form a closure.  Sets forth
provisions applicable if a mistake is made in the field notes or in
copying the field notes in the legislative process. 

Sec. 376.166.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  Provides that all
the land and other property included in the district will be benefited by
the improvements and services to be provided by the district under powers
conferred by Section 52, Article III, Section 59, Article XVI, and Section
52-a, Article III, Texas Constitution, and other powers granted under this
subchapter, and the district is created to serve a public use and benefit.
Provides that the creation of the district is in the public interest and
essential to achieve certain goals.  Provides that the district will
promote safety, health, and general welfare, and will provide for certain
needs.  Provides that pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary components
of a street and are considered to be a street or road improvement.
Provides that the district will not act as the agent or instrumentality of
any private interest even though many private interests will be benefited
by the district, as will the general public.   

Sec. 376.167.  APPLICATION OF OTHER LAW.  Provides that except as
otherwise provided by this subchapter, Chapter 375 applies to the
district. 

Sec. 376.168.  CONSTRUCTION OF SUBCHAPTER.  Requires this subchapter to be
liberally construed in conforming with the findings and purposes stated in
this subchapter. 

Sec. 376.169.  BOARD OF DIRECTORS IN GENERAL.  Provides that the district
is governed by a board of 12 directors who serve staggered terms of four
years with six members' terms expiring June 1 of each odd-numbered year.
Authorizes the board to increase or decrease the number of directors on
the board by resolution, provided that it is in the best interest of the
district to do so and that the board consists of not fewer than nine and
not more than 30 directors.  Provides that Chapter 375D applies to the
board to the extent that subchapter does not conflict with this
subchapter.  Provides that the imposition of a tax, assessment, or impact
fee requires a vote of a majority of the directors serving. Authorizes
directors to vote on any matter authorized by Chapter 375D, and authorizes
an action to be taken by the board only if it is approved in the manner
prescribed by Chapter 375D. 

Sec. 376.170.  APPOINTMENT OF DIRECTORS; VACANCY.  Authorizes the mayor
and members of the governing body of the municipality to appoint directors
from persons recommended by the board who meet the qualifications of
Chapter 375D.   Requires a vacancy in the office of director because of
the death, resignation, or removal of a director to be filled by the
remaining members of the board by appointing a qualified person for the
unexpired term.  

Sec. 376.171.  POWERS OF DISTRICT.  Sets forth the powers of the district.

Sec. 376.172.  EMINENT DOMAIN.  Prohibits the district from exercising the
power of eminent domain. 

Sec. 376.173.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING
PROPERTY.  Sets forth provisions applicable if the district, in exercising
a power conferred by this subchapter, requires a relocation, adjustment,
raising, lowering, rerouting, or changing of the grade or the construction
of certain items.   

Sec. 376.174.  RELATION TO OTHER LAW.   Provides that if any provision of
a law referenced in this subchapter is in conflict or is inconsistent with
this subchapter, this subchapter prevails.  Provides that any law
referenced in this subchapter that is not in conflict  or inconsistent
with this subchapter is adopted and incorporated by reference. 

Sec. 376.175.  REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS.
Prohibits the district from financing services and improvement projects
under this subchapter unless a written petition requesting those
improvements or services has been filed with the board.  Requires the
petition to be signed by certain persons. 

Sec. 176.176.  NONPROFIT CORPORATION.  Authorizes the board, by
resolution, to authorize the creation of a nonprofit corporation to assist
and act on behalf of the district in implementing a project or providing a
service authorized by this subchapter.  Requires the board to appoint the
board of directors of a nonprofit corporation created under this section.
Requires the board of directors of the nonprofit corporation to serve in
the same manner as, for the same term as, and on the conditions of the
board of directors of a local government corporation created under Chapter
431, Transportation Code.  Sets forth additional provisions regarding a
nonprofit corporation created under this section. 

Sec. 376.177.  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.

Sec. 376.178.  BONDS.  Authorizes the district to issue bonds or other
obligations payable in whole or in part from ad valorem taxes,
assessments, impact fees, revenues, grants, or other money of the
district, or any combination of those sources of money, to pay for any
authorized purpose of the district.  Sets forth additional provisions
regarding bonds and obligations of the district.  Requires the district,
except as provided by Subsection (d), to obtain the municipality's
approval of certain actions relating to bonds or improvement projects.
Sets forth provisions applicable if the district obtains the
municipality's approval of a capital improvements budget for a specified
period not to exceed five years.  Requires the district, before the
district issues bonds, to take certain actions.   

Sec. 376.179.  ASSESSMENTS.  Authorizes the board to impose and collect
assessment for any purpose authorized by this subchapter.  Sets forth
provisions regarding assessments, reassessments, or assessments resulting
from an addition to or correction of the assessment roll by the district.
Provides that the lien is effective from the date of the resolution of the
board 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 lien against real property. 

Sec. 376.180.  PROPERTY EXEMPTED FROM TAX, FEE, OR ASSESSMENT.  Prohibits
the district from imposing certain taxes or fees. 

Sec. 376.181.  ELECTIONS.  Requires the district, in addition to the
elections the district must hold under Chapter 375L, 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.  Authorizes the board to submit multiple
purposes in a single proposition at an election.   

Sec. 376.182.  IMPACT FEES.  Authorizes the district to impose an impact
fee for an authorized purpose as provided by Chapter 375G.   

Sec. 376.183.  MAINTENANCE TAX.  Authorizes the district, under certain
conditions, to impose and collect an annual ad valorem tax on taxable
property in the district for the maintenance and operation of the district
and the improvements constructed or acquired by the district or for the
provisions of services.  Requires the board to determine the tax rate. 

Sec. 376.184.  DISSOLUTION OF DISTRICT.  Authorizes the district to be
dissolved as provided by Chapter 375M.  Requires the district, if the
district has debt and is dissolved, to remain in existence solely for the
limited purpose of discharging its bonds or other obligations according to
their terms.   
 
Sec. 376.185.  CONTRACTS.  Authorizes a district, in order to protect the
public interest, to contract with a municipality or county for the
provision of law enforcement services by the county or municipality in the
district on a fee basis.  Authorizes the municipality, county, or another
political subdivision of the state, without further authorization, to
contract with the district to implement a project of the district or
assist the district in providing the services authorized under this
subchapter.  Sets forth certain authorizations regarding a contract under
this subsection.  Authorizes the district to enter into a contract, lease,
or other agreement with or make or accept grants and loans to or from
certain persons.  Authorizes the district to perform all acts necessary
for the full exercise of the powers vested in the district on terms and
for the period the board determines advisable.   

Sec. 376.186.  INITIAL DIRECTORS.  Provides that the initial board
consists of certain persons.  Provides that, of the initial directors, the
terms of directors appointed for positions 1 through 6 expire on June 1,
1999, and the terms of directors appointed for positions 7 through 12
expire on June 1, 2001.  Provides that this section expires September 1,
2002. 

SECTION 2. Sets forth certain findings of the legislature. 

SECTION 3. Emergency clause.