HBA-NLM H.B. 922 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 922 By: Noriega County Affairs 3/22/1999 Introduced BACKGROUND AND PURPOSE Currently, there is no entity in place to help improve economic development opportunities in the East End area of the City of Houston. This bill creates the Greater East End Management District to assist area businesses by building and maintaining additional infrastructure, improving the safety of the area, and coordinating job training and workforce development. As proposed, H.B. 922 creates the Greater East End Management District, and authorizes the issuance of bonds, and the imposition of taxes by that entity. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 376, Local Government Code, by adding Subchapter G, as follows: SUBCHAPTER G. GREATER EAST END MANAGEMENT DISTRICT Sec. 376.261. CREATION OF DISTRICT. Establishes the creation of the "Greater East End Management District" as a governmental agency, body politic and corporate, and political subdivision of the state and provides that the creation of the district is to accomplish certain purposes. Provides that the name of the district may be changed by resolution of the board of directors of the district (board). Sec. 376.262. 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 the public welfare in the Greater East End of the City of Houston. Specifies that the creation of the district and this legislation are not to be interpreted to relieve the county or the municipality from providing the level of services provided as of September 1, 1999, or from the obligations each entity has to provide services to the area in the district. Specifies that the creation of the district is to supplement services provided in the area in the district, rather than replace municipal or county services. Provides that the legislature has established a program to accomplish the public purposes set out in Section 52-a (Loan or Grant of Public Money for Economic Development), Article III, Texas Constitution, by the creation of the district and through the authorization for the municipality, county, and other political subdivisions to contract with the district. Sec. 376.263. DEFINITIONS. Defines "board," "district," "municipality," and "county." Sec. 376.264. BOUNDARIES. Establishes that the district includes all the territory set forth in this section. Sec. 376.265. FINDINGS RELATING TO BOUNDARIES. Sets forth that the boundaries and field notes of the district form a closure. Provides that a mistake made in the field notes or in copying the field notes in the legislative process does not affect the organization, existence, and validity of the district or the right of the district to impose and collect assessments or taxes or to issue any type of bonds or refunding bonds for the purposes for which the district is created or to pay the principal of and interest on the bonds or legality or operation of the district or its governing body. Sec. 376.266. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. Sets forth findings, as follows: (a) The land and included property in the district will benefit from the improvements and services provided under this section. (b) The creation of the district is in the public interest to further the development and diversification of the economy of the state, eliminate unemployment and underemployment, and develop or expand transportation and commerce. (c) The district will promote the health, safety, and general welfare of residents, employers, potential employees, employees, visitors, consumers in the district, and the general public; provide needed funding for the Greater East End area to preserve, maintain, and enhance the economic health and vitality of the area as a community and business center; further promote the health, safety, welfare, and enjoyment of the public, as provided; and further eliminate unemployment and underemployment and develop or expand transportation and commerce, as provided. (d) Provides that pedestrian ways along or across a street and street lighting, landscaping, and art objects are considered to be a street or road improvement. (e) The district will not act as the agent or instrumentality of any private interest. Sec. 376.267. APPLICATION OF OTHER LAW. Applies the provisions of Chapter 375 (Municipal Management Districts in General) to the district, except as otherwise provided by this subchapter. Sec. 376.268. CONSTRUCTION OF SUBCHAPTER. Provides for the liberal interpretation of findings and purposes stated in this subchapter. Sec. 376.269. BOARD OF DIRECTORS IN GENERAL. Establishes a board of directors to govern the district and provides for staggered terms. Applies the provisions of Subchapter D, Chapter 375, to the board to the extent that there is no conflict . Sec. 376.270. APPOINTMENT OF DIRECTORS; VACANCY. Requires the mayor and members of the governing body of the municipality to appoint directors from among persons recommended by the board. Requires a vacancy in the office of director due to death, resignation, or removal to be filled by the remaining members of the board by appointing a qualified person for the unexpired term. Sec. 376.271. POWERS OF DISTRICT. Sets forth certain powers of the district. Sec. 376.272. EMINENT DOMAIN. Prohibits the district from exercising the power of eminent domain. Sec. 376.273. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING PROPERTY. Provides that if the district, in exercising a power conferred by this subchapter, requires a relocation, adjustment, raising, lowering, rerouting, or changing the grade or the construction of any of the items specified under this section, the district must take that required action at the sole expense of the district. Requires the district to bear damages that are suffered by owners of the facility or property. Sec. 376.274. RELATION TO OTHER LAW. Provides that this subchapter prevails if any provision of a law referenced in this subchapter is in conflict with or is inconsistent with this subchapter. 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. 376.275. REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS. Prohibits the district from financing services and improvement projects under this subchapter unless a written petition regarding those improvements or services has been filed with the board. Specifies the required parties that must sign the petition. Sec. 376.276. 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 (Texas Transportation Corporation Act), Transportation Code. Sets forth the powers of the nonprofit corporation and provides that for the purposes of this subchapter it is considered to be a local government corporation created under Chapter 431, Transportation Code. Authorizes a nonprofit corporation created under this section to implement any project and provide any services authorized by this subchapter. Sec. 376.277. 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. 376.278. BONDS. Authorizes the district to issue bonds and other obligations in the manner described in this section. Provides that the district must obtain the municipality's approval of the issuance of bonds relating to an improvement project, except as otherwise provided by this section. Authorizes the district to finance the capital improvements and issue specified bonds without further municipal approval if the district obtains the municipality's approval of a capital improvements budget for a specified period. Requires the district to submit to the attorney general the bonds and the record of proceedings of the district relating to authorization of the bonds. Sec. 376.279. ASSESSMENTS. Authorizes the board to impose and collect an assessment for any purpose authorized by this subchapter. Provides that certain assessments, penalties and interest, expenses, and reasonable attorney's fees incurred by the district are a first and prior lien against the property assessed, are superior to any other lien or claim, except as otherwise provided, and are the personal liability of and charge against the owners of the property. 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. 376.280. PROPERTY EXEMPTED FORM TAX, FEE, OR ASSESSMENT. Prohibits the district from imposing a tax, impact fee, or assessment on a residential property, multiunit residential property, or condominium. Prohibits the district from imposing an impact fee or assessment on the property, equipment, or facilities of an electric utility as defined by Section 31.002 (Definitions), Utilities Code. Sec. 376.281. ELECTIONS. Requires the district to hold an election in the manner provided by Subchapter L (Elections), Chapter 375, to obtain voter approval before the district imposes a maintenance tax or issues bonds payable for ad valorem taxes or assessments. Authorizes the board to submit multiple purposes in a single proposition at an election. Sec. 376.282. IMPACT FEES. Authorizes the district to impose an impact fee for an authorized purpose as provided by Subchapter G (Impact Fees), Chapter 375. Sec. 376.283. MAINTENANCE TAX. Authorizes the district, if authorized at an election held in accordance with Section 376.281, 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 provision of services. Requires the board to determine the tax rate. Sec. 376.284. WORKFORCE DEVELOPMENT, WORKFORCE EDUCATION, AND JOB TRAINING OPPORTUNITIES. Requires the district to participate in the establishment and implementation of job training, workforce education, and workforce development opportunities, described in this section, for a minimum period of five years. Requires the district to allocate no less than three percent of its assessment revenues to these types of activities during the initial required three-year period. Authorizes the district to create a nonprofit corporation to assist or act on behalf of the district to implement this section. Sec. 376.285. DISSOLUTION OF THE DISTRICT. Authorizes the district to be dissolved as provided in Subchapter M (Dissolution), Chapter 375. Requires the district to remain in existence, if the district has debt and is dissolved, solely for the limited purpose of discharging its bonds or other obligations according to their terms. Sec. 376.286. CONTRACTS. Authorizes the district to contract with the municipality or the county for the provision of law enforcement services by the municipality or the county in the district on a fee basis to protect the public interest. Authorizes certain entities to contract with the district to implement a project of the district or assist the district in providing the services authorized under this subchapter. Specifies the terms for a contract under this section. Authorizes the district to enter into a contract, lease, or other agreement with or make or accept grants and loans to or from certain entities described in this section. 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. 376.287. INITIAL DIRECTORS. Provides that the board consists of the persons named in this section and specifies the terms for certain appointed positions. Provides that this section expires September 1, 2004. SECTION 2. Sets forth the findings of the legislature. SECTION 3. Emergency clause. Effective date: upon passage.