HBA-DMD H.B. 2891 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2891 By: Bailey County Affairs 8/3/1999 Enrolled BACKGROUND AND PURPOSE Surrounded by the City of Houston but excluded from its corporate limits, Aldine has experienced rapid population growth along with economic decline and social change, all of which have combined to create public needs that state law does not empower a county government to serve. H.B. 2891 creates the Aldine Community Improvement District (district) as a governmental agency, body politic and corporate, and political subdivision of the state. This bill specifies the boundaries of the district and creates a board of directors (board) for the district. This bill also sets forth the powers of the district. It prohibits the district from exercising eminent domain. H.B. 2891 authorizes the board to create a nonprofit corporation to act on behalf of the district. This bill authorizes the district to issue bonds, but prohibits the district from imposing a tax, impact fee, or assessment on residential property. It requires the district to hold elections to obtain voter approval before the district imposes a maintenance tax or issues bonds. This bill provides for the dissolution of the district and authorizes the district to contract with the municipality or county to provide law enforcement services. This bill also sets forth the initial board members of the district. 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. ALDINE COMMUNITY IMPROVEMENT DISTRICT Sec. 376.261. CREATION OF A DISTRICT. Creates the Aldine Community Improvement District (district) 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 of the district (board). Sets forth that the creation of the district is essential in order to accomplish the purposes of Section 52 (Counties, Cities or Other Political Corporations or Subdivisions; Lending Credit; Grants; Bonds), Article III (Legislative Department), Section 59 (Conservation and Development of Natural Resources; Conservation and Reclamation Districts), Article XVI (General Provisions), and Section 52-a (Loan or Grant of Public Money for Economic Development), Article III, Texas Constitution, and other public purposes stated in this subchapter. Sec. 376.262. DECLARATION OF INTENT. Sets forth the purpose of the bill. Sec. 376.263. DEFINITIONS. Defines "board," "county," "district," and "municipality" in this subchapter. Sec. 376.264. BOUNDARIES. Sets forth the boundaries of the district. Sec. 376.265. FINDINGS RELATING TO BOUNDARIES. Provides that the boundaries and field notes of the district form a closure. Specifies certain provisions which are not affected if a mistake is made in the field notes or in copying the field notes in the legislative process. Sec. 376.266. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. Sets forth the benefit and purpose of the bill. Specifies the duties of the district. Sec. 376.267. APPLICATION OF OTHER LAW. Sets forth that Chapter 375 (Municipal Management Districts in General), Local Government Code, applies to the district, except as otherwise provided by this subchapter. Sec. 376.268. CONSTRUCTION OF SUBCHAPTER. Requires this subchapter to be liberally construed in conformity with the findings and purposes stated in this subchapter. Sec. 376.269. BOARD OF DIRECTORS IN GENERAL. Specifies the composition and terms of the board. Sets forth that Subchapter D (Administrative Provisions; Board of Directors), Chapter 375, Local Government Code, applies to the board to the extent that subchapter does not conflict with this subchapter. Provides that notwithstanding Section 375.071 (Quorum), Local Government Code, the imposition of a tax, assessment, or impact fee requires a vote of a majority of the directors serving. Sec. 376.270. APPOINTMENT OF DIRECTORS; VACANCY. Requires the county judge and members of the governing body of the county to appoint directors from persons recommended by the board who meet the qualifications of Subchapter D, Chapter 375, Local Government Code. 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. 376.271. POWERS OF DISTRICT. Specifies the powers of the district. Sec. 376.272. SALES AND USE TAX. (a) Authorizes the district to impose a sales and use tax. Authorizes revenue from the tax to be used for any purpose for which ad valorem tax revenue of the district is authorized to be used. (b) Prohibits the district from adopting a tax if as a result of the adoption of the tax, the combined rate of all sales and use taxes imposed by the county and other political subdivisions of this state having territory in the county would exceed two percent at any location in the district. Sec. 376.273. EMINENT DOMAIN. Prohibits the district from exercising the power of eminent domain. Sec. 376.274. 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 specified items, 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 other property. Sec. 376.275. RELATION TO OTHER LAW. Provides that if any provision of a law referenced in Section 376.271 is in conflict with or 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. 376.276. REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS. Prohibits the board from financing services and improvement projects under this subchapter unless a written petition requesting those improvements or services has been filed with the board. Specifies the persons who must sign the petition. Sec. 376.277. NONPROFIT CORPORATION. (a) 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 this subchapter authorizes. (b) Specifies the powers and authority of a nonprofit corporation created under this section. (c) Requires the board to appoint the board of directors of a nonprofit corporation created under this section who are required 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. Sec. 376.278. 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. 376.279. BONDS. (a) 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. (b) Authorizes bonds or other obligations of the district to be issued in the form of bonds, notes, certificates of participation, including other instruments evidencing 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 and authorized to be issued in bearer or registered form or not represented by an instrument but the transfer of which is registered on books maintained by or on behalf of the district. (c) Specifies the duties of the district which must obtain the municipality's approval, except as provided by Subsection (d). (d) Authorizes the district, if the district obtains the municipality's approval of a capital improvements budget for a specified period not to exceed five years, to finance the capital improvements and issue bonds specified in the budget without further municipal approval. (e) Requires the district, before the district issues bonds, to submit the bonds and the record of proceedings of the district relating to authorization of the bonds to the attorney general for approval as provided by Article 717k-8, V.T.C.S. (Bond Approval). Sec. 376.280. ASSESSMENTS. (a) Authorizes the board to impose and collect an assessment for any purpose authorized by this subchapter. (b) Provides that assessments, reassessments, or assessments resulting from an addition to or correction of the assessment roll by the district, penalties and interest on an assessment or reassessment, expenses of collection, and reasonable attorney's fees incurred by the district: (1) are a first and prior lien against the property assessed; (2) are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes; and (3) are the personal liability of and charge against the owners of the property even if the owners are not named in the assessment proceedings. (c) 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 is authorized to enforce an ad valorem tax lien against real property. Sec. 376.281. PROPERTY EXEMPTED FROM TAX, FEE, OR ASSESSMENT. (a) Prohibits the district from imposing an impact fee or assessment under Chapter 375, Local Government Code, on a residential property, multi-unit residential property, or condominium. (b) 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, or a gas utility as defined by Section 101.003 (Definitions) or 121.001 (Definition of Gas Utility), Utilities Code. Sec. 376.282. ELECTIONS. Requires the district, in addition to the elections the district must hold under Subchapter L (Elections), Chapter 375, Local Government Code, 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. 376.283. IMPACT FEES. Authorizes the district to impose an impact fee for an authorized purpose as provided by Subchapter G (Impact Fees), Chapter 375, Local Government Code. Sec. 376.284. MAINTENANCE TAX. Authorizes the district, if authorized at an election held in accordance with Section 376.282, 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. 376.285. DISSOLUTION OF DISTRICT. (a) Authorizes the district to be dissolved as provided in Subchapter M (Dissolution), Chapter 375, Local Government Code. (b) Authorizes the district, notwithstanding Section 375.264 (Limitation), to be dissolved if the district has debt. 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. 376.286. CONTRACTS. (a) Authorizes the district, to protect the public interest, to contract with the municipality or county for the provision of law enforcement services by the county or municipality in the district on a fee basis. (b) 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. Specifies the provisions for a contract under this subsection. (c) Specifies the persons, agencies, political subdivisions, and corporations with which the district is authorized to enter into a contract, lease, or other agreement or make or accept grants and loans to or from. (d) 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. Sets forth the initial composition of the board. Sets forth the terms of the initial directors. Sets forth that this section expires September 1, 2004. Sec. 376.288. ANNEXATION OF CERTAIN TERRITORY BY GOVERNING BODY OF MUNICIPALITY. (a) Authorizes the municipality's governing body, if territory in a municipality's limit or extraterritorial jurisdiction is included in the district, to remove that territory from the district if the district does not have bonded indebtedness. (b) Provides that in order to remove territory under Subsection (a), the governing body of the municipality must notify the secretary of the board of the district in writing that the territory is excluded from the district's territory. (c) Requires the governing body of the municipality, if a municipality annexes territory that is in its extraterritorial jurisdiction and included in the district, to notify the secretary of the board of the district in writing that the annexed territory is excluded from the district's territory. SECTION 2. Sets forth legislative findings. SECTION 3.Emergency clause. Effective date: upon passage.