HBA-DMD C.S.H.B. 2891 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2891
By: Bailey
County Affairs
4/12/1999
Committee Report (Substituted)



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. C.S.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. C.S.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 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 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 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.  

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, 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, municipalities, and corporations that
the district is authorized to enter into a contract, lease, or other
agreement with 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. (a) 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.  

SECTION 2. Sets forth legislative findings. 

SECTION 3.Emergency clause.
  Effective date: upon passage. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

This substitute differs from the original bill in SECTION 1 (proposed
Section 376.263, Local Government Code), by making a nonsubstantive change. 

 This substitute differs from the original bill in SECTION 1 (proposed
Section 376.272, Local Government Code), by deleting from proposed
Subsection (a) the condition that the Aldine Community Improvement District
(district) needs the authorization of a majority of the qualified voters of
the district at an election, to be authorized to impose a sales and use
tax. This substitute also deletes Subsection (c), which provides that if
the voters of the county approve the adoption of the tax at an election
held on the same election date on which another political subdivision
adopts a sales and use tax or approves the increase in the rate of its
sales and use tax and as a result the combined rate of all sales and use
taxes imposed by the district and other political subdivisions of this
state having territory in the district would exceed two percent at any
location in the county, the election to adopt a sales and use tax under
this subchapter has no effect.