SRC-ARR C.S.H.B. 2891 76(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2891
By: Bailey (Gallegos)
Intergovernmental Relations
5/13/1999
Committee Report (Substituted)


DIGEST 

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
would create the Aldine Community Improvement District as a governmental
body politic and corporate, and political subdivision of the state.  

PURPOSE

As proposed, C.S.H.B. 2891 creates the Aldine Community Improvement
District as a government body politic and corporate, and political
subdivision of the state.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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 DISTRICT. Provides that a special district to be
known as the "Aldine Community Improvement District" (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 of the district (board). 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. 376.262. DECLARATION OF INTENT. Sets forth the declaration of intent
of the district.  

 Sec. 376.263. DEFINITIONS. Defines "board," "district," and "municipality."

 Sec. 376.264. BOUNDARIES. Sets forth the boundaries of the district. 

Sec. 376.265. FINDINGS RELATING TO BOUNDARIES. Sets forth the findings
related to the boundaries.  

Sec. 376.266. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. Sets forth the
findings of benefit and public purpose.  

Sec. 376.267. APPLICATION OF OTHER LAW. Provides that Chapter 375 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 purpose stated in
this subchapter.   
 
Sec. 376.269. BOARD OF DIRECTORS IN GENERAL. Sets forth the composition of
the board. Provides that Chapter 375D applies to the board to the extent
that subchapter does 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.  

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 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. 376.271. POWERS OF DIRECTORS. Sets forth the powers of the directors.

Sec. 376.272. SALES AND USE TAX. 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 may be used.  Prohibits a
district from adopting a tax under this subchapter 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 that have
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. Requires the district to take certain action at the sole expense
for the district of certain needed construction. Requires the district to
bear the damages that are suffered by owners of the facility or other
property.  

Sec. 376.275. RELATION TO OTHER LAW. Provides that this subchapter
prevails, if any provision of a law referenced in Section 376.271 is in
conflict with or is inconsistent with this subchapter. Provides that any
law reference 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. Sets
forth certain requirements for financing services and improvements.  

Sec. 376.277. NONPROFIT CORPORATION. Sets forth requirements for creating a
nonprofit corporation.  

Sec. 376.278. DISBURSEMENT OR TRANSFER OF FUNDS. Requires the board by
resolution to establish the number of directors' signatures and the
procedure required for a disbursement of transfer of the district's money.

 Sec. 376.279. BONDS. Sets forth requirements for the district to issue
bonds.  

Sec. 376.280. ASSESSMENTS. Authorizes the board to impose and collect an
assessment for any purpose authorized by this subchapter. 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 are subject to certain provisions.
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. 376.281. PROPERTY EXEMPTED FROM TAX, FEE, OR ASSESSMENT. Prohibits the
district from imposing an impact fee or assessment under Chapter 375 on
residential property, multi-unit residential property, or a 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, Utilities Code or a gas utility as defined by Section
101.003 or 121.001, Utilities Code.  

Sec. 376.282. 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. 376.283. IMPACT FEES. Authorizes the district to impose an impact fee
for an authorized purpose under Chapter 375G 

Sec. 376.284. MAINTENANCE TAX. Authorizes the district 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.
Require the board to determine the tax rate.  

Sec. 376.285. DISSOLUTION OF DISTRICT. Authorizes the district to be
dissolved as provided in Chapter 375M. Sets forth certain circumstance for
dissolving the district.  

 Sec. 376.286. CONTRACTS. Sets forth the requirements for certain contracts.

Sec. 376.287. INITIAL DIRECTORS. Sets forth the initial composition of the
board. Sets forth the terms for the initial directors. Provides that this
section expires September 1, 2004. 

Sec. 376.288. ANNEXATION OF CERTAIN TERRITORY BY GOVERNING BODY OF
MUNICIPALITY. Authorizes a municipality to remove that territory from the
district if the district does not have bonded indebtedness, if territory in
a municipality's limit or extraterritorial jurisdiction in included in the
district. Authorizes the governing body of the municipality to notify the
secretary of the board of the district in writing that the territory is
excluded from the district's territory. Requires the governing body of the
municipality to notify the secretary of the board of the district in
writing that the annexed territory is excluded from the district's
territory, if a municipality annexes territory that is in its
extraterritorial jurisdiction and included in the district.  

SECTION 2. Sets forth the legislative findings. 

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