SRC-DPW C.S.H.B. 2894 76(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2894
76R14202 MXM-FBy: Coleman (Ellis)
Intergovernmental Relations
5/13/1999
Committee Report (Substituted)


DIGEST 

Currently, Midtown Houston is being revitalized by the Midtown
Redevelopment Authority, in conjunction with a tax increment reinvestment
zone established by the city.  This bill would create the Midtown
Management District and authorize the district to impose a tax and issue
bonds. 

PURPOSE

As proposed, C.S.H.B. 2894 creates the Midtown Management District and
authorizes the district to impose a tax and issue bonds. 

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
H, as follows: 

SUBCHAPTER H. MIDTOWN MANAGEMENT DISTRICT

Sec. 376.301. CREATION OF DISTRICT. Provides that the Midtown Management
District (district) is created as a special district under Section 59,
Article XVI, Texas Constitution. Authorizes the board of directors of the
district (board) to change the name of the district. Provides that the
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas
Constitution. 

Sec. 376.302. DECLARATION OF INTENT. Sets forth the declaration of intent
relating to the creation of the district. 

Sec. 376.303. DEFINITIONS. Defines "board," "county," "district,"
"municipality," and "utility." 

Sec. 376.304. BOUNDARIES. Sets forth territory contained in the district. 

Sec. 376.305. FINDINGS RELATING TO BOUNDARIES. Sets forth findings relating
to the boundaries. 

Sec. 376.306. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. Sets forth the
findings relating to public benefit and purpose.  Provides that the
district will not act as the agent as or instrumentality of any private
interest even though many private interests will benefit by the district,
as will the general public.   

Sec. 376.307. APPLICATION OF OTHER LAW. Provides that Chapter 375 applies
to the district, its governing body, and its employees; and that the
district has rights and powers of a district created under Chapter 375. 

Sec. 376.308. LIBERAL CONSTRUCTION OF SUBCHAPTER. Requires the subchapter
to be liberally construed in conformity with the findings and purposes
stated in this subchapter. 

Sec. 376.309. BOARD OF DIRECTORS IN GENERAL. Provides that the district is
governed  by a 17 member board whose members serve terms of four years,
eight of which expire on June 1 of an odd-numbered year and nine of which
expire on June 1 of an even-numbered year. Requires each member of the
board of directors (director) to receive compensation as provided by
Section 49.060, Water Code. 

Sec. 376.310. APPOINTMENT OF DIRECTORS.  Sets forth procedures for the
appointment of directors.  Entitles district directors to governmental
immunity for their official actions. 

Sec. 376.311. EX OFFICIO BOARD MEMBERS. Requires directors of specified
departments, the chief of police of the municipality, the county's general
manager of the Metropolitan Transit Authority, and the presidents of any
institution of higher learning located in the district, to serve as ex
officio board members. Sets forth a procedure for reappointing a director
of a department required to be an ex officio member whose department has
been consolidated, renamed, changed, or abolished.  Authorizes the board to
appoint the presiding officer of a nonprofit corporation that is actively
involved in activities in the municipality's midtown area to serve as a
nonvoting ex officio director. 

Sec. 376.312. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. Authorizes a
director to participate in all board votes and decisions, and provides that
Chapter 171 governs conflicts of interest for board members, except as
provided in this section.  Provides that Section 171.004 does not apply to
the district.  Requires a director who has a substantial interest in a
business or charitable entity with will receive a pecuniary benefit from a
board action to file a one-time affidavit declaring the interest and
provides that an additional affidavit is not required if such an interest
changes.  Authorizes the director to participate in a discussion or vote on
that action under certain conditions, after the affidavit is filed with the
board secretary.  Prohibits a director who is an officer or employee of a
public entity from participating in the discussion of  or vote on a matter
regarding a contract with that same public entity.  Establishes the
criteria for a substantial interest in a charitable entity. 

Sec. 376.313. ADDITIONAL POWERS OF DISTRICT. Authorizes the district to
exercise powers given to a corporation created under Section 4B,
Development Corporation Act of 1979 (Article 5190.6, V.T.C.S.).  Authorizes
the district to exercise the powers given to a housing finance corporation
created under Chapter 394 to provide housing or residential development
projects in the district.  Authorizes the district to impose an ad valorem
tax, assessment, or impact fee in accordance with Chapter 375 on all
property in the district. 

Sec. 376.314. AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL AGREEMENTS, AND
LAW ENFORCEMENT SERVICES. Authorizes the district to make an agreement with
or accept a donation, grant, or loan from any person.  Provides that the
implementation of a project is a governmental function or service for the
purposes of Chapter 791, Government Code.  Authorizes the district to
contract with certain governmental bodies to provide law enforcement
services. 

Sec. 376.315. NONPROFIT CORPORATION. Authorizes the board to authorize the
creation of a nonprofit corporation to assist 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
(nonprofit board) created under this section.  Sets forth duties, powers,
and authorizations of the nonprofit board.  

Sec. 376.316. ANNEXATION. Authorizes the district annex territory as
provided by Chapter 375C and territory located inside the boundaries of a
reinvestment zone provided that the governing body of the municipality
consents. 

Sec. 376.317. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS.
Prohibits the board from financing a service or improvement project without
a written petition, required to be signed by certain persons, and filed
with the board.   

Sec. 376.318. ELECTIONS. Requires the district to hold an election to
obtain voter approval before imposing a maintenance tax or issues bonds
payable from ad valorem taxes or assessments.  Authorizes the board to
include more than one purpose in a single proposition at an election.   
 
Sec. 376.319. MAINTENANCE TAX. Authorizes the district, if authorized at an
election held in accordance with Section 376.318, to impose and collect an
annual ad valorem tax on taxable property in the district.  Requires the
board to determine the tax rate. 

Sec. 376.320. ASSESSMENT. Authorizes the board to impose and collect an
assessment for any purpose authorized by this subchapter.  Sets forth
characteristics and properties of such assessments. Sets forth procedures
for imposing the assessments.   

Sec. 376.321. CERTAIN RESIDENTIAL PROPERTY IN NOT EXEMPT.  Provides that
Section 375.161 does not apply to the district. 

Sec. 376.322. UTILITIES. Prohibits the district from imposing an assessment
or impact fee on a utility's property. 

Sec. 376.323. MUNICIPAL APPROVAL. Requires the district to obtain approval
from certain governing bodies of the district, except as provided by
Subsection (b).  Authorizes the district to finance capital improvements
and issue bonds specified in the capital improvements budget if the
district obtains approval.  Requires the district to obtain approval for
projects related to use of land owned by the municipality, an easement
granted by the municipality, or a right-ofway of a street, road, or
highway.  Provides that the municipality is not obligated to pay any bonds,
notes, or other obligations of the district.  

Sec. 376.324. DISBURSEMENTS OR TRANSFERS OF FUNDS. Requires the board to
establish the number of directors' signatures and the procedure required
for a disbursement or transfer of the district's money. 

Sec. 376.325. COMPETITIVE BIDDING LIMIT. Provides that Section 375.221 does
not apply to the district unless the contract is for more than $25,000. 

Sec. 376.326. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBTS.
Authorizes the board to vote to dissolve a district that has debt.
Requires a district to remain in existence for the limited purpose of
discharging debts, if the vote is in favor of dissolution.  Provides that
the dissolution is effective when debts have been discharged. Provides that
Section 375.264 does not apply to the district.   

SECTION 2. Provides that the legislature finds that all procedures,
provisions, publications, and requirements relating to the passage of this
Act have been completed and met. 

SECTION 3. Sets forth the initial membership of the board and the terms of
the initial directors.   

SECTION 4.Emergency clause.
  Effective date: upon passage.