SRC-ARR H.B. 3799 76(R) BILL ANALYSIS
Senate Research Center H.B. 3799
76R11628 JJT-DBy: Coleman (Gallegos)
Intergovernmental Relations
5/3/1999
Engrossed
DIGEST
Currently, no entity exists to help improve economic development
opportunities in the east downtown and Chinatown areas of Houston. H.B.
3799 would establish a special district to be known as the "East Downtown
Management District"to improve economic development in certain areas in
Houston.
PURPOSE
As proposed, H.B. 3799 creates the East Downtown Management District and
provides authority 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. EAST DOWNTOWN MANAGEMENT DISTRICT
Sec. 376.301. CREATION OF DISTRICT. Provides that a special district to be
known as the "East Downtown Management 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 East Downtown Management
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. 376.302. DECLARATION OF INTENT. Sets forth the intent of the
legislature relating to the creation of the district.
Sec. 376.303. DEFINITIONS. Defines "board," "county," "district,"
"municipality," and "utility."
Sec. 376.304. BOUNDARIES. Sets forth the boundaries of the district.
Sec. 376.305. FINDINGS RELATING TO BOUNDARIES. Sets forth certain findings
relating to the boundaries.
Sec. 376.306. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. Set forth certain
findings of benefit and public purpose.
Sec. 376.307. APPLICATION OF OTHER LAW. Provides that Chapter 375 applies
to the district, except as otherwise provided by this subchapter.
Sec. 376.308. CONSTRUCTION. Requires this chapter to be liberally construed
in conformity with findings and purposes stated in this subchapter.
Sec. 376.309. BOARD OF DIRECTORS IN GENERAL. Sets forth certain
requirements for the board of directors.
Sec. 376.310. APPOINTMENT OF DIRECTORS; VACANCY. Requires the mayor and
members of the governing body of the municipality 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 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. 376.311. POWERS OF THE DISTRICT. Sets forth the powers of the
district.
Sec. 376.312. EMINENT DOMAIN. Prohibits the district from exercising the
power of eminent domain.
Sec. 376.313. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING
PROPERTY. Requires the district to take required action at the sole expense
of the district for certain items, if the district, in exercising a power
conferred by this subchapter, requires construction of certain items.
Requires the district to bear damages that are suffered by owners of the
facility or other property.
Sec. 376.314. RELATION TO OTHER LAW. Provides that this chapter prevails,
if any provisions of general law, including 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. 376.315. 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. Requires the petition to be signed
by certain persons.
Sec. 376.316. 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 (nonprofit board) created under this
section. Requires the nonprofit board 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, Transportation
Code. Provides that a nonprofit corporation created under this section has
the powers of and is considered for purposes of this subchapter 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. 376.317. 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. 376.318. BONDS. Sets forth the requirements for the issuance of bonds.
Requires the district to obtain the municipality's approval of certain
items, except as provided by Subsection (d). Authorizes the district to
finance the capital improvements and issue bonds specified in the budget
without further municipal approval, if the district obtains the
municipality's approval of a capital improvement budget for a specified
period not to exceed five years. Requires the district to submit the bonds
and records of proceedings of the district relating to authorization of the
bonds to the attorney general for approval as provided by Chapter 53, Acts
of the 70th Legislature, 2nd Called Session, 1987, before the district
issues bonds.
Sec. 376.319. ASSESSMENTS. Authorizes the board to impose and collect an
assessment for any purpose authorized by this subchapter. Provides that
certain assessments resulting from an addition to or correction of the
assessment or reassessment, expenses of collection, and reasonable
attorney's fees incurred by the district are certain liens and liability.
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 manner that the board may enforce an ad
valorem tax lien against real property.
Sec. 376.320. PROPERTY EXEMPTED FROM 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 a utility.
Sec. 376.321. 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. 376.322. IMPACT FEES. Authorizes the district to impose an impact fee
for an authorized purpose as provided by Chapter 375G.
Sec. 376.323. 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.
Requires the board to determine the tax rate.
Sec. 376.324. WORKFORCE DEVELOPMENT SERVICES AND PROJECTS. Requires the
district to develop and implement a plan for workforce development
services, as soon as possible after its creation. Authorizes the services
to include certain projects. Requires the district's initial plan under
Subsection (a) to be for a period of at least five years. Requires the
district to allocate to the services listed in Subsection (a) not less than
three percent of its assessment revenues, for the first five years of the
plan. Authorizes the district to develop and implement additional plans
under Subsection (a). Authorizes the district, to assist in implementing
this section, to take certain action.
Sec. 376.325. DISSOLUTION OF DISTRICT. Authorizes the district to be
dissolved as provided by Chapter 375M. Requires the district to remain in
existence solely for the limited purpose of discharging its bonds or other
obligations according to their terms, if the district has debt and is
dissolved.
Sec. 376.326. CONTRACTS. Authorizes the district to contract with the
municipality or the county for the municipality or county to provide law
enforcement services in the district for a fee. Authorizes other
organizations to contract with the district to implement a project of the
district or assist the district in providing the services authorized under
this subchapter. Authorizes a contract under this subsection to include
certain terms. Authorizes the district to enter into a contract, lease, or
other agreement with or make or accept grants and loans from certain
entities. 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.
SECTION 2. Sets forth certain findings of the legislature.
SECTION 3. Provides that notwithstanding Section 376.309, Local Government
Code, as added by this Act, the initial board of directors of the East
Downtown Management District consists of certain persons. Provides that
certain members' terms expire June 1, 2003 and June 1, 2001.
SECTION 4. Emergency clause.
Effective date: upon passage.