76(R) HB 3799 Senate committee report

SRC-ARR H.B. 3799 76(R)BILL ANALYSIS


Senate Research CenterH.B. 3799
76R11628 JJT-DBy: Coleman (Gallegos)
Intergovernmental Relations
5/6/1999
Committee Report (Amended)


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 and its governing body and employees, 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. 376.3125. EX OFFICIO BOARD MEMBERS. Requires certain persons to serve
as a nonvoting ex officio director. Authorizes the board to appoint a
director of the consolidated, renamed, or changed department as a nonvoting
ex officio board member, if the department described by Subsection (a) is
consolidated, renamed, or changed. Authorizes the board to appoint a
representative of another department of the municipality that performs
duties comparable to those performed by the abolished department, if a
department described by Subsection (a) is 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. 376.3128. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. Authorizes a
director to participate in all board votes and decisions. Provides that
Chapter 171 governs conflicts of interest for board members. 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 that will receive
a pecuniary benefit from a board action to file a one-time affidavit
declaring the interest. Provides that an additional affidavit is not
required if the director's interest changes. Authorizes the director to
participate in a discussion or vote on that action if certain conditions
exist, after the affidavit is filed with the board secretary. Prohibits a
director who is also an officer or employee of a public entity from
participating in the discussion of or voteing on a matter regarding a
contract with that same public entity. Provides that a director has a
substantial interest in a charitable entity in the same manner that a
person would have a substantial interest in a business entity under Section
171.002, for purposes of this section. 

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. 376.325. 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.  

Sec. 376.327. COMPETITIVE BIDDING UNIT. Provides that Section 375.221 does
not apply to the district unless the contract is for more than $25,000.  

Sec. 376.328. ANNEXATION. Authorizes the district to annex certain
territory if the governing body of the municipality consents to the
annexation.  

Sec. 376.329. 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 the municipality or the county for the municipality or county
to provide law enforcement services in the district for a fee. 

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.

SUMMARY OF COMMITTEE CHANGES

SECTION 1. 

Amends Section 376.304, Local Government Code,  to set forth additional
boundaries of the district. 

Amends Section 376.306, Local Government Code, to delete text requiring the
district to eliminate unemployment and underemployment. Makes conforming
changes.  

Amends Section 376.307, Local Government Code, to provide that Chapter 375
applies to the district and its governing body and employees. 

Amends Section 376.311, Local Government Code, to provide that the district
has certain powers, including the powers given to a housing finance
corporation created under Chapter 394 to provide housing or residential
development projects in the district. Makes conforming changes.  

 Adds a new Section 376.3125, Local Government Code, regarding ex officio
board members. 

Adds a new Section 376.3128, Local Government Code, regarding conflicts of
interest and a one-time affidavit.  
 
Deletes proposed Section 376.324, Local Government Code, regarding
workforce development services and projects.  

 Adds a new Section 376.327, Local Government Code, regarding a competitive
bidding unit. 

 Adds a new Section 376.328, Local Government Code, regarding annexation.

  Adds a new Section 376.329, Local Government Code, regarding certain
agreements. 

SECTION 3. 

Amends SECTION 3 to provide that the initial board of directors of the East
Downtown Management District consists of certain persons, including Alferd
H. Bennett, rather than Alfred Bennet and Harold A. Odom, III, rather than
Al Odam.