HBA-DMD C.S.S.B. 276 76(R) BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 276 By: Gallegos County Affairs 3/29/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, there is no entity in place to help improve economic development opportunities in the East End area of the city of Houston. C.S.S.B. 276 creates the Greater East End Management 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 also prohibits the district from exercising eminent domain. C.S.S.B. 276 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. GREATER EAST END MANAGEMENT DISTRICT Sec. 376.261. CREATION OF DISTRICT. Creates the Greater East End Management 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 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," "municipality," and "utility" in this subchapter. Sec. 376.264. BOUNDARIES. Sets forth the territory 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 this bill. Specifies the duties of the district. Sec. 376.267. APPLICATION OF OTHER LAW. Sets forth that Chapter 375 (Municipal Management 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. (a) Sets forth that the district is governed by a board of 15 directors (director) who serve staggered terms of four years, with seven members' terms expiring June 1 of an odd-numbered year and eight members' terms expiring June 1 of the following odd-numbered year. Authorizes the board to increase or decrease the number of directors on the board by resolution, provided that it is in the best interest of the district to do so and that the board consists of no fewer than nine and no more than 30 directors. (b) Provides 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. Sets forth that the imposition of a tax, assessment, or impact fee requires a vote of a majority of the directors serving. Authorizes the directors to vote on any matter authorized by Subchapter D, Chapter 375, and action to be taken by the board only if it is approved in the manner prescribed by Subchapter D, Chapter 375. Sec. 376.270. 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 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. EMINENT DOMAIN. Prohibits the district from exercising the power of eminent domain. Sec. 376.273. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING PROPERTY. (a) Provides that if the district, in exercising a power conferred by this subchapter, requires a relocation, adjustment, raising, lowering, rerouting, or changing of the grade or the construction of any of the following items, the district must take that required action at the sole expense of the district. Specifies the required actions that the district must take at the expense of the district. (b) Requires the district to bear damages that are suffered by owners of the facility or other property. Sec. 376.274. RELATION TO OTHER LAW. Provides that if any provision of general law, including a law referenced in this subchapter, is in conflict with or is 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. 376.275. 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. 376.276. 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 authorized by this subchapter. (b) Requires the board to appoint the board of directors of a nonprofit corporation created under this section. Requires the board of directors of the nonprofit corporation 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. (c) Sets forth 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. (d) Authorizes a nonprofit corporation created under this section to implement any project and provide any services authorized by this subchapter. Sec. 376.277. 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. 376.278. 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 are authorized 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. Authorizes the board to impose and collect an assessment under Subchapter F (Assessments), Chapter 375, Local Government Code, for any purpose authorized by this subchapter or by Chapter 375. (c) Specifies the duties of the district which must obtain the municipalities 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 Chapter 53, Article 717k-8, V.T.C.S. (Bond Approval). Sec. 376.279. 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. 376.280. PROPERTY EXEMPTED FROM TAX, FEE, OR ASSESSMENT. (a) Prohibits the district from imposing a tax, impact fee, or assessment 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 a utility. Sec. 376.281. ELECTIONS. (a) 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. (b) Authorizes the board to submit multiple purposes in a single proposition at an election. Sec. 376.282. 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. 376.283. MAINTENANCE TAX. (a) Authorizes the district, if authorized at an election held in accordance with Section 376.281, 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. (b) Requires the board to determine the tax rate. Sec. 376.284. WORKFORCE DEVELOPMENT SERVICES AND PROJECTS. (a) Requires the district, as soon as possible after its creation, to develop and implement a plan for workforce development services. Specifies the development services. (b) Provides that the district's initial plan under Subsection (a) must be for a period of at least five years. Requires the district, for the first five years of the plan, to allocate to the services listed in Subsection (a) not less than three percent of its assessment revenues. (c) Authorizes the district to develop and implement additional plans under Subsection (a). (d) Specifies the district's authority in order to assist in implementing this section. Sec. 376.285. DISSOLUTION OF DISTRICT. Authorizes the district to be dissolved as provided by Subchapter M (Dissolution), Chapter 375, Local Government Code. 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 the county for the municipality or county to provide law enforcement services in the district for a fee. (b) Authorizes the municipality, the 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 authorizations for a contract under this subsection. (c) Specifies the areas in which 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. Sets forth the initial members 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 376.264, Local Government Code) by modifying the boundaries of the district. In proposed Section 376.269, the substitute increases the number of directors from 13 to 15 and increases the number of directors whose terms expire on certain dates. In proposed Section 376.287, the substitute replaces some of the directors specifically named in the original bill.