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.