SRC-PNG S.B. 276 76(R) BILL ANALYSIS
Senate Research Center S.B. 276
By: Gallegos
Intergovernmental Relations
2/22/1999
As Filed
DIGEST
Currently, there is no entity in place to help improve economic development
opportunities in the East End area of the City of Houston, one of the
oldest and most historic districts in Texas. This bill creates the Greater
East End Management District to assist area businesses by building and
maintaining additional infrastructure, improving the safety of the area,
and coordinating job training and workforce development.
PURPOSE
As proposed, S.B. 276 creates the Greater East End Management District, and
authorizes the issuance of bonds, and the imposition of taxes by that
entity.
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
G, as follows:
SUBCHAPTER G. GREATER EAST END MANAGEMENT DISTRICT
Sec. 376.261. CREATION OF DISTRICT. Creates a special district, the
"Greater East End Management District" (district), which 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 district (board). Establishes
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. 376.262. DECLARATION OF INTENT. Provides that the creation of the
district is necessary to accomplish certain goals in the Greater East End
area of the City of Houston. Establishes that the creation of the district
is not to be interpreted as relieving the county or the municipality from
providing a certain level of services. Provides that the district is
created to supplement and not supplant provided municipal or county
services in the area. Establishes that the legislature has established a
program to accomplish the public purposes set out in Section 52-a, Article
III, Texas Constitution, with the creation of the district and in
authorizing the municipality, county, and other political subdivisions to
contract with the district.
Sec. 376.263. DEFINITIONS. Defines "board," "district," "municipality,"
and "county."
Sec. 376.264. BOUNDARIES. Sets forth the legal boundaries of the
district.
Sec. 376.265. FINDINGS RELATING TO BOUNDARIES. Provides that the
boundaries and field notes of the district form a closure. Provides that
if a mistake is made in the field notes or in copying the field notes in
the legislative process, the mistake does not affect the organization,
existence, and validity of the district, certain rights of the district, or
the legality or operation of the district or its governing body.
Sec. 376.266. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. Provides that all
the land and other property included in the district will be benefited by
the improvements and services to be provided by the district under powers
conferred by Section 52, Article III, Section 59, Article XVI, and Section
52-a, Article III, Texas Constitution, and other powers granted under this
subchapter, and provides that the district is created to serve a public use
and benefit. Sets forth the public purposes for the creation of this
district. Requires the district to promote certain public purposes.
Establishes that pedestrian ways, street lighting and landscaping, and
street art objects are necessary components of a street and are considered
a street or road improvement. Prohibits the district from acting as the
agent or instrumentality of any private interest.
Sec. 376.267. APPLICATION OF OTHER LAW. Provides that Chapter 375
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. Provides that the district
is governed by a board of 12 directors, one of whom is required to be a
resident of the district, and sets forth the terms of office for the board.
Authorizes the board to increase or decrease the number of directors by
resolution, within a prescribed range. Establishes that Chapter 375D
applies to the board to the extent the subchapter does not conflict with
this subchapter. Provides that an imposition of a tax, assessment, or
impact fee requires a majority vote from the serving directors of the
board. Authorizes the directors to vote on any matter authorized by
Chapter 375D, and authorizes an action to be taken by the board only if it
is approved in the manner prescribed by Chapter 375D.
Sec. 376.270. APPOINTMENT OF DIRECTORS; VACANCY. Requires the mayor and
members of the governing body of the municipality to appoint directors from
among the qualified persons recommended by the board. Requires a vacancy
in the office of the 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. Sets forth 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. Requires the district to take certain actions at the sole
expense of the district, if the district requires a relocation, adjustment,
raising, lowering, rerouting, or changing the grade or the construction of
certain items. Requires the district to bear damages that are suffered by
the owners of the facility or other property.
Sec. 376.274. RELATION TO OTHER LAW. Provides that if any provision of a
law referenced in this subchapter is in conflict with or is inconsistent
with this subchapter, this subchapter prevails. Establishes 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 district 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 individuals.
Sec. 376.276. 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 created under this section.
Requires the nonprofit corporation board of directors 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. Establishes that a nonprofit corporation created
under this section has the powers of and is considered for the 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. 376.277. DISBURSEMENTS OR TRANSFERS OF FUNDS. Requires the board by
resolution to establish the number of directors' signatures and the
procedure required for disbursement or transfer of the district's money.
Sec. 376.278. BONDS. 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. Authorizes bonds or other obligations of the district to be
issued in the form of bonds, notes, certificates of participation, or other
obligations that are issued in the exercise of the district's borrowing
power or in a form not represented by an instrument but with their transfer
registered on books maintained by or on behalf of the district. Authorizes
the board to impose and collect an assessment under Chapter 375F, for any
purpose authorized by this subchapter or by Chapter 375. Requires the
district to obtain the municipality's approval of certain items or for
certain actions. Authorizes the district to finance capital improvements
and issue bonds specified in the budget without further municipal approval,
if the district obtains the municipality's approval of a capital
improvements budget for a specified period not to exceed five years.
Requires the district to submit bonds and the record of proceedings of the
district relating to the authorization of the bonds to the attorney general
for approval as provided by Article 717K-8, V.T.C.S., before the district
issues bonds.
Sec. 376.279. ASSESSMENTS. Authorizes the board to impose and collect an
assessment for any purpose authorized by this subchapter. Sets forth
assertions concerning 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.
Establishes 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 may enforce
an ad valorem tax lien against real property.
Sec. 376.280. 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 an electric utility as defined by
Section 31.002, Utilities Code.
Sec. 376.281. ELECTIONS. Requires the district to hold an election, in
addition to the required elections in Chapter 375L, to obtain voter
approval of a maintenance tax or issuance of bonds payable from ad valorem
taxes or assessments in the same manner as required under Chapter 375L.
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 Chapter 375G.
Sec. 376.283. MAINTENANCE TAX. Authorizes the district to impose and
collect an annual ad valorem tax on taxable property for maintenance and
operation of the district, improvements by the district, or the provision
of services, if authorized at an election. Requires the board to determine
the tax rate.
Sec. 376.284. WORKFORCE DEVELOPMENT, WORKFORCE EDUCATION, AND JOB
TRAINING OPPORTUNITIES. Requires the district, as part of its first
service plan, to participate in the establishment and implementation of job
training, workforce education, and workforce development opportunities for
a certain time period. Establishes that such opportunities may include but
are not limited to certain activities and programs. Requires the district
to allocate no less than three percent of its assessment revenues to these
types of activities during the initial three-year period. Authorizes the
district to create a nonprofit corporation to assist or act on behalf of
the district to implement this section, without limiting the general
applicability of Section 376.276.
Sec. 376.285. DISSOLUTION OF THE DISTRICT. Authorizes the district to be
dissolved as provided in Chapter 375M. Requires the district to remain in
existence solely for the limited purpose of discharging its bonds or other
obligations, if the district has debt and is dissolved.
Sec. 376.286. CONTRACTS. Authorizes the district to contract with the
municipality or the county for the provision of law enforcement services by
the municipality or the county in the district on a fee basis. Authorizes
the municipality, county, or another political subdivision of the state, to
contract with the district to implement a project of the district or assist
the district in providing the services authorized under this subchapter,
without further authorization. Authorizes a contract under this subsection
to contain certain terms. Authorizes the district to enter into a contract,
lease, or other agreement with or accept grants to or from certain
governmental entities and certain corporations and individuals. 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 names of the initial
board of directors. Sets forth the terms of office for the board of
directors. Provides that this section expires September 1, 2004.
SECTION 2. Sets forth the findings of the legislature, providing that
proper notice of the intention to introduce this Act was published as
provided by law, and the notice and copy of this Act has been furnished to
the required individuals and entities. Establishes that the Texas Natural
Resource Conservation Commission has filed its recommendation concerning
this Act with the proper authorities within the required time. Provides
that the general law relating to consent by political subdivisions to the
creation of certain districts and the inclusion of land in those districts
has been complied with. Provides that all constitutional and legal
requirements with respect to the notice, introduction, and passage of this
Act are fulfilled.
SECTION 3. Emergency clause.
Effective date: upon passage.