SRC-JXG S.B. 1684 76(R)BILL ANALYSIS


Senate Research CenterS.B. 1684
By: Bernsen
Intergovernmental Relations
6/29/1999
Enrolled


DIGEST 

Currently, municipal management districts are authorized by general law to
issue bonds for a variety of purposes and to make such bonds payable out of
a combination of revenue sources. However, the East Montgomery County
Improvement District (district) was not authorized in its enabling
legislation to issue bonds until the viability and effectiveness of the
district had been demonstrated and until a procedure for the orderly
payment and discharge of bonded indebtedness secured by sales tax revenues
was adopted. The district has been active for approximately two years; it
implemented and maintained a variety of highly successful community
service, safety, and crime prevention programs; it demonstrated the
financial and administrative capabilities of the district; and is presently
in need of the ability to finance capital improvement projects through the
issuance of the district bonds. S.B. 1684 will authorize the district to
contract for the lease, operation, and management of improvement projects
for the district; issue bonds for all other municipal management districts;
and eliminate the requirement that funds collected within the boundaries of
the district be expended outside the district. 

PURPOSE

As enrolled, S.B. 1684 sets forth provisions for the operation of the East
Montgomery County Improvement District. 

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 Section 16, Chapter 1316, Acts of the 75th Legislature,
Regular Session, 1997, by adding Subsection (d), to authorize the East
Montgomery County Improvement District (district) to have the economic
development powers and authority conferred on a home-rule municipality with
a population of more than 100,000 pursuant to Chapter 380, Local Government
Code, and Article 835s, V.T.C.S.  

SECTION 2. Amends Chapter 1316, Acts of the 75th Legislature, Regular
Session, 1997, by adding Section 30A, as follows: 

Sec. 30A. BONDS. Authorizes the board of directors of the district to issue
bonds as provided by Chapter 375J, Local Government Code. Authorizes the
bonds issued by the district to be secured and made payable, wholly or
partly, by a pledge of any part of the net proceeds the district receives
from a specified portion of no more than one-half of the maximum sales and
use tax amount authorized and approved by voters of the district under
Section 22 of this Act, in addition to the sources described in Chapter
375J, Local Government Code. 

SECTION 3. Repealers: Section 29, Chapter 1316, Acts of the 75th
Legislature, Regular Session, 1997 (Application of certain tax proceeds)
and Section 30, Chapter 1316, Acts of the 75th Legislature, Regular
Session, 1997 (Limitation on indebtedness). 

SECTION 4. Effective date: September 1, 1999.

SECTION 5. Emergency clause.