HBA-MSH H.B. 741 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 741
By: Bailey
County Affairs
2/19/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Aldine is located in Harris County and is surrounded by the city of Houston
but excluded from its corporate limits.  Under current law, Harris County
is not empowered to serve many of the needs of Aldine. C.S.H.B. 741 creates
the Aldine Community Improvement District to provide administration and
funding for community improvement projects in Aldine. 

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. 

ANALYSIS

C.S.H.B. 741 amends the Local Government Code to create the Aldine
Community Improvement District (district) in the Aldine community area of
Harris County.  The bill specifies that the district is governed by a board
of nine directors (board) and sets forth guidelines concerning the
structure, composition, and powers of the board.  The bill authorizes the
district to exercise the powers of a development corporation and to
contract with the municipality or county for the provision of law
enforcement services.  The bill authorizes the board to create a nonprofit
corporation and sets forth guidelines concerning the corporation. The bill
provides that the district must obtain approval  from the governing body of
the City of Houston of plans and specifications of an improvement project
financed by bonds. 

The bill authorizes the board to impose and collect assessments.  The bill
authorizes the district to impose a sales and use tax, and specifies its
use, if authorized by a majority of the qualified voters of the district.
The bill prohibits the district from adopting a tax if the resulting
combined sales and use tax rate in the district would be greater than two
percent.  The bill authorizes the district to impose an ad valorem tax on
taxable property for specified purposes if the tax is authorized by a
majority of the voters of the district voting at an election called for
that purpose, and requires the board to determine the tax rate.  The bill
exempts from an impact fee or assessment any resident property or the
property of an electric utility, gas utility, or power generation company.

The bill prohibits the district from exercising the power of eminent
domain.  The bill authorizes the board to dissolve a district that has
debt, and requires the district to remain in existence for the purpose of
discharging its debts at which time the dissolution is effective.  The bill
names and sets forth the terms of service of the initial board members. 
 
EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 




 
COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original bill by including a gas utility or
power generation company among the entities which are exempted from the
imposition of an assessment or impact fee by the Aldine Community
Improvement District (district) and by excluding the property,
rights-of-way, and improvements of a gas utility or power generation
company from the territory of the district.