SRC-MKV, SEW  H.B. 1990 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1990
77R1031 KSD-FBy: Turner, Sylvester (Whitmire)
Intergovernmental Relations
5/2/2001
Engrossed


DIGEST AND PURPOSE 

A recent survey found that residents in the near northwest area of Houston
have concerns about public safety and economic decline in the area.
Municipal management districts have been used in other parts of the city
and around the state to promote and coordinate economic growth and public
welfare.  H.B. 1990 creates the Near Northwest Management District in the
city of Houston.  

RULEMAKING AUTHORITY

This bill does not expressly 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
K, as follows: 

SUBCHAPTER K.  NEAR NORTHWEST MANAGEMENT DISTRICT
 
Sec. 376.451.  CREATION OF DISTRICT.  Provides that a special district to
be known as the "Near Northwest Management District" (district) 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).  Provides
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. 376.452.  DECLARATION OF INTENT.  Provides the declaration of intent.

Sec. 376.453.  DEFINITIONS.  Defines "board," "county," "district,"
"municipality," and "utility."  

Sec. 376.454.  BOUNDARIES.  Provides that the district includes all the
territory contained in the area bounded by T.C. Jester Boulevard on the
east, Pinemont Drive on the south, Hollister Drive projected to State Road
249 on the west, and State Road 249 on the north as those roads exist on
the effective date of this Act.  

Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  Provides findings relating
to boundaries. 

Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  Provides findings
of benefit and public purpose. 

Sec. 376.457.  APPLICATION OF OTHER LAW.  Provides that, except as
otherwise provided by this subchapter, Chapter 375 applies to the district
and its governing body and employees.  
 
Sec. 376.458.  CONSTRUCTION OF SUBCHAPTER.  Requires this subchapter to be
liberally construed in conformity with the findings and purposes stated in
this subchapter. 

Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL.  Sets forth guidelines
regarding the board of directors of the district. 

Sec. 376.460.  APPOINTMENT OF DIRECTORS; VACANCY.  Sets forth guidelines
regarding the appointment of directors and vacancies on the board.  

Sec. 376.461.  POWERS OF DISTRICT.  Sets forth guidelines regarding the
rights, powers, privileges, authority, and functions of the district. 

Sec. 376.462.  SALES AND USE TAX.   Prohibits the district from imposing a
sales and use tax.  
 
Sec. 376.463.  EMINENT DOMAIN.  Prohibits the district from exercising the
power of eminent domain.  

Sec. 376.464.  EX OFFICIO BOARD MEMBERS.  Sets forth guidelines regarding
ex officio directors. 

Sec. 376.465.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.  (a) Provides
that, except as provided in this section, a director is authorized to
participate in all board votes and decisions; and Chapter 171 governs
conflicts of interest for board members.  
 
(b)  Provides that Section 171.004 does not apply to the district.
Requires a director who has a substantial interest in a business or
charitable entity that will receive a pecuniary benefit from a board action
to file a one-time affidavit declaring the interest. Provides that an
additional affidavit is not required if the director's interest changes.
Authorizes a director, after the affidavit is filed with the board
secretary, to participate in a discussion or vote on that action under
certain conditions.  
  
(c) Prohibits a director who is also an officer or employee of a public
entity from participating in the discussion of or vote on a matter
regarding a contract with that same public entity.  
 
(d)  Provides that, for purposes of this section, a director has a
substantial interest in a charitable entity in the same manner that a
person would have a substantial interest in a business entity under Section
171.002.  

Sec. 376.466.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING
PROPERTY.  Requires the district, if it, in exercising a power conferred by
this subchapter, requires a relocation, adjustment, raising, lowering,
rerouting, or changing of the grade or the construction of certain items,
to take that required action at the sole expense of the district. Requires
the district to bear damages that are suffered by owners of the facility or
other property.  

Sec. 376.467.  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. 376.468.  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.  Requires the petition to be
signed by certain persons. 
 
Sec. 376.469.  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)  Provides 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. 376.470.  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. 376.471.  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 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 Chapter 375F, for any purpose
authorized by this subchapter or by Chapter 375.  

 (c)  Requires that, except as provided by Subsection (d), the district
obtain the municipality's approval of certain plans and actions. 
  
 (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 that before the district issues bonds, the district 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 1202 (Examination and Registration of Public Securities),
Government Code.  

Sec. 376.472.  ASSESSMENTS.  (a)  Authorizes the board to impose and
collect an assessment for any purpose authorized by this subchapter.  

 (b)  Sets forth provisions relating to 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. 
  
(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. 376.473.  PROPERTY EXEMPTED FROM FEE OR ASSESSMENT.  (a)  Prohibits
the district from imposing an impact fee or assessment on a residence
homestead as defined by Section 11.13 (Residence Homestead), Tax Code. 

(b)  Prohibits the district from imposing an impact fee or assessment on
the property, equipment, or facilities of a utility.  

Sec. 376.474.  ELECTIONS.  (a)  Requires that, in addition to the elections
the district must hold under Chapter 375L, the district 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. 376.475.  IMPACT FEES.  Authorizes the district to impose an impact
fee for an authorized purpose as provided by Chapter 375G.  

Sec. 376.476.  MAINTENANCE TAX.  (a)  Authorizes the district, if
authorized at an election held in accordance with Section 376.474, 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. 376.477.  DISSOLUTION OF DISTRICT.  Authorizes the district to be
dissolved as provided by Chapter 375M.  Requires that if the district has
debt and is dissolved, the district remain in existence solely for the
limited purpose of discharging its bonds or other obligations according to
their terms.  

Sec. 376.478.  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. Authorizes a
contract under this subsection to meet certain criteria. 

 (c)  Authorizes the district to enter into a contract, lease, or other
agreement with or make or accept grants and loans to or from certain
entities. 
 
 (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. 376.479.  ANNEXATION.  Authorizes the district to annex territory as
provided by  Chapter 375C and annex territory located inside the boundaries
of a reinvestment zone created by the municipality under Chapter 311 (Tax
Increment Financing Act), Tax Code, if the governing body of the
municipality consents to the annexation.  

Sec. 376.480.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL AGREEMENTS, AND
LAW ENFORCEMENT SERVICES.  (a)  Authorizes the district to make an
agreement with or accept a donation, grant, or loan from any person.  

 (b) Provides that the implementation of a project is a governmental
function or service for the purposes of Chapter 791 (Interlocal Cooperation
Contracts), Government Code.  

(c)  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.  
 
SECTION 2.  Sets forth legislative findings.
 
SECTION 3.  Sets forth the composition of the initial board of directors of
the Near Northwest Management District. 
  
SECTION 4.  Effective date: upon passage or September 1, 2001.