HBA-CBW C.S.H.B. 3194 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3194
By: Howard
Natural Resources
4/10/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Levee Improvement Districts (LIDs) are political subdivisions of the state
that  are created to construct and maintain levees and other improvements
along rivers, creeks, and streams and to provide for the proper drainage of
reclaimed land. LIDs may buy property, make loans, and issue bonds secured
by ad valorem taxation.  Fort Bend County Levee Improvement District Number
16 is composed of approximately 2321 acres of property owned by the Texas
Department of Transportation (TxDOT) and is intended to enhance the value
of the property before the General Land Office offers it for sale on behalf
of TxDOT.  C.S.H.B. 3194 creates Fort Bend County Levee Improvement
District Number 16. 

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.  3194 creates Fort Bend County Levee Improvement District Number
16 (district) (SECTION 1.01). The bill sets forth provisions regarding the
boundaries of the district (SECTION 1.03). The bill provides that the
district is governed by a board of three directors (board) appointed by the
commissioners court and sets forth provisions regarding the appointment,
qualifications, and terms of the directors, as well as the administration
and organization of the board (SECTIONS  2.01 - 2.05).   The bill requires
the board to appoint a secretary and treasurer and authorizes the board to
employ a general manager, consulting engineers, financial consultants,
attorneys, and auditors (SECTIONS 2.06 and 2.08).  The bill authorizes the
district to maintain its principal office in Fort Bend County or Travis
County if the district has not issued bonds and requires the district to
maintain its principal office in Fort Bend County if the district has
issued bonds (SECTION 2.10).   

The bill sets forth provisions regarding the powers and duties of the
district and authorizes the district to adopt and enforce rules to
implement the Act (SECTIONS 3.01 - 3.08).  The bill also sets forth
provisions regarding civil penalties and injunctions and provides that a
person who violates a rule, permit, or order of the district is subject to
a civil penalty (SECTION  3.05).  The bill sets forth provisions regarding
the disbursement of money and authorizes the district to apply for and
receive loans or grants (SECTIONS 4.01 and 4.02). The bill authorizes the
district to issue bonds, bond anticipation notes, refunding bonds, and
other obligations (SECTIONS  5.01- 5.03).  The bill sets forth provisions
regarding the district's tax exemption (SECTION 6.01). 

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

C.S.H.B. 3194 differs from the original bill by designating the Fort Bend
County Levee Improvement  District  as the Fort Bend County Levee
Improvement District Number 16 (district)  and sets forth the boundaries
for the district (SECTIONS  1.01 and 1.03).  The substitute differs from
the original bill by establishing that the district is governed by a board
of three, rather than five, directors (SECTIONS  2.01 and 2.03).  The
substitute requires the Fort Bend County Commissioners Court (commissioners
court)  to appoint one permanent director to serve a four-year term
beginning September 1, 2002, and two permanent directors to serve four-year
terms beginning September 1, 2004, and requires the commissioners court to
appoint the appropriate number of directors, rather than providing that the
directors be elected (SECTION 2.04).  

The substitute differs from the original bill by not providing a specific
range of civil penalties for a violation of district rules and removes
provisions on permits, contracts, and cooperative agreements (SECTION
3.05).  The substitute differs from the original bill by establishing that
the district is not required to pay a fee to a city for the use of the
roadway, street, alley, or easement, rather than requiring the district to
pay such a fee (SECTION 3.07). The substitute removes provisions
authorizing the district to establish  fees and charges  and  requiring the
board of directors of the district  (board) to establish a fiscal year for
the district. The substitute differs from the original bill by authorizing
the board to designate a bank as depository on terms that the board finds
proper, rather than requiring the funds of the district to be deposited in
a designated depository bank (SECTION  4.03). The substitute removes
provisions from the original regarding the approval and registration of
bonds, bonds as authorized investments, taxation, annexation and exclusion
of land from district, an initial election for permanent directors, and the
election of a president and vice president.  The substitute differs from
the original by removing the severability and emergency clauses and
modifying the effective date of the Act.  The bill modifies the powers and
duties of the district (SECTION 3.01).  The bill removes the authority of
the district to sue and be sued in the district's corporate name.  The bill
modifies provisions regarding meetings and board actions (SECTION 2.05).