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).