SRC-SEW S.B. 470 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 470
77R2271 MXM-FBy: Gallegos
Intergovernmental Relations
4/18/2001
As Filed


DIGEST AND PURPOSE 

Under current law, Harris County does not have the power to serve many of
the needs of Aldine, which is located in Harris County and surrounded by
Houston but is excluded from Houston's corporate limits.  As proposed, S.B.
470 creates the Aldine Community Improvement District to provide
administration and funding for community improvement projects in Aldine so
that the community of Aldine can keep pace with the rapid population growth
in that area. 

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.  ALDINE COMMUNITY IMPROVEMENT DISTRICT

Sec. 376.451.  CREATION OF DISTRICT.  Creates the Aldine Community
Improvement District (district) as a special district under Section 59
(Conservation and Development of Natural Resources; Conservation and
Reclamation Districts), Article XVI, Texas Constitution. Authorizes the
directors of the district (board) to change the district's name. 

 Sec. 376.452.  DECLARATION OF INTENT.  Provides reasons as to why the
creation of  the district is necessary.  Provides that the district is
created to supplement and not supplant county services provided in the area
in the district and prohibits the creation of the district and this
legislation from being interpreted to relieve the county from providing
services or to release the county from the obligations the entity has to
provide services to that area.  Provides that the creation of the district
is essential to accomplish the purposes of Section 52 (Counties, Cities, or
Other Political Corporations or Subdivisions; Lending Credit, Grants,
Bonds), Article III, Section 59, Article XVI, and Section 52-a (Loan or
Grant of Public Money for Economic Development), Article III, Texas
Constitution, and other public purposes stated in this chapter. 

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

 Sec. 376.454.  BOUNDARIES.  Specifies the boundaries of the district.

Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  Provides that the
boundaries and field notes of the district form a closure.  Prohibits a
mistake made in the field notes or in copying the field notes in the
legislative process from affecting in any way the district's organization,
existence, validity, right to issue any type of bond for the purposes for
which the district is created or to pay the principal of and interest on a
bond, or its right to impose or collect an assessment or tax, legality or
operation. 

 Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a) Provides
findings of benefit. 

(b) Provides findings of purpose.

  (c) Sets forth guidelines concerning the district's duties and goals.

(d) Provides that pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary components
of a street and are considered to be a street or road improvement. 

(e)  Prohibits the district from acting as the agent or instrumentality of
any private interest even though many private interests will be benefited
by the district, as will the general public. 

Sec. 376.457.  APPLICATION OF OTHER LAW.  Provides that, except as
otherwise provided by this subchapter, Chapter 375 applies to the district. 

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
concerning the board of directors who govern the district.   

Sec. 376.460.  APPOINTMENT AND REMOVAL OF DIRECTORS.  Provides guidelines
for appointment and removal of directors, except that for the purposes of
this subchapter references in Sections 375.064 and 375.065 to the governing
body of the municipality mean the commissioners court of the county. 

Sec. 376.461.  QUORUM.  Provides that Section 375.071 does not apply to the
district. Provides that one-half of the board constitutes a quorum.
Provides that, except as provided in Section 376.462, a concurrence of a
majority of a quorum is required for any official district action. 

Sec. 376.462.  VOTE REQUIRED FOR AUTHORIZATION OF ASSESSMENTS, BONDS,
IMPACT FEES, AND TAXES.  Requires a majority vote of the directors serving
to authorize the imposition of an assessment, impact fee, or tax.  Requires
the written consent of at least two-thirds of the full membership of the
board to authorize the issuance of bonds. 

Sec. 376.463.  EXERCISE OF POWERS OF DEVELOPMENT CORPORATION. Authorizes
the district to exercise the powers of a corporation created under Section
4B, Development Corporation Act of 1979 (Article 5190.6, V.T.C.S.). 

Sec. 376.464.  AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT.  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. 

Sec. 376.465.  CONTRACT WITH POLITICAL SUBDIVISION.  Authorizes the
municipality, 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.  Sets forth guidelines for a contract
under this subsection. 

Sec. 376.466.  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 a board of directors of a nonprofit
corporation created under this section.  Requires such a board of directors
to serve in the same manner, term, and conditions as a board of directors
of a local government corporation created under Chapter 431(Texas
Transportation 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 service that this subchapter
authorizes. 

Sec. 376.467.  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. 376.468.  MUNICIPAL APPROVAL.  Requires the district, except as
provided by Subsection (b), to obtain certain types of approval from the
municipality's governing body. Authorizes the district, if it obtains
approval from the municipality's governing body of a capital improvements
budget for a period not to exceed five years, to finance the capital
improvements and issue bonds specified in the budget without further
approval from the municipality. Requires the district to obtain approval
from the municipality's governing body of the plans and specifications of
any district improvement project related to the use of land owned by the
county, an easement granted by the county, or a right-of-way of a street,
road, or highway. Provides that, except as provided by Section 375.263, a
municipality is not obligated to pay any bonds, notes, or other obligations
of the district. 

Sec. 376.469.  ASSESSMENTS.  Authorizes the board to impose and collect an
assessment for any purpose authorized by this subchapter. Sets forth
guidelines concerning 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.
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 may enforce an
ad valorem tax lien against real property. 

Sec. 376.470.  SALES AND USE TAX.  (a) Authorizes the district to impose a
sales and use tax if authorized by a majority of the qualified voters of
the district voting at an election called for that purpose.  Authorizes
revenue from the tax to be used for any purpose for which ad valorem tax
revenue of the district may be used. 

(b)  Prohibits a district from adopting a tax under this subchapter if as a
result of the adoption of the tax the combined rate of all sales and use
taxes imposed by the county and other political subdivisions of this state
having territory in the county would exceed two percent at any location in
the district. 

(c)  Sets forth circumstances under which an election to adopt a sales and
use tax under this subchapter would have no effect. 

Sec. 376.471.  MAINTENANCE TAX.  Authorizes the district, if authorized at
an election held in accordance with Section 376.472, to impose and collect
an annual ad valorem tax on taxable property in the district for certain
stated purposes.  Requires the board to determine the  tax rate. 

Sec. 376.472.  ELECTIONS.  (a) Requires the district, in addition to the
elections the district must hold under Chapter 375L, to 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.  Authorizes the board to include more than one
purpose in a single proposition at an election. 

Sec. 376.473.  PROPERTY EXEMPTED FROM TAX, FEE, OR ASSESSMENT.   Prohibits
the district from imposing an impact fee or assessment under Chapter 375 on
a residential property, multiunit residential property, or condominium.
Prohibits the district from imposing an assessment or impact fee on an
electric utility's property.  Defines "electric utility." 

Sec. 376.474.  NO EMINENT DOMAIN POWER.  Prohibits the district from
exercising the power of eminent domain. 

Sec. 376.475.  EXCEPTION FOR DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBTS.  Authorizes the board to vote to dissolve a district that has debt.
Requires the district, if the vote is in favor of dissolution, to remain in
existence solely for the limited purpose of discharging its debts.
Provides that the dissolution is effective when all debts have been
discharged.  Provides that Section 375.264 does not apply to the district. 

SECTION 2.  Presents legislative findings.

SECTION 3.  Provides that Sections 375.062 and 376.460, Local Government
Code, as added by this Act, do not apply to the initial board of directors
of the Aldine Community Improvement District. Specifies, by name, who will
be on the initial board of directors.  Provides that, of the initial
directors, those appointed for positions one through four serve until June
1, 2003, and those appointed for positions five through nine serve until
June 1, 2005.   

SECTION 4.  Effective date:  upon passage or September 1, 2001.