C.S.H.B. 1685 78(R)   BILL ANALYSIS


C.S.H.B. 1685
By: Woolley
Urban Affairs
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

C.S.H.B. 1685 relates to the purpose, powers and duties of Harris County
Improvement District No. 1 (the "District").  The District is a municipal
management district, created in Chapter 1026, Acts of the 70th
Legislature, Regular Session, 1987.  The District is located within the
corporate limits of the City of Houston, Texas, and encompasses
approximately 500 acres.  The District is bounded generally by Loop 610 on
the eastern border, Woodway on the north, Chimney Rock on the west, and
Highway 59 on the southern boarder.  Within the District is located over
$2.15 billion in assessed real property value.  The district includes the
Galleria shopping center as well as numerous hotels and up-scale
restaurants and other shopping venues.  The District is empowered by its
enabling legislation to perform many functions and it focuses on
transportation improvements for this traffic-congested and important sales
tax generating region.  C.S.H.B. 1685 sets forth legislative findings of
fact in connection with the District, clarifies the powers and duties of
the District, and validates acts and proceedings of the District prior to
the effective date of the Act. 


RULEMAKING AUTHORITY

This bill does not expressly delegate any additional rulemaking authority
to a state office, department, institution or agency. 

SECTION BY SECTION ANALYSIS
SECTION 1. Legislative Findings
The bill sets forth certain findings of the fact in connection with the
District including: its prominence as one of the State's most dynamic
activity centers; its struggle with an inadequate transportation system
including inadequate system of streets and public parking facilities; its
dependence on the motor vehicle for transport of workers and visitors to
the area, and its resulting congestion; the absence of parking facilities,
including park and ride facilities; its focus on safety measures for
pedestrians and person driving motor vehicles; and the finding that the
provisions of public transit and public parking facilities would lead to
significant improvements in air pollution, traffic congestion, and
economic activity.   

The findings also include  notice that the District will take advantage of
al public and private funds and the opportunities available and be
empowered to enter into contracts as necessary with others to provide the
parking facilities and public transit that are needed.   

SECTION 2.Amends Chapter 1026, Acts of the 70th Legislature, Regular
Session, 1987, by adding a new Section 5A.   
Subsection (A) provides that the District shall have the power to acquire,
lease as lessor or lessee, construct, develop, own, operate and maintain a
public transit system within the boundaries of the District.   

Prior to doing so, the District must receive a petition requesting the
improvement of a facility executed by the owners representing either a
majority in value or a majority in square footage of the real property in
the District that is abutting the right-of way in which the improvement of
facility is proposed.  The calculation of the property owner signing the
petition shall be based on the landowners located along the entire
right-of-way of the total transit project and not on a block-by-block
basis.   

 Subsection (B) provides that the District shall have the power to
acquire, lease as lessor or as lessee, construct, develop, own, operate
and maintain parking facilities or a system of parking facilities.  The
terms of which are defined.  The Subsection provides that all parking
facilities of the District will either be leased to or operated by a
private entity or an entity other an the District.  The Subsection
provides that the District's parking facilities will serve the public
purposes described in the Legislative Findings set forth in the bill.  The
District's parking facilities will be exempt form the payment of ad
valorem taxes and state and local sales and use taxes.   

Subsection (C) provides that the District may use any of its resources
including revenues, assessments, taxes or grants or contract proceeds to
pay the cost of acquiring and operating the public transit system and a
system of public parking facilities.  The District may adopt rules and
regulations covering its public transit system and parking system, and may
set, impose and collect fees, charges and tolls for the use of the public
transit and public parking systems.  The District's rules relating to or
affecting the sue of the public right-of-way or requirements for
off-street parking shall be subject to all applicable municipal
requirements. The Subsection provides that if the District does not use
public funds, then no petition of property owners as described in
Subsection (A) is required provided however that a petition of property
owners is required prior to expenditures relating to a public transit
system. 

Subsection (D) provides that the District is authorized to make contracts,
leases and agreements and accept grants and loans to carry out the
purposes of the Act, under the terms and provisions as the governing body
of the District shall determine. 

Subsection (E) provides that if the District's acquisition of real
property results in the removal of that property from a taxing unit's tax
rolls, the District shall pay to each relevant taxing unit an amount equal
to the ad valorem taxes that otherwise would have been levied for the
preceding year on that real property without including the value of any
improvements constructed on that property. 

SECTION 3.Validation Provision
The section provides that the Legislature validates and confirms all
governmental acts and proceedings of the District that occur prior to the
effective date of the Act.  Normal legal restrictions to the validation
clause are included. 

SECTION 4.  Effective Date Clause.

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

The Committee Substitute makes two changes to the bill as filed.  First, a
clause is added to ensure that any rules relating to or affecting the use
of public right-of-way and off-street parking shall be subject to all
applicable municipal requirements.  Second, language is added to the bill
that requires the District to make payments in lieu of taxes to all
relevant taxing units in the amount equal to the amount of taxes that
otherwise would have been paid to the taxing units for the preceding tax
year, without including the value of any improvements on that property.