SRC-LBB H.B. 3578 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 3578
By: Wong (Ellis, Rodney)
Intergovernmental Relations
5/22/2003
Engrossed


DIGEST AND PURPOSE 

The Upper Kirby Management District (district) was created by Chapter 275,
Acts of the 75th Legislature, Regular Session, 1997.  In 1998, by
resolution of its board of directors (filed with the Texas Commission on
Environmental Quality), the district changed its name to Harris County
Improvement District No. 3.  

H.B. No. 3578 relates to the powers and duties of the district. The
district functions as a municipal management district for the Kirby Drive
area within the corporate limits of the City of Houston. It manages a
number of government functions in conjunction with the city, including
specific improvement projects and programs pertaining to utility systems,
public safety, public recreation, mobility, transportation, esthetic
maintenance, and economic development. A major initiative of the District
is the relocation of overhead utility facilities and lines along its
primary corridors.  

H.B. 3578 updates the district's enacting statue to reflect the correct
name of the district as "Harris County Improvement District No. 3".   This
bill, in connection with utility facility relocation, augments existing
district authority to focus assessment programs only on adjacent
landowners who directly benefit from the relocations and improvements, at
the request of the landowners. 

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 the heading to Subchapter E, Chapter 376, Local
Government Code,  to read as follows: 

SUBCHAPTER E.  HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3

SECTION 2.  Amends Section 376.151(a), Local Government Code, to provide
that a special district to be known as the "Harris County Improvement
District No. 3" exists as a governmental agency, body politic and
corporate, and political subdivision of the state. 

SECTION 3.  Amends Section 376.153(2), Local Government Code, to redefine
"District."  

SECTION 4.  Amends Section 376.165, Local Government Code, by adding
Subsections (g) and (h), as follows: 

(g)  Authorizes an assessment to be imposed on only a part of the district
if only that part will benefit from the service or improvement. 

(h)  Prohibits the board from imposing an assessment or financing a
service or improvement project under this subchapter unless a written
petition requesting the improvement or service has been filed with the
board.  Requires the petition to be signed by certain individuals. 
 SECTION 5.  Amends Section 376.170, Local Government Code, as follows:

Sec.  376.170.  EXEMPTION OF PUBLIC UTILITY FROM FEE OR ASSESSMENT.
Prohibits the district from imposing an impact fee or assessment on the
property, equipment, or facilities of an electric utility as defined by
Section 31.002, Utilities Code, a gas utility as defined by Section
101.003 or 121.001, Utilities Code, a telecommunications provider as
defined by Section 51.002, Utilities Code, or a cable operator as defined
by 47 U.S.C. Section 522, as amended. 

SECTION 6.  Amends Subchapter E, Chapter 376, Local Government Code, by
adding Section 376.171, as follows: 

Sec. 376.171.  USE OF ELECTRICAL OR OPTICAL LINES.  (a)  Authorizes the
district to impose an assessment to pay the cost of: 

(1)  burying or removing electrical power lines, telephone lines, cable or
fiber optic lines, or any other type of electrical or optical line; 

   (2)  removing poles and any elevated lines using the poles; and

(3)  reconnecting the lines described by Subdivision (2) to the buildings
or other improvements to which the lines were connected. 

(b)  Authorizes the district to acquire, operate, or charge fees for the
use of the district conduits for: 

  (1)  another person's:

   (A)  telecommunications network;
   (B)  fiber-optic cable; or
   (C)  electronic transmission line; or

  (2)  any other type of transmission line or supporting facility.

 (c)  Prohibits the district from requiring a person to use a district
conduit. 

SECTION 7.  Amends Subchapter E, Chapter 376, Local Government Code, by
adding Section 376.172, as follows: 

Sec. 376.172.  PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES.  (a)
Authorizes the district to acquire, lease as lessor or lessee, construct,
develop, own, operate, and maintain a public transit system to serve the
area within the boundaries of the district. 

(b) Requires a petition to be filed with the district requesting the
action with regard to a public transit system, before the district may act
under Subsection (a). Requires the petition to be signed by owners of
property representing a majority of either the total assessed value or the
area of the real property in the district that abuts the right-of-way in
which the public transit system is proposed to be located. Provides that
the determination of a majority is based on the property owners along the
entire right-of-way of the proposed transit project and may not be
calculated on a block-by-block basis. 

(c)  Authorizes the district to acquire, lease as lessor or lessee,
construct, develop, own, operate, and maintain certain parking facilities. 

(d)  Requires a parking facility of the district to be either leased to or
operated on behalf of the district by a private entity or an entity other
than the district. Provides that the district's parking facilities are a
program authorized by the  legislature under Section 52-a, Article III,
Texas Constitution, and accomplish a public purpose under that section
even if leased or operated by a private entity for a term of years. 

(e)  Provides that the district's public parking facilities and any lease
to a private entity are exempt from the payment of ad valorem taxes and
state and local sales and use taxes. 

(f)  Authorizes the district to use any of its resources, including
revenues, assessments, taxes, and grant or contract proceeds, to pay the
cost of acquiring and operating a public transit system or public parking
facilities. 

(g)  Authorizes the district to adopt rules and regulations covering its
public transit system or its public parking facilities except that any
rules relating to or affecting the use of the public right-of-way or
requirements for off-street parking must be subject to all applicable
municipal charter, code, or ordinance requirements. 

(h)  Authorizes the district to set and impose fees, charges, or tolls for
the use of the public transit system or the public parking facilities and
to issue bonds or notes to finance the cost of these facilities. 

(i)  Provides that, except as provided by Subsection (b), if the district
pays for or finances the cost of acquiring or operating a public transit
system or public parking facilities with resources other than assessments,
a petition of property owners or a public hearing is not required. 

(j)  Requires the district to pay to the taxing unit in which the property
is located, on or before January 1 of each year, as a payment in lieu of
taxes, an amount equal to the ad valorem taxes that otherwise would have
been levied for the preceding tax year on that real property by the taxing
unit, without including the value of any improvements constructed on the
property, if the district's acquisition of property for a parking facility
that is leased to or operated by a private entity results in the removal
from a taxing unit's tax rolls of real property otherwise subject to ad
valorem taxation. 

SECTION 8.  (a)  Provides that the legislature validates and confirms all
acts and proceedings of the Harris County Improvement District No. 3 and
the district's board of directors that occurred before the effective date
of this Act, including changing the district's name from the "Upper Kirby
Management District" to "Harris County Improvement District No. 3." 

(b)  Provides that this section does not apply to any matter that on the
effective date of this Act: 

(1)  is involved in litigation, if the litigation ultimately results in
the matter being held invalid by a final judgment of a court with
jurisdiction; or 
  (2)  has been held invalid by a court with jurisdiction.

SECTION 9.  Effective date:  upon passage or September 1, 2003.