BILL ANALYSIS

H.B. 1300

By: Turner, Chris

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Like many other cities in the North Texas region, Kennedale, a town of nearly 6,000, is growing at a fast pace. Although the population is growing, there is a dearth of mixed-use facilities within the city limits. As a result, many residents must leave the city limits to shop and work, causing the city to lose much-needed sales tax and related revenue. 

Currently, a future development site with an existing 44,000 square-foot building is adjacent to the Kennedale city campus, which includes the city hall, police station, library, and senior citizen center. It is the vision of the city to develop this into a mixed-use facility for retail and other uses and make it the central focus of Kennedale. H.B. 1300 gives the city the tools to accomplish this goal. Once complete, the district will include eight buildings for retail and office use, a park, a special event area, and the local chamber of commerce headquarters.

H.B. 1300 creates the Kennedale TownCenter Development District and provides it the authority to impose taxes and issue bonds to develop the area for mixed use.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1300 amends the Special District Local Laws Code to create the Kennedale TownCenter Development District in the city of Kennedale. The bill sets forth the nature, purpose, and criteria for the creation of the district; the membership size, composition, appointment, removal, vacancy, and terms of the board of directors of the district, including provisions relating to a conflict of interest of a board director; the powers and duties of the district, including establishing that the district has the powers of road districts, road utility districts, conservation and reclamation districts, and municipal management districts; authorization of the district to make certain monetary agreements with any person; establishment of district projects as a government function or service for the purpose of the Interlocal Cooperation Act; authorization of the district to contract with a municipality or county to provide law enforcement services for a fee; and the procedures for the dissolution of the district at a later date.

The bill sets forth financial provisions including competitive bidding requirements; the authority of the district to impose a property tax, assessment, or impact fee for district purposes; authority to issue of bonds or other obligations; election procedures to obtain voter approval before the imposition of a property tax or the issuance of bonds payable from property tax revenue; requirements for a petition by property owners within the district requesting services or improvements financed by assessment; and requirements to obtain approval of the governing body of the City of Kennedale for the district to take certain actions relating to the issuance of bonds for an improvement project and plans and specifications of certain improvement projects. The bill provides legislative findings regarding the bill's compliance with notice and other requirements.  The bill sets forth the initial boundaries of the district and defines "board" and "district."

H.B. 1300 adds a temporary provision, set to expire January 1, 2011, to provide for the appointment of the initial members of the board of directors.

EFFECTIVE DATE

On passage, or, if the act does not receive the necessary vote, the act takes effect September 1, 2009.