BILL ANALYSIS

H.B. 4727

By: Olivo

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

H.B. 4727 authorizes the Sienna Plantation Management District to construct and finance public transit and parking facilities to serve the district and clarifies provisions governing the district to make them consistent with provisions currently used for similar management districts.

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. 4727 amends the Special District Local Laws Code to entitle a director of the Sienna Plantation Management District to receive fees of office of not more than $150 per day and reimbursements for actual expenses incurred while engaging in activities on behalf of the district. The bill specifies that provisions specifying a director is not entitled to compensation and that a board position is not a civil office of emolument do not apply to directors of the Sienna Plantation Management District. The bill specifies provisions related to competitive bidding and disadvantaged businesses for a municipal management district do not apply to the district. The bill makes provisions for construction, equipment, materials, and machinery contracts applicable to district bidding processes.

H.B. 4727 authorizes the district to annex and exclude land, and specifies that provisions requiring the board to call a hearing on the exclusion of land or other property from the district at the request of a landowner or property owner do not apply to the district. The bill specifies that the district is authorized to impose a property tax for any purpose and includes the construction or acquisition of improvements as an acceptable purpose. The bill specifies that a limitation on taxes used for recreational facilities levied by a district located in or adjacent to a county with a population of more than 3.3 million does not apply to taxes imposed by the district.    

H.B. 4727 removes language describing specific types of bonds or other obligations the district is authorized to issue and instead authorizes the district to borrow money on terms determined by the board. The bill specifies that provisions related to approval by the attorney general and registration of bonds for a municipal management district do not apply to a loan, line of credit, or other debt from a bank or financial institution secured by revenue other than property taxes, and specifies that the district is not subject to law prohibiting the outstanding principal amount of a bond, note, or other obligation issued to finance parks and recreational facilities from exceeding one percent of the value of taxable property in the district. The bill requires the board, on bonds payable wholly or partly from property taxes, to provide for the annual imposition of a continuing direct property tax, without limit as to rate or amount, while all or part of the bonds are outstanding as required. The bill authorizes the district to acquire, construct, finance, operate, or maintain any authorized improvement or service using any money available to the district. The bill authorizes the district to mail notice of a hearing relating to a proposed improvement project or service by certified or first class United States mail as determined by the department.

H.B. 4727 authorizes the district to acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain a public transit system or and a parking facility or system of parking facilities. The bill authorizes a district parking facility to be leased to, or operated for the district by, an entity other than the district. The bill specifies the district's parking facilities are a program authorized by the legislature, serve the public purposes of the district, and are owned, used, and held for a public purpose even if leased or operated by a private entity for a term of years. The bill exempts a district public parking facility and any lease to a private entity from the payment of property taxes and state and local sales and use taxes. The bill authorizes the district to adopt rules covering its public transit system or its public parking facilities and use any district resource to pay the cost of acquiring or operating such a system or facility. The bill authorizes the district to set, charge, impose, and collect fees, charges, or tolls for the use of such a system or facility and issue bonds or notes to finance the cost of the system or facility.       

EFFECTIVE DATE

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