BILL ANALYSIS

S.B. 1251

By: Gallegos

County Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Currently, the makeup of the 15-member board of directors (board) of the Greater East End Management District (district) is statutorily required to include no less than nine residents of the district with the remaining members having no less than a 10 percent ownership interest in a district businesses.

As current statute requires that 60 percent of the board be residents of the district, concerns have arisen that the business interests of the district have not been properly represented.  This bill reduces the total number of directors who must be a resident of the district.  This will allow the board to open up seats to individuals who can provide important subject matter expertise.  Such diversity in membership will increase the efficiency of the district, assist the district in advancing its defined objectives, and potentially result in a reduction of costs.  In sum, the changes established in the bill provide for a greater diversity in the membership of the board.

S.B. 1251 amends current law relating to the board of directors of the Greater East End Management District.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

ANALYSIS

SECTION 1.  Amends Sections 3807.052(a) and (b), Special District Local Laws Code, as follows:

(a) Requires the mayor and members of the governing body of the City of Houston to appoint directors from persons recommended by the board of directors of the Greater East End Management District (board; district) and the state senator and state representative who represents the largest area of the district as of April 1, 2010.  Deletes existing text requiring a person, notwithstanding Subchapter D, Chapter 375, Local Government Code, to be qualified as director, to be at least 18 years of age and be a resident of the district, or have a district business interest.

(b) Requires appointments to the board to ensure that at least one-third, rather than 60 percent, of the directors are residents of the district.  Deletes existing text requiring that appointments to the board ensure that each director who does not reside in the district has a district business interest.  Makes nonsubstantive changes.

SECTION 2.  Repealer:  Section 3807.052(c) (relating to district business interest), Special District Local Laws Code.

SECTION 3.  (a) Makes application of this Act prospective.

(b) Provides that the change in law made by this Act does not affect the right of a person appointed to the board before the effective date of this Act to continue to serve on the board until the person's term expires.

EFFECTIVE DATE

Effective date:  upon passage or September 1, 2011.