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BILL ANALYSIS

 

 

 

C.S.S.B. 1601

By: Zaffirini

Special Purpose Districts

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

Interested parties note that the City of  Laredo's downtown is in need of revitalization to attract more tourism and business activity because an ailing economy and drug-related violence across the border in Nuevo Laredo have led to a decline in the area's economic activity. The parties contend that a municipal management district would assist the city by levying taxes and issuing bonds to fund certain road and economic development projects. C.S.S.B. 1601 seeks to address this issue.

 

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

 

C.S.S.B. 1601 amends the Special District Local Laws Code to create the Central Laredo Municipal Management District to provide certain improvements, projects, and services for public use and benefit. The bill provides for, among other provisions, dissolution of the district by the City of Laredo. The district's powers and duties include, subject to certain requirements and limitations, the authorization to issue obligations and impose assessments and property taxes.  The district is prohibited from exercising the power of eminent domain.

 

EFFECTIVE DATE

 

On passage, or, if the bill does not receive the necessary vote, September 1, 2013.

 

COMPARISON OF ORIGINAL AND SUBSTITUTE

 

While C.S.S.B. 1601 may differ from the engrossed version in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the engrossed and committee substitute versions of the bill.

 

SENATE ENGROSSED

HOUSE COMMITTEE SUBSTITUTE

SECTION 1.  Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 3862 to read as follows:

CHAPTER 3862.  CENTRAL LAREDO MUNICIPAL MANAGEMENT DISTRICT

 

SUBCHAPTER A.  GENERAL PROVISIONS

 

Sec. 3862.001.  DEFINITIONS.

 

Sec. 3862.002.  CREATION AND NATURE OF DISTRICT.

 

Sec. 3862.003.  PURPOSE; LEGISLATIVE FINDINGS. 

 

Sec. 3862.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. 

 

Sec. 3862.005.  DISTRICT TERRITORY. 

 

Sec. 3862.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. 

 

Sec. 3862.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. 

 

Sec. 3862.008.  LIBERAL CONSTRUCTION OF CHAPTER. 

 

SUBCHAPTER B.  BOARD OF DIRECTORS

Sec. 3862.051.  GOVERNING BODY; TERMS.  The district is governed by a board of seven directors who serve staggered terms of four years expiring June 1 of each odd-numbered year.

 

Sec. 3862.052.  QUALIFICATIONS OF DIRECTORS APPOINTED BY CITY. 

 

Sec. 3862.053.  APPOINTMENT OF DIRECTORS. 

 

Sec. 3862.054.  VACANCY. 

 

Sec. 3862.055.  DIRECTOR'S OATH OR AFFIRMATION.

 

Sec. 3862.056.  QUORUM.

 

Sec. 3862.057.  OFFICERS.

 

Sec. 3862.058.  COMPENSATION; EXPENSES. 

 

Sec. 3862.059.  LIABILITY INSURANCE.

 

Sec. 3862.060.  NO EXECUTIVE COMMITTEE. 

 

Sec. 3862.061.  BOARD MEETINGS.

 

Sec. 3862.062.  INITIAL DIRECTORS.  (a)  The initial board consists of:

Pos. No.   Name of Director

1Jorge Verduzco

2Raul Perales

3Rick Norton

4Larry Friedman

5Roque Haynes

6Viviana Frank

7Rafael Torres

 

 

(b)  The terms of the initial directors expire June 1, 2015.

(c)  Of the directors who replace an initial director, the terms of directors serving in positions 1, 2, 3, and 4 expire June 1, 2017, and the terms of directors serving in positions 5, 6, and 7 expire June 1, 2019.

(d)  Section 3862.052 does not apply to this section.

(e)  This section expires September 1, 2019.

 

SUBCHAPTER C.  POWERS AND DUTIES

 

Sec. 3862.101.  GENERAL POWERS AND DUTIES. 

 

Sec. 3862.102.  IMPROVEMENT PROJECTS AND SERVICES.

 

Sec. 3862.103.  DEVELOPMENT CORPORATION POWERS. 

 

Sec. 3862.104.  NONPROFIT CORPORATION.

 

Sec. 3862.105.  AGREEMENTS; GRANTS.

 

Sec. 3862.106.  LAW ENFORCEMENT SERVICES. 

 

Sec. 3862.107.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS.

 

Sec. 3862.108.  ECONOMIC DEVELOPMENT.

 

Sec. 3862.109.  PARKING FACILITIES.

 

Sec. 3862.110.  NO EMINENT DOMAIN POWER. 

 

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS; ASSESSMENTS

 

Sec. 3862.151.  DISBURSEMENTS AND TRANSFERS OF MONEY. 

 

Sec. 3862.152.  MONEY USED FOR IMPROVEMENTS OR SERVICES. 

 

Sec. 3862.153.  PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS WITH ASSESSMENTS.

 

Sec. 3862.154.  METHOD OF NOTICE FOR HEARING. 

 

Sec. 3862.155.  ASSESSMENTS; LIENS FOR ASSESSMENTS. 

 

Sec. 3862.156.  LIMITATION ON AMOUNT OF CERTAIN ASSESSMENTS. 

 

Sec. 3862.157.  TAX AND ASSESSMENT ABATEMENTS. 

 

SUBCHAPTER E.  TAXES AND BONDS

 

Sec. 3862.201.  BONDS AND OTHER OBLIGATIONS. 

 

Sec. 3862.202.  BOND MATURITY. 

 

Sec. 3862.203.  TAXES FOR BONDS AND OTHER OBLIGATIONS.

 

Sec. 3862.204.  ELECTIONS REGARDING TAXES. 

 

SUBCHAPTER F.  DISSOLUTION

 

Sec. 3862.251.  DISSOLUTION BY CITY ORDINANCE. 

 

Sec. 3862.252.  COLLECTION OF ASSESSMENTS AND OTHER REVENUE. 

 

Sec. 3862.253.  CONCURRENCE ON ADDITIONAL POWERS. 

 

Sec. 3862.254.  ASSUMPTION OF ASSETS AND LIABILITIES.

SECTION 1.  Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 3862 to read as follows:

CHAPTER 3862.  CENTRAL LAREDO MUNICIPAL MANAGEMENT DISTRICT

 

SUBCHAPTER A.  GENERAL PROVISIONS

 

Sec. 3862.001.  DEFINITIONS. 

 

Sec. 3862.002.  CREATION AND NATURE OF DISTRICT. 

 

Sec. 3862.003.  PURPOSE; LEGISLATIVE FINDINGS. 

 

Sec. 3862.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. 

 

Sec. 3862.005.  DISTRICT TERRITORY. 

 

Sec. 3862.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. 

 

Sec. 3862.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. 

 

Sec. 3862.008.  LIBERAL CONSTRUCTION OF CHAPTER. 

 

SUBCHAPTER B.  BOARD OF DIRECTORS

Sec. 3862.051.  GOVERNING BODY; TERMS.  The district is governed by a board of nine directors who serve staggered terms of four years expiring June 1 of each odd-numbered year.

 

Sec. 3862.052.  QUALIFICATIONS OF DIRECTORS APPOINTED BY CITY. 

 

Sec. 3862.053.  APPOINTMENT OF DIRECTORS. 

 

Sec. 3862.054.  VACANCY. 

 

Sec. 3862.055.  DIRECTOR'S OATH OR AFFIRMATION.

 

Sec. 3862.056.  QUORUM.

 

Sec. 3862.057.  OFFICERS. 

 

Sec. 3862.058.  COMPENSATION; EXPENSES. 

 

Sec. 3862.059.  LIABILITY INSURANCE. 

 

Sec. 3862.060.  NO EXECUTIVE COMMITTEE. 

 

Sec. 3862.061.  BOARD MEETINGS. 

 

Sec. 3862.062.  INITIAL DIRECTORS.  (a)  The initial board consists of:

Pos. No.   Name of Director

1Jorge Verduzco

2Raul Perales

3Rick Norton

4Larry Friedman

5Roque Haynes

6Viviana Frank

7Rafael Torres

8Javier B. Santos

9Anselmo Robledo

(b)  The terms of the initial directors expire June 1, 2015.

(c)  Of the directors who replace an initial director, the terms of directors serving in positions 1, 2, 3, 4, and 5 expire June 1, 2017, and the terms of directors serving in positions 6, 7, 8, and 9 expire June 1, 2019.

(d)  Section 3862.052 does not apply to this section.

(e)  This section expires September 1, 2019.

 

SUBCHAPTER C.  POWERS AND DUTIES

 

Sec. 3862.101.  GENERAL POWERS AND DUTIES. 

 

Sec. 3862.102.  IMPROVEMENT PROJECTS AND SERVICES. 

 

Sec. 3862.103.  DEVELOPMENT CORPORATION POWERS. 

 

Sec. 3862.104.  NONPROFIT CORPORATION. 

 

Sec. 3862.105.  AGREEMENTS; GRANTS. 

 

Sec. 3862.106.  LAW ENFORCEMENT SERVICES. 

 

Sec. 3862.107.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS. 

 

Sec. 3862.108.  ECONOMIC DEVELOPMENT.

 

Sec. 3862.109.  PARKING FACILITIES. 

 

Sec. 3862.110.  NO EMINENT DOMAIN POWER. 

 

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS; ASSESSMENTS

 

Sec. 3862.151.  DISBURSEMENTS AND TRANSFERS OF MONEY. 

 

Sec. 3862.152.  MONEY USED FOR IMPROVEMENTS OR SERVICES. 

 

Sec. 3862.153.  PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS WITH ASSESSMENTS. 

 

Sec. 3862.154.  METHOD OF NOTICE FOR HEARING. 

 

Sec. 3862.155.  ASSESSMENTS; LIENS FOR ASSESSMENTS. 

 

Sec. 3862.156.  LIMITATION ON AMOUNT OF CERTAIN ASSESSMENTS. 

 

Sec. 3862.157.  TAX AND ASSESSMENT ABATEMENTS. 

 

SUBCHAPTER E.  TAXES AND BONDS

 

Sec. 3862.201.  BONDS AND OTHER OBLIGATIONS.

 

Sec. 3862.202.  BOND MATURITY.

 

Sec. 3862.203.  TAXES FOR BONDS AND OTHER OBLIGATIONS. 

 

Sec. 3862.204.  ELECTIONS REGARDING TAXES. 

 

SUBCHAPTER F.  DISSOLUTION

 

Sec. 3862.251.  DISSOLUTION BY CITY ORDINANCE. 

 

Sec. 3862.252.  COLLECTION OF ASSESSMENTS AND OTHER REVENUE.

 

Sec. 3862.253.  CONCURRENCE ON ADDITIONAL POWERS. 

 

Sec. 3862.254.  ASSUMPTION OF ASSETS AND LIABILITIES.

SECTION 2.  Establishes initial boundaries for the Central Laredo Municipal Management District.

 

SECTION 2. Same as engrossed version.

 

 

SECTION 3.  (a)  The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b)  The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality.

(c)  The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time.

(d)  The general law relating to consent by political subdivisions to the creation of districts with conservation, reclamation, and road powers and the inclusion of land in those districts has been complied with.

(e)  All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished.

 

SECTION 3. Same as engrossed version.

 

 

SECTION 4.  This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution.  If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.

 

SECTION 4. Same as engrossed version.