BILL ANALYSIS

Senate Research Center	S.B. 2249
85R8261 SMT-F	By: Creighton
	Intergovernmental Relations
	4/25/2017
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 2249 creates the East Lake Houston Management District (district). The district, comprised of two separate non-contiguous parcels of raw land, is 435 acres in size. The district facilitates the development of the land within its boundaries by providing for reimbursement to the developer(s) for development costs associated with both underground utilities, roads, drainage, detention, parks, recreations, amenities, and improvements along the public rights of ways. There is no utility service at this point in time that would enable the development of the raw land. It is contemplated that all of the land in the initial development will consist of single-family housing residential developments. Future annexations into the district will likely also include some elements of supporting commercial development.

The district would utilize powers authorized by Chapters 49 (Provisions Applicable to all Districts) and 54 (Municipal Utility Districts), Water Code, to finance wet utilities, roads, drainage, and park improvements; and Chapter 375 (Municipal Management Districts in General), Local Government Code, to provide for maintenance of the surface infrastructure, recreations facilities, other public amenities, safety and security, directly or through contracts with other governmental entities. The district would have the power to adopt a tax or levy an assessment to finance development costs, directly or through the sale of bonds, and to finance district services.

The land within the district is co-owned by a single developer in partnership with two separate incorporated entities/owners. There is no known opposition to creation of this district. The district does not have the power of eminent domain.

As proposed, S.B. 2249 amends current law relating to the creation of the East Lake Houston Management District, provides authority to issue bonds, and provides authority to impose assessments, fees, or taxes.

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 Subtitle C, Title 4, Special District Local Laws Code, by adding Chapter 3936, as follows:

CHAPTER 3936. EAST LAKE HOUSTON MANAGEMENT DISTRICT

Sets forth standard language for the creation of the East Lake Houston Management District (district) in the City of Houston (city). Sets forth standard procedures, requirements, and criteria for:

Creation, purpose, and approval of the district (Sections 3936.001-3936.050);

Size, composition, appointment, compensation, and terms of the board of directors of the district, including the naming of the initial directors (Sections 3936.051-3936.100);

Powers and duties of the district (Sections 3936.101-3936.150);

General financial provisions and authority to impose a tax and issue bonds and obligations for the district (Sections 3936.151-3936.250); and

Dissolution of the district by the city (Sections 3936.251-3936.253).

Prohibits the district from exercising the power of eminent domain.

SECTION 2. Sets forth the initial boundaries of the district.

SECTION 3. Provides that all requirements of the constitution and the laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

SECTION 4. Effective date: upon passage or September 1, 2017.