BILL ANALYSIS

Senate Research Center	C.S.H.B. 4676
86R31278 JXC-F	By: Stephenson et al. (Huffman)
	Intergovernmental Relations
	5/14/2019
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 4676 creates the Fort Bend County Management District No. 3, and provides the district authority to levy an assessment, impose a tax, and issue bonds, in order to administer and provide funding for economic development projects and services to undeveloped property in Fort Bend County, Texas. The committee substitute differs from the filed version of the bill by incorporating district dissolution concepts that are consistent with legislation that is currently pending before the 86th legislature. The language in the committee substitute will require the board of the proposed district to dissolve the district upon receipt of a petition signed by owners of 66 percent or more of the assessed value or surface area in the district. Dissolution may only occur if the district does not (1) have any outstanding bonded indebtedness, (2) have ongoing financial contractual obligations, or (3) own any public facilities for which there is not a successor owner and operator.

C.S.H.B. 4676 amends current law relating to the creation of the Fort Bend County Management District No. 3; provides authority to issue bonds; and provides authority to impose assessments, fees, and 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 3984, as follows:

CHAPTER 3984. FORT BEND COUNTY MANAGEMENT DISTRICT NO. 3

Sets forth standard language for the creation of the Fort Bend County Management District No. 3 (district) in Fort Bend County. Sets forth standards, requirements, procedures, and criteria for:

Creation, approval, purpose, and territory of the district and eligibility for inclusion in special zones (Sections 3984.0101�3984.0109);

Size, composition, appointment or election, compensation, and terms of the board of directors of the district (board), and provisions relating to temporary directors (Sections 3984.0201�3984.0204);

Powers and duties of the district (Sections 3984.0301�3984.0317);

Provisions related to assessments (Sections 3984.0401�3984.0403);

Authority to impose taxes and issue bonds (Sections 3984.0501�3984.0506);

Authority to impose a sales and use tax (Sections 3984.0601�3984.0607);

Authority to impose a hotel occupancy tax (Sections 3984.0701�3984.0707); and

Dissolution of the district (Section 3984.0901).

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, 2019.