BILL ANALYSIS

C.S.S.B. 390

By: Miles

County Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

It has been suggested that an area located in northeast Houston would benefit from the creation of a management district. C.S.S.B. 390 seeks to provide for the creation of such a district.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 390 amends the Special District Local Laws Code to create the Northeast Houston Redevelopment District to provide certain improvements, projects, and services for public use and benefit. The bill provides for, among other provisions, tax and assessment abatements and dissolution of the district. The bill sets out the district's powers and duties, which include, subject to certain requirements, the authority to issue obligations and impose assessments and property and sales and use taxes. 

C.S.S.B. 390 prohibits the district, if the district's territory is located in the corporate boundaries or the extraterritorial jurisdiction of a municipality, from exercising a power granted to the district after the date the district was created unless the municipality's governing body by resolution consents to the district's exercise of the power. The bill prohibits the district from exercising the power of eminent domain and from imposing an impact fee on a residential property, including a multiunit residential property, or a condominium. The bill prohibits the district from imposing an assessment, impact fee, or standby fee on the property, including the equipment, rights-of-way, easements, facilities, or improvements, of the following:

· an electric utility or a power generation company;

· a gas utility or a person who owns pipelines used for the transportation or sale of oil or gas or a product or constituent of oil or gas;

· a person who owns pipelines used for the transportation or sale of carbon dioxide;

· a telecommunications provider; or

· a cable service provider or video service provider.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2019.

COMPARISON OF SENATE ENGROSSED AND SUBSTITUTE

While C.S.S.B. 390 may differ from the engrossed in minor or nonsubstantive ways, the following summarizes the substantial differences between the engrossed and committee substitute versions of the bill.

The substitute increases from nine to 13 the number of voting directors on the district's board of directors. The substitute names the initial directors.

The substitute includes a prohibition against the district imposing an assessment, impact fee, or standby fee on the property, including the equipment, rights-of-way, easements, facilities, or improvements, of the following:

· an electric utility or a power generation company;

· a gas utility or a person who owns pipelines used for the transportation or sale of oil or gas or a product or constituent of oil or gas;

· a person who owns pipelines used for the transportation or sale of carbon dioxide;

· a telecommunications provider; or

· a cable service provider or video service provider.