BILL ANALYSIS

 

 

Senate Research Center	C.S.S.B. 390
86R16278 JXC-F	By: Miles
	Intergovernmental Relations
	4/10/2019
	Committee Report (Substituted)

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Interested parties contend that there is a need for a municipal management district within a certain area of northeast Houston. The Tax Cuts and Jobs Act of 2017 created federal Opportunity Zones to provide tax credits for private investment in low-income communities seeking economic revitalization. Parts of nine Opportunity Zones designated by Governor Abbott are within the boundaries of the proposed management district. S.B. 390 seeks to address the economic needs of this area by establishing provisions relating to the creation of the Northeast Houston Redevelopment District.

 

The substitute deletes non-standard language regarding TIRZ created by the City of Houston and removes two parcels of land originally included in the district.

 

C.S.S.B. 390 amends current law relating to the creation of the Northeast Houston Redevelopment 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 3961, as follows:

 

CHAPTER 3961. NORTHEAST HOUSTON REDEVELOPMENT DISTRICT

 

Sets forth standard language for the creation of the Northeast Houston Redevelopment District (district) in Harris County. Sets forth standards, procedures, requirements, and criteria for:

 

Creation and approval of the district (Section 3961.0101�3962.0108);

 

Size, composition, appointment, compensation, and terms of the board of directors of the district (Section 3961.0201�3961.0209);

 

Powers and duties of the district (Sections 3961.0301�3961.0311);

 

General financial provisions, authority to impose a tax and to issue bonds and obligations for the district, and authority to impose and collect assessments (Sections 3961.0401�3961.0606); and

 

Dissolution of the district by a municipality (Section 3961.0701�3961.0703).

 

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 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.