HBA-ATS, NIK C.S.H.B. 2659 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2659
By: Krusee
Land & Resource Management
4/23/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

In certain road districts that have refinanced outstanding bonded
indebtedness, the county in which the road district lies is the ultimate
guarantor of millions of dollars in bonds.  If some of the territory of the
road district lies within a city, the territory within the road district
can be negatively impacted by changes in impervious cover limits that the
city may impose.  Repayment of the bonds becomes difficult if the amount of
land within the district that can be developed is limited. 

C.S.H.B. 2659 assures that land can be developed at current impervious
cover limits.  If the city changes these limits that apply to more than 20
percent of the land in an assessment road district after March 9, 1999, and
before March 9, 2019, it must pay the bonds within the district.  This
requirement does not apply to an affected land owner who agrees in writing
to a regulation that reduces the amount of impervious cover or reduces the
total allowable floor area of a building on developed land. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 3, Title 22, V.T.C.S., by adding Article 726a,
as follows: 

ARTICLE 726a.  LAND DEVELOPMENT IN ROAD DISTRICT 
   WITH OUTSTANDING INDEBTEDNESS 

Sec. 1. DEFINITIONS. Defines "affected area," "assessment road area," "land
development,"and  "regulation." 

Sec. 2. CHANGES IN REGULATION OF LAND DEVELOPMENT.  (a) Requires a
political subdivision to pay the outstanding bonded indebtedness of the
assessment road district (district) if, after March 9, 1999, and before
March 9, 2019, the political subdivision changes land development
regulations applying to more than 20 percent of the land in an assessment
road district in a manner that reduces the regulated amount of impervious
cover or the total allowable floor area of a building on developed land. 

(b) Provides that Subsection (a) does not apply to an affected land owner
who agrees in writing to a regulation that reduces the amount of impervious
cover or reduces the total allowable floor area of a building on developed
land. 

Sec. 3.  ANNEXATION OF PROPERTY TO AN ASSESSMENT ROAD DISTRICT. Authorizes
a person who owns land in an affected area to request that a governing body
of a district annex any part of the owner's land that is within two miles
of the district's boundaries.  Authorizes the governing body of the
district to annex the land by resolution, on request.  Requires the
governing body of the district, after the annexation of the land under this
section, to reapportion the remaining assessment on the owner's land on a
per acre basis for all the owner's land in the district. 
 

Sec. 4.  EXPIRATION.  Establishes March 10, 2019, as the expiration date of
this article. 

SECTION 2.  Effective date: September 1, 1999.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2659 modifies the original bill in the caption by providing that
this Act relates to the regulation of land development by a political
subdivision that affects certain property in or near, rather than in,
certain road districts. 

C.S.H.B. 2659 modifies the original bill in SECTION 1 (proposed Section
2(a), Article 726a, V.T.C.S.) by requiring a political subdivision to pay
the outstanding bonded indebtedness of the assessment road district
(district) if, after March 9, 1999, and before March 9, 2019, the political
subdivision changes land development regulations applying to more than 20
percent of the land in an assessment road district in a manner that reduces
the regulated amount of impervious cover or the total allowable floor area
of a building on developed land.  The original bill required the political
subdivision to pay all landowners within the district the amount of any
assessments prepaid on any part of that land for which no building permit
has been issued or no improvement has been constructed, in addition to its
obligation to pay the outstanding bonded indebtedness of the district, if
the political subdivision changed land development regulations applying to
land in an affected area in a manner that reduced the regulated amount of
impervious cover or the total allowable floor area of a building on
developed land.  The original contained neither a 20-year period nor a
requirement of a minimum percentage of affected land. 

The substitute also modifies the original by replacing proposed Section
2(b), Article 726a, V.T.C.S., of the original, which prohibits a political
subdivision from changing or amending its regulations regarding  land
development within an affected area in any way that reduces the allowed
amount of impervious cover, as defined in the political subdivision's
regulations, or reduces the total allowable floor area of a building on
developed land more than five percent, with a new provision that provides
that proposed Subsection (a) does not apply to an affected land owner who
agrees in writing to a regulation that reduces the amount of impervious
cover or reduces the total allowable floor area of a building on developed
land. 

The substitute also modifies the original by adding Section 4, Article
726a, V.T.C.S., to establish March 10, 2019, as the expiration date of this
article. 

C.S.H.B. 2659 modifies the original bill by deleting SECTION 3 (emergency
clause).