HBA-ATS H.B. 3799 76(R) BILL ANALYSIS
Office of House Bill AnalysisH.B. 3799
By: Coleman
County Affairs
4/6/1999
Introduced
BACKGROUND AND PURPOSE
Currently, no entity exists to help improve economic development
opportunities in the east downtown and Chinatown areas of Houston. H.B.
3799 establishes a special district to be known as the "East Downtown
Management District." Under this bill, the district is governed by a board
of 13 directors who serve staggered four-year terms. The district has the
power to own, operate, acquire, construct, lease, improve, and maintain
projects and to levy certain taxes. However, a majority of the directors
serving must vote for the imposition of a tax, assessment, or impact fee.
The district is prohibited from exercising the power of eminent domain.
Under this bill, the district is authorized to issue bonds or other
obligations payable in whole or in part from ad valorem taxes, assessments,
impact fees, revenues, grants, or other money of the district, or any
combination of those sources of money, to pay for any authorized purpose of
the district. However, the district must first obtain the municipality's
approval of the issuance of bonds for an improvement project. Although the
board is authorized to impose and collect an assessment, the district is
prohibited from imposing a tax, impact fee, or assessment on a residential
property, multiunit residential property, or condominium, or on the
property, equipment, or facilities of a utility. Before the district
imposes a maintenance tax or issues bonds payable from ad valorem taxes or
assessments it must first obtain voter approval.
Under this bill, the district is required to develop and implement a plan
for workforce development services as soon as possible after its creation.
The services may include job training, workforce education, financing of
special educational opportunities, student summer work programs, or other
projects that promote workforce development.
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 376, Local Government Code, by adding Subchapter
H, as follows:
SUBCHAPTER H. EAST DOWNTOWN MANAGEMENT DISTRICT
Sec. 376.301. CREATION OF DISTRICT. Establishes a special district to be
known as the "East Downtown Management District." Authorizes the name of
the district to be changed by resolution of the board of directors of the
district (board). Specifies that the creation of the district is essential
to accomplish the purposes of Section 52 (Counties, Cities or Other
Political Corporations or Subdivisions; Lending Credit; Grants; Bonds) and
52-a (Loan or Grant of Public Money for Economical Development), Article
III, and Section 59 (Conservation and Development of Natural Resources;
Conservation and Reclamation Districts), Article XVI, Texas Constitution.
Sec. 376.302. DECLARATION OF INTENT. Sets forth the intent of the
legislature relating to the creation of the district.
Sec. 376.303. DEFINITIONS. Defines "board," "county," "district,"
"municipality," and "utility."
Sec. 376.304. BOUNDARIES. Describes the territory encompassed by the
district.
Sec. 376.305. FINDINGS RELATING TO BOUNDARIES. Sets forth the findings of
the legislature relating to the boundaries.
Sec. 376.306. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. Sets forth the
findings of the legislature relating to public benefit and purpose.
Provides that the district will not act as the agent or instrumentality of
any private interest even though many private interests will be benefitted
by the district, as will the general public.
Sec. 376.307. APPLICATION OF OTHER LAW. Applies Chapter 375 (Municipal
Management Districts in General) to the district, except as otherwise
provided by this subchapter.
Sec. 376.308. CONSTRUCTION OF SUBCHAPTER. Requires this subchapter to be
liberally construed in conformity with the legislative findings and
purposes stated in this subchapter.
Sec. 376.309. BOARD OF DIRECTORS IN GENERAL. (a) Provides that the
district is governed by a board of 13 directors who serve staggered
four-year terms. Authorizes the board to increase or decrease the number
of directors by resolution, provided that it is in the best interest of the
district to do so and that the board consists of not fewer than 9 and not
more than 30 directors.
(b) Applies Subchapter D (Administrative Provisions; Board of Directors),
Chapter 375, to the board to the extent that subchapter does not conflict
with this subchapter. Specifies that the imposition of a tax, assessment,
or impact fee requires a vote of a majority of the directors serving.
Authorizes directors to vote on any matter authorized by Subchapter D,
Chapter 375. Authorizes action to be taken by the board only if it is
approved in the manner prescribed by Subchapter D, Chapter 375.
Sec. 376.310. APPOINTMENT OF DIRECTORS; VACANY. Requires the mayor and
members of the municipality's governing body to appoint directors from
persons recommended by the board who meet the qualifications of Subchapter
D, Chapter 375. Requires a vacancy in the office of director because of the
death, resignation, or removal of a director to be filled by the remaining
members of the board by appointing a qualified person for the unexpired
term.
Sec. 376.311. POWERS OF DISTRICT. Establishes that the district has all
powers necessary or required to accomplish the purposes for which the
district was created. Specifies that the district has the rights, powers,
privileges, authority, and functions of a district created under Chapter
375. Specifies that the district has the powers conferred on a corporation
under Section 4B, Article 5190.6, V.T.C.S. (Development Corporation Act of
1979). Sets forth that the district has the power to own, operate,
acquire, construct, lease, improve, and maintain projects. Provides that
the district has the power to levy certain taxes and correct, add to, or
delete assessments from its assessment rolls after notice and hearing as
provided by Subchapter F (Assessments), Chapter 375.
Sec. 376.312. EMINENT DOMAIN. Prohibits the district from exercising the
power of eminent domain.
Sec. 376.313. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING
PROPERTY. Sets forth that the district must pay for the expense of a
required relocation, adjustment, raising, lowering, rerouting, or changing
the grade of or altering the construction of certain roadways or utility
structures if the district requires this to be done. Requires the
district to bear damages that are suffered by owners of the facility or
other property.
Sec. 376.314. RELATION TO OTHER LAW. Provides that this subchapter
prevails if any provision of general law is in conflict with or is
inconsistent with this subchapter. Specifies that any law referenced in
this subchapter that is not in conflict or inconsistent with this
subchapter is adopted and incorporated by reference.
Sec. 376.315. REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS.
Prohibits the board from financing services and improvement projects under
this subchapter unless a written petition requesting those improvements or
services has been filed with the board. Provides that the petition must be
signed by certain persons described by this section.
Sec. 376.316. NONPROFIT CORPORATION. (a) Authorizes the board by
resolution to authorize the creation of a nonprofit corporation to assist
and act on behalf of the district in implementing a project or providing a
service authorized by this subchapter.
(b) Requires the board to appoint the board of directors of a nonprofit
corporation created under this section. Requires the board of directors of
the nonprofit corporation to serve in the same manner as, for the same term
as, and on the conditions of the board of directors of a local government
corporation created under Chapter 431 (Transportation Corporations),
Transportation Code.
(c) Provides that a nonprofit corporation created under this section has
the powers of and is considered for purposes of this subchapter to be a
local government corporation created under Chapter 431, Transportation
Code.
(d) Authorizes a nonprofit corporation created under this section to
implement any project and provide any services authorized by this
subchapter.
Sec. 376.317. DISBURSEMENTS OR TRANSFERS OF FUNDS. Requires the board by
resolution to establish the number of directors' signatures and the
procedure required for a disbursement or transfer of the district's money.
Sec. 376.318. BONDS. (a) Authorizes the district to issue bonds or other
obligations payable in whole or in part from ad valorem taxes, assessments,
impact fees, revenues, grants, or other money of the district, or any
combination of those sources of money, to pay for any authorized purpose of
the district.
(b) Authorizes the issuance of bonds or other obligations of the district
in the form of bonds, notes, certificates of participation, including other
instruments evidencing a proportionate interest in payments to be made by
the district, or other obligations that are issued in the exercise of the
district's borrowing power and to be issued in bearer or registered form or
not represented by an instrument but the transfer of which is registered on
books maintained by or on behalf of the district. Authorizes the board to
impose and collect an assessment under Subchapter F, Chapter 375, for any
purpose authorized by this subchapter or by Chapter 375.
(c) Provides that the district must obtain the municipality's approval of
the issuance of bonds for an improvement project, the plans and
specifications of the improvement project to be financed by the bonds, and
the plans and specifications of a district improvement project related to
the use of land owned by the municipality, an easement granted by the
municipality, or a right-of-way of a street, road, or highway, except as
provided by Subsection (d).
(d) Authorizes the district to finance the capital improvements and issue
bonds specified in the budget without further municipal approval, if the
district obtains the municipality's approval of a capital improvements
budget for a specified period not to exceed five years.
(e) Requires the district to submit the bonds and the record of proceedings
of the district relating to authorization of the bonds to the attorney
general before the district issues bonds for approval.
Sec. 376.319. ASSESSMENTS. (a) Authorizes the board to impose and collect
an assessment for any purpose authorized by this subchapter.
(b) Provides that assessments, reassessments, or assessments resulting from
an addition to or correction of the assessment roll by the district,
penalties and interest on an assessment or reassessment, expenses of
collection, and reasonable attorney's fees incurred by the district:
(1) are a first and prior lien against the property assessed;
(2) are superior to any other lien or claim other than a lien or claim for
county, school district, or municipal ad valorem taxes; and
(3) are the personal liability of and charge against the owners of the
property even if the owners are not named in the assessment proceedings.
(c) Establishes that the lien is effective from the date of the resolution
of the board levying the assessment until the assessment is paid.
Authorizes the board to enforce the lien in the same manner that the board
may enforce an ad valorem tax lien against real property.
Sec. 376.320. PROPERTY EXEMPTED FROM TAX, FEE, OR ASSESSMENT. Prohibits a
district from imposing a tax, impact fee, or assessment on a residential
property, multiunit residential property, or condominium. Prohibits the
district from imposing an impact fee or assessment on the property,
equipment, or facilities of a utility.
Sec. 376.321. ELECTIONS. Requires the district to hold an election in
the manner provided by Subchapter L (Elections), Chapter 375, Government
Code, to obtain voter approval before the district imposes a maintenance
tax or issues bonds payable from ad valorem taxes or assessments in
addition to other necessary elections. Authorizes the board to submit
multiple purposes in a single proposition at an election
Sec. 376.322. IMPACT FEES. Authorizes the district to impose an impact
fee for an authorized purpose as provided by Subchapter G (Impact Fees),
Chapter 375, Local Government Code.
Sec. 376.323. MAINTENANCE TAX. Authorizes the district, to impose and
collect an annual ad valorem tax on taxable property in the district for
the maintenance and operation of the district and the improvements
constructed or acquired by the district or for the provision of services,
if authorized at an election held in accordance with Section 376.321.
Requires the board to determine the tax rate.
Sec. 376.324. WORKFORCE DEVELOPMENT SERVICES AND PROJECTS. (a) Requires
the district to develop and implement a plan for workforce development
services as soon as possible after its creation. Provides that the
services may include job training, workforce education, financing of
special educational opportunities, student summer work programs, or other
projects that promote workforce development.
(b) Specifies that the district's initial plan under Subsection (a) must
be for a period of at least five years. Requires the district, for the
first five years of the plan, to allocate to the services listed in
Subsection (a) not less than three percent of its assessment revenues.
(c) Authorizes the district to develop and implement additional plans under
Subsection (a).
(d) Authorizes the district to accept a donation, grant, or loan from any
person, to work with schools of all levels, to work with any person that
provides workforce development funds or projects, or to participate with
other entities, to assist in implementing this section.
Sec. 376.325. DISSOLUTION OF DISTRICT. Authorizes the district to be
dissolved as provided in Subchapter M (Dissolution), Chapter 375, Local
Government Code. Requires the district to remain in existence solely for
the limited purpose of discharging its bonds or other obligations according
to their terms, if the district has debt and is dissolved.
Sec. 376.326. CONTRACTS. Authorizes the district to contract with the
municipality or county for the municipality or county to provide law
enforcement services in the district for a fee. Authorizes the
municipality, county, or any other political subdivision of the state,
without further authorization, to contract with the district to implement a
project of the district or assist the district in providing the services
authorized under this subchapter. Authorizes a contract under this
subsection to:
_be for a period on which the parties agree;
_include terms on which the parties agree;
_be payable from taxes or any other sources of revenue that may be
available for such purpose; or
_provide that taxes or other revenue collected at a district project or
from a person using or purchasing a commodity or service at a district
project may be paid or rebated to the district under the terms of the
contract.
Authorizes the district to enter into a contract, lease, or agreement with
or make or accept grants and loans to or from certain entities and persons.
Authorizes the district to perform all acts necessary for the full exercise
of the powers vested in the district on terms and conditions and for the
term the board may determine to be advisable.
SECTION 2. Sets forth the findings of the legislature relating to the
proper and legal notice of the intention to introduce this Act,
recommendations filed by the Texas Natural Resource Conservation
Commission, and compliance with the constitution and other state laws.
SECTION 3. Requires the mayor and governing body of Houston to appoint the
initial members of the board of directors of the East Downtown Management
District by October 1, 1999. Provides that directors must meet the
qualifications of Subchapter D, Chapter 375, Local Government Code.
Requires that the initial terms be staggered so that six expire on June 1,
2001, and seven expire on June 1, 2003.
SECTION 4.Emergency clause.
Effective date: upon passage.