HBA-TBM, BSM H.B. 1225 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1225 By: Hamric Transportation 3/8/2001 Introduced BACKGROUND AND PURPOSE Under current law, the term local government pertains only to cities and counties. Local government corporations (LGCs) are used to pursue various economic development projects. For example, through LGCs the City of Houston is creating tax increment reinvestment zones, the Houston Housing Finance Corporation is financing moderate income housing, Ellington Field Airport is financing bonds for an aircraft repair facility, the Houston Convention Center is constructing a hotel, and Harris County is attracting development to various parts of the county. Because navigation districts are excluded from the definition of local government, the broader authority and flexibility that cities and counties enjoy through the use of LGCs is not available to the Port of Houston Authority. Texas port officials possess valuable expertise concerning the development and operation of ports. Authorizing navigation districts to incorporate will allow the Port of Houston Authority and other Texas ports to sell the expertise of their officials, which could nurture and expand trade with foreign and domestic ports and defray the costs taxpayers and customers incur from the temporary losses of such experts. House Bill 1225 allows navigation districts to incorporate as local governments. 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. ANALYSIS House Bill 1225 amends the Transportation Code to include a navigation district in the meaning of local government when referring to local government corporations. EFFECTIVE DATE September 1, 2001.