HBA-MSH H.B. 1990 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1990 By: Turner, Sylvester County Affairs 3/26/2001 Introduced BACKGROUND AND PURPOSE A recent survey found that residents in the near northwest area of Houston have concerns about public safety and economic decline in the area. Municipal management districts have been used in other parts of the city and around the state to promote and coordinate economic growth and public welfare. House Bill 1990 creates the Near Northwest Management District in the city of Houston. 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 1990 amends the Local Government Code to create the Near Northwest Management District (district) to promote economic development, cultural activities, and public welfare in the northwest area of the city of Houston (Secs. 376.451 and 376.452). The bill provides that the district is subject to provisions regulating municipal management districts (Sec. 376.457). The bill provides that the district is governed by a board of nine directors (board) who are appointed by the mayor and the city council of Houston and who serve staggered four year terms. The board is authorized to increase or decrease the number of directors to up to 30 but no fewer than nine (Secs. 376.459, and 376.460). The bill grants the district the power to impose ad valorem taxes, assessments, or impact fees (Sec. 376.461). The bill prohibits the district from imposing a sales and use tax or exercising the power of eminent domain (Secs. 376.462, and 476.463). The bill exempts the district from provisions requiring a public official to file an affidavit concerning a potential conflict of interest and to abstain from participating in matters related to the conflicting relationship and sets forth specific requirements relating to conflict of interest (Sec. 376.465). If the district requires a change in specified elements of infrastructure, the bill requires the district to take action at the sole expense of the district (Sec. 376.466). The bill prohibits the district from financing services and improvement projects unless a written petition requesting those services and projects has been filed with the board (Sec. 376.468). The bill authorizes the board to create a nonprofit corporation to assist and act on behalf of the district in implementing a project of the district (Sec. 376.469). The bill requires the board to establish the number of directors' signatures and the procedure required for a disbursement or transfer of the district's money (Sec. 376.470). The bill 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. The bill provides that the district must obtain the municipality's approval for the issuance of bonds for a capital improvement project and once approved, the district may finance the capital improvements and issue bonds specified in the budget without further municipal approval (Sec. 376.471). The bill prohibits the district from imposing an impact fee or assessment on a residence homestead, or the property, equipment, or facilities of a utility (Sec. 376.473). The bill requires the district to hold an election to obtain voter approval before the district imposes a maintenance tax or issues bonds payable from ad valorem taxes or assessments and if approved, the board is required to determine the rate of the tax (Secs. 376.474 and 376.476). If authorized at an election, the bill 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 (Sec. 376.476). The bill provides for the dissolution of the district and for the discharging of bonds or other obligations once dissolved (Sec. 376.477). The bill authorizes the district to contract with the municipality or the county for the provision of law enforcement services in the district for a fee. The bill authorizes the municipality, the county, or another 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 services. The bill authorizes the district to enter into a contract, lease, or other agreement, and to make or accept grants and loans (Sec. 376.478). The bill authorizes the district to annex territory (Sec. 376.479) EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.