HBA-MSH H.B. 2295 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2295 By: Woolley County Affairs 7/18/2001 Enrolled BACKGROUND AND PURPOSE The Harris County Improvement District No. 1 (district) was created in 1987. Since that time, numerous other municipal management districts have been created and statutes have been passed governing their general operation. Prior to the 77th Legislature, the district was not able to meet its obligation and accomplish its goals in the same manner as other municipal management districts. House Bill 2295 applies existing statutes relating to municipal management districts to the district and authorizes the district to impose an ad valorem property tax, assessment, or impact fee, create a nonprofit corporation, charge fees for the use of certain conduits, and annex certain territories. 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 2295 amends law to provide that the Harris County Improvement District No. 1 (district) has the rights, powers, privileges, authority, and functions of a municipal management district. The bill authorizes the district to impose an ad valorem tax, assessment, or impact fee to provide improvements or services if a written petition has been filed with the board of directors of the district (board), requesting those improvements or services signed by the owners of 50 percent or more of the assessed value of the property in the district or 25 owners of property in the district if there are more than 25 persons who own property in the district. The bill authorizes the board to create by resolution a nonprofit corporation to assist and act on behalf of the district in implementing a project or providing a service of the district and requires the board to appoint the board of directors of the nonprofit corporation. The bill authorizes the district to finance, acquire, construct, improve, operate, maintain, or charge fees for the use of its own conduits for fiber-optic cable, electronic transmission lines, or other types of transmission lines and supporting facilities and finance, acquire, construct, improve, operate, or maintain conference centers and supporting facilities. The bill authorizes the district to annex territory in accordance with provisions relating to general and special law districts, subject to the approval of the Houston city council. The bill also authorizes the district to annex territory located inside the boundaries of a reinvestment zone only if a majority of the qualified voters in the area that the district wants to annex approve the annexation and the assumption of the bonds and taxes of the district. The bill validates and confirms all previous governmental acts and proceedings of the district and the district's board of directors, but not any matter that is involved in litigation if the litigation results in the matter being held invalid or any matter that has already been held invalid. EFFECTIVE DATE June 17, 2001.