HBA-MSH H.B. 2295 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2295
By: Woolley
County Affairs
3/26/2001
Introduced



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.  The district is 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 and create a nonprofit
corporation, and charge fees for the use of certain conduits. 

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 other municipal management districts.  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 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 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

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.