CMT H.B. 3633 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3633 By: Hope County Affairs 77/25/2001 Enrolled BACKGROUND AND PURPOSE In 1997, the 75th Legislature created the East Montgomery County Improvement District. Prior to the 77th Legislature, the district requested several changes to its statutes to make the district more effective and efficient. House Bill 3633 sets forth changes to allow the district to operate more effectively and efficiently. 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 3633 amends law to provide that the boundaries of the East Montgomery County Improvement District do not include any portion of the New Caney Independent School District as the boundaries of the school district exist on September 1, 2001, or as they may exist in the future, located in Harris County. The bill requires that after the board of directors of the district have been selected and qualified, they are to reorganize by electing a chair, a vice chair, a secretary, and other officers of the board as the board considers necessary. The bill authorizes the district to contract with off-duty peace officers to provide public safety and security services in connection with a special event, holiday, period with high traffic congestion, or similar circumstance and to provide public safety and security services at district facilities and property. The board is authorized to employ and establish the terms of employment and compensation of an executive director or general manager or any officer of the district the board considers necessary. The bill provides that the board is not authorized to call an election to abolish a sales and use tax or to reduce the rate of the sales and use tax below the amount pledged to secure payment of any outstanding district debt while any district debt remains outstanding. The bill sets forth provisions pertaining to the sales and use tax that the district is authorized to impose and collect, and provisions for the percentage of a sales tax the district is prohibited from imposing unless approved in an election by the voters of the district. The bill sets forth requirements for a ballot in an election to adopt, abolish, or change the rate of a sales and use tax. The bill authorizes the proceeds of bonds issued by the district that remain after the payment of the cost of issuing the bonds and all costs associated with the projects for which the bonds were sold to be spent by the district for any lawful purpose or for any project the district is authorized to undertake. EFFECTIVE DATE September 1, 2001.