HBA-TBM H.B. 3634 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3634
By: Farrar
County Affairs
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

Recent developments in the North Side of the City of Houston have created
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 3634 creates the North Side 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 3634 amends the Local Government Code to create the North Side
Management District (district) in the North Side of the City of Houston
(Secs. 376.451 and 376.452).  

The bill specifies that the district is governed by a board of 15 directors
(board) and sets forth guidelines concerning the structure, composition,
and powers of the board (Secs. 376.459 and 376.460).  The bill provides
that the district has the rights, powers, privileges, authority, and
functions of a municipal management district, the powers given to a
development corporation, and the power to impose ad valorem taxes,
assessments, or impact fees (Sec. 376.461).  The bill prohibits the
district from exercising the power of eminent domain (Sec. 376.462).   

The bill prohibits the board from financing services and improvement
projects unless a written petition with specified signatures requesting
those improvements or services has been filed by the board (Sec. 376.465).
The bill authorizes the board to create a nonprofit corporation and sets
forth guidelines concerning the creation, operation, and powers of a
nonprofit corporation (Sec. 376.466).  The bill authorizes the district to
issue bonds or other obligations to pay for any authorized purpose of the
district.  The bill sets forth provisions relating to the issuance of the
bonds, payment of the bonds, use of the bonds, approval of bonds by the
municipality, and capital improvements (Sec. 376.468).   

The bill authorizes the board to impose and collect an assessment (Sec.
376.469).  The bill sets forth provisions to exempt residential and utility
property from a tax, fee, or assessment (Sec. 376.470).  The bill sets
forth provisions regarding district elections for the imposition of a
maintenance tax or the issuance of bonds payable  from ad valorem taxes or
assessments (Sec. 376.471).  The bill authorizes the district to impose an
impact fee (Sec. 376.472).  Subject to authorization at an election, the
bill authorizes the district to impose an annual ad valorem tax on taxable
property in the district (Sec. 376.473).   

The bill sets forth provisions regarding the dissolution of the district
(Sec. 376.474).  To protect the public interest, the bill authorizes the
district to contract with the municipality or county to provide law
enforcement services in the district for a fee and sets forth provisions
regarding other contracts (Sec. 376.475).  The bill sets forth the terms of
service of the initial board members (Sec. 376.476).   

 
EFFECTIVE DATE

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