HBA-TBM C.S.H.B. 3634 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3634 By: Farrar County Affairs 4/8/2001 Committee Report (Substituted) 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. C.S.H.B. 3634 creates the Greater Northside 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 C.S.H.B. 3634 amends the Local Government Code to create the Greater Northside 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 11 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. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3634 differs from the original by changing the name of the district from the North Side Management District to Greater Northside Management District (Secs. 376.451 and 376.453). The substitute reduces from 15 to 11 the number of board members (Sec. 376.459). The terms of the initial directors appointed for positions 1 through 5, rather than 1 through 7, expire June 1, 2003. The terms of the initial directors appointed for positions 6 through 11, rather than 8 through 15, expire June 1, 2005. The substitute also sets forth the names of the 11 initial directors (Sec. 376.476).