HBA-NRS H.B. 3647 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3647 By: Glaze County Affairs 4/8/2001 Introduced BACKGROUND AND PURPOSE Current law authorizes counties to establish economic development districts that have proven effective in boosting economic activity in some regions of Texas. House Bill 3647 establishes the Smith County Economic Development District which will promote tourism and business development within a 127-acre development zone in northeastern Smith County. 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 3647 amends the Local Government Code to establish the Smith County Economic Development District (district) (Sec. 385.001). The bill sets forth the boundaries of the district (Sec. 385.003). The bill sets forth the powers and duties of the district (Secs. 385.031-385.040). The bill authorizes the district to conduct or authorize certain types of improvement projects (Sec. 385.032). The bill authorizes the district to impose, assess, and apply the proceeds from a limited sales and use tax, borrow money for district purposes, add or exclude territory to or from the district, and enter into a contract with any person (Sec. 385.033). The bill authorizes the district to adopt, amend, and enforce by ordinary civil remedies reasonable rules and regulations, for the administration and operation of the district, for the use, enjoyment, availability, protection, security, and maintenance of the district's properties and facilities, and to provide for public safety and security within the district (Sec. 385.034). The bill prohibits the district from employing peace officers, yet authorizes the district to contract for off-duty peace officers to provide public safety and security services (Sec. 385.035). The bill authorizes a district to exercise economic development powers and authority under economic development grants. The bill prohibits the district from exercising the power of eminent domain or imposing an impact fee or assessment on specified residential property (Secs. 385.039 and 385.040). The bill provides that the district is governed by a board of five directors (board), sets forth provisions regarding the composition and administration of the board and the election, qualifications, and terms of the directors and provides the names of the initial directors. The bill also sets forth provisions regarding an election to confirm the establishment of the district (Secs. 385.071-385.080). The bill authorizes the board, by rule, to regulate the private use of public roadways, open spaces, parks, sidewalks, and similar public areas within the district (Sec. 385.037). The bill authorizes the board to employ and establish the managerial structure of the district (Sec. 385.038). The bill authorizes the district to adopt, reduce, or repeal the limited sales and use tax authorized by this bill at an election in which the voters of the district approve the adoption or the abolition and sets forth provisions regarding the application, collection, and administration of such a tax (Sec. 385.111). The bill authorizes the board to impose, repeal, or increase or decrease a hotel occupancy tax which may not exceed seven percent of the price paid for the room (Sec. 385.112). The bill authorizes the district to issue bonds (Sec. 385.114). The bill authorizes the board to dissolve the district at any time by a majority vote, but only if the district's outstanding indebtedness or contractual obligations have been repaid or discharged (Secs. 385.131 and 385.132). After a board elects to dissolve the district, the bill requires the board to transfer ownership of all property and assets of the district to Smith County (Sec. 385.133). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.