HBA-TBM H.B. 3692 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3692 By: Coleman County Affairs 7/25/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, a survey found that residents in the Greater Third Ward and parts of southeast Houston had 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 3692 creates the Greater Southeast 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 3692 amends the Local Government Code to create the Greater Southeast Management District (district) to promote economic development, cultural activities, and public welfare in the southeast area of the City of Houston (Secs. 376.451 and 376.452). The bill provides that the district is subject to provisions regulating municipal management districts (Sec. 376.457). The bill provides that the district is governed by a board of 21 directors (board) who are appointed by the mayor and the city council of Houston and who serve staggered four year terms. The board is authorized to increase or decrease the number of directors to no fewer than nine and no more than 30 directors. The bill also sets forth provisions regarding ex officio board members and specifies the initial board members (Secs. 376.459, 376.460, and 376.463 and SECTION 3). The bill grants the district the powers given to a corporation under the Development Corporation Act of 1979 and the Texas Housing Finance Corporations Act, as well as the powers to impose ad valorem taxes, assessments, or impact fees, and provide housing or residential development projects (Sec. 376.461). The bill prohibits the district from exercising the power of eminent domain (Secs. 376.462). The bill exempts the district from provisions requiring a public official to file an affidavit concerning a potential conflict of interest and to abstain from participating in matters related to a conflicting relationship and sets forth specific requirements relating to conflicts of interest (Sec. 376.464). If the district requires a change in specified elements of infrastructure, the bill requires the district to take action at the sole expense of the district (Sec. 376.465). The bill prohibits the board from financing services and improvement projects unless a written petition requesting those services and projects has been filed with the board (Sec. 376.467). The bill authorizes the board to create a nonprofit corporation to assist and act on behalf of the district in implementing a project of the district (Sec. 376.468). The bill authorizes the district to issue bonds or other obligations payable in whole or in part from ad valorem taxes, assessments, impact fees, revenues, grants, or other money of the district, to pay for any authorized purpose of the district. The bill provides that the district must obtain the municipality's approval for the issuance of bonds for a capital improvement project, and once approved, the district may finance the capital improvements and issue bonds specified in the budget without further municipal approval (Sec. 376.470). The bill authorizes the district to impose an assessment and impact fees and prohibits the district from imposing a tax, impact fee, or assessment on a residential property or condominium, or the property, equipment, or facilities of a utility (Secs. 376.471, 376.472, and 376.474). The bill requires the district to hold an election to obtain voter approval before the district imposes a maintenance tax or issues bonds payable from ad valorem taxes or assessments, and if approved, the board is required to determine the rate of the tax (Secs. 376.473 and 376.475). The bill provides for the dissolution of the district and for the discharging of bonds or other obligations once dissolved (Sec. 376.476). The bill authorizes the district to contract with the municipality or the county for the provision of law enforcement services in the district and authorizes the municipality, county, or another political subdivision of the state to contract with the district to implement a project of the district or assist the district in providing services. The bill authorizes the district to enter into a contract, lease, or other agreement, and to make or accept grants and loans (Sec. 376.477). The bill authorizes the district to annex territory (Sec. 376.479). Provisions regarding competitive bidding procedures for certain public works contracts do not apply to the district unless the contract is for more than $25,000 (Sec. 376.478). EFFECTIVE DATE June 17, 2001.