HBA-MPA H.B. 1105 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1105 By: Turner, Sylvester County Affairs 4/18/1999 Introduced BACKGROUND AND PURPOSE In 1993, the Greater Inwood Partnership created a community pride committee to survey the community's greatest concerns, fears, and sources of pride. The survey exposed the residents' level of insecurity and dissatisfaction at the rate at which impoverished sections within the area have begun to deteriorate. A strong sense of pride and community also was evident among participants. H.B. 1105 creates the Houston Near Northwest Management District to enhance and supplement security services for businesses and residences within the North Houston areas bounded by T.C. Jester on the east, Pinemount Drive on the south, Hollister Drive projected to State Road 249 on the west, and State Road 249 on the north. The district would act as a coordinator for the subdivisions within its boundaries to enhance the appearance and the visual impression of the area, and to further economic development goals for both residents and employers in the district. 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. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 376, Local Government Code, by adding Subchapter H, as follows: SUBCHAPTER H. HOUSTON NEAR NORTHWEST MANAGEMENT DISTRICT Sec. 376.311. CREATION OF DISTRICT. (a) Establishes the "Houston Near Northwest Management District " (district) as a governmental agency, body politic and corporate and political subdivision of the state. (b) Authorizes the board of directors of the district (board) to change the name of the district by resolution. (c) Sets forth that the creation of this district is essential to accomplish the purposes of Section 52, Article III (Counties, Cities, or Other Political Corporations and Subdivisions Lending Credit; Grants; Bonds), Section 59, Article XVI (Conservation and Development of Natural Resource; Conservation and Reclamation Districts), and Section 52-a, Article III (Loan or Grant of Public Money for Economic Development), of the Texas Constitution, and other public purposes stated in this subchapter. Sec. 376.312. DECLARATION OF INTENT. Sets forth the need for this district in the near northwest side of Houston (municipality); that the creation of this district does not relieve Harris County (county) or the municipality from providing the level of services or from other obligations which existed before the creation of the district; and that the district exists to supplement, not supplant the municipal or county services provided to the area. Sets forth that in creating the district and in authorizing the municipality, county, and other political subdivisions to contract with it the legislature has established a program to accomplish the purposes set forth in Section 52-a, Article III, Texas Constitution. Sec. 376.313. DEFINITIONS. Defines "board," "district," "municipality," and "county". Sec. 376.314. BOUNDARIES. Sets forth the boundaries of the district. Sec. 376.315. FINDINGS RELATING TO BOUNDARIES. Sets forth that the boundaries of the district form a closure, and that if a mistake is made in the field notes or copying them in the legislative process such mistake does not affect the organization, existence, and validity of the district; the right of the district to issue or refund bonds or pay the principal of or interest on the bonds; the right of the district to impose and collect assessments or taxes; or the legality or operation of the district or its governing body. Sec. 376.316. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. Sets forth the findings. Sec. 376.317. APPLICATION OF OTHER LAW. Provides that Chapter 375 (Municipal Management Districts in General), Local Government Code, applies to the district, except as otherwise provided. Sec. 376.318. CONSTRUCTION OF SUBCHAPTER. Requires this subchapter to be liberally construed in conformity with the findings and purposes stated therein. Sec. 376.319. BOARD OF DIRECTORS. Provides that the district is governed by a 30 member board of directors (board) serving four year terms, with seven or eight members' terms expiring June 1 of each year. Provides that Subchapter D (Administrative Provisions; Board of Directors), Chapter 375, applies to the board to the extent it does not conflict with this subchapter. Sec. 376.320. APPOINTMENT OF DIRECTORS; VACANCY. Requires the mayor and members of the governing body of the municipality to appoint directors from persons recommended by the board. Requires that a vacancy in the office of director because of death, resignation, or removal to be filled by appointment of a qualified person for the unexpired term by the remaining members of the board. Prohibits a person from being appointed to the board if the appointment will result in less than two-thirds of the board members being residents of the municipality. Sec. 376.321. EX OFFICIO MEMBERS OF BOARD OF DIRECTORS. Requires that certain enumerated officials of the municipality and county serve as ex officio members of the board. Authorizes the board to appoint a representative of an agency with comparable duties or the director of the new agency if one of the enumerated agencies is consolidated, renamed, changed, or abolished. Authorizes the board to appoint the presiding officers of other nonprofit corporations involved in downtown activities as an ex officio member. Sec. 376.322. POWERS OF DISTRICT. (a) Provides that the district has: (1) all the powers necessary to accomplish its purpose; (2) the rights, powers, privileges, authority, and functions of a district created under Chapter 375; (3) the powers given a corporation under Section 4B (Corporation in City Located in County with Population of 750,000 or More, or 150,000 or More), Article 5190.6 (Development Corporation Act of 1979), V.T.C.S., and the power to own, operate, acquire, construct, lease, improve, and maintain projects described in that section; (4) the power to provide housing or residential development projects created under Chapter 394 (Housing Finance Corporations in Municipalities and Counties), Local Government Code; (5) the power to impose ad valorem taxes, assessments, or impact fees in accordance with Chapter 375 to provide improvements and services authorized under this subchapter. (6) the power to correct, add to, or delete assessments from its roll after notice and hearing as provided in Subchapter F (Assessments), Chapter 375. (b) Prohibits the district from imposing a sales and use tax, and from acquiring property through eminent domain. Sec. 376.323. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING PROPERTY. Provides that, if the district in exercising its power, requires a relocation, adjustment, raising, lowering, rerouting, or changing of the grade or construction of certain listed infrastructure components it must be done at the sole expense of the district. Requires the district to bear the damages suffered by property owners. Sec. 376.324. RELATION TO OTHER LAW. Provides that if any provision of a law referenced in Section 376.322 that is in conflict with this subchapter it prevails, and any law reference that is not in conflict or inconsistent with this subchapter is adopted and incorporated by reference. Sec. 376.325. REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS. Prohibits the board from financing services and improvements unless a written petition is signed by the owners of a majority of the assessed value of property in the district, and at least 50 persons who own property in the district as determined by the most recent certified county property tax roll. Sec. 376.326. PROHIBITED EXEMPTIONS. Prohibits a single family residence or residential duplex, triplex, quadruplex, or condominium from being exempted from imposition of a tax, impact fee, or assessment imposed in accordance with this subchapter. Sec. 376.327. NONPROFIT CORPORATION. Authorizes the board to create by resolution a nonprofit corporation to assist in implementing a project or providing a service authorized by this subchapter. Requires the board to appoint a board of directors for such a nonprofit corporation to serve in the same manner, for the same terms, and on the conditions as a board of directors of a local government corporation created under Chapter 431 (Texas Transportation Corporation Act), Transportation Code. Provides that a nonprofit corporation created under this section has the same powers and is considered for the purposes of this subchapter to be a local government corporation created under Chapter 431, Transportation Code, and is authorized to implement any project or provide any service authorized by this subchapter. Sec. 376.328. DISBURSEMENTS AND TRANSFERS OF FUNDS. Requires the board to establish by resolution the number of directors' signatures and procedures required for disbursement or transfer of the district's money. Sec. 376.329. BONDS. (a) Authorizes the district to issue bonds or other obligations payable in whole or part from ad valorem taxes, assessments, impact fees, revenues, grants, or other money of the district, or any combination thereof, to pay for any authorized purpose of the district. (b) Authorizes bonds or other obligations of the district to be issued in the form of bonds, notes, certificates of participation, including certain specified instruments or other obligations meeting certain conditions. (c) Provides that the district must obtain the municipality's approval of the issuance of bonds for an improvement project, and the plans and specifications of the improvement project to be financed by the bonds, except as provided by Subsection (d). (d) Authorizes the district to finance capital improvements, if the district obtains from the municipality approval of a capital improvement budget for a specified period not to exceed five years, and those improvements and the bonds to finance them are specified in that budget. (e) Requires the district, before it issues bonds, to submit the bonds and record of proceedings of the district relating to authorization of the bonds to the attorney general for approval as provided by Article 717k-8 (Bond Approval), V.T.C.S. Sec. 376.330. ASSESSMENTS. (a) Authorizes the board to impose and collect an assessment for any purpose authorized by this subchapter. (b) Provides that assessments, reassessments, or assessments resulting from additions and corrections of the assessment roll, penalties and interest, collection expenses, and attorney's fees incurred by the district are a first and prior lien against the property assessed, are superior to other liens other than certain ad valorem taxes, are the personal liability of owners of property even if not named in assessment proceedings. (c) Provides that the lien is effective from the date of the board resolution levying the assessment until it is paid. Authorizes the board to enforce the assessment in the same manner as an ad valorem tax lien against real property. Sec. 376.331. APPROVAL OF CERTAIN IMPROVEMENT PROJECTS. Provides that the district must obtain the municipality's approval of the plans and specifications of any district improvement project related to the use of land owned or an easement granted by the municipality, or a right-of-way of a street, road, or highway. Sec. 376.332. ELECTIONS. (a) Requires the district to hold an election to obtain voter approval before imposing a maintenance tax or issuing bonds payable from ad valorem taxes or assessments, in addition to the election required by Chapter 375. (b) Authorizes the board to submit multiple purposes in a single election proposition. (c) Prohibits the board from calling an election unless a written petition requesting such has been filed with the board signed by 50 persons who own land in the district, or the owners of the majority of the assessed value in real property in the district. Sec. 376.333. IMPACT FEES. Authorizes the district to impose an impact fee for an authorized purpose as provided by Subchapter G (Impact Fees), Chapter 375. Sec. 376.334. MAINTENANCE TAX. Authorizes the district to impose and collect an annual ad valorem tax for maintenance and operation of the district and improvements constructed or acquired by the district or for provision of services to industrial or commercial businesses, residents, or property owners. Requires the board to determine the tax rate. Sec. 376.335. DISSOLUTION OF DISTRICT. Authorizes the district to be dissolved as provided by Subchapter M (Dissolution), Chapter 375. Authorizes a district that has debt to be dissolved regardless of Section 375.264 (Limitation) as provided by Subchapter M, Chapter 375. Requires the district, if it has debt and is dissolved, to remain in existence solely for the limited purpose of discharging bonds and other obligations according to their terms. Sec. 376.336. CONTRACTS. (a) Authorizes the district to contract with the municipality or county for the provision of law enforcement services by the county or municipality on a fee basis to protect the public interest. (b) Authorizes the municipality, county, or another political subdivision, without further authorization, to contract with the district to implement a project or assist the district in providing services authorized under this subchapter meeting certain specified conditions. (c) Authorizes the district to enter into a contract, lease, or other agreement with or make or accept grants and loans to or from specified entities. (d) Authorizes the district to perform all acts necessary for the full exercise of the powers vested in it on terms and for the period the board determines advisable. Sec. 376.337. COMPETITIVE BIDDING. Authorizes the district to enter a contract for more than $10,000 for services, improvements, or the purchase of property, including materials, machinery, equipment, or supplies, only as provided by Subchapter K (Competitive Bidding; Disadvantaged Businesses), Chapter 375. Sec. 376.338. REINVESTMENT ZONES. Provides that all or any part of the district is eligible to be included in a tax incremental reinvestment zone created by the municipality under Chapter 311 (Tax Increment Financing Act), Tax Code, or included in a tax abatement reinvestment zone created by the municipality under Chapter 312 (Property Redevelopment and Tax Abatement Act), Tax Code. Sec. 376.339. RECREATIONAL, PARK, OR SCENIC USE PROPERTY. (a) Provides that property is exempt from district assessments if the property meets certain specified conditions. (b) Authorizes the district to assess property described in Subsection (a) if the property owner consents. (c) Provides that property is exempt from assessment by the district during the period that it is used primarily for recreational, park, or scenic use. (d) Prohibits the fact that property is exempt from assessment by the district from being construed to be an express or implied dedication of the property for recreational, park, scenic, or other public use or to constitute evidence of an intent by the owner to do so and does not affect the status of the property as private property. (e) Provides that property that qualifies for exemption from assessment under this section must be taxed by the district at its appraised value for recreational, park, or scenic use determined in accordance with Subchapter F, Chapter 375, if the district levies ad valorem taxes. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.