HBA-MPA H.B. 2693 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2693 By: Hope County Affairs 4/5/1999 Introduced BACKGROUND AND PURPOSE Currently, the East Montgomery County Improvement District is a municipal management district created to promote economic development and enhance the public welfare in the eastern area of Montgomery County, and includes approximately 99 square miles consisting of undeveloped land, small cities and rural areas. H.B. 2693 expands the powers of the district to authorize contracts for the lease, operation, and management of improvement projects and expand the district's ability to issue bonds. 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 Section 16, Chapter 1316, Acts of the 75th Legislature, Regular Session, 1997, by adding Subsection (d), to provide that the East Montgomery County Improvement District (district) has the power of a home-rule municipality as provided by Article 835s (Acquisition of Land and Facilities for Lease to Public or Private Entities), V.T.C.S., and of a home-rule municipality with a population of more than 100,000 as provided by Section 380.002 (Economic Development Grants by Certain Municipalities), Local Government Code. SECTION 2. Amends Chapter 1316, Acts of the 75th Legislature, Regular Session, 1997, by adding Section 30A, as follows: Sec. 30A. BONDS. (a) Authorizes the board of directors of the district to issue bonds as provided by Subchapter J (Bonds), Chapter 375, Local Government Code. (b) Authorizes the bonds issued by the district to be secured and made payable wholly or partly, by a pledge of any part of the proceeds the district receives from a specified portion of not more than one-half of the maximum sales and use tax amount authorized and approved by voter of the district under Section 22 (Tax Election Procedures) of this chapter, and repayments the district receives from a municipality because of a required reduction of the district's sales and use tax. (c) Provides that Sections 375.207 (Municipal Approval) and 375.208 (Commission Approval), Local Government Code, do not apply to bonds issued under this section. SECTION 3. Repealer: Sections 29 (Application of Certain Tax Proceeds) and 30 (Limitation on Indebtedness), Chapter 1316, Acts of the 75th Legislature, Regular Session, 1997. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.