HBA-NLM H.B. 922 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 922
By: Noriega
County Affairs
3/22/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, there is no entity in place to help improve economic development
opportunities in the East End area of the City of Houston.  This bill
creates the Greater East End Management District to assist area businesses
by building and maintaining additional infrastructure, improving the safety
of the area, and coordinating job training and workforce development. As
proposed, H.B. 922 creates the Greater East End Management District, and
authorizes the issuance of bonds, and the imposition of taxes by that
entity.  

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
G, as follows: 

SUBCHAPTER G.  GREATER EAST END MANAGEMENT DISTRICT

Sec. 376.261.  CREATION OF DISTRICT.  Establishes the creation of the
"Greater East End Management District" as a governmental agency, body
politic and corporate, and political subdivision of the state and provides
that the creation of the district is to accomplish certain purposes.
Provides that the name of the district may be changed by resolution of the
board of directors of the district (board). 

Sec. 376.262.  DECLARATION OF INTENT.  Provides that the creation of the
district is necessary to promote, develop, encourage, and maintain
employment, commerce, transportation, housing, tourism, recreation, arts,
entertainment, economic development, safety, and the public welfare in the
Greater East End of the City of Houston.  Specifies that the creation of
the district and this legislation  are not to be interpreted to relieve the
county or the municipality from providing the level of services provided as
of September 1, 1999, or from the obligations each entity has to provide
services to the area in the district. Specifies that the creation of the
district is to supplement services provided in the area in the district,
rather than replace municipal or county services. Provides that the
legislature has established a program to accomplish the public purposes set
out in Section 52-a (Loan or Grant of Public Money for Economic
Development), Article III, Texas Constitution, by the creation of the
district and through the authorization for the municipality, county, and
other political subdivisions to contract with the district. 

Sec. 376.263.  DEFINITIONS.  Defines "board," "district," "municipality,"
and "county." 

Sec.  376.264.  BOUNDARIES.  Establishes that the district includes all the
territory set forth in this section. 

Sec. 376.265.  FINDINGS RELATING TO BOUNDARIES.  Sets forth that the
boundaries and field notes of the district form a closure.  Provides that a
mistake made in the field notes or in copying the field notes in the
legislative process does not affect the organization,  existence, and
validity of the district or the right of the district to impose and collect
assessments or taxes or to issue any type of bonds or refunding bonds for
the purposes for which the district is created or to pay the principal of
and interest on the bonds or legality or operation of the district or its
governing body.  

Sec. 376.266.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  Sets forth
findings, as follows: 

(a)  The land and included property in the district will benefit from the
improvements and services   provided under this section. 

(b)  The creation of the district is in the public interest to further the
development and diversification of the economy of the state, eliminate
unemployment and underemployment, and develop or expand transportation and
commerce. 

(c) The district will promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors, consumers
in the district, and the general public; provide needed funding for the
Greater East End area to preserve, maintain, and enhance the economic
health and vitality of the area as a community and business center; further
promote the health, safety, welfare, and enjoyment of the public, as
provided; and further eliminate unemployment and underemployment and
develop or expand transportation and commerce, as provided. 

(d) Provides that pedestrian ways along or across a street  and street
lighting, landscaping, and art objects are considered to be a street or
road improvement. 

(e)  The district will not act as the agent or instrumentality of any
private interest. 

Sec. 376.267.  APPLICATION OF OTHER LAW.  Applies the provisions of Chapter
375 (Municipal Management Districts in General) to the district, except as
otherwise provided by this subchapter. 

Sec. 376.268.  CONSTRUCTION OF SUBCHAPTER. Provides for the liberal
interpretation of findings and purposes stated in this subchapter. 

Sec.  376.269.  BOARD OF DIRECTORS IN GENERAL.  Establishes a board of
directors to govern the district and provides for staggered terms. Applies
the provisions of Subchapter D, Chapter 375, to the board to the extent
that there is no conflict . 

Sec.  376.270.  APPOINTMENT OF DIRECTORS; VACANCY.  Requires the mayor and
members of the governing body of the municipality to appoint directors from
among persons recommended by the board.  Requires a vacancy in the office
of director due to death, resignation, or removal to be filled by the
remaining members of the board by appointing a qualified person for the
unexpired term. 

Sec. 376.271.  POWERS OF DISTRICT.  Sets forth certain powers of the
district. 

Sec. 376.272.  EMINENT DOMAIN.  Prohibits the district from exercising the
power of eminent domain. 

Sec. 376.273.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING
PROPERTY.  Provides that if the district, in exercising a power conferred
by this subchapter, requires a relocation, adjustment, raising, lowering,
rerouting, or changing the grade or the construction of any of the items
specified under this section, the district must take that required action
at the sole expense of the district. Requires the district to bear damages
that are suffered by owners of the facility or property. 

Sec. 376.274.  RELATION TO OTHER LAW.  Provides that this subchapter
prevails if any provision of a law referenced in this subchapter is in
conflict with or is inconsistent with this  subchapter.  Provides that any
law referenced in this subchapter that is not in conflict or inconsistent
with this subchapter is adopted and incorporated by reference. 

Sec. 376.275.  REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS.
Prohibits the district from financing services and improvement projects
under this subchapter unless a written petition regarding those
improvements or services has been filed with the board.  Specifies the
required parties that must sign the petition. 

Sec. 376.276.  NONPROFIT CORPORATION.  Authorizes the board by resolution
to authorize the creation of a nonprofit corporation to assist and act on
behalf of the district in implementing a project or providing a service
authorized by this subchapter.  Requires the board to appoint the board of
directors of a nonprofit corporation created under this section. Requires
the board of directors of the nonprofit corporation to serve in the same
manner as, for the same term as, and on the conditions of the board of
directors of a local government corporation created under Chapter 431
(Texas Transportation Corporation Act), Transportation Code.  Sets forth
the powers of the nonprofit corporation and provides that for the purposes
of this subchapter it is considered to be a local government corporation
created under Chapter 431, Transportation Code.  Authorizes a nonprofit
corporation created under this section to implement any project and provide
any services authorized by this subchapter. 

Sec. 376.277.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  Requires the board by
resolution to establish the number of directors' signatures and the
procedure required for a disbursement or transfer of the district's money. 

Sec. 376.278.  BONDS.  Authorizes the district to issue bonds and other
obligations in the manner described in this section.  Provides that the
district must obtain the municipality's approval of the issuance of bonds
relating to an improvement project, except as otherwise provided by this
section.  Authorizes the district to finance the capital improvements and
issue specified bonds without further municipal approval if the district
obtains the municipality's approval of a capital improvements budget for a
specified period.  Requires the district to submit to the attorney general
the bonds and the record of proceedings of the district relating to
authorization of the bonds. 

Sec. 376.279.  ASSESSMENTS.  Authorizes the board to impose and collect an
assessment for any purpose authorized by this subchapter. Provides that
certain assessments, penalties and interest, expenses, and reasonable
attorney's fees incurred by the district are a first and prior lien against
the property assessed, are superior to any other lien or claim, except as
otherwise provided, and are the personal liability of and charge against
the owners of the property.  Provides that the lien is effective from the
date of the resolution of the board levying the assessment until the
assessment is paid.  Authorizes the board to enforce the lien in the same
manner that the board may enforce an ad valorem tax lien against real
property.  

Sec. 376.280.  PROPERTY EXEMPTED FORM TAX, FEE, OR ASSESSMENT.  Prohibits
the district from imposing a tax, impact fee, or assessment on a
residential property, multiunit residential property, or condominium.
Prohibits the district from imposing an impact fee or assessment on the
property, equipment, or facilities of an electric utility as defined by
Section 31.002 (Definitions), Utilities Code. 

Sec. 376.281.  ELECTIONS.  Requires the district to hold an election in the
manner provided by Subchapter L (Elections), Chapter 375, to obtain voter
approval before the district imposes a maintenance tax or issues bonds
payable for ad valorem taxes or assessments. Authorizes the board to submit
multiple purposes in a single proposition at an election.   

Sec. 376.282.  IMPACT FEES.  Authorizes the district to impose an impact
fee for an authorized purpose as provided by Subchapter G (Impact Fees),
Chapter 375. 

Sec. 376.283.  MAINTENANCE TAX.  Authorizes the district, if authorized at
an election held in accordance with Section 376.281, to impose and collect
an annual ad valorem tax on  taxable property in the district for the
maintenance and operation of the district and the improvements constructed
or acquired by the district or for the provision of services. Requires the
board to determine the tax rate. 

Sec. 376.284.  WORKFORCE DEVELOPMENT, WORKFORCE EDUCATION, AND JOB TRAINING
OPPORTUNITIES. Requires the district to participate in the establishment
and implementation of job training, workforce education, and workforce
development opportunities, described in this section, for a minimum period
of five years.  Requires the district to allocate no less than three
percent of its assessment revenues to these types of activities during the
initial required three-year period.  Authorizes the district to create a
nonprofit corporation to assist or act on behalf of the district to
implement this section. 

Sec. 376.285.  DISSOLUTION OF THE DISTRICT.  Authorizes the district to be
dissolved as provided in Subchapter M (Dissolution), Chapter 375.  Requires
the district to remain in existence, if the district has debt and is
dissolved, solely for the limited purpose of discharging its bonds or other
obligations according to their terms. 

Sec. 376.286.  CONTRACTS.  Authorizes the district to contract with the
municipality or the county for the provision of law enforcement services by
the municipality or the county in the district on a fee basis to protect
the public interest.  Authorizes certain entities to contract with the
district to implement a project of the district or assist the district in
providing the services authorized under this subchapter.  Specifies the
terms for a contract under this section.  Authorizes the district to enter
into a contract, lease, or other agreement with or make or accept grants
and loans to or from certain entities described in this section. Authorizes
the district to perform all acts necessary for the full exercise of the
powers vested in the district on terms and for the period the board
determines advisable. 

Sec. 376.287.  INITIAL DIRECTORS.  Provides that the board consists of the
persons named in this section and specifies the terms for certain appointed
positions.  Provides that this section expires September 1, 2004. 

SECTION 2.  Sets forth the findings of the legislature.

SECTION 3.  Emergency clause.
  Effective date: upon passage.