HBA-MSH C.S.H.B. 2295 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2295
By: Woolley
County Affairs
4/1/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Harris County Improvement District No. 1 (district) was created in
1987.  Since that time, numerous other municipal management districts have
been created and statutes have been passed governing their general
operation.  The district is not able to meet its obligation and accomplish
its goals in the same manner as other  municipal management districts.
C.S.H.B. 2295 applies existing statutes relating to  municipal management
districts to the district and authorizes the district to impose an ad
valorem property tax, assessment, or impact fee, create a nonprofit
corporation, charge fees for the use of certain conduits, and annex certain
territories. 

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

C.S.H.B. 2295 amends law to provide that the Harris County Improvement
District No. 1 (district) has the rights, powers, privileges, authority,
and functions of a municipal management district.  The bill authorizes the
district to impose an ad valorem tax, assessment, or impact fee to provide
improvements or services if a written petition has been filed with the
board of directors of the district (board), requesting those improvements
or services signed by the owners of 50 percent or more of the assessed
value of the property in the district or 25 owners of property in the
district if there are more than 25 persons who own property in the
district. 

The bill authorizes the board to create by resolution a nonprofit
corporation to assist and act on behalf of the district in implementing a
project or providing a service of the district and requires the board to
appoint the board of directors of the nonprofit corporation.  The bill
authorizes the district to finance, acquire, construct, improve, operate,
maintain, or charge fees for the use of conduits for fiber-optic cable,
electronic transmission lines, or other types of transmission lines and
supporting facilities and finance, acquire, construct, improve, operate, or
maintain conference centers and supporting facilities.  The bill authorizes
the district to annex territory in accordance with provisions relating to
general and special law districts, subject to the approval of the Houston
city council.  The bill also authorizes the district to annex territory
located inside the boundaries of a reinvestment zone only if a majority of
the qualified voters in the area that the district wants to annex approve
the annexation and the assumption of the bonds and taxes of the district.
The bill validates and confirms all previous governmental acts and
proceedings of the district and the district's board of directors, but not
any matter that is involved in litigation if the litigation results in the
matter being held invalid or any matter that has already been held invalid. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 


 COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2295 amends the original by adding provisions to require the
Harris County Improvement District No. 1 (district) to receive the approval
of the Houston city council before annexing territory in accordance to
provisions relating to general and special law districts.  The substitute
also authorizes the district to annex territory located inside the
boundaries of a reinvestment zone subject to the approval of the qualified
voters in that area and sets forth provisions regarding the annexations.
The substitute prohibits the district from imposing an impact fee or
assessment on property of an electric utility, power generation company, or
a gas utility.