HBA-TBM H.B. 2998 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2998
By: Callegari
County Affairs
4/2/2001
Introduced



BACKGROUND AND PURPOSE 

Municipal management districts can be a useful tool for financing and
undertaking improvement projects. Representatives of a Houston commercial
area of the City of Houston known as "The Energy Corridor" and state
legislators have joined together to propose a management district to effect
improvements in the area.  The businesses in the area and the population of
Houston would benefit economically from a management district designed to
finance improvements and services in the area.  House Bill 2998 provides
for the creation of the Energy Corridor Management 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. 

ANALYSIS

House Bill 2998 amends the Local Government Code to create the Energy
Corridor Management District (district).  The bill provides that the
district is governed by a board of nine directors (board) and sets forth
provisions regarding the appointment, qualifications, and terms of the
directors as well as ex officio board members.  The bill sets forth the
general powers of the district and authorizes the district to exercise the
powers given to a corporation created under the Development Corporation Act
of 1979 and authorizes the creation of a nonprofit corporation.  The bill
authorizes the district to impose and collect assessments and, with
majority approval of the district's voters, to impose a maintenance tax or
issue bonds payable from ad valorem taxes or assessments.  The bill
prohibits the board from financing improvement projects or services unless
the requisite petition has been filed with the board.  Competitive bidding
requirements do not apply to the district unless a contract is for more
than $25,000.  The board is authorized to vote to dissolve a district that
has debt.   

EFFECTIVE DATE

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