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.