HBA-KDB H.B. 3682 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3682 By: Alexander Natural Resources 4/23/2001 Committee Report (Amended) BACKGROUND AND PURPOSE Currently, there is no improvement district in Navarro County. If such a district were to exist, it might help promote, develop, encourage, and maintain employment, commerce, transportation, and economic development in the county. House Bill 3682 creates the NTM Improvement District in Navarro County. 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 3682 creates the NTM Improvement District (district) in Navarro County (county) as a municipal utility district, a navigation district, and a county development district. The bill authorizes the board of directors of the district (board) by resolution to change the district's name (SECTION 1). The bill sets forth the boundaries of the district (SECTION 4). The bill provides that the district is governed by a board of five directors and sets forth provisions regarding the election and terms of directors as well as the names of the temporary directors (SECTION 10, 11, and 12). The bill authorizes the district to exercise any of its powers in areas outside the boundaries of the district, to provide for general promotion and tourist advertising of the district, and to exercise the power of eminent domain (SECTION 8). Provisions relating to regulation of conflict of interest of officers of municipalities, counties, and certain other local governments govern conflicts of interests for board members, except provisions regarding affidavit and abstention from voting. The bill sets forth provisions regarding conflicts of interest (SECTION 13). The bill authorizes the district to impose a limited sales and use tax for the benefit of the district by order or resolution of the board. The bill sets forth provisions relating to the use of and limitation on the limited sales and use tax (SECTIONS 14, 15, and 16). The bill authorizes the board to impose a hotel occupancy tax at any rate not to exceed nine percent of the price paid for the room and sets forth provisions for the use of hotel occupancy tax proceeds (SECTIONS 17 and 18). The bill authorizes the board to issue bonds, notes, or other obligations. The bill requires any bonds secured by ad valorem taxes issued for water, wastewater, or drainage improvements to be approved by the Texas Natural Resource Conservation Commission. The district is prohibited from issuing bonds secured by ad valorem taxes or from levying an ad valorem tax unless approved by a majority of the electors of the district (SECTIONS 19 and 20). The bill authorizes the board to establish and provide for the administration of one or more programs, including programs for making loans and grants of public money and providing personnel and services of the district to promote state or local economic development and to stimulate business, commercial, and tourism activity in the district (SECTION 22). The bill 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 (SECTION 23). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. EXPLANATION OF AMENDMENTS Committee Amendment No. 1 removes the provision that authorized the NTM Improvement District to exercise any of its powers in areas outside the boundaries of the district (SECTION 8).