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).