HBA-DMH S.B. 1226 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1226 By: Lindsay County Affairs 5/11/2001 Engrossed BACKGROUND AND PURPOSE Municipal management districts can be a useful tool for financing and undertaking improvement projects. Representatives of a Houston commercial area 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. Senate Bill 1226 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 Senate Bill 1226 amends the Local Government Code to create the Energy Corridor Management District (district) and sets forth the boundaries of the district (Secs. 376.451 and 376.454). The bill provides that the district is governed by a board of nine voting directors (board) and sets forth the names and terms of the initial directors ( Secs. 376.459 and 376.477). The bill sets forth provisions regarding the appointment, qualifications, and terms of the voting directors and provisions regarding nonvoting directors (Secs. 376.460-376.461). The bill sets forth the general powers of the district, 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 district may acquire, operate, or charge fees for the use of district conduit, for another person's telecommunication network, fiber optic cable, electronic transmission line, or any other types of transmission line or supporting facility (Secs. 376.463- 376.467). The bill authorizes the board to impose and collect assessments and authorizes the district, with majority approval of the district's voters, to impose and collect a maintenance tax or to issue bonds payable from ad valorem taxes or assessments. The bill prohibits the district from imposing an impact fee or assessment on the property, equipment, right-of-way, facilities, or improvements of an electric utility, a power generation company, a gas utility, or a person that provides cable television or advanced services (Secs. 376.468376.472). The bill sets forth provisions regarding municipal approval of improvement projects and the issuance of bonds for such projects (Sec. 376.473). The bill prohibits the board from financing a service or improvement project unless the requisite petition has been filed with the board (Sec. 376.467). Competitive bidding requirements do not apply to the district unless a contract is for more than $25,000 (Sec. 376.475). The board is authorized to vote to dissolve a district that has debt (Sec. 376.476). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.