HBA-MPM S.B. 1782 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1782 By: Shapiro County Affairs 5/2/2001 Engrossed BACKGROUND AND PURPOSE According to the United States Census Bureau, Frisco, Texas is the fastest growing city in the state and the second fastest growing city in the nation. The rapid growth creates demands on the city's physical infrastructure as well as the city's budget. Many historical buildings in the downtown sector of Frisco are in need of improvement, and a new town center has been proposed by individuals who own property nearby. A management district would help provide a public financing mechanism that will fund these improvements as well as provide for other services. Senate Bill 1782 creates the Frisco Square 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 1782 amends the Local Government Code to create the Frisco Square Management District (district) (Sec. 376.451). The bill sets forth the boundaries of the district, findings related to the boundaries, and findings of benefit and public purpose (Secs. 376.454-376.456). The bill establishes a five-member board and sets forth provisions regarding the composition of the board, appointment of directors, terms, ex officio members, conflicts of interests, and powers and duties as well as the names of the initial directors (Secs. 376.459-376.463 and SECTION 3). S.B. 1782 authorizes the district to make an agreement with or accept a donation, grant, or loan from any person. A municipality, county, or other political subdivision is allowed to contract with the district for purposes of maintenance and provision of services (Sec. 376.464). The bill authorizes the board to authorize the creation of a nonprofit corporation to assist and act on the district's behalf in implementing a project or providing a service (Sec. 376.465). The bill authorizes the district to annex certain territories (Sec. 376.466). The bill prohibits the board from financing a service or improvement project unless a written petition signed by the owners of a majority of the assessed value of real property in the district or at least 25 persons who own land in the district has been filed with the board (Sec. 376.467). The bill requires the district to hold an election for the purpose of obtaining voter approval before imposing a maintenance tax or issuing bonds and authorizes the board to impose and collect an ad valorem tax on taxable property in the district (Secs. 376.468 and 376.469). The bill authorizes the board to impose and collect assessments for purposes of improvements and services (Sec. 376.470). The bill makes provisions for an assessment lien against property. However, the district is prohibited from imposing an assessment or impact fee on a utility property (Secs. 376.471 and 376.472). The bill provides that the district must obtain from the municipality's governing body approval of the issuance of bonds for improvement purposes and the plans and specifications of an improvement financed by the bonds, except that the district may finance capital improvements and issue bonds specified in the budget without further approval from the municipality if the district obtains approval for the improvements for a period not to exceed five years (Sec. 376.473). S.B. 1782 makes provisions regarding the disbursement or transfer of district funds, sets the district competitive bidding limit at $25,000, and prohibits the dissolution of the district while it has outstanding debt (Secs. 376.474-376.476). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.