Office of House Bill AnalysisH.B. 1990
By: Turner, Sylvester
County Affairs


A recent survey found that residents in the near northwest area of Houston
have concerns about public safety and economic decline in the area.
Municipal management districts have been used in other parts of the city
and around the state to promote and coordinate economic growth and public
welfare.  House Bill 1990 creates the Near Northwest Management District in
the city of Houston. 


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. 


House Bill 1990 amends the Local Government Code to create the Near
Northwest Management District (district) to promote economic development,
cultural activities, and public welfare in the northwest area of the city
of Houston (Secs. 376.451 and 376.452).  The bill provides that the
district is subject to provisions regulating municipal management districts
(Sec. 376.457).  The bill provides that the district is governed by a board
of nine directors (board) who are appointed by the mayor and the city
council of Houston and who serve staggered four year terms.  The board is
authorized to increase or decrease the number of directors to up to 30 but
no fewer than nine (Secs. 376.459, and 376.460).  The bill grants the
district the power to impose ad valorem taxes, assessments, or impact fees
(Sec. 376.461).  The bill prohibits the district from imposing a sales and
use tax or exercising the power of eminent domain (Secs. 376.462, and

The bill exempts the district from provisions requiring a public official
to file an affidavit concerning a potential conflict of interest and to
abstain from participating in matters related to the conflicting
relationship and sets forth specific requirements relating to conflict of
interest (Sec. 376.465).  If the district requires a change in specified
elements of infrastructure, the bill requires the district to take action
at the sole expense of the district (Sec. 376.466).  The bill prohibits the
district from financing services and improvement projects unless a written
petition requesting those services and projects has been filed with the
board (Sec. 376.468).  The bill authorizes the board to create a nonprofit
corporation to assist and act on behalf of the district in implementing a
project of the district (Sec. 376.469).  The bill requires the board to
establish the number of directors' signatures and the procedure required
for a disbursement or transfer of the district's money (Sec. 376.470). 

The bill authorizes the district to issue bonds or other obligations
payable in whole or in part from ad valorem taxes, assessments, impact
fees, revenues, grants, or other money of the district, or any combination
of those sources of money to pay for any authorized purpose of the
district.  The bill provides that the district must obtain the
municipality's approval for the issuance of bonds for a capital improvement
project and once approved, the district may finance the capital
improvements and issue bonds specified in the budget without further
municipal approval (Sec. 376.471). The bill prohibits the district from
imposing an impact fee or assessment on a residence homestead, or the
property, equipment, or facilities of a utility (Sec. 376.473). 
The bill requires the district to hold an election to obtain voter approval
before the district imposes a maintenance tax or issues bonds payable from
ad valorem taxes or assessments and if approved, the board is required to
determine the rate of the tax (Secs. 376.474 and 376.476).  If authorized
at an election, the bill authorizes the district to impose and collect an
annual ad valorem tax on taxable property in the district for the
maintenance and operation of the district and the improvements constructed
or acquired by the district or for the provision of services (Sec.
376.476).  The bill provides for the dissolution of the district and for
the discharging of bonds or other obligations once dissolved (Sec.
376.477).  The bill authorizes the district to contract with the
municipality or the county for the provision of law enforcement services in
the district for a fee.  The bill authorizes the municipality, the county,
or another political subdivision of the state without further authorization
to contract with the district to implement a project of the district or
assist the district in providing services.  The bill authorizes the
district to enter into a contract, lease, or other agreement, and to make
or accept grants and loans (Sec. 376.478).  The bill authorizes the
district to annex territory (Sec. 376.479) 


On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.