Texas 2009 - 81st Regular

Texas House Bill HB1391 Compare Versions

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1	1	81R3605 JTS-F
2	2	By: Strama H.B. No. 1391
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation and authority of certain special districts
8	8	to promote the use of renewable energy systems and energy
9	9	efficiency improvements; authorizing the issuance of bonds.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 386.051(b), Health and Safety Code, is
12	12	amended to read as follows:
13	13	(b) Under the plan, the commission and the comptroller shall
14	14	provide grants or other funding for:
15	15	(1) the diesel emissions reduction incentive program
16	16	established under Subchapter C, including for infrastructure
17	17	projects established under that subchapter;
18	18	(2) the motor vehicle purchase or lease incentive
19	19	program established under Subchapter D;
20	20	(3) the new technology research and development
21	21	program established under Chapter 387; [and]
22	22	(4) the clean school bus program established under
23	23	Chapter 390; and
24	24	(5) emissions management districts under Chapter 391.
25	25	SECTION 2. Section 386.252(c), Health and Safety Code, is
26	26	amended to read as follows:
27	27	(c) Money in the fund may be allocated to the clean school
28	28	bus program and emissions management districts only if:
29	29	(1) the money is available for that purpose after
30	30	money is allocated for the other purposes of the fund as required by
31	31	the state implementation plan; or
32	32	(2) the amount of money deposited to the credit of the
33	33	fund in a state fiscal year exceeds the amount the comptroller's
34	34	biennial revenue estimate shows as the comptroller's estimated
35	35	amount to be deposited to the credit of the fund in that year.
36	36	SECTION 3. Subtitle C, Title 5, Health and Safety Code, is
37	37	amended by adding Chapter 391 to read as follows:
38	38	CHAPTER 391. EMISSIONS MANAGEMENT PROJECT FINANCING THROUGH
39	39	CONTRACTUAL ASSESSMENTS
40	40	SUBCHAPTER A. GENERAL PROVISIONS
41	41	Sec. 391.001. DEFINITIONS. In this chapter:
42	42	(1) "Board" means a district's board of directors.
43	43	(2) "Director" means a board member.
44	44	(3) "District" means an emissions management district
45	45	created under this chapter.
46	46	(4) "Emissions management project" means:
47	47	(A) a renewable energy system; or
48	48	(B) an energy efficiency improvement.
49	49	(5) "Energy efficiency improvement" means an
50	50	installation or modification that is designed to reduce energy
51	51	consumption in a residential or commercial building, including:
52	52	(A) insulation in walls, roofs, floors, and
53	53	foundations and in heating and cooling distribution systems;
54	54	(B) storm windows and doors, multiglazed windows
55	55	and doors, heat-absorbing or heat-reflective glazed and coated
56	56	window and door systems, additional glazing, reductions in glass
57	57	area, and other window and door system modifications that reduce
58	58	energy consumption;
59	59	(C) automatic energy control systems;
60	60	(D) heating, ventilating, or air conditioning
61	61	and distribution system modifications or replacements in a building
62	62	or central plant;
63	63	(E) caulking and weather-stripping;
64	64	(F) replacement or modification of lighting
65	65	fixtures to increase the energy efficiency of the system;
66	66	(G) energy recovery systems; and
67	67	(H) systems to increase the use of natural
68	68	daylight for interior lighting.
69	69	(6) "Local government" mean a municipality or a
70	70	county.
71	71	(7) "Renewable energy system" means a fixture,
72	72	product, device, or interacting group of fixtures, products, or
73	73	devices that produces or uses energy from renewable resources and
74	74	is capable of being installed for use in a commercial or residential
75	75	building, including a system designed to generate electricity for
76	76	use in the building and to be installed on the customer's side of
77	77	the electric utility meter. The term includes:
78	78	(A) a photovoltaic generating system;
79	79	(B) a solar thermal system;
80	80	(C) a small wind generation system;
81	81	(D) a biomass energy system; and
82	82	(E) a geothermal energy system.
83	83	[Sections 391.002-391.050 reserved for expansion]
84	84	SUBCHAPTER B. CREATION OF DISTRICT
85	85	Sec. 391.051. ORDINANCE OR ORDER CREATING DISTRICT. (a)
86	86	The governing body of a local government by ordinance or order may
87	87	establish a district under this chapter.
88	88	(b) The ordinance or order establishing the district must
89	89	designate:
90	90	(1) the district's territory as a defined area inside
91	91	the local government's boundaries in which property owners are
92	92	eligible to participate in contractual assessment agreements with
93	93	the district, which area may include all or any portion of the area
94	94	inside the local government's boundaries;
95	95	(2) five individuals to be the initial directors;
96	96	(3) the kinds of emissions management projects
97	97	eligible for financing by the district; and
98	98	(4) the date and time of a hearing on the creation of
99	99	the district.
100	100	Sec. 391.052. NATURE OF DISTRICT. A district is a special
101	101	district and a political subdivision of the state.
102	102	[Sections 391.053-391.100 reserved for expansion]
103	103	SUBCHAPTER C. GOVERNANCE
104	104	Sec. 391.101. BOARD OF DIRECTORS. The district is governed
105	105	by the board of five directors appointed by the governing body of
106	106	the local government.
107	107	Sec. 391.102. TERMS. Directors serve staggered two-year
108	108	terms, with two or three directors' terms expiring June 1 of each
109	109	year.
110	110	Sec. 391.103. QUALIFICATIONS OF DIRECTOR. To be qualified
111	111	to serve as a director, a person must be at least 18 years old and be
112	112	a resident of the district.
113	113	Sec. 391.104. VACANCIES; QUORUM. (a) A board vacancy is
114	114	filled in the same manner as the original appointment.
115	115	(b) A vacant board position is not counted for the purposes
116	116	of establishing a quorum of the board.
117	117	Sec. 391.105. CONFLICTS OF INTEREST. Chapter 171, Local
118	118	Government Code, governs conflicts of interest for directors.
119	119	Sec. 391.106. COMPENSATION. (a) For purposes of this
120	120	section, "performs the duties of a director" means substantial
121	121	performance of the management of the district's business, including
122	122	participation in board and committee meetings and other activities
123	123	involving the substantive deliberation of district business and in
124	124	pertinent educational programs, but does not include routine or
125	125	ministerial activities such as the execution of documents or
126	126	self-preparation for meetings.
127	127	(b) A local government is authorized to compensate a
128	128	director when the director performs the duties of a director. The
129	129	local government shall compensate a director not more than $50 a day
130	130	for each day the director performs the duties of a director.
131	131	Sec. 391.107. DIRECTOR'S BOND AND OATH. (a) As soon as
132	132	practicable after a director is appointed, the director shall
133	133	execute a $10,000 bond payable to the district and conditioned on
134	134	the faithful performance of the director's duties.
135	135	(b) Each director's bond must be approved by the board, and
136	136	each director shall take the oath of office prescribed by the
137	137	constitution for public officers.
138	138	(c) The bond and oath shall be filed with the district and
139	139	retained in its records.
140	140	Sec. 391.108. OFFICERS. After directors are appointed and
141	141	have qualified by executing a bond and taking the oath, they shall
142	142	organize by electing a president, a vice president, a secretary,
143	143	and any other officers the board considers necessary.
144	144	Sec. 391.109. RULES. The board may adopt rules to
145	145	administer and operate the district.
146	146	[Sections 391.110-391.150 reserved for expansion]
147	147	SUBCHAPTER D. POWERS AND DUTIES
148	148	Sec. 391.151. GENERAL POWERS AND DUTIES. A district may:
149	149	(1) guarantee or otherwise secure loans for the
150	150	purchase and installation of an emissions management project;
151	151	(2) enter into contractual assessment agreements
152	152	under Section 391.152 to finance the purchase and installation of
153	153	an emissions management project;
154	154	(3) make other innovative arrangements to finance the
155	155	purchase and installation of an emissions management project;
156	156	(4) lease equipment and materials for an emissions
157	157	management project to a property owner;
158	158	(5) issue bonds to finance district purposes under
159	159	Subchapter E; and
160	160	(6) apply for grants or other funding under the Texas
161	161	emissions reduction plan under Chapter 386.
162	162	Sec. 391.152. CONTRACTUAL ASSESSMENT AGREEMENTS. (a) A
163	163	district may enter into a contractual assessment agreement with an
164	164	owner of property in the area designated by the local government in
165	165	an order or ordinance under Section 391.051 to finance the purchase
166	166	and installation of an emissions management project for the owner's
167	167	property.
168	168	(b) The board by rule shall establish the terms of an
169	169	agreement under this chapter, including:
170	170	(1) the term of the assessments; and
171	171	(2) the rate of interest on the assessments.
172	172	(c) A contract under this section may allow the property
173	173	owner to directly:
174	174	(1) purchase the equipment and materials for the
175	175	installation of a renewable energy system or an energy efficiency
176	176	improvement; and
177	177	(2) contract for the installation of a renewable
178	178	energy system or energy efficiency improvement.
179	179	Sec. 391.153. ASSESSMENT ROLL. After the district and a
180	180	property owner enter into a contractual assessment agreement, the
181	181	board shall levy the assessments against the property. The board
182	182	shall have an assessment roll prepared showing the assessments
183	183	against each property. The assessment roll shall be filed with the
184	184	secretary of the board or other officer who performs the function of
185	185	secretary and be open for public inspection.
186	186	Sec. 391.154. INTEREST ON ASSESSMENTS; LIEN. (a)
187	187	Assessments bear interest at a rate specified by the board that may
188	188	not exceed the interest rate permitted under Chapter 1204,
189	189	Government Code.
190	190	(b) Interest on an assessment between the effective date of
191	191	the contract and the date the first installment and any related
192	192	penalty is payable shall be added to the first installment. The
193	193	interest or penalties on all unpaid installments shall be added to
194	194	each subsequent installment until paid.
195	195	(c) An assessment and any interest and penalties on that
196	196	assessment is a lien against the property until paid.
197	197	(d) The owner of any property assessed may at any time pay
198	198	the entire assessment against any lot or parcel with interest
199	199	accrued to the date of the payment.
200	200	Sec. 391.155. SUPPLEMENTAL ASSESSMENTS. After notice and
201	201	hearing in the manner required for original assessments, the board
202	202	may make supplemental assessments to correct an omission or mistake
203	203	in an assessment:
204	204	(1) relating to the total cost of the improvement
205	205	project or services; or
206	206	(2) covering delinquencies or costs of collection.
207	207	Sec. 391.156. NO EMINENT DOMAIN. A district may not
208	208	exercise the power of eminent domain.
209	209	[Sections 391.157-391.200 reserved for expansion]
210	210	SUBCHAPTER E. BONDS
211	211	Sec. 391.201. GENERAL OBLIGATION AND REVENUE BONDS. For
212	212	the payment of all or part of the costs of financing the purchase
213	213	and installation of emissions management projects, the board may
214	214	issue bonds in one or more series payable from and secured by
215	215	assessments, Texas emissions reduction plan grants or other
216	216	funding, revenues, grants, gifts, contracts, leases, or any
217	217	combination of those funds. Bonds may be liens on all or part of the
218	218	revenue derived from improvements authorized under this chapter,
219	219	including installment payments of special assessments, or from any
220	220	other source pledged to the payment of the bonds.
221	221	Sec. 391.202. TERMS AND CONDITIONS OF BONDS. (a) Bonds
222	222	may be issued to mature serially or otherwise not more than 40 years
223	223	from their date of issue. Provision may be made for the subsequent
224	224	issuance of additional parity bonds or subordinate lien bonds under
225	225	terms or conditions that may be stated in the order or resolution
226	226	authorizing the issuance of the bonds.
227	227	(b) The bonds are negotiable instruments within the meaning
228	228	and for purposes of the Business & Commerce Code.
229	229	(c) The bonds may be issued registrable as to principal
230	230	alone or as to both principal and interest, shall be executed, may
231	231	be made redeemable before maturity, may be issued in the form,
232	232	denominations, and manner and under the terms, conditions, and
233	233	details, may be sold in the manner, at the price, and under the
234	234	terms, and shall bear interest at the rates as determined and
235	235	provided in the order or resolution authorizing the issuance of the
236	236	bonds.
237	237	(d) Bonds may bear interest and may be issued in accordance
238	238	with Chapters 1201, 1204, and 1371, Government Code, and
239	239	Subchapters A-C, Chapter 1207, Government Code.
240	240	(e) If provided by the bond order or resolution, the
241	241	proceeds from the sale of bonds may be used to pay interest on the
242	242	bonds during and after the period of the acquisition or
243	243	construction of any emissions management project to be provided
244	244	through the issuance of the bonds, to pay administrative and
245	245	operation expenses to create a reserve fund for the payment of the
246	246	principal of and interest on the bonds, and to create any other
247	247	funds. The proceeds of the bonds may be placed on time deposit or
248	248	invested, until needed, in securities in the manner provided by the
249	249	bond order or resolution.
250	250	Sec. 391.203. PLEDGES. (a) The board may pledge all or
251	251	part of the income or assessments from emissions management
252	252	projects financed under this chapter or from any other source to the
253	253	payment of the bonds, including the payment of principal, interest,
254	254	and any other amounts required or permitted in connection with the
255	255	bonds. The pledged income shall be set and collected in amounts
256	256	that will be at least sufficient, with any other pledged resources,
257	257	to provide for all payments of principal, interest, and any other
258	258	amounts required in connection with the bonds and, to the extent
259	259	required by the order or resolution authorizing the issuance of the
260	260	bonds, to provide for the payment of expenses in connection with the
261	261	bonds and to pay operation, maintenance, and other expenses in
262	262	connection with the emissions management projects authorized under
263	263	this chapter.
264	264	(b) Bonds may be additionally secured by a mortgage or deed
265	265	of trust on real property relating to the emissions management
266	266	projects authorized under this chapter owned or to be acquired by
267	267	the district and by chattel mortgages, liens, or security interests
268	268	on personal property appurtenant to that real property. The board
269	269	may authorize the execution of trust indentures, mortgages, deeds
270	270	of trust, or other forms of encumbrance to evidence the
271	271	indebtedness.
272	272	(c) The board may pledge to the payment of the bonds all or
273	273	any part of any grant, donation, revenues, or income received or to
274	274	be received from the United States government or any other public or
275	275	private source.
276	276	Sec. 391.204. REFUNDING BONDS. (a) Bonds issued under this
277	277	chapter may be refunded or otherwise refinanced by the issuance of
278	278	refunding bonds under terms or conditions determined by order or
279	279	resolution of the board. Refunding bonds may be issued in amounts
280	280	necessary to pay the principal of and interest and redemption
281	281	premium, if any, on bonds to be refunded, at maturity or on any
282	282	redemption date, and to provide for the payment of costs incurred in
283	283	connection with the refunding.
284	284	(b) The refunding bonds shall be issued in the manner
285	285	provided by this chapter for other bonds.
286	286	Sec. 391.205. APPROVAL BY ATTORNEY GENERAL; REGISTRATION.
287	287	(a) The district shall submit bonds and the appropriate
288	288	proceedings authorizing their issuance to the attorney general for
289	289	examination.
290	290	(b) If the bonds recite that they are secured by a pledge of
291	291	assessments, revenues, or rentals from a contract or lease, the
292	292	district also shall submit to the attorney general a copy of the
293	293	pledge, contract, or lease and the proceedings relating to it.
294	294	(c) If the attorney general finds that the bonds have been
295	295	authorized and any assessment, contract, or lease has been made in
296	296	accordance with law, the attorney general shall approve the bonds
297	297	and the assessment, contract, or lease, and the bonds shall be
298	298	registered by the comptroller.
299	299	(d) After approval and registration, the bonds and any
300	300	assessment, contract, or lease relating to them are incontestable
301	301	in any court or other forum for any reason and are valid and binding
302	302	obligations for all purposes in accordance with their terms.
303	303	Sec. 391.206. AUTHORIZED INVESTMENTS; SECURITY. (a)
304	304	District bonds are legal and authorized investments for:
305	305	(1) banks, trust companies, and savings and loan
306	306	associations;
307	307	(2) insurance companies;
308	308	(3) fiduciaries, trustees, and guardians; and
309	309	(4) all interest and sinking funds and other public
310	310	funds of the state and agencies, subdivisions, and
311	311	instrumentalities of the state, including counties,
312	312	municipalities, towns, villages, school districts, and all other
313	313	kinds and types of districts, public agencies, and bodies politic.
314	314	(b) District bonds are eligible and lawful security for
315	315	deposits of counties, municipalities, towns, villages, school
316	316	districts, and all other kinds and types of districts, public
317	317	agencies, and bodies politic, to the extent of the market value of
318	318	the bonds, when accompanied by any unmatured interest coupons
319	319	appurtenant to the bonds.
320	320	Sec. 391.207. LOCAL GOVERNMENT APPROVAL. (a) A district
321	321	must obtain the approval of the governing body of the local
322	322	government in which it is located for bond issues for emissions
323	323	management projects.
324	324	(b) Except as provided by Section 391.253, a local
325	325	government is not obligated to pay any bonds, notes, or other
326	326	obligations of the district.
327	327	[Sections 391.208-391.250 reserved for expansion]
328	328	SUBCHAPTER F. DISSOLUTION
329	329	Sec. 391.251. DISSOLUTION BY BOARD VOTE. Except as limited
330	330	by Section 391.253, the board by majority vote may dissolve the
331	331	district at any time.
332	332	Sec. 391.252. DISSOLUTION BY LOCAL GOVERNMENT. (a) Except
333	333	as limited by Section 391.253, the governing body of a local
334	334	government that created the district, by a vote of not less than
335	335	two-thirds of its membership, may by official action dissolve the
336	336	district.
337	337	(b) On the adoption of the ordinance or order, the district
338	338	is dissolved, and the local government succeeds to the property and
339	339	assets of the district and assumes all bonds, debts, obligations,
340	340	and liabilities of the district.
341	341	Sec. 391.253. LIMITATION. A district may not be dissolved
342	342	by its board or by a local government if the district has any
343	343	outstanding bonded indebtedness until that bonded indebtedness has
344	344	been repaid or defeased in accordance with the order or resolution
345	345	authorizing the issuance of the bonds.
346	346	SECTION 4. Section 372.003(b), Local Government Code, is
347	347	amended to read as follows:
348	348	(b) A public improvement project may include:
349	349	(1) landscaping;
350	350	(2) erection of fountains, distinctive lighting, and
351	351	signs;
352	352	(3) acquiring, constructing, improving, widening,
353	353	narrowing, closing, or rerouting of sidewalks or of streets, any
354	354	other roadways, or their rights-of-way;
355	355	(4) construction or improvement of pedestrian malls;
356	356	(5) acquisition and installation of pieces of art;
357	357	(6) acquisition, construction, or improvement of
358	358	libraries;
359	359	(7) acquisition, construction, or improvement of
360	360	off-street parking facilities;
361	361	(8) acquisition, construction, improvement, or
362	362	rerouting of mass transportation facilities;
363	363	(9) acquisition, construction, or improvement of
364	364	water, wastewater, or drainage facilities or improvements;
365	365	(10) the establishment or improvement of parks;
366	366	(11) projects similar to those listed in Subdivisions
367	367	(1)-(10);
368	368	(12) acquisition, by purchase or otherwise, of real
369	369	property in connection with an authorized improvement;
370	370	(13) special supplemental services for improvement
371	371	and promotion of the district, including services relating to
372	372	advertising, promotion, health and sanitation, water and
373	373	wastewater, renewable energy and energy efficiency, public safety,
374	374	security, business recruitment, development, recreation, and
375	375	cultural enhancement; [and]
376	376	(14) payment of expenses incurred in the
377	377	establishment, administration, and operation of the district; and
378	378	(15) acquisition, installation, or improvement of
379	379	renewable energy and energy efficiency improvements.
380	380	SECTION 5. Section 375.112(a), Local Government Code, is
381	381	amended to read as follows:
382	382	(a) An improvement project or services provided by the
383	383	district may include the construction, acquisition, improvement,
384	384	relocation, operation, maintenance, or provision of:
385	385	(1) landscaping; lighting, banners, and signs;
386	386	streets and sidewalks; pedestrian skywalks, crosswalks, and
387	387	tunnels; seawalls; marinas; drainage and navigation
388	388	improvements; pedestrian malls; solid waste, water, sewer, and
389	389	power facilities, including electrical, gas, steam, cogeneration,
390	390	and chilled water facilities; renewable energy and energy
391	391	efficiency improvements; parks, plazas, lakes, rivers, bayous,
392	392	ponds, and recreation and scenic areas; historic areas;
393	393	fountains; works of art; off-street parking facilities, bus
394	394	terminals, heliports, and mass transit systems; and the cost of any
395	395	demolition in connection with providing any of the improvement
396	396	projects;
397	397	(2) other improvements similar to those described in
398	398	Subdivision (1);
399	399	(3) the acquisition of real property or any interest
400	400	in real property in connection with an improvement, project, or
401	401	services authorized by this chapter, Chapter 54, Water Code, or
402	402	Chapter 365 or 441, Transportation Code;
403	403	(4) special supplemental services for advertising,
404	404	economic development, promoting the area in the district, health
405	405	and sanitation, public safety, maintenance, security, business
406	406	recruitment, development, elimination or relief of traffic
407	407	congestion, recreation, and cultural enhancement; and
408	408	(5) expenses incurred in the establishment,
409	409	administration, maintenance, and operation of the district or any
410	410	of its improvements, projects, or services.
411	411	SECTION 6. This Act takes effect September 1, 2009.