H.B. No. 1400 AN ACT relating to public improvement districts designated by a municipality or county. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 372.003, Local Government Code, is amended by adding Subsection (b-1) to read as follows: (b-1) Payment of expenses under Subsection (b)(14) may also include expenses related to the operation and maintenance of mass transportation facilities. SECTION 2. Subchapter A, Chapter 372, Local Government Code, is amended by adding Section 372.0035 to read as follows: Sec. 372.0035. COMMON CHARACTERISTIC OR USE FOR PROJECTS IN CERTAIN MUNICIPALITIES. (a) This section applies only to: (1) a municipality that has a population of more than one million and a council-manager form of government and that is located wholly or partly in a county with a population of more than two million; and (2) a public improvement district established under this subchapter and solely composed of territory in which the only businesses are hotels with 100 or more rooms ordinarily used for sleeping. (b) A municipality may undertake a project that confers a special benefit on areas that share a common characteristic or use. The areas may be noncontiguous. (c) This section does not prohibit a municipality from or limit a municipality to establishing a district that includes a noncontiguous area authorized by this subchapter. SECTION 3. Subchapter A, Chapter 372, Local Government Code, is amended by adding Section 372.0055 to read as follows: Sec. 372.0055. DEFERRED ASSESSMENT; ESTIMATE. If a proposed improvement under Section 372.005 includes a deferred assessment, before holding the hearing required by Section 372.009, the governing body of the municipality or county must estimate: (1) the appraised value of taxable real property liable for assessment in the district; and (2) the cost of the improvement. SECTION 4. Section 372.017(b), Local Government Code, is amended to read as follows: (b) After all objections have been heard and the governing body has passed on the objections, the governing body by ordinance or order shall levy the assessment as a special assessment on the property. The governing body by ordinance or order shall specify the method of payment of the assessment. The governing body may defer an assessment until a date the governing body specifies in the ordinance or order. The governing body may provide that assessments be paid in periodic installments, at an interest rate and for a period approved by the governing body. The provision that assessments be paid in periodic installments may, but is not required to, result in level annual installment payments. The installments must be in amounts necessary to meet annual costs for improvements and must continue for: (1) the period necessary to retire the indebtedness on the improvements; or (2) the period approved by the governing body for the payment of the installments. SECTION 5. Section 372.041(a), Local Government Code, is amended to read as follows: (a) A home-rule municipality may create improvement districts for the purposes of: (1) levying, straightening, widening, enclosing, or otherwise improving a river, creek, bayou, stream, other body of water, street, or alley; (2) draining, grading, filling, and otherwise protecting and improving the territory within the municipality's limits; [and] (3) issuing bonds to finance improvements listed in this subsection; and (4) financing an improvement described in Subchapter A. SECTION 6. This Act takes effect September 1, 2011. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1400 was passed by the House on April 14, 2011, by the following vote: Yeas 142, Nays 0, 1 present, not voting; that the House refused to concur in Senate amendments to H.B. No. 1400 on May 26, 2011, and requested the appointment of a conference committee to consider the differences between the two houses; and that the House adopted the conference committee report on H.B. No. 1400 on May 29, 2011, by the following vote: Yeas 146, Nays 0, 1 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 1400 was passed by the Senate, with amendments, on May 24, 2011, by the following vote: Yeas 30, Nays 0; at the request of the House, the Senate appointed a conference committee to consider the differences between the two houses; and that the Senate adopted the conference committee report on H.B. No. 1400 on May 29, 2011, by the following vote: Yeas 31, Nays 0 . ______________________________ Secretary of the Senate APPROVED: __________________ Date __________________ Governor