By: Elkins (Senate Sponsor - West) H.B. No. 1400
(In the Senate - Received from the House April 18, 2011;
April 26, 2011, read first time and referred to Committee on
Intergovernmental Relations; May 19, 2011, reported adversely,
with favorable Committee Substitute by the following vote: Yeas 5,
Nays 0; May 19, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 1400 By: West
A BILL TO BE ENTITLED
AN ACT
relating to the boundaries and financing of 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. Subchapter A, Chapter 372, Local Government
Code, is amended by adding Section 372.031 to read as follows:
Sec. 372.031. FINDINGS PRIOR TO ISSUANCE OF CERTAIN BONDS
OR OBLIGATIONS. (a) Prior to the issuance under this chapter of
bonds or obligations wholly or partly payable from or secured by
assessments, the governing body of a municipality with a population
of 250,000 or less or the governing body of a county with a
population of 1 million or less issuing the bonds or obligations
must find and determine the following:
(1) construction of all underground water,
wastewater, and drainage facilities and roadways to serve the real
property liable for assessments necessary to support the payment of
the bonds or obligations is at least 95 percent complete; and
(2) construction of at least 25 percent of the houses
or other buildings on the real property liable for assessments and
necessary to support the bonds or obligations has been completed.
(b) Prior to the issuance under this chapter of bonds or
obligations wholly or partly payable from or secured by
assessments, a municipality with a population of more than 250,000
or a county with a population of more than 1 million issuing the
bonds or obligations must obtain an independent market study from a
firm recognized in the area of real estate market analysis
supporting the development projects for the real property liable
for assessments and necessary to support the payment of the bonds or
obligations.
(c) Subsections (a) and (b) do not apply to general
obligation bonds or certificates of obligations.
(d) The Attorney General shall adopt rules to enforce this
section and to ensure the integrity and economic feasibility of
bonds or obligations issued under this chapter.
SECTION 6. 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 7. This Act takes effect September 1, 2011.
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