82R3306 PAM-D
By: Seliger S.B. No. 459
A BILL TO BE ENTITLED
AN ACT
relating to voluntary assessment of property owners by a
municipality to finance water or energy efficiency improvements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 376, Local Government Code, is amended
by adding Section 376.0001 to read as follows:
Sec. 376.0001. FINDINGS. The legislature finds that the
contractual assessment of property to finance water or energy
efficiency public improvements or the installation of distributed
generation renewable energy sources or water or energy efficiency
improvements described by this chapter as authorized by this
chapter serves the public purposes of economic development and
water and energy conservation.
SECTION 2. Section 376.001, Local Government Code, is
amended to read as follows:
Sec. 376.001. AUTHORIZED FINANCING. An assessment under
this chapter may finance:
(1) water or energy efficiency public improvements to
developed lots for which the costs and time delays of creating an
entity under law to assess the lot would be prohibitively large
relative to the cost of the water or energy efficiency public
improvement to be financed; and
(2) the installation of distributed generation
renewable energy sources or water or energy efficiency improvements
that are permanently fixed to residential, commercial, industrial,
or other real property.
SECTION 3. Sections 376.004(a) and (b), Local Government
Code, are amended to read as follows:
(a) The governing body of a municipality may determine that
it is convenient and advantageous to designate an area of the
municipality within which authorized municipal officials and
property owners may enter into contracts to assess properties for
water or energy efficiency public improvements described by Section
376.001(1) and make financing arrangements under this chapter.
(b) The governing body of a municipality may determine that
it is convenient, advantageous, and in the public interest to
designate an area of the municipality within which authorized
municipal officials and property owners may enter into contracts to
assess properties to finance the installation of distributed
generation renewable energy sources or water or energy efficiency
improvements that are permanently fixed to real property.
SECTION 4. Sections 376.005(b), (c), and (d), Local
Government Code, are amended to read as follows:
(b) The resolution of intention must:
(1) include a statement that the municipality proposes
to make contractual assessment financing available to property
owners;
(2) identify the types of water or energy efficiency
public improvements, distributed generation renewable energy
resources, or water or energy efficiency improvements that may be
financed;
(3) describe the boundaries of the area in which
contracts for assessments may be entered into;
(4) thoroughly describe the proposed arrangements for
financing the program; and
(5) state the time and place for a public hearing and
that interested persons may object to or inquire about the proposed
program at the hearing.
(c) If contractual assessments are to be used to finance the
installation of distributed generation renewable energy sources or
water or energy efficiency improvements that are permanently fixed
to real property, the resolution of intention must state that it is
in the public interest to do so.
(d) The resolution shall direct an appropriate municipal
official to:
(1) prepare a report under Section 376.006; and
(2) consult with the appropriate assessor and
collector as provided by Section 376.009 [appraisal district or
districts] regarding collecting the proposed contractual
assessments with property taxes imposed on the assessed property.
SECTION 5. Sections 376.006 and 376.007, Local Government
Code, are amended to read as follows:
Sec. 376.006. REPORT REGARDING ASSESSMENT. An appropriate
municipal official designated in the resolution shall prepare a
report containing:
(1) a map showing the boundaries of the area within
which contractual assessments are proposed to be offered;
(2) a draft contract specifying the terms that would
be agreed to by the municipality and a property owner within the
contractual assessment area;
(3) a statement of municipal policies concerning
contractual assessments including:
(A) identification of types of water or energy
efficiency public improvements, distributed generation renewable
energy sources, or water or energy efficiency improvements that may
be financed through the use of contractual assessments;
(B) identification of a municipal official
authorized to enter into contractual assessments on behalf of the
municipality;
(C) a maximum aggregate dollar amount of
contractual assessments;
(D) a method for ranking requests from property
owners for financing through contractual assessments in priority
order if requests appear likely to exceed the authorization amount;
and
(E) a method for ensuring that property owners
requesting financing demonstrate the financial ability to fulfill
financial obligations under the contractual assessments;
(4) a plan for raising a capital amount required to pay
for work performed in accordance with contractual assessments that:
(A) may include:
(i) amounts to be advanced by the
municipality through funds available to it from any source; and
(ii) the sale of bonds or other financing;
(B) shall include a statement of or method for
determining the interest rate and period during which contracting
property owners would pay any assessment; and
(C) shall provide for:
(i) any reserve fund or funds; and
(ii) the apportionment of all or any
portion of the costs incidental to financing, administration, and
collection of the contractual assessment program among the
consenting property owners and the municipality; and
(5) the results of the consultations with the
appropriate assessor and collector as provided by Section 376.009
regarding collecting [appraisal districts concerning
incorporating] the proposed contractual assessments with [into the
assessments of] property taxes imposed on the assessed property.
Sec. 376.007. DIRECT PURCHASE BY OWNER. On the written
consent of an authorized municipal official, the proposed
arrangements for financing the program pertaining to the
installation of distributed generation renewable energy sources or
water or energy efficiency improvements that are permanently fixed
to real property may authorize the property owner to:
(1) purchase directly the related equipment and
materials for the installation of the distributed generation
renewable energy sources or water or energy efficiency
improvements; and
(2) contract directly for the installation of the
distributed generation renewable energy sources or water or energy
efficiency improvements.
SECTION 6. Chapter 376, Local Government Code, is amended
by adding Section 376.0071 to read as follows:
Sec. 376.0071. RECORDING OF NOTICE OF CONTRACTUAL
ASSESSMENT REQUIRED. (a) A municipality that authorizes financing
through contractual assessments under this chapter shall file
written notice of each contractual assessment in the real property
records of the county in which the property is located.
(b) The written notice must be in recordable form and must
contain:
(1) the amount of the assessment;
(2) the legal description of the property;
(3) the name of each property owner; and
(4) a reference to the statutory assessment lien
provided under this chapter.
SECTION 7. Section 376.008, Local Government Code, is
amended to read as follows:
Sec. 376.008. LIEN. (a) A contractual [An] assessment
[imposed] under this chapter and any interest or penalties on the
assessment:
(1) is [constitutes] a first and prior lien against
the lot on which the assessment is imposed until the assessment,
interest, or penalty is paid; and
(2) has the same priority as a lien for municipal
property taxes.
(b) The lien runs with the land, and that portion of an
assessment under the assessment contract that has not yet come due
is not eliminated by foreclosure of a property tax lien.
(c) To the extent practicable, the assessment lien may be
enforced by the municipality in the same manner that a property tax
lien against real property may be enforced by the municipality.
(d) Delinquent installments of the assessment shall incur
interest and penalties in the same manner as delinquent property
taxes.
(e) A municipality may recover costs and expenses,
including attorney's fees, in a suit to collect a delinquent
installment of an assessment in the same manner as in a suit to
collect a delinquent property tax.
SECTION 8. Chapter 376, Local Government Code, is amended
by adding Section 376.009 to read as follows:
Sec. 376.009. COLLECTION OF ASSESSMENTS. (a) If the
municipality authorizing financing through contractual assessments
under this chapter imposes property taxes, the assessor and
collector for the municipality shall collect the assessments under
this chapter. If the property on which an assessment is imposed is
subject to property taxation, the assessor and collector shall
include the assessment in the tax bill prepared and mailed as
provided by Section 31.01, Tax Code. The tax bill must separately
state the amount of an assessment imposed under this chapter.
(b) If the municipality does not impose property taxes, the
municipality may collect the assessments under this chapter or may
contract with a third party, including the county
assessor-collector, to collect the assessments. The county
assessor-collector has the authority to collect assessments under
this chapter as provided by this subsection.
(c) If the municipality collects its own property taxes and
the governing body of the municipality authorizes split payment of
taxes under Section 31.03, Tax Code, the assessor and collector for
the municipality shall consider an assessment imposed under this
chapter and included in the tax bill a municipal tax in applying
each payment for a person who makes split payments.
(d) An assessor and collector that accepts a partial payment
on a tax bill that includes more than one taxing unit and includes
an assessment under this chapter shall consider the assessment a
municipal tax in allocating partial payments among taxing units as
provided by Section 31.07, Tax Code. An assessor and collector that
accepts a partial payment on a tax bill that includes only a
municipal tax and an assessment under this chapter shall allocate
the partial payment in proportion to the amount of the municipal
taxes and the assessment included in the bill.
SECTION 9. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.