Texas 2015 - 84th Regular

Texas House Bill HB3187 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	By: Keffer, Workman (Senate Sponsor - Lucio) H.B. No. 3187
2		-	(In the Senate - Received from the House May 4, 2015;
3		-	May 5, 2015, read first time and referred to Committee on
4		-	Intergovernmental Relations; May 13, 2015, reported favorably by
5		-	the following vote: Yeas 6, Nays 0; May 13, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 3187
7	2
8	3
9		-	COMMITTEE VOTE
10		-	YeaNayAbsentPNV
11		-	LucioX
12		-	BettencourtX
13		-	CampbellX
14		-	GarciaX
15		-	MenéndezX
16		-	NicholsX
17		-	TaylorofGalvestonX
18		-	A BILL TO BE ENTITLED
19	4		AN ACT
20	5		relating to assessments for water and energy improvements in
21	6		municipalities and counties; changing a fee.
22	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
23	8		SECTION 1. Section 399.003, Local Government Code, is
24	9		amended to read as follows:
25	10		Sec. 399.003. EXERCISE OF POWERS. (a) In addition to the
26	11		authority provided by Chapter 376 for municipalities, the governing
27	12		body of a local government that establishes a program in accordance
28	13		with the requirements provided by Section 399.008 may exercise
29	14		powers granted under this chapter.
30	15		(b) The establishment and operation of a program under this
31	16		chapter by a local government is a governmental function for all
32	17		purposes.
33	18		SECTION 2. Sections 399.006(b) and (c), Local Government
34	19		Code, are amended to read as follows:
35	20		(b) An authorized representative [official] of the local
36	21		government that establishes a program may enter into a written
37	22		contract with a record owner of real property in a region designated
38	23		under this chapter to impose an assessment to repay the owner's
39	24		financing of a qualified project on the owner's property. The
40	25		financing to be repaid through assessments may be provided by a
41	26		third party or, if authorized by the program, by the local
42	27		government.
43	28		(c) If the program provides for third-party financing, the
44	29		authorized representative [official] of the local government that
45	30		enters into a written contract with a property owner under
46	31		Subsection (b) must also enter into a written contract with the
47	32		party that provides financing for a qualified project under the
48	33		program to service the debt through assessments.
49	34		SECTION 3. Section 399.007(a), Local Government Code, is
50	35		amended to read as follows:
51	36		(a) The governing body of a local government may determine
52	37		that it is convenient and advantageous to designate an area of the
53	38		local government as a region within which the authorized
54	39		representative of the local government [officials] and record
55	40		owners of real property may enter into written contracts to impose
56	41		assessments to repay the financing by owners of qualified projects
57	42		on the owners' property and, if authorized by the local government
58	43		program, finance the qualified project.
59	44		SECTION 4. Sections 399.008(a) and (e), Local Government
60	45		Code, are amended to read as follows:
61	46		(a) To establish a program under this chapter, the governing
62	47		body of a local government must take the following actions in the
63	48		following order:
64	49		(1) adopt a resolution of intent that includes:
65	50		(A) a finding that, if appropriate, financing
66	51		qualified projects through contractual assessments is a valid
67	52		public purpose;
68	53		(B) a statement that the local government intends
69	54		to make contractual assessments to repay financing for qualified
70	55		projects available to property owners;
71	56		(C) a description of the types of qualified
72	57		projects that may be subject to contractual assessments;
73	58		(D) a description of the boundaries of the
74	59		region;
75	60		(E) a description of any proposed arrangements
76	61		for third-party financing to be available or any local government
77	62		financing to be provided for qualified projects;
78	63		(F) a description of local government debt
79	64		servicing procedures if third-party financing will be provided and
80	65		assessments will be collected to service a third-party debt;
81	66		(G) a reference to the report on the proposed
82	67		program prepared as provided by Section 399.009 and a statement
83	68		identifying the location where the report is available for public
84	69		inspection;
85	70		(H) a statement of the time and place for a public
86	71		hearing on the proposed program; and
87	72		(I) a statement identifying the appropriate
88	73		representative of the local government [official] and the
89	74		appropriate assessor-collector for purposes of consulting
90	75		regarding collecting the proposed contractual assessments [with
91	76		property taxes] imposed on the assessed property;
92	77		(2) hold a public hearing at which the public may
93	78		comment on the proposed program, including the report required by
94	79		Section 399.009; and
95	80		(3) adopt a resolution establishing the program and
96	81		the terms of the program, including:
97	82		(A) each item included in the report under
98	83		Section 399.009; and
99	84		(B) a description of each aspect of the program
100	85		that may be amended only after another public hearing is held.
101	86		(e) A local government may impose fees to offset the costs
102	87		of administering a program. The fees authorized by this subsection
103	88		may be assessed as:
104	89		(1) a program application fee paid by the property
105	90		owner requesting to participate in the program expressed as a set
106	91		amount, a percentage of the amount of the assessment, or in any
107	92		other manner;
108	93		(2) a component of the interest rate on the assessment
109	94		in the written contract between the local government and the
110	95		property owner; or
111	96		(3) a combination of Subdivisions (1) and (2).
112	97		SECTION 5. Sections 399.009(a) and (c), Local Government
113	98		Code, are amended to read as follows:
114	99		(a) The report for a proposed program required by Section
115	100		399.008 must include:
116	101		(1) a map showing the boundaries of the proposed
117	102		region;
118	103		(2) a form contract between the local government and
119	104		the property owner specifying the terms of:
120	105		(A) assessment under the program; and
121	106		(B) financing provided by a third party or the
122	107		local government, as appropriate;
123	108		(3) if the proposed program provides for third-party
124	109		financing, a form contract between the local government and the
125	110		third party regarding the servicing of the debt through
126	111		assessments;
127	112		(4) a description of types of qualified projects that
128	113		may be subject to contractual assessments;
129	114		(5) a statement identifying a local government
130	115		representative [official] authorized to enter into written
131	116		contracts on behalf of the local government;
132	117		(6) a plan for ensuring sufficient capital for
133	118		third-party financing and, if appropriate, raising capital for
134	119		local government financing for qualified projects;
135	120		(7) if bonds will be issued to provide capital to
136	121		finance qualified projects as part of the program as provided by
137	122		Section 399.016:
138	123		(A) a maximum aggregate annual dollar amount for
139	124		financing through contractual assessments to be provided by the
140	125		local government under the program;
141	126		(B) a method for ranking requests from property
142	127		owners for financing through contractual assessments in priority
143	128		order if requests appear likely to exceed the authorization amount;
144	129		and
145	130		(C) a method for determining:
146	131		(i) the interest rate and period during
147	132		which contracting owners would pay an assessment; and
148	133		(ii) the maximum amount of an assessment;
149	134		(8) a method for ensuring that the period of the
150	135		contractual assessment does not exceed the useful life of the
151	136		qualified project that is the basis for the assessment;
152	137		(9) a description of the application process and
153	138		eligibility requirements for financing qualified projects to be
154	139		repaid through contractual assessments under the program;
155	140		(10) a method as prescribed by Subsection (b) for
156	141		ensuring that property owners requesting to participate in the
157	142		program demonstrate the financial ability to fulfill financial
158	143		obligations to be repaid through contractual assessments;
159	144		(11) a statement explaining the manner in which
160	145		property will be assessed and assessments will be collected;
161	146		(12) a statement explaining the lender notice
162	147		requirement provided by Section 399.010;
163	148		(13) a statement explaining the review requirement
164	149		provided by Section 399.011;
165	150		(14) a description of marketing and participant
166	151		education services to be provided for the program;
167	152		(15) a description of quality assurance and antifraud
168	153		measures to be instituted for the program; and
169	154		(16) the procedures for collecting the proposed
170	155		contractual assessments.
171	156		(c) The local government shall make the report available for
172	157		public inspection:
173	158		(1) on the local government's Internet website; and
174	159		(2) at the office of the representative [official]
175	160		designated to enter into written contracts on behalf of the local
176	161		government under the program.
177	162		SECTION 6. Section 399.011, Local Government Code, is
178	163		amended by amending Subsections (a) and (b) and adding Subsection
179	164		(a-1) to read as follows:
180	165		(a) A program established under this chapter must require
181	166		for each proposed qualified project:
182	167		(1) a review of water or energy baseline conditions
183	168		and the projected water or energy savings to establish the
184	169		projected water or energy savings; and
185	170		(2) a verification that a proposed qualified
186	171		improvement meets the requirements of a qualified project.
187	172		(a-1) A verification provided as required under Subsection
188	173		(a)(2) conclusively establishes that the improvement is a qualified
189	174		improvement and the project is a qualified project.
190	175		(b) After a qualified project is completed, the local
191	176		government shall require written [obtain] verification that the
192	177		qualified project was properly completed and is operating as
193	178		intended.
194	179		SECTION 7. Section 399.014, Local Government Code, is
195	180		amended by adding Subsection (a-1) to read as follows:
196	181		(a-1) After the notice of a contractual assessment is
197	182		recorded as provided under Section 399.013, the lien may not be
198	183		contested on the basis that the improvement is not a qualified
199	184		improvement or the project is not a qualified project.
200	185		SECTION 8. Sections 399.017(a) and (c), Local Government
201	186		Code, are amended to read as follows:
202	187		(a) Any combination of local governments may agree to
203	188		jointly implement or administer a program under this chapter,
204	189		including entering into an interlocal contract under Chapter 791,
205	190		Government Code, to jointly implement or administer a program.
206	191		(c) One or more local governments may contract with a third
207	192		party, including another local government, to administer a program.
208	193		Local governments that are parties to an interlocal contract
209	194		described by Subsection (a) may contract with an entity listed in
210	195		Section 791.013, Government Code, for program administration.
211	196		SECTION 9. Chapter 399, Local Government Code, is amended
212	197		by adding Section 399.019 to read as follows:
213	198		Sec. 399.019. NO PERSONAL LIABILITY. The members of the
214	199		governing body of a local government, employees of a local
215	200		government, and board members, executives, employees, and
216	201		contractors of a third party who enter into a contract with a local
217	202		government to provide administrative services for a program under
218	203		this chapter are not personally liable as a result of exercising any
219	204		rights or responsibilities granted under this chapter.
220	205		SECTION 10. This Act takes effect immediately if it
221	206		receives a vote of two-thirds of all the members elected to each
222	207		house, as provided by Section 39, Article III, Texas Constitution.
223	208		If this Act does not receive the vote necessary for immediate
224	209		effect, this Act takes effect September 1, 2015.
225		-	* * * * *
	210	+	______________________________ ______________________________
	211	+	President of the Senate Speaker of the House
	212	+	I certify that H.B. No. 3187 was passed by the House on April
	213	+	30, 2015, by the following vote: Yeas 138, Nays 1, 1 present, not
	214	+	voting.
	215	+	______________________________
	216	+	Chief Clerk of the House
	217	+	I certify that H.B. No. 3187 was passed by the Senate on May
	218	+	22, 2015, by the following vote: Yeas 29, Nays 2.
	219	+	______________________________
	220	+	Secretary of the Senate
	221	+	APPROVED: _____________________
	222	+	Date
	223	+	_____________________
	224	+	Governor