84R19296 PAM-F
By: Keffer, Workman H.B. No. 3187
Substitute the following for H.B. No. 3187:
By: Ashby C.S.H.B. No. 3187
A BILL TO BE ENTITLED
AN ACT
relating to assessments for water and energy improvements in
municipalities and counties; changing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 399.003, Local Government Code, is
amended to read as follows:
Sec. 399.003. EXERCISE OF POWERS. (a) In addition to the
authority provided by Chapter 376 for municipalities, the governing
body of a local government that establishes a program in accordance
with the requirements provided by Section 399.008 may exercise
powers granted under this chapter.
(b) The establishment and operation of a program under this
chapter by a local government is a governmental function for all
purposes.
SECTION 2. Sections 399.006(b) and (c), Local Government
Code, are amended to read as follows:
(b) An authorized representative [official] of the local
government that establishes a program may enter into a written
contract with a record owner of real property in a region designated
under this chapter to impose an assessment to repay the owner's
financing of a qualified project on the owner's property. The
financing to be repaid through assessments may be provided by a
third party or, if authorized by the program, by the local
government.
(c) If the program provides for third-party financing, the
authorized representative [official] of the local government that
enters into a written contract with a property owner under
Subsection (b) must also enter into a written contract with the
party that provides financing for a qualified project under the
program to service the debt through assessments.
SECTION 3. Section 399.007(a), Local Government Code, is
amended to read as follows:
(a) The governing body of a local government may determine
that it is convenient and advantageous to designate an area of the
local government as a region within which the authorized
representative of the local government [officials] and record
owners of real property may enter into written contracts to impose
assessments to repay the financing by owners of qualified projects
on the owners' property and, if authorized by the local government
program, finance the qualified project.
SECTION 4. Sections 399.008(a) and (e), Local Government
Code, are amended to read as follows:
(a) To establish a program under this chapter, the governing
body of a local government must take the following actions in the
following order:
(1) adopt a resolution of intent that includes:
(A) a finding that, if appropriate, financing
qualified projects through contractual assessments is a valid
public purpose;
(B) a statement that the local government intends
to make contractual assessments to repay financing for qualified
projects available to property owners;
(C) a description of the types of qualified
projects that may be subject to contractual assessments;
(D) a description of the boundaries of the
region;
(E) a description of any proposed arrangements
for third-party financing to be available or any local government
financing to be provided for qualified projects;
(F) a description of local government debt
servicing procedures if third-party financing will be provided and
assessments will be collected to service a third-party debt;
(G) a reference to the report on the proposed
program prepared as provided by Section 399.009 and a statement
identifying the location where the report is available for public
inspection;
(H) a statement of the time and place for a public
hearing on the proposed program; and
(I) a statement identifying the appropriate
representative of the local government [official] and the
appropriate assessor-collector for purposes of consulting
regarding collecting the proposed contractual assessments [with
property taxes] imposed on the assessed property;
(2) hold a public hearing at which the public may
comment on the proposed program, including the report required by
Section 399.009; and
(3) adopt a resolution establishing the program and
the terms of the program, including:
(A) each item included in the report under
Section 399.009; and
(B) a description of each aspect of the program
that may be amended only after another public hearing is held.
(e) A local government may impose fees to offset the costs
of administering a program. The fees authorized by this subsection
may be assessed as:
(1) a program application fee paid by the property
owner requesting to participate in the program expressed as a set
amount, a percentage of the amount of the assessment, or in any
other manner;
(2) a component of the interest rate on the assessment
in the written contract between the local government and the
property owner; or
(3) a combination of Subdivisions (1) and (2).
SECTION 5. Sections 399.009(a) and (c), Local Government
Code, are amended to read as follows:
(a) The report for a proposed program required by Section
399.008 must include:
(1) a map showing the boundaries of the proposed
region;
(2) a form contract between the local government and
the property owner specifying the terms of:
(A) assessment under the program; and
(B) financing provided by a third party or the
local government, as appropriate;
(3) if the proposed program provides for third-party
financing, a form contract between the local government and the
third party regarding the servicing of the debt through
assessments;
(4) a description of types of qualified projects that
may be subject to contractual assessments;
(5) a statement identifying a local government
representative [official] authorized to enter into written
contracts on behalf of the local government;
(6) a plan for ensuring sufficient capital for
third-party financing and, if appropriate, raising capital for
local government financing for qualified projects;
(7) if bonds will be issued to provide capital to
finance qualified projects as part of the program as provided by
Section 399.016:
(A) a maximum aggregate annual dollar amount for
financing through contractual assessments to be provided by the
local government under the program;
(B) 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
(C) a method for determining:
(i) the interest rate and period during
which contracting owners would pay an assessment; and
(ii) the maximum amount of an assessment;
(8) a method for ensuring that the period of the
contractual assessment does not exceed the useful life of the
qualified project that is the basis for the assessment;
(9) a description of the application process and
eligibility requirements for financing qualified projects to be
repaid through contractual assessments under the program;
(10) a method as prescribed by Subsection (b) for
ensuring that property owners requesting to participate in the
program demonstrate the financial ability to fulfill financial
obligations to be repaid through contractual assessments;
(11) a statement explaining the manner in which
property will be assessed and assessments will be collected;
(12) a statement explaining the lender notice
requirement provided by Section 399.010;
(13) a statement explaining the review requirement
provided by Section 399.011;
(14) a description of marketing and participant
education services to be provided for the program;
(15) a description of quality assurance and antifraud
measures to be instituted for the program; and
(16) the procedures for collecting the proposed
contractual assessments.
(c) The local government shall make the report available for
public inspection:
(1) on the local government's Internet website; and
(2) at the office of the representative [official]
designated to enter into written contracts on behalf of the local
government under the program.
SECTION 6. Section 399.011, Local Government Code, is
amended by amending Subsections (a) and (b) and adding Subsection
(a-1) to read as follows:
(a) A program established under this chapter must require
for each proposed qualified project:
(1) a review of water or energy baseline conditions
and the projected water or energy savings to establish the
projected water or energy savings; and
(2) a verification that a proposed qualified
improvement meets the requirements of a qualified project.
(a-1) A verification provided as required under Subsection
(a)(2) conclusively establishes that the improvement is a qualified
improvement and the project is a qualified project.
(b) After a qualified project is completed, the local
government shall require written [obtain] verification that the
qualified project was properly completed and is operating as
intended.
SECTION 7. Section 399.014, Local Government Code, is
amended by adding Subsection (a-1) to read as follows:
(a-1) After the notice of a contractual assessment is
recorded as provided under Section 399.013, the lien may not be
contested on the basis that the improvement is not a qualified
improvement or the project is not a qualified project.
SECTION 8. Sections 399.017(a) and (c), Local Government
Code, are amended to read as follows:
(a) Any combination of local governments may agree to
jointly implement or administer a program under this chapter,
including entering into an interlocal contract under Chapter 791,
Government Code, to jointly implement or administer a program.
(c) One or more local governments may contract with a third
party, including another local government, to administer a program.
Local governments that are parties to an interlocal contract
described by Subsection (a) may contract with an entity listed in
Section 791.013, Government Code, for program administration.
SECTION 9. Chapter 399, Local Government Code, is amended
by adding Section 399.019 to read as follows:
Sec. 399.019. NO PERSONAL LIABILITY. The members of the
governing body of a local government, employees of a local
government, and board members, executives, employees, and
contractors of a third party who enter into a contract with a local
government to provide administrative services for a program under
this chapter are not personally liable as a result of exercising any
rights or responsibilities granted under this chapter.
SECTION 10. 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, 2015.