Texas 2015 - 84th Regular

Texas House Bill HB3363 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R8180 PAM-F
2	2	By: Keffer H.B. No. 3363
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to authorizing local government programs to provide
8	8	assessments for residential water and energy improvements in
9	9	designated regions, including authorizing the issuance of
10	10	obligations to provide financing for the programs; authorizing a
11	11	fee.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 1232.002, Government Code, is amended to
14	14	read as follows:
15	15	Sec. 1232.002. PURPOSE. The purpose of this chapter is to
16	16	provide a method of financing for:
17	17	(1) the acquisition or construction of buildings;
18	18	[and]
19	19	(2) the purchase or lease of equipment by executive or
20	20	judicial branch state agencies; and
21	21	(3) local government water and energy improvement
22	22	contractual assessment programs for the benefit of residential real
23	23	property under Chapter 400, Local Government Code.
24	24	SECTION 2. Section 1232.066(a), Government Code, is amended
25	25	to read as follows:
26	26	(a) The board's authority under this chapter is limited to
27	27	the financing of:
28	28	(1) the acquisition or construction of a building;
29	29	(2) the purchase or lease of equipment; [or]
30	30	(3) stranded costs of a municipal power agency; or
31	31	(4) local government water and energy improvement
32	32	contractual assessment programs for the benefit of residential real
33	33	property under Chapter 400, Local Government Code.
34	34	SECTION 3. Subchapter C, Chapter 1232, Government Code, is
35	35	amended by adding Section 1232.1075 to read as follows:
36	36	Sec. 1232.1075. ISSUANCE OF OBLIGATIONS FOR FINANCING LOCAL
37	37	GOVERNMENT WATER AND ENERGY IMPROVEMENT CONTRACTUAL ASSESSMENT
38	38	PROGRAMS. (a) The legislature finds that:
39	39	(1) promoting the conservation, protection,
40	40	management, development, and beneficial use of the state's energy
41	41	and water resources is an essential public purpose and it is
42	42	appropriate for the state to assist local governments in the
43	43	development and financing of local government water and energy
44	44	improvement contractual assessment programs for the benefit of
45	45	residential real property under Chapter 400, Local Government Code;
46	46	and
47	47	(2) it is appropriate for the authority, on the
48	48	request of a local government, to assist in the financing of local
49	49	government water and energy improvement contractual assessment
50	50	programs for the benefit of residential real property under Chapter
51	51	400, Local Government Code.
52	52	(b) In this section "bond," "credit agreement," "local
53	53	government," and "program administrator" have the meanings
54	54	assigned by Section 400.002, Local Government Code.
55	55	(c) At the request of the program administrator under
56	56	Section 400.016, Local Government Code, the authority shall issue
57	57	bonds for the financing of a local government water and energy
58	58	improvement contractual assessment program for the benefit of
59	59	residential real property established under Chapter 400, Local
60	60	Government Code.
61	61	(d) The authority shall determine the method of sale, type
62	62	of bond, bond form, maximum interest rates, and other terms of the
63	63	bonds that, in the authority's judgment, best achieve the economic
64	64	goals of the local government and provide funds at the lowest
65	65	practicable cost.
66	66	(e) The authority may enter into a credit agreement in
67	67	connection with the bonds. The bonds and the related credit
68	68	agreement must be payable from and secured by a pledge of revenues
69	69	to be received from contractual assessments imposed under the
70	70	program established under Chapter 400, Local Government Code.
71	71	(f) The proceeds of bonds issued by the authority under this
72	72	section shall be deposited with a trustee selected by the authority
73	73	and the program administrator.
74	74	(g) Bond proceeds, including investment income, shall be
75	75	held in trust for the exclusive use and benefit of the local
76	76	government. The local government may use the proceeds to pay:
77	77	(1) the costs of materials and labor necessary for the
78	78	installation or modification of qualified improvements;
79	79	(2) underwriting, processing, and administrative
80	80	fees;
81	81	(3) the costs associated with issuing the bonds,
82	82	including fees paid to a bond issuer, bond counsel, bond placement
83	83	agent, or bond trustee;
84	84	(4) assessment, administrative, and county recording
85	85	fees; and
86	86	(5) any other lawfully permitted costs related to a
87	87	program established under Chapter 400, Local Government Code.
88	88	(h) A bond issued by the authority under this section and
89	89	any related credit agreement is not a debt of the state, a state
90	90	agency, or a local government and is not a pledge of the faith and
91	91	credit of the state, a state agency, or a local government. A bond
92	92	issued by the authority under this section and any related credit
93	93	agreement is payable solely from and secured by a pledge of revenues
94	94	from contractual assessments imposed under the program established
95	95	under Chapter 400, Local Government Code.
96	96	(i) A bond issued by the authority under this section and
97	97	any related credit agreement must contain on its face a statement to
98	98	the effect that:
99	99	(1) the state, a state agency, or a local government is
100	100	not obligated to pay the principal of or interest on the bond except
101	101	as provided by this section; and
102	102	(2) the faith and credit or the taxing power of the
103	103	state, a state agency, or a local government may not be pledged to
104	104	pay the principal of or interest on the bond.
105	105	(j) The state may not with respect to any outstanding bonds
106	106	under this section:
107	107	(1) take action to limit or restrict the rights of the
108	108	local government to fulfill its responsibility to pay bond
109	109	obligations; or
110	110	(2) in any way impair the rights or remedies of the
111	111	bond owners until the bonds are fully discharged.
112	112	(k) Bonds issued by the authority under this section, any
113	113	transaction relating to the bonds, and any profits made from the
114	114	sale of the bonds are exempt from taxation by the state or a local
115	115	government.
116	116	(l) The board of directors of the authority and the
117	117	employees of the authority are not personally liable as a result of
118	118	exercising any rights or responsibilities under this section.
119	119	SECTION 4. Subtitle C, Title 12, Local Government Code, is
120	120	amended by adding Chapter 400 to read as follows:
121	121	CHAPTER 400. MUNICIPAL AND COUNTY WATER AND ENERGY IMPROVEMENT
122	122	REGIONS FOR RESIDENTIAL IMPROVEMENTS
123	123	Sec. 400.001. SHORT TITLE. This chapter may be cited as the
124	124	Residential Property Assessed Clean Energy Act ("R-PACE").
125	125	Sec. 400.002. DEFINITIONS. In this chapter:
126	126	(1) "Bond" means any type of revenue obligation,
127	127	including a bond, note, certificate, or other instrument, payable
128	128	from and secured by a pledge of revenues received from contractual
129	129	assessments as provided in the resolution authorizing the
130	130	obligation. A bond obligation includes the principal of a bond and
131	131	any premium and interest on the bond, together with any amount owed
132	132	under a related credit agreement.
133	133	(2) "Credit agreement" means a loan agreement, a
134	134	revolving credit agreement, an agreement establishing a line of
135	135	credit, a letter of credit, an interest rate swap agreement, an
136	136	interest rate lock agreement, a currency swap agreement, a forward
137	137	payment conversion agreement, an agreement to provide payments
138	138	based on levels of or changes in interest rates or currency exchange
139	139	rates, an agreement to exchange cash flows or a series of payments,
140	140	an option, put, or call to hedge payment, currency, interest rate,
141	141	or other exposure, or another agreement that enhances the
142	142	marketability, security, or creditworthiness of a bond issued under
143	143	this chapter.
144	144	(3) "Local government" means a municipality or county.
145	145	(4) "Program" means a program established under this
146	146	chapter.
147	147	(5) "Program administrator" means the administrator
148	148	designated under Section 400.006(b) or the local government
149	149	official responsible for discharging the administrative duties of
150	150	the program.
151	151	(6) "Property owner" means the record owner of real
152	152	property.
153	153	(7) "Qualified improvement" means a permanent
154	154	improvement fixed to real property and intended to decrease water
155	155	or energy consumption or demand, including a product, device, or
156	156	interacting group of products or devices on the property owner's
157	157	side of the meter that uses energy technology to generate
158	158	electricity, provide thermal energy, regulate temperature, or
159	159	regulate water consumption.
160	160	(8) "Qualified project" means the installation or
161	161	modification of a qualified improvement.
162	162	(9) "Real property" means residential real property on
163	163	which a dwelling designed for occupancy for one to four families is
164	164	located.
165	165	(10) "Region" means a region designated under this
166	166	chapter.
167	167	Sec. 400.003. EXERCISE OF POWERS. In addition to the
168	168	authority provided by Chapter 376 for municipalities, the governing
169	169	body of a local government that establishes a program in accordance
170	170	with the requirements provided by Section 400.008 may exercise
171	171	powers granted under this chapter.
172	172	Sec. 400.004. AUTHORIZED ASSESSMENTS. (a) An assessment
173	173	under this chapter may be imposed to repay the financing of
174	174	qualified projects on real property located in a region designated
175	175	under this chapter.
176	176	(b) An assessment under this chapter may not be imposed to
177	177	repay the financing of:
178	178	(1) facilities for undeveloped lots or lots undergoing
179	179	development at the time of the assessment; or
180	180	(2) the purchase or installation of products or
181	181	devices not permanently fixed to real property.
182	182	Sec. 400.005. WRITTEN CONTRACT FOR ASSESSMENT REQUIRED. A
183	183	local government may impose an assessment under this chapter only
184	184	under a written contract with the property owner of real property to
185	185	be assessed.
186	186	Sec. 400.006. ESTABLISHMENT OF PROGRAM. (a) The governing
187	187	body of a local government may determine that it is convenient and
188	188	advantageous to establish a program under this chapter.
189	189	(b) A local government may enter into an agreement with a
190	190	designated administrator for the purposes of administering,
191	191	qualifying, and otherwise discharging the local government's
192	192	administrative responsibilities over the program in its
193	193	jurisdiction, except that the local government retains the
194	194	responsibility to impose assessments as provided by this chapter.
195	195	The designated administrator may be a for profit or nonprofit
196	196	organization with experience in managing programs similar to
197	197	programs established under this chapter or an organization whose
198	198	executive leadership includes persons who have managed programs
199	199	similar to those established under this chapter.
200	200	(c) A local government may contract with a designated
201	201	administrator that has established and is administering a program
202	202	for one or more other local governments.
203	203	(d) The program administrator may enter into a written
204	204	contract with a property owner in a region designated under this
205	205	chapter to impose an assessment to repay the property owner's
206	206	financing of a qualified project. The contract must expressly
207	207	state the terms of the assessment, including the assessment term,
208	208	the payment amounts, and the remedies for default and foreclosure.
209	209	(e) The financing to be repaid through assessments under a
210	210	program established under this chapter may be provided by:
211	211	(1) a third party;
212	212	(2) the local government, if authorized by the
213	213	program; or
214	214	(3) the Texas Public Finance Authority as authorized
215	215	by Section 1232.1075, Government Code.
216	216	(f) If the program provides for third-party financing, the
217	217	program administrator that enters into the written contract with a
218	218	property owner must also enter into a written contract with the
219	219	third party that provides financing for a qualified project under
220	220	the program to service the debt through assessments.
221	221	(g) If the program provides for bond financing, the written
222	222	contract described by Subsection (d) must be a contract to finance
223	223	the qualified project through assessments.
224	224	(h) The financing for which assessments are imposed may
225	225	include:
226	226	(1) the costs of materials and labor necessary for
227	227	installation or modification of a qualified improvement;
228	228	(2) permit fees;
229	229	(3) inspection fees;
230	230	(4) fees associated with issuing bonds, including bond
231	231	placement agent and bond trustee fees;
232	232	(5) underwriting, processing, and administrative
233	233	fees;
234	234	(6) origination fees;
235	235	(7) program application and administrative fees;
236	236	(8) project development and engineering fees;
237	237	(9) county recording fees; and
238	238	(10) any other fees or costs that may be incurred by
239	239	the property owner incident to the installation, modification, or
240	240	improvement on a specific or pro rata basis, as determined by the
241	241	local government.
242	242	Sec. 400.007. DESIGNATION OF REGION. (a) The governing
243	243	body of a local government may determine that it is convenient and
244	244	advantageous to designate an area of the local government as a
245	245	region within which the program administrator and property owners
246	246	may enter into written contracts to impose assessments to repay the
247	247	financing by owners of qualified projects and, if authorized by the
248	248	local government program, finance the qualified project.
249	249	(b) An area designated as a region by the governing body of a
250	250	local government under this section:
251	251	(1) may include the entire local government; and
252	252	(2) must be located wholly within the local
253	253	government's jurisdiction.
254	254	(c) For purposes of determining a municipality's
255	255	jurisdiction under Subsection (b)(2), the municipality's
256	256	extraterritorial jurisdiction may be included.
257	257	(d) A local government may designate more than one region.
258	258	If multiple regions are designated, the regions may be separate,
259	259	overlapping, or coterminous.
260	260	Sec. 400.008. PROCEDURE FOR ESTABLISHMENT OF PROGRAM.
261	261	(a) To establish a program under this chapter, the governing body
262	262	of a local government must take the following actions in the
263	263	following order:
264	264	(1) adopt a resolution of intent that includes:
265	265	(A) a finding that, if appropriate, financing
266	266	qualified projects through contractual assessments is a valid
267	267	public purpose;
268	268	(B) a statement that the local government intends
269	269	to make contractual assessments to repay financing for qualified
270	270	projects available to property owners;
271	271	(C) if appropriate, a statement that the local
272	272	government intends to delegate the administration of the program to
273	273	a designated administrator;
274	274	(D) a description of the types of qualified
275	275	projects that may be subject to contractual assessments;
276	276	(E) a description of the boundaries of the
277	277	region;
278	278	(F) a description of any proposed arrangements
279	279	for third-party financing to be available or any authorized state
280	280	or local government financing to be provided for qualified
281	281	projects;
282	282	(G) a description of proposed debt servicing
283	283	procedures if third-party financing will be provided and
284	284	assessments will be collected to service a third-party debt;
285	285	(H) a reference to the report on the proposed
286	286	program prepared as provided by Section 400.009 and a statement
287	287	identifying the location where the report is available for public
288	288	inspection;
289	289	(I) a statement of the time and place for a public
290	290	hearing on the proposed program; and
291	291	(J) a statement identifying the appropriate
292	292	local official and the appropriate assessor-collector for purposes
293	293	of consulting regarding collecting the proposed contractual
294	294	assessments with property taxes imposed on the assessed property;
295	295	(2) hold a public hearing at which the public may
296	296	comment on the proposed program, including the report required by
297	297	Section 400.009; and
298	298	(3) adopt a resolution establishing the program and
299	299	the terms of the program, including:
300	300	(A) each item included in the report under
301	301	Section 400.009;
302	302	(B) a description of each aspect of the program
303	303	that may be amended only after another public hearing is held; and
304	304	(C) the name and business address of the program
305	305	administrator.
306	306	(b) For purposes of Subsection (a)(3)(A), the resolution
307	307	may incorporate the report or the amended version of the report, as
308	308	appropriate, by reference.
309	309	(c) Subject to the terms of the resolution establishing the
310	310	program as referenced by Subsection (a)(3)(B), the governing body
311	311	of a local government may amend a program by resolution.
312	312	(d) If a local government does not use a designated
313	313	administrator, a local government may:
314	314	(1) hire and set the compensation of an administrator
315	315	and staff for the program; or
316	316	(2) contract for professional services necessary to
317	317	administer a program.
318	318	(e) A local government may impose fees to offset the costs
319	319	of administering a program. The fees authorized by this subsection
320	320	may be assessed as:
321	321	(1) a program application fee paid by the property
322	322	owner requesting to participate in the program;
323	323	(2) a component of the interest rate on the assessment
324	324	in the written contract between the local government and the
325	325	property owner; or
326	326	(3) a combination of Subdivisions (1) and (2).
327	327	Sec. 400.009. REPORT REGARDING ASSESSMENT. (a) The report
328	328	for a proposed program required by Section 400.008 must include:
329	329	(1) a map showing the boundaries of the proposed
330	330	region;
331	331	(2) a form contract between the program administrator
332	332	and the property owner specifying the terms of:
333	333	(A) assessment under the program;
334	334	(B) fees associated with the administration of
335	335	the program; and
336	336	(C) financing and any costs associated with the
337	337	financing provided by, as appropriate:
338	338	(i) a third party;
339	339	(ii) the local government; or
340	340	(iii) the Texas Public Finance Authority as
341	341	authorized by Section 1232.1075, Government Code;
342	342	(3) if the proposed program provides for third-party
343	343	financing, a form contract between the program administrator and
344	344	the third party regarding the servicing of the debt through
345	345	assessments;
346	346	(4) a description of types of qualified projects that
347	347	may be subject to contractual assessments;
348	348	(5) a statement identifying the program administrator
349	349	authorized to enter into written contracts on behalf of the local
350	350	government;
351	351	(6) a plan for ensuring sufficient capital for
352	352	third-party financing and, if appropriate, raising capital for
353	353	local government financing for qualified projects;
354	354	(7) if bonds will be issued to provide capital to
355	355	finance qualified projects as part of the program as provided by
356	356	Section 400.015:
357	357	(A) the maximum principal amount for financing
358	358	through bonds;
359	359	(B) a method for determining:
360	360	(i) the interest rate and period during
361	361	which contracting owners would pay an assessment; and
362	362	(ii) the maximum amount of an assessment;
363	363	and
364	364	(C) a description of the use of the proceeds,
365	365	which may include the payment of:
366	366	(i) the costs for qualified improvements;
367	367	(ii) the costs of issuing the bonds;
368	368	(iii) the costs of a bond reserve fund; and
369	369	(iv) any other lawfully permitted program
370	370	costs;
371	371	(8) a method for ensuring that the period of the
372	372	contractual assessment does not exceed the useful life of the
373	373	qualified project that is the basis for the assessment;
374	374	(9) a description of the application process and
375	375	eligibility requirements for financing qualified projects to be
376	376	repaid through contractual assessments under the program;
377	377	(10) a method as prescribed by Subsection (b) for
378	378	ensuring that property owners requesting to participate in the
379	379	program demonstrate the financial ability to fulfill financial
380	380	obligations to be repaid through contractual assessments;
381	381	(11) a statement explaining the manner in which
382	382	property will be assessed and assessments will be collected;
383	383	(12) a statement explaining mortgage insurance
384	384	requirements provided by Section 400.010;
385	385	(13) a description of marketing and participant
386	386	education services to be provided for the program;
387	387	(14) a description of quality assurance and antifraud
388	388	measures to be instituted for the program; and
389	389	(15) the procedures for collecting the proposed
390	390	contractual assessments.
391	391	(b) The method for determining financial ability under
392	392	Subsection (a)(10) must use appropriate underwriting factors,
393	393	including:
394	394	(1) providing for verification that:
395	395	(A) the property owner requesting to participate
396	396	under the program:
397	397	(i) is the legal owner of the benefited
398	398	property;
399	399	(ii) is current on mortgage and property
400	400	tax payments; and
401	401	(iii) is not insolvent or in bankruptcy
402	402	proceedings; and
403	403	(B) the title of the benefited property is not in
404	404	dispute; and
405	405	(2) requiring an appropriate ratio of the amount of
406	406	the assessment to the assessed value of the property.
407	407	(c) The local government shall make the report available for
408	408	public inspection:
409	409	(1) on the local government's Internet website; and
410	410	(2) at the office of the program administrator.
411	411	Sec. 400.010. MORTGAGE INSURANCE CERTIFICATION REQUIRED
412	412	FOR PARTICIPATION. Before a local government may enter into a
413	413	written contract with a property owner to impose an assessment to
414	414	repay the financing of a qualified project under this chapter, the
415	415	program administrator must certify that mortgage guaranty
416	416	insurance offered by an insurer that holds a certificate of
417	417	authority to write mortgage guaranty insurance in this state is in
418	418	place to protect the holder of the first lien mortgage on the
419	419	property to be assessed from and against losses that may be caused
420	420	by an assessment recorded under this chapter.
421	421	Sec. 400.011. DIRECT ACQUISITION BY OWNER. The proposed
422	422	arrangements for financing a qualified project may authorize the
423	423	property owner to:
424	424	(1) purchase directly the related equipment and
425	425	materials for the installation or modification of a qualified
426	426	improvement; and
427	427	(2) contract directly, including through a lease,
428	428	power purchase agreement, or other service contract, for the
429	429	installation or modification of a qualified improvement.
430	430	Sec. 400.012. RECORDING OF NOTICE OF CONTRACTUAL ASSESSMENT
431	431	REQUIRED. (a) A local government that authorizes financing
432	432	through contractual assessments under this chapter shall file
433	433	notice of each contractual assessment in the real property records
434	434	of the county in which the property is located.
435	435	(b) The notice under Subsection (a) must contain:
436	436	(1) the amount of the assessment;
437	437	(2) the legal description of the property;
438	438	(3) the name of each property owner; and
439	439	(4) a reference to the statutory assessment lien
440	440	provided under this chapter.
441	441	Sec. 400.013. LIEN. (a) A contractual assessment under
442	442	this chapter and any interest or penalties on the assessment:
443	443	(1) is a first and prior lien against the real property
444	444	on which the assessment is imposed from the date on which the notice
445	445	of contractual assessment is recorded as provided by Section
446	446	400.012 and until the assessment, interest, or penalty is paid; and
447	447	(2) has the same priority status as a lien for any
448	448	other ad valorem tax.
449	449	(b) The lien runs with the land, and that portion of the
450	450	assessment under the assessment contract that has not yet become
451	451	due may not be accelerated and is not eliminated by foreclosure of a
452	452	property tax lien.
453	453	(c) The assessment lien may be enforced by the local
454	454	government in the same manner that a property tax lien against real
455	455	property may be enforced by the local government subject to the
456	456	terms of the program and to the extent the enforcement is consistent
457	457	with Section 50, Article XVI, Texas Constitution.
458	458	(d) Delinquent installments of the assessments incur
459	459	interest and penalties in the same manner as delinquent property
460	460	taxes.
461	461	(e) A local government may recover costs and expenses,
462	462	including attorney's fees, in a suit to collect a delinquent
463	463	installment of an assessment in the same manner as in a suit to
464	464	collect a delinquent property tax.
465	465	Sec. 400.014. COLLECTION OF ASSESSMENTS. The governing
466	466	body of a local government may contract with the governing body of
467	467	another taxing unit, as defined by Section 1.04, Tax Code, or
468	468	another entity, including a county assessor-collector, to perform
469	469	the duties of the local government relating to collection of
470	470	assessments imposed by the local government under this chapter.
471	471	Sec. 400.015. BONDS ISSUED BY LOCAL GOVERNMENT. (a) A
472	472	local government may issue bonds to finance qualified projects
473	473	through contractual assessments under this chapter.
474	474	(b) Bonds issued under this section and any related credit
475	475	agreement may not be general obligations of the local government.
476	476	The bonds and any related credit agreement must be secured by one or
477	477	more of the following as provided by the governing body of the local
478	478	government in the resolution or ordinance approving the bonds:
479	479	(1) payments of contractual assessments on benefited
480	480	property in one or more specified regions designated under this
481	481	chapter;
482	482	(2) reserves established by the local government from
483	483	grants, bonds, or net proceeds or other lawfully available funds;
484	484	(3) municipal bond insurance, lines of credit, public
485	485	or private guaranties, standby bond purchase agreements,
486	486	collateral assignments, mortgages, or any other available means of
487	487	providing credit support or liquidity; and
488	488	(4) any other funds lawfully available for purposes
489	489	consistent with this chapter.
490	490	(c) A local government pledge of assessments, funds, or
491	491	contractual rights in connection with the issuance of bonds by the
492	492	local government under this chapter is a first lien on the
493	493	assessments, funds, or contractual rights pledged in favor of the
494	494	person to whom the pledge is given, without further action by the
495	495	local government. The lien is valid and binding against any other
496	496	person, with or without notice.
497	497	(d) Bonds issued under this chapter further an essential
498	498	public and governmental purpose, including:
499	499	(1) improvement of the reliability of the state
500	500	electrical system;
501	501	(2) conservation of state water resources consistent
502	502	with the state water plan;
503	503	(3) reduction of energy costs;
504	504	(4) economic stimulation and development;
505	505	(5) enhancement of property values;
506	506	(6) enhancement of employment opportunities; and
507	507	(7) reduction in greenhouse gas emissions.
508	508	Sec. 400.016. REQUEST TO TEXAS PUBLIC FINANCE AUTHORITY FOR
509	509	BOND ISSUANCE. (a) If a local government determines it is in the
510	510	best interest of the local government to seek assistance in
511	511	financing the program through the issuance of bonds, the local
512	512	government may request the Texas Public Finance Authority to issue
513	513	bonds under Section 1232.1075, Government Code, on its behalf.
514	514	(b) The governing body of the local government must pass a
515	515	resolution authorizing the program administrator to submit a
516	516	request to the Texas Public Finance Authority to issue bonds. The
517	517	request must state the principal amount of the bonds and the maximum
518	518	term, not to exceed 25 years.
519	519	(c) The principal amount requested under Subsection (b) may
520	520	be increased to include an amount sufficient to:
521	521	(1) pay the costs of issuance by the Texas Public
522	522	Finance Authority;
523	523	(2) provide for a bond reserve fund; and
524	524	(3) capitalize interest for the period determined
525	525	necessary by the local government, not to exceed two years.
526	526	Sec. 400.017. JOINT IMPLEMENTATION. (a) Any combination
527	527	of local governments may agree to jointly establish, implement, or
528	528	administer a program under this chapter.
529	529	(b) If two or more local governments implement a program
530	530	jointly, a single public hearing held jointly by the cooperating
531	531	local governments is sufficient to satisfy the requirement of
532	532	Section 400.008(a)(2).
533	533	(c) Local governments acting as a jointly operated program
534	534	are authorized to request the issuance of bonds under Section
535	535	400.016 and to exercise the same powers under Section 400.003,
536	536	including the authority to contract with a designated
537	537	administrator.
538	538	Sec. 400.018. PROHIBITED ACTS. A local government that
539	539	establishes a region under this chapter may not:
540	540	(1) make the issuance of a permit, license, or other
541	541	authorization from the local government to a person who owns
542	542	property in the region contingent on the person entering into a
543	543	written contract to repay the financing of a qualified project
544	544	through contractual assessments under this chapter; or
545	545	(2) otherwise compel a person who owns property in the
546	546	region to enter into a written contract to repay the financing of a
547	547	qualified project through contractual assessments under this
548	548	chapter.
549	549	Sec. 400.019. NO PERSONAL LIABILITY. The governing body of
550	550	a local government or local government employees are not personally
551	551	liable as a result of exercising any rights or responsibilities
552	552	granted under this chapter.
553	553	SECTION 5. This Act takes effect immediately if it receives
554	554	a vote of two-thirds of all the members elected to each house, as
555	555	provided by Section 39, Article III, Texas Constitution. If this
556	556	Act does not receive the vote necessary for immediate effect, this
557	557	Act takes effect September 1, 2015.