86R7576 SCL-D
By: Lucio S.B. No. 1551
A BILL TO BE ENTITLED
AN ACT
relating to a historic structure assistance program operated by a
municipally owned utility in certain municipalities; authorizing a
fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 552, Local Government Code, is amended
by adding Subchapter I to read as follows:
SUBCHAPTER I. HISTORIC STRUCTURE ASSISTANCE PROGRAM IN CERTAIN
MUNICIPALITIES
Sec. 552.151. DEFINITIONS. In this subchapter:
(1) "Historic structure" means a structure described
by Sections 442.001(3)(A) and (D), Government Code.
(2) "Historic structure fee" means a fee charged by a
municipally owned utility in accordance with this subchapter for
the purpose of maintaining, operating, and renovating the utility
systems of certain historic structures.
(3) "Municipally owned utility" means a utility owned,
operated, and controlled by a municipality.
(4) "Program" means a historic structure assistance
program established under Section 552.158.
Sec. 552.152. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a municipality:
(1) operating a municipally owned utility; and
(2) located in a county that is located on the
international border.
Sec. 552.153. HISTORIC STRUCTURE FEE. A municipally owned
utility may charge a historic structure fee in an amount not to
exceed $1 each month for the purpose of maintaining, operating, and
renovating the utility systems of certain historic structures under
the historic structure assistance program if a majority of
municipal voters approve the fee in an election held in accordance
with this subchapter.
Sec. 552.154. FEE RESOLUTION; ELECTION ORDER. If a
municipally owned utility proposes a historic structure fee, the
governing body of a municipality that owns the utility shall:
(1) adopt a resolution that specifies:
(A) the amount of the proposed historic structure
fee;
(B) the purpose for which the proposed historic
structure fee is charged; and
(C) the date on which the municipally owned
utility proposes to begin charging the proposed historic structure
fee; and
(2) order an election on the uniform election date in
November authorized under Section 41.001, Election Code, to approve
the historic structure fee.
Sec. 552.155. NOTICE OF ELECTION. (a) The governing body
of a municipality shall provide notice of an election for the
approval of a proposed historic structure fee by publishing a copy
of the resolution and election order described by Section 552.154
once a week for two consecutive weeks in a newspaper with general
circulation in the municipality.
(b) The notice must be published not earlier than the 30th
day or later than the 10th day before election day.
Sec. 552.156. RESULTS OF FEE ELECTION; NOTICE. (a) If a
majority of municipal voters approve a historic structure fee at an
election called for that purpose, the municipally owned utility:
(1) shall provide notice to all affected utility
customers that contains:
(A) the election results; and
(B) information regarding:
(i) the opt out process; and
(ii) how the fee is to be used; and
(2) may begin charging the fee on the date specified in
the resolution adopted under Section 552.154.
(b) If a majority of municipal voters do not approve a
historic structure fee at an election called for that purpose, the
municipality may not hold another election on the approval of a
historic structure fee before the first anniversary of the date of
the election at which the voters did not approve of the fee.
Sec. 552.157. FEE OPT OUT. If a historic structure fee is
approved under Section 552.156, a customer of the municipally owned
utility may provide written notice to the utility that the customer
elects to opt out of paying the fee. On receipt of the notice, the
utility may not charge that customer the fee.
Sec. 552.158. HISTORIC STRUCTURE ASSISTANCE PROGRAM.
(a) If a historic structure fee is approved under Section 552.156,
the municipally owned utility shall establish and operate a
historic structure assistance program in accordance with this
section. The utility may use the fee only for the purpose of
operating the program, and the utility may not use more than 10
percent of the revenue generated by the fee for the purpose of
paying the program's administrative costs.
(b) A nonprofit organization or a governmental entity may
apply to the municipally owned utility to enter into an agreement
under the program. To be eligible, an applicant must own a historic
structure that is:
(1) at least 100 years old; and
(2) located within the corporate boundaries of the
municipality.
(c) A municipally owned utility that receives an
application under this section as soon as practicable must forward
a copy of the application to the governing body of the municipality
that owns the utility and to the Texas Historical Commission. The
governing body and the commission must jointly determine whether to
approve the application.
(d) If an applicant is approved for the program, the
municipally owned utility and the applicant shall enter into an
agreement that allows the utility to provide the applicant
financial assistance in accordance with the program for the purpose
of promoting the public purpose of preserving historic structures
by maintaining, operating, or renovating the utility systems of the
structures. The agreement must include provisions under which the
municipally owned utility is granted sufficient control to ensure
that the public purpose is accomplished and the municipality
receives a return benefit.
(e) After entering into an agreement under Subsection (d),
the municipally owned utility shall provide financial assistance
under the program to the program participant. Money provided under
the program may be used only for maintaining, operating, or
renovating the utility systems of the participant's historic
structure described by Subsection (b). The purposes described by
this subsection include:
(1) increasing energy or water efficiency in the
historic structure;
(2) promoting energy or water conservation in the
historic structure; and
(3) assisting the participant with utility bill
payments charged by the utility for the historic structure.
SECTION 2. This Act takes effect September 1, 2019.