Bill Text: TX HB1400 | 2011-2012 | 82nd Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to public improvement districts designated by a municipality or county.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-06-17 - Effective on 9/1/11 [HB1400 Detail]
Download: Texas-2011-HB1400-Comm_Sub.html
Bill Title: Relating to public improvement districts designated by a municipality or county.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-06-17 - Effective on 9/1/11 [HB1400 Detail]
Download: Texas-2011-HB1400-Comm_Sub.html
By: Elkins (Senate Sponsor - West) | H.B. No. 1400 | |
(In the Senate - Received from the House April 18, 2011; | ||
April 26, 2011, read first time and referred to Committee on | ||
Intergovernmental Relations; May 19, 2011, reported adversely, | ||
with favorable Committee Substitute by the following vote: Yeas 5, | ||
Nays 0; May 19, 2011, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR H.B. No. 1400 | By: West |
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relating to the boundaries and financing of public improvement | ||
districts designated by a municipality or county. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 372.003, Local Government Code, is | ||
amended by adding Subsection (b-1) to read as follows: | ||
(b-1) Payment of expenses under Subsection (b)(14) may also | ||
include expenses related to the operation and maintenance of mass | ||
transportation facilities. | ||
SECTION 2. Subchapter A, Chapter 372, Local Government | ||
Code, is amended by adding Section 372.0035 to read as follows: | ||
Sec. 372.0035. COMMON CHARACTERISTIC OR USE FOR PROJECTS IN | ||
CERTAIN MUNICIPALITIES. (a) This section applies only to: | ||
(1) a municipality that has a population of more than | ||
one million and a council-manager form of government and that is | ||
located wholly or partly in a county with a population of more than | ||
two million; and | ||
(2) a public improvement district established under | ||
this subchapter and solely composed of territory in which the only | ||
businesses are hotels with 100 or more rooms ordinarily used for | ||
sleeping. | ||
(b) A municipality may undertake a project that confers a | ||
special benefit on areas that share a common characteristic or use. | ||
The areas may be noncontiguous. | ||
(c) This section does not prohibit a municipality from or | ||
limit a municipality to establishing a district that includes a | ||
noncontiguous area authorized by this subchapter. | ||
SECTION 3. Subchapter A, Chapter 372, Local Government | ||
Code, is amended by adding Section 372.0055 to read as follows: | ||
Sec. 372.0055. DEFERRED ASSESSMENT; ESTIMATE. If a | ||
proposed improvement under Section 372.005 includes a deferred | ||
assessment, before holding the hearing required by Section 372.009, | ||
the governing body of the municipality or county must estimate: | ||
(1) the appraised value of taxable real property | ||
liable for assessment in the district; and | ||
(2) the cost of the improvement. | ||
SECTION 4. Section 372.017(b), Local Government Code, is | ||
amended to read as follows: | ||
(b) After all objections have been heard and the governing | ||
body has passed on the objections, the governing body by ordinance | ||
or order shall levy the assessment as a special assessment on the | ||
property. The governing body by ordinance or order shall specify | ||
the method of payment of the assessment. The governing body may | ||
defer an assessment until a date the governing body specifies in the | ||
ordinance or order. The governing body may provide that assessments | ||
be paid in periodic installments, at an interest rate and for a | ||
period approved by the governing body. The provision that | ||
assessments be paid in periodic installments may, but is not | ||
required to, result in level annual installment payments. The | ||
installments must be in amounts necessary to meet annual costs for | ||
improvements and must continue for: | ||
(1) the period necessary to retire the indebtedness on | ||
the improvements; or | ||
(2) the period approved by the governing body for the | ||
payment of the installments. | ||
SECTION 5. Subchapter A, Chapter 372, Local Government | ||
Code, is amended by adding Section 372.031 to read as follows: | ||
Sec. 372.031. FINDINGS PRIOR TO ISSUANCE OF CERTAIN BONDS | ||
OR OBLIGATIONS. (a) Prior to the issuance under this chapter of | ||
bonds or obligations wholly or partly payable from or secured by | ||
assessments, the governing body of a municipality with a population | ||
of 250,000 or less or the governing body of a county with a | ||
population of 1 million or less issuing the bonds or obligations | ||
must find and determine the following: | ||
(1) construction of all underground water, | ||
wastewater, and drainage facilities and roadways to serve the real | ||
property liable for assessments necessary to support the payment of | ||
the bonds or obligations is at least 95 percent complete; and | ||
(2) construction of at least 25 percent of the houses | ||
or other buildings on the real property liable for assessments and | ||
necessary to support the bonds or obligations has been completed. | ||
(b) Prior to the issuance under this chapter of bonds or | ||
obligations wholly or partly payable from or secured by | ||
assessments, a municipality with a population of more than 250,000 | ||
or a county with a population of more than 1 million issuing the | ||
bonds or obligations must obtain an independent market study from a | ||
firm recognized in the area of real estate market analysis | ||
supporting the development projects for the real property liable | ||
for assessments and necessary to support the payment of the bonds or | ||
obligations. | ||
(c) Subsections (a) and (b) do not apply to general | ||
obligation bonds or certificates of obligations. | ||
(d) The Attorney General shall adopt rules to enforce this | ||
section and to ensure the integrity and economic feasibility of | ||
bonds or obligations issued under this chapter. | ||
SECTION 6. Section 372.041(a), Local Government Code, is | ||
amended to read as follows: | ||
(a) A home-rule municipality may create improvement | ||
districts for the purposes of: | ||
(1) levying, straightening, widening, enclosing, or | ||
otherwise improving a river, creek, bayou, stream, other body of | ||
water, street, or alley; | ||
(2) draining, grading, filling, and otherwise | ||
protecting and improving the territory within the municipality's | ||
limits; [ |
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(3) issuing bonds to finance improvements listed in | ||
this subsection; and | ||
(4) financing an improvement described in Subchapter | ||
A. | ||
SECTION 7. This Act takes effect September 1, 2011. | ||
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