Bill Text: TX HB1912 | 2013-2014 | 83rd Legislature | Comm Sub
Bill Title: Relating to public improvement districts designated by a municipality or county; authorizing assessments.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-05-06 - Committee report sent to Calendars [HB1912 Detail]
Download: Texas-2013-HB1912-Comm_Sub.html
83R22401 PAM-D | |||
By: Elkins | H.B. No. 1912 | ||
Substitute the following for H.B. No. 1912: | |||
By: Thompson of Brazoria | C.S.H.B. No. 1912 |
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relating to public improvement districts designated by a | ||
municipality or county; authorizing assessments. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 372.0015, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 372.0015. DEFINITIONS [ |
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subchapter: | ||
(1) "Costs" means costs and expenses paid or incurred | ||
before, during, or after the establishment of a public improvement | ||
district and in connection with or related to the undertaking and | ||
funding of a public improvement project authorized under this | ||
subchapter. | ||
(2) "Extraterritorial[ |
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jurisdiction" means extraterritorial jurisdiction as determined | ||
under Chapter 42. | ||
SECTION 2. Subchapter A, Chapter 372, Local Government | ||
Code, is amended by adding Section 372.0025 to read as follows: | ||
Sec. 372.0025. PUBLIC IMPROVEMENT DISTRICT. A public | ||
improvement district is an area, the boundaries of which are | ||
designated by the governing body of a municipality or county under | ||
this subchapter, that may include two or more noncontiguous areas | ||
separated by: | ||
(1) a right-of-way or other land dedicated to or | ||
owned, leased, licensed, or used by a political subdivision or | ||
other governmental entity, tax-exempt entity, charitable | ||
organization, public or private utility, or railroad; or | ||
(2) not more than 2,500 feet, as measured in a straight | ||
line, between the nearest points on the property lines of the | ||
closest situated noncontiguous areas. | ||
SECTION 3. Section 372.003, Local Government Code, is | ||
amended by amending Subsections (a), (b), (b-1), and (c) and adding | ||
Subsections (b-2) and (e) to read as follows: | ||
(a) If the governing body of a municipality or county finds | ||
that it promotes the interests of the municipality or county, the | ||
governing body may undertake an improvement project that confers a | ||
special benefit on a definable part of the municipality or county or | ||
the municipality's extraterritorial jurisdiction. A project may be | ||
undertaken in the municipality or county or the municipality's | ||
extraterritorial jurisdiction. A project may be undertaken inside | ||
or outside a public improvement district if the project confers a | ||
special benefit on property in the district. | ||
(b) A public improvement project may include: | ||
(1) landscaping; | ||
(2) erection of fountains, distinctive lighting, and | ||
signs; | ||
(3) acquiring, constructing, improving, widening, | ||
narrowing, closing, or rerouting of sidewalks or of streets, any | ||
other roadways, or their rights-of-way; | ||
(4) construction or improvement of pedestrian malls; | ||
(5) acquisition and installation of pieces of art; | ||
(6) acquisition, construction, or improvement of | ||
libraries; | ||
(7) acquisition, construction, or improvement of | ||
off-street parking facilities; | ||
(8) acquisition, construction, improvement, or | ||
rerouting of mass transportation or rail facilities; | ||
(9) acquisition, construction, or improvement of | ||
water, wastewater, or drainage facilities or improvements; | ||
(10) the right to receive water, wastewater, or | ||
drainage services, the right to acquire a certificate of | ||
convenience and necessity to provide those services, and the | ||
obligation to pay service-related costs and expenses, including tap | ||
fees, connection fees, and impact fees authorized by law, including | ||
impact fees authorized by Chapter 395; | ||
(11) the establishment or improvement of parks, open | ||
spaces, and recreation facilities; | ||
(12) facilities or equipment for firefighters, | ||
police, sheriffs, and emergency service providers; | ||
(13) [ |
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Subdivisions (1)-(11) [ |
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(14) [ |
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real property in connection with an authorized improvement; | ||
(15) [ |
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improvement and promotion of the district, including services | ||
relating to: | ||
(A) advertising; | ||
(B) [ |
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(C) [ |
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(D) [ |
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(E) firefighters, police, sheriffs, emergency | ||
service providers, and other public safety and[ |
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personnel; | ||
(F) [ |
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(G) [ |
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(H) [ |
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(I) cultural enhancement; | ||
(16) [ |
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establishment, administration, and operation of the district; and | ||
(17) [ |
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expansion of affordable housing. | ||
(b-1) Payment of expenses under Subsection (b)(16) | ||
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maintenance of mass transportation or rail facilities. | ||
(b-2) A special supplemental service under Subsection | ||
(b)(15) includes services provided by another entity under contract | ||
with that entity. | ||
(c) A public improvement project may be limited to the | ||
provision of the services described by Subsection (b)(15) | ||
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(e) A public improvement project may be dedicated, | ||
conveyed, leased, or otherwise provided to or for the benefit of: | ||
(1) a municipality or county; | ||
(2) a political subdivision or other entity exercising | ||
the powers granted under this subchapter as authorized by other | ||
law; or | ||
(3) an entity that: | ||
(A) is approved by the governing body of an | ||
entity described by Subdivision (1) or (2); and | ||
(B) is authorized by order, ordinance, | ||
resolution, or other official action to act for an entity described | ||
by Subdivision (1) or (2). | ||
SECTION 4. Section 372.009, Local Government Code, is | ||
amended by amending Subsections (b) and (d) and adding Subsection | ||
(c-1) to read as follows: | ||
(b) The hearing may be adjourned and reconvened from time to | ||
time until the governing body makes findings by resolution as to: | ||
(1) the advisability of the improvement; | ||
(2) the nature of the improvement; | ||
(3) the estimated cost of the improvement; | ||
(4) the boundaries of the public improvement district; | ||
(5) the method of assessment; and | ||
(6) the apportionment of costs between the district | ||
and the municipality or county as a whole. | ||
(c-1) For purposes of Subsection (c)(4), the boundaries of | ||
the proposed assessment district may be described in the notice by | ||
reference to existing streets, roads, and other landmarks with a | ||
statement providing the location where the metes and bounds | ||
description of the boundaries of the proposed district are on file | ||
and available for public inspection. | ||
(d) Written notice containing the information required by | ||
Subsection (c) must be mailed before the 15th day before the date of | ||
the hearing. The notice may [ |
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and sent by regular mail [ |
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owner, as reflected on tax rolls, of property subject to assessment | ||
under the proposed public improvement district. The failure of the | ||
property owner to receive the notice does not invalidate the | ||
proceedings under this subchapter. | ||
SECTION 5. Section 372.010, Local Government Code, is | ||
amended by amending Subsections (b) and (c) and adding Subsections | ||
(d) and (e) to read as follows: | ||
(b) An authorization takes effect when a substantial copy of | ||
the resolution or a caption of the resolution [ |
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published one time in a newspaper of general circulation in the | ||
municipality or county. If any part of the improvement district is | ||
located in the municipality's extraterritorial jurisdiction or if | ||
any part of the improvements is to be undertaken in the | ||
municipality's extraterritorial jurisdiction, the authorization | ||
does not take effect until the notice is also given one time in a | ||
newspaper of general circulation in the part of the | ||
extraterritorial jurisdiction in which the district is located or | ||
in which the improvements are to be undertaken. | ||
(c) Actual construction of an improvement may not begin, or | ||
the acquisition of an existing improvement may not occur, until | ||
after the 20th day after the date the authorization takes effect. | ||
Construction [ |
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if during that 20-day period written protests signed by at least | ||
two-thirds of the owners of record of property within the | ||
improvement district or by the owners of record of property | ||
comprising at least two-thirds of the total area of the district are | ||
filed with the municipal secretary or county clerk [ |
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other officer performing the duties of the municipal secretary or | ||
county clerk [ |
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may withdraw the name from the protest at any time before the | ||
governing body of the municipality or county convenes to determine | ||
the sufficiency of the protest. | ||
(d) If construction of an improvement begins before the | ||
expiration of the 20-day period provided by Subsection (c) or | ||
before the district is authorized, the improvement is considered an | ||
existing improvement and must be acquired as an existing | ||
improvement after construction is completed unless the 20-day | ||
period is waived as provided by Subsection (e). | ||
(e) The 20-day waiting period provided by Subsection (c) may | ||
be waived at any time if a written waiver is filed with the | ||
municipal secretary or county clerk signed by at least two-thirds | ||
of the owners of record of property within the improvement district | ||
or by the owners of record of property comprising at least | ||
two-thirds of the total area of the district. | ||
SECTION 6. Section 372.011, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 372.011. DISSOLUTION. (a) A public hearing may be | ||
called and held in the same manner as a hearing under Section | ||
372.009 for the purpose of dissolving a district if a petition | ||
requesting dissolution is filed and the petition contains the | ||
signatures of at least enough property owners in the district to | ||
make a petition sufficient under Section 372.005(b). If the | ||
district is dissolved, the district nonetheless shall remain in | ||
effect for the purpose of meeting obligations of indebtedness for | ||
improvements. | ||
(b) A district may be dissolved by resolution or order | ||
approved by two-thirds of all the members of the governing body of | ||
the municipality or county that established the district without a | ||
petition requesting dissolution under Subsection (a) if: | ||
(1) assessments have not been levied before the fifth | ||
anniversary of the date the district was established; or | ||
(2) levied assessments are paid in full and the | ||
district has no other outstanding obligations. | ||
(c) Before a district may be dissolved as provided by | ||
Subsection (b): | ||
(1) a public hearing must be called and held in the | ||
same manner as a hearing under Section 372.009; and | ||
(2) notice of dissolution must be mailed to each owner | ||
of property within the district. | ||
SECTION 7. Section 372.012, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 372.012. AREA OF DISTRICT. (a) The area of a public | ||
improvement district to be assessed according to the findings of | ||
the governing body of the municipality or county may be less than | ||
the area described in the proposed boundaries stated by the notice | ||
under Section 372.009. Except as provided by this section, the | ||
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the notice as being within the proposed boundaries of the district | ||
unless a hearing is held to include the property and notice for the | ||
hearing is given in the same manner as notice under Section 372.009. | ||
(b) After the district is authorized and before the levy of | ||
assessments, the governing body of a municipality or county may | ||
exclude all or any portion of an owner's property from the district | ||
if the governing body: | ||
(1) receives a petition from the owner of property in | ||
the district; | ||
(2) publishes notice and holds a public hearing in the | ||
manner provided by Section 372.009; and | ||
(3) finds by resolution or order that no public | ||
improvement project to be undertaken confers a special benefit on | ||
the property. | ||
(c) After the district is authorized and before the levy of | ||
assessments, an owner of property outside the district may petition | ||
the governing body of the municipality or county to include the | ||
owner's property in the district. The governing body may: | ||
(1) include the owner's property in the district if the | ||
governing body: | ||
(A) publishes notice and holds a public hearing | ||
in the manner provided by Section 372.009; and | ||
(B) finds by resolution or order that a public | ||
improvement project to be undertaken will confer a special benefit | ||
on the property; and | ||
(2) by ordinance or order, levy assessments against | ||
the owner's property when assessments in the district are levied | ||
after the governing body publishes notice and holds a public | ||
hearing in the manner provided by Sections 372.016 and 372.017. | ||
(d) After the district is authorized and after the levy of | ||
assessments, an owner of property outside the district may petition | ||
the governing body of the municipality or county to include the | ||
owner's property in the district and to levy assessments against | ||
the owner's property. The governing body may: | ||
(1) include the owner's property in the district if the | ||
governing body: | ||
(A) publishes notice and holds a public hearing | ||
as provided by Section 372.009; and | ||
(B) finds by resolution or order that a public | ||
improvement project to be undertaken will confer a special benefit | ||
on the property; | ||
(2) by ordinance or order, levy assessments against | ||
the owner's property after the governing body publishes notice and | ||
holds a public hearing in the manner provided by Sections 372.016 | ||
and 372.017; and | ||
(3) by ordinance or order, reduce assessments against | ||
the other property in the district to reflect a reallocation of | ||
costs by the addition of property to the district after the | ||
governing body publishes notice and holds a public hearing in the | ||
manner provided by Sections 372.016 and 372.017. | ||
(e) For purposes of a hearing to exclude or include property | ||
in a district under Subsection (b), (c), or (d), the governing body | ||
of a municipality or county shall mail notice to each owner of | ||
property in the district that is liable for assessment. | ||
(f) For purposes of Subsections (c) and (d), a commissioners | ||
court of a county may include in a district an owner's property that | ||
is located in a home-rule municipality's corporate limits or | ||
extraterritorial jurisdiction unless within 30 days of the | ||
commissioners court's action to include the owner's property the | ||
home-rule municipality objects to the inclusion of the owner's | ||
property in the district. | ||
SECTION 8. Section 372.014, Local Government Code, is | ||
amended by amending Subsection (b) and adding Subsection (c) to | ||
read as follows: | ||
(b) The municipality or county is responsible for payment of | ||
assessments against exempt municipal or county property in the | ||
district only if payment is expressly authorized by the governing | ||
body of the municipality or county. Payment of assessments by other | ||
exempt jurisdictions must be established by contract. An | ||
assessment paid by the municipality or county under this subsection | ||
is considered to have been paid by special assessment for the | ||
purposes of Subsection (a). | ||
(c) The assessment plan is intended to be flexible to | ||
provide for various development scenarios, including: | ||
(1) assessments against all property in the district | ||
to pay the costs of improvements that benefit all the property in | ||
the district and additional assessments levied against portions of | ||
the property in the district to pay the costs of additional | ||
improvements that benefit those portions of the property; or | ||
(2) assessments levied to pay the costs for all | ||
improvements contemplated for one or more phases of development of | ||
the property with different dates for accrual of interest and for | ||
payment and collection for the different phases as determined by | ||
events established by the plan, including events related to the | ||
future phased development of the property. | ||
SECTION 9. Section 372.015, Local Government Code, is | ||
amended by adding Subsections (e) through (h) to read as follows: | ||
(e) The periodic installment of an assessment payable in | ||
installments, including principal, interest, administrative costs, | ||
collection costs, and delinquency charges and penalties, may be | ||
increased or decreased by the governing body of the municipality or | ||
county following an annual review of the service plan. | ||
(f) If a parcel is subdivided, the assessment against the | ||
parcel before the parcel was subdivided may be reallocated among | ||
the subdivided parcels by the governing body of the municipality or | ||
county as reflected in the updated annual service plan and the | ||
corresponding updated assessment roll. | ||
(g) If two or more parcels are consolidated, the assessments | ||
against each parcel may be reallocated to the consolidated parcel | ||
by the governing body of the municipality or county as reflected in | ||
the updated annual service plan and the corresponding updated | ||
assessment roll. | ||
(h) If a proposed use of an undeveloped parcel changes after | ||
an assessment is levied against a parcel: | ||
(1) the change in use does not affect the amount or | ||
validity of the assessment against the parcel; and | ||
(2) the aggregate amount of assessments levied against | ||
multiple undeveloped parcels for which the proposed use has changed | ||
may be reallocated among the undeveloped parcels by the governing | ||
body of the municipality or county following an annual review of the | ||
service plan. | ||
SECTION 10. Section 372.016, Local Government Code, is | ||
amended by adding Subsections (b-1) and (d) and amending Subsection | ||
(c) to read as follows: | ||
(b-1) For purposes of Subsection (b)(4), the boundaries of | ||
the assessment district may be described in the notice by reference | ||
to existing streets, roads, and other landmarks with a statement | ||
providing the location where the metes and bounds description of | ||
the boundaries of the district are on file and available for public | ||
inspection. | ||
(c) When the assessment roll is filed under Subsection (b), | ||
the municipal secretary or other officer shall mail to the owners of | ||
property liable for assessment a notice of the hearing. The notice | ||
must contain the information required by Subsection (b). The | ||
notice may be addressed to "Property Owner" and mailed by regular | ||
mail. The notice must be mailed before the 10th day before the date | ||
of the hearing to the current [ |
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owner, as reflected on the tax rolls. The failure of a property | ||
owner to receive notice does not invalidate the proceeding. | ||
(d) The public hearing required by this section may be | ||
adjourned and reconvened from time to time. | ||
SECTION 11. Section 372.017, Local Government Code, is | ||
amended by adding Subsection (c) to read as follows: | ||
(c) An assessment levied under this section may vary from | ||
the proposed service plan, proposed assessment plan, or proposed | ||
assessment roll filed and made available for public inspection in | ||
accordance with Section 372.016. The total cost of an assessment | ||
levied under this section may not exceed the cost of improvements | ||
provided in the notice as required under Section 372.016(b)(3) and | ||
mailed to the owners as provided by Section 372.016(c). | ||
SECTION 12. Section 372.018, Local Government Code, is | ||
amended by amending Subsections (a) and (f) and adding Subsection | ||
(g) to read as follows: | ||
(a) An assessment bears interest at the rate specified by | ||
the governing body of the municipality or county beginning at the | ||
time or times or on the occurrence of one or more events specified | ||
by the governing body. If general obligation bonds, revenue bonds, | ||
installment sales contracts, reimbursement agreements, time | ||
warrants, or temporary notes are issued or entered into to finance | ||
or pay for the improvement for which the assessment is assessed, the | ||
interest rate for that assessment may not exceed a rate that is | ||
one-half of one percent higher than the actual interest rate paid on | ||
the debt. [ |
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The interest on any delinquent installment shall be added to each | ||
subsequent installment until all delinquent installments are paid. | ||
The added interest may be used to pay administrative costs, costs of | ||
improvements, and costs of financing, including reserves for debt | ||
service and prepayment of assessments. | ||
(f) Delinquent installments of the assessment shall incur | ||
interest, penalties, and attorney's fees in the same manner as | ||
delinquent ad valorem taxes. | ||
(g) The owner of assessed property may pay at any time all or | ||
any part of the assessment, with interest that: | ||
(1) has accrued on the assessment; and | ||
(2) will accrue on the assessment until the next | ||
scheduled prepayment or redemption date on the bonds, installment | ||
sales contract, reimbursement agreement, time warrant, or | ||
temporary note issued or entered into to finance or pay for the | ||
improvements [ |
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SECTION 13. Section 372.024, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 372.024. GENERAL OBLIGATION AND REVENUE BONDS; | ||
CERTIFICATES OF OBLIGATION. (a) The governing body of a | ||
municipality or county may issue: | ||
(1) general [ |
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(2) certificates of obligation under Subchapter C, | ||
Chapter 271; and | ||
(3) revenue[ |
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more series [ |
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(b) The bond or obligation may: | ||
(1) be issued to pay costs; | ||
(2) be issued to refund any obligations entered into | ||
or issued under this subchapter, including installment sales | ||
contracts, reimbursement agreements, time warrants, or temporary | ||
notes; and | ||
(3) be payable from and secured by special | ||
assessments. | ||
(c) If the bond or obligation is issued for the purpose | ||
described by Subsection (b)(2) and is secured wholly or partly by a | ||
special assessment, the lien created by the originally levied | ||
special assessment continues uninterrupted for the term of the bond | ||
or obligation to secure payment of the bond or obligation. | ||
(d) The bond or obligation must be issued or entered into | ||
under the terms determined by the governing body of the | ||
municipality or county. | ||
SECTION 14. Section 372.026, Local Government Code, is | ||
amended by adding Subsection (g) to read as follows: | ||
(g) The governing body of a municipality or county may | ||
pledge all or any part of the revenue collected from assessments as | ||
security for and to pay all or any part of one or more obligations on | ||
the terms determined by the governing body, including the priority | ||
of payment and allocation of assessment revenue among the | ||
obligations. If an assessment is collected and applied to pay an | ||
amount due under an installment sales contract, reimbursement | ||
agreement, time warrant, or temporary note, the governing body of a | ||
municipality or county may pledge all or any part of the revenue | ||
collected as security for and to pay general obligation bonds, | ||
certificates of obligation, or revenue bonds issued to refund those | ||
obligations. The pledge authorized by this subsection does not: | ||
(1) affect the lien of that assessment; or | ||
(2) constitute a reassessment or a new assessment. | ||
SECTION 15. Subchapter A, Chapter 372, Local Government | ||
Code, is amended by adding Section 372.031 to read as follows: | ||
Sec. 372.031. LIABILITY FOR PAYMENT. An assessment levied | ||
by the governing body of a municipality or county under this | ||
chapter, or an obligation issued or agreement or contract entered | ||
into by the governing body of a municipality or county under this | ||
chapter and payable from and secured, wholly or partly, by that | ||
assessment, does not constitute a debt or pledge of the full faith | ||
and credit of the municipality or county, this state, or any other | ||
political corporation, subdivision, or agency of this state. | ||
SECTION 16. 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, 2013. |