Bill Text: TX HB3246 | 2011-2012 | 82nd Legislature | Engrossed
Bill Title: Relating to public improvement districts designated by a municipality or county.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2011-05-29 - House adopts conf. comm. report-reported [HB3246 Detail]
Download: Texas-2011-HB3246-Engrossed.html
By: Elkins | H.B. No. 3246 |
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relating to public improvement districts designated by a | ||
municipality or county. | ||
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, or used by a political subdivision or other | ||
governmental entity, tax-exempt entity, public or private utility, | ||
or railroad; or | ||
(2) not more than 1,000 feet, as measured in a straight | ||
line, between the nearest points on the property lines of the | ||
closest situated noncontiguous areas. | ||
SECTION 3. Sections 372.003(b) and (c), Local Government | ||
Code, are amended to read as follows: | ||
(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 facilities; | ||
(9) acquisition, construction, or improvement of | ||
water, wastewater, or drainage facilities or improvements; | ||
(10) the establishment or improvement of parks and | ||
recreation facilities; | ||
(11) facilities or equipment for firefighters, | ||
police, sheriffs, and emergency service providers; | ||
(12) the right to receive or provide utility services; | ||
(13) projects similar to those listed in Subdivisions | ||
(1)-(12) [ |
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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. | ||
(c) A public improvement project may be limited to the | ||
provision of the services described by Subsection (b)(15) | ||
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SECTION 4. Subchapter A, Chapter 372, Local Government | ||
Code, is amended by adding Section 372.0035 to read as follows: | ||
Sec. 372.0035. AUTHORIZED HIGHER EDUCATION FACILITIES; | ||
LEASE TO INSTITUTION OF HIGHER EDUCATION. (a) In this section, | ||
"institution of higher education" has the meaning assigned by | ||
Section 61.003, Education Code. | ||
(b) A public improvement project under Section 372.003 may | ||
include the acquisition, construction, maintenance, or improvement | ||
of buildings and other facilities commonly used for: | ||
(1) teaching, research, or the preservation of | ||
knowledge by an institution of higher education; or | ||
(2) an auxiliary purpose of an institution of higher | ||
education, including the provision of administrative services, | ||
student services, student housing, athletics, performing arts, and | ||
alumni support. | ||
(c) The governing body of a municipality or county that | ||
establishes a public improvement district to finance a public | ||
improvement project described by Subsection (b) may enter into a | ||
memorandum of understanding with an institution of higher education | ||
that provides educational services in the municipality or county | ||
under which the municipality or county leases the public | ||
improvement project to the institution, at a nominal rate, for use | ||
by the institution in providing teaching, research, public service, | ||
or auxiliary enterprise activities to students of the institution. | ||
SECTION 5. Section 372.014, Local Government Code, is | ||
amended by adding Subsection (c) to read as follows: | ||
(c) The assessment plan is intended to be flexible to | ||
provide for various development scenarios, including: | ||
(1) assessments against all property to pay the costs | ||
of improvements that benefit all the property and additional | ||
assessments levied against portions of the property to pay the | ||
costs of improvements that benefit those portions of the property; | ||
or | ||
(2) assessments levied to pay the costs for all | ||
improvements contemplated for all phases of development of the | ||
property with different payment and collection dates for the | ||
different phases determined by events established by the plan, | ||
including events related to the future phased development of the | ||
property. | ||
SECTION 6. Section 372.015, Local Government Code, is | ||
amended by adding Subsections (e), (f), (g), and (h) to read as | ||
follows: | ||
(e) The annual installment of an assessment payable in | ||
installments may be increased or decreased by the governing body of | ||
the municipality or county as reflected in the updated annual | ||
service plan and the corresponding updated assessment roll. | ||
(f) If a parcel is subdivided, the assessment against the | ||
parcel before the parcel was subdivided may be reallocated among | ||
the subdivided parcels. | ||
(g) If two or more parcels are consolidated, the assessments | ||
against each parcel may be reallocated to the consolidated parcel. | ||
(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 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. | ||
SECTION 7. Subchapter A, Chapter 372, Local Government | ||
Code, is amended by adding Section 372.0175 to read as follows: | ||
Sec. 372.0175. CONTRACTS FOR COLLECTION OF ASSESSMENTS. | ||
The governing body of a municipality or county may contract with the | ||
governing body of another taxing unit, as defined by Section 1.04, | ||
Tax Code, or the board of directors of an appraisal district to | ||
perform the duties of the municipality or county relating to | ||
collection of special assessments levied under this subchapter. | ||
SECTION 8. 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 levied | ||
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exceed a rate that is one-half of one percent higher than the actual | ||
interest rate paid on the debt. [ |
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shall be added to each subsequent installment until all delinquent | ||
installments are paid. The added interest may be used to pay costs, | ||
including the payment or prepayment of the assessment, | ||
administrative costs, costs of improvements, and costs of financing | ||
such as reserves for debt service. | ||
(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 on any | ||
parcel or lot 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 general obligation | ||
bonds, revenue bonds, installment sales contract, reimbursement | ||
agreement, temporary note, or time warrant issued or entered into | ||
to finance or pay for the improvements [ |
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SECTION 9. Section 372.023, Local Government Code, is | ||
amended by amending Subsections (a), (d), (e), and (g) and adding | ||
Subsections (a-1) and (d-1) to read as follows: | ||
(a) Costs of improvements may be paid or reimbursed by any | ||
combination of the methods described by this section if the | ||
improvements are 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) [ |
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(a-1) The payment or reimbursement may be provided before or | ||
after a method of payment or reimbursement authorized by this | ||
section is entered into or issued. | ||
(d) Costs [ |
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payable [ |
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of the following methods [ |
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(1) under an installment sales [ |
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reimbursement agreement between the municipality or county and | ||
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improvements [ |
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(2) as provided by a temporary note or time warrant | ||
issued by the municipality or county and payable to the [ |
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(3) by the issuance and sale of [ |
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(d-1) An installment sales contract, reimbursement | ||
agreement, temporary note, or time warrant described by Subsection | ||
(d) may be assigned by the payee without the consent of the | ||
municipality or county. | ||
(e) The [ |
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amounts due under an installment sales contract, reimbursement | ||
agreement, temporary note, or time warrant described by [ |
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(1) may not exceed, for a period of not more than five | ||
years, as determined by the governing body of the municipality or | ||
county, five [ |
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index [ |
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body and reported in the month before the date the obligation was | ||
incurred; and | ||
(2) after the period described by Subdivision (1), may | ||
not exceed two percent above the bond index rate described by | ||
Subdivision (1) [ |
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(g) The cost of more than one improvement may be paid: | ||
(1) from a single issue and sale of bonds without other | ||
consolidation proceedings before the bond issue; or | ||
(2) under a single installment sales contract, | ||
reimbursement agreement, temporary note, or time warrant [ |
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SECTION 10. Section 372.024, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 372.024. GENERAL OBLIGATION AND REVENUE BONDS. (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 be: | ||
(1) issued on the terms determined by the governing | ||
body of the municipality or county; | ||
(2) issued to pay costs; | ||
(3) issued to refund any obligation entered into or | ||
issued under this subchapter, including an installment sales | ||
contract, reimbursement agreement, temporary note, and time | ||
warrant; and | ||
(4) payable from and secured by special assessments. | ||
(c) If the bond or obligation is issued for the purpose | ||
described by Subsection (b)(3) 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. | ||
SECTION 11. Section 372.026, Local Government Code, is | ||
amended by adding Subsection (g) to read as follows: | ||
(g) If an assessment is collected and applied to pay an | ||
amount due under an installment sales contract, reimbursement | ||
agreement, temporary note, or time warrant, the governing body of a | ||
municipality or county may pledge all or any part of the revenue | ||
collected to pay general obligation bonds, certificates of | ||
obligation, or revenue bonds issued to refund those obligations. | ||
The pledge authorized by this subsection: | ||
(1) does not affect the lien of that assessment; and | ||
(2) is not a reassessment or a new assessment. | ||
SECTION 12. Section 372.023(f), Local Government Code, is | ||
repealed. | ||
SECTION 13. 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, 2011. |