Bill Text: TX SB412 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to payment of costs of improvements of a public improvement district designated by a municipality or county.

Spectrum: Bipartisan Bill

Status: (Passed) 2011-06-17 - Effective immediately [SB412 Detail]

Download: Texas-2011-SB412-Introduced.html

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82R6139 PAM-F
By: West S.B. No. 412

A BILL TO BE ENTITLED
AN ACT
relating to payment of costs of improvements of a public
improvement district designated by a municipality or county.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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) [The cost of an improvement made under
this subchapter must be paid in accordance with this section].
(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 [A cost] payable from a special assessment that is
payable [to be paid] in installments may be paid by any combination
of the following methods [and a cost payable by the municipality or
county as a whole but not payable from available general funds or
other available general improvement funds shall be paid]:
(1) under an installment sales [sale] contract or a
reimbursement agreement between the municipality or county and
[with] the person who acquires, installs, or constructs the
improvements [contracts to install or construct the improvement for
which the costs apply];
(2) as provided by a temporary note or time warrant
issued by the municipality or county and payable to the [reimburse
a] person who acquires, installs, or constructs the improvements
[for money advanced or work performed in connection with an
improvement]; or
(3) by the issuance and sale of [revenue or general
obligation] bonds under Section 372.024.
(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 [net effective] interest rate[, as computed for a
public security under Section 1204.005, Government Code,] on unpaid
amounts due under an installment sales contract, reimbursement
agreement, temporary note, or time warrant described by [money owed
or paid under] Subsection (d):
(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 [one-half of one] percent above the highest average
index [interest] rate for tax-exempt bonds reported in a daily or
[by a newspaper in a] weekly bond index approved by the governing
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) [of the contract or agreement or the issuance of the
bond, temporary note, or time warrant. The newspaper must
specialize in bonds and be acceptable as a reliable source for bond
interest rates to the governing body of the municipality or county
that enters into the contract or agreement or that issues the bond,
temporary note, or time warrant].
(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 [an
agreement with a person who contracts to install or construct the
improvement and who sells the improvement to the municipality or
county].
SECTION 2. Section 372.023(f), Local Government Code, is
repealed.
SECTION 3. 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.