Enrolled Bill Summary

Senate Bill 412	Senate Author:  West
Effective:  6-17-11	House Sponsor:  Elkins

            Senate Bill 412 amends the Local Government Code to authorize costs of improvements of a public improvement district designated by a municipality or county to be paid or reimbursed by any combination of specified methods if the improvements are dedicated, conveyed, leased, or otherwise provided to or for the benefit of certain entities. The bill authorizes the payment or reimbursement to be provided before or after a method of authorized payment or reimbursement is entered into or issued.  The bill authorizes costs from a special assessment payable in installments to be paid by a combination of specified methods, including an installment sales contract, reimbursement agreement, temporary note, time warrant, or bond, authorizes the assignment of such a contract, agreement, note, or warrant by the payee without the consent of the municipality or county, and changes the cap on the interest rate on unpaid amounts due under an installment sales contract, reimbursement agreement, temporary note, time warrant, or bond. Previous law authorized the cost of more than one improvement to be paid, as an alternative to payment from a single issue and sale of bonds without other consolidation proceedings before the bond issue, under an agreement with a person who contracted to install or construct the improvement and who sold the improvement to the municipality or county.   The bill changes that alternative authorization to payment under a single installment sales contract, reimbursement agreement, temporary note, or time warrant.  The bill repeals a provision relating to the issuance of temporary notes while an improvement is in progress.