H.B. No. 1606
AN ACT
relating to the level of municipal participation in contracts with
developers for public improvements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 212.072, Local Government Code, is
amended by amending Subsection (b) and adding Subsections (c) and
(d) to read as follows:
(b) The contract:
(1) must establish the limit of participation by the
municipality at a level not to exceed 30 percent of the total
contract price, if the municipality has a population of less than
1.8 million; or
(2) may allow participation by a municipality at a
level not to exceed 70 percent of the total contract price, if the
municipality has a population of 1.8 million or more.
(b-1) In addition, if the municipality has a population of
1.8 million or more, the municipality may participate at a level not
to exceed 100 percent of the total contract price for all required
drainage improvements related to the development and construction
of affordable housing. Under this subsection, affordable housing
is defined as housing which is equal to or less than the median
sales price, as determined by the Real Estate Center at Texas A&M
University, of a home in the Metropolitan Statistical Area (MSA) in
which the municipality is located.
(c) In addition, the contract may also allow participation
by the municipality at a level not to exceed 100 percent of the
total cost for any oversizing of improvements required by the
municipality, including but not limited to increased capacity of
improvements to anticipate other future development in the area.
(d) The municipality is liable only for the agreed payment
of its share of the contract, which shall be determined in advance
either as a lump sum or as a factor or percentage of the total actual
cost as determined by municipal ordinance.
SECTION 2. 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, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1606 was passed by the House on April
29, 2005, by the following vote: Yeas 142, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1606 on May 27, 2005, by the following vote: Yeas 140, Nays 0,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1606 was passed by the Senate, with
amendments, on May 24, 2005, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor