79R6012 MXM-F
By: Eiland H.B. No. 2621
A BILL TO BE ENTITLED
AN ACT
relating to the power of certain coastal municipalities to impose
assessments to pay for improvement projects, services, or special
events.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 10, Local Government Code, is
amended by adding Chapter 309 to read as follows:
CHAPTER 309. ASSESSMENTS FOR CERTAIN COASTAL MUNICIPALITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 309.001. DEFINITIONS. In this chapter:
(1) "Coastal municipality" means a municipality that
borders the Gulf of Mexico.
(2) "Park board" means a park board of trustees
established under Chapter 306.
(3) "Special event" means an event sponsored and
promoted by a coastal municipality, or a park board of the coastal
municipality, expected to attract 50,000 or more tourists and other
visitors to the municipality, including Mardi Gras events,
theatrical events, and events using the coastal municipality's
beaches.
Sec. 309.002. APPLICABILITY. This chapter applies only to
a coastal municipality that is a home-rule municipality with a
population of less than 60,000.
[Sections 309.003-309.050 reserved for expansion]
SUBCHAPTER B. ASSESSMENT POWERS AND DUTIES
Sec. 309.051. GENERAL POWERS RELATING TO ASSESSMENTS. (a)
The governing body of a coastal municipality may undertake
improvement projects, services, and special events that confer a
special benefit on all or a definable part of the businesses or area
within the municipality.
(b) The governing body of the coastal municipality may levy
and collect special assessments on property or businesses in the
municipality, based on the benefit conferred by the project,
service, or event, to pay all or part of the cost of the project,
service, or event.
Sec. 309.052. SPECIFIC POWERS RELATING TO PROJECTS,
SERVICES, OR SPECIAL EVENTS FINANCED WITH ASSESSMENTS. An
improvement project, service, or special event provided by the
coastal municipality or park board may include the construction,
acquisition, improvement, relocation, operation, maintenance,
financing, or provision of:
(1) landscaping, lighting, banners and signs,
streets, pedestrian skywalks, pedestrian crosswalks, pedestrian
tunnels, seawall improvements, beach renourishment or protection
programs or facilities, pedestrian malls, shower facilities,
parks, plazas, recreation or scenic areas, historic areas,
fountains, works of art, and off-street parking facilities;
(2) other improvements similar to those described by
Subdivision (1);
(3) real property or any interest in real property in
connection with an improvement project, service, or special event
authorized by this chapter;
(4) special services for advertising, economic
development, promoting special events, health and sanitation,
public safety, maintenance, security, relief of traffic
congestion, recreation, and cultural enhancement; and
(5) expenses incurred in the establishment,
administration, maintenance, provision, and operation of an
improvement project, service, or special event.
Sec. 309.053. PROPOSED ASSESSMENTS. An improvement
project, service, or special event may be financed under this
chapter after a hearing with notice given as required by this
chapter and a public hearing by the governing body of the coastal
municipality on the advisability of providing the project, service,
or special event and imposing the proposed assessments.
Sec. 309.054. NOTICE OF HEARING. (a) Notice of the hearing
shall be given in a newspaper with general circulation in the
coastal municipality. The final publication must be made not later
than the 30th day before the date of the hearing.
(b) The notice must include:
(1) the time and place of the hearing;
(2) the general nature of the proposed improvement
project, service, or special event;
(3) the estimated cost of the improvement project,
service, or special event, including interest during construction
of an improvement project and associated financing costs; and
(4) the proposed method of assessment.
(c) Written notice containing the information required by
Subsection (b) shall be mailed by first class mail not later than
the 30th day before the date of the hearing. The notice shall be
mailed to each property or business owner in the coastal
municipality who will be subject to assessment at the current
address of the property or business to be assessed as reflected on
the most recent certified tax appraisal roll for the county in which
the property or business is located.
Sec. 309.055. CONCLUSION OF HEARING; FINDINGS. (a) A
hearing on the improvement project, service, or special event,
whether conducted by the governing body of the coastal municipality
or a hearings examiner, may be adjourned from time to time.
(b) At the conclusion of the hearing, the governing body of
the coastal municipality shall make findings by resolution or
ordinance relating to the advisability of the improvement project,
service, or special event, the nature of the improvement project,
service, or special event, the estimated cost, the area or property
or businesses benefited, the method of assessment, and the method
and time for payment of the assessment.
(c) If a hearings examiner is appointed to conduct the
hearing, after conclusion of the hearing the hearings examiner
shall file with the governing body of the coastal municipality a
report stating the examiner's findings and conclusions.
Sec. 309.056. AREA OR BUSINESS TO BE ASSESSED. (a) The
area of the coastal municipality or the businesses to be assessed
according to the findings of the governing body of the coastal
municipality may be the entire municipality or any part of the
municipality and may be less than the area proposed in the notice of
the hearing. The business to be assessed may be all or part of the
businesses in the coastal municipality and may be less than the
businesses proposed to be assessed in the notice of hearing.
(b) The owner of any property or business proposed to be
assessed may waive the right to notice and an assessment hearing and
may agree to the imposition and payment of assessments at an agreed
rate.
Sec. 309.057. OBJECTIONS; LEVY OF ASSESSMENT. (a) At a
hearing on proposed assessments, at any adjournment of the hearing,
or after consideration of the hearings examiner's report, the
governing body of the coastal municipality shall hear and rule on
all objections to each proposed assessment.
(b) The governing body of the coastal municipality may amend
proposed assessments for any parcel or business.
(c) After all objections have been heard and action has been
taken with regard to those objections, the governing body of the
coastal municipality by ordinance shall levy the assessments as
special assessments on the property or businesses and shall specify
the method of payment of the assessments and may provide that those
assessments be paid in periodic installments, including interest.
(d) Periodic installments must be in amounts sufficient to
meet annual costs for improvement projects, services, or special
events as provided by Section 309.058 and continue for the number of
years required to retire indebtedness or pay for the services to be
rendered or the special events to be provided. The governing body
of the coastal municipality may provide interest charges or
penalties for failure to make timely payment and also may levy an
amount to cover delinquencies and expenses of collection.
(e) The governing body of the coastal municipality shall
establish a procedure for the distribution or use of any
assessments in excess of those necessary to finance the improvement
project, service, or special event for which those assessments were
collected.
Sec. 309.058. APPORTIONMENT OF COST. The portion of the
cost of an improvement project, service, or special event to be
assessed against the property or businesses in the coastal
municipality shall be apportioned by the governing body of the
coastal municipality based on the special benefits accruing to the
property or businesses because of the improvement project, service,
or special event. The cost may be assessed:
(1) equally by front foot or by square foot of land
area against all property benefited or on the revenue derived by a
business from an improvement project, service, or special event;
(2) against property according to the value of the
property as determined by the governing body of the coastal
municipality, with or without regard to structures or other
improvements on the property; or
(3) on any other reasonable assessment plan that
results in imposing fair and equitable shares of the cost on
property similarly benefited.
Sec. 309.059. ASSESSMENT ROLL. (a) If the total cost of an
improvement project, service, or special event is determined by the
governing body of the coastal municipality to be assessed against
benefited property, the governing body of the coastal municipality
shall levy the assessments against each parcel of land or business
against which an assessment may be levied.
(b) With regard to an assessment for a service or special
event, the governing body of the coastal municipality may levy an
annual assessment that may be lower but not higher than the initial
assessment.
(c) The governing body of the coastal municipality shall
have an assessment roll prepared showing the assessments against
each property or business and the governing body of the coastal
municipality's basis for the assessment. The assessment roll shall
be filed with the secretary of the governing body of the coastal
municipality or other officer who performs the function of
secretary and be open for public inspection.
Sec. 309.060. INTEREST ON ASSESSMENTS; LIEN. (a) An
assessment, including an assessment resulting from an addition or
correction to the assessment roll, and penalties bear interest at a
rate specified by the governing body of the coastal municipality
that may not exceed the interest rate permitted by Chapter 1204,
Government Code.
(b) Interest on an assessment between the effective date of
the ordinance or resolution levying the assessment and the date the
first installment and any related penalty is payable shall be added
to the first installment. The interest or penalties on all unpaid
installments shall be added to each subsequent installment until
paid.
(c) An assessment or any reassessment and any interest and
penalties on that assessment or reassessment is a first and prior
lien against the property until it is paid. The lien is superior to
any other lien or claim other than a lien or claim for county school
district or municipal ad valorem taxes.
(d) The owner of any property or any business assessed may
at any time pay the entire assessment against any property or
business assessed with accrued interest to the date of the payment.
Sec. 309.061. SUPPLEMENTAL ASSESSMENTS. After notice and
hearing in the manner required for original assessments, the
governing body of the coastal municipality may make supplemental
assessments to correct omissions or mistakes in the assessment:
(1) relating to the total cost of the improvement
project, service, or special event;
(2) to correct omissions of benefited property or
businesses; or
(3) covering delinquencies or costs of collection.
Sec. 309.062. APPEAL. (a) After determination of an
assessment, a property owner or business may appeal the assessment
to the governing body of the coastal municipality. The property
owner must file a notice of appeal with the governing body of the
coastal municipality not later than the 30th day after the date that
the assessment is adopted. The governing body of the coastal
municipality shall set a date to hear the appeal.
(b) The property owner or business owner may appeal the
governing body of the coastal municipality's decision on the
assessment to a court. The property owner must file notice of the
appeal with the court not later than the 30th day after the date of
the governing body of the coastal municipality's final decision
with respect to the assessment.
(c) Failure to file either of the notices in the time
required by this section results in a loss of the right to appeal
the assessment.
(d) If an assessment against a parcel of land or business is
set aside by a court, found excessive by the governing body of the
coastal municipality, or determined to be invalid by the governing
body of the coastal municipality, the governing body of the coastal
municipality may make a reassessment or new assessment of the
parcel or the business.
Sec. 309.063. CERTAIN RESIDENTIAL PROPERTY EXEMPT. The
governing body of the coastal municipality may not impose an
assessment or other requirement for payment, construction,
alteration, or dedication under this chapter on single-family
detached residential property or a residential duplex, triplex, or
fourplex.
Sec. 309.064. GOVERNMENTAL ENTITIES; ASSESSMENTS. A
municipality, county or other political subdivision may pay an
assessment under this chapter as established by contract with the
coastal municipality. The contract with the coastal municipality
may be under terms considered advisable to provide for the payment
of the assessments.
Sec. 309.065. GRANTS AND LOANS AUTHORIZED. A coastal
municipality may apply for and accept federal, state, or private
grants or loans and use the proceeds of assessments levied and
collected under this chapter as the local share to match the award
of any federal, state, or other grant.
[Sections 309.066-309.100 reserved for expansion]
SUBCHAPTER C. BONDS
Sec. 309.101. BONDS. (a) For the payment of all or part of
the costs of an improvement project, the governing body of the
coastal municipality may issue bonds in one or more series payable
from and secured by assessments, revenue, grants, gifts, leases or
other contracts, or any combination of those funds.
(b) Bonds may be liens on all or part of the revenue derived
from improvements authorized under this chapter, including
installment payments of special assessments or from any other
source pledged to their payment.
Sec. 309.102. PLEDGES. (a) The governing body of the
coastal municipality may pledge all or part of the assessments or
income from an improvement project financed under this chapter, or
from any other source, to the payment of the bonds, including the
payment of principal, interest, and any other amounts required or
permitted in connection with the bonds. The pledged income shall be
set and collected in amounts that will be at least sufficient, with
any other pledged resources, to provide for all payments of
principal, interest, and any other amounts required in connection
with the bonds and to the extent required by the ordinance or
resolution authorizing the issuance of the bonds, to provide for
the payment of expenses in connection with the bonds and to pay
operation, maintenance, and other expenses in connection with the
improvement projects authorized under this chapter.
(b) Bonds may be additionally secured by a mortgage or deed
of trust on real property relating to the facilities authorized
under this chapter owned or to be acquired by the coastal
municipality and by chattel mortgages, liens, or security interests
on personal property appurtenant to that real property. The
governing body of the coastal municipality may authorize the
execution of trust indentures, mortgages, deeds of trust, or other
forms of encumbrance to evidence the indebtedness.
(c) The governing body of the coastal municipality may
pledge to the payment of the bonds all or any part of any grant,
donation, revenue, or income received or to be received from the
United States government or any other public or private source.
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.