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A BILL TO BE ENTITLED
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AN ACT
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relating to the voluntary assessment of property owners by a |
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municipality to finance certain energy conservation improvements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 12, Local Government Code, is |
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amended by adding Chapter 376 to read as follows: |
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CHAPTER 376. CONTRACTUAL ASSESSMENTS FOR ENERGY EFFICIENCY |
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IMPROVEMENTS |
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Sec. 376.001. AUTHORIZED FINANCING. An assessment under |
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this chapter may finance: |
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(1) energy efficiency public improvements to |
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developed lots for which the costs and time delays of creating an |
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entity under law to assess the lot would be prohibitively large |
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relative to the cost of the energy efficiency public improvement to |
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be financed; and |
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(2) the installation of distributed generation |
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renewable energy sources or energy efficiency improvements that are |
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permanently fixed to residential, commercial, industrial, or other |
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real property. |
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Sec. 376.002. CERTAIN FINANCING PROHIBITED. An assessment |
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under this chapter may not be used to finance: |
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(1) facilities for undeveloped lots or lots undergoing |
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development at the time of the assessment; or |
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(2) the purchase or installation of appliances not |
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permanently fixed to real property. |
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Sec. 376.003. CONSENT FOR ASSESSMENT REQUIRED. A |
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municipality may impose an assessment under this chapter only with |
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the consent of the owner of the assessed property at the time of the |
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assessment. |
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Sec. 376.004. DESIGNATION OF AREA FOR ASSESSMENT. (a) The |
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governing body of a municipality may determine that it is |
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convenient and advantageous to designate an area of the |
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municipality within which authorized municipal officials and |
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property owners may enter into contracts to assess properties for |
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energy efficiency public improvements described by Section |
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376.001(1) and make financing arrangements under this chapter. |
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(b) The governing body of a municipality may determine that |
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it is convenient, advantageous, and in the public interest to |
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designate an area of the municipality within which authorized |
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municipal officials and property owners may enter into contracts to |
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assess properties to finance the installation of distributed |
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generation renewable energy sources or energy efficiency |
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improvements that are permanently fixed to real property. |
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(c) An area designated by the governing body of a |
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municipality under this section may include the entire |
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municipality. |
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Sec. 376.005. RESOLUTION OF INTENTION TO CONTRACT FOR |
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ASSESSMENT. (a) To make a determination under Section 376.004, the |
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governing body of a municipality must adopt a resolution indicating |
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the governing body's intention to designate an area for assessment. |
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(b) The resolution of intention must: |
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(1) include a statement that the municipality proposes |
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to make contractual assessment financing available to property |
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owners; |
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(2) identify the types of energy efficiency public |
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improvements, distributed generation renewable energy resources, |
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or energy efficiency improvements that may be financed; |
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(3) describe the boundaries of the area in which |
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contracts for assessments may be entered into; |
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(4) thoroughly describe the proposed arrangements for |
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financing the program; and |
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(5) state the time and place for a public hearing and |
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that interested persons may object to or inquire about the proposed |
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program at the hearing. |
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(c) If contractual assessments are to be used to finance the |
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installation of distributed generation renewable energy sources or |
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energy efficiency improvements that are permanently fixed to real |
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property, the resolution of intention must state that it is in the |
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public interest to do so. |
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(d) The resolution shall direct an appropriate municipal |
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official to: |
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(1) prepare a report under Section 376.006; and |
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(2) consult with the appropriate appraisal district or |
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districts regarding collecting the proposed contractual |
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assessments with property taxes imposed on the assessed property. |
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Sec. 376.006. REPORT REGARDING ASSESSMENT. An appropriate |
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municipal official designated in the resolution shall prepare a |
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report containing: |
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(1) a map showing the boundaries of the area within |
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which contractual assessments are proposed to be offered; |
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(2) a draft contract specifying the terms that would |
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be agreed to by the municipality and a property owner within the |
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contractual assessment area; |
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(3) a statement of municipal policies concerning |
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contractual assessments including: |
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(A) identification of types of energy efficiency |
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public improvements, distributed generation renewable energy |
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sources, or energy efficiency improvements that may be financed |
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through the use of contractual assessments; |
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(B) identification of a municipal official |
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authorized to enter into contractual assessments on behalf of the |
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municipality; |
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(C) a maximum aggregate dollar amount of |
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contractual assessments; |
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(D) a method for ranking requests from property |
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owners for financing through contractual assessments in priority |
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order if requests appear likely to exceed the authorization amount; |
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and |
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(E) a method for ensuring that property owners |
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requesting financing demonstrate the financial ability to fulfill |
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financial obligations under the contractual assessments; |
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(4) a plan for raising a capital amount required to pay |
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for work performed in accordance with contractual assessments that: |
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(A) may include: |
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(i) amounts to be advanced by the |
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municipality through funds available to it from any source; and |
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(ii) the sale of bonds or other financing; |
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(B) shall include a statement of or method for |
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determining the interest rate and period during which contracting |
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property owners would pay any assessment; and |
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(C) shall provide for: |
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(i) any reserve fund or funds; and |
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(ii) the apportionment of all or any |
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portion of the costs incidental to financing, administration, and |
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collection of the contractual assessment program among the |
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consenting property owners and the municipality; and |
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(5) the results of the consultations with the |
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appropriate appraisal districts concerning incorporating the |
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proposed contractual assessments into the assessments of property |
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taxes. |
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Sec. 376.007. DIRECT PURCHASE BY OWNER. On the written |
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consent of an authorized municipal official, the proposed |
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arrangements for financing the program pertaining to the |
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installation of distributed generation renewable energy sources or |
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energy efficiency improvements that are permanently fixed to real |
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property may authorize the property owner to: |
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(1) purchase directly the related equipment and |
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materials for the installation of the distributed generation |
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renewable energy sources or energy efficiency improvements; and |
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(2) contract directly for the installation of the |
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distributed generation renewable energy sources or energy |
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efficiency improvements. |
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Sec. 376.008. LIEN. An assessment imposed under this |
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chapter and any interest or penalties on the assessment constitutes |
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a lien against the lot on which the assessment is imposed until the |
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assessment, interest, or penalty is paid. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |