By: Villarreal H.B. No. 1937
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the voluntary assessment of property owners by a
  municipality to finance certain energy conservation improvements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle A, Title 12, Local Government Code, is
  amended by adding Chapter 376 to read as follows:
  CHAPTER 376. CONTRACTUAL ASSESSMENTS FOR ENERGY EFFICIENCY
  IMPROVEMENTS
         Sec. 376.001.  AUTHORIZED FINANCING. An assessment under
  this chapter may finance:
               (1)  energy efficiency public improvements to
  developed lots for which the costs and time delays of creating an
  entity under law to assess the lot would be prohibitively large
  relative to the cost of the energy efficiency public improvement to
  be financed; and
               (2)  the installation of distributed generation
  renewable energy sources or energy efficiency improvements that are
  permanently fixed to residential, commercial, industrial, or other
  real property.
         Sec. 376.002.  CERTAIN FINANCING PROHIBITED. An assessment
  under this chapter may not be used to finance:
               (1)  facilities for undeveloped lots or lots undergoing
  development at the time of the assessment; or
               (2)  the purchase or installation of appliances not
  permanently fixed to real property.
         Sec. 376.003.  CONSENT FOR ASSESSMENT REQUIRED. A
  municipality may impose an assessment under this chapter only with
  the consent of the owner of the assessed property at the time of the
  assessment.
         Sec. 376.004.  DESIGNATION OF AREA FOR ASSESSMENT. (a) The
  governing body of a municipality may determine that it is
  convenient and advantageous to designate an area of the
  municipality within which authorized municipal officials and
  property owners may enter into contracts to assess properties for
  energy efficiency public improvements described by Section
  376.001(1) and make financing arrangements under this chapter.
         (b)  The governing body of a municipality may determine that
  it is convenient, advantageous, and in the public interest to
  designate an area of the municipality within which authorized
  municipal officials and property owners may enter into contracts to
  assess properties to finance the installation of distributed
  generation renewable energy sources or energy efficiency
  improvements that are permanently fixed to real property.
         (c)  An area designated by the governing body of a
  municipality under this section may include the entire
  municipality.
         Sec. 376.005.  RESOLUTION OF INTENTION TO CONTRACT FOR
  ASSESSMENT. (a) To make a determination under Section 376.004, the
  governing body of a municipality must adopt a resolution indicating
  the governing body's intention to designate an area for assessment.
         (b)  The resolution of intention must:
               (1)  include a statement that the municipality proposes
  to make contractual assessment financing available to property
  owners;
               (2)  identify the types of energy efficiency public
  improvements, distributed generation renewable energy resources,
  or energy efficiency improvements that may be financed;
               (3)  describe the boundaries of the area in which
  contracts for assessments may be entered into;
               (4)  briefly describe the proposed arrangements for
  financing the program; and
               (5)  state the time and place for a public hearing and
  that interested persons may object to or inquire about the proposed
  program at the hearing.
         (c)  If contractual assessments are to be used to finance the
  installation of distributed generation renewable energy sources or
  energy efficiency improvements that are permanently fixed to real
  property, the resolution of intention must state that it is in the
  public interest to do so.
         (d)  The resolution shall direct an appropriate municipal
  official to:
               (1)  prepare a report under Section 376.006; and
               (2)  consult with the appropriate appraisal district or
  districts regarding collecting the proposed contractual
  assessments with property taxes imposed on the assessed property.
         Sec. 376.006.  REPORT REGARDING ASSESSMENT.  An appropriate
  municipal official designated in the resolution shall prepare a
  report containing:
               (1)  a map showing the boundaries of the area within
  which contractual assessments are proposed to be offered;
               (2)  a draft contract specifying the terms that would
  be agreed to by the municipality and a property owner within the
  contractual assessment area;
               (3)  a statement of municipal policies concerning
  contractual assessments including:
                     (A)  identification of types of energy efficiency
  public improvements, distributed generation renewable energy
  sources, or energy efficiency improvements that may be financed
  through the use of contractual assessments;
                     (B)  identification of a municipal official
  authorized to enter into contractual assessments on behalf of the
  municipality;
                     (C)  a maximum aggregate dollar amount of
  contractual assessments; and
                     (D)  a method for ranking requests from property
  owners for financing through contractual assessments in priority
  order if requests appear likely to exceed the authorization amount;
               (4)  a plan for raising a capital amount required to pay
  for work performed in accordance with contractual assessments that:
                     (A)  may include:
                           (i)  amounts to be advanced by the
  municipality through funds available to it from any source; and
                           (ii)  the sale of bonds or other financing;
                     (B)  shall include a statement of or method for
  determining the interest rate and period during which contracting
  property owners would pay any assessment; and
                     (C)  shall provide for:
                           (i)  any reserve fund or funds; and
                           (ii)  the apportionment of all or any
  portion of the costs incidental to financing, administration, and
  collection of the contractual assessment program among the
  consenting property owners and the municipality; and
               (5)  the results of the consultations with the
  appropriate appraisal districts concerning incorporating the
  proposed contractual assessments into the assessments of property
  taxes.
         Sec. 376.007.  DIRECT PURCHASE BY OWNER.  On the written
  consent of an authorized municipal official, the proposed
  arrangements for financing the program pertaining to the
  installation of distributed generation renewable energy sources or
  energy efficiency improvements that are permanently fixed to real
  property may authorize the property owner to:
               (1)  purchase directly the related equipment and
  materials for the installation of the distributed generation
  renewable energy sources or energy efficiency improvements; and
               (2)  contract directly for the installation of the
  distributed generation renewable energy sources or energy
  efficiency improvements.
         Sec. 376.008.  LIEN. An assessment imposed under this
  chapter and any interest or penalties on the assessment constitutes
  a lien against the lot on which the assessment is imposed until the
  assessment, interest, or penalty is paid.
         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, 2009.