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A BILL TO BE ENTITLED
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AN ACT
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relating to payment of costs of improvements of a public |
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improvement district designated by a municipality or county. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 372.023, Local Government Code, is |
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amended by amending Subsections (a), (d), (e), and (g) and adding |
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Subsections (a-1) and (d-1) to read as follows: |
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(a) Costs of improvements may be paid or reimbursed by any |
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combination of the methods described by this section if the |
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improvements are dedicated, conveyed, leased, or otherwise |
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provided to or for the benefit of: |
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(1) a municipality or county; |
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(2) a political subdivision or other entity exercising |
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the powers granted under this subchapter as authorized by other |
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law; or |
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(3) an entity that: |
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(A) is approved by the governing body of an |
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entity described by Subdivision (1) or (2); and |
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(B) is authorized by order, ordinance, |
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resolution, or other official action to act for an entity described |
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by Subdivision (1) or (2) [The cost of an improvement made under
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this subchapter must be paid in accordance with this section]. |
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(a-1) The payment or reimbursement may be provided before or |
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after a method of payment or reimbursement authorized by this |
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section is entered into or issued. |
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(d) Costs [A cost] payable from a special assessment that is |
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payable [to be paid] in installments may be paid by any combination |
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of the following methods [and a cost payable by the municipality or
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county as a whole but not payable from available general funds or
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other available general improvement funds shall be paid]: |
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(1) under an installment sales [sale] contract or a |
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reimbursement agreement between the municipality or county and |
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[with] the person who acquires, installs, or constructs the |
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improvements [contracts to install or construct the improvement for
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which the costs apply]; |
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(2) as provided by a temporary note or time warrant |
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issued by the municipality or county and payable to the [reimburse
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a] person who acquires, installs, or constructs the improvements |
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[for money advanced or work performed in connection with an
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improvement]; or |
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(3) by the issuance and sale of [revenue or general
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obligation] bonds under Section 372.024. |
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(d-1) An installment sales contract, reimbursement |
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agreement, temporary note, or time warrant described by Subsection |
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(d) may be assigned by the payee without the consent of the |
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municipality or county. |
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(e) The [net effective] interest rate[, as computed for a
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public security under Section 1204.005, Government Code,] on unpaid |
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amounts due under an installment sales contract, reimbursement |
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agreement, temporary note, or time warrant described by [money owed
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or paid under] Subsection (d): |
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(1) may not exceed, for a period of not more than five |
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years, as determined by the governing body of the municipality or |
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county, five [one-half of one] percent above the highest average |
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index [interest] rate for tax-exempt bonds reported in a daily or |
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[by a newspaper in a] weekly bond index approved by the governing |
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body and reported in the month before the date the obligation was |
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incurred; and |
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(2) after the period described by Subdivision (1), may |
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not exceed two percent above the bond index rate described by |
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Subdivision (1) [of the contract or agreement or the issuance of the
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bond, temporary note, or time warrant.
The newspaper must
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specialize in bonds and be acceptable as a reliable source for bond
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interest rates to the governing body of the municipality or county
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that enters into the contract or agreement or that issues the bond,
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temporary note, or time warrant]. |
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(g) The cost of more than one improvement may be paid: |
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(1) from a single issue and sale of bonds without other |
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consolidation proceedings before the bond issue; or |
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(2) under a single installment sales contract, |
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reimbursement agreement, temporary note, or time warrant [an
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agreement with a person who contracts to install or construct the
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improvement and who sells the improvement to the municipality or
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county]. |
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SECTION 2. Section 372.023(f), Local Government Code, is |
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repealed. |
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SECTION 3. 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, 2011. |