By: Elkins (Senate Sponsor - West) H.B. No. 1400
         (In the Senate - Received from the House April 18, 2011;
  April 26, 2011, read first time and referred to Committee on
  Intergovernmental Relations; May 19, 2011, reported adversely,
  with favorable Committee Substitute by the following vote:  Yeas 5,
  Nays 0; May 19, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 1400 By:  West
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the boundaries and financing of public improvement
  districts designated by a municipality or county.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 372.003, Local Government Code, is
  amended by adding Subsection (b-1) to read as follows:
         (b-1)  Payment of expenses under Subsection (b)(14) may also
  include expenses related to the operation and maintenance of mass
  transportation facilities.
         SECTION 2.  Subchapter A, Chapter 372, Local Government
  Code, is amended by adding Section 372.0035 to read as follows:
         Sec. 372.0035.  COMMON CHARACTERISTIC OR USE FOR PROJECTS IN
  CERTAIN MUNICIPALITIES. (a)  This section applies only to:
               (1)  a municipality that has a population of more than
  one million and a council-manager form of government and that is
  located wholly or partly in a county with a population of more than
  two million; and
               (2)  a public improvement district established under
  this subchapter and solely composed of territory in which the only
  businesses are hotels with 100 or more rooms ordinarily used for
  sleeping.
         (b)  A municipality may undertake a project that confers a
  special benefit on areas that share a common characteristic or use.
  The areas may be noncontiguous.
         (c)  This section does not prohibit a municipality from or
  limit a municipality to establishing a district that includes a
  noncontiguous area authorized by this subchapter.
         SECTION 3.  Subchapter A, Chapter 372, Local Government
  Code, is amended by adding Section 372.0055 to read as follows:
         Sec. 372.0055.  DEFERRED ASSESSMENT; ESTIMATE. If a
  proposed improvement under Section 372.005 includes a deferred
  assessment, before holding the hearing required by Section 372.009,
  the governing body of the municipality or county must estimate:
               (1)  the appraised value of taxable real property
  liable for assessment in the district; and
               (2)  the cost of the improvement.
         SECTION 4.  Section 372.017(b), Local Government Code, is
  amended to read as follows:
         (b)  After all objections have been heard and the governing
  body has passed on the objections, the governing body by ordinance
  or order shall levy the assessment as a special assessment on the
  property. The governing body by ordinance or order shall specify
  the method of payment of the assessment. The governing body may
  defer an assessment until a date the governing body specifies in the
  ordinance or order. The governing body may provide that assessments
  be paid in periodic installments, at an interest rate and for a
  period approved by the governing body. The provision that
  assessments be paid in periodic installments may, but is not
  required to, result in level annual installment payments. The
  installments must be in amounts necessary to meet annual costs for
  improvements and must continue for:
               (1)  the period necessary to retire the indebtedness on
  the improvements; or
               (2)  the period approved by the governing body for the
  payment of the installments.
         SECTION 5.  Subchapter A, Chapter 372, Local Government
  Code, is amended by adding Section 372.031 to read as follows:
         Sec. 372.031.  FINDINGS PRIOR TO ISSUANCE OF CERTAIN BONDS
  OR OBLIGATIONS.  (a)  Prior to the issuance under this chapter of
  bonds or obligations wholly or partly payable from or secured by
  assessments, the governing body of a municipality with a population
  of 250,000 or less or the governing body of a county with a
  population of 1 million or less issuing the bonds or obligations
  must find and determine the following:
               (1)  construction of all underground water,
  wastewater, and drainage facilities and roadways to serve the real
  property liable for assessments necessary to support the payment of
  the bonds or obligations is at least 95 percent complete; and
               (2)  construction of at least 25 percent of the houses
  or other buildings on the real property liable for assessments and
  necessary to support the bonds or obligations has been completed.
         (b)  Prior to the issuance under this chapter of bonds or
  obligations wholly or partly payable from or secured by
  assessments, a municipality with a population of more than 250,000
  or a county with a population of more than 1 million issuing the
  bonds or obligations must obtain an independent market study from a
  firm recognized in the area of real estate market analysis
  supporting the development projects for the real property liable
  for assessments and necessary to support the payment of the bonds or
  obligations.
         (c)  Subsections (a) and (b) do not apply to general
  obligation bonds or certificates of obligations.
         (d)  The Attorney General shall adopt rules to enforce this
  section and to ensure the integrity and economic feasibility of
  bonds or obligations issued under this chapter.
         SECTION 6.  Section 372.041(a), Local Government Code, is
  amended to read as follows:
         (a)  A home-rule municipality may create improvement
  districts for the purposes of:
               (1)  levying, straightening, widening, enclosing, or
  otherwise improving a river, creek, bayou, stream, other body of
  water, street, or alley;
               (2)  draining, grading, filling, and otherwise
  protecting and improving the territory within the municipality's
  limits; [and]
               (3)  issuing bonds to finance improvements listed in
  this subsection; and
               (4)  financing an improvement described in Subchapter
  A.
         SECTION 7.  This Act takes effect September 1, 2011.
 
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