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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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No
equivalent provision.
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SECTION 1. Subchapter C,
Chapter 262, Local Government Code, is amended by adding Section 262.0242
to read as follows:
Sec. 262.0242. MANDATORY
EXEMPTIONS: PUBLIC IMPROVEMENTS PARTIALLY FUNDED BY SPECIAL ASSESSMENTS.
The competitive bidding and competitive proposal procedures prescribed by
this subchapter do not apply to contracts relating to a public improvement,
including paving, drainage, or street widening, and matters related to the
public improvement if at least one-third of the cost of the public
improvement is to be paid by or through special assessments levied on
property that will benefit from the improvement.
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SECTION 1. Sections
372.003(b), (b-1), and (c), Local Government Code, are amended to read as
follows:
(b) A public improvement
project may include:
(1) landscaping;
(2) erection of fountains,
distinctive lighting, and signs;
(3) acquiring, constructing,
improving, widening, narrowing, closing, or rerouting of sidewalks or of
streets, any other roadways, or their rights-of-way;
(4) construction or
improvement of pedestrian malls;
(5) acquisition and
installation of pieces of art;
(6) acquisition,
construction, or improvement of libraries;
(7) acquisition,
construction, or improvement of off-street parking facilities;
(8) acquisition,
construction, improvement, or rerouting of mass transportation facilities;
(9) acquisition,
construction, or improvement of water, wastewater, or drainage facilities
or improvements;
(10) the establishment or
improvement of parks and recreational facilities;
(11)
acquisition, construction, or improvement of a facility related to the generation
of renewable energy from wind, solar, geothermal, or other renewable
sources of energy;
(12) acquisition,
construction, or improvement of a facility related to a water feature,
including a recreational lagoon or artificial body of water used for:
(A) aesthetic purposes;
or
(B) swimming, boating, or
other aquatic recreational sports or activities;
(13) projects similar
to those listed in Subdivisions (1)-(12) [(1)-(10)];
(14) [(12)]
acquisition, by purchase or otherwise, of real property, including a
right-of-way, in connection with an authorized improvement;
(15) [(13)]
special supplemental services for improvement and promotion of the
district, including services relating to advertising, promotion, health and
sanitation, water and wastewater, public safety, security, business
recruitment, development, recreation, and cultural enhancement;
(16) [(14)]
payment of expenses incurred in the establishment, administration, and
operation of the district; and
(17) [(15)]
the development, rehabilitation, or expansion of affordable housing.
(b-1) Payment of expenses
under Subsection (b)(16) [(b)(14)] may also include expenses
related to the operation and maintenance of a public improvement project
[mass transportation facilities].
(c) A public improvement
project may be limited to the provision of the services described by
Subsection (b)(15) [(b)(13)].
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SECTION 2. Sections
372.003(b), (b-1), and (c), Local Government Code, are amended to read as follows:
(b) A public improvement
project may include:
(1) landscaping;
(2) erection of fountains,
distinctive lighting, and signs;
(3) acquiring, constructing,
improving, widening, narrowing, closing, or rerouting of sidewalks or of
streets, any other roadways, or their rights-of-way;
(4) construction or
improvement of pedestrian malls;
(5) acquisition and
installation of pieces of art;
(6) acquisition,
construction, or improvement of libraries;
(7) acquisition,
construction, or improvement of off-street parking facilities;
(8) acquisition,
construction, improvement, or rerouting of mass transportation facilities;
(9) acquisition,
construction, or improvement of water, wastewater, or drainage facilities
or improvements;
(10) the establishment or improvement
of parks and recreational facilities;
(11) acquisition,
construction, or improvement of a facility related to a water feature,
including a recreational lagoon or artificial body of water used for:
(A) aesthetic purposes;
or
(B) swimming, boating, or
other aquatic recreational sports or activities;
(12) projects similar
to those listed in Subdivisions (1)-(11) [(1)-(10)];
(13) [(12)]
acquisition, by purchase or otherwise, of real property, including a
right-of-way, in connection with an authorized improvement;
(14) [(13)]
special supplemental services for improvement and promotion of the
district, including services relating to advertising, promotion, health and
sanitation, water and wastewater, public safety, security, business
recruitment, development, recreation, and cultural enhancement;
(15) [(14)]
payment of expenses incurred in the establishment, administration, and
operation of the district; and
(16) [(15)]
the development, rehabilitation, or expansion of affordable housing.
(b-1) Payment of expenses
under Subsection (b)(15) [(b)(14)] may also include expenses
related to the operation and maintenance of a public improvement project
[mass transportation facilities].
(c) A public improvement
project may be limited to the provision of the services described by
Subsection (b)(14) [(b)(13)].
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SECTION 2. Section
372.010(c), Local Government Code, is amended.
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SECTION 3. Same as introduced
version.
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SECTION 3. Sections 372.012,
372.019, and 372.020, Local Government Code, are amended to read as
follows:
Sec. 372.012. AREA OF
DISTRICT; INCREASE OF AREA. (a) The area of a public
improvement district to be assessed according to the findings of the
governing body of the municipality or county may be less than the area
described in the proposed boundaries stated by the notice under Section
372.009. The area to be assessed may not include property not described by
the notice as being within the proposed boundaries of the district unless a
hearing is held to include the property and notice for the hearing is given
in the same manner as notice under Section 372.009.
(b) The governing body of
the municipality or county may call and hold a public hearing in the same
manner as a hearing under Section 372.009 for the purpose of increasing the
area of a public improvement district if a petition requesting the increase
is filed as provided by Section 372.005.
After the hearing, the governing body may by ordinance or order increase
the area of the district in accordance with the increase proposed in the
hearing.
(c) If the governing body
of the municipality or county increases the area of a public improvement
district under Subsection (b) and the governing body has levied an
assessment on property in the district before the increase, the governing
body may:
(1) make a supplemental
assessment under Section 372.019; or
(2) reapportion the
existing assessment in a manner consistent with Section 372.015 after
notice is given and a hearing is held in the same manner as required by
Sections 372.016 and 372.017.
Sec. 372.019. SUPPLEMENTAL
ASSESSMENTS. (a) After notice and a hearing in accordance with
Subsection (b), the governing body of the municipality or county may
make supplemental assessments to:
(1) correct omissions
or mistakes in the assessment relating to the total cost of the improvement;
or
(2) levy an assessment on
property added to the public improvement district under Section 372.012.
(b) Notice must be
given and the hearing held under this section in the same manner as
required by Sections 372.016 and 372.017.
Sec. 372.020. REASSESSMENT.
(a) The governing body of the municipality or county may make a
reassessment or new assessment of a parcel of land if:
(1) a court of competent
jurisdiction sets aside an assessment against the parcel;
(2) the governing body
determines that the original assessment is excessive; [or]
(3) on the written advice of
counsel, the governing body determines that the original assessment is
invalid; or
(4) the governing body
increases the area of the public improvement district under Section 372.012.
(b) The governing body of the municipality or county may only
make a reassessment or new assessment under Subsection (a)(4) for the
purpose of reducing the overall principal amount of a prior assessment.
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SECTION 4. Sections 372.012,
372.019, and 372.020, Local Government Code, are amended to read as
follows:
Sec. 372.012. AREA OF
DISTRICT; INCREASE OF AREA. (a) The area of a public
improvement district to be assessed according to the findings of the
governing body of the municipality or county may be less than the area
described in the proposed boundaries stated by the notice under Section
372.009. The area to be assessed may not include property not described by
the notice as being within the proposed boundaries of the district unless a
hearing is held to include the property and notice for the hearing is given
in the same manner as notice under Section 372.009.
(b) The governing body of
the municipality or county may call and hold a public hearing in the same
manner as a hearing under Section 372.009 for the purpose of increasing the
area of a public improvement district if a petition requesting the increase
is filed by the owners of property to be
added to the district in the manner provided by Section 372.005, considering
only the area to be added for the purposes of Sections 372.005(b) and (b-1). After
the hearing, the governing body may by ordinance or order increase the area
of the district in accordance with the increase proposed in the hearing.
(c) If the governing body
of the municipality or county increases the area of a public improvement
district under Subsection (b) and the governing body has levied an
assessment on property in the district before the increase, the governing
body may:
(1) make a supplemental
assessment under Section 372.019; or
(2) reapportion the
existing assessment in a manner consistent with Section 372.015 after
notice is given and a hearing is held in the same manner as required by
Sections 372.016 and 372.017.
Sec. 372.019. SUPPLEMENTAL
ASSESSMENTS. (a) After notice and a hearing in accordance with
Subsection (b), the governing body of the municipality or county may
make supplemental assessments to:
(1) correct omissions
or mistakes in the assessment relating to the total cost of the improvement;
or
(2) levy an assessment on
property added to the public improvement district under Section 372.012.
(b) Notice must be
given and the hearing held under this section in the same manner as
required by Sections 372.016 and 372.017.
Sec. 372.020. REASSESSMENT.
The governing body of the municipality or county may make a reassessment or
new assessment of a parcel of land if:
(1) a court of competent
jurisdiction sets aside an assessment against the parcel;
(2) the governing body
determines that the original assessment is excessive; [or]
(3) on the written advice of
counsel, the governing body determines that the original assessment is
invalid; or
(4) the governing body
increases the area of the public improvement district under Section 372.012.
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SECTION 4. Section
372.021(c), Local Government Code, is amended.
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SECTION 5. Same as introduced
version.
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SECTION 5. Section 372.022,
Local Government Code, is amended.
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SECTION 6. Same as introduced
version.
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SECTION 6. Subchapter A,
Chapter 372, Local Government Code, is amended by adding Section 372.0225
to read as follows:
Sec. 372.0225. TRANSFER
OF PROJECT FOR OPERATION AND MAINTENANCE. The governing body of the
municipality or county may transfer a public improvement project, for the
purpose of operation and maintenance of the project for the benefit of the
municipality or county, to:
(1) an entity created or
operating under Section 52(b)(1) or (2), Article III, or Section 59,
Article XVI, Texas Constitution;
(2) a district created
and operating under Chapter 65, Water Code; or
(3) an entity regulated
by the Public Utility Commission of Texas.
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No
equivalent provision. (But see SECTION 7 below.)
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SECTION 7. Section
372.023(e), Local Government Code, is amended to read as follows:
(See SECTION 6 above.)
(e) The interest rate on
unpaid amounts due under an installment sales contract, reimbursement
agreement, temporary note, or time warrant described by Subsection (d):
(1) may not exceed, for a
period of not more than seven [five] years, as determined by
the governing body of the municipality or county, five percent above the
highest average index rate for tax-exempt revenue bonds reported in
a daily or weekly bond index approved by the governing body and reported in
the month before the date the obligation was incurred; and
(2) after the period
described by Subdivision (1), may not exceed two percent above the bond
index rate described by Subdivision (1).
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SECTION 7. Sections
372.023(a) and (e), Local Government Code, are amended to read as follows:
(a)
Costs of improvements may be paid or reimbursed by any combination of the
methods described by this section if the improvements are dedicated,
conveyed, leased, or otherwise provided to or for the benefit of:
(1)
a municipality or county;
(2)
this state, a political subdivision of this state, or other
entity exercising the powers granted under this subchapter as authorized by
other law; [or]
(3)
an entity created or operating under Section 52(b)(1) or (2), Article
III, or Section 59, Article XVI, Texas Constitution;
(4) a district created and operating under Chapter 65, Water
Code;
(5) an entity otherwise authorized under the laws of this state
to own the improvements, operate the improvements, and, as applicable,
provide services using the improvements; or
(6) an entity
that:
(A)
is approved by the governing body of an entity described by Subdivision (1),
[or] (2), (3), (4), or
(5); and
(B)
is authorized by order, ordinance, resolution, or other official action to
act for an entity described by Subdivision (1), [or] (2),
(3), (4), or (5).
(e) The interest rate on
unpaid amounts due under an installment sales contract, reimbursement
agreement, temporary note, or time warrant described by Subsection (d):
(1) may not exceed, for a
period of not more than seven [five] years, as determined by
the governing body of the municipality or county, five percent above the
highest average index rate for tax-exempt revenue bonds reported in
a daily or weekly bond index approved by the governing body and reported in
the month before the date the obligation was incurred; and
(2) after the period
described by Subdivision (1), may not exceed two percent above the bond
index rate described by Subdivision (1).
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SECTION 8. Section 372.026,
Local Government Code, is amended by amending Subsections (a), (b), and (f)
and adding Subsection (g) to read as follows:
(a) In this section,
"obligation" means bonds, temporary notes, time warrants, or an
obligation under:
(1) an installment
sale contract or reimbursement agreement; or
(2) an agreement entered
into under Subsection (f).
(b) For the payment of
obligations issued or agreed to under this subchapter and the payment of
principal, interest, and any other amounts required or permitted in
connection with the obligations, the governing body of the municipality or
county may pledge:
(1) all or part of
the income from improvements financed under this subchapter, including
income received in installment payments under Section 372.023; or
(2) for a municipality, undedicated tax increment revenue
generated from ad valorem and sales taxes imposed in a reinvestment zone:
(A) designated by the
municipality under Chapter 311, Tax Code; and
(B) located wholly or
partly within the boundaries of the public improvement district.
(f) The governing body may
enter into an agreement with an entity described by Subsection (g) [a
corporation created by the municipality or county under the Texas
Constitution or other law] that provides for payment of amounts pledged
under this section to the entity [corporation] to secure
indebtedness issued by the entity [corporation] to finance an
improvement project, including indebtedness to pay capitalized interest and
a reserve fund permitted by this subchapter for revenue or general
obligation bonds issued under this subchapter and indebtedness issued to
pay the entity's [corporation's] costs of issuance. In
addition, the agreement may [provide that]:
(1) for an agreement with
a corporation, provide that the corporation is responsible for managing
the district; or
(2) designate the entity
that will hold title to the [one or more] improvements under
the agreement, which may include an entity described by Section 372.0225 [will be held
by the corporation].
(g) The governing body of
the municipality or county may enter into an agreement described by
Subsection (f) only with:
(1) a corporation created
by the municipality or county
under the Texas Constitution or other law;
(2) a corporation created
under Subchapter D, Chapter 431, Transportation Code; or
(3) a political subdivision
or instrumentality created and authorized to issue bonds secured by pledged
revenue from a municipality or county.
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SECTION 8. Section 372.026,
Local Government Code, is amended by amending Subsections (a), (b), and (f)
and adding Subsection (g) to read as follows:
(a) In this section,
"obligation" means bonds, temporary notes, time warrants, or an
obligation under:
(1) an installment
sale contract or reimbursement agreement; or
(2) an agreement entered
into under Subsection (f).
(b) For the payment of
obligations issued or agreed to under this subchapter and the payment of
principal, interest, and any other amounts required or permitted in
connection with the obligations, the governing body of the municipality or
county may pledge:
(1) all or part of
the income from improvements financed under this subchapter, including
income received in installment payments under Section 372.023; or
(2) for a municipality,
tax increment revenue generated from ad valorem and sales taxes imposed in
a reinvestment zone:
(A) designated by the
municipality under Chapter 311, Tax Code; and
(B) located wholly or
partly within the boundaries of the public improvement district.
(f) The governing body may
enter into an agreement with an entity described by Subsection (g) [a
corporation created by the municipality or county under the Texas
Constitution or other law] that provides for payment of amounts pledged
under this section to the entity [corporation] to secure
indebtedness issued by the entity [corporation] to finance an
improvement project, including indebtedness to pay capitalized interest and
a reserve fund permitted by this subchapter for revenue or general
obligation bonds issued under this subchapter and indebtedness issued to
pay the entity's [corporation's] costs of issuance. In
addition, the agreement may [provide that]:
(1) for an agreement with
a corporation, provide that the corporation is responsible for managing
the district; or
(2) designate the entity
that will hold title to the [one or more] improvements under
the agreement, which may include an entity described by Section 372.023(a) [will be held
by the corporation].
(g) The governing body of
the municipality or county may enter into an agreement described by
Subsection (f) only with:
(1) a corporation created
by a municipality or county under
the Texas Constitution or other law;
(2) a corporation created
under Subchapter D, Chapter 431, Transportation Code; or
(3) a political
subdivision, instrumentality, or entity
created and authorized to issue bonds secured by pledged revenue from a
municipality or county.
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SECTION 9. Section
372.027(a), Local Government Code, is amended.
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SECTION 9. Same as introduced
version.
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SECTION 10. Section
372.152(a), Local Government Code, is amended to read as follows:
(a) The governing body of a municipality or county may issue and
sell general obligation bonds or revenue bonds to reimburse a
developer for the cost of a public improvement if:
(1) the public improvement
is located in a public improvement district created on or after January 1,
2005;
(2) the public improvement is
[has been] dedicated to and accepted by the municipality, [or]
county, or entity to which the
improvement will be transferred under Section 372.0225; and
(3) before the public
improvement was dedicated to and accepted by the municipality or county,
the governing body of the municipality or county entered into an agreement
with the developer to pay for the public improvement.
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SECTION 10. Section
372.152(a), Local Government Code, is amended to read as follows:
(a) General [The governing body of a municipality or
county may issue and sell general] obligation bonds or revenue
bonds to reimburse a developer for the cost of a public improvement may be issued and sold in accordance with this
chapter if:
(1) the public improvement
is located in a public improvement district created on or after January 1,
2005;
(2) the public improvement is
[has been] dedicated to and accepted by the municipality, [or]
county, or entity designated to
receive the improvement under Section 372.023(a); and
(3) before the public
improvement was dedicated to and accepted by the municipality or county,
the governing body of the municipality or county entered into an agreement
with the developer to pay for the public improvement.
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SECTION 11. Section
5.014(a), Property Code, is amended.
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SECTION 11. Substantially the
same as introduced version.
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SECTION 12. 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, 2017.
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SECTION 12. Same as
introduced version.
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