85R12385 SCL-D

By: Lucio S.B. No. 1670

A BILL TO BE ENTITLED

AN ACT

relating to a historic structure assistance program operated by a municipally owned utility in certain municipalities; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 552, Local Government Code, is amended by adding Subchapter I to read as follows:

SUBCHAPTER I. HISTORIC STRUCTURE ASSISTANCE PROGRAM IN CERTAIN

MUNICIPALITIES

Sec. 552.151. DEFINITIONS. In this subchapter:

(1) "Historic structure" has the meaning assigned by Section 442.001, Government Code.

(2) "Historic structure fee" means a fee charged by a municipally owned utility in accordance with this subchapter for the purpose of maintaining, operating, and renovating the utility systems of certain historic structures.

(3) "Municipally owned utility" means a utility owned, operated, and controlled by a municipality.

(4) "Program" means a historic structure assistance program established under Section 552.158.

Sec. 552.152. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to a municipality:

(1) with a population of 135,000 to 230,000; and

(2) located in a county that is located on the international border.

Sec. 552.153. HISTORIC STRUCTURE FEE. A municipally owned utility may charge a historic structure fee in an amount not to exceed $1 each month for the purpose of maintaining, operating, and renovating the utility systems of certain historic structures under the historic structure assistance program if a majority of municipal voters approve the fee in an election held in accordance with this subchapter.

Sec. 552.154. FEE RESOLUTION; ELECTION ORDER. If a municipally owned utility proposes a historic structure fee, the governing body of a municipality that owns the utility shall:

(1) adopt a resolution that specifies:

(A) the amount of the proposed historic structure fee;

(B) the purpose for which the proposed historic structure fee is charged; and

(C) the date on which the municipally owned utility proposes to begin charging the proposed historic structure fee; and

(2) order an election to approve the historic structure fee.

Sec. 552.155. NOTICE OF ELECTION. (a) The governing body of a municipality shall provide notice of an election for the approval of a proposed historic structure fee by publishing a copy of the resolution and election order described by Section 552.154 once a week for two consecutive weeks in a newspaper with general circulation in the municipality.

(b) The notice must be published not earlier than the 30th day or later than the 10th day before election day.

Sec. 552.156. RESULTS OF FEE ELECTION. (a) If a majority of municipal voters approve a historic structure fee at an election called for that purpose, the municipally owned utility may begin charging the fee on the date specified in the resolution adopted under Section 552.154.

(b) If a majority of municipal voters do not approve a historic structure fee at an election called for that purpose, the municipality may not hold another election on the approval of a historic structure fee before the first anniversary of the date of the election at which the voters did not approve of the fee.

Sec. 552.157. FEE OPT OUT. If a historic structure fee is approved under Section 552.156, a customer of the municipally owned utility may provide written notice to the utility that the customer elects to opt out of paying the fee. On receipt of the notice, the utility may not charge that customer the fee.

Sec. 552.158. HISTORIC STRUCTURE ASSISTANCE PROGRAM. (a) If a historic structure fee is approved under Section 552.156, the municipally owned utility shall establish and operate a historic structure assistance program in accordance with this section. The utility may use the fee only for the purpose of operating the program, and the utility may not use more than 10 percent of the revenue generated by the fee for the purpose of paying the program's administrative costs.

(b) A nonprofit organization or a governmental entity may apply to the municipally owned utility to enter into an agreement under the program. To be eligible, an applicant must own a historic structure that is at least 150 years old and is located within the corporate boundaries of the municipality.

(c) If an applicant is approved for the program, the municipally owned utility and the applicant shall enter into an agreement that allows the utility to provide the applicant financial assistance in accordance with the program for the purpose of promoting the public purpose of preserving historic structures by maintaining, operating, or renovating the utility systems of the structures. The agreement must include provisions under which the municipally owned utility is granted sufficient control to ensure that the public purpose is accomplished and the municipality receives a return benefit.

(d) After entering into an agreement under Subsection (c), the municipally owned utility shall provide financial assistance under the program to the program participant. Money provided under the program may be used only for maintaining, operating, or renovating the utility systems of the participant's historic structure described by Subsection (b). The purposes described by this subsection include:

(1) increasing energy or water efficiency in the historic structure;

(2) promoting energy or water conservation in the historic structure; and

(3) assisting the participant with utility bill payments charged by the utility for the historic structure.

SECTION 2. This Act takes effect September 1, 2017.