S.B. No. 412
 
 
 
 
AN ACT
  relating to payment of costs of improvements of a public
  improvement district designated by a municipality or county.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 372.023, Local Government Code, is
  amended by amending Subsections (a), (d), (e), and (g) and adding
  Subsections (a-1) and (d-1) 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)  a political subdivision or other entity exercising
  the powers granted under this subchapter as authorized by other
  law; or
               (3)  an entity that:
                     (A)  is approved by the governing body of an
  entity described by Subdivision (1) or (2); and
                     (B)  is authorized by order, ordinance,
  resolution, or other official action to act for an entity described
  by Subdivision (1) or (2) [The cost of an improvement made under
  this subchapter must be paid in accordance with this section].
         (a-1)  The payment or reimbursement may be provided before or
  after a method of payment or reimbursement authorized by this
  section is entered into or issued. 
         (d)  Costs [A cost] payable from a special assessment that is
  payable [to be paid] in installments may be paid by any combination
  of the following methods [and a cost payable by the municipality or
  county as a whole but not payable from available general funds or
  other available general improvement funds shall be paid]:
               (1)  under an installment sales [sale] contract or a
  reimbursement agreement between the municipality or county and
  [with] the person who acquires, installs, or constructs the
  improvements [contracts to install or construct the improvement for
  which the costs apply];
               (2)  as provided by a temporary note or time warrant
  issued by the municipality or county and payable to the [reimburse
  a] person who acquires, installs, or constructs the improvements
  [for money advanced or work performed in connection with an
  improvement]; or
               (3)  by the issuance and sale of [revenue or general
  obligation] bonds under Section 372.024.
         (d-1)  An installment sales contract, reimbursement
  agreement, temporary note, or time warrant described by Subsection
  (d) may be assigned by the payee without the consent of the
  municipality or county.
         (e)  The [net effective] interest rate[, as computed for a
  public security under Section 1204.005, Government Code,] on unpaid
  amounts due under an installment sales contract, reimbursement
  agreement, temporary note, or time warrant described by [money owed
  or paid under] Subsection (d):
               (1)  may not exceed, for a period of not more than five
  years, as determined by the governing body of the municipality or
  county, five [one-half of one] percent above the highest average
  index [interest] rate for tax-exempt bonds reported in a daily or
  [by a newspaper in a] 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) [of the contract or agreement or the issuance of the
  bond, temporary note, or time warrant.   The newspaper must
  specialize in bonds and be acceptable as a reliable source for bond
  interest rates to the governing body of the municipality or county
  that enters into the contract or agreement or that issues the bond,
  temporary note, or time warrant].
         (g)  The cost of more than one improvement may be paid:
               (1)  from a single issue and sale of bonds without other
  consolidation proceedings before the bond issue; or
               (2)  under a single installment sales contract,
  reimbursement agreement, temporary note, or time warrant [an
  agreement with a person who contracts to install or construct the
  improvement and who sells the improvement to the municipality or
  county].
         SECTION 2.  Subsection (f), Section 372.023, Local
  Government Code, is repealed.
         SECTION 3.  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, 2011.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 412 passed the Senate on
  April 14, 2011, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 412 passed the House on
  May 19, 2011, by the following vote:  Yeas 147, Nays 1, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor