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AN ACT
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relating to assessments for water and energy improvements in |
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municipalities and counties; changing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 399.003, Local Government Code, is |
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amended to read as follows: |
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Sec. 399.003. EXERCISE OF POWERS. (a) In addition to the |
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authority provided by Chapter 376 for municipalities, the governing |
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body of a local government that establishes a program in accordance |
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with the requirements provided by Section 399.008 may exercise |
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powers granted under this chapter. |
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(b) The establishment and operation of a program under this |
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chapter by a local government is a governmental function for all |
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purposes. |
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SECTION 2. Sections 399.006(b) and (c), Local Government |
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Code, are amended to read as follows: |
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(b) An authorized representative [official] of the local |
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government that establishes a program may enter into a written |
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contract with a record owner of real property in a region designated |
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under this chapter to impose an assessment to repay the owner's |
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financing of a qualified project on the owner's property. The |
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financing to be repaid through assessments may be provided by a |
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third party or, if authorized by the program, by the local |
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government. |
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(c) If the program provides for third-party financing, the |
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authorized representative [official] of the local government that |
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enters into a written contract with a property owner under |
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Subsection (b) must also enter into a written contract with the |
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party that provides financing for a qualified project under the |
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program to service the debt through assessments. |
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SECTION 3. Section 399.007(a), Local Government Code, is |
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amended to read as follows: |
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(a) The governing body of a local government may determine |
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that it is convenient and advantageous to designate an area of the |
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local government as a region within which the authorized |
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representative of the local government [officials] and record |
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owners of real property may enter into written contracts to impose |
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assessments to repay the financing by owners of qualified projects |
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on the owners' property and, if authorized by the local government |
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program, finance the qualified project. |
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SECTION 4. Sections 399.008(a) and (e), Local Government |
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Code, are amended to read as follows: |
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(a) To establish a program under this chapter, the governing |
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body of a local government must take the following actions in the |
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following order: |
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(1) adopt a resolution of intent that includes: |
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(A) a finding that, if appropriate, financing |
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qualified projects through contractual assessments is a valid |
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public purpose; |
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(B) a statement that the local government intends |
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to make contractual assessments to repay financing for qualified |
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projects available to property owners; |
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(C) a description of the types of qualified |
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projects that may be subject to contractual assessments; |
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(D) a description of the boundaries of the |
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region; |
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(E) a description of any proposed arrangements |
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for third-party financing to be available or any local government |
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financing to be provided for qualified projects; |
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(F) a description of local government debt |
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servicing procedures if third-party financing will be provided and |
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assessments will be collected to service a third-party debt; |
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(G) a reference to the report on the proposed |
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program prepared as provided by Section 399.009 and a statement |
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identifying the location where the report is available for public |
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inspection; |
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(H) a statement of the time and place for a public |
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hearing on the proposed program; and |
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(I) a statement identifying the appropriate |
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representative of the local government [official] and the |
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appropriate assessor-collector for purposes of consulting |
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regarding collecting the proposed contractual assessments [with
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property taxes] imposed on the assessed property; |
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(2) hold a public hearing at which the public may |
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comment on the proposed program, including the report required by |
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Section 399.009; and |
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(3) adopt a resolution establishing the program and |
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the terms of the program, including: |
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(A) each item included in the report under |
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Section 399.009; and |
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(B) a description of each aspect of the program |
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that may be amended only after another public hearing is held. |
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(e) A local government may impose fees to offset the costs |
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of administering a program. The fees authorized by this subsection |
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may be assessed as: |
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(1) a program application fee paid by the property |
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owner requesting to participate in the program expressed as a set |
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amount, a percentage of the amount of the assessment, or in any |
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other manner; |
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(2) a component of the interest rate on the assessment |
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in the written contract between the local government and the |
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property owner; or |
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(3) a combination of Subdivisions (1) and (2). |
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SECTION 5. Sections 399.009(a) and (c), Local Government |
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Code, are amended to read as follows: |
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(a) The report for a proposed program required by Section |
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399.008 must include: |
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(1) a map showing the boundaries of the proposed |
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region; |
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(2) a form contract between the local government and |
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the property owner specifying the terms of: |
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(A) assessment under the program; and |
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(B) financing provided by a third party or the |
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local government, as appropriate; |
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(3) if the proposed program provides for third-party |
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financing, a form contract between the local government and the |
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third party regarding the servicing of the debt through |
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assessments; |
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(4) a description of types of qualified projects that |
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may be subject to contractual assessments; |
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(5) a statement identifying a local government |
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representative [official] authorized to enter into written |
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contracts on behalf of the local government; |
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(6) a plan for ensuring sufficient capital for |
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third-party financing and, if appropriate, raising capital for |
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local government financing for qualified projects; |
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(7) if bonds will be issued to provide capital to |
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finance qualified projects as part of the program as provided by |
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Section 399.016: |
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(A) a maximum aggregate annual dollar amount for |
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financing through contractual assessments to be provided by the |
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local government under the program; |
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(B) a method for ranking requests from property |
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owners for financing through contractual assessments in priority |
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order if requests appear likely to exceed the authorization amount; |
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and |
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(C) a method for determining: |
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(i) the interest rate and period during |
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which contracting owners would pay an assessment; and |
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(ii) the maximum amount of an assessment; |
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(8) a method for ensuring that the period of the |
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contractual assessment does not exceed the useful life of the |
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qualified project that is the basis for the assessment; |
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(9) a description of the application process and |
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eligibility requirements for financing qualified projects to be |
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repaid through contractual assessments under the program; |
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(10) a method as prescribed by Subsection (b) for |
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ensuring that property owners requesting to participate in the |
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program demonstrate the financial ability to fulfill financial |
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obligations to be repaid through contractual assessments; |
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(11) a statement explaining the manner in which |
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property will be assessed and assessments will be collected; |
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(12) a statement explaining the lender notice |
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requirement provided by Section 399.010; |
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(13) a statement explaining the review requirement |
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provided by Section 399.011; |
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(14) a description of marketing and participant |
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education services to be provided for the program; |
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(15) a description of quality assurance and antifraud |
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measures to be instituted for the program; and |
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(16) the procedures for collecting the proposed |
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contractual assessments. |
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(c) The local government shall make the report available for |
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public inspection: |
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(1) on the local government's Internet website; and |
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(2) at the office of the representative [official] |
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designated to enter into written contracts on behalf of the local |
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government under the program. |
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SECTION 6. Section 399.011, Local Government Code, is |
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amended by amending Subsections (a) and (b) and adding Subsection |
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(a-1) to read as follows: |
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(a) A program established under this chapter must require |
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for each proposed qualified project: |
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(1) a review of water or energy baseline conditions |
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and the projected water or energy savings to establish the |
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projected water or energy savings; and |
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(2) a verification that a proposed qualified |
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improvement meets the requirements of a qualified project. |
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(a-1) A verification provided as required under Subsection |
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(a)(2) conclusively establishes that the improvement is a qualified |
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improvement and the project is a qualified project. |
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(b) After a qualified project is completed, the local |
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government shall require written [obtain] verification that the |
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qualified project was properly completed and is operating as |
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intended. |
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SECTION 7. Section 399.014, Local Government Code, is |
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amended by adding Subsection (a-1) to read as follows: |
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(a-1) After the notice of a contractual assessment is |
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recorded as provided under Section 399.013, the lien may not be |
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contested on the basis that the improvement is not a qualified |
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improvement or the project is not a qualified project. |
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SECTION 8. Sections 399.017(a) and (c), Local Government |
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Code, are amended to read as follows: |
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(a) Any combination of local governments may agree to |
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jointly implement or administer a program under this chapter, |
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including entering into an interlocal contract under Chapter 791, |
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Government Code, to jointly implement or administer a program. |
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(c) One or more local governments may contract with a third |
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party, including another local government, to administer a program. |
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Local governments that are parties to an interlocal contract |
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described by Subsection (a) may contract with an entity listed in |
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Section 791.013, Government Code, for program administration. |
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SECTION 9. Chapter 399, Local Government Code, is amended |
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by adding Section 399.019 to read as follows: |
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Sec. 399.019. NO PERSONAL LIABILITY. The members of the |
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governing body of a local government, employees of a local |
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government, and board members, executives, employees, and |
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contractors of a third party who enter into a contract with a local |
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government to provide administrative services for a program under |
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this chapter are not personally liable as a result of exercising any |
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rights or responsibilities granted under this chapter. |
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SECTION 10. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3187 was passed by the House on April |
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30, 2015, by the following vote: Yeas 138, Nays 1, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3187 was passed by the Senate on May |
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22, 2015, by the following vote: Yeas 29, Nays 2. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |