HB 211 — Public improvement districts

90R2550 DRS-F By: Cortez H.B. No. 211 relating to public improvement districts.

SECTION 1. Section 372.010(a), Local Government Code, is amended to read as follows: (a) During the six-month period beginning on [ after ] the date of the final adjournment of the hearing under Section 372.009, the governing body of the municipality or county may authorize an improvement district if, by majority vote of all members of the governing body, the members adopt a resolution authorizing the district in accordance with its finding as to the advisability of the improvement. Except for a resolution authorizing a district described by Section 372.0035, the resolution must provide that the authorization takes effect on the date the resolution is adopted.

SECTION 2. Section 372.0121, Local Government Code, is amended by amending Subsections (a), (b), and (c) and adding Subsections (a-1) and (d) to read as follows: (a) Notwithstanding Section 372.012 or any other requirement in this chapter, the governing body of a municipality may include property in a public improvement district described by Section 372.0035 after the establishment of the district if: (1) the property is a hotel; and (2) a sufficient number of the record owners of and qualified petitioners representing the real property currently included and proposed to be included in the district have consented to be included in the district by signing the original petition to establish the district or by signing a petition or written consent to include property in the district. (a-1) A person is a qualified petitioner under this section if the person meets the requirements of Section 372.005(b-1). (b) Notwithstanding Subsection (a), a [ no ] newly constructed hotel property may not be added to a public improvement [ the ] district under this section unless the record owner of the property or a qualified petitioner representing the property consents to its inclusion. (c) For purposes of Subsection (a)(2), the number of consenting record owners and qualified petitioners is sufficient only if the [ record ] owners and petitioners own or represent more than 60 percent of the appraised value of [ taxable ] real property liable for assessment in the district, as determined by the current appraisal roll of the appraisal district in which the property is located, and: (1) constitute more than 60 percent of all record owners and qualified petitioners of [ taxable ] real property liable for assessment in the district; or (2) own or represent [ , in aggregate, ] more than 60 percent of the area of all [ taxable ] real property that is liable for assessment in the district. (d) If the record owner or qualified representative of a property proposed to be included in a public improvement district under this section consents to the inclusion, the governing body of the municipality that established the district may include the property in the district under this section without providing notice or holding a hearing in the manner required by Section 372.009 or 372.012 for establishing the district.

SECTION 3. Section 372.017, Local Government Code, is amended by amending Subsection (c) and adding Subsection (c-1) to read as follows: (c) Not later than the seventh day after the date the governing body levies an assessment under Subsection (b), the governing body shall submit the assessment roll for each public improvement district established under this chapter to each appraisal district in which property subject to assessment under the [ public improvement ] district is located. Except as provided by Subsection (c-1), the [ The ] assessment roll must state: (1) the total assessment levied against each parcel of land in the [ improvement ] district under Subsection (b); (2) the amount of the annual assessment; and (3) the amount of each periodic installment, if applicable. (c-1) To meet the requirements of Subsection (c), the assessment roll for a public improvement district described by Section 372.0035(a-1) may state only the annual assessment rate levied on each hotel in the district under Subsection (b).

SECTION 4. Sections 372.0121 and 372.017, Local Government Code, as amended by this Act, apply only to a request for the inclusion of or the levy of an assessment on property in a public improvement district made on or after the effective date of this Act. A request for the inclusion of or the levy of an assessment on property in a district made before the effective date of this Act is governed by the law in effect on the date the request or assessment is made, and the former law is continued in effect for that purpose.

SECTION 5. 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, 2027.