By: Lucio	S.B. No. 1670
	(In the Senate - Filed March 9, 2017; March 22, 2017, read
	first time and referred to Committee on Business & Commerce;
	May 5, 2017, reported adversely, with favorable Committee
	Substitute by the following vote:  Yeas 7, Nays 2; May 5, 2017,
	sent to printer.)
Click here to see the committee vote
	COMMITTEE SUBSTITUTE FOR S.B. No. 1670	By:  Campbell

	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" means a structure described
	by:
	(A)  Section 442.001(3), Government Code; and
	(B)  Sections 442.001(3)(A) and (D), 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 on the uniform election date in
	November authorized under Section 41.001, Election Code, 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 100 years old and is located within the
	corporate boundaries of the municipality.
	(c)  A municipally owned utility that receives an
	application under this section as soon as practicable must forward
	a copy of the application to the governing body of the municipality
	that owns the utility and to the Texas Historical Commission.  The
	governing body and the commission must jointly determine whether to
	approve the application.
	(d)  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.
	(e)  After entering into an agreement under Subsection (d),
	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.
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