By Oliveira                                           H.B. No. 2103
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to economic development within the state, renewal of
    1-3  industrial development agreements, and municipal annexation.
    1-5        SECTION 1.  Texas Local Government Code Sec. 42.044 (Vernon
    1-6  1988) (Section 1, Chapter 149, Acts of the 70th Legislature,
    1-7  Regular Session, 1987), is amended to read as follows:
    1-8        Section 42.044.  Creation of Industrial District in
    1-9  Extraterritorial Jurisdiction.
   1-10        (a)  In this section, "industrial district" has the meaning
   1-11  customarily given to the term but also includes any area in which
   1-12  tourist-related businesses and facilities are located.
   1-13        (b)  The governing body of a municipality may designate any
   1-14  part of its extraterritorial jurisdiction as an industrial district
   1-15  and may treat the designated area in a manner considered by the
   1-16  governing body to be in the best interests of the municipality.
   1-17        (c)  The governing body may make written contracts with
   1-18  owners of land in the industrial district:
   1-19              (1)  to guarantee the continuation of the
   1-20  extraterritorial status of the district and its immunity from
   1-21  annexation by the municipality for a period not to exceed seven
   1-22  years; and
   1-23              (2)  with other terms and considerations that the
    2-1  parties consider appropriate.
    2-2        (d)  The parties to a contract may renew or extend if for
    2-3  successive periods not to exceed seven years each.  In the event
    2-4  any owner of land in an industrial district is offered an
    2-5  opportunity to renew or extend a contract, then all owners of land
    2-6  in that industrial district must be offered the same opportunity to
    2-7  renew or extend.
    2-8        (e)  A municipality may provide for adequate fire-fighting
    2-9  services in the industrial district by:
   2-10              (1)  directly furnishing fire-fighting services that
   2-11  are to be paid for by the property owners of the district;
   2-12              (2)  contracting for fire-fighting services, whether or
   2-13  not all or a part of the services are to be paid for by the
   2-14  property owners of the district; or
   2-15              (3)  contracting with the property owners of the
   2-16  district to have them provide for their own fire-fighting services.
   2-17        (f)  A property owner who provides for his own fire-fighting
   2-18  services under this section may not be required to pay any part of
   2-19  the cost of the fire-fighting services provided by the municipality
   2-20  to other property owners in the district.
   2-21        (g)(1)  If a municipality annexes a privately-owned area in
   2-22  an industrial district that was subject to a written contract as
   2-23  referenced in Subsection (c) above, and the annexation results in
   2-24  the imposition of municipal regulation that, by its terms,
   2-25  precludes or impairs the ability of the landowner(s) to utilize the
    3-1  property for those purposes for which the landowner(s) previously
    3-2  had invested in the property, the municipality shall,
    3-3  simultaneously with the annexation, pay in cash to the landowner(s)
    3-4  of the property a sum equal to all actual costs and expenses
    3-5  incurred by the landowner(s) in connection with the property.
    3-6              (2)  Subsection (g)(1) shall not apply to areas annexed
    3-7  under Section 43.129.
    3-8        SECTION 2.  Texas Local Government Code Section 43.054
    3-9  (Vernon Supp. 1993) (Section 1, Chapter 149, Acts of the 70th
   3-10  Legislature, Regular Session, 1987, as amended by Section 3(d),
   3-11  Chapter 1, Acts of the 71st Legislature, Regular Session, 1989) is
   3-12  amended to read as follows:
   3-13        Section 43.054.  Width Requirements.
   3-14        (a)  A municipality may not annex a publicly or privately
   3-15  owned area, including a strip of area following the course of a
   3-16  road, highway, river, stream, or creek, unless the width of the
   3-17  area at its narrowest point is at least 1,000 <feet> yards.
   3-18        (b)  The prohibition established by Subsection (a) does not
   3-19  apply if:
   3-20              (1)  the boundaries of the municipality are contiguous
   3-21  to the area on at least two sides;
   3-22              (2)  the annexation is initiated on the written
   3-23  petition of the owners or of a majority of the qualified voters of
   3-24  the area; or
   3-25              (3)  the area abuts or is contiguous to another
    4-1  jurisdictional boundary.
    4-2        SECTION 3.  The changes in law made by this Act apply only to
    4-3  contracts in effect on or entered into after the effective date of
    4-4  this Act.
    4-5        SECTION 4.  This Act takes effect September 1, 1993.
    4-6        SECTION 5.  The importance of this legislation and the
    4-7  crowded condition of the calendars in both houses create an
    4-8  emergency and an imperative public necessary that the
    4-9  constitutional rule requiring bills to be read on three several
   4-10  days in each house be suspended, and this rule is hereby suspended.