BILL ANALYSIS
C.S.S.B. 1395
By: Barrientos (Combs/Krusee)
May 11, 1995
Committee Report (Substituted)
BACKGROUND
Current law requires cities, when annexing utility districts, to
eliminate the district board of directors and to absorb all assets
and debts of the district. Some residents of districts oppose
annexation on the grounds that neighborhood amenities and services
will deteriorate.
PURPOSE
As proposed, C.S.S.B. 1395 authorizes governing bodies of certain
municipalities to enter into regional economic development
agreements to facilitate the extension of municipal services and
the growth of the tax base. C.S.S.B. 1395 also authorizes the
governing bodies of a municipality and certain water control and
improvement or utility districts to enter into a strategic
partnership agreement in the event that land within the district is
annexed by the municipality.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.
SECTION BY SECTION ANALYSIS
SECTION 1 Amends Chapter 42C, Local Government Code, by adding
Section 42.048, as follows:
Sec. 42.048. REGIONAL ECONOMIC DEVELOPMENT AGREEMENTS.
(a) Authorizes the governing bodies of neighboring
municipalities and districts to enter into a regional
economic development agreement for continuous,
unincorporated territory that is partially within the
extraterritorial jurisdiction of each municipality that
is a party to the agreement. Authorizes a regional
economic development agreement to make certain
provisions.
(b) Authorizes a municipality to annex for limited
purposes a service area assigned to that municipality
by a regional economic development agreement adopted
under this section in order to provide planning and
zoning in the service area.
SECTION 2 Amends Chapter 43D, Local Government Code, by adding
Sections 43.0751 and 43.0752, as follows:
Sec. 43.0751. STRATEGIC PARTNERSHIPS FOR CONTINUATION
OF CERTAIN DISTRICTS. (a) Defines "district," "limited
district" and "strategic partnership agreement."
(b) Authorizes the governing bodies of a municipality
and district (governing bodies) to negotiate and enter
into a strategic partnership agreement (agreement) for
the district. Requires the governing bodies to evidence
their intention to negotiate such an agreement by
resolution.
(c) Makes an agreement effective when adopted by the
governing bodies, and requires the agreement to be
recorded in certain records and to be binding as of its
effective date.
(d) Requires a governing body, before it adopts an
agreement, to conduct two public hearings to give the
public opportunity to present testimony or evidence.
Requires notice of public hearings conducted by a
governing body to be published in a local, general-circulation newspaper. Sets forth requirements and
guidelines for the notice. Authorizes governing bodies
to conduct joint public hearings, provided that at least
one public hearing is conducted within the district.
Authorizes a municipality to combine the public hearings
and notices required by this subsection with the public
hearings and notices under Section 43.124 of this code.
(e) Prohibits the governing body of a municipality from
annexing a district for limited purposes until it has
adopted an agreement with the district, and prohibits
the governing body of a municipality from adopting an
agreement before the agreement has been adopted by the
governing body of the affected district.
(f) Authorizes an agreement to make certain provisions.
(g) Requires an agreement that provides for the creation
of a limited district to include certain provisions.
(h) Deems the land included within the boundaries of the
district described in the agreement to be within the
full purpose boundary limits of the municipality,
without the need for further action by the governing
body of the municipality. Authorizes the full purpose
annexation conversion date established by an agreement
to be altered only by mutual agreement of the district
and the municipality. Prohibits this section from
preventing the municipality from terminating the
agreement and instituting proceedings to annex the
district, on request of the governing body of the
district, prior to the full conversion annexation date
established by the phased agreement. Prohibits land
annexed under this section from being included in the
calculations under Section 43.055(a) of this code.
(i) Grants a district annexed for limited purposes by
a municipality and a limited district all functions,
powers, and authority otherwise vested in a district.
(j) Prohibits a municipality that may annex a district
for limited purposes to implement an agreement under
this section from annexing for full purposes any
territory within a district created pursuant to a
consent agreement with that municipality executed before
August 27, 1979. Requires the prohibition on annexation
established by this subsection to expire on September
1, 1997, or on the date on or before which the
municipality and the district may have separately agreed
annexation would not take place.
Sec. 43.0752. ELECTIONS RELATING TO AGREEMENTS. (a)
If a proposed agreement that is adopted by a
municipality is rejected by the governing board of a
district, then the governing board of the district shall
hold an election in the district on the issue of
adopting the proposed agreement. Provides for the date
of the election.
(b) Describes the provisions that will be included on
the ballot.
(c) If a proposed agreement is approved by the
governing body of the municipality and the district and
if 5 percent of the eligible voters of the district who
voted in the most recent gubernatorial election petition
the district board, then an election shall be held in
the district on the issue of adopting the proposed
agreement. Sets forth the date for the election and the
requirements for the ballot.
(d) Provides that the district shall bear the cost of
an election under
Subsections (a) or (c).
(e) Provides that if the majority of votes received are
against the adoption of the agreement, then the
agreement is terminated.
SECTION 3 Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
In SECTION 1 of the bill, which adds Section 42.048 to the Local
Government Code, the substitute deletes Subsections (a) and (d) in
the original bill.
In SECTION 2 of the bill, the substitute reorganizes some of the
subsections in the original bill and makes conforming changes, and
it also adds a provision in Subsection (f)(6)(B) that caps the fee
that may be paid under Section 43.7051 (f)(6)(A). The substitute
deletes Subsections (i), (k) and (l) of the original bill. The
substitute also adds Section 43.0752 to the original bill, which
provides for elections by the voters in a district relating to
adoption of proposed agreements.
SUMMARY OF COMMITTEE ACTION
S.B. 1395 was considered by the committee in a formal meeting on
May 8, 1995.
The committee considered a complete substitute for the bill.
Two amendments were offered to the substitute. Both of those
amendments were adopted without objection.
The substitute as amended was adopted without objection.
The Chair directed the staff to incorporate the amendments into the
substitute.
The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 6
ayes, 0 nays, 0 pnv, 3 absent.