BILL ANALYSIS
C.S.S.B. 1395
By: Barrientos
Natural Resources
05-03-95
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 body of a municipality to transfer
parts of its extraterritorial jurisdiction to one or more
specified municipalities to facilitate extension of municipal
services to the area and the growth of the region's tax base.
Declares that the limits set forth in Section 42.021, Local
Government Code, do not apply to transfers of extraterritorial
jurisdiction under this section. Prohibits a municipality
from transferring territory in a district from one
extraterritorial jurisdiction of one municipality to another
unless the transfer results in all territory in a district
being in the extraterritorial jurisdiction of a single
municipality.
(b) 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.
(c) 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.
(d) Authorizes a municipality that has annexed an assigned
service area for limited purposes under this section to
impose retail sales tax within the boundaries of the
assigned service area. Requires sales tax collected under
this section to be used to fund the activities of the
regional economic development board and to construct
facilities necessary to extend municipal services to the
area covered by the regional economic development agreement.
SECTION 2. Amends Chapter 43D, Local Government Code, by adding
Section 43.0751, 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.
(1) Prohibits a district negotiating for or having adopted
an agreement from incurring additional debt, liabilities, or
obligations, constructing additional facilities, selling or
otherwise transferring property without prior approval of
the municipality which approval shall not be unreasonably
withheld or delayed. Makes void an action taken in
violation of this subsection.
(j) Grants a district annexed for limited purposes by a
municipality and a limited district all functions, powers,
and authority otherwise vested in a district.
(k) Authorizes a municipality that has annexed a district
for limited purposes under this section to impose sales tax
within the district.
(l) Exempts an agreement, decision, or action taken under
the agreement from being subject to an approval or appeal
brought under the Water Code, unless it is an appeal of a
utility rate charged by a municipality to customers outside
the corporate boundaries of the municipality.
(m) 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.
SECTION 2. Emergency clause.
Effective date: 90 days after adjournment.