H.R. No. 1194
R E S O L U T I O N
1-1 BE IT RESOLVED by the House of Representatives of the State
1-2 of Texas, 74th Legislature, Regular Session, 1995, That House Rule
1-3 13, Section 9(a), be suspended in part as provided by House Rule
1-4 13, Section 9(f), to enable the conference committee appointed to
1-5 resolve the differences on Senate Bill No. 1396 to consider and
1-6 take action on the following matters:
1-7 (1) House Rule 13, Section 9(a)(4), is suspended to permit
1-8 the committee to add text in the form of Section 43.0751, Local
1-9 Government Code, to read as follows:
1-10 SECTION 1. Subchapter D, Chapter 43, Local Government Code,
1-11 is amended by adding Section 43.0751 to read as follows:
1-12 Sec. 43.0751. STRATEGIC PARTNERSHIPS FOR CONTINUATION OF
1-13 CERTAIN DISTRICTS. (a) In this section:
1-14 (1) "District" means a water control and improvement
1-15 district or a municipal utility district created or operating under
1-16 Chapter 51 or 54, Water Code.
1-17 (2) "Limited district" means a district that, pursuant
1-18 to a strategic partnership agreement, continues to exist after
1-19 full-purpose annexation by a municipality in accordance with the
1-20 terms of a strategic partnership agreement.
1-21 (3) "Strategic partnership agreement" means a written
1-22 agreement between a municipality and a district that provides terms
1-23 and conditions under which services will be provided and funded by
1-24 the parties to the agreement and under which the district will
2-1 continue to exist for an extended period of time if the land within
2-2 the district is annexed for limited or full purposes by the
2-3 municipality.
2-4 (b) The governing bodies of a municipality and a district
2-5 shall negotiate and may enter into a written strategic partnership
2-6 agreement for the district. The governing bodies of the
2-7 municipality and the district shall evidence their intention to
2-8 negotiate such an agreement by resolution, each of which
2-9 resolutions shall specify an expiration date if the other governing
2-10 body fails to adopt a resolution under this section on or before
2-11 the specified date. The governing body of a municipality that has
2-12 evidenced its intention by unexpired resolution to enter into
2-13 negotiations with a district for an agreement under this section
2-14 may not initiate proceedings to annex the district under any other
2-15 section of this code prior to the expiration of two years after the
2-16 adoption date of the resolution unless the municipality has
2-17 previously instituted annexation proceedings in granting consent to
2-18 the creation of the district prior to January 1, 1995.
2-19 (c) A strategic partnership agreement shall not be effective
2-20 until adopted by the governing bodies of the municipality and the
2-21 district. The agreement shall be recorded in the deed records of
2-22 the county or counties in which the land included within the
2-23 district is located and shall bind each owner and each future owner
2-24 of land included within the district's boundaries on the date the
2-25 agreement becomes effective.
2-26 (d) Before the governing body of a municipality or a
2-27 district adopts a strategic partnership agreement, it shall conduct
3-1 two public hearings at which members of the public who wish to
3-2 present testimony or evidence regarding the proposed agreement
3-3 shall be given the opportunity to do so. Notice of public hearings
3-4 conducted by the governing body of a municipality under this
3-5 subsection shall be published in a newspaper of general circulation
3-6 in the municipality and in the district. The notice must be in the
3-7 format prescribed by Section 43.123(b) and must be published at
3-8 least once on or after the 20th day before each date. Notice of
3-9 public hearings conducted by the governing body of a district under
3-10 this subsection shall be given in accordance with the district's
3-11 notification procedures for other matters of public importance.
3-12 Any notice of a public hearing conducted under this subsection
3-13 shall contain a statement of the purpose of the hearing, the date,
3-14 time, and place of the hearing, and the location where copies of
3-15 the proposed agreement may be obtained prior to the hearing. The
3-16 governing bodies of a municipality and a district may conduct joint
3-17 public hearings under this subsection, provided that at least one
3-18 public hearing is conducted within the district. A municipality
3-19 may combine the public hearings and notices required by this
3-20 subsection with the public hearings and notices required by Section
3-21 43.124.
3-22 (e) The governing body of a municipality may not annex a
3-23 district for limited purposes under this section or under the
3-24 provisions of Subchapter F until it has adopted a strategic
3-25 partnership agreement with the district. The governing body of a
3-26 municipality may not adopt a strategic partnership agreement before
3-27 the agreement has been adopted by the governing body of the
4-1 affected district.
4-2 (f) A strategic partnership agreement may provide for the
4-3 following:
4-4 (1) limited-purpose annexation of the district under
4-5 the provisions of Subchapter F provided that the district shall
4-6 continue in existence during the period of limited-purpose
4-7 annexation;
4-8 (2) such amendments to the timing requirements of
4-9 Sections 43.123(d)(2) and 43.127(b) as may be necessary or
4-10 convenient to effectuate the purposes of the agreement;
4-11 (3) payments by the municipality to the district for
4-12 services provided by the district;
4-13 (4) annexation of any commercial property in a
4-14 district for full purposes by the municipality, notwithstanding any
4-15 other provision of this code or the Water Code, except for the
4-16 obligation of the municipality to provide, directly or through
4-17 agreement with other units of government, full provision of
4-18 municipal services to annexed territory, in lieu of any annexation
4-19 of residential property or payment of any fee on residential
4-20 property in lieu of annexation of residential property in the
4-21 district authorized by this subsection;
4-22 (5) a full-purpose annexation provision that specifies
4-23 one of the following:
4-24 (A) the date on which the land included within
4-25 the district's boundaries shall be converted from the
4-26 municipality's limited-purpose jurisdiction to its full-purpose
4-27 jurisdiction, provided that such date shall not be later than 10
5-1 years after the effective date of the strategic partnership
5-2 agreement; or
5-3 (B)(i) terms for payment of an annual fee to the
5-4 municipality by the district in lieu of full-purpose annexation,
5-5 the form in which each such payment must be tendered, a method of
5-6 calculating the fee, and the date by which each such payment must
5-7 be made; failure by a district to timely make an annual payment in
5-8 lieu of full-purpose annexation in the amount and form required by
5-9 a strategic partnership agreement shall be the only ground for
5-10 termination of the agreement with respect to annexation at the
5-11 option of the municipality;
5-12 (ii) to determine a reasonable fee to be
5-13 derived from residential property in a district, the municipality
5-14 or the district may request a cost-of-service study by an
5-15 independent third party agreeable to both parties if
5-16 cost-of-service data prepared by the municipality is not
5-17 acceptable. Both parties shall be equally responsible for the cost
5-18 of the study, which shall include an evaluation of the estimated
5-19 annual cost of providing municipal services to the residential
5-20 portion of the district over the next 10 years and the estimated
5-21 annual amount of ad valorem taxes from residential property the
5-22 city would receive on full-purpose annexation of the district over
5-23 the next 10 years. The fee shall not exceed the estimated annual
5-24 amount of residential ad valorem taxes that would be derived by
5-25 full-purpose annexation of the district, less the estimated annual
5-26 amount required to provide municipal services to the residential
5-27 property in the district if annexed for full purposes. A fee
6-1 determined through this methodology is subject to renegotiation
6-2 every 10 years at the request of either party to the agreement
6-3 following the same procedure used to set the fee in the original
6-4 agreement. This methodology does not apply to fees from commercial
6-5 property;
6-6 (6) conversion of the district to a limited district
6-7 including some or all of the land included within the boundaries of
6-8 the district, which conversion shall be effective on the
6-9 full-purpose annexation conversion date established under
6-10 Subdivision (5)(A);
6-11 (7) agreements existing between districts and
6-12 governmental bodies and private providers of municipal services in
6-13 existence on the date a municipality evidences its intention by
6-14 adopting a resolution to negotiate for a strategic partnership
6-15 agreement with the district shall be continued and provision made
6-16 for modifications to such existing agreements; and
6-17 (8) such other lawful terms that the parties consider
6-18 appropriate.
6-19 (g) A strategic partnership agreement that provides for the
6-20 creation of a limited district under Subsection (f)(6) shall
6-21 include provisions setting forth the following:
6-22 (1) the boundaries of the limited district;
6-23 (2) the functions of the limited district and the term
6-24 during which the limited district shall exist after full-purpose
6-25 annexation, which term may be renewed successively by the governing
6-26 body of the municipality, provided that no such original or renewed
6-27 term shall exceed 10 years;
7-1 (3) the name by which the limited district shall be
7-2 known; and
7-3 (4) the procedure by which the limited district may be
7-4 dissolved prior to the expiration of any term established under
7-5 Subdivision (2).
7-6 (h) On the full-purpose annexation conversion date set forth
7-7 in the strategic partnership agreement pursuant to Subsection
7-8 (f)(5)(A), the land included within the boundaries of the district
7-9 shall be deemed to be within the full-purpose boundary limits of
7-10 the municipality without the need for further action by the
7-11 governing body of the municipality. The full-purpose annexation
7-12 conversion date established by a strategic partnership agreement
7-13 may be altered only by mutual agreement of the district and the
7-14 municipality. However, nothing herein shall prevent the
7-15 municipality from terminating the agreement and instituting
7-16 proceedings to annex the district, on request by the governing body
7-17 of the district, on any date prior to the full-purpose annexation
7-18 conversion date established by the strategic partnership agreement.
7-19 Land annexed for limited or full purposes under this section shall
7-20 not be included in calculations prescribed by Section 43.055(a).
7-21 (i) A district that is negotiating for or that has adopted a
7-22 strategic partnership agreement shall not incur additional debt,
7-23 liabilities, or obligations, to construct additional utility
7-24 facilities, or sell or otherwise transfer property without prior
7-25 approval of the municipality, which approval shall not be
7-26 unreasonably withheld or delayed. An action taken in violation of
7-27 this subsection is void.
8-1 (j) Except as limited by this section or the terms of a
8-2 strategic partnership agreement, a district that has been annexed
8-3 for limited purposes by a municipality and a limited district shall
8-4 have and may exercise all functions, powers, and authority
8-5 otherwise vested in a district.
8-6 (k) A municipality that has annexed a district for limited
8-7 purposes under this section may impose a retail sales tax within
8-8 the boundaries of the district.
8-9 (l) An agreement or a decision made under this section and
8-10 an action taken under the agreement by the parties to the agreement
8-11 are not subject to approval or an appeal brought under the Water
8-12 Code unless it is an appeal of a utility rate charged by a
8-13 municipality to customers outside the corporate boundaries of the
8-14 municipality.
8-15 (m) A municipality that may annex a district for limited
8-16 purposes to implement a strategic partnership agreement under this
8-17 section shall not annex for full purposes any territory within a
8-18 district created pursuant to a consent agreement with that
8-19 municipality executed before August 27, 1979. The prohibition on
8-20 annexation established by this subsection shall expire on
8-21 September 1, 1997, or on the date on or before which the
8-22 municipality and any district may have separately agreed that
8-23 annexation would not take place whichever is later.
8-24 Explanation: This change is necessary to clarify the
8-25 authority of a municipality and certain municipal utility districts
8-26 or water control and improvement districts to enter into a
8-27 strategic partnership agreement.
9-1 (2) House Rule 13, Section 9(a)(4), is suspended to permit
9-2 the committee to add text in the form of Article 1010a, Revised
9-3 Statutes, to read as follows:
9-4 SECTION 2. Chapter 4, Title 28, Revised Statutes, is amended
9-5 by adding Article 1010a to read as follows:
9-6 Art. 1010a. DEVELOPMENT REGULATION
9-7 Sec. 1. This article applies only to a home-rule
9-8 municipality that:
9-9 (1) has a charter provision allowing for
9-10 limited-purpose annexation; and
9-11 (2) has annexed territory for a limited purpose.
9-12 Sec. 2. In this article:
9-13 (1) "Affected area" means an area that is:
9-14 (A) within a municipality or a municipality's
9-15 extraterritorial jurisdiction;
9-16 (B) within a county other than the county in
9-17 which a majority of the territory of the municipality is located;
9-18 (C) within the boundaries of one or more school
9-19 districts other than the school district in which a majority of the
9-20 territory of the municipality is located; and
9-21 (D) within the area of or within 1,500 feet of
9-22 the boundary of an assessment road district in which there are two
9-23 state highways.
9-24 (2) "Assessment road district" means a road district
9-25 that has issued refunding bonds and that has imposed assessments on
9-26 each parcel of land under Section 4.438A, County Road and Bridge
9-27 Act (Article 6702-1, Vernon's Texas Civil Statutes).
10-1 (3) "State highway" means a highway that is part of
10-2 the state highway system under Section 2, Chapter 186, General
10-3 Laws, Acts of the 39th Legislature, Regular Session, 1925 (Article
10-4 6674b, Vernon's Texas Civil Statutes).
10-5 Sec. 3. (a) A municipality may not deny, limit, delay, or
10-6 condition the use or development of land, any part of which is
10-7 within an affected area, because of:
10-8 (1) traffic or traffic operations that would result
10-9 from the proposed use or development of the land; or
10-10 (2) the effect that the proposed use or development of
10-11 the land would have on traffic or traffic operations.
10-12 (b) In this section, an action to deny, limit, delay, or
10-13 condition the use or development of land includes a decision or
10-14 action by the governing body of the municipality or a commission,
10-15 board, department, agency, office, or employee of the municipality
10-16 related to zoning, subdivision, site planning, the construction or
10-17 building permit process, or any other municipal process, approval,
10-18 or permit.
10-19 (c) This article does not prevent a municipality from
10-20 exercising its authority to require the dedication of right-of-way.
10-21 Sec. 4. (a) A provision in any covenant or agreement
10-22 relating to land in an affected area made before, on, or after the
10-23 effective date of this article that would have the effect of
10-24 denying, limiting, delaying, or conditioning the use or development
10-25 of the land because of its effect on traffic or traffic operations
10-26 may not be enforced by a municipality.
10-27 (b) This article controls over any other law relating to
11-1 municipal regulation of land use or development based on traffic.
11-2 Explanation: This change is necessary to clarify the
11-3 authority of certain municipalities to regulate the development or
11-4 use of land within certain affected areas.
11-5 (3) House Rule 13, Section 9(a)(1), is suspended to permit
11-6 the committee to change the text of Section 43.203(c)(1), Local
11-7 Government Code to read as follows:
11-8 (1) the district's status is automatically altered
11-9 from full-purpose annexation to limited-purpose annexation for a
11-10 period of not less than 10 years, beginning January 1 of the year
11-11 following the date of the submission of a petition, unless the
11-12 voters of the district have approved the dissolution of the
11-13 district through an election authorized by this section; and
11-14 Explanation: This change is necessary to clarify the
11-15 procedure for altering annexation status.
11-16 (4) House Rule 13, Section 9(a)(1), is suspended to permit
11-17 the committee to change the text of Section 43.203(g), Local
11-18 Government Code, to read as follows:
11-19 (g) This section does not allow a change in annexation
11-20 status for land or facilities in a district to which the
11-21 municipality granted a property tax abatement before September 1,
11-22 1995.
11-23 Explanation: This change is necessary to clarify the types
11-24 of land or facilities that may have a change in annexation status.