By: Barrientos S.B. No. 1261
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the annexation of and the provision of services to
1-2 certain districts by cities and the assessment of surcharges on the
1-3 dissolution of those districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 43, Local Government Code, is amended by
1-6 adding Section 43.082 to read as follows:
1-7 Sec. 43.082. ANNEXATION OF CERTAIN DISTRICTS ON DISSOLUTION.
1-8 (a) This section applies to any district created in or after 1983
1-9 within the extraterritorial jurisdiction of a municipality with
1-10 written consent by ordinance or resolution as required by Section
1-11 42.042 if the district has:
1-12 (1) issued not less than $17 million nor more than $21
1-13 million in bonds, excluding refunding bonds, repayable in a manner
1-14 authorized under Section 54.503(2), Water Code;
1-15 (2) issued at least $3.5 million of bonds repayable in
1-16 a manner authorized under Section 54.503(3), Water Code, before
1-17 June 1, 1993; and
1-18 (3) constructed all of the facilities for which the
1-19 bonds were issued prior to December 31, 1991.
1-20 (b) The board of directors of a district governed by this
1-21 section may dissolve the district pursuant to this section by
1-22 adopting a resolution at a regular meeting of a district. On the
1-23 dissolution of a district under this section, the municipality
2-1 within whose extraterritorial jurisdiction the district is located
2-2 shall provide full municipal services as defined by Section
2-3 43.056(c).
2-4 (c) On the dissolution of a district subject to this
2-5 section, that district shall be considered to be annexed to the
2-6 municipality within whose extraterritorial jurisdiction the
2-7 district is located after the adoption of a resolution by the
2-8 municipality without providing notice or holding hearings otherwise
2-9 required for annexation under this code.
2-10 (d) On the dissolution of a district subject to this
2-11 section, the municipality within whose extraterritorial
2-12 jurisdiction the district is located shall take ownership of the
2-13 district's assets and assume all the district's bonded
2-14 indebtedness, liabilities, obligations, and other debts.
2-15 (e) After the municipality takes ownership under Subsection
2-16 (d), the municipality in which the extraterritorial jurisdiction
2-17 the district is located may:
2-18 (1) assess on a monthly basis a surcharge on each
2-19 utility customer receiving water and wastewater service in the
2-20 district; the surcharge authorized under this subdivision may not
2-21 exceed $25 per month; the authority to assess the surcharge expires
2-22 when the district's bonded indebtedness is retired; the authority
2-23 to assess the surcharge is not subject to Section 54.016(h), Water
2-24 Code; and
2-25 (2) assess a platting fee surcharge to subdivide
3-1 former district land; the platting fee may be set at an amount
3-2 necessary to collect the difference between the total unpaid
3-3 district bond debt and reimbursement contracts less the total
3-4 amount of surcharges collected over the life of the debt; the
3-5 municipality may not collect surcharges and platting fees that
3-6 added together exceed the total amount of district bonded
3-7 indebtedness and reimbursement contracts outstanding at the time
3-8 the municipality begins to collect a surcharge or platting fee.
3-9 (f) The municipality shall have no responsibility to
3-10 reimburse the developer of the district or the developer's
3-11 successor for more than $800,000 for engineering and construction
3-12 costs to design and build internal water treatment and distribution
3-13 facilities, wastewater treatment and collection facilities, or
3-14 drainage facilities, whether temporary or permanent. Any
3-15 obligation to reimburse the developer may be paid in installments
3-16 over a three-year period; provided, however, any obligation to
3-17 reimburse a developer includes only those agreements between the
3-18 district and a developer existing as of the effective date of this
3-19 section.
3-20 (g) Except for obligations payable under Subsection (f),
3-21 this section shall expire December 31, 1996.
3-22 SECTION 2. If any provision of this Act or its application
3-23 thereof to any person or circumstance is held invalid, the
3-24 invalidity does not affect other provisions or applications of this
3-25 Act which can be given effect without the invalid provision or
4-1 application, and to this end the provisions of this Act are
4-2 severable.
4-3 SECTION 3. The importance of this legislation and the
4-4 crowded condition of the calendars in both houses create an
4-5 emergency and an imperative public necessity that the
4-6 constitutional rule requiring bills to be read on three several
4-7 days in each house be suspended, and this rule is hereby suspended,
4-8 and that this Act take effect and be in force from and after its
4-9 passage, and it is so enacted.