1-1 By: Barrientos S.B. No. 1261
1-2 (In the Senate - Filed March 10, 1995; March 16, 1995, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 27, 1995, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 8, Nays 0;
1-6 April 27, 1995, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1261 By: Gallegos
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the annexation of and the provision of services to
1-11 certain districts by cities and the assessment of surcharges on the
1-12 dissolution of those districts.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Chapter 43, Local Government Code, is amended by
1-15 adding Section 43.082 to read as follows:
1-16 Sec. 43.082. ANNEXATION OF CERTAIN DISTRICTS ON DISSOLUTION.
1-17 (a) This section applies to any district created in or after 1983
1-18 within the extraterritorial jurisdiction of a municipality with
1-19 written consent by ordinance or resolution as required by Section
1-20 42.042 if the district has:
1-21 (1) issued not less than $17 million nor more than $21
1-22 million in bonds, excluding refunding bonds, repayable in a manner
1-23 authorized under Section 54.503(2), Water Code;
1-24 (2) issued at least $3.5 million of bonds repayable in
1-25 a manner authorized under Section 54.503(3), Water Code, before
1-26 June 1, 1993; and
1-27 (3) constructed all of the facilities for which the
1-28 bonds were issued prior to December 31, 1991.
1-29 (b) The board of directors of a district governed by this
1-30 section may dissolve the district pursuant to this section by
1-31 adopting a resolution at a regular meeting of a district. On the
1-32 dissolution of a district under this section, the municipality
1-33 within whose extraterritorial jurisdiction the district is located
1-34 shall provide full municipal services as defined by Section
1-35 43.056(c).
1-36 (c) On the dissolution of a district subject to this
1-37 section, that district shall be considered to be annexed to the
1-38 municipality within whose extraterritorial jurisdiction the
1-39 district is located after the adoption of a resolution by the
1-40 municipality without providing notice or holding hearings otherwise
1-41 required for annexation under this code.
1-42 (d) On the dissolution of a district subject to this
1-43 section, the municipality within whose extraterritorial
1-44 jurisdiction the district is located shall take ownership of the
1-45 district's assets and assume all the district's bonded
1-46 indebtedness, liabilities, obligations, and other debts.
1-47 (e) After the municipality takes ownership under Subsection
1-48 (d), the municipality in which the extraterritorial jurisdiction
1-49 the district is located may:
1-50 (1) assess on a monthly basis a surcharge on each
1-51 utility customer receiving water and wastewater service in the
1-52 district; the surcharge authorized under this subdivision may not
1-53 exceed $25 per month; the authority to assess the surcharge expires
1-54 when the district's bonded indebtedness is retired; the authority
1-55 to assess the surcharge is not subject to Section 54.016(h), Water
1-56 Code; and
1-57 (2) assess a platting fee surcharge to subdivide
1-58 former district land; the platting fee may be set at an amount
1-59 necessary to collect the difference between the total unpaid
1-60 district bond debt and reimbursement contracts less the total
1-61 amount of surcharges collected over the life of the debt; the
1-62 municipality may not collect surcharges and platting fees that
1-63 added together exceed the total amount of district bonded
1-64 indebtedness and reimbursement contracts outstanding at the time
1-65 the municipality begins to collect a surcharge or platting fee.
1-66 (f) The municipality shall have no responsibility to
1-67 reimburse the developer of the district or the developer's
1-68 successor for more than $800,000 for engineering and construction
2-1 costs to design and build internal water treatment and distribution
2-2 facilities, wastewater treatment and collection facilities, or
2-3 drainage facilities, whether temporary or permanent. Any
2-4 obligation to reimburse the developer may be paid in installments
2-5 over a three-year period; provided, however, any obligation to
2-6 reimburse a developer includes only those agreements between the
2-7 district and a developer existing as of the effective date of this
2-8 section.
2-9 (g) Except for obligations payable under Subsection (f),
2-10 this section shall expire December 31, 1996.
2-11 SECTION 2. If any provision of this Act or its application
2-12 thereof to any person or circumstance is held invalid, the
2-13 invalidity does not affect other provisions or applications of this
2-14 Act which can be given effect without the invalid provision or
2-15 application, and to this end the provisions of this Act are
2-16 severable.
2-17 SECTION 3. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended,
2-22 and that this Act take effect and be in force from and after its
2-23 passage, and it is so enacted.
2-24 * * * * *