By: Barrientos S.B. No. 1396
A BILL TO BE ENTITLED
AN ACT
1-1 relating to altering the annexation status of land in certain
1-2 municipal utility districts and authorizing the collection of
1-3 municipal sales taxes in the 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 Subchapter H to read as follows:
1-7 SUBCHAPTER H. ALTERATION OF ANNEXATION STATUS
1-8 Sec. 43.201. DEFINITIONS. In this subchapter:
1-9 (1) "Consent agreement" means an agreement between a
1-10 district and a municipality under Section 42.042.
1-11 (2) "Limited-purpose annexation" means annexation
1-12 authorized under Section 43.121.
1-13 Sec. 43.202. APPLICABILITY. This subchapter applies to:
1-14 (1) a municipal utility district operating under
1-15 Chapter 54, Water Code, that:
1-16 (A) was annexed for full purposes by a
1-17 municipality as a condition of the municipality granting consent to
1-18 the creation of the district;
1-19 (B) was annexed by the municipality on the same
1-20 date as at least five other districts; and
1-21 (C) has not had on the eighth anniversary of the
1-22 district's annexation by the municipality more than 10 percent of
1-23 the housing units or commercial square footage authorized in its
2-1 consent agreement constructed; and
2-2 (2) a municipality that has:
2-3 (A) annexed territory for limited purposes;
2-4 (B) disannexed territory that previously was
2-5 annexed for limited purposes; and
2-6 (C) previously disannexed territory in a
2-7 municipal utility district originally annexed for full purposes on
2-8 the same date as a district to which this section applies.
2-9 Sec. 43.203. ALTERATION OF ANNEXATION STATUS. (a) The
2-10 governing body of a district by resolution may petition a
2-11 municipality to alter the annexation status of land in the district
2-12 from full-purpose annexation to limited-purpose annexation.
2-13 (b) On receipt of the district's petition, the governing
2-14 body of the municipality shall enter into negotiations with the
2-15 district for an agreement to alter the status of annexation that
2-16 must:
2-17 (1) specify the period, which may not be less than 10
2-18 years beginning on January 1 of the year following the date of the
2-19 agreement, in which limited-purpose annexation is in effect;
2-20 (2) provide that, at the expiration of the period, the
2-21 district's annexation status will automatically revert to
2-22 full-purpose annexation without following procedures provided by
2-23 Sections 43.051 through 43.055 or any other procedural requirement
2-24 for annexation not in effect on January 1, 1995; and
2-25 (3) specify the financial obligations of the district
3-1 during and after the period of limited-purpose annexation for:
3-2 (A) facilities constructed by the municipality
3-3 that are in or that serve the district;
3-4 (B) debt incurred by the district for water and
3-5 sewer infrastructure that will be assumed by the municipality at
3-6 the end of the period of limited-purpose annexation; and
3-7 (C) use of the municipal sales taxes collected
3-8 by the municipality for facilities or services in the district.
3-9 (c) If an agreement is not reached within 90 days after the
3-10 date the municipality receives a petition submitted by a district:
3-11 (1) the district's status is automatically altered
3-12 from full-purpose annexation to limited-purpose annexation for a
3-13 period of not less than 10 years, beginning January 1 of the year
3-14 following the date of the submission of a petition; and
3-15 (2) on the expiration of the 10-year period of
3-16 Subdivision (1), notwithstanding any other provision of law, the
3-17 district may be restored to full-purpose annexation at the option
3-18 of the municipality, provided that the municipality assumes all
3-19 obligations otherwise assigned by law to a municipality that
3-20 annexes a district; and
3-21 (3) the municipality may collect a waste and
3-22 wastewater surcharge for customers in the district after
3-23 restoration of full-purpose annexation provided that:
3-24 (A) notice of such proposed surcharge is
3-25 provided to the board of a district six months prior to restoration
4-1 of full-purpose annexation;
4-2 (B) the surcharge does not exceed the cost of a
4-3 post-annexation surcharge to any other district annexed by the
4-4 municipality; and
4-5 (C) the surcharge is in effect only during the
4-6 period in which bonds issued by the district or refunded by the
4-7 municipality are not fully retired.
4-8 (d) The municipality shall have no responsibility to
4-9 reimburse the developer of the district or its successors for more
4-10 than $800,000 for engineering and construction costs to design and
4-11 build internal water treatment and distribution facilities,
4-12 wastewater treatment and collection facilities, or drainage
4-13 facilities, whether temporary or permanent, installed after
4-14 September 1, 1995. Any obligation to reimburse the developer may
4-15 be paid in installments over a three-year period.
4-16 (e) During the period of limited-purpose annexation:
4-17 (1) the district must comply with other items in its
4-18 consent agreement with the municipality;
4-19 (2) the municipality:
4-20 (A) must continue to provide wholesale water and
4-21 sewer service as provided by the consent agreement; and
4-22 (B) is relieved of service obligations in the
4-23 district that are not provided to other territory annexed for
4-24 limited purposes or required by the annexation alteration agreement
4-25 between the municipality and the district; and
5-1 (3) retail sales in the boundaries of the district
5-2 will be treated for municipal sales tax purposes as if the district
5-3 were annexed by the municipality for full purposes.
5-4 (f) This section does not apply to land or facilities in a
5-5 district to which the municipality granted a property tax abatement
5-6 before September 1, 1995.
5-7 SECTION 2. This Act takes effect September 1, 1995.
5-8 SECTION 3. The importance of this legislation and the
5-9 crowded condition of the calendars in both houses create an
5-10 emergency and an imperative public necessity that the
5-11 constitutional rule requiring bills to be read on three several
5-12 days in each house be suspended, and this rule is hereby suspended.