By: Barrientos S.B. No. 1396
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the alteration in annexation status of land within
1-2 certain municipal utility districts by certain municipalities and
1-3 authorizing the collection of municipal sales taxes within such
1-4 districts.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 43, Local Government Code, is amended by
1-7 adding a new Subchapter H to read as follows:
1-8 SUBCHAPTER H. ALTERATION OF ANNEXATION STATUS
1-9 Sec. 43.200 ALTERATION OF TERMS OF ANNEXATION OF LAND IN A
1-10 MUNICIPAL UTILITY DISTRICT. (a) In this section:
1-11 (1) "District" means a municipal utility district
1-12 operating under Chapter 54, Water Code which was annexed for full
1-13 purposes by a municipality as a condition of the municipality
1-14 granting consent to the creation of a district, which was annexed
1-15 on the same date as at least five other districts by the
1-16 municipality, and which has not had more than ten percent of the
1-17 housing units or commercial square footage authorized in its
1-18 consent agreement constructed on the eight anniversary of its
1-19 annexation by the municipality.
1-20 (2) "Municipality" means a municipality which has
1-21 annexed and disannexed territory for limited purposes, and has
1-22 previously disannexed territory in a municipal utility district
1-23 originally annexed on the same date as a district to which this
2-1 section applies.
2-2 (3) "Limited purpose annexation" means annexation
2-3 authorized under Section 43.121 of this chapter.
2-4 (4) "Consent agreement" means an agreement between a
2-5 district and a municipality under Section 42.042 of this code.
2-6 (5) "Annexation alteration agreement" means an
2-7 agreement between a district and a municipality under this section.
2-8 (b) The governing body of a district may, by resolution,
2-9 petition a municipality for an alteration in the status of
2-10 annexation of land in the district from full purpose annexation to
2-11 limited purpose annexation.
2-12 (c) Upon receipt of the petition the governing body of a
2-13 municipality shall enter into negotiations with the district for an
2-14 annexation alteration agreement on the terms of alteration in the
2-15 status of annexation, which shall include:
2-16 (1) A period of time in which limited purpose
2-17 annexation shall be in effect prior to an automatic reversion to
2-18 full purpose annexation of the district by the municipality without
2-19 following procedures established in Sections 43.051 through 43.055
2-20 of this chapter or any other procedural requirements for annexation
2-21 not in effect on January 1, 1995. The time period may be no less
2-22 than ten years nor greater than fifteen years beginning on
2-23 January 1 of the year following the annexation alteration
2-24 agreement.
2-25 (2) Financial obligations of the district and its
3-1 residents during and after the period of limited purpose annexation
3-2 for facilities constructed by the municipality in or serving the
3-3 district and for debt incurred by the district for water and sewer
3-4 infrastructure which shall be assumed by the municipality at the
3-5 end of the period of limited purpose annexation, and the use of
3-6 municipal sales taxes collected by the municipality for facilities
3-7 or services within the district.
3-8 (d) If an annexation alteration agreement is not reached
3-9 within 90 days of receipt of a petition by a district, the
3-10 district's status is automatically altered from full purpose to
3-11 limited purpose annexation for a period of ten years, beginning
3-12 January 1 of the year following the submission of a petition.
3-13 Immediately upon the expiration of that period, the district
3-14 automatically reverts to full purpose annexation within the
3-15 municipality, with the municipality assuming all obligations
3-16 otherwise assigned to municipalities by law regarding the
3-17 annexation of districts.
3-18 (e) During any period of limited purpose annexation, the
3-19 district must comply with other items in its consent agreement, and
3-20 the municipality must continue to provide any wholesale water and
3-21 sewer service contained in the consent agreement. The municipality
3-22 is relieved of any service obligations in the district which are
3-23 not provided to other territory annexed for limited purposes or
3-24 required by the annexation alteration agreement between the
3-25 municipality and the district.
4-1 (f) During the period of limited purpose annexation, any
4-2 retail sales within boundaries of the district will be treated for
4-3 municipal sales tax purposes as if the district were still annexed
4-4 by the municipality for full purposes.
4-5 (g) This section does not apply to land or facilities within
4-6 a district to which the municipality has granted a property tax
4-7 abatement prior to the effective date of this section.
4-8 SECTION 2. The importance of this legislation and the
4-9 crowded condition of the calendars in both houses create an
4-10 emergency and an imperative public necessity that the
4-11 constitutional rule requiring bills to be read on three several
4-12 days in each house be suspended, and this rule is hereby suspended.