By:  Barrientos                                       S.R. No. 1289
     1-10     is amended by adding Section 43.0751 to read as follows:
     1-11           Sec. 43.0751.  STRATEGIC PARTNERSHIPS FOR CONTINUATION OF
     1-12     CERTAIN DISTRICTS.  (a)  In this section:
     1-13                 (1)  "District" means a water control and improvement
     1-14     district or a municipal utility district created or operating under
     1-15     Chapter 51 or 54, Water Code.
     1-16                 (2)  "Limited district" means a district that, pursuant
     1-17     to a strategic partnership agreement, continues to exist after
     1-18     full-purpose annexation by a municipality in accordance with the
     1-19     terms of a strategic partnership agreement.
     1-20                 (3)  "Strategic partnership agreement" means a written
     1-21     agreement between a municipality and a district that provides terms
     1-22     and conditions under which services will be provided and funded by
     1-23     the parties to the agreement and under which the district will
     1-24     continue to exist for an extended period of time if the land within
     1-25     the district is annexed for limited or full purposes by the
     2-10     evidenced its intention by unexpired resolution to enter into
     2-11     negotiations with a district for an agreement under this section
     2-12     may not initiate proceedings to annex the district under any other
     2-13     section of this code prior to the expiration of two years after the
     2-14     adoption date of the resolution unless the municipality has
     2-15     previously instituted annexation proceedings in granting consent to
     2-16     the creation of the district prior to January 1, 1995.
     2-17           (c)  A strategic partnership agreement shall not be effective
     2-18     until adopted by the governing bodies of the municipality and the
     2-19     district.  The agreement shall be recorded in the deed records of
     2-20     the county or counties in which the land included within the
     2-21     district is located and shall bind each owner and each future owner
     2-22     of land included within the district's boundaries on the date the
     2-23     agreement becomes effective.
     2-24           (d)  Before the governing body of a municipality or a
     2-25     district adopts a strategic partnership agreement, it shall conduct
     2-26     two public hearings at which members of the public who wish to
     3-10     notification procedures for other matters of public importance.
     3-11     Any notice of a public hearing conducted under this subsection
     3-12     shall contain a statement of the purpose of the hearing, the date,
     3-13     time, and place of the hearing, and the location where copies of
     3-14     the proposed agreement may be obtained prior to the hearing.  The
     3-15     governing bodies of a municipality and a district may conduct joint
     3-16     public hearings under this subsection, provided that at least one
     3-17     public hearing is conducted within the district.  A municipality
     3-18     may combine the public hearings and notices required by this
     3-19     subsection with the public hearings and notices required by Section
     3-20     43.124.
     3-21           (e)  The governing body of a municipality may not annex a
     3-22     district for limited purposes under this section or under the
     3-23     provisions of Subchapter F until it has adopted a strategic
     3-24     partnership agreement with the district.  The governing body of a
     3-25     municipality may not adopt a strategic partnership agreement before
     3-26     the agreement has been adopted by the governing body of the
     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
     5-10     a strategic partnership agreement shall be the only ground for
     5-11     termination of the agreement with respect to annexation at the
     5-12     option of the municipality;
     5-13                             (ii)  to determine a reasonable fee to be
     5-14     derived from residential property in a district, the municipality
     5-15     or the district may request a cost-of-service study by an
     5-16     independent third party agreeable to both parties if
     5-17     cost-of-service data prepared by the municipality is not
     5-18     acceptable.  Both parties shall be equally responsible for the cost
     5-19     of the study, which shall include an evaluation of the estimated
     5-20     annual cost of providing municipal services to the residential
     5-21     portion of the district over the next 10 years and the estimated
     5-22     annual amount of ad valorem taxes from residential property the
     5-23     city would receive on full-purpose annexation of the district over
     5-24     the next 10 years.  The fee shall not exceed the estimated annual
     5-25     amount of residential ad valorem taxes that would be derived by
     5-26     full-purpose annexation of the district, less the estimated annual
     6-10     the district, which conversion shall be effective on the
     6-11     full-purpose annexation conversion date established under
     6-12     Subdivision (5)(A);
     6-13                 (7)  agreements existing between districts and
     6-14     governmental bodies and private providers of municipal services in
     6-15     existence on the date a municipality evidences its intention by
     6-16     adopting a resolution to negotiate for a strategic partnership
     6-17     agreement with the district shall be continued and provision made
     6-18     for modifications to such existing agreements; and
     6-19                 (8)  such other lawful terms that the parties consider
     6-20     appropriate.
     6-21           (g)  A strategic partnership agreement that provides for the
     6-22     creation of a limited district under Subsection (f)(6) shall
     6-23     include provisions setting forth the following:
     6-24                 (1)  the boundaries of the limited district;
     6-25                 (2)  the functions of the limited district and the term
     6-26     during which the limited district shall exist after full-purpose
     7-10     in the strategic partnership agreement pursuant to Subsection
     7-11     (f)(5)(A), the land included within the boundaries of the district
     7-12     shall be deemed to be within the full-purpose boundary limits of
     7-13     the municipality without the need for further action by the
     7-14     governing body of the municipality.  The full-purpose annexation
     7-15     conversion date established by a strategic partnership agreement
     7-16     may be altered only by mutual agreement of the district and the
     7-17     municipality.  However, nothing herein shall prevent the
     7-18     municipality from terminating the agreement and instituting
     7-19     proceedings to annex the district, on request by the governing body
     7-20     of the district, on any date prior to the full-purpose annexation
     7-21     conversion date established by the strategic partnership agreement.
     7-22     Land annexed for limited or full purposes under this section shall
     7-23     not be included in calculations prescribed by Section 43.055(a).
     7-24           (i)  A district that is negotiating for or that has adopted a
     7-25     strategic partnership agreement shall not incur additional debt,
     7-26     liabilities, or obligations, to construct additional utility
     8-10           þ_(k)  A municipality that has annexed a district for limited
     8-11     purposes under this section may impose a retail sales tax within
     8-12     the boundaries of the district.
     8-13           (l)  An agreement or a decision made under this section and
     8-14     an action taken under the agreement by the parties to the agreement
     8-15     are not subject to approval or an appeal brought under the Water
     8-16     Code unless it is an appeal of a utility rate charged by a
     8-17     municipality to customers outside the corporate boundaries of the
     8-18     municipality.
     8-19           (m)  A municipality that may annex a district for limited
     8-20     purposes to implement a strategic partnership agreement under this
     8-21     section shall not annex for full purposes any territory within a
     8-22     district created pursuant to a consent agreement with that
     8-23     municipality executed before August 27, 1979.  The prohibition on
     8-24     annexation established by this subsection shall expire on
     8-25     September 1, 1997, or on the date on or before which the
     8-26     municipality and any district may have separately agreed that
     9-10     by adding Article 1010a to read as follows:
     9-11           þ_Art. 1010a.  DEVELOPMENT REGULATION
     9-12           Sec. 1.  This article applies only to a home-rule
     9-13     municipality that:
     9-14                 (1)  has a charter provision allowing for
     9-15     limited-purpose annexation; and
     9-16                 (2)  has annexed territory for a limited purpose.
     9-17           Sec. 2.  In this article:
     9-18                 (1)  "Affected area" means an area that is:
     9-19                       (A)  within a municipality or a municipality's
     9-20     extraterritorial jurisdiction;
     9-21                       (B)  within a county other than the county in
     9-22     which a majority of the territory of the municipality is located;
     9-23                       (C)  within the boundaries of one or more school
     9-24     districts other than the school district in which a majority of the
     9-25     territory of the municipality is located; and
     9-26                       (D)  within the area of or within 1,500 feet of
     10-10    6674b, Vernon's Texas Civil Statutes).
     10-11          Sec. 3.  (a)  A municipality may not deny, limit, delay, or
     10-12    condition the use or development of land, any part of which is
     10-13    within an affected area, because of:
     10-14                (1)  traffic or traffic operations that would result
     10-15    from the proposed use or development of the land; or
     10-16                (2)  the effect that the proposed use or development of
     10-17    the land would have on traffic or traffic operations.
     10-18          (b)  In this section, an action to deny, limit, delay, or
     10-19    condition the use or development of land includes a decision or
     10-20    action by the governing body of the municipality or a commission,
     10-21    board, department, agency, office, or employee of the municipality
     10-22    related to zoning, subdivision, site planning, the construction or
     10-23    building permit process, or any other municipal process, approval,
     10-24    or permit.
     10-25          (c)  This article does not prevent a municipality from
     10-26    exercising its authority to require the dedication of right-of-way.
     11-10    authority of certain municipalities to regulate the development or
     11-11    use of land within certain affected areas.
     11-12          (3)  Subdivision (1), Senate Rule 12.03, is suspended to
     11-13    permit the committee to change the text of Subdivision (1),
     11-14    Subsection (c), Section 43.203, Local Government Code, to read as
     11-15    follows:
     11-16                (1)  the district's status is automatically altered
     11-17    from full-purpose annexation to limited-purpose annexation for a
     11-18    period of not less than 10 years, beginning January 1 of the year
     11-19    following the date of the submission of a petition, unless the
     11-20    voters of the district have approved the dissolution of the
     11-21    district through an election authorized by this section; and
     11-22          Explanation:  This change is necessary to clarify the
     11-23    procedure for altering annexation status.
     11-24          (4)  Subdivision (1), Senate Rule 12.03, is suspended to
     11-25    permit the committee to change the text of Subsection (g), Section
     11-26    43.203, Local Government Code, to read as follows:
     12-10                                 Resolution was adopted by the Senate
     12-11                                 on May 27, 1995, by the following
     12-12                                 vote:  Yeas 31, Nays 0.
     12-13                                 ______________________________________
     12-14                                         Secretary of the Senate