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