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