Suspending limitations on conference committee
jurisdiction, S.B. 1396
By Barrientos S.R. No. 1289
74R14311 CAG-D
R E S O L U T I O N
1-1 BE IT RESOLVED by the Senate of the State of Texas, 74th
1-2 Legislature, Regular Session, 1995, That Senate Rule 12.03 be
1-3 suspended in part as provided by Senate Rule 12.08 to enable the
1-4 conference committee appointed to resolve the differences on Senate
1-5 Bill No. 1396 to consider and take action on the following matters:
1-6 (1) Senate Rule 12.03(4) is suspended to permit the
1-7 committee to add text in the form of Section 43.0751, Local
1-8 Government Code, to read as follows:
1-9 SECTION 1. Subchapter D, Chapter 43, Local Government Code,
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
2-1 the district is annexed for limited or full purposes by the
2-2 municipality.
2-3 (b) The governing bodies of a municipality and a district
2-4 shall negotiate and may enter into a written strategic partnership
2-5 agreement for the district. The governing bodies of the
2-6 municipality and the district shall evidence their intention to
2-7 negotiate such an agreement by resolution, each of which
2-8 resolutions shall specify an expiration date if the other governing
2-9 body fails to adopt a resolution under this section on or before
2-10 the specified date. The governing body of a municipality that has
2-11 evidenced its intention by unexpired resolution to enter into
2-12 negotiations with a district for an agreement under this section
2-13 may not initiate proceedings to annex the district under any other
2-14 section of this code prior to the expiration of two years after the
2-15 adoption date of the resolution unless the municipality has
2-16 previously instituted annexation proceedings in granting consent to
2-17 the creation of the district prior to January 1, 1995.
2-18 (c) A strategic partnership agreement shall not be effective
2-19 until adopted by the governing bodies of the municipality and the
2-20 district. The agreement shall be recorded in the deed records of
2-21 the county or counties in which the land included within the
2-22 district is located and shall bind each owner and each future owner
2-23 of land included within the district's boundaries on the date the
2-24 agreement becomes effective.
2-25 (d) Before the governing body of a municipality or a
2-26 district adopts a strategic partnership agreement, it shall conduct
2-27 two public hearings at which members of the public who wish to
3-1 present testimony or evidence regarding the proposed agreement
3-2 shall be given the opportunity to do so. Notice of public hearings
3-3 conducted by the governing body of a municipality under this
3-4 subsection shall be published in a newspaper of general circulation
3-5 in the municipality and in the district. The notice must be in the
3-6 format prescribed by Section 43.123(b) and must be published at
3-7 least once on or after the 20th day before each date. Notice of
3-8 public hearings conducted by the governing body of a district under
3-9 this subsection shall be given in accordance with the district's
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
3-27 affected district.
4-1 (f) A strategic partnership agreement may provide for the
4-2 following:
4-3 (1) limited-purpose annexation of the district under
4-4 the provisions of Subchapter F provided that the district shall
4-5 continue in existence during the period of limited-purpose
4-6 annexation;
4-7 (2) such amendments to the timing requirements of
4-8 Sections 43.123(d)(2) and 43.127(b) as may be necessary or
4-9 convenient to effectuate the purposes of the agreement;
4-10 (3) payments by the municipality to the district for
4-11 services provided by the district;
4-12 (4) annexation of any commercial property in a
4-13 district for full purposes by the municipality, notwithstanding any
4-14 other provision of this code or the Water Code, except for the
4-15 obligation of the municipality to provide, directly or through
4-16 agreement with other units of government, full provision of
4-17 municipal services to annexed territory, in lieu of any annexation
4-18 of residential property or payment of any fee on residential
4-19 property in lieu of annexation of residential property in the
4-20 district authorized by this subsection;
4-21 (5) a full-purpose annexation provision that specifies
4-22 one of the following:
4-23 (A) the date on which the land included within
4-24 the district's boundaries shall be converted from the
4-25 municipality's limited-purpose jurisdiction to its full-purpose
4-26 jurisdiction, provided that such date shall not be later than 10
4-27 years after the effective date of the strategic partnership
5-1 agreement; or
5-2 (B)(i) terms for payment of an annual fee to the
5-3 municipality by the district in lieu of full-purpose annexation,
5-4 the form in which each such payment must be tendered, a method of
5-5 calculating the fee, and the date by which each such payment must
5-6 be made; failure by a district to timely make an annual payment in
5-7 lieu of full-purpose annexation in the amount and form required by
5-8 a strategic partnership agreement shall be the only ground for
5-9 termination of the agreement with respect to annexation at the
5-10 option of the municipality;
5-11 (ii) to determine a reasonable fee to be
5-12 derived from residential property in a district, the municipality
5-13 or the district may request a cost-of-service study by an
5-14 independent third party agreeable to both parties if
5-15 cost-of-service data prepared by the municipality is not
5-16 acceptable. Both parties shall be equally responsible for the cost
5-17 of the study, which shall include an evaluation of the estimated
5-18 annual cost of providing municipal services to the residential
5-19 portion of the district over the next 10 years and the estimated
5-20 annual amount of ad valorem taxes from residential property the
5-21 city would receive on full-purpose annexation of the district over
5-22 the next 10 years. The fee shall not exceed the estimated annual
5-23 amount of residential ad valorem taxes that would be derived by
5-24 full-purpose annexation of the district, less the estimated annual
5-25 amount required to provide municipal services to the residential
5-26 property in the district if annexed for full purposes. A fee
5-27 determined through this methodology is subject to renegotiation
6-1 every 10 years at the request of either party to the agreement
6-2 following the same procedure used to set the fee in the original
6-3 agreement. This methodology does not apply to fees from commercial
6-4 property;
6-5 (6) conversion of the district to a limited district
6-6 including some or all of the land included within the boundaries of
6-7 the district, which conversion shall be effective on the
6-8 full-purpose annexation conversion date established under
6-9 Subdivision (5)(A);
6-10 (7) agreements existing between districts and
6-11 governmental bodies and private providers of municipal services in
6-12 existence on the date a municipality evidences its intention by
6-13 adopting a resolution to negotiate for a strategic partnership
6-14 agreement with the district shall be continued and provision made
6-15 for modifications to such existing agreements; and
6-16 (8) such other lawful terms that the parties consider
6-17 appropriate.
6-18 (g) A strategic partnership agreement that provides for the
6-19 creation of a limited district under Subsection (f)(6) shall
6-20 include provisions setting forth the following:
6-21 (1) the boundaries of the limited district;
6-22 (2) the functions of the limited district and the term
6-23 during which the limited district shall exist after full-purpose
6-24 annexation, which term may be renewed successively by the governing
6-25 body of the municipality, provided that no such original or renewed
6-26 term shall exceed 10 years;
6-27 (3) the name by which the limited district shall be
7-1 known; and
7-2 (4) the procedure by which the limited district may be
7-3 dissolved prior to the expiration of any term established under
7-4 Subdivision (2).
7-5 (h) On the full-purpose annexation conversion date set forth
7-6 in the strategic partnership agreement pursuant to Subsection
7-7 (f)(5)(A), the land included within the boundaries of the district
7-8 shall be deemed to be within the full-purpose boundary limits of
7-9 the municipality without the need for further action by the
7-10 governing body of the municipality. The full-purpose annexation
7-11 conversion date established by a strategic partnership agreement
7-12 may be altered only by mutual agreement of the district and the
7-13 municipality. However, nothing herein shall prevent the
7-14 municipality from terminating the agreement and instituting
7-15 proceedings to annex the district, on request by the governing body
7-16 of the district, on any date prior to the full-purpose annexation
7-17 conversion date established by the strategic partnership agreement.
7-18 Land annexed for limited or full purposes under this section shall
7-19 not be included in calculations prescribed by Section 43.055(a).
7-20 (i) A district that is negotiating for or that has adopted a
7-21 strategic partnership agreement shall not incur additional debt,
7-22 liabilities, or obligations, to construct additional utility
7-23 facilities, or sell or otherwise transfer property without prior
7-24 approval of the municipality, which approval shall not be
7-25 unreasonably withheld or delayed. An action taken in violation of
7-26 this subsection is void.
7-27 (j) Except as limited by this section or the terms of a
8-1 strategic partnership agreement, a district that has been annexed
8-2 for limited purposes by a municipality and a limited district shall
8-3 have and may exercise all functions, powers, and authority
8-4 otherwise vested in a district.
8-5 (k) A municipality that has annexed a district for limited
8-6 purposes under this section may impose a retail sales tax within
8-7 the boundaries of the district.
8-8 (l) An agreement or a decision made under this section and
8-9 an action taken under the agreement by the parties to the agreement
8-10 are not subject to approval or an appeal brought under the Water
8-11 Code unless it is an appeal of a utility rate charged by a
8-12 municipality to customers outside the corporate boundaries of the
8-13 municipality.
8-14 (m) A municipality that may annex a district for limited
8-15 purposes to implement a strategic partnership agreement under this
8-16 section shall not annex for full purposes any territory within a
8-17 district created pursuant to a consent agreement with that
8-18 municipality executed before August 27, 1979. The prohibition on
8-19 annexation established by this subsection shall expire on
8-20 September 1, 1997, or on the date on or before which the
8-21 municipality and any district may have separately agreed that
8-22 annexation would not take place whichever is later.
8-23 Explanation: This change is necessary to clarify the
8-24 authority of a municipality and certain municipal utility districts
8-25 or water control and improvement districts to enter into a
8-26 strategic partnership agreement.
8-27 (2) Senate Rule 12.03(4) is suspended to permit the
9-1 committee to add text in the form of Article 1010a, Revised
9-2 Statutes, to read as follows:
9-3 SECTION 3. Chapter 4, Title 28, Revised Statutes, is amended
9-4 by adding Article 1010a to read as follows:
9-5 Art. 1010a. DEVELOPMENT REGULATION
9-6 Sec. 1. This article applies only to a home-rule
9-7 municipality that:
9-8 (1) has a charter provision allowing for
9-9 limited-purpose annexation; and
9-10 (2) has annexed territory for a limited purpose.
9-11 Sec. 2. In this article:
9-12 (1) "Affected area" means an area that is:
9-13 (A) within a municipality or a municipality's
9-14 extraterritorial jurisdiction;
9-15 (B) within a county other than the county in
9-16 which a majority of the territory of the municipality is located;
9-17 (C) within the boundaries of one or more school
9-18 districts other than the school district in which a majority of the
9-19 territory of the municipality is located; and
9-20 (D) within the area of or within 1,500 feet of
9-21 the boundary of an assessment road district in which there are two
9-22 state highways.
9-23 (2) "Assessment road district" means a road district
9-24 that has issued refunding bonds and that has imposed assessments on
9-25 each parcel of land under Section 4.438A, County Road and Bridge
9-26 Act (Article 6702-1, Vernon's Texas Civil Statutes).
9-27 (3) "State highway" means a highway that is part of
10-1 the state highway system under Section 2, Chapter 186, General
10-2 Laws, Acts of the 39th Legislature, Regular Session, 1925 (Article
10-3 6674b, Vernon's Texas Civil Statutes).
10-4 Sec. 3. (a) A municipality may not deny, limit, delay, or
10-5 condition the use or development of land, any part of which is
10-6 within an affected area, because of:
10-7 (1) traffic or traffic operations that would result
10-8 from the proposed use or development of the land; or
10-9 (2) the effect that the proposed use or development of
10-10 the land would have on traffic or traffic operations.
10-11 (b) In this section, an action to deny, limit, delay, or
10-12 condition the use or development of land includes a decision or
10-13 action by the governing body of the municipality or a commission,
10-14 board, department, agency, office, or employee of the municipality
10-15 related to zoning, subdivision, site planning, the construction or
10-16 building permit process, or any other municipal process, approval,
10-17 or permit.
10-18 (c) This article does not prevent a municipality from
10-19 exercising its authority to require the dedication of right-of-way.
10-20 Sec. 4. (a) A provision in any covenant or agreement
10-21 relating to land in an affected area made before, on, or after the
10-22 effective date of this article that would have the effect of
10-23 denying, limiting, delaying, or conditioning the use or development
10-24 of the land because of its effect on traffic or traffic operations
10-25 may not be enforced by a municipality.
10-26 (b) This article controls over any other law relating to
10-27 municipal regulation of land use or development based on traffic.
11-1 Explanation: This change is necessary to clarify the
11-2 authority of certain municipalities to regulate the development or
11-3 use of land within certain affected areas.
11-4 (3) Senate Rule 12.03(1) is suspended to permit the
11-5 committee to change the text of Section 43.203(c)(1), Local
11-6 Government Code, to read as follows:
11-7 (1) the district's status is automatically altered
11-8 from full-purpose annexation to limited-purpose annexation for a
11-9 period of not less than 10 years, beginning January 1 of the year
11-10 following the date of the submission of a petition, unless the
11-11 voters of the district have approved the dissolution of the
11-12 district through an election authorized by this section; and
11-13 Explanation: This change is necessary to clarify the
11-14 procedure for altering annexation status.
11-15 (4) Senate Rule 12.03(1) is suspended to permit the
11-16 committee to change the text of Section 43.203(g), Local Government
11-17 Code, to read as follows:
11-18 (g) This section does not allow a change in annexation
11-19 status for land or facilities in a district to which the
11-20 municipality granted a property tax abatement before September 1,
11-21 1995.
11-22 Explanation: This change is necessary to clarify the types
11-23 of land or facilities that may have a change in annexation status.