Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Woolley H.B. No. 2106
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to contracts between municipal utility districts located
1-3 in extraterritorial areas and municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 42, Local Government Code,
1-6 is amended by adding Section 42.0441 to read as follows:
1-7 Sec. 42.0441. JOINT AGREEMENTS BETWEEN MUNICIPAL UTILITY
1-8 DISTRICTS IN EXTRATERRITORIAL AREAS AND MUNICIPALITIES. (a) It is
1-9 the intent of the legislature to enable municipal utility districts
1-10 in extraterritorial areas and municipalities to negotiate
1-11 mutually-agreeable alternatives to annexation. In furtherance of
1-12 that goal, this section authorizes municipal utility districts and
1-13 municipalities to execute mutually-agreeable contracts providing
1-14 for the joint funding of services in lieu of annexation.
1-15 (b) For purposes of this section:
1-16 (1) "District" means a municipal utility district,
1-17 water control and improvement district, or other district created
1-18 under Article XVI, Section 59 of the Texas Constitution.
1-19 (2) "Municipality" means a municipality over 1.6
1-20 million population.
1-21 (3) "Services" means services delivered within the
1-22 area of a district or services provided by a municipality for the
1-23 benefit of persons outside the municipality.
1-24 (c) The mayor of a municipality may enter into negotiations
2-1 with the board of directors of one or more districts located in the
2-2 municipality's extraterritorial jurisdiction. Notice of the
2-3 mayor's request to initiate negotiations shall be submitted to the
2-4 board of the district. A district may in its discretion agree to
2-5 enter into negotiations with the mayor.
2-6 (d) Upon electing to enter into negotiations with the mayor,
2-7 the board of directors shall appoint a designee from the board to
2-8 negotiate with the mayor.
2-9 (e) The mayor of a municipality shall enter into
2-10 negotiations with the board of a district located in the
2-11 municipality's extraterritorial jurisdiction upon submission of a
2-12 petition approved by a majority of the members of the board. The
2-13 mayor shall enter into negotiations with the board not later than
2-14 30 days after a valid petition is filed with the mayor.
2-15 (f) Upon initiation of negotiations, the mayor and the
2-16 board's designee shall negotiate in good faith. The mayor and the
2-17 board's designee may, in their discretion, agree to a written
2-18 contract that includes one or more of the following options:
2-19 (1) a provision that guarantees the continuation of
2-20 the extraterritorial status of the defined area and its immunity
2-21 from annexation by the municipality for a period not to exceed 15
2-22 years;
2-23 (2) a provision for revenue-sharing between the
2-24 municipality and the district that compensates for police
2-25 protection, fire protection, construction or maintenance of water
2-26 or wastewater facilities, construction or maintenance of roads or
2-27 streets, parks, playgrounds, or any other facility, building or
2-28 service;
2-29 (3) a provision that imposes the municipality's sales
2-30 and excise tax within the boundaries of the district, pursuant to
3-1 the provisions of Chapter 321 of the Tax Code;
3-2 (4) a provision that imposes a property assessment (as
3-3 authorized under Chapter 372, Local Government Code) for the
3-4 purpose of achieving public service and cost sharing equity between
3-5 the area within the district and property located within the
3-6 boundaries of the municipality. If such assessment is imposed by
3-7 mutual agreement, the municipality is authorized to establish a
3-8 local government corporation within the district pursuant to
3-9 Subchapter D, Chapter 431, Transportation Code, for the purpose of
3-10 administrating said assessment;
3-11 (5) a provision imposing a water and sewer surcharge;
3-12 or
3-13 (6) provisions that include other terms, conditions
3-14 and considerations that the parties consider appropriate.
3-15 (g) The governing body of the municipality and the board of
3-16 a district may renew or extend a contract for successive periods
3-17 not to exceed 15 years.
3-18 (h) A contract agreed to by the mayor of a municipality and
3-19 the board of a district shall be submitted to the governing body of
3-20 the municipality and the board of the district for final approval.
3-21 Upon approval by the governing body of the municipality and a
3-22 majority of members of the board of the district, the contract
3-23 shall be deemed finally approved and binding on both parties.
3-24 SECTION 2. Chapter 321.102, Tax Code, is amended by adding a
3-25 new Subsection (c-1) to read as follows:
3-26 (c-1) If the boundaries of a municipality in which the tax
3-27 imposed under this chapter are changed pursuant to Subchapter (C),
3-28 Chapter 42, Sec. 42.0441(e)(2), Local Government Code, the
3-29 municipal secretary shall send by United States registered or
3-30 certified mail to the controller a certified copy of the ordinance
4-1 that changes the municipality's boundaries and shows the effective
4-2 date of the boundary change. The ordinance must be accompanied by
4-3 a map clearly showing the added territory. The tax takes effect in
4-4 the added territory on the first day of the first calendar quarter
4-5 after the comptroller receives the ordinance and map.
4-6 SECTION 3. The importance of this legislation and the
4-7 crowded condition of the calendars in both houses create an
4-8 emergency and an imperative public necessity that the
4-9 constitutional rule requiring bills to be read on three several
4-10 days in each house be suspended, and this rule is hereby suspended.