Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Woolley                                      H.B. No. 2107

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the provision of municipal services and the creation of

 1-3     special municipal districts in areas annexed on or after December

 1-4     1, 1996, by certain municipalities.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Chapter 43, Local Government Code is amended to

 1-7     add Subchapters I and J to read as follows:

 1-8                                SUBCHAPTER I

 1-9                     PROVISION OF MUNICIPAL SERVICES IN

1-10                          AREAS ANNEXED BY CERTAIN

1-11                         MUNICIPALITIES ON OR AFTER

1-12                              DECEMBER 1, 1996

1-13           Sec. 43.204.  DEFINITIONS.  In this subchapter:

1-14                 (1)  "Annexed area" means a tract of contiguous

1-15     territory that is annexed on or after December 1, 1996, by a

1-16     municipality.

1-17                 (2)  "Municipality" means a municipality with a

1-18     population of more than 1.5 million.

1-19           Sec. 43.205.  PROVISION OF SERVICES TO ANNEXED AREA.  (a)  A

1-20     municipality shall provide services to an annexed area in

1-21     accordance with the requirements of Section 43.056, Local

1-22     Government Code.

1-23           (b)  A municipality may not provide fewer services or a lower

1-24     level of services in the area than were in existence in the area

 2-1     immediately preceding the date of the annexation.

 2-2           Sec. 43.206.  ENFORCEMENT.  (a)  A person residing in an

 2-3     annexed area may enforce the requirements of Section 2 of this

 2-4     subchapter by applying for a writ of mandamus.  In a mandamus

 2-5     proceeding, the burden shall be on the municipality to show that

 2-6     the municipality has not provided fewer services or a lower level

 2-7     of services in the annexed area than were in existence in the area

 2-8     immediately preceding the date of the annexation.

 2-9           (b)  If the court issues the writ requested by a person

2-10     residing in an annexed area, the municipality shall pay the

2-11     person's costs and reasonable attorney's fees in bringing the

2-12     action.

2-13           (c)  A writ issued under this section must provide the

2-14     municipality the option of disannexing the area within 30 days.

2-15                                SUBCHAPTER J

2-16                        CREATION OF SPECIAL MUNICIPAL

2-17                             DISTRICTS IN AREAS

2-18                   ANNEXED BY CERTAIN MUNICIPALITIES ON OR

2-19                           AFTER DECEMBER 1, 1996

2-20           Sec. 43.207.  DEFINITIONS.  In this subchapter:

2-21                 (1)  "Annexed area" means a tract of contiguous

2-22     territory that is annexed on or after December 1, 1996, by a

2-23     municipality.

2-24                 (2)  "Municipality" means a municipality with a

2-25     population of more than 1.5 million.

2-26                 (3)  "Special municipal district" means an

2-27     instrumentality of a municipality that is sponsored by the

2-28     municipality under the authority of this subchapter.

2-29           Sec. 43.208.  HEARING ON CREATION OF A SPECIAL MUNICIPAL

2-30     DISTRICT.  (a)  The governing body of a municipality may, on its

 3-1     own motion, or shall, in response to a valid petition of 1% of the

 3-2     registered voters of a proposed special municipal district, or 50

 3-3     such voters, whichever is less, call a public hearing on the

 3-4     question of establishing a special municipal district within an

 3-5     annexed area.

 3-6           (b)  The governing body shall conduct the public hearing

 3-7     within 30 days after adoption of its own motion or determination of

 3-8     the validity of a petition.  Notice of the hearing shall be

 3-9     published in a newspaper of general circulation in the annexed area

3-10     not more than ten days before the hearing.

3-11           Sec. 43.209.  SPECIAL MUNICIPAL DISTRICT ELECTION.  (a)

3-12     Following the public hearing, the governing body may call an

3-13     election to authorize the creation of the special municipal

3-14     district and elect members of the district board, if the governing

3-15     body adopts an ordinance finding that the establishment of the

3-16     district would be in the public interest.

3-17           (b)  The governing body shall call the election within the

3-18     area of the special municipal district not later than 60 days after

3-19     the adoption of an ordinance determining that the creation of the

3-20     district is in the public interest.  The election need not be

3-21     scheduled on a uniform election date established by state law.

3-22           (c)  The governing body shall by ordinance approve the ballot

3-23     for the election, which shall contain a proposition authorizing the

3-24     creation of the district and the election of initial members of the

3-25     district board.  The governing body shall adopt by ordinance rules

3-26     and procedures, consistent with the Texas Election Code, for

3-27     conducting elections relating to districts to which this subchapter

3-28     is applicable.

3-29           Sec. 43.210.  TERRITORY WITHIN SPECIAL MUNICIPAL DISTRICTS;

3-30     NAME OF DISTRICT.  (a)  A special municipal district may include

 4-1     any contiguous territory within the boundaries of an annexed area.

 4-2           (b)  A special municipal district shall be designated by a

 4-3     name, such as "Village of _________," "_________ Subdivision," or

 4-4     any other name that is descriptive of the district.

 4-5           Sec. 43.211.  ARTICLES OF INCORPORATION AND BY-LAWS FOR

 4-6     DISTRICTS.  (a)  The governing body of the municipality shall by

 4-7     ordinance approve the articles of incorporation and by-laws for

 4-8     each district established pursuant to this subchapter.

 4-9           (b)  The by-laws for each district shall include provisions

4-10     specifying the qualifications for, terms and number of members of

4-11     the district board, provisions specifying staggered terms of office

4-12     for elected board members, and provisions establishing other

4-13     procedures for governance of the district and oversight of the

4-14     district by the governing body of the municipality, including the

4-15     process and procedures for changing the boundaries of the district

4-16     after its creation.

4-17           Sec. 43.212.  MUNICIPAL SERVICES AGREEMENT WITH DISTRICT.

4-18     (a)  The municipality and a district may enter into a municipal

4-19     services agreement under which the district agrees to provide

4-20     police, fire, park maintenance, recreation, solid waste or other

4-21     services, and to be compensated by the municipality for the actual

4-22     cost of services.  The municipality's service plan obligations

4-23     under Section 43.056, Local Government Code, are deemed to be

4-24     satisfied in full as to any category of service once the district

4-25     assumes the provision of that category of service pursuant to a

4-26     municipal services agreement.

4-27           (b)  The term of a municipal services agreement between a

4-28     district and a municipality may not exceed fifteen years.

4-29           (c)  A municipal services agreement entered into pursuant to

4-30     this subchapter may not require the municipality to pay a district

 5-1     any amount in excess of the district's actual costs to deliver

 5-2     services under the agreement.

 5-3           SECTION 2.  The importance of this legislation and the

 5-4     crowded condition of the calendars in both houses create an

 5-5     emergency and an imperative public necessity that the

 5-6     constitutional rule requiring bills to be read on three several

 5-7     days in each house be suspended, and this rule is hereby suspended,

 5-8     and that this Act take effect and be in force from and after its

 5-9     passage, and it is so enacted.