By Gallegos, et al. S.B. No. 727
Substitute the following for S.B. No. 727:
By Bosse C.S.S.B. No. 727
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 CERTAIN DISTRICTS AND
1-8 OTHER DEFINED AREAS IN EXTRATERRITORIAL AREA AND MUNICIPALITIES.
1-9 (a) It is the intent of the legislature to enable certain
1-10 conservation and reclamation districts and other organizations
1-11 representing defined areas in extraterritorial areas and
1-12 municipalities to negotiate mutually agreeable alternatives to
1-13 annexation. In furtherance of that goal, this section authorizes
1-14 districts and local organizations and municipalities to execute
1-15 mutually agreeable contracts providing for the joint funding of
1-16 services in lieu of annexation. A municipality to which this
1-17 section applies is not subject to any mandatory provisions of
1-18 Section 43.0751.
1-19 (b) For purposes of this section:
1-20 (1) "District" means a municipal utility district,
1-21 water control and improvement district, or other district created
1-22 under either Section 59, Article XVI, or Section 52, Article III,
1-23 Texas Constitution.
1-24 (2) "Municipality" means a municipality with a
2-1 population of more than 1.6 million.
2-2 (3) "Local organization" means a community
2-3 association, homeowners association, or other formally organized
2-4 nonprofit corporation or association representing a clearly defined
2-5 geographical area in the extraterritorial jurisdiction of the
2-6 municipality.
2-7 (4) "Services" means services delivered within the
2-8 area of a district or services provided by a municipality for the
2-9 benefit of persons outside the municipality.
2-10 (c) Either the mayor of a municipality or the governing body
2-11 of a district may submit a written request to the other to initiate
2-12 negotiations under this section. To initiate negotiations, the
2-13 recipient must respond affirmatively to the request to negotiate in
2-14 writing within 30 days of delivery. The request or the response
2-15 may condition negotiations upon the agreement of other districts to
2-16 negotiate.
2-17 (d) On electing to enter into negotiations with the mayor,
2-18 the board of directors shall appoint a designee from the board to
2-19 negotiate with the mayor.
2-20 (e) On initiation of negotiations, the mayor and the board's
2-21 designee shall negotiate in good faith. The mayor and the board's
2-22 designee may, in their discretion, agree to a written contract that
2-23 guarantees the continuation of the extraterritorial status of the
2-24 district and its immunity from annexation by the municipality for a
2-25 period not to exceed 15 years; a provision for revenue sharing
2-26 between the municipality and the district that compensates the
2-27 municipality for police protection, construction or maintenance of
3-1 water or wastewater facilities, construction or maintenance of
3-2 roads or streets, parks, playgrounds, or other facility, building,
3-3 or service; and other terms, conditions and considerations that the
3-4 parties consider appropriate. If consented to by the district in
3-5 the agreement, the municipality shall also be authorized to impose
3-6 one or more of the following:
3-7 (1) impose the municipality's sales and use tax within
3-8 the boundaries of the district pursuant to the provisions of
3-9 Chapter 321, Tax Code;
3-10 (2) impose a property assessment as authorized, and
3-11 for the purposes described, in Chapter 372 and for the purpose of
3-12 achieving public service and cost-sharing equity between the area
3-13 within the district and the municipality; provided that a petition
3-14 is not required to establish the assessment. If an assessment is
3-15 imposed hereunder, the municipality is authorized to establish a
3-16 local government corporation within the district pursuant to
3-17 Subchapter D, Chapter 431, Transportation Code, for the purpose of
3-18 administering this assessment;
3-19 (3) a water fee surcharge sufficient to equalize water
3-20 rates within the district to those within the municipality; and
3-21 (4) the municipality's exercise within the boundaries
3-22 of the district powers provided in Subsection 2 of Article 1175,
3-23 Revised Civil Statutes, including without limitation the
3-24 enforcement of all franchising and right of way access requirements
3-25 and the collection of franchise fees from electric, gas,
3-26 telecommunications, and cable television providers, oil and gas
3-27 transmission or distribution pipelines, or other public utilities,
4-1 making use of streets, alleys or public ways within the district,
4-2 all on the same terms as if the district were included within the
4-3 municipality.
4-4 (f) The governing body of the municipality and the board of
4-5 a district may renew or extend a contract for successive periods
4-6 not to exceed 15 years each.
4-7 (g) If a municipality and a district enter into negotiations
4-8 under this section, the governing body of the municipality may not
4-9 initiate proceedings to annex the district under any other section
4-10 of this code until either the mayor or the district delivers to the
4-11 other a notice terminating negotiations or 12 months after the
4-12 initial request or petition for negotiation is made, whichever
4-13 shall last occur.
4-14 (h) Upon approval of the proposed contract by the governing
4-15 bodies of the municipality and the district, the municipality shall
4-16 publish a notice in a newspaper of general circulation in the
4-17 district summarizing the general terms of the contract. Unless the
4-18 municipality receives a petition signed by at least 10% of the
4-19 electors within the district within 30 days of publication
4-20 requesting an election, the contract shall be deemed final and
4-21 binding on both parties. If a petition is timely received, the
4-22 contract shall be submitted to the voters of the district for
4-23 approval on the next applicable uniform election date. If the
4-24 agreement is approved by a majority of those voting at such
4-25 election, the contract shall be binding on both the district and
4-26 the municipality.
4-27 (i) If a majority of the qualified voters voting in an
5-1 election required by this section does not approve the contract,
5-2 the result of the election may not be interpreted as a request for
5-3 annexation by the municipality.
5-4 (j) The municipality may enter into a contract as described
5-5 in this section with the governing body of a local organization on
5-6 behalf of the defined area in the municipality's extraterritorial
5-7 jurisdiction represented by the local organization, provided that,
5-8 on the next uniform election date, the contract is approved by a
5-9 majority of those voting at a special election held in the defined
5-10 area of the local organization. Subsection (g) shall not apply to
5-11 negotiations with a local organization under this section.
5-12 SECTION 2. Chapter 321.102, Tax Code, is amended by adding
5-13 Subsection (c-1) to read as follows:
5-14 (c-1) If the boundaries of a municipality in which the tax
5-15 imposed under this chapter are changed pursuant to Section
5-16 42.0441(e)(1), Local Government Code, the municipal secretary shall
5-17 send by United States registered or certified mail to the
5-18 comptroller a certified copy of the ordinance that changes the
5-19 municipality's boundaries and shows the effective date of the
5-20 boundary change. The ordinance must be accompanied by a map
5-21 clearly showing the added territory. The tax takes effect in the
5-22 added territory on the first day of the first calendar quarter
5-23 after the comptroller receives the ordinance and map.
5-24 SECTION 3. The importance of this legislation and the
5-25 crowded condition of the calendars in both houses create an
5-26 emergency and an imperative public necessity that the
5-27 constitutional rule requiring bills to be read on three several
6-1 days in each house be suspended, and this rule is hereby suspended.