1-1           By:  Gallegos                                    S.B. No. 858

 1-2           (In the Senate - Filed February 27, 1997; March 3, 1997, read

 1-3     first time and referred to Committee on Intergovernmental

 1-4     Relations; March 6, 1997, reported favorably by the following vote:

 1-5     Yeas 8, Nays 3; March 6, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the provision of municipal services and the creation of

 1-9     special municipal districts in areas annexed by certain

1-10     municipalities on or after December 1, 1996.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Chapter 43, Local Government Code, is amended by

1-13     adding Subchapters I and J to read as follows:

1-14              SUBCHAPTER I.  PROVISION OF MUNICIPAL SERVICES IN

1-15             AREAS ANNEXED BY CERTAIN MUNICIPALITIES ON OR AFTER

1-16                              DECEMBER 1, 1996

1-17           Sec. 43.231.  DEFINITIONS.  In this subchapter:

1-18                 (1)  "Annexed area" means a tract of contiguous

1-19     territory that is annexed on or after December 1, 1996, by a

1-20     municipality.

1-21                 (2)  "Municipality" means a municipality with a

1-22     population of more than 1.5 million.

1-23           Sec. 43.232.  PROVISION OF SERVICES TO ANNEXED AREA.  (a)  A

1-24     municipality shall provide services to an annexed area in

1-25     accordance with the requirements of Section 43.056.

1-26           (b)  A municipality may not provide fewer services or a lower

1-27     level of services in the area than were in existence in the area

1-28     immediately preceding the date of the annexation.

1-29           Sec. 43.233.  ENFORCEMENT.  (a)  A person residing in an

1-30     annexed area may enforce the requirements of Section 43.232 by

1-31     applying for a writ of mandamus.  In a mandamus proceeding, the

1-32     burden shall be on the municipality to show that the municipality

1-33     has not provided fewer services or a lower level of services in the

1-34     annexed area than were in existence in the area immediately

1-35     preceding the date of the annexation.

1-36           (b)  If the court issues the writ requested by a person

1-37     residing in an annexed area, the municipality shall pay the

1-38     person's costs and reasonable attorney's fees in bringing the

1-39     action.

1-40           (c)  A writ issued under this section must provide the

1-41     municipality the option of disannexing the area within 30 days.

1-42                SUBCHAPTER J.  CREATION OF SPECIAL MUNICIPAL

1-43         DISTRICTS IN AREAS ANNEXED BY CERTAIN MUNICIPALITIES ON OR

1-44                           AFTER DECEMBER 1, 1996

1-45           Sec. 43.261.  DEFINITIONS.  In this subchapter:

1-46                 (1)  "Annexed area" means a tract of contiguous

1-47     territory that is annexed by a municipality on or after December 1,

1-48     1996.

1-49                 (2)  "Municipality" means a municipality with a

1-50     population of more than 1.5 million.

1-51                 (3)  "Special municipal district" means an

1-52     instrumentality of a municipality that is sponsored by the

1-53     municipality under the authority of this subchapter.

1-54           Sec. 43.262.  HEARING ON CREATION OF A SPECIAL MUNICIPAL

1-55     DISTRICT.  (a)  The governing body of a municipality may on its own

1-56     motion or shall in response to a valid petition of one percent of

1-57     the registered voters of a proposed special municipal district or

1-58     50 such voters, whichever is less, call a public hearing on the

1-59     question of establishing a special municipal district within an

1-60     annexed area.

1-61           (b)  The governing body shall conduct the public hearing

1-62     within 30 days after adoption of its own motion or determination of

1-63     the validity of a petition.  Notice of the hearing shall be

1-64     published in a newspaper of general circulation in the annexed area

 2-1     not more than 10 days before the hearing.

 2-2           Sec. 43.263.  SPECIAL MUNICIPAL DISTRICT ELECTION.

 2-3     (a)  Following the public hearing, the governing body of the

 2-4     municipality may call an election to authorize the creation of the

 2-5     special municipal district and elect members of the district board

 2-6     if the governing body adopts an ordinance finding that the

 2-7     establishment of the district would be in the public interest.

 2-8           (b)  The governing body shall call the election within the

 2-9     area of the special municipal district not later than 60 days after

2-10     the adoption of an ordinance determining that the creation of the

2-11     district is in the public interest.  The election need not be

2-12     scheduled on a uniform election date established by state law.

2-13           (c)  The governing body shall by ordinance approve the ballot

2-14     for the election, which shall contain a proposition authorizing the

2-15     creation of the district and the election of initial members of the

2-16     district board.  The governing body shall by ordinance adopt rules

2-17     and procedures, consistent with the Election Code, for conducting

2-18     elections relating to districts to which this subchapter applies.

2-19           Sec. 43.264.  TERRITORY WITHIN SPECIAL MUNICIPAL DISTRICTS;

2-20     NAME OF DISTRICT.  (a)  A special municipal district may include

2-21     any contiguous territory within the boundaries of an annexed area.

2-22           (b)  A special municipal district shall be designated by a

2-23     name such as "Village of __________________," "________________

2-24     Subdivision," or any other name that is descriptive of the

2-25     district.

2-26           Sec. 43.265.  ARTICLES OF INCORPORATION AND BY-LAWS FOR

2-27     DISTRICTS.  (a)  The governing body of the municipality shall by

2-28     ordinance approve the articles of incorporation and by-laws for

2-29     each district established pursuant to this subchapter.

2-30           (b)  The by-laws for each district shall include provisions

2-31     specifying the qualifications, terms, and number of members of the

2-32     district board, provisions specifying staggered terms of office for

2-33     elected board members, and provisions establishing other procedures

2-34     for governance of the district and oversight of the district by the

2-35     governing body of the municipality, including the process and

2-36     procedures for changing the boundaries of the district after its

2-37     creation.

2-38           Sec. 43.266.  MUNICIPAL SERVICES AGREEMENT WITH DISTRICT.

2-39     (a)  The municipality and a district may enter into a municipal

2-40     services agreement under which the district agrees to provide

2-41     police, fire, park maintenance, recreation, solid waste, or other

2-42     services and to be compensated by the municipality for the actual

2-43     cost of services.  The municipality's service plan obligations

2-44     under Section 43.056 are deemed to be satisfied in full as to any

2-45     category of service once the district assumes the provision of that

2-46     category of service pursuant to a municipal services agreement.

2-47           (b)  The term of a municipal services agreement between a

2-48     district and a municipality may not exceed 15 years.

2-49           (c)  A municipal services agreement entered into pursuant to

2-50     this subchapter may not require the municipality to pay a district

2-51     any amount in excess of the district's actual costs to deliver

2-52     services under the agreement.

2-53           SECTION 2.  The importance of this legislation and the

2-54     crowded condition of the calendars in both houses create an

2-55     emergency and an imperative public necessity that the

2-56     constitutional rule requiring bills to be read on three several

2-57     days in each house be suspended, and this rule is hereby suspended,

2-58     and that this Act take effect and be in force from and after its

2-59     passage, and it is so enacted.

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