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. 2-60 * * * * *