By Lindsay S.B. No. 1399
75R9017 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to strategic partnerships for the continuation of certain
1-3 water or municipal districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 43.0751, Local Government Code, is
1-6 amended by amending Subsections (b), (f), and (m) to read as
1-7 follows:
1-8 (b) The governing bodies of a municipality and a district
1-9 shall negotiate and shall, at the request of the district, [may]
1-10 enter into a written strategic partnership agreement for the
1-11 district. The governing bodies of the municipality and the
1-12 district shall evidence their intention to negotiate such an
1-13 agreement by resolution, each of which resolutions shall specify an
1-14 expiration date if the other governing body fails to adopt a
1-15 resolution under this section on or before the specified date. The
1-16 governing body of a municipality that has evidenced its intention
1-17 by unexpired resolution to enter into negotiations with a district
1-18 for an agreement under this section may not initiate proceedings to
1-19 annex the district under any other section of this code prior to
1-20 the expiration of two years after the adoption date of the
1-21 resolution unless the municipality has previously instituted
1-22 annexation proceedings in granting consent to the creation of the
1-23 district prior to January 1, 1995.
1-24 (f) A strategic partnership agreement may provide for the
2-1 following:
2-2 (1) limited-purpose annexation of the district under
2-3 the provisions of Subchapter F provided that the district shall
2-4 continue in existence during the period of limited-purpose
2-5 annexation;
2-6 (2) such amendments to the timing requirements of
2-7 Sections 43.123(d)(2) and 43.127(b) as may be necessary or
2-8 convenient to effectuate the purposes of the agreement;
2-9 (3) payments by the municipality to the district for
2-10 services provided by the district;
2-11 (4) annexation of any commercial property in a
2-12 district for full purposes by the municipality, notwithstanding any
2-13 other provision of this code or the Water Code, except for the
2-14 obligation of the municipality to provide, directly or through
2-15 agreement with other units of government, full provision of
2-16 municipal services to annexed territory, in lieu of any annexation
2-17 of residential property or payment of any fee on residential
2-18 property in lieu of annexation of residential property in the
2-19 district authorized by this subsection;
2-20 (5) a full-purpose annexation provision that specifies
2-21 one of the following:
2-22 (A) the date on which the land included within
2-23 the district's boundaries shall be converted from the
2-24 municipality's limited-purpose jurisdiction to its full-purpose
2-25 jurisdiction, provided that such date shall not be later than 10
2-26 years after the effective date of the strategic partnership
2-27 agreement; or
3-1 (B)(i) terms for payment of an annual fee to the
3-2 municipality by the district in lieu of full-purpose annexation,
3-3 the form in which each such payment must be tendered, a method of
3-4 calculating the fee, and the date by which each such payment must
3-5 be made; failure by a district to timely make an annual payment in
3-6 lieu of full-purpose annexation in the amount and form required by
3-7 a strategic partnership agreement shall be the only ground for
3-8 termination of the agreement with respect to annexation at the
3-9 option of the municipality;
3-10 (ii) to determine a reasonable fee to be
3-11 derived from residential property in a district, the municipality
3-12 or the district may request a cost-of-service study by an
3-13 independent third party agreeable to both parties if
3-14 cost-of-service data prepared by the municipality is not
3-15 acceptable. Both parties shall be equally responsible for the cost
3-16 of the study, which shall include an evaluation of the estimated
3-17 annual cost of providing municipal services to the residential
3-18 portion of the district over the next 10 years and the estimated
3-19 annual amount of ad valorem taxes from residential property the
3-20 city would receive on full-purpose annexation of the district over
3-21 the next 10 years. The fee shall not exceed the estimated annual
3-22 amount of residential ad valorem taxes that would be derived by
3-23 full-purpose annexation of the district, less the estimated annual
3-24 amount required to provide municipal services to the residential
3-25 property in the district if annexed for full purposes. A fee
3-26 determined through this methodology is subject to renegotiation
3-27 every five [10] years at the request of either party to the
4-1 agreement following the same procedure used to set the fee in the
4-2 original agreement. This methodology does not apply to fees from
4-3 commercial property;
4-4 (6) conversion of the district to a limited district
4-5 including some or all of the land included within the boundaries of
4-6 the district, which conversion shall be effective on the
4-7 full-purpose annexation conversion date established under
4-8 Subdivision (5)(A);
4-9 (7) agreements existing between districts and
4-10 governmental bodies and private providers of municipal services in
4-11 existence on the date a municipality evidences its intention by
4-12 adopting a resolution to negotiate for a strategic partnership
4-13 agreement with the district shall be continued and provision made
4-14 for modifications to such existing agreements; and
4-15 (8) such other lawful terms that the parties consider
4-16 appropriate.
4-17 (m) A municipality shall [that may] annex a district for
4-18 limited purposes to implement a strategic partnership agreement
4-19 before a municipality annexes for full purposes [under this section
4-20 shall not annex for full purposes] any territory within a district
4-21 created pursuant to a consent agreement with that municipality
4-22 executed before August 27, 1979. The prohibition on annexation
4-23 established by this subsection shall expire on September 1, 1999
4-24 [1997], or on the date on or before which the municipality and any
4-25 district may have separately agreed that annexation would not take
4-26 place whichever is later.
4-27 SECTION 2. This Act takes effect September 1, 1997.
5-1 SECTION 3. The importance of this legislation and the
5-2 crowded condition of the calendars in both houses create an
5-3 emergency and an imperative public necessity that the
5-4 constitutional rule requiring bills to be read on three several
5-5 days in each house be suspended, and this rule is hereby suspended.