HBA-ALS H.B. 2761 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2761 By: Williams Land & Resource Management 4/5/1999 Introduced BACKGROUND AND PURPOSE The Woodlands is a large master planned community located in Montgomery County in the extraterritorial jurisdiction (ETJ) of the City of Houston. Because the original developer petitioned for inclusion in Houston's ETJ, The Woodlands has been developed with the oversight of the City of Houston Planning and Development Department for subdivision and thoroughfare standards, and the city's Department of Public Works and Engineering for utility development. The Woodlands is located upstream of the City of Houston's primary water reservoir, Lake Houston, but is not under the jurisdiction of the Harris-Galveston Subsidence District, which has been a primary agent for regional planning water resources in those two counties. The Woodlands utility districts have contracted for their own source of surface water with the San Jacinto River Authority. Because The Woodlands utility districts are not under the jurisdiction of a subsidence district, there is no authority governing the possible conversion of its water sources from well to surface water. To address this problem, the City of Houston and The Woodlands utility districts have proposed a contract which requires enabling legislation to become effective. Although such a contract would not normally require legislation, the proposed agreement includes a provision guaranteeing that The Woodlands utility districts will not be annexed by the City for twelve years, which must be authorized by state law. Because a district facing potential dissolution may have little incentive to undertake long-term planning and infrastructure development work, this provision is included to ensure that annexation will not result in dissolution of the districts during this twelve-year period. H.B. 2761 sets forth that certain municipalities and conservation and reclamation districts located in an extraterritorial jurisdiction may enter into written regional development agreements to further regional cooperation between districts. In addition, this bill sets forth the required and optional provisions of such an agreement and its recording requirements. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 43, Subchapter D, Local Government Code, by adding Section 43.0752, as follows: Sec. 43.0752. REGIONAL DEVELOPMENT AGREEMENTS. (a) Provides that it is the intent of the legislature to make certain and expand the authority of certain municipalities and conservation and reclamation districts that are located in an extraterritorial jurisdiction to negotiate and enter into mutually acceptable agreements in lieu of annexation. (b) Defines "municipality," "district," "planned community," and "regional development agreement." (c) Authorizes the governing body of a municipality and the governing body of one or more districts to enter into a regional development agreement to further regional cooperation between the district(s) and the municipality, notwithstanding any general or special law or any home rule charter provision to the contrary. Describes the types of provisions which may be included in such agreement. (d) Provides that a regional development agreement must be in writing and is prohibited from becoming effective until it is approved by the governing bodies of the municipality and the districts that are included as parties. Authorizes the subsequent joinder or addition of other districts as parties. Provides that, upon approval, a regional development agreement is binding on subsequent governing bodies of the districts included or added as parties and of the municipality. (e) Provides that a regional development agreement is not required to include a description of the lands contained within the boundaries of the districts included or added as parties, and is required to be recorded in the deed records of the county or counties in which the land is located. (f) Provides that, upon recordation, a regional development agreement and any proceedings evidencing the joinder or addition of one or more other districts as parties binds each present and future owner of land which is included within the districts included or added as parties. Provides that the future and present owners of added or excluded lands are be bound or released accordingly, upon compliance with the requirements for recordation included in Subchapter J, Chapter 49, Water Code (Annexation or Exclusion of Land). (g) Provides that Sections 42.023 (Reduction of Extraterritorial Jurisdiction) and Section 42.041(b)-(e) (Municipal Incorporation in Extraterritorial Jurisdiction), Local Government Code, are not applicable to any land or owner of land within a district included or added as parties to a regional development agreement during the period of deferral of annexation established in a regional development agreement, and requires a proceeding that is initiated pursuant to an agreement but is not completed prior to the effective date of this section to be suspended during such deferral period. (h) Prohibits this section from being construed to permit or require a district to provide public services and facilities or to make payment of public funds from sources not otherwise authorized by law. Authorizes a district, for specified consideration, to contract with a person to provide a service or facility or the payment of funds by the person, at no cost to the district, in furtherance of a regional development agreement to which the district is a party. (i) Provides that a regional development agreement and any action taken by the parties pursuant to such an agreement are not subject to approval or an appeal brought under the Water Code. (j) Requires that this section be liberally construed so as to give effect to its legislative purposes and to sustain the validity of regional development agreements, whether entered into pursuant to or in anticipation of the authority granted by this section. SECTION 2. Makes application of this Act retroactive. SECTION 3. Provides that this Act is intended as remedial legislation to facilitate and to relieve any uncertainty under existing law as to the authority of certain municipalities and districts to enter into regional development agreements. SECTION 4. Provides that the legislature finds that a public necessity exists to make certain the law governing the authority of municipalities and certain conservation and reclamation districts to enter into mutually acceptable agreements providing for the joint funding of services in lieu of annexation. SECTION 5. Provides that the public benefits and the furtherance of the legislative goal of conservation and development of the natural resources of the state to be derived from making certain the existing law so as to facilitate regional development agreements. SECTION 6.Emergency clause. Effective date: 90 days after adjournment.