76R12638 E By Williams, Coleman, Woolley, et al. H.B. No. 2761 Substitute the following for H.B. No. 2761: By Hardcastle C.S.H.B. No. 2761 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the establishment of regional development agreements 1-3 between certain municipalities and special districts. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. It is the intent of the legislature that this Act 1-6 authorize, promote, and encourage interlocal governmental 1-7 efficiency and cooperation, make clear and expand the authority of 1-8 a municipality and a conservation and reclamation district located 1-9 in the extraterritorial jurisdiction of a municipality to negotiate 1-10 and enter into a mutually acceptable agreement in lieu of 1-11 annexation, and limit the power and authority of certain 1-12 municipalities to initiate and complete annexation proceedings 1-13 under certain circumstances. 1-14 SECTION 2. Subchapter D, Chapter 43, Local Government Code, 1-15 is amended by adding Section 43.0752 to read as follows: 1-16 Sec. 43.0752. REGIONAL DEVELOPMENT AGREEMENTS. (a) In this 1-17 section: 1-18 (1) "District" means a conservation and reclamation 1-19 district that is created or operating under Chapters 49 and 54, 1-20 Water Code, and that is located entirely within the boundaries of a 1-21 planned community and entirely within the extraterritorial 1-22 jurisdiction of a municipality. 1-23 (2) "Municipality" means a municipality with a 1-24 population of 1.6 million or more. 2-1 (3) "Planned community" means a planned community of 2-2 10,000 acres or more that is subject in whole or in part to a 2-3 restrictive covenant that contains an ad valorem based assessment 2-4 on real property used or to be used, in any part, to fund 2-5 governmental or quasi-governmental services and facilities within 2-6 and for the planned community. 2-7 (4) "Regional development agreement" means a contract 2-8 or agreement entered into under this section or in anticipation of 2-9 the passage of this section and any amendment, modification, 2-10 supplement, addition, renewal, or extension of the contract or 2-11 agreement or any proceeding relating to the contract or agreement. 2-12 (b) Notwithstanding any other contrary law or municipal 2-13 charter provision, the governing body of a municipality and the 2-14 governing body of one or more districts may enter into a regional 2-15 development agreement to further regional cooperation between the 2-16 municipality and the district. 2-17 (c) A regional development agreement may allow: 2-18 (1) any type of annexation of any part of the land in 2-19 the district to be deferred for a mutually agreeable period of 2-20 time; 2-21 (2) facilities or services to be provided to the land 2-22 within the district by any party to the agreement, including 2-23 optional, backup, emergency, mutual aid, or supplementary 2-24 facilities or services; 2-25 (3) payments to be made by the municipality to the 2-26 district or another person or by the district or another person to 2-27 the municipality for services provided to the district or 3-1 municipality; 3-2 (4) a procedure for requesting and receiving any form 3-3 of required consent or approval from the municipality; 3-4 (5) a district to issue bonds, notes, refunding bonds, 3-5 or other forms of indebtedness; 3-6 (6) the coordination of local, regional, and area-wide 3-7 planning; 3-8 (7) remedies for breach of the agreement; 3-9 (8) the modification, amendment, renewal, extension, 3-10 or termination of the agreement; 3-11 (9) any other district to join the agreement at any 3-12 time; 3-13 (10) third-party beneficiaries to be specifically 3-14 assigned rights or remedies under the agreement; and 3-15 (11) any other term to which the parties agree. 3-16 (d) A regional development agreement must be: 3-17 (1) in writing; 3-18 (2) approved by the governing body of the municipality 3-19 and the district; and 3-20 (3) recorded: 3-21 (A) in the real property records of any county 3-22 in which any part of a district that is party to the agreement is 3-23 located; and 3-24 (B) in any manner that complies with Subchapter 3-25 J, Chapter 49, Water Code. 3-26 (e) Another district may join or become a party to a 3-27 regional development agreement if the district complies with 4-1 Subsection (d). 4-2 (f) A regional development agreement does not need to 4-3 describe the land contained within the boundaries of a district 4-4 that is a party to the agreement. The agreement must be recorded 4-5 in the deed records of any county in which any land in the district 4-6 is located. 4-7 (g) A regional development agreement binds each party to the 4-8 agreement and each owner and future owner of land that is subject 4-9 to the agreement. If a party or landowner is excluded or removed 4-10 from an agreement, the removal or exclusion is effective on the 4-11 recordation requirement of Subsection (d). 4-12 (h) A regional development agreement may not require a 4-13 district to provide public services and facilities to a person to 4-14 whom the district is not otherwise authorized to provide services 4-15 or facilities or to make payments from any source from which the 4-16 district is not otherwise authorized to make payments. 4-17 (i) A district may contract with any person for services or 4-18 facilities to be provided at no cost to the district or for the 4-19 payment of funds by the person in support of a regional development 4-20 agreement. 4-21 (j) A regional development agreement and any action taken 4-22 under the agreement is not subject to any method of approval under 4-23 the Water Code or any method of appeal under the Water Code. 4-24 (k) Notwithstanding any defect, ambiguity, discrepancy, 4-25 invalidity, or unenforceability of a regional development agreement 4-26 that has been voluntarily entered into and fully executed by the 4-27 parties thereto, or any contrary law, common law doctrine, or 5-1 municipal charter provision, and for the duration of any annexation 5-2 deferral period established in the regional development agreement, 5-3 during which a district continues to perform its obligations under 5-4 the regional development agreement: 5-5 (1) Sections 42.023 and 42.041(b)-(e), Local 5-6 Government Code, do not apply to any land or owner of land within a 5-7 district that is a party to the regional development agreement; and 5-8 (2) the governing body of the municipality may not 5-9 include the area covered by the regional development agreement in a 5-10 municipal annexation plan and may not initiate or continue an 5-11 annexation proceeding relating to that area after the effective 5-12 date of this section. 5-13 (l) This section shall be liberally construed so as to give 5-14 effect to its legislative purposes and to sustain the validity of a 5-15 regional development agreement if the agreement was entered into 5-16 under or in anticipation of this section. 5-17 SECTION 3. An agreement entered into in anticipation of this 5-18 Act is not invalid because of the agreement's authorization, 5-19 execution, or delivery before the effective date of this Act. 5-20 SECTION 4. The legislature finds that there exists a public 5-21 necessity to authorize, promote, and encourage interlocal 5-22 governmental cooperation and efficiency and to make certain the law 5-23 governing the authority of municipalities and certain conservation 5-24 and reclamation districts to enter into mutually acceptable 5-25 agreements providing for the joint funding of services in lieu of 5-26 annexation. The public benefits and it furthers the legislative 5-27 goal of governmental efficiency and conservation and development of 6-1 the natural resources of the state to make certain that the 6-2 existing law facilitates regional development agreements. 6-3 SECTION 5. The importance of this legislation and the 6-4 crowded condition of the calendars in both houses create an 6-5 emergency and an imperative public necessity that the 6-6 constitutional rule requiring bills to be read on three several 6-7 days in each house be suspended, and this rule is hereby suspended, 6-8 and that this Act take effect and be in force from and after its 6-9 passage, and it is so enacted.