By Williams H.B. No. 2761 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 amending Chapter 43, Subchapter D, Local Government Code, by adding 1-3 Section 43.0752 relating to the authority of certain districts and 1-4 municipalities to enter into regional development agreements and 1-5 related agreements; containing legislative findings; and declaring 1-6 an emergency. 1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-8 SECTION 1. That Chapter 43, Subchapter D, Local Government 1-9 Code, is amended by adding Section 43.0752 as follows: 1-10 Sec. 43.0752. REGIONAL DEVELOPMENT AGREEMENTS. (a) It is 1-11 the intent of the legislature to make certain and expand the 1-12 authority of certain municipalities and conservation and 1-13 reclamation districts located in an extraterritorial jurisdiction 1-14 to negotiate and enter into mutually acceptable agreements in lieu 1-15 of annexation. 1-16 (b) In this section: 1-17 (1) "Municipality" means a home rule municipality 1-18 having a population of (,) 1,600,000 or more. 1-19 (2) "District" means a conservation and reclamation 1-20 district created or operating pursuant to Chapters 49 and 54, Water 1-21 Code and situated entirely within a planned community and entirely 2-1 within the extraterritorial jurisdiction of a municipality. 2-2 (3) "Planned community" means a planned community of 2-3 10,000 acres or more that is subject, in whole or in part, to 2-4 restrictive covenants containing ad valorem based assessments on 2-5 real property used or to be used, in whole or in part, to fund 2-6 governmental or quasi-governmental services and facilities within 2-7 and for the planned community. 2-8 (4) "Regional development agreement" means a contract 2-9 or agreement entered into pursuant to or in anticipation of the 2-10 authority granted by this section, and any amendments, 2-11 modifications, supplements, additions, renewals or extensions 2-12 thereto, and any proceedings evidencing the addition of one or more 2-13 districts as parties thereto. 2-14 (c) Notwithstanding any general or special law or any home 2-15 rule charter provision to the contrary, the governing body of a 2-16 municipality and the governing body of one or more districts may 2-17 enter into a regional development agreement to further regional 2-18 cooperation between the district(s) and the municipality. A 2-19 regional development agreement may provide for any one or more of 2-20 the following: 2-21 (1) Deferral of the annexation of all or any portion 2-22 of the lands in the district(s) for full, limited or other purposes 2-23 for a mutually agreeable period of time; 2-24 (2) Provision of facilities and services by the 2-25 parties or others to the lands that may be included from time to 3-1 time within the district(s) included or added as parties thereto, 3-2 including, without limitation, optional, backup, emergency, mutual 3-3 aid or supplementary facilities or services; 3-4 (3) One or more payments to be made by the 3-5 municipality to the district(s) included or added as parties 3-6 thereto or to others for services provided by such district(s) or 3-7 others; 3-8 (4) One or more payments to be made by the district(s) 3-9 included or added as parties thereto or by others to the 3-10 municipality for services provided by the municipality; 3-11 (5) the procedures or standards for receiving any 3-12 required approvals and consents of the municipality; 3-13 (6) The standards for the issuance of bonds, notes, 3-14 refunding bonds or other indebtedness by the district(s) included 3-15 or added as parties thereto; 3-16 (7) Coordination of local, regional and areawide 3-17 planning efforts; 3-18 (8) Remedies not inconsistent with general law in the 3-19 event of breach thereof; 3-20 (9) Modification, amendment, renewal, extension, 3-21 rescission or termination thereof; 3-22 (10) Joinder or addition of other districts as parties 3-23 thereto; 3-24 (11) Designation of express third party beneficiaries 3-25 thereto and, to the extent not inconsistent with general law, the 4-1 rights and remedies of such designated beneficiaries; 4-2 (12) Such other lawful terms that the parties consider 4-3 appropriate. 4-4 (d) A regional development agreement must be in writing and 4-5 shall not be effective until approved by the governing bodies of 4-6 the municipality and the district(s) included as parties thereto; 4-7 provided, however, that a subsequent joinder or addition of other 4-8 districts as parties may be authorized and evidenced in the manner 4-9 provided therein. Upon approval, a regional development agreement 4-10 is binding on subsequent governing bodies of the district(s) 4-11 included or added as parties thereto and of the municipality 4-12 throughout the term thereof. 4-13 (e) A regional development agreement need not include a 4-14 description of the lands contained within the boundaries of the 4-15 district(s) included or added as parties thereto, but shall be 4-16 recorded in the deed records of the county or counties in which the 4-17 lands contained in the district(s) included or added as parties 4-18 thereto are located. 4-19 (f) Upon recordation, a regional development agreement, and 4-20 any proceedings evidencing the joinder or addition of one or more 4-21 other district(s) as parties thereto, shall also bind each owner 4-22 and each future owner of land which may from time to time be 4-23 included within the boundaries of the district(s) that are included 4-24 or added as parties thereto. Upon compliance with the requirements 4-25 for recordation included in Subchapter J, Chapter 49, Water Code or 5-1 in any similar general or special law, relating to the addition or 5-2 exclusion of lands, the owners and future owners of such added or 5-3 excluded lands shall likewise be bound thereby or released 5-4 therefrom. 5-5 (g) The provisions of Sections 42.023 and Section 42.041(b) 5-6 through (e), Local Government Code, shall not be applicable to any 5-7 land or owner of land within district(s) included or added as 5-8 parties to a regional development agreement during the period of 5-9 deferral of annexation established in a regional development 5-10 agreement, and any proceedings initiated pursuant thereto but not 5-11 completed prior to the effective date of this section shall be 5-12 suspended during such deferral period. 5-13 (h) Nothing herein shall be deemed or construed to permit or 5-14 require a district to provide public services and facilities or to 5-15 make payment of public funds from sources not otherwise authorized 5-16 by law; provided, however, that in consideration of the mutual 5-17 benefits to be received by the implementation of a regional 5-18 development agreement or for other lawful consideration, a district 5-19 may contract with any person for the provision of any service or 5-20 facility or the payment of funds by such person, at no cost or 5-21 expense to the district, directly or indirectly, in support or 5-22 furtherance of a regional development agreement to which the 5-23 district is a party. 5-24 (i) A regional development agreement and any action taken 5-25 pursuant thereto by the parties are not subject to approval or an 6-1 appeal brought under the Water Code. 6-2 (j) This section shall be liberally construed so as to give 6-3 effect to its legislative purposes and to sustain the validity of 6-4 regional development agreements, whether entered into pursuant to 6-5 or in anticipation of the authority granted by this section." 6-6 SECTION 2. An agreement entered into in anticipation of the 6-7 passage or effectiveness of this Act, or any portion of such an 6-8 agreement, shall not be invalid because of its authorization, 6-9 execution or delivery prior to the effective date of this Act. 6-10 SECTION 3. This Act is intended as remedial legislation to 6-11 facilitate and to relieve any uncertainty under existing law as to 6-12 the authority of certain municipalities and districts to enter into 6-13 regional development agreements. 6-14 SECTION 4. The legislature finds that there exists a public 6-15 necessity to make certain the law governing the authority of 6-16 municipalities and certain conservation and reclamation districts 6-17 to enter into mutually acceptable agreements providing for the 6-18 joint funding of services in lieu of annexation. 6-19 SECTION 5. The public benefits and the furtherance of the 6-20 legislative goal of conservation and development of the natural 6-21 resources of the state to be derived from making certain the 6-22 existing law so as to facilitate regional development agreements. 6-23 SECTION 6. EMERGENCY. The importance of this legislation 6-24 and the crowded condition of the calendars in both houses create an 6-25 emergency and an imperative public necessity that the 7-1 constitutional rule requiring bills to be read on three several 7-2 days in each house be suspended and this rule is hereby suspended.