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.