AN ACT
1-1 relating to the establishment of regional development agreements
1-2 between certain municipalities and special districts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. It is the intent of the legislature that this Act
1-5 make clear and expand the authority of a municipality and a
1-6 conservation and reclamation district located in the
1-7 extraterritorial jurisdiction of a municipality to negotiate and
1-8 enter into a mutually acceptable agreement in lieu of annexation.
1-9 SECTION 2. Subchapter D, Chapter 43, Local Government Code,
1-10 is amended by adding Section 43.0752 to read as follows:
1-11 Sec. 43.0752. REGIONAL DEVELOPMENT AGREEMENTS. (a) In this
1-12 section:
1-13 (1) "District" means a conservation and reclamation
1-14 district that is created or operating under Chapters 49 and 54,
1-15 Water Code, and that is located entirely within the boundaries of a
1-16 planned community and entirely within the extraterritorial
1-17 jurisdiction of a municipality.
1-18 (2) "Municipality" means a municipality with a
1-19 population of 1.6 million or more.
1-20 (3) "Planned community" means a planned community of
1-21 10,000 acres or more that is subject in whole or in part to a
1-22 restrictive covenant that contains an ad valorem-based assessment
1-23 on real property used or to be used, in any part, to fund
1-24 governmental or quasi-governmental services and facilities within
2-1 and for the planned community.
2-2 (4) "Regional development agreement" means a contract
2-3 or agreement entered into under this section or in anticipation of
2-4 the enactment of this section and any amendment, modification,
2-5 supplement, addition, renewal, or extension to or of the contract
2-6 or agreement or any proceeding relating to the contract or
2-7 agreement.
2-8 (b) Notwithstanding any contrary law or municipal charter
2-9 provision, the governing body of a municipality and the governing
2-10 body of one or more districts may enter into a regional development
2-11 agreement to further regional cooperation between the municipality
2-12 and the district.
2-13 (c) A regional development agreement may allow:
2-14 (1) any type of annexation of any part of the land in
2-15 the district to be deferred for a mutually agreeable period of
2-16 time;
2-17 (2) facilities or services to be provided to the land
2-18 within the district by any party to the agreement or by any other
2-19 person, including optional, backup, emergency, mutual aid, or
2-20 supplementary facilities or services;
2-21 (3) payments to be made by the municipality to the
2-22 district or another person or by the district or another person to
2-23 the municipality for services provided to the district or
2-24 municipality;
2-25 (4) standards for requesting and receiving any form of
2-26 required consent or approval from the municipality;
3-1 (5) a district to issue bonds, notes, refunding bonds,
3-2 or other forms of indebtedness;
3-3 (6) the coordination of local, regional, and areawide
3-4 planning;
3-5 (7) remedies for breach of the agreement;
3-6 (8) the modification, amendment, renewal, extension,
3-7 or termination of the agreement;
3-8 (9) any other district to join the agreement at any
3-9 time;
3-10 (10) third-party beneficiaries to be specifically
3-11 designated and conferred rights or remedies under the agreement;
3-12 and
3-13 (11) any other term to which the parties agree.
3-14 (d) A regional development agreement must be:
3-15 (1) in writing;
3-16 (2) approved by the governing body of the municipality
3-17 and the district; and
3-18 (3) recorded:
3-19 (A) in the real property records of any county
3-20 in which any part of a district that is party to the agreement is
3-21 located; and
3-22 (B) in any manner that complies with Subchapter
3-23 J, Chapter 49, Water Code.
3-24 (e) Subject to compliance with Subsection (d)(1) and (3),
3-25 another district may join or become a party to a regional
3-26 development agreement in the manner authorized in the agreement.
4-1 (f) A regional development agreement does not need to
4-2 describe the land contained within the boundaries of a district
4-3 that is a party to the agreement. The agreement must be recorded
4-4 in the deed records of any county in which any land in the district
4-5 is located.
4-6 (g) A regional development agreement binds each party to the
4-7 agreement and each owner and future owner of land that is subject
4-8 to the agreement. If a party or landowner is excluded or removed
4-9 from an agreement, the removal or exclusion is effective on the
4-10 recordation requirement of Subsection (d)(3).
4-11 (h) A regional development agreement may not require a
4-12 district to provide public services and facilities to a person to
4-13 whom the district is not otherwise authorized to provide services
4-14 or facilities or to make payments from any source from which the
4-15 district is not otherwise authorized to make payments.
4-16 (i) A district may contract with any person for services or
4-17 facilities to be provided at no cost to the district or for the
4-18 payment of funds by the person in support of a regional development
4-19 agreement.
4-20 (j) A regional development agreement and any action taken
4-21 under the agreement is not subject to any method of approval under
4-22 the Water Code or any method of appeal under the Water Code.
4-23 (k) Notwithstanding any defect, ambiguity, discrepancy,
4-24 invalidity, or unenforceability of a regional development agreement
4-25 that has been voluntarily entered into and fully executed by the
4-26 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) do not apply to
5-6 any land or owner of land within a district that is a party to the
5-7 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 make certain the law governing the authority of
5-22 municipalities and certain conservation and reclamation districts
5-23 to enter into mutually acceptable agreements in lieu of annexation.
5-24 The public benefits from, and the legislative goal of conservation
5-25 and development of the natural resources of the state is furthered
5-26 by, making certain that the existing law facilitates regional
6-1 development agreements.
6-2 SECTION 5. The importance of this legislation and the
6-3 crowded condition of the calendars in both houses create an
6-4 emergency and an imperative public necessity that the
6-5 constitutional rule requiring bills to be read on three several
6-6 days in each house be suspended, and this rule is hereby suspended,
6-7 and that this Act take effect and be in force from and after its
6-8 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1154 passed the Senate on
April 29, 1999, by the following vote: Yeas 29, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1154 passed the House on
May 11, 1999, by the following vote: Yeas 148, Nays 0, two present
not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor