By:  Bernsen                                          S.B. No. 1154
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     Amending Chapter 43, Subchapter D, Local Government Code, by adding
 1-2     Section 43.0752 relating to the authority of certain districts and
 1-3     municipalities to enter into regional development agreements and
 1-4     related agreements; containing legislative findings; and declaring
 1-5     an emergency.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  That Chapter 43, Subchapter D, Local Government
 1-8     Code, is amended by adding Section 43.0752 as follows:
 1-9     Sec. 43.0752  REGIONAL DEVELOPMENT AGREEMENTS.
1-10     (a)  It is the intent of the legislature to make certain and expand
1-11     the authority of certain municipalities and conservation and
1-12     reclamation districts located in an extraterritorial jurisdiction
1-13     to negotiate and enter into mutually acceptable agreements in lieu
1-14     of annexation.
1-15     (b)  In this section:
1-16           (1)  "Municipality" means a home rule municipality having a
1-17     population of [,]1,600,000 or more.
1-18           (2)  "District" means a conservation and reclamation district
1-19     created or operating pursuant to Chapters 49 and 54, Water Code and
1-20     situated entirely within a planned community and entirely within
1-21     the extraterritorial jurisdiction of a municipality.
1-22           (3)  "Planned community" means a planned community of 10,000
 2-1     acres or more that is subject, in whole or in part, to restrictive
 2-2     covenants containing ad valorem based assessments on real property
 2-3     used or to be used, in whole or in part, to fund governmental or
 2-4     quasi-governmental services and facilities within and for the
 2-5     planned community.
 2-6           (4)  "Regional development agreement" means a contract or
 2-7     agreement entered into pursuant to or in anticipation of the
 2-8     authority granted by this section, and any amendments,
 2-9     modifications, supplements, additions, renewals or extensions
2-10     thereto, and any proceedings evidencing the addition of one or more
2-11     districts as parties thereto.
2-12     (c)  Notwithstanding any general or special law or any home rule
2-13     charter provision to the contrary, the governing body of a
2-14     municipality and the governing body of one or more districts may
2-15     enter into a regional development agreement to further regional
2-16     cooperation between the district(s) and the municipality.  A
2-17     regional development agreement may provide for any one or more of
2-18     the following:
2-19           (1)  Deferral of the annexation of all or any portion of the
2-20     lands in the district(s) for full, limited or other purposes for a
2-21     mutually agreeable period of time;
2-22           (2)  Provision of facilities and services by the parties or
2-23     others to the lands that may be included from time to time within
2-24     the district(s) included or added as parties thereto, including,
2-25     without limitation, optional, backup, emergency, mutual aid or
2-26     supplementary facilities or services;
 3-1           (3)  One or more payments to be made by the municipality to
 3-2     the district(s) included or added as parties thereto or to others
 3-3     for services provided by such district(s) or others;
 3-4           (4)  One or more payments to be made by the district(s)
 3-5     included or added as parties thereto or by others to the
 3-6     municipality for services provided by the municipality;
 3-7           (5)  The procedures or standards for receiving any required
 3-8     approvals and consents of the municipality;
 3-9           (6)  The standards for the issuance of bonds, notes,
3-10     refunding bonds or other indebtedness by the district(s) included
3-11     or added as parties thereto;
3-12           (7)  Coordination of local, regional and areawide planning
3-13     efforts;
3-14           (8)  Remedies not inconsistent with general law in the event
3-15     of breach thereof;
3-16           (9)  Modification, amendment, renewal, extension, rescission
3-17     or termination thereof;
3-18           (10)  Joinder or addition of other districts as parties
3-19     thereto;
3-20           (11)  Designation of express third party beneficiaries
3-21     thereto and, to the extent not inconsistent with general law, the
3-22     rights and remedies of such designated beneficiaries;
3-23           (12)  Such other lawful terms that the parties consider
3-24     appropriate.
3-25     (d)  A regional development agreement must be in writing and shall
3-26     not be effective until approved by the governing bodies of the
 4-1     municipality and the district(s) included as parties thereto;
 4-2     provided, however, that a subsequent joinder or addition of other
 4-3     districts as parties may be authorized and evidenced in the manner
 4-4     provided therein.  Upon approval, a regional development agreement
 4-5     is binding on subsequent governing bodies of the district(s)
 4-6     included or added as parties thereto and of the municipality
 4-7     throughout the term thereof.
 4-8     (e)  A regional development agreement need not include a
 4-9     description of the lands contained within the boundaries of the
4-10     district(s) included or added as parties thereto, but shall be
4-11     recorded in the deed records of the county or counties in which the
4-12     lands contained in the district(s) included or added as parties
4-13     thereto are located.
4-14     (f)  Upon recordation, a regional development agreement, and any
4-15     proceedings evidencing the joinder or addition of one or more other
4-16     district(s) as parties thereto, shall also bind each owner and each
4-17     future owner of land which may from time to time be included within
4-18     the boundaries of the district(s) that are included or added as
4-19     parties thereto.  Upon compliance with the requirements for
4-20     recordation included in Subchapter J, Chapter 49, Water Code or in
4-21     any similar general or special law, relating to the addition or
4-22     exclusion of lands, the owners and future owners of such added or
4-23     excluded lands shall likewise be bound thereby or released
4-24     therefrom.
4-25     (g)  The provisions of Sections 42.023 and Section 42.041(b)
4-26     through (e), Local Government Code, shall not be applicable to any
 5-1     land or owner of land within district(s) included or added as
 5-2     parties to a regional development agreement during the period of
 5-3     deferral of annexation established in a regional development
 5-4     agreement, and any proceedings initiated pursuant thereto but not
 5-5     completed prior to the effective date of this section shall be
 5-6     suspended during such deferral period.
 5-7     (h)  Nothing herein shall be deemed or construed to permit or
 5-8     require a district to provide public services and facilities or to
 5-9     make payment of public funds from sources not otherwise authorized
5-10     by law; provided, however, that in consideration of the mutual
5-11     benefits to be received by the implementation of a regional
5-12     development agreement or for other lawful consideration, a district
5-13     may contract with any person for the provision of any service or
5-14     facility or the payment of funds by such person, at no cost or
5-15     expense to the district, directly or indirectly, in support or
5-16     furtherance of a regional development agreement to which the
5-17     district is a party.
5-18     (i)  A regional development agreement and any action taken pursuant
5-19     thereto by the parties are not subject to approval or an appeal
5-20     brought under the Water Code.
5-21     (j)  This section shall be liberally construed so as to give effect
5-22     to its legislative purposes and to sustain the validity of regional
5-23     development agreements, whether entered into pursuant to or in
5-24     anticipation of the authority granted by this section."
5-25           SECTION 2.  An agreement entered into in anticipation of the
5-26     passage or effectiveness of this Act, or any portion of such an
 6-1     agreement, shall not be invalid because of its authorization,
 6-2     execution or delivery prior to the effective date of this Act.
 6-3           SECTION 3.  This Act is intended as remedial legislation to
 6-4     facilitate and to relieve any uncertainty under existing law as to
 6-5     the authority of certain municipalities and districts to enter into
 6-6     regional development agreements.
 6-7           SECTION 4.  The legislature finds that there exists a public
 6-8     necessity to make certain the law governing the authority of
 6-9     municipalities and certain conservation and reclamation districts
6-10     to enter into mutually acceptable agreements providing for the
6-11     joint funding of services in lieu of annexation.
6-12           SECTION 5.  The public benefits and the furtherance of the
6-13     legislative goal of conservation and development of the natural
6-14     resources of the state to be derived from making certain the
6-15     existing law so as to facilitate regional development agreements.
6-16           SECTION 6.  EMERGENCY.  The importance of this legislation
6-17     and the crowded condition of the calendars in both houses create an
6-18     emergency and an imperative public necessity that the
6-19     constitutional rule requiring bills to be read on three several
6-20     days in each house be suspended and this rule is hereby suspended.