1-1 By: Bernsen S.B. No. 1154 1-2 (In the Senate - Filed March 10, 1999; March 11, 1999, read 1-3 first time and referred to Committee on Natural Resources; 1-4 April 12, 1999, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 5, Nays 0; April 12, 1999, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1154 By: Barrientos 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the establishment of regional development agreements 1-11 between certain municipalities and special districts. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. It is the intent of the legislature that this Act 1-14 make clear and expand the authority of a municipality and a 1-15 conservation and reclamation district located in the 1-16 extraterritorial jurisdiction of a municipality to negotiate and 1-17 enter into a mutually acceptable agreement in lieu of annexation. 1-18 SECTION 2. Subchapter D, Chapter 43, Local Government Code, 1-19 is amended by adding Section 43.0752 to read as follows: 1-20 Sec. 43.0752. REGIONAL DEVELOPMENT AGREEMENTS. (a) In this 1-21 section: 1-22 (1) "District" means a conservation and reclamation 1-23 district that is created or operating under Chapters 49 and 54, 1-24 Water Code, and that is located entirely within the boundaries of a 1-25 planned community and entirely within the extraterritorial 1-26 jurisdiction of a municipality. 1-27 (2) "Municipality" means a municipality with a 1-28 population of 1.6 million or more. 1-29 (3) "Planned community" means a planned community of 1-30 10,000 acres or more that is subject in whole or in part to a 1-31 restrictive covenant that contains an ad valorem-based assessment 1-32 on real property used or to be used, in any part, to fund 1-33 governmental or quasi-governmental services and facilities within 1-34 and for the planned community. 1-35 (4) "Regional development agreement" means a contract 1-36 or agreement entered into under this section or in anticipation of 1-37 the enactment of this section and any amendment, modification, 1-38 supplement, addition, renewal, or extension to or of the contract 1-39 or agreement or any proceeding relating to the contract or 1-40 agreement. 1-41 (b) Notwithstanding any contrary law or municipal charter 1-42 provision, the governing body of a municipality and the governing 1-43 body of one or more districts may enter into a regional development 1-44 agreement to further regional cooperation between the municipality 1-45 and the district. 1-46 (c) A regional development agreement may allow: 1-47 (1) any type of annexation of any part of the land in 1-48 the district to be deferred for a mutually agreeable period of 1-49 time; 1-50 (2) facilities or services to be provided to the land 1-51 within the district by any party to the agreement or by any other 1-52 person, including optional, backup, emergency, mutual aid, or 1-53 supplementary facilities or services; 1-54 (3) payments to be made by the municipality to the 1-55 district or another person or by the district or another person to 1-56 the municipality for services provided to the district or 1-57 municipality; 1-58 (4) standards for requesting and receiving any form of 1-59 required consent or approval from the municipality; 1-60 (5) a district to issue bonds, notes, refunding bonds, 1-61 or other forms of indebtedness; 1-62 (6) the coordination of local, regional, and areawide 1-63 planning; 1-64 (7) remedies for breach of the agreement; 2-1 (8) the modification, amendment, renewal, extension, 2-2 or termination of the agreement; 2-3 (9) any other district to join the agreement at any 2-4 time; 2-5 (10) third-party beneficiaries to be specifically 2-6 designated and conferred rights or remedies under the agreement; 2-7 and 2-8 (11) any other term to which the parties agree. 2-9 (d) A regional development agreement must be: 2-10 (1) in writing; 2-11 (2) approved by the governing body of the municipality 2-12 and the district; and 2-13 (3) recorded: 2-14 (A) in the real property records of any county 2-15 in which any part of a district that is party to the agreement is 2-16 located; and 2-17 (B) in any manner that complies with Subchapter 2-18 J, Chapter 49, Water Code. 2-19 (e) Subject to compliance with Subsection (d)(1) and (3), 2-20 another district may join or become a party to a regional 2-21 development agreement in the manner authorized in the agreement. 2-22 (f) A regional development agreement does not need to 2-23 describe the land contained within the boundaries of a district 2-24 that is a party to the agreement. The agreement must be recorded 2-25 in the deed records of any county in which any land in the district 2-26 is located. 2-27 (g) A regional development agreement binds each party to the 2-28 agreement and each owner and future owner of land that is subject 2-29 to the agreement. If a party or landowner is excluded or removed 2-30 from an agreement, the removal or exclusion is effective on the 2-31 recordation requirement of Subsection (d)(3). 2-32 (h) A regional development agreement may not require a 2-33 district to provide public services and facilities to a person to 2-34 whom the district is not otherwise authorized to provide services 2-35 or facilities or to make payments from any source from which the 2-36 district is not otherwise authorized to make payments. 2-37 (i) A district may contract with any person for services or 2-38 facilities to be provided at no cost to the district or for the 2-39 payment of funds by the person in support of a regional development 2-40 agreement. 2-41 (j) A regional development agreement and any action taken 2-42 under the agreement is not subject to any method of approval under 2-43 the Water Code or any method of appeal under the Water Code. 2-44 (k) Section 42.023 and Sections 42.041(b)-(e) do not apply 2-45 to any land or owner of land within a district that is a party to a 2-46 regional development agreement during a period of deferral of 2-47 annexation established in a regional development agreement. An 2-48 annexation proceeding that is not completed before the effective 2-49 date of this section is suspended during the deferral period. 2-50 (l) This section shall be liberally construed so as to give 2-51 effect to its legislative purposes and to sustain the validity of a 2-52 regional development agreement if the agreement was entered into 2-53 under or in anticipation of this section. 2-54 SECTION 3. An agreement entered into in anticipation of this 2-55 Act is not invalid because of the agreement's authorization, 2-56 execution, or delivery before the effective date of this Act. 2-57 SECTION 4. The legislature finds that there exists a public 2-58 necessity to make certain the law governing the authority of 2-59 municipalities and certain conservation and reclamation districts 2-60 to enter into mutually acceptable agreements in lieu of annexation. 2-61 The public benefits from, and the legislative goal of conservation 2-62 and development of the natural resources of the state is furthered 2-63 by making certain that the existing law facilitates regional 2-64 development agreements. 2-65 SECTION 5. The importance of this legislation and the 2-66 crowded condition of the calendars in both houses create an 2-67 emergency and an imperative public necessity that the 2-68 constitutional rule requiring bills to be read on three several 2-69 days in each house be suspended, and this rule is hereby suspended, 3-1 and that this Act take effect and be in force from and after its 3-2 passage, and it is so enacted. 3-3 * * * * *