By: Bernsen S.B. No. 1693
99S0634/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to contracts between municipalities and certain districts
1-2 and organizations located in extraterritorial areas.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter C, Chapter 42, Local Government Code,
1-5 is amended by adding Section 42.0441 to read as follows:
1-6 Sec. 42.0441. JOINT AGREEMENTS BETWEEN MUNICIPALITIES AND
1-7 CERTAIN DISTRICTS AND ORGANIZATIONS. (a) It is the intent of the
1-8 legislature to enable municipalities and certain conservation and
1-9 reclamation districts and other organizations representing defined
1-10 areas in extraterritorial areas to negotiate mutually agreeable
1-11 alternatives to annexation. In furtherance of that goal, this
1-12 section authorizes municipalities and districts and local
1-13 organizations to execute mutually agreeable contracts providing for
1-14 the joint funding of services in lieu of annexation. A
1-15 municipality to which this section applies is not subject to any
1-16 mandatory provisions of Section 43.0751.
1-17 (b) For purposes of this section:
1-18 (1) "District" means a municipal utility district,
1-19 water control and improvement district, or other district created
1-20 under Section 59, Article XVI, or Section 52, Article III, Texas
1-21 Constitution.
1-22 (2) "Municipality" means a municipality with a
1-23 population of more than 1.6 million.
1-24 (3) "Local organization" means a community
2-1 association, homeowners association, or other formally organized
2-2 nonprofit corporation or association representing a clearly defined
2-3 geographical area in the extraterritorial jurisdiction of a
2-4 municipality.
2-5 (4) "Services" means services delivered within the
2-6 area of a district or services provided by a municipality for the
2-7 benefit of persons outside the municipality.
2-8 (c) Either the mayor of a municipality or the board of
2-9 directors of a district may submit a written request to the other
2-10 to initiate negotiations under this section. To initiate
2-11 negotiations, the recipient must respond affirmatively in writing
2-12 to the request to negotiate within 30 days of delivery. The
2-13 request or the response may condition negotiations on the agreement
2-14 of other districts to negotiate.
2-15 (d) On electing to enter into negotiations with the mayor,
2-16 the board of directors of the district shall appoint a designee
2-17 from the board to negotiate with the mayor.
2-18 (e) On initiation of negotiations, the mayor and the
2-19 designee of the board of directors of the district shall negotiate
2-20 in good faith. The mayor and the board's designee may, in their
2-21 discretion, agree to a written contract that guarantees the
2-22 continuation of the extraterritorial status of the district and its
2-23 immunity from annexation by the municipality for a period not to
2-24 exceed 15 years; a provision for revenue sharing between the
2-25 municipality and the district that compensates the municipality for
2-26 police protection, the construction or maintenance of water or
3-1 wastewater facilities, and the construction or maintenance of roads
3-2 or streets, parks, playgrounds, or other facility, building, or
3-3 service; and other terms, conditions, and considerations that the
3-4 parties consider appropriate. If consented to by the district in
3-5 the agreement, the municipality shall also be authorized to impose
3-6 one or more of the following:
3-7 (1) the municipality's sales and use tax within the
3-8 boundaries of the district under the provisions of Chapter 321, Tax
3-9 Code;
3-10 (2) a property assessment as authorized, and for the
3-11 purposes described, in Chapter 372 and for the purpose of achieving
3-12 public service and cost-sharing equity between the area within the
3-13 district and the municipality; provided, however, that a petition
3-14 is not required to establish the assessment; if an assessment is
3-15 imposed, the municipality is authorized to establish a local
3-16 government corporation within the district under Subchapter D,
3-17 Chapter 431, Transportation Code, for the purpose of administering
3-18 this assessment; and
3-19 (3) a water fee surcharge sufficient to equalize water
3-20 rates within the district with those within the municipality.
3-21 (f) The governing body of the municipality and the board of
3-22 directors of a district may renew or extend a contract for
3-23 successive periods not to exceed 15 years each.
3-24 (g) If a municipality and a district enter into negotiations
3-25 under this section, the governing body of the municipality may not
3-26 initiate proceedings to annex the district under any other section
4-1 of this code until either the mayor or the district delivers to the
4-2 other a notice terminating negotiations or until 12 months have
4-3 elapsed after the initial request or petition for negotiation was
4-4 made, whichever occurs later.
4-5 (h) On approval of the proposed contract by the governing
4-6 bodies of the municipality and the district, the municipality shall
4-7 publish a notice in a newspaper of general circulation in the
4-8 district summarizing the general terms of the contract. Unless the
4-9 municipality receives a petition signed by at least 10 percent of
4-10 the electors within the district within 30 days of publication
4-11 requesting an election, the contract shall be deemed final and
4-12 binding on both parties. If a petition is timely received, the
4-13 contract shall be submitted to the voters of the district for
4-14 approval on the next uniform election date. If the agreement is
4-15 approved by a majority of those voting at the election, the
4-16 contract shall be binding on both the district and the
4-17 municipality.
4-18 (i) If a majority of the qualified voters voting in an
4-19 election required by this section does not approve the contract,
4-20 the result of the election may not be interpreted as a request for
4-21 annexation by the municipality.
4-22 (j) A municipality may enter into a contract as described in
4-23 this section with the governing body of a local organization on
4-24 behalf of the defined area in the municipality's extraterritorial
4-25 jurisdiction represented by the local organization, provided that,
4-26 on the next uniform election date, the contract is approved by a
5-1 majority of those voting at a special election held in the defined
5-2 area of the local organization. Subsection (g) shall not apply to
5-3 negotiations with a local organization under this section.
5-4 SECTION 2. Section 321.102, Tax Code, is amended by adding
5-5 Subsection (c-1) to read as follows:
5-6 (c-1) If the boundaries of a municipality in which the tax
5-7 is imposed under this chapter are changed under Section
5-8 42.0441(e)(1), Local Government Code, the municipal secretary shall
5-9 send by United States registered or certified mail to the
5-10 comptroller a certified copy of the ordinance that changes the
5-11 municipality's boundaries and shows the effective date of the
5-12 boundary change. The ordinance must be accompanied by a map
5-13 clearly showing the added territory. The tax takes effect in the
5-14 added territory on the first day of the first calendar quarter
5-15 after the comptroller receives the ordinance and map.
5-16 SECTION 3. This Act takes effect September 1, 1999.
5-17 SECTION 4. The importance of this legislation and the
5-18 crowded condition of the calendars in both houses create an
5-19 emergency and an imperative public necessity that the
5-20 constitutional rule requiring bills to be read on three several
5-21 days in each house be suspended, and this rule is hereby suspended.