By:  Krusee                                                       H.B. No. 1197



A BILL TO BE ENTITLED

AN ACT

relating to authorization for a development agreement between a 
municipality and an owner of land in the municipality's 
extraterritorial jurisdiction.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 212, Local Government Code, is amended 
by adding Subchapter G to read as follows:

SUBCHAPTER G. AGREEMENT GOVERNING CERTAIN LAND IN A MUNICIPALITY'S 
EXTRATERRITORIAL JURISDICTION
	Sec. 212.171.  APPLICABILITY.  This subchapter does not 
apply to land located in the extraterritorial jurisdiction of a 
municipality with a population of 1.9 million or more.
	Sec. 212.172.  DEVELOPMENT AGREEMENT.  (a)  In this 
subchapter, "extraterritorial jurisdiction" means a municipality's 
extraterritorial jurisdiction as determined under Chapter 42.
	(b)  The governing body of a municipality may make a written 
contract with an owner of land that is located in the 
extraterritorial jurisdiction of the municipality to:
		(1)  guarantee the continuation of the 
extraterritorial status of the land and its immunity from 
annexation by the municipality for a period not to exceed 15 years;
		(2)  extend the municipality's planning authority over 
the land by providing for a development plan to be prepared by the 
landowner and approved by the municipality under which certain 
general uses and development of the land are authorized;
		(3)  authorize enforcement by the municipality of 
certain municipal land use and development regulations in the same 
manner the regulations are enforced within the municipality's 
boundaries;
		(4)  authorize enforcement by the municipality of land 
use and development regulations other than those that apply within 
the municipality's boundaries, as may be agreed to by the landowner 
and the municipality;
		(5)  provide for infrastructure for the land, 
including:             
			(A)  streets and roads;                                               
			(B)  street and road drainage;                                        
			(C)  land drainage; and                                               
			(D)  water, wastewater, and other utility 
systems;                  
		(6)  authorize enforcement of environmental 
regulations;             
		(7)  provide for the annexation of the land as a whole 
or in parts and to provide for the terms of annexation, if 
annexation is agreed to by the parties;
		(8)  specify the uses and development of the land 
before and after annexation, if annexation is agreed to by the 
parties; or
		(9)  include other lawful terms and considerations the 
parties consider appropriate.
	(c)  An agreement under this subchapter must:                           
		(1)  be in writing;                                                    
		(2)  contain an adequate legal description of the land;                
		(3)  be approved by the governing body of the 
municipality and the landowner; and
		(4)  be recorded in the real property records of each 
county in which any part of the land that is subject to the 
agreement is located.
	(d)  The parties to a contract may renew or extend it for 
successive periods not to exceed 15 years each. The total duration 
of the original contract and any successive renewals or extensions 
may not exceed 45 years.
	(e)  A municipality in an affected county, as defined by 
Section 16.341, Water Code, may not enter into an agreement under 
this subchapter that is inconsistent with the model rules adopted 
under Section 16.343, Water Code.
	(f)  The agreement between the governing body of the 
municipality and the landowner is binding on the municipality and 
the landowner and on their respective successors and assigns for 
the term of the agreement.  The agreement is not binding on, and 
does not create any encumbrance to title as to, any end-buyer of a 
fully developed and improved lot within the development, except for 
land use and development regulations that may apply to a specific 
lot.
	(g)  An agreement under this subchapter constitutes a permit 
under Chapter 245.
	(h)  An agreement between a municipality and a landowner 
entered into prior to the effective date of this section and that 
complies with this section is validated.
	Sec. 212.173.  CERTAIN COASTAL AREAS.  This subchapter does 
not apply to, limit, or otherwise affect any ordinance, order, 
rule, plan, or standard adopted by this state or a state agency, 
county, municipality, or other political subdivision of this state 
under the federal Coastal Zone Management Act of 1972 (16 U.S.C. 
Section 1451 et seq.), and its subsequent amendments, or Subtitle 
E, Title 2, Natural Resources Code.
	Sec. 212.174.  MUNICIPAL UTILITIES.  A municipality may not 
require an agreement under this subchapter as a condition for 
providing water, sewer, electricity, gas, or other utility service 
from a municipally owned or municipally operated utility that 
provides any of those services.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.