78R2788 MI-D

By:  Lindsay                                                      S.B. No. 717



A BILL TO BE ENTITLED

AN ACT

relating to limited-purpose annexation and annexation agreements 
between a municipality and a municipal utility district annexed for 
limited purposes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 43, Local Government Code, 
is amended by adding Section 43.0754 to read as follows:
	Sec. 43.0754.  LIMITED-PURPOSE ANNEXATION OF CERTAIN 
DISTRICTS; ANNEXATION AGREEMENTS.  (a)  A municipality and the 
board of directors of a municipal utility district that is annexed 
for limited purposes by the municipality may enter into an 
annexation agreement under which  the municipality may levy and 
collect in the newly annexed district a tax authorized by law or 
municipal charter and may share the tax with the newly annexed 
district as provided by the annexation agreement.
	(b)  The board of a municipal utility district that is 
annexed for limited purposes by a municipality may not enter into an 
annexation agreement with the municipality unless the annexation 
agreement has first been approved by a majority of the property 
owners in the district voting in an election held by the district 
for that purpose.
	(c)  The board of the newly annexed municipal utility 
district may not reduce the district's ad valorem tax rate to a rate 
lower than the ad valorem tax rate of the annexing municipality.
	(d)  A municipality that annexes for limited purposes a 
municipal utility district may exercise within the newly annexed 
area only the authority to tax granted under an annexation 
agreement entered into under this section.  The municipality has no 
other authority within the newly annexed area.
	SECTION 2.  Sections 43.0751 and 43.0752, Local Government 
Code, are repealed.
	SECTION 3.  (a)  This Act takes effect September 1, 2003.                      
	(b)  The repeal by this Act of Section 43.0751, Local 
Government Code, does not apply to a strategic partnership 
agreement that takes effect under Section 43.0751 before the 
effective date of this Act.  A strategic partnership agreement that 
takes effect before the effective date of this Act is governed by 
the law in effect at the time the agreement took effect, and the 
former law is continued in effect for that purpose.