By:  Strama                                                       H.B. No. 2042



A BILL TO BE ENTITLED

AN ACT

relating to municipal action regarding a municipal utility district 
wholly within the municipality's boundaries.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 54, Water Code, section 54.016, is 
amended as follows:   
	Sec. 54.016(f):                                                         
	(f)  A City may provide in its written consent for the 
inclusion of land in a district that a contract (which shall be 
deemed to be an "allocation agreement", however entitled by the 
parties) between the district and the city be entered into prior to 
the first issue of bonds, notes, warrants, or other obligations of 
the district.  The allocation shall contain the following 
provisions:
		(1)  a method by which the district shall continue to 
exist following the annexation of all territory within the district 
by the city, if the district is initially located outside the 
corporate limits of the city;
		(2)  an allocation of the ad valorem taxes or revenues 
of the district or the city which will assure that, following the 
date of the inclusion of all the district's territory within the 
corporate limits of the city, regardless of whether annexation 
precedes or follows the creation of the district, the total annual 
ad valorem taxes collected by the city and the district from taxable 
property within the district does not exceed an amount greater than 
the city's ad valorem tax upon such property located within the 
municipality, but outside the district;
		(3)  an allocation of governmental services to be 
provided by the city or the district following the date of inclusion 
of all of the district's territory within the corporate limits of 
the city;
		(4)  such other terms and conditions as may be deemed 
appropriate by the city.
	(f-1)  notwithstanding any other provision of law, if the 
municipality imposes a tax rate that does not meet the requirements 
of subsection (f)(2), a majority of the registered voters in the 
district may petition the governing body of the municipality to 
disannex all the area contained within the boundaries of the 
district in the same manner and under the same conditions provided 
by Section 43.141, Local Government Code, for disannexation 
following a municipality's failure to provide services.
	(g)  In addition to all the rights and remedies provided by 
the laws of the state in the event a district violates the terms and 
provisions of a city's written consent, , the court shall be 
entitled to injunctive relief or a writ of mandamus issued by a 
court of competent jurisdiction restraining, compelling or 
requiring the district and it officials to observe and comply with 
the terms and provisions prescribed in the city's written consent 
to the inclusion of land within the district.
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	SECTION 3.  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, 2005.