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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the New Sweden Municipal Utility |
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District No. 2 and municipalities with extraterritorial |
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jurisdiction in the district to enter into annexation and tax |
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allocation agreements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 6, Special District Local Laws |
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Code, is amended by adding Chapter 8160 to read as follows: |
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CHAPTER 8160. NEW SWEDEN MUNICIPAL UTILITY DISTRICT NO. 2 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 8160.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the board of directors of the |
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district. |
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(2) "Director" means a member of the board. |
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(3) "District" means the New Sweden Municipal Utility |
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District No. 2 as created by the Texas Commission on Environmental |
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Quality by order dated November 10, 2006. |
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[Sections 8160.002-8160.100 reserved for expansion] |
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SUBCHAPTER B. POWERS AND DUTIES |
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Sec. 8160.101. GENERAL POWERS AND DUTIES. The district |
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has: |
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(1) the powers and duties provided to a municipal |
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utility district by general law, including Chapters 49 and 54, |
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Water Code, and Chapters 42 and 43, Local Government Code; and |
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(2) all the powers and duties necessary or appropriate |
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to accomplish the purposes for which the district was created by the |
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Texas Commission on Environmental Quality. |
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Sec. 8160.102. ADDITIONAL POWERS RELATED TO ANNEXATION AND |
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TAX ALLOCATION AGREEMENTS. (a) This section applies only to a |
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municipality that: |
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(1) has extraterritorial jurisdiction over the entire |
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area in which the district is located; and |
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(2) has made a strategic partnership agreement with |
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the district. |
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(b) The district and the municipality may agree to provide |
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for the: |
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(1) annexation, including limited purpose annexation, |
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by the municipality of all or a part of the territory of the |
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district; and |
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(2) allocation, following annexation of all or part of |
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the district by the municipality, of taxes imposed on real property |
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in the district between the district and the municipality. |
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(c) Notwithstanding the limitations otherwise imposed by |
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Subchapter J, Chapter 54, Water Code, the district is granted the |
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powers under that subchapter for the purpose of: |
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(1) defining a particular area to be taxed; and |
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(2) entering a tax allocation agreement as provided by |
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this chapter. |
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(d) This chapter does not eliminate any right granted to a |
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municipality under general law to annex all or part of the district. |
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The powers granted to the district and a municipality under this |
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chapter are cumulative of powers granted under other law. |
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Sec. 8160.103. SPECIFIC PROVISIONS OF TAX ALLOCATION |
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AGREEMENT. The tax allocation agreement made under Section |
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8160.102 may contain: |
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(1) a method by which the district continues to exist |
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following annexation by the municipality of all or part of the |
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district territory, if the district is initially located outside |
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the corporate boundaries of the municipality; |
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(2) an allocation of the ad valorem tax revenues of the |
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district and the municipality from property in the district as the |
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district and the municipality may agree; |
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(3) an allocation of governmental services to be |
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provided by the municipality or the district following the date of |
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the inclusion of the district territory in the corporate boundaries |
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of the municipality, which must be proportionate to the allocation |
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of taxes to which the district and the municipality agreed under |
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Subdivision (2); |
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(4) an agreement under which the district assesses and |
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collects ad valorem taxes on all taxable property: |
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(A) at a rate applying to the area of the district |
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included in the municipality and designated as a defined area as |
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provided by Subchapter J, Chapter 54, Water Code, calculated to pay |
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for the improvements, facilities, or services that primarily |
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benefit that area and do not generally benefit the district as a |
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whole; and |
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(B) at a rate applying to the area of the district |
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that is not included in the municipality and is designated as a |
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separate defined area as provided by Subchapter J, Chapter 54, |
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Water Code, calculated to pay for the improvements, facilities, or |
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services that primarily benefit that area and do not generally |
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benefit the district as a whole; |
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(5) a provision permitting district bonds in an area |
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designated as a defined area as provided by Subchapter J, Chapter |
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54, Water Code, to be sold by negotiated contract, notwithstanding |
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other law; |
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(6) a provision that the allocation agreement will end |
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on the date that: |
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(A) all territory in the district is annexed by |
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the municipality for full purposes; and |
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(B) the district is dissolved as otherwise |
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provided by law; and |
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(7) any other terms considered appropriate by the |
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municipality and the district. |
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SECTION 2. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor has submitted the notice and Act to the |
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Texas Commission on Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, |
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lieutenant governor, and speaker of the house of representatives |
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within the required time. |
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(d) The general law relating to consent by political |
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subdivisions to the creation of districts with conservation and |
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reclamation powers and the inclusion of land in those districts has |
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been complied with. All requirements of the constitution and laws |
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of this state and the rules and procedures of the legislature with |
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respect to the notice, introduction, and passage of this Act have |
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been fulfilled and accomplished. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |
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