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A BILL TO BE ENTITLED
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AN ACT
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relating to regional participation agreements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 43.0754, Local Government Code, is |
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amended by amending Subsections (c), (g), (h), (i), and (m) and |
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adding Subsection (q) to read as follows: |
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(c) A regional participation agreement may provide or allow |
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for: |
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(1) the establishment, administration, use, |
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investment, and application of a regional participation fund, which |
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shall be a special fund or escrow account to be used solely for |
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funding the costs and expenses of eligible programs or projects; |
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(2) payments to be made by a party into the regional |
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participation fund for application, currently or in the future, |
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toward eligible programs or projects; |
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(3) the methods and procedures by which eligible |
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programs or projects are prioritized, identified, and selected for |
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implementation and are planned, designed, bid, constructed, |
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administered, inspected, and completed; |
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(4) the methods and procedures for accounting for |
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amounts on deposit in, to the credit of, or expended from the |
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regional participation fund, as well as any related investment |
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income or amounts due and owing to or from any party to the fund; |
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(5) credits against payments otherwise due by any |
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party under the agreement resulting from taxes, charges, fees, |
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assessments, tolls, or other payments in support of or related to |
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the usage or costs of eligible programs or projects that are levied |
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or imposed upon, assessed against, or made applicable to a party or |
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its citizens, ratepayers, taxpayers, or constituents after the |
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effective date of the agreement; |
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(6) any type of annexation of any part of the territory |
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of a district to be deferred by an eligible municipality that is a |
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party for a mutually agreeable period; |
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(7) the release of [all or part of] the territory [of a
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district] from the extraterritorial jurisdiction of an eligible |
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municipality that is a party at a specified time or upon the |
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occurrence of specified events; |
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(8) the consent of an eligible municipality that is a |
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party to the incorporation of, or the adoption of an alternate form |
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of government by, all or part of the territory of a district at a |
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specified time or upon the occurrence of specified events; |
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(9) remedies for breach of the agreement; |
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(10) the modification, amendment, renewal, extension, |
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or termination of the agreement; |
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(11) other districts, eligible municipalities, or |
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persons to join the agreement as a party at any time; |
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(12) third-party beneficiaries to be specifically |
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designated and conferred rights or remedies under the agreement; |
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(13) the duration of the agreement, including an |
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unlimited term; |
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(14) the creation and administration of a nonprofit |
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corporation, joint powers agency, local government corporation, or |
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other agency for the purpose of administration and management of a |
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regional participation fund, program, or project under the |
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agreement; and |
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(15) any other provision or term to which the parties |
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agree. |
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(g) A regional participation agreement is not required to |
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describe the land contained within the boundaries of [a district
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that is] a party to the agreement. |
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(h) A regional participation agreement binds each party and |
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its legal successor, including a municipality or other form of |
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local government, to the agreement for the term specified in the |
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agreement and each owner and future owner of land that is subject to |
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the agreement during any annexation deferral period established in |
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the agreement. If a party, land, or landowner is excluded or |
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removed from an agreement, the removal or exclusion is effective on |
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the recordation of the amendment, supplement, modification, or |
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restatement of the agreement implementing the removal or exclusion. |
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(i) A regional participation agreement may not require a |
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party [district] to make payments from any funds that are |
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restricted, encumbered, or pledged for the payment of contractual |
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obligations or indebtedness of the party [district]. Otherwise, |
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any party may commit or pledge or may issue bonds payable from or |
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secured by a pledge of any available source of funds, including |
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unencumbered sales and use taxes, to make payments due or to become |
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due under an agreement. |
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(m) Notwithstanding any defect, ambiguity, discrepancy, |
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invalidity, or unenforceability of a regional participation |
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agreement that has been voluntarily entered into and fully executed |
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by the parties, or any contrary law, common law doctrine, or |
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municipal charter provision, and for the duration of any annexation |
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deferral period established in the agreement during which a |
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district continues to perform its obligations under the agreement: |
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(1) Section 42.023 and any other law or municipal |
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charter provision relating to the reduction of the extraterritorial |
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jurisdiction of an eligible municipality that is a party do not |
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apply, and Sections 42.041(b)-(e) do not apply to any land or owner |
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of land within a district that is a party; |
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(2) the governing body of an eligible municipality |
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that is a party may not initiate or continue an annexation |
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proceeding relating to that area but may include the area covered by |
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the agreement in a municipal annexation plan; and |
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(3) any area [of a district] that is [a party] to be |
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released from the extraterritorial jurisdiction of an eligible |
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municipality that is a party under an agreement, or that is to be |
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incorporated or included within an alternate form of government |
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with the consent of a municipality that is a party under an |
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agreement, shall, by operation of law and without further action by |
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a party or its governing body, be released from the |
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extraterritorial jurisdiction, or consent of the municipality to |
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the incorporation or adoption of an alternate form of government by |
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the district shall be deemed to have been given, as appropriate |
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under the agreement, at the time or upon the occurrence of the |
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events specified in the agreement. |
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(q) Governmental immunity from suit of a party to a regional |
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participation agreement is waived for the limited purpose of a |
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cause of action brought by a party based on or arising out of a |
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regional participation agreement. |
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SECTION 2. Section 43.0754(q), Local Government Code, as |
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added by this Act, applies only to a cause of action that accrues on |
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or after the effective date of this Act. A cause of action that |
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accrues before the effective date of this Act is governed by the law |
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in effect immediately before that date, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |