BILL ANALYSIS

C.S.H.B. 1643

By: Zerwas

Land & Resource Management

Committee Report (Substituted)

BACKGROUND AND PURPOSE

A municipality with a certain population and a landowner may, under certain provisions of law, enter into a development agreement contract relating to the development of property within the municipality's extraterritorial jurisdiction. Many municipalities and developers rely on these development agreements to define and establish various standards that apply to the development of property for the duration of a project. Interested parties note that legislation is needed to clarify the scope of a development agreement.  C.S.H.B. 1643 seeks to address this matter by making statutory changes relating to the duration of a development agreement governing land in the extraterritorial jurisdiction of certain municipalities.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 1643 amends the Local Government Code to remove, in provisions relating to a written contract between the governing body of a municipality with a population of less than 1.9 million and an owner of land that is located in the extraterritorial jurisdiction of the municipality, the 15-year limit on the period for which the contract may guarantee the continuation of the extraterritorial status of the land and its immunity from annexation by the municipality and the 15-year limit on the period for which the parties to the contract may renew or extend the contract.  The bill makes a conforming change. 

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 1643 differs from the original in nonsubstantive ways by conforming to certain bill drafting conventions. 

C.S.H.B. 1643, in a provision prohibiting the total duration of a development agreement contract between the governing body of a municipality with a certain population and the owner of land that is located in the extraterritorial jurisdiction of the municipality from exceeding 45 years, retains statutory language referring to successive renewals or extensions of contracts that was removed in the original.