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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of taxes and revenue after a city |
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consents to the creation of a municipal utility district. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 54.016(f), Water Code, is amended to |
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read as follows: |
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(f) A city may provide in its written consent for the |
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inclusion of land in a district that a contract ("allocation |
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agreement") between the district and the city be entered into prior |
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to the first issue of bonds, notes, warrants, or other obligations |
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of the district. The allocation agreement shall contain the |
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following provisions: |
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(1) a method by which the district shall continue to |
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exist following the annexation of all territory within the district |
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by the city, if the district is initially located outside the |
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corporate limits of the city; |
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(2) an allocation of the taxes or revenues of the |
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district or the city which will assure that, if the district is |
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located outside the corporate limits of the city on the date its |
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creation is confirmed by the voters, following the date of the |
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inclusion of all the district's territory within the corporate |
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limits of the city, the total annual ad valorem taxes collected by |
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the city and the district from taxable property within the district |
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does not exceed an amount greater than the city's ad valorem tax |
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upon such property; |
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(3) an allocation of governmental services to be |
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provided by the city or the district following the date of the |
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inclusion of all of the district's territory within the corporate |
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limits of the city; |
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(4) such other terms and conditions as may be deemed |
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appropriate by the city. |
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SECTION 2. The changes in law made by this Act apply only to |
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an allocation agreement entered into on or after the effective date |
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of this Act. An allocation agreement entered into before the |
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effective date of this Act is governed by the law in effect on the |
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date the allocation agreement was entered into, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |