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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing certain special districts in Montgomery |
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County to enter into strategic partnership agreements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 8302, Special District |
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Local Laws Code, is amended by adding Section 8302.102 to read as |
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follows: |
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Sec. 8302.102. STRATEGIC PARTNERSHIP; CONTINUATION OF |
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DISTRICT AFTER ANNEXATION BY MUNICIPALITY. (a) The district may |
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continue to exist as a limited district after full-purpose |
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annexation by a municipality if the district and the annexing |
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municipality state the terms of the limited district's existence in |
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a strategic partnership agreement. |
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(b) A strategic partnership agreement between the district |
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and an annexing municipality may: |
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(1) authorize the conversion of the district to a |
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limited district upon full-purpose annexation and may permit the |
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limited district to continue to exist and provide services for a |
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fixed term or an indefinite term, on conditions that are mutually |
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agreeable to the district and the annexing municipality; |
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(2) contain a pledge of user fee revenues, tax |
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proceeds from taxes levied within constitutional limits, |
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miscellaneous revenues, and other funds under the control of a |
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party, to cover that party's pecuniary obligations under the |
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agreement; |
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(3) continue in effect for a fixed term or an |
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indefinite term, as may be agreed upon by the district and the |
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annexing municipality; and |
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(4) contain other provisions relating to annexation or |
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services, including enforcement provisions, as may be agreed upon |
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by the district and the annexing municipality. |
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(c) An agreement described in this section shall be valid, |
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binding, and enforceable in accordance with its terms. To achieve |
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this purpose: |
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(1) this section controls over any other laws, rules, |
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regulations, charter provisions, or ordinances, including any |
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contrary provision of Section 43.0751, Local Government Code; and |
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(2) if the district and an annexing municipality enter |
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into such an agreement, sovereign immunity is waived for each party |
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for the purpose of adjudicating claims based on the agreement, |
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including claims for money damages, declaratory judgment, and other |
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remedies, subject to the terms and conditions of this section. |
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(d) The total amount of money awarded in an adjudication |
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described by Subsection (c)(2) is limited to direct damages, |
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excluding consequential damages, exemplary damages, or damages for |
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unabsorbed office overhead, plus reasonable and necessary |
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attorney's fees that are equitable and just, plus interest as |
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allowed by law, including interest as calculated under Chapter |
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2251, Government Code. This section does not waive a defense or a |
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limitation on damages available to a party to such an agreement |
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other than a bar against suit based on sovereign immunity. |
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(e) An agreement described in this section is not a joint |
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enterprise for liability purposes. This section does not waive |
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sovereign immunity to suit for a cause of action for a negligent or |
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intentional tort or for a cause of action brought by any person or |
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entity that is not a party to an agreement described in this |
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section. |
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(f) In this section: |
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(1) "Sovereign immunity" includes immunities commonly |
|
referred to as "sovereign immunity" or "governmental immunity" and |
|
encompasses both immunity from suit and immunity from liability. |
|
(2) "Adjudicating" or "adjudication" means the |
|
bringing of a civil suit and prosecution to final judgment in a |
|
county or state court and includes the bringing of an authorized |
|
arbitration proceeding and prosecution to final resolution in |
|
accordance with any mandatory procedures established in an |
|
agreement described in this section. |
|
(g) This section provides authority for the district and an |
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annexing municipality to enter into a strategic partnership |
|
agreement, and such authority is in addition to, and separate from, |
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any authority provided by Section 43.0751, Local Government Code, |
|
and any other laws, rules, regulations, charter provisions, and |
|
ordinances. |
|
SECTION 2. Subchapter C, Chapter 8303, Special District |
|
Local Laws Code, is amended by adding Section 8303.102 to read as |
|
follows: |
|
Sec. 8303.102. STRATEGIC PARTNERSHIP; CONTINUATION OF |
|
DISTRICT AFTER ANNEXATION BY MUNICIPALITY. (a) The district may |
|
continue to exist as a limited district after full-purpose |
|
annexation by a municipality if the district and the annexing |
|
municipality state the terms of the limited district's existence in |
|
a strategic partnership agreement. |
|
(b) A strategic partnership agreement between the district |
|
and an annexing municipality may: |
|
(1) authorize the conversion of the district to a |
|
limited district upon full-purpose annexation and may permit the |
|
limited district to continue to exist and provide services for a |
|
fixed term or an indefinite term, on conditions that are mutually |
|
agreeable to the district and the annexing municipality; |
|
(2) contain a pledge of user fee revenues, tax |
|
proceeds from taxes levied within constitutional limits, |
|
miscellaneous revenues, and other funds under the control of a |
|
party, to cover that party's pecuniary obligations under the |
|
agreement; |
|
(3) continue in effect for a fixed term or an |
|
indefinite term, as may be agreed upon by the district and the |
|
annexing municipality; and |
|
(4) contain other provisions relating to annexation or |
|
services, including enforcement provisions, as may be agreed upon |
|
by the district and the annexing municipality. |
|
(c) An agreement described in this section shall be valid, |
|
binding, and enforceable in accordance with its terms. To achieve |
|
this purpose: |
|
(1) this section controls over any other laws, rules, |
|
regulations, charter provisions, or ordinances, including any |
|
contrary provision of Section 43.0751, Local Government Code; and |
|
(2) if the district and an annexing municipality enter |
|
into such an agreement, sovereign immunity is waived for each party |
|
for the purpose of adjudicating claims based on the agreement, |
|
including claims for money damages, declaratory judgment, and other |
|
remedies, subject to the terms and conditions of this section. |
|
(d) The total amount of money awarded in an adjudication |
|
described by Subsection (c)(2) is limited to direct damages, |
|
excluding consequential damages, exemplary damages, or damages for |
|
unabsorbed office overhead, plus reasonable and necessary |
|
attorney's fees that are equitable and just, plus interest as |
|
allowed by law, including interest as calculated under Chapter |
|
2251, Government Code. This section does not waive a defense or a |
|
limitation on damages available to a party to such an agreement |
|
other than a bar against suit based on sovereign immunity. |
|
(e) An agreement described in this section is not a joint |
|
enterprise for liability purposes. This section does not waive |
|
sovereign immunity to suit for a cause of action for a negligent or |
|
intentional tort or for a cause of action brought by any person or |
|
entity that is not a party to an agreement described in this |
|
section. |
|
(f) In this section: |
|
(1) "Sovereign immunity" includes immunities commonly |
|
referred to as "sovereign immunity" or "governmental immunity" and |
|
encompasses both immunity from suit and immunity from liability. |
|
(2) "Adjudicating" or "adjudication" means the |
|
bringing of a civil suit and prosecution to final judgment in a |
|
county or state court and includes the bringing of an authorized |
|
arbitration proceeding and prosecution to final resolution in |
|
accordance with any mandatory procedures established in an |
|
agreement described in this section. |
|
(g) This section provides authority for the district and an |
|
annexing municipality to enter into a strategic partnership |
|
agreement, and such authority is in addition to, and separate from, |
|
any authority provided by Section 43.0751, Local Government Code, |
|
and any other laws, rules, regulations, charter provisions, and |
|
ordinances. |
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SECTION 3. The change in law made by this Act applies to a |
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strategic partnership agreement entered into before, on, or after |
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the effective date of this Act. |
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SECTION 4. A strategic partnership agreement entered into |
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by the Montgomery County Utility District No. 3 or the Montgomery |
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County Utility District No. 4 before the effective date of this Act |
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is validated in all respects as if the agreement were entered into |
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as authorized by law. |
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SECTION 5. Section 4 of this Act does not apply to any |
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matter that on the effective date of this Act: |
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(1) is involved in litigation if the litigation |
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ultimately results in the matter being held invalid by a final |
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judgment of a court of competent jurisdiction; or |
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(2) has been held invalid by a final judgment of a |
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court of competent jurisdiction. |
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SECTION 6. This Act takes effect September 1, 2013. |