86R11013 JCG-D
 
  By: Stephenson H.B. No. 681
 
  Substitute the following for H.B. No. 681:
 
  By:  Button C.S.H.B. No. 681
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the inclusion of territory of a municipality in a county
  assistance district.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 387.003, Local Government Code, is
  amended by amending Subsection (b-1) and adding Subsection (l) to
  read as follows:
         (b-1)  If the proposed district includes any territory of a
  municipality, the commissioners court shall send notice by
  certified mail to the governing body of the municipality of the
  commissioners court's intent to create the district. If the
  municipality has created a development corporation under Chapter
  504 or 505, the commissioners court shall also send the notice to
  the board of directors of the corporation. The commissioners court
  must send the notice not later than the 60th day before the date the
  commissioners court orders the election. The governing body of the
  municipality may exclude the incorporated territory of the
  municipality from the proposed district by sending notice by
  certified mail to the commissioners court of the governing body's
  desire to exclude the [municipal] territory from the district. The
  governing body of the municipality may not exclude any territory in
  the municipality's extraterritorial jurisdiction from the proposed
  district.  The governing body must send the notice not later than
  the 45th day after the date the governing body receives notice from
  the commissioners court under this subsection. [The territory of a
  municipality that is excluded under this subsection may
  subsequently be included in:
               [(1)     the district in an election held under Subsection
  (f) with the consent of the municipality; or
               [(2)     another district after complying with the
  requirements of this subsection and after an election under
  Subsection (f).]
         (l)  On the date specified under Subdivision (2)(A), a
  district shall exclude from the district territory annexed for full
  purposes by a municipality, if:
               (1)  the district has no outstanding bonds payable
  wholly or partly from sales and use taxes and the exclusion does not
  impair any outstanding district debt or contractual obligation; and
               (2)  the municipality:
                     (A)  provides notice to the district that full
  municipal services, as defined by Section 43.056, will be provided
  to the annexed territory by a specific date; and 
                     (B)  requests that the district exclude the
  annexed territory from the territory of the district. 
         SECTION 2.  Section 387.003(b-1), Local Government Code, as
  amended by this Act, applies to notice sent to a municipality by a
  commissioners court under that section on or after the effective
  date of this Act. Notice sent before the effective date of this Act
  is governed by the law as it existed on the date the notice was sent,
  and that law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2019.