Texas 2009 - 81st Regular

Texas House Bill HB2726 Compare Versions

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1	1	H.B. No. 2726
2	2
3	3
4	4	AN ACT
5	5	relating to regional participation agreements.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 43.0754(a)(2), Local Government Code, is
8	8	amended to read as follows:
9	9	(2) "Eligible municipality" means a municipality:
10	10	(A) that has a population of 1.5 million or more
11	11	and that includes in its extraterritorial jurisdiction at least 90
12	12	percent by area of the territory of a district; [or]
13	13	(B) that includes in its extraterritorial
14	14	jurisdiction not more than 10 percent of the territory of a district
15	15	that has entered into a regional participation agreement under this
16	16	section with another eligible municipality described by Paragraph
17	17	(A); or
18	18	(C) with corporate boundaries contiguous to the
19	19	boundaries of a district that has entered into a regional
20	20	participation agreement under this section with another eligible
21	21	municipality described by Paragraph (A) [under this section].
22	22	SECTION 2. Section 43.0754, Local Government Code, is
23	23	amended by amending Subsections (c), (g), (h), (i), and (m) and
24	24	adding Subsection (q) to read as follows:
25	25	(c) A regional participation agreement may provide or allow
26	26	for:
27	27	(1) the establishment, administration, use,
28	28	investment, and application of a regional participation fund, which
29	29	shall be a special fund or escrow account to be used solely for
30	30	funding the costs and expenses of eligible programs or projects;
31	31	(2) payments to be made by a party into the regional
32	32	participation fund for application, currently or in the future,
33	33	toward eligible programs or projects;
34	34	(3) the methods and procedures by which eligible
35	35	programs or projects are prioritized, identified, and selected for
36	36	implementation and are planned, designed, bid, constructed,
37	37	administered, inspected, and completed;
38	38	(4) the methods and procedures for accounting for
39	39	amounts on deposit in, to the credit of, or expended from the
40	40	regional participation fund, as well as any related investment
41	41	income or amounts due and owing to or from any party to the fund;
42	42	(5) credits against payments otherwise due by any
43	43	party under the agreement resulting from taxes, charges, fees,
44	44	assessments, tolls, or other payments in support of or related to
45	45	the usage or costs of eligible programs or projects that are levied
46	46	or imposed upon, assessed against, or made applicable to a party or
47	47	its citizens, ratepayers, taxpayers, or constituents after the
48	48	effective date of the agreement;
49	49	(6) any type of annexation of any part of the territory
50	50	of a district to be deferred by an eligible municipality that is a
51	51	party for a mutually agreeable period;
52	52	(7) the release of [all or part of the] territory [of a
53	53	district] from the extraterritorial jurisdiction of an eligible
54	54	municipality that is a party at a specified time or upon the
55	55	occurrence of specified events;
56	56	(8) the consent of an eligible municipality that is a
57	57	party to the incorporation of, or the adoption of an alternate form
58	58	of government by, all or part of the territory of a district at a
59	59	specified time or upon the occurrence of specified events;
60	60	(9) remedies for breach of the agreement;
61	61	(10) the modification, amendment, renewal, extension,
62	62	or termination of the agreement;
63	63	(11) other districts, eligible municipalities, or
64	64	persons to join the agreement as a party at any time;
65	65	(12) third-party beneficiaries to be specifically
66	66	designated and conferred rights or remedies under the agreement;
67	67	(13) the duration of the agreement, including an
68	68	unlimited term;
69	69	(14) the creation and administration of a nonprofit
70	70	corporation, joint powers agency, local government corporation, or
71	71	other agency for the purpose of administration and management of a
72	72	regional participation fund, program, or project under the
73	73	agreement; and
74	74	(15) any other provision or term to which the parties
75	75	agree.
76	76	(g) A regional participation agreement is not required to
77	77	describe the land contained within the boundaries of [a district
78	78	that is] a party to the agreement, but any territory to be released
79	79	from the extraterritorial jurisdiction of an eligible municipality
80	80	that is a party under an agreement must be described in sufficient
81	81	detail to convey title to land and the description must be made a
82	82	part of the agreement.
83	83	(h) A regional participation agreement binds each party and
84	84	its legal successor, including a municipality or other form of
85	85	local government, to the agreement for the term specified in the
86	86	agreement and each owner and future owner of land that is subject to
87	87	the agreement during any annexation deferral period established in
88	88	the agreement. If a party, land, or landowner is excluded or
89	89	removed from an agreement, the removal or exclusion is effective on
90	90	the recordation of the amendment, supplement, modification, or
91	91	restatement of the agreement implementing the removal or exclusion.
92	92	(i) A regional participation agreement may not require a
93	93	party [district] to make payments from any funds that are
94	94	restricted, encumbered, or pledged for the payment of contractual
95	95	obligations or indebtedness of the party [district]. Otherwise,
96	96	any party may commit or pledge or may issue bonds payable from or
97	97	secured by a pledge of any available source of funds, including
98	98	unencumbered sales and use taxes, to make payments due or to become
99	99	due under an agreement.
100	100	(m) Notwithstanding any defect, ambiguity, discrepancy,
101	101	invalidity, or unenforceability of a regional participation
102	102	agreement that has been voluntarily entered into and fully executed
103	103	by the parties, or any contrary law, common law doctrine, or
104	104	municipal charter provision, and for the duration of any annexation
105	105	deferral period established in the agreement during which a
106	106	district continues to perform its obligations under the agreement:
107	107	(1) Section 42.023 and any other law or municipal
108	108	charter provision relating to the reduction of the extraterritorial
109	109	jurisdiction of an eligible municipality that is a party do not
110	110	apply, and Sections 42.041(b)-(e) do not apply to any land or owner
111	111	of land within a district that is a party;
112	112	(2) the governing body of an eligible municipality
113	113	that is a party may not initiate or continue an annexation
114	114	proceeding relating to that area but may include the area covered by
115	115	the agreement in a municipal annexation plan; and
116	116	(3) any area [of a district] that is [a party] to be
117	117	released from the extraterritorial jurisdiction of an eligible
118	118	municipality that is a party under an agreement, or that is to be
119	119	incorporated or included within an alternate form of government
120	120	with the consent of a municipality that is a party under an
121	121	agreement, shall, by operation of law and without further action by
122	122	a party or its governing body, be released from the
123	123	extraterritorial jurisdiction, or consent of the municipality to
124	124	the incorporation or adoption of an alternate form of government by
125	125	the district shall be deemed to have been given, as appropriate
126	126	under the agreement, at the time or upon the occurrence of the
127	127	events specified in the agreement.
128	128	(q) For purposes of Subchapter I, Chapter 271:
129	129	(1) a district or eligible municipality is a "local
130	130	governmental entity" within the meaning of Section 271.151(3); and
131	131	(2) a regional participation agreement is a "contract
132	132	subject to this subchapter" within the meaning of Section
133	133	271.151(2), without regard to whether the agreement is for
134	134	providing goods or services.
135	135	SECTION 3. Section 43.0754(q), Local Government Code, as
136	136	added by this Act, applies only to a cause of action that accrues on
137	137	or after the effective date of this Act. A cause of action that
138	138	accrues before the effective date of this Act is governed by the law
139	139	in effect immediately before that date, and that law is continued in
140	140	effect for that purpose.
141	141	SECTION 4. This Act takes effect September 1, 2009.
142	142	______________________________ ______________________________
143	143	President of the Senate Speaker of the House
144	144	I certify that H.B. No. 2726 was passed by the House on April
145	145	22, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not
146	146	voting.
147	147	______________________________
148	148	Chief Clerk of the House
149	149	I certify that H.B. No. 2726 was passed by the Senate on May
150	150	20, 2009, by the following vote: Yeas 29, Nays 0.
151	151	______________________________
152	152	Secretary of the Senate
153	153	APPROVED: _____________________
154	154	Date
155	155	_____________________
156	156	Governor