82R10303 RWG-F
By: Howard of Fort Bend H.B. No. 2161
A BILL TO BE ENTITLED
AN ACT
relating to the allocation of taxes and revenue after a city
consents to the creation of a municipal utility district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 54.016(f), Water Code, is amended to
read as follows:
(f) A city may provide in its written consent for the
inclusion of land in a district that a contract ("allocation
agreement") between the district and the city be entered into prior
to the first issue of bonds, notes, warrants, or other obligations
of the district. The allocation agreement shall contain the
following provisions:
(1) a method by which the district shall continue to
exist following the annexation of all territory within the district
by the city, if the district is initially located outside the
corporate limits of the city;
(2) an allocation of the taxes or revenues of the
district or the city which will assure that, if the district is
located outside the corporate limits of the city on the date its
creation is confirmed by the voters, following the date of the
inclusion of all the district's territory within the corporate
limits of the city, the total annual ad valorem taxes collected by
the city and the district from taxable property within the district
does not exceed an amount greater than the city's ad valorem tax
upon such property;
(3) an allocation of governmental services to be
provided by the city or the district following the date of the
inclusion of all of the district's territory within the corporate
limits of the city;
(4) such other terms and conditions as may be deemed
appropriate by the city.
SECTION 2. The changes in law made by this Act apply only to
an allocation agreement entered into on or after the effective date
of this Act. An allocation agreement entered into before the
effective date of this Act is governed by the law in effect on the
date the allocation agreement was entered into, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.