By: Nichols, Williams S.B. No. 1913
(In the Senate - Filed April 25, 2013; April 25, 2013, read
first time and referred to Committee on Intergovernmental
Relations; May 2, 2013, reported favorably by the following vote:
Yeas 4, Nays 0; May 2, 2013, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to authorizing certain special districts in Montgomery
County to enter into strategic partnership agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 8302, Special District
Local Laws Code, is amended by adding Section 8302.102 to read as
follows:
Sec. 8302.102. 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.
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.
SECTION 3. The change in law made by this Act applies to a
strategic partnership agreement entered into before, on, or after
the effective date of this Act.
SECTION 4. A strategic partnership agreement entered into
by the Montgomery County Utility District No. 3 or the Montgomery
County Utility District No. 4 before the effective date of this Act
is validated in all respects as if the agreement were entered into
as authorized by law.
SECTION 5. Section 4 of this Act does not apply to any
matter that on the effective date of this Act:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final
judgment of a court of competent jurisdiction; or
(2) has been held invalid by a final judgment of a
court of competent jurisdiction.
SECTION 6. This Act takes effect September 1, 2013.
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