84R9900 GRM-F By: Fallon H.B. No. 3099 Substitute the following for H.B. No. 3099: By: Fallon C.S.H.B. No. 3099 A BILL TO BE ENTITLED AN ACT relating to the effect of municipal annexation of the Venable Ranch Municipal Utility District No. 1 of Denton County; affecting the authority to impose a tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 8469.251(a), Special District Local Laws Code, is amended to read as follows: (a) Notwithstanding any other law, if all of the territory of the district or a district created by the division of the district is annexed by the city into the corporate limits of the city [before the date of the election held to confirm the creation of the district and the district is confirmed at that election], the district may not be dissolved and continues in existence following annexation until: (1) water, sanitary sewer, and drainage improvements and roads have been constructed to serve at least 90 percent of the territory of the district capable of development; or (2) the board adopts a resolution consenting to the dissolution of the district. SECTION 2. Section 8469.251(b), Special District Local Laws Code, as added by Chapter 1244 (S.B. 1877), Acts of the 83rd Legislature, Regular Session, 2013, is amended to read as follows: (b) After annexation by the city: (1) [the district may not impose an ad valorem tax; [(2)] the district may impose a special assessment in the manner provided by Subchapter F, Chapter 375, Local Government Code; and (2) [(3)] Section 375.161, Local Government Code, does not apply to the district. SECTION 3. Section 8469.251(b), Special District Local Laws Code, as added by Chapter 1308 (H.B. 3914), Acts of the 83rd Legislature, Regular Session, 2013, is redesignated as Section 8469.251(c) to read as follows: (c) [(b)] Notwithstanding Section 54.016(f)(2), Water Code, an allocation agreement between the city and the district that provides for the allocation of the taxes or revenues of the district and the city following the date of inclusion of the district's territory in the corporate limits of the city may provide that the total annual ad valorem taxes collected by the city and the district from taxable property within the city's corporate limits may exceed the city's ad valorem tax on that property. SECTION 4. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 5. This Act takes effect September 1, 2015.