84R6480 PAM-D
By: Burton S.B. No. 616
A BILL TO BE ENTITLED
AN ACT
relating to eliminating authority of municipalities to annex for
limited purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 43, Local Government Code,
is amended by adding Section 43.003 to read as follows:
Sec. 43.003. LIMITED PURPOSE ANNEXATION PROHIBITED. (a)
Beginning September 1, 2015, a municipality may not annex an area
for the limited purposes of applying its planning, zoning, health,
and safety ordinances in the area.
(b) This section supersedes any municipal charter provision
that conflicts with this section.
SECTION 2. Section 43.052(k), Local Government Code, is
amended to read as follows:
(k) Notwithstanding the restrictions imposed by Subsections
(e) and (g), under an agreement described by Section 43.0563 a
municipality may annex an area [for full or limited purposes] at any
time on petition of the owner of the area for the annexation if the
area:
(1) is in the municipality's annexation plan; or
(2) was previously in the municipality's annexation
plan but removed under Subsection (e).
SECTION 3. Section 43.0751(a)(2), Local Government Code, is
amended to read as follows:
(2) "Limited district" means a district that, pursuant
to a strategic partnership agreement, continues to exist after
[full-purpose] annexation by a municipality in accordance with the
terms of a strategic partnership agreement.
SECTION 4. Section 43.0751, Local Government Code, is
amended by amending Subsections (d), (e), (f), (g), (h), (j), (k),
(m), and (n) and adding Subsection (e-1) to read as follows:
(d) Before the governing body of a municipality or a
district adopts a strategic partnership agreement, it shall conduct
two public hearings at which members of the public who wish to
present testimony or evidence regarding the proposed agreement
shall be given the opportunity to do so. Notice of public hearings
conducted by the governing body of a municipality under this
subsection shall be published in a newspaper of general circulation
in the municipality and in the district[. The notice must be in the
format prescribed by Section 43.123(b)] and must be published at
least once on or after the 20th day before the [each] date of each
hearing. The notice may not be smaller than one-quarter page of a
standard-size or tabloid-size newspaper, and the headline on the
notice must be in 18-point or larger type. Notice of public
hearings conducted by the governing body of a district under this
subsection shall be given in accordance with the district's
notification procedures for other matters of public importance.
Any notice of a public hearing conducted under this subsection
shall contain a statement of the purpose of the hearing, the date,
time, and place of the hearing, and the location where copies of the
proposed agreement may be obtained prior to the hearing. The
governing bodies of a municipality and a district may conduct joint
public hearings under this subsection, provided that at least one
public hearing is conducted within the district.
(e) [The governing body of a municipality may not annex a
district for limited purposes under this section or under the
provisions of Subchapter F until it has adopted a strategic
partnership agreement with the district.] The governing body of a
municipality may not adopt a strategic partnership agreement before
the agreement has been adopted by the governing body of the affected
district.
(e-1) Beginning September 1, 2015, a strategic partnership
agreement may not provide for limited purpose annexation.
(f) A strategic partnership agreement may provide for the
following:
(1) [limited-purpose annexation of the district on
terms acceptable to the municipality and the district provided that
the district shall continue in existence during the period of
limited-purpose annexation;
[(2) limited-purpose annexation of a district located
in a county with a population of more than 3.3 million:
[(A) only if the municipality does not require
services, permits, or inspections or impose fees for services,
permits, or inspections within the district; and
[(B) provided that this subsection does not
prevent the municipality from providing services within the
district if:
[(i) the provision of services is specified
and agreed to in the agreement;
[(ii) the provision of services is not
solely the result of a regulatory plan adopted by the municipality
in connection with the limited-purpose annexation of the district;
and
[(iii) the district has obtained the
authorization of the governmental entity currently providing the
service;
[(3)] payments by the municipality to the district for
services provided by the district;
(2) [(4)] annexation of any commercial property in a
district [for full purposes] by the municipality, notwithstanding
any other provision of this code or the Water Code, except for the
obligation of the municipality to provide, directly or through
agreement with other units of government, full provision of
municipal services to annexed territory, in lieu of any annexation
of residential property or payment of any fee on residential
property in lieu of annexation of residential property in the
district authorized by this subsection;
(3) an [(5) a full-purpose] annexation provision on
terms acceptable to the municipality and the district;
(4) [(6)] conversion of the district to a limited
district including some or all of the land included within the
boundaries of the district, which conversion shall be effective on
the [full-purpose] annexation conversion date established under
Subdivision (3) [(5)];
(5) [(7)] agreements existing between districts and
governmental bodies and private providers of municipal services in
existence on the date a municipality evidences its intention by
adopting a resolution to negotiate for a strategic partnership
agreement with the district shall be continued and provision made
for modifications to such existing agreements; and
(6) [(8)] such other lawful terms that the parties
consider appropriate.
(g) A strategic partnership agreement that provides for the
creation of a limited district under Subsection (f)(4) [(f)(6)]
shall include provisions setting forth the following:
(1) the boundaries of the limited district;
(2) the functions of the limited district and the term
during which the limited district shall exist after [full-purpose]
annexation, which term may be renewed successively by the governing
body of the municipality, provided that no such original or renewed
term shall exceed 10 years;
(3) the name by which the limited district shall be
known; and
(4) the procedure by which the limited district may be
dissolved prior to the expiration of any term established under
Subdivision (2).
(h) On the [full-purpose] annexation conversion date set
forth in the strategic partnership agreement pursuant to Subsection
(f)(3) [(f)(5)(A)], the land included within the boundaries of the
district shall be deemed to be within the [full-purpose] boundary
limits of the municipality without the need for further action by
the governing body of the municipality. The [full-purpose]
annexation conversion date established by a strategic partnership
agreement may be altered only by mutual agreement of the district
and the municipality. However, nothing herein shall prevent the
municipality from terminating the agreement and instituting
proceedings to annex the district, on request by the governing body
of the district, on any date prior to the [full-purpose] annexation
conversion date established by the strategic partnership
agreement. Land annexed [for limited or full purposes] under this
section shall not be included in calculations prescribed by Section
43.055(a).
(j) Except as limited by this section or the terms of a
strategic partnership agreement, a district that has been annexed
for limited purposes by a municipality before September 1, 2015,
and a limited district shall have and may exercise all functions,
powers, and authority otherwise vested in a district.
(k) A municipality that has annexed all or part of a
district for limited purposes under this section before September
1, 2015, may impose a sales and use tax within the boundaries of the
part of the district that is annexed for limited purposes. Except
to the extent it is inconsistent with this section, Chapter 321, Tax
Code, governs the imposition, computation, administration,
governance, and abolition of the sales and use tax.
(m) A municipality that has annexed [may annex] a district
for limited purposes to implement a strategic partnership agreement
under this section before September 1, 2015, shall not annex for
full purposes any territory within a district created pursuant to a
consent agreement with that municipality executed before August 27,
1979. The prohibition on annexation established by this subsection
shall expire on September 1, 1997, or on the date on or before which
the municipality and any district may have separately agreed that
annexation would not take place whichever is later.
(n) This subsection applies only to a municipality any
portion of which is located in a county that has a population of not
less than 285,000 and not more than 300,000 and that borders the
Gulf of Mexico and is adjacent to a county with a population of more
than 3.3 million. A municipality may impose within the boundaries
of a district a municipal sales and use tax authorized by Chapter
321, Tax Code, or a municipal hotel occupancy tax authorized by
Chapter 351, Tax Code, that is imposed in the municipality if:
(1) the municipality has annexed the district for
limited purposes under this section before September 1, 2015; or
(2) following two public hearings on the matter, the
municipality and the district enter a written agreement providing
for the imposition of the tax or taxes.
SECTION 5. Subchapter D, Chapter 43, Local Government Code,
is amended by adding Section 43.07512 to read as follows:
Sec. 43.07512. LIMITED PURPOSE ANNEXATION OF ANY SPECIAL
DISTRICT PROHIBITED UNDER STRATEGIC PARTNERSHIP AGREEMENT. (a) In
this section, "special district" means a political subdivision of
this state with a limited geographic area created by local law or
under general law for a special purpose.
(b) Notwithstanding any other general or local law, a
strategic partnership agreement entered into on or after September
1, 2015, may not provide for the limited purpose annexation of all
or part of a special district.
SECTION 6. Subchapter F, Chapter 43, Local Government Code,
is amended by adding Section 43.1211 to read as follows:
Sec. 43.1211. APPLICABILITY. This subchapter applies to an
area that was annexed for a limited purpose as authorized before
September 1, 2015.
SECTION 7. Section 43.127(a), Local Government Code, is
amended to read as follows:
(a) On [Except as provided by Section 43.123(e), on] or
before the date prescribed by the regulatory plan prepared for the
limited purpose area [under Section 43.123(d)(2)], the
municipality must annex the area for full purposes. [This
requirement may be waived and the date for full-purpose annexation
postponed by written agreement between the municipality and a
majority of the affected landowners. A written agreement to waive
the municipality's obligation to annex the area for full purposes
binds all future owners of land annexed for limited purposes
pursuant to that waiver.]
SECTION 8. Section 43.203(a), Local Government Code, is
amended to read as follows:
(a) This section applies only to the [The] governing body of
a district that by resolution petitioned [may petition] a
municipality to alter the annexation status of land in the district
from full-purpose annexation to limited-purpose annexation and
before September 1, 2015:
(1) entered into an agreement to alter the status of
annexation as provided by this section; or
(2) had its status automatically altered by operation
of Subsection (c).
SECTION 9. Sections 43.0751(r), 43.121, 43.122, 43.123,
43.124, 43.125, 43.126, and 43.129, Local Government Code, are
repealed.
SECTION 10. This Act takes effect September 1, 2015.