85R12386 PAM-D
By: Bettencourt S.B. No. 1662
A BILL TO BE ENTITLED
AN ACT
relating to limited-purpose annexation under strategic partnership
agreements for certain districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 43.0751, Local Government Code, is
amended by amending Subsections (b), (c), (d), (e), (f), (h), and
(q) and adding Subsections (c-1), (c-2), (f-1), (f-2), (f-3), and
(q-1) to read as follows:
(b) The governing bodies of a municipality and a district
may negotiate and, subject to Subsection (c)(1), enter into a
written strategic partnership agreement for the district by mutual
consent. The governing body of a municipality, on written request
from a district included in the municipality's annexation plan
under Section 43.052, shall negotiate and, subject to Subsection
(c)(1), enter into a written strategic partnership agreement with
the district. A district included in a municipality's annexation
plan under Section 43.052:
(1) may not submit its written request before the date
of the second hearing required under Section 43.0561; and
(2) must submit its written request before the 61st
day after the date of the second hearing required under Section
43.0561.
(c) A strategic partnership agreement shall not be
effective until:
(1) if the agreement provides for limited-purpose
annexation, a majority of the voters voting in an election ordered
under Subsection (c-1) approve the proposed agreement; and
(2) the proposed agreement is adopted by the governing
bodies of the municipality and the district.
(c-1) If the strategic partnership agreement provides for
limited-purpose annexation, the governing body of the district
shall order an election to occur on the first uniform election date
that provides sufficient time to comply with other requirements of
law to submit to the qualified voters of the district the question
of approving the proposed strategic partnership agreement. If a
majority of the voters voting in the election approve the adoption,
the municipality and the district may adopt the agreement.
(c-2) An [The] agreement that takes effect under Subsection
(c) shall be recorded in the deed records of the county or counties
in which the land included within the district is located and shall
bind each owner and each future owner of land included within the
district's boundaries on the date the agreement becomes effective.
(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. If the strategic
partnership agreement provides for limited-purpose annexation, the
governing body of the district must conduct the hearings required
under this subsection before the governing body orders an election
under Subsection (c-1). 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 each date. 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 only [not]
annex a district for limited purposes under this section. The
governing body of a municipality may not annex a district for
limited purposes [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 approved by a
majority of the voters of the affected district voting in an
election under Subsection (c-1) and adopted by the governing body
of the affected district.
(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;
(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;
(5) a full-purpose annexation provision on terms
acceptable to the municipality and the district, subject to
Subsections (f-1), (f-2), and (f-3);
(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 (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
(8) such other lawful terms that the parties consider
appropriate.
(f-1) A strategic partnership agreement that provides for
limited-purpose annexation must be for a term not to exceed six
years. The governing body of the district shall order an election
to occur on the last uniform election date before the expiration
date of the agreement to submit to the qualified voters of the
district the question of extending the agreement for an additional
term of not more than six years. If a majority of the voters voting
in the election approve the extension, the agreement is extended.
If less than a majority of the voters voting in the election approve
the extension, the municipality shall take any action necessary to
confirm the annexation of the district for full purposes under the
terms of the agreement or disannex the area annexed for limited
purposes.
(f-2) If a strategic partnership agreement is extended for
an additional term as provided by Subsection (f-1), the governing
body of the district shall order an election to occur on the last
uniform election date before that term expires to submit to the
qualified voters of the district the question of extending the
agreement for an additional term of not more than six years. If a
majority of the voters voting in the election under this subsection
approve the extension, the agreement is extended. If less than a
majority of the voters voting in the election approve the
extension, the municipality shall take any action necessary to
confirm the annexation of the district for full purposes under the
terms of the agreement or disannex the area annexed for limited
purposes. If a strategic partnership agreement is extended under
this subsection, the agreement may not be extended again and, at the
expiration of that extended term, the municipality shall take any
action necessary to confirm the annexation of the district for full
purposes or disannex the area annexed for limited purposes.
(f-3) This subsection applies only to a strategic
partnership agreement entered into before September 1, 2017, by a
municipality and a district that provides for limited-purpose
annexation. The governing body of the district shall order an
election to occur on the first uniform election date that allows
sufficient time to comply with other requirements of law to submit
to the qualified voters of the district the question of ratifying
the continuation of the agreement. If a majority of the voters
voting in the election ratify the agreement, the agreement is
continued for the term of the agreement. If less than a majority of
the voters voting in the election ratify the agreement, the
municipality shall take any action necessary to annex the district
for full purposes or disannex the area annexed for limited
purposes.
(h) [On the full-purpose annexation conversion date set
forth in the strategic partnership agreement pursuant to Subsection
(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).
(q) The qualified voters of a district annexed for limited
purposes under a strategic partnership agreement are entitled to
vote in municipal elections as provided by Section 43.130(a) in the
same manner as qualified voters of any other area annexed for
limited purposes, and that subsection applies to a limited-purpose
annexation under a strategic partnership agreement. Residents of a
district annexed for limited purposes under a strategic partnership
agreement are not eligible to be a candidate for or to be elected to
a municipal office as provided by Section 43.130(b).
(q-1) Except as provided by Subsection (q) [for Sections
43.130(a) and (b)], Subchapter F does not apply to a
limited-purpose annexation under a strategic partnership
agreement.
SECTION 2. Section 43.0751(n-1), Local Government Code, is
repealed.
SECTION 3. This Act takes effect September 1, 2017.