85R12112 DMS-F
By: Creighton S.B. No. 2014
A BILL TO BE ENTITLED
AN ACT
relating to consent of municipalities in the creation of municipal
utility districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 54.016(a) and (f), Water Code, are
amended to read as follows:
(a) No land within the corporate limits of a city or within
the extraterritorial jurisdiction of a city, shall be included in a
district unless the city grants its written consent, by resolution
or ordinance, to the inclusion of the land within the district in
accordance with Section 42.042, Local Government Code, and this
section. The request to a city for its written consent to the
creation of a district, shall be signed by a majority in value of
the holders of title of the land within the proposed district as
indicated by the county tax rolls or, if there are more than 50
persons holding title to the land in the proposed district as
indicated by the county tax rolls, the request to the city will be
sufficient if it is signed by 50 holders of title to the land in the
district. A petition for the written consent of a city to the
inclusion of land within a district shall describe the boundaries
of the land to be included in the district by metes and bounds or by
lot and block number, if there is a recorded map or plat and survey
of the area, and state the general nature of the work proposed to be
done, the necessity for the work, and the cost of the project as
then estimated by those filing the petition. If, at the time a
petition is filed with a city for creation of a district, the
district proposes to connect to a city's water or sewer system or
proposes to contract with a regional water and wastewater provider
which has been designated as such by the commission as of the date
such petition is filed, to which the city has made a capital
contribution for the water and wastewater facilities serving the
area, the proposed district shall be designated as a "city service
district." If such proposed district does not meet the criteria for
a city service district at the time the petition seeking creation is
filed, such district shall be designated as a "noncity service
district." The city's consent shall not place any restrictions or
conditions on the creation of a noncity service district as defined
by this chapter [Chapter 54 of the Texas Water Code] other than
those expressly provided in Subsection (e) of this section and
shall specifically not limit the amounts of the district's bonds. A
city may not require annexation as a consent to creation of any
district. A city shall not refuse to approve a district bond issue
for any reason except that the district is not in compliance with
valid consent requirements applicable to the district. If a city
grants its written consent without the concurrence of the applicant
to the creation of a noncity service district containing conditions
or restrictions that the petitioning land owner or owners
reasonably believe exceed the city's powers, such land owner or
owners may petition the commission to create the district and to
modify the conditions and restrictions of the city's consent. The
commission may declare any provision of the consent to be null and
void. The commission may approve the creation of a district that
includes any portion of the land covered by the city's consent to
creation of the district. The legislature may create and may
validate the creation of a district that includes any portion of the
land covered by the city's consent to the creation of the district.
(f) A city may provide in its written consent for the
inclusion of land in a district that is initially located wholly or
partly outside the corporate limits of the city 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 at the time the creation of the
district is approved by the district's voters;
(2) an allocation of the taxes or revenues of the
district or the city which will assure that, 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; and
(4) such other terms and conditions as may be deemed
appropriate by the city.
SECTION 2. The change in law made to Section 54.016(f),
Water Code, as amended by this Act, applies only to an agreement
entered into on or after the effective date of this Act. An
agreement entered into before the effective date of this Act is
governed by the law in effect on the date the agreement was entered
into, and the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.