| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to the authority of a municipality to impose a fine or fee |
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| 6 | 8 | | in certain areas in the municipality's extraterritorial |
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| 7 | 9 | | jurisdiction. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Subchapter Z, Chapter 42, Local Government Code, |
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| 10 | 12 | | is amended by adding Section 42.9025 to read as follows: |
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| 11 | 13 | | Sec. 42.9025. RESTRICTION ON IMPOSING FINE OR FEE IN |
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| 12 | 14 | | CERTAIN AREAS IN EXTRATERRITORIAL JURISDICTION. (a) This section |
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| 13 | 15 | | applies only to an area that is located in a municipality's |
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| 14 | 16 | | extraterritorial jurisdiction and: |
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| 15 | 17 | | (1) that has been disannexed from the municipality |
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| 16 | 18 | | under Subchapter G, Chapter 43; or |
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| 17 | 19 | | (2) for which the municipality has attempted and |
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| 18 | 20 | | failed to obtain consent for annexation under Subchapter C-4 or |
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| 19 | 21 | | C-5, Chapter 43. |
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| 20 | 22 | | (b) Notwithstanding any other law, a municipality may not |
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| 21 | 23 | | impose under a municipal ordinance a fine or fee on a person on the |
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| 22 | 24 | | basis of: |
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| 23 | 25 | | (1) an activity that occurs wholly in an area |
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| 24 | 26 | | described by Subsection (a); or |
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| 25 | 27 | | (2) the management or ownership of property located |
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| 26 | 28 | | wholly in an area described by Subsection (a). |
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| 27 | 29 | | (c) This section does not limit a municipality, including a |
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| 28 | 30 | | municipally owned retail water, wastewater, or drainage utility, |
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| 29 | 31 | | from imposing in an area described by Subsection (a) a fine or fee, |
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| 30 | 32 | | including through the adoption and enforcement of rates, for water, |
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| 31 | 33 | | sewer, drainage, or other related utility services. |
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| 32 | 34 | | (d) This section does not apply to development or |
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| 33 | 35 | | redevelopment in an area in which an election was held under Section |
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| 34 | 36 | | 43.0117. |
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| 35 | 37 | | SECTION 2. This Act takes effect immediately if it receives |
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| 36 | 38 | | a vote of two-thirds of all the members elected to each house, as |
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| 37 | 39 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 38 | 40 | | Act does not receive the vote necessary for immediate effect, this |
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| 39 | 41 | | Act takes effect September 1, 2021. |
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| 40 | | - | ______________________________ ______________________________ |
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| 41 | | - | President of the Senate Speaker of the House |
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| 42 | | - | I hereby certify that S.B. No. 1168 passed the Senate on |
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| 43 | | - | April 23, 2021, by the following vote: Yeas 31, Nays 0. |
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| 44 | | - | ______________________________ |
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| 45 | | - | Secretary of the Senate |
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| 46 | | - | I hereby certify that S.B. No. 1168 passed the House on |
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| 47 | | - | May 23, 2021, by the following vote: Yeas 140, Nays 5, two present |
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| 48 | | - | not voting. |
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| 49 | | - | ______________________________ |
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| 50 | | - | Chief Clerk of the House |
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| 51 | | - | Approved: |
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| 52 | | - | ______________________________ |
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| 53 | | - | Date |
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| 54 | | - | ______________________________ |
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| 55 | | - | Governor |
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