S.B. No. 2042
 
 
 
 
AN ACT
  relating to the authority of the New Sweden Municipal Utility
  District No. 1 and municipalities with extraterritorial
  jurisdiction in the district to enter into annexation and tax
  allocation agreements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 6, Special District Local Laws
  Code, is amended by adding Chapter 8159 to read as follows:
  CHAPTER 8159.  NEW SWEDEN MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8159.001.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the board of directors of the
  district.
               (2)  "Director" means a member of the board.
               (3)  "District" means the New Sweden Municipal Utility
  District No. 1 as created by the Texas Commission on Environmental
  Quality by order dated July 20, 2006.
  [Sections 8159.002-8159.100 reserved for expansion]
  SUBCHAPTER B. POWERS AND DUTIES
         Sec. 8159.101.  GENERAL POWERS AND DUTIES. The district
  has:
               (1)  the powers and duties provided to a municipal
  utility district by general law, including Chapters 49 and 54,
  Water Code, and Chapters 42 and 43, Local Government Code; and
               (2)  all the powers and duties necessary or appropriate
  to accomplish the purposes for which the district was created by the
  Texas Commission on Environmental Quality.
         Sec. 8159.102.  ADDITIONAL POWERS RELATED TO ANNEXATION AND
  TAX ALLOCATION AGREEMENTS. (a)  This section applies only to a
  municipality that:
               (1)  has extraterritorial jurisdiction over the entire
  area in which the district is located; and
               (2)  has made a strategic partnership agreement with
  the district.
         (b)  The district and the municipality may agree to provide
  for the:
               (1)  annexation, including limited purpose annexation,
  by the municipality of all or a part of the territory of the
  district; and
               (2)  allocation, following annexation of all or part of
  the district by the municipality, of taxes imposed on real property
  in the district between the district and the municipality.
         (c)  Notwithstanding the limitations otherwise imposed by
  Subchapter J, Chapter 54, Water Code, the district is granted the
  powers under that subchapter for the purpose of:
               (1)  defining a particular area to be taxed; and
               (2)  entering a tax allocation agreement as provided by
  this chapter.
         (d)  This chapter does not eliminate any right granted to a
  municipality under general law to annex all or part of the district.
  The powers granted to the district and a municipality under this
  chapter are cumulative of powers granted under other law.
         Sec. 8159.103.  SPECIFIC PROVISIONS OF TAX ALLOCATION
  AGREEMENT.  The tax allocation agreement made under Section
  8159.102 may contain:
               (1)  a method by which the district continues to exist
  following annexation by the municipality of all or part of the
  district territory, if the district is initially located outside
  the corporate boundaries of the municipality;
               (2)  an allocation of the ad valorem tax revenues of the
  district and the municipality from property in the district as the
  district and the municipality may agree;
               (3)  an allocation of governmental services to be
  provided by the municipality or the district following the date of
  the inclusion of all or part of the district territory in the
  corporate boundaries of the municipality, which must be
  proportionate to the allocation of taxes to which the district and
  the municipality agreed under Subdivision (2);
               (4)  an agreement under which the district assesses and
  collects ad valorem taxes on all taxable property:
                     (A)  at a rate applying to the area of the district
  included in the municipality and designated as a defined area as
  provided by Subchapter J, Chapter 54, Water Code, calculated to pay
  for the improvements, facilities, or services that primarily
  benefit that area and do not generally benefit the district as a
  whole; and
                     (B)  at a rate applying to the area of the district
  that is not included in the municipality and is designated as a
  separate defined area as provided by Subchapter J, Chapter 54,
  Water Code, calculated to pay for the improvements, facilities, or
  services that primarily benefit that area and do not generally
  benefit the district as a whole;
               (5)  a provision permitting district bonds in an area
  designated as a defined area as provided by Subchapter J, Chapter
  54, Water Code, to be sold by negotiated contract, notwithstanding
  other law;
               (6)  a provision that the allocation agreement will end
  on the date that:
                     (A)  all territory in the district is annexed by
  the municipality for full purposes; and
                     (B)  the district is dissolved as otherwise
  provided by law; and
               (7)  any other terms considered appropriate by the
  municipality and the district.
         SECTION 2.  (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 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,
  lieutenant governor, and speaker of the house of representatives
  within the required time.
         (d)  The general law relating to consent by political
  subdivisions to the creation of districts with conservation and
  reclamation powers and the inclusion of land in those districts has
  been complied with. 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 have
  been fulfilled and accomplished.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2042 passed the Senate on
  May 11, 2007, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2042 passed the House on
  May 23, 2007, by the following vote:  Yeas 144, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor