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