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  S.B. No. 1168
 
 
 
 
AN ACT
  relating to the authority of a municipality to impose a fine or fee
  in certain areas in the municipality's extraterritorial
  jurisdiction.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter Z, Chapter 42, Local Government Code,
  is amended by adding Section 42.9025 to read as follows:
         Sec. 42.9025.  RESTRICTION ON IMPOSING FINE OR FEE IN
  CERTAIN AREAS IN EXTRATERRITORIAL JURISDICTION. (a) This section
  applies only to an area that is located in a municipality's
  extraterritorial jurisdiction and:
               (1)  that has been disannexed from the municipality
  under Subchapter G, Chapter 43; or
               (2)  for which the municipality has attempted and
  failed to obtain consent for annexation under Subchapter C-4 or
  C-5, Chapter 43.
         (b)  Notwithstanding any other law, a municipality may not
  impose under a municipal ordinance a fine or fee on a person on the
  basis of:
               (1)  an activity that occurs wholly in an area
  described by Subsection (a); or
               (2)  the management or ownership of property located
  wholly in an area described by Subsection (a).
         (c)  This section does not limit a municipality, including a
  municipally owned retail water, wastewater, or drainage utility,
  from imposing in an area described by Subsection (a) a fine or fee,
  including through the adoption and enforcement of rates, for water,
  sewer, drainage, or other related utility services.
         (d)  This section does not apply to development or
  redevelopment in an area in which an election was held under Section
  43.0117.
         SECTION 2.  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, 2021.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1168 passed the Senate on    
  April 23, 2021, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1168 passed the House on       
  May 23, 2021, by the following vote:  Yeas 140, Nays 5, two present
  not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor