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  S.B. No. 1015
 
 
 
 
AN ACT
  relating to procedures for incorporation or establishment of
  another form of local government for certain areas subject to a
  regional participation agreement.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 43, Local Government Code,
  is amended by adding Section 43.0755 to read as follows:
         Sec. 43.0755.  PROCEDURES FOR INCORPORATION OR
  ESTABLISHMENT OF ANOTHER FORM OF LOCAL GOVERNMENT FOR CERTAIN AREAS
  SUBJECT TO REGIONAL PARTICIPATION AGREEMENT. (a)  In this section,
  "district," "eligible municipality," and "regional participation
  agreement" have the meanings assigned by Section 43.0754.
         (b)  This section applies only to a district and an eligible
  municipality that have entered into a regional participation
  agreement under Section 43.0754 that authorizes any of the actions
  described by Section 43.0754(c)(6), (7), or (8).
         (c)  Notwithstanding any other law, including laws
  prescribing population or territorial requirements for
  incorporation under Section 5.901, 6.001, 7.001, or 8.001, the
  governing body of a district may order an election as provided by
  this subsection to be held on a uniform election date prescribed by
  Section 41.001, Election Code. An election under this subsection
  may, consistent with the regional participation agreement, be
  ordered for the purpose of:
               (1)  submitting to the qualified voters of the district
  the question of whether the territory of the district should be
  incorporated as a municipality;
               (2)  submitting to the qualified voters of a designated
  area of the district the question of whether that designated area
  should be incorporated as a municipality;
               (3)  submitting to the qualified voters of the district
  the question of whether the territory of the district should adopt a
  specific alternate form of local government other than a
  municipality; or
               (4)  submitting to the qualified voters of a designated
  area of the district the question of whether that designated area
  should adopt a specific alternate form of local government other
  than a municipality.
         (d)  Notwithstanding any other law:
               (1)  the authority of the governing body of a district
  to order an election under Subsection (c) is separate and
  independent and is the exclusive means of ordering any such
  election;
               (2)  all or any part of the territory of a district may
  be incorporated as a Type A, Type B, or Type C municipality, as
  determined by the governing body of the district ordering the
  incorporation election under Subsection (c)(1) or (2); and
               (3)  the requirements of Sections 7.002 and 8.002 do
  not apply to an election ordered under Subsection (c)(1) or (2).
         (e)  In an election ordered under Subsection (c)(2) or (4),
  the governing body of the district may order elections in multiple
  designated areas on the same date or order elections in designated
  areas periodically on a uniform election date.
         (f)  In any election ordered under Subsection (c), the
  governing body of the district shall also submit for confirmation
  to the voters voting in the election the proposed initial property
  tax rate determined for the municipality or alternate form of
  government, as applicable, which may not exceed the maximum rate
  authorized by law. The ballot in an election held under Subsection
  (c) shall be printed to permit voting for or against the
  proposition:  "Authorizing the (specify the incorporation of or the
  adoption of an alternate form of local government for) (insert name
  of local government) and the adoption of an initial property tax
  rate of not more than (specify the maximum rate determined)."
         (g)  In any election ordered under Subsection (c), the
  governing body of the district may also submit to the voters voting
  in the election any other measure the governing body considers
  necessary and convenient to effectuate the transition to a
  municipal or alternate form of local government, including a
  measure on the question of whether, on incorporation as a
  municipality or establishment of an alternate form of local
  government, any rights, powers, privileges, duties, purposes,
  functions, or responsibilities of the district or the district's
  authority to issue bonds and impose a tax is transferred to the
  municipality or alternate form of local government.
         (h)  If a majority of the voters voting in an election under
  Subsection (c)(2) or (4) approve the proposition submitted on the
  form of local government, the county judge of the county in which
  the municipality or alternate form of local government is located
  shall order an election for the governing body of the municipality
  or alternate form of local government to be held on a date that
  complies with the provisions of the Election Code, except that
  Section 41.001(a), Election Code, does not apply. A municipality
  or alternate form of local government resulting from an election
  described by this subsection is incorporated or established on the
  date a majority of the members of the governing body qualify and
  take office.
         (i)  If a majority of the voters voting in an election under
  Subsection (c)(1) or (3) approve the proposition submitted on the
  form of local government, the district is dissolved and the
  governing body of the district will serve as the temporary
  governing body of the municipality or alternate form of local
  government until a permanent governing body is elected as provided
  by Subsection (j).
         (j)  The temporary governing body under Subsection (i) shall
  order an election to elect the permanent governing body of the
  municipality or alternate form of local government to occur on a
  date that complies with the provisions of the Election Code, except
  that Section 41.001(a), Election Code, does not apply.
         (k)  An election ordered under Subsection (h) or (j) to elect
  members of the governing body of a municipality must be held under
  the applicable provisions of Chapter 22, 23, or 24, to the extent
  consistent with this section. An election for members of the
  governing body of an alternate form of government must be held under
  the law applicable to that form of government, to the extent
  consistent with this section.
         (l)  If a majority of the voters voting in an election under
  Subsection (c)(1) or (3) approve the proposition submitted on the
  form of local government for the territory of the district, the
  assets, liabilities, and obligations of the district are
  transferred to the form of government approved at the election.
         (m)  If a majority of the voters voting in an election under
  Subsection (c)(2) or (4) approve the proposition submitted on the
  form of local government in a designated area of the district and
  if, on the date of the election approving the form of local
  government, the district owes any debts, by bond or otherwise, the
  designated area is not released from its pro rata share of the
  indebtedness.
         (n)  For purposes of determining the initial tax rate of a
  municipality or an alternate form of local government, the tax rate
  of the district when the territory incorporated or established as
  an alternate form of government was part of the district is not
  considered for purposes of the calculations required by Section
  26.04(c), Tax Code.
         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, 2017.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1015 passed the Senate on
  April 25, 2017, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1015 passed the House on
  May 24, 2017, by the following vote:  Yeas 146, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor