Texas Local Government Code - Section 43.0751. Strategic Partnerships For Continuation Of Certain Districts
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Texas Laws > Local Government Code > Texas Local Government Code - Section 43.0751. Strategic Partnerships For Continuation Of Certain Districts
§ 43.0751. STRATEGIC PARTNERSHIPS FOR CONTINUATION OF
CERTAIN DISTRICTS. (a) In this section:
(1) "District" means a water control and improvement
district or a municipal utility district created or operating under
Chapter 51 or 54, Water Code.
(2) "Limited district" means a district that, pursuant
to a strategic partnership agreement, continues to exist after
full-purpose annexation by a municipality in accordance with the
terms of a strategic partnership agreement.
(3) "Strategic partnership agreement" means a written
agreement described by this section between a municipality and a
district.
(b) The governing bodies of a municipality and a district
may negotiate and enter into a written strategic partnership
agreement for the district by mutual consent. The governing body of
a municipality, on written request from a district included in the
municipality's annexation plan under Section 43.052, shall
negotiate and enter into a written strategic partnership agreement
with the district. A district included in a municipality's
annexation plan under Section 43.052:
(1) may not submit its written request before the date
of the second hearing required under Section 43.0561; and
(2) must submit its written request before the 61st
day after the date of the second hearing required under Section
43.0561.
(c) A strategic partnership agreement shall not be
effective until adopted by the governing bodies of the municipality
and the district. The agreement shall be recorded in the deed
records of the county or counties in which the land included within
the district is located and shall bind each owner and each future
owner of land included within the district's boundaries on the date
the agreement becomes effective.
(d) Before the governing body of a municipality or a
district adopts a strategic partnership agreement, it shall conduct
two public hearings at which members of the public who wish to
present testimony or evidence regarding the proposed agreement
shall be given the opportunity to do so. Notice of public hearings
conducted by the governing body of a municipality under this
subsection shall be published in a newspaper of general circulation
in the municipality and in the district. The notice must be in the
format prescribed by Section 43.123(b) and must be published at
least once on or after the 20th day before each date. Notice of
public hearings conducted by the governing body of a district under
this subsection shall be given in accordance with the district's
notification procedures for other matters of public importance.
Any notice of a public hearing conducted under this subsection
shall contain a statement of the purpose of the hearing, the date,
time, and place of the hearing, and the location where copies of the
proposed agreement may be obtained prior to the hearing. The
governing bodies of a municipality and a district may conduct joint
public hearings under this subsection, provided that at least one
public hearing is conducted within the district.
(e) The governing body of a municipality may not annex a
district for limited purposes under this section or under the
provisions of Subchapter F until it has adopted a strategic
partnership agreement with the district. The governing body of a
municipality may not adopt a strategic partnership agreement before
the agreement has been adopted by the governing body of the affected
district.
(f) A strategic partnership agreement may provide for the
following:
(1) limited-purpose annexation of the district on
terms acceptable to the municipality and the district provided that
the district shall continue in existence during the period of
limited-purpose annexation;
(2) limited-purpose annexation of a district located
in a county with a population of more than 3.3 million:
(A) only if the municipality does not require
services, permits, or inspections or impose fees for services,
permits, or inspections within the district; and
(B) provided that this subsection does not
prevent the municipality from providing services within the
district if:
(i) the provision of services is specified
and agreed to in the agreement;
(ii) the provision of services is not
solely the result of a regulatory plan adopted by the municipality
in connection with the limited-purpose annexation of the district;
and
(iii) the district has obtained the
authorization of the governmental entity currently providing the
service;
(3) payments by the municipality to the district for
services provided by the district;
(4) annexation of any commercial property in a
district for full purposes by the municipality, notwithstanding any
other provision of this code or the Water Code, except for the
obligation of the municipality to provide, directly or through
agreement with other units of government, full provision of
municipal services to annexed territory, in lieu of any annexation
of residential property or payment of any fee on residential
property in lieu of annexation of residential property in the
district authorized by this subsection;
(5) a full-purpose annexation provision on terms
acceptable to the municipality and the district;
(6) conversion of the district to a limited district
including some or all of the land included within the boundaries of
the district, which conversion shall be effective on the
full-purpose annexation conversion date established under
Subdivision (5);
(7) agreements existing between districts and
governmental bodies and private providers of municipal services in
existence on the date a municipality evidences its intention by
adopting a resolution to negotiate for a strategic partnership
agreement with the district shall be continued and provision made
for modifications to such existing agreements; and
(8) such other lawful terms that the parties consider
appropriate.
(g) A strategic partnership agreement that provides for the
creation of a limited district under Subsection (f)(6) shall
include provisions setting forth the following:
(1) the boundaries of the limited district;
(2) the functions of the limited district and the term
during which the limited district shall exist after full-purpose
annexation, which term may be renewed successively by the governing
body of the municipality, provided that no such original or renewed
term shall exceed 10 years;
(3) the name by which the limited district shall be
known; and
(4) the procedure by which the limited district may be
dissolved prior to the expiration of any term established under
Subdivision (2).
(h) On the full-purpose annexation conversion date set
forth in the strategic partnership agreement pursuant to Subsection
(f)(5)(A), the land included within the boundaries of the district
shall be deemed to be within the full-purpose boundary limits of the
municipality without the need for further action by the governing
body of the municipality. The full-purpose annexation conversion
date established by a strategic partnership agreement may be
altered only by mutual agreement of the district and the
municipality. However, nothing herein shall prevent the
municipality from terminating the agreement and instituting
proceedings to annex the district, on request by the governing body
of the district, on any date prior to the full-purpose annexation
conversion date established by the strategic partnership
agreement. Land annexed for limited or full purposes under this
section shall not be included in calculations prescribed by Section
43.055(a).
(i) A strategic partnership agreement may provide that the
district shall not incur additional debt, liabilities, or
obligations, to construct additional utility facilities, or sell or
otherwise transfer property without prior approval of the
municipality.
(j) Except as limited by this section or the terms of a
strategic partnership agreement, a district that has been annexed
for limited purposes by a municipality and a limited district shall
have and may exercise all functions, powers, and authority
otherwise vested in a district.
(k) A municipality that has annexed all or part of a
district for limited purposes under this section may impose a sales
and use tax within the boundaries of the part of the district that
is annexed for limited purposes. Except to the extent it is
inconsistent with this section, Chapter 321, Tax Code, governs the
imposition, computation, administration, governance, and abolition
of the sales and use tax.
(l) An agreement or a decision made under this section and
an action taken under the agreement by the parties to the agreement
are not subject to approval or an appeal brought under the Water
Code unless it is an appeal of a utility rate charged by a
municipality to customers outside the corporate boundaries of the
municipality.
(m) A municipality that may annex a district for limited
purposes to implement a strategic partnership agreement under this
section shall not annex for full purposes any territory within a
district created pursuant to a consent agreement with that
municipality executed before August 27, 1979. The prohibition on
annexation established by this subsection shall expire on September
1, 1997, or on the date on or before which the municipality and any
district may have separately agreed that annexation would not take
place whichever is later.
(n) This subsection applies only to a municipality any
portion of which is located in a county that has a population of
more than 250,000 and that borders the Gulf of Mexico and is
adjacent to a county with a population of more than 3.3 million. A
municipality may impose within the boundaries of a district a
municipal sales and use tax authorized by Chapter 321, Tax Code, or
a municipal hotel occupancy tax authorized by Chapter 351, Tax
Code, that is imposed in the municipality if:
(1) the municipality has annexed the district for
limited purposes under this section; or
(2) following two public hearings on the matter, the
municipality and the district enter a written agreement providing
for the imposition of the tax or taxes.
(n-1) At the conclusion of the term of an agreement between
a municipality and a district under Subsection (n), the district
and the municipality may extend the agreement for a period not to
exceed 10 years. An agreement may be extended only once under this
subsection.
(o) If a municipality required to negotiate with a district
under this section and the requesting district fail to agree on the
terms of a strategic partnership agreement, either party may seek
binding arbitration of the issues relating to the agreement in
dispute under Section 43.0752.
(p) An agreement under this section:
(1) may not require the district to provide revenue to
the municipality solely for the purpose of obtaining an agreement
with the municipality to forgo annexation of the district; and
(2) must provide benefits to each party, including
revenue, services, and regulatory benefits, that must be reasonable
and equitable with regard to the benefits provided by the other
party.
(q) Subchapter F does not apply to a limited-purpose
annexation under a strategic partnership agreement.
Added by Acts 1995, 74th Leg., ch. 787, § 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 29, § 1, eff. May 1, 1997;
Acts 1999, 76th Leg., ch. 62, § 13.12, eff. Sept. 1, 1999; Acts
1999, 76th Leg., ch. 1167, § 11, eff. Sept. 1, 1999; Acts 2001,
77th Leg., ch. 669, § 44, eff. Sept. 1, 2001; Acts 2001, 77th
Leg., ch. 1263, § 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg.,
ch. 248, § 2, 3, eff. June 18, 2003; Acts 2003, 78th Leg., ch.
297, § 1, eff. June 18, 2003.
Section: 43.071 43.0712 43.0715 43.072 43.073 43.074 43.075 43.0751 43.0752 43.0753 43.076 43.0761 43.079 43.080 43.081
Last modified: August 11, 2007
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