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