BILL ANALYSIS H.B. 1300 By: Hilbert/et al. April 30, 1995 Committee Report (Unamended) BACKGROUND Current law allows municipalities to increase their tax base through annexation. There are few limitations or restrictions in existence which limit municipal annexation. Certain cities have used "strip annexation" to annex narrow strips of valuable commercial property along highways, roads, rivers, streams, creeks, canals and other natural and man-made features. By annexing only the valuable commercial property, the city adds a great amount of value to its tax base while leaving behind the people in the communities along the annexed area who could benefit from the city services. Strip annexation can erode the tax base of neighboring communities by removing the valuable commercial property, thus hampering the ability of rural fire prevention districts, emergency services districts, and other special districts to provide services to these suburban communities. PURPOSE H.B. 1300 would provide a check to strip annexation by certain cities in order to insure that nearby communities are not harmed by the strip annexation of valuable commercial properties. The bill would establish a framework in which strip annexations by certain cities could be reviewed by the county commissioners court and a committee made up of specified members. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1 Amends Subchapter C, Chapter 43, Local Government Code, by adding Section 43.0541 as follows: (a) Prohibits a municipality with a population of 1.5 million or more from annexing a strip of area following the natural course of a road, highway, river, stream, or other natural or constructed feature if the commissioners court of the county in which a majority of the area is located resolves that the area: (1) is primarily composed of commercial property with a high tax value; (2) is part of a larger area in which a sense of community exists; and (3) does not include all of the parts of the larger area in which the sense of community exists. (b) Requires the commissioners court to adopt the resolution opposing the annexation before the completion of the annexation. (c) Requires the findings of the commissioners court to be reviewed by an annexation review committee consisting of the following: (1) the county judge; (2) a county commissioner designated by the commissioners court; (3) a member of the municipality's governing body designated by that body; (4) an appointee of the state representative whose district includes the majority of the area proposed for annexation; and (5) an appointee of the state senator whose district includes the majority of the area proposed for annexation. (d) Requires that the designations and appointments to the review committee be made within fourteen days of the adoption of the commissioners court resolution. (e) Names the county judge as the presiding officer of the committee and requires that the committee meet at the presiding officer's call at a place convenient to the majority of the area to be annexed. (f) Provides for affirmation or reversal by the committee of the commissioners court's findings. The committee must issue the decision within 60 days of the commissioners court resolution. Provides for appeal of the committee's decision to a district court serving the county in which a majority of the area for proposed annexation is located. (g) Provides time allowance for completion of annexation when a reversal of the commissioners court finding takes place. SECTION 2 Applies only to annexations begun on or after the effective date of the Act. SECTION 3 Emergency clause. SUMMARY OF COMMITTEE ACTION H.B. 1300 was considered by the committee in a public hearing on April 4, 1995. The following persons testified in favor of the bill: Representative Paul Hilbert; and Cooper Slay, representing himself and the Houston Northwest Chamber of Commerce. The following persons testified against the bill: Bob Stout, representing Mitchell Energy and Development Corporation; Michael White, representing the Greater Houston Partnership; and Donna Kristaponis, representing the City of Houston. The bill was referred to the Subcommittee on Annexation and ETJs consisting of Representatives Combs, Howard and Krusee. After being recalled from subcommittee, the bill was considered by the committee in a public hearing on April 25, 1995. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.