BILL ANALYSIS C.S.H.B. 2977 By: Hamric May 1, 1995 Committee Report (Substituted) BACKGROUND Section 42.001, Local Government Code, declares that it is "the policy of the state to designate certain areas as the extraterritorial jurisdiction of municipalities to promote and protect the general health, safety, and welfare of persons residing in and adjacent to the municipalities." Although the extraterritorial jurisdiction (ETJ) was established to promote the welfare of the citizens residing in it, the citizens themselves have no power to decide whether or not they want to remain under the municipality's control. The only way a subdivision may escape the ETJ is by obtaining the written consent of the municipality in an ordinance or resolution. PURPOSE The purpose of HB 2977 is to give certain areas the ability to decide, by democratic process, whether they want to remain under a municipality's jurisdiction. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1 Amends Subchapter B, Chapter 42, Local Government Code, by adding new Section 42.024, titled "Voluntary Withdrawal from Extraterritorial Jurisdiction", as follows: Subsection (a) provides that this section only applies in a county with a population of 2.8 million or more or an adjacent county. Subsection (b) outlines which areas are covered. This section applies only to: 1) an area that entered a municipality's ETJ at the request of the developer of a residential subdivision who owned the area; or 2) an area in which more than 1,000 registered voters, that has been located in the same ETJ for at least 20 years, and that has water, electricity, and solid waste services available. Subsection (c) mandates that a municipality shall give written consent to reduce its ETJ if approved by a majority of voters in the subdivision. Subsection (d) establishes the wording of the ballot. Subsection (d) also requires the municipality to hold an election on the question of ETJ withdrawal if the municipality is properly petitioned pursuant to Subsection (e). Subsection (e) states the requirements for a petition to initiate an election on the question of withdrawal from a municipality's ETJ, including a description of the area proposing to withdraw, the need for signatures of at least 20% of the voters in the area, and a statement on each page of the petition of the ballot proposition for the proposed election. Subsection (f) establishes time limits for validating the petition. Subsection (g) gives 60 days for the municipality to adopt the required ordinance after being approved by the voters. Subsection (h) defines an area in the ETJ of a municipality as a territorial unit of the municipality. SECTION 2 Emergency clause. Effective upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute adds a new Subsection (a), which states that the section applies only to a county of 2.8 million or more or an adjacent county. The substitute also changes the bracketing of the original bill by redefining the bracket in terms of an area, as opposed to a subdivision. The substitute adds a provision stating that the section applies to an area that entered the ETJ at the request of certain residential developers, and it also adds the requirement that the area must have been located in the same ETJ for at least 20 years. The substitute renumbers the sections to reflect the added provisions and makes other conforming changes. The substitute also adds a requirement that a withdrawal petition presented to a municipality must include a description of the area proposing to withdraw. SUMMARY OF COMMITTEE ACTION H.B. 2977 was considered by the committee in a public hearing on April 4, 1995. The committee considered a complete substitute for the bill. The substitute was withdrawn without objection. The following persons testified in favor of the bill: Curtis Cook, representing Rural Fire Prevention District #28 and the Association of Rural Fire Prevention Districts; and Ken Rigsbee, representing himself. The following persons testified against the bill: Michael White, representing the Greater Houston Partnership; Dan Doherty, representing the City of Houston; Luther Polnau, representing the City of Austin; and Bob Stout, representing Mitchell Energy and Development Corporation. 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 committee considered a complete substitute for the bill. The substitute was adopted without objection. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 6 ayes, 0 nays, 0 pnv, 3 absent.