By Lewis of Orange                               H.B. No. 925

      75R4210 MRB-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the extraterritorial jurisdiction of municipalities.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 42.021, Local Government Code, is amended

 1-5     to read as follows:

 1-6           Sec. 42.021.  EXTENT OF EXTRATERRITORIAL JURISDICTION.  (a)

 1-7     The extraterritorial jurisdiction of a municipality is the

 1-8     unincorporated area that is contiguous to the corporate boundaries

 1-9     of the municipality and that is located within 2-1/2 miles of those

1-10     boundaries, except as provided by Subsection (b).

1-11           (b)  The extraterritorial jurisdiction:

1-12                 (1)  may not comprise a total area that is larger than

1-13     50 percent of the total incorporated area of the municipality

1-14     [within one-half mile  of those boundaries, in the case of a

1-15     municipality with fewer than 5,000 inhabitants]; and

1-16                 (2)  does not include any area that is outside the

1-17     county in which a majority of the municipality's incorporated area

1-18     is located [within one mile of those boundaries, in the case of a

1-19     municipality with 5,000 to 24,999 inhabitants;]

1-20                 [(3)  within two miles of those boundaries, in the case

1-21     of a municipality with 25,000 to 49,999 inhabitants;]

1-22                 [(4)  within 3 1/2 miles of those boundaries, in the

1-23     case of a municipality with 50,000 to 99,999 inhabitants; or]

1-24                 [(5)  within five miles of those boundaries, in the

 2-1     case of a municipality with 100,000 or more inhabitants].

 2-2           SECTION 2.  Section 42.022(b), Local Government Code, is

 2-3     amended to read as follows:

 2-4           (b)  The extraterritorial jurisdiction of a municipality may

 2-5     expand beyond the distance limitations imposed by Section 42.021(a)

 2-6     [42.021] to include an area contiguous to the otherwise existing

 2-7     extraterritorial jurisdiction of the municipality if the owners of

 2-8     the area request the expansion and if the area is at least 1,000

 2-9     feet wide at its narrowest point.

2-10           SECTION 3.  Section 42.023, Local Government Code, is amended

2-11     to read as follows:

2-12           Sec. 42.023.  REDUCTION OF EXTRATERRITORIAL JURISDICTION.

2-13     The extraterritorial jurisdiction of a municipality may not be

2-14     reduced unless the governing body of the municipality gives its

2-15     written consent by ordinance or resolution, except in cases of

2-16     judicial apportionment of overlapping extraterritorial

2-17     jurisdictions under Section 42.901 or except as the legislature

2-18     otherwise provides by statute.

2-19           SECTION 4.  Section 42.024(a), Local Government Code, as

2-20     added by Chapter 766, Acts of the 74th Legislature, Regular

2-21     Session, 1995, is amended to read as follows:

2-22           (a)  In this section:

2-23                 (1)  "Adopting municipality" means a home-rule

2-24     municipality that adopts a resolution under this section to include

2-25     an area in its extraterritorial jurisdiction [with a population of

2-26     less  than 25,000 that purchases and appropriates raw water for its

2-27     water utility through a transbasin diversion permit from one or two

 3-1     river authorities in which the municipality has territory].

 3-2                 (2)  "Releasing municipality" means a home-rule

 3-3     municipality with an extraterritorial jurisdiction from which an

 3-4     area may be released under this section [with a population of more

 3-5     than  450,000 that owns an electric utility, that has a charter

 3-6     provision allowing for limited-purpose annexation, and that has

 3-7     annexed territory for a limited purpose].

 3-8           SECTION 5.  Section 42.041(b), Local Government Code, is

 3-9     amended to read as follows:

3-10           (b)  If the governing body of the existing municipality

3-11     refuses to give its consent, a majority of the qualified voters of

3-12     the area of the proposed municipality and the owners of at least 50

3-13     percent of the land in the proposed municipality may petition the

3-14     governing body to annex the area.  If the governing body fails or

3-15     refuses to annex the area within three [six] months after the date

3-16     it receives the petition, that failure or refusal constitutes the

3-17     governing body's consent to the incorporation of the proposed

3-18     municipality.

3-19           SECTION 6.  Section 42.042, Local Government Code, is amended

3-20     to read as follows:

3-21           Sec. 42.042.  CREATION OF POLITICAL SUBDIVISION TO SUPPLY

3-22     WATER OR SEWER SERVICES, ROADWAYS, OR DRAINAGE FACILITIES IN

3-23     EXTRATERRITORIAL JURISDICTION.  (a)  A political subdivision, one

3-24     purpose of which is to supply fresh water for domestic or

3-25     commercial use or to furnish sanitary sewer services, roadways, or

3-26     drainage, may not be created in the extraterritorial jurisdiction

3-27     of a municipality unless the governing body of the municipality

 4-1     gives its written consent by ordinance or resolution in accordance

 4-2     with this subsection and the Water Code.  In giving its consent,

 4-3     the municipality may not place any conditions or other restrictions

 4-4     on the creation of the political subdivision other than those

 4-5     expressly permitted by Section 54.016(e), Water Code.

 4-6           (b)  The governing body is considered to have given its

 4-7     consent to the creation of the political subdivision if, [If the

 4-8     governing body fails  or refuses to give its consent for the

 4-9     creation of the political subdivision on mutually agreeable terms]

4-10     within 90 days after the date the governing body [it] receives a

4-11     written request for the consent from[,] a majority of the qualified

4-12     voters of the area  of the proposed political subdivision and the

4-13     owners of at least 50 percent of the land in the proposed political

4-14     subdivision, the governing body:

4-15                 (1)  fails or refuses to give its consent for the

4-16     creation of the political subdivision on mutually agreeable terms;

4-17     or

4-18                 (2)  fails or refuses to make a contract for the

4-19     provision of water and  sanitary sewer service to the area on

4-20     mutually agreeable terms [may petition the governing body to make

4-21     available to the area the water, sanitary sewer services, or both

4-22     that would be provided by the political subdivision].

4-23           (c)  [If, within 120 days after the date the governing body

4-24     receives the petition, the governing body fails to make a contract

4-25     with a majority of the qualified voters of the area of the proposed

4-26     political subdivision and the owners of at least 50 percent of the

4-27     land in the proposed political subdivision to provide the services,

 5-1     that failure constitutes the governing body's consent to the

 5-2     creation of the proposed political subdivision.]

 5-3           [(d)]  The consent to the creation of the political

 5-4     subdivision is only an authorization to initiate proceedings to

 5-5     create the political subdivision as provided by law.

 5-6           (d) [(e)]  If the consent to initiate proceedings to create

 5-7     the political subdivision is obtained, the proceedings must be

 5-8     initiated within six months after the date of the consent and must

 5-9     be finally completed within 18 months after the date of the

5-10     consent.  Failure to comply with either time requirement terminates

5-11     the consent.

5-12           (e) [(f)]  If the municipality fails or refuses to give its

5-13     consent to the creation of the political subdivision or fails or

5-14     refuses to execute a contract providing for the water or sanitary

5-15     sewer services requested within the time limits prescribed by this

5-16     section, the applicant may petition the Texas Natural Resource

5-17     Conservation Commission for the creation of the political

5-18     subdivision or the inclusion of the land in a political

5-19     subdivision.  The commission shall allow creation of the political

5-20     subdivision or inclusion of the land in a proposed political

5-21     subdivision on finding that the municipality either does not have

5-22     the reasonable ability to serve or has failed to make a legally

5-23     binding commitment with sufficient funds available to provide water

5-24     and wastewater service adequate to serve the proposed development

5-25     at a reasonable cost to the landowner.  The commitment must provide

5-26     that construction of the facilities necessary to serve the land

5-27     will begin within two years and will be substantially completed

 6-1     within 4-1/2 years after the date the written request described by

 6-2     Subsection (b) [petition] was received by [filed with] the

 6-3     municipality.

 6-4           (f) [(g)]  On an appeal taken to the district court from the

 6-5     Texas Natural Resource Conservation Commission's ruling, all

 6-6     parties to the commission hearing must be made parties to the

 6-7     appeal.  The court shall hear the appeal within 120 days after the

 6-8     date the appeal is filed.  If the case is continued or appealed to

 6-9     a higher court beyond the 120-day period, the court shall require

6-10     the appealing party or party requesting the continuance to post a

6-11     bond or other adequate security in the amount of damages that may

6-12     be incurred by any party as a result of the appeal or delay from

6-13     the commission action.  The amount of the bond or other security

6-14     shall be determined by the court after notice and hearing.  On

6-15     final disposition, a court may award damages, including any damages

6-16     for delays, attorney's fees, and costs of court to the prevailing

6-17     party.

6-18           (g) [(h)]  A municipality may not unilaterally extend the

6-19     time limits prescribed by this section through the adoption of

6-20     preapplication periods or by passage of any rules, resolutions,

6-21     ordinances, or charter provisions.  However, the municipality and

6-22     the petitioner may jointly petition the Texas Natural Resource

6-23     Conservation Commission to request an extension of the time limits.

6-24           (h) [(j)]  The consent requirements of this section do not

6-25     apply to the creation of a special utility district under Chapter

6-26     65, Water Code.  If a special utility district is to be converted

6-27     to a district with taxing authority that provides utility services,

 7-1     this section applies to the conversion.

 7-2           (i) [(k)]  This section[, except Subsection (i),] applies

 7-3     only to the proposed political subdivision's area located in the

 7-4     extraterritorial jurisdiction of the municipality.

 7-5           SECTION 7.  Section 42.044(a), Local Government Code, is

 7-6     amended to read as follows:

 7-7           (a)  In this section, "industrial district" has the meaning

 7-8     customarily given to the term but also includes:

 7-9                 (1)  any area in which tourist-related businesses and

7-10     facilities are located; and

7-11                 (2)  any area located in a political subdivision one

7-12     purpose of which is to supply fresh water for domestic or

7-13     commercial use or to provide sanitary sewer service, roadways, or

7-14     drainage.

7-15           SECTION 8.  Section 42.046(a), Local Government Code, is

7-16     amended to read as follows:

7-17           (a)  The governing body of a municipality [that has

7-18     disannexed territory previously annexed for limited purposes] may

7-19     designate an area within its extraterritorial jurisdiction as a

7-20     planned unit development district by written agreement with the

7-21     owner of the land under Subsection (b).  The agreement shall be

7-22     recorded in the deed records of the county or counties in which the

7-23     land is located.  A planned unit development district designated

7-24     under this section shall contain no less than 250 acres.  If there

7-25     are more than four owners of land to be designated as a single

7-26     planned unit development, each owner shall appoint a single person

7-27     to negotiate with the municipality and authorize that person to

 8-1     bind each owner for purposes of this section.

 8-2           SECTION 9.  Section 42.047, Local Government Code, is amended

 8-3     to read as follows:

 8-4           Sec. 42.047.  CREATION OF A POLITICAL SUBDIVISION IN AN AREA

 8-5     PROPOSED FOR A PLANNED UNIT DEVELOPMENT DISTRICT.  If the governing

 8-6     body of a municipality [that has disannexed territory previously

 8-7     annexed for limited purposes] refuses to designate a planned unit

 8-8     development district under Section 42.046 no later than 180 days

 8-9     after the date a request for the designation is filed with the

8-10     municipality by the owner of the land to be included in the planned

8-11     unit development district, the municipality shall be considered to

8-12     have given the consent required by Section 42.041 to the

8-13     incorporation of a proposed municipality including within its

8-14     boundaries all or some of such land.  If consent to incorporation

8-15     is granted by this subsection, the consenting municipality waives

8-16     all rights to challenge the proposed incorporation in any court.

8-17           SECTION 10.  Section 42.904, Local Government Code, is

8-18     amended to read as follows:

8-19           Sec. 42.904.  EXTRATERRITORIAL JURISDICTION AND VOTING RIGHTS

8-20     IN CERTAIN MUNICIPALITIES.  [(a)  This section applies only to a

8-21     municipality that has disannexed territory under Section 43.133

8-22     that it had previously annexed for limited purposes and that has

8-23     extended rules to its extraterritorial jurisdiction under Section

8-24     212.003.]

8-25           A [(b)  The] municipality shall allow all qualified voters

8-26     residing in the municipality's extraterritorial jurisdiction to

8-27     vote on any proposition that is submitted to the voters of the

 9-1     municipality and that involves:

 9-2                 (1)  an adoption of or change to an ordinance or

 9-3     charter provision that would apply to the municipality's

 9-4     extraterritorial jurisdiction; or

 9-5                 (2)  a nonbinding referendum that, if binding, would

 9-6     apply to the municipality's extraterritorial jurisdiction.

 9-7           SECTION 11.  (a)  If, on September 1, 1997,  the

 9-8     extraterritorial jurisdiction of a municipality does not comply

 9-9     with Section 42.021, Local Government Code, as amended by this Act,

9-10     the extraterritorial jurisdiction is enlarged or reduced on that

9-11     date as necessary to achieve compliance with that section.  If an

9-12     enlargement of a municipality's extraterritorial jurisdiction

9-13     results in the extraterritorial jurisdiction overlapping the

9-14     extraterritorial jurisdiction of one or more other municipalities,

9-15     the municipalities are governed by Section 42.901, Local Government

9-16     Code, except the date to be used under that section is September 1,

9-17     1997, instead of August 23, 1963.

9-18           (b)  The change in law made by this Act to Section 42.041(b),

9-19     Local Government Code, applies only to an annexation petition

9-20     filed under that section with a municipal governing body on or

9-21     after September 1, 1997.  An annexation petition filed under that

9-22     section with a municipal governing body before that date is

9-23     governed by the law in effect at the time the petition is filed,

9-24     and the former law is continued in effect for that purpose.

9-25           (c)  The change in law made by this Act to Section 42.042(b),

9-26     Local Government Code, applies only to a written request for

9-27     consent that is received under that section by a municipal

 10-1    governing body on or after September 1, 1997.  A written request

 10-2    for consent that is received under that section by a municipal

 10-3    governing body before that date is governed by the law in effect at

 10-4    the time the written request is received by the governing body, and

 10-5    the former law is continued in effect for that purpose.

 10-6          (d)  The change in law made by this Act to Section 42.904,

 10-7    Local Government Code, applies only to a municipal election for

 10-8    which the election order is adopted on or after September 1, 1997.

 10-9    A municipal election for which the election order is adopted before

10-10    September 1, 1997, is governed by the law in effect at the time the

10-11    election order is adopted, and the former law is continued in

10-12    effect for that purpose.

10-13          SECTION 12.  This Act takes effect September 1, 1997.

10-14          SECTION 13.  The importance of this legislation and the

10-15    crowded condition of the calendars in both houses create an

10-16    emergency and an imperative public necessity that the

10-17    constitutional rule requiring bills to be read on three several

10-18    days in each house be suspended, and this rule is hereby suspended.