Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Turner of Coleman H.B. No. 1394
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to municipal annexation requirements and the corresponding
1-3 provision of municipal services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 43.056, Local Government Code, is amended
1-6 to read as follows:
1-7 Sec. 43.056. PROVISION OF SERVICES TO ANNEXED AREA.
1-8 (a) Before the publication of the notice of the first hearing
1-9 required under Section 43.052, the governing body of the
1-10 municipality proposing the annexation shall direct its planning
1-11 department or other appropriate municipal department to prepare a
1-12 service plan that provides for the extension of full municipal
1-13 services to the area to be annexed. The municipality shall provide
1-14 the services by any of the methods by which it extends the services
1-15 to any other area of the municipality, except that the municipality
1-16 shall not require a landowner in the area to fund the capital
1-17 improvements necessary to provide municipal services in a manner
1-18 inconsistent with Chapter 395 unless otherwise agreed to by the
1-19 landowner.
1-20 (b) The service plan must include a program which the
1-21 municipality will provide full municipal services in the annexed
1-22 area no later than [4 1/2] 2 1/2 years after the effective date of
1-23 the annexation, in accordance with Subsection (d). However, under
1-24 the program the municipality must provide the following services in
2-1 the area within 60 days after the effective date of the annexation
2-2 of the area:
2-3 (1) police protection;
2-4 (2) fire protection;
2-5 (3) solid waste collection;
2-6 (4) maintenance of water and wastewater facilities in
2-7 the annexed area that are not within the service area of another
2-8 water or wastewater utility;
2-9 (5) maintenance of roads and streets, including road
2-10 and street lighting;
2-11 (6) maintenance of parks, playgrounds, and swimming
2-12 pools; and
2-13 (7) maintenance of any other publicly owned facility,
2-14 building, or service.
2-15 (b-1) The service plan of a municipality with a population
2-16 of 1.5 million or more must include a program under which the
2-17 municipality will provide full municipal services in the annexed
2-18 area no later than [4 1/2] 2 1/2 years after the effective date of
2-19 the annexation, in accordance with Subsection (d). However, under
2-20 the program the municipality must:
2-21 (1) provide the following services in the area on and
2-22 after the effective date of the annexation of the area:
2-23 (A) police protection; and
2-24 (B) solid waste collection;
2-25 (2) provide the following services in the area within
2-26 30 days after the effective date of the annexation of the area, if
2-27 the services are provided through a contract between the
2-28 municipality and a service provider:
2-29 (A) emergency medical service; and
2-30 (B) fire protection; and
3-1 (3) provide the following services in the area within
3-2 60 days after the effective date of the annexation of the area:
3-3 (A) maintenance of water and wastewater
3-4 facilities in the annexed area that are not within the service area
3-5 of another water or wastewater utility;
3-6 (B) maintenance of roads and streets, including
3-7 road and street lighting;
3-8 (C) maintenance of parks, playgrounds, and
3-9 swimming pools;
3-10 (D) maintenance of any other publicly owned
3-11 facility, building, or service; and
3-12 (E) emergency medical service and fire
3-13 protection, if the services are provided by municipal personnel and
3-14 equipment.
3-15 (c) For purposes of this section, "full municipal services"
3-16 means funded in whole or in part by municipal taxation or utility
3-17 revenues and provided by the annexing municipality within its full
3-18 purpose boundaries. A municipality with a population of 1.5
3-19 million or more may provide all or part of the municipal services
3-20 required under the service plan by contracting with service
3-21 providers. If the municipality owns a water and wastewater
3-22 utility, the municipality shall, subject to this section, extend
3-23 water and wastewater service to any annexed area not within the
3-24 service area of another water or wastewater utility. If the
3-25 municipality annexes territory included within the boundaries of a
3-26 municipal utility district, or a water control and improvement
3-27 district, the municipality shall comply with applicable state law
3-28 relating to annexation of territory within a municipal utility
3-29 district or a water control and improvement district. The service
3-30 plan shall summarize the service extension policies of the
4-1 municipal water and wastewater utility, which shall not require a
4-2 landowner to fund capital improvements necessary to provide water
4-3 or wastewater service in a manner inconsistent with Chapter 395
4-4 unless otherwise agreed to by the landowner.
4-5 (d) The service plan must also include a program under which
4-6 the municipality will initiate the acquisition or construction of
4-7 capital improvements necessary for providing municipal services
4-8 adequate to serve the area. The construction shall begin within
4-9 [two years] six months after the effective date of the annexation
4-10 of the area and shall be substantially completed within [4 1/2] 2
4-11 1/2 years after that date. The acquisition or construction of the
4-12 facilities shall be accomplished by purchase, lease, or other
4-13 contract or by the municipality succeeding to the powers, duties,
4-14 assets, and obligations of a conservation and reclamation district
4-15 as authorized or required by law. The construction of the
4-16 facilities shall be accomplished in a continuous process and shall
4-17 be completed as soon as reasonably possible, consistent with
4-18 generally accepted local engineering and architectural standards
4-19 and practices. However, the municipality does not violate this
4-20 subsection if the construction process is interrupted for any
4-21 reason by circumstances beyond the direct control of the
4-22 municipality. The requirement that construction of capital
4-23 improvements must be substantially completed within [4 1/2] 2 1/2
4-24 years does not apply to a development project or proposed
4-25 development project within an annexed area if the annexation of the
4-26 area was initiated by petition or request of the owners of land in
4-27 the annexed area and the municipality and the landowners have
4-28 agreed in writing that the development project within that area,
4-29 because of its size or projected manner of development by the
4-30 developer, is not reasonably expected to be completed within that
5-1 period.
5-2 (e) A service plan may not:
5-3 (1) require the creation of another political
5-4 subdivision;
5-5 (2) require a landowner in the area to fund the
5-6 capital improvements necessary to provide municipal services,
5-7 including without limitation water or wastewater service, in a
5-8 manner inconsistent with Chapter 395 unless otherwise agreed to by
5-9 the landowner; or
5-10 (3) provide fewer services or lower levels of services
5-11 in the area:
5-12 (A) than were in existence in the area
5-13 immediately preceding the date of the annexation; or
5-14 (B) than are otherwise available in any other
5-15 parts of the municipality with land uses and population densities
5-16 similar to those reasonably contemplated or projected in the area.
5-17 (f) If only a part of the area to be annexed is actually
5-18 annexed, the governing body shall direct the department to prepare
5-19 a revised service plan for that part.
5-20 (g) The proposed service plan must be made available for
5-21 public inspection and explained to the inhabitants of the area at
5-22 the public hearings held under Section 43.052. The plan may be
5-23 amended through negotiation at the hearings, but the provision of
5-24 any service may not be deleted. On completion of the public
5-25 hearings, the service plan shall be attached to the ordinance
5-26 annexing the area and approved as part of the ordinance.
5-27 (h) On approval by the governing body, the service plan is a
5-28 contractual obligation that this not subject to amendment or repeal
5-29 except that if the governing body determines at the public hearings
5-30 required by this subsection that changed conditions or subsequent
6-1 occurrences make the service plan unworkable or obsolete, the
6-2 governing body may amend the service plan to conform to the changed
6-3 conditions or subsequent occurrences. An amended service plan must
6-4 provide for services that are comparable to or better than those
6-5 established in the service plan before amendment. Before any
6-6 amendment is adopted, the governing body must provide an
6-7 opportunity for interested persons to be heard at public hearings
6-8 called and held in the manner provided by Section 43.052.
6-9 (i) A service plan is valid for 10 years. Renewal of the
6-10 service plan is at the discretion of the municipality. A person
6-11 residing in an annexed area may enforce a service plan by applying
6-12 for a writ of mandamus. If a court issues the writ, the
6-13 municipality shall pay the person's costs and reasonable attorney's
6-14 fees in bringing the action. A writ issued under this subsection
6-15 must provide the municipality the option of disannexing the area
6-16 within 30 days.
6-17 (j) A municipality that annexes an area shall provide the
6-18 area or cause the area to be provided with services in accordance
6-19 with the service plan for the area.
6-20 (k) This section does not require that a uniform level of
6-21 full municipal services be provided to each area of the
6-22 municipality if different characteristics of topography, land use,
6-23 and population density are reasonably considered a sufficient basis
6-24 for providing different levels of service. However, this
6-25 subsection (k) shall not be construed to allow a municipality to
6-26 refuse to provide water or wastewater service to any property
6-27 within an annexed area if the municipality provides such services
6-28 to other parts of the municipality.
6-29 SECTION 2. Chapter 43, Local Government Code, is amended by
6-30 adding a new Section 43.104 which shall read as follows:
7-1 Sec. 43.104. ANNEXATION OF DEVELOPER OR INVESTOR OWNED WATER
7-2 AND WASTEWATER UTILITIES IN THE EXTRATERRITORIAL JURISDICTION OF A
7-3 HOME RULE MUNICIPALITY WITH POPULATION OF MORE THAN 500,000.
7-4 (a) A home rule municipality with a population in excess of
7-5 500,000 may only annex property located within its extraterritorial
7-6 jurisdiction and within the certificated service area of a
7-7 developer or investor owned water and/or wastewater utility in
7-8 accordance with the provisions of this section.
7-9 (b) At least 180 days prior to the proposed date of the
7-10 adoption of an ordinance providing for the annexation of all or
7-11 part of an area located within the boundaries of the certificated
7-12 service area of a developer or investor owned water and/or
7-13 wastewater utility, the annexing municipality shall provide written
7-14 notice to the owner of the utility of its intent to annex, together
7-15 with a map showing the exact portion or portions of the utility's
7-16 certificated service area which the municipality intends to annex.
7-17 (c) Within 30 days from the date of receiving the written
7-18 notice required to be provided by the annexing municipality
7-19 according to subsection (b), the utility shall provide a response
7-20 to the municipality as to whether the utility elects: (1) to
7-21 require the annexing municipality to assume all assets and
7-22 liabilities of the utility and purchase the utility's accounts for
7-23 an amount to be indicated by the utility as established by a bona
7-24 fide appraisal of the assets and accounts of the utility; or (2)
7-25 not to require the assumption of assets and liabilities of the
7-26 utility by the annexing municipality and will continue to operate
7-27 as an independent utility after annexation. The utility's election
7-28 shall be binding on the municipality if it goes forward with the
7-29 annexation.
7-30 (d) In the event the utility elects to have the annexing
8-1 municipality assume the assets and liabilities of the utility and
8-2 pay the owners of the utility the fair market value of the
8-3 utility's assets and accounts, and the municipality does not
8-4 dispute the appraisal provided by the utility, then the
8-5 municipality must finalize negotiation of such purchase and
8-6 assumption and make payment thereon no later than 60 days before
8-7 the proposed date for adoption of the ordinance providing for the
8-8 annexation.
8-9 (e) However, in the event the annexing municipality disputes
8-10 the fair market value of the accounts and assets as established by
8-11 the utility's appraisal, the annexing municipality may conduct an
8-12 independent appraisal for the purpose of establishing fair market
8-13 value and make a counter-offer to the utility, and if the
8-14 counter-offer is acceptable to the utility, the municipality must
8-15 finalize negotiation of such purchase and assumption and make
8-16 payment thereon no later than 30 days before the proposed date for
8-17 adoption of the ordinance providing for the annexation.
8-18 (f) Notwithstanding subsections (d) and (e) above, if the
8-19 annexing municipality is unable to agree with the utility as to the
8-20 purchase price of the utility's assets and accounts, the annexing
8-21 municipality may use its powers of condemnation provided by State
8-22 law for the purpose of acquiring the utility. However, the
8-23 annexation of the area may not occur until after the condemnation
8-24 proceedings have resulted in ownership of the utility being
8-25 transferred to the annexing municipality. In the event that
8-26 condemnation proceedings are necessary, the annexing municipality
8-27 must pay the reasonable and customary court costs and attorneys'
8-28 fees incurred by the utility as a result of the condemnation
8-29 proceedings.
8-30 SECTION 3. This Act shall apply to all municipal annexations
9-1 for which any lawfully required public hearing is held after the
9-2 effective date hereof.
9-3 SECTION 4. Nothing in this Act shall be construed to
9-4 diminish or impair the rights or remedies of any person or entity
9-5 under a final judgment rendered by, or in any pending litigation
9-6 brought in, any court concerning an interpretation of the
9-7 provisions of Sec. 43.056, Local Government Code.
9-8 SECTION 5. The importance of this legislation and the
9-9 crowded condition of the calendars in both houses create an
9-10 emergency and an imperative public necessity that the
9-11 constitutional rule requiring bills to be read on three several
9-12 days in each house be suspended, and this rule is hereby suspended,
9-13 and that this Act take effect and be in force from and after its
9-14 passage, and it is so enacted.