By Lewis of Orange                              H.B. No. 1508

      75R5340 MRB-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to municipal annexation.

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

 1-4           SECTION 1.  Section 43.031, Local Government Code, is amended

 1-5     to read as follows:

 1-6           Sec. 43.031.  AUTHORITY OF ADJACENT MUNICIPALITIES TO CHANGE

 1-7     BOUNDARIES BY AGREEMENT.  (a)  Adjacent municipalities may make

 1-8     mutually agreeable changes in their boundaries in regard to an area

 1-9     [of areas] that is [are] less than 1,000 feet in width if the

1-10     changes are approved by a majority of the registered voters of the

1-11     area and by the owners of at least 50 percent of the land in the

1-12     area.

1-13           (b)  The approval must be given in a document signed by the

1-14     registered voters and owners.  The document may consist of pages

1-15     that are circulated separately among the voters and owners.  The

1-16     document must be entered into the minutes of a meeting of the

1-17     governing body of at least one of the municipalities and must

1-18     contain:

1-19                 (1)  the signature of the voter or owner;

1-20                 (2)  the signer's printed name;

1-21                 (3)  the signer's voter registration number if the

1-22     person signs the document in the capacity of a registered voter;

1-23                 (4)  the signer's residence address; and

1-24                 (5)  the date of signing.

 2-1           (c)  A signature on the document is invalid if the signer

 2-2     signed the document earlier than the 180th day before the date the

 2-3     document is first entered in the minutes of the governing body of

 2-4     one of the municipalities.

 2-5           SECTION 2.  Section 43.052(b), Local Government Code, is

 2-6     amended to read as follows:

 2-7           (b)  At least one of the hearings must be held in the area

 2-8     proposed for annexation [if more than 20 adult residents of the

 2-9     area file a written protest of the annexation with the secretary of

2-10     the municipality within 10 days after the date of the publication

2-11     of the notice required by this section.  The protest must state the

2-12     name, address, and age of each protester who signs].

2-13           SECTION 3.  Section 43.053, Local Government Code, is amended

2-14     to read as follows:

2-15           Sec. 43.053.  PERIOD FOR COMPLETION OF ANNEXATION[;

2-16     EFFECTIVE DATE].  [(a)]  The annexation of an area must be

2-17     completed within 90 days after the date the governing body

2-18     institutes the annexation proceedings or those proceedings are

2-19     void.  Any period during which the municipality is restrained or

2-20     enjoined by a court of competent jurisdiction from annexing the

2-21     area is not included in computing the 90-day period.

2-22           [(b)  Notwithstanding any provision of a municipal charter to

2-23     the contrary, the governing body of a municipality with a

2-24     population of 1.5 million or more may provide that an annexation

2-25     take effect on any date within 90 days after the date of the

2-26     adoption of the ordinance providing for the annexation.]

2-27           SECTION 4.  Section 43.054, Local Government Code, is amended

 3-1     to read as follows:

 3-2           Sec. 43.054.  WIDTH REQUIREMENTS.  (a)  A municipality may

 3-3     not annex a publicly or privately owned area, including a strip of

 3-4     area following the course of a road, highway, river, stream, or

 3-5     creek, unless the width of the area at its narrowest point is at

 3-6     least 2,000 [1,000] feet.

 3-7           (b)  The prohibition established by Subsection (a) does not

 3-8     apply if:

 3-9                 (1)  the boundaries of the municipality are contiguous

3-10     to the area on at least two sides; or

3-11                 (2)  the annexation is initiated on the written

3-12     petition of the owners or of a majority of the qualified voters of

3-13     the area[; or]

3-14                 [(3)  the area abuts or is contiguous to another

3-15     jurisdictional boundary].

3-16           SECTION 5.  Section 43.055(c), Local Government Code, is

3-17     amended to read as follows:

3-18           (c)  A municipality carrying over an allocation may not annex

3-19     in a calendar year a total area greater than 20 [30] percent of the

3-20     incorporated area of the municipality as of January 1 of that year.

3-21           SECTION 6.  Section 43.056, Local Government Code, is amended

3-22     by redesignating part of Subsection (c) as Subsection (a), amending

3-23     the new Subsection (a), and relettering and amending the other

3-24     subsections to read as follows:

3-25           Sec. 43.056.  PROVISION OF SERVICES TO ANNEXED AREA.  (a)  In

3-26     [(c)  For purposes of] this section, "full municipal services"

3-27     means  services funded in whole or in part by municipal taxation

 4-1     and provided by the annexing municipality within its full-purpose

 4-2     boundaries.

 4-3           (b) [(a)] Before the publication of the notice of the first

 4-4     hearing required under Section 43.052, the governing body of the

 4-5     municipality proposing the annexation shall [direct its planning

 4-6     department or other appropriate municipal department to] prepare a

 4-7     service plan that provides for the extension of full municipal

 4-8     services to the area to be annexed.  The municipality shall provide

 4-9     the services by any of the methods by which it extends the services

4-10     to any other area of the municipality.

4-11           (c)  [(b)  The service plan must include a program under

4-12     which the municipality will provide full municipal services in the

4-13     annexed area no later than 4 1/2 years after the effective date of

4-14     the annexation, in accordance with Subsection (d).  However, under

4-15     the program the municipality must provide the following services in

4-16     the area within 60 days after the effective date of the annexation

4-17     of the area:]

4-18                 [(1)  police protection;]

4-19                 [(2)  fire protection;]

4-20                 [(3)  solid waste collection;]

4-21                 [(4)  maintenance of water and wastewater facilities in

4-22     the annexed area that are not within the service area of another

4-23     water or wastewater utility;]

4-24                 [(5)  maintenance of roads and streets, including road

4-25     and street lighting;]

4-26                 [(6)  maintenance of parks, playgrounds, and swimming

4-27     pools; and]

 5-1                 [(7)  maintenance of any other publicly owned facility,

 5-2     building, or service.]

 5-3           [(b-1)]  The service plan [of a municipality with a

 5-4     population of 1.5 million or more] must include a program under

 5-5     which the municipality will provide full municipal services in the

 5-6     annexed area no later than 4 1/2 years after the effective date of

 5-7     the annexation, in accordance with Subsection (e) [(d)].  However,

 5-8     under the program the municipality must:

 5-9                 (1)  provide the following services in the area on and

5-10     after the effective date of the annexation of the area:

5-11                       (A)  police protection;  and

5-12                       (B)  solid waste collection;

5-13                 (2)  provide the following services in the area within

5-14     30 days after the effective date of the annexation of the area, if

5-15     the services are provided through a contract between the

5-16     municipality and a service provider:

5-17                       (A)  emergency medical service; and

5-18                       (B)  fire protection; and

5-19                 (3)  provide the following services in the area within

5-20     60 days after the effective date of the annexation of the area:

5-21                       (A)  maintenance of water and wastewater

5-22     facilities in the annexed area that are not within the service area

5-23     of another water or wastewater utility;

5-24                       (B)  maintenance of roads and streets, including

5-25     road and street lighting;

5-26                       (C)  maintenance of parks, playgrounds, and

5-27     swimming pools;

 6-1                       (D)  maintenance of any other publicly owned

 6-2     facility, building, or service; and

 6-3                       (E)  emergency medical service and fire

 6-4     protection, if the services are provided by municipal personnel and

 6-5     equipment.

 6-6           (d)  A municipality [with a population of 1.5 million or

 6-7     more] may provide all or part of the municipal services required

 6-8     under the service plan by contracting with service providers.  If

 6-9     the municipality owns a water and wastewater utility, the

6-10     municipality shall, subject to this section, extend water and

6-11     wastewater service to any annexed area not within the service area

6-12     of another water or wastewater utility.  If the municipality

6-13     annexes territory included within the boundaries of a municipal

6-14     utility district or a water control and improvement district, the

6-15     municipality shall comply with applicable state law relating to

6-16     annexation of territory within a municipal utility district or a

6-17     water control and improvement district.  The service plan shall

6-18     summarize the service extension policies of the municipal water and

6-19     wastewater utility.

6-20           (e) [(d)]  The service plan must also include a program under

6-21     which the municipality will initiate the acquisition or

6-22     construction of capital improvements necessary for providing

6-23     municipal services adequate to serve the area.  The construction

6-24     shall begin within two years after the effective date of the

6-25     annexation of the area and shall be substantially completed within

6-26     4 1/2 years after that date.  The acquisition or construction of

6-27     the facilities shall be accomplished by purchase, lease, or other

 7-1     contract or by the municipality succeeding to the powers, duties,

 7-2     assets, and obligations of a conservation and reclamation district

 7-3     as authorized or required by law.  The construction of the

 7-4     facilities shall be accomplished in a continuous process and shall

 7-5     be completed as soon as reasonably possible, consistent with

 7-6     generally accepted local engineering and architectural standards

 7-7     and practices.  However, the municipality does not violate this

 7-8     subsection if the construction process is interrupted for any

 7-9     reason by circumstances beyond the direct control of the

7-10     municipality.  The requirement that construction of capital

7-11     improvements must be substantially completed within 4 1/2 years

7-12     does not apply to a development project or proposed development

7-13     project within an annexed area if the annexation of the area was

7-14     initiated by petition or request of the owners of land in the

7-15     annexed area and the municipality and the landowners have agreed in

7-16     writing that the development project within that area, because of

7-17     its size or projected manner of development by the developer, is

7-18     not reasonably expected to be completed within that period.

7-19           (f) [(e)]  A service plan may not:

7-20                 (1)  require the creation of another political

7-21     subdivision;

7-22                 (2)  require a landowner in the area to fund the

7-23     capital improvements necessary to provide municipal services in a

7-24     manner inconsistent with Chapter 395 unless otherwise agreed to by

7-25     the landowner;  or

7-26                 (3)  provide fewer services or lower levels of services

7-27     in the area:

 8-1                       (A)  than were in existence in the area

 8-2     immediately preceding the date of the annexation;  or

 8-3                       (B)  than are otherwise available in other parts

 8-4     of the municipality [with land uses and population densities

 8-5     similar to those reasonably contemplated or projected in the area].

 8-6           (g) [(f)]  If only a part of the area to be annexed is

 8-7     actually annexed, the governing body shall direct the department to

 8-8     prepare a revised service plan for that part.

 8-9           (h) [(g)]  The proposed service plan must be made available

8-10     for public inspection and explained to the inhabitants of the area

8-11     at the public hearings held under Section 43.052.  The plan may be

8-12     amended through negotiation at the hearings, but the provision of

8-13     any service may not be deleted.  On completion of the public

8-14     hearings, the service plan shall be attached to the ordinance

8-15     annexing the area and approved as part of the ordinance.

8-16           (i) [(h)]  On approval by the governing body, the service

8-17     plan is a contractual obligation that is not subject to amendment

8-18     or repeal except that if the governing body determines at the

8-19     public hearings required by this subsection that changed conditions

8-20     or subsequent occurrences make the service plan unworkable or

8-21     obsolete, the governing body may amend the service plan to conform

8-22     to the changed conditions or subsequent occurrences.  An amended

8-23     service plan must provide for services that are comparable to or

8-24     better than those established in the service plan before amendment.

8-25     Before any amendment is adopted, the governing body must provide an

8-26     opportunity for interested persons to be heard at public hearings

8-27     called and held in the manner provided by Section 43.052.

 9-1           (j)  As part of the service plan, the municipality must

 9-2     provide a guarantee that the municipality's obligations in the

 9-3     service plan will be met within the time limits prescribed by

 9-4     Subsection (c) and must identify methods of financing those

 9-5     obligations to ensure that the municipality will comply with the

 9-6     guarantee.

 9-7           (k) [(i)]  A service plan is valid for five [10] years.

 9-8     [Renewal of the service plan is at the discretion of the

 9-9     municipality.]  A person residing in an annexed area may enforce a

9-10     service plan by applying for a writ of mandamus.  If a court issues

9-11     the writ, the municipality shall pay the person's costs and

9-12     reasonable attorney's fees in bringing the action.  A writ issued

9-13     under this subsection must provide the municipality the option of

9-14     disannexing the area within 30 days.  If the municipality

9-15     disannexes the area under this subsection, the municipality:

9-16                 (1)  shall repay to the owners of property in the area

9-17     the ad valorem taxes that the owners paid and that were imposed on

9-18     the property during the period the area was annexed; and

9-19                 (2)  may not annex the area again until after the 10th

9-20     anniversary of the date of the disannexation.

9-21           (l) [(j)]  A municipality that annexes an area shall provide

9-22     the area or cause the area to be provided with services in

9-23     accordance with the service plan for the area.

9-24           (m) [(k)]  This section does not require that a uniform level

9-25     of full municipal services be provided to each area of the

9-26     municipality if different characteristics of topography, land use,

9-27     and population density are considered a sufficient basis for

 10-1    providing different levels of service.

 10-2          SECTION 7.  Section 43.0565(b), Local Government Code, is

 10-3    amended to read as follows:

 10-4          (b)  A municipality with a population of more than 5,000 [1.5

 10-5    million] that includes within its boundaries annexed areas without

 10-6    water service, sewer service, or both:

 10-7                (1)  shall develop a service plan that:

 10-8                      (A)  must identify developed tracts in annexed

 10-9    areas of the municipality that do not have water service, sewer

10-10    service, or both and must provide a procedure for providing water

10-11    service, sewer service, or both to those developed tracts;

10-12                      (B)  must establish a timetable for providing

10-13    service based on a priority system that considers potential health

10-14    hazards, population density, the number of existing buildings, the

10-15    reasonable cost of providing service, and the desires of the

10-16    residents;

10-17                      (C)  must include a capital improvements plan

10-18    committing the necessary financing;

10-19                      (D)  may relieve the municipality from an

10-20    obligation to provide water service, sewer service, or both in an

10-21    area described in the service plan if a majority of the households

10-22    in the area sign a petition stating they do not want to receive the

10-23    services;  and

10-24                      (E)  may require property owners to connect to

10-25    service lines constructed to serve their area;

10-26                (2)  shall provide water service, sewer service, or

10-27    both to at least 75 percent of the residential buildings in annexed

 11-1    areas of the municipality that did not have water service, sewer

 11-2    service, or both on September 1, 1991;

 11-3                (3)  shall provide water service to each area annexed

 11-4    before January 1, 1993, if the area or subdivision as described in

 11-5    the service plan contains at least 25 residences without water

 11-6    service, unless a majority of the households in the area state in a

 11-7    petition that they do not want municipal water service;  and

 11-8                (4)  is subject to the penalty prescribed by Section

 11-9    5.235(n)(7)(C), Water Code, for the failure to provide services.

11-10          SECTION 8.  Section 43.082(b), Local Government Code, is

11-11    amended to read as follows:

11-12          (b)  The board of directors of a district governed by this

11-13    section may dissolve the district pursuant to this section by

11-14    adopting a resolution at a regular meeting of a district.  On the

11-15    dissolution of a district under this section, the municipality

11-16    within whose extraterritorial jurisdiction the district is located

11-17    shall provide full municipal services as defined by Section 43.056

11-18    [43.056(c)].

11-19          SECTION 9.  (a)  The change in law made by this Act to

11-20    Section 43.031, Local Government Code, applies only to a change in

11-21    boundaries that is completed on or after September 1, 1997.

11-22          (b)  The change in law made by this Act to Section 43.052,

11-23    Local Government Code, applies only to an annexation for which the

11-24    first hearing notice required by that section is published on or

11-25    after September 1, 1997.  An annexation for which the first hearing

11-26    notice is published before that date is governed by the law in

11-27    effect at the time the notice is published, and the former law is

 12-1    continued in effect for that purpose.

 12-2          (c)  The changes in law made by this Act to Sections 43.053,

 12-3    43.054, 43.055, 43.056, and 43.0565, Local Government Code, apply

 12-4    only to an annexation that is completed on or after September 1,

 12-5    1997.

 12-6          SECTION 10.  This Act takes effect September 1, 1997.

 12-7          SECTION 11.  The importance of this legislation and the

 12-8    crowded condition of the calendars in both houses create an

 12-9    emergency and an imperative public necessity that the

12-10    constitutional rule requiring bills to be read on three several

12-11    days in each house be suspended, and this rule is hereby suspended.