By Hamric                                       H.B. No. 1872

      75R7125 PAM-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the procedures that apply to an annexation by a

 1-3     home-rule municipality; providing penalties.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 43.021, Local Government Code, is amended

 1-6     to read as follows:

 1-7           Sec. 43.021.  AUTHORITY OF HOME-RULE MUNICIPALITY TO ANNEX

 1-8     AREA AND TAKE OTHER ACTIONS REGARDING BOUNDARIES.  A home-rule

 1-9     municipality may take the following actions according to rules as

1-10     may be provided by the charter of the municipality and not

1-11     inconsistent with the procedural rules prescribed by this chapter

1-12     or Chapter 44:

1-13                 (1)  fix the boundaries of the municipality;

1-14                 (2)  extend the boundaries of the municipality and

1-15     annex area adjacent to the municipality; and

1-16                 (3)  exchange area with other municipalities.

1-17           SECTION 2.  Subtitle C, Title 2, Local Government Code, is

1-18     amended by adding Chapter 44 to read as follows:

1-19             CHAPTER 44.  ANNEXATION REQUIREMENTS FOR HOME-RULE

1-20                               MUNICIPALITIES

1-21                      SUBCHAPTER A.  GENERAL PROVISIONS

1-22           Sec. 44.001.  DEFINITIONS.  In this chapter:

1-23                 (1)  "Board" means the Municipal Development Board

1-24     established by this chapter.

 2-1                 (2)  "Committee" means a committee appointed by the

 2-2     board under this chapter to consider an annexation proposal.

 2-3                 (3)  "Proposal" means:

 2-4                       (A)  a petition submitted under Section 44.041

 2-5     proposing an annexation; or

 2-6                       (B)  an annexation plan resulting from the

 2-7     initiation of annexation proceedings by the board under Section

 2-8     44.045.

 2-9           Sec. 44.002.  APPLICABILITY TO HOME-RULE MUNICIPALITY.  This

2-10     chapter applies only to an annexation of an area in connection with

2-11     a home-rule municipality.

2-12           Sec. 44.003.  APPLICABILITY OF CHAPTER 43.  (a)  Except as

2-13     provided by this section, Chapter 43 applies to an annexation under

2-14     this chapter.

2-15           (b)  Sections 43.052 and 43.053 do not apply to an annexation

2-16     under this chapter.

2-17           (c)  For purposes of this chapter, a reference in a provision

2-18     of Chapter 43 to a hearing under Section 43.052 is considered to

2-19     refer to a hearing under Section 44.068.

2-20           Sec. 44.004.  CONFLICT WITH OTHER LAW.  (a)  Except as

2-21     provided by Subsection (b), if this chapter conflicts with Chapter

2-22     43, this chapter prevails to the extent of the conflict.

2-23           (b)  If this chapter conflicts with Section 43.028, 43.030,

2-24     43.031, 43.032, or 43.102, those sections prevail to the extent of

2-25     the conflict.

2-26               (Sections 44.005-44.020 reserved for expansion

2-27                 SUBCHAPTER B.  MUNICIPAL DEVELOPMENT BOARD

 3-1           Sec. 44.021.  MUNICIPAL DEVELOPMENT BOARD.  (a)  The

 3-2     Municipal Development Board is an agency of the state.

 3-3           (b)  The board is subject to Chapter 325, Government Code

 3-4     (Texas Sunset Act).  Unless continued in existence as provided by

 3-5     that chapter, the board is abolished and this chapter expires

 3-6     September 1, 2009.

 3-7           Sec. 44.022.  MEMBERS OF BOARD; APPOINTMENT.  (a)  The board

 3-8     is composed of six members appointed by the governor with the

 3-9     advice and consent of the senate.

3-10           (b)  The board must include:

3-11                 (1)  one member who is a resident of a municipality

3-12     with a population of more than 400,000;

3-13                 (2)  one member who is a resident of a municipality

3-14     with a population of 400,000 or less;

3-15                 (3)  one member who is a resident of a county with a

3-16     population of more than 500,000;

3-17                 (4)  one member who is a resident of a county with a

3-18     population of 500,000 or less; and

3-19                 (5)  two members who represent the general public.

3-20           Sec. 44.023.  TERMS OF OFFICE.  (a)  The members of the board

3-21     hold office for staggered terms of six years with two members'

3-22     terms expiring February 1 of each odd-numbered year.

3-23           (b)  A member may be reappointed but may not serve more than

3-24     two full terms.  A member's term is considered a full term if the

3-25     member serves three years or more of the term.

3-26           Sec. 44.024.  REIMBURSEMENT FOR EXPENSES.  A member is not

3-27     entitled to compensation but is entitled to reimbursement of travel

 4-1     expenses incurred by the member while conducting the business of

 4-2     the board, as provided by the General Appropriations Act.

 4-3           Sec. 44.025.  OFFICERS.  The board shall elect a presiding

 4-4     officer and an assistant presiding officer from its members.

 4-5           Sec. 44.026.  MEETINGS.  The board shall meet at the call of

 4-6     the governor or presiding officer or as provided by rule of the

 4-7     board.

 4-8           Sec. 44.027.  RULEMAKING AUTHORITY.  (a)  The board shall

 4-9     adopt rules to administer this chapter.

4-10           (b)  The board by rule may establish a filing fee for a

4-11     petition submitted to the board under Section 44.041.

4-12               (Sections 44.028-44.040 reserved for expansion

4-13                     SUBCHAPTER C. ANNEXATION PROCEDURE

4-14           Sec. 44.041.  AUTHORITY TO PETITION BOARD.  A petition

4-15     proposing an annexation may be filed with the board by:

4-16                 (1)  the governing body of the municipality;

4-17                 (2)  the commissioners court of a county; or

4-18                 (3)  five percent of the registered voters of the

4-19     municipality or of the area for which an annexation is proposed.

4-20           Sec. 44.042.  PETITION REQUIREMENTS.  (a)  A petition

4-21     proposing an annexation must include the following information, as

4-22     applicable:

4-23                 (1)  a general statement of the proposed annexation;

4-24                 (2)  a map of the municipality and the area to be

4-25     annexed;

4-26                 (3)  the assessed value of the taxable real property in

4-27     the area to be annexed;

 5-1                 (4)  the population density of the area to be annexed;

 5-2                 (5)  a description of the topography of the area to be

 5-3     annexed;

 5-4                 (6)  a municipal plan for transferring the assets and

 5-5     assuming the liabilities of any special district that serves the

 5-6     area to be annexed and that would be abolished because of the

 5-7     annexation;

 5-8                 (7)  a description of the services, including water

 5-9     supply, sewage disposal, and fire and police protection, that the

5-10     municipality provides to the area to be annexed;

5-11                 (8)  any plans for agreements with existing special

5-12     districts to provide continued service after the annexation; and

5-13                 (9)  a service plan that:

5-14                       (A)  meets the requirements of Sections

5-15     43.056(b)-(e) and Section 43.0565; and

5-16                       (B)  provides for the extension of full municipal

5-17     services to the area to be annexed by any of the methods by which

5-18     the municipality extends services to any other area of the

5-19     municipality.

5-20           (b)  The petition must state, if true, that the area to be

5-21     annexed is within the extraterritorial jurisdiction of the

5-22     municipality.

5-23           Sec. 44.043.  NOTICE REQUIREMENTS FOR MUNICIPAL PETITION FOR

5-24     ANNEXATION.  (a)  Before the 10th day before the date a

5-25     municipality files a petition proposing an annexation, the

5-26     municipality shall send notice by certified mail to:

5-27                 (1)  the commissioners court of each county in which

 6-1     the municipality or a part of the area to be annexed is located;

 6-2     and

 6-3                 (2)  each public utility affected by the proposed

 6-4     annexation.

 6-5           (b)  The written notice required by Subsection (a) must

 6-6     include a statement:

 6-7                 (1)  indicating the municipality's intent to file a

 6-8     petition under this chapter; and

 6-9                 (2)  notifying the recipient of the date and location

6-10     of the public meeting required by Section 44.044.

6-11           Sec. 44.044.  PUBLIC MEETING REQUIRED FOR MUNICIPAL PETITION

6-12     FOR ANNEXATION.  (a)  Before a municipality files a petition

6-13     proposing an annexation, the municipality shall hold a public

6-14     meeting to discuss the proposed annexation.

6-15           (b)  Before the fifth day before the date of the public

6-16     meeting, the municipality shall publish notice of the meeting in a

6-17     newspaper of general circulation in each county in which the

6-18     municipality or a part of the area to be annexed is located.

6-19           (c)  The presiding officer of the municipality or a person

6-20     designated by the presiding officer serves as the presiding officer

6-21     of the public meeting.  The municipal secretary or clerk or a

6-22     person designated by the secretary or clerk shall make a record of

6-23     the proceedings of the public meeting.

6-24           (d)  The presiding officer of the meeting shall allow any

6-25     person attending the meeting to speak and submit written comments

6-26     relating to the petition.

6-27           (e)  The presiding officer of the meeting or a person

 7-1     designated by the presiding officer shall submit to the board:

 7-2                 (1)  the minutes of the public meeting; and

 7-3                 (2)  all documents submitted at the public meeting.

 7-4           Sec. 44.045.  BOARD MAY INITIATE ANNEXATION PROCEEDINGS.

 7-5     (a)  The board may propose an annexation on the board's own

 7-6     initiative and initiate proceedings for the proposed annexation.

 7-7           (b)  If the board initiates annexation proceedings, the

 7-8     board:

 7-9                 (1)  may request and the municipality shall provide the

7-10     information required for a petition by Section 44.042; or

7-11                 (2)  may generate the information required for a

7-12     petition by Section 44.042.

7-13           (c)  After receiving from the municipality or generating the

7-14     information required under Subsection (b), the board shall provide

7-15     notice and hold a public meeting in the same manner provided by

7-16     Sections 43.043 and 43.044.

7-17           (d)  A board-initiated annexation proposal may include any

7-18     information relevant to the proposal, including results of studies,

7-19     surveys, and hearings conducted by the board.

7-20               (Sections 44.046-44.060 reserved for expansion

7-21           SUBCHAPTER D.  BOARD DISPOSITION OF ANNEXATION PROPOSAL

7-22           Sec. 44.061.  NOTICE OF ANNEXATION PROPOSAL.  On or before

7-23     the 10th day after the date the board receives a petition under

7-24     Section 44.041 or initiates a proceeding under Section 44.045, the

7-25     board shall send a notice stating that an annexation has been

7-26     proposed and a copy of the proposal to:

7-27                 (1)  the governing body of the municipality; and

 8-1                 (2)  the commissioners court of each county in which

 8-2     the municipality or a part of the area to be annexed is located.

 8-3           Sec. 44.062.  INITIAL BOARD ACTION ON PROPOSAL.  (a)  Not

 8-4     later than the 90th day after the date the board receives a

 8-5     petition under Section 44.041 or initiates a proceeding under

 8-6     Section 44.045, the board shall approve the proposal for

 8-7     consideration by a committee appointed under this subchapter or

 8-8     dismiss the proposal.

 8-9           (b)  The board may combine for consideration any proposals

8-10     that involve the same area or municipality.

8-11           Sec. 44.063.  DISMISSAL OF PROPOSAL.  (a)  The board may

8-12     dismiss a proposal only if the board finds that:

8-13                 (1)  the proposal does not meet the requirements of

8-14     this chapter;

8-15                 (2)  the area to be annexed, or a part of the area, has

8-16     been voluntarily annexed as provided by Chapter 43; or

8-17                 (3)  during the two-year period immediately preceding

8-18     the date the petition was filed or the proceedings were initiated,

8-19     substantially the same proposal was disapproved by:

8-20                       (A)  a committee formed under this chapter to

8-21     consider the proposal; or

8-22                       (B)  the voters in an election held under this

8-23     chapter.

8-24           (b)  The board shall:

8-25                 (1)  issue a written statement identifying the reason

8-26     for each dismissal; and

8-27                 (2)  promptly notify each party affected by the

 9-1     proposal of the board's dismissal.

 9-2           Sec. 44.064.  APPROVAL OF PROPOSAL; APPOINTMENT OF COMMITTEE.

 9-3     (a)  If the board approves a proposal for consideration, the board

 9-4     shall authorize the appointment of local representatives as

 9-5     provided by Section 44.066 to serve on a committee to consider the

 9-6     proposal.

 9-7           (b)  The committee is composed of the appointed local

 9-8     representatives and the members of the board.

 9-9           (c)  When two or more proposals for annexation describing, at

9-10     least in part, common territory are considered together, the board

9-11     shall authorize the appointment of local representatives based on

9-12     each of the proposals to serve on one special committee to consider

9-13     the multiple proposals.

9-14           Sec. 44.065.  QUALIFICATIONS AND REIMBURSEMENT OF LOCAL

9-15     REPRESENTATIVES.  (a)  Except as provided by Section 44.066(a),  a

9-16     local representative must be a registered voter in the area or the

9-17     municipality that the person represents.

9-18           (b)  A local representative is not entitled to compensation

9-19     but is entitled to reimbursement, from the state, of travel

9-20     expenses incurred by the representative while conducting the

9-21     business of the committee, as provided by the General

9-22     Appropriations Act.

9-23           Sec. 44.066.  APPOINTMENT OF LOCAL REPRESENTATIVES.  (a)  The

9-24     board shall authorize the commissioners court of each county in

9-25     which the area to be annexed is located to appoint one local

9-26     representative.  If no registered voters reside in the area of the

9-27     county to be annexed, the commissioners court shall appoint an

 10-1    individual who owns property in the area.

 10-2          (b)  The governing body of the municipality subject to the

 10-3    proposed annexation shall appoint the number of local

 10-4    representatives to the committee that equals the total number of

 10-5    local representatives appointed under Subsection (a).

 10-6          Sec. 44.067.  QUORUM REQUIREMENTS FOR COMMITTEE.  Four board

 10-7    members and at least one-half of the appointed local

 10-8    representatives are required for a quorum.

 10-9          Sec. 44.068.  PUBLIC HEARING.  (a)  A committee shall conduct

10-10    a public hearing on a proposal as soon as practicable after the

10-11    committee is appointed.

10-12          (b)  The committee may allow any person attending the hearing

10-13    to speak and shall allow any person attending the hearing to submit

10-14    written comments relating to the proposal.

10-15          (c)  The board may subpoena witnesses and documents for

10-16    purposes of conducting the public hearing on the proposal.

10-17          Sec. 44.069.  NOTICE OF PUBLIC HEARING.  (a)  The board shall

10-18    send notice of the public hearing required by Section 44.068 to:

10-19                (1)  the governing board of the municipality; and

10-20                (2)  the commissioners court of each county in which a

10-21    part of the area to be annexed is located.

10-22          (b)  Before the fifth day before the date of the public

10-23    hearing, the board shall publish a notice of the public hearing on

10-24    at least two separate dates in a newspaper of general circulation

10-25    in each county in which the municipality or a part of the area

10-26    subject to the proposal is located.

10-27          (c)  The notice required under this section must:

 11-1                (1)  include a brief description of the proposed

 11-2    annexation; and

 11-3                (2)  identify a location where the proposal is

 11-4    available for public inspection.

 11-5          Sec. 44.070.  AMENDMENT TO PROPOSAL.  (a)  The committee may

 11-6    amend a proposal.

 11-7          (b)  If a proposal is substantially amended, the committee

 11-8    shall defer the public hearing required under Section 44.068 to a

 11-9    later date.

11-10          (c)  Notice of the public hearing to consider the amended

11-11    proposal must comply with the requirements of Section 44.069.

11-12          Sec. 44.071.  DISPOSITION OF PROPOSALS INVOLVING COMMON

11-13    TERRITORY.  (a)  A special committee appointed to consider multiple

11-14    proposals shall resolve common territory issues involved in the

11-15    multiple proposals.

11-16          (b)  After the common territory issues are resolved:

11-17                (1)  the special committee may approve the proposals

11-18    amended as a result of the resolution of the common territory

11-19    issues by the vote of each member of the committee; or

11-20                (2)  the special committee may approve individually

11-21    each proposal amended as a result of the resolution of the common

11-22    territory issues by the vote of the board members serving on the

11-23    committee and only those local representatives who represent the

11-24    area subject to an individual proposal.

11-25          Sec. 44.072.  COMMITTEE APPROVAL OF PROPOSAL.  (a)  The

11-26    committee shall approve any proposal that promotes the public

11-27    interest.

 12-1          (b)  To determine whether a proposal promotes the public

 12-2    interest, the committee shall consider all relevant information

 12-3    before the committee, including:

 12-4                (1)  the statements in the proposal and evidence

 12-5    supporting the statements;

 12-6                (2)  the recommendations of the regional planning

 12-7    authority for each area subject to the proposed annexation;

 12-8                (3)  the commercial and industrial development in each

 12-9    area subject to the proposed annexation;

12-10                (4)  potential growth in population in each area

12-11    subject to the proposed annexation;

12-12                (5)  the cost and adequacy of services provided and

12-13    facilities existing in each area subject to the proposed

12-14    annexation;

12-15                (6)  the potential effect of the proposed annexation on

12-16    services and facilities and alternative suggestions for providing

12-17    services and facilities; and

12-18                (7)  the potential effect of the proposed annexation on

12-19    any political subdivision subject to the proposed annexation,

12-20    including the potential effect on future revenues of each political

12-21    subdivision.

12-22          (c)  The committee may not approve a proposal unless:

12-23                (1)  the area to be annexed adjoins the municipality;

12-24    and

12-25                (2)  the committee finds that:

12-26                      (A)  the municipality will be able to provide to

12-27    the area substantial municipal services and benefits not previously

 13-1    enjoyed by the area; and

 13-2                      (B)  the motive for annexation is not solely to

 13-3    increase revenues to the municipality.

 13-4          (d)  In this section, "adjoins" means land that has a common

 13-5    boundary for at least 2,000 feet and includes land areas that share

 13-6    a roadway or waterway as a common boundary.

 13-7          Sec. 44.073.  FORMAL DISPOSITION OF PROPOSAL BY BOARD.  (a)

 13-8    Not later than the 90th day after the date of the final public

 13-9    hearing authorized by this subchapter, the committee shall:

13-10                (1)  approve or dismiss the proposal; and

13-11                (2)  submit a written statement to the board approving

13-12    or dismissing the proposal.

13-13          (b)  Before the fifth day after the date the board receives

13-14    the written statement from the committee, the board shall:

13-15                (1)  issue an order approving or dismissing the

13-16    proposal as determined by the committee;

13-17                (2)  maintain a copy of the written order; and

13-18                (3)  promptly notify the parties to the proposal of the

13-19    board's decision.

13-20              (Sections 44.074-44.080 reserved for expansion

13-21                          SUBCHAPTER E.  ELECTION

13-22          Sec. 44.081.  ELECTION DATE.  If a proposed annexation is

13-23    approved, the board shall order an election on the question of

13-24    annexing an area to be held on the first uniform election date

13-25    prescribed by Chapter 41, Election Code, that occurs on or after

13-26    the 45th day after the date the proposed annexation is approved by

13-27    the board.

 14-1          Sec. 44.082.  ELECTION PROCEDURE.  (a)  Except as provided by

 14-2    Subsection (b), the board shall order an election only in the area

 14-3    to be annexed.

 14-4          (b)  The board shall order an election in the municipality

 14-5    and a separate election in the area to be annexed if the proposed

 14-6    annexation would cause:

 14-7                (1)  the total area annexed in one calendar year to

 14-8    exceed five percent of the incorporated area of the municipality as

 14-9    of January 1 of the year that the proposed annexation would take

14-10    effect; or

14-11                (2)  the total population of the municipality to exceed

14-12    five percent of the municipal population as of January 1 of the

14-13    year that the proposed annexation would take effect.

14-14          (c)  Qualified voters of the area subject to an election

14-15    under this section are entitled to vote in the election.

14-16          (d)  The county clerk of each county in which the area

14-17    subject to an election under this section is located shall act

14-18    jointly to conduct an election held under this subchapter.

14-19          (e)  The municipality shall pay the costs associated with an

14-20    election held under this subchapter if the annexation is approved

14-21    by the voters.  The person initiating the proposal shall pay the

14-22    costs associated with an election held under this subchapter if the

14-23    annexation is not approved by the voters.

14-24          Sec. 44.083.  AUTHORIZATION OF ANNEXATION.  (a)  An

14-25    annexation is authorized if:

14-26                (1)  a majority of the votes received in an election

14-27    held under Section 44.082(a) favor the annexation; or

 15-1                (2)  a majority of the votes received in an election

 15-2    held in the municipality and a majority of the votes received in an

 15-3    election held in the area to be annexed as provided by Section

 15-4    44.082(b) favor the annexation.

 15-5          (b)  The annexation becomes effective after:

 15-6                (1)  the requirements of this chapter are satisfied;

 15-7    and

 15-8                (2)  the time for appeal provided by Subchapter F has

 15-9    expired.

15-10          (c)  If an appeal to any of the proceedings is filed, the

15-11    annexation is stayed during the period the appeal is pending.

15-12          Sec. 44.084.  RIGHTS OF RESIDENTS IN ANNEXED AREA.   (a)

15-13    After an area is annexed, a resident of the area may run for

15-14    elected office in any municipal election held on or after the

15-15    effective date of the annexation if the resident has the

15-16    qualifications otherwise prescribed by law for the office.

15-17          (b)  After an area is annexed, a qualified voter of the area

15-18    may vote in any municipal election that is held on or after the

15-19    effective date of the annexation and that is held:

15-20                (1)  in the municipality as a whole; or

15-21                (2)  in a municipal district that includes the annexed

15-22    area.

15-23              (Sections 44.085-44.100 reserved for expansion

15-24        SUBCHAPTER F.  APPEAL OF ANNEXATION PROCEDURE AND ELECTION

15-25          Sec. 44.101.  APPEAL.  (a)  A municipality or a resident or

15-26    property owner in the annexed area or annexing municipality may

15-27    file an appeal in a district court of any county in which a part of

 16-1    the municipality or the annexed area is located contesting:

 16-2                (1)  a decision of the board or a committee involved in

 16-3    approving the annexation; or

 16-4                (2)  the legality of an election held under this

 16-5    chapter.

 16-6          (b)  An appeal under this section must be filed not later

 16-7    than the 30th day after the date:

 16-8                (1)  a decision is made by the board or committee, if a

 16-9    decision of the board or committee is the basis for the appeal; or

16-10                (2)  the election results are certified, if the

16-11    legality of the election is the basis for the appeal.

16-12          (c)  The appeal of the board's or committee's approval of a

16-13    proposal does not stay an election authorized by this chapter.

16-14          Sec. 44.102.  SCOPE OF APPEAL.  The court's review of an

16-15    appeal under this section is limited to questions relating to

16-16    jurisdiction and the regularity of proceedings.

16-17          Sec. 44.103.  STANDARD OF REVIEW ON APPEAL.  The standard of

16-18    review in an appeal under this chapter is substantial evidence and

16-19    arbitrary and capricious.

16-20              (Sections 44.104-44.120 reserved for expansion

16-21                        SUBCHAPTER G.  ENFORCEMENT

16-22          Sec.  44.121.  OVERSIGHT COMMITTEE.  (a)  If the voters

16-23    approve the proposed annexation, the board shall direct the

16-24    appointment of an oversight committee to monitor compliance with

16-25    the service plan requirements.

16-26          (b)  The oversight committee is composed of:

16-27                (1)  two members from the governing body of the

 17-1    municipality appointed by the governing body of the municipality;

 17-2                (2)  two members from one or more commissioners courts

 17-3    that have jurisdiction in the area to be annexed appointed by the

 17-4    county judge or a majority vote of the county judges that have

 17-5    jurisdiction in the area to be annexed; and

 17-6                (3)  one member appointed by the board who has training

 17-7    and experience in arbitration and mediation.

 17-8          (c)  The member appointed by the board is the presiding

 17-9    officer of the oversight committee.

17-10          (d)  A member of the oversight committee is not entitled to

17-11    compensation but is entitled to reimbursement, from the state, of

17-12    travel expenses incurred by the member while conducting the

17-13    business of the committee, as provided by the General

17-14    Appropriations Act.

17-15          (e)  The oversight committee must remain in existence for at

17-16    least 90 days and not more than 365 days.

17-17          Sec. 44.122.  PENALTY.  (a)  If a majority of the members of

17-18    the oversight committee determine that the municipality has failed

17-19    to comply with the service plan requirements, the oversight

17-20    committee shall send written notice to the municipality:

17-21                (1)  identifying the manner in which the municipality

17-22    has failed to comply with the service plan; and

17-23                (2)  stating the actions the municipality must take to

17-24    comply with the service plan.

17-25          (b)  The municipality shall comply with the service plan

17-26    requirements not later than the fifth day after the date the

17-27    municipality receives the notice under Subsection (a).

 18-1          (c)  A municipality that fails to comply as provided by

 18-2    Subsection (b) is subject to an administrative penalty of $10,000

 18-3    for each day of each violation.  The oversight committee may assess

 18-4    a penalty provided by this section only after providing the

 18-5    municipality an opportunity for a hearing and shall notify the

 18-6    municipality in writing of the nature of the violation and the

 18-7    amount of the penalty assessed.

 18-8          (d)  A municipality shall pay a penalty assessed under

 18-9    Subsection (c) to the board not later than the 30th day after the

18-10    date the oversight committee notifies the municipality that a

18-11    penalty has been assessed.  If a municipality fails to pay a

18-12    penalty within the period prescribed by this subsection, the

18-13    oversight committee may assess a late fee of $1,000 for each day

18-14    after the date the municipality is required to pay the penalty as

18-15    provided by this subsection.

18-16          (e)  The board shall equally distribute to the entities,

18-17    other than the municipality, providing service in the annexed area

18-18    the penalty collected under this section.  If no other entities are

18-19    providing a service to the area, the board shall equally distribute

18-20    the penalty to each county in which a part of the area is located.

18-21          Sec. 44.123.  APPEAL OF PENALTY.  A municipality may file an

18-22    appeal of the oversight committee's assessment of a penalty under

18-23    Section 44.122 in the district court of the county in which the

18-24    municipality is located.

18-25              (Sections 44.124-44.900 reserved for expansion

18-26                  SUBCHAPTER Z.  MISCELLANEOUS PROVISIONS

18-27          Sec. 44.901.  RECORD OF PROCEEDINGS.  After an annexation is

 19-1    approved by the voters, the board shall file with the secretary of

 19-2    state, the secretary or clerk of the municipality subject to the

 19-3    annexation, and the county clerk of each county in which a part of

 19-4    any municipality or area involved in the annexation is located:

 19-5                (1)  the original proposal and any amendments;

 19-6                (2)  the order of the board approving the proposal;

 19-7                (3)  proof of service and publication for notices

 19-8    required by this chapter;

 19-9                (4)  certification of the election result; and

19-10                (5)  other material the board determines important to

19-11    the annexation proceedings.

19-12          Sec. 44.902.  NOTIFICATION OF TEXAS DEPARTMENT OF

19-13    TRANSPORTATION.  The board shall file with the Texas Department of

19-14    Transportation:

19-15                (1)  a copy of the map identifying the change in

19-16    municipal boundaries resulting from an annexation under this

19-17    chapter; and

19-18                (2)  a legal description reflecting the change in

19-19    municipal boundaries resulting from an annexation under this

19-20    chapter.

19-21          SECTION 3.  Section 43.022, Local Government Code, is

19-22    repealed.

19-23          SECTION 4.  The governor shall make initial appointments to

19-24    the Municipal Development Board created by Chapter 44, Local

19-25    Government Code, as added by this Act, as follows:

19-26                (1)  two members must be appointed for terms that

19-27    expire February 1, 1999;

 20-1                (2)  two members must be appointed for terms that

 20-2    expire February 1, 2001; and

 20-3                (3)  two members must be appointed for terms that

 20-4    expire February 1, 2003.

 20-5          SECTION 5.  An annexation for which the first hearing notice

 20-6    required by Section 43.052, Local Government Code, is published

 20-7    before the effective date of this Act is governed by the law in

 20-8    effect at the time the notice is published, and the former law is

 20-9    continued in effect for that purpose.

20-10          SECTION 6.  The importance of this legislation and the

20-11    crowded condition of the calendars in both houses create an

20-12    emergency and an imperative public necessity that the

20-13    constitutional rule requiring bills to be read on three several

20-14    days in each house be suspended, and this rule is hereby suspended.