By Lindsay S.B. No. 1602
75R8703 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to annexations by a municipality.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter B, Chapter 43, Local Government Code,
1-5 is amended by adding Sections 43.0201 and 43.0202 to read as
1-6 follows:
1-7 Sec. 43.0201. TEMPORARY MORATORIUM ON ANNEXATION. (a) A
1-8 municipality may not annex any area until after August 31, 1999.
1-9 (b) This section expires September 1, 1999.
1-10 Sec. 43.0202. STUDY COMMISSION ON MUNICIPAL ANNEXATION.
1-11 (a) The Study Commission on Municipal Annexation is composed of
1-12 nine members appointed as follows:
1-13 (1) three members appointed by the lieutenant
1-14 governor;
1-15 (2) three members appointed by the speaker of the
1-16 house;
1-17 (3) one member appointed by the county judge of Bexar
1-18 County from the governing body of a municipal utility district
1-19 located wholly in Bexar County;
1-20 (4) one member appointed by the county judge of Harris
1-21 County from the governing body of a municipal utility district
1-22 located wholly in Harris County; and
1-23 (5) one member appointed by the county judge of Travis
1-24 County from the governing body of a municipal utility district
2-1 located wholly in Travis County.
2-2 (b) Each member of the commission serves at the will of the
2-3 person who appointed the member.
2-4 (c) The commission shall elect a presiding officer and
2-5 assistant presiding officer from its members.
2-6 (d) A member of the commission is not entitled to receive
2-7 compensation for service on the commission but is entitled to
2-8 reimbursement of the travel expenses incurred by the member while
2-9 conducting the business of the commission, as provided by the
2-10 General Appropriations Act.
2-11 (e) The commission may accept gifts and grants from any
2-12 source to be used to carry out a function of the commission.
2-13 (f) The commission shall study issues that the commission
2-14 determines have importance to municipal annexation, including
2-15 annexation procedures, reasons and procedures for disannexation,
2-16 and the delivery of services following annexation. The commission
2-17 may:
2-18 (1) appoint an advisory committee to assist the
2-19 commission in studying a specific annexation issue; and
2-20 (2) draft proposed legislation to modify existing
2-21 annexation statutes.
2-22 (g) Not later than December 1, 1998, the commission shall
2-23 issue a report summarizing:
2-24 (1) any hearings conducted by the commission;
2-25 (2) any studies conducted by the commission;
2-26 (3) any legislation proposed by the commission; and
2-27 (4) any other findings and recommendations of the
3-1 commission.
3-2 (h) The commission shall promptly deliver copies of the
3-3 report to the lieutenant governor and the speaker of the house.
3-4 (i) The commission shall adopt rules to administer this
3-5 section.
3-6 (j) The commission is abolished, and this section expires
3-7 June 1, 1999.
3-8 SECTION 2. Subchapter B, Chapter 43, Local Government Code,
3-9 is amended by adding Section 43.0215 to read as follows:
3-10 Sec. 43.0215. VOTER APPROVAL OF ANNEXATION REQUIRED IN
3-11 CERTAIN MUNICIPALITIES. (a) This section applies only to a
3-12 municipality with a population of 250,000 or more.
3-13 (b) The municipality may not annex an area for full or
3-14 limited purposes unless:
3-15 (1) the municipality holds separate elections in the
3-16 area proposed to be annexed and in the municipality, at which the
3-17 qualified voters of the area and the municipality may vote, on the
3-18 question of the annexation; and
3-19 (2) a majority of the votes received at both elections
3-20 approve the annexation.
3-21 (c) This section does not apply to an annexation of an area
3-22 if:
3-23 (1) no qualified voters reside in the area; or
3-24 (2) the annexation is authorized by or subject to
3-25 another section of this chapter, other than Section 43.021.
3-26 (d) The municipality shall pay for the cost of holding both
3-27 elections.
4-1 (e) If a majority of the votes received in either election
4-2 do not approve the annexation, the municipality may not annex any
4-3 portion of the proposed area until after the fifth anniversary of
4-4 the date of the election.
4-5 SECTION 3. Subchapter C, Chapter 43, Local Government Code,
4-6 is amended by adding Sections 43.0541 and 43.0542 to read as
4-7 follows:
4-8 Sec. 43.0541. ANNEXATIONS BY MUNICIPALITY WITH POPULATION OF
4-9 MORE THAN 250,000. (a) A municipality with a population of more
4-10 than 250,000 may not annex a strip of area following the course of
4-11 a road, highway, river, stream, creek, or other natural or
4-12 constructed feature if the commissioners court of the county in
4-13 which a majority of the area is located, by resolution, finds that
4-14 the area:
4-15 (1) is composed primarily of commercial property or
4-16 property with a high taxable value;
4-17 (2) is part of a larger area in which a sense of
4-18 community exists among a significant number of the residents and
4-19 landowners; and
4-20 (3) does not include all parts of the larger area in
4-21 which the sense of community exists.
4-22 (b) To prevent the annexation, the commissioners court must
4-23 adopt the resolution before the completion of the annexation by the
4-24 municipality.
4-25 (c) Each finding by a commissioners court under this section
4-26 shall be reviewed by an annexation review committee consisting of:
4-27 (1) the county judge;
5-1 (2) a county commissioner designated by the
5-2 commissioners court;
5-3 (3) a member of the governing body of the municipality
5-4 designated by that governing body;
5-5 (4) a person appointed by the state representative
5-6 whose district includes the majority of the area proposed for
5-7 annexation; and
5-8 (5) a person appointed by the state senator whose
5-9 district includes the majority of the area proposed for annexation.
5-10 (d) The designations and appointments to the committee shall
5-11 be made not later than the 14th day after the date of the adoption
5-12 of the commissioners court resolution.
5-13 (e) The county judge is the presiding officer of the
5-14 committee. The committee shall meet at the call of the presiding
5-15 officer at a place convenient to the majority of the area proposed
5-16 for annexation.
5-17 (f) The committee may affirm or reverse the finding of the
5-18 commissioners court. The committee must issue its decision not
5-19 later than the 60th day after the date of the adoption of the
5-20 commissioners court resolution. The decision of the committee may
5-21 be appealed to a district court serving the county in which a
5-22 majority of the area proposed for annexation is located. The
5-23 district court may not substitute its judgment for that of the
5-24 commissioners court or the annexation review committee unless the
5-25 decision by the commissioners court or the committee was arbitrary,
5-26 capricious, unlawful, or not supported by substantial evidence.
5-27 (g) If the finding of the commissioners court is reversed by
6-1 the annexation review committee or by a court, the time during
6-2 which the municipality was prevented from annexing the area as a
6-3 result of the commissioners court resolution is not included in
6-4 computing the period within which the municipality must complete
6-5 the annexation under Section 43.053.
6-6 Sec. 43.0542. FAILURE OF MUNICIPALITY TO PROVIDE WATER OR
6-7 SEWER SERVICES. (a) If a municipality fails to provide water or
6-8 sewer services to an annexed area before the 10th anniversary of
6-9 the date of the annexation, a municipal ordinance or other
6-10 municipal regulation has no effect in the annexed area until the
6-11 municipality provides water or sewer services to the annexed area.
6-12 (b) Subsection (a) does not permit a municipality to
6-13 discontinue providing any other municipal service to the annexed
6-14 area.
6-15 SECTION 4. Subchapter C, Chapter 43, Local Government Code,
6-16 is amended by adding Section 43.0562 to read as follows:
6-17 Sec. 43.0562. SERVICE PLAN FOR CERTAIN WATER DISTRICT
6-18 ANNEXATION. (a) This section applies only to a municipality with
6-19 a population of 225,000 or more that proposes to annex an area that
6-20 includes, in whole or in part, any area in the boundaries of a
6-21 municipal utility district or a water district regulated,
6-22 established, or operating under Title 4, Water Code.
6-23 (b) In addition to any requirements of Section 43.056, a
6-24 municipality shall, before it begins an annexation under this
6-25 chapter, comply with the requirements of this section.
6-26 (c) Before the 90th day before the date of an annexation and
6-27 before the publication of the notice of the first hearing required
7-1 under Section 43.052, the governing body of a municipality shall
7-2 publish a service plan that provides for the extension of full
7-3 municipal services to an annexed area.
7-4 (d) In developing the service plan, the municipality must
7-5 negotiate the terms of the plan with the governing board of a
7-6 municipal utility district or water district located in the area
7-7 proposed to be annexed. If the municipality and the governing
7-8 board of the district cannot reach agreement on any portion of a
7-9 service plan, the issue shall be submitted for arbitration under
7-10 Chapter 171, Civil Practice and Remedies Code.
7-11 (e) The service plan must provide that every municipal
7-12 service described in the plan for the area to be annexed be
7-13 provided in a manner that ensures the services are equal to or
7-14 better than the services provided to the area immediately before
7-15 annexation. An annexation may not occur if any service proposed in
7-16 the plan is less than the service provided immediately before the
7-17 annexation. The service must also be provided to each portion of
7-18 the area to be annexed in the exact way that the service is
7-19 provided to any other portion of the area to be annexed.
7-20 (f) In addition to the requirements for a service plan under
7-21 Section 43.056, a service plan under this chapter must include:
7-22 (1) a description of the emergency medical services to
7-23 be provided to the area that includes a description of:
7-24 (A) service delivery times, including dispatch
7-25 and response times;
7-26 (B) equipment and supplies, including types of
7-27 ambulance units, types of medical equipment with which units are
8-1 equipped, and the ability of emergency services providers to use
8-2 the equipment and supplies;
8-3 (C) staffing and qualifications of emergency
8-4 medical service workers;
8-5 (D) communications provided to units in the
8-6 area, including the use of 911 systems or other emergency
8-7 communication systems;
8-8 (E) mutual aid agreements the municipality
8-9 entered;
8-10 (F) any special apparatus or services, including
8-11 emergency education training; and
8-12 (G) other detailed direct comparisons between
8-13 any aspect of emergency medical services and the services proposed
8-14 to be provided by the municipality; and
8-15 (2) a description of the fire protection services to
8-16 be provided to the area that includes a description of:
8-17 (A) service delivery times, including average
8-18 dispatch and average response times;
8-19 (B) the types of fire protection equipment and
8-20 capabilities, including whether the equipment meets industry
8-21 standards at the time of the annexation, is capable of comparable
8-22 or multiple functions, and is capable of stand-alone operations and
8-23 whether any reserve equipment is in fact operational;
8-24 (C) the organization and staffing of fire
8-25 protection units in the area, including whether the organization is
8-26 capable of addressing the immediate needs of the area, whether
8-27 sufficient well-trained personnel exist, and the certification and
9-1 training levels of the personnel;
9-2 (D) the cost of providing the fire protection
9-3 services;
9-4 (E) any mutual aid agreements the municipality
9-5 has made or will make;
9-6 (F) any special apparatus or services, including
9-7 hazardous materials units or vehicles, water, technical, or
9-8 vehicular rescue units or training, and emergency education
9-9 training; and
9-10 (G) other detailed direct comparisons between
9-11 any aspect of fire protection services in the area immediately
9-12 before annexation and the services proposed to be provided by the
9-13 municipality.
9-14 (g) In determining whether municipal service providers
9-15 provide service equal to or better than that provided by a
9-16 voluntary provider, a voluntary provider is considered equal to a
9-17 municipal service provider if the voluntary provider is trained or
9-18 certified under state law and has complied with any continuing
9-19 education requirements.
9-20 (h) In determining whether service delivery or response
9-21 times are equal to or better than services immediately before
9-22 annexation, the service plan shall use the service delivery or
9-23 response times of the emergency medical or fire protection
9-24 organization operating in the area.
9-25 (i) A fire protection or emergency service mutual aid
9-26 agreement that existed before the date of the service plan shall be
9-27 continued under the service plan for a period of not less than 10
10-1 years.
10-2 (j) If a municipality enters into an agreement with any
10-3 party to provide services under the plan required by this section,
10-4 the municipality shall provide the party with compatible
10-5 communication equipment that allows the party to communicate, in
10-6 any manner the party determines is necessary, directly with the
10-7 municipality's service provider.
10-8 (k) The service plan shall allow a resident of the area
10-9 proposed to be annexed to vote in any election. If a municipality
10-10 holds an election and the residents of an annexed area are not
10-11 allowed to vote in the election, the results of the election are
10-12 void. This subsection does not apply to:
10-13 (1) an election on the question of the creation of a
10-14 municipal special district or authority in which no part of the
10-15 area annexed is part of the proposed special district or authority
10-16 and the creation of which would not create any liability for which
10-17 a resident of the annexed area would be requested to pay in any
10-18 way, including through the payment of any municipal tax;
10-19 (2) a local option election conducted under Chapter
10-20 251, Alcoholic Beverage Code, in which no part of the area annexed
10-21 is part of the area affected by the election; or
10-22 (3) an election for a single-member district of the
10-23 municipality, in which no part of the area annexed is part of the
10-24 area within the district.
10-25 (l) A municipality shall hold three or more public hearings
10-26 at which persons interested in the service plan are given an
10-27 opportunity to be heard. Each hearing shall be separated by 30 or
11-1 more days from the date of a previous hearing. The hearing shall be
11-2 held between 7 p.m. and 9 p.m. at a site designated by the
11-3 municipal utility districts in the area proposed for annexation.
11-4 (m) A hearing conducted under this section shall be
11-5 conducted by a visiting state judge and a written record of the
11-6 proceedings shall be maintained.
11-7 (n) Not later than the 30th day after the date of the last
11-8 hearing, the municipality and a municipal utility district shall
11-9 agree on an independent third party to review the service plan to
11-10 determine if the plan meets the requirements of this section. If
11-11 the third party determines that the service plan does not meet the
11-12 requirements, the service plan is void and the municipality shall
11-13 develop a new service plan under this section.
11-14 (o) If the municipality, in annexing an area, either renders
11-15 useless for its primary function an emergency service provider's or
11-16 fire protection provider's land, buildings, or equipment in the
11-17 area to be annexed or in an adjacent area, or, using eminent domain
11-18 powers, condemns a provider's land or buildings, the municipality
11-19 shall pay to the provider, not later than the 30th day before the
11-20 date of the annexation, the value of the land, building, or
11-21 equipment that is determined by the average of three independent
11-22 appraisals. The municipality shall pay the cost of the appraisals.
11-23 A service plan adopted under this section shall list any land,
11-24 buildings, or equipment affected and shall allow providers to add
11-25 additional affected property to the list.
11-26 SECTION 5. Sections 43.0751(b), (d), (e), and (f), Local
11-27 Government Code, are amended to read as follows:
12-1 (b) The governing bodies of a municipality with a population
12-2 of 225,000 or more and a district shall negotiate and shall [may]
12-3 enter into a written strategic partnership agreement for the
12-4 district having a term of five or more years. The governing body
12-5 of a municipality must make a written determination of the need
12-6 for full purpose annexation and must have entered into a strategic
12-7 partnership agreement with a district for 10 or more years before
12-8 the date the municipality annexes any portion of the district for
12-9 full purposes. The governing bodies of the municipality and the
12-10 district shall evidence their intention to negotiate such an
12-11 agreement by resolution, each of which resolutions shall specify an
12-12 expiration date if the other governing body fails to adopt a
12-13 resolution under this section on or before the specified date. The
12-14 governing body of a municipality that has evidenced its intention
12-15 by unexpired resolution to enter into negotiations with a district
12-16 for an agreement under this section may not initiate proceedings to
12-17 annex the district under any other section of this code prior to
12-18 the expiration of five [two] years after the adoption date of the
12-19 resolution unless the municipality has previously instituted
12-20 annexation proceedings in granting consent to the creation of the
12-21 district prior to January 1, 1995.
12-22 (d) Before the governing body of a municipality or a
12-23 district adopts a strategic partnership agreement, it shall conduct
12-24 three [two] public hearings at which members of the public who wish
12-25 to present testimony or evidence regarding the proposed agreement
12-26 shall be given the opportunity to do so. The hearings shall be
12-27 conducted by a visiting state judge jointly selected by the
13-1 municipality and the district. Notice of public hearings conducted
13-2 by the governing body of a municipality under this subsection shall
13-3 be published in a newspaper of general circulation in the
13-4 municipality and in the district. The notice must be in the format
13-5 prescribed by Section 43.123(b) and must be published at least once
13-6 on or after the 20th day before each date. Notice of public
13-7 hearings conducted by the governing body of a district under this
13-8 subsection shall be given in accordance with the district's
13-9 notification procedures for other matters of public importance.
13-10 Any notice of a public hearing conducted under this subsection
13-11 shall contain a statement of the purpose of the hearing, the date,
13-12 time, and place of the hearing, and the location where copies of
13-13 the proposed agreement may be obtained prior to the hearing. The
13-14 governing bodies of a municipality and a district may conduct joint
13-15 public hearings under this subsection, provided that at least one
13-16 public hearing is conducted within the district. A municipality
13-17 may combine the public hearings and notices required by this
13-18 subsection with the public hearings and notices required by Section
13-19 43.124.
13-20 (e) The governing body of a municipality may not annex a
13-21 district for full or limited purposes under this chapter [section
13-22 or under the provisions of Subchapter F] until it has adopted a
13-23 strategic partnership agreement with the district. The governing
13-24 body of a municipality may not adopt a strategic partnership
13-25 agreement before the agreement has been adopted by the governing
13-26 body of the affected district.
13-27 (f) A strategic partnership agreement may provide for the
14-1 following:
14-2 (1) limited-purpose annexation of the district under
14-3 the provisions of Subchapter F provided that the district shall
14-4 continue in existence during the period of limited-purpose
14-5 annexation;
14-6 (2) such amendments to the timing requirements of
14-7 Sections 43.123(d)(2) and 43.127(b) as may be necessary or
14-8 convenient to effectuate the purposes of the agreement;
14-9 (3) payments by the municipality to the district for
14-10 services provided by the district;
14-11 (4) annexation of any commercial property in a
14-12 district for full purposes by the municipality, notwithstanding any
14-13 other provision of this code or the Water Code, except for the
14-14 obligation of the municipality to provide, directly or through
14-15 agreement with other units of government, full provision of
14-16 municipal services to annexed territory, in lieu of any annexation
14-17 of residential property or payment of any fee on residential
14-18 property in lieu of annexation of residential property in the
14-19 district authorized by this subsection;
14-20 (5) a full-purpose annexation provision that specifies
14-21 one of the following:
14-22 (A) the date on which the land included within
14-23 the district's boundaries shall be converted from the
14-24 municipality's limited-purpose jurisdiction to its full-purpose
14-25 jurisdiction, provided that such date shall not be later than 10
14-26 years after the effective date of the strategic partnership
14-27 agreement; or
15-1 (B)(i) terms for payment of an annual fee to the
15-2 municipality by the district in lieu of full-purpose annexation,
15-3 the form in which each such payment must be tendered, a method of
15-4 calculating the fee, and the date by which each such payment must
15-5 be made; failure by a district to timely make an annual payment in
15-6 lieu of full-purpose annexation in the amount and form required by
15-7 a strategic partnership agreement shall be the only ground for
15-8 termination of the agreement with respect to annexation at the
15-9 option of the municipality;
15-10 (ii) to determine a reasonable fee to be
15-11 derived from residential property in a district, the municipality
15-12 or the district may request a cost-of-service study by an
15-13 independent third party agreeable to both parties if
15-14 cost-of-service data prepared by the municipality is not
15-15 acceptable. The municipality is [Both parties shall be equally]
15-16 responsible for the cost of the study, which shall include an
15-17 evaluation of the estimated annual cost of providing municipal
15-18 services to the residential portion of the district over the next
15-19 10 years and the estimated annual amount of ad valorem taxes from
15-20 residential property the city would receive on full-purpose
15-21 annexation of the district over the next 10 years. The governing
15-22 board of a district may contribute to the cost of any study. The
15-23 fee shall not exceed the estimated annual amount of residential ad
15-24 valorem taxes that would be derived by full-purpose annexation of
15-25 the district, less the estimated annual amount required to provide
15-26 municipal services to the residential property in the district if
15-27 annexed for full purposes. A fee determined through this
16-1 methodology is subject to renegotiation every 10 years at the
16-2 request of either party to the agreement, or every five years if
16-3 agreed to by all parties to the agreement, following the same
16-4 procedure used to set the fee in the original agreement. This
16-5 methodology does not apply to fees from commercial property;
16-6 (6) conversion of the district to a limited district
16-7 including some or all of the land included within the boundaries of
16-8 the district, which conversion shall be effective on the
16-9 full-purpose annexation conversion date established under
16-10 Subdivision (5)(A);
16-11 (7) agreements existing between districts and
16-12 governmental bodies and private providers of municipal services in
16-13 existence on the date a municipality evidences its intention by
16-14 adopting a resolution to negotiate for a strategic partnership
16-15 agreement with the district shall be continued and provision made
16-16 for modifications to such existing agreements; [and]
16-17 (8) such other lawful terms that the parties consider
16-18 appropriate; and
16-19 (9) the addition of other political subdivisions to
16-20 the agreement to allow the provision of the highest quality of
16-21 services at the lowest fee to residents of the district.
16-22 SECTION 6. Chapter 43, Local Government Code, is amended by
16-23 adding Subchapter I to read as follows:
16-24 SUBCHAPTER I. ANNEXATION PLANNING
16-25 Sec. 43.301. APPLICATION. This chapter applies to a
16-26 municipality with a population of 225,000 or more.
16-27 Sec. 43.302. RESTRICTIONS ON ANNEXATION OR REGULATION. A
17-1 municipality may not annex or regulate any area under this chapter
17-2 except if the annexation or regulation conforms to an annexation
17-3 plan adopted under this subchapter.
17-4 Sec. 43.303. ANNEXATION PLAN. (a) A municipality shall
17-5 prepare an annexation plan that describes any proposed annexations
17-6 or regulations in the municipality's extraterritorial jurisdiction
17-7 for a 10-year period following the publication of the plan. A
17-8 municipality may modify the plan annually.
17-9 (b) The plan adopted by the municipality shall require that
17-10 the annexation or regulation of an area occur in a manner that:
17-11 (1) is orderly;
17-12 (2) treats all areas in the municipality's
17-13 extraterritorial jurisdiction in the same manner;
17-14 (3) provides all necessary or requested information to
17-15 residents of the area to be annexed or regulated in a timely
17-16 manner;
17-17 (4) is fiscally responsible to residents of the
17-18 municipality and the area to be annexed or regulated;
17-19 (5) requires the municipality to cooperate with the
17-20 residents of the area and any other political subdivision located,
17-21 in whole or in part, in the area; and
17-22 (6) follows a logical and progressive manner.
17-23 Sec. 43.304. CONTENTS OF PLAN. (a) The plan shall:
17-24 (1) describe the municipality's method of determining
17-25 the areas in the municipality's extraterritorial jurisdiction that
17-26 will be annexed or regulated in the five years following the date
17-27 the plan is prepared;
18-1 (2) require that a municipality contact the existing
18-2 service providers in an area the municipality proposes to annex and
18-3 jointly develop any service plan required under Section 43.056;
18-4 (3) include the requirements of a planning study and
18-5 regulatory plan for each proposed annexation similar to the study
18-6 and plan described by Section 43.123; and
18-7 (4) require the municipality to describe the ability
18-8 of residents of the affected area to vote in any municipal election
18-9 or to participate in municipal government.
18-10 (b) A plan may not propose to annex or regulate an area in
18-11 the extraterritorial jurisdiction of the municipality if the area
18-12 is not directly adjacent to the boundaries of the municipality. An
18-13 area is not directly adjacent to the boundaries of a municipality
18-14 if the area is adjacent to the boundaries of the municipality by a
18-15 strip of area in the municipality that follows the course of a
18-16 road, highway, river, stream, or creek, and that has a width of
18-17 less than 1,000 feet at any point in the strip of area.
18-18 (c) A plan shall require that a municipality must conduct an
18-19 economic impact study before annexing an area. The study shall
18-20 measure the economic impact on the municipality and the area
18-21 proposed to be annexed. The study shall follow procedures similar
18-22 to those adopted by state agencies in conducting an economic impact
18-23 analysis. The study shall be conducted by an independent entity
18-24 selected by the municipality and an entity representing the
18-25 interests of the area proposed to be annexed. If a municipal
18-26 utility district or other special district exists in the area, the
18-27 district shall be the representative entity.
19-1 SECTION 7. Subchapter Z, Chapter 43, Local Government Code,
19-2 is amended by adding Section 43.905 to read as follows:
19-3 Sec. 43.905. OVERSIGHT OF CERTAIN ANNEXATIONS. (a) This
19-4 section applies only to an annexation:
19-5 (1) by a municipality with a population of 225,000 or
19-6 more; and
19-7 (2) of an area that contains any portion of a
19-8 municipal utility district.
19-9 (b) An annexation oversight committee shall be established
19-10 for each area annexed by a municipality under this chapter.
19-11 (c) The committee shall be composed of five members. Two
19-12 members of the committee must be members of the governing body of
19-13 any municipal utility district located in the extraterritorial
19-14 jurisdiction of the most populous municipality in the state that
19-15 has a population less than the population of the annexing
19-16 municipality and shall be appointed by the county judge of the
19-17 county in which a majority of the district is located. Two members
19-18 of the committee must be members of the governing body of the next
19-19 two most populous municipalities in the state that have a
19-20 population less than the population of the annexing municipality,
19-21 and each of those municipal governing bodies shall appoint one
19-22 member. The presiding officer of the committee must be a visiting
19-23 judge jointly appointed by the governing body of the annexing
19-24 municipality and the governing bodies of all the municipal utility
19-25 districts located in whole or in part in the annexed area. If a
19-26 person who is required to appoint a member of the committee has not
19-27 appointed the member before the 45th day after the date of the
20-1 annexation, the member shall be jointly appointed by the annexing
20-2 municipality and the municipal utility districts.
20-3 (d) The committee may meet after the 90th day following the
20-4 effective date of the annexation but before the 270th day following
20-5 the effective date of the annexation.
20-6 (e) The annexing municipality shall:
20-7 (1) pay each member of the committee a $25 per diem
20-8 for each day the member engages in the business of the committee;
20-9 (2) reimburse the actual expenses of each member of
20-10 the committee; and
20-11 (3) pay the costs of the operation of the committee.
20-12 (f) The committee shall review the municipality's compliance
20-13 with any service plan for the annexed area adopted under this
20-14 chapter. The committee shall establish procedures to allow persons
20-15 in the annexed area to bring complaints to the committee for
20-16 investigation and rules for the investigation and resolution of the
20-17 complaints.
20-18 (g) If a majority of the committee determines that the
20-19 municipality has failed to provide a service required under a
20-20 service plan, the committee may issue a warning to the municipality
20-21 to comply with the service plan within 10 days after the date the
20-22 warning is issued. If the municipality does not remedy the
20-23 noncompliance with the service plan within the 10-day period, a
20-24 majority of the committee may fine the municipality not more than
20-25 $500 for each day of a violation. If the fine is not paid within
20-26 seven business days after the date it is imposed, the municipality
20-27 shall be assessed a fee of $200 for each day the payment is late.
21-1 (h) The municipality may appeal a fine to the district court
21-2 of the county in which the majority of the municipality is located.
21-3 The court shall review the imposition of the fine under a
21-4 substantial evidence rule.
21-5 (i) A fine or late fee paid by the municipality under this
21-6 section shall be equally distributed to each homeowners association
21-7 whose boundaries are wholly or partly in the annexed area.
21-8 (j) The committee may also resolve any disputes between the
21-9 municipality and any service provider with which the municipality
21-10 has contracted under the service plan.
21-11 (k) On the 270th day after the effective date of the
21-12 annexation, the committee shall make a final determination if the
21-13 municipality is in compliance with the service plans adopted under
21-14 this chapter. If the committee determines that a municipality has
21-15 not provided services required under a service plan, the finding by
21-16 the committee is final against the municipality and the
21-17 municipality may not challenge the finding in any subsequent
21-18 disannexation proceeding. If the committee determines the
21-19 municipality is in compliance, the finding is not admissible in any
21-20 subsequent disannexation proceeding and is not binding on any
21-21 party. The terms of office for committee members expire
21-22 immediately following the committee's determination under this
21-23 subsection.
21-24 (l) The committee may also act as an arbitration panel, if
21-25 requested by any party, of a commercial matter required to be
21-26 resolved as a result of the annexation.
21-27 (m) If disannexation occurs, the committee shall act as an
22-1 arbitration panel to determine the apportionment of any asset,
22-2 debt, bond, or other financial instrument between the municipality
22-3 and any other political subdivision. If the committee makes a
22-4 determination under this subsection, the provisions of this chapter
22-5 relating to restrictions on the release of an annexed area from a
22-6 municipality's taxing authority do not apply.
22-7 SECTION 8. Before November 1, 1997, the lieutenant governor,
22-8 the speaker of the house, and the county judges shall appoint
22-9 members to the Study Commission on Municipal Annexation as provided
22-10 by Section 43.0202, Local Government Code, as added by this Act.
22-11 SECTION 9. Section 43.0201, Local Government Code, as added
22-12 by this Act, applies to any action by a municipality to annex an
22-13 area, regardless of whether the annexation proceeding was initiated
22-14 before the effective date of this Act.
22-15 SECTION 10. The changes in law made by Sections 43.0215,
22-16 43.0541, 43.0542, and 43.905, Local Government Code, as added by
22-17 this Act, apply only to an annexation in process on or initiated
22-18 after the effective date of this Act.
22-19 SECTION 11. A municipality shall adopt a plan under
22-20 Subchapter I, Chapter 43, Local Government Code, as added by this
22-21 Act, not later than January 1, 1998. A municipality may not annex
22-22 an area or impose a new regulation on an area until the
22-23 municipality has adopted a plan under this section.
22-24 SECTION 12. The importance of this legislation and the
22-25 crowded condition of the calendars in both houses create an
22-26 emergency and an imperative public necessity that the
22-27 constitutional rule requiring bills to be read on three several
23-1 days in each house be suspended, and this rule is hereby suspended,
23-2 and that this Act take effect and be in force from and after its
23-3 passage, and it is so enacted.