By Galloway S.B. No. 1742 75R8448 CAG-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the oversight of recently completed annexations by 1-3 certain municipalities. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter Z, Chapter 43, Local Government Code, 1-6 is amended by adding Section 43.905 to read as follows: 1-7 Sec. 43.905. OVERSIGHT OF CERTAIN ANNEXATIONS. (a) This 1-8 section applies only to an annexation: 1-9 (1) by a municipality with a population of 225,000 or 1-10 more; and 1-11 (2) of an area that contains any portion of a 1-12 municipal utility district. 1-13 (b) An annexation oversight committee shall be established 1-14 for each area annexed by a municipality under this chapter. 1-15 (c) The committee shall be composed of five members. Two 1-16 members of the committee must be members of the governing body of 1-17 any municipal utility district located in the extraterritorial 1-18 jurisdiction of the most populous municipality in the state that 1-19 has a population less than the population of the annexing 1-20 municipality and shall be appointed by the county judge of the 1-21 county in which a majority of the district is located. Two members 1-22 of the committee must be members of the governing body of the next 1-23 two most populous municipalities in the state that have a 1-24 population less than the population of the annexing municipality, 2-1 and each of those municipal governing bodies shall appoint one 2-2 member. The presiding officer of the committee must be a visiting 2-3 judge jointly appointed by the governing body of the annexing 2-4 municipality and the governing bodies of all the municipal utility 2-5 districts located in whole or in part in the annexed area. If a 2-6 person who is required to appoint a member of the committee has not 2-7 appointed the member before the 45th day after the date of the 2-8 annexation, the member shall be jointly appointed by the annexing 2-9 municipality and the municipal utility districts. 2-10 (d) The committee may meet after the 90th day following the 2-11 effective date of the annexation but before the 270th day following 2-12 the effective date of the annexation. 2-13 (e) The annexing municipality shall: 2-14 (1) pay each member of the committee a $25 per diem 2-15 for each day the member engages in the business of the committee; 2-16 (2) reimburse the actual expenses of each member of 2-17 the committee; and 2-18 (3) pay the costs of the operation of the committee. 2-19 (f) The committee shall review the municipality's compliance 2-20 with any service plan for the annexed area adopted under this 2-21 chapter. The committee shall establish procedures to allow persons 2-22 in the annexed area to bring complaints to the committee for 2-23 investigation and rules for the investigation and resolution of the 2-24 complaints. 2-25 (g) If a majority of the committee determines that the 2-26 municipality has failed to provide a service required under a 2-27 service plan, the committee may issue a warning to the municipality 3-1 to comply with the service plan within 10 days after the date the 3-2 warning is issued. If the municipality does not remedy the 3-3 noncompliance with the service plan within the 10-day period, a 3-4 majority of the committee may fine the municipality not more than 3-5 $500 for each day of a violation. If the fine is not paid within 3-6 seven business days after the date it is imposed, the municipality 3-7 shall be assessed a fee of $200 for each day the payment is late. 3-8 (h) The municipality may appeal a fine to the district court 3-9 of the county in which the majority of the municipality is located. 3-10 The court shall review the imposition of the fine under a 3-11 substantial evidence rule. 3-12 (i) A fine or late fee paid by the municipality under this 3-13 section shall be equally distributed to each homeowners association 3-14 whose boundaries are wholly or partly in the annexed area. 3-15 (j) The committee may also resolve any disputes between the 3-16 municipality and any service provider with which the municipality 3-17 has contracted under the service plan. 3-18 (k) On the 270th day after the effective date of the 3-19 annexation, the committee shall make a final determination if the 3-20 municipality is in compliance with the service plans adopted under 3-21 this chapter. If the committee determines that a municipality has 3-22 not provided services required under a service plan, the finding by 3-23 the committee is final against the municipality and the 3-24 municipality may not challenge the finding in any subsequent 3-25 disannexation proceeding. If the committee determines the 3-26 municipality is in compliance, the finding is not admissible in any 3-27 subsequent disannexation proceeding and is not binding on any 4-1 party. The terms of office for committee members expire 4-2 immediately following the committee's determination under this 4-3 subsection. 4-4 (l) The committee may also act as an arbitration panel, if 4-5 requested by any party, of a commercial matter required to be 4-6 resolved as a result of the annexation. 4-7 (m) If disannexation occurs, the committee shall act as an 4-8 arbitration panel to determine the apportionment of any asset, 4-9 debt, bond, or other financial instrument between the municipality 4-10 and any other political subdivision. If the committee makes a 4-11 determination under this subsection, the provisions of this chapter 4-12 relating to restrictions on the release of an annexed area from a 4-13 municipality's taxing authority do not apply. 4-14 SECTION 2. This Act applies to any annexation that has not 4-15 been completed before the effective date of this Act. 4-16 SECTION 3. The importance of this legislation and the 4-17 crowded condition of the calendars in both houses create an 4-18 emergency and an imperative public necessity that the 4-19 constitutional rule requiring bills to be read on three several 4-20 days in each house be suspended, and this rule is hereby suspended, 4-21 and that this Act take effect and be in force from and after its 4-22 passage, and it is so enacted.