Amend CSSB 89 as follows:
      (1)  In SECTION 4 of the bill, strike Section 43.052(d)(1),
Local Government Code (Committee Printing page 4, lines 4-6), and
substitute the following:
            (1)  reduce the tax rate applicable to the area if the
amount that would remain in the debt service fund after the
reduction and after subtracting the amount due for debt service in
the following year is less than 25 percent of the debt service
requirements for the following year;
      (2)  In SECTION 4 of the bill, strike Section 43.052(h),
Local Government Code (Committee Printing page 6, line 13, through
page 7, line 9), and substitute the following:
      (h)  This section does not apply to an area proposed for
annexation if:
            (1)  the area contains fewer than 100 separate tracts
of land on which one or more residential dwellings are located on
each tract;
            (2)  the area will be annexed by petition of more than
50 percent of the real property owners in the area proposed for
annexation or by vote or petition of the qualified voters or real
property owners as provided by Subchapter B;
            (3)  the area is included within the boundaries of a
special district and the governing board of the district requested
annexation of the area during the one-year period before the date
the municipality adopts an ordinance to annex the area;
            (4)  the area is the subject of an industrial district
contract under Section 42.044 or a strategic partnership agreement
under Section 43.0751;
            (5)  the area is located in a colonia, as that term is
defined by Section 2306.581, Government Code;
            (6)  the area is annexed under Section 43.026, 43.027,
43.029, or 43.031;
            (7)  the area is located completely within the
boundaries of a closed military installation; or
            (8)  the municipality determines that the annexation of
the area is necessary to protect the area proposed for annexation
or the municipality from:
                  (A)  imminent destruction of property or injury
to persons; or
                  (B)  a condition or use that constitutes a public
or private nuisance as defined by background principles of nuisance
and property law of this state.
      (i)  A municipality may not circumvent the requirements of
this section by proposing to separately annex two or more areas
described by Subsection (h)(1) if no reason exists under generally
accepted municipal planning principles and practices for separately
annexing the areas.  If a municipality proposes to separately annex
areas in violation of this section, a person residing or owning
land in the area may petition the municipality to include the area
in the municipality's annexation plan.  If the municipality fails
to take action on the petition, the petitioner may request
arbitration of the dispute.  The petitioner must request the
appointment of an arbitrator in writing to the municipality.
Sections 43.0564(b), (c), and (e) apply to the appointment of an
arbitrator and the conduct of an arbitration proceeding under this
subsection.  Except as provided by this subsection, the
municipality shall pay the cost of arbitration.  If the arbitrator
finds that the petitioner's request for arbitration was groundless
or requested in bad faith or for the purposes of harassment, the
arbitrator shall require the petitioner to pay the costs of
arbitration.
      (3)  In SECTION 6 of the bill, strike Section 43.056(b),
Local Government Code (Committee Printing page 11, line 11, through
page 12, line 6), and substitute the following:
      (b)  The service plan must include a program under which the
municipality will provide full municipal services in the annexed
area no later than 2-1/2 <4-1/2> years after the effective date of
the annexation, in accordance with Subsection (e), unless that
period is extended by an arbitration decision issued under this
chapter or by agreement between the municipality and the party with
which the municipality is required to negotiate for services under
this subchapter <(d)>.  However, under the program if the
municipality provides any of the following services within the
corporate boundaries of the municipality before annexation, the
municipality must provide those <the following> services in the
area proposed for annexation on <within 60 days after> the
effective date of the annexation of the area:
            (1)  police protection;
            (2)  fire protection;
            (3)  emergency medical services;
            (4)  solid waste collection, except as provided by
Subsection (o);
            (5)  operation and <(4)>  maintenance of water and
wastewater facilities in the annexed area that are not within the
service area of another water or wastewater utility;
            (6)  operation and <(5)>  maintenance of roads and
streets, including road and street lighting;
            (7)  operation and <(6)>  maintenance of parks,
playgrounds, and swimming pools; and
            (8)  operation and <(7)>  maintenance of any other
publicly owned facility, building, or service.
            (4)  In SECTION 6 of the bill, strike Section
43.056(c), Local Government Code (Committee Printing page 13, lines
10-14), and substitute the following:
      (c)  For purposes of this section, "full municipal services"
means services <funded in whole or in part by municipal taxation
and> provided by the annexing municipality within its full-purpose
boundaries , including water and wastewater services and excluding
gas or electrical service.
      (5)  In SECTION 6 of the bill, strike Sections 43.056(l) and
(m), Local Government Code (Committee Printing page 18, line 4,
through page 19, line 5), and substitute the following:
      (l) <(i)>  A service plan is valid for 10 years.  Renewal of
the service plan is at the discretion of the municipality.  A
person residing or owning land in an annexed area in a municipality
with a population of 1.6 million or more may enforce a service plan
by petitioning the municipality for a change in policy or
procedures to ensure compliance with the service plan.  If the
municipality fails to take action with regard to the petition, the
petitioner may request arbitration of the dispute under Section
43.0565.  A person residing or owning land in an annexed area in a
municipality with a population of less than 1.6 million may enforce
a service plan by applying for a writ of mandamus not later than
the second anniversary of the date the person knew or should have
known that the municipality was not complying with the service
plan.  If a writ of mandamus is applied for, the municipality has
the burden of proving that the services have been provided in
accordance with the service plan in question.  If a court issues a
<the> writ under this subsection, the court: 
            (1)  <municipality shall pay the person's costs and
reasonable attorney's fees in bringing the action.  A writ issued
under this subsection> must provide the municipality the option of
disannexing the area within a reasonable period specified by the
court;
            (2)  may require the municipality to comply with the
service plan in question before a reasonable date specified by the
court if the municipality does not disannex the area within the
period prescribed by the court under Subdivision (1);
            (3)  may require the municipality to refund to the
landowners of the annexed area money collected by the municipality
from those landowners for services to the area that were not
provided;
            (4)  may assess a civil penalty against the
municipality, to be paid to the state in an amount as justice may
require, for the period in which the municipality is not in
compliance with the service plan;
            (5)  may require the parties to participate in
mediation; and
            (6)  may require the municipality to pay the person's
costs and reasonable attorney's fees in bringing the action for the
writ <30 days>.
      (m) <(j)  A municipality that annexes an area shall provide
the area or cause the area to be provided with services in
accordance with the service plan for the area.>
      <(k)>  This section does not require that a uniform level of
full municipal services be provided to each area of the
municipality if different characteristics of topography, land use,
and population density constitute <are considered> a sufficient
basis for providing different levels of service.  Any dispute
regarding the level of services provided under this subsection are
resolved in the same manner provided by Subsection (l).  Nothing in
this subsection modifies the requirement under Subsection (g) for a
service plan to provide a level of services in an annexed area that
is equal or superior to the level of services provided within the
corporate boundaries of the municipality before annexation.  To the
extent of any conflict between this subsection and Subsection (g),
Subsection (g) prevails.
      (6)  In SECTION 6 of the bill, in Section 43.056, Local
Government Code, add Subsections (n) and (o) (Committee Printing
page 19, between lines 5 and 6) to read as follows:
      (n)  Before the third anniversary after the date an area is
included within the corporate boundaries of a municipality by
annexation, the municipality may not:
            (1)  prohibit the collection of solid waste in the area
by a privately owned solid waste management service provider; or
            (2)  impose a fee for solid waste management services
on a person who continues to use the services of a privately owned
solid waste management service provider.
      (o)  A municipality is not required to provide solid waste
collection services under Subsection (b) to a person who continues
to use the services of a privately owned solid waste management
service provider as provided by Subsection (n).
      (7)  In SECTION 7 of the bill, strike Section 43.0563(a),
Local Government Code (Committee Printing page 21, lines 16-22),
and substitute the following:
      (a)  The governing body of a municipality with a population
of less than 1.6 million may negotiate and enter into a written
agreement with representatives designated under Section
43.0562(a)(1) for the provision of services and the funding of the
services in the area.  Notwithstanding other law, the agreement may
also include an agreement related to permissible land uses and
compliance with municipal ordinances.
      (8)  In SECTION 8 of the bill, strike Section 43.062, Local
Government Code (Committee Printing page 28, lines 20-22), and
substitute the following:
      Sec. 43.062.  PROCEDURES APPLICABLE. (a)  Sections 43.051,
43.054, 43.0545, 43.055, 43.0565, 43.0567, and 43.057 apply to the
annexation of an area to which this subchapter applies.
      (b)  Sections 43.0562, 43.0563, and 43.0564 apply to the
annexation of an area described by Section 43.052(h)(1).  For
purposes of this subsection, a reference in 43.0562 to Section
43.0561 means Section 43.063.
      (9)  In SECTION 8 of the bill, in Section 43.065(b), Local
Government Code (Committee Printing page 30, line 12), strike "(m)"
and substitute "(o)".
      (10)  In SECTION 16 of the bill, strike Subsections (d) and
(e) (Committee Printing page 38, lines 4-21) and substitute the
following:
      (d)  The changes in law made by this Act in Sections 43.002,
43.0545, 43.056(b), (c), (e), (f), (g), (l), (m), (n), and (o),
43.0562, 43.0563, 43.0564, 43.0565, 43.0751, 43.0752, 43.121(a),
43.141(c), 43.148, and 43.905, Local Government Code, as added or
amended by this Act, apply to the annexation of an area that is not
included in the municipality's annexation plan during the period
beginning December 31, 1999, and ending December 31, 2002, if the
first public hearing required as part of the annexation procedure
is conducted on or after September 1, 1999.  For purposes of
applying Section 43.0562, Local Government Code, as provided by
this subsection, a reference to Section 43.0561, Local Government
Code, means Section 43.052, Local Government Code, as it existed
immediately before September 1, 1999.  For purposes of applying
Section 43.0751, Local Government Code, as provided by this
subsection, a reference to a district included in a municipality's
annexation plan means a district for which a service plan has been
prepared under Section 43.056, Local Government Code.
      (e)  The changes in law made by this Act in Sections 43.002,
43.0545, 43.056(b), (c), (e), (f), (g), (l), (m), (n), and (o),
43.0565, 43.121(a), 43.141(c), 43.148, and 43.905, Local Government
Code, as added or amended by this Act, apply to the annexation of
an area that is not required to be included in a municipal
annexation plan under Section 43.052, Local Government Code, as
amended by this Act, if the first hearing notice required by
Section 43.063, Local Government Code, as added by this Act, is
published on or after September 1, 1999.