Amend CSSB 89 as follows:
(1) In SECTION 2 of the bill, in the recital to that
section, strike "Section 43.002" and substitute "Sections 43.002
and 43.003" (Committee Printing page 1, line 29).
(2) In SECTION 2 of the bill, immediately following the
colon at the end of the recital to that section, insert a new
Section 43.002, Local Government Code (Committee Printing page 1,
between lines 29 and 30), to read as follows:
Sec. 43.002. APPLICABILITY. This chapter does not apply to a
municipality with a population of 1.6 million or more.
(3) In SECTION 2 of the bill, in the heading to Section
43.002, Local Government Code (Committee Printing page 1, line 30),
strike "Sec. 43.002" and substitute "Sec. 43.003".
(4) In SECTION 6 of the bill, strike the first sentence in
Section 43.056(d), Local Government Code (Committee Printing, page
5, lines 45-47), and substitute the following:
(d) <A municipality with a population of 1.5 million or more
may provide all or part of the municipal services required under
the service plan by contracting with service providers.>
(5) In SECTION 7 of the bill, in the recital to that
section, strike "Section 43.0566" and substitute "Section 43.0565"
(Committee Printing page 7, line 62).
(6) In SECTION 7 of the bill, in Section 43.0566, Local
Government Code, strike "Sec. 43.0566" and substitute "Sec.
43.0565" (Committee Printing page 9, line 40).
(7) In SECTION 8 of the bill, in Section 43.062, Local
Government Code, strike "43.0565," (Committee Printing page 10,
line 7).
(8) In SECTION 8 of the bill, strike Section 43.064, Local
Government Code (Committee Printing page 10, lines 32-43), and
substitute the following:
Sec. 43.064. PERIOD FOR COMPLETION OF ANNEXATION. The
annexation of an area must be completed within 90 days after the
date the governing body institutes the annexation proceedings or
those proceedings are void. Any period during which the
municipality is restrained or enjoined by a court from annexing the
area is not included in computing the 90-day period.
(9) Immediately following SECTION 8 of the bill, insert a
new SECTION to the bill (Committee Printing page 10, between lines
54 and 55) to be numbered appropriately to read as follows:
SECTION ____. Section 43.0715(b), Local Government Code, is
amended to read as follows:
(b) If a municipality <with a population of less than 1.5
million> annexes a special district for full or limited purposes
and the annexation precludes or impairs the ability of the district
to issue bonds, the municipality shall, simultaneously with the
annexation, pay in cash to the landowner or developer of the
district a sum equal to all actual costs and expenses incurred by
the landowner or developer in connection with the district that the
district has, in writing, agreed to pay and that would otherwise
have been eligible for reimbursement from bond proceeds under the
rules and requirements of the Texas Natural Resource Conservation
Commission as such rules and requirements exist on the date of
annexation.
(10) Immediately following SECTION 13 of the bill, insert a
new SECTION to the bill (Committee Printing page 12, between lines
4 and 5) to be numbered appropriately to read as follows:
SECTION ____. Subtitle C, Title 2, Local Government Code, is
amended by adding Chapter 44, redesignating Section 43.0565 of the
Local Government Code as Section 44.057 of the Local Government
Code, and amending the redesignated section to read as follows:
CHAPTER 44. MUNICIPAL ANNEXATION IN CERTAIN POPULOUS
MUNICIPALITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 44.001. APPLICABILITY. This chapter applies only to a
municipality with a population of 1.6 million or more.
Sec. 44.002. CONTINUATION OF LAND USE. (a) Sections
43.003(a) and (b) apply to the annexation of an area by the
municipality.
(b) This section does not prohibit a municipality from
prohibiting the sale and use of fireworks in the area.
Sections 44.003-44.020 reserved for expansion
SUBCHAPTER B. GENERAL AUTHORITY TO ANNEX
Sec. 44.021. GENERAL AUTHORITY TO ANNEX. (a) Sections
43.021, 43.022, 43.028, 43.031, 43.032, and 43.102 apply to the
annexation of an area by the municipality.
(b) For purposes of this section, the reference to Section
43.054 in Section 43.102(d) means Section 44.054.
Sections 44.022-44.050 reserved for expansion
SUBCHAPTER C. ANNEXATION PROCEDURE FOR AREAS ANNEXED UNDER
MUNICIPAL ANNEXATION PLAN
Sec. 44.051. AUTHORITY TO ANNEX LIMITED TO EXTRATERRITORIAL
JURISDICTION. Section 43.051 applies to the annexation of an area
by the municipality.
Sec. 44.052. MUNICIPAL ANNEXATION PLAN REQUIRED. (a) In
this section "district" means a municipal utility district, water
control and improvement district, or other district created under
Section 52, Article III, or Section 59, Article XVI, of the Texas
Constitution.
(b) A municipality may annex an area identified in the
annexation plan only as provided by this section.
(c) A municipality shall prepare an annexation plan that
specifically identifies annexations that may occur beginning on the
third anniversary of the date the annexation plan is adopted. The
municipality may amend the plan to specifically identify
annexations that may occur beginning on the third anniversary of
the date the plan is amended.
(d) At any time during which the area of a district is
included in a municipality's annexation plan, the district may not
take an action described by Section 43.052(c) without the consent
of the municipality.
(e) A municipality may amend its annexation plan at any time
to remove an area proposed for annexation. If, before the end of
the 18th month after the month an area is included in the
three-year annexation cycle, a municipality amends its annexation
plan to remove the area, the municipality may not amend the plan
to again include the area in its annexation plan until the first
anniversary of the date the municipality amended the plan to remove
the area. If, during or after the 18 months after the month an
area is included in the three-year annexation cycle, a municipality
amends its annexation plan to remove the area, the municipality may
not amend the plan to again include the area in its annexation plan
until the second anniversary of the date the municipality amended
the plan to remove the area.
(f) Before the 90th day after the date a municipality adopts
or amends an annexation plan under this section, the municipality
shall give written notice to:
(1) each property owner in the affected area, as
indicated by the appraisal records furnished by the appraisal
district for each county in which the affected area is located,
that the area has been included in or removed from the
municipality's annexation plan;
(2) each public entity, as defined by Section 43.053,
or private entity that provides services in the area proposed for
annexation; and
(3) each railroad company that serves the municipality
and is on the municipality's tax roll if the company's right-of-way
is in the area proposed for annexation.
(g) This section does not apply to an area proposed for
annexation if:
(1) the area has fewer than 250 permanent residents;
(2) the area will be annexed by vote or petition of
the qualified voters or property owners as provided by Subchapter
B;
(3) the area is annexed at the request of a district;
(4) the area is the subject of an industrial district
contract under Section 42.044;
(5) the area is annexed under Section 43.031; or
(6) the municipality determines that the annexation of
the area is necessary to protect the public health or safety.
Sec. 44.053. INVENTORY OF SERVICES AND FACILITIES REQUIRED.
(a) Except as provided by this section, Section 43.053 applies to
the annexation of an area by the municipality.
(b) Notwithstanding Section 43.053(c), if a service provider
fails to provide the information required within the 90-day period,
the municipality is not required to include the information in an
inventory prepared under this section.
(c) The municipality may monitor the services provided in an
area proposed for annexation and verify the inventory information
provided by a service provider.
Sec. 44.054. WIDTH REQUIREMENTS. (a) In this section,
"designated municipal area" means the area within the corporate
boundaries of a municipality other than:
(1) an area annexed by the municipality before
September 1, 1999, that was less than 1,000 feet in width at its
narrowest point;
(2) an area annexed by the municipality before
September 1, 1999, that was contiguous to a strip of municipal
territory that was less than 1,000 feet in width at its narrowest
point when the annexation occurred;
(3) an area annexed after December 1, 1995, and before
September 1, 1999;
(4) property owned by the municipality; and
(5) an area contiguous to property owned by the
municipality if the municipal property was annexed in an annexation
that included an area that was less than 1,000 feet in width at its
narrowest point.
(b) A municipality may not annex an area unless the width of
the area at its narrowest point is at least 1,500 feet. At least
1,500 feet of the boundaries of the area proposed for annexation
must be contiguous to the boundaries of the designated municipal
area of the municipality.
(c) This section does not apply to:
(1) an area if:
(A) the area is contiguous to an area annexed by
the municipality before September 1, 1999, that is less than 1,000
feet in width at its narrowest point; and
(B) the area previously annexed and the area
proposed for annexation combined is at least 1,500 feet in width;
(2) an area completely surrounded by designated
municipal area;
(3) an area in which the property owners request
annexation by the municipality;
(4) an area in a district, as defined by Section
44.052(a), if the governing board of the district by majority vote
requests annexation;
(5) an area owned by the municipality; or
(6) an area with fewer than 50 residents.
Sec. 44.055. MAXIMUM AMOUNT OF ANNEXATION EACH YEAR. Section
43.055 applies to the annexation of an area by the municipality.
Sec. 44.056. PROVISION OF SERVICES TO ANNEXED AREA. (a)
Before the first day of the 10th month after the month in which the
inventory is prepared as provided by Section 44.053, the governing
body of the municipality proposing the annexation shall direct its
planning department or other appropriate municipal department to
prepare a service plan that provides for the extension of full
municipal services to the area to be annexed. The municipality
shall provide the services by any of the methods by which it
extends the services to any other area of the municipality.
(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 years after the effective date of the
annexation, in accordance with Subsection (e). However, under the
program the municipality must provide the following services in the
area on the effective date of the annexation of the area:
(1) police protection;
(2) fire protection;
(3) emergency medical services;
(4) solid waste collection;
(5) operation and 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 maintenance of roads and streets,
including road and street lighting;
(7) operation and maintenance of parks, playgrounds,
and swimming pools; and
(8) operation and maintenance of any other publicly
owned facility, building, or service.
(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.
(d) A municipality may provide all or part of the municipal
services required under the service plan by contracting with
service providers. If the municipality owns a water and wastewater
utility, the municipality shall, subject to this section, extend
water and wastewater service to any annexed area not within the
service area of another water or wastewater utility. If the
municipality annexes territory included within the boundaries of a
municipal utility district or a water control and improvement
district, the municipality shall comply with applicable state law
relating to annexation of territory within a municipal utility
district or a water control and improvement district. The service
plan shall summarize the service extension policies of the
municipal water and wastewater utility.
(e) The service plan must also include a program under which
the municipality will initiate after the effective date of the
annexation the acquisition or construction of capital improvements
necessary for providing municipal services adequate to serve the
area. The construction shall be substantially completed within
2-1/2 years after the effective date of the annexation. The
acquisition or construction of the facilities shall be accomplished
by purchase, lease, or other contract or by the municipality
succeeding to the powers, duties, assets, and obligations of a
conservation and reclamation district as authorized or required by
law. The construction of the facilities shall be accomplished in a
continuous process and shall be completed as soon as reasonably
possible, consistent with generally accepted local engineering and
architectural standards and practices. However, the municipality
does not violate this subsection if the construction process is
interrupted for any reason by circumstances beyond the direct
control of the municipality. The requirement that construction of
capital improvements must be substantially completed within 2-1/2
years:
(1) does not apply to a development project or
proposed development project within an annexed area if the
annexation of the area was initiated by petition or request of the
owners of land in the annexed area and the municipality and the
landowners have agreed in writing that the development project
within that area, because of its size or projected manner of
development by the developer, is not reasonably expected to be
completed within that period; or
(2) may be extended by:
(A) an agreement entered into by the
municipality and a district, as defined by Section 44.052(a); or
(B) a decision issued by an arbitrator under
Section 44.060.
(f) A service plan may not:
(1) require the creation of another political
subdivision;
(2) require a landowner in the area to fund the
capital improvements necessary to provide municipal services in a
manner inconsistent with Chapter 395 unless otherwise agreed to by
the landowner; or
(3) provide services in the area in a manner that
would have the effect of reducing the level of fire and police
protection and emergency medical services provided within the
corporate boundaries of the municipality before annexation.
(g) If the annexed area had a lower level of services,
infrastructure, and infrastructure maintenance than the level of
services, infrastructure, and infrastructure maintenance provided
within the corporate boundaries of the municipality before
annexation, a service plan must provide the annexed area with a
level of services, infrastructure, and infrastructure maintenance
that is comparable to the level of services available in other
parts of the municipality with land uses and population densities
similar to those reasonably contemplated or projected in the area.
If the annexed area had a level of services, infrastructure, and
infrastructure maintenance equal to the level of services,
infrastructure, and infrastructure maintenance provided within the
corporate boundaries of the municipality before annexation, a
service plan must maintain that same level of services,
infrastructure, and infrastructure maintenance. If the annexed
area had a level of services, infrastructure, and infrastructure
maintenance superior to the level of services, infrastructure, and
infrastructure maintenance provided within the corporate boundaries
of the municipality before annexation, a service plan must provide
the annexed area with a level of services, infrastructure, and
infrastructure maintenance that is comparable to the level of
services, infrastructure, and infrastructure maintenance that
existed in the annexed area before annexation.
(h) The municipality may not impose a fee in the annexed
area, over and above ad valorem taxes and fees imposed within the
corporate boundaries of the municipality before annexation, to
maintain the level of services that existed in the area before
annexation. This subsection does not prohibit the municipality
from imposing a fee for a service in the area annexed if the same
fee is imposed within the corporate boundaries of the municipality
before annexation.
(i) If only a part of the area to be annexed is actually
annexed, the governing body shall direct the department to prepare
a revised service plan for that part.
(j) The proposed service plan must be made available for
public inspection and explained to the inhabitants of the area at
the public hearings held under Section 44.058. The plan may be
amended through negotiation at the hearings, but the provision of
any service may not be deleted. On completion of the public
hearings, the service plan shall be attached to the ordinance
annexing the area and approved as part of the ordinance.
(k) On approval by the governing body, the service plan is a
contractual obligation that is not subject to amendment or repeal
except that if the governing body determines at the public hearings
required by this subsection that changed conditions or subsequent
occurrences make the service plan unworkable or obsolete, the
governing body may amend the service plan to conform to the changed
conditions or subsequent occurrences. An amended service plan must
provide for services that are comparable to or better than those
established in the service plan before amendment. Before any
amendment is adopted, the governing body must provide an
opportunity for interested persons to be heard at public hearings
called and held in the manner provided by Section 44.058.
(l) 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 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
44.061.
(m) This section does not require that a uniform level of
full municipal services be provided to each area of the
municipality if the governing body of the municipality determines
that different characteristics of topography, land use, and
population density are considered a sufficient basis for providing
different levels of service. A district, as defined by Section
44.052(a), aggrieved by a determination made by a municipality
under this subsection may request arbitration of the dispute under
Section 44.060. 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 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.
Sec. 44.057 <43.0565>. PROVISION OF WATER OR SEWER SERVICES.
(a) The requirements of this section are in addition to those
prescribed by Section 44.056 <43.056>.
(b) A municipality that includes within its boundaries
annexed areas without water service, sewer service, or both:
(1) shall develop a service plan that:
(A) must identify developed tracts in annexed
areas of the municipality that do not have water service, sewer
service, or both and must provide a procedure for providing water
service, sewer service, or both to those developed tracts;
(B) must establish a timetable for providing
service based on a priority system that considers potential health
hazards, population density, the number of existing buildings, the
reasonable cost of providing service, and the desires of the
residents;
(C) must include a capital improvements plan
committing the necessary financing;
(D) may relieve the municipality from an
obligation to provide water service, sewer service, or both in an
area described in the service plan if a majority of the households
in the area sign a petition stating they do not want to receive the
services; and
(E) may require property owners to connect to
service lines constructed to serve their area;
(2) shall provide water service, sewer service, or
both to at least 75 percent of the residential buildings in annexed
areas of the municipality that did not have water service, sewer
service, or both on September 1, 1991;
(3) shall provide water service to each area annexed
before January 1, 1993, if the area or subdivision as described in
the service plan contains at least 25 residences without water
service, unless a majority of the households in the area state in a
petition that they do not want municipal water service; and
(4) is subject to the penalty prescribed by Section
5.235(n)(6), Water Code, for the failure to provide services.
Sec. 44.058. ANNEXATION HEARING REQUIREMENTS. (a) Section
43.0561 applies to the annexation of an area by the municipality.
(b) For purposes of Section 43.0561(b), if a suitable site
is not reasonably available in the area proposed for annexation,
the hearing may be held outside the area proposed for annexation if
the hearing is held in the nearest suitable public facility.
Sec. 44.059. NEGOTIATIONS REQUIRED. (a) This section
applies only to the annexation of a district, as defined by Section
44.052(a).
(b) After holding the hearings as provided by Section
44.058, the municipality shall negotiate with the governing board
of the district proposed for annexation for the provision of
services to the district after annexation.
(c) If more than one district is located in the area
proposed for annexation, the governing boards of the districts
shall jointly select five representatives to negotiate with the
municipality on behalf of all the affected districts.
Sec. 44.060. ARBITRATION REGARDING NEGOTIATIONS FOR
SERVICES. (a) If the municipality and the district cannot reach an
agreement for the provision of services under Section 44.059,
either party may request the appointment of an arbitrator to
resolve the service plan issues in dispute. The request must be
made in writing to the other party before the 60th day after the
date the service plan is completed under Section 44.056. The
municipality may not annex the area under another section of this
chapter during the pendency of the arbitration proceeding or an
appeal from the arbitrator's decision.
(b) The parties to the dispute may agree on the appointment
of an arbitrator. If the parties cannot agree on the appointment
of an arbitrator before the 11th business day after the date
arbitration is requested, the mayor of the municipality shall
immediately request a list of seven neutral arbitrators from the
American Arbitration Association or the Federal Mediation and
Conciliation Service or their successors in function. An
arbitrator included in the list must be a resident of this state
and may not be a resident of a county in which any part of the
municipality or any part of the district proposed for annexation is
located. The parties to the dispute may agree on the appointment
of an arbitrator included in the list. If the parties cannot agree
on the appointment of an arbitrator before the 11th business day
after the date the list is provided to the parties, each party or
the party's designee may alternately strike a name from the list.
The remaining person on the list shall be appointed as the
arbitrator. In this subsection, "business day" means a day other
than a Saturday, Sunday, or state or national holiday.
(c) The arbitrator shall:
(1) set a hearing to be held not later than the 10th
day after the date the arbitrator is appointed; and
(2) notify the parties to the arbitration in writing
of the time and place of the hearing not later than the eighth day
before the date of the hearing.
(d) The authority of the arbitrator is limited to issuing a
decision relating only to the establishment of the proper level of
services to be provided under the service plan.
(e) The arbitrator may:
(1) receive in evidence any documentary evidence or
other information the arbitrator considers relevant;
(2) administer oaths; and
(3) issue subpoenas to require:
(A) the attendance and testimony of witnesses;
and
(B) the production of books, records, and other
evidence relevant to an issue presented to the arbitrator for
determination.
(f) The arbitrator shall complete the hearing within one
day. The arbitrator, for good cause shown, may schedule an
additional hearing to be held not later than the seventh day after
the date of the first hearing. Unless otherwise agreed to by the
parties, the arbitrator must issue a decision in writing and
deliver a copy of the decision to the parties not later than the
14th day after the date of the final hearing.
(g) Either party may appeal any provision of an arbitrator's
decision that exceeds the authority granted under Subsection (d) to
a district court in a county in which the area proposed for
annexation is located.
(h) If the municipality does not agree with the terms of the
arbitrator's decision, the municipality may not annex the area
proposed for annexation before the fifth anniversary of the date of
the arbitrator's decision.
(i) The municipality shall pay the cost of arbitration.
Sec. 44.061. ARBITRATION REGARDING ENFORCEMENT OF SERVICE
PLAN. (a) A person who requests arbitration as provided by Section
44.056(l) must request the appointment of an arbitrator in writing
to the municipality.
(b) Sections 44.060(b), (c), and (f) apply to appointment of
an arbitrator and the conduct of an arbitration proceeding under
this section.
(c) In an arbitration proceeding under this section, the
municipality has the burden of proving that the municipality is in
compliance with the service plan requirements.
(d) If the arbitrator finds that the municipality has not
complied with the service plan requirements, the municipality may
disannex the area before the 31st day after the date the
municipality receives a copy of the arbitrator's decision. If the
municipality does not disannex the area, the arbitrator may:
(1) require the municipality to comply with the
service plan in question before a reasonable date specified by the
arbitrator;
(2) 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;
(3) require the municipality to pay the costs of
arbitration, including the reasonable attorney's fees and
arbitration costs of the person requesting arbitration; and
(4) provide other appropriate remedies.
(e) If the arbitrator finds that the municipality has
complied with the service plan requirements, the arbitrator may
require the person requesting arbitration to pay all or part of the
cost of arbitration, including the reasonable attorney's fees of
the municipality.
Sec. 44.062. ANNEXATION THAT SURROUNDS AREA: FINDINGS
REQUIRED. Section 43.057 applies to the annexation of an area by
the municipality.
Sections 44.063-44.070 reserved for expansion
SUBCHAPTER D. ANNEXATION PROCEDURE FOR AREAS EXEMPTED FROM
MUNICIPAL ANNEXATION PLAN
Sec. 44.071. APPLICABILITY. This subchapter applies to an
area proposed for annexation that is not required to be included in
a municipal annexation plan under Section 44.052.
Sec. 44.072. PROCEDURES APPLICABLE. Sections 44.051, 44.054,
44.055, 44.056, 44.057, and 44.062 apply to the annexation of an
area to which this subchapter applies.
Sec. 44.073. ANNEXATION HEARING REQUIREMENTS. (a) Section
43.063 applies to the annexation of an area to which this
subchapter applies.
(b) For purposes of Section 43.063(b), if a suitable site is
not reasonably available in the area proposed for annexation, the
hearing may be held outside the area proposed for annexation if the
hearing is held in the nearest suitable public facility.
Sec. 44.074. PERIOD FOR COMPLETION OF ANNEXATION; EFFECTIVE
DATE. (a) Section 43.064 applies to the annexation of an area to
which this subchapter applies.
(b) Notwithstanding any provision of a municipal charter to
the contrary, a municipality may provide that an annexation take
effect on any date within 90 days after the date of the adoption of
the ordinance providing for the annexation.
Sec. 44.075. PROVISION OF SERVICES TO ANNEXED AREA. (a)
Before the publication of the notice of the first hearing required
under Section 44.073, the governing body of the municipality
proposing the annexation shall direct its planning department or
other appropriate municipal department to prepare a service plan
that provides for the extension of full municipal services to the
area to be annexed. The municipality shall provide the services by
any of the methods by which it extends the services to any other
area of the municipality.
(b) Section 44.056, except Subsection (a) of that section,
applies to the annexation of an area to which this subchapter
applies.
Sections 44.076-44.090 reserved for expansion
SUBCHAPTER E. ANNEXATION PROVISIONS RELATING TO SPECIAL
DISTRICTS
Sec. 44.091. PROVISIONS APPLICABLE. (a) Sections 43.071,
43.072, 43.073, 43.074, 43.075, 43.076, 43.0761, 43.079, 43.080,
and 43.081 apply to the annexation of an area by a municipality
subject to this chapter.
(b) For purposes of this section, the reference to Section
43.054 in Section 43.072(d) means Section 44.054.
Sec. 44.092. STRATEGIC PARTNERSHIPS FOR CONTINUATION OF
CERTAIN DISTRICTS. (a) In this section:
(1) "District" has the meaning assigned by Section
44.052(a).
(2) "Strategic partnership agreement" means a written
agreement between a municipality and a district that provides terms
and conditions under which services will be provided and funded by
the parties to the agreement and under which the district will
continue to exist for an extended period of time if the land within
the district is annexed for limited purposes by the municipality.
(b) The governing bodies of a municipality, on written
request from a district included in the municipality's annexation
plan under Section 44.052 shall negotiate and enter into a written
strategic partnership agreement with the district.
(c) A strategic partnership agreement is not effective until
adopted by the governing bodies of the municipality and the
district. The agreement shall be recorded in the deed records of
each county in which the land included within the district is
located and shall bind each owner and each future owner of land
included within the district's boundaries on the date the agreement
becomes effective.
(d) Before the governing body of a municipality or a
district adopts a strategic partnership agreement, it shall conduct
two public hearings at which members of the public who wish to
present testimony or evidence regarding the proposed agreement
shall be given the opportunity to do so. Notice of public hearings
conducted by the governing body of a municipality under this
subsection shall be published in a newspaper of general circulation
in the municipality and in the district. The notice may not be
smaller than one-quarter page of a standard-size or tabloid-size
newspaper and the headline on the notice must be in 18-point or
larger type. The notice must be published at least once on or
after the 20th day before each hearing date. Notice of public
hearings conducted by the governing body of a district under this
subsection shall be given in accordance with the district's
notification procedures for other matters of public importance.
Any notice of a public hearing conducted under this subsection
shall contain a statement of the purpose of the hearing, the date,
time, and place of the hearing, and the location where copies of
the proposed agreement may be obtained prior to the hearing. The
governing bodies of a municipality and a district may conduct joint
public hearings under this subsection, provided that at least one
public hearing is conducted within the district. A municipality
may combine the public hearings and notices required by this
subsection with the public hearings and notices required by Section
43.124.
(e) The governing body of a municipality may not annex a
district for limited purposes under this section or under the
provisions of Subchapter F until it has adopted a strategic
partnership agreement with the district. The governing body of a
municipality may not adopt a strategic partnership agreement before
the agreement has been adopted by the governing body of the
affected district.
(f) A strategic partnership agreement may provide for the
following:
(1) limited-purpose annexation of the district under
the provisions of Subchapter F provided that the district shall
continue in existence during the period of limited-purpose
annexation;
(2) payments by the municipality to the district for
services provided by the district;
(3) payments by the district to the municipality for
services provided by the municipality;
(4) agreements existing between districts and
governmental bodies and private providers of municipal services in
existence on the date a municipality evidences its intention by
adopting a resolution to negotiate for a strategic partnership
agreement with the district shall be continued and provision made
for modifications to such existing agreements; and
(5) such other lawful terms that the parties consider
appropriate.
(g) Except as limited by this section or the terms of a
strategic partnership agreement, a district or a part of a district
that has been annexed for limited purposes by a municipality and a
limited district shall have and may exercise all functions, powers,
and authority otherwise vested in a district.
(h) A municipality that has annexed a district for limited
purposes under this section may impose a retail sales tax within
the boundaries of the district.
(i) An agreement or a decision made under this section and
an action taken under the agreement by the parties to the agreement
are not subject to approval or an appeal brought under the Water
Code unless it is an appeal of a utility rate charged by a
municipality to customers outside the corporate boundaries of the
municipality.
(j) An agreement under this section:
(1) may not require the district to provide revenue to
the municipality solely for the purpose of obtaining an agreement
with the municipality to forgo annexation of the district; and
(2) must provide benefits to each party, including
revenue, services, and regulatory benefits, that must be reasonable
and equitable with regard to the benefits provided by the other
party.
Sec. 44.093. ARBITRATION OF STRATEGIC PARTNERSHIP AGREEMENT.
(a) If the municipality and the district cannot reach an agreement
on the terms of a strategic partnership agreement under Section
44.092, either party may request the appointment of an arbitrator
to resolve the issues in dispute. The request must be made in
writing to the other party before the 90th day after the date the
district submits its written request for negotiations under Section
44.092(b). The municipality may not annex the district under
another section of this chapter during the pendency of the
arbitration proceeding or an appeal from the arbitrator's decision.
(b) Sections 44.060(b), (c), (e), (f), (g), and (h) apply to
appointment of an arbitrator and the conduct of an arbitration
proceeding under this section.
(c) The authority of the arbitrator is limited to
determining whether the offer of a party complies with Section
44.092(j).
(d) If the arbitrator finds that an offer complies with
Section 44.092(j), the arbitrator may issue a decision that
incorporates the offer as part of the strategic partnership
agreement.
Sections 44.094-44.120 reserved for expansion
SUBCHAPTER F. LIMITED PURPOSE ANNEXATION
Sec. 44.121. LIMITED PURPOSE ANNEXATION PROVISIONS
APPLICABLE. Subchapter F, Chapter 43, applies to the annexation of
an area by the municipality.
Sections 44.122-44.140 reserved for expansion
SUBCHAPTER G. DISANNEXATION
Sec. 44.141. DISSANNEXATION PROVISIONS APPLICABLE. (a)
Sections 43.141, 43.142, 43.145, 43.146, and 43.147 apply to the
annexation of an area by the municipality.
(b) For purposes of this section:
(1) the reference to Section 43.056 in Section
43.141(a) means Section 44.056 or 44.075, as applicable; and
(2) the reference to Section 43.054 in Section
43.147(a) means Section 44.054.
Sections 44.142-44.900 reserved for expansion
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
Sec. 44.901. MISCELLANEOUS PROVISIONS APPLICABLE. (a)
Sections 43.901, 43.903, 43.904, and 43.905 apply to the annexation
of an area by the municipality.
(b) For purposes of this section, the reference to Section
43.0561 or 43.063 in Section 43.905(a) means Section 44.058 or
44.073, as applicable.
(11) Strike SECTION 15 of the bill (Committee Printing page
12, lines 61-69 and page 13, lines 1-45) and substitute new
SECTIONS to the bill to be numbered appropriately to read as
follows:
SECTION ____. This Act takes effect September 1, 1999, except
that the section of this Act that adds Section 5.011, Property
Code, takes effect January 1, 2000.
SECTION ____. (a) Each municipality subject to Chapter 43,
Local Government Code, as amended by this Act, shall adopt an
annexation plan as required by Section 43.052, Local Government
Code, as amended by this Act, on or before December 31, 1999, that
becomes effective December 31, 1999.
(b) Except as provided by Subsection (c) of this section,
the changes in law made by this Act to Subchapters A, C, D, F, and
G, Chapter 43, Local Government Code, apply only to an annexation
included in a municipality's annexation plan prepared under Section
43.052, Local Government Code, as amended by this Act. Except as
provided by Subsection (c) of this section, a municipality may
continue to annex any area during the period beginning December 31,
1999, and ending December 31, 2002, under Chapter 43, Local
Government Code, as it existed immediately before September 1,
1999, if the area is not included in the annexation plan, and the
former law is continued in effect for that purpose.
(c) The changes in law made by this Act by amending or
adding Sections 43.003, 43.0545, 43.056(b), (e), (f), (g), (k),
(l), and (m), 43.121(a), 43.141(c), 43.148, and 43.905, Local
Government Code, 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 hearing notice required by Section 43.052, Local Government
Code, as it existed immediately before September 1, 1999, is
published on or after that date.
(d) The changes in law made by this Act by amending or
adding Sections 43.003, 43.0545, 43.056(b), (e), (f), (g), (k),
(l), and (m), 43.121(a), 43.141(c), 43.148, and 43.905, Local
Government Code, apply only 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 added 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.
SECTION ____. (a) Each municipality subject to Chapter 44,
Local Government Code, as added by this Act, shall adopt an
annexation plan as required by Section 44.052, Local Government
Code, as added by this Act, on or before December 31, 1999, that
becomes effective December 31, 1999.
(b) Except as provided by Subsection (c) of this section,
the changes in law made by this Act by adding Sections 44.002,
44.052, 44.053, 44.056, 44.058, 44.059, 44.060, and 44.061, Local
Government Code, apply only to an annexation included in a
municipality's annexation plan prepared under Section 44.052, Local
Government Code, as added by this Act. Except as provided by
Subsection (c) of this section, a municipality may continue to
annex any area during the period beginning December 31, 1999, and
ending December 31, 2002, under Chapter 43, Local Government Code,
as it existed immediately before September 1, 1999, if the area is
not included in the annexation plan, and the former law is
continued in effect for that purpose.
(c) The changes in law made by this Act by amending or
adding Sections 43.121(a), 43.141(c), 43.905, 44.002, 44.056(b),
(e), (f), (g), (l), and (m), and 44.061, Local Government Code,
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 hearing notice
required by Section 43.052, Local Government Code, as it existed
immediately before September 1, 1999, is published on or after that
date.
(d) The changes in law made by this Act by amending or
adding Sections 43.121(a), 43.141(c), 43.905, 44.002, 44.056(b),
(e), (f), (g), (l), and (m), and 44.061, Local Government Code, as
added or amended by this Act, apply only to the annexation of an
area that is not required to be included in a municipal annexation
plan under Section 44.052, Local Government Code, as added by this
Act, if the first hearing notice required by Section 44.073, Local
Government Code, as added by this Act, is published on or after
September 1, 1999.
SECTION ____. The change in law made by this Act by adding
Section 42.0225, Local Government Code, applies only to:
(1) an annexation included in a municipality's
annexation plan prepared under Section 43.052 or Section 44.052,
Local Government Code, as amended or added by this Act; and
(2) an 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
hearing notice required by Section 43.052, Local Government Code,
as it existed immediately before September 1, 1999, is published on
or after that date.
SECTION ____. The change in law made by this Act by adding
Section 5.011, Property Code, applies only to a transfer of
property that occurs on or after January 1, 2000. For purposes of
this section, a transfer of property occurs before January 1, 2000,
if the executory contract binding the purchaser to purchase the
property is executed before that date. Property transferred before
January 1, 2000, is covered by the law in effect when the property
was transferred, and the former law is continued in effect for that
purpose.
(12) Renumber the sections of the bill appropriately.