By Hilbert H.B. No. 1469
76R5808 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, 2001.
1-9 (b) This section expires September 1, 2001.
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, 2000, 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, 2001.
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 Section 43.0541 to read as follows:
4-7 Sec. 43.0541. ANNEXATIONS BY MUNICIPALITY WITH POPULATION OF
4-8 MORE THAN 250,000. (a) A municipality with a population of more
4-9 than 250,000 may not annex a strip of area following the course of
4-10 a road, highway, river, stream, creek, or other natural or
4-11 constructed feature if the commissioners court of the county in
4-12 which a majority of the area is located, by resolution, finds that
4-13 the area:
4-14 (1) is composed primarily of commercial property or
4-15 property with a high taxable value;
4-16 (2) is part of a larger area in which a sense of
4-17 community exists among a significant number of the residents and
4-18 landowners; and
4-19 (3) does not include all parts of the larger area in
4-20 which the sense of community exists.
4-21 (b) To prevent the annexation, the commissioners court must
4-22 adopt the resolution before the completion of the annexation by the
4-23 municipality.
4-24 (c) Each finding by a commissioners court under this section
4-25 shall be reviewed by an annexation review committee consisting of:
4-26 (1) the county judge;
4-27 (2) a county commissioner designated by the
5-1 commissioners court;
5-2 (3) a member of the governing body of the municipality
5-3 designated by that governing body;
5-4 (4) a person appointed by the state representative
5-5 whose district includes the majority of the area proposed for
5-6 annexation; and
5-7 (5) a person appointed by the state senator whose
5-8 district includes the majority of the area proposed for annexation.
5-9 (d) The designations and appointments to the committee shall
5-10 be made not later than the 14th day after the date of the adoption
5-11 of the commissioners court resolution.
5-12 (e) The county judge is the presiding officer of the
5-13 committee. The committee shall meet at the call of the presiding
5-14 officer at a place convenient to the majority of the area proposed
5-15 for annexation.
5-16 (f) The committee may affirm or reverse the finding of the
5-17 commissioners court. The committee must issue its decision not
5-18 later than the 60th day after the date of the adoption of the
5-19 commissioners court resolution. The decision of the committee may
5-20 be appealed to a district court serving the county in which a
5-21 majority of the area proposed for annexation is located. The
5-22 district court may not substitute its judgment for that of the
5-23 commissioners court or the annexation review committee unless the
5-24 decision by the commissioners court or the committee was arbitrary,
5-25 capricious, unlawful, or not supported by substantial evidence.
5-26 (g) If the finding of the commissioners court is reversed by
5-27 the annexation review committee or by a court, the time during
6-1 which the municipality was prevented from annexing the area as a
6-2 result of the commissioners court resolution is not included in
6-3 computing the period within which the municipality must complete
6-4 the annexation under Section 43.053.
6-5 SECTION 4. Subchapter C, Chapter 43, Local Government Code,
6-6 is amended by adding Section 43.0562 to read as follows:
6-7 Sec. 43.0562. FAILURE OF MUNICIPALITY TO PROVIDE WATER OR
6-8 SEWER SERVICES. (a) If a municipality fails to provide water or
6-9 sewer services to an annexed area before the 10th anniversary of
6-10 the date of the annexation, a municipal ordinance or other
6-11 municipal regulation has no effect in the annexed area until the
6-12 municipality provides water or sewer services to the annexed area.
6-13 (b) Subsection (a) does not permit a municipality to
6-14 discontinue providing any other municipal service to the annexed
6-15 area.
6-16 SECTION 5. Subchapter C, Chapter 43, Local Government Code,
6-17 is amended by adding Section 43.0563 to read as follows:
6-18 Sec. 43.0563. SERVICE PLAN FOR CERTAIN WATER DISTRICT
6-19 ANNEXATION. (a) This section applies only to a municipality with
6-20 a population of 225,000 or more that proposes to annex an area that
6-21 includes, in whole or in part, any area in the boundaries of a
6-22 municipal utility district or a water district regulated,
6-23 established, or operating under Title 4, Water Code.
6-24 (b) In addition to any requirements of Section 43.056, a
6-25 municipality shall, before it begins an annexation under this
6-26 chapter, comply with the requirements of this section.
6-27 (c) Before the 90th day before the date of an annexation and
7-1 before the publication of the notice of the first hearing required
7-2 under Section 43.052, the governing body of a municipality shall
7-3 publish a service plan that provides for the extension of full
7-4 municipal services to an annexed area.
7-5 (d) In developing the service plan, the municipality must
7-6 negotiate the terms of the plan with the governing board of a
7-7 municipal utility district or water district located in the area
7-8 proposed to be annexed. If the municipality and the governing
7-9 board of the district cannot reach agreement on any portion of a
7-10 service plan, the issue shall be submitted for arbitration under
7-11 Chapter 171, Civil Practice and Remedies Code.
7-12 (e) The service plan must provide that every municipal
7-13 service described in the plan for the area to be annexed be
7-14 provided in a manner that ensures the services are equal to or
7-15 better than the services provided to the area immediately before
7-16 annexation. An annexation may not occur if any service proposed in
7-17 the plan is less than the service provided immediately before the
7-18 annexation. The service must also be provided to each portion of
7-19 the area to be annexed in the exact way that the service is
7-20 provided to any other portion of the area to be annexed.
7-21 (f) In addition to the requirements for a service plan under
7-22 Section 43.056, a service plan under this chapter must include:
7-23 (1) a description of the emergency medical services to
7-24 be provided to the area that includes a description of:
7-25 (A) service delivery times, including dispatch
7-26 and response times;
7-27 (B) equipment and supplies, including types of
8-1 ambulance units, types of medical equipment with which units are
8-2 equipped, and the ability of emergency services providers to use
8-3 the equipment and supplies;
8-4 (C) staffing and qualifications of emergency
8-5 medical service workers;
8-6 (D) communications provided to units in the
8-7 area, including the use of 911 systems or other emergency
8-8 communication systems;
8-9 (E) mutual aid agreements the municipality
8-10 entered;
8-11 (F) any special apparatus or services, including
8-12 emergency education training; and
8-13 (G) other detailed direct comparisons between
8-14 any aspect of emergency medical services and the services proposed
8-15 to be provided by the municipality; and
8-16 (2) a description of the fire protection services to
8-17 be provided to the area that includes a description of:
8-18 (A) service delivery times, including average
8-19 dispatch and average response times;
8-20 (B) the types of fire protection equipment and
8-21 capabilities, including whether the equipment meets industry
8-22 standards at the time of the annexation, is capable of comparable
8-23 or multiple functions, and is capable of stand-alone operations and
8-24 whether any reserve equipment is in fact operational;
8-25 (C) the organization and staffing of fire
8-26 protection units in the area, including whether the organization is
8-27 capable of addressing the immediate needs of the area, whether
9-1 sufficient well-trained personnel exist, and the certification and
9-2 training levels of the personnel;
9-3 (D) the cost of providing the fire protection
9-4 services;
9-5 (E) any mutual aid agreements the municipality
9-6 has made or will make;
9-7 (F) any special apparatus or services, including
9-8 hazardous materials units or vehicles, water, technical, or
9-9 vehicular rescue units or training, and emergency education
9-10 training; and
9-11 (G) other detailed direct comparisons between
9-12 any aspect of fire protection services in the area immediately
9-13 before annexation and the services proposed to be provided by the
9-14 municipality.
9-15 (g) In determining whether municipal service providers
9-16 provide service equal to or better than that provided by a
9-17 voluntary provider, a voluntary provider is considered equal to a
9-18 municipal service provider if the voluntary provider is trained or
9-19 certified under state law and has complied with any continuing
9-20 education requirements.
9-21 (h) In determining whether service delivery or response
9-22 times are equal to or better than services immediately before
9-23 annexation, the service plan shall use the service delivery or
9-24 response times of the emergency medical or fire protection
9-25 organization operating in the area.
9-26 (i) A fire protection or emergency service mutual aid
9-27 agreement that existed before the date of the service plan shall be
10-1 continued under the service plan for a period of not less than 10
10-2 years.
10-3 (j) If a municipality enters into an agreement with any
10-4 party to provide services under the plan required by this section,
10-5 the municipality shall provide the party with compatible
10-6 communication equipment that allows the party to communicate, in
10-7 any manner the party determines is necessary, directly with the
10-8 municipality's service provider.
10-9 (k) The service plan shall allow a resident of the area
10-10 proposed to be annexed to vote in any election. If a municipality
10-11 holds an election and the residents of an annexed area are not
10-12 allowed to vote in the election, the results of the election are
10-13 void. This subsection does not apply to:
10-14 (1) an election on the question of the creation of a
10-15 municipal special district or authority in which no part of the
10-16 area annexed is part of the proposed special district or authority
10-17 and the creation of which would not create any liability for which
10-18 a resident of the annexed area would be requested to pay in any
10-19 way, including through the payment of any municipal tax;
10-20 (2) a local option election conducted under Chapter
10-21 251, Alcoholic Beverage Code, in which no part of the area annexed
10-22 is part of the area affected by the election; or
10-23 (3) an election for a single-member district of the
10-24 municipality, in which no part of the area annexed is part of the
10-25 area within the district.
10-26 (l) A municipality shall hold three or more public hearings
10-27 at which persons interested in the service plan are given an
11-1 opportunity to be heard. Each hearing shall be separated by 30 or
11-2 more days from the date of a previous hearing. The hearing shall be
11-3 held between 7 p.m. and 9 p.m. at a site designated by the
11-4 municipal utility districts in the area proposed for annexation.
11-5 (m) A hearing conducted under this section shall be
11-6 conducted by a visiting state judge and a written record of the
11-7 proceedings shall be maintained.
11-8 (n) Not later than the 30th day after the date of the last
11-9 hearing, the municipality and a municipal utility district shall
11-10 agree on an independent third party to review the service plan to
11-11 determine if the plan meets the requirements of this section. If
11-12 the third party determines that the service plan does not meet the
11-13 requirements, the service plan is void and the municipality shall
11-14 develop a new service plan under this section.
11-15 (o) If the municipality, in annexing an area, either renders
11-16 useless for its primary function an emergency service provider's or
11-17 fire protection provider's land, buildings, or equipment in the
11-18 area to be annexed or in an adjacent area, or, using eminent domain
11-19 powers, condemns a provider's land or buildings, the municipality
11-20 shall pay to the provider, not later than the 30th day before the
11-21 date of the annexation, the value of the land, building, or
11-22 equipment that is determined by the average of three independent
11-23 appraisals. The municipality shall pay the cost of the appraisals.
11-24 A service plan adopted under this section shall list any land,
11-25 buildings, or equipment affected and shall allow providers to add
11-26 additional affected property to the list.
11-27 SECTION 6. Sections 43.0751(b), (d), (e), and (f), Local
12-1 Government Code, are amended to read as follows:
12-2 (b) The governing bodies of a municipality with a population
12-3 of 225,000 or more and a district shall negotiate and shall [may]
12-4 enter into a written strategic partnership agreement for the
12-5 district having a term of five or more years. The governing body
12-6 of a municipality must make a written determination of the need
12-7 for full purpose annexation and must have entered into a strategic
12-8 partnership agreement with a district for 10 or more years before
12-9 the date the municipality annexes any portion of the district for
12-10 full purposes. The governing bodies of the municipality and the
12-11 district shall evidence their intention to negotiate such an
12-12 agreement by resolution, each of which resolutions shall specify an
12-13 expiration date if the other governing body fails to adopt a
12-14 resolution under this section on or before the specified date. The
12-15 governing body of a municipality that has evidenced its intention
12-16 by unexpired resolution to enter into negotiations with a district
12-17 for an agreement under this section may not initiate proceedings to
12-18 annex the district under any other section of this code prior to
12-19 the expiration of five [two] years after the adoption date of the
12-20 resolution unless the municipality has previously instituted
12-21 annexation proceedings in granting consent to the creation of the
12-22 district prior to January 1, 1995.
12-23 (d) Before the governing body of a municipality or a
12-24 district adopts a strategic partnership agreement, it shall conduct
12-25 three [two] public hearings at which members of the public who wish
12-26 to present testimony or evidence regarding the proposed agreement
12-27 shall be given the opportunity to do so. The hearings shall be
13-1 conducted by a visiting state judge jointly selected by the
13-2 municipality and the district. Notice of public hearings conducted
13-3 by the governing body of a municipality under this subsection shall
13-4 be published in a newspaper of general circulation in the
13-5 municipality and in the district. The notice must be in the format
13-6 prescribed by Section 43.123(b) and must be published at least once
13-7 on or after the 20th day before each date. Notice of public
13-8 hearings conducted by the governing body of a district under this
13-9 subsection shall be given in accordance with the district's
13-10 notification procedures for other matters of public importance.
13-11 Any notice of a public hearing conducted under this subsection
13-12 shall contain a statement of the purpose of the hearing, the date,
13-13 time, and place of the hearing, and the location where copies of
13-14 the proposed agreement may be obtained prior to the hearing. The
13-15 governing bodies of a municipality and a district may conduct joint
13-16 public hearings under this subsection, provided that at least one
13-17 public hearing is conducted within the district. A municipality
13-18 may combine the public hearings and notices required by this
13-19 subsection with the public hearings and notices required by Section
13-20 43.124.
13-21 (e) The governing body of a municipality may not annex a
13-22 district for full or limited purposes under this chapter [section
13-23 or under the provisions of Subchapter F] until it has adopted a
13-24 strategic partnership agreement with the district. The governing
13-25 body of a municipality may not adopt a strategic partnership
13-26 agreement before the agreement has been adopted by the governing
13-27 body of the affected district.
14-1 (f) A strategic partnership agreement may provide for the
14-2 following:
14-3 (1) limited-purpose annexation of the district under
14-4 the provisions of Subchapter F provided that the district shall
14-5 continue in existence during the period of limited-purpose
14-6 annexation;
14-7 (2) such amendments to the timing requirements of
14-8 Sections 43.123(d)(2) and 43.127(b) as may be necessary or
14-9 convenient to effectuate the purposes of the agreement;
14-10 (3) payments by the municipality to the district for
14-11 services provided by the district;
14-12 (4) annexation of any commercial property in a
14-13 district for full purposes by the municipality, notwithstanding any
14-14 other provision of this code or the Water Code, except for the
14-15 obligation of the municipality to provide, directly or through
14-16 agreement with other units of government, full provision of
14-17 municipal services to annexed territory, in lieu of any annexation
14-18 of residential property or payment of any fee on residential
14-19 property in lieu of annexation of residential property in the
14-20 district authorized by this subsection;
14-21 (5) a full-purpose annexation provision that specifies
14-22 one of the following:
14-23 (A) the date on which the land included within
14-24 the district's boundaries shall be converted from the
14-25 municipality's limited-purpose jurisdiction to its full-purpose
14-26 jurisdiction, provided that such date shall not be later than 10
14-27 years after the effective date of the strategic partnership
15-1 agreement; or
15-2 (B)(i) terms for payment of an annual fee to the
15-3 municipality by the district in lieu of full-purpose annexation,
15-4 the form in which each such payment must be tendered, a method of
15-5 calculating the fee, and the date by which each such payment must
15-6 be made; failure by a district to timely make an annual payment in
15-7 lieu of full-purpose annexation in the amount and form required by
15-8 a strategic partnership agreement shall be the only ground for
15-9 termination of the agreement with respect to annexation at the
15-10 option of the municipality;
15-11 (ii) to determine a reasonable fee to be
15-12 derived from residential property in a district, the municipality
15-13 or the district may request a cost-of-service study by an
15-14 independent third party agreeable to both parties if
15-15 cost-of-service data prepared by the municipality is not
15-16 acceptable. The municipality is [Both parties shall be equally]
15-17 responsible for the cost of the study, which shall include an
15-18 evaluation of the estimated annual cost of providing municipal
15-19 services to the residential portion of the district over the next
15-20 10 years and the estimated annual amount of ad valorem taxes from
15-21 residential property the city would receive on full-purpose
15-22 annexation of the district over the next 10 years. The governing
15-23 board of a district may contribute to the cost of any study. The
15-24 fee shall not exceed the estimated annual amount of residential ad
15-25 valorem taxes that would be derived by full-purpose annexation of
15-26 the district, less the estimated annual amount required to provide
15-27 municipal services to the residential property in the district if
16-1 annexed for full purposes. A fee determined through this
16-2 methodology is subject to renegotiation every 10 years at the
16-3 request of either party to the agreement, or every five years if
16-4 agreed to by all parties to the agreement, following the same
16-5 procedure used to set the fee in the original agreement. This
16-6 methodology does not apply to fees from commercial property;
16-7 (6) conversion of the district to a limited district
16-8 including some or all of the land included within the boundaries of
16-9 the district, which conversion shall be effective on the
16-10 full-purpose annexation conversion date established under
16-11 Subdivision (5)(A);
16-12 (7) agreements existing between districts and
16-13 governmental bodies and private providers of municipal services in
16-14 existence on the date a municipality evidences its intention by
16-15 adopting a resolution to negotiate for a strategic partnership
16-16 agreement with the district shall be continued and provision made
16-17 for modifications to such existing agreements; [and]
16-18 (8) such other lawful terms that the parties consider
16-19 appropriate; and
16-20 (9) the addition of other political subdivisions to
16-21 the agreement to allow the provision of the highest quality of
16-22 services at the lowest fee to residents of the district.
16-23 SECTION 7. Chapter 43, Local Government Code, is amended by
16-24 adding Subchapter I to read as follows:
16-25 SUBCHAPTER I. ANNEXATION PLANNING
16-26 Sec. 43.301. APPLICATION. This chapter applies only to a
16-27 municipality with a population of 225,000 or more.
17-1 Sec. 43.302. RESTRICTIONS ON ANNEXATION OR REGULATION. A
17-2 municipality may not annex or regulate any area under this chapter
17-3 unless the annexation or regulation conforms to an annexation plan
17-4 adopted under this subchapter.
17-5 Sec. 43.303. ANNEXATION PLAN. (a) A municipality shall
17-6 prepare an annexation plan that describes any proposed annexations
17-7 or regulations in the municipality's extraterritorial jurisdiction
17-8 for a 10-year period following the publication of the plan. A
17-9 municipality may modify the plan annually.
17-10 (b) The plan adopted by the municipality must ensure that
17-11 the annexation or regulation of an area occur in a manner that:
17-12 (1) is orderly;
17-13 (2) treats all areas in the municipality's
17-14 extraterritorial jurisdiction in the same manner;
17-15 (3) provides all necessary or requested information to
17-16 residents of the area to be annexed or regulated in a timely
17-17 manner;
17-18 (4) is fiscally responsible to residents of the
17-19 municipality and the area to be annexed or regulated;
17-20 (5) requires the municipality to cooperate with the
17-21 residents of the area and any other political subdivision located,
17-22 in whole or in part, in the area; and
17-23 (6) follows a logical and progressive manner.
17-24 Sec. 43.304. CONTENTS OF PLAN. (a) The plan shall:
17-25 (1) describe the municipality's method of determining
17-26 the areas in the municipality's extraterritorial jurisdiction that
17-27 will be annexed or regulated in the five years following the date
18-1 the plan is prepared; and
18-2 (2) indicate whether residents of the affected area
18-3 may vote in any municipal election or participate in municipal
18-4 government.
18-5 (b) A plan may not propose to annex or regulate an area in
18-6 the extraterritorial jurisdiction of the municipality if the area
18-7 is not directly adjacent to the boundaries of the municipality. An
18-8 area is not directly adjacent to the boundaries of a municipality
18-9 if the area is adjacent to the boundaries of the municipality by a
18-10 strip of area in the municipality that follows the course of a
18-11 road, highway, river, stream, or creek, and that has a width of
18-12 less than 1,000 feet at any point in the strip of area.
18-13 Sec. 43.305. ECONOMIC IMPACT STUDY. (a) A municipality
18-14 shall conduct an economic impact study before annexing an area.
18-15 (b) The study shall:
18-16 (1) measure the economic impact on the municipality
18-17 and the area proposed to be annexed; and
18-18 (2) follow procedures similar to those adopted by
18-19 state agencies in conducting an economic impact analysis.
18-20 (c) The study shall be conducted by an independent entity
18-21 selected by the municipality and an entity representing the
18-22 interests of the area proposed to be annexed. If a municipal
18-23 utility district or other special district exists in the area, the
18-24 district shall be the representative entity.
18-25 Sec. 43.306. SERVICE PLAN REQUIREMENTS. Before annexing any
18-26 area, the municipality shall contact the existing service providers
18-27 in the area proposed for annexation and develop any service plan
19-1 required under Section 43.056.
19-2 Sec. 43.307. REPORT REGARDING PLANNING STUDY AND REGULATORY
19-3 PLAN. (a) Before the 10th day before the date the first hearing
19-4 required by Section 43.052 is held, the municipality must prepare a
19-5 report regarding the proposed annexation of an area and make the
19-6 report available to the public. The report must contain the
19-7 results of the planning study conducted for the area in accordance
19-8 with Subsection (c) and must contain the regulatory plan prepared
19-9 for the area in accordance with Subsection (d).
19-10 (b) Notice of the availability of the report shall be
19-11 published at least twice in a newspaper of general circulation in
19-12 the area proposed to be annexed. The notice may not be smaller
19-13 than one-quarter page of a standard-size or tabloid-size newspaper,
19-14 and the headline on the notice must be in 18-point or larger type.
19-15 (c) The planning study must:
19-16 (1) project the kinds and levels of development that
19-17 will occur in the area in the next 10 years;
19-18 (2) describe the issues the municipality considers to
19-19 give rise to the need for the annexation of the area and the public
19-20 benefits to result from the annexation;
19-21 (3) analyze the economic, environmental, and other
19-22 impacts the annexation of the area will have on the residents,
19-23 landowners, and businesses in the area; and
19-24 (4) identify the proposed zoning of the area and
19-25 inform the public that any comments regarding the proposed zoning
19-26 will be considered at the public hearings for the proposed
19-27 annexation.
20-1 (d) The regulatory plan must identify the kinds of land use
20-2 and other regulations that will be imposed in the area.
20-3 SECTION 8. Chapter 43, Local Government Code, is amended by
20-4 adding Subchapter J to read as follows:
20-5 SUBCHAPTER J. ANNEXATION OVERSIGHT COMMITTEE
20-6 Sec. 43.321. APPLICABILITY. This subchapter applies only to
20-7 an annexation:
20-8 (1) by a municipality with a population of 225,000 or
20-9 more; and
20-10 (2) of an area that contains any portion of a
20-11 municipal utility district.
20-12 Sec. 43.322. ESTABLISHMENT OF ANNEXATION OVERSIGHT
20-13 COMMITTEE. (a) An annexation oversight committee shall be
20-14 established for each area annexed by a municipality under this
20-15 chapter.
20-16 (b) The committee shall be composed of five members.
20-17 (c) Two members of the committee must be members of the
20-18 governing body of any municipal utility district located in the
20-19 extraterritorial jurisdiction of the most populous municipality in
20-20 the state that has a population less than the population of the
20-21 annexing municipality. The county judge of the county in which a
20-22 majority of the district is located shall appoint the members.
20-23 (d) Two members of the committee must be members of the
20-24 governing body of the next two most populous municipalities in the
20-25 state that have a population less than the population of the
20-26 annexing municipality. Each of the two municipal governing bodies
20-27 shall appoint one member.
21-1 (e) The presiding officer of the committee must be a
21-2 visiting judge jointly appointed by the governing body of the
21-3 annexing municipality and the governing bodies of all the municipal
21-4 utility districts located in whole or in part in the annexed area.
21-5 (f) If a person who is required to appoint a member of the
21-6 committee has not appointed the member before the 45th day after
21-7 the date of the annexation, the member shall be jointly appointed
21-8 by the annexing municipality and the municipal utility districts.
21-9 (g) The terms of the office of the committee members expire
21-10 immediately following the committee's final determination under
21-11 Section 43.328 unless committee members are required to serve as an
21-12 arbitration panel under Section 43.329.
21-13 Sec. 43.323. MEETINGS. The committee may meet after the
21-14 90th day following the effective date of the annexation and must
21-15 meet before the 270th day following the effective date of the
21-16 annexation.
21-17 Sec. 43.324. PER DIEM; REIMBURSEMENT; COSTS. The annexing
21-18 municipality shall:
21-19 (1) pay each member of the committee a $25 per diem
21-20 for each day the member engages in the business of the committee;
21-21 (2) reimburse the actual expenses of each member of
21-22 the committee; and
21-23 (3) pay the costs of the operation of the committee.
21-24 Sec. 43.325. AUTHORITY TO REVIEW SERVICE PLAN AND
21-25 INVESTIGATE COMPLAINTS. (a) The committee shall review the
21-26 municipality's compliance with any service plan for the annexed
21-27 area adopted under this chapter.
22-1 (b) The committee shall establish:
22-2 (1) procedures to allow persons in the annexed area to
22-3 bring complaints to the committee for investigation; and
22-4 (2) rules for the investigation and resolution of the
22-5 complaints.
22-6 Sec. 43.326. AUTHORITY TO IMPOSE FINE. (a) If a majority
22-7 of the committee determines that the municipality has failed to
22-8 provide a service required under a service plan, the committee may
22-9 issue a warning to the municipality to comply with the service plan
22-10 within 10 days after the date the warning is issued.
22-11 (b) If the municipality does not remedy the noncompliance
22-12 with the service plan within the 10-day period, a majority of the
22-13 committee may fine the municipality not more than $500 for each day
22-14 of a violation.
22-15 (c) If the fine is not paid within seven business days after
22-16 the date it is imposed, the committee shall impose a fee of $200 on
22-17 the municipality for each day the payment is late. In this
22-18 subsection, "business day" means a day other than a Saturday,
22-19 Sunday, or holiday recognized by this state.
22-20 (d) A fine or late fee paid by the municipality under this
22-21 section shall be equally distributed to each homeowners association
22-22 whose boundaries are wholly or partly in the annexed area.
22-23 (e) The municipality may appeal a fine to the district court
22-24 of the county in which the majority of the municipality is located.
22-25 The court shall review the imposition of the fine under a
22-26 substantial evidence rule.
22-27 Sec. 43.327. AUTHORITY TO RESOLVE CERTAIN DISPUTES. (a)
23-1 The committee may resolve any disputes between the municipality and
23-2 any service provider with which the municipality has contracted
23-3 under the service plan.
23-4 (b) The committee may act as an arbitration panel, if
23-5 requested by any party, of a commercial matter required to be
23-6 resolved as a result of an annexation.
23-7 Sec. 43.328. FINAL DETERMINATION REGARDING SERVICE PLAN
23-8 COMPLIANCE. (a) On the 270th day after the effective date of the
23-9 annexation, the committee shall make a final determination stating
23-10 whether the municipality is in compliance with the service plans
23-11 adopted under this chapter.
23-12 (b) If the committee determines that a municipality has not
23-13 provided services required under a service plan, the finding by the
23-14 committee is final against the municipality and the municipality
23-15 may not challenge the finding in any subsequent disannexation
23-16 proceeding.
23-17 (c) If the committee determines the municipality is in
23-18 compliance, the finding is not admissible in any subsequent
23-19 disannexation proceeding and is not binding on any party.
23-20 Sec. 43.329. DISANNEXATION. (a) If disannexation occurs,
23-21 the committee shall act as an arbitration panel to determine the
23-22 apportionment of any asset, debt, bond, or other financial
23-23 instrument between the municipality and any other political
23-24 subdivision.
23-25 (b) If the committee makes a determination under this
23-26 subsection, the provisions of this chapter relating to restrictions
23-27 on the release of an annexed area from a municipality's taxing
24-1 authority do not apply.
24-2 SECTION 9. Before November 1, 1999, the lieutenant governor,
24-3 the speaker of the house, and the county judges shall appoint
24-4 members to the Study Commission on Municipal Annexation as provided
24-5 by Section 43.0202, Local Government Code, as added by this Act.
24-6 SECTION 10. Section 43.0201, Local Government Code, as added
24-7 by this Act, applies to any action by a municipality to annex an
24-8 area, regardless of whether the annexation proceeding was initiated
24-9 before the effective date of this Act.
24-10 SECTION 11. The changes in law made by Sections 43.0215,
24-11 43.0541, and 43.0562 and by Subchapter J of Chapter 43, Local
24-12 Government Code, as added by this Act, apply only to an annexation
24-13 in process on or initiated after the effective date of this Act.
24-14 SECTION 12. A municipality shall adopt a plan under
24-15 Subchapter I, Chapter 43, Local Government Code, as added by this
24-16 Act, not later than January 1, 2000. A municipality may not annex
24-17 an area or impose a new regulation in an area until the
24-18 municipality has adopted a plan under this section.
24-19 SECTION 13. The importance of this legislation and the
24-20 crowded condition of the calendars in both houses create an
24-21 emergency and an imperative public necessity that the
24-22 constitutional rule requiring bills to be read on three several
24-23 days in each house be suspended, and this rule is hereby suspended,
24-24 and that this Act take effect and be in force from and after its
24-25 passage, and it is so enacted.