By Mowery                                             H.B. No. 2329
         76R7802 PAM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a revision of the procedures for municipal annexation.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 43.021, Local Government Code, is amended
 1-5     to read as follows:
 1-6           Sec. 43.021.  AUTHORITY OF [HOME-RULE] MUNICIPALITY TO ANNEX
 1-7     AREA AND TAKE OTHER ACTIONS REGARDING BOUNDARIES.  A  [home-rule]
 1-8     municipality may take the following actions according to rules as
 1-9     may be provided by the charter of the municipality and not
1-10     inconsistent with the procedural rules prescribed by this chapter:
1-11                 (1)  fix the boundaries of the municipality;
1-12                 (2)  extend the boundaries of the municipality and
1-13     annex area adjacent to the municipality; and
1-14                 (3)  exchange area with other municipalities.
1-15           SECTION 2.  Section 43.027, Local Government Code, is amended
1-16     to read as follows:
1-17           Sec. 43.027.  AUTHORITY OF [GENERAL-LAW] MUNICIPALITY TO
1-18     ANNEX NAVIGABLE STREAM.  The governing body of a [general-law]
1-19     municipality by ordinance may annex any navigable stream adjacent
1-20     to the municipality and within the municipality's extraterritorial
1-21     jurisdiction.
1-22           SECTION 3.  Section 43.029, Local Government Code, is amended
1-23     to read as follows:
1-24           Sec. 43.029.  AUTHORITY OF MUNICIPALITY [CERTAIN SMALL
 2-1     MUNICIPALITIES] TO ANNEX UNOCCUPIED AREA ON PETITION OF SCHOOL
 2-2     BOARD.  (a)  [This section applies only to a municipality with a
 2-3     population of:]
 2-4                 [(1)  900 to 920;]
 2-5                 [(2)  1,251 to 1,259; or]
 2-6                 [(3)  3,944 to 3,964.]
 2-7           [(b)]  This section applies only to the annexation of an area
 2-8     that is:
 2-9                 (1)  contiguous to the annexing municipality; and
2-10                 (2)  vacant and without residents.
2-11           (b) [(c)]  The board of trustees of a public school occupying
2-12     the area may petition the governing body of the municipality in
2-13     writing to annex the area.  Sections 43.028(c)-(f) apply to the
2-14     petition and annexation under this section in the same manner in
2-15     which they apply to the petition and annexation under that section.
2-16           SECTION 4.  Subchapter B, Chapter 43, Local Government Code,
2-17     is amended by adding Section 43.035 to read as follows:
2-18           Sec. 43.035.  AUTHORITY OF MUNICIPALITY TO ANNEX CERTAIN
2-19     COUNTY ROADS.  A municipality may annex a county road or
2-20     right-of-way only if:
2-21                 (1)  the county road or right-of-way includes only real
2-22     property that is exempt from ad valorem taxation;
2-23                 (2)  the entirety of the county road or right-of-way
2-24     proposed for annexation is contiguous to the annexing municipality;
2-25     and
2-26                 (3)  the municipality and the county in which the
2-27     county road or right-of-way proposed for annexation is located
 3-1     approve the proposed annexation after a public meeting of each
 3-2     governing body, provided that the proposed annexation is listed as
 3-3     an item in the published notice for each meeting.
 3-4           SECTION 5.  Subchapter C, Chapter 43, Local Government Code,
 3-5     is amended by amending Section 43.052 and adding Sections
 3-6     43.0521-43.0524 to read as follows:
 3-7           Sec. 43.052.  NOTICE OF INTENT TO ANNEX REQUIRED.  (a)  A
 3-8     municipality that proposes to annex an area under Section 43.0522
 3-9     shall file with the  county clerk, commissioners court, and county
3-10     tax assessor-collector of each county in which the area proposed
3-11     for annexation is located a written notice of intent to annex that
3-12     includes:
3-13                 (1)  a description of the area proposed for annexation
3-14     sufficient to identify the area; and
3-15                 (2)  a map of the area proposed for annexation.
3-16           (b)  The map must include each county road and right-of-way
3-17     that:
3-18                 (1)  is exempt from ad valorem taxation; and
3-19                 (2)  is within or contiguous to the boundaries of the
3-20     area proposed for annexation.
3-21           Sec. 43.0521.  ANNEXATION HEARING REQUIREMENTS.  (a)  On or
3-22     after the 20th day but before the 30th day after the date a
3-23     municipality files a notice of intent to annex under Section 43.052
3-24     [Before a municipality may institute annexation proceedings], the
3-25     governing body of the municipality must conduct the first of two
3-26     public hearings at which persons interested in the annexation are
3-27     given the opportunity to be heard.  The second public hearing
 4-1     [hearings] must be conducted on or after the 50th [40th] day but
 4-2     before the 60th [20th] day after [before] the date [of] the
 4-3     municipality files the notice of intent to annex under Section
 4-4     43.052 [institution of the proceedings].
 4-5           (b)  The [At least one of the] hearings must be held in the
 4-6     area proposed for annexation [if more than 20 adult residents of
 4-7     the area file a written protest of the annexation with the
 4-8     secretary of the municipality within 10 days after the date of the
 4-9     publication of the notice required by this section.  The protest
4-10     must state the name, address, and age of each protester who signs].
4-11           (c)  The municipality must provide the following notices of
4-12     the first public hearing on or before the 10th day before the date
4-13     of the hearing:
4-14                 (1)  [publish] notice by publication at least once [of
4-15     the hearings] in a newspaper of general circulation in the
4-16     municipality and in the area proposed for annexation;
4-17                 (2)  notice by posting in at least three conspicuous
4-18     public places in the area proposed for annexation;
4-19                 (3)  notice by first class mail sent to the county
4-20     judge of each county in which the area proposed for annexation is
4-21     located;
4-22                 (4)  notice, with the map described by Section 43.052
4-23     attached, by first class mail to each owner of real and personal
4-24     property located in the area proposed for annexation as indicated
4-25     by the appraisal records furnished by the appraisal district for
4-26     each county in which the area proposed for annexation is located,
4-27     if the owner's property would be subject to taxation by the
 5-1     municipality after annexation; and
 5-2                 (5)  [.  The notice for each hearing must be published
 5-3     at least once on or after the 20th day but before the 10th day
 5-4     before the date of the hearing.  The municipality must give
 5-5     additional] notice by certified mail to each railroad company that
 5-6     serves the municipality and is on the municipality's tax roll if
 5-7     the company's right-of-way is in the area proposed for annexation.
 5-8           (d)  The municipality must publish notice of the second
 5-9     public hearing in a newspaper of general circulation in the
5-10     municipality and in the area proposed for annexation on or before
5-11     the 10th day before the date of the hearing.
5-12           (e)  On or before the 30th day after the date a municipality
5-13     proposing an annexation submits a written request for tax records,
5-14     the chief appraiser for each appraisal district in which the area
5-15     proposed for annexation is located shall furnish to the
5-16     municipality the name and address of each owner of real and
5-17     personal property located in the area proposed for annexation and
5-18     the appraised value of the property.
5-19           Sec. 43.0522.  PETITION REQUIRED.  (a)  Except as provided by
5-20     Subsection (e), a municipality may not annex an area unless the
5-21     municipality complies with the petition requirements of this
5-22     section.
5-23           (b)  During the one-year period following the date of the
5-24     last hearing under Section 43.0521, the municipality may circulate
5-25     a written petition to obtain the consent of owners of real and
5-26     personal property to the proposed annexation.
5-27           (c)  The municipality may annex an area only if the
 6-1     municipality:
 6-2                 (1)  obtains the signatures on the petition of:
 6-3                       (A)  the owners of property constituting at least
 6-4     one-half of the appraised value of real and personal property
 6-5     located in the area proposed for annexation as determined under
 6-6     Section 43.0523 that would be subject to taxation by the
 6-7     municipality after annexation; and
 6-8                       (B)  at least one-half of the owners of real and
 6-9     personal property located in the area proposed for annexation as
6-10     determined under Section 43.0523 that would be subject to taxation
6-11     by the municipality after annexation;
6-12                 (2)  files the petition with the county clerk of each
6-13     county in which the area proposed for annexation is located;
6-14                 (3)  submits a sworn affidavit with the petition
6-15     verifying that no part of the area proposed for annexation is
6-16     included as part of a previous notice of intent to annex that is
6-17     pending; and
6-18                 (4)  adopts an ordinance annexing the area.
6-19           (d)  The municipality may not amend the notice of intent to
6-20     annex to increase or reduce the area proposed for annexation after
6-21     the petition begins to be circulated for signatures.
6-22           (e)  This section does not apply if:
6-23                 (1)  the annexation is under Section 43.027, 43.028,
6-24     43.029, 43.031, or 43.035; or
6-25                 (2)  the annexation is for limited purposes under
6-26     Subchapter F.
6-27           Sec. 43.0523.  DETERMINATION OF NUMBER OF SIGNATURES
 7-1     REQUIRED.  (a)  For purposes of determining the number of
 7-2     signatures required under Section 43.0522(c)(1)(A), the appraised
 7-3     value of the real and personal property located in the area
 7-4     proposed for annexation is the appraised value as reflected in the
 7-5     most recent appraisal records of the appraisal district for each
 7-6     county in which the area proposed for annexation is located.
 7-7           (b)  For purposes of determining the number of signatures
 7-8     required under Section 43.0522(c)(1)(B), the number of owners of
 7-9     real and personal property located in the area proposed for
7-10     annexation is determined as follows:
7-11                 (1)  the number of owners of real and personal property
7-12     located in the area proposed for annexation is the number of owners
7-13     as reflected in the most recent appraisal records of the appraisal
7-14     district for each county in which the area proposed for annexation
7-15     is located;
7-16                 (2)  if an undivided parcel of property is owned by
7-17     multiple owners, the owners are considered one owner; and
7-18                 (3)  if one person owns multiple parcels of property,
7-19     the person is considered one owner.
7-20           Sec. 43.0524.  PUBLIC INSPECTION OF ANNEXATION INFORMATION.
7-21     All information required to be filed under this subchapter relating
7-22     to a proposed annexation must be made available for public
7-23     inspection.
7-24           SECTION 6.  Section 43.053, Local Government Code, is amended
7-25     to read as follows:
7-26           Sec. 43.053.  PERIOD FOR COMPLETION OF ANNEXATION;  EFFECTIVE
7-27     DATE.  (a)  A municipality must adopt an ordinance to complete an
 8-1     annexation within 90 days after the date a petition is filed under
 8-2     Section 43.0522 [The annexation of an area must be completed within
 8-3     90 days after the date the governing body institutes the annexation
 8-4     proceedings or those proceedings are void.  Any period during which
 8-5     the municipality is restrained or enjoined by a court of competent
 8-6     jurisdiction from annexing the area is not included in computing
 8-7     the 90-day period].
 8-8           (b)  An [Notwithstanding any provision of a municipal charter
 8-9     to the contrary, the governing body of a municipality with a
8-10     population of 1.5 million or more may provide that an] annexation
8-11     takes [take] effect on the 30th day [any date within 90 days] after
8-12     the date of the adoption of the ordinance providing for the
8-13     annexation.
8-14           SECTION 7.  Section 43.055(a), Local Government Code, is
8-15     amended to read as follows:
8-16           (a)  In a calendar year, a municipality may not annex a total
8-17     area greater than 10 percent of the incorporated area of the
8-18     municipality as of January 1 of that year, plus any amount of area
8-19     carried over to that year under Subsection (b).  In determining the
8-20     total area annexed in a calendar year, an area annexed for limited
8-21     purposes is included, but an annexed area is not included if it is:
8-22                 (1)  [annexed at the request of a majority of the
8-23     qualified voters of the area and the owners of at least 50 percent
8-24     of the land in the area;]
8-25                 [(2)]  owned by the municipality, a county, the state,
8-26     or the federal government and used for a public purpose; or
8-27                 (2) [(3)  annexed at the request of at least a majority
 9-1     of the qualified voters of the area; or]
 9-2                 [(4)]  annexed at the request of the owners of the
 9-3     area.
 9-4           SECTION 8.  Sections 43.056(a), (g), and (h), Local
 9-5     Government Code, are amended to read as follows:
 9-6           (a)  Before the publication of the notice of the first
 9-7     hearing required under Section 43.0521 [43.052], the governing body
 9-8     of the municipality proposing the annexation shall direct its
 9-9     planning department or other appropriate municipal department to
9-10     prepare a service plan that provides for the extension of full
9-11     municipal services to the area to be annexed.  The municipality
9-12     shall provide the services by any of the methods by which it
9-13     extends the services to any other area of the municipality.
9-14           (g)  The proposed service plan must be made available for
9-15     public inspection and explained to the inhabitants of the area at
9-16     the public hearings held under Section 43.0521 [43.052].  The plan
9-17     may be amended through negotiation at the hearings, but the
9-18     provision of any service may not be deleted.  On completion of the
9-19     public hearings, the service plan shall be attached to the
9-20     ordinance annexing the area and approved as part of the ordinance.
9-21           (h)  On approval by the governing body, the service plan is a
9-22     contractual obligation that is not subject to amendment or repeal
9-23     except that if the governing body determines at the public hearings
9-24     required by this subsection that changed conditions or subsequent
9-25     occurrences make the service plan unworkable or obsolete, the
9-26     governing body may amend the service plan to conform to the changed
9-27     conditions or subsequent occurrences.  An amended service plan must
 10-1    provide for services that are comparable to or better than those
 10-2    established in the service plan before amendment.  Before any
 10-3    amendment is adopted, the governing body must provide an
 10-4    opportunity for interested persons to be heard at public hearings
 10-5    called and held in the manner provided by Section 43.0521 [43.052].
 10-6          SECTION 9.  Subchapter C, Chapter 43, Local Government Code,
 10-7    is amended by adding Sections 43.058 and 43.059 to read as follows:
 10-8          Sec. 43.058.  ZONING CLASSIFICATIONS.  (a)  A municipality
 10-9    that annexes area under Section 43.0522 and that has a
10-10    comprehensive zoning ordinance applying to other parts of the
10-11    municipality shall adopt zoning classifications for the annexed
10-12    area that permit densities and uses no more restrictive than those
10-13    permitted in the area immediately before the annexation.
10-14          (b)  A subsequent change in zoning in the annexed area must
10-15    comply with the general procedures established by the municipality
10-16    for rezoning land.
10-17          Sec. 43.059.  SUIT TO CONTEST VALIDITY OF ANNEXATION.  (a)
10-18    The attorney general, a county or district attorney for the county
10-19    in which area annexed under this subchapter is located, a municipal
10-20    attorney, or another affected party may file suit in a district
10-21    court in a county in which the annexed area is located to contest
10-22    the validity of an annexation under this subchapter.  The suit must
10-23    be filed within 30 days after the date an ordinance annexing the
10-24    area is adopted.
10-25          (b)  If more than one person files suit under this section,
10-26    the suits shall be consolidated.
10-27          (c)  If a municipality other than the municipality annexing
 11-1    the area presents evidence to the court demonstrating that the
 11-2    municipality has actively pursued annexation of the area, the court
 11-3    shall consider any oral or written agreements between the
 11-4    municipalities in making a determination under this section.
 11-5          SECTION 10.  Sections 43.101(c) and (d), Local Government
 11-6    Code, are amended to read as follows:
 11-7          (c)  [The area may be annexed without the consent of the
 11-8    owners or residents of the area.]
 11-9          [(d)]  The municipality may annex the area even if part of
11-10    the area is outside the municipality's extraterritorial
11-11    jurisdiction or is narrower than the minimum width prescribed by
11-12    Section 43.054.  Section 43.055, which relates to the amount of
11-13    area a municipality may annex in a calendar year, does not apply to
11-14    the annexation.
11-15          SECTION 11.  Sections 43.102(c), (d), and (e), Local
11-16    Government Code, are amended to read as follows:
11-17          (c)  [The area may be annexed without the consent of the
11-18    owners or residents of the area.]
11-19          [(d)]  The municipality may annex the area even if the area
11-20    is outside the municipality's extraterritorial jurisdiction, is in
11-21    another municipality's extraterritorial jurisdiction, or is
11-22    narrower than the minimum width prescribed by Section 43.054.
11-23    Section 43.055, which relates to the amount of area a municipality
11-24    may annex in a calendar year, does not apply to the annexation.
11-25          (d) [(e)]  The annexation under this section of area outside
11-26    the extraterritorial jurisdiction of the annexing municipality does
11-27    not expand the extraterritorial jurisdiction of the municipality.
 12-1          SECTION 12.  Section 43.103(a), Local Government Code, is
 12-2    amended to read as follows:
 12-3          (a)  A general-law municipality with a population of 500 or
 12-4    more may annex, by ordinance [and without the consent of any
 12-5    person], the part of a street, highway, alley, or other public or
 12-6    private way, including a railway line, spur, or roadbed, that is
 12-7    adjacent and runs parallel to the boundaries of the municipality.
 12-8          SECTION 13.  Section 43.105(a), Local Government Code, is
 12-9    amended to read as follows:
12-10          (a)  A general-law municipality with a population of 984-986
12-11    or 4,540-4,545 may annex, by ordinance [and without the consent of
12-12    any person], a public street, highway, road, or alley adjacent to
12-13    the municipality.
12-14          SECTION 14.  Section 43.123(d), Local Government Code, is
12-15    amended to read as follows:
12-16          (d)  The regulatory plan must:
12-17                (1)  identify the kinds of land use and other
12-18    regulations that will be imposed in the area if it is annexed for
12-19    limited purposes; and
12-20                (2)  state the date on or before which the municipality
12-21    shall annex the area for full purposes, which date must be within
12-22    four [three] years after the date the area is annexed for limited
12-23    purposes.
12-24          SECTION 15.  Section 43.128, Local Government Code, is
12-25    amended to read as follows:
12-26          Sec. 43.128.  JUDICIAL REMEDY [REMEDIES]:  [FORCED ANNEXATION
12-27    OR] DISANNEXATION.  (a)  If the municipality fails to annex the
 13-1    area for full  purposes as required by Section 43.127(a), any
 13-2    affected person may petition the district court to compel [the
 13-3    annexation of the area for full purposes or] the disannexation of
 13-4    the area.  On finding that the municipality has failed to annex the
 13-5    area as required by Section 43.127(a), the court shall enter an
 13-6    order requiring the municipality [to annex the area for full
 13-7    purposes or] to disannex the area.  If an area is disannexed, the
 13-8    area may not be annexed again by the municipality for five years.
 13-9          (b)  If the municipality fails to take the steps required by
13-10    Section 43.127(b), any affected person may petition the district
13-11    court to compel [the annexation of a particular area for full
13-12    purposes or] the disannexation of the area.  On finding that the
13-13    municipality has failed to take the steps required by Section
13-14    43.127(b), the court shall enter an order requiring the
13-15    municipality [to annex the area for full purposes or] to disannex
13-16    the area.
13-17          SECTION 16.  Sections 43.022, 43.023, 43.024, 43.025, 43.026,
13-18    43.030, 43.032, 43.033, and 43.034, Local Government Code, are
13-19    repealed.
13-20          SECTION 17.  The changes in law made by this Act do not apply
13-21    to an annexation for which the first hearing notice required by
13-22    Section 43.052, Local Government Code, as it existed immediately
13-23    before the effective date of this Act, is published before the
13-24    effective date of this Act.  An annexation for which the first
13-25    hearing notice required by Section 43.052, Local Government Code,
13-26    as it existed immediately before the effective date of this Act, is
13-27    published before the effective date of this Act is governed by the
 14-1    law in effect immediately before the effective date of this Act,
 14-2    and the former law is continued in effect for that purpose.
 14-3          SECTION 18.  This Act takes effect September 1, 1999.
 14-4          SECTION 19.  The importance of this legislation and the
 14-5    crowded condition of the calendars in both houses create an
 14-6    emergency and an imperative public necessity that the
 14-7    constitutional rule requiring bills to be read on three several
 14-8    days in each house be suspended, and this rule is hereby suspended.