AN ACT
1-1 relating to municipal annexation; providing penalties.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subchapter B, Chapter 42, Local Government Code,
1-4 is amended by adding Section 42.0225 to read as follows:
1-5 Sec. 42.0225. EXTRATERRITORIAL JURISDICTION AROUND CERTAIN
1-6 MUNICIPALLY OWNED PROPERTY. (a) This section applies only to an
1-7 area owned by a municipality that is:
1-8 (1) annexed by the municipality; and
1-9 (2) not contiguous to other territory of the
1-10 municipality.
1-11 (b) Notwithstanding Section 42.021, the annexation of an
1-12 area described by Subsection (a) does not expand the
1-13 extraterritorial jurisdiction of the municipality.
1-14 SECTION 2. Subchapter A, Chapter 43, Local Government Code,
1-15 is amended by adding Section 43.002 to read as follows:
1-16 Sec. 43.002. CONTINUATION OF LAND USE. (a) A municipality
1-17 may not, after annexing an area, prohibit a person from:
1-18 (1) continuing to use land in the area in the manner
1-19 in which the land was being used on the date the annexation
1-20 proceedings were instituted if the land use was legal at that time;
1-21 or
1-22 (2) beginning to use land in the area in the manner
1-23 that was planned for the land before the 90th day before the
1-24 effective date of the annexation if:
2-1 (A) one or more licenses, certificates, permits,
2-2 approvals, or other forms of authorization by a governmental entity
2-3 were required by law for the planned land use; and
2-4 (B) a completed application for the initial
2-5 authorization was filed with the governmental entity before the
2-6 date the annexation proceedings were instituted.
2-7 (b) For purposes of this section, a completed application is
2-8 filed if the application includes all documents and other
2-9 information designated as required by the governmental entity in a
2-10 written notice to the applicant.
2-11 (c) This section does not prohibit a municipality from
2-12 imposing:
2-13 (1) a regulation relating to the location of sexually
2-14 oriented businesses, as that term is defined by Section 243.002;
2-15 (2) a municipal ordinance, regulation, or other
2-16 requirement affecting colonias, as that term is defined by Section
2-17 2306.581, Government Code;
2-18 (3) a regulation relating to preventing imminent
2-19 destruction of property or injury to persons;
2-20 (4) a regulation relating to public nuisances;
2-21 (5) a regulation relating to flood control;
2-22 (6) a regulation relating to the storage and use of
2-23 hazardous substances;
2-24 (7) a regulation relating to the sale and use of
2-25 fireworks; or
2-26 (8) a regulation relating to the discharge of
3-1 firearms.
3-2 SECTION 3. The heading to Subchapter C, Chapter 43, Local
3-3 Government Code, is amended to read as follows:
3-4 SUBCHAPTER C. ANNEXATION PROCEDURE FOR AREAS ANNEXED
3-5 UNDER MUNICIPAL ANNEXATION PLAN
3-6 SECTION 4. Sections 43.052 and 43.053, Local Government
3-7 Code, are amended to read as follows:
3-8 Sec. 43.052. MUNICIPAL ANNEXATION PLAN REQUIRED. (a) In
3-9 this section, "special district" means a municipal utility
3-10 district, water control and improvement district, or other district
3-11 created under Section 52, Article III, or Section 59, Article XVI,
3-12 Texas Constitution.
3-13 (b) A municipality may annex an area identified in the
3-14 annexation plan only as provided by this section.
3-15 (c) A municipality shall prepare an annexation plan that
3-16 specifically identifies annexations that may occur beginning on the
3-17 third anniversary of the date the annexation plan is adopted. The
3-18 municipality may amend the plan to specifically identify
3-19 annexations that may occur beginning on the third anniversary of
3-20 the date the plan is amended.
3-21 (d) At any time during which an area is included in a
3-22 municipality's annexation plan, a municipal utility district or
3-23 other special district that will be abolished as a result of the
3-24 annexation, excluding an emergency services district, in which the
3-25 area is located may not without consent of the municipality:
3-26 (1) reduce the tax rate applicable to the area if the
4-1 amount that would remain in the debt service fund after the
4-2 reduction and after subtracting the amount due for debt service in
4-3 the following year is less than 25 percent of the debt service
4-4 requirements for the following year;
4-5 (2) voluntarily transfer an asset without
4-6 consideration; or
4-7 (3) enter into a contract for services that extends
4-8 beyond the three-year annexation plan period other than a contract
4-9 with another political subdivision for the operation of water,
4-10 wastewater, and drainage facilities.
4-11 (e) A municipality may amend its annexation plan at any time
4-12 to remove an area proposed for annexation. If, before the end of
4-13 the 18th month after the month an area is included in the
4-14 three-year annexation cycle, a municipality amends its annexation
4-15 plan to remove the area, the municipality may not amend the plan to
4-16 again include the area in its annexation plan until the first
4-17 anniversary of the date the municipality amended the plan to remove
4-18 the area. If, during or after the 18 months after the month an
4-19 area is included in the three-year annexation cycle, a municipality
4-20 amends its annexation plan to remove the area, the municipality may
4-21 not amend the plan to again include the area in its annexation plan
4-22 until the second anniversary of the date the municipality amended
4-23 the plan to remove the area.
4-24 (f) Before the 90th day after the date a municipality adopts
4-25 or amends an annexation plan under this section, the municipality
4-26 shall give written notice to:
5-1 (1) each property owner in the affected area, as
5-2 indicated by the appraisal records furnished by the appraisal
5-3 district for each county in which the affected area is located,
5-4 that the area has been included in or removed from the
5-5 municipality's annexation plan;
5-6 (2) each public entity, as defined by Section 43.053,
5-7 or private entity that provides services in the area proposed for
5-8 annexation; and
5-9 (3) [ANNEXATION HEARING REQUIREMENTS. (a) Before a
5-10 municipality may institute annexation proceedings, the governing
5-11 body of the municipality must conduct two public hearings at which
5-12 persons interested in the annexation are given the opportunity to
5-13 be heard. The hearings must be conducted on or after the 40th day
5-14 but before the 20th day before the date of the institution of the
5-15 proceedings.]
5-16 [(b) At least one of the hearings must be held in the area
5-17 proposed for annexation if more than 20 adult residents of the area
5-18 file a written protest of the annexation with the secretary of the
5-19 municipality within 10 days after the date of the publication of
5-20 the notice required by this section. The protest must state the
5-21 name, address, and age of each protester who signs.]
5-22 [(c) The municipality must publish notice of the hearings in
5-23 a newspaper of general circulation in the municipality and in the
5-24 area proposed for annexation. The notice for each hearing must be
5-25 published at least once on or after the 20th day but before the
5-26 10th day before the date of the hearing. The municipality must
6-1 give additional notice by certified mail to] each railroad company
6-2 that serves the municipality and is on the municipality's tax roll
6-3 if the company's right-of-way is in the area proposed for
6-4 annexation.
6-5 (g) If an area is not removed from the municipality's
6-6 annexation plan, the annexation of the area under the plan must be
6-7 completed before the 31st day after the third anniversary of the
6-8 date the area was included in the annexation plan. If the
6-9 annexation is not completed within the period prescribed by this
6-10 subsection, the municipality may not annex the area proposed for
6-11 annexation before the fifth anniversary of the last day for
6-12 completing an annexation under this subsection.
6-13 (h) This section does not apply to an area proposed for
6-14 annexation if:
6-15 (1) the area contains fewer than 100 separate tracts
6-16 of land on which one or more residential dwellings are located on
6-17 each tract;
6-18 (2) the area will be annexed by petition of more than
6-19 50 percent of the real property owners in the area proposed for
6-20 annexation or by vote or petition of the qualified voters or real
6-21 property owners as provided by Subchapter B;
6-22 (3) the area is or was the subject of:
6-23 (A) an industrial district contract under
6-24 Section 42.044; or
6-25 (B) a strategic partnership agreement under
6-26 Section 43.0751;
7-1 (4) the area is located in a colonia, as that term is
7-2 defined by Section 2306.581, Government Code;
7-3 (5) the area is annexed under Section 43.026, 43.027,
7-4 43.029, or 43.031;
7-5 (6) the area is located completely within the
7-6 boundaries of a closed military installation; or
7-7 (7) the municipality determines that the annexation of
7-8 the area is necessary to protect the area proposed for annexation
7-9 or the municipality from:
7-10 (A) imminent destruction of property or injury
7-11 to persons; or
7-12 (B) a condition or use that constitutes a public
7-13 or private nuisance as defined by background principles of nuisance
7-14 and property law of this state.
7-15 (i) A municipality may not circumvent the requirements of
7-16 this section by proposing to separately annex two or more areas
7-17 described by Subsection (h)(1) if no reason exists under generally
7-18 accepted municipal planning principles and practices for separately
7-19 annexing the areas. If a municipality proposes to separately annex
7-20 areas in violation of this section, a person residing or owning
7-21 land in the area may petition the municipality to include the area
7-22 in the municipality's annexation plan. If the municipality fails
7-23 to take action on the petition, the petitioner may request
7-24 arbitration of the dispute. The petitioner must request the
7-25 appointment of an arbitrator in writing to the municipality.
7-26 Sections 43.0564(b), (c), and (e) apply to the appointment of an
8-1 arbitrator and the conduct of an arbitration proceeding under this
8-2 subsection. Except as provided by this subsection, the
8-3 municipality shall pay the cost of arbitration. If the arbitrator
8-4 finds that the petitioner's request for arbitration was groundless
8-5 or requested in bad faith or for the purposes of harassment, the
8-6 arbitrator shall require the petitioner to pay the costs of
8-7 arbitration.
8-8 (j) If a municipality has an Internet website, the
8-9 municipality shall:
8-10 (1) post and maintain the posting of its annexation
8-11 plan on its Internet website;
8-12 (2) post and maintain the posting on its Internet
8-13 website of any amendments to include an area in its annexation plan
8-14 until the date the area is annexed; and
8-15 (3) post and maintain the posting on its Internet
8-16 website of any amendments to remove an area from its annexation
8-17 plan until the date the municipality may again include the area in
8-18 its annexation plan.
8-19 Sec. 43.053. INVENTORY OF SERVICES AND FACILITIES REQUIRED.
8-20 (a) In this section, "public entity" includes a municipality,
8-21 county, fire protection service provider, including a volunteer
8-22 fire department, emergency medical services provider, including a
8-23 volunteer emergency medical services provider, or a special
8-24 district, as that term is defined by Section 43.052.
8-25 (b) After adopting an annexation plan or amending an
8-26 annexation plan to include additional areas under Section 43.052, a
9-1 municipality shall compile a comprehensive inventory of services
9-2 and facilities provided by public and private entities, directly or
9-3 by contract, in each area proposed for annexation. The inventory
9-4 of services and facilities must include all services and facilities
9-5 the municipality is required to provide or maintain following the
9-6 annexation.
9-7 (c) The municipality shall request, in the notice provided
9-8 under Section 43.052(f), the information necessary to compile the
9-9 inventory from each public or private entity that provides services
9-10 or facilities in each area proposed for annexation. The public or
9-11 private entity shall provide to the municipality the information
9-12 held by the entity that is necessary to compile the inventory not
9-13 later than the 90th day after the date the municipality requests
9-14 the information unless the entity and the municipality agree to
9-15 extend the period for providing the information. The information
9-16 provided under this subsection must include the type of service
9-17 provided, the method of service delivery, and all information
9-18 prescribed by Subsections (e) and (f). If a service provider fails
9-19 to provide the required information within the 90-day period, the
9-20 municipality is not required to include the information in an
9-21 inventory prepared under this section.
9-22 (d) The information required in the inventory shall be based
9-23 on the services and facilities provided during the year preceding
9-24 the date the municipality adopted the annexation plan or amended
9-25 the annexation plan to include additional areas.
9-26 (e) For utility facilities, roads, drainage structures, and
10-1 other infrastructure provided or maintained by public or private
10-2 entities, the inventory must include:
10-3 (1) an engineer's report that describes the physical
10-4 condition of all infrastructure elements in the area; and
10-5 (2) a summary of capital, operational, and maintenance
10-6 expenditures for that infrastructure.
10-7 (f) For police, fire, and emergency medical services
10-8 provided by public or private entities, the inventory must include
10-9 for each service:
10-10 (1) the average dispatch and delivery time;
10-11 (2) a schedule of equipment, including vehicles;
10-12 (3) a staffing schedule that discloses the
10-13 certification and training levels of personnel; and
10-14 (4) a summary of operating and capital expenditures.
10-15 (g) The municipality shall complete the inventory and make
10-16 the inventory available for public inspection on or before the 60th
10-17 day after the date the municipality receives the required
10-18 information from the service providers under Subsection (c).
10-19 (h) The municipality may monitor the services provided in an
10-20 area proposed for annexation and verify the inventory information
10-21 provided by the service provider. [PERIOD FOR COMPLETION OF
10-22 ANNEXATION; EFFECTIVE DATE. (a) The annexation of an area must be
10-23 completed within 90 days after the date the governing body
10-24 institutes the annexation proceedings or those proceedings are
10-25 void. Any period during which the municipality is restrained or
10-26 enjoined by a court of competent jurisdiction from annexing the
11-1 area is not included in computing the 90-day period.]
11-2 [(b) Notwithstanding any provision of a municipal charter to
11-3 the contrary, the governing body of a municipality with a
11-4 population of 1.5 million or more may provide that an annexation
11-5 take effect on any date within 90 days after the date of the
11-6 adoption of the ordinance providing for the annexation.]
11-7 SECTION 5. Subsection (a), Section 43.054, Local Government
11-8 Code, is amended to read as follows:
11-9 (a) A municipality with a population of less than 1.6
11-10 million may not annex a publicly or privately owned area, including
11-11 a strip of area following the course of a road, highway, river,
11-12 stream, or creek, unless the width of the area at its narrowest
11-13 point is at least 1,000 feet.
11-14 SECTION 6. Subchapter C, Chapter 43, Local Government Code,
11-15 is amended by adding Sections 43.0545 and 43.0546 to read as
11-16 follows:
11-17 Sec. 43.0545. ANNEXATION OF CERTAIN ADJACENT AREAS. (a) A
11-18 municipality may not annex an area that is located in the
11-19 extraterritorial jurisdiction of the municipality only because the
11-20 area is contiguous to municipal territory that is less than 1,000
11-21 feet in width at its narrowest point.
11-22 (b) A municipality may not annex an area that is located in
11-23 the extraterritorial jurisdiction of the municipality only because
11-24 the area is contiguous to municipal territory that:
11-25 (1) was annexed before September 1, 1999; and
11-26 (2) was in the extraterritorial jurisdiction of the
12-1 municipality at the time of annexation only because the territory
12-2 was contiguous to municipal territory that was less than 1,000 feet
12-3 in width at its narrowest point.
12-4 (c) Subsections (a) and (b) do not apply to an area:
12-5 (1) completely surrounded by incorporated territory of
12-6 one or more municipalities;
12-7 (2) for which the owners of the area have requested
12-8 annexation by the municipality;
12-9 (3) that is owned by the municipality; or
12-10 (4) that is the subject of an industrial district
12-11 contract under Section 42.044.
12-12 (d) Subsection (b) does not apply if the minimum width of
12-13 the narrow territory described by Subsection (b)(2), following
12-14 subsequent annexation, is no longer less than 1,000 feet in width
12-15 at its narrowest point.
12-16 (e) For purposes of this section, roads, highways, rivers,
12-17 lakes, or other bodies of water are not included in computing the
12-18 1,000-foot distance unless the area being annexed includes land in
12-19 addition to a road, highway, river, lake, or other body of water.
12-20 Sec. 43.0546. ANNEXATION OF CERTAIN ADJACENT AREAS BY
12-21 POPULOUS MUNICIPALITIES. (a) In this section, "municipal area"
12-22 means the area within the corporate boundaries of a municipality
12-23 other than:
12-24 (1) an area annexed before September 1, 1999, that is
12-25 less than 1,000 feet wide at any point;
12-26 (2) an area within the corporate boundaries of the
13-1 municipality that was annexed by the municipality before September
13-2 1, 1999, and at the time of the annexation the area was contiguous
13-3 to municipal territory that was less than 1,000 feet wide at any
13-4 point;
13-5 (3) an area annexed after December 1, 1995, and before
13-6 September 1, 1999;
13-7 (4) municipally owned property; or
13-8 (5) an area contiguous to municipally owned property
13-9 if the municipally owned property was annexed in an annexation that
13-10 included an area that was less than 1,000 feet wide at its
13-11 narrowest point.
13-12 (b) This section applies only to a municipality with a
13-13 population of 1.6 million or more.
13-14 (c) A municipality to which this section applies may not
13-15 annex an area that is less than 1,500 feet wide at any point. At
13-16 least 1,500 feet of the perimeter of the area annexed by a
13-17 municipality must be coterminous with the boundary of the municipal
13-18 area of the municipality.
13-19 (d) This section does not apply to territory:
13-20 (1) that is completely surrounded by municipal area;
13-21 (2) for which the owners of the area have requested
13-22 annexation by the municipality;
13-23 (3) within a district whose elected board of directors
13-24 has by a majority vote requested annexation;
13-25 (4) owned by the municipality; or
13-26 (5) that contains fewer than 50 inhabitants.
14-1 SECTION 7. Section 43.056, Local Government Code, is amended
14-2 to read as follows:
14-3 Sec. 43.056. PROVISION OF SERVICES TO ANNEXED AREA.
14-4 (a) Before the first day of the 10th month after the month in
14-5 which the inventory is prepared as provided by Section 43.053,
14-6 [publication of the notice of the first hearing required under
14-7 Section 43.052, the governing body of] the municipality proposing
14-8 the annexation shall complete [direct its planning department or
14-9 other appropriate municipal department to prepare] a service plan
14-10 that provides for the extension of full municipal services to the
14-11 area to be annexed. The municipality shall provide the services by
14-12 any of the methods by which it extends the services to any other
14-13 area of the municipality.
14-14 (b) The service plan must include a program under which the
14-15 municipality will provide full municipal services in the annexed
14-16 area no later than 2-1/2 [4-1/2] years after the effective date of
14-17 the annexation, in accordance with Subsection (e), unless certain
14-18 services cannot reasonably be provided within that period and the
14-19 municipality proposes a schedule for providing those services
14-20 [(d)]. If the municipality proposes a schedule to extend the
14-21 period for providing certain services, the schedule must provide
14-22 for the provision of full municipal services no later than 4-1/2
14-23 years after the effective date of the annexation. If the area was
14-24 annexed after December 1, 1998, and before September 1, 1999, the
14-25 municipality shall provide sewer services in the annexed area as
14-26 provided by this subsection, except that, no later than five years
15-1 after the effective date of the annexation, the municipality may
15-2 not provide sewer services in the annexed area by means of a
15-3 package wastewater treatment plant. However, under the program if
15-4 the municipality provides any of the following services within the
15-5 corporate boundaries of the municipality before annexation, the
15-6 municipality must provide those [the following] services in the
15-7 area proposed for annexation on [within 60 days after] the
15-8 effective date of the annexation of the area:
15-9 (1) police protection;
15-10 (2) fire protection;
15-11 (3) emergency medical services;
15-12 (4) solid waste collection, except as provided by
15-13 Subsection (o);
15-14 (5) operation and [(4)] maintenance of water and
15-15 wastewater facilities in the annexed area that are not within the
15-16 service area of another water or wastewater utility;
15-17 (6) operation and [(5)] maintenance of roads and
15-18 streets, including road and street lighting;
15-19 (7) operation and [(6)] maintenance of parks,
15-20 playgrounds, and swimming pools; and
15-21 (8) operation and [(7)] maintenance of any other
15-22 publicly owned facility, building, or service.
15-23 [(b-1) The service plan of a municipality with a population
15-24 of 1.5 million or more must include a program under which the
15-25 municipality will provide full municipal services in the annexed
15-26 area no later than 4-1/2 years after the effective date of the
16-1 annexation, in accordance with Subsection (d). However, under the
16-2 program the municipality must:]
16-3 [(1) provide the following services in the area on and
16-4 after the effective date of the annexation of the area:]
16-5 [(A) police protection; and]
16-6 [(B) solid waste collection;]
16-7 [(2) provide the following services in the area within
16-8 30 days after the effective date of the annexation of the area, if
16-9 the services are provided through a contract between the
16-10 municipality and a service provider:]
16-11 [(A) emergency medical service; and]
16-12 [(B) fire protection; and]
16-13 [(3) provide the following services in the area within
16-14 60 days after the effective date of the annexation of the area:]
16-15 [(A) maintenance of water and wastewater
16-16 facilities in the annexed area that are not within the service area
16-17 of another water or wastewater utility;]
16-18 [(B) maintenance of roads and streets, including
16-19 road and street lighting;]
16-20 [(C) maintenance of parks, playgrounds, and
16-21 swimming pools;]
16-22 [(D) maintenance of any other publicly owned
16-23 facility, building, or service; and]
16-24 [(E) emergency medical service and fire
16-25 protection, if the services are provided by municipal personnel and
16-26 equipment.]
17-1 (c) For purposes of this section, "full municipal services"
17-2 means services [funded in whole or in part by municipal taxation
17-3 and] provided by the annexing municipality within its full-purpose
17-4 boundaries, including water and wastewater services and excluding
17-5 gas or electrical service.
17-6 (d) A municipality with a population of 1.5 million or more
17-7 may provide all or part of the municipal services required under
17-8 the service plan by contracting with service providers. If the
17-9 municipality owns a water and wastewater utility, the municipality
17-10 shall, subject to this section, extend water and wastewater service
17-11 to any annexed area not within the service area of another water or
17-12 wastewater utility. If the municipality annexes territory included
17-13 within the boundaries of a municipal utility district or a water
17-14 control and improvement district, the municipality shall comply
17-15 with applicable state law relating to annexation of territory
17-16 within a municipal utility district or a water control and
17-17 improvement district. The service plan shall summarize the service
17-18 extension policies of the municipal water and wastewater utility.
17-19 (e) [(d)] The service plan must also include a program under
17-20 which the municipality will initiate after the effective date of
17-21 the annexation the acquisition or construction of capital
17-22 improvements necessary for providing municipal services adequate to
17-23 serve the area. The construction shall [begin within two years
17-24 after the effective date of the annexation of the area and shall]
17-25 be substantially completed within the period provided in the
17-26 service plan. The service plan may be amended to extend the period
18-1 for construction if the construction is proceeding with all
18-2 deliberate speed [4-1/2 years after that date]. The acquisition or
18-3 construction of the facilities shall be accomplished by purchase,
18-4 lease, or other contract or by the municipality succeeding to the
18-5 powers, duties, assets, and obligations of a conservation and
18-6 reclamation district as authorized or required by law. The
18-7 construction of the facilities shall be accomplished in a
18-8 continuous process and shall be completed as soon as reasonably
18-9 possible, consistent with generally accepted local engineering and
18-10 architectural standards and practices. However, the municipality
18-11 does not violate this subsection if the construction process is
18-12 interrupted for any reason by circumstances beyond the direct
18-13 control of the municipality. The requirement that construction of
18-14 capital improvements must be substantially completed within the
18-15 period provided in the service plan [4-1/2 years] does not apply to
18-16 a development project or proposed development project within an
18-17 annexed area if the annexation of the area was initiated by
18-18 petition or request of the owners of land in the annexed area and
18-19 the municipality and the landowners have subsequently agreed in
18-20 writing that the development project within that area, because of
18-21 its size or projected manner of development by the developer, is
18-22 not reasonably expected to be completed within that period.
18-23 (f) [(e)] A service plan may not:
18-24 (1) require the creation of another political
18-25 subdivision;
18-26 (2) require a landowner in the area to fund the
19-1 capital improvements necessary to provide municipal services in a
19-2 manner inconsistent with Chapter 395 unless otherwise agreed to by
19-3 the landowner; or
19-4 (3) provide [fewer] services [or lower levels of
19-5 services] in the area in a manner that would have the effect of
19-6 reducing by more than a negligible amount the level of fire and
19-7 police protection and emergency medical services provided within
19-8 the corporate boundaries of the municipality before annexation[:]
19-9 [(A) than were in existence in the area
19-10 immediately preceding the date of the annexation; or]
19-11 [(B) than are otherwise available in other parts
19-12 of the municipality with land uses and population densities similar
19-13 to those reasonably contemplated or projected in the area].
19-14 (g) If the annexed area had a lower level of services,
19-15 infrastructure, and infrastructure maintenance than the level of
19-16 services, infrastructure, and infrastructure maintenance provided
19-17 within the corporate boundaries of the municipality before
19-18 annexation, a service plan must provide the annexed area with a
19-19 level of services, infrastructure, and infrastructure maintenance
19-20 that is comparable to the level of services, infrastructure, and
19-21 infrastructure maintenance available in other parts of the
19-22 municipality with topography, land use, and population density
19-23 similar to those reasonably contemplated or projected in the area.
19-24 If the annexed area had a level of services, infrastructure, and
19-25 infrastructure maintenance equal to the level of services,
19-26 infrastructure, and infrastructure maintenance provided within the
20-1 corporate boundaries of the municipality before annexation, a
20-2 service plan must maintain that same level of services,
20-3 infrastructure, and infrastructure maintenance. Except as provided
20-4 by this subsection, if the annexed area had a level of services
20-5 superior to the level of services provided within the corporate
20-6 boundaries of the municipality before annexation, a service plan
20-7 must provide the annexed area with a level of services that is
20-8 comparable to the level of services available in other parts of the
20-9 municipality with topography, land use, and population density
20-10 similar to those reasonably contemplated or projected in the area.
20-11 If the annexed area had a level of services for operating and
20-12 maintaining the infrastructure of the area, including the
20-13 facilities described by Subsections (b)(5)-(8), superior to the
20-14 level of services provided within the corporate boundaries of the
20-15 municipality before annexation, a service plan must provide for the
20-16 operation and maintenance of the infrastructure of the annexed area
20-17 at a level of services that is equal or superior to that level of
20-18 services.
20-19 (h) A municipality with a population of 1.6 million or more
20-20 may not impose a fee in the annexed area, over and above ad valorem
20-21 taxes and fees imposed within the corporate boundaries of the
20-22 municipality before annexation, to maintain the level of services
20-23 that existed in the area before annexation. This subsection does
20-24 not prohibit the municipality from imposing a fee for a service in
20-25 the area annexed if the same fee is imposed within the corporate
20-26 boundaries of the municipality before annexation.
21-1 (i) [(f)] If only a part of the area to be annexed is
21-2 actually annexed, the governing body shall direct the department to
21-3 prepare a revised service plan for that part.
21-4 (j) [(g)] The proposed service plan must be made available
21-5 for public inspection and explained to the inhabitants of the area
21-6 at the public hearings held under Section 43.0561 [43.052]. The
21-7 plan may be amended through negotiation at the hearings, but the
21-8 provision of any service may not be deleted. On completion of the
21-9 public hearings, the service plan shall be attached to the
21-10 ordinance annexing the area and approved as part of the ordinance.
21-11 (k) [(h)] On approval by the governing body, the service
21-12 plan is a contractual obligation that is not subject to amendment
21-13 or repeal except that if the governing body determines at the
21-14 public hearings required by this subsection that changed conditions
21-15 or subsequent occurrences make the service plan unworkable or
21-16 obsolete, the governing body may amend the service plan to conform
21-17 to the changed conditions or subsequent occurrences. An amended
21-18 service plan must provide for services that are comparable to or
21-19 better than those established in the service plan before amendment.
21-20 Before any amendment is adopted, the governing body must provide an
21-21 opportunity for interested persons to be heard at public hearings
21-22 called and held in the manner provided by Section 43.0561 [43.052].
21-23 (l) [(i)] A service plan is valid for 10 years. Renewal of
21-24 the service plan is at the discretion of the municipality. A
21-25 person residing or owning land in an annexed area in a municipality
21-26 with a population of 1.6 million or more may enforce a service plan
22-1 by petitioning the municipality for a change in policy or
22-2 procedures to ensure compliance with the service plan. If the
22-3 municipality fails to take action with regard to the petition, the
22-4 petitioner may request arbitration of the dispute under Section
22-5 43.0565. A person residing or owning land in an annexed area in a
22-6 municipality with a population of less than 1.6 million may enforce
22-7 a service plan by applying for a writ of mandamus not later than
22-8 the second anniversary of the date the person knew or should have
22-9 known that the municipality was not complying with the service
22-10 plan. If a writ of mandamus is applied for, the municipality has
22-11 the burden of proving that the services have been provided in
22-12 accordance with the service plan in question. If a court issues a
22-13 [the] writ under this subsection, the court:
22-14 (1) [municipality shall pay the person's costs and
22-15 reasonable attorney's fees in bringing the action. A writ issued
22-16 under this subsection] must provide the municipality the option of
22-17 disannexing the area within a reasonable period specified by the
22-18 court;
22-19 (2) may require the municipality to comply with the
22-20 service plan in question before a reasonable date specified by the
22-21 court if the municipality does not disannex the area within the
22-22 period prescribed by the court under Subdivision (1);
22-23 (3) may require the municipality to refund to the
22-24 landowners of the annexed area money collected by the municipality
22-25 from those landowners for services to the area that were not
22-26 provided;
23-1 (4) may assess a civil penalty against the
23-2 municipality, to be paid to the state in an amount as justice may
23-3 require, for the period in which the municipality is not in
23-4 compliance with the service plan;
23-5 (5) may require the parties to participate in
23-6 mediation; and
23-7 (6) may require the municipality to pay the person's
23-8 costs and reasonable attorney's fees in bringing the action for the
23-9 writ [30 days].
23-10 (m) [(j) A municipality that annexes an area shall provide
23-11 the area or cause the area to be provided with services in
23-12 accordance with the service plan for the area.]
23-13 [(k)] This section does not require that a uniform level of
23-14 full municipal services be provided to each area of the
23-15 municipality if different characteristics of topography, land use,
23-16 and population density constitute [are considered] a sufficient
23-17 basis for providing different levels of service. Any disputes
23-18 regarding the level of services provided under this subsection are
23-19 resolved in the same manner provided by Subsection (l). Nothing in
23-20 this subsection modifies the requirement under Subsection (g) for a
23-21 service plan to provide a level of services in an annexed area that
23-22 is equal or superior to the level of services provided within the
23-23 corporate boundaries of the municipality before annexation. To the
23-24 extent of any conflict between this subsection and Subsection (g),
23-25 Subsection (g) prevails.
23-26 (n) Before the second anniversary of the date an area is
24-1 included within the corporate boundaries of a municipality by
24-2 annexation, the municipality may not:
24-3 (1) prohibit the collection of solid waste in the area
24-4 by a privately owned solid waste management service provider; or
24-5 (2) impose a fee for solid waste management services
24-6 on a person who continues to use the services of a privately owned
24-7 solid waste management service provider.
24-8 (o) A municipality is not required to provide solid waste
24-9 collection services under Subsection (b) to a person who continues
24-10 to use the services of a privately owned solid waste management
24-11 service provider as provided by Subsection (n).
24-12 SECTION 8. Subchapter C, Chapter 43, Local Government Code,
24-13 is amended by renumbering Section 43.0561 as Section 43.0566 and
24-14 Section 43.0565 as Section 43.0567 and adding Sections 43.0561,
24-15 43.0562, 43.0563, 43.0564, and 43.0565 to read as follows:
24-16 Sec. 43.0561. ANNEXATION HEARING REQUIREMENTS. (a) Before
24-17 a municipality may institute annexation proceedings, the governing
24-18 body of the municipality must conduct two public hearings at which
24-19 persons interested in the annexation are given the opportunity to
24-20 be heard. The hearings must be conducted not later than the 90th
24-21 day after the date the inventory is available for inspection.
24-22 (b) At least one of the hearings must be held in the area
24-23 proposed for annexation if a suitable site is reasonably available
24-24 and more than 20 adults who are permanent residents of the area
24-25 file a written protest of the annexation with the secretary of the
24-26 municipality within 10 days after the date of the publication of
25-1 the notice required by this section. The protest must state the
25-2 name, address, and age of each protester who signs. If a suitable
25-3 site is not reasonably available in the area proposed for
25-4 annexation, the hearing may be held outside the area proposed for
25-5 annexation if the hearing is held in the nearest suitable public
25-6 facility.
25-7 (c) The municipality must post notice of the hearings on the
25-8 municipality's Internet website if the municipality has an
25-9 Internet website and publish notice of the hearings in a newspaper
25-10 of general circulation in the municipality and in the area proposed
25-11 for annexation. The notice for each hearing must be published at
25-12 least once on or after the 20th day but before the 10th day before
25-13 the date of the hearing. The notice for each hearing must be
25-14 posted on the municipality's Internet website on or after the 20th
25-15 day but before the 10th day before the date of the hearing and must
25-16 remain posted until the date of the hearing. The municipality must
25-17 give additional notice by certified mail to:
25-18 (1) each public entity, as defined by Section 43.053,
25-19 and utility service provider that provides services in the area
25-20 proposed for annexation; and
25-21 (2) each railroad company that serves the municipality
25-22 and is on the municipality's tax roll if the company's right-of-way
25-23 is in the area proposed for annexation.
25-24 Sec. 43.0562. NEGOTIATIONS REQUIRED. (a) After holding the
25-25 hearings as provided by Section 43.0561:
25-26 (1) if a municipality has a population of less than
26-1 1.6 million, the municipality and the property owners of the area
26-2 proposed for annexation shall negotiate for the provision of
26-3 services to the area after annexation or for the provision of
26-4 services to the area in lieu of annexation under Section 43.0563;
26-5 or
26-6 (2) if a municipality proposes to annex a special
26-7 district, as that term is defined by Section 43.052, the
26-8 municipality and the governing body of the district shall negotiate
26-9 for the provision of services to the area after annexation or for
26-10 the provision of services to the area in lieu of annexation under
26-11 Section 43.0751.
26-12 (b) For purposes of negotiations under Subsection (a)(1),
26-13 the commissioners court of the county in which the area proposed
26-14 for annexation is located shall select five representatives to
26-15 negotiate with the municipality for the provision of services to
26-16 the area after annexation. If the area proposed for annexation is
26-17 located in more than one county, the commissioners court of the
26-18 county in which the greatest number of residents reside shall
26-19 select three representatives to negotiate with the municipality,
26-20 and the commissioners courts of the remaining counties jointly
26-21 shall select two representatives to negotiate with the
26-22 municipality.
26-23 (c) For purposes of negotiations under Subsection (a)(2), if
26-24 more than one special district is located in the area proposed for
26-25 annexation, the governing boards of the districts may jointly
26-26 select five representatives to negotiate with the municipality on
27-1 behalf of all the affected districts.
27-2 Sec. 43.0563. CONTRACTS FOR PROVISION OF SERVICES IN LIEU OF
27-3 ANNEXATION. (a) The governing body of a municipality with a
27-4 population of less than 1.6 million may negotiate and enter into a
27-5 written agreement with representatives designated under Section
27-6 43.0562(b) for the provision of services and the funding of the
27-7 services in the area. The agreement may also include an agreement
27-8 related to permissible land uses and compliance with municipal
27-9 ordinances.
27-10 (b) An agreement under this section is in lieu of annexation
27-11 by the municipality of the area.
27-12 (c) In negotiating an agreement under this section, the
27-13 parties may agree to:
27-14 (1) any term allowed under Section 42.044 or 43.0751,
27-15 regardless of whether the municipality or the area proposed for
27-16 annexation would have been able to agree to the term under Section
27-17 42.044 or 43.0751; and
27-18 (2) any other term to which both parties agree to
27-19 satisfactorily resolve any dispute between the parties, including
27-20 the creation of any type of special district otherwise allowed by
27-21 state law.
27-22 Sec. 43.0564. ARBITRATION REGARDING NEGOTIATIONS FOR
27-23 SERVICES. (a) If the municipality and the representatives of the
27-24 area proposed for annexation cannot reach an agreement for the
27-25 provision of services under Section 43.0562 or if the municipality
27-26 and the property owner representatives cannot reach an agreement
28-1 for the provision of services in lieu of annexation under Section
28-2 43.0563, either party by majority decision of the party's
28-3 representatives may request the appointment of an arbitrator to
28-4 resolve the service plan issues in dispute. The request must be
28-5 made in writing to the other party before the 60th day after the
28-6 date the service plan is completed under Section 43.056. The
28-7 municipality may not annex the area under another section of this
28-8 chapter during the pendency of the arbitration proceeding or an
28-9 appeal from the arbitrator's decision.
28-10 (b) The parties to the dispute may agree on the appointment
28-11 of an arbitrator. If the parties cannot agree on the appointment
28-12 of an arbitrator before the 11th business day after the date
28-13 arbitration is requested, the mayor of the municipality shall
28-14 immediately request a list of seven neutral arbitrators from the
28-15 American Arbitration Association or the Federal Mediation and
28-16 Conciliation Service or their successors in function. An
28-17 arbitrator included in the list must be a resident of this state
28-18 and may not be a resident of a county in which any part of the
28-19 municipality or any part of the district proposed for annexation is
28-20 located. The parties to the dispute may agree on the appointment
28-21 of an arbitrator included in the list. If the parties cannot agree
28-22 on the appointment of an arbitrator before the 11th business day
28-23 after the date the list is provided to the parties, each party or
28-24 the party's designee may alternately strike a name from the list.
28-25 The remaining person on the list shall be appointed as the
28-26 arbitrator. In this subsection, "business day" means a day other
29-1 than a Saturday, Sunday, or state or national holiday.
29-2 (c) The arbitrator shall:
29-3 (1) set a hearing to be held not later than the 10th
29-4 day after the date the arbitrator is appointed; and
29-5 (2) notify the parties to the arbitration in writing
29-6 of the time and place of the hearing not later than the eighth day
29-7 before the date of the hearing.
29-8 (d) The authority of the arbitrator is limited to issuing a
29-9 decision relating only to the service plan issues in dispute.
29-10 (e) The arbitrator may:
29-11 (1) receive in evidence any documentary evidence or
29-12 other information the arbitrator considers relevant;
29-13 (2) administer oaths; and
29-14 (3) issue subpoenas to require:
29-15 (A) the attendance and testimony of witnesses;
29-16 and
29-17 (B) the production of books, records, and other
29-18 evidence relevant to an issue presented to the arbitrator for
29-19 determination.
29-20 (f) Unless the parties to the dispute agree otherwise, the
29-21 arbitrator shall complete the hearing within two consecutive days.
29-22 The arbitrator shall permit each party one day to present evidence
29-23 and other information. The arbitrator, for good cause shown, may
29-24 schedule an additional hearing to be held not later than the
29-25 seventh day after the date of the first hearing. Unless otherwise
29-26 agreed to by the parties, the arbitrator must issue a decision in
30-1 writing and deliver a copy of the decision to the parties not later
30-2 than the 14th day after the date of the final hearing.
30-3 (g) Either party may appeal any provision of an arbitrator's
30-4 decision that exceeds the authority granted under Subsection (d) to
30-5 a district court in a county in which the area proposed for
30-6 annexation is located.
30-7 (h) If the municipality does not agree with the terms of the
30-8 arbitrator's decision, the municipality may not annex the area
30-9 proposed for annexation before the fifth anniversary of the date
30-10 of the arbitrator's decision.
30-11 (i) Except as provided by this subsection, the municipality
30-12 shall pay the cost of arbitration. If the arbitrator finds that
30-13 the request for arbitration submitted by the representatives of the
30-14 area proposed for annexation was groundless or requested in bad
30-15 faith or for the purposes of harassment, the arbitrator may require
30-16 the area proposed for annexation to pay all or part of the cost of
30-17 arbitration.
30-18 Sec. 43.0565. ARBITRATION REGARDING ENFORCEMENT OF SERVICE
30-19 PLAN. (a) A person who requests arbitration as provided by
30-20 Section 43.056(l) must request the appointment of an arbitrator in
30-21 writing to the municipality.
30-22 (b) Sections 43.0564(b), (c), and (e) apply to appointment
30-23 of an arbitrator and the conduct of an arbitration proceeding under
30-24 this section.
30-25 (c) In an arbitration proceeding under this section, the
30-26 municipality has the burden of proving that the municipality is in
31-1 compliance with the service plan requirements.
31-2 (d) If the arbitrator finds that the municipality has not
31-3 complied with the service plan requirements:
31-4 (1) the municipality may disannex the area before the
31-5 31st day after the date the municipality receives a copy of the
31-6 arbitrator's decision; and
31-7 (2) the arbitrator may:
31-8 (A) require the municipality to comply with the
31-9 service plan in question before a reasonable date specified by the
31-10 arbitrator if the municipality does not disannex the area;
31-11 (B) require the municipality to refund to the
31-12 landowners of the annexed area money collected by the municipality
31-13 from those landowners for services to the area that were not
31-14 provided; and
31-15 (C) require the municipality to pay the costs of
31-16 arbitration, including the reasonable attorney's fees and
31-17 arbitration costs of the person requesting arbitration.
31-18 (e) If the arbitrator finds that the municipality has
31-19 complied with the service plan requirements, the arbitrator may
31-20 require the person requesting arbitration to pay all or part of the
31-21 cost of arbitration, including the reasonable attorney's fees of
31-22 the municipality.
31-23 Sec. 43.0566 [43.0561]. RELEASE OF EXTRATERRITORIAL
31-24 JURISDICTION BY GENERAL LAW MUNICIPALITY OVER CERTAIN TRACTS OF
31-25 LAND. (a) This section applies only to a tract of property that
31-26 is:
32-1 (1) 40 or more acres in size;
32-2 (2) located entirely in a county with a population of
32-3 more than 260,000; and
32-4 (3) located in the extraterritorial jurisdiction of a
32-5 general law municipality with a population of more than 1,000 but
32-6 less than 2,500 that provides water but not sewer services.
32-7 (b) The owner of a tract of land to which this section
32-8 applies that is adjacent to the corporate limits of another
32-9 municipality may petition the governing body of that other
32-10 municipality for annexation. On receipt of a petition, the
32-11 municipality may annex the area if the municipality agrees to a
32-12 service plan that provides both water and sewer services to the
32-13 tract not later than 3-1/2 years after the date of the annexation.
32-14 On annexation, the area is released from the extraterritorial
32-15 jurisdiction of the municipality described by Subsection (a)(3) and
32-16 becomes a part of the municipality agreeing to provide water and
32-17 sewer services.
32-18 (c) This section expires March 31, 1996, unless there is
32-19 litigation pending at that time involving the validity of the
32-20 annexation of a tract of land to which this section applies. If
32-21 litigation is pending, this section remains in effect until a court
32-22 enters a final judgment in the case.
32-23 Sec. 43.0567 [43.0565]. PROVISION OF WATER OR SEWER SERVICE
32-24 IN POPULOUS MUNICIPALITY. (a) The requirements of this section
32-25 are in addition to those prescribed by Section 43.056.
32-26 (b) A municipality with a population of more than 1.6 [1.5]
33-1 million that includes within its boundaries annexed areas without
33-2 water service, sewer service, or both:
33-3 (1) shall develop a service plan that:
33-4 (A) must identify developed tracts in annexed
33-5 areas of the municipality that do not have water service, sewer
33-6 service, or both and must provide a procedure for providing water
33-7 service, sewer service, or both to those developed tracts;
33-8 (B) must establish a timetable for providing
33-9 service based on a priority system that considers potential health
33-10 hazards, population density, the number of existing buildings, the
33-11 reasonable cost of providing service, and the desires of the
33-12 residents;
33-13 (C) must include a capital improvements plan
33-14 committing the necessary financing;
33-15 (D) may relieve the municipality from an
33-16 obligation to provide water service, sewer service, or both in an
33-17 area described in the service plan if a majority of the households
33-18 in the area sign a petition stating they do not want to receive the
33-19 services; and
33-20 (E) may require property owners to connect to
33-21 service lines constructed to serve their area;
33-22 (2) shall provide water service, sewer service, or
33-23 both to at least 75 percent of the residential buildings in annexed
33-24 areas of the municipality that did not have water service, sewer
33-25 service, or both on September 1, 1991;
33-26 (3) shall provide water service to each area annexed
34-1 before January 1, 1993, if the area or subdivision as described in
34-2 the service plan contains at least 25 residences without water
34-3 service, unless a majority of the households in the area state in a
34-4 petition that they do not want municipal water service; and
34-5 (4) is subject to the penalty prescribed by Section
34-6 5.235(n)(6), Water Code, for the failure to provide services.
34-7 SECTION 9. Chapter 43, Local Government Code, is amended by
34-8 adding Subchapter C-1 to read as follows:
34-9 SUBCHAPTER C-1. ANNEXATION PROCEDURE FOR AREAS EXEMPTED FROM
34-10 MUNICIPAL ANNEXATION PLAN
34-11 Sec. 43.061. APPLICABILITY. This subchapter applies to an
34-12 area proposed for annexation that is not required to be included in
34-13 a municipal annexation plan under Section 43.052.
34-14 Sec. 43.062. PROCEDURES APPLICABLE. (a) Sections 43.051,
34-15 43.054, 43.0545, 43.055, 43.0565, 43.0567, and 43.057 apply to the
34-16 annexation of an area to which this subchapter applies.
34-17 (b) This subsection applies only to an area described by
34-18 Section 43.052(h)(1). Before the 30th day before the date of the
34-19 first hearing required under Section 43.063, a municipality shall
34-20 give written notice of its intent to annex the area to:
34-21 (1) each property owner in an area proposed for
34-22 annexation, as indicated by the appraisal records furnished by the
34-23 appraisal district for each county in which the area is located;
34-24 (2) each public entity, as defined by Section 43.053,
34-25 or private entity that provides services in the area proposed for
34-26 annexation; and
35-1 (3) each railroad company that serves the municipality
35-2 and is on the municipality's tax roll if the company's right-of-way
35-3 is in the area proposed for annexation.
35-4 Sec. 43.063. ANNEXATION HEARING REQUIREMENTS. (a) Before a
35-5 municipality may institute annexation proceedings, the governing
35-6 body of the municipality must conduct two public hearings at which
35-7 persons interested in the annexation are given the opportunity to
35-8 be heard. The hearings must be conducted on or after the 40th day
35-9 but before the 20th day before the date of the institution of the
35-10 proceedings.
35-11 (b) At least one of the hearings must be held in the area
35-12 proposed for annexation if a suitable site is reasonably available
35-13 and more than 10 percent of the adults who are permanent residents
35-14 of the area file a written protest of the annexation with the
35-15 secretary of the municipality within 10 days after the date of the
35-16 publication of the notice required by this section. The protest
35-17 must state the name, address, and age of each protester who signs.
35-18 (c) The municipality must post notice of the hearings on the
35-19 municipality's Internet website if the municipality has an Internet
35-20 website and publish notice of the hearings in a newspaper of
35-21 general circulation in the municipality and in the area proposed
35-22 for annexation. The notice for each hearing must be published at
35-23 least once on or after the 20th day but before the 10th day before
35-24 the date of the hearing. The notice for each hearing must be
35-25 posted on the municipality's Internet website on or after the 20th
35-26 day but before the 10th day before the date of the hearing and must
36-1 remain posted until the date of the hearing. The municipality must
36-2 give additional notice by certified mail to each railroad company
36-3 that serves the municipality and is on the municipality's tax roll
36-4 if the company's right-of-way is in the area proposed for
36-5 annexation.
36-6 Sec. 43.064. PERIOD FOR COMPLETION OF ANNEXATION; EFFECTIVE
36-7 DATE. (a) The annexation of an area must be completed within 90
36-8 days after the date the governing body institutes the annexation
36-9 proceedings or those proceedings are void. Any period during which
36-10 the municipality is restrained or enjoined by a court from annexing
36-11 the area is not included in computing the 90-day period.
36-12 (b) Notwithstanding any provision of a municipal charter to
36-13 the contrary, the governing body of a municipality with a
36-14 population of 1.6 million or more may provide that an annexation
36-15 take effect on any date within 90 days after the date of the
36-16 adoption of the ordinance providing for the annexation.
36-17 Sec. 43.065. PROVISION OF SERVICES TO ANNEXED AREA.
36-18 (a) Before the publication of the notice of the first hearing
36-19 required under Section 43.063, the governing body of the
36-20 municipality proposing the annexation shall direct its planning
36-21 department or other appropriate municipal department to prepare a
36-22 service plan that provides for the extension of full municipal
36-23 services to the area to be annexed. The municipality shall provide
36-24 the services by any of the methods by which it extends the services
36-25 to any other area of the municipality.
36-26 (b) Sections 43.056(b)-(o) apply to the annexation of an
37-1 area to which this subchapter applies.
37-2 SECTION 10. Subchapter D, Chapter 43, Local Government Code,
37-3 is amended by adding Section 43.0712 to read as follows:
37-4 Sec. 43.0712. INVALIDATION OF ANNEXATION OF SPECIAL
37-5 DISTRICT; REIMBURSEMENT OF DEVELOPER. (a) If a municipality
37-6 enacts an ordinance to annex a special district and assumes control
37-7 and operation of utilities within the district, and the annexation
37-8 is invalidated by a final judgment of a court after all appeals
37-9 have been exhausted, the municipality is deemed, by enactment of
37-10 its annexation ordinance, to have acquired title to utilities owned
37-11 by a developer within the special district and is obligated to pay
37-12 the developer all amounts related to the utilities as provided in
37-13 Section 43.0715.
37-14 (b) Upon resumption of the functions of the special
37-15 district:
37-16 (1) the municipality shall succeed to the contractual
37-17 rights of the developer to be reimbursed by the special district
37-18 for the utilities the municipality acquires from the developer; and
37-19 (2) the special district shall resume the use of the
37-20 utilities acquired and paid for by the municipality and shall
37-21 thereafter acquire the utilities from the municipality and
37-22 reimburse the municipality for amounts the municipality paid the
37-23 developer. The payment to the municipality shall be governed by
37-24 the requirements of the Texas Natural Resource Conservation
37-25 Commission.
37-26 SECTION 11. Section 43.0751, Local Government Code, is
38-1 amended by amending Subsections (b) and (k) and adding Subsections
38-2 (o) and (p) to read as follows:
38-3 (b) The governing bodies of a municipality and a district
38-4 may [shall] negotiate and [may] enter into a written strategic
38-5 partnership agreement for the district by mutual consent. The
38-6 governing body of a municipality, on written request from a
38-7 district included in the municipality's annexation plan under
38-8 Section 43.052, shall negotiate and enter into a written strategic
38-9 partnership agreement with the district. A district included in a
38-10 municipality's annexation plan under Section 43.052:
38-11 (1) may not submit its written request before the date
38-12 of the second hearing required under Section 43.0561; and
38-13 (2) must submit its written request before the 61st
38-14 day after the date of the second hearing required under Section
38-15 43.0561 [bodies of the municipality and the district shall evidence
38-16 their intention to negotiate such an agreement by resolution, each
38-17 of which resolutions shall specify an expiration date if the other
38-18 governing body fails to adopt a resolution under this section on or
38-19 before the specified date. The governing body of a municipality
38-20 that has evidenced its intention by unexpired resolution to enter
38-21 into negotiations with a district for an agreement under this
38-22 section may not initiate proceedings to annex the district under
38-23 any other section of this code prior to the expiration of two years
38-24 after the adoption date of the resolution unless the municipality
38-25 has previously instituted annexation proceedings in granting
38-26 consent to the creation of the district prior to January 1, 1995].
39-1 (k) A municipality that has annexed all or part of a
39-2 district for limited purposes under this section may impose a
39-3 retail sales tax within the boundaries of the part of the district
39-4 that is annexed for limited purposes.
39-5 (o) If a municipality required to negotiate with a district
39-6 under this section and the requesting district fail to agree on
39-7 the terms of a strategic partnership agreement, either party may
39-8 seek binding arbitration of the issues relating to the agreement in
39-9 dispute under Section 43.0752.
39-10 (p) An agreement under this section:
39-11 (1) may not require the district to provide revenue to
39-12 the municipality solely for the purpose of obtaining an agreement
39-13 with the municipality to forgo annexation of the district; and
39-14 (2) must provide benefits to each party, including
39-15 revenue, services, and regulatory benefits, that must be reasonable
39-16 and equitable with regard to the benefits provided by the other
39-17 party.
39-18 SECTION 12. Subchapter D, Chapter 43, Local Government Code,
39-19 is amended by adding Section 43.0752 to read as follows:
39-20 Sec. 43.0752. ARBITRATION OF STRATEGIC PARTNERSHIP
39-21 AGREEMENT. (a) If the municipality and the district cannot reach
39-22 an agreement on the terms of a strategic partnership agreement
39-23 under Section 43.0751, either party may request the appointment of
39-24 an arbitrator to resolve the issues in dispute. The request must
39-25 be made in writing to the other party before the 60th day after the
39-26 date the district submits its written request for negotiations
40-1 under Section 43.0751(b). The municipality may not annex the
40-2 district under another section of this chapter during the pendency
40-3 of the arbitration proceeding or an appeal from the arbitrator's
40-4 decision.
40-5 (b) Sections 43.0564(b), (c), (e), (f), (g), and (h) apply
40-6 to appointment of an arbitrator and the conduct of an arbitration
40-7 proceeding under this section.
40-8 (c) The authority of the arbitrator is limited to
40-9 determining whether the offer of a party complies with Section
40-10 43.0751(p).
40-11 (d) If the arbitrator finds that an offer complies with
40-12 Section 43.0751(p), the arbitrator may issue a decision that
40-13 incorporates the offer as part of the strategic partnership
40-14 agreement.
40-15 (e) The municipality and the district shall equally pay the
40-16 costs of arbitration.
40-17 SECTION 13. Subsection (a), Section 43.121, Local Government
40-18 Code, is amended to read as follows:
40-19 (a) The governing body of a home-rule municipality with more
40-20 than 225,000 inhabitants[, if authorized under its home-rule
40-21 charter,] by ordinance may annex an area for the limited purposes
40-22 of applying its planning, zoning, health, and safety ordinances in
40-23 the area.
40-24 SECTION 14. Subsection (c), Section 43.141, Local Government
40-25 Code, is amended to read as follows:
40-26 (c) If the area is disannexed under this section, it may not
41-1 be annexed again within 10 [five] years after the date of the
41-2 disannexation. [If it is reannexed within seven years after the
41-3 date of the disannexation, a service plan for the area must be
41-4 implemented not later than one year after the date of the
41-5 reannexation.]
41-6 SECTION 15. Subchapter G, Chapter 43, Local Government Code,
41-7 is amended by adding Section 43.148 to read as follows:
41-8 Sec. 43.148. REFUND OF TAXES AND FEES. (a) If an area is
41-9 disannexed, the municipality disannexing the area shall refund to
41-10 the landowners of the area the amount of money collected by the
41-11 municipality in property taxes and fees from those landowners
41-12 during the period that the area was a part of the municipality less
41-13 the amount of money that the municipality spent for the direct
41-14 benefit of the area during that period.
41-15 (b) A municipality shall proportionately refund the amount
41-16 under Subsection (a) to the landowners according to a method to be
41-17 developed by the municipality that identifies each landowner's
41-18 approximate pro rata payment of the taxes and fees being refunded.
41-19 (c) A municipality required to refund money under this
41-20 section shall refund the money to current landowners in the area
41-21 not later than the 180th day after the date the area is disannexed.
41-22 Money that is not refunded within the period prescribed by this
41-23 subsection accrues interest at the rate of:
41-24 (1) six percent each year after the 180th day and
41-25 until the 210th day after the date the area is disannexed; and
41-26 (2) one percent each month after the 210th day after
42-1 the date the area is disannexed.
42-2 SECTION 16. Subchapter Z, Chapter 43, Local Government Code,
42-3 is amended by adding Sections 43.905 and 43.906 to read as follows:
42-4 Sec. 43.905. EFFECT OF ANNEXATION ON OPERATION OF SCHOOL
42-5 DISTRICT. (a) A municipality that proposes to annex an area shall
42-6 provide written notice of the proposed annexation to each public
42-7 school district located in the area proposed for annexation within
42-8 the period prescribed for publishing the notice of the first
42-9 hearing under Section 43.0561 or 43.063, as applicable.
42-10 (b) A notice to a public school district shall contain a
42-11 description of:
42-12 (1) the area within the district proposed for
42-13 annexation;
42-14 (2) any financial impact on the district resulting
42-15 from the annexation, including any changes in utility costs; and
42-16 (3) any proposal the municipality has to abate,
42-17 reduce, or limit any financial impact on the district.
42-18 (c) The municipality may not proceed with the annexation
42-19 unless the municipality provides the required notice.
42-20 (d) A municipality that has annexed any portion of an area
42-21 after December 1, 1996, and before September 1, 1999, in which a
42-22 school district has a facility shall grant a variance from the
42-23 municipality's building code for that facility if the facility does
42-24 not comply with the code.
42-25 (e) A municipality that, as a result of the annexation,
42-26 provides utility services to a school district facility may charge
43-1 the district for utility services at:
43-2 (1) the same rate that the district was paying before
43-3 the annexation; or
43-4 (2) a lower municipal rate.
43-5 (f) A rate set under Subsection (e) is effective until the
43-6 first day of the school district's fiscal year that begins after
43-7 the 90th day after the effective date of the annexation.
43-8 Sec. 43.906. VOTING RIGHTS AFTER ANNEXATION. (a) In
43-9 connection with an annexation or proposed annexation, a
43-10 municipality shall apply for preclearance under Section 5, Voting
43-11 Rights Act of 1965 (42 U.S.C. Section 1973c), of any voting change
43-12 resulting from the annexation or proposed annexation from the
43-13 United States Department of Justice not later than the 90th day
43-14 before the effective date of the annexation or the earliest date
43-15 permitted under federal law.
43-16 (b) Notwithstanding Section 276.006, Election Code, a
43-17 municipality that annexes an area may not prevent a qualified voter
43-18 residing in the area from voting in a regularly scheduled municipal
43-19 election for any reason if the municipality has obtained
43-20 preclearance of the voting change from the United States Department
43-21 of Justice.
43-22 SECTION 17. (a) This Act takes effect September 1, 1999.
43-23 (b) Each municipality shall adopt an annexation plan as
43-24 required by Section 43.052, Local Government Code, as amended by
43-25 this Act, on or before December 31, 1999, that becomes effective
43-26 December 31, 1999.
44-1 (c) Except as provided by Subsections (d) and (g) of this
44-2 section, the changes in law made by Sections 2 through 8 and 10
44-3 through 15 of this Act apply only to an annexation included in a
44-4 municipality's annexation plan prepared under Section 43.052, Local
44-5 Government Code, as amended by this Act. Except as provided by
44-6 Subsection (d) of this section, a municipality may continue to
44-7 annex any area during the period beginning December 31, 1999, and
44-8 ending December 31, 2002, under Chapter 43, Local Government Code,
44-9 as it existed immediately before September 1, 1999, if the area is
44-10 not included in the annexation plan, and the former law is
44-11 continued in effect for that purpose.
44-12 (d) The changes in law made by this Act in Sections 43.002,
44-13 43.054, 43.0545, 43.0546, 43.056(b), (c), (e), (f), (g), (l), (m),
44-14 (n), and (o), 43.0565, 43.0712, 43.0751, 43.121(a), 43.141(c),
44-15 43.148, 43.905, and 43.906, Local Government Code, as added or
44-16 amended by this Act, apply to the annexation of an area that is not
44-17 included in the municipality's annexation plan during the period
44-18 beginning December 31, 1999, and ending December 31, 2002, if the
44-19 first public hearing required as part of the annexation procedure
44-20 is conducted on or after September 1, 1999.
44-21 (e) The changes in law made by this Act in Sections 43.002,
44-22 43.054, 43.0545, 43.0546, 43.056(b), (c), (e), (f), (g), (l), (m),
44-23 (n), and (o), 43.0565, 43.0712, 43.121(a), 43.141(c), 43.148,
44-24 43.905, and 43.906, Local Government Code, as added or amended by
44-25 this Act, apply to the annexation of an area that is not required
44-26 to be included in a municipal annexation plan under Section 43.052,
45-1 Local Government Code, as amended by this Act, if the first hearing
45-2 notice required by Section 43.063, Local Government Code, as added
45-3 by this Act, is published on or after September 1, 1999.
45-4 (f) The change in law made by Section 1 of this Act applies
45-5 only to:
45-6 (1) an annexation included in a municipality's
45-7 annexation plan prepared under Section 43.052, Local Government
45-8 Code, as amended by this Act; and
45-9 (2) an annexation of an area that is not included in
45-10 the municipality's annexation plan during the period beginning
45-11 December 31, 1999, and ending December 31, 2002, if the first
45-12 hearing notice required by Section 43.052, Local Government Code,
45-13 as it existed immediately before September 1, 1999, is published on
45-14 or after that date.
45-15 (g) The change in law made by Section 43.0712, Local
45-16 Government Code, as added by this Act, applies to an annexation
45-17 that occurs before, on, or after the effective date of this Act.
45-18 SECTION 18. The importance of this legislation and the
45-19 crowded condition of the calendars in both houses create an
45-20 emergency and an imperative public necessity that the
45-21 constitutional rule requiring bills to be read on three several
45-22 days in each house be suspended, and this rule is hereby suspended.
S.B. No. 89
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 89 passed the Senate on
March 25, 1999, by a viva-voce vote; May 27, 1999, Senate refused
to concur in House amendments and requested appointment of
Conference Committee; May 28, 1999, House granted request of the
Senate; May 30, 1999, Senate adopted Conference Committee Report by
a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 89 passed the House, with
amendments, on May 25, 1999, by a non-record vote; May 28, 1999,
House granted request of the Senate for appointment of Conference
Committee; May 30, 1999, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor