By Madla S.B. No. 89
76R2556 PAM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to municipal annexation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter B, Chapter 42, Local Government Code,
1-5 is amended by adding Section 42.0225 to read as follows:
1-6 Sec. 42.0225. EXTRATERRITORIAL JURISDICTION AROUND CERTAIN
1-7 MUNICIPALLY OWNED PROPERTY. (a) This section applies only to an
1-8 area owned by a municipality that is:
1-9 (1) annexed by the municipality;
1-10 (2) not located in the extraterritorial jurisdiction
1-11 of the municipality before the annexation; and
1-12 (3) not contiguous to other territory of the
1-13 municipality.
1-14 (b) Notwithstanding Sections 42.021(2)-(5), the annexation
1-15 of the area expands the extraterritorial jurisdiction of the
1-16 municipality only to include the area located within one mile of
1-17 the boundaries of the annexed area.
1-18 (c) The extraterritorial jurisdiction of the municipality
1-19 does not expand following the annexation of territory located only
1-20 in the municipality's extraterritorial jurisdiction that is created
1-21 under Subsection (b).
1-22 SECTION 2. Subchapter A, Chapter 43, Local Government Code,
1-23 is amended by adding Section 43.002 to read as follows:
1-24 Sec. 43.002. CONTINUATION OF LAND USE. (a) A municipality
2-1 may not, after annexing an area, prohibit a person from:
2-2 (1) continuing to use land in the area in the manner
2-3 in which the land was being used on the date the annexation
2-4 proceedings were instituted if the land use was legal at that time;
2-5 or
2-6 (2) beginning to use land in the area in the manner
2-7 that was planned for the land before the 90th day before the
2-8 effective date of the annexation if:
2-9 (A) one or more licenses, certificates, permits,
2-10 approvals, or other forms of authorization by a governmental entity
2-11 were required by law for the planned land use; and
2-12 (B) a completed application for the initial
2-13 authorization was filed with the governmental entity before the
2-14 date the annexation proceedings were instituted.
2-15 (b) For purposes of this section, a completed application is
2-16 filed if the application includes all documents and other
2-17 information designated as required by the governmental entity in a
2-18 written notice to the applicant.
2-19 SECTION 3. Sections 43.052 and 43.053, Local Government
2-20 Code, are amended to read as follows:
2-21 Sec. 43.052. MUNICIPAL ANNEXATION PLAN REQUIRED. (a) A
2-22 municipality may annex an area identified in the annexation plan
2-23 only as provided by this section.
2-24 (b) A municipality shall prepare an annexation plan that
2-25 specifically identifies annexations that may occur beginning on the
2-26 third anniversary of the date the annexation plan is adopted. The
2-27 municipality may amend the plan to specifically identify
3-1 annexations that may occur beginning on the third anniversary of
3-2 the date the plan is amended.
3-3 (c) At any time during which an area is included in a
3-4 municipality's annexation plan, another political subdivision,
3-5 other than a county, in which the area is located may not:
3-6 (1) reduce the tax rate applicable to the area;
3-7 (2) voluntarily transfer an asset without
3-8 consideration;
3-9 (3) enter into a contract that extends beyond the
3-10 three-year annexation plan period; or
3-11 (4) incur a debt for which payments would extend
3-12 beyond the three-year annexation plan period.
3-13 (d) A municipality may amend its annexation plan at any time
3-14 to remove an area proposed for annexation. If, before the end of
3-15 the first year of the three-year annexation cycle, a municipality
3-16 amends its annexation plan to remove an area proposed for
3-17 annexation, the municipality may not amend the plan to again
3-18 include the area in its annexation plan until the first anniversary
3-19 of the date the municipality amended the plan to remove the area.
3-20 If, on or after the end of the first year and on or before the end
3-21 of the second year of the three-year annexation cycle, a
3-22 municipality amends its annexation plan to remove an area proposed
3-23 for annexation, the municipality may not amend the plan to again
3-24 include the area in its annexation plan until the second
3-25 anniversary of the date the municipality amended the plan to remove
3-26 the area. If, on or after the beginning of the third year of the
3-27 three-year annexation cycle, a municipality amends its annexation
4-1 plan to remove an area proposed for annexation, the municipality
4-2 may not amend the plan to again include the area in its annexation
4-3 plan until the fifth anniversary of the date the municipality
4-4 amended the plan to remove the area.
4-5 (e) Before the 31st day after the date a municipality adopts
4-6 or amends an annexation plan under this section, the municipality
4-7 shall give written notice to each property owner in the affected
4-8 area that the area has been included in or removed from the
4-9 municipality's annexation plan.
4-10 (f) This section does not apply to a municipality that
4-11 annexes an area under Sections 43.023-43.032. [ANNEXATION HEARING
4-12 REQUIREMENTS. (a) Before a municipality may institute annexation
4-13 proceedings, the governing body of the municipality must conduct
4-14 two public hearings at which persons interested in the annexation
4-15 are given the opportunity to be heard. The hearings must be
4-16 conducted on or after the 40th day but before the 20th day before
4-17 the date of the institution of the proceedings.]
4-18 [(b) At least one of the hearings must be held in the area
4-19 proposed for annexation if more than 20 adult residents of the area
4-20 file a written protest of the annexation with the secretary of the
4-21 municipality within 10 days after the date of the publication of
4-22 the notice required by this section. The protest must state the
4-23 name, address, and age of each protester who signs.]
4-24 [(c) The municipality must publish notice of the hearings in
4-25 a newspaper of general circulation in the municipality and in the
4-26 area proposed for annexation. The notice for each hearing must be
4-27 published at least once on or after the 20th day but before the
5-1 10th day before the date of the hearing. The municipality must
5-2 give additional notice by certified mail to each railroad company
5-3 that serves the municipality and is on the municipality's tax roll
5-4 if the company's right-of-way is in the area proposed for
5-5 annexation.]
5-6 Sec. 43.053. INVENTORY OF SERVICES AND FACILITIES REQUIRED.
5-7 (a) In this section, "public entity" includes a municipality,
5-8 municipal utility district, water district, volunteer fire
5-9 department, and volunteer emergency medical services provider.
5-10 (b) After adopting an annexation plan or amending an
5-11 annexation plan to include additional areas under Section 43.052, a
5-12 municipality shall compile a comprehensive inventory of services
5-13 and facilities provided by public and private entities, directly or
5-14 by contract, in each area proposed for annexation.
5-15 (c) Each public or private entity that provides services or
5-16 facilities in each area proposed for annexation shall provide to
5-17 the municipality proposing annexation all necessary information to
5-18 compile the inventory.
5-19 (d) The information required in the inventory shall be based
5-20 on the services and facilities provided during the year preceding
5-21 the date the municipality adopted the annexation plan or amended
5-22 the annexation plan to include additional areas.
5-23 (e) For utilities, roads, drainage structures, and other
5-24 infrastructure provided by public or private entities, the
5-25 inventory must include:
5-26 (1) an engineer's report that describes the physical
5-27 condition of all infrastructure elements in the area; and
6-1 (2) a summary of expenditures for that infrastructure.
6-2 (f) For police, fire, and emergency medical services
6-3 provided by public or private entities, the inventory must include
6-4 for each service:
6-5 (1) the average dispatch and delivery time;
6-6 (2) a schedule of equipment, including vehicles;
6-7 (3) a staffing schedule that discloses the
6-8 certification and training levels of personnel; and
6-9 (4) a summary of operating and capital expenditures.
6-10 (g) The municipality shall complete the inventory and make
6-11 the inventory available for public inspection before the 18th month
6-12 before the month in which the effective date of the annexation
6-13 occurs. [PERIOD FOR COMPLETION OF ANNEXATION; EFFECTIVE DATE.
6-14 (a) The annexation of an area must be completed within 90 days
6-15 after the date the governing body institutes the annexation
6-16 proceedings or those proceedings are void. Any period during which
6-17 the municipality is restrained or enjoined by a court of competent
6-18 jurisdiction from annexing the area is not included in computing
6-19 the 90-day period.]
6-20 [(b) Notwithstanding any provision of a municipal charter to
6-21 the contrary, the governing body of a municipality with a
6-22 population of 1.5 million or more may provide that an annexation
6-23 take effect on any date within 90 days after the date of the
6-24 adoption of the ordinance providing for the annexation.]
6-25 SECTION 4. Subchapter C, Chapter 43, Local Government Code,
6-26 is amended by adding Section 43.0545 to read as follows:
6-27 Sec. 43.0545. ANNEXATION OF CERTAIN ADJACENT AREAS. (a) A
7-1 municipality may not annex an area that is located in the
7-2 extraterritorial jurisdiction of the municipality only because the
7-3 area is contiguous to municipal territory that is less than 1,000
7-4 feet in width at its narrowest point.
7-5 (b) A municipality may not annex an area that is located in
7-6 the extraterritorial jurisdiction of the municipality only because
7-7 the area is contiguous to municipal territory that:
7-8 (1) was annexed before September 1, 1999; and
7-9 (2) was in the extraterritorial jurisdiction of the
7-10 municipality at the time of annexation only because the territory
7-11 was contiguous to municipal territory that was less than 1,000 feet
7-12 in width at its narrowest point.
7-13 (c) Subsections (a) and (b) do not apply to an area:
7-14 (1) completely surrounded by incorporated territory of
7-15 the municipality;
7-16 (2) for which the owners of the area have requested
7-17 annexation by the municipality; or
7-18 (3) that is owned by the municipality.
7-19 (d) Subsection (b) does not apply if the minimum width of
7-20 the narrow territory described by Subsection (b)(2), following
7-21 subsequent annexation, is no longer less than 1,000 feet in width
7-22 at its narrowest point.
7-23 (e) For purposes of this section, roads, highways, rivers,
7-24 lakes, or other bodies of water are not included in computing the
7-25 1,000 foot distance.
7-26 SECTION 5. Section 43.056, Local Government Code, is amended
7-27 to read as follows:
8-1 Sec. 43.056. PROVISION OF SERVICES TO ANNEXED AREA. (a)
8-2 Before the 90th day after the date the inventory is prepared as
8-3 provided by Section 43.053 [Before the publication of the notice of
8-4 the first hearing required under Section 43.052], the governing
8-5 body of the municipality proposing the annexation shall direct its
8-6 planning department or other appropriate municipal department to
8-7 prepare a service plan that provides for the extension of full
8-8 municipal services to the area to be annexed. The municipality
8-9 shall provide the services by any of the methods by which it
8-10 extends the services to any other area of the municipality.
8-11
8-12 (b) The service plan must include a program under which the
8-13 municipality will provide full municipal services in the annexed
8-14 area no later than 2-1/2 [4 1/2] years after the effective date of
8-15 the annexation, in accordance with Subsection (e) [(d)]. However,
8-16 under the program the municipality must provide the following
8-17 services in the area on [within 60 days after] the effective date
8-18 of the annexation of the area:
8-19 (1) police protection;
8-20 (2) fire protection;
8-21 (3) emergency medical services;
8-22 (4) solid waste collection;
8-23 (5) [(4)] maintenance of water and wastewater
8-24 facilities in the annexed area that are not within the service area
8-25 of another water or wastewater utility;
8-26 (6) [(5)] maintenance of roads and streets, including
8-27 road and street lighting;
9-1 (7) [(6)] maintenance of parks, playgrounds, and
9-2 swimming pools; and
9-3 (8) [(7)] maintenance of any other publicly owned
9-4 facility, building, or service.
9-5 [(b-1) The service plan of a municipality with a population
9-6 of 1.5 million or more must include a program under which the
9-7 municipality will provide full municipal services in the annexed
9-8 area no later than 4-1/2 years after the effective date of the
9-9 annexation, in accordance with Subsection (d). However, under the
9-10 program the municipality must:]
9-11 [(1) provide the following services in the area on and
9-12 after the effective date of the annexation of the area:]
9-13 [(A) police protection; and]
9-14 [(B) solid waste collection;]
9-15 [(2) provide the following services in the area within
9-16 30 days after the effective date of the annexation of the area, if
9-17 the services are provided through a contract between the
9-18 municipality and a service provider:]
9-19 [(A) emergency medical service; and]
9-20 [(B) fire protection; and]
9-21 [(3) provide the following services in the area within
9-22 60 days after the effective date of the annexation of the area:]
9-23 [(A) maintenance of water and wastewater
9-24 facilities in the annexed area that are not within the service area
9-25 of another water or wastewater utility;]
9-26 [(B) maintenance of roads and streets, including
9-27 road and street lighting;]
10-1 [(C) maintenance of parks, playgrounds, and
10-2 swimming pools;]
10-3 [(D) maintenance of any other publicly owned
10-4 facility, building, or service; and]
10-5 [(E) emergency medical service and fire
10-6 protection, if the services are provided by municipal personnel and
10-7 equipment.]
10-8 (c) For purposes of this section, "full municipal services"
10-9 means services funded in whole or in part by municipal taxation and
10-10 provided by the annexing municipality within its full-purpose
10-11 boundaries.
10-12 (d) A municipality with a population of 1.5 million or more
10-13 may provide all or part of the municipal services required under
10-14 the service plan by contracting with service providers. If the
10-15 municipality owns a water and wastewater utility, the municipality
10-16 shall, subject to this section, extend water and wastewater service
10-17 to any annexed area not within the service area of another water or
10-18 wastewater utility. If the municipality annexes territory included
10-19 within the boundaries of a municipal utility district or a water
10-20 control and improvement district, the municipality shall comply
10-21 with applicable state law relating to annexation of territory
10-22 within a municipal utility district or a water control and
10-23 improvement district. The service plan shall summarize the service
10-24 extension policies of the municipal water and wastewater utility.
10-25 (e) [(d)] The service plan must also include a program under
10-26 which the municipality will initiate the acquisition or
10-27 construction of capital improvements necessary for providing
11-1 municipal services adequate to serve the area. The construction
11-2 shall [begin within two years after the effective date of the
11-3 annexation of the area and shall] be substantially completed within
11-4 2-1/2 [4-1/2] years after the effective [that] date of the
11-5 annexation. The acquisition or construction of the facilities
11-6 shall be accomplished by purchase, lease, or other contract or by
11-7 the municipality succeeding to the powers, duties, assets, and
11-8 obligations of a conservation and reclamation district as
11-9 authorized or required by law. The construction of the facilities
11-10 shall be accomplished in a continuous process and shall be
11-11 completed as soon as reasonably possible, consistent with generally
11-12 accepted local engineering and architectural standards and
11-13 practices. However, the municipality does not violate this
11-14 subsection if the construction process is interrupted for any
11-15 reason by circumstances beyond the direct control of the
11-16 municipality. The requirement that construction of capital
11-17 improvements must be substantially completed within 2-1/2 [4-1/2]
11-18 years does not apply to a development project or proposed
11-19 development project within an annexed area if the annexation of the
11-20 area was initiated by petition or request of the owners of land in
11-21 the annexed area and the municipality and the landowners have
11-22 agreed in writing that the development project within that area,
11-23 because of its size or projected manner of development by the
11-24 developer, is not reasonably expected to be completed within that
11-25 period.
11-26 (f) [(e)] A service plan may not:
11-27 (1) require the creation of another political
12-1 subdivision;
12-2 (2) require a landowner in the area to fund the
12-3 capital improvements necessary to provide municipal services in a
12-4 manner inconsistent with Chapter 395 unless otherwise agreed to by
12-5 the landowner; or
12-6 (3) provide [fewer] services [or lower levels of
12-7 services] in the area in a manner that would have the effect of
12-8 reducing the level of services provided within the corporate
12-9 boundaries of the municipality before annexation.
12-10 (g) If the annexed area had a lower level of services than
12-11 the level of services provided within the corporate boundaries of
12-12 the municipality before annexation, a service plan must provide
12-13 the annexed area with a level of services that is comparable to the
12-14 level of services available in other parts of the municipality with
12-15 land uses and population densities similar to those reasonably
12-16 contemplated or projected in the area. If the annexed area had a
12-17 level of services equal to the level of services provided within
12-18 the corporate boundaries of the municipality before annexation, a
12-19 service plan must maintain that same level of services. Except as
12-20 provided by this subsection, if the annexed area had a level of
12-21 services superior to the level of services provided within the
12-22 corporate boundaries of the municipality before annexation, a
12-23 service plan must provide the annexed area with a level of services
12-24 that is comparable to the level of services available in other
12-25 parts of the municipality with land use and population densities
12-26 similar to those reasonably contemplated or projected in the area.
12-27 If the annexed area had a level of services for maintaining the
13-1 infrastructure of the area superior to the level of services
13-2 provided within the corporate boundaries of the municipality
13-3 before annexation, a service plan must maintain the infrastructure
13-4 of the annexed area at a level of services that is equal or
13-5 superior to that level of services[:]
13-6 [(A) than were in existence in the area
13-7 immediately preceding the date of the annexation; or]
13-8 [(B) than are otherwise available in other parts
13-9 of the municipality with land uses and population densities similar
13-10 to those reasonably contemplated or projected in the area].
13-11 (h) [(f)] If only a part of the area to be annexed is
13-12 actually annexed, the governing body shall direct the department to
13-13 prepare a revised service plan for that part.
13-14 (i) [(g)] The proposed service plan must be made available
13-15 for public inspection and explained to the inhabitants of the area
13-16 at the public hearings held under Section 43.0561 [43.052]. The
13-17 plan may be amended through negotiation at the hearings, but the
13-18 provision of any service may not be deleted. On completion of the
13-19 public hearings, the service plan shall be attached to the
13-20 ordinance annexing the area and approved as part of the ordinance.
13-21 (j) [(h)] On approval by the governing body, the service
13-22 plan is a contractual obligation that is not subject to amendment
13-23 or repeal except that if the governing body determines at the
13-24 public hearings required by this subsection that changed conditions
13-25 or subsequent occurrences make the service plan unworkable or
13-26 obsolete, the governing body may amend the service plan to conform
13-27 to the changed conditions or subsequent occurrences. An amended
14-1 service plan must provide for services that are comparable to or
14-2 better than those established in the service plan before amendment.
14-3 Before any amendment is adopted, the governing body must provide an
14-4 opportunity for interested persons to be heard at public hearings
14-5 called and held in the manner provided by Section 43.0561 [43.052].
14-6 (k) [(i)] A service plan is valid for 10 years. Renewal of
14-7 the service plan is at the discretion of the municipality. A
14-8 person residing in an annexed area may enforce a service plan by
14-9 applying for a writ of mandamus. If a writ of mandamus is applied
14-10 for, the municipality has the burden of proving that the services
14-11 have been provided in accordance with the service plan in question.
14-12 (l) If a court issues a [the] writ under Subsection (k), the
14-13 court [municipality shall pay the person's costs and reasonable
14-14 attorney's fees in bringing the action. A writ issued under this
14-15 subsection] must provide the municipality the option of disannexing
14-16 the area within 30 days and may provide for other remedies,
14-17 including:
14-18 (1) requiring the municipality to comply with the
14-19 service plan in question before a date certain;
14-20 (2) requiring the municipality to refund to the
14-21 landowners of the annexed area money collected by the municipality
14-22 from those landowners for services to the area that were not
14-23 provided;
14-24 (3) assessing a civil penalty against the
14-25 municipality, to be paid to the state in an amount as justice may
14-26 require, for the period in which the municipality is not in
14-27 compliance with the service plan; and
15-1 (4) requiring the municipality to pay the person's
15-2 costs and reasonable attorney's fees in bringing the action for the
15-3 writ.
15-4 (m) [(j)] A municipality that annexes an area shall provide
15-5 the area or cause the area to be provided with services in
15-6 accordance with the service plan for the area.
15-7 (n) [(k)] This section does not require that a uniform level
15-8 of full municipal services be provided to each area of the
15-9 municipality if the governing body of the municipality determines
15-10 that different characteristics of topography, land use, and
15-11 population density are considered a sufficient basis for providing
15-12 different levels of service. A person aggrieved by a determination
15-13 made by the governing body of a municipality under this subsection
15-14 may:
15-15 (1) submit the determination for arbitration as agreed
15-16 by the aggrieved party and the governing body of the municipality;
15-17 or
15-18 (2) request review of the decision by a district court
15-19 in any county in which all or part of the annexed area is located.
15-20 SECTION 6. Subchapter C, Chapter 43, Local Government Code,
15-21 is amended by renumbering Section 43.0561 as Section 43.0564 and by
15-22 adding Sections 43.0561, 43.0562, and 43.0563 to read as follows:
15-23 Sec. 43.0561. ANNEXATION HEARING REQUIREMENTS. (a) Before
15-24 a municipality may institute annexation proceedings, the governing
15-25 body of the municipality must conduct two public hearings at which
15-26 persons interested in the annexation are given the opportunity to
15-27 be heard. The hearings must be conducted not later than the 60th
16-1 day after the date the service plan is completed.
16-2 (b) At least one of the hearings must be held in the area
16-3 proposed for annexation if more than 20 adult residents of the area
16-4 file a written protest of the annexation with the secretary of the
16-5 municipality within 10 days after the date of the publication of
16-6 the notice required by this section. The protest must state the
16-7 name, address, and age of each protester who signs.
16-8 (c) The municipality must publish notice of the hearings in
16-9 a newspaper of general circulation in the municipality and in the
16-10 area proposed for annexation. The notice for each hearing must be
16-11 published at least once on or after the 20th day but before the
16-12 10th day before the date of the hearing. The municipality must
16-13 give additional notice by certified mail to each railroad company
16-14 that serves the municipality and is on the municipality's tax roll
16-15 if the company's right-of-way is in the area proposed for
16-16 annexation.
16-17 Sec. 43.0562. NEGOTIATIONS REQUIRED. (a) This section
16-18 applies only to the annexation of an area that has 250 or more
16-19 inhabitants.
16-20 (b) After holding the hearings as provided by Section
16-21 43.0561, the municipality shall negotiate with the property owners
16-22 of the area proposed for annexation for the provision of services
16-23 to the area after annexation.
16-24 (c) Except as provided by Subsection (d), the property
16-25 owners of the area proposed for annexation shall select by majority
16-26 vote no more than five representatives to negotiate with the
16-27 municipality for the provision of services to the area after
17-1 annexation.
17-2 (d) If a municipality proposes to annex a municipal utility
17-3 district, the governing body of the district shall represent the
17-4 property owners in the negotiations with the municipality.
17-5 Sec. 43.0563. ARBITRATION REQUIRED. (a) If the
17-6 municipality and the governing body of a municipal utility district
17-7 or the representatives of property owners cannot reach an agreement
17-8 under Section 43.0562, either party may request the appointment of
17-9 an arbitrator to resolve the dispute. The request must be made in
17-10 writing to the other party before the 91st day after the date of
17-11 the last hearing held under Section 43.0561.
17-12 (b) The parties to the dispute may agree on the appointment
17-13 of an arbitrator. If the parties cannot agree on the appointment
17-14 of an arbitrator before the 31st day after the date arbitration is
17-15 requested, the chief administrative district judge in a county with
17-16 jurisdiction over either party shall select by random drawing a
17-17 state visiting judge who is not a resident or property owner of the
17-18 municipality or the area proposed for annexation. Before the 61st
17-19 day after the date arbitration is requested, the visiting judge
17-20 shall appoint a qualified person who is not a resident or property
17-21 owner of the municipality or the area proposed for annexation to
17-22 serve as arbitrator.
17-23 (c) The arbitrator is limited to making a decision regarding
17-24 the proposed service plan's compliance with Section 43.056.
17-25 (d) The arbitrator must enter a decision regarding the
17-26 dispute before the 121st day after the date the first arbitration
17-27 hearing is held on the matter. The decision of the arbitrator is
18-1 binding.
18-2 (e) The municipality shall pay the cost of arbitration.
18-3 Sec. 43.0564 [43.0561]. RELEASE OF EXTRATERRITORIAL
18-4 JURISDICTION BY GENERAL LAW MUNICIPALITY OVER CERTAIN TRACTS OF
18-5 LAND. (a) This section applies only to a tract of property that
18-6 is:
18-7 (1) 40 or more acres in size;
18-8 (2) located entirely in a county with a population of
18-9 more than 260,000; and
18-10 (3) located in the extraterritorial jurisdiction of a
18-11 general law municipality with a population of more than 1,000 but
18-12 less than 2,500 that provides water but not sewer services.
18-13 (b) The owner of a tract of land to which this section
18-14 applies that is adjacent to the corporate limits of another
18-15 municipality may petition the governing body of that other
18-16 municipality for annexation. On receipt of a petition, the
18-17 municipality may annex the area if the municipality agrees to a
18-18 service plan that provides both water and sewer services to the
18-19 tract not later than 3 1/2 years after the date of the annexation.
18-20 On annexation, the area is released from the extraterritorial
18-21 jurisdiction of the municipality described by Subsection (a)(3) and
18-22 becomes a part of the municipality agreeing to provide water and
18-23 sewer services.
18-24 (c) This section expires March 31, 1996, unless there is
18-25 litigation pending at that time involving the validity of the
18-26 annexation of a tract of land to which this section applies. If
18-27 litigation is pending, this section remains in effect until a court
19-1 enters a final judgment in the case.
19-2 SECTION 7. Section 43.0751, Local Government Code, is
19-3 amended by amending Subsection (b) and adding Subsection (o) to
19-4 read as follows:
19-5 (b) The governing bodies of a municipality and a district
19-6 may [shall] negotiate and [may] enter into a written strategic
19-7 partnership agreement for the district by mutual consent. The
19-8 governing body of a municipality, on written request from a
19-9 district included in the municipality's annexation plan under
19-10 Section 43.052, shall negotiate and enter into a written strategic
19-11 partnership agreement with the district. [The governing bodies of
19-12 the municipality and the district shall evidence their intention to
19-13 negotiate such an agreement by resolution, each of which
19-14 resolutions shall specify an expiration date if the other governing
19-15 body fails to adopt a resolution under this section on or before
19-16 the specified date. The governing body of a municipality that has
19-17 evidenced its intention by unexpired resolution to enter into
19-18 negotiations with a district for an agreement under this section
19-19 may not initiate proceedings to annex the district under any other
19-20 section of this code prior to the expiration of two years after the
19-21 adoption date of the resolution unless the municipality has
19-22 previously instituted annexation proceedings in granting consent to
19-23 the creation of the district prior to January 1, 1995.]
19-24 (o) If a municipality required to negotiate with a district
19-25 under this section and the requesting district fail to agree on the
19-26 terms of a strategic partnership agreement, either party, not later
19-27 than the 90th day after the date of the district's written request,
20-1 may seek binding arbitration of the issues relating to the
20-2 agreement in dispute under Section 43.0753. The governing body of
20-3 a municipality may not annex the district under another section of
20-4 this code during the pendency of the negotiations of the strategic
20-5 partnership agreement, the arbitration proceeding, or any appeal
20-6 from the arbitration award.
20-7 SECTION 8. Subchapter D, Chapter 43, Local Government Code,
20-8 is amended by adding Sections 43.0752 and 43.0753 to read as
20-9 follows:
20-10 Sec. 43.0752. CONTRACTS WITH CERTAIN AFFECTED AREAS IN LIEU
20-11 OF ANNEXATION. (a) In this section, "community association" means
20-12 a homeowner's association, apartment or condominium association,
20-13 or other formally organized association of two or more persons
20-14 owning property in or living in a distinct geographic area
20-15 comprised of more than an acre that is proposed to be annexed by a
20-16 municipality.
20-17 (b) The governing body of a municipality, on written request
20-18 from a community association comprised of a geographic area
20-19 included in the municipality's annexation plan under Section 43.052
20-20 shall negotiate and enter into a written agreement with the
20-21 community association for the provision of services and the funding
20-22 of the services in the geographic area containing the community
20-23 association. The agreement may also include an agreement related
20-24 to permissible land uses and compliance with municipal ordinances.
20-25 An agreement under this section is in lieu of annexation by the
20-26 municipality of the distinct geographic area containing the
20-27 requesting community association.
21-1 (c) If more than one community association requests a
21-2 written agreement, the municipality shall negotiate an agreement
21-3 with each requesting community association.
21-4 (d) If a municipality proposes to annex a distinct
21-5 geographic area and the municipality is not required under
21-6 Subsection (b) to negotiate and enter an agreement applicable to
21-7 the area, the municipality may not annex the area unless it has
21-8 identified the specific area to be annexed and has provided each
21-9 person living in the area or owning property in the area notice of
21-10 the proposed annexation before the 31st day after the date the
21-11 municipality adopts or amends its annexation plan to include the
21-12 area. The notice under this subsection is in addition to any other
21-13 notice requirements of this chapter.
21-14 (e) A written request under Subsection (b) must be made by
21-15 a community association before the second anniversary of the date
21-16 the municipality adopts or amends its annexation plan to include
21-17 the area.
21-18 (f) In negotiating an agreement under this section, the
21-19 parties may agree to:
21-20 (1) any term allowed under Section 42.044 or 43.0751,
21-21 regardless of whether the municipality or the community association
21-22 would have been able to agree to the term under Section 42.044 or
21-23 43.0751; and
21-24 (2) any other term to which both parties agree to
21-25 satisfactorily resolve any dispute between the parties, including
21-26 the creation of any type of special district otherwise allowed by
21-27 state law.
22-1 (g) If a municipality and the community association fail to
22-2 agree on the terms of a written agreement under this section,
22-3 either party, not later than the 90th day after the date of the
22-4 community association's written request, may seek binding
22-5 arbitration under Section 43.0753.
22-6 (h) The governing body of a municipality may not annex the
22-7 geographic area containing the community association under another
22-8 section of this code during the pendency of the negotiation of an
22-9 agreement under this section, the arbitration proceeding, or any
22-10 appeal from the arbitration award.
22-11 Sec. 43.0753. ARBITRATION OF CERTAIN DISPUTES. (a) In this
22-12 section, "area proposed for annexation" means the geographic area
22-13 of a district or a community association included in a
22-14 municipality's annexation plan under Section 43.052.
22-15 (b) This section applies to the arbitration of disputes
22-16 arising under Section 43.0751 or 43.0752.
22-17 (c) Before the 31st day after the date of receipt of notice
22-18 that a party is seeking binding arbitration of a matter under this
22-19 section, all parties to the dispute shall meet and select a three
22-20 member arbitration tribunal. The tribunal shall consist of:
22-21 (1) one member selected by the governing body of the
22-22 municipality proposing annexation;
22-23 (2) one member selected by the district or community
22-24 association; and
22-25 (3) one neutral member selected by the other two
22-26 members.
22-27 (d) If the other two members of the tribunal do not select
23-1 the neutral member before the 31st day after the date of receipt of
23-2 the notice requesting arbitration or if any party has not selected
23-3 an arbitrator, the chief administrative district judge in any
23-4 county with jurisdiction over either party shall select, by a
23-5 random drawing, a visiting judge to select the remaining
23-6 arbitrator. The visiting judge, before the 11th day after the date
23-7 of the judge's appointment, shall select as an arbitrator any
23-8 qualified person who is not a resident of the county in which a
23-9 party to the arbitration is located.
23-10 (e) An arbitration under this section must conclude not
23-11 later than the 120th day after the date of the appointment of the
23-12 last arbitrator.
23-13 (f) The arbitration tribunal, in making an award under this
23-14 section, may fashion any remedy or apply any term allowed under
23-15 Section 43.0751 or 43.0752. The maximum length of any remedy or
23-16 other term that the tribunal may order is 15 years. The remedy or
23-17 other term may allow for the renewal of the remedy or term.
23-18 (g) The arbitration tribunal shall issue a decision on the
23-19 issue and shall issue an award, describing any proposed remedy or
23-20 other term before the 11th day after the date of the last
23-21 arbitration proceeding. If the arbitration award is accepted by
23-22 all parties, all the terms of the award are binding on all parties.
23-23 (h) If a municipality does not agree with the terms of an
23-24 arbitration award, the area proposed for annexation may not be
23-25 annexed by the municipality before the fifth anniversary of the
23-26 date of the arbitration tribunal's decision.
23-27 SECTION 9. Section 43.121(a), Local Government Code, is
24-1 amended to read as follows:
24-2 (a) The governing body of a home-rule municipality with more
24-3 than 225,000 inhabitants[, if authorized under its home-rule
24-4 charter,] by ordinance may annex an area for the limited purposes
24-5 of applying its planning, zoning, health, and safety ordinances in
24-6 the area.
24-7 SECTION 10. Section 43.141(c), Local Government Code, is
24-8 amended to read as follows:
24-9 (c) If the area is disannexed under this section, it may not
24-10 be annexed again within 10 [five] years after the date of the
24-11 disannexation. [If it is reannexed within seven years after the
24-12 date of the disannexation, a service plan for the area must be
24-13 implemented not later than one year after the date of the
24-14 reannexation.]
24-15 SECTION 11. Subchapter G, Local Government Code, is amended
24-16 by adding Section 43.148 to read as follows:
24-17 Sec. 43.148. REFUND OF TAXES AND FEES. (a) If an area is
24-18 disannexed, the municipality disannexing the area shall refund to
24-19 the landowners of the area the amount of money collected by the
24-20 municipality in property taxes and fees from those landowners
24-21 during the period that the area was a part of the municipality less
24-22 the amount of money that the municipality spent for the direct
24-23 benefit of the area during that period.
24-24 (b) A municipality shall proportionately refund the amount
24-25 under Subsection (a) to the landowners according to a method to be
24-26 developed by the municipality that identifies each landowner's
24-27 approximate pro rata payment of the taxes and fees being refunded.
25-1 SECTION 12. Subchapter A, Chapter 5, Property Code, is
25-2 amended by adding Section 5.0081 to read as follows:
25-3 Sec. 5.0081. SELLER'S DISCLOSURE REGARDING POTENTIAL
25-4 ANNEXATION. (a) A seller of residential real property that
25-5 includes not more than one dwelling unit located in this state
25-6 shall give to the purchaser of the property a written notice as
25-7 prescribed by this section.
25-8 (b) The notice must be executed and must, at a minimum, read
25-9 substantially similar to the following:
25-10 SELLER'S DISCLOSURE NOTICE REGARDING POTENTIAL
25-11 ANNEXATION CONCERNING THE PROPERTY AT (street address
25-12 and name of county in which the property is located.
25-13 However, if the property does not have a street
25-14 address, provide an alternate statement describing the
25-15 property's location.)
25-16 THIS NOTICE IS A DISCLOSURE REGARDING THE POTENTIAL FOR ANNEXATION
25-17 OF THE PROPERTY. PROPERTY IS SUBJECT TO MUNICIPAL ANNEXATION IF
25-18 THE PROPERTY IS INCLUDED IN A MUNICIPALITY'S ANNEXATION PLAN
25-19 PREPARED UNDER SECTION 43.052, LOCAL GOVERNMENT CODE.
25-20 The property _____ is ____ is not included in a municipality's
25-21 annexation plan prepared under Section 43.052, Local Government
25-22 Code.
25-23 If the property is included in a municipality's annexation plan
25-24 prepared under Section 43.052, Local Government Code, provide the
25-25 name of the municipality.
25-26 ______________________________ ______________________________
25-27 Date Signature of Seller
26-1 The undersigned purchaser hereby acknowledges receipt of the
26-2 foregoing notice.
26-3 ______________________________ ______________________________
26-4 Date Signature of Purchaser
26-5 (c) This section does not apply to a transfer:
26-6 (1) to a mortgagee by a mortgagor or successor in
26-7 interest or to a beneficiary of a deed of trust by a trustor or
26-8 successor in interest;
26-9 (2) from one co-owner to another co-owner;
26-10 (3) to a spouse of a transferor or to a person related
26-11 by consanguinity to a transferor;
26-12 (4) between spouses resulting from a decree of
26-13 dissolution of marriage or a decree of legal separation or from a
26-14 property settlement agreement incidental to the decree; or
26-15 (5) to a governmental entity.
26-16 (d) The seller shall deliver the notice to the purchaser on
26-17 or before the effective date of an executory contract binding the
26-18 purchaser to purchase the property. If the executory contract is
26-19 entered without the seller providing the notice required by this
26-20 section, the purchaser may terminate the contract for any reason
26-21 within seven days after the date of receiving the notice.
26-22 SECTION 13. (a) This Act takes effect September 1, 1999,
26-23 except that Section 12 of this Act takes effect February 1, 2000.
26-24 (b) Each municipality shall adopt an annexation plan as
26-25 required by Section 43.052, Local Government Code, as amended by
26-26 this Act, on or before December 31, 1999, that becomes effective
26-27 December 31, 1999.
27-1 (c) Except as provided by Subsection (d), the changes in law
27-2 made by Sections 2-11 of this Act apply only to an annexation
27-3 included in a municipality's annexation plan prepared under Section
27-4 43.052, Local Government Code, as amended by this Act. Except as
27-5 provided by Subsection (d), a municipality may continue to annex
27-6 any area during the period beginning December 31, 1999, and ending
27-7 December 31, 2002, under Chapter 43, Local Government Code, as it
27-8 existed immediately before September 1, 1999, if the area is not
27-9 included in the annexation plan, and the former law is continued in
27-10 effect for that purpose.
27-11 (d) The changes in law made by this Act in Sections 43.002,
27-12 43.0545, 43.056(b), (e), (f), (g), (k), (l), and (n), 43.121(a),
27-13 43.141(c), and 43.148, Local Government Code, as added or amended
27-14 by this Act, apply to the annexation of an area that is not
27-15 included in the municipality's annexation plan during the period
27-16 beginning December 31, 1999, and ending December 31, 2002, if the
27-17 first hearing notice required by Section 43.052, Local Government
27-18 Code, as it existed immediately before September 1, 1999, is
27-19 published on or after that date.
27-20 (e) The change in law made by Section 1 of this Act applies
27-21 only to:
27-22 (1) an annexation included in a municipality's
27-23 annexation plan prepared under Section 43.052, Local Government
27-24 Code, as amended by this Act; and
27-25 (2) an annexation of an area that is not included in
27-26 the municipality's annexation plan during the period beginning
27-27 December 31, 1999, and ending December 31, 2002, if the first
28-1 hearing notice required by Section 43.052, Local Government Code,
28-2 as it existed immediately before September 1, 1999, is published on
28-3 or after that date.
28-4 (f) The change in law made by Section 12 of this Act applies
28-5 only to a transfer of property that occurs on or after September 1,
28-6 1999. For purposes of this section, a transfer of property occurs
28-7 before September 1, 1999, if the executory contract binding the
28-8 purchaser to purchase the property is executed before that date.
28-9 Property transferred before September 1, 1999, is covered by the
28-10 law in effect when the property was transferred, and the former law
28-11 is continued in effect for that purpose.
28-12 SECTION 14. The importance of this legislation and the
28-13 crowded condition of the calendars in both houses create an
28-14 emergency and an imperative public necessity that the
28-15 constitutional rule requiring bills to be read on three several
28-16 days in each house be suspended, and this rule is hereby suspended.