1-1 By: Madla, Lindsay S.B. No. 89
1-2 (In the Senate - Filed December 11, 1998; January 26, 1999,
1-3 read first time and referred to Committee on Intergovernmental
1-4 Relations; March 22, 1999, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 5, Nays 0;
1-6 March 22, 1999, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 89 By: Madla
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to municipal annexation; providing penalties.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subchapter B, Chapter 42, Local Government Code,
1-13 is amended by adding Section 42.0225 to read as follows:
1-14 Sec. 42.0225. EXTRATERRITORIAL JURISDICTION AROUND CERTAIN
1-15 MUNICIPALLY OWNED PROPERTY. (a) This section applies only to an
1-16 area owned by a municipality that is:
1-17 (1) annexed by the municipality; and
1-18 (2) not contiguous to other territory of the
1-19 municipality.
1-20 (b) Notwithstanding Sections 42.021(2)-(5), the annexation
1-21 of the area expands the extraterritorial jurisdiction of the
1-22 municipality only to include the area located within one mile of
1-23 the boundaries of the annexed area.
1-24 (c) The extraterritorial jurisdiction of the municipality
1-25 does not expand following the annexation of territory located only
1-26 in the municipality's extraterritorial jurisdiction that is created
1-27 under Subsection (b).
1-28 SECTION 2. Subchapter A, Chapter 43, Local Government Code,
1-29 is amended by adding Section 43.002 to read as follows:
1-30 Sec. 43.002. CONTINUATION OF LAND USE. (a) A municipality
1-31 may not, after annexing an area, prohibit a person from:
1-32 (1) continuing to use land in the area in the manner
1-33 in which the land was being used on the date the annexation
1-34 proceedings were instituted if the land use was legal at that time;
1-35 or
1-36 (2) beginning to use land in the area in the manner
1-37 that was planned for the land before the 90th day before the
1-38 effective date of the annexation if:
1-39 (A) one or more licenses, certificates, permits,
1-40 approvals, or other forms of authorization by a governmental entity
1-41 were required by law for the planned land use; and
1-42 (B) a completed application for the initial
1-43 authorization was filed with the governmental entity before the
1-44 date the annexation proceedings were instituted.
1-45 (b) For purposes of this section, a completed application is
1-46 filed if the application includes all documents and other
1-47 information designated as required by the governmental entity in a
1-48 written notice to the applicant.
1-49 (c) This section does not prohibit a municipality from
1-50 imposing:
1-51 (1) a regulation relating to the location of sexually
1-52 oriented businesses as that term is defined by Section 243.002;
1-53 (2) a municipal ordinance, regulation, or other
1-54 requirement affecting colonias as that term is defined by Section
1-55 2306.581, Government Code;
1-56 (3) a regulation relating to preventing imminent
1-57 destruction of property or injury to persons;
1-58 (4) a regulation relating to public nuisances;
1-59 (5) a regulation relating to the use of fireworks; or
1-60 (6) a regulation relating to the discharge of
1-61 firearms.
1-62 SECTION 3. The heading to Subchapter C, Chapter 43, Local
1-63 Government Code, is amended to read as follows:
2-1 SUBCHAPTER C. ANNEXATION PROCEDURE FOR AREAS ANNEXED
2-2 UNDER MUNICIPAL ANNEXATION PLAN
2-3 SECTION 4. Sections 43.052 and 43.053, Local Government
2-4 Code, are amended to read as follows:
2-5 Sec. 43.052. MUNICIPAL ANNEXATION PLAN REQUIRED. (a) A
2-6 municipality may annex an area identified in the annexation plan
2-7 only as provided by this section.
2-8 (b) A municipality shall prepare an annexation plan that
2-9 specifically identifies annexations that may occur beginning on the
2-10 third anniversary of the date the annexation plan is adopted. The
2-11 municipality may amend the plan to specifically identify
2-12 annexations that may occur beginning on the third anniversary of
2-13 the date the plan is amended.
2-14 (c) At any time during which an area is included in a
2-15 municipality's annexation plan, another political subdivision,
2-16 including a municipal utility district or other special district
2-17 and excluding a county, independent school district, and emergency
2-18 services district, in which the area is located may not:
2-19 (1) reduce the tax rate applicable to the area;
2-20 (2) voluntarily transfer an asset without
2-21 consideration; or
2-22 (3) enter into a contract for services that extends
2-23 beyond the three-year annexation plan period.
2-24 (d) A municipality may amend its annexation plan at any time
2-25 to remove an area proposed for annexation. If, before the end of
2-26 the 18th month after the month an area is included in the
2-27 three-year annexation cycle, a municipality amends its annexation
2-28 plan to remove the area, the municipality may not amend the plan to
2-29 again include the area in its annexation plan until the first
2-30 anniversary of the date the municipality amended the plan to remove
2-31 the area. If, during or after the 18 months after the month an
2-32 area is included in the three-year annexation cycle, a municipality
2-33 amends its annexation plan to remove the area, the municipality may
2-34 not amend the plan to again include the area in its annexation plan
2-35 until the second anniversary of the date the municipality amended
2-36 the plan to remove the area.
2-37 (e) Before the 90th day after the date a municipality adopts
2-38 or amends an annexation plan under this section, the municipality
2-39 shall give written notice to:
2-40 (1) each property owner in the affected area, as
2-41 indicated by the appraisal records furnished by the appraisal
2-42 district for each county in which the affected area is located,
2-43 that the area has been included in or removed from the
2-44 municipality's annexation plan;
2-45 (2) each public entity, as defined by Section 43.053,
2-46 or private entity that provides services in the area proposed for
2-47 annexation; and
2-48 (3) [ANNEXATION HEARING REQUIREMENTS. (a) Before a
2-49 municipality may institute annexation proceedings, the governing
2-50 body of the municipality must conduct two public hearings at which
2-51 persons interested in the annexation are given the opportunity to
2-52 be heard. The hearings must be conducted on or after the 40th day
2-53 but before the 20th day before the date of the institution of the
2-54 proceedings.]
2-55 [(b) At least one of the hearings must be held in the area
2-56 proposed for annexation if more than 20 adult residents of the area
2-57 file a written protest of the annexation with the secretary of the
2-58 municipality within 10 days after the date of the publication of
2-59 the notice required by this section. The protest must state the
2-60 name, address, and age of each protester who signs.]
2-61 [(c) The municipality must publish notice of the hearings in
2-62 a newspaper of general circulation in the municipality and in the
2-63 area proposed for annexation. The notice for each hearing must be
2-64 published at least once on or after the 20th day but before the
2-65 10th day before the date of the hearing. The municipality must
2-66 give additional notice by certified mail to] each railroad company
2-67 that serves the municipality and is on the municipality's tax roll
2-68 if the company's right-of-way is in the area proposed for
2-69 annexation.
3-1 (f) This section does not apply to an area proposed for
3-2 annexation if:
3-3 (1) the area has a population of less than 250
3-4 permanent residents;
3-5 (2) the area will be annexed by vote or petition of
3-6 the qualified voters or property owners as provided by Subchapter
3-7 B;
3-8 (3) the area is the subject of an industrial district
3-9 contract under Section 42.044;
3-10 (4) the area is annexed under Section 43.026, 43.027,
3-11 43.029, or 43.031; or
3-12 (5) the municipality determines that the annexation of
3-13 the area is necessary to protect the public health or safety.
3-14 Sec. 43.053. INVENTORY OF SERVICES AND FACILITIES REQUIRED.
3-15 (a) In this section, "public entity" includes a municipality,
3-16 county, fire protection service provider, including a volunteer
3-17 fire department, emergency medical services provider, including a
3-18 volunteer emergency medical services provider, municipal utility
3-19 district, or water control and improvement district.
3-20 (b) After adopting an annexation plan or amending an
3-21 annexation plan to include additional areas under Section 43.052, a
3-22 municipality shall compile a comprehensive inventory of services
3-23 and facilities provided by public and private entities, directly or
3-24 by contract, in each area proposed for annexation. The inventory
3-25 of services and facilities must include all services and facilities
3-26 the municipality is required to provide or maintain following the
3-27 annexation.
3-28 (c) The municipality shall request, in the notice provided
3-29 under Section 43.052(e), the information necessary to compile the
3-30 inventory from each public or private entity that provides services
3-31 or facilities in each area proposed for annexation. The public or
3-32 private entity shall provide to the municipality the information
3-33 held by the entity that is necessary to compile the inventory not
3-34 later than the 90th day after the date the municipality requests
3-35 the information. The information provided under this subsection
3-36 must include the type of service provided, the method of service
3-37 delivery, and all information prescribed by Subsections (e) and
3-38 (f). If a service provider fails to provide the information
3-39 required by this subsection within the 90-day period, the
3-40 municipality may impose an administrative penalty of $200 for each
3-41 day the service provider is in violation of this subsection. The
3-42 municipality shall prescribe procedures to provide for due process
3-43 in the imposition of an administrative penalty under this
3-44 subsection.
3-45 (d) The information required in the inventory shall be based
3-46 on the services and facilities provided during the year preceding
3-47 the date the municipality adopted the annexation plan or amended
3-48 the annexation plan to include additional areas.
3-49 (e) For utility facilities, roads, drainage structures, and
3-50 other infrastructure provided or maintained by public or private
3-51 entities, the inventory must include:
3-52 (1) an engineer's report that describes the physical
3-53 condition of all infrastructure elements in the area; and
3-54 (2) a summary of capital, operational, and maintenance
3-55 expenditures for that infrastructure.
3-56 (f) For police, fire, and emergency medical services
3-57 provided by public or private entities, the inventory must include
3-58 for each service:
3-59 (1) the average dispatch and delivery time;
3-60 (2) a schedule of equipment, including vehicles;
3-61 (3) a staffing schedule that discloses the
3-62 certification and training levels of personnel; and
3-63 (4) a summary of operating and capital expenditures.
3-64 (g) The municipality shall complete the inventory and make
3-65 the inventory available for public inspection on or before the 60th
3-66 day after the municipality receives the required information from
3-67 the service providers under Subsection (c). [PERIOD FOR COMPLETION
3-68 OF ANNEXATION; EFFECTIVE DATE. (a) The annexation of an area must
3-69 be completed within 90 days after the date the governing body
4-1 institutes the annexation proceedings or those proceedings are
4-2 void. Any period during which the municipality is restrained or
4-3 enjoined by a court of competent jurisdiction from annexing the
4-4 area is not included in computing the 90-day period.]
4-5 [(b) Notwithstanding any provision of a municipal charter to
4-6 the contrary, the governing body of a municipality with a
4-7 population of 1.5 million or more may provide that an annexation
4-8 take effect on any date within 90 days after the date of the
4-9 adoption of the ordinance providing for the annexation.]
4-10 SECTION 5. Subchapter C, Chapter 43, Local Government Code,
4-11 is amended by adding Section 43.0545 to read as follows:
4-12 Sec. 43.0545. ANNEXATION OF CERTAIN ADJACENT AREAS. (a) A
4-13 municipality may not annex an area that is located in the
4-14 extraterritorial jurisdiction of the municipality only because the
4-15 area is contiguous to municipal territory that is less than 1,000
4-16 feet in width at its narrowest point.
4-17 (b) A municipality may not annex an area that is located in
4-18 the extraterritorial jurisdiction of the municipality only because
4-19 the area is contiguous to municipal territory that:
4-20 (1) was annexed before September 1, 1999; and
4-21 (2) was in the extraterritorial jurisdiction of the
4-22 municipality at the time of annexation only because the territory
4-23 was contiguous to municipal territory that was less than 1,000 feet
4-24 in width at its narrowest point.
4-25 (c) Subsections (a) and (b) do not apply to an area:
4-26 (1) completely surrounded by incorporated territory of
4-27 one or more municipalities;
4-28 (2) for which the owners of the area have requested
4-29 annexation by the municipality;
4-30 (3) that is owned by the municipality; or
4-31 (4) that is the subject of an industrial district
4-32 contract under Section 42.044.
4-33 (d) Subsection (b) does not apply if the minimum width of
4-34 the narrow territory described by Subsection (b)(2), following
4-35 subsequent annexation, is no longer less than 1,000 feet in width
4-36 at its narrowest point.
4-37 (e) For purposes of this section, roads, highways, rivers,
4-38 lakes, or other bodies of water are not included in computing the
4-39 1,000 foot distance unless the area annexed includes land in
4-40 addition to a road, highway, river, lake, or other body of water.
4-41 SECTION 6. Section 43.056, Local Government Code, is amended
4-42 to read as follows:
4-43 Sec. 43.056. PROVISION OF SERVICES TO ANNEXED AREA.
4-44 (a) Before the first day of the 10th month after the month in
4-45 which the inventory is prepared as provided by Section 43.053
4-46 [publication of the notice of the first hearing required under
4-47 Section 43.052], the governing body of the municipality proposing
4-48 the annexation shall direct its planning department or other
4-49 appropriate municipal department to prepare a service plan that
4-50 provides for the extension of full municipal services to the area
4-51 to be annexed. The municipality shall provide the services by any
4-52 of the methods by which it extends the services to any other area
4-53 of the municipality.
4-54 (b) The service plan must include a program under which the
4-55 municipality will provide full municipal services in the annexed
4-56 area no later than 2-1/2 [4 1/2] years after the effective date of
4-57 the annexation, in accordance with Subsection (e), unless certain
4-58 services cannot reasonably be provided within that period and the
4-59 municipality proposes a schedule for providing those services
4-60 [(d)]. If the municipality proposes a schedule to extend the
4-61 period for providing certain services, the schedule must provide
4-62 for the provision of full municipal services no later than 4-1/2
4-63 years after the effective date of the annexation. However, under
4-64 the program the municipality must provide the following services in
4-65 the area on [within 60 days after] the effective date of the
4-66 annexation of the area:
4-67 (1) police protection;
4-68 (2) fire protection;
4-69 (3) emergency medical services;
5-1 (4) solid waste collection;
5-2 (5) operation and [(4)] maintenance of water and
5-3 wastewater facilities in the annexed area that are not within the
5-4 service area of another water or wastewater utility;
5-5 (6) operation and [(5)] maintenance of roads and
5-6 streets, including road and street lighting;
5-7 (7) operation and [(6)] maintenance of parks,
5-8 playgrounds, and swimming pools; and
5-9 (8) operation and [(7)] maintenance of any other
5-10 publicly owned facility, building, or service.
5-11 [(b-1) The service plan of a municipality with a population
5-12 of 1.5 million or more must include a program under which the
5-13 municipality will provide full municipal services in the annexed
5-14 area no later than 4-1/2 years after the effective date of the
5-15 annexation, in accordance with Subsection (d). However, under the
5-16 program the municipality must:]
5-17 [(1) provide the following services in the area on and
5-18 after the effective date of the annexation of the area:]
5-19 [(A) police protection; and]
5-20 [(B) solid waste collection;]
5-21 [(2) provide the following services in the area within
5-22 30 days after the effective date of the annexation of the area, if
5-23 the services are provided through a contract between the
5-24 municipality and a service provider:]
5-25 [(A) emergency medical service; and]
5-26 [(B) fire protection; and]
5-27 [(3) provide the following services in the area within
5-28 60 days after the effective date of the annexation of the area:]
5-29 [(A) maintenance of water and wastewater
5-30 facilities in the annexed area that are not within the service area
5-31 of another water or wastewater utility;]
5-32 [(B) maintenance of roads and streets, including
5-33 road and street lighting;]
5-34 [(C) maintenance of parks, playgrounds, and
5-35 swimming pools;]
5-36 [(D) maintenance of any other publicly owned
5-37 facility, building, or service; and]
5-38 [(E) emergency medical service and fire
5-39 protection, if the services are provided by municipal personnel and
5-40 equipment.]
5-41 (c) For purposes of this section, "full municipal services"
5-42 means services funded in whole or in part by municipal taxation and
5-43 provided by the annexing municipality within its full-purpose
5-44 boundaries.
5-45 (d) A municipality with a population of 1.5 million or more
5-46 may provide all or part of the municipal services required under
5-47 the service plan by contracting with service providers. If the
5-48 municipality owns a water and wastewater utility, the municipality
5-49 shall, subject to this section, extend water and wastewater service
5-50 to any annexed area not within the service area of another water or
5-51 wastewater utility. If the municipality annexes territory included
5-52 within the boundaries of a municipal utility district or a water
5-53 control and improvement district, the municipality shall comply
5-54 with applicable state law relating to annexation of territory
5-55 within a municipal utility district or a water control and
5-56 improvement district. The service plan shall summarize the service
5-57 extension policies of the municipal water and wastewater utility.
5-58 (e) [(d)] The service plan must also include a program under
5-59 which the municipality will initiate after the effective date of
5-60 the annexation the acquisition or construction of capital
5-61 improvements necessary for providing municipal services adequate to
5-62 serve the area. The construction shall [begin within two years
5-63 after the effective date of the annexation of the area and shall]
5-64 be substantially completed within the period provided in the
5-65 service plan. The service plan may be amended to extend the period
5-66 for construction if the construction is proceeding with all
5-67 deliberate speed [4-1/2 years after that date]. The acquisition or
5-68 construction of the facilities shall be accomplished by purchase,
5-69 lease, or other contract or by the municipality succeeding to the
6-1 powers, duties, assets, and obligations of a conservation and
6-2 reclamation district as authorized or required by law. The
6-3 construction of the facilities shall be accomplished in a
6-4 continuous process and shall be completed as soon as reasonably
6-5 possible, consistent with generally accepted local engineering and
6-6 architectural standards and practices. However, the municipality
6-7 does not violate this subsection if the construction process is
6-8 interrupted for any reason by circumstances beyond the direct
6-9 control of the municipality. The requirement that construction of
6-10 capital improvements must be substantially completed within the
6-11 time period provided in the service plan [4-1/2 years] does not
6-12 apply to a development project or proposed development project
6-13 within an annexed area if the annexation of the area was initiated
6-14 by petition or request of the owners of land in the annexed area
6-15 and the municipality and the landowners have subsequently agreed in
6-16 writing that the development project within that area, because of
6-17 its size or projected manner of development by the developer, is
6-18 not reasonably expected to be completed within that period.
6-19 (f) [(e)] A service plan may not:
6-20 (1) require the creation of another political
6-21 subdivision;
6-22 (2) require a landowner in the area to fund the
6-23 capital improvements necessary to provide municipal services in a
6-24 manner inconsistent with Chapter 395 unless otherwise agreed to by
6-25 the landowner; or
6-26 (3) provide [fewer] services [or lower levels of
6-27 services] in the area in a manner that would have the effect of
6-28 reducing the level of fire and police protection and emergency
6-29 medical services provided within the corporate boundaries of the
6-30 municipality before annexation.
6-31 (g) If the annexed area had a lower level of services than
6-32 the level of services provided within the corporate boundaries of
6-33 the municipality before annexation, a service plan must provide the
6-34 annexed area with a level of services that is comparable to the
6-35 level of services available in other parts of the municipality with
6-36 land uses and population densities similar to those reasonably
6-37 contemplated or projected in the area. If the annexed area had a
6-38 level of services equal to the level of services provided within
6-39 the corporate boundaries of the municipality before annexation, a
6-40 service plan must maintain that same level of services. Except as
6-41 provided by this subsection, if the annexed area had a level of
6-42 services superior to the level of services provided within the
6-43 corporate boundaries of the municipality before annexation, a
6-44 service plan must provide the annexed area with a level of services
6-45 that is comparable to the level of services available in other
6-46 parts of the municipality with land use and population densities
6-47 similar to those reasonably contemplated or projected in the area.
6-48 If the annexed area had a level of services for operating and
6-49 maintaining the infrastructure of the area, including the
6-50 facilities described by Subsections (b)(5)-(8), superior to the
6-51 level of services provided within the corporate boundaries of the
6-52 municipality before annexation, a service plan must provide for the
6-53 operation and maintenance of the infrastructure of the annexed area
6-54 at a level of services that is equal or superior to that level of
6-55 services[:]
6-56 [(A) than were in existence in the area
6-57 immediately preceding the date of the annexation; or]
6-58 [(B) than are otherwise available in other parts
6-59 of the municipality with land uses and population densities similar
6-60 to those reasonably contemplated or projected in the area].
6-61 (h) [(f)] If only a part of the area to be annexed is
6-62 actually annexed, the governing body shall direct the department to
6-63 prepare a revised service plan for that part.
6-64 (i) [(g)] The proposed service plan must be made available
6-65 for public inspection and explained to the inhabitants of the area
6-66 at the public hearings held under Section 43.0561 [43.052]. The
6-67 plan may be amended through negotiation at the hearings, but the
6-68 provision of any service may not be deleted. On completion of the
6-69 public hearings, the service plan shall be attached to the
7-1 ordinance annexing the area and approved as part of the ordinance.
7-2 (j) [(h)] On approval by the governing body, the service
7-3 plan is a contractual obligation that is not subject to amendment
7-4 or repeal except that if the governing body determines at the
7-5 public hearings required by this subsection that changed conditions
7-6 or subsequent occurrences make the service plan unworkable or
7-7 obsolete, the governing body may amend the service plan to conform
7-8 to the changed conditions or subsequent occurrences. An amended
7-9 service plan must provide for services that are comparable to or
7-10 better than those established in the service plan before amendment.
7-11 Before any amendment is adopted, the governing body must provide an
7-12 opportunity for interested persons to be heard at public hearings
7-13 called and held in the manner provided by Section 43.0561 [43.052].
7-14 (k) [(i)] A service plan is valid for 10 years. Renewal of
7-15 the service plan is at the discretion of the municipality. A
7-16 person residing or owning land in an annexed area may enforce a
7-17 service plan by applying for a writ of mandamus not later than the
7-18 second anniversary of the date the person knew or should have known
7-19 that the municipality was not complying with the service plan. If
7-20 a writ of mandamus is applied for, the municipality has the burden
7-21 of proving that the services have been provided in accordance with
7-22 the service plan in question.
7-23 (l) If a court issues a [the] writ under Subsection (k), the
7-24 court:
7-25 (1) [municipality shall pay the person's costs and
7-26 reasonable attorney's fees in bringing the action. A writ issued
7-27 under this subsection] must provide the municipality the option of
7-28 disannexing the area within a reasonable period specified by the
7-29 court; [30 days]
7-30 (2) may require the municipality to comply with the
7-31 service plan in question before a reasonable date specified by the
7-32 court;
7-33 (3) may require the municipality to refund to the
7-34 landowners of the annexed area money collected by the municipality
7-35 from those landowners for services to the area that were not
7-36 provided;
7-37 (4) may assess a civil penalty against the
7-38 municipality, to be paid to the state in an amount as justice may
7-39 require, for the period in which the municipality is not in
7-40 compliance with the service plan;
7-41 (5) may require the parties to participate in
7-42 mediation; and
7-43 (6) may require the municipality to pay the person's
7-44 costs and reasonable attorney's fees in bringing the action for the
7-45 writ.
7-46 (m) [(j) A municipality that annexes an area shall provide
7-47 the area or cause the area to be provided with services in
7-48 accordance with the service plan for the area.]
7-49 [(k)] This section does not require that a uniform level of
7-50 full municipal services be provided to each area of the
7-51 municipality if the governing body of the municipality determines
7-52 that different characteristics of topography, land use, and
7-53 population density are considered a sufficient basis for providing
7-54 different levels of service. Nothing in this subsection modifies
7-55 the requirement under Subsection (g) for a service plan to provide
7-56 a level of services in an annexed area that is equal or superior to
7-57 the level of services provided within the corporate boundaries of
7-58 the municipality before annexation. To the extent of any conflict
7-59 between this subsection and Subsection (g), Subsection (g)
7-60 prevails.
7-61 SECTION 7. Subchapter C, Chapter 43, Local Government Code,
7-62 is amended by renumbering Section 43.0561 as Section 43.0566 and by
7-63 adding Sections 43.0561, 43.0562, 43.0563, and 43.0564 to read as
7-64 follows:
7-65 Sec. 43.0561. ANNEXATION HEARING REQUIREMENTS. (a) Before
7-66 a municipality may institute annexation proceedings, the governing
7-67 body of the municipality must conduct two public hearings at which
7-68 persons interested in the annexation are given the opportunity to
7-69 be heard. The hearings must be conducted not later than the 90th
8-1 day after the date the inventory is available for inspection.
8-2 (b) At least one of the hearings must be held in the area
8-3 proposed for annexation if a suitable site is reasonably available
8-4 and more than 20 adults who are permanent residents of the area
8-5 file a written protest of the annexation with the secretary of the
8-6 municipality within 10 days after the date of the publication of
8-7 the notice required by this section. The protest must state the
8-8 name, address, and age of each protester who signs.
8-9 (c) The municipality must publish notice of the hearings in
8-10 a newspaper of general circulation in the municipality and in the
8-11 area proposed for annexation. The notice for each hearing must be
8-12 published at least once on or after the 20th day but before the
8-13 10th day before the date of the hearing. The municipality must
8-14 give additional notice by certified mail to each railroad company
8-15 that serves the municipality and is on the municipality's tax roll
8-16 if the company's right-of-way is in the area proposed for
8-17 annexation.
8-18 Sec. 43.0562. NEGOTIATIONS REQUIRED. (a) After holding the
8-19 hearings as provided by Section 43.0561, the municipality and the
8-20 property owners of the area proposed for annexation shall negotiate
8-21 for the provision of services to the area after annexation or for
8-22 the provision of services to the area in lieu of annexation under
8-23 Section 43.0563.
8-24 (b) Except as provided by Subsection (c), the commissioners
8-25 court of the county in which the area proposed for annexation is
8-26 located shall select five representatives to negotiate with the
8-27 municipality for the provision of services to the area after
8-28 annexation. If the area proposed for annexation is located in more
8-29 than one county, the commissioners court of the county in which the
8-30 greatest number of residents reside shall select three
8-31 representatives to negotiate with the municipality, and the
8-32 commissioners courts of the remaining counties jointly shall select
8-33 two representatives to negotiate with the municipality.
8-34 (c) If a municipality proposes to annex a municipal utility
8-35 district, the governing body of the district shall negotiate with
8-36 the municipality for provision of services to the area after
8-37 annexation.
8-38 Sec. 43.0563. CONTRACTS FOR PROVISION OF SERVICES IN LIEU OF
8-39 ANNEXATION. (a) The governing body of a municipality may
8-40 negotiate and enter into a written agreement with representatives
8-41 designated under Section 43.0562 for the provision of services and
8-42 the funding of the services in the area. The agreement may also
8-43 include an agreement related to permissible land uses and
8-44 compliance with municipal ordinances.
8-45 (b) An agreement under this section is in lieu of annexation
8-46 by the municipality of the area.
8-47 (c) In negotiating an agreement under this section, the
8-48 parties may agree to:
8-49 (1) any term allowed under Section 42.044 or 43.0751,
8-50 regardless of whether the municipality or the area proposed for
8-51 annexation would have been able to agree to the term under Section
8-52 42.044 or 43.0751; and
8-53 (2) any other term to which both parties agree to
8-54 satisfactorily resolve any dispute between the parties, including
8-55 the creation of any type of special district otherwise allowed by
8-56 state law.
8-57 Sec. 43.0564. ARBITRATION REQUIRED. (a) If the
8-58 municipality and the representatives of the area proposed for
8-59 annexation cannot reach an agreement for the provision of services
8-60 under Section 43.0562 or 43.0563, either party by majority decision
8-61 of the party's representatives may request the appointment of an
8-62 arbitrator to resolve the service plan issues in dispute. The
8-63 request must be made in writing to the other party before the 60th
8-64 day after the date the service plan is completed under Section
8-65 43.056. The municipality may not annex the area under another
8-66 section of this chapter during the pendency of the arbitration
8-67 proceeding or an appeal from the arbitrator's decision.
8-68 (b) The parties to the dispute may agree on the appointment
8-69 of an arbitrator. If the parties cannot agree on the appointment
9-1 of an arbitrator before the 31st day after the date arbitration is
9-2 requested, the chief administrative district judge in a county with
9-3 jurisdiction over either party shall appoint a qualified person who
9-4 is not a resident or property owner of the municipality or the area
9-5 proposed for annexation to serve as arbitrator.
9-6 (c) The arbitrator shall:
9-7 (1) set a hearing to be held not later than the 10th
9-8 day after the date the arbitrator is appointed; and
9-9 (2) notify the parties to the arbitration in writing
9-10 of the time and place of the hearing not later than the eighth day
9-11 before the date of the hearing.
9-12 (d) The authority of the arbitrator is limited to issuing a
9-13 decision relating only to the service plan issues in dispute.
9-14 (e) The arbitrator may:
9-15 (1) receive in evidence any documentary evidence or
9-16 other information the arbitrator considers relevant;
9-17 (2) administer oaths; and
9-18 (3) issue subpoenas to require:
9-19 (A) the attendance and testimony of witnesses;
9-20 and
9-21 (B) the production of books, records, and other
9-22 evidence relevant to an issue presented to the arbitrator for
9-23 determination.
9-24 (f) The arbitrator shall complete the hearing within one
9-25 day. The arbitrator, for good cause shown, may schedule an
9-26 additional hearing to be held not later than the seventh day after
9-27 the date of the first hearing. Unless otherwise agreed to by the
9-28 parties, the arbitrator must issue a decision in writing and
9-29 deliver a copy of the decision to the parties not later than the
9-30 14th day after the date of the final hearing.
9-31 (g) Either party may appeal any provision of an arbitrator's
9-32 decision that exceeds the authority granted under Subsection (d) to
9-33 a district court in a county in which the area proposed for
9-34 annexation is located.
9-35 (h) If the municipality does not agree with the terms of the
9-36 arbitrator's decision, the municipality may not annex the area
9-37 proposed for annexation before the fifth anniversary of the date of
9-38 the arbitrator's decision.
9-39 (i) The municipality shall pay the cost of arbitration.
9-40 Sec. 43.0566 [43.0561]. RELEASE OF EXTRATERRITORIAL
9-41 JURISDICTION BY GENERAL LAW MUNICIPALITY OVER CERTAIN TRACTS OF
9-42 LAND. (a) This section applies only to a tract of property that
9-43 is:
9-44 (1) 40 or more acres in size;
9-45 (2) located entirely in a county with a population of
9-46 more than 260,000; and
9-47 (3) located in the extraterritorial jurisdiction of a
9-48 general law municipality with a population of more than 1,000 but
9-49 less than 2,500 that provides water but not sewer services.
9-50 (b) The owner of a tract of land to which this section
9-51 applies that is adjacent to the corporate limits of another
9-52 municipality may petition the governing body of that other
9-53 municipality for annexation. On receipt of a petition, the
9-54 municipality may annex the area if the municipality agrees to a
9-55 service plan that provides both water and sewer services to the
9-56 tract not later than 3 1/2 years after the date of the annexation.
9-57 On annexation, the area is released from the extraterritorial
9-58 jurisdiction of the municipality described by Subsection (a)(3) and
9-59 becomes a part of the municipality agreeing to provide water and
9-60 sewer services.
9-61 (c) This section expires March 31, 1996, unless there is
9-62 litigation pending at that time involving the validity of the
9-63 annexation of a tract of land to which this section applies. If
9-64 litigation is pending, this section remains in effect until a court
9-65 enters a final judgment in the case.
9-66 SECTION 8. Chapter 43, Local Government Code, is amended by
9-67 adding Subchapter C-1 to read as follows:
10-1 SUBCHAPTER C-1. ANNEXATION PROCEDURE FOR AREAS EXEMPTED FROM
10-2 MUNICIPAL ANNEXATION PLAN
10-3 Sec. 43.061. APPLICABILITY. This subchapter applies to an
10-4 area proposed for annexation that is not required to be included in
10-5 a municipal annexation plan under Section 43.052.
10-6 Sec. 43.062. PROCEDURES APPLICABLE. Sections 43.051,
10-7 43.054, 43.0545, 43.055, 43.0565, and 43.057 apply to the
10-8 annexation of an area to which this subchapter applies.
10-9 Sec. 43.063. ANNEXATION HEARING REQUIREMENTS. (a) Before a
10-10 municipality may institute annexation proceedings, the governing
10-11 body of the municipality must conduct two public hearings at which
10-12 persons interested in the annexation are given the opportunity to
10-13 be heard. The hearings must be conducted on or after the 40th day
10-14 but before the 20th day before the date of the institution of the
10-15 proceedings.
10-16 (b) At least one of the hearings must be held in the area
10-17 proposed for annexation if a suitable site is reasonably available
10-18 and more than 10 percent of the adults who are permanent residents
10-19 of the area file a written protest of the annexation with the
10-20 secretary of the municipality within 10 days after the date of the
10-21 publication of the notice required by this section. The protest
10-22 must state the name, address, and age of each protester who signs.
10-23 (c) The municipality must publish notice of the hearings in
10-24 a newspaper of general circulation in the municipality and in the
10-25 area proposed for annexation. The notice for each hearing must be
10-26 published at least once on or after the 20th day but before the
10-27 10th day before the date of the hearing. The municipality must
10-28 give additional notice by certified mail to each railroad company
10-29 that serves the municipality and is on the municipality's tax roll
10-30 if the company's right-of-way is in the area proposed for
10-31 annexation.
10-32 Sec. 43.064. PERIOD FOR COMPLETION OF ANNEXATION; EFFECTIVE
10-33 DATE. (a) The annexation of an area must be completed within 90
10-34 days after the date the governing body institutes the annexation
10-35 proceedings or those proceedings are void. Any period during which
10-36 the municipality is restrained or enjoined by a court of competent
10-37 jurisdiction from annexing the area is not included in computing
10-38 the 90-day period.
10-39 (b) Notwithstanding any provision of a municipal charter to
10-40 the contrary, the governing body of a municipality with a
10-41 population of 1.5 million or more may provide that an annexation
10-42 take effect on any date within 90 days after the date of the
10-43 adoption of the ordinance providing for the annexation.
10-44 Sec. 43.065. PROVISION OF SERVICES TO ANNEXED AREA.
10-45 (a) Before the publication of the notice of the first hearing
10-46 required under Section 43.063, the governing body of the
10-47 municipality proposing the annexation shall direct its planning
10-48 department or other appropriate municipal department to prepare a
10-49 service plan that provides for the extension of full municipal
10-50 services to the area to be annexed. The municipality shall provide
10-51 the services by any of the methods by which it extends the services
10-52 to any other area of the municipality.
10-53 (b) Sections 43.056(b)-(m) apply to the annexation of an
10-54 area to which this subchapter applies.
10-55 SECTION 9. Section 43.0751, Local Government Code, is
10-56 amended by amending Subsection (b) and adding Subsection (o) to
10-57 read as follows:
10-58 (b) The governing bodies of a municipality and a district
10-59 may [shall] negotiate and [may] enter into a written strategic
10-60 partnership agreement for the district by mutual consent. The
10-61 governing body of a municipality, on written request from a
10-62 district included in the municipality's annexation plan under
10-63 Section 43.052, shall negotiate and enter into a written strategic
10-64 partnership agreement with the district [bodies of the
10-65 municipality and the district shall evidence their intention to
10-66 negotiate such an agreement by resolution, each of which
10-67 resolutions shall specify an expiration date if the other governing
10-68 body fails to adopt a resolution under this section on or before
10-69 the specified date. The governing body of a municipality that has
11-1 evidenced its intention by unexpired resolution to enter into
11-2 negotiations with a district for an agreement under this section
11-3 may not initiate proceedings to annex the district under any other
11-4 section of this code prior to the expiration of two years after the
11-5 adoption date of the resolution unless the municipality has
11-6 previously instituted annexation proceedings in granting consent to
11-7 the creation of the district prior to January 1, 1995].
11-8 (o) If a municipality required to negotiate with a district
11-9 under this section and the requesting district fail to agree on the
11-10 terms of a strategic partnership agreement, either party, not later
11-11 than the 90th day after the date of the district's written request,
11-12 may seek binding arbitration of the issues relating to the
11-13 agreement in dispute under Section 43.0753. The governing body of
11-14 a municipality may not annex the district under another section of
11-15 this code during the pendency of the negotiations of the strategic
11-16 partnership agreement, the arbitration proceeding, or any appeal
11-17 from the arbitration award.
11-18 SECTION 10. Subsection (a), Section 43.121, Local Government
11-19 Code, is amended to read as follows:
11-20 (a) The governing body of a home-rule municipality with more
11-21 than 225,000 inhabitants[, if authorized under its home-rule
11-22 charter,] by ordinance may annex an area for the limited purposes
11-23 of applying its planning, zoning, health, and safety ordinances in
11-24 the area.
11-25 SECTION 11. Subsection (c), Section 43.141, Local Government
11-26 Code, is amended to read as follows:
11-27 (c) If the area is disannexed under this section, it may not
11-28 be annexed again within 10 [five] years after the date of the
11-29 disannexation. [If it is reannexed within seven years after the
11-30 date of the disannexation, a service plan for the area must be
11-31 implemented not later than one year after the date of the
11-32 reannexation.]
11-33 SECTION 12. Subchapter G, Chapter 43, Local Government Code,
11-34 is amended by adding Section 43.148 to read as follows:
11-35 Sec. 43.148. REFUND OF TAXES AND FEES. (a) If an area is
11-36 disannexed, the municipality disannexing the area shall refund to
11-37 the landowners of the area the amount of money collected by the
11-38 municipality in property taxes and fees from those landowners
11-39 during the period that the area was a part of the municipality less
11-40 the amount of money that the municipality spent for the direct
11-41 benefit of the area during that period.
11-42 (b) A municipality shall proportionately refund the amount
11-43 under Subsection (a) to the landowners according to a method to be
11-44 developed by the municipality that identifies each landowner's
11-45 approximate pro rata payment of the taxes and fees being refunded.
11-46 SECTION 13. Subchapter Z, Chapter 43, Local Government Code,
11-47 is amended by adding Section 43.905 to read as follows:
11-48 Sec. 43.905. EFFECT OF ANNEXATION ON OPERATION OF SCHOOL
11-49 DISTRICT. (a) A municipality that proposes to annex an area shall
11-50 provide written notice of the proposed annexation to each public
11-51 school district located in the area proposed to be annexed within
11-52 the time period prescribed for publishing the notice of the first
11-53 hearing under Section 43.0561 or 43.063, as applicable.
11-54 (b) A notice to a public school district shall contain a
11-55 description of:
11-56 (1) the area within the district proposed to be
11-57 annexed;
11-58 (2) any financial impact on the district resulting
11-59 from the annexation, including any changes in utility costs; and
11-60 (3) any proposal the municipality has to abate,
11-61 reduce, or limit any financial impact on the district.
11-62 (c) The municipality may not proceed with the annexation
11-63 unless the municipality provides the required notice.
11-64 (d) A municipality that has annexed any portion of an area
11-65 after December 1, 1996, and before September 1, 1999, in which a
11-66 school district has a facility shall grant a variance from the
11-67 municipality's building code for that facility if the facility does
11-68 not comply with the code. The municipality shall notify the
11-69 governing board of the school district in writing specifying the
12-1 building code variance granted by the municipality under this
12-2 subsection. The governing board of the school district shall
12-3 notify the municipality in writing specifying the actions the
12-4 governing board proposes to take regarding the variance granted.
12-5 SECTION 14. Subchapter A, Chapter 5, Property Code, is
12-6 amended by adding Section 5.011 to read as follows:
12-7 Sec. 5.011. SELLER'S DISCLOSURE REGARDING POTENTIAL
12-8 ANNEXATION. (a) A person who sells an interest in real property
12-9 in this state shall give to the purchaser of the property a written
12-10 notice that reads substantially similar to the following:
12-11 NOTICE REGARDING POSSIBLE ANNEXATION
12-12 If the property that is the subject of this
12-13 contract is located outside the limits of a
12-14 municipality, the property may now or later be included
12-15 in the extraterritorial jurisdiction of a municipality
12-16 and may now or later be subject to annexation by the
12-17 municipality. Each municipality maintains a map that
12-18 depicts its boundaries and extraterritorial
12-19 jurisdiction. To determine if the property is located
12-20 within a municipality's extraterritorial jurisdiction
12-21 or is likely to be located within a municipality's
12-22 extraterritorial jurisdiction, contact all
12-23 municipalities located in the general proximity of the
12-24 property for further information.
12-25 (b) The seller shall deliver the notice to the purchaser
12-26 before the date the executory contract binds the purchaser to
12-27 purchase the property. The notice may be given separately, as part
12-28 of the contract during negotiations, or as part of any other notice
12-29 the seller delivers to the purchaser.
12-30 (c) This section does not apply to a transfer:
12-31 (1) under a court order or foreclosure sale;
12-32 (2) by a trustee in bankruptcy;
12-33 (3) to a mortgagee by a mortgagor or successor in
12-34 interest or to a beneficiary of a deed of trust by a trustor or
12-35 successor in interest;
12-36 (4) by a mortgagee or a beneficiary under a deed of
12-37 trust who has acquired the land at a sale conducted under a power
12-38 of sale under a deed of trust or a sale under a court-ordered
12-39 foreclosure or has acquired the land by a deed in lieu of
12-40 foreclosure;
12-41 (5) by a fiduciary in the course of the administration
12-42 of a decedent's estate, guardianship, conservatorship, or trust;
12-43 (6) from one co-owner to another co-owner of an
12-44 undivided interest in the real property;
12-45 (7) to a spouse or a person in the lineal line of
12-46 consanguinity of the seller;
12-47 (8) to or from a governmental entity;
12-48 (9) of only a mineral interest, leasehold interest, or
12-49 security interest; or
12-50 (10) of real property that is located wholly within a
12-51 municipality's corporate boundaries.
12-52 (d) If the notice is delivered as provided by this section,
12-53 the seller has no duty to provide additional information regarding
12-54 the possible annexation of the property by a municipality.
12-55 (e) If an executory contract is entered into without the
12-56 seller providing the notice required by this section, the purchaser
12-57 may terminate the contract for any reason within the earlier of:
12-58 (1) seven days after the date the purchaser receives
12-59 the notice; or
12-60 (2) the date the transfer occurs.
12-61 SECTION 15. (a) This Act takes effect September 1, 1999,
12-62 except that Section 14 of this Act takes effect January 1, 2000.
12-63 (b) Each municipality shall adopt an annexation plan as
12-64 required by Section 43.052, Local Government Code, as amended by
12-65 this Act, on or before December 31, 1999, that becomes effective
12-66 December 31, 1999.
12-67 (c) Except as provided by Subsection (d) of this section,
12-68 the changes in law made by Sections 2 through 7 and 9 through 12 of
12-69 this Act apply only to an annexation included in a municipality's
13-1 annexation plan prepared under Section 43.052, Local Government
13-2 Code, as amended by this Act. Except as provided by Subsection (d)
13-3 of this section, a municipality may continue to annex any area
13-4 during the period beginning December 31, 1999, and ending December
13-5 31, 2002, under Chapter 43, Local Government Code, as it existed
13-6 immediately before September 1, 1999, if the area is not included
13-7 in the annexation plan, and the former law is continued in effect
13-8 for that purpose.
13-9 (d) The changes in law made by this Act in Sections 43.002,
13-10 43.0545, 43.056(b), (e), (f), (g), (k), (l), and (m), 43.121(a),
13-11 43.141(c), 43.148, and 43.905, Local Government Code, as added or
13-12 amended by this Act, apply to the annexation of an area that is not
13-13 included in the municipality's annexation plan during the period
13-14 beginning December 31, 1999, and ending December 31, 2002, if the
13-15 first hearing notice required by Section 43.052, Local Government
13-16 Code, as it existed immediately before September 1, 1999, is
13-17 published on or after that date.
13-18 (e) The changes in law made by this Act in Sections 43.002,
13-19 43.0545, 43.056(b), (e), (f), (g), (k), (l), and (m), 43.121(a),
13-20 43.141(c), 43.148, and 43.905, Local Government Code, as added or
13-21 amended by this Act, apply only to the annexation of an area that
13-22 is not required to be included in a municipal annexation plan under
13-23 Section 43.052, Local Government Code, as added by this Act, if the
13-24 first hearing notice required by Section 43.063, Local Government
13-25 Code, as added by this Act, is published on or after September 1,
13-26 1999.
13-27 (f) The change in law made by Section 1 of this Act applies
13-28 only to:
13-29 (1) an annexation included in a municipality's
13-30 annexation plan prepared under Section 43.052, Local Government
13-31 Code, as amended by this Act; and
13-32 (2) an annexation of an area that is not included in
13-33 the municipality's annexation plan during the period beginning
13-34 December 31, 1999, and ending December 31, 2002, if the first
13-35 hearing notice required by Section 43.052, Local Government Code,
13-36 as it existed immediately before September 1, 1999, is published on
13-37 or after that date.
13-38 (g) The change in law made by Section 14 of this Act applies
13-39 only to a transfer of property that occurs on or after January 1,
13-40 2000. For purposes of this section, a transfer of property occurs
13-41 before January 1, 2000, if the executory contract binding the
13-42 purchaser to purchase the property is executed before that date.
13-43 Property transferred before January 1, 2000, is covered by the law
13-44 in effect when the property was transferred, and the former law is
13-45 continued in effect for that purpose.
13-46 SECTION 16. The importance of this legislation and the
13-47 crowded condition of the calendars in both houses create an
13-48 emergency and an imperative public necessity that the
13-49 constitutional rule requiring bills to be read on three several
13-50 days in each house be suspended, and this rule is hereby suspended.
13-51 * * * * *