By Mowery, Geren, Crabb                               H.B. No. 2200
         77R4226 PAM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a revision of the procedures for municipal annexation. 
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 43.021, Local Government Code, is amended
 1-5     to read as follows:
 1-6           Sec. 43.021.  AUTHORITY OF [HOME-RULE] MUNICIPALITY TO ANNEX
 1-7     AREA AND TAKE OTHER ACTIONS REGARDING BOUNDARIES.  A  [home-rule]
 1-8     municipality may take the following actions according to rules as
 1-9     may be provided by the charter of the municipality and not
1-10     inconsistent with the procedural rules prescribed by this chapter:
1-11                 (1)  fix the boundaries of the municipality;
1-12                 (2)  extend the boundaries of the municipality and
1-13     annex area adjacent to the municipality; and
1-14                 (3)  exchange area with other municipalities.
1-15           SECTION 2. Sections 43.028(a) and (b), Local Government Code,
1-16     are amended to read as follows:
1-17           (a)  [This section applies only to the annexation of an area:]
1-18                 [(1)  that is one-half mile or less in width;]
1-19                 [(2)  that is contiguous to the annexing municipality;
1-20     and]
1-21                 [(3)  that is vacant and without residents or on which
1-22     fewer than three qualified voters reside.]
1-23           [(b)]  The owners of an [the] area contiguous to a
1-24     municipality may petition the governing body of the municipality in
 2-1     writing to annex the area.
 2-2           (b)  The petition must be signed by each owner of real
 2-3     property in the area.
 2-4           SECTION 3.  Section 43.029, Local Government Code, is amended
 2-5     to read as follows:
 2-6           Sec. 43.029.  AUTHORITY OF MUNICIPALITY [CERTAIN SMALL
 2-7     MUNICIPALITIES] TO ANNEX UNOCCUPIED AREA ON PETITION OF SCHOOL
 2-8     BOARD.  [(a)  This section applies only to a municipality with a
 2-9     population of:]
2-10                 [(1)  900 to 920;]
2-11                 [(2)  1,251 to 1,259; or]
2-12                 [(3)  3,944 to 3,964.]
2-13           [(b)  This section applies only to the annexation of an area
2-14     that is:]
2-15                 [(1)  contiguous to the annexing municipality; and]
2-16                 [(2)  vacant and without residents.]
2-17           [(c)]  The board of trustees of a public school occupying an
2-18     [the] area contiguous to a municipality may petition the governing
2-19     body of the municipality in writing to annex the area if the area
2-20     is vacant and without residents.  Sections 43.028(c)-(f) apply to
2-21     the petition and annexation under this section in the same manner
2-22     in which they apply to the petition and annexation under that
2-23     section.
2-24           SECTION 4. Sections 43.052(c), (f), and (h), Local Government
2-25     Code, are amended to read as follows:
2-26           (c)  A municipality shall prepare an annexation plan that
2-27     specifically identifies annexations that may occur beginning on the
 3-1     third anniversary of the date the annexation plan is adopted.  The
 3-2     municipality may amend the plan to specifically identify
 3-3     annexations that may occur beginning on the third anniversary of
 3-4     the date the plan is amended.  The plan must include a map of the
 3-5     areas proposed for annexation, including each county road and
 3-6     right-of-way that:
 3-7                 (1)  is exempt from ad valorem taxation; and
 3-8                 (2)  is within or contiguous to the boundaries of an
 3-9     area proposed for annexation.
3-10           (f)  Before the 20th [90th] day after the date a municipality
3-11     adopts or amends an annexation plan under this section, the
3-12     municipality shall give written notice to:
3-13                 (1)  each property owner in the affected area, as
3-14     indicated by the appraisal records furnished by the appraisal
3-15     district for each county in which the affected area is located,
3-16     that the area has been included in or removed from the
3-17     municipality's annexation plan;
3-18                 (2)  each public entity, as defined by Section 43.053,
3-19     or private entity that provides services in the area proposed for
3-20     annexation; and
3-21                 (3)  each railroad company that serves the municipality
3-22     and is on the municipality's tax roll if the company's right-of-way
3-23     is in the area proposed for annexation.
3-24           (h)  This section does not apply to an area proposed for
3-25     annexation if:
3-26                 (1)  [the area contains fewer than 100 separate tracts
3-27     of land on which one or more residential dwellings are located on
 4-1     each tract;]
 4-2                 [(2)  the area will be annexed by petition of more than
 4-3     50 percent of the real property owners in the area proposed for
 4-4     annexation or by vote or petition of the qualified voters or real
 4-5     property owners as provided by Subchapter B;]
 4-6                 [(3)]  the area is or was the subject of:
 4-7                       (A)  an industrial district contract under
 4-8     Section 42.044; or
 4-9                       (B)  a strategic partnership agreement under
4-10     Section 43.0751;
4-11                 (2) [(4)]  the area is located in a colonia, as that
4-12     term is defined by Section 2306.581, Government Code;
4-13                 (3) [(5)]  the area is annexed under Section 43.028
4-14     [43.026, 43.027], 43.029, or 43.031;
4-15                 (4) [(6)]  the area is located completely within the
4-16     boundaries of a closed military installation; or
4-17                 (5) [(7)]  the municipality determines that the
4-18     annexation of the area is necessary to protect the area proposed
4-19     for annexation or the municipality from:
4-20                       (A)  imminent destruction of property or injury
4-21     to persons; or
4-22                       (B)  a condition or use that constitutes a public
4-23     or private nuisance as defined by background principles of nuisance
4-24     and property law of this state.
4-25           SECTION 5. Subchapter C, Chapter 43, Local Government Code,
4-26     is amended by adding Sections 43.0521-43.0524 to read as follows:
4-27           Sec. 43.0521.  HEARING AFTER ADOPTION OR AMENDMENT OF PLAN.
 5-1     (a)  On or after the 20th day but before the 30th day after the
 5-2     date a municipality adopts or amends under Section 43.052 its
 5-3     annexation plan to include an area, the governing body of the
 5-4     municipality must conduct the first of two public hearings at which
 5-5     persons interested in the annexation are given the opportunity to
 5-6     be heard.  The second public hearing must be conducted on or after
 5-7     the 50th day but before the 60th day after the date the
 5-8     municipality adopts or amends its annexation plan to include the
 5-9     area.
5-10           (b)  The hearings must be held in the area proposed for
5-11     annexation.
5-12           (c)  The municipality must provide the following notices of
5-13     the first public hearing on or before the 10th day before the date
5-14     of the hearing:
5-15                 (1)  notice by continuous posting on the municipality's
5-16     Internet website, if the municipality has an Internet website,
5-17     until the date of the hearing;
5-18                 (2)  notice by publication at least once in a newspaper
5-19     of general circulation in the municipality and in the area proposed
5-20     for annexation;
5-21                 (3)  notice by posting in at least three conspicuous
5-22     public places in the area proposed for annexation;
5-23                 (4)  notice by first class mail sent to the county
5-24     judge of each county in which the area proposed for annexation is
5-25     located;
5-26                 (5)  notice, with the map described by Section
5-27     43.052(c) attached, by first class mail to each owner of real and
 6-1     personal property located in the area proposed for annexation as
 6-2     indicated by the appraisal records furnished by the appraisal
 6-3     district for each county in which the area proposed for annexation
 6-4     is located, if the owner's property would be subject to taxation by
 6-5     the municipality after annexation; and
 6-6                 (6)  notice by certified mail to each railroad company
 6-7     that serves the municipality and is on the municipality's tax roll
 6-8     if the company's right-of-way is in the area proposed for
 6-9     annexation.
6-10           (d)  The municipality must provide the following notices of
6-11     the second public hearing on or before the 10th day before the date
6-12     of the hearing:
6-13                 (1)  notice by continuous posting on the municipality's
6-14     Internet website, if the municipality has an Internet website,
6-15     until the date of the hearing; and
6-16                 (2)  notice by publication at least once in a newspaper
6-17     of general circulation in the municipality and in the area proposed
6-18     for annexation.
6-19           (e)  On or before the 30th day after the date a municipality
6-20     proposing an annexation submits a written request for tax records,
6-21     the chief appraiser for each appraisal district in which the area
6-22     proposed for annexation is located shall furnish to the
6-23     municipality the name and address of each owner of real and
6-24     personal property located in the area proposed for annexation and
6-25     the appraised value of the property.
6-26           Sec. 43.0522.  PETITION REQUIRED.  (a)  Except as provided by
6-27     Subsection (e), a municipality may not annex an area unless the
 7-1     municipality complies with the petition requirements of this
 7-2     section.
 7-3           (b)  During the period beginning on the date of the last
 7-4     hearing under Section 43.0521 and ending on the 30th day after the
 7-5     date of the last hearing under Section 43.0561, the municipality
 7-6     may circulate a written petition to obtain the consent of owners of
 7-7     real and personal property to the proposed annexation.
 7-8           (c)  The municipality may annex an area only if the
 7-9     municipality:
7-10                 (1)  obtains the signatures on the petition of:
7-11                       (A)  the owners of property constituting at least
7-12     one-half of the appraised value of real and personal property
7-13     located in the area proposed for annexation as determined under
7-14     Section 43.0523 that would be subject to taxation by the
7-15     municipality after annexation; and
7-16                       (B)  at least one-half of the owners of real and
7-17     personal property located in the area proposed for annexation as
7-18     determined under Section 43.0523 that would be subject to taxation
7-19     by the municipality after annexation;
7-20                 (2)  files the petition with the county clerk of each
7-21     county in which the area proposed for annexation is located; and
7-22                 (3)  submits a sworn affidavit with the petition
7-23     verifying that no part of the area proposed for annexation is
7-24     exempt from annexation by the municipality as provided by Section
7-25     43.052(e) or (g).
7-26           (d)  The municipality may not amend its annexation plan to
7-27     increase or reduce the area proposed for annexation after the
 8-1     petition begins to be circulated for signatures.
 8-2           (e)  This section does not apply if:
 8-3                 (1)  the area is annexed under Section 43.028 or
 8-4     43.029; or
 8-5                 (2)  the area is annexed for limited purposes under
 8-6     Subchapter F.
 8-7           Sec. 43.0523.  DETERMINATION OF NUMBER OF SIGNATURES
 8-8     REQUIRED.  (a)  For purposes of determining the number of
 8-9     signatures required under Section 43.0522(c)(1)(A), the appraised
8-10     value of the real and personal property located in the area
8-11     proposed for annexation is the appraised value as reflected in the
8-12     most recent appraisal records of the appraisal district for each
8-13     county in which the area proposed for annexation is located.
8-14           (b)  For purposes of determining the number of signatures
8-15     required under Section 43.0522(c)(1)(B), the number of owners of
8-16     real and personal property located in the area proposed for
8-17     annexation is determined as follows:
8-18                 (1)  the number of owners of real and personal property
8-19     located in the area proposed for annexation is the number of owners
8-20     as reflected in the most recent appraisal records of the appraisal
8-21     district for each county in which the area proposed for annexation
8-22     is located;
8-23                 (2)  if an undivided parcel of property is owned by
8-24     multiple owners, the owners are considered one owner; and
8-25                 (3)  if one person owns multiple parcels of property,
8-26     the person is considered one owner.
8-27           Sec. 43.0524.  PUBLIC INSPECTION OF ANNEXATION INFORMATION.
 9-1     All information required to be filed under this subchapter relating
 9-2     to a proposed annexation must be made available for public
 9-3     inspection.
 9-4           SECTION 6. Section 43.054(b), Local Government Code, is
 9-5     amended to read as follows:
 9-6           (b)  The prohibition established by Subsection (a) does not
 9-7     apply if:
 9-8                 (1)  the boundaries of the municipality are contiguous
 9-9     to the area on at least two sides;
9-10                 (2)  the annexation is initiated on the written
9-11     petition of the owners of the area under Section 43.028 or the
9-12     board of trustees of a public school under Section 43.029 [of a
9-13     majority of the qualified voters of the area]; or
9-14                 (3)  the area abuts or is contiguous to another
9-15     jurisdictional boundary.
9-16           SECTION 7. Section 43.0545(c), Local Government Code, is
9-17     amended to read as follows:
9-18           (c)  Subsections (a) and (b) do not apply to an area:
9-19                 (1)  completely surrounded by incorporated territory of
9-20     one or more municipalities;
9-21                 (2)  for which annexation is initiated on the written
9-22     petition of the owners of the area under Section 43.028 or the
9-23     board of trustees of a public school under Section 43.029 [have
9-24     requested annexation by the municipality];
9-25                 (3)  that is owned by the municipality; or
9-26                 (4)  that is the subject of an industrial district
9-27     contract under Section 42.044.
 10-1          SECTION 8. Section 43.0546(d), Local Government Code, is
 10-2    amended to read as follows:
 10-3          (d)  This section does not apply to territory:
 10-4                (1)  that is completely surrounded by municipal area;
 10-5                (2)  for which annexation is initiated on the written
 10-6    petition of the owners of the area under Section 43.028 or the
 10-7    board of trustees of a public school under Section 43.029 [have
 10-8    requested annexation by the municipality];
 10-9                (3)  within a district whose elected board of directors
10-10    has by a majority vote requested annexation; or
10-11                (4)  owned by the municipality[; or]
10-12                [(5)  that contains fewer than 50 inhabitants].
10-13          SECTION 9.  Section 43.055(a), Local Government Code, is
10-14    amended to read as follows:
10-15          (a)  In a calendar year, a municipality may not annex a total
10-16    area greater than 10 percent of the incorporated area of the
10-17    municipality as of January 1 of that year, plus any amount of area
10-18    carried over to that year under Subsection (b).  In determining the
10-19    total area annexed in a calendar year, an area annexed for limited
10-20    purposes is included, but an annexed area is not included if it is:
10-21                (1)  annexed under Section 43.028 or 43.029 [at the
10-22    request of a majority of the qualified voters of the area and the
10-23    owners of at least 50 percent of the land in the area]; or
10-24                (2)  owned by the municipality, a county, the state, or
10-25    the federal government and used for a public purpose[;]
10-26                [(3)  annexed at the request of at least a majority of
10-27    the qualified voters of the area; or]
 11-1                [(4)  annexed at the request of the owners of the
 11-2    area].
 11-3          SECTION 10.  Subchapter C, Chapter 43, Local Government Code,
 11-4    is amended by adding Sections 43.058 and 43.059 to read as follows:
 11-5          Sec. 43.058.  ZONING CLASSIFICATIONS.  (a)  A municipality
 11-6    that annexes area under Section 43.0522 and that has a
 11-7    comprehensive zoning ordinance applying to other parts of the
 11-8    municipality shall adopt zoning classifications for the annexed
 11-9    area that permit densities and uses no more restrictive than those
11-10    permitted in the area immediately before the annexation.
11-11          (b)  A subsequent change in zoning in the annexed area must
11-12    comply with the general procedures established by the municipality
11-13    for rezoning land.
11-14          Sec. 43.059.  SUIT TO CONTEST VALIDITY OF ANNEXATION.  (a)
11-15    The attorney general, a county or district attorney for the county
11-16    in which area annexed under this subchapter is located, a municipal
11-17    attorney, or another affected party may file suit in a district
11-18    court in a county in which the annexed area is located to contest
11-19    the validity of an annexation under this subchapter.  The suit must
11-20    be filed within 30 days after the date an ordinance annexing the
11-21    area is adopted.
11-22          (b)  If more than one person files suit under this section,
11-23    the suits shall be consolidated.
11-24          (c)  If a municipality other than the municipality annexing
11-25    the area presents evidence to the court demonstrating that the
11-26    municipality has actively pursued annexation of the area, the court
11-27    shall consider any oral or written agreements between the
 12-1    municipalities in making a determination under this section.
 12-2          SECTION 11. Section 43.062, Local Government Code, is amended
 12-3    to read as follows:
 12-4          Sec. 43.062.  PROCEDURES APPLICABLE.  [(a)]  Sections 43.051,
 12-5    43.054, 43.0545, 43.055, 43.0565, 43.0567, and 43.057 apply to the
 12-6    annexation of an area to which this subchapter applies.
 12-7          [(b)  This subsection applies only to an area described by
 12-8    Section 43.052(h)(1).  Before the 30th day before the date of the
 12-9    first hearing required under Section 43.063, a municipality shall
12-10    give written notice of its intent to annex the area to:]
12-11                [(1)  each property owner in an area proposed for
12-12    annexation, as indicated by the appraisal records furnished by the
12-13    appraisal district for each county in which the area is located;]
12-14                [(2)  each public entity, as defined by Section 43.053,
12-15    or private entity that provides services in the area proposed for
12-16    annexation; and]
12-17                [(3)  each railroad company that serves the
12-18    municipality and is on the municipality's tax roll if the company's
12-19    right-of-way is in the area proposed for annexation.]
12-20          SECTION 12. Section 43.072(b), Local Government Code, is
12-21    amended to read as follows:
12-22          (b)  A home-rule municipality having a common boundary with a
12-23    district subject to this section may annex the area of the district
12-24    if[:]
12-25                [(1)  the annexation is approved by a majority of the
12-26    qualified voters who vote on the question at an election held under
12-27    this section;]
 13-1                [(2)  the annexation is completed before the date that
 13-2    is one year after the date of the election; and]
 13-3                [(3)]  all the area of the district is annexed.
 13-4          SECTION 13.  Sections 43.101(c) and (d), Local Government
 13-5    Code, are amended to read as follows:
 13-6          (c)  [The area may be annexed without the consent of the
 13-7    owners or residents of the area.]
 13-8          [(d)]  The municipality may annex the area even if part of
 13-9    the area is outside the municipality's extraterritorial
13-10    jurisdiction or is narrower than the minimum width prescribed by
13-11    Section 43.054.  Section 43.055, which relates to the amount of
13-12    area a municipality may annex in a calendar year, does not apply to
13-13    the annexation.
13-14          SECTION 14.  Sections 43.102(c), (d), and (e), Local
13-15    Government Code, are amended to read as follows:
13-16          (c)  [The area may be annexed without the consent of the
13-17    owners or residents of the area.]
13-18          [(d)]  The municipality may annex the area even if the area
13-19    is outside the municipality's extraterritorial jurisdiction, is in
13-20    another municipality's extraterritorial jurisdiction, or is
13-21    narrower than the minimum width prescribed by Section 43.054.
13-22    Section 43.055, which relates to the amount of area a municipality
13-23    may annex in a calendar year, does not apply to the annexation.
13-24          (d) [(e)]  The annexation under this section of area outside
13-25    the extraterritorial jurisdiction of the annexing municipality does
13-26    not expand the extraterritorial jurisdiction of the municipality.
13-27          SECTION 15.  Section 43.103(a), Local Government Code, is
 14-1    amended to read as follows:
 14-2          (a)  A general-law municipality with a population of 500 or
 14-3    more may annex, by ordinance [and without the consent of any
 14-4    person], the part of a street, highway, alley, or other public or
 14-5    private way, including a railway line, spur, or roadbed, that is
 14-6    adjacent and runs parallel to the boundaries of the municipality.
 14-7          SECTION 16.  Section 43.105(a), Local Government Code, is
 14-8    amended to read as follows:
 14-9          (a)  A general-law municipality with a population of 984-986
14-10    or 4,540-4,545 may annex, by ordinance [and without the consent of
14-11    any person], a public street, highway, road, or alley adjacent to
14-12    the municipality.
14-13          SECTION 17.  Section 43.128, Local Government Code, is
14-14    amended to read as follows:
14-15          Sec. 43.128.  JUDICIAL REMEDY [REMEDIES]:  [FORCED ANNEXATION
14-16    OR] DISANNEXATION.  (a)  If the municipality fails to annex the
14-17    area for full  purposes as required by Section 43.127(a), any
14-18    affected person may petition the district court to compel [the
14-19    annexation of the area for full purposes or] the disannexation of
14-20    the area.  On finding that the municipality has failed to annex the
14-21    area as required by Section 43.127(a), the court shall enter an
14-22    order requiring the municipality [to annex the area for full
14-23    purposes or] to disannex the area.  If an area is disannexed, the
14-24    area may not be annexed again by the municipality for five years.
14-25          (b)  If the municipality fails to take the steps required by
14-26    Section 43.127(b), any affected person may petition the district
14-27    court to compel [the annexation of a particular area for full
 15-1    purposes or] the disannexation of the area.  On finding that the
 15-2    municipality has failed to take the steps required by Section
 15-3    43.127(b), the court shall enter an order requiring the
 15-4    municipality [to annex the area for full purposes or] to disannex
 15-5    the area.
 15-6          SECTION 18.  Sections 43.022, 43.023, 43.024, 43.025, 43.026,
 15-7    43.027, 43.030, 43.032, 43.033, 43.034, 43.052(i), 43.0566, and
 15-8    43.072(g)-(m), Local Government Code, are repealed.
 15-9          SECTION 19.  The changes in law made by this Act apply only
15-10    to an area included in a municipality's annexation plan under
15-11    Section 43.052, Local Government Code, as amended by this Act, on
15-12    or after the effective date of this Act.  An area included in a
15-13    municipality's annexation plan before the effective date of this
15-14    Act is governed by the law in effect immediately before the
15-15    effective date of this Act, and the former law is continued in
15-16    effect for that purpose.
15-17          SECTION 20.  This Act takes effect September 1, 2001.