C.S.H.B. 568 78(R)    BILL ANALYSIS


C.S.H.B. 568
By: Mowery
Land & Resource Management
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, municipalities have the authority to annex an area
without the consent of the residents of the area.  This type of
involuntary annexation deprives Texans of the right to voice their opinion
regarding their destiny because they have not had the opportunity to elect
the city councils that forcibly annex them. In the independent style of
great Texans, many of these people have purposely moved into an
unincorporated area so as not to be under the control of city governments.

C.S.H.B. 568 requires a municipality to obtain the consent of the voters
in an area to be annexed and in the annexing municipality prior to
annexation. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1.Amends Sec. 43.021, Local Government Code, to allow any
municipality to fix its boundaries, extend its boundaries, annex adjacent
area, and exchange area. 

SECTION 2.Amends Subchapter B, Chapter 43, Local Government Code, by
adding Sec. 43.0215 to require voter approval of full purpose and limited
purpose annexations as follows: 

Prohibits annexation unless approved by a majority of voters in the
municipality and either approved by a majority of voters in the area to be
annexed or following a petition to the governing body of the municipality
by a majority of the registered voters in the area to be annexed. 

Allows a vote only in the municipality if no qualified voters reside in
the area to be annexed. 

Binds residents in the area to be annexed to the acts and ordinances of
the municipality on the effective date of the annexation ordinance. 

Entitles residents of the area to be annexed to the rights and privileges
of a resident of the municipality on the effective date of the annexation
ordinance. 

Requires that full-purpose annexation elections be held on the first
uniform election date that falls on or after the 50th day following the
second public hearing required by 43.0561. 

Requires that limited-purpose annexation elections be held on the first
uniform election date that falls on or after the 50th day following the
institution of annexation proceedings. 

Requires that annexation elections be held in the same manner as general
elections in the municipality and that the municipality shall pay for the
elections. 

Prohibits a subsequent election on the question of annexation until the
corresponding uniform election date of the following year. 

Exempts from the requirements of this section annexations of area that the
municipality owns. 

Exempts from the requirements of this section mutually agreeable changes
in boundaries that are less than 1,000 feet in width by adjacent
municipalities. 

Requires that all qualified voters of a water control and improvement
district and a municipal utility district be allowed to vote on a limited
purpose annexation proposed by a municipality. 

SECTION 3.Amends Sec. 43.054(b), Local Government Code, to make conforming
changes.  

SECTION 4.Amends Sec. 43.0545(c), Local Government Code, to make
conforming changes. 

SECTION 5.Amends Sec. 43.0546(d), Local Government Code, to make
conforming changes. 

SECTION 6.Amends Sec. 43.055(a), Local Government Code, to make conforming
changes. 

SECTION 7.Amends Sec. 43.0712(a), Local Government Code, to make
conforming changes. 

SECTION 8.Amends Sec. 43.072(b), Local Government Code, to make conforming
changes. 

SECTION 9.Amends Sec. 43.103(a), Local Government Code, to make conforming
changes. 

SECTION 10.Amends Sec. 43.121(a), Local Government Code, to make
conforming changes. 

SECTION 11.Amends Sec. 43.125(a), Local Government Code, to make
conforming changes. 

SECTION 12.Amends Sec. 43.126, Local Government Code, to make conforming
changes. 

SECTION 13.Amends Sec. 43.129, Local Government Code, to make conforming
changes. 

SECTION 14.Amends Subchapter G, Chapter 43, Local Government Code, by
adding Sec. 43.1415 as follows: 

  Allows disannexation if approved by a majority of voters in the
municipality and in the area to be disannexed 

  Requires a disannexation election if the governing body of the
municipality is petitioned to disannex an area by a majority of the
registered voters in the area to be disannexed. Requires disannexation
following petition if approved by a majority of the voters in the
municipality. 

Requires that disannexation elections following a petition be held on the
first  uniform election date following verification of the petition by the
municipal secretary or clerk. Requires that the municipality pay for the
cost of the election. 

Prohibits the annexation of a disannexed area before the 10th anniversary
of the date of disannexation. 

Requires that a petition for disannexation be in writing, request the
disannexation, describe the area to be disannexed, have a plat or other
likeness of the area attached, and be presented to the secretary or clerk
of the municipality for verification. 

Requires that the disannexed area is not released from its pro rata share
of debt owed by the municipality and requires the municipality to continue
and collect property taxes in the disannexed area, at the same rate, until
its pro rata share is collected. Requires that the taxes imposed in the
area be charged only with the cost of imposing the taxes, and shall be
applied exclusively to the payment of the pro rata share of the
indebtedness. Allows the residents in the disannexed area to pay in full
their pro rata share of indebtedness at any time. 

Prohibits the disannexation of an area from a general-law municipality if
the disannexation will result in the municipality having less than one
square mile in area or less than one mile in diameter, measured from the
center of the original municipal boundaries in any direction. 

SECTION 15.Repealer. Repeals Local Government Code provisions as follows:

Sec. 43.022 (Voter Approval of Annexation by Home-Rule Municipality
Required Under Certain Circumstances). Conforming change. 

Sec. 43.023 (Authority of General-Law Municipality with Population of More
than 5,000 to Annex Area on Petition and Election of Area Voters).
Conforming change. 

Sec.  43.024 (Authority of Type A General-Law Municipality to Annex Area
on Request of Area Voters). Conforming change. 

Sec.  43.025 (Authority of Type B General-Law Municipality to Annex Area
on Request of Area Voters). Conforming change. 

Sec. 43.026 (Authority of Type A General-Law Municipality to Annex Area it
Owns). Conforming change. 

Sec.  43.027 (Authority of General-Law Municipality to Annex Navigable
Stream). Conforming change. 

Sec. 43.028 (Authority of Municipalities to Annex Sparsely Occupied Area
on Petition of Area Landowners). Conforming change.  

Sec. 43.029 (Authority of Certain Small Municipalities to Annex Unoccupied
Area on Petition of School Board). Conforming change. 

Sec.  43.030 (Authority of Municipality With Population of 74,000 to
99,700 in Urban County to Annex Small, Surrounded General-Law
Municipality). Conforming change. 

Sec.  43.031 (Authority of Adjacent Municipalities to Change Boundaries by
Agreement). Conforming change. 
 
Sec. 43.033 (Authority of General-Law Municipality to Annex Area).
Conforming change. 

Sec. 43.034 (Authority of General-Law Municipality to Annex Area; Certain
Municipalities). Conforming change. 

   Sec. 43.052(h) and (I) (Municipal Annexation Plan Required).

Sec. 43.071(f) (Authority to Annex Water or Sewer District). Conforming
change. 

Sec. 43.072(g)-(m) (Authority to Annex Municipal Utility District by
HomeRule Municipality). Conforming change. 
  
Sec. 43.101(c) (Annexation of Municipality Owned Reservoir by GeneralLaw
Municipality). Conforming change. 

Sec. 43.102(c) (Annexation of Municipally Owned Airport). Conforming
change. 

Sec. 43.141 (Disannexation for Failure to Provide Services). Conforming
change. 

Sec. 43.142 (Disannexation According to Municipal Charter in Home-Rule
Municipality).  Conforming change. 

Sec. 43.143 (Disannexation by Petition and Election in General-Law
Municipality). Conforming change. 

Sec. 43.144 (Disannexation of Sparsely Populated Area in General-Law
Municipality). Conforming change. 

Sec. 43.145 (Disannexation of Unimproved Area or Nontaxable Area in
Certain Municipalities). Conforming change. 

Subchapter C-1, Chapter 43, Local Government Code (Annexation Procedure
for Areas Exempted from Municipal Annexation Plan). Conforming Change. 

SECTION 16.Transition Provision as follows:

  Election provisions of Sec. 43.0215, Local Government Code, apply only
to annexations that are not final on the effective day of this Act.  

  Allows a municipality that has taken action to annex an area before the
effective date of this Act to hold an election on the question of
annexation on the later of the date prescribed by Sec. 43.0215(d) or (e),
Local Government Code, or the first uniform election date that falls on or
after the 50th day after the effective date of this Act. 

  The repeal of Sec. 43.052(h) and (I), and Subchapter C-1, Chapter 43,
Local Government Code, apply only to the annexation of an area for which
all parts of the statutory annexation process are begun on or after the
effective date of this Act. 

  Municipalities that annex an area under Subchapter C-1, Chapter 43,
Local Government Code, on or after the effective date of this Act shall
hold an election on the question of annexation as required by Section
43.0215, Local Government Code, on the later of the first uniform election
date that falls on or after the 50th day after the date of the second
public hearing required by  Section 43.063, Local Government Code, or the
first uniform election date that falls on or after the 50th day after the
effective date of this Act. 

  Annexation of an area under Subchapter C-1, Chapter 43, Local Government
Code, on or after the effective date of this Act must be completed within
90 days after the date of the election required by Section 43.0215, Local
Government Code. 

SECTION 17.Effective date.

EFFECTIVE DATE

September 1, 2003 or immediately if approved by two-thirds of all the
members elected to each house, as provided by Section 39, Article III,
Texas Constitution. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 568 allows any municipality to fix its boundaries, extend its
boundaries, annex adjacent area, and exchange area. H.B. 568 does not
alter the section of the Local Government Code that limits such actions to
home-rule municipalities. 

Both C.S.H.B. 568 and H.B. 568 require voter approval prior to annexation.
H.B. 568 separates the procedures for voter approval into two new sections
of Chapter 43 of the Local Government Code (one section for full-purpose
annexations and another section for limited-purpose annexations). C.S.H.B.
568 combines the procedures for voter approval of both full-purpose and
limited-purpose annexations into one new section.  

C.S.H.B. 568 prohibits annexation unless approved by a majority of voters
in the municipality and either approved by a majority of voters in the
area to be annexed or following a petition to the governing body of the
municipality by a majority of the registered voters in the area to be
annexed. Except for limited situations, H.B. 568 only prohibits annexation
unless approved by a majority of voters in both the municipality and in
the area to be annexed. 

C.S.H.B. 568 requires the municipality to order an election on the
question of annexing an area for full purposes on the first uniform
election date that falls on or after the 50th day after the date the
second public hearing required by Section 43.0561 is held. H.B. 568
requires the election to be held not later than the 50th day after the
date the second public hearing required by Section 43.0561 is held. H.B.
568 also exempts an election under this section from the requirements of
Sections 41.001(a) and (c), Election Code. 

C.S.H.B. 568 requires that limited-purpose annexation elections be held on
the first uniform election date that falls on or after the 50th day
following the institution of annexation proceedings. H.B. 568 requires
that elections be held during the 180 days preceding the date of the
institution of annexation proceedings. 

C.S.H.B. 568 binds residents in the area to be annexed to the acts and
ordinances of the municipality and entitles them to the rights and
privileges of a resident of the municipality on the effective date of the
annexation ordinance.  H.B. 568 has no such provisions. 

C.S.H.B. 568 requires that annexation elections be held in the same manner
as general elections in the municipality and that the municipality shall
pay for the elections. H.B. 568 has no such provisions. 

C.S.H.B. 568 prohibits a subsequent election on the question of annexation
until the corresponding uniform election date of the following year. H.B.
568 has no such provision. 

C.S.H.B. 568 exempts from the election requirements annexations of area
that the municipality owns. H.B. 568 has no such provision. 

 C.S.H.B. 568 exempts from the requirements of this section mutually
agreeable changes in boundaries that are less than 1,000 feet in width by
adjacent municipalities. H.B. 568 has no such provision. 

C.S.H.B. 568 requires that all qualified voters of a water control and
improvement district and a municipal utility district be allowed to vote
on a limited purpose annexation proposed by a municipality.  H.B. 568 has
no such provision. 

H.B. 568 amends Section 43.105(a), Local Government Code, to make
conforming changes. C.S.H.B. 568 does not alter that subsection. 

C.S.H.B. 568 amends Section 43.125(a), Local Government Code, to make
conforming changes. H.B. 568 does not alter that subsection. 

C.S.H.B. 568 amends Section 43.126, Local Government Code, to make
conforming changes. H.B. 568 does not alter that section. 

H.B. 568 amends Section 43.128, Local Government Code to allow a district
court upon petition by affected persons to require a municipality to
disannex an area that has not been annexed for full purposes according to
law. C.S.H.B. 568 does not alter that section. 

H.B. 568 amends Subsections 43.136(b) and (f), Local Government Code.
C.S.H.B. 568 does not alter those subsections. 

C.S.H.B. 568 allows disannexation if approved by a majority of voters in
the municipality and in the area to be disannexed. H.B. 568 requires
disannexation of an area if approved by a majority of voters in both the
area to be disannexed and in the area not to be disannexed. 

C.S.H.B. 568 requires a disannexation election if the governing body of
the municipality is petitioned to disannex an area by a majority of the
registered voters in the area to be disannexed. Requires disannexation
following petition if approved by a majority of the voters in the
municipality. H.B. 568 allows 50 qualified voters of an area in a
municipality to petition the governing body to declare that part of the
municipality is no longer part of the municipality. H.B. 568 requires the
governing body of the municipality to hold an election after being
petitioned and then disannex the area if approved by a majority of voters
in both the area proposed to be disannexed and in the area not proposed to
be disannexed. 

C.S.H.B. 568 requires that disannexation elections following a petition be
held on the first uniform election date following verification of the
petition by the municipal secretary or clerk. Requires that the
municipality pay for the cost of the election. H.B. 568 requires only that
the elections be held on the same day, though similar existing language
can be found in current law. 

C.S.H.B. 568 prohibits the annexation of a disannexed area before the 10th
anniversary of the date of disannexation. Similar language was moved from
a section that is not repealed under H.B. 568 but is under C.S.H.B. 568. 

C.S.H.B. 568 requires that a petition for disannexation be in writing,
request the disannexation, describe the area to be disannexed, have a plat
or other likeness of the area attached, and be presented to the secretary
or clerk of the municipality for verification. Similar language was moved
from a section that is not repealed under H.B. 568 but is under C.S.H.B.
568. 

C.S.H.B. 568 requires that the disannexed area is not released from its
pro rata share of debt owed by the municipality and requires the
municipality to continue and collect property taxes in the disannexed
area, at the same rate, until its pro rata share is collected. Requires
that the taxes imposed in the area be charged only with the cost of
imposing the taxes, and shall be applied exclusively to the payment of the
pro rata share of the indebtedness. Allows the residents in the disannexed
area to pay in full their pro rata share of indebtedness at any time.
Similar language was moved from a section that is not repealed under H.B.
568 but is under C.S.H.B. 568. 

 C.S.H.B. 568 prohibits the disannexation of an area from a general-law
municipality if the disannexation will result in the municipality having
less than one square mile in area or less than one mile in diameter,
measured from the center of the original municipal boundaries in any
direction. Similar language was moved from a section that is not repealed
under H.B. 568 but is under C.S.H.B. 568. 

The Repealer Provision for C.S.H.B. 568, as substituted, repeals the
following provisions of the Local Government Code that were not repealed
in H.B. 568: 

Sec. 43.028 (Authority of Municipalities to Annex Sparsely Occupied Area
on Petition of Area Landowners). H.B. 568 repeals Subsections (a) and (f)
of this section and amends Subsections (b), (d), and (e), to create a
general petition provision allowing each owner of real property in an area
to petition a municipality to be annexed followed by an election seeking
approval of voters in the municipality and to delete references to a
petition for annexation process by owners of property in sparsely occupied
areas. 

Sec. 43.029 (Authority of Certain Small Municipalities to Annex Unoccupied
Area on Petition of School Board). H.B. 568 repeals Subsections (a) and
(b) of this section and amends Subsection (c) to allow the board of
trustees of a public school occupying an area contiguous to a municipality
to petition the municipality to annex an area that is vacant. 

Sec.  43.031 (Authority of Adjacent Municipalities to Change Boundaries by
Agreement). 

Sec. 43.052(h) and (I) (Municipal Annexation Plan Required). H.B. 568 only
amends Sec. 43.052(h), Local Government Code, to delete from the service
plan exception the provisions regarding areas to be annexed upon petition
of owners in area; regarding repealed Sec.43.026 (Authority of Type A
General-Law Municipality to Annex Area it Owns); regarding repealed Sec.
43.027 (Authority of General-Law Municipality to Annex Navigable Stream);
regarding Sec. 43.029 (Authority of Certain Small Municipalities to Annex
Unoccupied Area on Petition of School Board); and, regarding Sec. 43.031
(Authority of Adjacent Municipalities to Change Boundaries by Agreement). 
  
Sec. 43.141 (Disannexation for Failure to Provide Services).

Sec. 43.142 (Disannexation According to Municipal Charter in Home-Rule
Municipality).  
Sec. 43.143 (Disannexation by Petition and Election in General-Law
Municipality).  

Subchapter C-1, Chapter 43, Local Government Code (Annexation Procedure
for Areas Exempted from Municipal Annexation Plan). 

In addition, the Repealer Provision for H.B. 568 repeals the following
provision of the Local Government Code that was not repealed in H.B. 568,
as substituted: 

Sec. 43.136(h) (Authority of Special-Law Municipality to Annex for Limited
Purposes Along Navigable Stream). 

The transition provisions for H.B. 568 include the following provisions:

Act effective in regards to full-purpose annexations whose first public
hearing was held on or after the effective day of the Act. 

Act effective in regards to limited-purpose annexations that were
instituted on or after March 1, 2004. 

The transition provisions for C.S.H.B. 568 include the following
provisions: 

Election provisions of Sec. 43.0215, Local Government Code, apply only to
annexations that are not final on the effective day of this Act.  
 
Allows a municipality that has taken action to annex an area before the
effective date of this Act to hold an election on the question of
annexation on the later of the date prescribed by Sec. 43.0215(d) or (e),
Local Government Code, or the first uniform election date that falls on or
after the 50th day after the effective date of this Act. 

The repeal of Sec. 43.052(h) and (I), and Subchapter C-1, Chapter 43,
Local Government Code, apply only to the annexation of an area for which
all parts of the statutory annexation process are begun on or after the
effective date of this Act. 

Municipalities that annex an area under Subchapter C-1, Chapter 43, Local
Government Code, on or after the effective date of this Act shall hold an
election on the question of annexation as required by Section 43.0215,
Local Government Code, on the later of the first uniform election date
that falls on or after the 50th day after the date of the second public
hearing required by Section 43.063, Local Government Code, or the first
uniform election date that falls on or after the 50th day after the
effective date of this Act. 

Annexation of an area under Subchapter C-1, Chapter 43, Local Government
Code, on or after the effective date of this Act must be completed within
90 days after the date of the election required by Section 43.0215, Local
Government Code. 

The Effective Date Provision for C.S.H.B. 568 is enlarged to allow for
immediate effect if approved by two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas Constitution.