H.B. 2761 78(R)    BILL ANALYSIS


H.B. 2761
By: Crabb
Land & Resource Management
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Under current law, municipalities may annex an area in their
extraterritorial jurisdiction without the consent of the area's residents.
Many municipalities annex areas for the area's tax bases and other
resources despite opposition by the residents of these annexed areas. In
addition, a municipality may annex an area without the consent of the
residents of the area, and often the services that these residents receive
from the municipality are inadequate. 

H.B. 2761 authorizes the deannexation of a tract of a contiguous territory
that was annexed without an election on or after December 1, 1996, by a
municipality with a population of more than 1.5 million if certain
conditions are met. 

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 Subchapter G, Chapter 43, Local Government Code, by
adding Section 43.149, regarding the dissanexation of certain areas as
follows: 

Makes this section applicable to a tract of contiguous territory that is
annexed on or after December 1, 1996, by a municipality with a population
of more than 1.5 million and in which an election approving the annexation
has not been held.  

Requires a county to hold an election on disannexation if the county clerk
receives a petition asking for an election signed by at least 10 percent
of the registered voters who reside in the tract. 

Provides for determining the validity of a petition and requires the
county judge to order an election under certain circumstances.  

Prohibits anyone except registered voters residing in the tract to vote in
the election. Requires the municipality to pay for the election. 

   Provides ballot language.

Provides that the tract is disannexed if approved by a majority of the
votes at the election. Recreates any municipal utility district or other
special district that served the tract prior to annexation on the date of
the canvass of the election. Provides for the establishment of new boards
of recreated districts. 

Provides that if disannexation is not approved by the voters, the tract
remains a part of the municipality and prohibits any further elections on
the question. 

Prohibits a municipality from reannexing any portion of a tract that is
disannexed unless it is approved by a majority of the residents of the
tract  voting on the question. 

Requires that an arbitration panel be appointed not later than the 10th
day after the date a disannexation occurs and sets forth the composition
of the panel.  

Requires the panel to conduct an accounting of all expenses the
municipality, each municipal utility district, etc. incurred during the
annexation and disannexation process.  

Requires that within a specified period the panel must render a decision
on whether the municipality, municipal utility district, or other district
is entitled to compensation from the other.  

Provides that a decision of the panel is reviewable in the district court
of the county under the substantial evidence rule and authorizes the
municipality or an affected district to file an original action for an
accounting in the district court of the county in which the tract is
located.  

   Provides for situations in which a tract is located in more than one
county 

SECTION 2.Effective date.

EFFECTIVE DATE

September 1, 2003, or immediately if it receives the requisite number of
votes.