79R4485 ATP-D
By:  Hope                                                         H.B. No. 3198
A BILL TO BE ENTITLED
AN ACT
relating to a revision of the procedures for municipal annexation 
in certain municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 43.021, Local Government Code, is 
amended to read as follows:
	Sec. 43.021.  AUTHORITY OF CERTAIN MUNICIPALITIES 
[HOME-RULE MUNICIPALITY] TO ANNEX AREA AND TAKE OTHER ACTIONS 
REGARDING BOUNDARIES.  A home-rule municipality or any municipality 
with a population of 40,000 or less may take the following actions 
according to rules as may be provided by the charter of the 
municipality, if the municipality has a charter, and state law and 
not inconsistent with the procedural rules prescribed by this 
chapter:
		(1)  fix the boundaries of the municipality;                                  
		(2)  extend the boundaries of the municipality and 
annex area adjacent to the municipality; and
		(3)  exchange area with other municipalities.                                 
	SECTION 2.  Subchapter B, Chapter 43, Local Government Code, 
is amended by adding Section 43.0215 to read as follows:
	Sec. 43.0215.  VOTER APPROVAL OF ANNEXATION REQUIRED IN 
CERTAIN MUNICIPALITIES.  (a)  This section applies only to a 
municipality with a population of 40,000 or less.
	(b)  The municipality may annex by ordinance an area for full 
purposes under this chapter only if:
		(1)  the municipality holds an election in the 
municipality, at which the qualified voters of the municipality may 
vote on the question of the annexation, and a majority of the votes 
received at the election approve the annexation; and
		(2)  one of the following conditions is met:                           
			(A)  the municipality holds an election in the 
area proposed to be annexed, at which the qualified voters of the 
area may vote on the question of the annexation, and a majority of 
the votes received at the election approve the annexation;
			(B)  a majority of the registered voters of the 
area proposed to be annexed petition the governing body of the 
municipality, in writing, to annex the area; or
			(C)  no qualified voters reside in the area 
proposed to be annexed. 
	(c)  On the effective date of an annexation ordinance, the 
area becomes a part of the municipality and a resident of the area 
is entitled to the rights and privileges of a resident of the 
municipality and is bound by the acts and ordinances adopted by the 
municipality.
	(d)  A municipality shall order an election on the question 
of annexing an area under this section to be held on the first 
uniform election date that falls on or after the 65th day after the 
date the second public hearing required by Section 43.0561 is held.
	(e)  An election under this section shall be held in the same 
manner as general elections of the municipality.  The municipality 
shall pay for the costs of holding the election.
	(f)  A municipality that holds an election under this section 
may not hold another election on the question of annexation before 
the corresponding uniform election date of the following year.
	(g)  This section does not apply to area that the 
municipality owns.  
	(h)  This section does not apply to or limit the ability of a 
municipality to enter into an agreement with an adjacent 
municipality to make mutually agreeable changes in their boundaries 
of areas that are less than 1,000 feet in width.
	SECTION 3.  The heading to Section 43.022, Local Government 
Code, is amended to read as follows:
	Sec. 43.022.  VOTER APPROVAL OF ANNEXATION BY CERTAIN
HOME-RULE MUNICIPALITIES [MUNICIPALITY] REQUIRED UNDER CERTAIN 
CIRCUMSTANCES.  
	SECTION 4.  Section 43.022(a), Local Government Code, is 
amended to read as follows:
	(a)  If, under its charter, the governing body of a home-rule 
municipality with a population of more than 40,000 initiates or 
orders an election to submit to the qualified voters of the 
municipality the question of annexing an adjacent area, the 
governing body shall at the same time order an election to be held 
at a convenient location in the municipality to submit the question 
to the qualified voters of that area.
	SECTION 5.  Section 43.028(a), Local Government Code, is 
amended to read as follows:
	(a)  This section applies only to the annexation by a 
municipality with a population of more than 40,000 of an area:
		(1)  that is one-half mile or less in width;                                  
		(2)  that is contiguous to the annexing municipality; 
and                   
		(3)  that is vacant and without residents or on which 
fewer than three qualified voters reside.
	SECTION 6.  Section 43.052(h), Local Government Code, is 
amended to read as follows:
	(h)  This section does not apply to an area proposed for 
annexation by a municipality with a population of more than 40,000
if:
		(1)  the area contains fewer than 100 separate tracts 
of land on which one or more residential dwellings are located on 
each tract;
		(2)  the area will be annexed by petition of more than 
50 percent of the real property owners in the area proposed for 
annexation or by vote or petition of the qualified voters or real 
property owners as provided by Subchapter B;
		(3)  the area is or was the subject of:                                       
			(A)  an industrial district contract under 
Section 42.044; or              
			(B)  a strategic partnership agreement under 
Section 43.0751;              
		(4)  the area is located in a colonia, as that term is 
defined by Section 2306.581, Government Code;
		(5)  the area is annexed under Section [Section 43.026, 
43.027, 43.029, or] 43.031;
		(6)  the area is located completely within the 
boundaries of a closed military installation;  or
		(7)  the municipality determines that the annexation of 
the area is necessary to protect the area proposed for annexation or 
the municipality from:
			(A)  imminent destruction of property or injury to 
persons; or             
			(B)  a condition or use that constitutes a public 
or private nuisance as defined by background principles of nuisance 
and property law of this state.
	SECTION 7.  Section 43.054(b), Local Government Code, is 
amended to read as follows:
	(b)  The prohibition established by Subsection (a) does not 
apply if:        
		(1)  the boundaries of the municipality are contiguous 
to the area on at least two sides;
		(2)  the annexation is proposed by a municipality with 
a population of more than 40,000 and is initiated on the written 
petition of the owners or of a majority of the qualified voters of 
the area; or
		(3)  the area abuts or is contiguous to another 
jurisdictional boundary.    
	SECTION 8.  Section 43.0545(c), Local Government Code, is 
amended to read as follows:
	(c)  Subsections (a) and (b) do not apply to an area:                          
		(1)  completely surrounded by incorporated territory 
of one or more municipalities;
		(2)  for which the owners of the area have requested 
annexation by a [the] municipality with a population of more than 
40,000;
		(3)  that is owned by the municipality; or                                    
		(4)  that is the subject of an industrial district 
contract under Section 42.044.
	SECTION 9.  Section 43.055(a), Local Government Code, is 
amended to read as follows:
	(a)  In a calendar year, a municipality may not annex a total 
area greater than 10 percent of the incorporated area of the 
municipality as of January 1 of that year, plus any amount of area 
carried over to that year under Subsection (b).  In determining the 
total area annexed in a calendar year, an area annexed for limited 
purposes is included, but an annexed area is not included if it is:
		(1)  annexed by a municipality with a population of 
more than 40,000 at the request of a majority of the qualified 
voters of the area and the owners of at least 50 percent of the land 
in the area;
		(2)  owned by the municipality, a county, the state, or 
the federal government and used for a public purpose;
		(3)  annexed by a municipality with a population of 
more than 40,000 at the request of at least a majority of the 
qualified voters of the area; or
		(4)  annexed by a municipality with a population of 
more than 40,000 at the request of the owners of the area.
	SECTION 10.  Section 43.061, Local Government Code, is 
amended to read as follows:
	Sec. 43.061.  APPLICABILITY.  This subchapter applies to an 
area proposed for annexation by a municipality with a population of 
more than 40,000 that is not required to be included in a municipal 
annexation plan under Section 43.052.
	SECTION 11.  Section 43.0712(a), Local Government Code, is 
amended to read as follows:
	(a)  If a municipality annexes [enacts an ordinance to annex] 
a special district and assumes control and operation of utilities 
within the district, and the annexation is invalidated by a final 
judgment of a court after all appeals have been exhausted, the 
municipality is deemed[, by enactment of its annexation ordinance,] 
to have acquired title to utilities owned by a developer within the 
special district and is obligated to pay the developer all amounts 
related to the utilities as provided in Section 43.0715.
	SECTION 12.  Section 43.072, Local Government Code, is 
amended by amending Subsection (b) and adding Subsections (b-1) and 
(n) to read as follows:
	(b)  A home-rule municipality with a population of more than 
40,000 having a common boundary with a district subject to this 
section may annex the area of the district if:
		(1)  the annexation is approved by a majority of the 
qualified voters who vote on the question at an election held under 
this section;
		(2)  the annexation is completed before the date that 
is one year after the date of the election; and
		(3)  all the area of the district is annexed.                                 
	(b-1)  A home-rule municipality with a population of 40,000 
or less having a common boundary with a district subject to this 
section may annex the area of the district if all the area of the 
district is annexed.
	(n)  Subsections (g)-(m) do not apply to a municipality with 
a population of 40,000 or less.
	SECTION 13.  Section 43.102(c), Local Government Code, is 
amended to read as follows:
	(c)  The area may be annexed without the consent of the 
owners or residents of the area if the area is annexed by a 
municipality with a population of more than 40,000.
	SECTION 14.  Section 43.103(a), Local Government Code, is 
amended to read as follows:
	(a)  A general-law municipality with a population of 500 or 
more may annex[, by ordinance and without the consent of any 
person,] the part of a street, highway, alley, or other public or 
private way, including a railway line, spur, or roadbed, that is 
adjacent and runs parallel to the boundaries of the municipality.
	SECTION 15.  Section 43.141(a), Local Government Code, is 
amended to read as follows:
	(a)  A majority of the qualified voters of an annexed area 
may petition the governing body of a [the] municipality with a 
population of more than 40,000 to disannex the area if the 
municipality fails or refuses to provide services or to cause 
services to be provided to the area within the period specified by 
Section 43.056 or by the service plan prepared for the area under 
that section.
	SECTION 16.  Subchapter G, Chapter 43, Local Government 
Code, is amended by adding Section 43.1415 to read as follows:
	Sec. 43.1415.  VOTER APPROVAL OF DISANNEXATION REQUIRED IN 
CERTAIN MUNICIPALITIES.  (a)  This section applies only to a 
municipality with a population of 40,000 or less.
	(b)  A municipality may disannex an area if the municipality 
holds an election in the municipality at which a majority of the 
voters of the:
		(1)  municipality voting in an election held on the 
question of disannexation approve the disannexation; and
		(2)  area proposed to be disannexed voting in the 
election approve the disannexation.
	(c)  If a majority of the registered voters in an area 
petition the governing body of the municipality in writing to 
disannex the area, the municipality shall order an election in the 
municipality on the question of disannexation of the area.  If a 
majority of the voters of the municipality voting in the election 
approve the disannexation, the municipality shall institute 
disannexation proceedings.
	(d)  The municipality shall hold an election under 
Subsection (c) on the first uniform election date following the 
date the petition is verified by the secretary or clerk that allows 
sufficient time to comply with other requirements of law.  The 
municipality shall pay for the cost of holding the election.
	(e)  If an area is disannexed under this section, it may not 
be annexed again before the 10th anniversary of the date of the 
disannexation.
	(f)  A petition for disannexation must:                                 
		(1)  be in writing;                                                    
		(2)  request the disannexation;                                        
		(3)  describe the area to be disannexed and have a plat 
or other likeness of the area attached; and
		(4)  be presented to the secretary or clerk of the 
municipality for verification.
	(g)  If an area is disannexed from a municipality as provided 
by this section and the municipality owes any debts, by bond or 
otherwise, at the time of the disannexation, the area is not 
released from its pro rata share of that indebtedness. The 
governing body shall continue to impose a property tax each year on 
the property in the area at the same rate that is imposed on 
property in the municipality until the taxes collected from the 
area equal its pro rata share of the indebtedness. The taxes imposed 
in the area may 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. This subsection does not prevent the 
residents of the area from paying in full at any time their pro rata 
share of the indebtedness.
	(h)  An area may not be disannexed from a general-law 
municipality if the disannexation would result in the municipality 
having:
		(1)  an area of less than one square mile; or                          
		(2)  a diameter of less than one mile, measured from the 
center of the original municipal boundaries in any direction.
	SECTION 17.  Section 43.142, Local Government Code, is 
amended to read as follows:
	Sec. 43.142.  DISANNEXATION ACCORDING TO MUNICIPAL CHARTER 
IN CERTAIN HOME-RULE MUNICIPALITIES [MUNICIPALITY].  A home-rule 
municipality with a population of more than 40,000 may disannex an 
area in the municipality according to rules as may be provided by 
the charter of the municipality and not inconsistent with the 
procedural rules prescribed by this chapter.
	SECTION 18.  Section 43.145(a), Local Government Code, is 
amended to read as follows:
	(a)  The governing body of a municipality by ordinance may 
discontinue an area as a part of the municipality if:
		(1)  the municipality has a population of [4,000 or] 
more than 40,000 and is located in a county with a population of 
more than 205,000, and the area is composed of at least three 
contiguous acres that are unimproved and adjoining the municipal 
boundaries; or
		(2)  the municipality has a population of 596,000 or 
more, and the area is an improved area that is not taxable by the 
municipality and is contiguous to the municipal boundary.
	SECTION 19.  Sections 43.023, 43.024, 43.025, 43.026, 
43.027, 43.029, 43.033, 43.034, 43.071(f), 43.101(c), 43.143, and 
43.144, Local Government Code, are repealed.
	SECTION 20.  (a)  The change in law made by Section 43.0215, 
Local Government Code, as added by this Act, applies only to the 
annexation of an area that is not final on the effective date of 
this Act.  A municipality that has taken action to annex an area 
before the effective date of this Act may hold an election on the 
question of annexation on the later of the date prescribed by 
Section 43.0215(e), Local Government Code, as added by this Act, or 
the first uniform election date that falls on or after the 65th day 
after the effective date of this Act.
	(b)  The changes in law made by this Act to Sections 
43.052(h) and 43.061, 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.  Except as provided by this subsection, the annexation of an 
area for which any part of the statutory annexation process was 
begun before the effective date of this Act is governed by the law 
in effect immediately before the effective date of this Act, and the 
former law is continued in effect for that purpose.  A municipality 
to which Section 43.0215, Local Government Code, as added by this 
Act, applies, that annexes 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, as added by this Act, on 
the later of the first uniform election date that falls on or after 
the 65th 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 65th day after the 
effective date of this Act.  The annexation of an area under 
Subchapter C-1, Chapter 43, Local Government Code, by a 
municipality to which Section 43.0215, Local Government Code, as 
added by this Act, applies, 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, as added by 
this Act.
	SECTION 21.  This Act takes effect immediately if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution.  
If this Act does not receive the vote necessary for immediate 
effect, this Act takes effect September 1, 2005.
COMMITTEE AMENDMENT NO. 1
	Amend H.B. No. 3198 by striking "40,000" and substituting 
"45,000" as follows:
	(1)  On page 1, lines 10 and 23.                                               
	(2)  On page 3, lines 18 and 27.                                               
	(3)  On page 4, line 9.                                                        
	(4)  On page 5, line 17.                                                       
	(5)  On page 6, lines 2, 15, 21, and 24.                                       
	(6)  On page 7, lines 2, 18, and 26.                                           
	(7)  On page 8, lines 4, 9, and 21.                                            
	(8)  On page 9, line 3.                                                        
	(9)  On page 11, lines 2 and 11.                                               
79R14206 ATP-D                                                          Mowery