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