85R2271 SCL-D
By: Larson H.B. No. 299
A BILL TO BE ENTITLED
AN ACT
relating to municipal annexation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 43, Local Government Code,
is amended by adding Section 43.003 to read as follows:
Sec. 43.003. LIMITED PURPOSE ANNEXATION PROHIBITED. (a)
Beginning September 1, 2017, a municipality may not annex an area
for the limited purposes of applying its planning, zoning, health,
and safety ordinances in the area.
(b) This section supersedes any municipal charter provision
that conflicts with this section.
SECTION 2. Section 43.021, Local Government Code, is
amended to read as follows:
Sec. 43.021. AUTHORITY OF HOME-RULE MUNICIPALITY TO ANNEX
AREA AND TAKE OTHER ACTIONS REGARDING BOUNDARIES. A home-rule
municipality may take the following actions according to rules as
may be provided by the charter of the municipality and not
inconsistent with the requirements [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 3. Section 43.051, Local Government Code, is
transferred to Subchapter B, Chapter 43, Local Government Code,
redesignated as Section 43.0211, Local Government Code, and amended
to read as follows:
Sec. 43.0211 [43.051]. AUTHORITY TO ANNEX LIMITED TO
EXTRATERRITORIAL JURISDICTION. A municipality may annex area only
in the municipality's [its] extraterritorial jurisdiction unless
the municipality owns the area.
SECTION 4. Subchapter B, Chapter 43, Local Government Code,
is amended by adding Sections 43.0212 and 43.0213 to read as
follows:
Sec. 43.0212. AUTHORITY TO ANNEX NONCONTIGUOUS AREAS. A
municipality may annex an area that is noncontiguous to the
boundaries of the municipality if the area is in the municipality's
extraterritorial jurisdiction.
Sec. 43.0213. AUTHORITY OF MUNICIPALITY TO ANNEX AREA ON
REQUEST OF OWNERS. (a) Notwithstanding Subchapter C or C-1, a
municipality may annex an area if each owner of land in the area
requests the annexation.
(b) If a municipality elects to annex an area under this
section, the governing body of the municipality must first
negotiate and enter into a written agreement for the provision of
services in the area with the owners of land in the area. The
municipality is not required to provide a service that is not
included in the agreement.
(c) Before a municipality may annex an area under this
section, the governing body of the municipality must conduct at
least two public hearings. The hearings must be conducted not less
than 10 business days apart. During the first public hearing, the
governing body must provide persons interested in the annexation
the opportunity to be heard. During the final public hearing, the
governing body may adopt an ordinance annexing the area.
SECTION 5. Section 43.0235(a), Local Government Code, is
amended to read as follows:
(a) A general-law municipality may annex an area in which 50
percent or more of the property in the area to be annexed is
primarily used for a commercial or industrial purpose only if the
municipality:
(1) is otherwise authorized by this chapter
[subchapter] to annex the area and complies with the requirements
prescribed under that authority; and
(2) obtains the written consent of the owners of a
majority of the property in the area to be annexed.
SECTION 6. Section 43.026, Local Government Code, is
amended to read as follows:
Sec. 43.026. AUTHORITY OF TYPE A GENERAL-LAW MUNICIPALITY
TO ANNEX AREA IT OWNS. Notwithstanding Subchapter C or C-1, the
[The] governing body of a Type A general-law municipality by
ordinance may annex area that the municipality owns. The ordinance
must describe the area by metes and bounds and must be entered in
the minutes of the governing body.
SECTION 7. Section 43.027, Local Government Code, is
amended to read as follows:
Sec. 43.027. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO ANNEX
NAVIGABLE STREAM. Notwithstanding Subchapter C or C-1, the [The]
governing body of a general-law municipality by ordinance may annex
any navigable stream adjacent to the municipality and within the
municipality's extraterritorial jurisdiction.
SECTION 8. Section 43.029, Local Government Code, is
amended by amending Subsection (c) and adding Subsections (d), (e),
(f), and (g) to read as follows:
(c) Notwithstanding Subchapter C or C-1, the [The] board of
trustees of a public school occupying the area may petition the
governing body of the municipality in writing to annex the area
under the procedures provided by this section. [Sections
43.028(c)-(f) apply to the petition and annexation under this
section in the same manner in which they apply to the petition and
annexation under that section.]
(d) The petition must describe the area by metes and bounds
and must be acknowledged in the manner required for deeds by each
person having an interest in the area.
(e) After the 5th day but on or before the 30th day after the
date the petition is filed, the governing body shall hear the
petition and the arguments for and against the annexation and shall
grant or refuse the petition as the governing body considers
appropriate.
(f) If the governing body grants the petition, the governing
body by ordinance may annex the area. On the effective date of the
ordinance, the area becomes a part of the municipality.
(g) If the petition is granted and the ordinance is adopted,
a certified copy of the ordinance together with a copy or duplicate
of the petition shall be filed in the office of the county clerk of
the county in which the municipality is located.
SECTION 9. Section 43.031, Local Government Code, is
amended to read as follows:
Sec. 43.031. AUTHORITY OF ADJACENT MUNICIPALITIES TO CHANGE
BOUNDARIES BY AGREEMENT. Notwithstanding Subchapter C or C-1,
adjacent [Adjacent] municipalities may make mutually agreeable
changes in their boundaries of areas that are less than 1,000 feet
in width.
SECTION 10. The heading to Subchapter C, Chapter 43, Local
Government Code, is amended to read as follows:
SUBCHAPTER C. ANNEXATION OF AREAS WITH A POPULATION OF LESS THAN
200 [PROCEDURE FOR AREAS ANNEXED UNDER MUNICIPAL ANNEXATION PLAN]
SECTION 11. Subchapter C, Chapter 43, Local Government
Code, is amended by adding Sections 43.0511 through 43.0517 to read
as follows:
Sec. 43.0511. AUTHORITY TO ANNEX. A municipality may annex
an area with a population of less than 200 only if the municipality
obtains consent to annex the area through a petition signed by:
(1) more than 50 percent of the registered voters of
the area; and
(2) if the registered voters of the area do not own
more than 50 percent of the land in the area, more than 50 percent of
the owners of land in the area.
Sec. 43.0512. RESOLUTION. The governing body of the
municipality that proposes to annex an area under this subchapter
must adopt a resolution that includes:
(1) a statement of the municipality's intent to annex
the area;
(2) a detailed description and map of the area to be
annexed; and
(3) a description of the services to be provided by the
municipality in the area after the annexation, including, as
applicable:
(A) police protection;
(B) fire protection;
(C) emergency medical services;
(D) solid waste collection;
(E) operation and maintenance of water and
wastewater facilities in the annexed area;
(F) operation and maintenance of roads and
streets, including road and street lighting;
(G) operation and maintenance of parks,
playgrounds, and swimming pools; and
(H) operation and maintenance of any other
publicly owned facility, building, or service.
Sec. 43.0513. NOTICE OF PROPOSED ANNEXATION. Not later
than the seventh day after the date the governing body of the
municipality adopts the resolution under Section 43.0512, the
municipality must mail to each resident in the area proposed to be
annexed notification of the proposed annexation that includes:
(1) notice of the public hearing required by Section
43.0514;
(2) an explanation of the 60-day petition period
described by Section 43.0515; and
(3) a description of the services to be provided by the
municipality in the area after the annexation.
Sec. 43.0514. PUBLIC HEARING. The governing body of a
municipality must conduct at least one public hearing not earlier
than the 21st day and not later than the 30th day after the date the
governing body adopts the resolution under Section 43.0512.
Sec. 43.0515. PETITION. (a) The petition required by
Section 43.0511 may be signed only by a registered voter of the area
proposed to be annexed or an owner of land in the area. The petition
must provide for the person signing to state whether the person is
signing as a registered voter of the area, as an owner of land in the
area, or as both.
(b) The municipality may collect signatures on the petition
only during the period beginning on the 31st day after the date the
governing body of the municipality adopts the resolution under
Section 43.0512 and ending on the 90th day after the date the
resolution is adopted.
(c) The petition must clearly state that a person signing
the petition is consenting to the proposed annexation.
(d) The petition must include a map of and describe the area
proposed to be annexed.
(e) The municipality must collect petition signatures in
person, except that the municipality may provide for an owner of
land in the area who is not a resident of the area to sign the
petition electronically.
(f) Chapter 277, Election Code, applies to a petition under
this section.
Sec. 43.0516. RESULTS OF PETITION. (a) When the petition
period prescribed by Section 43.0515 ends, the petition shall be
verified by the municipal secretary or other person responsible for
verifying signatures. The municipality must notify the residents
of the area proposed to be annexed of the results of the petition.
(b) If the municipality does not obtain the number of
signatures on the petition required to annex the area, the
municipality may not annex the area and may not adopt another
resolution under Section 43.0512 to annex the area until the first
anniversary of the date the petition period ended.
(c) If the municipality obtains the number of signatures on
the petition required to annex the area, the municipality may annex
the area after:
(1) providing notice under Subsection (a);
(2) holding a public hearing at which members of the
public are given an opportunity to be heard; and
(3) holding a final hearing not earlier than the 10th
day after the date of the public hearing under Subdivision (2) at
which the ordinance annexing the area may be adopted.
Sec. 43.0517. VOTER APPROVAL BY MUNICIPAL RESIDENTS ON
PETITION. If a petition protesting the annexation of an area under
this subchapter is signed by a number of registered voters of the
municipality proposing the annexation equal to at least 50 percent
of the number of voters who voted in the most recent municipal
election and is received by the secretary of the municipality
before the date the petition period prescribed by Section 43.0515
ends, the municipality may not complete the annexation of the area
without approval of a majority of the voters of the municipality
voting at an election called and held for that purpose.
SECTION 12. The heading to Subchapter C-1, Chapter 43,
Local Government Code, is amended to read as follows:
SUBCHAPTER C-1. ANNEXATION OF AREAS WITH A POPULATION OF AT LEAST
200 [PROCEDURE FOR AREAS EXEMPTED FROM MUNICIPAL ANNEXATION PLAN]
SECTION 13. Subchapter C-1, Chapter 43, Local Government
Code, is amended by adding Sections 43.0611 through 43.0618 to read
as follows:
Sec. 43.0611. AUTHORITY TO ANNEX. A municipality may annex
an area with a population of 200 or more only if the following
conditions are met, as applicable:
(1) 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; and
(2) if the registered voters of the area do not own
more than 50 percent of the land in the area, the municipality
obtains consent to annex the area through a petition signed by more
than 50 percent of the owners of land in the area.
Sec. 43.0612. RESOLUTION. The governing body of the
municipality that proposes to annex an area under this subchapter
must adopt a resolution that includes:
(1) a statement of the municipality's intent to annex
the area;
(2) a detailed description and map of the area to be
annexed; and
(3) a description of the services to be provided by the
municipality in the area after the annexation, including, as
applicable:
(A) police protection;
(B) fire protection;
(C) emergency medical services;
(D) solid waste collection;
(E) operation and maintenance of water and
wastewater facilities in the annexed area;
(F) operation and maintenance of roads and
streets, including road and street lighting;
(G) operation and maintenance of parks,
playgrounds, and swimming pools; and
(H) operation and maintenance of any other
publicly owned facility, building, or service.
Sec. 43.0613. NOTICE OF PROPOSED ANNEXATION. Not later
than the seventh day after the date the governing body of the
municipality adopts the resolution under Section 43.0612, the
municipality must mail to each property owner in the area proposed
to be annexed notification of the proposed annexation that
includes:
(1) notice of the public hearing required by Section
43.0614;
(2) notice that an election on the question of
annexing the area will be held; and
(3) a description of the services to be provided by the
municipality in the area after the annexation.
Sec. 43.0614. PUBLIC HEARINGS. (a) The governing body of a
municipality must conduct at least one public hearing not earlier
than the 21st day and not later than the 30th day after the date the
governing body adopts the resolution under Section 43.0612.
(b) The governing body must conduct an additional public
hearing not earlier than the 31st day and not later than the 90th
day after the date the governing body adopts a resolution under
Section 43.0612.
Sec. 43.0615. PROPERTY OWNER CONSENT REQUIRED FOR CERTAIN
AREAS. (a) If the registered voters in the area proposed to be
annexed do not own more than 50 percent of the land in the area, the
municipality must obtain consent to the annexation through a
petition signed by more than 50 percent of the owners of land in the
area in addition to the election required by this subchapter.
(b) The municipality must obtain the consent required by
this section through the petition process prescribed by Section
43.0515, and the petition must be verified in the manner provided by
Section 43.0516(a).
Sec. 43.0616. ELECTION. (a) A municipality shall order an
election on the question of annexing an area to be held on the first
uniform election date that falls on or after:
(1) the 90th day after the date the governing body of
the municipality adopts the resolution under Section 43.0612; or
(2) if the consent of the owners of land in the area is
required under Section 43.0615, the 78th day after the date the
petition period to obtain that consent ends.
(b) 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.
(c) 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.
Sec. 43.0617. RESULTS OF ELECTION AND PETITION. (a)
Following an election held under this subchapter, the municipality
must notify the residents of the area proposed to be annexed of the
results of the election and, if applicable, of the petition
required by Section 43.0615.
(b) If at the election held under this subchapter a majority
of qualified voters do not approve the proposed annexation, or if
the municipality is required to petition owners of land in the area
under Section 43.0615 and does not obtain the required number of
signatures, the municipality may not annex the area and may not
adopt another resolution under Section 43.0612 to annex the area
until the first anniversary of the date of the adoption of the
resolution.
(c) If at the election held under this subchapter a majority
of qualified voters approve the proposed annexation, and if the
municipality, as applicable, obtains the required number of
petition signatures under Section 43.0615, the municipality may
annex the area after:
(1) providing notice under Subsection (a);
(2) holding a public hearing at which members of the
public are given an opportunity to be heard; and
(3) holding a final hearing not earlier than the 10th
day after the date of the public hearing under Subdivision (2) at
which the ordinance annexing the area may be adopted.
Sec. 43.0618. VOTER APPROVAL BY MUNICIPAL RESIDENTS ON
PETITION. If a petition protesting the annexation of an area under
this subchapter is signed by a number of registered voters of the
municipality proposing the annexation equal to at least 50 percent
of the number of voters who voted in the most recent municipal
election and is received by the secretary of the municipality
before the date the election required by this subchapter is held,
the municipality may not complete the annexation of the area
without approval of a majority of the voters of the municipality
voting at a separate election called and held for that purpose.
SECTION 14. Section 43.071(e), Local Government Code, is
amended to read as follows:
(e) Subsections (b) and (c) [(b)-(d)] do not apply to the
annexation of:
(1) an area within a water or sewer district if:
(A) the governing body of the district consents
to the annexation;
(B) the owners in fee simple of the area to be
annexed consent to the annexation; and
(C) the annexed area does not exceed 525 feet in
width at its widest point;
(2) a water or sewer district that has a noncontiguous
part that is not within the extraterritorial jurisdiction of the
municipality; or
(3) a part of a special utility district created or
operating under Chapter 65, Water Code.
SECTION 15. Sections 43.0715(b) and (c), Local Government
Code, are amended to read as follows:
(b) If a municipality with a population of less than 1.5
million annexes a special district for full or limited purposes and
the annexation precludes or impairs the ability of the district to
issue bonds, the municipality shall, prior to the effective date of
the annexation, pay in cash to the landowner or developer of the
district a sum equal to all actual costs and expenses incurred by
the landowner or developer in connection with the district that the
district has, in writing, agreed to pay and that would otherwise
have been eligible for reimbursement from bond proceeds under the
rules and requirements of the Texas [Natural Resource Conservation]
Commission on Environmental Quality as such rules and requirements
exist on the date of annexation. [For an annexation that is subject
to preclearance by a federal authority, a payment will be
considered timely if the municipality: (i) escrows the
reimbursable amounts determined in accordance with Subsection (c)
prior to the effective date of the annexation; and (ii)
subsequently causes the escrowed funds and accrued interest to be
disbursed to the developer within five business days after the
municipality receives notice of the preclearance.]
(c) At the time notice of the municipality's intent to annex
the land within the district is first published [in accordance with
Section 43.052], the municipality shall proceed to initiate and
complete a report for each developer conducted in accordance with
the format approved by the Texas [Natural Resource Conservation]
Commission on Environmental Quality for audits. In the event the
municipality is unable to complete the report prior to the
effective date of the annexation as a result of the developer's
failure to provide information to the municipality which cannot be
obtained from other sources, the municipality shall obtain from the
district the estimated costs of each project previously undertaken
by a developer which are eligible for reimbursement. The amount of
such costs, as estimated by the district, shall be escrowed by the
municipality for the benefit of the persons entitled to receive
payment in an insured interest-bearing account with a financial
institution authorized to do business in the state. To compensate
the developer for the municipality's use of the infrastructure
facilities pending the determination of the reimbursement amount
[or federal preclearance], all interest accrued on the escrowed
funds shall be paid to the developer whether or not the annexation
is valid. Upon placement of the funds in the escrow account, the
annexation may become effective. In the event a municipality
timely escrows all estimated reimbursable amounts as required by
this subsection and all such amounts, determined to be owed,
including interest, are subsequently disbursed to the developer
within five days of final determination in immediately available
funds as required by this section, no penalties or interest shall
accrue during the pendency of the escrow. Either the municipality
or developer may, by written notice to the other party, require
disputes regarding the amount owed under this section to be subject
to nonbinding arbitration in accordance with the rules of the
American Arbitration Association.
SECTION 16. Sections 43.072(b) and (d), Local Government
Code, are amended to read as follows:
(b) A home-rule municipality having a common boundary with a
district subject to this section may annex the area of the district
if:
(1) the annexation complies with the requirements of
Subchapter C or C-1, as applicable [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 the petition period prescribed by Section
43.0515 ends or the date of the election under Section 43.0616, as
applicable; and
(3) all the area of the district is annexed.
(d) Annexation of area under this section is exempt from the
provisions of this chapter that prohibit:
(1) a municipality from annexing area outside its
extraterritorial jurisdiction; or
(2) [annexation of area narrower than the minimum
width prescribed by Section 43.054; or
[(3)] reduction of the extraterritorial jurisdiction
of a municipality without the written consent of the municipality's
governing body.
SECTION 17. Section 43.0751, Local Government Code, is
amended by amending Subsections (b), (d), (e), (f), (g), (h), (j),
(k), (m), and (n) and adding Subsection (e-1) to read as follows:
(b) The governing bodies of a municipality and a district
may negotiate and enter into a written strategic partnership
agreement for the district by mutual consent. The governing body of
a municipality, on written request from a district located in the
municipality's extraterritorial jurisdiction [included in the
municipality's annexation plan under Section 43.052], may [shall]
negotiate and enter into a written strategic partnership agreement
with the district. [A district included in a municipality's
annexation plan under Section 43.052:
[(1) may not submit its written request before the
date of the second hearing required under Section 43.0561; and
[(2) must submit its written request before the 61st
day after the date of the second hearing required under Section
43.0561.]
(d) Before the governing body of a municipality or a
district adopts a strategic partnership agreement, it shall conduct
two public hearings at which members of the public who wish to
present testimony or evidence regarding the proposed agreement
shall be given the opportunity to do so. Notice of public hearings
conducted by the governing body of a municipality under this
subsection shall be published in a newspaper of general circulation
in the municipality and in the district[. The notice must be in the
format prescribed by Section 43.123(b)] and must be published at
least once on or after the 20th day before the [each] date of each
hearing. The notice may not be smaller than one-quarter page of a
standard-size or tabloid-size newspaper, and the headline on the
notice must be in 18-point or larger type. Notice of public
hearings conducted by the governing body of a district under this
subsection shall be given in accordance with the district's
notification procedures for other matters of public importance.
Any notice of a public hearing conducted under this subsection
shall contain a statement of the purpose of the hearing, the date,
time, and place of the hearing, and the location where copies of the
proposed agreement may be obtained prior to the hearing. The
governing bodies of a municipality and a district may conduct joint
public hearings under this subsection, provided that at least one
public hearing is conducted within the district.
(e) [The governing body of a municipality may not annex a
district for limited purposes under this section or under the
provisions of Subchapter F until it has adopted a strategic
partnership agreement with the district.] The governing body of a
municipality may not adopt a strategic partnership agreement before
the agreement has been adopted by the governing body of the affected
district.
(e-1) Beginning September 1, 2017, a strategic partnership
agreement may not provide for limited purpose annexation.
(f) A strategic partnership agreement may provide for the
following:
(1) [limited-purpose annexation of the district on
terms acceptable to the municipality and the district provided that
the district shall continue in existence during the period of
limited-purpose annexation;
[(2) limited-purpose annexation of a district located
in a county with a population of more than 3.3 million:
[(A) only if the municipality does not require
services, permits, or inspections or impose fees for services,
permits, or inspections within the district; and
[(B) provided that this subsection does not
prevent the municipality from providing services within the
district if:
[(i) the provision of services is specified
and agreed to in the agreement;
[(ii) the provision of services is not
solely the result of a regulatory plan adopted by the municipality
in connection with the limited-purpose annexation of the district;
and
[(iii) the district has obtained the
authorization of the governmental entity currently providing the
service;
[(3)] payments by the municipality to the district for
services provided by the district;
(2) [(4)] annexation of any commercial property in a
district [for full purposes] by the municipality, notwithstanding
any other provision of this code or the Water Code, except for the
obligation of the municipality to provide, directly or through
agreement with other units of government, full provision of
municipal services to annexed territory, in lieu of any annexation
of residential property or payment of any fee on residential
property in lieu of annexation of residential property in the
district authorized by this subsection;
(3) an [(5) a full-purpose] annexation provision on
terms acceptable to the municipality and the district;
(4) [(6)] conversion of the district to a limited
district including some or all of the land included within the
boundaries of the district, which conversion shall be effective on
the [full-purpose] annexation conversion date established under
Subdivision (3) [(5)];
(5) [(7)] agreements existing between districts and
governmental bodies and private providers of municipal services in
existence on the date a municipality evidences its intention by
adopting a resolution to negotiate for a strategic partnership
agreement with the district shall be continued and provision made
for modifications to such existing agreements; and
(6) [(8)] such other lawful terms that the parties
consider appropriate.
(g) A strategic partnership agreement that provides for the
creation of a limited district under Subsection (f)(4) [(f)(6)]
shall include provisions setting forth the following:
(1) the boundaries of the limited district;
(2) the functions of the limited district and the term
during which the limited district shall exist after [full-purpose]
annexation, which term may be renewed successively by the governing
body of the municipality, provided that no such original or renewed
term shall exceed 10 years;
(3) the name by which the limited district shall be
known; and
(4) the procedure by which the limited district may be
dissolved prior to the expiration of any term established under
Subdivision (2).
(h) On the [full-purpose] annexation conversion date set
forth in the strategic partnership agreement pursuant to Subsection
(f)(3) [(f)(5)(A)], the land included within the boundaries of the
district shall be deemed to be within the [full-purpose] boundary
limits of the municipality without the need for further action by
the governing body of the municipality. The [full-purpose]
annexation conversion date established by a strategic partnership
agreement may be altered only by mutual agreement of the district
and the municipality. However, nothing herein shall prevent the
municipality from terminating the agreement and instituting
proceedings to annex the district, on request by the governing body
of the district, on any date prior to the [full-purpose] annexation
conversion date established by the strategic partnership
agreement. [Land annexed for limited or full purposes under this
section shall not be included in calculations prescribed by Section
43.055(a).]
(j) Except as limited by this section or the terms of a
strategic partnership agreement, a district that has been annexed
for limited purposes by a municipality before September 1, 2017,
and a limited district shall have and may exercise all functions,
powers, and authority otherwise vested in a district.
(k) A municipality that has annexed all or part of a
district for limited purposes under this section before September
1, 2017, may impose a sales and use tax within the boundaries of the
part of the district that is annexed for limited purposes. Except
to the extent it is inconsistent with this section, Chapter 321, Tax
Code, governs the imposition, computation, administration,
governance, and abolition of the sales and use tax.
(m) A municipality that has annexed [may annex] a district
for limited purposes to implement a strategic partnership agreement
under this section before September 1, 2017, shall not annex for
full purposes any territory within a district created pursuant to a
consent agreement with that municipality executed before August 27,
1979. The prohibition on annexation established by this subsection
shall expire on September 1, 1997, or on the date on or before which
the municipality and any district may have separately agreed that
annexation would not take place whichever is later.
(n) This subsection applies only to a municipality any
portion of which is located in a county that has a population of not
less than 285,000 and not more than 300,000 and that borders the
Gulf of Mexico and is adjacent to a county with a population of more
than 3.3 million. A municipality may impose within the boundaries
of a district a municipal sales and use tax authorized by Chapter
321, Tax Code, or a municipal hotel occupancy tax authorized by
Chapter 351, Tax Code, that is imposed in the municipality if:
(1) the municipality has annexed the district for
limited purposes under this section before September 1, 2017; or
(2) following two public hearings on the matter, the
municipality and the district enter a written agreement providing
for the imposition of the tax or taxes.
SECTION 18. Subchapter D, Chapter 43, Local Government
Code, is amended by adding Section 43.07512 to read as follows:
Sec. 43.07512. LIMITED PURPOSE ANNEXATION OF ANY SPECIAL
DISTRICT PROHIBITED UNDER STRATEGIC PARTNERSHIP AGREEMENT. (a) In
this section, "special district" means a political subdivision of
this state with a limited geographic area created by local law or
under general law for a special purpose.
(b) Notwithstanding any other general or local law, a
strategic partnership agreement entered into on or after September
1, 2017, may not provide for the limited purpose annexation of all
or part of a special district.
SECTION 19. Section 43.07515(a), Local Government Code, is
amended to read as follows:
(a) A municipality may not regulate under Section 43.0751
[or 43.0752] the sale, use, storage, or transportation of fireworks
outside of the municipality's boundaries.
SECTION 20. Section 43.101(d), Local Government Code, is
amended to read as follows:
(d) The municipality may annex the area even if part of the
area is outside the municipality's extraterritorial jurisdiction
[or is narrower than the minimum width prescribed by Section
43.054. Section 43.055, which relates to the amount of area a
municipality may annex in a calendar year, does not apply to the
annexation].
SECTION 21. Section 43.102(d), Local Government Code, is
amended to read as follows:
(d) The municipality may annex the area even if the area is
outside the municipality's extraterritorial jurisdiction or [,] is
in another municipality's extraterritorial jurisdiction[, or is
narrower than the minimum width prescribed by Section 43.054.
Section 43.055, which relates to the amount of area a municipality
may annex in a calendar year, does not apply to the annexation].
SECTION 22. Section 43.1025(c), Local Government Code, is
amended to read as follows:
(c) Annexation of the [The] area described by Subsection (b)
[may be annexed without the consent of the owners or residents of
the area, but the annexation] may not occur unless each
municipality in whose extraterritorial jurisdiction the area may be
located:
(1) consents to the annexation; and
(2) reduces its extraterritorial jurisdiction over
the area as provided by Section 42.023.
SECTION 23. Subchapter F, Chapter 43, Local Government
Code, is amended by adding Section 43.1211 to read as follows:
Sec. 43.1211. APPLICABILITY. This subchapter applies to an
area that was annexed for a limited purpose as authorized before
September 1, 2017.
SECTION 24. Section 43.127(a), Local Government Code, is
amended to read as follows:
(a) On [Except as provided by Section 43.123(e), on] or
before the date prescribed by the regulatory plan prepared for the
limited purpose area [under Section 43.123(d)(2)], the
municipality must annex the area for full purposes. [This
requirement may be waived and the date for full-purpose annexation
postponed by written agreement between the municipality and a
majority of the affected landowners. A written agreement to waive
the municipality's obligation to annex the area for full purposes
binds all future owners of land annexed for limited purposes
pursuant to that waiver.]
SECTION 25. Sections 43.141(a) and (b), Local Government
Code, are amended to read as follows:
(a) A majority of the qualified voters of an annexed area
may petition the governing body of the municipality to disannex the
area if the municipality fails or refuses to provide services or to
cause services to be provided to the area as described by the
written agreement under Section 43.0213 or the resolution under
Section 43.0512 or 43.0612, as applicable [within the period
specified by Section 43.056 or by the service plan prepared for the
area under that section].
(b) If the governing body fails or refuses to disannex the
area within 60 days after the date of the receipt of the petition,
any one or more of the signers of the petition may bring a cause of
action in a district court of the county in which the area is
principally located to request that the area be disannexed. On the
filing of an answer by the governing body, and on application of
either party, the case shall be advanced and heard without further
delay in accordance with the Texas Rules of Civil Procedure. The
district court shall enter an order disannexing the area if the
court finds that a valid petition was filed with the municipality
and that the municipality failed to perform [its obligations in
accordance with the service plan or failed to perform] in good
faith.
SECTION 26. Section 43.201(2), Local Government Code, is
amended to read as follows:
(2) "Limited-purpose annexation" means annexation
authorized under former Section 43.121, as that section existed on
January 1, 2017.
SECTION 27. Section 43.203(a), Local Government Code, is
amended to read as follows:
(a) This section applies only to the [The] governing body of
a district that by resolution petitioned [may petition] a
municipality to alter the annexation status of land in the district
from full-purpose annexation to limited-purpose annexation and
before September 1, 2017:
(1) entered into an agreement to alter the status of
annexation as provided by this section; or
(2) had its status automatically altered by operation
of Subsection (c).
SECTION 28. Section 43.905(a), Local Government Code, is
amended to read as follows:
(a) A municipality that proposes to annex an area shall
provide written notice of the proposed annexation to each public
school district located in the area proposed for annexation within
the period prescribed for providing [publishing] the notice of the
first hearing under Section 43.0213, 43.0513, [43.0561] or 43.0613
[43.063], as applicable.
SECTION 29. Section 775.0754(d), Health and Safety Code, is
amended to read as follows:
(d) A municipality that enters into an agreement under this
section is not required to provide emergency services in that
annexed territory. To the extent of a conflict between this
subsection and [Section 43.056, Local Government Code, or] any
other law, this subsection controls.
SECTION 30. Section 3833.209(e), Special District Local
Laws Code, is amended to read as follows:
(e) The terms and conditions of the negotiated service plan
bind the city for the period provided by Section 43.056(l), Local
Government Code, as that section existed on January 1, 2017, and the
developer, the developer's heirs, successors, and assigns, and any
person taking title to all or a portion of the property annexed
under the annexation petition for that period.
SECTION 31. Section 8489.109, Special District Local Laws
Code, is amended to read as follows:
Sec. 8489.109. MUNICIPAL ANNEXATION ADJACENT TO DISTRICT.
For the purposes of any [Section 43.021(2), Local Government Code,
or other] law, including a municipal charter or ordinance relating
to annexation, an area adjacent to the district or any new district
created by the division of the district is considered adjacent to a
municipality in whose corporate limits or extraterritorial
jurisdiction any of the land in the area described by Section 2 of
the Act enacting this chapter is located.
SECTION 32. Section 9038.110, Special District Local Laws
Code, is amended to read as follows:
Sec. 9038.110. MUNICIPAL ANNEXATION ADJACENT TO DISTRICT.
For the purposes of any [Section 43.021(2), Local Government Code,
or other] law, including a municipal charter or ordinance relating
to annexation, an area adjacent to the district or any new district
created by the division of the district is considered adjacent to a
municipality in whose corporate limits or extraterritorial
jurisdiction any of the land in the area described by Section 2 of
the Act creating this chapter is located.
SECTION 33. Section 9039.110, Special District Local Laws
Code, is amended to read as follows:
Sec. 9039.110. MUNICIPAL ANNEXATION ADJACENT TO DISTRICT.
For the purposes of any [Section 43.021(2), Local Government Code,
or other] law, including a municipal charter or ordinance relating
to annexation, an area adjacent to the district or any new district
created by the division of the district is considered adjacent to a
municipality in whose corporate limits or extraterritorial
jurisdiction any of the land in the area described by Section 2 of
the Act creating this chapter is located.
SECTION 34. (a) Sections 42.0411, 43.022, 43.023, 43.024,
43.025, 43.028, 43.030, 43.032, 43.033, 43.034, 43.035(c), 43.036,
43.052, 43.053, 43.054, 43.0545, 43.0546, 43.055, 43.056, 43.0561,
43.0562, 43.0563, 43.0564, 43.0565, 43.0567, 43.057, 43.061,
43.062, 43.063, 43.064, 43.065, 43.071(d), (f), and (g), 43.072(c),
(e), (g), (h), (i), (j), (k), (l), and (m), 43.0751(o) and (r),
43.0752, 43.101(c), 43.102(c), 43.1025(e) and (g), 43.103, 43.105,
43.121, 43.122, 43.123, 43.124, 43.125, 43.126, 43.129, 43.132,
43.147, and 43.906, Local Government Code, are repealed.
(b) Subchapter Y, Chapter 43, Local Government Code, is
repealed.
(c) Sections 8374.252(a), 8375.252(a), 8376.252(a),
8377.252(a), 8378.252(a), 8382.252(a), 8383.252(a), 8384.252(a),
8385.252(a), and 8477.302(a), Special District Local Laws Code, are
repealed.
(d) Section 5.701(n)(6), Water Code, is repealed.
SECTION 35. The changes in law made by this Act apply only
to the annexation of an area that is not final on the effective date
of this Act.
SECTION 36. This Act takes effect September 1, 2017.