Texas 2017 - 85th Regular

Texas House Bill HB299 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R2271 SCL-D
2	2	By: Larson H.B. No. 299
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to municipal annexation.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subchapter A, Chapter 43, Local Government Code,
10	10	is amended by adding Section 43.003 to read as follows:
11	11	Sec. 43.003. LIMITED PURPOSE ANNEXATION PROHIBITED. (a)
12	12	Beginning September 1, 2017, a municipality may not annex an area
13	13	for the limited purposes of applying its planning, zoning, health,
14	14	and safety ordinances in the area.
15	15	(b) This section supersedes any municipal charter provision
16	16	that conflicts with this section.
17	17	SECTION 2. Section 43.021, Local Government Code, is
18	18	amended to read as follows:
19	19	Sec. 43.021. AUTHORITY OF HOME-RULE MUNICIPALITY TO ANNEX
20	20	AREA AND TAKE OTHER ACTIONS REGARDING BOUNDARIES. A home-rule
21	21	municipality may take the following actions according to rules as
22	22	may be provided by the charter of the municipality and not
23	23	inconsistent with the requirements [procedural rules] prescribed
24	24	by this chapter:
25	25	(1) fix the boundaries of the municipality;
26	26	(2) extend the boundaries of the municipality and
27	27	annex area [adjacent to the municipality]; and
28	28	(3) exchange area with other municipalities.
29	29	SECTION 3. Section 43.051, Local Government Code, is
30	30	transferred to Subchapter B, Chapter 43, Local Government Code,
31	31	redesignated as Section 43.0211, Local Government Code, and amended
32	32	to read as follows:
33	33	Sec. 43.0211 [43.051]. AUTHORITY TO ANNEX LIMITED TO
34	34	EXTRATERRITORIAL JURISDICTION. A municipality may annex area only
35	35	in the municipality's [its] extraterritorial jurisdiction unless
36	36	the municipality owns the area.
37	37	SECTION 4. Subchapter B, Chapter 43, Local Government Code,
38	38	is amended by adding Sections 43.0212 and 43.0213 to read as
39	39	follows:
40	40	Sec. 43.0212. AUTHORITY TO ANNEX NONCONTIGUOUS AREAS. A
41	41	municipality may annex an area that is noncontiguous to the
42	42	boundaries of the municipality if the area is in the municipality's
43	43	extraterritorial jurisdiction.
44	44	Sec. 43.0213. AUTHORITY OF MUNICIPALITY TO ANNEX AREA ON
45	45	REQUEST OF OWNERS. (a) Notwithstanding Subchapter C or C-1, a
46	46	municipality may annex an area if each owner of land in the area
47	47	requests the annexation.
48	48	(b) If a municipality elects to annex an area under this
49	49	section, the governing body of the municipality must first
50	50	negotiate and enter into a written agreement for the provision of
51	51	services in the area with the owners of land in the area. The
52	52	municipality is not required to provide a service that is not
53	53	included in the agreement.
54	54	(c) Before a municipality may annex an area under this
55	55	section, the governing body of the municipality must conduct at
56	56	least two public hearings. The hearings must be conducted not less
57	57	than 10 business days apart. During the first public hearing, the
58	58	governing body must provide persons interested in the annexation
59	59	the opportunity to be heard. During the final public hearing, the
60	60	governing body may adopt an ordinance annexing the area.
61	61	SECTION 5. Section 43.0235(a), Local Government Code, is
62	62	amended to read as follows:
63	63	(a) A general-law municipality may annex an area in which 50
64	64	percent or more of the property in the area to be annexed is
65	65	primarily used for a commercial or industrial purpose only if the
66	66	municipality:
67	67	(1) is otherwise authorized by this chapter
68	68	[subchapter] to annex the area and complies with the requirements
69	69	prescribed under that authority; and
70	70	(2) obtains the written consent of the owners of a
71	71	majority of the property in the area to be annexed.
72	72	SECTION 6. Section 43.026, Local Government Code, is
73	73	amended to read as follows:
74	74	Sec. 43.026. AUTHORITY OF TYPE A GENERAL-LAW MUNICIPALITY
75	75	TO ANNEX AREA IT OWNS. Notwithstanding Subchapter C or C-1, the
76	76	[The] governing body of a Type A general-law municipality by
77	77	ordinance may annex area that the municipality owns. The ordinance
78	78	must describe the area by metes and bounds and must be entered in
79	79	the minutes of the governing body.
80	80	SECTION 7. Section 43.027, Local Government Code, is
81	81	amended to read as follows:
82	82	Sec. 43.027. AUTHORITY OF GENERAL-LAW MUNICIPALITY TO ANNEX
83	83	NAVIGABLE STREAM. Notwithstanding Subchapter C or C-1, the [The]
84	84	governing body of a general-law municipality by ordinance may annex
85	85	any navigable stream adjacent to the municipality and within the
86	86	municipality's extraterritorial jurisdiction.
87	87	SECTION 8. Section 43.029, Local Government Code, is
88	88	amended by amending Subsection (c) and adding Subsections (d), (e),
89	89	(f), and (g) to read as follows:
90	90	(c) Notwithstanding Subchapter C or C-1, the [The] board of
91	91	trustees of a public school occupying the area may petition the
92	92	governing body of the municipality in writing to annex the area
93	93	under the procedures provided by this section. [Sections
94	94	43.028(c)-(f) apply to the petition and annexation under this
95	95	section in the same manner in which they apply to the petition and
96	96	annexation under that section.]
97	97	(d) The petition must describe the area by metes and bounds
98	98	and must be acknowledged in the manner required for deeds by each
99	99	person having an interest in the area.
100	100	(e) After the 5th day but on or before the 30th day after the
101	101	date the petition is filed, the governing body shall hear the
102	102	petition and the arguments for and against the annexation and shall
103	103	grant or refuse the petition as the governing body considers
104	104	appropriate.
105	105	(f) If the governing body grants the petition, the governing
106	106	body by ordinance may annex the area. On the effective date of the
107	107	ordinance, the area becomes a part of the municipality.
108	108	(g) If the petition is granted and the ordinance is adopted,
109	109	a certified copy of the ordinance together with a copy or duplicate
110	110	of the petition shall be filed in the office of the county clerk of
111	111	the county in which the municipality is located.
112	112	SECTION 9. Section 43.031, Local Government Code, is
113	113	amended to read as follows:
114	114	Sec. 43.031. AUTHORITY OF ADJACENT MUNICIPALITIES TO CHANGE
115	115	BOUNDARIES BY AGREEMENT. Notwithstanding Subchapter C or C-1,
116	116	adjacent [Adjacent] municipalities may make mutually agreeable
117	117	changes in their boundaries of areas that are less than 1,000 feet
118	118	in width.
119	119	SECTION 10. The heading to Subchapter C, Chapter 43, Local
120	120	Government Code, is amended to read as follows:
121	121	SUBCHAPTER C. ANNEXATION OF AREAS WITH A POPULATION OF LESS THAN
122	122	200 [PROCEDURE FOR AREAS ANNEXED UNDER MUNICIPAL ANNEXATION PLAN]
123	123	SECTION 11. Subchapter C, Chapter 43, Local Government
124	124	Code, is amended by adding Sections 43.0511 through 43.0517 to read
125	125	as follows:
126	126	Sec. 43.0511. AUTHORITY TO ANNEX. A municipality may annex
127	127	an area with a population of less than 200 only if the municipality
128	128	obtains consent to annex the area through a petition signed by:
129	129	(1) more than 50 percent of the registered voters of
130	130	the area; and
131	131	(2) if the registered voters of the area do not own
132	132	more than 50 percent of the land in the area, more than 50 percent of
133	133	the owners of land in the area.
134	134	Sec. 43.0512. RESOLUTION. The governing body of the
135	135	municipality that proposes to annex an area under this subchapter
136	136	must adopt a resolution that includes:
137	137	(1) a statement of the municipality's intent to annex
138	138	the area;
139	139	(2) a detailed description and map of the area to be
140	140	annexed; and
141	141	(3) a description of the services to be provided by the
142	142	municipality in the area after the annexation, including, as
143	143	applicable:
144	144	(A) police protection;
145	145	(B) fire protection;
146	146	(C) emergency medical services;
147	147	(D) solid waste collection;
148	148	(E) operation and maintenance of water and
149	149	wastewater facilities in the annexed area;
150	150	(F) operation and maintenance of roads and
151	151	streets, including road and street lighting;
152	152	(G) operation and maintenance of parks,
153	153	playgrounds, and swimming pools; and
154	154	(H) operation and maintenance of any other
155	155	publicly owned facility, building, or service.
156	156	Sec. 43.0513. NOTICE OF PROPOSED ANNEXATION. Not later
157	157	than the seventh day after the date the governing body of the
158	158	municipality adopts the resolution under Section 43.0512, the
159	159	municipality must mail to each resident in the area proposed to be
160	160	annexed notification of the proposed annexation that includes:
161	161	(1) notice of the public hearing required by Section
162	162	43.0514;
163	163	(2) an explanation of the 60-day petition period
164	164	described by Section 43.0515; and
165	165	(3) a description of the services to be provided by the
166	166	municipality in the area after the annexation.
167	167	Sec. 43.0514. PUBLIC HEARING. The governing body of a
168	168	municipality must conduct at least one public hearing not earlier
169	169	than the 21st day and not later than the 30th day after the date the
170	170	governing body adopts the resolution under Section 43.0512.
171	171	Sec. 43.0515. PETITION. (a) The petition required by
172	172	Section 43.0511 may be signed only by a registered voter of the area
173	173	proposed to be annexed or an owner of land in the area. The petition
174	174	must provide for the person signing to state whether the person is
175	175	signing as a registered voter of the area, as an owner of land in the
176	176	area, or as both.
177	177	(b) The municipality may collect signatures on the petition
178	178	only during the period beginning on the 31st day after the date the
179	179	governing body of the municipality adopts the resolution under
180	180	Section 43.0512 and ending on the 90th day after the date the
181	181	resolution is adopted.
182	182	(c) The petition must clearly state that a person signing
183	183	the petition is consenting to the proposed annexation.
184	184	(d) The petition must include a map of and describe the area
185	185	proposed to be annexed.
186	186	(e) The municipality must collect petition signatures in
187	187	person, except that the municipality may provide for an owner of
188	188	land in the area who is not a resident of the area to sign the
189	189	petition electronically.
190	190	(f) Chapter 277, Election Code, applies to a petition under
191	191	this section.
192	192	Sec. 43.0516. RESULTS OF PETITION. (a) When the petition
193	193	period prescribed by Section 43.0515 ends, the petition shall be
194	194	verified by the municipal secretary or other person responsible for
195	195	verifying signatures. The municipality must notify the residents
196	196	of the area proposed to be annexed of the results of the petition.
197	197	(b) If the municipality does not obtain the number of
198	198	signatures on the petition required to annex the area, the
199	199	municipality may not annex the area and may not adopt another
200	200	resolution under Section 43.0512 to annex the area until the first
201	201	anniversary of the date the petition period ended.
202	202	(c) If the municipality obtains the number of signatures on
203	203	the petition required to annex the area, the municipality may annex
204	204	the area after:
205	205	(1) providing notice under Subsection (a);
206	206	(2) holding a public hearing at which members of the
207	207	public are given an opportunity to be heard; and
208	208	(3) holding a final hearing not earlier than the 10th
209	209	day after the date of the public hearing under Subdivision (2) at
210	210	which the ordinance annexing the area may be adopted.
211	211	Sec. 43.0517. VOTER APPROVAL BY MUNICIPAL RESIDENTS ON
212	212	PETITION. If a petition protesting the annexation of an area under
213	213	this subchapter is signed by a number of registered voters of the
214	214	municipality proposing the annexation equal to at least 50 percent
215	215	of the number of voters who voted in the most recent municipal
216	216	election and is received by the secretary of the municipality
217	217	before the date the petition period prescribed by Section 43.0515
218	218	ends, the municipality may not complete the annexation of the area
219	219	without approval of a majority of the voters of the municipality
220	220	voting at an election called and held for that purpose.
221	221	SECTION 12. The heading to Subchapter C-1, Chapter 43,
222	222	Local Government Code, is amended to read as follows:
223	223	SUBCHAPTER C-1. ANNEXATION OF AREAS WITH A POPULATION OF AT LEAST
224	224	200 [PROCEDURE FOR AREAS EXEMPTED FROM MUNICIPAL ANNEXATION PLAN]
225	225	SECTION 13. Subchapter C-1, Chapter 43, Local Government
226	226	Code, is amended by adding Sections 43.0611 through 43.0618 to read
227	227	as follows:
228	228	Sec. 43.0611. AUTHORITY TO ANNEX. A municipality may annex
229	229	an area with a population of 200 or more only if the following
230	230	conditions are met, as applicable:
231	231	(1) the municipality holds an election in the area
232	232	proposed to be annexed at which the qualified voters of the area may
233	233	vote on the question of the annexation, and a majority of the votes
234	234	received at the election approve the annexation; and
235	235	(2) if the registered voters of the area do not own
236	236	more than 50 percent of the land in the area, the municipality
237	237	obtains consent to annex the area through a petition signed by more
238	238	than 50 percent of the owners of land in the area.
239	239	Sec. 43.0612. RESOLUTION. The governing body of the
240	240	municipality that proposes to annex an area under this subchapter
241	241	must adopt a resolution that includes:
242	242	(1) a statement of the municipality's intent to annex
243	243	the area;
244	244	(2) a detailed description and map of the area to be
245	245	annexed; and
246	246	(3) a description of the services to be provided by the
247	247	municipality in the area after the annexation, including, as
248	248	applicable:
249	249	(A) police protection;
250	250	(B) fire protection;
251	251	(C) emergency medical services;
252	252	(D) solid waste collection;
253	253	(E) operation and maintenance of water and
254	254	wastewater facilities in the annexed area;
255	255	(F) operation and maintenance of roads and
256	256	streets, including road and street lighting;
257	257	(G) operation and maintenance of parks,
258	258	playgrounds, and swimming pools; and
259	259	(H) operation and maintenance of any other
260	260	publicly owned facility, building, or service.
261	261	Sec. 43.0613. NOTICE OF PROPOSED ANNEXATION. Not later
262	262	than the seventh day after the date the governing body of the
263	263	municipality adopts the resolution under Section 43.0612, the
264	264	municipality must mail to each property owner in the area proposed
265	265	to be annexed notification of the proposed annexation that
266	266	includes:
267	267	(1) notice of the public hearing required by Section
268	268	43.0614;
269	269	(2) notice that an election on the question of
270	270	annexing the area will be held; and
271	271	(3) a description of the services to be provided by the
272	272	municipality in the area after the annexation.
273	273	Sec. 43.0614. PUBLIC HEARINGS. (a) The governing body of a
274	274	municipality must conduct at least one public hearing not earlier
275	275	than the 21st day and not later than the 30th day after the date the
276	276	governing body adopts the resolution under Section 43.0612.
277	277	(b) The governing body must conduct an additional public
278	278	hearing not earlier than the 31st day and not later than the 90th
279	279	day after the date the governing body adopts a resolution under
280	280	Section 43.0612.
281	281	Sec. 43.0615. PROPERTY OWNER CONSENT REQUIRED FOR CERTAIN
282	282	AREAS. (a) If the registered voters in the area proposed to be
283	283	annexed do not own more than 50 percent of the land in the area, the
284	284	municipality must obtain consent to the annexation through a
285	285	petition signed by more than 50 percent of the owners of land in the
286	286	area in addition to the election required by this subchapter.
287	287	(b) The municipality must obtain the consent required by
288	288	this section through the petition process prescribed by Section
289	289	43.0515, and the petition must be verified in the manner provided by
290	290	Section 43.0516(a).
291	291	Sec. 43.0616. ELECTION. (a) A municipality shall order an
292	292	election on the question of annexing an area to be held on the first
293	293	uniform election date that falls on or after:
294	294	(1) the 90th day after the date the governing body of
295	295	the municipality adopts the resolution under Section 43.0612; or
296	296	(2) if the consent of the owners of land in the area is
297	297	required under Section 43.0615, the 78th day after the date the
298	298	petition period to obtain that consent ends.
299	299	(b) An election under this section shall be held in the same
300	300	manner as general elections of the municipality. The municipality
301	301	shall pay for the costs of holding the election.
302	302	(c) A municipality that holds an election under this section
303	303	may not hold another election on the question of annexation before
304	304	the corresponding uniform election date of the following year.
305	305	Sec. 43.0617. RESULTS OF ELECTION AND PETITION. (a)
306	306	Following an election held under this subchapter, the municipality
307	307	must notify the residents of the area proposed to be annexed of the
308	308	results of the election and, if applicable, of the petition
309	309	required by Section 43.0615.
310	310	(b) If at the election held under this subchapter a majority
311	311	of qualified voters do not approve the proposed annexation, or if
312	312	the municipality is required to petition owners of land in the area
313	313	under Section 43.0615 and does not obtain the required number of
314	314	signatures, the municipality may not annex the area and may not
315	315	adopt another resolution under Section 43.0612 to annex the area
316	316	until the first anniversary of the date of the adoption of the
317	317	resolution.
318	318	(c) If at the election held under this subchapter a majority
319	319	of qualified voters approve the proposed annexation, and if the
320	320	municipality, as applicable, obtains the required number of
321	321	petition signatures under Section 43.0615, the municipality may
322	322	annex the area after:
323	323	(1) providing notice under Subsection (a);
324	324	(2) holding a public hearing at which members of the
325	325	public are given an opportunity to be heard; and
326	326	(3) holding a final hearing not earlier than the 10th
327	327	day after the date of the public hearing under Subdivision (2) at
328	328	which the ordinance annexing the area may be adopted.
329	329	Sec. 43.0618. VOTER APPROVAL BY MUNICIPAL RESIDENTS ON
330	330	PETITION. If a petition protesting the annexation of an area under
331	331	this subchapter is signed by a number of registered voters of the
332	332	municipality proposing the annexation equal to at least 50 percent
333	333	of the number of voters who voted in the most recent municipal
334	334	election and is received by the secretary of the municipality
335	335	before the date the election required by this subchapter is held,
336	336	the municipality may not complete the annexation of the area
337	337	without approval of a majority of the voters of the municipality
338	338	voting at a separate election called and held for that purpose.
339	339	SECTION 14. Section 43.071(e), Local Government Code, is
340	340	amended to read as follows:
341	341	(e) Subsections (b) and (c) [(b)-(d)] do not apply to the
342	342	annexation of:
343	343	(1) an area within a water or sewer district if:
344	344	(A) the governing body of the district consents
345	345	to the annexation;
346	346	(B) the owners in fee simple of the area to be
347	347	annexed consent to the annexation; and
348	348	(C) the annexed area does not exceed 525 feet in
349	349	width at its widest point;
350	350	(2) a water or sewer district that has a noncontiguous
351	351	part that is not within the extraterritorial jurisdiction of the
352	352	municipality; or
353	353	(3) a part of a special utility district created or
354	354	operating under Chapter 65, Water Code.
355	355	SECTION 15. Sections 43.0715(b) and (c), Local Government
356	356	Code, are amended to read as follows:
357	357	(b) If a municipality with a population of less than 1.5
358	358	million annexes a special district for full or limited purposes and
359	359	the annexation precludes or impairs the ability of the district to
360	360	issue bonds, the municipality shall, prior to the effective date of
361	361	the annexation, pay in cash to the landowner or developer of the
362	362	district a sum equal to all actual costs and expenses incurred by
363	363	the landowner or developer in connection with the district that the
364	364	district has, in writing, agreed to pay and that would otherwise
365	365	have been eligible for reimbursement from bond proceeds under the
366	366	rules and requirements of the Texas [Natural Resource Conservation]
367	367	Commission on Environmental Quality as such rules and requirements
368	368	exist on the date of annexation. [For an annexation that is subject
369	369	to preclearance by a federal authority, a payment will be
370	370	considered timely if the municipality: (i) escrows the
371	371	reimbursable amounts determined in accordance with Subsection (c)
372	372	prior to the effective date of the annexation; and (ii)
373	373	subsequently causes the escrowed funds and accrued interest to be
374	374	disbursed to the developer within five business days after the
375	375	municipality receives notice of the preclearance.]
376	376	(c) At the time notice of the municipality's intent to annex
377	377	the land within the district is first published [in accordance with
378	378	Section 43.052], the municipality shall proceed to initiate and
379	379	complete a report for each developer conducted in accordance with
380	380	the format approved by the Texas [Natural Resource Conservation]
381	381	Commission on Environmental Quality for audits. In the event the
382	382	municipality is unable to complete the report prior to the
383	383	effective date of the annexation as a result of the developer's
384	384	failure to provide information to the municipality which cannot be
385	385	obtained from other sources, the municipality shall obtain from the
386	386	district the estimated costs of each project previously undertaken
387	387	by a developer which are eligible for reimbursement. The amount of
388	388	such costs, as estimated by the district, shall be escrowed by the
389	389	municipality for the benefit of the persons entitled to receive
390	390	payment in an insured interest-bearing account with a financial
391	391	institution authorized to do business in the state. To compensate
392	392	the developer for the municipality's use of the infrastructure
393	393	facilities pending the determination of the reimbursement amount
394	394	[or federal preclearance], all interest accrued on the escrowed
395	395	funds shall be paid to the developer whether or not the annexation
396	396	is valid. Upon placement of the funds in the escrow account, the
397	397	annexation may become effective. In the event a municipality
398	398	timely escrows all estimated reimbursable amounts as required by
399	399	this subsection and all such amounts, determined to be owed,
400	400	including interest, are subsequently disbursed to the developer
401	401	within five days of final determination in immediately available
402	402	funds as required by this section, no penalties or interest shall
403	403	accrue during the pendency of the escrow. Either the municipality
404	404	or developer may, by written notice to the other party, require
405	405	disputes regarding the amount owed under this section to be subject
406	406	to nonbinding arbitration in accordance with the rules of the
407	407	American Arbitration Association.
408	408	SECTION 16. Sections 43.072(b) and (d), Local Government
409	409	Code, are amended to read as follows:
410	410	(b) A home-rule municipality having a common boundary with a
411	411	district subject to this section may annex the area of the district
412	412	if:
413	413	(1) the annexation complies with the requirements of
414	414	Subchapter C or C-1, as applicable [is approved by a majority of the
415	415	qualified voters who vote on the question at an election held under
416	416	this section];
417	417	(2) the annexation is completed before the date that
418	418	is one year after the date the petition period prescribed by Section
419	419	43.0515 ends or the date of the election under Section 43.0616, as
420	420	applicable; and
421	421	(3) all the area of the district is annexed.
422	422	(d) Annexation of area under this section is exempt from the
423	423	provisions of this chapter that prohibit:
424	424	(1) a municipality from annexing area outside its
425	425	extraterritorial jurisdiction; or
426	426	(2) [annexation of area narrower than the minimum
427	427	width prescribed by Section 43.054; or
428	428	[(3)] reduction of the extraterritorial jurisdiction
429	429	of a municipality without the written consent of the municipality's
430	430	governing body.
431	431	SECTION 17. Section 43.0751, Local Government Code, is
432	432	amended by amending Subsections (b), (d), (e), (f), (g), (h), (j),
433	433	(k), (m), and (n) and adding Subsection (e-1) to read as follows:
434	434	(b) The governing bodies of a municipality and a district
435	435	may negotiate and enter into a written strategic partnership
436	436	agreement for the district by mutual consent. The governing body of
437	437	a municipality, on written request from a district located in the
438	438	municipality's extraterritorial jurisdiction [included in the
439	439	municipality's annexation plan under Section 43.052], may [shall]
440	440	negotiate and enter into a written strategic partnership agreement
441	441	with the district. [A district included in a municipality's
442	442	annexation plan under Section 43.052:
443	443	[(1) may not submit its written request before the
444	444	date of the second hearing required under Section 43.0561; and
445	445	[(2) must submit its written request before the 61st
446	446	day after the date of the second hearing required under Section
447	447	43.0561.]
448	448	(d) Before the governing body of a municipality or a
449	449	district adopts a strategic partnership agreement, it shall conduct
450	450	two public hearings at which members of the public who wish to
451	451	present testimony or evidence regarding the proposed agreement
452	452	shall be given the opportunity to do so. Notice of public hearings
453	453	conducted by the governing body of a municipality under this
454	454	subsection shall be published in a newspaper of general circulation
455	455	in the municipality and in the district[. The notice must be in the
456	456	format prescribed by Section 43.123(b)] and must be published at
457	457	least once on or after the 20th day before the [each] date of each
458	458	hearing. The notice may not be smaller than one-quarter page of a
459	459	standard-size or tabloid-size newspaper, and the headline on the
460	460	notice must be in 18-point or larger type. Notice of public
461	461	hearings conducted by the governing body of a district under this
462	462	subsection shall be given in accordance with the district's
463	463	notification procedures for other matters of public importance.
464	464	Any notice of a public hearing conducted under this subsection
465	465	shall contain a statement of the purpose of the hearing, the date,
466	466	time, and place of the hearing, and the location where copies of the
467	467	proposed agreement may be obtained prior to the hearing. The
468	468	governing bodies of a municipality and a district may conduct joint
469	469	public hearings under this subsection, provided that at least one
470	470	public hearing is conducted within the district.
471	471	(e) [The governing body of a municipality may not annex a
472	472	district for limited purposes under this section or under the
473	473	provisions of Subchapter F until it has adopted a strategic
474	474	partnership agreement with the district.] The governing body of a
475	475	municipality may not adopt a strategic partnership agreement before
476	476	the agreement has been adopted by the governing body of the affected
477	477	district.
478	478	(e-1) Beginning September 1, 2017, a strategic partnership
479	479	agreement may not provide for limited purpose annexation.
480	480	(f) A strategic partnership agreement may provide for the
481	481	following:
482	482	(1) [limited-purpose annexation of the district on
483	483	terms acceptable to the municipality and the district provided that
484	484	the district shall continue in existence during the period of
485	485	limited-purpose annexation;
486	486	[(2) limited-purpose annexation of a district located
487	487	in a county with a population of more than 3.3 million:
488	488	[(A) only if the municipality does not require
489	489	services, permits, or inspections or impose fees for services,
490	490	permits, or inspections within the district; and
491	491	[(B) provided that this subsection does not
492	492	prevent the municipality from providing services within the
493	493	district if:
494	494	[(i) the provision of services is specified
495	495	and agreed to in the agreement;
496	496	[(ii) the provision of services is not
497	497	solely the result of a regulatory plan adopted by the municipality
498	498	in connection with the limited-purpose annexation of the district;
499	499	and
500	500	[(iii) the district has obtained the
501	501	authorization of the governmental entity currently providing the
502	502	service;
503	503	[(3)] payments by the municipality to the district for
504	504	services provided by the district;
505	505	(2) [(4)] annexation of any commercial property in a
506	506	district [for full purposes] by the municipality, notwithstanding
507	507	any other provision of this code or the Water Code, except for the
508	508	obligation of the municipality to provide, directly or through
509	509	agreement with other units of government, full provision of
510	510	municipal services to annexed territory, in lieu of any annexation
511	511	of residential property or payment of any fee on residential
512	512	property in lieu of annexation of residential property in the
513	513	district authorized by this subsection;
514	514	(3) an [(5) a full-purpose] annexation provision on
515	515	terms acceptable to the municipality and the district;
516	516	(4) [(6)] conversion of the district to a limited
517	517	district including some or all of the land included within the
518	518	boundaries of the district, which conversion shall be effective on
519	519	the [full-purpose] annexation conversion date established under
520	520	Subdivision (3) [(5)];
521	521	(5) [(7)] agreements existing between districts and
522	522	governmental bodies and private providers of municipal services in
523	523	existence on the date a municipality evidences its intention by
524	524	adopting a resolution to negotiate for a strategic partnership
525	525	agreement with the district shall be continued and provision made
526	526	for modifications to such existing agreements; and
527	527	(6) [(8)] such other lawful terms that the parties
528	528	consider appropriate.
529	529	(g) A strategic partnership agreement that provides for the
530	530	creation of a limited district under Subsection (f)(4) [(f)(6)]
531	531	shall include provisions setting forth the following:
532	532	(1) the boundaries of the limited district;
533	533	(2) the functions of the limited district and the term
534	534	during which the limited district shall exist after [full-purpose]
535	535	annexation, which term may be renewed successively by the governing
536	536	body of the municipality, provided that no such original or renewed
537	537	term shall exceed 10 years;
538	538	(3) the name by which the limited district shall be
539	539	known; and
540	540	(4) the procedure by which the limited district may be
541	541	dissolved prior to the expiration of any term established under
542	542	Subdivision (2).
543	543	(h) On the [full-purpose] annexation conversion date set
544	544	forth in the strategic partnership agreement pursuant to Subsection
545	545	(f)(3) [(f)(5)(A)], the land included within the boundaries of the
546	546	district shall be deemed to be within the [full-purpose] boundary
547	547	limits of the municipality without the need for further action by
548	548	the governing body of the municipality. The [full-purpose]
549	549	annexation conversion date established by a strategic partnership
550	550	agreement may be altered only by mutual agreement of the district
551	551	and the municipality. However, nothing herein shall prevent the
552	552	municipality from terminating the agreement and instituting
553	553	proceedings to annex the district, on request by the governing body
554	554	of the district, on any date prior to the [full-purpose] annexation
555	555	conversion date established by the strategic partnership
556	556	agreement. [Land annexed for limited or full purposes under this
557	557	section shall not be included in calculations prescribed by Section
558	558	43.055(a).]
559	559	(j) Except as limited by this section or the terms of a
560	560	strategic partnership agreement, a district that has been annexed
561	561	for limited purposes by a municipality before September 1, 2017,
562	562	and a limited district shall have and may exercise all functions,
563	563	powers, and authority otherwise vested in a district.
564	564	(k) A municipality that has annexed all or part of a
565	565	district for limited purposes under this section before September
566	566	1, 2017, may impose a sales and use tax within the boundaries of the
567	567	part of the district that is annexed for limited purposes. Except
568	568	to the extent it is inconsistent with this section, Chapter 321, Tax
569	569	Code, governs the imposition, computation, administration,
570	570	governance, and abolition of the sales and use tax.
571	571	(m) A municipality that has annexed [may annex] a district
572	572	for limited purposes to implement a strategic partnership agreement
573	573	under this section before September 1, 2017, shall not annex for
574	574	full purposes any territory within a district created pursuant to a
575	575	consent agreement with that municipality executed before August 27,
576	576	1979. The prohibition on annexation established by this subsection
577	577	shall expire on September 1, 1997, or on the date on or before which
578	578	the municipality and any district may have separately agreed that
579	579	annexation would not take place whichever is later.
580	580	(n) This subsection applies only to a municipality any
581	581	portion of which is located in a county that has a population of not
582	582	less than 285,000 and not more than 300,000 and that borders the
583	583	Gulf of Mexico and is adjacent to a county with a population of more
584	584	than 3.3 million. A municipality may impose within the boundaries
585	585	of a district a municipal sales and use tax authorized by Chapter
586	586	321, Tax Code, or a municipal hotel occupancy tax authorized by
587	587	Chapter 351, Tax Code, that is imposed in the municipality if:
588	588	(1) the municipality has annexed the district for
589	589	limited purposes under this section before September 1, 2017; or
590	590	(2) following two public hearings on the matter, the
591	591	municipality and the district enter a written agreement providing
592	592	for the imposition of the tax or taxes.
593	593	SECTION 18. Subchapter D, Chapter 43, Local Government
594	594	Code, is amended by adding Section 43.07512 to read as follows:
595	595	Sec. 43.07512. LIMITED PURPOSE ANNEXATION OF ANY SPECIAL
596	596	DISTRICT PROHIBITED UNDER STRATEGIC PARTNERSHIP AGREEMENT. (a) In
597	597	this section, "special district" means a political subdivision of
598	598	this state with a limited geographic area created by local law or
599	599	under general law for a special purpose.
600	600	(b) Notwithstanding any other general or local law, a
601	601	strategic partnership agreement entered into on or after September
602	602	1, 2017, may not provide for the limited purpose annexation of all
603	603	or part of a special district.
604	604	SECTION 19. Section 43.07515(a), Local Government Code, is
605	605	amended to read as follows:
606	606	(a) A municipality may not regulate under Section 43.0751
607	607	[or 43.0752] the sale, use, storage, or transportation of fireworks
608	608	outside of the municipality's boundaries.
609	609	SECTION 20. Section 43.101(d), Local Government Code, is
610	610	amended to read as follows:
611	611	(d) The municipality may annex the area even if part of the
612	612	area is outside the municipality's extraterritorial jurisdiction
613	613	[or is narrower than the minimum width prescribed by Section
614	614	43.054. Section 43.055, which relates to the amount of area a
615	615	municipality may annex in a calendar year, does not apply to the
616	616	annexation].
617	617	SECTION 21. Section 43.102(d), Local Government Code, is
618	618	amended to read as follows:
619	619	(d) The municipality may annex the area even if the area is
620	620	outside the municipality's extraterritorial jurisdiction or [,] is
621	621	in another municipality's extraterritorial jurisdiction[, or is
622	622	narrower than the minimum width prescribed by Section 43.054.
623	623	Section 43.055, which relates to the amount of area a municipality
624	624	may annex in a calendar year, does not apply to the annexation].
625	625	SECTION 22. Section 43.1025(c), Local Government Code, is
626	626	amended to read as follows:
627	627	(c) Annexation of the [The] area described by Subsection (b)
628	628	[may be annexed without the consent of the owners or residents of
629	629	the area, but the annexation] may not occur unless each
630	630	municipality in whose extraterritorial jurisdiction the area may be
631	631	located:
632	632	(1) consents to the annexation; and
633	633	(2) reduces its extraterritorial jurisdiction over
634	634	the area as provided by Section 42.023.
635	635	SECTION 23. Subchapter F, Chapter 43, Local Government
636	636	Code, is amended by adding Section 43.1211 to read as follows:
637	637	Sec. 43.1211. APPLICABILITY. This subchapter applies to an
638	638	area that was annexed for a limited purpose as authorized before
639	639	September 1, 2017.
640	640	SECTION 24. Section 43.127(a), Local Government Code, is
641	641	amended to read as follows:
642	642	(a) On [Except as provided by Section 43.123(e), on] or
643	643	before the date prescribed by the regulatory plan prepared for the
644	644	limited purpose area [under Section 43.123(d)(2)], the
645	645	municipality must annex the area for full purposes. [This
646	646	requirement may be waived and the date for full-purpose annexation
647	647	postponed by written agreement between the municipality and a
648	648	majority of the affected landowners. A written agreement to waive
649	649	the municipality's obligation to annex the area for full purposes
650	650	binds all future owners of land annexed for limited purposes
651	651	pursuant to that waiver.]
652	652	SECTION 25. Sections 43.141(a) and (b), Local Government
653	653	Code, are amended to read as follows:
654	654	(a) A majority of the qualified voters of an annexed area
655	655	may petition the governing body of the municipality to disannex the
656	656	area if the municipality fails or refuses to provide services or to
657	657	cause services to be provided to the area as described by the
658	658	written agreement under Section 43.0213 or the resolution under
659	659	Section 43.0512 or 43.0612, as applicable [within the period
660	660	specified by Section 43.056 or by the service plan prepared for the
661	661	area under that section].
662	662	(b) If the governing body fails or refuses to disannex the
663	663	area within 60 days after the date of the receipt of the petition,
664	664	any one or more of the signers of the petition may bring a cause of
665	665	action in a district court of the county in which the area is
666	666	principally located to request that the area be disannexed. On the
667	667	filing of an answer by the governing body, and on application of
668	668	either party, the case shall be advanced and heard without further
669	669	delay in accordance with the Texas Rules of Civil Procedure. The
670	670	district court shall enter an order disannexing the area if the
671	671	court finds that a valid petition was filed with the municipality
672	672	and that the municipality failed to perform [its obligations in
673	673	accordance with the service plan or failed to perform] in good
674	674	faith.
675	675	SECTION 26. Section 43.201(2), Local Government Code, is
676	676	amended to read as follows:
677	677	(2) "Limited-purpose annexation" means annexation
678	678	authorized under former Section 43.121, as that section existed on
679	679	January 1, 2017.
680	680	SECTION 27. Section 43.203(a), Local Government Code, is
681	681	amended to read as follows:
682	682	(a) This section applies only to the [The] governing body of
683	683	a district that by resolution petitioned [may petition] a
684	684	municipality to alter the annexation status of land in the district
685	685	from full-purpose annexation to limited-purpose annexation and
686	686	before September 1, 2017:
687	687	(1) entered into an agreement to alter the status of
688	688	annexation as provided by this section; or
689	689	(2) had its status automatically altered by operation
690	690	of Subsection (c).
691	691	SECTION 28. Section 43.905(a), Local Government Code, is
692	692	amended to read as follows:
693	693	(a) A municipality that proposes to annex an area shall
694	694	provide written notice of the proposed annexation to each public
695	695	school district located in the area proposed for annexation within
696	696	the period prescribed for providing [publishing] the notice of the
697	697	first hearing under Section 43.0213, 43.0513, [43.0561] or 43.0613
698	698	[43.063], as applicable.
699	699	SECTION 29. Section 775.0754(d), Health and Safety Code, is
700	700	amended to read as follows:
701	701	(d) A municipality that enters into an agreement under this
702	702	section is not required to provide emergency services in that
703	703	annexed territory. To the extent of a conflict between this
704	704	subsection and [Section 43.056, Local Government Code, or] any
705	705	other law, this subsection controls.
706	706	SECTION 30. Section 3833.209(e), Special District Local
707	707	Laws Code, is amended to read as follows:
708	708	(e) The terms and conditions of the negotiated service plan
709	709	bind the city for the period provided by Section 43.056(l), Local
710	710	Government Code, as that section existed on January 1, 2017, and the
711	711	developer, the developer's heirs, successors, and assigns, and any
712	712	person taking title to all or a portion of the property annexed
713	713	under the annexation petition for that period.
714	714	SECTION 31. Section 8489.109, Special District Local Laws
715	715	Code, is amended to read as follows:
716	716	Sec. 8489.109. MUNICIPAL ANNEXATION ADJACENT TO DISTRICT.
717	717	For the purposes of any [Section 43.021(2), Local Government Code,
718	718	or other] law, including a municipal charter or ordinance relating
719	719	to annexation, an area adjacent to the district or any new district
720	720	created by the division of the district is considered adjacent to a
721	721	municipality in whose corporate limits or extraterritorial
722	722	jurisdiction any of the land in the area described by Section 2 of
723	723	the Act enacting this chapter is located.
724	724	SECTION 32. Section 9038.110, Special District Local Laws
725	725	Code, is amended to read as follows:
726	726	Sec. 9038.110. MUNICIPAL ANNEXATION ADJACENT TO DISTRICT.
727	727	For the purposes of any [Section 43.021(2), Local Government Code,
728	728	or other] law, including a municipal charter or ordinance relating
729	729	to annexation, an area adjacent to the district or any new district
730	730	created by the division of the district is considered adjacent to a
731	731	municipality in whose corporate limits or extraterritorial
732	732	jurisdiction any of the land in the area described by Section 2 of
733	733	the Act creating this chapter is located.
734	734	SECTION 33. Section 9039.110, Special District Local Laws
735	735	Code, is amended to read as follows:
736	736	Sec. 9039.110. MUNICIPAL ANNEXATION ADJACENT TO DISTRICT.
737	737	For the purposes of any [Section 43.021(2), Local Government Code,
738	738	or other] law, including a municipal charter or ordinance relating
739	739	to annexation, an area adjacent to the district or any new district
740	740	created by the division of the district is considered adjacent to a
741	741	municipality in whose corporate limits or extraterritorial
742	742	jurisdiction any of the land in the area described by Section 2 of
743	743	the Act creating this chapter is located.
744	744	SECTION 34. (a) Sections 42.0411, 43.022, 43.023, 43.024,
745	745	43.025, 43.028, 43.030, 43.032, 43.033, 43.034, 43.035(c), 43.036,
746	746	43.052, 43.053, 43.054, 43.0545, 43.0546, 43.055, 43.056, 43.0561,
747	747	43.0562, 43.0563, 43.0564, 43.0565, 43.0567, 43.057, 43.061,
748	748	43.062, 43.063, 43.064, 43.065, 43.071(d), (f), and (g), 43.072(c),
749	749	(e), (g), (h), (i), (j), (k), (l), and (m), 43.0751(o) and (r),
750	750	43.0752, 43.101(c), 43.102(c), 43.1025(e) and (g), 43.103, 43.105,
751	751	43.121, 43.122, 43.123, 43.124, 43.125, 43.126, 43.129, 43.132,
752	752	43.147, and 43.906, Local Government Code, are repealed.
753	753	(b) Subchapter Y, Chapter 43, Local Government Code, is
754	754	repealed.
755	755	(c) Sections 8374.252(a), 8375.252(a), 8376.252(a),
756	756	8377.252(a), 8378.252(a), 8382.252(a), 8383.252(a), 8384.252(a),
757	757	8385.252(a), and 8477.302(a), Special District Local Laws Code, are
758	758	repealed.
759	759	(d) Section 5.701(n)(6), Water Code, is repealed.
760	760	SECTION 35. The changes in law made by this Act apply only
761	761	to the annexation of an area that is not final on the effective date
762	762	of this Act.
763	763	SECTION 36. This Act takes effect September 1, 2017.