Texas 2019 - 86th Regular

Texas House Bill HB347 Compare Versions

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1-H.B. No. 347
1+By: King of Parker, et al. H.B. No. 347
2+ (Senate Sponsor - Birdwell)
3+ (In the Senate - Received from the House April 11, 2019;
4+ April 16, 2019, read first time and referred to Committee on State
5+ Affairs; April 29, 2019, reported favorably by the following vote:
6+ Yeas 7, Nays 0; April 29, 2019, sent to printer.)
7+Click here to see the committee vote
28
39
10+ A BILL TO BE ENTITLED
411 AN ACT
512 relating to consent annexation requirements.
613 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
714 ARTICLE 1. REPEAL OF TIER SYSTEM
815 SECTION 1.01. The following provisions of Chapter 43, Local
916 Government Code, are repealed:
1017 (1) Sections 43.001(2), (3), (4), and (5);
1118 (2) Section 43.011;
1219 (3) Subchapter B;
1320 (4) Section 43.0505(b);
1421 (5) Section 43.052;
1522 (6) Section 43.053;
1623 (7) Section 43.056(q);
1724 (8) Section 43.0561;
1825 (9) Section 43.0562;
1926 (10) Section 43.0563;
2027 (11) Section 43.0564;
2128 (12) Section 43.061(b);
2229 (13) Section 43.066;
2330 (14) Section 43.067;
2431 (15) Section 43.068;
2532 (16) Section 43.069;
2633 (17) Section 43.0751(o);
2734 (18) Section 43.0752;
2835 (19) Section 43.103;
2936 (20) Section 43.105; and
3037 (21) Subchapter Y.
3138 SECTION 1.02. The heading to Subchapter C-2, Chapter 43,
3239 Local Government Code, is amended to read as follows:
3340 SUBCHAPTER C-2. GENERAL ANNEXATION AUTHORITY AND PROCEDURES
3441 REGARDING CONSENT ANNEXATIONS[: TIER 2 MUNICIPALITIES]
3542 SECTION 1.03. The heading to Subchapter C-3, Chapter 43,
3643 Local Government Code, is amended to read as follows:
3744 SUBCHAPTER C-3. ANNEXATION OF AREA ON REQUEST OF OWNERS[: TIER 2
3845 MUNICIPALITIES]
3946 SECTION 1.04. The heading to Subchapter C-4, Chapter 43,
4047 Local Government Code, is amended to read as follows:
4148 SUBCHAPTER C-4. ANNEXATION OF AREAS WITH POPULATION OF LESS THAN
4249 200 BY PETITION [: TIER 2 MUNICIPALITIES]
4350 SECTION 1.05. The heading to Subchapter C-5, Chapter 43,
4451 Local Government Code, is amended to read as follows:
4552 SUBCHAPTER C-5. ANNEXATION OF AREAS WITH POPULATION OF AT LEAST 200
4653 BY ELECTION [: TIER 2 MUNICIPALITIES]
4754 SECTION 1.06. Section 43.1025(c), Local Government Code, is
4855 amended to read as follows:
4956 (c) The area described by Subsection (b) may be annexed
5057 under the requirements prescribed by Subchapter C-3, C-4, or C-5,
5158 as applicable [to a tier 2 municipality], but the annexation may not
5259 occur unless each municipality in whose extraterritorial
5360 jurisdiction the area may be located:
5461 (1) consents to the annexation; and
5562 (2) reduces its extraterritorial jurisdiction over
5663 the area as provided by Section 42.023.
5764 SECTION 1.07. Section 43.1211, Local Government Code, is
5865 amended to read as follows:
5966 Sec. 43.1211. USE OF CONSENT PROCEDURES [AUTHORITY OF
6067 CERTAIN TIER 2 MUNICIPALITIES] TO ANNEX FOR LIMITED PURPOSES.
6168 Except as provided by Section 43.0751, beginning December 1, 2017,
6269 a [tier 2] municipality described by Section 43.121(a) may annex an
6370 area for the limited purposes of applying its planning, zoning,
6471 health, and safety ordinances in the area using the procedures
6572 under Subchapter C-3, C-4, or C-5, as applicable.
6673 ARTICLE 2. CONFORMING CHANGES
6774 SECTION 2.01. The following provisions of the Special
6875 District Local Laws Code are repealed:
6976 (1) Section 8374.252(a);
7077 (2) Section 8375.252(a);
7178 (3) Section 8376.252(a);
7279 (4) Section 8377.252(a);
7380 (5) Section 8378.252(a);
7481 (6) Section 8382.252(a);
7582 (7) Section 8383.252(a);
7683 (8) Section 8384.252(a);
7784 (9) Section 8385.252(a); and
7885 (10) Section 8477.302(a).
7986 SECTION 2.02. Section 43.0116(a), Local Government Code, is
8087 amended to read as follows:
8188 (a) Notwithstanding any other law and subject to Subsection
8289 (b), a municipality may annex all or part of the area located in an
8390 industrial district designated by the governing body of the
8491 municipality under Section 42.044 under the procedures prescribed
8592 by Subchapter C-1 [the requirements applicable to a tier 1
8693 municipality].
8794 SECTION 2.03. The heading to Subchapter C, Chapter 43,
8895 Local Government Code, is amended to read as follows:
8996 SUBCHAPTER C. LIMITATIONS AND REQUIREMENTS REGARDING ANNEXATIONS
9097 EXEMPTED FROM CONSENT ANNEXATION PROCEDURES [PROCEDURE FOR AREAS
9198 ANNEXED UNDER MUNICIPAL ANNEXATION PLAN: TIER 1 MUNICIPALITIES]
9299 SECTION 2.04. Section 43.0505(a), Local Government Code, is
93100 amended to read as follows:
94101 (a) This [Except as provided by Subsection (b), this]
95102 subchapter applies only to an annexation under Subchapter C-1 [a
96103 tier 1 municipality].
97104 SECTION 2.05. Sections 43.056(a), (b), (j), and (k), Local
98105 Government Code, are amended to read as follows:
99106 (a) This section applies to a service plan under Section
100107 43.065 [Before the first day of the 10th month after the month in
101108 which the inventory is prepared as provided by Section 43.053, the
102109 municipality proposing the annexation shall complete a service plan
103110 that provides for the extension of full municipal services to the
104111 area to be annexed. The municipality shall provide the services by
105112 any of the methods by which it extends the services to any other
106113 area of the municipality].
107114 (b) The service plan, which must be completed [in the period
108115 provided by Subsection (a)] before the annexation, must include a
109116 program under which the municipality will provide full municipal
110117 services in the annexed area no later than 2-1/2 years after the
111118 effective date of the annexation, in accordance with Subsection
112119 (e), unless certain services cannot reasonably be provided within
113120 that period and the municipality proposes a schedule for providing
114121 those services, and must include a list of all services required by
115122 this section to be provided under the plan. If the municipality
116123 proposes a schedule to extend the period for providing certain
117124 services, the schedule must provide for the provision of full
118125 municipal services no later than 4-1/2 years after the effective
119126 date of the annexation. However, under the program if the
120127 municipality provides any of the following services within the
121128 corporate boundaries of the municipality before annexation, the
122129 municipality must provide those services in the area proposed for
123130 annexation on the effective date of the annexation of the area:
124131 (1) police protection;
125132 (2) fire protection;
126133 (3) emergency medical services;
127134 (4) solid waste collection, except as provided by
128135 Subsection (o);
129136 (5) operation and maintenance of water and wastewater
130137 facilities in the annexed area that are not within the service area
131138 of another water or wastewater utility;
132139 (6) operation and maintenance of roads and streets,
133140 including road and street lighting;
134141 (7) operation and maintenance of parks, playgrounds,
135142 and swimming pools; and
136143 (8) operation and maintenance of any other publicly
137144 owned facility, building, or service.
138145 (j) The proposed service plan must be made available for
139146 public inspection and explained to the inhabitants of the area at
140147 the public hearings held under Section 43.063 [43.0561]. The plan
141148 may be amended through negotiation at the hearings, but the
142149 provision of any service may not be deleted. On completion of the
143150 public hearings, the service plan shall be attached to the
144151 ordinance annexing the area and approved as part of the ordinance.
145152 (k) On approval by the governing body, the service plan is a
146153 contractual obligation that is not subject to amendment or repeal
147154 except that if the governing body determines at the public hearings
148155 required by this subsection that changed conditions or subsequent
149156 occurrences make the service plan unworkable or obsolete, the
150157 governing body may amend the service plan to conform to the changed
151158 conditions or subsequent occurrences. An amended service plan must
152159 provide for services that are comparable to or better than those
153160 established in the service plan before amendment. Before any
154161 amendment is adopted, the governing body must provide an
155162 opportunity for interested persons to be heard at public hearings
156163 called and held in the manner provided by Section 43.063 [43.0561].
157164 SECTION 2.06. The heading to Subchapter C-1, Chapter 43,
158165 Local Government Code, is amended to read as follows:
159166 SUBCHAPTER C-1. ANNEXATION PROCEDURE FOR AREAS EXEMPTED FROM
160167 CONSENT [MUNICIPAL] ANNEXATION PROCEDURES [PLAN: TIER 1
161168 MUNICIPALITIES]
162169 SECTION 2.07. Section 43.061(a), Local Government Code, is
163170 amended to read as follows:
164171 (a) Unless otherwise specifically provided by this chapter
165172 or another law [Except as provided by Subsection (b)], this
166173 subchapter applies only to an annexation under:
167174 (1) Section 43.0115 (Enclave);
168175 (2) Section 43.0116 (Industrial District);
169176 (3) Section 43.012 (Area Owned by Type-A
170177 Municipality);
171178 (4) Section 43.013 (Navigable Stream);
172179 (5) Section 43.0751(h) (Strategic Partnership);
173180 (6) Section 43.101 (Municipally Owned Reservoir);
174181 (7) Section 43.102 (Municipally Owned Airport); and
175182 (8) Section 43.1055 (Road and Right-of-Way) [area that
176183 is proposed for annexation by a tier 1 municipality and that is not
177184 required to be included in a municipal annexation plan under
178185 Section 43.052(h)].
179186 SECTION 2.08. Section 43.062(b), Local Government Code, is
180187 amended to read as follows:
181188 (b) This subsection applies only to an area that contains
182189 fewer than 100 separate tracts of land on which one or more
183190 residential dwellings are located on each tract [described by
184191 Section 43.052(h)(1)]. Before the 30th day before the date of the
185192 first hearing required under Section 43.063, a municipality shall
186193 give written notice of its intent to annex the area to:
187194 (1) each property owner in an area proposed for
188195 annexation, as indicated by the appraisal records furnished by the
189196 appraisal district for each county in which the area is located;
190197 (2) each public entity[, as defined by Section
191198 43.053,] or private entity that provides services in the area
192199 proposed for annexation, including each:
193200 (A) municipality, county, fire protection
194201 service provider, including a volunteer fire department, and
195202 emergency medical services provider, including a volunteer
196203 emergency medical services provider; and
197204 (B) municipal utility district, water control
198205 and improvement district, or other district created under Section
199206 52, Article III, or Section 59, Article XVI, Texas Constitution;
200207 and
201208 (3) each railroad company that serves the municipality
202209 and is on the municipality's tax roll if the company's right-of-way
203210 is in the area proposed for annexation.
204211 SECTION 2.09. Section 43.0715(c), Local Government Code, is
205212 amended to read as follows:
206213 (c) At the time notice of the municipality's intent to annex
207214 the land within the district is first given in accordance with
208215 Section [43.052,] 43.0683[,] or 43.0693, as applicable, the
209216 municipality shall proceed to initiate and complete a report for
210217 each developer conducted in accordance with the format approved by
211218 the Texas Commission on Environmental Quality for audits. In the
212219 event the municipality is unable to complete the report prior to the
213220 effective date of the annexation as a result of the developer's
214221 failure to provide information to the municipality which cannot be
215222 obtained from other sources, the municipality shall obtain from the
216223 district the estimated costs of each project previously undertaken
217224 by a developer which are eligible for reimbursement. The amount of
218225 such costs, as estimated by the district, shall be escrowed by the
219226 municipality for the benefit of the persons entitled to receive
220227 payment in an insured interest-bearing account with a financial
221228 institution authorized to do business in the state. To compensate
222229 the developer for the municipality's use of the infrastructure
223230 facilities pending the determination of the reimbursement amount,
224231 all interest accrued on the escrowed funds shall be paid to the
225232 developer whether or not the annexation is valid. Upon placement
226233 of the funds in the escrow account, the annexation may become
227234 effective. In the event a municipality timely escrows all
228235 estimated reimbursable amounts as required by this subsection and
229236 all such amounts, determined to be owed, including interest, are
230237 subsequently disbursed to the developer within five days of final
231238 determination in immediately available funds as required by this
232239 section, no penalties or interest shall accrue during the pendency
233240 of the escrow. Either the municipality or developer may, by
234241 written notice to the other party, require disputes regarding the
235242 amount owed under this section to be subject to nonbinding
236243 arbitration in accordance with the rules of the American
237244 Arbitration Association.
238245 SECTION 2.10. Sections 43.0751(b) and (h), Local Government
239246 Code, are amended to read as follows:
240247 (b) The governing bodies of a municipality and a district
241248 may negotiate and enter into a written strategic partnership
242249 agreement for the district by mutual consent. [The governing body
243250 of a municipality, on written request from a district included in
244251 the municipality's annexation plan under Section 43.052, shall
245252 negotiate and enter into a written strategic partnership agreement
246253 with the district. A district included in a municipality's
247254 annexation plan under Section 43.052:
248255 [(1) may not submit its written request before the
249256 date of the second hearing required under Section 43.0561; and
250257 [(2) must submit its written request before the 61st
251258 day after the date of the second hearing required under Section
252259 43.0561.]
253260 (h) On the full-purpose annexation conversion date set
254261 forth in the strategic partnership agreement pursuant to Subsection
255262 (f)(5), the land included within the boundaries of the district
256263 shall be deemed to be within the full-purpose boundary limits of the
257264 municipality without the need for further action by the governing
258265 body of the municipality. The full-purpose annexation conversion
259266 date established by a strategic partnership agreement may be
260267 altered only by mutual agreement of the district and the
261268 municipality. However, nothing herein shall prevent the
262269 municipality from terminating the agreement and instituting
263270 proceedings to annex the district, on request by the governing body
264271 of the district, on any date prior to the full-purpose annexation
265272 conversion date established by the strategic partnership agreement
266273 under the procedures prescribed by Subchapter C-1 [applicable to a
267274 tier 1 municipality]. Land annexed for limited or full purposes
268275 under this section shall not be included in calculations prescribed
269276 by Section 43.055(a).
270277 SECTION 2.11. Section 43.07515(a), Local Government Code,
271278 is amended to read as follows:
272279 (a) A municipality may not regulate under Section 43.0751
273280 [or 43.0752] the sale, use, storage, or transportation of fireworks
274281 outside of the municipality's boundaries.
275282 SECTION 2.12. Section 43.101(c), Local Government Code, is
276283 amended to read as follows:
277284 (c) A municipality may annex the [The] area described by
278285 this section [may be annexed] without the consent of any owners or
279286 residents of the area under the procedures prescribed by Subchapter
280287 C-1 [applicable to a tier 1 municipality by:
281288 [(1) a tier 1 municipality; and
282289 [(2)] if there are no owners other than the
283290 municipality or residents of the area[, a tier 2 municipality].
284291 SECTION 2.13. Section 43.102(c), Local Government Code, is
285292 amended to read as follows:
286293 (c) A municipality may annex the [The] area described by
287294 this section [may be annexed] without the consent of any owners or
288295 residents of the area under the procedures prescribed by Subchapter
289296 C-1 [applicable to a tier 1 municipality by:
290297 [(1) a tier 1 municipality; and
291298 [(2)] if there are no owners other than the
292299 municipality or residents of the area[, a tier 2 municipality].
293300 SECTION 2.14. Section 43.1055, Local Government Code, is
294301 amended to read as follows:
295302 Sec. 43.1055. ANNEXATION OF ROADS AND RIGHTS-OF-WAY [IN
296303 CERTAIN LARGE COUNTIES]. Notwithstanding any other law, a [tier 2]
297304 municipality may by ordinance annex a road or the right-of-way of a
298305 road on request of the owner of the road or right-of-way or the
299306 governing body of the political subdivision that maintains the road
300307 or right-of-way under the procedures prescribed by Subchapter C-1
301308 [applicable to a tier 1 municipality].
302309 SECTION 2.15. Section 43.141(a), Local Government Code, is
303310 amended to read as follows:
304311 (a) A majority of the qualified voters of an annexed area
305312 may petition the governing body of the municipality to disannex the
306313 area if the municipality fails or refuses to provide services or to
307314 cause services to be provided to the area:
308315 (1) if the area was annexed under Subchapter C-1
309316 [municipality is a tier 1 municipality], within the period
310317 specified by Section 43.056 or by the service plan prepared for the
311318 area under that section; or
312319 (2) if the area was annexed under Subchapter C-3, C-4,
313320 or C-5 [municipality is a tier 2 municipality], within the period
314321 specified by the written agreement under Section 43.0672 or the
315322 resolution under Section 43.0682 or 43.0692, as applicable.
316323 SECTION 2.16. Section 43.203(b), Local Government Code, is
317324 amended to read as follows:
318325 (b) On receipt of the district's petition, the governing
319326 body of the municipality shall enter into negotiations with the
320327 district for an agreement to alter the status of annexation that
321328 must:
322329 (1) specify the period, which may not be less than 10
323330 years beginning on January 1 of the year following the date of the
324331 agreement, in which limited-purpose annexation is in effect;
325332 (2) provide that, at the expiration of the period, the
326333 district's annexation status will automatically revert to
327334 full-purpose annexation without following procedures provided by
328335 Section [Sections] 43.014 [and 43.052 through 43.055] or any
329336 [other] procedural requirement for annexation not in effect on
330337 January 1, 1995; and
331338 (3) specify the financial obligations of the district
332339 during and after the period of limited-purpose annexation for:
333340 (A) facilities constructed by the municipality
334341 that are in or that serve the district;
335342 (B) debt incurred by the district for water and
336343 sewer infrastructure that will be assumed by the municipality at
337344 the end of the period of limited-purpose annexation; and
338345 (C) use of the municipal sales taxes collected by
339346 the municipality for facilities or services in the district.
340347 SECTION 2.17. Section 43.905(a), Local Government Code, is
341348 amended to read as follows:
342349 (a) A municipality that proposes to annex an area shall
343350 provide written notice of the proposed annexation to each public
344351 school district located in the area proposed for annexation within
345352 the period prescribed for providing the notice of, as applicable:
346353 (1) the hearing under Section 43.0673; or
347354 (2) the first hearing under Section [43.0561,] 43.063,
348355 [43.0673,] 43.0683, or 43.0693[, as applicable].
349356 SECTION 2.18. Sections 43.9051(a) and (b), Local Government
350357 Code, are amended to read as follows:
351358 (a) In this section, "public entity" includes a county, fire
352359 protection service provider, including a volunteer fire
353360 department, emergency medical services provider, including a
354361 volunteer emergency medical services provider, or special district
355362 described[, as that term is defined] by Section 43.062(b)(2)(B)
356363 [43.052].
357364 (b) A municipality that proposes to annex an area shall
358365 provide to each public entity that is located in or provides
359366 services to the area proposed for annexation written notice of the
360367 proposed annexation within the period prescribed for providing the
361368 notice of, as applicable:
362369 (1) the hearing under Section 43.0673; or
363370 (2) the first hearing under Section [43.0561,] 43.063,
364371 [43.0673,] 43.0683, or 43.0693[, as applicable, to each public
365372 entity that is located in or provides services to the area proposed
366373 for annexation].
367374 ARTICLE 3. HEARING REQUIREMENTS FOR CERTAIN CONSENT ANNEXATIONS
368375 SECTION 3.01. Section 43.0673, Local Government Code, is
369376 amended to read as follows:
370377 Sec. 43.0673. PUBLIC HEARING [HEARINGS]. (a) Before a
371378 municipality may adopt an ordinance annexing an area under this
372379 subchapter [section], the governing body of the municipality must
373380 conduct one [at least two] public hearing [hearings].
374381 [(b) The hearings must be conducted not less than 10
375382 business days apart.]
376383 (c) During the [first] public hearing, the governing body:
377384 (1) must provide persons interested in the annexation
378385 the opportunity to be heard; and
379386 (2) [. During the final public hearing, the governing
380387 body] may adopt an ordinance annexing the area.
381388 (d) The municipality must post notice of the hearing
382389 [hearings] on the municipality's Internet website if the
383390 municipality has an Internet website and publish notice of the
384391 hearing [hearings] in a newspaper of general circulation in the
385392 municipality and in the area proposed for annexation. The notice
386393 for the [each] hearing must be:
387394 (1) published at least once on or after the 20th day
388395 but before the 10th day before the date of the hearing; and
389396 (2) [. The notice for each hearing must be] posted on
390397 the municipality's Internet website on or after the 20th day but
391398 before the 10th day before the date of the hearing and must remain
392399 posted until the date of the hearing.
393400 ARTICLE 4. TRANSITION AND EFFECTIVE DATE
394- SECTION 4.01. (a) Except as provided by Subsections (b) and
395- (c) of this section, the changes in law made by this Act apply only
396- to an annexation of an area that is not final on the effective date
397- of this Act. An annexation of an area that was final before the
401+ SECTION 4.01. (a) Except as provided by Subsection (b) of
402+ this section, the changes in law made by this Act apply only to an
403+ annexation of an area that is not final on the effective date of
404+ this Act. An annexation of an area that was final before the
398405 effective date of this Act is governed by those portions of Chapter
399406 43, Local Government Code, that relate to post-annexation
400407 procedures and requirements in effect immediately before the
401408 effective date of this Act, and that law is continued in effect for
402409 that purpose.
403410 (b) The changes in law made by this Act do not apply to the
404411 annexation of an area for which the governing body of a municipality
405412 has adopted a resolution to direct the municipality's city manager
406413 to prepare a service plan for the area on or before the effective
407414 date of this Act. An annexation of an area for which the governing
408415 body adopted a resolution to direct the municipality's city manager
409416 to prepare a service plan for the area before the effective date of
410417 this Act is governed by Chapter 43, Local Government Code, as it
411418 existed on January 1, 2019.
412- (c) Until the fourth anniversary of the date that final
413- judgment in an action described by this subsection is rendered, the
414- changes in law made by this Act do not apply to an annexation of an
415- area described by this subsection, and an annexation of an area
416- described by this subsection is governed by Chapter 43, Local
417- Government Code, as it existed on January 1, 2019. This subsection
418- applies only to an area that is:
419- (1) wholly located in a county that:
420- (A) borders the Gulf of Mexico; and
421- (B) contains an international border; and
422- (2) proposed to be annexed by a municipality that is a
423- named party in an action:
424- (A) involving issues of fact or law relating to
425- the annexation; and
426- (B) commenced before January 1, 2019.
427419 SECTION 4.02. This Act takes effect immediately if it
428420 receives a vote of two-thirds of all the members elected to each
429421 house, as provided by Section 39, Article III, Texas Constitution.
430422 If this Act does not receive the vote necessary for immediate
431423 effect, this Act takes effect September 1, 2019.
432- ______________________________ ______________________________
433- President of the Senate Speaker of the House
434- I certify that H.B. No. 347 was passed by the House on April
435- 9, 2019, by the following vote: Yeas 133, Nays 14, 1 present, not
436- voting; and that the House concurred in Senate amendments to H.B.
437- No. 347 on May 13, 2019, by the following vote: Yeas 131, Nays 9, 1
438- present, not voting.
439- ______________________________
440- Chief Clerk of the House
441- I certify that H.B. No. 347 was passed by the Senate, with
442- amendments, on May 8, 2019, by the following vote: Yeas 25, Nays 6.
443- ______________________________
444- Secretary of the Senate
445- APPROVED: __________________
446- Date
447- __________________
448- Governor
424+ * * * * *