87R3947 DRS-D By: Schofield H.B. No. 2364 A BILL TO BE ENTITLED AN ACT relating to the extraterritorial jurisdiction of and municipal annexation by certain municipalities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 42, Local Government Code, is amended by adding Section 42.0015 to read as follows: Sec. 42.0015. INAPPLICABILITY OF CERTAIN PROVISIONS TO CERTAIN MUNICIPALITIES. (a) Sections 42.022, 42.023, and 42.041 do not apply to a municipality with a population of more than 1.8 million. (b) This section expires September 1, 2026. SECTION 2. Effective September 1, 2026, Subchapter A, Chapter 42, Local Government Code, is amended by adding Section 42.002 to read as follows: Sec. 42.002. INAPPLICABILITY OF CHAPTER TO CERTAIN MUNICIPALITIES. This chapter does not apply to a municipality with a population of more than 1.8 million. SECTION 3. Section 42.021, Local Government Code, is amended by adding Subsection (e) to read as follows: (e) This subsection applies only to a municipality with a population of 1.8 million or more. For the purpose of determining the extraterritorial jurisdiction of a municipality to which this subsection applies, only the territory of the municipality within the defined boundaries of the municipality that is receiving full municipal police and fire protection services is considered to be within the corporate boundaries of the municipality. The extraterritorial jurisdiction of the municipality is the unincorporated area that is located within five miles of the corporate boundaries of the municipality as determined under this subsection, provided that the unincorporated area is contiguous to the defined boundaries of the municipality and not within the extraterritorial jurisdiction of another municipality. This subsection expires September 1, 2026. SECTION 4. Section 42.902, Local Government Code, is amended to read as follows: Sec. 42.902. RESTRICTION AGAINST IMPOSING TAX IN EXTRATERRITORIAL JURISDICTION. (a) The inclusion of an area in the extraterritorial jurisdiction of a municipality does not by itself authorize the municipality to impose a tax in the area. (b) This subsection expires September 1, 2026. A municipality with a population of 1.8 million or more may not impose a tax in the extraterritorial jurisdiction of the municipality unless: (1) the municipality is otherwise authorized by law to impose the tax in the extraterritorial jurisdiction; and (2) the municipality provides police and fire protection within the extraterritorial jurisdiction. SECTION 5. Subchapter A-1, Chapter 43, Local Government Code, is amended by adding Section 43.018 to read as follows: Sec. 43.018. LIMITATIONS RELATED TO ANNEXATION AUTHORITY OF CERTAIN MUNICIPALITIES. (a) This section applies only to a municipality with a population of 1.8 million or more. (b) Notwithstanding any other provision of law, including Sections 42.021 and 43.056, and subject to Subsection (c): (1) on September 1, 2026, the area located in the extraterritorial jurisdiction of a municipality to which this section applies is released from the municipality's extraterritorial jurisdiction; (2) beginning on September 1, 2026, a municipality to which this section applies: (A) does not have and may not acquire extraterritorial jurisdiction over any area; and (B) is prohibited from annexing any area; and (3) not later than September 1, 2026, a municipality to which this section applies must: (A) provide or cause the provision of full municipal services as defined by Section 43.056(c), including police and fire protection, to all areas annexed by the municipality; or (B) disannex any area in which the municipality is not providing or causing the provision of full municipal services. (c) A provision of Subsection (b) applies only to the extent that the application of the provision does not impair an obligation under the provision of a contract or other agreement. (d) A municipality to which this section applies may not enter into or renew a contract or other agreement after September 1, 2021, that would create an obligation that would be impaired by a provision of Subsection (b). SECTION 6. This Act takes effect September 1, 2021.