Bill Text: TX HB347 | 2019-2020 | 86th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to consent annexation requirements.

Spectrum: Partisan Bill (Republican 20-0)

Status: (Passed) 2019-05-24 - Effective immediately [HB347 Detail]

Download: Texas-2019-HB347-Comm_Sub.html

---

By: King of Parker, et al. H.B. No. 347
(Senate Sponsor - Birdwell)
(In the Senate - Received from the House April 11, 2019;
April 16, 2019, read first time and referred to Committee on State
Affairs; April 29, 2019, reported favorably by the following vote:
Yeas 7, Nays 0; April 29, 2019, sent to printer.)
Click here to see the committee vote

A BILL TO BE ENTITLED
AN ACT
relating to consent annexation requirements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. REPEAL OF TIER SYSTEM
SECTION 1.01. The following provisions of Chapter 43, Local
Government Code, are repealed:
(1) Sections 43.001(2), (3), (4), and (5);
(2) Section 43.011;
(3) Subchapter B;
(4) Section 43.0505(b);
(5) Section 43.052;
(6) Section 43.053;
(7) Section 43.056(q);
(8) Section 43.0561;
(9) Section 43.0562;
(10) Section 43.0563;
(11) Section 43.0564;
(12) Section 43.061(b);
(13) Section 43.066;
(14) Section 43.067;
(15) Section 43.068;
(16) Section 43.069;
(17) Section 43.0751(o);
(18) Section 43.0752;
(19) Section 43.103;
(20) Section 43.105; and
(21) Subchapter Y.
SECTION 1.02. The heading to Subchapter C-2, Chapter 43,
Local Government Code, is amended to read as follows:
SUBCHAPTER C-2. GENERAL ANNEXATION AUTHORITY AND PROCEDURES
REGARDING CONSENT ANNEXATIONS[: TIER 2 MUNICIPALITIES]
SECTION 1.03. The heading to Subchapter C-3, Chapter 43,
Local Government Code, is amended to read as follows:
SUBCHAPTER C-3. ANNEXATION OF AREA ON REQUEST OF OWNERS[: TIER 2
MUNICIPALITIES]
SECTION 1.04. The heading to Subchapter C-4, Chapter 43,
Local Government Code, is amended to read as follows:
SUBCHAPTER C-4. ANNEXATION OF AREAS WITH POPULATION OF LESS THAN
200 BY PETITION [: TIER 2 MUNICIPALITIES]
SECTION 1.05. The heading to Subchapter C-5, Chapter 43,
Local Government Code, is amended to read as follows:
SUBCHAPTER C-5. ANNEXATION OF AREAS WITH POPULATION OF AT LEAST 200
BY ELECTION [: TIER 2 MUNICIPALITIES]
SECTION 1.06. Section 43.1025(c), Local Government Code, is
amended to read as follows:
(c) The area described by Subsection (b) may be annexed
under the requirements prescribed by Subchapter C-3, C-4, or C-5,
as applicable [to a tier 2 municipality], 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 1.07. Section 43.1211, Local Government Code, is
amended to read as follows:
Sec. 43.1211. USE OF CONSENT PROCEDURES [AUTHORITY OF
CERTAIN TIER 2 MUNICIPALITIES] TO ANNEX FOR LIMITED PURPOSES.
Except as provided by Section 43.0751, beginning December 1, 2017,
a [tier 2] municipality described by Section 43.121(a) may annex an
area for the limited purposes of applying its planning, zoning,
health, and safety ordinances in the area using the procedures
under Subchapter C-3, C-4, or C-5, as applicable.
ARTICLE 2. CONFORMING CHANGES
SECTION 2.01. The following provisions of the Special
District Local Laws Code are repealed:
(1) Section 8374.252(a);
(2) Section 8375.252(a);
(3) Section 8376.252(a);
(4) Section 8377.252(a);
(5) Section 8378.252(a);
(6) Section 8382.252(a);
(7) Section 8383.252(a);
(8) Section 8384.252(a);
(9) Section 8385.252(a); and
(10) Section 8477.302(a).
SECTION 2.02. Section 43.0116(a), Local Government Code, is
amended to read as follows:
(a) Notwithstanding any other law and subject to Subsection
(b), a municipality may annex all or part of the area located in an
industrial district designated by the governing body of the
municipality under Section 42.044 under the procedures prescribed
by Subchapter C-1 [the requirements applicable to a tier 1
municipality].
SECTION 2.03. The heading to Subchapter C, Chapter 43,
Local Government Code, is amended to read as follows:
SUBCHAPTER C. LIMITATIONS AND REQUIREMENTS REGARDING ANNEXATIONS
EXEMPTED FROM CONSENT ANNEXATION PROCEDURES [PROCEDURE FOR AREAS
ANNEXED UNDER MUNICIPAL ANNEXATION PLAN: TIER 1 MUNICIPALITIES]
SECTION 2.04. Section 43.0505(a), Local Government Code, is
amended to read as follows:
(a) This [Except as provided by Subsection (b), this]
subchapter applies only to an annexation under Subchapter C-1 [a
tier 1 municipality].
SECTION 2.05. Sections 43.056(a), (b), (j), and (k), Local
Government Code, are amended to read as follows:
(a) This section applies to a service plan under Section
43.065 [Before the first day of the 10th month after the month in
which the inventory is prepared as provided by Section 43.053, the
municipality proposing the annexation shall complete a service plan
that provides for the extension of full municipal services to the
area to be annexed. The municipality shall provide the services by
any of the methods by which it extends the services to any other
area of the municipality].
(b) The service plan, which must be completed [in the period
provided by Subsection (a)] before the annexation, must include a
program under which the municipality will provide full municipal
services in the annexed area no later than 2-1/2 years after the
effective date of the annexation, in accordance with Subsection
(e), unless certain services cannot reasonably be provided within
that period and the municipality proposes a schedule for providing
those services, and must include a list of all services required by
this section to be provided under the plan. If the municipality
proposes a schedule to extend the period for providing certain
services, the schedule must provide for the provision of full
municipal services no later than 4-1/2 years after the effective
date of the annexation. However, under the program if the
municipality provides any of the following services within the
corporate boundaries of the municipality before annexation, the
municipality must provide those services in the area proposed for
annexation on the effective date of the annexation of the area:
(1) police protection;
(2) fire protection;
(3) emergency medical services;
(4) solid waste collection, except as provided by
Subsection (o);
(5) operation and maintenance of water and wastewater
facilities in the annexed area that are not within the service area
of another water or wastewater utility;
(6) operation and maintenance of roads and streets,
including road and street lighting;
(7) operation and maintenance of parks, playgrounds,
and swimming pools; and
(8) operation and maintenance of any other publicly
owned facility, building, or service.
(j) The proposed service plan must be made available for
public inspection and explained to the inhabitants of the area at
the public hearings held under Section 43.063 [43.0561]. The plan
may be amended through negotiation at the hearings, but the
provision of any service may not be deleted. On completion of the
public hearings, the service plan shall be attached to the
ordinance annexing the area and approved as part of the ordinance.
(k) On approval by the governing body, the service plan is a
contractual obligation that is not subject to amendment or repeal
except that if the governing body determines at the public hearings
required by this subsection that changed conditions or subsequent
occurrences make the service plan unworkable or obsolete, the
governing body may amend the service plan to conform to the changed
conditions or subsequent occurrences. An amended service plan must
provide for services that are comparable to or better than those
established in the service plan before amendment. Before any
amendment is adopted, the governing body must provide an
opportunity for interested persons to be heard at public hearings
called and held in the manner provided by Section 43.063 [43.0561].
SECTION 2.06. The heading to Subchapter C-1, Chapter 43,
Local Government Code, is amended to read as follows:
SUBCHAPTER C-1. ANNEXATION PROCEDURE FOR AREAS EXEMPTED FROM
CONSENT [MUNICIPAL] ANNEXATION PROCEDURES [PLAN: TIER 1
MUNICIPALITIES]
SECTION 2.07. Section 43.061(a), Local Government Code, is
amended to read as follows:
(a) Unless otherwise specifically provided by this chapter
or another law [Except as provided by Subsection (b)], this
subchapter applies only to an annexation under:
(1) Section 43.0115 (Enclave);
(2) Section 43.0116 (Industrial District);
(3) Section 43.012 (Area Owned by Type-A
Municipality);
(4) Section 43.013 (Navigable Stream);
(5) Section 43.0751(h) (Strategic Partnership);
(6) Section 43.101 (Municipally Owned Reservoir);
(7) Section 43.102 (Municipally Owned Airport); and
(8) Section 43.1055 (Road and Right-of-Way) [area that
is proposed for annexation by a tier 1 municipality and that is not
required to be included in a municipal annexation plan under
Section 43.052(h)].
SECTION 2.08. Section 43.062(b), Local Government Code, is
amended to read as follows:
(b) This subsection applies only to an area that contains
fewer than 100 separate tracts of land on which one or more
residential dwellings are located on each tract [described by
Section 43.052(h)(1)]. Before the 30th day before the date of the
first hearing required under Section 43.063, a municipality shall
give written notice of its intent to annex the area to:
(1) each property owner in an area proposed for
annexation, as indicated by the appraisal records furnished by the
appraisal district for each county in which the area is located;
(2) each public entity[, as defined by Section
43.053,] or private entity that provides services in the area
proposed for annexation, including each:
(A) municipality, county, fire protection
service provider, including a volunteer fire department, and
emergency medical services provider, including a volunteer
emergency medical services provider; and
(B) municipal utility district, water control
and improvement district, or other district created under Section
52, Article III, or Section 59, Article XVI, Texas Constitution;
and
(3) each railroad company that serves the municipality
and is on the municipality's tax roll if the company's right-of-way
is in the area proposed for annexation.
SECTION 2.09. Section 43.0715(c), Local Government Code, is
amended to read as follows:
(c) At the time notice of the municipality's intent to annex
the land within the district is first given in accordance with
Section [43.052,] 43.0683[,] or 43.0693, as applicable, the
municipality shall proceed to initiate and complete a report for
each developer conducted in accordance with the format approved by
the Texas 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,
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 2.10. Sections 43.0751(b) and (h), Local Government
Code, are amended 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 included in
the municipality's annexation plan under Section 43.052, 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.]
(h) On the full-purpose annexation conversion date set
forth in the strategic partnership agreement pursuant to Subsection
(f)(5), 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
under the procedures prescribed by Subchapter C-1 [applicable to a
tier 1 municipality]. Land annexed for limited or full purposes
under this section shall not be included in calculations prescribed
by Section 43.055(a).
SECTION 2.11. 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 2.12. Section 43.101(c), Local Government Code, is
amended to read as follows:
(c) A municipality may annex the [The] area described by
this section [may be annexed] without the consent of any owners or
residents of the area under the procedures prescribed by Subchapter
C-1 [applicable to a tier 1 municipality by:
[(1) a tier 1 municipality; and
[(2)] if there are no owners other than the
municipality or residents of the area[, a tier 2 municipality].
SECTION 2.13. Section 43.102(c), Local Government Code, is
amended to read as follows:
(c) A municipality may annex the [The] area described by
this section [may be annexed] without the consent of any owners or
residents of the area under the procedures prescribed by Subchapter
C-1 [applicable to a tier 1 municipality by:
[(1) a tier 1 municipality; and
[(2)] if there are no owners other than the
municipality or residents of the area[, a tier 2 municipality].
SECTION 2.14. Section 43.1055, Local Government Code, is
amended to read as follows:
Sec. 43.1055. ANNEXATION OF ROADS AND RIGHTS-OF-WAY [IN
CERTAIN LARGE COUNTIES]. Notwithstanding any other law, a [tier 2]
municipality may by ordinance annex a road or the right-of-way of a
road on request of the owner of the road or right-of-way or the
governing body of the political subdivision that maintains the road
or right-of-way under the procedures prescribed by Subchapter C-1
[applicable to a tier 1 municipality].
SECTION 2.15. Section 43.141(a), Local Government Code, is
amended to read as follows:
(a) A majority of the qualified voters of an annexed area
may petition the governing body of 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:
(1) if the area was annexed under Subchapter C-1
[municipality is a tier 1 municipality], within the period
specified by Section 43.056 or by the service plan prepared for the
area under that section; or
(2) if the area was annexed under Subchapter C-3, C-4,
or C-5 [municipality is a tier 2 municipality], within the period
specified by the written agreement under Section 43.0672 or the
resolution under Section 43.0682 or 43.0692, as applicable.
SECTION 2.16. Section 43.203(b), Local Government Code, is
amended to read as follows:
(b) On receipt of the district's petition, the governing
body of the municipality shall enter into negotiations with the
district for an agreement to alter the status of annexation that
must:
(1) specify the period, which may not be less than 10
years beginning on January 1 of the year following the date of the
agreement, in which limited-purpose annexation is in effect;
(2) provide that, at the expiration of the period, the
district's annexation status will automatically revert to
full-purpose annexation without following procedures provided by
Section [Sections] 43.014 [and 43.052 through 43.055] or any
[other] procedural requirement for annexation not in effect on
January 1, 1995; and
(3) specify the financial obligations of the district
during and after the period of limited-purpose annexation for:
(A) facilities constructed by the municipality
that are in or that serve the district;
(B) debt incurred by the district for water and
sewer infrastructure that will be assumed by the municipality at
the end of the period of limited-purpose annexation; and
(C) use of the municipal sales taxes collected by
the municipality for facilities or services in the district.
SECTION 2.17. 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 the notice of, as applicable:
(1) the hearing under Section 43.0673; or
(2) the first hearing under Section [43.0561,] 43.063,
[43.0673,] 43.0683, or 43.0693[, as applicable].
SECTION 2.18. Sections 43.9051(a) and (b), Local Government
Code, are amended to read as follows:
(a) In this section, "public entity" includes a county, fire
protection service provider, including a volunteer fire
department, emergency medical services provider, including a
volunteer emergency medical services provider, or special district
described[, as that term is defined] by Section 43.062(b)(2)(B)
[43.052].
(b) A municipality that proposes to annex an area shall
provide to each public entity that is located in or provides
services to the area proposed for annexation written notice of the
proposed annexation within the period prescribed for providing the
notice of, as applicable:
(1) the hearing under Section 43.0673; or
(2) the first hearing under Section [43.0561,] 43.063,
[43.0673,] 43.0683, or 43.0693[, as applicable, to each public
entity that is located in or provides services to the area proposed
for annexation].
ARTICLE 3. HEARING REQUIREMENTS FOR CERTAIN CONSENT ANNEXATIONS
SECTION 3.01. Section 43.0673, Local Government Code, is
amended to read as follows:
Sec. 43.0673. PUBLIC HEARING [HEARINGS]. (a) Before a
municipality may adopt an ordinance annexing an area under this
subchapter [section], the governing body of the municipality must
conduct one [at least two] public hearing [hearings].
[(b) The hearings must be conducted not less than 10
business days apart.]
(c) During the [first] public hearing, the governing body:
(1) must provide persons interested in the annexation
the opportunity to be heard; and
(2) [. During the final public hearing, the governing
body] may adopt an ordinance annexing the area.
(d) The municipality must post notice of the hearing
[hearings] on the municipality's Internet website if the
municipality has an Internet website and publish notice of the
hearing [hearings] in a newspaper of general circulation in the
municipality and in the area proposed for annexation. The notice
for the [each] hearing must be:
(1) published at least once on or after the 20th day
but before the 10th day before the date of the hearing; and
(2) [. The notice for each hearing must be] posted on
the municipality's Internet website on or after the 20th day but
before the 10th day before the date of the hearing and must remain
posted until the date of the hearing.
ARTICLE 4. TRANSITION AND EFFECTIVE DATE
SECTION 4.01. (a) Except as provided by Subsection (b) of
this section, the changes in law made by this Act apply only to an
annexation of an area that is not final on the effective date of
this Act. An annexation of an area that was final before the
effective date of this Act is governed by those portions of Chapter
43, Local Government Code, that relate to post-annexation
procedures and requirements in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
(b) The changes in law made by this Act do not apply to the
annexation of an area for which the governing body of a municipality
has adopted a resolution to direct the municipality's city manager
to prepare a service plan for the area on or before the effective
date of this Act. An annexation of an area for which the governing
body adopted a resolution to direct the municipality's city manager
to prepare a service plan for the area before the effective date of
this Act is governed by Chapter 43, Local Government Code, as it
existed on January 1, 2019.
SECTION 4.02. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2019.
* * * * *