HBA-ALS H.B. 1200 76(R)     BILL ANALYSIS


Office of House Bill AnalysisH.B. 1200
By: Crabb
Land & Resource Management
3/8/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, a municipality has broad powers to unilaterally annex
areas of land that are within its extraterritorial jurisdiction.  There is
concern that some municipalities are annexing areas for their tax bases and
other resources despite opposition by the residents of these annexed areas.
There are also concerns regarding the lack of voter approval needed for a
municipality to annex an area, some municipalities' inability to provide
acceptable services to the residents of annexed areas, and the effect that
annexation has on minority voting strength.  

H.B. 1200 allows for the disannexation of a tract of a contiguous territory
that was annexed without an  election on or after December 1, 1996, by a
municipality with a population of more than 450,000, if certain conditions
are met.  The bill requires that an election on the disannexation be held
by the registered voters who reside in the annexed tract if specified
petition-related requirements are met. Under the provisions of this bill, a
tract is disannexed from a municipality, and the municipality utility
district or special district which was abolished as a result of the
annexation is reestablished, in the event that there is a majority vote in
favor of the disannexation.  The bill sets forth limitations and guidelines
for a municipality's reannexation of a tract that has been disannexed.  In
addition, H.B. 1200 requires the creation of an arbitration panel to
determine whether the municipality or special districts are entitled to
compensation from each other for expenses incurred during the annexation
and disannexation process. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter G, Chapter 43, Local Government Code, by
adding Section 43.148, as follows: 

Sec. 43.148.  DISANNEXATION OF CERTAIN AREAS.  (a) Provides that this
section is only applicable to a tract of contiguous territory that is
annexed on or after December 1, 1996, by a municipality with a population
of more than 450,000 and in which an election approving the annexation has
not been held. 

(b) Requires the county where the tract is located to hold an election on
the issue of the disannexation of the tract from the municipality if the
county clerk receives a petition asking for election and it is signed by at
least 10 percent of the registered voters residing in the tract.  Requires
the county clerk to determine the petition's validity under Chapter 277,
Election Code, no later than the 30th day after the petition is received.
Prohibits a petition to hold an election from being submitted after the
fourth anniversary of the date the tract was annexed. 

(c) Requires the county judge, if the county clerk determines the petition
is valid or fails to make a determination within the prescribed time, to
order the election be held on the first uniform election day occurring at
least 45 days after the county clerk determines the validity of the
petition or the prescribed time for making a validity determination
expires,  whichever is earlier. 

(d) Specifies that only a registered voter residing in the tract is
authorized to vote in the election.  Requires the municipality to pay for
the cost of holding the election. 

(e) Requires that the election ballots allow voting for or against the
proposition which is specified in the bill.  Requires the county to
designate the name of the tract in the ballot based on a name which is
commonly used to identify the tract. 

(f) Provides that if a majority of the votes cast at the election favor the
proposition, the tract is disannexed from the municipality, and any
municipal utility district or special district that was abolished as a
result of the annexation is reestablished on the date of the canvass of the
election.  Provides that the officers who were serving the district when
the tract was annexed are the officers of the reestablished district.
Requires an officer whose term has expired to serve until a successor is
qualified, and requires the successor to be elected or appointed in a
timely manner in accordance with governing law. 

(g) Provides that if less than a majority of the votes cast favor the
proposition, the tract remains part of the municipality and no other
election to disannex may be held under this section. 

(h) Prohibits the municipality from reannexing any portion of a disannexed
tract unless it is approved by a majority of the votes cast at an election
conducted by the municipality in the area to be annexed.   

(i) Requires an arbitration panel to be appointed no later than the 10th
day after the date a disannexation occurs.  Provides than the panel is
composed of one person chosen by the municipality; one person chosen by the
affirmative vote of a representative of each municipal utility or other
special district serving the disannexed tract; and one person jointly
chosen by those persons, or if no agreement can be reached to jointly chose
a person, then one person appointed by the county judge of the county where
the tract is located.   

(j) Requires the arbitration panel to conduct an accounting of specified
expenses incurred by the municipality, each municipality utility district,
and other special district during the annexation and disannexation process.
Requires the arbitration panel to render a decision on whether the
municipality or special districts are entitled to compensation from each
other, no later than the 120th day after disannexation. 

(k) Provides that an arbitration panel's decision is reviewable in the
district court of the county under the substantial evidence rule.
Authorizes  the municipality or an affected district to file an original
action for an accounting in the district court of the county where the
tract is located if the arbitrators are unable to reach a majority
decision. 

(l) Provides that Chapter 171, Civil Practice and Remedies Code, (General
Arbitration), applies to arbitration pursuant to this section, except as
provided by this section. 

(m) Provides that a tract of land is considered to be located in the county
where the majority of the  tract is located. 

(n) Requires the county clerk of the county of the county in which a
majority of the tract is located to verify the validity of a petition
asking for an election on disannexation, if the tract is located in more
than one county.  Requires the county judge of each county in which the
tract is located to order that an election be held in the part of the tract
that is located in the county in which the county judge serves, if the
tract is located in more than one county. 

(o) Requires the county judge of the county which contains a majority of
the area of the tract, if an election is held concerning a tract which is
located in more than one county,  to combine the election returns after
they are canvassed in each county to determine if the disannexation is
approved in the tract as a whole. 

SECTION 2.  Emergency clause.
  Effective date: upon passage.