HBA-NIK H.B. 2329 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2329
By: Mowery
Land & Resource Management
4/7/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, all cities in the state have unilateral authority to annex
neighboring unincorporated areas without the consent of those who live in
the area to be annexed.  When a city decides to annex outlying areas, it
may result in increased taxes for residents in those areas. Because
residents to be annexed have no say in the annexation process, or in the
formulation of taxes already in effect in the annexing jurisdiction,
annexation may result in taxation without representation. H.B. 2329 grants
a majority of the residents in an area proposed for annexation the
authority to either accept or reject the municipality's proposal to annex
them. 

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 Section 43.021, Local Government Code, to delete
"home-rule" from the title and the text. 

SECTION 2. Amends Section 43.027, Local Government Code, to delete
"general-law" from the title and the text. 

SECTION 3. Amends Section 43.029, Local Government Code, as follows:

Sec. 43.029.  New title: AUTHORITY OF MUNICIPALITY TO ANNEX UNOCCUPIED AREA
ON PETITION OF SCHOOL BOARD. Deletes information in this section that
applies only to a municipality with a specified population.  Redesignates
Subsection (c) to (b). 

SECTION 4. Amends Subchapter B, Chapter 43, Local Government Code, by
adding Section 43.035, as follows: 

Sec. 43.035. AUTHORITY OF MUNICIPALITY TO ANNEX CERTAIN COUNTY ROADS.
Authorizes a municipality to annex a county road or right-of-way only if it
adheres to enumerated provisions. 

SECTION 5. Amends Subchapter C, Chapter 43, Local Government Code, as
follows: 

Sec. 43.052. New title: NOTICE OF INTENT TO ANNEX REQUIRED. (a) Requires a
municipality that proposes to annex an area under Section 43.0522 to file
with the county clerk, commissioners court, and county tax
assessor-collector of each county in which the area proposed for annexation
is located a written notice of intent to annex that includes a description
of the area proposed for annexation sufficient to identify the area, and a
map of the area proposed for annexation. 

(b)  Provides that the map must include each county road and right-of-way
that  is exempt from ad valorem taxation, and is within or contiguous to
the boundaries of the area  proposed for annexation. 

Sec. 43.0521. ANNEXATION HEARING REQUIREMENTS. (a) Created from new and
existing text. Provides that on or after the 20th day but before the 30th
day after the date a municipality files a notice of intent to annex under
Section 43.052, rather than before a municipality may institute annexation
proceedings, the governing body of the municipality must conduct the first
of two public hearings at which persons interested in the annexation are
given the opportunity to be heard.  Provides that the second public
hearing, rather than hearings, must be conducted on or after the 50th,
rather than 40th, day but before the 60th, rather than 20th, day after the
date the municipality files the notice of intent to annex under Section
43.052, rather than before the date of the institution of the proceedings. 

(b) Deletes text providing that at least one of the hearings must be held
in the area proposed for annexation if more than 20 adult residents file a
written protest within 10 days after publication of the required notice. 

(c)  Provides that the municipality must provide specified notices of the
first public hearing on or before the 10th day before the date of the
hearing. Deletes text providing the frequency and times that the notice for
each hearing must be published. 

(d) Provides that the municipality must publish notice of the second public
hearing in a newspaper of general circulation in the municipality and in
the area proposed for annexation on or before the 10th day before the date
of the hearing. 

(e) Requires the chief appraiser for each area appraisal district in which
the area proposed for annexation is located to furnish to the municipality
the name and address of each owner of real and personal property located in
the area proposed for annexation and the appraised value of the property on
or before the 30th day after the date a municipality proposing an
annexation submits a written request for tax records. 

Sec. 43.0522. PETITION REQUIRED. (a) Prohibits a municipality from annexing
an area unless the municipality complies with the petition requirements of
this section, except as provided by Subsection (e). 

(b) Authorizes the municipality to circulate a written petition to obtain
the consent of owners of real and personal property to the proposed
annexation during the one-year period following the date of the last
hearing under Section 43.0521. 

(c) Authorizes the municipality to annex an area only if the municipality
follows specified procedures relating to the petition. 

(d) Prohibits the municipality from amending the notice of intent to annex
to increase or reduce the area proposed for annexation after the petition
begins to be circulated for signatures. 

(e) Provides that this section does not apply if the annexation is under
Section 43.027, 43.028 (Authority of Municipalities to Annex Sparsely
Occupied Area on Petition of Area Landowners), 43.029, 43.031 (Authority of
Adjacent Municipalities to Change Boundaries by Agreement), or 43.035, or
under Subsection F (Limited Purpose Annexation). 

Sec. 43.0523. DETERMINATION OF NUMBER OF SIGNATURES REQUIRED. (a) Provides
that, for purposes of determining the number of signatures required under
Section 43.0522(c), the appraised value of the real and personal property
located in the area proposed for annexation is the appraised value as
reflected in the most recent appraisal records of the appraisal district
for each county in which the area proposed for annexation is located. 

(b) Provides that the number of owners of real and personal property
located in the area proposed for annexation is determined as described by
this section. 
 
Sec. 43.0524. PUBLIC INSPECTION OF ANNEXATION INFORMATION.  Provides that
the information required to be filed under this subchapter relating to a
proposed annexation must be made available for public inspection. 

SECTION 6. Amends Section 43.053, Local Government Code, to provide that a
municipality must adopt an ordinance to complete an annexation within 90
days after the date a petition is filed under Section 43.0522. Deletes text
providing the annexation of an area to be completed within 90 days.
Provides that an annexation takes effect on the 30th day, rather than on
any date within 90 days, after the date of the adoption of the ordinance
providing for the annexation. Deletes text restricting this section to a
municipality with a population of 1.5 million or more. 

SECTION 7. Amends Section 43.055(a), Local Government Code, to delete text
providing that an area annexed for limited purposes is not included in
determining the total area annexed in a calendar year if it is annexed at
the request of a majority of the qualified voters of the area and the
owners of at least 50 percent of the land in the area or annexed at the
request of at least a majority of the qualified voters of the area.
Redesignates Subdivision (4) to Subdivision (2).  Makes a conforming
change.  

SECTION 8. Amends Sections 43.056(a), (g), and (h), Local Government Code,
to make a conforming change. 

SECTION 9. Amends Subchapter C, Chapter 43, Local Government Code, by
adding Sections 43.058 and 43.059, as follows: 

Sec. 43.058. ZONING CLASSIFICATIONS. Requires a municipality that annexes
area under Section 43.0522 and that has a comprehensive zoning ordinance
applying to other parts of the municipality to adopt zoning classifications
for the annexed area that permit densities and uses no more restrictive
than those permitted in the area immediately before the annexation.
Provides that a subsequent change in zoning in the annexed area must comply
with the general procedures established by the municipality for rezoning
land. 

Sec. 43.059. SUIT TO CONTEST VALIDITY OF ANNEXATION.  (a) Authorizes the
attorney general, a county or district attorney for the county in which the
area annexed under this subchapter is located, a municipal attorney, or
another affected party to file suit in a district court in a county in
which the annexed area is located to contest the validity of an annexation
under this subchapter. Provides that the suit must be filed within 30 days
after the date an ordinance annexing the area is adopted.  

(b) Requires suits to be consolidated if more than one person files suit
under this section.  

(c) Requires the court to consider any oral or written agreements between
the municipalities in making a determination under this section if a
municipality other than the municipality annexing the area presents
evidence to the court demonstrating that the municipality has actively
pursued annexation of the area. 

SECTION 10.  Amends Sections 43.101(c) and (d), Local Government Code, by
deleting text authorizing the area to be annexed without the consent of the
owners or residents of the area. Redesignates existing text  in Subsection
(d) to (c). 

SECTION 11.  Amends Sections 43.102 (c), (d), and (e), Local Government
Code, to make a conforming change. 

SECTION 12. Amends Section 43.103 (a), Local Government Code, to make a
conforming change. 

SECTION 13.  Amends Section 43.105 (a), Local Government Code, to make a
conforming change. 

SECTION 14.  Amends Section 43.123(d), Local Government Code, to provide
that the regulatory plan must state the date on or before which the
municipality annexes the area for full purposes,  which date must be four,
rather than three, years after the date the area is annexed for limited
purposes. 

SECTION 15. Amends Section 43.128, Local Government Code, as follows:

Sec. 43.128. New title: JUDICIAL REMEDY: DISANNEXATION.  Deletes the
authority of an affected person to petition the district court to compel
the annexation of the area for full purposes.  Makes conforming changes. 

SECTION 16. Repealer: Sections 43.022 (Voter Approval of Annexation by
Home-Rule Municipality Required Under Certain Circumstances), 43.023
(Authority of General-Law Municipality with Population of More Than 5,000
to Annex Area on Petition and Election of Area Voters), 43.024 (Authority
of Type A General-Law Municipality to Annex Area on Request of Area
Voters), 43.025 (Authority of Type B General-Law Municipality to Annex Area
on Request of Area Voters), 43.026 (Authority of Type A General-Law
Municipality to Annex Area it Owns), 43.030 (Authority of Municipality With
Population of 74,000 to 99,700 in Urban County to Annex Small, Surrounded
General-Law Municipality), 43.032 (Authority of Home-Rule Municipality to
Annex Certain Area in Which Farm-to-Market Road is Proposed), 43.033
(Authority of General-Law Municipality to Annex Area),  and 43.034
(Authority of General-Law Municipality to Annex Area; Certain
Municipalities), Local Government Code. 

SECTION 17. Makes application of this Act prospective.

SECTION 18. Effective date: September 1, 1999.

SECTION 19. Emergency clause.