85R429 SCL-D
 
  By: Huberty H.B. No. 424
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to municipal annexation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 43.021, Local Government Code, is
  transferred to Subchapter A, Chapter 43, Local Government Code,
  redesignated as Section 43.003, Local Government Code, and amended
  to read as follows:
         Sec. 43.003 [43.021].  AUTHORITY OF HOME-RULE MUNICIPALITY
  TO ANNEX AREA AND TAKE OTHER ACTIONS REGARDING BOUNDARIES. A
  home-rule municipality may take the following actions according to
  rules as may be provided by the charter of the municipality and not
  inconsistent with the requirements [procedural rules] prescribed
  by this chapter:
               (1)  fix the boundaries of the municipality;
               (2)  extend the boundaries of the municipality and
  annex area adjacent to the municipality; and
               (3)  exchange area with other municipalities.
         SECTION 2.  Chapter 43, Local Government Code, is amended by
  adding Subchapter A-1 to read as follows:
  SUBCHAPTER A-1. GENERAL AUTHORITY TO ANNEX
         Sec. 43.011.  APPLICABILITY. This subchapter applies to:
               (1)  a municipality wholly located in one or more
  counties each with a population of less than 500,000; and
               (2)  notwithstanding Subchapter C-4 or C-5:
                     (A)  a municipality wholly or partly located in a
  county with a population of 500,000 or more; and
                     (B)  a municipality described by Subdivision (1)
  that proposes to annex an area in a county with a population of
  500,000 or more.
         SECTION 3.  Section 43.026, Local Government Code, is
  transferred to Subchapter A-1, Chapter 43, Local Government Code,
  as added by this Act, redesignated as Section 43.012, Local
  Government Code, and amended to read as follows:
         Sec. 43.012 [43.026].  AUTHORITY OF TYPE A GENERAL-LAW
  MUNICIPALITY TO ANNEX AREA IT OWNS. The governing body of a Type A
  general-law municipality by ordinance may annex area that the
  municipality owns under the procedures prescribed by Subchapter
  C-1. The ordinance must describe the area by metes and bounds and
  must be entered in the minutes of the governing body.
         SECTION 4.  Section 43.027, Local Government Code, is
  transferred to Subchapter A-1, Chapter 43, Local Government Code,
  as added by this Act, redesignated as Section 43.013, Local
  Government Code, and amended to read as follows:
         Sec. 43.013 [43.027].  AUTHORITY OF [GENERAL-LAW]
  MUNICIPALITY TO ANNEX NAVIGABLE STREAM. The governing body of a
  [general-law] municipality by ordinance may annex any navigable
  stream adjacent to the municipality and within the municipality's
  extraterritorial jurisdiction under the procedures prescribed by
  Subchapter C-1.
         SECTION 5.  Section 43.051, Local Government Code, is
  transferred to Subchapter A-1, Chapter 43, Local Government Code,
  as added by this Act, and redesignated as Section 43.014, Local
  Government Code, to read as follows:
         Sec. 43.014 [43.051].  AUTHORITY TO ANNEX LIMITED TO
  EXTRATERRITORIAL JURISDICTION. A municipality may annex area only
  in its extraterritorial jurisdiction unless the municipality owns
  the area.
         SECTION 6.  Section 43.031, Local Government Code, is
  transferred to Subchapter A-1, Chapter 43, Local Government Code,
  as added by this Act, and redesignated as Section 43.015, Local
  Government Code, to read as follows:
         Sec. 43.015 [43.031].  AUTHORITY OF ADJACENT MUNICIPALITIES
  TO CHANGE BOUNDARIES BY AGREEMENT. Adjacent municipalities may
  make mutually agreeable changes in their boundaries of areas that
  are less than 1,000 feet in width.
         SECTION 7.  Section 43.035, Local Government Code, is
  transferred to Subchapter A-1, Chapter 43, Local Government Code,
  as added by this Act, redesignated as Section 43.016, Local
  Government Code, and amended to read as follows:
         Sec. 43.016 [43.035].  AUTHORITY OF MUNICIPALITY TO ANNEX
  AREA QUALIFIED FOR AGRICULTURAL OR WILDLIFE MANAGEMENT USE OR AS
  TIMBER LAND. (a) This section applies only to an area:
               (1)  eligible to be the subject of a development
  agreement under Subchapter G, Chapter 212; and
               (2)  appraised for ad valorem tax purposes as land for
  agricultural or wildlife management use under Subchapter C or D,
  Chapter 23, Tax Code, or as timber land under Subchapter E of that
  chapter.
         (b)  A municipality may not annex an area to which this
  section applies unless:
               (1)  the municipality offers to make a development
  agreement with the landowner under Section 212.172 that would:
                     (A)  guarantee the continuation of the
  extraterritorial status of the area; and
                     (B)  authorize the enforcement of all regulations
  and planning authority of the municipality that do not interfere
  with the use of the area for agriculture, wildlife management, or
  timber; and
               (2)  the landowner declines to make the agreement
  described by Subdivision (1).
         (c)  For purposes of Section 43.003(2) [43.021(2)] or
  another law, including a municipal charter or ordinance, relating
  to municipal authority to annex an area adjacent to the
  municipality, an area adjacent or contiguous to an area that is the
  subject of a development agreement described by Subsection (b)(1)
  is considered adjacent or contiguous to the municipality.
         (d)  A provision of a development agreement described by
  Subsection (b)(1) that restricts or otherwise limits the annexation
  of all or part of the area that is the subject of the agreement is
  void if the landowner files any type of subdivision plat or related
  development document for the area with a governmental entity that
  has jurisdiction over the area, regardless of how the area is
  appraised for ad valorem tax purposes.
         (e)  A development agreement described by Subsection (b)(1)
  is not a permit for purposes of Chapter 245.
         SECTION 8.  Section 43.037, Local Government Code, is
  transferred to Subchapter A-1, Chapter 43, Local Government Code,
  as added by this Act, and redesignated as Section 43.017, Local
  Government Code, to read as follows:
         Sec. 43.017 [43.037].  PROHIBITION AGAINST ANNEXATION TO
  SURROUND MUNICIPALITY IN CERTAIN COUNTIES. A municipality with a
  population of more than 175,000 located in a county that contains an
  international border and borders the Gulf of Mexico may not annex an
  area that would cause another municipality to be entirely
  surrounded by the corporate limits or extraterritorial
  jurisdiction of the annexing municipality.
         SECTION 9.  The heading to Subchapter B, Chapter 43, Local
  Government Code, is amended to read as follows:
  SUBCHAPTER B. GENERAL AUTHORITY TO ANNEX: MUNICIPALITIES WHOLLY
  LOCATED IN COUNTIES WITH POPULATION OF LESS THAN 500,000
         SECTION 10.  Subchapter B, Chapter 43, Local Government
  Code, is amended by adding Section 43.0205 to read as follows:
         Sec. 43.0205.  APPLICABILITY. (a)  Except as provided by
  Subsection (b), this subchapter applies only to a municipality
  wholly located in one or more counties each with a population of
  less than 500,000.
         (b)  This subchapter does not apply to a municipality
  described by Subsection (a) that proposes to annex an area in a
  county with a population of 500,000 or more.
         SECTION 11.  The heading to Subchapter C, Chapter 43, Local
  Government Code, is amended to read as follows:
  SUBCHAPTER C. ANNEXATION PROCEDURE FOR AREAS ANNEXED UNDER
  MUNICIPAL ANNEXATION PLAN: MUNICIPALITIES WHOLLY LOCATED IN
  COUNTIES WITH POPULATION OF LESS THAN 500,000
         SECTION 12.  Subchapter C, Chapter 43, Local Government
  Code, is amended by adding Section 43.0505 to read as follows:
         Sec. 43.0505.  APPLICABILITY. (a) Except as provided by
  Subsection (b), this subchapter applies only to a municipality
  wholly located in one or more counties each with a population of
  less than 500,000.
         (b)  Unless otherwise specifically provided by this chapter,
  this subchapter does not apply to:
               (1)  a municipality wholly or partly located in a
  county with a population of 500,000 or more; or
               (2)  a municipality described by Subsection (a) that
  proposes to annex an area in a county with a population of 500,000
  or more.
         SECTION 13.  Section 43.052(h), Local Government Code, is
  amended to read as follows:
         (h)  This section does not apply to an area proposed for
  annexation if:
               (1)  the area contains fewer than 100 separate tracts
  of land on which one or more residential dwellings are located on
  each tract;
               (2)  the area will be annexed by petition of more than
  50 percent of the real property owners in the area proposed for
  annexation or by vote or petition of the qualified voters or real
  property owners as provided by Subchapter B;
               (3)  the area is or was the subject of:
                     (A)  an industrial district contract under
  Section 42.044; or
                     (B)  a strategic partnership agreement under
  Section 43.0751;
               (4)  the area is located in a colonia, as that term is
  defined by Section 2306.581, Government Code;
               (5)  the area is annexed under Section 43.012, 43.013,
  43.015 [43.026, 43.027], or 43.029[, or 43.031];
               (6)  the area is located completely within the
  boundaries of a closed military installation; or
               (7)  the municipality determines that the annexation of
  the area is necessary to protect the area proposed for annexation or
  the municipality from:
                     (A)  imminent destruction of property or injury to
  persons; or
                     (B)  a condition or use that constitutes a public
  or private nuisance as defined by background principles of nuisance
  and property law of this state.
         SECTION 14.  Section 43.054(a), Local Government Code, is
  amended to read as follows:
         (a)  A municipality [with a population of less than 1.6
  million] may not annex a publicly or privately owned area,
  including a strip of area following the course of a road, highway,
  river, stream, or creek, unless the width of the area at its
  narrowest point is at least 1,000 feet.
         SECTION 15.  Section 43.056(l), Local Government Code, is
  amended to read as follows:
         (l)  A service plan is valid for 10 years. Renewal of the
  service plan is at the discretion of the municipality. [A person
  residing or owning land in an annexed area in a municipality with a
  population of 1.6 million or more may enforce a service plan by
  petitioning the municipality for a change in policy or procedures
  to ensure compliance with the service plan. If the municipality
  fails to take action with regard to the petition, the petitioner may
  request arbitration of the dispute under Section 43.0565.] A
  person residing or owning land in an annexed area [in a municipality
  with a population of less than 1.6 million] may enforce a service
  plan by applying for a writ of mandamus not later than the second
  anniversary of the date the person knew or should have known that
  the municipality was not complying with the service plan. If a writ
  of mandamus is applied for, the municipality has the burden of
  proving that the services have been provided in accordance with the
  service plan in question. If a court issues a writ under this
  subsection, the court:
               (1)  must provide the municipality the option of
  disannexing the area within a reasonable period specified by the
  court;
               (2)  may require the municipality to comply with the
  service plan in question before a reasonable date specified by the
  court if the municipality does not disannex the area within the
  period prescribed by the court under Subdivision (1);
               (3)  may require the municipality to refund to the
  landowners of the annexed area money collected by the municipality
  from those landowners for services to the area that were not
  provided;
               (4)  may assess a civil penalty against the
  municipality, to be paid to the state in an amount as justice may
  require, for the period in which the municipality is not in
  compliance with the service plan;
               (5)  may require the parties to participate in
  mediation; and
               (6)  may require the municipality to pay the person's
  costs and reasonable attorney's fees in bringing the action for the
  writ.
         SECTION 16.  Section 43.0562(a), Local Government Code, is
  amended to read as follows:
         (a)  After holding the hearings as provided by Section
  43.0561:
               (1)  [if a municipality has a population of less than
  1.6 million,] the municipality and the property owners of the area
  proposed for annexation shall negotiate for the provision of
  services to the area after annexation or for the provision of
  services to the area in lieu of annexation under Section 43.0563; or
               (2)  if a municipality proposes to annex a special
  district, as that term is defined by Section 43.052, the
  municipality and the governing body of the district shall negotiate
  for the provision of services to the area after annexation or for
  the provision of services to the area in lieu of annexation under
  Section 43.0751.
         SECTION 17.  Section 43.0563(a), Local Government Code, is
  amended to read as follows:
         (a)  The governing body of a municipality [with a population
  of less than 1.6 million] may negotiate and enter into a written
  agreement for the provision of services and the funding of the
  services in an area with:
               (1)  representatives designated under Section
  43.0562(b), if the area is included in the municipality's
  annexation plan; or
               (2)  an owner of an area within the extraterritorial
  jurisdiction of the municipality if the area is not included in the
  municipality's annexation plan.
         SECTION 18.  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
  MUNICIPAL ANNEXATION PLAN: MUNICIPALITIES WHOLLY LOCATED IN
  COUNTIES WITH POPULATION OF LESS THAN 500,000
         SECTION 19.  Section 43.061, Local Government Code, is
  amended to read as follows:
         Sec. 43.061.  APPLICABILITY. (a)  Except as provided by
  Subsection (b), this [This] subchapter applies only to an area that
  is proposed for annexation by a municipality wholly located in one
  or more counties each with a population of less than 500,000 and
  that is not required to be included in a municipal annexation plan
  under Section 43.052(h) [43.052].
         (b)  Unless otherwise specifically provided by this chapter,
  this subchapter does not apply to an area that is proposed for
  annexation by:
               (1)  a municipality wholly or partly located in a
  county with a population of 500,000 or more; or
               (2)  a municipality described by Subsection (a) that
  proposes to annex an area in a county with a population of 500,000
  or more.
         SECTION 20.  Section 43.062(a), Local Government Code, is
  amended to read as follows:
         (a)  Sections [43.051,] 43.054, 43.0545, 43.055, [43.0565,
  43.0567,] and 43.057 apply to the annexation of an area to which
  this subchapter applies.
         SECTION 21.  Section 43.064, Local Government Code, is
  amended to read as follows:
         Sec. 43.064.  PERIOD FOR COMPLETION OF ANNEXATION[;
  EFFECTIVE DATE]. [(a)] The annexation of an area must be completed
  within 90 days after the date the governing body institutes the
  annexation proceedings or those proceedings are void. Any period
  during which the municipality is restrained or enjoined by a court
  from annexing the area is not included in computing the 90-day
  period.
         [(b)     Notwithstanding any provision of a municipal charter
  to the contrary, the governing body of a municipality with a
  population of 1.6 million or more may provide that an annexation
  take effect on any date within 90 days after the date of the
  adoption of the ordinance providing for the annexation.]
         SECTION 22.  Chapter 43, Local Government Code, is amended
  by adding Subchapter C-2, transferring Section 43.030, Local
  Government Code, to added Subchapter C-2, redesignating Section
  43.030, Local Government Code, as Section 43.0663, Local Government
  Code, and amending that section to read as follows:
  SUBCHAPTER C-2. GENERAL ANNEXATION AUTHORITY AND PROCEDURES:
  MUNICIPALITIES WHOLLY OR PARTLY LOCATED IN COUNTY WITH POPULATION
  OF 500,000 OR MORE
         Sec. 43.066.  APPLICABILITY. This subchapter applies only
  to:
               (1)  a municipality wholly or partly located in a
  county with a population of 500,000 or more; and
               (2)  a municipality wholly located in one or more
  counties each with a population of less than 500,000 that proposes
  to annex an area in a county with a population of 500,000 or more.
         Sec. 43.0661.  AUTHORITY TO ANNEX NONCONTIGUOUS AREAS. A
  municipality may annex an area that is noncontiguous to the
  boundaries of the municipality if the area is in the municipality's
  extraterritorial jurisdiction.
         Sec. 43.0662.  PROVISION OF CERTAIN SERVICES TO ANNEXED
  AREA. (a) This section applies only to a municipality that
  includes solid waste collection services in the list of services
  that will be provided in the area proposed for annexation on or
  before the second anniversary of the effective date of the
  annexation of the area under a written agreement under Section
  43.0672 or a resolution under Section 43.0682 or 43.0692.
         (b)  A municipality is not required to provide solid waste
  collection services to a person who continues to use the services of
  a privately owned solid waste management service provider as
  provided by Subsection (c).
         (c)  Before the second anniversary of the effective date of
  the annexation of an area, a municipality may not:
               (1)  prohibit the collection of solid waste in the area
  by a privately owned solid waste management service provider; or
               (2)  impose a fee for solid waste management services
  on a person who continues to use the services of a privately owned
  solid waste management service provider.
         Sec. 43.0663 [43.030].  AUTHORITY OF MUNICIPALITY WITH
  POPULATION OF 74,000 TO 99,700 IN URBAN COUNTY TO ANNEX SMALL,
  SURROUNDED GENERAL-LAW MUNICIPALITY. (a) Notwithstanding
  Subchapter C-4 or C-5, a [A] municipality that has a population of
  74,000 to 99,700, that is located wholly or partly in a county with
  a population of more than 1.8 million, and that completely
  surrounds and is contiguous to a general-law municipality with a
  population of less than 600, may annex the general-law municipality
  as provided by this section.
         (b)  The governing body of the smaller municipality may adopt
  an ordinance ordering an election on the question of consenting to
  the annexation of the smaller municipality by the larger
  municipality. The governing body of the smaller municipality shall
  adopt the ordinance if it receives a petition to do so signed by a
  number of qualified voters of the municipality equal to at least 10
  percent of the number of voters of the municipality who voted in the
  most recent general election. If the ordinance ordering the
  election is to be adopted as a result of a petition, the ordinance
  shall be adopted within 30 days after the date the petition is
  received.
         (c)  The ordinance ordering the election must provide for the
  submission of the question at an election to be held on the first
  uniform election date prescribed by Chapter 41, Election Code, that
  occurs after the 30th day after the date the ordinance is adopted
  and that affords enough time to hold the election in the manner
  required by law.
         (d)  Within 10 days after the date on which the election is
  held, the governing body of the smaller municipality shall canvass
  the election returns and by resolution shall declare the results of
  the election. If a majority of the votes received is in favor of the
  annexation, the secretary of the smaller municipality or other
  appropriate municipal official shall forward by certified mail to
  the secretary of the larger municipality a certified copy of the
  resolution.
         (e)  The larger municipality, within 90 days after the date
  the resolution is received, must complete the annexation by
  ordinance in accordance with its municipal charter or the general
  laws of the state. If the annexation is not completed within the
  90-day period, any annexation proceeding is void and the larger
  municipality may not annex the smaller municipality under this
  section. However, the failure to complete the annexation as
  provided by this subsection does not prevent the smaller
  municipality from holding a new election on the question to enable
  the larger municipality to annex the smaller municipality as
  provided by this section.
         (f)  If the larger municipality completes the annexation
  within the prescribed period, the incorporation of the smaller
  municipality is abolished. The records, public property, public
  buildings, money on hand, credit accounts, and other assets of the
  smaller municipality become the property of the larger municipality
  and shall be turned over to the officers of that municipality. The
  offices in the smaller municipality are abolished and the persons
  holding those offices are not entitled to further remuneration or
  compensation. All outstanding liabilities of the smaller
  municipality are assumed by the larger municipality.
         (g)  In the annexation ordinance, the larger municipality
  shall adopt, for application in the area zoned by the smaller
  municipality, the identical comprehensive zoning ordinance that
  the smaller municipality applied to the area at the time of the
  election. Any attempted annexation of the smaller municipality
  that does not include the adoption of that comprehensive zoning
  ordinance is void. That comprehensive zoning ordinance may not be
  repealed or amended for a period of 10 years unless the written
  consent of the landowners who own at least two-thirds of the surface
  land of the annexed smaller municipality is obtained.
         (h)  If the annexed smaller municipality has on hand any bond
  funds for public improvements that are not appropriated or
  contracted for, the funds shall be kept in a separate special fund
  to be used only for public improvements in the area for which the
  bonds were voted.
         (i)  On the annexation, all claims, fines, debts, or taxes
  due and payable to the smaller municipality become due and payable
  to the larger municipality and shall be collected by it. If taxes
  for the year in which the annexation occurs have been assessed in
  the smaller municipality before the annexation, the amounts
  assessed remain as the amounts due and payable from the inhabitants
  of the smaller municipality for that year.
         (j)  This section does not affect a charter provision of a
  home-rule municipality. This section grants additional power to
  the municipality and is cumulative of the municipal charter.
         Sec. 43.0664.  EFFECT ON OTHER LAW. Subchapters C-3 through
  C-5 do not affect the procedures described by Section 397.005 or
  397.006 applicable to a defense community as defined by Section
  397.001.
         SECTION 23.  Chapter 43, Local Government Code, is amended
  by adding Subchapters C-3, C-4, and C-5 to read as follows:
  SUBCHAPTER C-3. ANNEXATION OF AREA ON REQUEST OF OWNERS:  
  MUNICIPALITIES WHOLLY OR PARTLY LOCATED IN COUNTY WITH POPULATION
  OF 500,000 OR MORE
         Sec. 43.067.  APPLICABILITY. This subchapter applies only
  to a municipality to which Subchapter C-2 applies.
         Sec. 43.0671.  AUTHORITY TO ANNEX AREA ON REQUEST OF OWNERS.
  Notwithstanding Subchapter C-4 or C-5, a municipality may annex an
  area if each owner of land in the area requests the annexation.
         Sec. 43.0672.  WRITTEN AGREEMENT REGARDING SERVICES. (a)
  The governing body of the municipality that elects to annex an area
  under this subchapter must first negotiate and enter into a written
  agreement with the owners of land in the area for the provision of
  services in the area.
         (b)  The agreement must include:
               (1)  a list of each service the municipality will
  provide on the effective date of the annexation; and
               (2)  a schedule that includes the period within which
  the municipality will provide each service that is not provided on
  the effective date of the annexation.
         (c)  The municipality is not required to provide a service
  that is not included in the agreement.
         Sec. 43.0673.  PUBLIC HEARINGS. (a) Before a municipality
  may adopt an ordinance annexing an area under this section, the
  governing body of the municipality must conduct at least two public
  hearings.
         (b)  The hearings must be conducted not less than 10 business
  days apart.
         (c)  During the first public hearing, the governing body must
  provide persons interested in the annexation the opportunity to be
  heard. During the final public hearing, the governing body may
  adopt an ordinance annexing the area.
         (d)  The municipality must post notice of the hearings on the
  municipality's Internet website if the municipality has an Internet
  website and publish notice of the hearings in a newspaper of general
  circulation in the municipality and in the area proposed for
  annexation. The notice for each hearing must be published at least
  once on or after the 20th day but before the 10th day before the date
  of the hearing. 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.
  SUBCHAPTER C-4. ANNEXATION OF AREAS WITH POPULATION OF LESS THAN
  200:  MUNICIPALITIES WHOLLY OR PARTLY LOCATED IN COUNTY WITH
  POPULATION OF 500,000 OR MORE
         Sec. 43.068.  APPLICABILITY. This subchapter applies only
  to a municipality to which Subchapter C-2 applies.
         Sec. 43.0681.  AUTHORITY TO ANNEX. A municipality may annex
  an area with a population of less than 200 only if the municipality
  obtains consent to annex the area through a petition signed by more
  than 50 percent of the registered voters of the area.
         Sec. 43.0682.  RESOLUTION. The governing body of the
  municipality that proposes to annex an area under this subchapter
  must adopt a resolution that includes:
               (1)  a statement of the municipality's intent to annex
  the area;
               (2)  a detailed description and map of the area;
               (3)  a description of each service to be provided by the
  municipality in the area on or after the effective date of the
  annexation, including, as applicable:
                     (A)  police protection;
                     (B)  fire protection;
                     (C)  emergency medical services;
                     (D)  solid waste collection;
                     (E)  operation and maintenance of water and
  wastewater facilities in the annexed area;
                     (F)  operation and maintenance of roads and
  streets, including road and street lighting;
                     (G)  operation and maintenance of parks,
  playgrounds, and swimming pools; and
                     (H)  operation and maintenance of any other
  publicly owned facility, building, or service;
               (4)  a list of each service the municipality will
  provide on the effective date of the annexation; and
               (5)  a schedule that includes the period within which
  the municipality will provide each service that is not provided on
  the effective date of the annexation.
         Sec. 43.0683.  NOTICE OF PROPOSED ANNEXATION. Not later
  than the seventh day after the date the governing body of the
  municipality adopts the resolution under Section 43.0682, the
  municipality must mail to each resident in the area proposed to be
  annexed notification of the proposed annexation that includes:
               (1)  notice of the public hearing required by Section
  43.0684;
               (2)  an explanation of the 180-day petition period
  described by Section 43.0685; and
               (3)  a description, list, and schedule of services to
  be provided by the municipality in the area on or after annexation
  as provided by Section 43.0682.
         Sec. 43.0684.  PUBLIC HEARING. The governing body of a
  municipality must conduct at least one public hearing not earlier
  than the 21st day and not later than the 30th day after the date the
  governing body adopts the resolution under Section 43.0682.
         Sec. 43.0685.  PETITION. (a) The petition required by
  Section 43.0681 may be signed only by a registered voter of the area
  proposed to be annexed.
         (b)  The municipality may collect signatures on the petition
  only during the period beginning on the 31st day after the date the
  governing body of the municipality adopts the resolution under
  Section 43.0682 and ending on the 180th day after the date the
  resolution is adopted.
         (c)  The petition must clearly state that a person signing
  the petition is consenting to the proposed annexation.
         (d)  The petition must include a map of and describe the area
  proposed to be annexed.
         (e)  Signatures collected on the petition must be in writing.
         (f)  Chapter 277, Election Code, applies to a petition under
  this section.
         Sec. 43.0686.  RESULTS OF PETITION. (a) When the petition
  period prescribed by Section 43.0685 ends, the petition shall be
  verified by the municipal secretary or other person responsible for
  verifying signatures. The municipality must notify the residents
  of the area proposed to be annexed of the results of the petition.
         (b)  If the municipality does not obtain the number of
  signatures on the petition required to annex the area, the
  municipality may not annex the area and may not adopt another
  resolution under Section 43.0682 to annex the area until the first
  anniversary of the date the petition period ended.
         (c)  If the municipality obtains the number of signatures on
  the petition required to annex the area, the municipality may annex
  the area after:
               (1)  providing notice under Subsection (a);
               (2)  holding a public hearing at which members of the
  public are given an opportunity to be heard; and
               (3)  holding a final public hearing not earlier than
  the 10th day after the date of the public hearing under Subdivision
  (2) at which the ordinance annexing the area may be adopted.
         Sec. 43.0687.  VOTER APPROVAL BY MUNICIPAL RESIDENTS ON
  PETITION. If a petition protesting the annexation of an area under
  this subchapter is signed by a number of registered voters of the
  municipality proposing the annexation equal to at least 50 percent
  of the number of voters who voted in the most recent municipal
  election and is received by the secretary of the municipality
  before the date the petition period prescribed by Section 43.0685
  ends, the municipality may not complete the annexation of the area
  without approval of a majority of the voters of the municipality
  voting at an election called and held for that purpose.
  SUBCHAPTER C-5. ANNEXATION OF AREAS WITH POPULATION OF AT LEAST
  200: MUNICIPALITIES WHOLLY OR PARTLY LOCATED IN COUNTY WITH
  POPULATION OF 500,000 OR MORE
         Sec. 43.069.  APPLICABILITY. This subchapter applies only
  to a municipality to which Subchapter C-2 applies.
         Sec. 43.0691.  AUTHORITY TO ANNEX. A municipality may annex
  an area with a population of 200 or more only if the following
  conditions are met, as applicable:
               (1)  the municipality holds an election in the area
  proposed to be annexed at which the qualified voters of the area may
  vote on the question of the annexation and a majority of the votes
  received at the election approve the annexation; and
               (2)  if the registered voters of the area do not own
  more than 50 percent of the land in the area, the municipality
  obtains consent to annex the area through a petition signed by more
  than 50 percent of the owners of land in the area.
         Sec. 43.0692.  RESOLUTION. The governing body of the
  municipality that proposes to annex an area under this subchapter
  must adopt a resolution that includes:
               (1)  a statement of the municipality's intent to annex
  the area;
               (2)  a detailed description and map of the area;
               (3)  a description of each service to be provided by the
  municipality in the area on or after the effective date of the
  annexation, including, as applicable:
                     (A)  police protection;
                     (B)  fire protection;
                     (C)  emergency medical services;
                     (D)  solid waste collection;
                     (E)  operation and maintenance of water and
  wastewater facilities in the annexed area;
                     (F)  operation and maintenance of roads and
  streets, including road and street lighting;
                     (G)  operation and maintenance of parks,
  playgrounds, and swimming pools; and
                     (H)  operation and maintenance of any other
  publicly owned facility, building, or service;
               (4)  a list of each service the municipality will
  provide on the effective date of the annexation; and
               (5)  a schedule that includes the period within which
  the municipality will provide each service that is not provided on
  the effective date of the annexation.
         Sec. 43.0693.  NOTICE OF PROPOSED ANNEXATION. Not later
  than the seventh day after the date the governing body of the
  municipality adopts the resolution under Section 43.0692, the
  municipality must mail to each property owner in the area proposed
  to be annexed notification of the proposed annexation that
  includes:
               (1)  notice of the public hearings required by Section
  43.0694;
               (2)  notice that an election on the question of
  annexing the area will be held; and
               (3)  a description, list, and schedule of services to
  be provided by the municipality in the area on or after annexation
  as provided by Section 43.0692.
         Sec. 43.0694.  PUBLIC HEARINGS. (a) The governing body of a
  municipality must conduct an initial public hearing not earlier
  than the 21st day and not later than the 30th day after the date the
  governing body adopts the resolution under Section 43.0692.
         (b)  The governing body must conduct at least one additional
  public hearing not earlier than the 31st day and not later than the
  90th day after the date the governing body adopts a resolution under
  Section 43.0692.
         Sec. 43.0695.  PROPERTY OWNER CONSENT REQUIRED FOR CERTAIN
  AREAS. (a) If the registered voters in the area proposed to be
  annexed do not own more than 50 percent of the land in the area, the
  municipality must obtain consent to the annexation through a
  petition signed by more than 50 percent of the owners of land in the
  area in addition to the election required by this subchapter.
         (b)  The municipality must obtain the consent required by
  this section through the petition process prescribed by Section
  43.0685, and the petition must be verified in the manner provided by
  Section 43.0686(a).
         (c)  Notwithstanding Section 43.0685(e), the municipality
  may provide for an owner of land in the area that is not a resident
  of the area to sign the petition electronically.
         Sec. 43.0696.  ELECTION. (a) A municipality shall order an
  election on the question of annexing an area to be held on the first
  uniform election date that falls on or after:
               (1)  the 90th day after the date the governing body of
  the municipality adopts the resolution under Section 43.0692; or
               (2)  if the consent of the owners of land in the area is
  required under Section 43.0695, the 78th day after the date the
  petition period to obtain that consent ends.
         (b)  An election under this section shall be held in the same
  manner as general elections of the municipality.  The municipality
  shall pay for the costs of holding the election.
         (c)  A municipality that holds an election under this section
  may not hold another election on the question of annexation before
  the corresponding uniform election date of the following year.
         Sec. 43.0697.  RESULTS OF ELECTION AND PETITION. (a)
  Following an election held under this subchapter, the municipality
  must notify the residents of the area proposed to be annexed of the
  results of the election and, if applicable, of the petition
  required by Section 43.0695.
         (b)  If at the election held under this subchapter a majority
  of qualified voters do not approve the proposed annexation, or if
  the municipality is required to petition owners of land in the area
  under Section 43.0695 and does not obtain the required number of
  signatures, the municipality may not annex the area and may not
  adopt another resolution under Section 43.0692 to annex the area
  until the first anniversary of the date of the adoption of the
  resolution.
         (c)  If at the election held under this subchapter a majority
  of qualified voters approve the proposed annexation, and if the
  municipality, as applicable, obtains the required number of
  petition signatures under Section 43.0695, the municipality may
  annex the area after:
               (1)  providing notice under Subsection (a);
               (2)  holding a public hearing at which members of the
  public are given an opportunity to be heard; and
               (3)  holding a final public hearing not earlier than
  the 10th day after the date of the public hearing under Subdivision
  (2) at which the ordinance annexing the area may be adopted.
         Sec. 43.0698.  VOTER APPROVAL BY MUNICIPAL RESIDENTS ON
  PETITION. If a petition protesting the annexation of an area under
  this subchapter is signed by a number of registered voters of the
  municipality proposing the annexation equal to at least 50 percent
  of the number of voters who voted in the most recent municipal
  election and is received by the secretary of the municipality
  before the date the election required by this subchapter is held,
  the municipality may not complete the annexation of the area
  without approval of a majority of the voters of the municipality
  voting at a separate election called and held for that purpose.
         SECTION 24.  Subchapter D, Chapter 43, Local Government
  Code, is amended by adding Section 43.0711 to read as follows:
         Sec. 43.0711.  LIMITATION ON AUTHORITY OF CERTAIN
  MUNICIPALITIES. (a) This section applies only to:
               (1)  a municipality wholly or partly located in a
  county with a population of 500,000 or more; and
               (2)  a municipality wholly located in one or more
  counties each with a population of less than 500,000 that proposes
  to annex an area in a county with a population of 500,000 or more.
         (b)  With respect to an industrial district identified by the
  governing body of a municipality or a special district, either of
  which is located in the extraterritorial jurisdiction of the
  municipality on September 1, 2017, the municipality may under the
  requirements applicable to a municipality wholly located in one or
  more counties each with a population of less than 500,000:
               (1)  annex the district; or
               (2)  enter into a strategic partnership agreement with
  the district that provides for limited purpose annexation.
         (c)  Except as provided by Subsection (b), beginning
  September 1, 2017, a municipality may not enter into a strategic
  partnership agreement that provides for limited purpose
  annexation.
         SECTION 25.  Sections 43.0715(b) and (c), Local Government
  Code, are amended to read as follows:
         (b)  If a municipality with a population of less than 1.5
  million annexes a special district for full or limited purposes and
  the annexation precludes or impairs the ability of the district to
  issue bonds, the municipality shall, prior to the effective date of
  the annexation, pay in cash to the landowner or developer of the
  district a sum equal to all actual costs and expenses incurred by
  the landowner or developer in connection with the district that the
  district has, in writing, agreed to pay and that would otherwise
  have been eligible for reimbursement from bond proceeds under the
  rules and requirements of the Texas [Natural Resource Conservation]
  Commission on Environmental Quality as such rules and requirements
  exist on the date of annexation. [For an annexation that is subject
  to preclearance by a federal authority, a payment will be
  considered timely if the municipality: (i) escrows the
  reimbursable amounts determined in accordance with Subsection (c)
  prior to the effective date of the annexation; and (ii)
  subsequently causes the escrowed funds and accrued interest to be
  disbursed to the developer within five business days after the
  municipality receives notice of the preclearance.]
         (c)  At the time notice of the municipality's intent to annex
  the land within the district is first given [published] 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 [Natural Resource Conservation] 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
  [or federal preclearance], 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 26.  The heading to Section 43.101, Local Government
  Code, is amended to read as follows:
         Sec. 43.101.  ANNEXATION OF MUNICIPALLY OWNED RESERVOIR [BY
  GENERAL-LAW MUNICIPALITY].
         SECTION 27.  Section 43.101(c), Local Government Code, is
  amended to read as follows:
         (c)  The area may be annexed without the consent of any [the]
  owners or residents of the area under the procedures applicable to a
  municipality described by Subdivision (1) by:
               (1)  a municipality wholly located in one or more
  counties each with a population of less than 500,000; and
               (2)  if there are no owners other than the municipality
  or residents of the area:
                     (A)  a municipality wholly or partly located in a
  county with a population of 500,000 or more; and
                     (B)  a municipality described by Subdivision (1)
  that proposes to annex an area in a county with a population of
  500,000 or more.
         SECTION 28.  Section 43.102(c), Local Government Code, is
  amended to read as follows:
         (c)  The area may be annexed without the consent of any [the]
  owners or residents of the area under the procedures applicable to a
  municipality described by Subdivision (1) by:
               (1)  a municipality wholly located in one or more
  counties each with a population of less than 500,000; and
               (2)  if there are no owners other than the municipality
  or residents of the area:
                     (A)  a municipality wholly or partly located in a
  county with a population of 500,000 or more; and
                     (B)  a municipality described by Subdivision (1)
  that proposes to annex an area in a county with a population of
  500,000 or more.
         SECTION 29.  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 applicable to a municipality wholly or
  partly located in a county with a population of 500,000 or more
  [without the consent of the owners or residents of the area], 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 30.  The heading to Section 43.103, Local Government
  Code, is amended to read as follows:
         Sec. 43.103.  ANNEXATION OF STREETS, HIGHWAYS, AND OTHER
  WAYS BY CERTAIN GENERAL-LAW MUNICIPALITIES [MUNICIPALITY].
         SECTION 31.  Section 43.103(a), Local Government Code, is
  amended to read as follows:
         (a)  Subject to Section 43.1055(b), a [A] general-law
  municipality with a population of 500 or more wholly located in one
  or more counties each with a population of less than 500,000 may
  annex, by ordinance and without the consent of any person, the part
  of a street, highway, alley, or other public or private way,
  including a railway line, spur, or roadbed, that is adjacent and
  runs parallel to the boundaries of the municipality.
         SECTION 32.  Section 43.105, Local Government Code, is
  amended by amending Subsection (a) and adding Subsection (a-1) to
  read as follows:
         (a)  This section applies only to:
               (1)  a [A] general-law municipality that:
                     (A)  has a population of 1,066-1,067;
                     (B)  [and] is wholly located in a county with a
  population of 85,000 or more and less than 500,000; and
                     (C)  [that] is not adjacent to a county with a
  population of 2 million or more;[,] or
               (2)  a general-law municipality that:
                     (A)  has a population of 6,000-6,025; and
                     (B)  is wholly located in a county with a
  population of less than 500,000.
         (a-1)  Subject to Section 43.1055(b), a municipality
  described by Subsection (a) may annex, by ordinance and without the
  consent of any person, a public street, highway, road, or alley
  adjacent to the municipality.
         SECTION 33.  Subchapter E, Chapter 43, Local Government
  Code, is amended by adding Section 43.1055 to read as follows:
         Sec. 43.1055.  ANNEXATION OF ROADS AND RIGHTS-OF-WAY IN
  CERTAIN LARGE COUNTIES. (a) Notwithstanding any other law, a
  municipality wholly or partly located in a county with a population
  of 500,000 or more 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 applicable to a municipality
  wholly located in one or more counties each with a population of
  less than 500,000.
         (b)  A municipality described by Section 43.103 or 43.105
  that proposes to annex a road or right-of-way in a county with a
  population of 500,000 or more must comply with this section.
         SECTION 34.  Sections 43.121(a) and (c), Local Government
  Code, are amended to read as follows:
         (a)  Subject to Section 43.1211, the [The] governing body of
  a home-rule municipality with more than 225,000 inhabitants by
  ordinance may annex an area for the limited purposes of applying its
  planning, zoning, health, and safety ordinances in the area.
         (c)  The provisions of this subchapter, other than Sections
  43.1211 and [Section] 43.136, do not affect the authority of a
  municipality to annex an area for limited purposes under Section
  43.136 or any other statute granting the authority to annex for
  limited purposes.
         SECTION 35.  Subchapter F, Chapter 43, Local Government
  Code, is amended by adding Section 43.1211 to read as follows:
         Sec. 43.1211.  AUTHORITY OF MUNICIPALITIES WHOLLY OR PARTLY
  LOCATED IN COUNTY WITH POPULATION OF 500,000 OR MORE TO ANNEX FOR
  LIMITED PURPOSES. Except as provided by Section 43.0711(b),
  beginning September 1, 2017, a municipality described below may not
  annex an area for the limited purposes of applying its planning,
  zoning, health, and safety ordinances in the area:
               (1)  a municipality wholly or partly located in a
  county with a population of 500,000 or more; or
               (2)  a municipality wholly located in one or more
  counties each with a population of 500,000 or less that proposes to
  annex an area in a county with a population of 500,000 or more.
         SECTION 36.  Sections 43.141(a) and (b), Local Government
  Code, are 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 municipality is wholly located in one or
  more counties each with a population of less than 500,000, within
  the period specified by Section 43.056 or by the service plan
  prepared for the area under that section; or
               (2)  if the municipality is wholly or partly located in
  a county with a population of 500,000 or more or is a municipality
  described by Subdivision (1) that proposes to annex an area in a
  county with a population of 500,000 or more, within the period
  specified by the written agreement under Section 43.0672 or the
  resolution under Section 43.0682 or 43.0692, as applicable.
         (b)  If the governing body fails or refuses to disannex the
  area within 60 days after the date of the receipt of the petition,
  any one or more of the signers of the petition may bring a cause of
  action in a district court of the county in which the area is
  principally located to request that the area be disannexed. On the
  filing of an answer by the governing body, and on application of
  either party, the case shall be advanced and heard without further
  delay in accordance with the Texas Rules of Civil Procedure. The
  district court shall enter an order disannexing the area if the
  court finds that a valid petition was filed with the municipality
  and that the municipality failed to:
               (1)  perform its obligations in accordance with:
                     (A)  the service plan under Section 43.056;
                     (B)  the written agreement entered into under
  Section 43.0672; or
                     (C)  the resolution adopted under Section 43.0682
  or 43.0692, as applicable; or
               (2)  [failed to] perform in good faith.
         SECTION 37.  Sections 43.203(a) and (b), Local Government
  Code, are amended to read as follows:
         (a)  Unless a municipality is prohibited from annexing for
  limited purposes under Section 43.1211, the [The] governing body of
  a district by resolution may petition a municipality to alter the
  annexation status of land in the district from full-purpose
  annexation to limited-purpose annexation.
         (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
  Sections 43.014 and 43.052 [43.051] 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 38.  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 [publishing] the notice of the
  first hearing under Section 43.0561, [or] 43.063, 43.0673, 43.0683,
  or 43.0693, as applicable.
         SECTION 39.  Section 8489.109, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 8489.109.  MUNICIPAL ANNEXATION ADJACENT TO DISTRICT.
  For the purposes of Section 43.003(2) [43.021(2)], Local Government
  Code, or other law, including a municipal charter or ordinance
  relating to annexation, an area adjacent to the district or any new
  district created by the division of the district is considered
  adjacent to a municipality in whose corporate limits or
  extraterritorial jurisdiction any of the land in the area described
  by Section 2 of the Act enacting this chapter is located.
         SECTION 40.  Section 9038.110, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 9038.110.  MUNICIPAL ANNEXATION ADJACENT TO DISTRICT.
  For the purposes of Section 43.003(2) [43.021(2)], Local Government
  Code, or other law, including a municipal charter or ordinance
  relating to annexation, an area adjacent to the district or any new
  district created by the division of the district is considered
  adjacent to a municipality in whose corporate limits or
  extraterritorial jurisdiction any of the land in the area described
  by Section 2 of the Act creating this chapter is located.
         SECTION 41.  Section 9039.110, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 9039.110.  MUNICIPAL ANNEXATION ADJACENT TO DISTRICT.
  For the purposes of Section 43.003(2) [43.021(2)], Local Government
  Code, or other law, including a municipal charter or ordinance
  relating to annexation, an area adjacent to the district or any new
  district created by the division of the district is considered
  adjacent to a municipality in whose corporate limits or
  extraterritorial jurisdiction any of the land in the area described
  by Section 2 of the Act creating this chapter is located.
         SECTION 42.  (a) Sections 43.036, 43.0546, 43.056(d), (h),
  and (p), 43.0565, 43.0567, 43.1025(e) and (g), and 43.906, Local
  Government Code, are repealed.
         (b)  Section 5.701(n)(6), Water Code, is repealed.
         (c)  The repeal of Section 43.036, Local Government Code, by
  this Act does not affect a boundary change agreement entered into
  under that section, the release and transfer of area under a
  boundary change agreement entered into under that section, or the
  requirements related to a boundary change agreement entered into
  under that section.
         (d)  The repeal of Sections 43.056(d), (h), and (p) and
  Sections 43.0565 and 43.0567, Local Government Code, by this Act
  and the change in law made by this Act to Section 43.056(l), Local
  Government Code, do not affect a right, requirement, limitation, or
  remedy provided for under those sections and applicable in an area
  annexed by a municipality for which the first hearing notice
  required by Section 43.0561 or 43.063, Local Government Code, as
  applicable, was published before September 1, 2017.
         SECTION 43.  The changes in law made by this Act do not apply
  to an annexation for which the first hearing notice required by
  Section 43.0561 or 43.063, Local Government Code, as applicable,
  was published before September 1, 2017. An annexation described by
  this section is governed by the law in effect at the time the notice
  was published, and the former law is continued in effect for that
  purpose.
         SECTION 44.  This Act takes effect September 1, 2017.