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.