85S10672 SCL-D
	By: Huberty	H.B. No. 6

	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 43.001, Local Government Code, is
	amended to read as follows:
	Sec. 43.001.  DEFINITIONS [DEFINITION]. In this chapter:
	(1)  "Extraterritorial [, "extraterritorial]
	jurisdiction" means extraterritorial jurisdiction as determined
	under Chapter 42.
	(2)  "Tier 1 county" means a county with a population of
	less than 500,000.
	(3)  "Tier 2 county" means a county with a population of
	500,000 or more.
	(4)  "Tier 1 municipality" means a municipality wholly
	located in one or more tier 1 counties that proposes to annex an
	area wholly located in one or more tier 1 counties.
	(5)  "Tier 2 municipality" means a municipality:
	(A)  wholly or partly located in a tier 2 county;
	or
	(B)  wholly located in one or more tier 1 counties
	that proposes to annex an area wholly or partly located in a tier 2
	county.
	SECTION 2.  Section 43.002, Local Government Code, is
	amended by adding Subsection (e) to read as follows:
	(e)  Notwithstanding Subsection (c) and until the 20th
	anniversary of the date of the annexation of an area that includes a
	permanent retail structure, a municipality may not prohibit a
	person from continuing to use the structure for the indoor seasonal
	sale of retail goods if the structure:
	(1)  is more than 5,000 square feet; and
	(2)  was authorized under the laws of this state to be
	used for the indoor seasonal sale of retail goods on the effective
	date of the annexation.
	SECTION 3.  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 4.  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 tier 1 municipality; and
	(2)  notwithstanding Subchapter C-4 or C-5, a tier 2
	municipality.
	Sec. 43.0115.  AUTHORITY OF CERTAIN MUNICIPALITIES TO ANNEX
	ENCLAVES. (a) This section applies only to a municipality that:
	(1)  is wholly or partly located in a county in which a
	majority of the population of two or more municipalities, each with
	a population of 300,000 or more, are located; and
	(2)  proposes to annex an area that:
	(A)  is wholly surrounded by a municipality and
	within the municipality's extraterritorial jurisdiction; and
	(B)  has fewer than 100 dwelling units.
	(b)  Notwithstanding any other law, the governing body of a
	municipality by ordinance may annex an area without the consent of
	any of the residents of, voters of, or owners of land in the area
	under the procedures prescribed by Subchapter C-1.
	Sec. 43.0116.  AUTHORITY OF MUNICIPALITY TO ANNEX INDUSTRIAL
	DISTRICTS. Notwithstanding any other law, 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 requirements applicable to a tier 1 municipality.
	Sec. 43.0117.  AUTHORITY OF MUNICIPALITY TO ANNEX AREA NEAR
	MILITARY BASE. (a) In this section, "military base" means a
	presently functioning federally owned or operated military
	installation or facility.
	(b)  Notwithstanding any other law, a municipality may not
	annex for full or limited purposes any part of the area located
	within one-half mile of the boundaries of a military base unless the
	municipality and the base authorities have entered into a
	comprehensive written agreement that establishes provisions to
	maintain the compatibility of the municipality's regulation of land
	in the area with the military base operations following the
	annexation.
	SECTION 5.  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 6.  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 7.  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 8.  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 9.  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 10.  Section 43.037, Local Government Code, is
	transferred to Subchapter A-1, Chapter 43, Local Government Code,
	as added by this Act, redesignated as Section 43.017, Local
	Government Code, and amended to read as follows:
	Sec. 43.017 [43.037].  PROHIBITION AGAINST ANNEXATION TO
	SURROUND MUNICIPALITY IN CERTAIN COUNTIES. (a)  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.
	(b)  A municipality described by Subsection (a) to which
	Section 42.0235 applies and a neighboring municipality may waive
	Subsection (a) if the governing body of each municipality adopts,
	on or after September 1, 2017, a resolution stating that this
	section is waived.
	SECTION 11.  The heading to Subchapter B, Chapter 43, Local
	Government Code, is amended to read as follows:
	SUBCHAPTER B. GENERAL AUTHORITY TO ANNEX: TIER 1 MUNICIPALITIES
	SECTION 12.  Subchapter B, Chapter 43, Local Government
	Code, is amended by adding Section 43.0205 to read as follows:
	Sec. 43.0205.  APPLICABILITY. This subchapter applies only
	to a tier 1 municipality.
	SECTION 13.  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: TIER 1 MUNICIPALITIES
	SECTION 14.  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 tier 1
	municipality.
	(b)  Unless otherwise specifically provided by this chapter,
	this subchapter does not apply to a tier 2 municipality.
	SECTION 15.  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 16.  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 17.  Sections 43.056(l) and (n), Local Government
	Code, are 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.
	(n)  Before the second anniversary of the date an area is
	included within the corporate boundaries of a municipality by
	annexation, the municipality may not:
	(1)  prohibit the collection of solid waste in the area
	by a privately owned solid waste management service provider; or
	(2)  offer [impose a fee for] solid waste management
	services in the area unless a privately owned solid waste
	management service provider is unavailable [on a person who
	continues to use the services of a privately owned solid waste
	management service provider].
	SECTION 18.  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 19.  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 20.  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: TIER 1 MUNICIPALITIES
	SECTION 21.  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 tier 1 municipality 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 a tier 2 municipality.
	SECTION 22.  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 23.  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 24.  Chapter 43, Local Government Code, is amended
	by adding Subchapter C-2 to read as follows:
	SUBCHAPTER C-2. GENERAL ANNEXATION AUTHORITY AND PROCEDURES: TIER
	2 MUNICIPALITIES
	Sec. 43.066.  APPLICABILITY. This subchapter applies only
	to a tier 2 municipality.
	Sec. 43.0661.  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)  offer solid waste management services in the area
	unless a privately owned solid waste management service provider is
	unavailable.
	Sec. 43.0663.  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 25.  Section 43.030, Local Government Code, is
	transferred to Subchapter C-2, Chapter 43, Local Government Code,
	as added by this Act, redesignated as Section 43.0662, Local
	Government Code, and amended to read as follows:
	Sec. 43.0662 [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.
	SECTION 26.  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: TIER 2
	MUNICIPALITIES
	Sec. 43.067.  APPLICABILITY. This subchapter applies only
	to a tier 2 municipality.
	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:  TIER 2 MUNICIPALITIES
	Sec. 43.068.  APPLICABILITY. This subchapter applies only
	to a tier 2 municipality.
	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.
	Sec. 43.0688.  RETALIATION FOR ANNEXATION DISAPPROVAL
	PROHIBITED. (a) The disapproval of the proposed annexation of an
	area under this subchapter does not affect any existing legal
	obligation of the municipality proposing the annexation to continue
	to provide governmental services in the area, including water or
	wastewater services.
	(b)  The municipality may not initiate a rate proceeding
	solely because of the disapproval of a proposed annexation of an
	area under this subchapter.
	SUBCHAPTER C-5. ANNEXATION OF AREAS WITH POPULATION OF AT LEAST
	200: TIER 2 MUNICIPALITIES
	Sec. 43.069.  APPLICABILITY. This subchapter applies only
	to a tier 2 municipality.
	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.
	Sec. 43.0699.  RETALIATION FOR ANNEXATION DISAPPROVAL
	PROHIBITED. (a) The disapproval of the proposed annexation of an
	area under this subchapter does not affect any existing legal
	obligation of the municipality proposing the annexation to continue
	to provide governmental services in the area, including water or
	wastewater services.
	(b)  The municipality may not initiate a rate proceeding
	solely because of the disapproval of a proposed annexation of an
	area under this subchapter.
	SECTION 27.  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 28.  Section 43.0751, Local Government Code, is
	amended by amending Subsection (h) and adding Subsections (s) and
	(t) to read as follows:
	(h)  On the full-purpose annexation conversion date set
	forth in the strategic partnership agreement pursuant to Subsection
	(f)(5) [(f)(5)(A)], 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 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).
	(s)  Notwithstanding any other law and except as provided by
	Subsection (t), the procedures prescribed by Subchapters C-3, C-4,
	and C-5 do not apply to the annexation of an area under this
	section.  Except as provided by Subsections (h) and (t), a
	municipality shall follow the procedures established under the
	strategic partnership agreement for full-purpose annexation of an
	area under this section.
	(t)  Notwithstanding the provisions of this section, a
	municipality subject to this subsection must annex an area
	described by Subdivision (4)(B) in compliance with Subchapter C-3,
	C-4, or C-5.  This subsection applies only to a municipality that:
	(1)  has a population of less than 850,000;
	(2)  is served by a municipally owned electric utility
	with 400,000 or more customers;
	(3)  is wholly or partly located in a tier 2 county; and
	(4)  is subject to a strategic partnership agreement:
	(A)  executed on or after September 1, 2009; and
	(B)  for which an area proposed for annexation
	will be annexed before January 1, 2021.
	SECTION 29.  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 30.  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
	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 31.  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
	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 32.  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 tier 2 municipality [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 33.  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 GENERAL-LAW TIER 1 MUNICIPALITIES [MUNICIPALITY].
	SECTION 34.  Section 43.103(a), Local Government Code, is
	amended to read as follows:
	(a)  A general-law tier 1 municipality with a population of
	500 or more 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 35.  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 tier 1 municipality that:
	(A)  has a population of 1,066-1,067;
	(B)  [and] is located in a county with a
	population of 85,000 or more; and
	(C)  [that] is not adjacent to a county with a
	population of 2 million or more;[,] or
	(2)  a general-law tier 1 municipality that has a
	population of 6,000-6,025.
	(a-1)  Subject to Section 43.1055, 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 36.  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. 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 applicable to a tier 1
	municipality.
	SECTION 37.  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 38.  Subchapter F, Chapter 43, Local Government
	Code, is amended by adding Section 43.1211 to read as follows:
	Sec. 43.1211.  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.
	SECTION 39.  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 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 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.
	(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 40.  Sections 43.203(a) and (b), Local Government
	Code, are amended to read as follows:
	(a)  Notwithstanding any other law, 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 41.  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 42.  Subchapter Z, Chapter 43, Local Government
	Code, is amended by adding Section 43.9051 to read as follows:
	Sec. 43.9051.  EFFECT OF ANNEXATION ON PUBLIC ENTITIES OR
	POLITICAL SUBDIVISIONS. (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, as that term is defined by Section 43.052.
	(b)  A municipality that proposes to annex an area shall
	provide written notice of the proposed annexation within the period
	prescribed for providing the notice of 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.
	(c)  A municipality that proposes to enter into a strategic
	partnership agreement under Section 43.0751 shall provide written
	notice of the proposed agreement within the period prescribed for
	providing the notice of the first hearing under Section 43.0751 to
	each political subdivision that is located in or provides services
	to the area subject to the proposed agreement.
	(d)  A notice to a public entity or political subdivision
	shall contain a description of:
	(1)  the area proposed for annexation;
	(2)  any financial impact on the public entity or
	political subdivision resulting from the annexation, including any
	changes in the public entity's or political subdivision's revenues
	or maintenance and operation costs; and
	(3)  any proposal the municipality has to abate,
	reduce, or limit any financial impact on the public entity or
	political subdivision.
	(e)  The municipality may not proceed with the annexation
	unless the municipality provides the required notice under this
	section.
	SECTION 43.  Section 8395.151, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 8395.151.  ANNEXATION BY MUNICIPALITY.  (a)  The
	governing body of a [A] municipality that plans to [may] annex all
	or part of the district first must adopt a resolution of intention
	to annex all or part of the district and transmit that resolution to
	the district and the following districts:
	(1)  Travis County Municipal Utility District No. 4;
	(2)  Travis County Municipal Utility District No. 5;
	(3)  Travis County Municipal Utility District No. 6;
	(4)  Travis County Municipal Utility District No. 7;
	(5)  Travis County Municipal Utility District No. 8;
	(6)  Travis County Municipal Utility District No. 9;
	and
	(7)  Travis County Water Control and Improvement
	District No. 19.
	(b)  On receipt of a resolution described by Subsection (a),
	the district and each of the districts listed in Subsection (a)
	shall call an election to be held on the next uniform election date
	on the question of whether the annexation should be authorized.
	(c)  The municipality may annex the territory described by
	the resolution only if a majority of the total number of voters
	voting in all of the districts' elections vote in favor of
	authorizing the annexation.
	(d)  The municipality seeking annexation shall pay the costs
	of the elections held under this section [on the earlier of:
	[(1)     the installation of 90 percent of all works,
	improvements, facilities, plants, equipment, and appliances
	necessary and adequate to:
	[(A)     provide service to the proposed development
	within the district;
	[(B)     accomplish the purposes for which the
	district was created; and
	[(C)     exercise the powers provided by general law
	and this chapter; or
	[(2)     the 20th anniversary of the date the district was
	confirmed].
	SECTION 44.  Section 8396.151, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 8396.151.  ANNEXATION BY MUNICIPALITY.  (a)  The
	governing body of a [A] municipality that plans to [may] annex all
	or part of the district first must adopt a resolution of intention
	to annex all or part of the district and transmit that resolution to
	the district and the following districts:
	(1)  Travis County Municipal Utility District No. 3;
	(2)  Travis County Municipal Utility District No. 5;
	(3)  Travis County Municipal Utility District No. 6;
	(4)  Travis County Municipal Utility District No. 7;
	(5)  Travis County Municipal Utility District No. 8;
	(6)  Travis County Municipal Utility District No. 9;
	and
	(7)  Travis County Water Control and Improvement
	District No. 19.
	(b)  On receipt of a resolution described by Subsection (a),
	the district and each of the districts listed in Subsection (a)
	shall call an election to be held on the next uniform election date
	on the question of whether the annexation should be authorized.
	(c)  The municipality may annex the territory described in
	the resolution only if a majority of the total number of voters
	voting in all of the districts' elections vote in favor of
	authorizing the annexation.
	(d)  The municipality seeking annexation shall pay the costs
	of the elections held under this section [on the earlier of:
	[(1)     the installation of 90 percent of all works,
	improvements, facilities, plants, equipment, and appliances
	necessary and adequate to:
	[(A)     provide service to the proposed development
	within the district;
	[(B)     accomplish the purposes for which the
	district was created; and
	[(C)     exercise the powers provided by general law
	and this chapter; or
	[(2)     the 20th anniversary of the date the district was
	confirmed].
	SECTION 45.  Section 8397.151, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 8397.151.  ANNEXATION BY MUNICIPALITY.  (a)  The
	governing body of a [A] municipality that plans to [may] annex all
	or part of the district first must adopt a resolution of intention
	to annex all or part of the district and transmit that resolution to
	the district and the following districts:
	(1)  Travis County Municipal Utility District No. 3;
	(2)  Travis County Municipal Utility District No. 4;
	(3)  Travis County Municipal Utility District No. 6;
	(4)  Travis County Municipal Utility District No. 7;
	(5)  Travis County Municipal Utility District No. 8;
	(6)  Travis County Municipal Utility District No. 9;
	and
	(7)  Travis County Water Control and Improvement
	District No. 19.
	(b)  On receipt of a resolution described by Subsection (a),
	the district and each of the districts listed in Subsection (a)
	shall call an election to be held on the next uniform election date
	on the question of whether the annexation should be authorized.
	(c)  The municipality may annex the territory described in
	the resolution only if a majority of the total number of voters
	voting in all of the districts' elections vote in favor of
	authorizing the annexation.
	(d)  The municipality seeking annexation shall pay the costs
	of the elections held under this section [on the earlier of:
	[(1)     the installation of 90 percent of all works,
	improvements, facilities, plants, equipment, and appliances
	necessary and adequate to:
	[(A)     provide service to the proposed development
	within the district;
	[(B)     accomplish the purposes for which the
	district was created; and
	[(C)     exercise the powers provided by general law
	and this chapter; or
	[(2)     the 20th anniversary of the date the district was
	confirmed].
	SECTION 46.  Section 8398.151, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 8398.151.  ANNEXATION BY MUNICIPALITY.  (a)  The
	governing body of a [A] municipality that plans to [may] annex all
	or part of the district first must adopt a resolution of intention
	to annex all or part of the district and transmit that resolution to
	the district and the following districts:
	(1)  Travis County Municipal Utility District No. 3;
	(2)  Travis County Municipal Utility District No. 4;
	(3)  Travis County Municipal Utility District No. 5;
	(4)  Travis County Municipal Utility District No. 7;
	(5)  Travis County Municipal Utility District No. 8;
	(6)  Travis County Municipal Utility District No. 9;
	and
	(7)  Travis County Water Control and Improvement
	District No. 19.
	(b)  On receipt of a resolution described by Subsection (a),
	the district and each of the districts listed in Subsection (a)
	shall call an election to be held on the next uniform election date
	on the question of whether the annexation should be authorized.
	(c)  The municipality may annex the territory described in
	the resolution only if a majority of the total number of voters
	voting in all of the districts' elections vote in favor of
	authorizing the annexation.
	(d)  The municipality seeking annexation shall pay the costs
	of the elections held under this section [on the earlier of:
	[(1)     the installation of 90 percent of all works,
	improvements, facilities, plants, equipment, and appliances
	necessary and adequate to:
	[(A)     provide service to the proposed development
	within the district;
	[(B)     accomplish the purposes for which the
	district was created; and
	[(C)     exercise the powers provided by general law
	and this chapter; or
	[(2)     the 20th anniversary of the date the district was
	confirmed].
	SECTION 47.  Section 8399.151, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 8399.151.  ANNEXATION BY MUNICIPALITY. (a)  The
	governing body of a [A] municipality that plans to [may] annex all
	or part of the district first must adopt a resolution of intention
	to annex all or part of the district and transmit that resolution to
	the district and the following districts:
	(1)  Travis County Municipal Utility District No. 3;
	(2)  Travis County Municipal Utility District No. 4;
	(3)  Travis County Municipal Utility District No. 5;
	(4)  Travis County Municipal Utility District No. 6;
	(5)  Travis County Municipal Utility District No. 8;
	(6)  Travis County Municipal Utility District No. 9;
	and
	(7)  Travis County Water Control and Improvement
	District No. 19.
	(b)  On receipt of a resolution described by Subsection (a),
	the district and each of the districts listed in Subsection (a)
	shall call an election to be held on the next uniform election date
	on the question of whether the annexation should be authorized.
	(c)  The municipality may annex the territory described in
	the resolution only if a majority of the total number of voters
	voting in all of the districts' elections vote in favor of
	authorizing the annexation.
	(d)  The municipality seeking annexation shall pay the costs
	of the elections held under this section [on the earlier of:
	[(1)     the installation of 90 percent of all works,
	improvements, facilities, plants, equipment, and appliances
	necessary and adequate to:
	[(A)     provide service to the proposed development
	within the district;
	[(B)     accomplish the purposes for which the
	district was created; and
	[(C)     exercise the powers provided by general law
	and this chapter; or
	[(2)     the 20th anniversary of the date the district was
	confirmed].
	SECTION 48.  Section 8400.151, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 8400.151.  ANNEXATION BY MUNICIPALITY.  (a)  The
	governing body of a [A] municipality that plans to [may] annex all
	or part of the district first must adopt a resolution of intention
	to annex all or part of the district and transmit that resolution to
	the district and the following districts:
	(1)  Travis County Municipal Utility District No. 3;
	(2)  Travis County Municipal Utility District No. 4;
	(3)  Travis County Municipal Utility District No. 5;
	(4)  Travis County Municipal Utility District No. 6;
	(5)  Travis County Municipal Utility District No. 7;
	(6)  Travis County Municipal Utility District No. 9;
	and
	(7)  Travis County Water Control and Improvement
	District No. 19.
	(b)  On receipt of a resolution described by Subsection (a),
	the district and each of the districts listed in Subsection (a)
	shall call an election to be held on the next uniform election date
	on the question of whether the annexation should be authorized.
	(c)  The municipality may annex the territory described in
	the resolution only if a majority of the total number of voters
	voting in all of the districts' elections vote in favor of
	authorizing the annexation.
	(d)  The municipality seeking annexation shall pay the costs
	of the elections held under this section [on the earlier of:
	[(1)     the installation of 90 percent of all works,
	improvements, facilities, plants, equipment, and appliances
	necessary and adequate to:
	[(A)     provide service to the proposed development
	within the district;
	[(B)     accomplish the purposes for which the
	district was created; and
	[(C)     exercise the powers provided by general law
	and this chapter; or
	[(2)     the 20th anniversary of the date the district was
	confirmed].
	SECTION 49.  Section 8401.151, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 8401.151.  ANNEXATION BY MUNICIPALITY.  (a)  The
	governing body of a [A] municipality that plans to [may] annex all
	or part of the district first must adopt a resolution of intention
	to annex all or part of the district and transmit that resolution to
	the district and the following districts:
	(1)  Travis County Municipal Utility District No. 3;
	(2)  Travis County Municipal Utility District No. 4;
	(3)  Travis County Municipal Utility District No. 5;
	(4)  Travis County Municipal Utility District No. 6;
	(5)  Travis County Municipal Utility District No. 7;
	(6)  Travis County Municipal Utility District No. 8;
	and
	(7)  Travis County Water Control and Improvement
	District No. 19.
	(b)  On receipt of a resolution described by Subsection (a),
	the district and each of the districts listed in Subsection (a)
	shall call an election to be held on the next uniform election date
	on the question of whether the annexation should be authorized.
	(c)  The municipality may annex the territory described in
	the resolution only if a majority of the total number of voters
	voting in all of the districts' elections vote in favor of
	authorizing the annexation.
	(d)  The municipality seeking annexation shall pay the costs
	of the elections held under this section [on the earlier of:
	[(1)     the installation of 90 percent of all works,
	improvements, facilities, plants, equipment, and appliances
	necessary and adequate to:
	[(A)     provide service to the proposed development
	within the district;
	[(B)     accomplish the purposes for which the
	district was created; and
	[(C)     exercise the powers provided by general law
	and this chapter; or
	[(2)     the 20th anniversary of the date the district was
	confirmed].
	SECTION 50.  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 51.  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 52.  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 53.  Subtitle I, Title 6, Special District Local
	Laws Code, is amended by adding Chapter 9073 to read as follows:
	CHAPTER 9073. TRAVIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT
	NO. 19; ANNEXATION
	Sec. 9073.001.  DEFINITION.  In this chapter, "district"
	means the Travis County Water Control and Improvement District
	No. 19.
	Sec. 9073.002.  ANNEXATION BY MUNICIPALITY.  (a)  The
	governing body of a municipality that plans to annex all or part of
	the district first must adopt a resolution of intention to annex all
	or part of the district and transmit that resolution to the district
	and the following districts:
	(1)  Travis County Municipal Utility District No. 3;
	(2)  Travis County Municipal Utility District No. 4;
	(3)  Travis County Municipal Utility District No. 5;
	(4)  Travis County Municipal Utility District No. 6;
	(5)  Travis County Municipal Utility District No. 7;
	(6)  Travis County Municipal Utility District No. 8;
	and
	(7)  Travis County Municipal Utility District No. 9.
	(b)  On receipt of a resolution described by Subsection (a),
	the district and each of the districts listed in Subsection (a)
	shall call an election to be held on the next uniform election date
	on the question of whether the annexation should be authorized.
	(c)  The municipality may annex the territory described in
	the resolution only if a majority of the total number of voters
	voting in all of the districts' elections vote in favor of
	authorizing the annexation.
	(d)  The municipality seeking annexation shall pay the costs
	of the elections held under this section.
	SECTION 54.  (a) Sections 43.036, 43.0546, 43.056(d) and
	(h), 43.0565, 43.0567, 43.1025(e) and (g), and 43.906, Local
	Government Code, are repealed.
	(b)  Section 43.056(p), Local Government Code, as amended by
	S.B. 1878, Acts of the 85th Legislature, Regular Session, 2017, is
	repealed.
	(c)  Section 5.701(n)(6), Water Code, is repealed.
	(d)  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.
	(e)  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 Sections 43.056(l) and
	(n), 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 December 1,
	2017.
	SECTION 55.  The changes in law made by this Act apply to the
	annexation of an area subject to a development agreement entered
	into by a municipality with a population of more than 227,000 and
	less than 236,000, according to the 2010 federal decennial census,
	under Section 212.172, Local Government Code, before the effective
	date of this Act that is initiated on or after the expiration date
	provided for in the agreement. The annexation of an area subject to
	the agreement that is initiated before the expiration date of the
	agreement as the result of a termination of the agreement is
	governed by the law in effect on January 1, 2017, and the former law
	is continued in effect for that purpose.
	SECTION 56.  The changes in law made by this Act apply only
	to the 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.
	SECTION 57.  This Act takes effect December 1, 2017.