Bill Text: TX SB6 | 2017 | 85th Legislature 1st Special Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to municipal annexation.

Spectrum: Partisan Bill (Republican 65-1)

Status: (Passed) 2017-08-15 - Effective on . . . . . . . . . . . . . . . [SB6 Detail]

Download: Texas-2017-SB6-Comm_Sub.html
  85S12478 SCL-D
 
  By: Campbell, et al. S.B. No. 6
 
  (Huberty)
 
  Substitute the following for S.B. No. 6:  No.
 
 
 
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:
                     (A)  less than 500,000; or
                     (B)  more than 665,000 and less than 780,000.
               (3)  "Tier 2 county" means a county that is not a tier 1
  county.
               (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. (a)  Notwithstanding any other law and subject to
  Subsection (b), 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.
         (b)  A municipality that proposes to annex an area located in
  an industrial district subject to a contract described by Section
  42.044(c) may initiate the annexation only:
               (1)  on or after the date the contract expires,
  including any period renewing or extending the contract; or
               (2)  as provided by the contract.
         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 annex
  for full or limited purposes any part of the area located within
  five miles of the boundaries of a military base in which an active
  training program is conducted only if the municipality and the
  military base enter into a memorandum of 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 following
  conditions are met, as applicable:
               (1)  the municipality obtains consent to annex the area
  through a petition signed by more than 50 percent of the registered
  voters of the area; and
               (2)  if the registered voters of the area do not own
  more than 50 percent of the land in the area, the petition described
  by Subdivision (1) is signed by more than 50 percent of the owners
  of land in 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 and property owner 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) Except as provided by
  Subsection (a-1), the petition required by Section 43.0681 may be
  signed only by a registered voter of the area proposed to be
  annexed.
         (a-1)  If the registered voters of the area proposed to be
  annexed do not own more than 50 percent of the land in the area, the
  petition required by Section 43.0681 may also be signed by the
  owners of land in the area that are not registered voters.  
  Notwithstanding Subsection (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.
         (a-2)  The petition must clearly indicate that the person is
  signing as a registered voter of the area, an owner of land in the
  area, or both.
         (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
  and property owners 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 Sections
  43.0685(b)-(e), 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 Subsection (s) 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, 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
  Subsection (h), a municipality shall follow the procedures
  established under the strategic partnership agreement for
  full-purpose annexation of an area under this section.
         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.
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