PRESENTER: Presenter
Christopher J. Looney, AICP, Planning and Development Services Director
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SUBJECT: Title
Presentation and overview of SB 2038, a new state statute regarding ETJ releases.
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DEPARTMENT: Planning & Development Services
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
Chapter 42 of the Texas Local Government Code (LGC) establishes and outlines the rules for ETJ or Extraterritorial Jurisdiction. ETJ is that territory that extends into the unincorporated area beyond a city limits where certain limited city standards can be applied (mainly subdivision platting rules). The ETJ was intended to be the area a city could annex into, therefore the rules that were allowed to be extended essentially prepared the area so that when/if annexed, development was not haphazard or disjointed. The stated policy in LGC 42.001 is “to promote and protect the general health, safety, and welfare of persons residing in and adjacent to the municipalities.”
Size
The extent of a city’s ETJ is based on its population:
• Fewer than 5,000 inhabitants: ½ mile
• 5,000 - 24,999: 1 mile
• 25,000 - 49,999: 2 miles
• 50,000 - 99,999: 3.5 miles
• 100,000 or more: 5 miles
Notes and Rules
• The ETJ of one city cannot extend into the ETJ of another city, but cities may exchange ETJ.
• Property must lie within a city’s ETJ to be considered for annexation.
• If an area within a city’s ETJ wants to incorporate and become their own city, they must seek permission of the city within whose ETJ they lie.
• Any property owner/developer wishing to establish a special district (MUD, PID, WID) within a city’s ETJ must obtain the respective city’s consent.
• ETJ residents do not have to obtain city building permits or comply with city-adopted building codes; Texas counties do administer some building code rules through their County Fire Marshal.
• There is no zoning in the unincorporated areas of counties, including the ETJ.
• ETJ residents do not pay city taxes.
• ETJ residents cannot vote in city elections.
• New Braunfels ETJ residents are eligible to obtain a CoNB library card.
• New Braunfels’ subdivision platting rules and procedures apply in the Comal County portion of our ETJ, but not in the Guadalupe County portion per interlocal agreements with each county.
• Outside the processing of subdivision plats, the applicable county provides services within the ETJ and other unincorporated areas of the county including police protection, EMS, animal control/welfare, and code compliance (unless there are cooperative agreements between the cities and counties).
ISSUE:
Since the mid-1990s, the Texas Legislature has been making changes to annexation law. Over the decades, state laws have been added to:
• Mandate the offering of non-annexation agreements for land remaining in agriculture use;
• Limit the amount of territory that can be annexed in any single year;
• Require 3-year annexation plans with corresponding negotiated service agreements with property owners;
• Increase extensive public hearing requirements;
• Limit dimensions of territory annexed (preventing narrow “finger annexations”);
• Require an election of the property owners within the area proposed for annexation.
In the most recent Session, the Texas Legislature passed and the Governor enacted a new law, SB 2038, allowing property owners to more easily remove themselves from a city’s ETJ. If a property owner submits a request to be removed, the city must immediately remove them from the ETJ, without a public hearing or action by the City Council.
Also previously, when territory was annexed into a city the ETJ automatically extended outward accordingly. With SB 2038, such ETJ expansion is now no longer allowed (unless the property owners request to be added to the ETJ).
As of March 11, 2024, staff has processed and approved 16 ETJ releases totaling 2,960 acres. These tracts are no longer subject to the city’s subdivision platting ordinance; they now fall under their respective county platting rules and procedures. If the owners of these tracts desire to establish special districts or to incorporate, they will no longer need to seek permission from the City of New Braunfels. Finally, these tracts are also ineligible for future annexation, unless the property owners request the City Council consider placing them back in the ETJ.
FISCAL IMPACT:
A fiscal impact analysis has not been undertaken at this time.
Resource Links:
SB 2038
https://capitol.texas.gov/tlodocs/88R/billtext/pdf/SB02038F.pdf#navpanes=0 <https://capitol.texas.gov/tlodocs/88R/billtext/pdf/SB02038F.pdf>
New Braunfels Planning Reference Map -
<https://newbraunfels.maps.arcgis.com/apps/webappviewer/index.html?id=65adb598a5be4171a5bbc1407a9bd30f>