Relating to disannexation of certain areas of a municipality for failure to provide services.
ModeratePlan for compliance
Low Cost
Effective:2025-09-01
Enforcing Agencies
District Courts (County level) • Municipal Governing Bodies (Petition recipients)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025
Compliance Deadline:Immediate. You must audit Municipal Service Plans now to prepare petitions for filing on or after the effective date.
Agency Rulemaking: No state agency rulemaking is required. However, District Courts will establish case law regarding "good faith" performance standards and "navigable waterway" definitions starting late 2025.
Immediate Action Plan
1.Audit Service Plans: Compare promised utility delivery dates in your annexation agreement against actual infrastructure status immediately.
2.Verify Zoning: Confirm your property is not located in a Section 42.044 Industrial District; these are exempt from this law.
3.Draft Notices: Prepare the Public Notice of Petition for posting (10 days) and newspaper publication (15 days prior to circulation).
4.Secure Alternative Services: Negotiate conditional agreements with private utility providers to replace city services upon exit.
5.File Petition: Submit the completed petition to the Municipal Secretary immediately after the signature collection period closes.
Operational Changes Required
Contracts
Development Agreements (Chapter 43): Review all agreements immediately. A breach of the service schedule is now explicit grounds for disannexation.
Lender Covenants: Review financing agreements. Disannexation may alter zoning status or police/fire coverage, potentially triggering default clauses in loan covenants requiring municipal jurisdiction.
Utility Vendor Contracts: Prepare contingency contracts with MUDs, private haulers, or independent utility providers to ensure business continuity immediately upon exiting the city limits.
Hiring/Training
Facilities Management: Staff must certify the *absence* of municipal water/wastewater connections for properties utilizing the "navigable waterway" provision.
Legal Teams: Counsel must master the specific pre-litigation sequence (Notice -> Publication -> Petition -> Suit) to prevent dismissal on procedural grounds.
Reporting & Record-Keeping
Petition Documentation: You must secure sworn affidavits from the newspaper publisher and the individual who physically posted public notices. These must be attached to the petition submitted to the Municipal Secretary.
Ownership Verification: Ensure signatories on the petition match current deed and tax records exactly to satisfy the "majority of property owners" requirement.
Fees & Costs
Litigation Recovery: The statute mandates the award of attorney's fees to the petitioner if the court rules against the municipality.
Tax Refunds: Businesses disannexing under the "navigable waterway" provision are statutorily barred from requesting refunds for past taxes or fees paid.
Strategic Ambiguities & Considerations
"Majority of Property Owners": The statute does not specify if the "majority" is calculated by headcount, acreage, or assessed value. In mixed-use areas, small lot owners could theoretically outvote large industrial tract owners. *Strategy: Consolidate support across all ownership types.*
"Good Faith" Effort: Courts must determine if a municipality failed to provide services in "good faith." This subjective standard will be the primary defense used by cities to delay disannexation.
Navigable Waterway Definitions: Municipalities may litigate whether specific adjacent water bodies meet the Natural Resources Code definitions to block the automatic disannexation pathway.
Need Help Understanding Implementation?
Our government affairs experts can walk you through this bill's specific impact on your operations.
Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
In 2017, the 85th Legislature passed S.B. 6 during the first special session. S.B. 6 ended forced annexation, the practice in which cities annexed properties without approval by property owners. This was a problem because cities were acting without regard to the citizens' needs by annexing areas to expand their taxable jurisdiction, but not providing city services in return.
Even so, there remain areas of the state where cities assess property taxes but do not deliver city services.
For limited purpose jurisdictions, a city's ordinances and regulations pertaining to land development and the environment, and sometimes health and safety, are extended. Traditionally, a city collects no taxes in limited purpose areas, but thus does not provide municipal services, such as police protection.
This bill builds upon previous annexation reforms to also ensure that a city cannot expand its taxing area into limited purpose jurisdiction areas without a plan to begin to deliver full city services to the limited purpose jurisdiction.
As proposed, S.B. 1844 amends current law relating to disannexation of certain areas of a municipality for failure to provide services.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 43.141(a), (b), and (f), Local Government Code, as follows:
(a) Authorizes a majority of the qualified voters of an area, rather than an annexed area, to 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 in certain circumstances, including, notwithstanding Section 43.0505 (Applicability), if the area did not become part of the municipality in compliance with Subchapter C (Limitations and Requirements Regarding Annexations Exempted from Consent Annexation Procedures). Makes nonsubstantive changes.
(b) Requires that a case requesting that an area be disannexed, on the filing of an answer by the governing body, and on application of either party, be advanced and heard without further delay in accordance with rules for expedited actions under the Texas Rules of Civil Procedure. Requires the district court to enter an order disannexing the area and award attorney's fees to the signers of the petition if the court finds that a valid petition was filed with the municipality and that the municipality failed to take certain actions, including providing any of the services described by Section 43.056(b) (relating to requirements for a certain service plan) to the area, regardless of whether the area was annexed, if any of those services are provided to other areas in the municipality. Makes nonsubstantive changes.
(f) Requires that notice of a petition, for an area annexed under Chapter 43 (Municipal Annexation), before the petition is circulated among the voters, be given by posting a copy of the petition for 10 days in three public places in the area, rather than the annexed area, and by publishing a copy of the petition once in a newspaper of general circulation serving the area before the 15th day before the date the petition is first circulated.
SECTION 2. Effective date: upon passage or September 1, 2025.
SB1844 empowers property owners to force disannexation from municipalities that fail to provide promised utilities or services, effective September 1, 2025. This legislation shifts standing from voters to owners, mandates expedited court proceedings, and requires the award of attorney’s fees to successful petitioners, creating a viable, low-risk pathway for businesses to exit non-compliant municipal jurisdictions. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: Immediate.
Q
Who authored SB1844?
SB1844 was authored by Texas Senator Angela Paxton during the Regular Session.
Q
When was SB1844 signed into law?
SB1844 was signed into law by Governor Greg Abbott on May 28, 2025.
Q
Which agencies enforce SB1844?
SB1844 is enforced by District Courts (County level) and Municipal Governing Bodies (Petition recipients).
Q
How urgent is compliance with SB1844?
The compliance urgency for SB1844 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of SB1844?
The cost impact of SB1844 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does SB1844 address?
SB1844 addresses topics including city government, city government--annexation, special districts & authorities, special districts & authorities--navigation & ports and utilities.
Legislative data provided by LegiScanLast updated: November 25, 2025
Need Strategic Guidance on This Bill?
Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.