Amendments	Fiscal Memos
HA0422	Amendment 1-0 to HB0590
HA0658	Amendment 2-0 to HB0590
HA0692	Amendment 3-0 to HB0590
HA0693	Amendment 4-0 to HB0590
HA0700	Amendment 5-0 to HB0590

	Amendments	Fiscal Memos
SA0920	Amendment 1-1 to SB0869

NOTE: Each fiscal memorandum applies only to the amendment(s) identified in the memorandum. The fiscal memorandum must be matched to any amendments that have been adopted.

Fiscal Summary

Increase Local Expenditures - Exceeds $1,000* Other Fiscal Impact - Due to several unknown factors, any change in local government property tax revenue cannot be quantified.

Bill Summary

This bill requires that the annexation of territory by a municipality be subject to approval by a majority of the persons residing in the territory that will be annexed, as described below.

Generally, under present law, a municipality may extend its corporate limits by annexation of adjoining territories, by ordinance, when petitioned by a majority of the residents and property owners of the affected territory, or upon its own initiative when it appears that the prosperity of the municipality and territory will be materially retarded and the safety and welfare of the inhabitants and property endangered. The ordinance may not become operative until 30 days after final passage thereof. During this 30-day period, the municipality must notify the county mayor in whose county the territory being annexed is located that such territory is being annexed by the municipality.

However, in Knox County, if the proposal to extend the corporate limits by the annexation of adjoining territory is proposed by the municipality upon its own initiative by ordinance, then the ordinance may not become operative until an election is held at the expense of the proposing municipality for approval or disapproval of such annexation by the qualified voters who reside in the territory proposed for annexation. The county election commission must hold such an election between 45 and 60 days after the receipt of a certified copy of such ordinance, and a majority vote of those voting in the election will determine whether the ordinance is to be operative. If the vote is for the ordinance, the ordinance becomes operative 30 days after the date that the county election commission makes its official canvass of the election returns, except that such ordinance may not become operative before the expiration of 120 days following the final passage of the annexation ordinance.

This bill revises when annexation ordinances would become operative. This bill specifies that the ordinance would not become operative "until approval of such annexation by a majority of qualified voters who reside in the territory proposed for annexation," instead of "until 30 days after final passage thereof," and requires that the municipality give 90 days' notice to the residents of the territory proposed for annexation by mailing the proposed ordinance to the affected residents. Additionally, this bill specifies that the provisions described above regarding Knox County would apply throughout the state when the annexation is proposed by the municipality upon its own initiative, except that such election would be held "at the next regularly scheduled election for the county," instead of "between 45 and 60 days after the receipt of a certified copy of the ordinance."

ON FEBRUARY 24, 2014, THE HOUSE ADOPTED AMENDMENTS #1, 2 AND 4 AND PASSED HOUSE BILL 590, AS AMENDED.

AMENDMENT #1 clarifies that annexation resulting from a petition by a majority of the residents and property owners of the affected territory, will not become operative until 30 days after final passage of the ordinance for annexation. During this 30-day period, the municipality must notify the county mayor in whose county the territory being annexed is located that territory located in the unincorporated part of the county is being annexed by the municipality. This amendment further clarifies that when a municipality on its own initiative proposes annexation, such annexation will not become operative until approved by a majority of the qualified voters who reside in the territory proposed for annexation. This amendment also increases the amount of notice required from 90 to 180 days when annexation is proposed by the municipality.

AMENDMENT #2 removes the requirement that the municipality give 180 days' notice to the residents of the territory proposed for annexation by mailing the proposed ordinance to the affected residents.

AMENDMENT #4 specifies that counties with a metropolitan form of government (Moore, Trousdale and Davidson) may expand the area of their urban services district using any method authorized by their charters, including methods that were applicable at the time the charter or amendment was approved.