TITLE: CONCERNING THE PRIORITY OF MUNICIPAL INCORPORATION PROCEEDINGS COMMENCED FOR AN AREA CONTAINING A SPECIFIED NUMBER OF INHABITANTS OVER MUNICIPAL ANNEXATION PROCEEDINGS AFFECTING ALL OR ANY PART OF THE SAME AREA.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: Upon the signature of the Governor.
Appropriation Summary for FY 1999-2000: None
Local Government Impact: Changes the priority of municipal annexation and incorporation proceedings for certain areas.

This bill revises statutory provisions for municipal government regarding priority of annexation proceedings by allowing an incorporation petition to be filed if the area to be incorporated contains more than 75,000 inhabitants. The bill authorizes certain municipal incorporation petitions to be filed if the petition is filed prior to the expiration of the 60-day review period of the annexation or before the date a judicial declaration or final appellate judgement is entered in the review proceeding.

The provisions of the bill apply to any annexations petition or petition for incorporation that is pending on or after the effective date, and to any annexation ordinance that is subject to judicial review on or after the effective date, whether or not the review is sought after the effective date.

Under current law, municipal annexation proceedings are given first priority when a governing body receives a petition for annexation or a petition for an election on the question of annexation. No other proceedings are to commence for the annexation or incorporation of the same area until the question of annexation has been fully determined by the voters.

This bill gives incorporation precedence over annexation proceedings if the area to be incorporated contains more than 75,000 inhabitants. In the event a court enters an order approving the incorporation election, the annexation ordinance is to be considered void.

This bill will not affect current municipal revenue or expenditures, but changes the priority of annexation and incorporation proceedings for certain areas which will affect future revenue and expenditures, subject to a vote of the people. Therefore, this bill is assessed as having a conditional local fiscal impact.

This fiscal note would imply no new state appropriations are required for FY 1999-2000.