H.B. 531 Summary

• Creates a uniform involuntary annexation process for all municipalities by repealing Part 2 of Article 4A (applicable only to cities with 5,000+ population) and consolidating all involuntary annexation procedures under Part 3.

• Adds new income-based annexation pathways allowing municipalities to annex areas where 51% or more of households have incomes at or below 200% of federal poverty thresholds with signatures from 75% of property owners or 75% of resident households instead of requiring 100% consent.

• Requires county board of commissioners approval before a municipality annexes property in a different county, with public hearing required at least 30 days before approval.

• Establishes a voter referendum process allowing registered voters in proposed annexation areas to petition for a referendum on involuntary annexation, with a required 5% or 500 signatures (whichever is less) to trigger a vote.

• Extends the timeframe for municipalities to complete water and sewer line extensions from two years to three years and modifies service delivery requirements to focus on "meaningful services" including central water/sewer, police protection, fire protection, and at least two additional services.