HB 845 - Annexation Reform Act of 2011

• Repeals Parts 2 and 3 of Article 4A of Chapter 160A (involuntary annexation procedures) and creates new Part 7 establishing municipal-initiated annexation procedures with mandatory property owner petition and referendum mechanisms.

• Requires municipalities to prepare detailed service extension plans and conduct public informational meetings and hearings before annexation, with specific provisions for water/sewer service installation at no cost to property owners who opt in.

• Establishes 60% petition threshold whereby property owners of at least 60% of parcels in a proposed annexation area can deny the annexation ordinance, with 130-day signature collection period and county board of elections administration.

• Requires municipalities to provide police, fire, solid waste, and street maintenance services on the effective date of annexation and extend water/sewer lines within 3.5 years, with remedies including mandamus actions and Local Government Commission enforcement.

• Allows low-income distressed areas and certain low-income property owner petitions to be annexed under modified procedures with 75% parcel owner approval, subject to financial feasibility analysis by the municipality.