Senate Bill 557 Summary

• Establishes a new process for municipalities to annex "enclaves"—unincorporated areas completely surrounded by one or more incorporated municipalities, with boundaries that may include state/county lines, military installations, parks, water bodies, railroads, or farms.

• Enclaves must be less than 60 acres, cannot be bona fide farms, and must have met enclave qualifications for at least three years before annexation can occur.

• Requires municipalities to provide all services including water and sewer on the same basis as other municipal areas by the effective date of annexation, with a report detailing service availability submitted before a public hearing.

• Establishes a procedure requiring a municipal declaration of intent, public hearing (60-90 days after declaration), and interlocal agreement between the municipality and affected county or counties, with annexation effective June 30 following agreement recording.

• Permits appeal of annexation decisions within 60 days and requires municipalities to report service delivery compliance to the Local Government Commission within 30 days; failure to timely provide water or sewer services prohibits additional annexations until services are provided.