S.B. No. 2965
 
 
 
 
AN ACT
  relating to territory in an emergency services district that is
  annexed by a municipality.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 775.022, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsection (a-1) to
  read as follows:
         (a)  If a municipality completes all other procedures
  necessary to annex territory in a district, including the
  preparation of a service plan if required by Section 43.056, Local
  Government Code, [and if] the municipality intends to remove the
  territory from the district, and the municipality is capable at the
  time of the removal of being [be] the sole provider of emergency
  services to the territory by the use of municipal personnel or by
  some method other than by use of the district, the municipality
  shall send written notice of those facts, and the completed service
  plan, if applicable, to the board not later than the 30th day after
  completing the necessary procedures.  The municipality must send
  the notice to the secretary of the board by certified mail, return
  receipt requested. The territory remains part of the district and
  does not become part of the municipality until the secretary of the
  board receives the notice and the board by resolution disannexes
  the territory from the district.  The board must send a copy of the
  resolution to the municipality by certified mail, return receipt
  requested, not later than the 30th day after the date on which the
  board adopts the resolution. If the governing body of the
  municipality disagrees with the board's determination that the
  municipal services will not meet or exceed the level of service
  provided by the district, the municipality may adopt a resolution
  stating the grounds for the disagreement and requesting arbitration
  in the manner provided by Section 775.0221.  If the board determines
  that the municipal services planned to be provided in the territory
  will not meet or exceed the level of service provided by the
  district in the territory, the board shall adopt that determination
  in a resolution and may not by resolution disannex the territory
  from the district.  If the board determines that municipal services
  planned to be provided in the territory will meet or exceed the
  level of service provided by the district in the territory at the
  time of disannexation [On receipt of the notice], the board shall by
  resolution disannex the territory from the district, notify the
  appraisal district to [immediately] change its records to show that
  the territory has been disannexed from the district, and [shall]
  cease to provide further services to the residents of that
  territory. This subsection does not require a municipality to
  remove from a district territory the municipality has annexed.  For
  the purposes of this subsection, "level of service" for fire and
  emergency medical protection means the location, deployment, and
  response time of fire suppression or medical resources originally
  dispatched to a structural or wildland fire or emergency medical
  incident.
         (a-1)  A board is considered to have approved a disannexation
  of territory under Subsection (a) if the board fails to provide to
  the municipality a resolution disapproving or approving the
  disannexation before the 30th day after the date the board receives
  the notice under Subsection (a) from the municipality.
         SECTION 2.  Section 775.0221, Health and Safety Code, is
  amended by adding Subsection (a-1) and amending Subsection (b) to
  read as follows:
         (a-1)  If the governing body of a municipality adopts a
  resolution under Section 775.022 disputing the determination of the
  board of a district that municipal services will not meet or exceed
  the level of service provided by the district and requesting
  arbitration, the municipality and the district shall resolve the
  dispute using binding arbitration. 
         (b)  A request for binding arbitration must be in writing and
  may not be made before the 60th day after the date the municipality
  receives, as applicable: 
               (1)  a resolution from the district under Section
  775.022 determining that municipal services will not meet or exceed
  the level of service provided by the district; or
               (2)  notice from the district regarding the amount of
  compensation required under Section 775.022.
         SECTION 3.  This Act takes effect September 1, 2025.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2965 passed the Senate on
  May 9, 2025, by the following vote: Yeas 30, Nays 1; and that the
  Senate concurred in House amendment on May 30, 2025, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2965 passed the House, with
  amendment, on May 28, 2025, by the following vote: Yeas 124,
  Nays 14, three present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor