Amend CSSB 1454 in SECTION 1 of the bill by adding a new Section 3 to Article 974d-45, Revised Statutes, to read as follows: Sec. 3. (a) This section applies only to a tract of contiguous territory: (1) that is purportedly annexed on or after December 1, 1996, by a municipality with a population of more than 1.5 million; and (2) in which an election approving the annexation has not been held. (b) The annexation of territory to which this section applies is validated, but only if a majority of the voters residing in the territory voting at an election held for that purpose approve the validation of the annexation. (c) The county in which the tract is located shall hold an election on the validation of the annexation of the tract by the municipality. The county judge shall order the election to be held on the first uniform election date that occurs at least 45 days after the effective date of this section. (d) Only a registered voter residing in the tract may vote in the election. The municipality that purportedly annexed the tract shall pay for the cost of holding the election. (e) At the election the ballots shall be prepared to permit voting for or against the following proposition: "The validation of the annexation of (name of tract) by the City of (name of city)." The county shall designate the name of the tract based on a name commonly used in the region to identify the tract. (f) If a majority of the votes cast at the election favor the proposition, the annexation is validated, the tract remains a part of the municipality, and another election regarding the validation of the annexation of the tract may not be held under this section. (g) If less than a majority of the votes cast at the election favor the proposition, the annexation is invalidated and any municipal utility district or other special district that served the tract on the date of the attempted annexation and that was abolished as a result of the annexation is reestablished on the date of the canvass of the election. The officers of a reestablished district who were serving on the date the tract was attempted to be annexed are the officers of the reestablished district. If an officer's term has expired, the officer shall serve until the officer's successor is qualified, and a successor shall be elected or appointed in a timely manner in accordance with the law governing the district. (h) The municipality may not reannex any portion of a tract the annexation of which is invalidated under this section unless the reannexation is approved at an election conducted by the municipality in the area to be annexed. The reannexation may not occur unless a majority of the votes cast in the area approve the reannexation. (i) Not later than the 10th day after the date an annexation is invalidated under this section, an arbitration panel shall be appointed. The panel is composed of: (1) one person chosen by the municipality; (2) one person chosen by the affirmative vote of a representative of each municipal utility or other special district serving the tract that was the subject of the election; and (3) one person chosen jointly by the persons chosen under Subdivisions (1) and (2), or if an agreement cannot be reached on a choice, one person appointed by the county judge of the county in which the tract is located. (j) The arbitration panel shall conduct an accounting of all expenses the municipality and each municipal utility district and other special district incurred during and immediately after the period of purported annexation, including an accounting of the assets and obligations of the special districts at the time of the purported annexation and the capital expenditures of the municipality on behalf of the tract during the time the tract was purportedly a part of the municipality. Not later than the 120th day after the date of the election, the arbitration panel shall render a decision on whether the municipality or special districts are entitled to compensation from the other. (k) A decision of the arbitration panel is reviewable in the district court of the county under the substantial evidence rule. If the arbitrators are unable to reach a majority decision, the municipality or an affected district may file an original action for an accounting under Subsection (j) in the district court of the county in which the tract is located. (l) Except as provided by this section, Chapter 171, Civil Practice and Remedies Code, applies to an arbitration under this section. (m) In this section, a tract of land is considered to be located in the county in which a majority of the area of the tract is located. (n) If the tract is located in more than one county the county judge of each county in which the tract is located shall, under Subsection (c), call an election to be held in the part of the tract that is located in the county in which the county judge serves. (o) If an election is called under Subsection (n) in more than one county, the county judge of the county in which a majority of the area of the tract is located shall, after the election returns are canvassed in each county, combine the election returns to determine if the annexation of the tract is validated in the tract as a whole.