By Bosse                                        H.B. No. 1438

      75R5533 DRH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the annexation of industrial areas by certain

 1-3     municipalities.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter G, Chapter 43, Local Government Code,

 1-6     is amended by adding Section 43.148 to read as follows:

 1-7           Sec. 43.148.  DISANNEXATION OF INDUSTRIAL PROPERTY ANNEXED BY

 1-8     CERTAIN MUNICIPALITIES.  (a)  This section applies only to an

 1-9     industrial property annexed after December 31, 1996, by a

1-10     municipality with a population of more than 1,500,000.

1-11           (b)  The governing body of a municipality on the request of

1-12     the owner of the property shall disannex an industrial property if

1-13     at the end of the second fiscal year of the municipality that

1-14     begins after the date the industrial property was annexed the

1-15     municipality has failed to spend on municipal services for that

1-16     property an amount equal to at least 35 percent of the municipal ad

1-17     valorem taxes collected from that property during the two fiscal

1-18     years.

1-19           (c)  Not later than the 60th day after the end of that second

1-20     fiscal year, the governing body of the municipality shall:

1-21                 (1)  by ordinance discontinue as a part of the

1-22     municipality industrial property if required by Subsection (b); and

1-23                 (2)  refund to the owners of the disannexed industrial

1-24     property an amount equal to the difference between the amount of ad

 2-1     valorem taxes paid to the municipality on the property and the cost

 2-2     of the municipal services provided to the property.

 2-3           (d)  A refund made under Subsection (c)(2) shall be used for

 2-4     programs to benefit the general welfare of persons who are employed

 2-5     at the industrial property.

 2-6           (e)  In this section, "industrial property" means any part of

 2-7     a parcel of real property, according to the deed records of the

 2-8     county, on which are located improvements that are used primarily

 2-9     for manufacturing or processing.  The term does not include real

2-10     property containing improvements that are used primarily for

2-11     residential, agricultural, or retail purposes or for warehousing

2-12     that is not incidental to the manufacturing or processing on the

2-13     property.

2-14           SECTION 2.  The importance of this legislation and the

2-15     crowded condition of the calendars in both houses create an

2-16     emergency and an imperative public necessity that the

2-17     constitutional rule requiring bills to be read on three several

2-18     days in each house be suspended, and this rule is hereby suspended.