By:  Galloway, Lindsay                                 S.B. No. 313

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the disannexation of certain areas annexed on or after

 1-2     December 1, 1996, by certain municipalities.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter G, Chapter 43, Local Government Code,

 1-5     is amended by adding Section 43.148 to read as follows:

 1-6           Sec. 43.148.  DISANNEXATION OF CERTAIN AREAS.  (a)  This

 1-7     section applies only to a tract of contiguous territory:

 1-8                 (1)  that is annexed on or after December 1, 1996, by a

 1-9     municipality with a population of more than 1.5 million; and

1-10                 (2)  in which an election approving the annexation has

1-11     not been held.

1-12           (b)  The county in which the tract is located shall hold an

1-13     election on disannexation of the tract from the municipality if the

1-14     county clerk receives a petition asking for an election signed by

1-15     at least 10 percent of the registered voters who reside in the

1-16     tract.  The county clerk shall determine the validity of the

1-17     petition under Chapter 277, Election Code, not later than the 30th

1-18     day after the date the petition is received.  A petition to hold an

1-19     election under this section may not be submitted after the second

1-20     anniversary of the date of the annexation of the tract.

1-21           (c)  If the county clerk determines that a petition filed

1-22     under Subsection (b) is valid or if the county clerk fails to make

1-23     a determination within the time prescribed by that subsection, the

 2-1     county judge shall order the election to be held on the first

 2-2     uniform election date that occurs at least 45 days after the

 2-3     earlier of the date:

 2-4                 (1)  the county clerk determines the petition is valid;

 2-5     or

 2-6                 (2)  the time for making a determination under

 2-7     Subsection (b) expires.

 2-8           (d)  Only a registered voter residing in the tract may vote

 2-9     in the election.  The municipality that annexed the tract shall pay

2-10     for the cost of holding the election.

2-11           (e)  At the election the ballots shall be prepared to permit

2-12     voting for or against the following proposition:  "The

2-13     disannexation of (name of tract) from the City of (name of city)

2-14     and the reestablishment of any municipal utility district or other

2-15     special districts serving (name of tract)."  The county shall

2-16     designate the name of the tract based on a name commonly used in

2-17     the region to identify the tract.

2-18           (f)  If a majority of the votes cast at the election favor

2-19     the proposition, the tract is disannexed from the municipality and

2-20     any municipal utility district or other special district that

2-21     served the tract on the date the tract was annexed and that was

2-22     abolished as a result of the annexation is reestablished on the

2-23     date of the canvass of the election.  The officers of a

2-24     reestablished district who were serving on the date the tract was

2-25     annexed are the officers of the reestablished district.  If an

 3-1     officer's term has expired, the officer shall serve until the

 3-2     officer's successor is qualified, and a successor shall be elected

 3-3     or appointed in a timely manner in accordance with the law

 3-4     governing the district.

 3-5           (g)  If less than a majority of the votes cast at the

 3-6     election favor the proposition, the tract remains a part of the

 3-7     municipality and another election to disannex the tract may not be

 3-8     held under this section.

 3-9           (h)  The municipality may not reannex any portion of a tract

3-10     that is disannexed under this section unless the reannexation is

3-11     approved at an election conducted by the municipality in the area

3-12     to be annexed.  The reannexation may not occur unless a majority of

3-13     the votes cast in the area approve the reannexation.

3-14           (i)  Not later than the 10th day after the date a

3-15     disannexation occurs under this section, an arbitration panel shall

3-16     be appointed.  The panel is composed of:

3-17                 (1)  one person chosen by the municipality;

3-18                 (2)  one person chosen by the affirmative vote of a

3-19     representative of each municipal utility or other special district

3-20     serving the disannexed tract; and

3-21                 (3)  one person chosen jointly by the persons chosen

3-22     under Subdivisions (1) and (2), or if an agreement cannot be

3-23     reached on a choice, one person appointed by the county judge of

3-24     the county in which the tract is located.

3-25           (j)  The arbitration panel shall conduct an accounting of all

 4-1     expenses the municipality and each municipal utility district and

 4-2     other special district incurred during the annexation and

 4-3     disannexation process, including an accounting of the assets and

 4-4     obligations of the special districts at the time of the annexation

 4-5     and the capital expenditures of the municipality on behalf of the

 4-6     disannexed tract during the time the tract was a part of the

 4-7     municipality.  Not later than the 120th day after the date of

 4-8     disannexation, the arbitration panel shall render a decision on

 4-9     whether the municipality or special districts are entitled to

4-10     compensation from the other.

4-11           (k)  A decision of the arbitration panel is reviewable in the

4-12     district court of the county under the substantial evidence rule.

4-13     If the arbitrators are unable to reach a majority decision, the

4-14     municipality or an affected district may file an original action

4-15     for an accounting under Subsection (j) in the district court of the

4-16     county in which the tract is located.

4-17           (l)  Except as provided by this section, Chapter 171, Civil

4-18     Practice and Remedies Code, applies to an arbitration under this

4-19     section.

4-20           (m)  In this section, a tract of land is considered to be

4-21     located in the county in which a majority of the area of the tract

4-22     is located.

4-23           (n)  If the tract is located in more than one county:

4-24                 (1)  the county clerk of the county in which a majority

4-25     of the area of the tract is located shall conduct the verification

 5-1     procedure described by Subsection (b); and

 5-2                 (2)  the county judge of each county in which the tract

 5-3     is located shall, under Subsection (c), call an election to be held

 5-4     in the part of the tract that is located in the county in which the

 5-5     county judge serves.

 5-6           (o)  If an election is called under Subsection (n)(2) in more

 5-7     than one county, the county judge of the county in which a majority

 5-8     of the area of the tract is located shall, after the election

 5-9     returns are canvassed in each county, combine the election returns

5-10     to determine if the disannexation is approved in the tract as a

5-11     whole.

5-12           SECTION 2.  The importance of this legislation and the

5-13     crowded condition of the calendars in both houses create an

5-14     emergency and an imperative public necessity that the

5-15     constitutional rule requiring bills to be read on three several

5-16     days in each house be suspended, and this rule is hereby suspended,

5-17     and that this Act take effect and be in force from and after its

5-18     passage, and it is so enacted.