Amend CSHB 485 by adding the following appropriately numbered
section and by renumbering the remaining sections as apporpriate:
      SECTION     . Subchapter A, Chapter 51, Local Government
Code, is amended by adding Section 51.004 to read as follows:
      Sec. 51.004. VALIDATION OF CERTAIN ANNEXATIONS. (a) This
section applies only to a tract of contiguous territory:
            (1)  that is purportedly annexed on or after December
1, 1997, by a municipality with a population of more than 1.6
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 ir a majority of the voters residing
in the 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 and any municipal
utility district or other special district that served the traction
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 affirmation 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 be 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.
      (1)  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 (e), 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 to determine if the annexation of the tract is validated in
the tract as a whole.