Amend SB 262 as follows:  on page 1, lines 39 through 47,
strike all of existing Subsection (c) and insert the following new
Subsections (c) and (d):
      "(c)  At the time notice of the municipality's intent to
annex the land within the district is first published in accordance
with Section 43.052 of this Code, the municipality shall proceed to
initiate and complete a report for each developer conducted in
accordance with the format approved by the TNRCC for audits.  In
the event the municipality is unable to complete the report prior
to the effective date of the annexation, the municipality shall
obtain from the district the estimated costs of each project
previously undertaken by a developer which are eligible for
reimbursement.  The amount of such costs, as estimated by the
district, shall be escrowed by the municipality for the benefit of
the persons entitled to receive payment in an insured, interest
bearing account with a financial institution authorized to do
business in the state.  To compensate the developer for the
municipality's use of the infrastructure facilities pending the
determination of the reimbursement amount or federal pre-clearance,
all interest accrued on the escrowed funds shall be paid to the
developer whether or not the annexation is valid.  Upon placement
of the funds in the escrow account, the annexation may become
effective.  In the event a municipality timely escrows all
reimbursable amounts as required by this subsection, and all such
amounts, including interest, are subsequently disbursed to the
developer as required by this section, no penalties or interest
shall accrue during the pendency of the escrow.
      (d)  A delinquent sum incurs a penalty of six percent of the
amount of the sum for the first calendar month it is delinquent
plus one percent for each additional month or portion of a month
the sum remains unpaid.  For an annexation occurring prior to the
effective date of the changes in law made by this Act in amending
Subsection (b), a delinquent sum begins incurring a penalty on the
first day of the eighth month following the month in which the
municipality enacted its annexation ordinance.  For an annexation
occurring after the effective date of this Act, a delinquent sum
begins incurring a penalty on the first day after the date the
municipality enacts its annexation ordinance."