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."