By Wilson                                             H.B. No. 3745
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to disannexation of areas annexed 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 CERTAIN AREAS.  (a)  This
 1-8     section applies to territory that has been annexed by a
 1-9     municipality with a population of more than 1.6 million and in
1-10     which an election approving the annexation has not been held,
1-11     regardless of when the annexation occurred.
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 fourth
1-20     anniversary of the date of the annexation of the tract.
1-21           (c)  If the county clerk determines that a petition filed
 2-1     under Subsection (b) is valid or if the county clerk fails to make
 2-2     a determination within the time prescribed by that subsection, the
 2-3     county judge shall order the election to be held on the first
 2-4     uniform election date that occurs at least 45 days after the
 2-5     earlier of the date:
 2-6                 (1)  the county clerk determines the petition is valid;
 2-7     or
 2-8                 (2)  the time for making a determination under
 2-9     Subsection (b) expires.
2-10           (d)  Only a registered voter residing in the tract may vote
2-11     in the election.  The municipality that annexed the tract shall pay
2-12     for the cost of holding the election.
2-13           (e)  At the election the ballots shall be prepared to permit
2-14     voting for or against the following proposition:  "The
2-15     disannexation of (name of tract) from the City of (name of city)
2-16     and the reestablishment of any municipal utility district or other
2-17     special districts serving (name of tract)."  The county shall
2-18     designate the name of the tract based on a name commonly used in
2-19     the region to identify the tract.
2-20           (f)  If a majority of the votes cast at the election favor
2-21     the proposition, the tract is disannexed from the municipality and
2-22     any municipal utility district or other special district that
2-23     served the tract on the date the tract was annexed and that was
2-24     abolished as a result of the annexation is reestablished on the
2-25     date of the canvass of the election.  The officers of a
 3-1     reestablished district who were serving on the date the tract was
 3-2     annexed are the officers of the reestablished district.  If an
 3-3     officer's term has expired, the officer shall serve until the
 3-4     officer's successor is qualified, and a successor shall be elected
 3-5     or appointed in a timely manner in accordance with the law
 3-6     governing the district.
 3-7           (g)  If less than a majority of the votes cast at the
 3-8     election favor the proposition, the tract remains a part of the
 3-9     municipality and another election to disannex the tract may not be
3-10     held under this section.
3-11           (h)  The municipality may not reannex any portion of a tract
3-12     that is disannexed under this section unless the reannexation is
3-13     approved at an election conducted by the municipality in the area
3-14     to be annexed.  The reannexation may not occur unless a majority of
3-15     the votes cast in the area approve the reannexation.
3-16           (i)  Not later than the 10th day after the date a
3-17     disannexation occurs under this section, an arbitration panel shall
3-18     be appointed.  The panel is composed of:
3-19                 (1)  one person chosen by the municipality;
3-20                 (2)  one person chosen by the affirmative vote of a
3-21     representative of each municipal utility or other special district
3-22     serving the disannexed tract; and
3-23                 (3)  one person chosen jointly by the persons chosen
3-24     under Subdivisions (1) and (2), or if an agreement cannot be
3-25     reached on a choice, one person appointed by the county judge of
 4-1     the county in which the tract is located.
 4-2           (j)  The arbitration panel shall conduct an accounting of all
 4-3     expenses the municipality and each municipal utility district and
 4-4     other special district incurred during the annexation and
 4-5     disannexation process, including an accounting of the assets and
 4-6     obligations of the special districts at the time of the annexation
 4-7     and the capital expenditures of the municipality on behalf of the
 4-8     disannexed tract during the time the tract was a part of the
 4-9     municipality.  Not later than the 120th day after the date of
4-10     disannexation, the arbitration panel shall render a decision on
4-11     whether the municipality or special districts are entitled to
4-12     compensation from the other.
4-13           (k)  A decision of the arbitration panel is reviewable in the
4-14     district court of the county under the substantial evidence rule.
4-15     If the arbitrators are unable to reach a majority decision, the
4-16     municipality or an affected district may file an original action
4-17     for an accounting under Subsection (j) in the district court of the
4-18     county in which the tract is located.
4-19           (l)  Except as provided by this section, Chapter 171, Civil
4-20     Practice and Remedies Code, applies to an arbitration under this
4-21     section.
4-22           (m)  In this section, a tract of land is considered to be
4-23     located in the county in which a majority of the area of the tract
4-24     is located.
4-25           (n)  If the tract is located in more than one county:
 5-1                 (1)  the county clerk of the county in which a majority
 5-2     of the area of the tract is located shall conduct the verification
 5-3     procedure described by Subsection (b); and
 5-4                 (2)  the county judge of each county in which the tract
 5-5     is located shall, under Subsection (c), call an election to be held
 5-6     in the part of the tract that is located in the county in which the
 5-7     county judge serves.
 5-8           (o)  If an election is called under Subsection (n)(2) in more
 5-9     than one county, the county judge of the county in which a majority
5-10     of the area of the tract is located shall, after the election
5-11     returns are canvassed in each county, combine the election returns
5-12     to determine if the disannexation is approved in the tract as a
5-13     whole.
5-14           SECTION 2.  The importance of this legislation and the
5-15     crowded condition of the calendars in both houses create an
5-16     emergency and an imperative public necessity that the
5-17     constitutional rule requiring bills to be read on three several
5-18     days in each house be suspended, and this rule is hereby suspended,
5-19     and that this Act take effect and be in force from and after its
5-20     passage, and it is so enacted.