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.