By Fraser                                             S.B. No. 1069
         76R7082 CAG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the annexation procedures for certain areas covered by
 1-3     a court-ordered trust agreement.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 43, Local Government Code,
 1-6     is amended by adding Section 43.058 to read as follows:
 1-7           Sec. 43.058.  ANNEXATION OF CERTAIN AREAS COVERED BY TRUST
 1-8     AGREEMENT.  (a) This section applies only to a municipality that
 1-9     has been named, by a court order or otherwise, as the trustee of
1-10     funds for the benefit of any residents of the municipality and also
1-11     for the benefit of persons who reside outside the boundaries of the
1-12     municipality.
1-13           (b)  To dissolve the trust agreement or order described by
1-14     Subsection (a), the municipality shall:
1-15                 (1)  adopt an ordinance or resolution authorizing the
1-16     dissolution of the trust in accordance with this section; and
1-17                 (2)  annex all of the area outside the boundaries of
1-18     the municipality that contains any person who benefits from the
1-19     trust.
1-20           (c)  The limitations in this chapter on the area eligible for
1-21     annexation by a municipality do not apply to an annexation
1-22     conducted under this section. An annexation under this section
1-23     shall be conducted in the same manner as a voluntary annexation
1-24     under Section 43.024 and is subject to the annexation procedures of
 2-1     this subchapter.
 2-2           (d)  Any election required by Section 43.024 shall be
 2-3     conducted on the first uniform election day occurring on or after
 2-4     the 45th day following the date of the adoption of the municipal
 2-5     ordinance or resolution under Subsection (b)(1).
 2-6           (e)  On the date the annexation becomes final, the trust is
 2-7     dissolved. The trust's assets and any rights, including rights to
 2-8     pursue outstanding claims, are transferred to the municipality by
 2-9     operation of law.
2-10           (f)  Following the annexation of the area under this section,
2-11     the governing body of the municipality may increase the
2-12     municipality's ad valorem property tax rate to a level so that the
2-13     amount of money collected under the increased portion of the tax
2-14     rate will equal any trust fund income lost as a result of the
2-15     dissolution of the trust under this section. For the purposes of
2-16     calculating the increase in the tax rate, the amount of money lost
2-17     as a result of the dissolution of the trust is equal to the amount
2-18     of money that would have been generated from the collection of all
2-19     income from the area covered by the trust fund, if all trust income
2-20     had been timely paid and collected.
2-21           (g)  The increase in the municipality's tax rate under
2-22     Subsection (f) to offset the lost trust income is subject to a tax
2-23     rollback election.
2-24           (h)  An annexation conducted under this section is final and
2-25     is not subject to judicial review except for compliance with any
2-26     procedural matters.
2-27           SECTION 2.  The importance of this legislation and the
 3-1     crowded condition of the calendars in both houses create an
 3-2     emergency and an imperative public necessity that the
 3-3     constitutional rule requiring bills to be read on three several
 3-4     days in each house be suspended, and this rule is hereby suspended,
 3-5     and that this Act take effect and be in force from and after its
 3-6     passage, and it is so enacted.