By:  Barrientos                                       S.B. No. 1442
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the removal of certain territory from an emergency
 1-2     services district.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter B, Chapter 775, Health and Safety
 1-5     Code, is amended by adding Section 775.0235 to read as follows:
 1-6           Sec. 775.0235.  REMOVAL OF CERTAIN TERRITORY ON REQUEST OF
 1-7     MUNICIPALITY.  (a)  The board shall remove territory from a
 1-8     district as provided by this section, on request of a municipality,
 1-9     if the territory:
1-10                 (1)  was included in the corporate limits of the
1-11     municipality at the time the territory was first included in the
1-12     district;
1-13                 (2)  is included in any part of a district that is
1-14     composed of two or more territories that are not contiguous to
1-15     each other; and
1-16                 (3)  is surrounded on at least three sides by territory
1-17     inside the municipal boundaries of a municipality with a population
1-18     of 400,000 or more.
1-19           (b)  The board shall, on request of the municipality,
1-20     immediately disannex the territory from the district and shall
1-21     cease to  provide further services to the  residents of that
1-22     territory.
1-23           (c)  On request by the municipality, in connection with a
1-24     disannexation under Subsection (b), the board shall immediately
 2-1     disannex all territory in the district that is included in the
 2-2     municipality's extraterritorial jurisdiction and shall cease to
 2-3     provide further services to the residents of such additional
 2-4     territory.
 2-5           (d)  The disannexation of territory under this section does
 2-6     not diminish or impair the rights of the holders of any outstanding
 2-7     and unpaid bonds, warrants, or other obligations of the district.
 2-8           (e)  If territory is disannexed under this section, the
 2-9     municipality shall compensate the district in an amount equal to
2-10     the disannexed territory's pro rata share of the district's
2-11     indebtedness at the time the territory is  disannexed.  The
2-12     district shall apply compensation received from a municipality
2-13     under this subsection exclusively to the payment of the disannexed
2-14     territory's pro rata share of the district's indebtedness.
2-15           (f)  On the district's request, a municipality shall purchase
2-16     from the district at fair market value any real or personal
2-17     property used to provide emergency services in territory disannexed
2-18     under this section.  If any part of the indebtedness for which the
2-19     district receives compensation under Subsection (e) was for the
2-20     purchase of the real or personal property that the municipality
2-21     purchases under this subsection, the fair market value of that
2-22     property for the purpose of this subsection is reduced by a
2-23     percentage equal to the disannexed territory's pro rata share under
2-24     Subsection (e).
2-25           SECTION 2.  This Act takes effect September 1, 1999.
2-26           SECTION 3.  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.