By Crabb, et al. H.B. No. 2215 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the disannexation of certain areas 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 43.149 to read as follows: 1-7 Sec. 43.149. DISANNEXATION OF CERTAIN AREAS. (a) This 1-8 section applies only to a tract of contiguous territory: 1-9 (1) that is annexed on or after December 1, 1996, by a 1-10 municipality with a population of more than 1.5 million; and 1-11 (2) in which an election approving the annexation has 1-12 not been held. 1-13 (b) The county in which the tract is located shall hold an 1-14 election on disannexation of the tract from the municipality if the 1-15 county clerk receives a petition asking for an election signed by 1-16 at least 10 percent of the registered voters who reside in the 1-17 tract. The county clerk shall determine the validity of the 1-18 petition under Chapter 277, Election Code, not later than the 30th 1-19 day after the date the petition is received. 1-20 (c) If the county clerk determines that a petition filed 1-21 under Subsection (b) is valid or if the county clerk fails to make 1-22 a determination within the time prescribed by that subsection, the 1-23 county judge shall order the election to be held on the first 1-24 uniform election date that occurs at least 45 days after the 2-1 earlier of the date: 2-2 (1) the county clerk determines the petition is valid; 2-3 or 2-4 (2) the time for making a determination under 2-5 Subsection (b) expires. 2-6 (d) Only a registered voter residing in the tract may vote 2-7 in the election. The municipality that annexed the tract shall pay 2-8 for the cost of holding the election. 2-9 (e) At the election the ballots shall be prepared to permit 2-10 voting for or against the following proposition: "The 2-11 disannexation of (name of tract) from the City of (name of city) 2-12 and the reestablishment of any municipal utility district or other 2-13 special districts serving (name of tract)." The county shall 2-14 designate the name of the tract based on a name commonly used in 2-15 the region to identify the tract. 2-16 (f) If a majority of the votes cast at the election favor 2-17 the proposition, the tract is disannexed from the municipality and 2-18 any municipal utility district or other special district that 2-19 served the tract on the date the tract was annexed and that was 2-20 abolished as a result of the annexation is reestablished on the 2-21 date of the canvass of the election. The directors of a 2-22 reestablished district who were serving on the date the tract was 2-23 annexed are the directors of the reestablished district. If a 2-24 director's term has expired, the director shall serve until the 2-25 director's successor is qualified, and a successor shall be elected 2-26 or appointed in a timely manner in accordance with the law 2-27 governing the district. If there is a vacancy, the remaining 3-1 directors shall appoint a person to fill the vacancy. If there are 3-2 no remaining directors, the county judge shall appoint the 3-3 appropriate number of directors to serve until the time of 3-4 appointment or election of directors under the law governing the 3-5 district. 3-6 (g) If less than a majority of the votes cast at the 3-7 election favor the proposition, the tract remains a part of the 3-8 municipality and another election to disannex the tract may not be 3-9 held under this section. 3-10 (h) The municipality may not reannex any portion of a tract 3-11 that is disannexed under this section unless the reannexation is 3-12 approved at an election conducted by the municipality in the area 3-13 to be annexed. The reannexation may not occur unless a majority of 3-14 the votes cast in the area approve the reannexation. 3-15 (i) Not later than the 10th day after the date a 3-16 disannexation occurs under this section, an arbitration panel shall 3-17 be appointed. The panel is composed of: 3-18 (1) one person chosen by the municipality; 3-19 (2) one person chosen by the affirmative vote of a 3-20 representative of each municipal utility district or other special 3-21 district serving the disannexed tract; and 3-22 (3) one person chosen jointly by the persons chosen 3-23 under Subdivisions (1) and (2), or if an agreement cannot be 3-24 reached on a choice, one person appointed by the county judge of 3-25 the county in which the tract is located. 3-26 (j) The arbitration panel shall conduct an accounting of all 3-27 expenses the municipality and each municipal utility district and 4-1 other special district incurred during the annexation and 4-2 disannexation process, including an accounting of the assets and 4-3 obligations of the special districts at the time of the annexation 4-4 and the capital expenditures of the municipality on behalf of the 4-5 disannexed tract during the time the tract was a part of the 4-6 municipality. Not later than the 120th day after the date of 4-7 disannexation, the arbitration panel shall render a decision on 4-8 whether the municipality or special districts are entitled to 4-9 compensation from the other. 4-10 (k) A decision of the arbitration panel is reviewable in the 4-11 district court of the county under the substantial evidence rule. 4-12 If the arbitrators are unable to reach a majority decision, the 4-13 municipality or an affected district may file an original action 4-14 for an accounting under Subsection (j) in the district court of the 4-15 county in which the tract is located. 4-16 (l) Except as provided by this section, Chapter 171, Civil 4-17 Practice and Remedies Code, applies to an arbitration under this 4-18 section. 4-19 (m) In this section, a tract of land is considered to be 4-20 located in the county in which a majority of the area of the tract 4-21 is located. 4-22 (n) If the tract is located in more than one county: 4-23 (1) the county clerk of the county in which a majority 4-24 of the area of the tract is located shall conduct the verification 4-25 procedure described by Subsection (b); and 4-26 (2) the county judge of each county in which the tract 4-27 is located shall, under Subsection (c), call an election to be held 5-1 in the part of the tract that is located in the county in which the 5-2 county judge serves. 5-3 (o) If an election is called under Subsection (n)(2) in more 5-4 than one county, the county judge of the county in which a majority 5-5 of the area of the tract is located shall, after the election 5-6 returns are canvassed in each county, combine the election returns 5-7 to determine if the disannexation is approved in the tract as a 5-8 whole. 5-9 SECTION 2. Subchapter G, Chapter 43, Local Government Code, 5-10 is amended by adding Section 43.150 to read as follows: 5-11 Sec. 43.150. DISANNEXATION BY PETITION FOLLOWING FAILURE TO 5-12 PROVIDE SERVICES. (a) In this section, "full municipal services" 5-13 means water and wastewater services and other services listed in 5-14 Section 43.056(b). 5-15 (b) This section applies only to an area that: 5-16 (1) was annexed by a general-law municipality before 5-17 June 1, 1980; 5-18 (2) includes at least 200 contiguous acres; 5-19 (3) is uninhabited or contains fewer than one occupied 5-20 residence or business structure for every two acres and fewer than 5-21 three occupied residences or business structures on any one acre; 5-22 and 5-23 (4) has not been provided full municipal services 5-24 since the date of the annexation. 5-25 (c) The governing body of the municipality shall adopt an 5-26 ordinance disannexing the area, or any part of the area, from the 5-27 municipality if the governing body receives a petition from the 6-1 owners of the area, or the part of the area, requesting the 6-2 disannexation. The ordinance must be adopted before the 45th day 6-3 after the date the petition is received. The disannexation takes 6-4 effect on the date the ordinance is adopted. 6-5 (d) The petition must: 6-6 (1) include a statement requesting the disannexation 6-7 and include a legal description of the area to be disannexed; 6-8 (2) contain the printed name, signature, residence or 6-9 business address, and date of signing of each owner of the area to 6-10 be disannexed; and 6-11 (3) be signed by each owner during the 120 days before 6-12 the date the petition is filed with the governing body. 6-13 (e) If the governing body fails to adopt the ordinance as 6-14 required by this section, an owner who signed the petition may file 6-15 suit in a district court in the county in which the area to be 6-16 disannexed is located. In the suit, the owner may seek a writ of 6-17 mandamus compelling the governing body to adopt the required 6-18 ordinance. The court shall award an owner who prevails in the suit 6-19 any attorney's fees, court costs, and other expenses reasonably 6-20 incurred in connection with the suit. 6-21 SECTION 3. This Act takes effect immediately if it receives 6-22 a vote of two-thirds of all the members elected to each house, as 6-23 provided by Section 39, Article III, Texas Constitution. If this 6-24 Act does not receive the vote necessary for immediate effect, this 6-25 Act takes effect September 1, 2001.