By Lindsay                                            S.B. No. 1148
         77R7040 MI-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the disannexation of certain areas annexed on or after
 1-3     December 1, 1996, by certain 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.  This Act takes effect immediately if it receives
5-10     a vote of two-thirds of all the members elected to each house, as
5-11     provided by Section 39, Article III, Texas Constitution.  If this
5-12     Act does not receive the vote necessary for immediate effect, this
5-13     Act takes effect September 1, 2001.