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78R6641 MI-D

By:  Crabb                                                        H.B. No. 2761


A BILL TO BE ENTITLED
AN ACT
relating to the disannexation of certain areas annexed on or after December 1, 1996, by certain municipalities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter G, Chapter 43, Local Government Code, is amended by adding Section 43.149 to read as follows: Sec. 43.149. DISANNEXATION OF CERTAIN AREAS. (a) This section applies only to a tract of contiguous territory: (1) that is annexed on or after December 1, 1996, by a municipality with a population of more than 1.5 million; and (2) in which an election approving the annexation has not been held. (b) The county in which the tract is located shall hold an election on disannexation of the tract from the municipality if the county clerk receives a petition asking for an election signed by at least 10 percent of the registered voters who reside in the tract. The county clerk shall determine the validity of the petition under Chapter 277, Election Code, not later than the 30th day after the date the petition is received. (c) If the county clerk determines that a petition filed under Subsection (b) is valid or if the county clerk fails to make a determination within the time prescribed by that subsection, the county judge shall order the election to be held on the first uniform election date that occurs after the 45th day after the earlier of: (1) the date the county clerk determines the petition is valid; or (2) the time for making a determination under Subsection (b) expires. (d) Only a registered voter residing in the tract may vote in the election. The municipality that annexed the tract shall pay for the cost of holding the election. (e) At the election the ballots shall be prepared to permit voting for or against the following proposition: "The disannexation of (name of tract) from the City of (name of city) and the reestablishment of any municipal utility district or other special districts serving (name of tract)." The county shall designate the name of the tract based on a name commonly used in the region to identify the tract. (f) If a majority of the votes cast at the election favor the proposition, the tract is disannexed from the municipality and any municipal utility district or other special district that served the tract on the date the tract was annexed and that was abolished as a result of the annexation is reestablished on the date of the canvass of the election. The directors of a reestablished district who were serving on the date the tract was annexed are the directors of the reestablished district. If a director's term has expired, the director shall serve until the director's successor is qualified, and a successor shall be elected or appointed in a timely manner in accordance with the law governing the district. If there is a vacancy, the remaining directors shall appoint a person to fill the vacancy. If there are no remaining directors, the county judge shall appoint the appropriate number of directors to serve until the time of appointment or election of directors under the law governing the district. (g) If less than a majority of the votes cast at the election favor the proposition, the tract remains a part of the municipality and another election to disannex the tract may not be held under this section. (h) The municipality may not reannex any portion of a tract that is disannexed under this section unless the reannexation is approved at an election conducted by the municipality in the area to be annexed. The reannexation may not occur unless a majority of the votes cast in the area approve the reannexation. (i) Not later than the 10th day after the date a disannexation occurs under this section, an arbitration panel shall be appointed. The panel is composed of: (1) one person chosen by the municipality; (2) one person chosen by the affirmative vote of a representative of each municipal utility district or other special district serving the disannexed tract; and (3) one person chosen jointly by the persons chosen under Subdivisions (1) and (2) or, if an agreement cannot be reached on a choice, one person appointed by the county judge of the county in which the tract is located. (j) The arbitration panel shall conduct an accounting of all expenses the municipality and each municipal utility district and other special district incurred during the annexation and disannexation process, including an accounting of the assets and obligations of the special districts at the time of the annexation and the capital expenditures of the municipality on behalf of the disannexed tract during the time the tract was a part of the municipality. Not later than the 120th day after the date of disannexation, the arbitration panel shall render a decision on whether the municipality or special districts are entitled to compensation from the other. (k) A decision of the arbitration panel is reviewable in the district court of the county under the substantial evidence rule. If the arbitrators are unable to reach a majority decision, the municipality or an affected district may file an original action for an accounting under Subsection (j) in the district court of the county in which the tract is located. (l) Except as provided by this section, Chapter 171, Civil Practice and Remedies Code, applies to an arbitration under this section. (m) In this section, a tract of land is considered to be located in the county in which a majority of the area of the tract is located. (n) If the tract is located in more than one county: (1) the county clerk of the county in which a majority of the area of the tract is located shall conduct the verification procedure described by Subsection (b); and (2) the county judge of each county in which the tract is located shall call an election as provided by Subsection (c), to be held in the part of the tract that is located in the county in which the county judge serves. (o) If an election is called under Subsection (n)(2) in more than one county, the county judge of the county in which a majority of the area of the tract is located shall, after the election returns are canvassed in each county, combine the election returns to determine if the disannexation is approved in the tract as a whole. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.