Amend SB 2965 (house committee report) as follows:

(1)  On page 1, line 23, between the period and "If", insert "The board must send a copy of the resolution to the municipality by certified mail, return receipt requested, not later than the 30th day after the date on which the board adopts the resolution. If the governing body of the municipality disagrees with the board's determination that the municipal services will not meet or exceed the level of service provided by the district, the municipality may adopt a resolution stating the grounds for the disagreement and requesting arbitration in the manner provided by Section 775.0221.".

(2)  Add the following appropriately numbered SECTION to the bill and renumber subsequent SECTIONS of the bill accordingly:

SECTION ____.  Section 775.0221, Health and Safety Code, is amended by adding Subsection (a-1) and amending Subsection (b) to read as follows:

(a-1)  If the governing body of a municipality adopts a resolution under Section 775.022 disputing the determination of the board of a district that municipal services will not meet or exceed the level of service provided by the district and requesting arbitration, the municipality and the district shall resolve the dispute using binding arbitration.

(b)  A request for binding arbitration must be in writing and may not be made before the 60th day after the date the municipality receives, as applicable:

(2)  notice from the district regarding the amount of compensation required under Section 775.022.