By: Springer S.B. No. 2470
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the removal of a terriority by a municipality
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 755.022 of the Tax Code, is amended to
  read as follows:  (a)  If a municipality completes all other
  procedures necessary to annex territory in a district and if the
  municipality intends to remove the territory from the district and
  be the sole provider of emergency services to the territory by the
  use of municipal personnel or by some method other than by use of
  the district, the municipality shall send written notice of those
  facts to the board board within 30 days of the date that the
  procedures necessary to annex territory are completed.  The
  municipality must send the notice to the secretary of the board by
  certified mail, return receipt requested.  The territory remains
  part of the district and does not become part of the municipality
  until the secretary of the board receives the notice.  Within 30
  days of receipt of the notice, the board shall adopt an order
  disannexing the property and notify the appraisal district to  
  immediately change its records to show that the territory has been
  disannexed from the district, and the district shall cease to
  provide further services to the residents of that territory.  This
  subsection does not require a municipality to remove from a
  district territory the municipality has annexed.
         (a-1)  Until the municipality reaches the same level of
  services, infrastructure, and infrastructure maintenance as called
  for in Section 43.056 of the Local Government Code, if the district
  or its contracted service provider is dispatched or requested to
  provide services to the residents of the territory that is removed
  by the municipality after the territory is removed, the
  municipality shall compensate the district for the costs of such
  services within 30 days of receipt of a request for payment from the
  district at the amount established by the district that shall not
  exceed costs of providing services, including overhead.  Payments
  due under this subsection shall be treated as contract payments due
  by the municipality and subject to Subchapter B of Chapter 2251 of
  the Texas Government Code and Section 2251.043 of the Texas
  Government Code.
         (b)  The disannexation of territory under this section does
  not diminish or impair the rights of the holders of any outstanding
  and unpaid bonds, warrants, or other obligations of the district
  including loans and lease-purchase agreements.
         (c)  If a municipality removes territory from a district that
  the municipality has annexed, the municipality shall compensate the
  district immediately after disannexation of the territory under
  Subsection (a) in an amount equal to the annexed territory's pro
  rata share of the district's bonded and other indebtedness as
  computed according to the formula in Subsection (e) or (e-1),
  whichever yields the greater amount.  The district shall apply
  compensation received from a municipality under this subsection
  exclusively to the payment of the annexed territory's pro rata
  share of the district's bonded and other indebtedness.
         (d)  On the district's request, a municipality shall purchase
  from the district at fair market value any real or personal property
  used to provide emergency services in territory disannexed under
  this section.
         (e)  Unless Subsection (e-l) would yield a greater amount,
  the amount of compensation under Subsection (c) shall be determined
  by multiplying the district's total indebtedness at the time of the
  annexation by a fraction the numerator of which is the assessed
  value of the property to be annexed based on the most recent
  certified county property tax rolls at the time of annexation and
  the denominator of which is the total assessed value of the property
  of the district based on the most recent certified county property
  tax rolls at the time of annexation.
         (e-l)  Unless Subsection (e) would yield a greater amount,
  the amount of compensation under Subsection (c) shall be determined
  by multiplying the district's total indebtedness at the time of the
  annexation by a fraction:
         (1)  the numerator of which is the assessed value of the
  property to be annexed based on the most recent certified county
  property tax rolls at the time of annexation plus the total amount
  of the district's sales and use tax revenue collected by retailers
  located in the property to be annexed in the 12 months preceding the
  date of annexation, as reported by the comptroller; and
         (2)  the denominator of which is the total assessed value of
  the property of the district based on the most recent certified
  county property tax rolls at the time of annexation plus the total
  amount of the district's sales and use tax revenue collected by
  retailers located in the district in the 12 months preceding the
  date of annexation, as reported by the comptroller.
         (f)  For purposes of this section, total indebtedness
  includes loans and lease-purchase agreements but does not include:
         (1)  a loan or lease-purchase agreement the district enters
  into after the district receives notice of the municipality's
  intent to annex district territory; or
         (2)  any indebtedness attributed to any real or personal
  property that the district requires a municipality to purchase
  under Subsection (d).
         (g)  The amount of compensation under Subsection (c) shall be
  determined under Subsection (e) regardless of whether Subsection
  (e-1) would yield a greater amount if:
         (1)  the municipality is a municipality described by Section
  775.014(h); and
         (2)  the municipality and the district enter into an
  agreement on or before September 1, 2019, regarding the district's
  bonded and other indebtedness.
         SECTION 2.  This Act takes effect September 1, 2023.