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.