| 1 | 1 | | By: Springer S.B. No. 2470 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the removal of a terriority by a municipality |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 755.022 of the Tax Code, is amended to |
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| 9 | 9 | | read as follows: (a) If a municipality completes all other |
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| 10 | 10 | | procedures necessary to annex territory in a district and if the |
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| 11 | 11 | | municipality intends to remove the territory from the district and |
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| 12 | 12 | | be the sole provider of emergency services to the territory by the |
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| 13 | 13 | | use of municipal personnel or by some method other than by use of |
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| 14 | 14 | | the district, the municipality shall send written notice of those |
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| 15 | 15 | | facts to the board board within 30 days of the date that the |
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| 16 | 16 | | procedures necessary to annex territory are completed. The |
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| 17 | 17 | | municipality must send the notice to the secretary of the board by |
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| 18 | 18 | | certified mail, return receipt requested. The territory remains |
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| 19 | 19 | | part of the district and does not become part of the municipality |
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| 20 | 20 | | until the secretary of the board receives the notice. Within 30 |
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| 21 | 21 | | days of receipt of the notice, the board shall adopt an order |
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| 22 | 22 | | disannexing the property and notify the appraisal district to |
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| 23 | 23 | | immediately change its records to show that the territory has been |
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| 24 | 24 | | disannexed from the district, and the district shall cease to |
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| 25 | 25 | | provide further services to the residents of that territory. This |
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| 26 | 26 | | subsection does not require a municipality to remove from a |
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| 27 | 27 | | district territory the municipality has annexed. |
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| 28 | 28 | | (a-1) Until the municipality reaches the same level of |
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| 29 | 29 | | services, infrastructure, and infrastructure maintenance as called |
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| 30 | 30 | | for in Section 43.056 of the Local Government Code, if the district |
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| 31 | 31 | | or its contracted service provider is dispatched or requested to |
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| 32 | 32 | | provide services to the residents of the territory that is removed |
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| 33 | 33 | | by the municipality after the territory is removed, the |
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| 34 | 34 | | municipality shall compensate the district for the costs of such |
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| 35 | 35 | | services within 30 days of receipt of a request for payment from the |
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| 36 | 36 | | district at the amount established by the district that shall not |
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| 37 | 37 | | exceed costs of providing services, including overhead. Payments |
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| 38 | 38 | | due under this subsection shall be treated as contract payments due |
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| 39 | 39 | | by the municipality and subject to Subchapter B of Chapter 2251 of |
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| 40 | 40 | | the Texas Government Code and Section 2251.043 of the Texas |
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| 41 | 41 | | Government Code. |
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| 42 | 42 | | (b) The disannexation of territory under this section does |
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| 43 | 43 | | not diminish or impair the rights of the holders of any outstanding |
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| 44 | 44 | | and unpaid bonds, warrants, or other obligations of the district |
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| 45 | 45 | | including loans and lease-purchase agreements. |
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| 46 | 46 | | (c) If a municipality removes territory from a district that |
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| 47 | 47 | | the municipality has annexed, the municipality shall compensate the |
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| 48 | 48 | | district immediately after disannexation of the territory under |
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| 49 | 49 | | Subsection (a) in an amount equal to the annexed territory's pro |
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| 50 | 50 | | rata share of the district's bonded and other indebtedness as |
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| 51 | 51 | | computed according to the formula in Subsection (e) or (e-1), |
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| 52 | 52 | | whichever yields the greater amount. The district shall apply |
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| 53 | 53 | | compensation received from a municipality under this subsection |
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| 54 | 54 | | exclusively to the payment of the annexed territory's pro rata |
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| 55 | 55 | | share of the district's bonded and other indebtedness. |
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| 56 | 56 | | (d) On the district's request, a municipality shall purchase |
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| 57 | 57 | | from the district at fair market value any real or personal property |
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| 58 | 58 | | used to provide emergency services in territory disannexed under |
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| 59 | 59 | | this section. |
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| 60 | 60 | | (e) Unless Subsection (e-l) would yield a greater amount, |
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| 61 | 61 | | the amount of compensation under Subsection (c) shall be determined |
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| 62 | 62 | | by multiplying the district's total indebtedness at the time of the |
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| 63 | 63 | | annexation by a fraction the numerator of which is the assessed |
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| 64 | 64 | | value of the property to be annexed based on the most recent |
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| 65 | 65 | | certified county property tax rolls at the time of annexation and |
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| 66 | 66 | | the denominator of which is the total assessed value of the property |
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| 67 | 67 | | of the district based on the most recent certified county property |
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| 68 | 68 | | tax rolls at the time of annexation. |
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| 69 | 69 | | (e-l) Unless Subsection (e) would yield a greater amount, |
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| 70 | 70 | | the amount of compensation under Subsection (c) shall be determined |
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| 71 | 71 | | by multiplying the district's total indebtedness at the time of the |
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| 72 | 72 | | annexation by a fraction: |
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| 73 | 73 | | (1) the numerator of which is the assessed value of the |
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| 74 | 74 | | property to be annexed based on the most recent certified county |
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| 75 | 75 | | property tax rolls at the time of annexation plus the total amount |
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| 76 | 76 | | of the district's sales and use tax revenue collected by retailers |
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| 77 | 77 | | located in the property to be annexed in the 12 months preceding the |
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| 78 | 78 | | date of annexation, as reported by the comptroller; and |
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| 79 | 79 | | (2) the denominator of which is the total assessed value of |
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| 80 | 80 | | the property of the district based on the most recent certified |
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| 81 | 81 | | county property tax rolls at the time of annexation plus the total |
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| 82 | 82 | | amount of the district's sales and use tax revenue collected by |
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| 83 | 83 | | retailers located in the district in the 12 months preceding the |
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| 84 | 84 | | date of annexation, as reported by the comptroller. |
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| 85 | 85 | | (f) For purposes of this section, total indebtedness |
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| 86 | 86 | | includes loans and lease-purchase agreements but does not include: |
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| 87 | 87 | | (1) a loan or lease-purchase agreement the district enters |
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| 88 | 88 | | into after the district receives notice of the municipality's |
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| 89 | 89 | | intent to annex district territory; or |
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| 90 | 90 | | (2) any indebtedness attributed to any real or personal |
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| 91 | 91 | | property that the district requires a municipality to purchase |
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| 92 | 92 | | under Subsection (d). |
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| 93 | 93 | | (g) The amount of compensation under Subsection (c) shall be |
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| 94 | 94 | | determined under Subsection (e) regardless of whether Subsection |
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| 95 | 95 | | (e-1) would yield a greater amount if: |
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| 96 | 96 | | (1) the municipality is a municipality described by Section |
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| 97 | 97 | | 775.014(h); and |
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| 98 | 98 | | (2) the municipality and the district enter into an |
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| 99 | 99 | | agreement on or before September 1, 2019, regarding the district's |
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| 100 | 100 | | bonded and other indebtedness. |
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| 101 | 101 | | SECTION 2. This Act takes effect September 1, 2023. |
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