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.