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Texas Local Government Code - Section 43.0715. Annexation Of Water-Related Special District: Reimbursement Of Landowner Or Developer; Continuation Of District And Taxing Authority

Legal Research Home > Texas Laws > Local Government Code > Texas Local Government Code - Section 43.0715. Annexation Of Water-Related Special District: Reimbursement Of Landowner Or Developer; Continuation Of District And Taxing Authority

§ 43.0715. ANNEXATION OF WATER-RELATED SPECIAL DISTRICT:  
REIMBURSEMENT OF LANDOWNER OR DEVELOPER;  CONTINUATION OF DISTRICT 
AND TAXING AUTHORITY.  (a) In this section:
		(1)  "Special district" means a political subdivision 
one purpose of which is to supply fresh water for domestic or 
commercial use or to furnish sanitary sewer services or drainage.
		(2)  "Delinquent sum" means the sum a municipality has 
failed to timely pay to a landowner or developer under Subsection 
(b).
	(b)  If a municipality with a population of less than 1.5 
million annexes a special district for full or limited purposes and 
the annexation precludes or impairs the ability of the district to 
issue bonds, the municipality shall, prior to the effective date of 
the annexation, pay in cash to the landowner or developer of the 
district a sum equal to all actual costs and expenses incurred by 
the landowner or developer in connection with the district that the 
district has, in writing, agreed to pay and that would otherwise 
have been eligible for reimbursement from bond proceeds under the 
rules and requirements of the Texas Natural Resource Conservation 
Commission as such rules and requirements exist on the date of 
annexation.  For an annexation that is subject to preclearance by a 
federal authority, a payment will be considered timely if the 
municipality:  (i) escrows the reimbursable amounts determined in 
accordance with Subsection (c) prior to the effective date of the 
annexation;  and (ii) subsequently causes the escrowed funds and 
accrued interest to be disbursed to the developer within five 
business days after the municipality receives notice of the 
preclearance.
	(c)  At the time notice of the municipality's intent to annex 
the land within the district is first published in accordance with 
Section 43.052, the municipality shall proceed to initiate and 
complete a report for each developer conducted in accordance with 
the format approved by the Texas Natural Resource Conservation 
Commission for audits.  In the event the municipality is unable to 
complete the report prior to the effective date of the annexation as 
a result of the developer's failure to provide information to the 
municipality which cannot be obtained from other sources, the 
municipality shall obtain from the district the estimated costs of 
each project previously undertaken by a developer which are 
eligible for reimbursement.  The amount of such costs, as estimated 
by the district, shall be escrowed by the municipality for the 
benefit of the persons entitled to receive payment in an insured 
interest-bearing account with a financial institution authorized 
to do business in the state.  To compensate the developer for the 
municipality's use of the infrastructure facilities pending the 
determination of the reimbursement amount or federal preclearance, 
all interest accrued on the escrowed funds shall be paid to the 
developer whether or not the annexation is valid.  Upon placement of 
the funds in the escrow account, the annexation may become 
effective.  In the event a municipality timely escrows all 
estimated reimbursable amounts as required by this subsection and 
all such amounts, determined to be owed, including interest, are 
subsequently disbursed to the developer within five days of final 
determination in immediately available funds as required by this 
section, no penalties or interest shall accrue during the pendency 
of the escrow.  Either the municipality or developer may, by written 
notice to the other party, require disputes regarding the amount 
owed under this section to be subject to nonbinding arbitration in 
accordance with the rules of the American Arbitration Association.
	(d)  A delinquent sum incurs a penalty of six percent of the 
amount of the sum for the first calendar month it is delinquent plus 
one percent for each additional month or portion of a month the sum 
remains unpaid.  For an annexation occurring prior to the effective 
date of the changes in law made by this Act in amending Subsection 
(b), a delinquent sum begins incurring a penalty on the first day of 
the eighth month following the month in which the municipality 
enacted its annexation ordinance.  For an annexation occurring 
after the effective date of this Act, a delinquent sum begins 
incurring a penalty on the first day after the date the municipality 
enacts its annexation ordinance.

Added by Acts 1989, 71st Leg., ch. 1, § 3(g), eff. Aug. 28, 1989.  
Amended by Acts 1989, 71st Leg., ch. 17, § 1(2), eff. Sept. 1, 
1989;  Acts 1989, 71st Leg., ch. 1058, § 2, eff. Sept. 1, 1989;  
Acts 1991, 72nd Leg., ch. 597, § 81, eff. Sept. 1, 1991;  Acts 
1995, 74th Leg., ch. 76, § 11.255, eff. Sept. 1, 1995;  Acts 
1999, 76th Leg., ch. 544, § 1, eff. June 18, 1999.

Last modified: August 11, 2007