Sec. 775.0235.  REMOVAL OF CERTAIN TERRITORY ON REQUEST OF MUNICIPALITY.  (a)  The board shall remove territory from a district as provided by this section, on request of a municipality, if the territory:
(1)  was included in the corporate limits of the municipality at the time the territory was first included in the district;
(2)  is included in any part of a district that is composed of two or more territories that are not contiguous to each other;  and
(3)  is surrounded on at least three sides by territory inside the municipal boundaries of a municipality with a population of 400,000 or more.
(b)  The board shall, on request of the municipality, immediately disannex the territory from the district and shall cease to provide further services to the residents of that territory.
(c)  On request by the municipality, in connection with a disannexation under Subsection (b), the board shall immediately disannex all territory in the district that is included in the municipality's extraterritorial jurisdiction and shall cease to provide further services to the residents of such additional territory.
(d)  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.
(e)  If territory is disannexed under this section, the municipality shall compensate the district in an amount equal to the disannexed territory's pro rata share of the district's indebtedness at the time the territory is disannexed.  The district shall apply compensation received from a municipality under this subsection exclusively to the payment of the disannexed territory's pro rata share of the district's indebtedness.
(f)  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.  If any part of the indebtedness for which the district receives compensation under Subsection (e) was for the purchase of the real or personal property that the municipality purchases under this subsection, the fair market value of that property for the purpose of this subsection is reduced by a percentage equal to the disannexed territory's pro rata share under Subsection (e).
Added by Acts 1999, 76th Leg., ch. 475, Sec. 1, eff. Sept. 1, 1999.