Sec. 775.025.  EXCLUSION OF CERTAIN TERRITORY SUBJECT TO ASSESSMENTS.  (a)  The board shall hold a hearing to consider the exclusion from the district of territory in a planned community if the board receives a petition requesting a hearing on the issue that is signed by at least five percent of the qualified voters residing in the territory proposed to be excluded from the district.  A petition submitted under this subsection must describe the boundaries of the territory to be excluded from the district.
(b)  The board shall give notice of a hearing under this section.  The procedure under Section 775.015 for issuing notice of a hearing to create the district applies to the notice under this section.  The notice must state:
(1)  the boundaries of the territory proposed to be excluded;
(2)  the time and place of the hearing;  and
(3)  that each person who has an interest in the exclusion or nonexclusion of the territory may attend the hearing and present the person's opinion for or against the exclusion of the territory.
(c)  After the hearing, if the board finds that the entity responsible for administering and collecting the ad valorem or annual variable budget based assessments in the territory to be excluded provides or contracts for the provision of substantially the same services as provided by the district, the board shall:
(1)  order an election on the question of exclusion; or
(2)  declare by resolution the territory excluded from the district.
(d)  The board may not exclude territory by resolution if at least three percent of the qualified voters residing in the territory to be excluded from the district protest the exclusion in writing at the hearing.
(e)  In a resolution excluding territory, the board shall describe the new boundaries of the district.
(f)  The board shall order an election in the territory proposed to be excluded on the question of exclusion if:
(1)  at least three percent of the qualified voters residing in the territory to be excluded protest the exclusion in writing at the hearing;  or
(2)  the board:
(A)  despite the lack of a sufficient protest, refuses to exclude the territory;  and
(B)  not later than the 90th day after refusing to exclude the territory, receives a petition requesting an election that is signed by at least 10 percent of the qualified voters residing in the territory proposed to be excluded.
(g)  Except as otherwise provided by the Election Code, the provisions of this chapter relating to the election creating the district apply to the election notice, the manner and time of giving the notice, and the manner of holding the election under this section.
(h)  For purposes of the election, the order calling the election shall divide the territory proposed to be excluded from the district into one or more precincts.
(i)  If a majority of the votes in an election favor excluding the territory from the district, the board shall enter an order declaring the territory excluded from the district and describing the new boundaries of the district.
(j)  The board shall file a copy of a resolution or order with the county clerk of each county in which the district is located.  Each county clerk shall record the resolution or order.  After the resolution or order is recorded, the excluded territory is no longer part of the district.
(k)  If a majority of the votes in the election are against excluding the territory, the board may not act on a petition to exclude all or any part of the territory before the first anniversary of the date of the most recent election to exclude the territory.
(l)  The exclusion of territory under this section does not diminish or impair the rights of the holders of any outstanding and unpaid bonds, warrants, or other district obligations.  The district shall continue to impose taxes each year on the excluded territory at the same rate imposed on other territory in the district until the total amount of taxes collected from the excluded territory equals its pro rata share of the indebtedness of the district at the time the territory was excluded.  The taxes collected under this subsection shall be applied only to the payment of the excluded territory's pro rata share of indebtedness.  The owner of all or part of the excluded territory at any time may pay in full the owner's share of the excluded territory's pro rata share of the district's indebtedness at the time the territory was excluded.
(m)  On or after the date on which the appropriate county clerk records the resolution or order excluding the territory from the district, the district or a fire department or ambulance service that contracts with the district is not required to provide to the excluded territory emergency service facilities, emergency services, or other services to protect the life and health of residents in the territory.
(n)  For purposes of Subsection (o)(1), land ownership that is separated only by the claim of title by the state to the beds and banks of rivers or streams is considered contiguous.  Land ownership that is separated by a farm-to-market road right-of-way, whether fee simple ownership or an easement, is not considered contiguous.
(o)  In this section:
(1)  "Planned community" means a planned community of 15,000 or more acres of land originally established under the Urban Growth and New Community Development Act of 1970 (42 U.S.C. Section 4501 et seq.) that is:
(A)  located in a county adjacent to a county with a population of 2,800,000 or more according to the most recent federal census; and
(B)  subject to restrictive covenants containing ad valorem or annual variable budget based assessments on real property for use in part to finance services of the same general type provided by the district.
(2)  "Territory in a planned community" means territory that:
(A)  on the effective date of this section comprises all or part of a planned community;  or
(B)  on the effective date of this section is contiguous to a planned community and later becomes part of that planned community.
Added by Acts 1997, 75th Leg., ch. 1424, Sec. 1, eff. June 20, 1997.
Amended by: 
Acts 2005, 79th Leg., Ch. 3 (S.B. 267), Sec. 1, eff. April 22, 2005.
Acts 2005, 79th Leg., Ch. 3 (S.B. 267), Sec. 2, eff. April 22, 2005.
Acts 2005, 79th Leg., Ch. 3 (S.B. 267), Sec. 3, eff. April 22, 2005.