§ 775.0221 — ARBITRATION REGARDING REMOVED TERRITORY.

Texas § 775.0221

• Jurisdiction: Texas
• Code HS: Health and Safety Code

Text

Sec. 775.0221. ARBITRATION REGARDING REMOVED TERRITORY. (a) The municipality and the district shall negotiate an agreement on the amount of compensation required under Section 775.022 . If the municipality and the district cannot reach an agreement, the municipality and the district shall resolve the dispute using binding arbitration.
(a-1) If the governing body of a municipality adopts a resolution under Section 775.022 disputing the determination of the board of a district that municipal services will not meet or exceed the level of service provided by the district and requesting arbitration, the municipality and the district shall resolve the dispute using binding arbitration.
(b) A request for binding arbitration must be in writing and may not be made before the 60th day after the date the municipality receives, as applicable:
(1) a resolution from the district under Section 775.022 determining that municipal services will not meet or exceed the level of service provided by the district; or
(2) notice from the district regarding the amount of compensation required under Section 775.022 .
(c) The municipality and the district must agree on the arbitrator. If the parties cannot agree on the appointment of an arbitrator before the 11th business day after the date arbitration is requested, the mayor of the municipality shall immediately request a list of seven neutral arbitrators from the American Arbitration Association or the Federal Mediation and Conciliation Service or their successors in function. An arbitrator included in the list must be a resident of this state and may not be a resident of a county in which any part of the municipality or any part of the district is located. The municipality and the district must agree on the appointment of an arbitrator included in the list. If the municipality and the district cannot agree on the arbitrator before the 11th business day after the date the list is provided to the parties, each party or the party's designee may alternately strike a name from the list. The remaining person on the list shall be appointed as the arbitrator. In this subsection, "business day" means a day other than a Saturday, Sunday, or state or national holiday.
(d) The arbitrator shall:
(1) set a hearing to be held not later than the 10th day after the date the arbitrator is appointed; and
(2) notify the parties to the arbitration in writing of the time and place of the hearing not later than the eighth day before the date of the hearing.
(e) The arbitrator may:
(1) receive in evidence any documentary evidence or other information the arbitrator considers relevant;
(2) administer oaths; and
(3) issue subpoenas to require:
(A) the attendance and testimony of witnesses; and
(B) the production of books, records, and other evidence relevant to an issue presented to the arbitrator for determination.
(f) Unless the parties to the dispute agree otherwise, the arbitrator shall complete the hearing within two consecutive days. The arbitrator shall permit each party one day to present evidence and other information. The arbitrator, for good cause shown, may schedule an additional hearing to be held not later than the seventh day after the date of the first hearing. Unless otherwise agreed to by the parties, the arbitrator must issue a decision in writing and deliver a copy of the decision to the parties not later than the 14th day after the date of the final hearing.
(g) The municipality and the district shall share the cost of arbitration.

Legislative History

Added by Acts 2003, 78th Leg., ch. 235, Sec. 3, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 907, Sec. 2, eff. Sept. 1, 2003. Amended by: Acts 2025, 89th Leg., R.S., Ch. 1036 (S.B. 2965 ), Sec. 2, eff. September 1, 2025.