Tex. Health and Safety Code § 775.056
TRANSFER OF TERRITORY BETWEEN DISTRICTS
Texas · Texas Health and Safety Code · Status: effective
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- Citation
- Tex. Health and Safety Code § 775.056, TRANSFER OF TERRITORY BETWEEN DISTRICTS, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/676083
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Full text
(a) After a hearing, a district may make mutually agreeable changes in boundaries with another district, provided that the maximum tax rate authorized for such a district does not exceed the maximum tax rate previously authorized for any territory added to that district. The districts shall agree on an effective date for the changes in boundaries.
(b) The changes in boundaries under this section do not diminish or impair the rights of the holders of any outstanding and unpaid bonds, warrants, or other district obligations.
(c) A district shall compensate the district that loses territory in an amount equal to that territory's pro rata share of the losing district's bonded and other indebtedness based on the unpaid principal balances and the actual property values at the time the changes in boundaries are made. The district that loses territory shall apply compensation received from the annexing district under this subsection exclusively to the payment of the annexed territory's pro rata share of the losing district's bonds or other debt.