S.B. No. 2965 amends the Health and Safety Code regarding the annexation of territory in an emergency services district by a municipality. The bill specifies that if a municipality intends to annex territory from a district, it must complete all necessary procedures, including the preparation of a service plan if required. The municipality is required to send written notice of its intent to the board, along with the service plan, within 30 days of completing the procedures. The territory will remain part of the district until the board receives the notice and adopts a resolution to disannex the territory. If the board determines that the municipal services will not meet or exceed the level of service provided by the district, it cannot disannex the territory.

Additionally, the bill introduces a provision for binding arbitration if the municipality disputes the board's determination regarding service levels. A municipality can request arbitration after adopting a resolution disputing the board's decision, and this request must be made in writing. The bill also clarifies that a board is considered to have approved a disannexation if it fails to respond to the municipality within 30 days of receiving the notice. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Health and Safety Code 775.022 (Health and Safety Code 775)
Senate Committee Report: Health and Safety Code 775.022 (Health and Safety Code 775)
Engrossed: Health and Safety Code 775.022 (Health and Safety Code 775)
House Committee Report: Health and Safety Code 775.022 (Health and Safety Code 775)
Enrolled: Health and Safety Code 775.022, Health and Safety Code 775.0221 (Health and Safety Code 775)