BILL ANALYSIS


                                                         H.B. 635
                                             By: Lewis (Galloway)
                                      Intergovernmental Relations
                                                         05-10-95
                              Senate Committee Report (Unamended)
BACKGROUND

The Jefferson County Water Control and Improvement District No. 10
(district) requested annexation by the City of Nederland (city) in
1949, 1955, and 1964.  Each time the city denied the request.  In
1958, the district developed its own water and wastewater service
system.  In 1984, the City of Nederland cited its intention to
discontinue fire protection to the district.

The district's water and wastewater operations within the district
have consistently met federal and state regulations, while those
within Nederland presently do not.  Annexation of the district is
estimated to bring a revenue of approximately $50,000 per year to
the City of Nederland but no projected return for the district in
providing the increased tax base to the city.

PURPOSE

As proposed, H.B. 635 prohibits territory contained within the
Jefferson County Water Control and Improvement District No. 10 from
being annexed by a municipality unless approved by a majority of
voters voting in an election.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 245, Acts of the 54th Legislature,
Regular Session, 1955, by adding Section 3A, as follows:

     Sec. 3A.  TERRITORY NOT SUBJECT TO ANNEXATION.  Prohibits
     territory contained within the Jefferson County Water Control
     and Improvement District No. 10 (district) from being annexed,
     either in whole or part, by a municipality unless the
     annexation is approved by a majority of the voters voting in
     a single election called and held jointly in the municipality
     and the district for that purpose.
SECTION 2. Emergency clause.
           Effective date: upon passage.