BILL ANALYSIS



C.S.H.B. 2489
By: Yost
May 4, 1995
Committee Report (Substituted)


BACKGROUND

Currently a home-rule municipality may unilaterally annex a
municipal utility district lying within its extraterritorial
jurisdiction so long as the entire MUD is annexed and the city
assumes all of the debt of the MUD. 

PURPOSE

C.S.H.B. 2489 would prevent a city from annexing a MUD unless the
MUD has grown to the point where it was providing retail service to
80% of the equivalent wastewater connection rights reserved for the
MUD's retail customers in the city's wastewater system.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1  Amends Subchapter D, Chapter 43, Local Government Code,
           by adding Section 43.0725 as follows:

           Sec. 43.0725.  ANNEXATION OF AREAS IN CERTAIN MUNICIPAL
                         UTILITY DISTRICTS
           Subsection (a) provides that this section applies only
           to a home-rule municipality that has a population of
           more than 400,000, has a charter provision allowing
           limited-purpose annexation, and has disannexed territory
           that was annexed for a limited purpose.

           Subsection (b) states that annexation of a MUD may occur
           only when the district is providing retail service to
           80% or more of the equivalent wastewater connection
           rights that the district has reserved in the
           municipality's wastewater system for the district's
           retail customers.

SECTION 2  The changes in law made by this Act apply only to an
           annexation for which the first hearing notice is
           published on or after January 1, 1995, and that has not
           been completed before the effective date of this Act.

SECTION 3  Emergency clause.  Effective upon passage.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute changes the subchapter to which the bill applies in
order to insert the language of the bill in the most appropriate
location in the code.  The substitute also changes the bracketing
in the bill to clarify bill's applicability.  The substitute also
modifies the prospective clause in SECTION 2 of the bill.



SUMMARY OF COMMITTEE ACTION

H.B. 2489 was considered by the committee in a public hearing on
May 2, 1995.  

The following persons testified in favor of the bill:

           Representative Jerry Yost;
           Hal Lanham, representing himself and the Northwest
Travis County MUD #1;
           Jeff Lawlor, representing himself and the Northwest
           Coalition of Neighborhoods and the Mountain
           Neighborhood; and 
           Diane Spencer, representing herself and the Northwest
Travis County MUD #1.

The committee considered a complete substitute for the bill.  The
substitute was adopted without objection.

The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 5
ayes, 0 nays, 0 pnv, 4 absent.