BILL ANALYSIS



H.B. 2681
By: Krusee
April 19, 1995
Committee Report (Unamended)


BACKGROUND

Prior to annexation, areas within the extraterritorial jurisdiction
(ETJ) of cities are subject to regulation by the related cities to
ensure planned and coordinated municipal development.  When
municipal utility districts (MUDs) are involved in annexation, all
land within a district must be taken by a single annexing city. 
Usually all land within a MUD is within the ETJ of a single city. 
In the rare circumstance where a district lies within the ETJ of
two cities, obvious problems occur.  First, it is unclear which
city has the power to annex the district since part of the district
is within the exclusive annexation domain of another city.  Second,
prior to annexation, parts of the district are subject to different
municipal regulatory requirements which may be conflicting. 

PURPOSE

This legislation establishes a method for municipal utility
districts, with noncontiguous parts located in the ETJ of two
cities, to become part of the ETJ of a single city.  The bill also
provides for participation by districts located between districts
acting under the bill and the selected cities in order to promote
contiguous municipal boundaries.

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 Chapter 54 of the Water code by adding section
           54.0162.

           (a) Establishes conditions whereby a MUD contained
               in two ETJs may choose by resolution of the
               governing body of the district to be contained
               in the ETJ of one municipality.
           (b) Allows another MUD with a contiguous boundary
               to a MUD that has selected a municipality and
               which has a contiguous boundary to the
               selected municipality to choose to be
               contained in the selected municipality.
           (c) Requires the governing body of the
               municipality not selected to release the MUD
               from its ETJ on the effective date of the
               resolution presented to the releasing
               municipality.  Establishes that the released
               area is a part of the ETJ of the selected
               municipality and is not subject to any
               ordinance of the releasing municipality.
           (d) Confirms that this section controls over any
               other law relating to ETJs of municipalities. 

SECTION 2  Emergency clause.


SUMMARY OF COMMITTEE ACTION

H.B. 2681 was considered by the committee in a public hearing on
April 18, 1995.

The following person testified in favor of the bill:

           Gerry Cheney, representing himself.

The following person testified against the bill:

           Michael Erdmann, representing the City of Austin Water
           and Wastewater Utility.

The following person testified neutrally on the bill:

           James Vickrey, representing himself and the Brushy Creek
           MUD.

The bill was reported favorably without amendment, with the
recommendation that it do pass and be printed, by a record vote of
6 ayes, 0 nays, 0 pnv, 3 absent.