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.