BILL ANALYSIS



C.S.S.B. 421
By: Wentworth (Krusee)
04-12-95
Committee Report (Substituted)


BACKGROUND

Certain home-rule municipalities, having a population over 450,000
and operating a city-owned electric utility, included tracts of
land within their extraterritorial jurisdiction (ETJ) without being
able to provide water and sewer service to such areas.  Although
these municipalities are unable or unwilling to provide such
service, they have refused to release such areas from their ETJ,
which effectively prevents the areas from obtaining needed services
from certain adjacent municipalities capable of providing these
services.  A companion bill, H.B. 1016, was heard and left pending
before the Land and Resource Management Committee of the House.

PURPOSE

This legislation provides for the transfer of certain narrowly
defined areas from the ETJ of certain municipalities which
currently provide no water, sewer or electrical services to such
defined areas, to the ETJ of certain municipalities adjacent to
such defined areas, which have adopted a service plan to provide
water and sewer service to such areas.

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 B, Chapter 42, Local Government Code,
           by adding Section 42.024.

           (a) Defines the adopting and releasing municipalities.

           (b) Defines where the area must be located and what
           conditions must exist for the area to be eligible for
           transfer.  Also states that the adopting municipality
           must adopt water pollution control ordinances and a
           water and sewer service plan in the area to be adopted.

           (c) Provides that the service plan shall include an
           assessment of whether participation in any regional
           facility is available and feasible and terms of
           participation, including reimbursement of expenditures
           associated with the regional facility.  Provides for
           resolution of any disagreements by the Texas Natural
           Resource Conservation Commission.  Prohibits the
           releasing municipality from discontinuing any existing
           service agreement with the adopting municipality prior
           to January 1, 1995.

           (d) States when the transfer takes place.

           (e) Provides that if land under the control of the same
           ownership is split between the ETJ of a municipality
           subject to this section and the jurisdiction of another
           municipality, the authority granted under Chapter 212,
           Local Government Code, is with the municipality selected
           by the land owner.


           (f) Specifies that the bill does not require the
           releasing municipality to participate in regional
           wastewater facilities servicing, or to provide new
           services to, the released area.

           (g) Specifies that the provisions of the bill control
           over other provisions of Subchapter B, Chapter 42, Local
           Government Code.  

SECTION 2  Severability provision.  States that no part of the bill
           shall become inoperative by reason of
           unconstitutionality of any other portion of the bill.

SECTION 3  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1  (a) The substitute changes the maximum population of the
           adopting municipality from 15,000 to 25,000.

           (c) The substitute changes the provisions of the bill
           pertaining to the service plan for water and sewer
           service to be adopted by the adopting municipality to
           specify that the service plan shall include an
           assessment of whether participation in any regional
           facility is available and feasible and terms of
           participation, including reimbursement of expenditures
           associated with the regional facility; to provide for
           resolution of any disagreements by the Texas Natural
           Resource Conservation Commission; and to prohibit the
           releasing municipality from discontinuing any existing
           service agreement with the adopting municipality prior
           to January 1, 1995.

           (d) The substitute clarifies that the transferred area
           is released from the ETJ of the releasing municipality
           on the same date it is included in the ETJ of the
           adopting municipality.

           (e) The substitute changes this subsection to provide
           that if land under the control of the same ownership is
           split between the ETJ of a municipality subject to this
           section and the jurisdiction of another municipality,
           the authority granted under Chapter 212, Local
           Government Code, is with the municipality selected by
           the land owner.

           (f) The substitute adds this subsection, which specifies
           that the bill does not require the releasing
           municipality to participate in regional wastewater
           facilities servicing, or to provide new services to, the
           released area.

           (g) The substitute adds this subsection, which specifies
           that the bill controls over Subchapter B, Chapter 42,
           Local Government Code.  

SECTION 2  The substitute changes this section to set forth a
           severability provision.

SECTION 3  Emergency clause.  The substitute renumbers this section
           from 2 to 3.

SUMMARY OF COMMITTEE ACTION

S.B. 421 was considered in a public hearing on April 11, 1995.

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, by a record vote of
5 ayes, 0 nays, 0 pnv, 4 absent.