BILL ANALYSIS S.B. 1375 By: Wentworth (Krusee) May 4, 1995 Committee Report (Unamended) BACKGROUND Prior to municipal annexation, areas within the extraterritorial jurisdiction (ETJ) of a municipality are subject to regulation by the related city to ensure planned municipal development. Usually all land within a municipal utility district is within the ETJ of one city, but sometimes a district may lie within the ETJ of two cities. When this occurs, parts of the district are subject to municipal regulatory requirements which may be conflicting. This creates an unclear situation as to which city has the power to annex the district since it is within the annexing domain of two cities. PURPOSE As proposed, S.B. 1375 authorizes a municipal utility district composed of noncontiguous areas contained in the extraterritorial jurisdiction of two municipalities to choose to be completely contained in the extraterritorial jurisdiction of one municipality. 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 54B, Water Code, by adding Section 54.0162, as follows: Sec. 54.0162. OPTION OF SELECTION BY DISTRICT COMPOSED OF NONCONTIGUOUS AREAS LOCATED IN THE EXTRATERRITORIAL JURISDICTION OF TWO MUNICIPALITIES. (a) Authorizes a municipal utility district (district) composed of noncontiguous areas contained in the extraterritorial jurisdiction (ETJ) of two municipalities to choose to be completely contained in the ETJ of one municipality selected by a resolution of the governing body (board) of the district if certain conditions are satisfied. (b) Authorizes another district that has a boundary contiguous to the district that has selected a municipality, and has a boundary contiguous to the selected municipality, to choose, by resolution of the district's board, to be wholly in the ETJ of the selected municipality, if a district selects a municipality under Subsection (a). Requires a copy of the resolution to be filed in the same manner as in Subsection (a)(6). (c) Requires the municipality not selected to release the area of the district from the municipality's ETJ on the effective date of the resolution presented to the municipality. Provides that the released area becomes part of the ETJ of the selected municipality. Provides that the released area is not subject to any ordinance of the municipality not selected by the district. (d) Provides that this section controls over any other law relating to the creation, application, or operation of the ETJ of a municipality. SECTION 2 Emergency clause. Effective upon passage. SUMMARY OF COMMITTEE ACTION S.B. 1375 was considered by the committee in a public hearing on May 2, 1995. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.