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.