BILL ANALYSIS


                                                        S.B. 1375
                                                    By: Wentworth
                                                Natural Resources
                                                         04-21-95
                                       Committee Report (Amended)
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 district, 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 board of a 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's board.  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 date: upon passage.