BILL ANALYSIS



S.B. 1376
By: Wentworth (Yost)
May 13, 1995
Committee Report (Unamended)


BACKGROUND

Currently, a home-rule municipality may unilaterally annex a
municipal utility district (MUD) lying within its extraterritorial
jurisdiction so long as the entire MUD is annexed and the
municipality assumes all of the MUD's debt.

PURPOSE

As proposed, this bill outlines the conditions under which certain
municipalities may annex certain MUDs.

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 43D, Local Government Code, by adding
           Section 43.0725, as follows:

           Sec. 43.0725.  ANNEXATION OF AREAS IN CERTAIN MUNICIPAL
           UTILITY DISTRICTS.  (a)  Provides that this section
           applies only to a home-rule municipality that has a
           population of more than 400,000, has a charter provision
           allowing limited-purpose annexation, and has disannexed
           territory that was annexed for a limited purpose.

           (b)  Provides that a municipality may annex an area
           located in a MUD that is composed of three or more non-contiguous tracts and that was created prior to August
           27, 1979, only if the MUD is providing retail service
           to 75 percent or more of the equivalent wastewater
           connection rights that the district has reserved in the
           municipality's wastewater system for the district's
           retail customers.

       SECTION 2    Makes application of this Act prospective beginning
                    January 1, 1995.

SECTION 3  Emergency clause.
           Effective upon passage.

SUMMARY OF COMMITTEE ACTION

S.B. 1376 was considered by the committee in a formal meeting on
May 12, 1995.

The bill was reported favorably without amendment, with the
recommendation that it do pass and be printed, by a record vote of
8 ayes, 0 nays, 0 pnv, 1 absent.