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.