BILL ANALYSIS


                                                    C.S.S.B. 1376
                                                    By: Wentworth
                                      Intergovernmental Relations
                                                          4-27-95
                                   Committee Report (Substituted)
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, C.S.S.B. 1376 authorizes the annexation of areas that
have a population of more than 400,000 and are located within
certain municipal utility districts.

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 WITHIN 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)  Authorizes a municipality to annex an area located in
       a municipal utility district only if the district is
       providing retail service to 80 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 date:  upon passage.