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.