S.B. No. 421
                                        AN ACT
    1-1  relating to the transfer of extraterritorial jurisdiction between
    1-2  certain municipalities.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter B, Chapter 42, Local Government Code,
    1-5  is amended by adding Section 42.024 to read as follows:
    1-6        Sec. 42.024.  TRANSFER OF EXTRATERRITORIAL JURISDICTION
    1-7  BETWEEN CERTAIN MUNICIPALITIES.  (a)  In this section:
    1-8              (1)  "Adopting municipality" means a home-rule
    1-9  municipality with a population of less than 25,000 that purchases
   1-10  and appropriates raw water for its water utility through a
   1-11  transbasin diversion permit from one or two river authorities in
   1-12  which the municipality has territory.
   1-13              (2)  "Releasing municipality" means a home-rule
   1-14  municipality with a population of more than 450,000 that owns an
   1-15  electric utility, that has a charter provision allowing for
   1-16  limited-purpose annexation, and that has annexed territory for a
   1-17  limited purpose.
   1-18        (b)  The governing body of an adopting municipality may by
   1-19  resolution include in its extraterritorial jurisdiction an area
   1-20  that is in the extraterritorial jurisdiction of a releasing
   1-21  municipality if:
   1-22              (1)  the releasing municipality does not provide water,
   1-23  sewer services, and electricity to the released area;
   1-24              (2)  the owners of a majority of the land within the
    2-1  released area request that the adopting municipality include in its
    2-2  extraterritorial jurisdiction the released area;
    2-3              (3)  the released area is:
    2-4                    (A)  adjacent to the territory of the adopting
    2-5  municipality;
    2-6                    (B)  wholly within a county in which both
    2-7  municipalities have territory; and
    2-8                    (C)  located in one or more school districts,
    2-9  each of which has the majority of its territory outside the
   2-10  territory of the releasing municipality;
   2-11              (4)  the adopting municipality adopts ordinances or
   2-12  regulations within the released area for water quality standards
   2-13  relating to the control or abatement of water pollution that are in
   2-14  conformity with those of the Texas Natural Resource Conservation
   2-15  Commission applicable to the released area on January 1, 1995;
   2-16              (5)  the adopting municipality has adopted a service
   2-17  plan to provide water and sewer service to the area acceptable to
   2-18  the owners of a majority of the land within the released area; and
   2-19              (6)  the size of the released area does not exceed the
   2-20  difference between the total area within the extraterritorial
   2-21  jurisdiction of the adopting municipality, exclusive of the
   2-22  extraterritorial jurisdiction of the releasing municipality, on the
   2-23  date the resolution was adopted under this subsection, as
   2-24  determined by Section 42.021, and the total area within the
   2-25  adopting municipality's extraterritorial jurisdiction on the date
   2-26  of the resolution.
   2-27        (c)(1)  The service plan under Subsection (b)(5) shall
    3-1  include an assessment of the availability and feasibility of
    3-2  participation in any regional facility permitted by the Texas
    3-3  Natural Resource Conservation Commission in which the releasing
    3-4  municipality is a participant and had plans to provide service to
    3-5  the released area.  The plan for regional service shall include:
    3-6                    (A)  proposed dates for providing sewer service
    3-7  through the regional facility;
    3-8                    (B)  terms of financial participation to provide
    3-9  sewer service to the released area, including rates proposed for
   3-10  service sufficient to reimburse the regional participants over a
   3-11  reasonable time for any expenditures associated with that portion
   3-12  of the regional facility designed or constructed to serve the
   3-13  released area as of January 1, 1993; and
   3-14                    (C)  participation by the adopting municipality
   3-15  in governance of the regional facility based on the percentage of
   3-16  land to be served by the regional facility in the released area
   3-17  compared to the total land area to be served by the regional
   3-18  facility.
   3-19              (2)  The adopting municipality shall deliver a copy of
   3-20  the service plan to the releasing municipality and any other
   3-21  participant in any regional facility described in this subsection
   3-22  at least 30 days before the resolution to assume extraterritorial
   3-23  jurisdiction.  The releasing municipality and any other participant
   3-24  in any regional facility described in this subsection by resolution
   3-25  shall, within 30 days of delivery of the service plan, either
   3-26  accept that portion of the service plan related to participation by
   3-27  the adopting municipality in the regional facility or propose
    4-1  alternative terms of participation.
    4-2              (3)  If the adopting municipality, the releasing
    4-3  municipality, and any other participant in any regional facility
    4-4  described in this subsection fail to reach agreement on the service
    4-5  plan within 60 days after the service plan is delivered, any
    4-6  municipality that is a participant in the regional facility or any
    4-7  owner of land within the area to be released may appeal the matter
    4-8  to the Texas Natural Resource Conservation Commission.  The Texas
    4-9  Natural Resource Conservation Commission shall, in its resolution
   4-10  of any differences between proposals submitted for review in this
   4-11  subsection, use a cost-of-service allocation methodology which
   4-12  treats each service unit in the regional facility equally, with any
   4-13  variance in rates to be based only on differences in costs based on
   4-14  the time service is provided to an area served by the regional
   4-15  facility.  The Texas Natural Resource Conservation Commission may
   4-16  allow the adopting municipality, the releasing municipality, or any
   4-17  other participant in any regional facility described in this
   4-18  subsection to withdraw from participation in the regional facility
   4-19  on a showing of undue financial hardship.
   4-20              (4)  A decision by the Texas Natural Resource
   4-21  Conservation Commission under this subsection is not subject to
   4-22  judicial review, and any costs associated with the commission's
   4-23  review shall be assessed to the parties to the decision in
   4-24  proportion to the percentage of land served by the regional
   4-25  facility subject to review in the jurisdiction of each party.
   4-26              (5)  The releasing municipality shall not, prior to
   4-27  January 1, 1997, discontinue or terminate any interlocal agreement,
    5-1  contract, or commitment relating to water or sewer service that it
    5-2  has as of January 1, 1995, with the adopting municipality without
    5-3  the consent of the adopting municipality.
    5-4        (d)  On the date the adopting municipality delivers a copy of
    5-5  the resolution under Subsection (b) to the municipal clerk of the
    5-6  releasing municipality, the released area shall be included in the
    5-7  extraterritorial jurisdiction of the adopting municipality and
    5-8  excluded from the extraterritorial jurisdiction of the releasing
    5-9  municipality.
   5-10        (e)  If any part of a tract of land, owned either in fee
   5-11  simple or under common control or undivided ownership, was or
   5-12  becomes split, before or after the dedication or deed of a portion
   5-13  of the land for a public purpose, between the extraterritorial
   5-14  jurisdiction of a releasing municipality and the jurisdiction of
   5-15  another municipality, or is land described in Subsection (b)(3)(C),
   5-16  the authority to act under Chapter 212 and the authority to
   5-17  regulate development and building with respect to the tract of land
   5-18  is, on the request of the owner to the municipality, with the
   5-19  municipality selected by the owner of the tract of land.  The
   5-20  municipality selected under this subsection may also provide or
   5-21  authorize another person or entity to provide municipal services to
   5-22  land subject to this subsection.
   5-23        (f)  Nothing in this section requires the releasing
   5-24  municipality to continue to participate in a regional wastewater
   5-25  treatment plant providing service, or to provide new services, to
   5-26  any territory within the released area.
   5-27        (g)  This section controls over any conflicting provision of
    6-1  this subchapter.
    6-2        SECTION 2.  If any provision, section, sentence, clause, or
    6-3  phrase of this Act, or the application of same to any person or set
    6-4  of circumstances is for any reason held to be unconstitutional,
    6-5  void, invalid, or for any reason unenforceable, the validity of the
    6-6  remaining portions of this Act or the application to such other
    6-7  persons or sets of circumstances shall not be affected hereby, it
    6-8  being the intent of the legislature in adopting this Act that no
    6-9  portion hereof or provision contained herein shall become
   6-10  inoperative or fail by reason of any unconstitutionality or
   6-11  invalidity of any other portion or provision.
   6-12        SECTION 3.  The importance of this legislation and the
   6-13  crowded condition of the calendars in both houses create an
   6-14  emergency and an imperative public necessity that the
   6-15  constitutional rule requiring bills to be read on three several
   6-16  days in each house be suspended, and this rule is hereby suspended,
   6-17  and that this Act take effect and be in force from and after its
   6-18  passage, and it is so enacted.