By Wentworth S.B. No. 421 Substitute the following for S.B. No. 421: By Krusee C.S.S.B. No. 421 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the transfer of extraterritorial jurisdiction between 1-3 certain municipalities. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Chapter 42, Local Government Code, 1-6 is amended by adding Section 42.024 to read as follows: 1-7 Sec. 42.024. TRANSFER OF EXTRATERRITORIAL JURISDICTION 1-8 BETWEEN CERTAIN MUNICIPALITIES. (a) In this section: 1-9 (1) "Adopting municipality" means a home-rule 1-10 municipality with a population of less than 25,000 that purchases 1-11 and appropriates raw water for its water utility through a 1-12 transbasin diversion permit from one or two river authorities in 1-13 which the municipality has territory. 1-14 (2) "Releasing municipality" means a home-rule 1-15 municipality with a population of more than 450,000 that owns an 1-16 electric utility. 1-17 (b) The governing body of an adopting municipality may by 1-18 resolution include in its extraterritorial jurisdiction an area 1-19 that is in the extraterritorial jurisdiction of a releasing 1-20 municipality if: 1-21 (1) the releasing municipality does not provide water, 1-22 sewer services, and electricity to the released area; 1-23 (2) the owners of a majority of the land within the 1-24 released area request that the adopting municipality include in its 2-1 extraterritorial jurisdiction the released area; 2-2 (3) the released area is: 2-3 (A) adjacent to the territory of the adopting 2-4 municipality; 2-5 (B) wholly within a county in which both 2-6 municipalities have territory; and 2-7 (C) located in the county in which the adopting 2-8 municipality is located and either (i) north of the south bank of a 2-9 branch of a creek in which the adopting municipality discharges 2-10 wastewater pursuant to a permit issued by the Texas Natural 2-11 Resource Conservation Commission or its predecessor agency prior to 2-12 the effective date of this section and west of the confluence of 2-13 such branch of that creek with a northern branch of that creek, or 2-14 (ii) abutting that creek and described in an amendment to a water 2-15 sale contract between the adopting municipality and a river 2-16 authority, if by September 1, 1996, the releasing municipality does 2-17 not enter into a contract with the owners of such abutting tract to 2-18 supply water and wastewater service to such abutting tract; 2-19 (4) the adopting municipality adopts ordinances or 2-20 regulations within the released area for water quality standards 2-21 relating to the control or abatement of water pollution that are in 2-22 conformity with those of the Texas Natural Resource Conservation 2-23 Commission applicable to the released area on January 1, 1995; and 2-24 (5) the adopting municipality has adopted a service 2-25 plan to provide water and sewer service to the area acceptable to 2-26 the owners of a majority of the land within the released area. 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 all or part of a tract of land under the control of 5-11 the same ownership has been or becomes split between the 5-12 extraterritorial jurisdiction of a municipality subject to this 5-13 section and the jurisdiction of another municipality or is land 5-14 described in Subsection (b)(3)(C), then the authority granted under 5-15 Chapter 212 resides with the municipality selected by the owner of 5-16 the property through petition to that municipality. 5-17 (f) Nothing in this section requires the releasing 5-18 municipality to continue to participate in a regional wastewater 5-19 treatment plant providing service, or to provide new services, to 5-20 any territory within the released area. 5-21 (g) This section controls over any conflicting provision of 5-22 this subchapter. 5-23 SECTION 2. If any provision, section, sentence, clause, or 5-24 phrase of this Act, or the application of same to any person or set 5-25 of circumstances is for any reason held to be unconstitutional, 5-26 void, invalid, or for any reason unenforceable, the validity of the 5-27 remaining portions of this Act or the application to such other 6-1 persons or sets of circumstances shall not be affected hereby, it 6-2 being the intent of the legislature in adopting this Act that no 6-3 portion hereof or provision contained herein shall become 6-4 inoperative or fail by reason of any unconstitutionality or 6-5 invalidity of any other portion or provision. 6-6 SECTION 3. The importance of this legislation and the 6-7 crowded condition of the calendars in both houses create an 6-8 emergency and an imperative public necessity that the 6-9 constitutional rule requiring bills to be read on three several 6-10 days in each house be suspended, and this rule is hereby suspended, 6-11 and that this Act take effect and be in force from and after its 6-12 passage, and it is so enacted.