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.