SRC-TNM H.B. 1028 75(R)    BILL ANALYSIS


Senate Research CenterH.B. 1028
By: Krusee (Wentworth)
Intergovernmental Relations
5-10-97
Engrossed


DIGEST 

The 74th Legislature passed S.B. 1396, which created an alternative to
full-purpose annexation whereby municipal utility districts (MUDs) could,
by agreement, allow cities to collect sales tax in the MUD in lieu of
full-purpose annexation.  Within this legislation was a two-year
moratorium on municipalities annexing MUDs that were created before 1979.
This two-year annexation moratorium was included as an incentive to cities
to negotiate in good faith with MUDs.  H.B. 1028 would extend, by two
years, the moratorium on MUDs created before 1979 to September 1, 1999. 
 
PURPOSE

As proposed, H.B. 1028 outlines provisions regarding strategic partnership
agreements between certain local governments. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 43.0751(m), Local Government Code, to provide
that a municipality that may annex a municipal utility district (district)
for limited purposes to implement a strategic partnership agreement under
this section shall not annex for full purposes any territory within a
district created pursuant to a consent agreement with that municipality
executed before September 15, 1979.  Requires the prohibition on
annexation of any territory within a municipal utility district
established by this subsection to expire on September 1, 1999, rather than
1997, or on the date on or before which the municipality and any municipal
utility district may have separately agreed that annexation would not take
place, whichever is later. 

SECTION 2. Emergency clause.
  Effective date: upon passage.