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.