SLC H.B. 1028 75(R)BILL ANALYSIS


LAND & RESOURCE MANAGEMENT
H.B. 1028
By: Krusee
4-3-97
Committee Report (Amended)



BACKGROUND 

During the 74th Legislature legislation was passed 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 the bill was a two-year
moratorium on municipalities annexing MUDs that were created before 1979.
Before 1979, there was no requirement the MUD residents to be informed
that they were located inside the extraterritorial jurisdiction (ETJ) of a
city and thus subject to annexation.  The two-year annexation moratorium
was included as an incentive to cities to negotiate in good faith with
MUDs.  The two-year timetable was specifically designed to allow the
legislature oversight of the process. 

PURPOSE

HB 1028 will extend the moratorium full-purpose annexation of MUDs created
before 1979, by two years to September 1, 1999.  The legislation would
continue the incentive of legislative oversight of the strategic
partnership process and allow MUDs the continued ability to negotiate with
cities on a level playing field. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sec. 43.0751(m), Local Government Code as follows:

 (m) This section extends the moratorium on full purpose annexation of
districts created before August 27, 1979 by two years to September 1,
1999, "or on the date on or before which the municipality and any district
may have separately agreed that annexation would not take place whichever
is later." 

SECTION 2. Emergency Clause.  



EXPLANATION OF AMENDMENTS

Committee Amendment No. 1  by:  B. Turner

This amendment extends the moratorium on full purpose annexation of
districts created before September 15, 1979.