SLC C.S.H.B. 1394 75(R)BILL ANALYSIS LAND & RESOURCE MANAGEMENT C.S.H.B. 1394 By: Turner, Bob 4-13-97 Committee Report (Substituted) BACKGROUND Under current municipal annexation laws, it is possible for a city to annex property, often without consent of the property owner, and withhold important municipal services such as water and wastewater service for as long as 4 1/2 years after annexation and taxation of the property. PURPOSE HB 1394 intends to require certain municipalities to provide municipal services in a reasonable time frame. 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. 43.056 (a), (c), (e) and (k), Local Gov. Code, as follows: (a) States that municipality shall not require landowners in the annexed area to fund the capitol improvements necessary to provide municipal services to the area, except through utility impact fees authorized by Chapter 395, Local Gov. Code, unless otherwise agreed to by the landowner. (c) Defines "full municipal services". (e) States that a service plan may not require the creation of a political subdivision, require a landowner in the area to fund the capitol improvements necessary to provide municipal services, or provide fewer services or lower levels of services in the area. (k) Allows for municipalities to provide different levels of services to different annexed areas based on reasonable distinctions. However, this subsection may not be used to refuse water or wastewater services to any property within the annexed area, if the municipality provides such services to other parts of the municipality. SECTION 2. Amends Subchapter E, Chapter 43, Local Gov. Code, by adding Sec. 43.104 as follows: Sec. 43.104. ANNEXATION OF CERTAIN WATER AND WASTEWATER UTILITIES BY CERTAIN HOME-RULE MUNICIPALITIES. (a) States that a home rule municipality with a population of 450,000 or more may only annex property located within its ETJ and certified areas of a developer or investor owned water and or wastewater utility. (b) Provides that a municipality must notify the developer or investor owned water and or wastewater utility at least 180 days prior to the proposed annexation. (c) States the utilities options after it has received notice of the proposed annexation. (d) A utility's election under (c) is binding on a municipality if the municipality proceeds with the annexation. (e) States that if the municipality assumes the utility the negotiation and payment thereon must be made no later than 60 days before the proposed date for adoption of the ordinance providing for the annexation. (f) Allows for the municipality to make a counter-offer to the utility. (g) States that if the municipality and utility are unable to reach agreement on the purchase of the utility, the annexing municipality may use its powers of condemnation. SECTION 3. Shall apply to all municipal annexations for which the lawfully required public hearing is held after the effective date of this Act. SECTION 4. Exempts final judgments or pending litigation under the present law from the application of this bill. SECTION 5. Emergency clause. Effective date. COMPARISON OF ORIGINAL TO SUBSTITUTE CSHB 1394 does not amend Sec. 43.056(b), Local Gov. Code, where as the original act did make statutory changes to this subsection. CSHB 1394 amended the caption used in the original legislation for Sec. 43.104. CSHB 1394 allows home-rule municipality with a population of 450,000 to annex under Sec. 43.104. The original legislation set the population bracket at 500,000. CSHB 1394 adds new language in Sec. 43.104(d) that states, "A utility's election under (c) is binding on a municipality if the municipality proceeds with the annexation." The original legislation did not contain this language. The remainder of the subsections contained in the original legislation are contained in CSHB 1394, but have been relettered accordingly.