SLC C.S.S.B. 1791 75(R)BILL ANALYSIS


LAND & RESOURCE MANAGEMENT
C.S.S.B. 1791
By: Wentworth (Keel)
5-20-97
Committee Report (Substituted)


BACKGROUND 

Currently, a home-rule municipality may unilaterally annex a municipal
utility district lying within its extraterritorial jurisdiction so long as
the entire municipal utility district is annexed and the municipality
assumes all of the outstanding obligations of the district.  This bill
prevents a municipality from annexing a municipal utility district under
certain conditions. 

PURPOSE

CSSB 1791 provides regulations regarding the annexation of a portion of
certain municipal utility districts. 

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 Chapter 43D, Local Government Code, by adding Section
43.0725, as follows: 

Sec.  43.0725.  ANNEXATION OF AREAS OF CERTAIN MUNICIPAL UTILITY
 DISTRICTS.  Sets forth municipal utility districts to which this section
applies.  Prohibits a municipality, except as provided by Subsection (c),
from annexing any portion of a municipal utility district to which it
provides wastewater service unless the district is providing retail
service to 80 percent or more of the equivalent wastewater connection
rights that the municipality has allocated to the district under the
agreements described by Subsection (a) for the collection and transmission
of wastewater.  Sets forth conditions under which Subsection (b) does not
apply to an annexation. 

SECTION 2. Provides that the change in law made by this Act applies only
to an annexation for which the first hearing notice required by Section
43.052, Local Government Code, is published on or after January 1, 1997,
and that has not been completed before the effective date of this Act. 

SECTION 3. Emergency Clause. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

CSSB 1791 applies Sec. 43.0725 of the Local Government Code, as added by
this Act, to municipal utility districts that are specifically authorized
in the document containing the municipality's consent to creation of the
district to finance the construction of facilities necessary to connect to
the municipality's wastewater system.  The original legislation did not
contain this provision. 

CSSB 1791 prohibits a municipality, except as provided by Subsection (c),
from annexing before September 15, 1999 any portion of a municipal utility
district to which it provides wastewater service unless the district is
providing retail service to 80 percent or more of the equivalent
wastewater connection rights that the municipality has allocated to the
district under the agreements described by Subsection (a) for the
collection and transmission of wastewater.  The original legislation did
not  make reference to prohibiting annexation before September 15, 1999,
it simply prohibited certain annexations as set forth by this section. 

CSSB 1791 states that subsection (b) does not apply to an annexation if
the agreement described by subsection (a) contains a provision that, on
the effective date of this section, states that the execution of the
agreement begins the process of annexation.  CSSB 1791 inserted the
language to this provision that states, "contains a provision that, on the
effective date of this section," the original legislation did not contain
this language.