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.