SRC-MAX, SLL S.B. 1791 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1791
By: Wentworth
Natural Resources
3-31-97
As Filed


DIGEST 

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

As proposed, S.B. 1791 provides regulations regarding the annexation of a
portion of certain municipal utility districts. 

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 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 wholesale wastewater service unless the district is providing
retail service to 80 percent or more of the equivalent wastewater
connection rights that the district has reserved in the municipality's
wastewater system for the district's customers.  Sets forth annexations to
which Subsection (b) does not apply. 

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.
  Effective date: upon passage.