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


Senate Research CenterC.S.S.B. 1791
By: Wentworth
Natural Resources
4-17-97
Committee Report (Substituted)


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, C.S.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 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.
  Effective date: upon passage.

SUMMARY OF COMMITTEE CHANGES

SECTION 1. 

Amends Chapter 43D, Local Government Code, by adding Section 43.0725, to
provide that this section applies only to a municipal district created by
an agreement with a municipality under Section 54.016, Water Code,
executed before January 1, 1997, that receives wastewater, rather than
wholesale wastewater, from the municipality under the agreement and one or
more subsequent wastewater agreements between the municipality and the
district or developers of the districts.  Prohibits a municipality from
annexing portions of the municipal utility district unless the district is
providing a certain level of service that the municipality has allocated
to the district under the agreements described by Subsection (a)  for the
collection and transmission of wastewater.