SRC-TNM S.B. 1799 75(R)BILL ANALYSIS Senate Research CenterS.B. 1799 By: Wentworth Intergovernmental Relations 5-6-97 Committee Report (Amended) DIGEST The 74th Legislature passed S.B. 1396, which created an alternative to full-purpose annexation whereby municipal utility districts (MUDs) could, by agreement, allow cities to collect sales tax in the MUD in lieu of full-purpose annexation. Within this legislation was a two-year moratorium on municipalities annexing MUDs that were created before 1979. This two-year annexation moratorium was included as an incentive to cities to negotiate in good faith with MUDs. S.B. 1799 would extend, by two years, the moratorium on MUDs created before 1979 to September 1, 1999. PURPOSE As proposed, S.B. 1799 outlines provisions regarding strategic partnership agreements between certain local governments. 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 Section 43.0751(m), Local Government Code, to provide that a municipality that may annex a district for limited purposes to implement a strategic partnership agreement under this section shall not annex for full purposes any territory within a district created pursuant to a consent agreement with that municipality executed before September 15, 1979. Requires the prohibition on annexation of any territory within a municipal utility district established by this subsection to expire on September 1, 1999, rather than 1997, or on the date on or before which the municipality and any municipal utility district may have separately agreed that annexation would not take place, whichever is later. SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE CHANGES Amendment 1. Page 1, line 11, amends text to strike "August 27, 1979" and inserts "September 15, 1979."