HBA-ALS H.B. 1929 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1929
By: Bosse
Land & Resource Management
3/29/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, if a municipality with a population of less than 1.5
million annexes a water district, including a municipal utility district,
the municipality is required to reimburse a landowner or developer for the
costs of installing water and wastewater systems in the district. Such
reimbursement must occur simultaneously with annexation.  H.B. 1929 changes
the date on which a municipality must pay a reimbursement to no later than
the day before the effective date of the annexation.  This bill also
imposes penalties and interest on reimbursement payments that are not
timely paid. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 43.0715, Local Government Code, by amending
Subsection (b) and adding Subsections (c) and (d), as follows: 

(b) Requires a municipality having a specified population, if the
municipality annexes a special district for full or limited purposes and
the annexation precludes or impairs the ability of the district, to issue
bonds, to pay the landowner or district developer in cash a specified sum,
no later than the day before the effective date of the annexation, rather
than simultaneously with the annexation. 

(c) Provides that a municipality that does not timely pay the sum required
under Subsection (b) incurs a specified penalty which is to be paid to the
landowner or developer. 

(d) Provides that a sum not timely paid under Subsection (b) accrues
interest at a specified rate and is to be paid to the landowner or
developer. 

SECTION 2.Effective date: September 1, 1999. 
  Makes application of this Act prospective.

SECTION 3.Emergency clause.