SRC-PNG S.B. 262 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 262
By: Brown
Natural Resources
2/22/1999
As Filed


DIGEST 

Under current law, when a municipality with a population of less than 1.5
million annexes a water district, including a municipal utility district
(MUD), the municipality must pay any amounts owed to developers who paid
for installing water and wastewater systems in the district.  Upon
annexation, the city becomes the owner of the utility system; therefore,
the city must make reimbursement payments to developers "simultaneously"
with the annexation.  This bill requires the annexing municipality to pay
utility reimbursements to developers "prior to" the annexation of a
district.  In addition, the bill provides for the imposition of penalties
and interest on reimbursement payments that are delinquent on the effective
date of the bill. 

PURPOSE

As proposed, S.B. 262 reimburses landowners or developers prior to
annexation of a water-related special district. 

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 43.0715, Local Government Code, to define
"delinquent sum." Requires certain municipalities to pay certain costs and
expenses incurred by the landowner or developer in cash prior to
annexation, rather than simultaneously with the annexation.  Establishes
that a delinquent payment by the municipality incurs a certain penalty.
Provides a higher penalty for a delinquent payment after a certain date.
Provides that the delinquent payment also accrues interest at a certain
rate.  Makes a nonsubstantive change. 

SECTION 2. Provides that the changes in law made by this Act apply to any
sum that is delinquent on the effective date of this Act. 

SECTION 3. Emergency clause.
  Effective date: upon passage.