SRC-JXG C.S.S.B. 535 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 535
76R8710 CAG-DBy: Lindsay
Intergovernmental Relations
3/18/1999
Committee Report (Substituted)


DIGEST 

Currently, the Humble Independent School District was annexed in the middle
of a fiscal year, which prohibited any financial planning to account for
increased utility rates and costs incurred related to compliance with the
City of Houston's building code requirements. C.S.S.B. 535 would require
written notification describing the area in the school district to be
affected by the annexation, and describing the financial impact on the
district, including utility costs, and any proposal to abate, reduce, or
limit the impact. 
 
PURPOSE

As proposed, C.S.S.B. 535  requires written notification describing the
area in a public school district to be affected by a municipal annexation,
and the financial impact on the 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 Chapter 43Z, Local Government Code, by adding Section
43.905, as follows: 

Sec. 43.905. EFFECT OF ANNEXATION ON OPERATION OF SCHOOL DISTRICT. Requires
a municipality that proposes to annex an area to provide written notice of
the proposed annexation to each public school district located in the area
proposed to be annexed within the time period prescribed for publishing the
notice of the first hearing under Section 43.05. Requires the notice to a
public school district to contain a description of the area to be annexed,
any financial impact, and any proposal to abate, reduce, or limit financial
impact on the district. Prohibits the municipality from proceeding with the
annexation, unless the city provides the required notice. Requires a
municipality that has annexed any portion of an area after December 1,
1996, and before September 1,1999, in which a school district has a
facility to grant a variance from the municipality's building code for that
facility, if the facility does not comply with the code. Authorizes a
municipality that, as a result of the annexation, begins to provide utility
services to a facility of a school district, to only charge the district
for utility services at the same rate that the district was paying before
the annexation, or a lower municipal rate. Provides that a rate set under
Subsection (e) is effective until the beginning of the first school
district fiscal year that begins after the 90th day following the effective
date of the annexation. 

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Adds Subsections (e) and (f), to Section 43.905, Local Government Code, to
authorize a municipality that, as a result of the annexation, begins to
provide utility services to a facility  of a school district, to only
charge the district for utility services at the same rate that the district
was paying before the annexation, or a lower municipal rate. Provides that
a rate set under Subsection (e) is effective until the beginning of the
first school district fiscal year that begins after the 90th day following
the effective date of the annexation.