By Bosse                                              H.B. No. 1929
         76R5524 SMJ-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the time period within which certain municipalities
 1-3     must pay a landowner or developer as a result of certain
 1-4     annexations; providing a penalty.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 43.0715, Local Government Code, is
 1-7     amended by amending Subsection (b) and adding Subsections (c) and
 1-8     (d) to read as follows:
 1-9           (b)  If a municipality with a population of less than 1.5
1-10     million annexes a special district for full or limited purposes and
1-11     the annexation precludes or impairs the ability of the district to
1-12     issue bonds, the municipality shall[, simultaneously with the
1-13     annexation,] pay in cash to the landowner or developer of the
1-14     district not later than  the day before the effective date of the
1-15     annexation a sum equal to all actual costs and expenses incurred by
1-16     the landowner or developer in connection with the  district that
1-17     the district has, in writing, agreed to pay and that would
1-18     otherwise have been eligible for reimbursement from bond proceeds
1-19     under the rules and requirements of the Texas Natural Resource
1-20     Conservation Commission as such rules and requirements exist on the
1-21     date of annexation.
1-22           (c)  A municipality that does not timely pay a sum as
1-23     required by Subsection (b) incurs a penalty, to be paid to the
1-24     landowner or developer, of:
 2-1                 (1)  six percent of the sum for the first month it
 2-2     fails to pay;
 2-3                 (2)  an additional one percent of the sum for each
 2-4     month or portion of a month that it fails to pay after the first
 2-5     month; and
 2-6                 (3)  a maximum of 12 percent of the sum if it fails to
 2-7     pay after six months.
 2-8           (d)  A sum that a municipality fails to timely pay as
 2-9     required by Subsection (b) accrues interest, to be paid to the
2-10     landowner or developer, at a rate of one percent for each month or
2-11     portion of a month that the municipality fails to pay.
2-12           SECTION 2.  (a)  This Act takes effect September 1, 1999.
2-13           (b)  The changes in law made by this Act apply only to a sum
2-14     that a municipality is required to pay under Section 43.0715, Local
2-15     Government Code, on or after September 1, 1999.
2-16           SECTION 3.  The importance of this legislation and the
2-17     crowded condition of the calendars in both houses create an
2-18     emergency and an imperative public necessity that the
2-19     constitutional rule requiring bills to be read on three several
2-20     days in each house be suspended, and this rule is hereby suspended.