By:  Brown                                             S.B. No. 262
         99S0157/1                           
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the reimbursement of landowners or developers prior to
 1-2     annexation of a water-related special district.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 43.0715, Local Government Code, is
 1-5     amended to read as follows:
 1-6           Sec. 43.0715.  Annexation of Water-Related Special District:
 1-7     Reimbursement of Landowner or Developer; Continuation of District
 1-8     and Taxing Authority.  (a)  In this section:
 1-9                 (1)  "Special[, "special] district" means a political
1-10     subdivision one purpose of which is to supply fresh water for
1-11     domestic or commercial use or to furnish sanitary sewer services or
1-12     drainage.
1-13                 (2)  "Delinquent sum" means the sum a municipality has
1-14     failed to timely pay to a landowner or developer under Subsection
1-15     (b).
1-16           (b)  If a municipality with a population of less than 1.5
1-17     million annexes a special district for full or limited purposes and
1-18     the annexation precludes or impairs the ability of the district to
1-19     issue bonds, the municipality shall, prior to [simultaneously with]
1-20     the annexation, pay in cash to the landowner or developer of the
1-21     district a sum equal to all actual costs and expenses incurred by
1-22     the landowner or developer in connection with the district that the
1-23     district has, in writing, agreed to pay and that would otherwise
1-24     have been eligible for reimbursement from bond proceeds under the
 2-1     rules and requirements of the Texas Natural Resource Conservation
 2-2     Commission as such rules and requirements exist on the date of
 2-3     annexation.
 2-4           (c)  A delinquent sum incurs a penalty of six percent of the
 2-5     amount of the sum for the first calendar month it is delinquent
 2-6     plus one percent for each additional month or portion of a month
 2-7     the sum remains unpaid.  A sum that is delinquent for more than six
 2-8     calendar months incurs a total penalty of 12 percent of the amount
 2-9     of the delinquent sum without regard to the number of months the
2-10     sum has been delinquent.  In addition to the penalty, a delinquent
2-11     sum accrues interest at a rate of one percent for each month or
2-12     portion of a month the sum remains delinquent.
2-13           SECTION 2.  The changes in law made by this Act in amending
2-14     Subsection (a) and adding Subsection (c), Section 43.0715, Local
2-15     Government Code, apply to any sum that is delinquent on the
2-16     effective date of this Act.
2-17           SECTION 3.  The importance of this legislation and the
2-18     crowded condition of the calendars in both houses create an
2-19     emergency and an imperative public necessity that the
2-20     constitutional rule requiring bills to be read on three several
2-21     days in each house be suspended, and this rule is hereby suspended,
2-22     and that this Act take effect and be in force from and after its
2-23     passage, and it is so enacted.