By:  Lindsay                                           S.B. No. 535
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the effect of a municipal annexation on a school
 1-2     district located in an annexed area.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter Z, Chapter 43, Local Government Code,
 1-5     is amended by adding Section 43.905 to read as follows:
 1-6           Sec. 43.905.  EFFECT OF ANNEXATION ON OPERATION OF SCHOOL
 1-7     DISTRICT.  (a)  A municipality that proposes to annex an area shall
 1-8     provide written notice of the proposed annexation to each public
 1-9     school district located in the area proposed to be annexed within
1-10     the time period prescribed for publishing the notice of the first
1-11     hearing under Section 43.052.
1-12           (b)  A notice to a public school district shall contain a
1-13     description of:
1-14                 (1)  the area within the district proposed to be
1-15     annexed;
1-16                 (2)  any financial impact on the district resulting
1-17     from the annexation, including any changes in utility costs; and
1-18                 (3)  any proposal the municipality has to abate,
1-19     reduce, or limit any financial impact on the district.
1-20           (c)  The municipality may not proceed with the annexation
1-21     unless the city provides the required notice.
1-22           (d)  A municipality that has annexed any portion of an area
1-23     after December 1, 1996, and before September 1, 1999, in which a
1-24     school district has a facility shall grant a variance from the
 2-1     municipality's building code for that facility if the facility does
 2-2     not comply with the code.
 2-3           (e)  A municipality that, as a result of the annexation,
 2-4     begins to provide utility services to a facility of a school
 2-5     district may only charge the district for utility services at:
 2-6                 (1)  the same rate that the district was paying before
 2-7     the annexation; or
 2-8                 (2)  a lower municipal rate.
 2-9           (f)  A rate set under Subsection (e) is effective until the
2-10     beginning of the first school district fiscal year that begins
2-11     after the 90th day following the effective date of the annexation.
2-12           SECTION 2.  This Act takes effect September 1, 1999.
2-13           SECTION 3.  The importance of this legislation and the
2-14     crowded condition of the calendars in both houses create an
2-15     emergency and an imperative public necessity that the
2-16     constitutional rule requiring bills to be read on three several
2-17     days in each house be suspended, and this rule is hereby suspended.