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.