1-1 By: Lindsay S.B. No. 535 1-2 (In the Senate - Filed February 16, 1999; February 17, 1999, 1-3 read first time and referred to Committee on Intergovernmental 1-4 Relations; March 18, 1999, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 5, Nays 0; 1-6 March 18, 1999, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 535 By: Lindsay 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the effect of a municipal annexation on a school 1-11 district located in an annexed area. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subchapter Z, Chapter 43, Local Government Code, 1-14 is amended by adding Section 43.905 to read as follows: 1-15 Sec. 43.905. EFFECT OF ANNEXATION ON OPERATION OF SCHOOL 1-16 DISTRICT. (a) A municipality that proposes to annex an area shall 1-17 provide written notice of the proposed annexation to each public 1-18 school district located in the area proposed to be annexed within 1-19 the time period prescribed for publishing the notice of the first 1-20 hearing under Section 43.052. 1-21 (b) A notice to a public school district shall contain a 1-22 description of: 1-23 (1) the area within the district proposed to be 1-24 annexed; 1-25 (2) any financial impact on the district resulting 1-26 from the annexation, including any changes in utility costs; and 1-27 (3) any proposal the municipality has to abate, 1-28 reduce, or limit any financial impact on the district. 1-29 (c) The municipality may not proceed with the annexation 1-30 unless the city provides the required notice. 1-31 (d) A municipality that has annexed any portion of an area 1-32 after December 1, 1996, and before September 1, 1999, in which a 1-33 school district has a facility shall grant a variance from the 1-34 municipality's building code for that facility if the facility does 1-35 not comply with the code. 1-36 (e) A municipality that, as a result of the annexation, 1-37 begins to provide utility services to a facility of a school 1-38 district may only charge the district for utility services at: 1-39 (1) the same rate that the district was paying before 1-40 the annexation; or 1-41 (2) a lower municipal rate. 1-42 (f) A rate set under Subsection (e) is effective until the 1-43 beginning of the first school district fiscal year that begins 1-44 after the 90th day following the effective date of the annexation. 1-45 SECTION 2. This Act takes effect September 1, 1999. 1-46 SECTION 3. The importance of this legislation and the 1-47 crowded condition of the calendars in both houses create an 1-48 emergency and an imperative public necessity that the 1-49 constitutional rule requiring bills to be read on three several 1-50 days in each house be suspended, and this rule is hereby suspended. 1-51 * * * * *