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.
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