HBA-ALS H.B. 3010 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3010 By: Crabb Land & Resource Management 4/5/1999 Introduced BACKGROUND AND PURPOSE Under current law, a municipality's annexation of an area may financially affect a school district located in the annexed area by increasing utility rates and by requiring compliance with city building codes. There is a concern that some annexed school districts may be unable to make appropriate yearly budget allowances due to these cost increases that come into effect during the middle of a school year. H.B. 3010 requires a municipality to provide written notification to each public school district located in an area the municipality proposes to annex. This bill requires the notice to contain information describing the area to be annexed, the financial impact on the district, and provisions to minimize the impact. In addition, this bill provides a transitional period related to utility rates and building code regulations in newly annexed districts. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter Z, Chapter 43, Local Government Code, by adding Section 43.905, as follows: Sec. 43.905. EFFECT OF ANNEXATION ON OPERATION OF SCHOOL DISTRICT. (a) Requires a municipality that proposes to annex an area to provide written notice of the proposed annexation to each public school district located in the area to be annexed within a specified time period. (b) Requires a notice to a public school district to contain a description of the area within the district to be annexed; the financial impact on the district as a result of the annexation, including any changes in utility costs; and any proposal the municipality has to abate, reduce, or limit any financial impact on the district. (c) Prohibits the municipality from proceeding with the annexation unless the city provides the required notice. (d) Requires a municipality that has annexed an area after December 1, 1996, and before September 1, 1999, in which a school district has a facility, to grant a variance to that facility from the municipality's building code for noncompliance with the code. (e) Provides that a municipality that provides utility services to a facility of a school district as a result of the annexation, may only charge the district for utility services at the same rate that the district was paying before the annexation or a lower municipal rate. (f) Provides that a rate set under Subsection (e) is effective until the beginning of the first school district fiscal year that begins after the 90th day following the effective date of the annexation. SECTION 2.Effective date: September 1, 1999. SECTION 3.Emergency clause.