HBA-EVB H.B. 3809 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3809 By: Lewis, Ron Land & Resource Management 4/15/1999 Introduced BACKGROUND AND PURPOSE Currently, the extraterritorial jurisdiction (ETJ) of certain home-rule municipalities may extend across a navigable stream, as defined by Section 21.001 (Definitions), Natural Resources Code. H.B. 3809 limits the ETJ of certain home-rule municipalities, and provides a retroactive revenue-sharing agreement between municipalities, related to potential revenue loss associated with annexation. 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 B, Chapter 42, Local Government Code, by adding Section 42.026, as follows: Sec. 42.026. LIMITATION ON EXTRATERRITORIAL JURISDICTION OF CERTAIN MUNICIPALITIES. (a) Defines "navigable stream." (b) Provides that this section applies only to a home-rule municipality located in whole or in part in a county with a population of 240,000 or less. (c) Provides that the extraterritorial jurisdiction of the municipality does not include territory located outside the county in which a majority of the land area of the municipality is located, and separated from the municipality's corporate boundaries by a navigable stream. SECTION 2. Amends Subchapter Z, Chapter 43, Local Government Code, by adding Section 43.905, as follows: Sec. 43.905. REVENUE-SHARING AGREEMENT REQUIRED FOR CERTAIN ANNEXATIONS. (a) Defines "navigable stream." (b) Provides that this section applies only to a home-rule municipality that is located in whole or in part in a county with a population of 240,000 or less and whose corporate boundaries encompass an area acquired by annexation, located outside the county in which a majority of the land area of the municipality is located, and separated from the majority of the land area of the municipality by a navigable stream. (c) Requires a municipality described by Subsection (b) to enter into a revenue-sharing agreement relating to an area described by Subsection (b) with the municipality whose corporate boundaries are located in whole or in part in the county in which the area described by Subsection (b) is located, and nearest to the boundaries of the area described by Subsection (b). (d) Requires that the revenue-sharing agreement required by this section must provide that 50 percent of the revenue derived by the municipality described by Subsection (b) from the area described by Subsection (b) be transferred to the municipality described by Subsection (c). Provides that the transfer of revenue to the municipality described by Subsection (c) serves a public purpose by compensating the municipality for the loss of revenue the municipality potentially would have derived from the area if the municipality annexed the area at a future time. (e) Authorizes the transfer of revenue under a revenue-sharing agreement that includes an ad valorem property tax, a hotel occupancy tax, and a sales and use tax. SECTION 3. Makes application of Section 43.905 of this Act retroactive. SECTION 4. Emergency clause.