HBA-EVB, S.B. 535 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 535
By: Lindsay
Land & Resource Management
4/7/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, a municipality is not required to provide written notification
to each public school district affected by annexation. S.B. 535 requires
such notification. S.B. 535 also requires that notification to contain a
description of  the area in each school district to be affected by the
annexation, and a description of the financial impact on the school
district, including utility costs, and any proposal to reduce, abate, or
limit that impact. 

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 proposed to be annexed within the time period prescribed for
publishing the notice of the first hearing under Section 43.052 (Annexation
Hearing Requirements), Local Government Code. 

(b) Requires a notice to the school district to contain a description of
the area to be annexed, any potential financial impact on the district,
including changes in utility costs, and any proposal to abate, limit, or
reduce any financial impact. 

(c) Prohibits the municipality from proceeding with the annexation unless
the city provides the required notice. 

(d) Requires a municipality that has annexed any portion of an area after
December 1, 1996, and before September 1, 1999, in which a school district
has a facility to grant a variance from the municipality's building code
for that facility if the facility does not comply with the code. 

(e) Authorizes a municipality that, as a result of the annexation, begins
to provide utility services to a facility of a school district to 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 annexation. 

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.