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.