Enrolled Bill Summary

Senate Bill 466	Senate Author:  Fraser
Effective:  9-1-05	House Sponsor:  Hill

            Senate Bill 466 amends the Local Government Code to extend the authority to create a municipal development district to any municipality.  The bill allows creation of such a district in all or part of a municipality, in all or part of the area within its extraterritorial jurisdiction, or in any combination of territory within the municipality and within its extraterritorial jurisdiction.  The bill amends the residency requirement for members of a district's board of directors to require a board member to reside in the municipality that created the district or the municipality's extraterritorial jurisdiction.

            The bill also creates a program under Section 52-a, Article III, Texas Constitution, making municipal development districts eligible for grants or loans that may be financed through the issue of voter-approved municipal bonds or other municipal obligations.