By Eiland                                             H.B. No. 1424

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the imposition of a municipal sales and use tax and

 1-3     hotel occupancy tax in areas to be annexed by certain

 1-4     municipalities.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 43.0751, Local Government Code, is

 1-7     amended by adding Subsection (n) to read as follows:

 1-8           (n)  This subsection applies only to a municipality any

 1-9     portion of which is located in a county that has a population of

1-10     more than 200,000 and that borders the Gulf of Mexico and is

1-11     adjacent to a county with a population of more than 2.8 million.  A

1-12     municipality may impose within the boundaries of a district a

1-13     municipal sales and use tax authorized by Chapter 321, Tax Code, or

1-14     a municipal hotel occupancy tax authorized by Chapter 351, Tax

1-15     Code, that is imposed in the municipality if:

1-16                 (1)  the municipality has annexed the district for

1-17     limited purposes under this section; or

1-18                 (2)  following two public hearings on the matter, the

1-19     municipality and the district enter a written agreement providing

1-20     for the imposition of the tax or taxes.

1-21           SECTION 2.  The importance of this legislation and the

 2-1     crowded condition of the calendars in both houses create an

 2-2     emergency and an imperative public necessity that the

 2-3     constitutional rule requiring bills to be read on three several

 2-4     days in each house be suspended, and this rule is hereby suspended,

 2-5     and that this Act take effect and be in force from and after its

 2-6     passage, and it is so enacted.