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

1-22     crowded condition of the calendars in both houses create an

1-23     emergency and an imperative public necessity that the

1-24     constitutional rule requiring bills to be read on three several

 2-1     days in each house be suspended, and this rule is hereby suspended,

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

 2-3     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1424 was passed by the House on March

         18, 1997, by the following vote:  Yeas 144, Nays 0, 1 present, not

         voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1424 was passed by the Senate on

         April 21, 1997, by the following vote:  Yeas 30, Nays 1.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor