1-1     By:  Eiland (Senate Sponsor - Patterson)              H.B. No. 1424

 1-2           (In the Senate - Received from the House March 19, 1997;

 1-3     March 24, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; April 17, 1997, reported favorably by

 1-5     the following vote:  Yeas 9, Nays 1; April 17, 1997, sent to

 1-6     printer.)

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the imposition of a municipal sales and use tax and

1-10     hotel occupancy tax in areas to be annexed by certain

1-11     municipalities.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Section 43.0751, Local Government Code, is

1-14     amended by adding Subsection (n) to read as follows:

1-15           (n)  This subsection applies only to a municipality any

1-16     portion of which is located in a county that has a population of

1-17     more than 200,000 and that borders the Gulf of Mexico and is

1-18     adjacent to a county with a population of more than 2.8 million.  A

1-19     municipality may impose within the boundaries of a district a

1-20     municipal sales and use tax authorized by Chapter 321, Tax Code, or

1-21     a municipal hotel occupancy tax authorized by Chapter 351, Tax

1-22     Code, that is imposed in the municipality if:

1-23                 (1)  the municipality has annexed the district for

1-24     limited purposes under this section; or

1-25                 (2)  following two public hearings on the matter, the

1-26     municipality and the district enter a written agreement providing

1-27     for the imposition of the tax or taxes.

1-28           SECTION 2.  The importance of this legislation and the

1-29     crowded condition of the calendars in both houses create an

1-30     emergency and an imperative public necessity that the

1-31     constitutional rule requiring bills to be read on three several

1-32     days in each house be suspended, and this rule is hereby suspended,

1-33     and that this Act take effect and be in force from and after its

1-34     passage, and it is so enacted.

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