By:  Nixon                                            S.B. No. 1805

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the adoption or increase of local sales and use taxes

 1-2     by a municipality or county for which previous elections adopting

 1-3     such taxes were invalid.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 321.101, Tax Code, is amended by adding

 1-6     Subsection (i) to read as follows:

 1-7           (i)  A municipality for which the adoption or increase of a

 1-8     sales and use tax approved by the voters in an election held after

 1-9     May 1, 1995, and before December 31, 1995, is invalid because the

1-10     election combined into a single proposition proposal for adopting

1-11     an economic development sales and use tax under Section 4B,

1-12     Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas

1-13     Civil Statutes), and an additional sales and use tax under

1-14     Subsection (b) may adopt or increase the sales and use tax

1-15     previously approved by the voters by ordinance or resolution of the

1-16     governing body of the municipality.  If the governing body of the

1-17     municipality adopts or increases the sales and use tax under this

1-18     subsection, the municipal secretary shall send to the comptroller

1-19     by certified or registered mail a certified copy of the ordinance

1-20     or resolution.  The tax takes effect on the first day of the month

1-21     following the expiration of the calendar quarter occurring after

1-22     the date on which the comptroller receives the ordinance or

1-23     resolution.

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

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

 2-3     emergency and an imperative public necessity that the

 2-4     constitutional rule requiring bills to be read on three several

 2-5     days in each house be suspended, and this rule is hereby suspended,

 2-6     and that this Act take effect and be in force from and after its

 2-7     passage, and it is so enacted.