HBA-CCH, MPM, CMT H.B. 693 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 693 By: Bosse Urban Affairs 2/19/2001 Introduced BACKGROUND AND PURPOSE Under current law, if any portion of a city with a sales tax of 8.25 percent is located in a county with a population of 750,000 or more, the city is prohibited from imposing a sales tax to benefit an industrial development corporation created under the Development Corporation Act of 1979. Baytown, Texas is at this maximum sales tax rate, and is therefore precluded from imposing additional sales taxes to benefit such a corporation. Current law does, however, authorize a city with a population of less than 10,000 that is located in more than two counties, one of which borders the Gulf of Mexico, to create a municipal development district and impose a sales tax to finance its development projects. The City of Baytown, which is located in Harris and Chambers counties, has requested that law be amended to allow any city located in more than one county to create a municipal development district. House Bill 693 makes current provisions for municipal development districts applicable to any city located in more than one county. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 693 amends the Local Government Code to modify the provisions for municipal development districts to apply only to a municipality that is located in more than one county, rather than a municipality with a population of less than 10,000 that is located in two counties, at least one of which borders on the Gulf of Mexico. The bill also authorizes the municipality, on the question of creating a municipal district, to provide for the district boundaries to conform automatically to any changes in the boundaries of the portion of the municipality included in the district. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.