By Bosse                                               H.B. No. 693
         77R3486 ATP-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, powers, and boundaries of certain
 1-3     municipal development districts.
 1-5           SECTION 1. Section 377.002, Local Government Code, is amended
 1-6     to read as follows:
 1-7           Sec. 377.002.  APPLICABILITY [APPLICATION]. This chapter
 1-8     applies only to a municipality [with a population of less than
 1-9     10,000] that is located in more than one county [two counties, at
1-10     least one of which borders the Gulf of Mexico].
1-11           SECTION 2. Section 377.021, Local Government Code, is amended
1-12     by amending Subsections (a)  and (c) and adding Subsection (g) to
1-13     read as follows:
1-14           (a)  A municipality may call an election on the question of
1-15     creating a municipal development district under this chapter to
1-16     plan, acquire, establish, develop, construct, or renovate one or
1-17     more development projects beneficial to [in] the district.
1-18           (c)  The ballot at an election held under this section must
1-19     be printed to permit voting for or against the proposition:
1-20     "Authorizing the creation of the ____ Municipal Development
1-21     District (insert name of district) and the imposition of a sales
1-22     and use tax at the rate of ____ of one percent (insert one-eighth,
1-23     one-fourth, three-eighths, or one-half, as appropriate) for the
1-24     purpose of financing development projects beneficial to [in] the
 2-1     district."
 2-2           (g)  In the order calling the election, the municipality may
 2-3     provide for the district boundaries to conform automatically to any
 2-4     changes in the boundaries of the portion of the municipality
 2-5     included in the district.
 2-6           SECTION 3. (a)  An election to create a municipal development
 2-7     district conducted as provided by Chapter 377, Local Government
 2-8     Code, as amended by this Act and held before the effective date of
 2-9     this Act is validated as of the date the election occurred.
2-10           (b)  Any action taken by a district authorized by Chapter
2-11     377, Local Government Code, as amended by this Act, occurring after
2-12     the creation of the district but before the effective date of this
2-13     Act is validated as of the date the action occurred.
2-14           SECTION 4.  This Act takes effect immediately if it receives
2-15     a vote of two-thirds of all the members elected to each house, as
2-16     provided by Section 39, Article III, Texas Constitution.  If this
2-17     Act does not receive the vote necessary for immediate effect, this
2-18     Act takes effect September 1, 2001.