1-1                                   AN ACT
 1-2     relating to the authority of certain municipalities to dedicate tax
 1-3     revenue from certain reinvestment zones.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 311, Tax Code, is amended by adding
 1-6     Section 311.0085 to read as follows:
 1-7           Sec. 311.0085.  POWER OF CERTAIN MUNICIPALITIES. (a)  This
 1-8     section applies only to a municipality that has:
 1-9                 (1)  territory in three counties; and
1-10                 (2)  a population of less than 120,000.
1-11           (b)  In this section, "educational facility" has the meaning
1-12     assigned by Section 311.008.
1-13           (c)  In addition to exercising the powers described by
1-14     Section 311.008, a municipality may enter into a new agreement, or
1-15     amend an existing agreement, with a school district that is located
1-16     in whole or in part in a reinvestment zone created by the
1-17     municipality to dedicate revenue from the tax increment fund to the
1-18     school district for acquiring, constructing, or reconstructing an
1-19     educational facility located in or outside of the zone.
1-20           SECTION 2.  This Act takes effect immediately if it receives
1-21     a vote of two-thirds of all the members elected to each house, as
1-22     provided by Section 39, Article III, Texas Constitution.  If this
1-23     Act does not receive the vote necessary for immediate effect, this
1-24     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2682 was passed by the House on May
         11, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2682 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor