1-1                                   AN ACT
 1-2     relating to the creation, powers, and boundaries of certain
 1-3     municipal development districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 377.002, Local Government Code, is
 1-6     amended 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
1-12     amended by amending Subsections (a)  and (c) and adding Subsection
1-13     (g) to 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
1-25     district."
 2-1           (g)  In the order calling the election, the municipality may
 2-2     provide for the district boundaries to conform automatically to any
 2-3     changes in the boundaries of the portion of the municipality
 2-4     included in the district, and the election shall be held on one of
 2-5     the four uniform election dates under Section 41.001, Election
 2-6     Code.
 2-7           SECTION 3.  (a)  An election to create a municipal
 2-8     development district conducted as provided by Chapter 377, Local
 2-9     Government Code, as amended by this Act and held before the
2-10     effective date of this Act is validated as of the date the election
2-11     occurred.
2-12           (b)  Any action taken by a municipal development district
2-13     authorized by Chapter 377, Local Government Code, as amended by
2-14     this Act, occurring after the creation of the district but before
2-15     the effective date of this Act is validated as of the date the
2-16     action occurred.
2-17           SECTION 4.  This Act takes effect immediately if it receives
2-18     a vote of two-thirds of all the members elected to each house, as
2-19     provided by Section 39, Article III, Texas Constitution.  If this
2-20     Act does not receive the vote necessary for immediate effect, this
2-21     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 417 passed the Senate on
         March 8, 2001, by the following vote:  Yeas 30, Nays 0, one
         present, not voting; and that the Senate concurred in House
         amendment on April 18, 2001, by the following vote:  Yeas 30,
         Nays 0, one present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 417 passed the House, with
         amendment, on April 5, 2001, by the following vote:  Yeas 139,
         Nays 0, one present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor