By: Jackson S.B. No. 417
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.
1-4 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.
2-5 SECTION 3. (a) An election to create a municipal
2-6 development district conducted as provided by Chapter 377, Local
2-7 Government Code, as amended by this Act and held before the
2-8 effective date of this Act is validated as of the date the election
2-9 occurred.
2-10 (b) Any action taken by a municipal development district
2-11 authorized by Chapter 377, Local Government Code, as amended by
2-12 this Act, occurring after the creation of the district but before
2-13 the effective date of this Act is validated as of the date the
2-14 action occurred.
2-15 SECTION 4. This Act takes effect immediately if it receives
2-16 a vote of two-thirds of all the members elected to each house, as
2-17 provided by Section 39, Article III, Texas Constitution. If this
2-18 Act does not receive the vote necessary for immediate effect, this
2-19 Act takes effect September 1, 2001.