1-1     By:  Jackson                                           S.B. No. 417
 1-2           (In the Senate - Filed January 26, 2001; January 29, 2001,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; March 1,2001, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; March 1, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the creation, powers, and boundaries of certain
 1-9     municipal development districts.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 377.002, Local Government Code, is
1-12     amended to read as follows:
1-13           Sec. 377.002.  APPLICABILITY [APPLICATION].  This chapter
1-14     applies only to a municipality [with a population of less than
1-15     10,000] that is located in more than one county [two counties, at
1-16     least one of which borders the Gulf of Mexico].
1-17           SECTION 2.  Section 377.021, Local Government Code, is
1-18     amended by amending Subsections (a)  and (c) and adding Subsection
1-19     (g) to read as follows:
1-20           (a)  A municipality may call an election on the question of
1-21     creating a municipal development district under this chapter to
1-22     plan, acquire, establish, develop, construct, or renovate one or
1-23     more development projects beneficial to [in] the district.
1-24           (c)  The ballot at an election held under this section must
1-25     be printed to permit voting for or against the proposition:
1-26     "Authorizing the creation of the ____ Municipal Development
1-27     District (insert name of district) and the imposition of a sales
1-28     and use tax at the rate of ____ of one percent (insert one-eighth,
1-29     one-fourth, three-eighths, or one-half, as appropriate) for the
1-30     purpose of financing development projects beneficial to [in] the
1-31     district."
1-32           (g)  In the order calling the election, the municipality may
1-33     provide for the district boundaries to conform automatically to any
1-34     changes in the boundaries of the portion of the municipality
1-35     included in the district.
1-36           SECTION 3.  (a)  An election to create a municipal
1-37     development district conducted as provided by Chapter 377, Local
1-38     Government Code, as amended by this Act and held before the
1-39     effective date of this Act is validated as of the date the election
1-40     occurred.
1-41           (b)  Any action taken by a municipal development district
1-42     authorized by Chapter 377, Local Government Code, as amended by
1-43     this Act, occurring after the creation of the district but before
1-44     the effective date of this Act is validated as of the date the
1-45     action occurred.
1-46           SECTION 4.  This Act takes effect immediately if it receives
1-47     a vote of two-thirds of all the members elected to each house, as
1-48     provided by Section 39, Article III, Texas Constitution.  If this
1-49     Act does not receive the vote necessary for immediate effect, this
1-50     Act takes effect September 1, 2001.
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