78S40278 MI-F

By:  Smith of Harris                                              H.B. No. 39 



A BILL TO BE ENTITLED

AN ACT

relating to the use of the development project fund by a municipal 
development district.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 377.072(c), Local Government Code, is 
amended to read as follows:
	(c)  The district may use money in the development project 
fund only to:     
		(1)  pay the costs of planning, acquiring, 
establishing, developing, constructing, or renovating one or more 
development projects beneficial to [in] the district;
		(2)  pay the principal of, interest on, and other costs 
relating to bonds or other obligations issued by the district or to 
refund bonds or other obligations;  or
		(3)  pay the costs of operating or maintaining one or 
more development projects during the planning, acquisition, 
establishment, development, construction, or renovation or while 
bonds or other obligations for the planning, acquisition, 
establishment, development, construction, or renovation are 
outstanding.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect on the 91st day after the last day of the 
legislative session.