Amend SB 1154 immediately after SECTION 5 of the bill 
(engrossed version page 4, after line 27) by inserting the 
following new SECTION and renumbering the subsequent SECTIONS 
appropriately:
	SECTION 6.  Subchapter I, Chapter 441, Government Code, is 
amended by adding Section 441.1281 to read as follows:
	Sec. 441.1281.  CREATION OF LIBRARY DISTRICTS IN CERTAIN 
MUNICIPALITIES.  (a)  This section applies only to a municipality 
that does not have a municipal public library accredited for 
membership in the state library system.
	(b)  An election to adopt or increase the local sales and use 
tax under Subchapter E, Chapter 326, Local Government Code, is to be 
treated also as an election that will have the effect of reducing 
the tax rate of an industrial development district if:
		(1)  all or any part of the proposed district is 
included within the boundaries of an industrial development 
corporation created under Section 4B, Development Corporation Act 
of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), by the 
municipality after the date of the first filing of a petition with 
the commissioners court of the county to create a library district 
under Chapter 326, Local Government Code; and
		(2)  the adoption or increase of the local sales and use 
tax under Subchapter E, Chapter 326, Local Government Code, would 
result in a combined tax rate of more than two percent in any 
location in the proposed district.
	(c)  If the voters approve the adoption or increase of the 
district tax under Subsection (b), the tax rate to which the 
development corporation's tax is reduced is the highest rate that 
will not result in a combined tax rate of more than two percent in 
any location in the proposed district.
	(d)  The rate of the tax imposed by the development 
corporation is increased without further action of the board or the 
voters of the development corporation or the district on the date on 
which the tax imposed under Subchapter E, Chapter 326, Local 
Government Code, is decreased or expires.  The development 
corporation's tax rate increases only to the extent that any tax 
imposed by the development corporation was reduced under this 
section when the tax imposed by the district was adopted or 
increased.
	(e)  This section does not permit a taxing unit to impose 
taxes at different tax rates in the territory of the unit.
	(f)  For the purposes of holding an election as described by 
this section, a petition filed before, on, or after September 1, 
2003, with the commissioners court of the county to create a library 
district is effective and valid for subsequent filing purposes 
until the second anniversary of the date on which the petition was 
first filed.
	(g)  If the boundaries of the proposed library district 
include any territory that, on the date on which a petition is filed 
on the question of creating the district, is part of a municipality 
that operates a municipal public library accredited for membership 
in the state library system, the governing body of that 
municipality must consent by resolution to allow the inclusion of 
that municipal territory in the proposed district.