S.B. 1903 78(R)    BILL ANALYSIS


S.B. 1903
By: Fraser
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, a municipality is authorized to call an election to create a
municipal development 
district (district) and levy a sales tax to provide for the development of
public projects in the 
district, if the city is located in more than one county. S.B. 1903
expands the authorization 
to create a district to any municipality or the municipality's
extraterritorial jurisdiction with a 
combined sales tax rate below the 8.25 percent tax cap.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Amends Sections 377.001(3), Local Government Code, to redefine
"development 
project."

SECTION 2. Amends Subchapter A, Chapter 377, Local Government Code, by
adding Section 
377.003, as follows:

 Sec. 377.003. CONSTITUTIONAL PURPOSE. Provides that this chapter creates a
 program under Section 52-a, Article III, Texas Constitution.

SECTION 3. Amends Section 377.021(b), Local Government Code, to require
the order calling 
the election to include certain information.

SECTION 4. Amends Section 377.022(a), Local Government Code, to provide
that a district is a 
political subdivision of this state and of the municipality that called
the election creating the 
district.

SECTION 5. Amends Sections 377.051(b) and (d), Local Government Code, as
follows: 

 (b) Provides that the board is appointed by the governing body of the
municipality that 
 called the election creating the district.
 (d) Requires a person, to qualify to serve as a director, to be a
resident of the 
 municipality that called the election creating the district or the
municipality's 
 extraterritorial jurisdiction.

SECTION 6. Amends Section 377.053, Local Government Code, to make
conforming changes. 

SECTION 7. Repealer: Section 377.002 (Applicability), Local Government
Code. 

SECTION 8. Effective date: September 1, 2003.

EFFECTIVE DATE

September 1, 200