SRC-JLB S.B. 1903 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1903
By: Fraser
Intergovernmental Relations
4/23/2003
As Filed


DIGEST 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.  As proposed, 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

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 377.001(2) and (3), Local Government Code, to
redefine "district" and "development project." 

SECTION 2.  Amends Section 377.002, Local Government Code, as follows:
 
Sec. 377.002.  APPLICABILITY.  Provides that this chapter applies only to
a municipality and a municipality's extraterritorial jurisdiction.
Deletes text limiting application of this Chapter to a municipality
located in more than one county. 

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

SECTION 4.  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 5.  Effective date:  September 1, 2003.