By:  Fraser                                                       S.B. No. 1903
	(In the Senate - Filed April 7, 2003; April 9, 2003, read 
first time and referred to Committee on Intergovernmental 
Relations; May 6, 2003, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 4, Nays 0; 
May 6, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1903                                   By:  Gallegos


A BILL TO BE ENTITLED

AN ACT


relating to the creation and authority of municipal development 
districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subdivision (3), Section 377.001, Local Government
Code, is amended to read as follows:
		(3)  "Development project" means:                                      
			(A)  [means:                                                
				[(i)]  a "project" as that term is defined by 
Section 4B(a), Development Corporation Act of 1979 (Article 5190.6, 
Vernon's Texas Civil Statutes);  or
			(B)  [and (ii)]  a convention center facility or 
related improvement such as a convention center, civic center, 
civic center building, civic center hotel, or auditorium, 
including[;  and
			[(B)  includes] parking areas or facilities that 
are used to park vehicles and that are located at or in the vicinity 
of other convention center facilities.
	SECTION 2.  Subchapter A, Chapter 377, Local Government 
Code, is amended by adding Section 377.003 to read as follows:
	Sec. 377.003.  CONSTITUTIONAL PURPOSE.  This chapter creates 
a program under Section 52-a, Article III, Texas Constitution.
	SECTION 3.  Subsection (b), Section 377.021, Local 
Government Code, is amended to read as follows:
	(b)  The order calling the election must:                                      
		(1)  define the boundaries of the district to include 
all or part of the area contained in the boundaries of the 
municipality and the municipality's extraterritorial jurisdiction;  
and
		(2)  call for the election to be held within those 
boundaries.              
	SECTION 4.  Subsection (a), Section 377.022, Local 
Government Code, is amended to read as follows:
	(a)  A district is a political subdivision of this state and 
of the municipality that called the election creating [in which] 
the district [is located].
	SECTION 5.  Subsections (b) and (d), Section 377.051, Local 
Government Code, are amended to read as follows:
	(b)  The board is appointed by the governing body of the 
municipality that called the election creating [in which] the 
district [is located].
	(d)  To qualify to serve as a director, a person must be a 
resident of the municipality that called the election creating [in 
which] the district or of that municipality's extraterritorial 
jurisdiction [is located].  An employee, officer, or member of the 
governing body of the municipality may serve as a director, but may 
not have a personal interest in a contract executed by the district 
other than as an employee, officer, or member of the governing body 
of the municipality.
	SECTION 6.  Section 377.053, Local Government Code, is 
amended to read as follows:
	Sec. 377.053.  MEETINGS.  The board shall conduct its 
meetings in the municipality that called the election creating [in 
which] the district [is located].
	SECTION 7.  Section 377.002, Local Government Code, is 
repealed.             
	SECTION 8.  This Act takes effect September 1, 2003.                           



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