79R11586 DRH-F


By:  McReynolds, Farabee                                          H.B. No. 1468

Substitute the following for H.B. No. 1468:                                   

By:  Smith of Harris                                          C.S.H.B. No. 1468



A BILL TO BE ENTITLED

AN ACT

relating to the counties eligible to create a county assistance 
district that may impose a sales and use tax.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 387.002, Local Government Code, is 
amended to read as follows:
	Sec. 387.002.  APPLICABILITY.  This chapter applies only to 
a county that has a population of less than 50,000 [45,000 and any 
portion of which is included in an authority governed by Chapter 451 
or 452, Transportation Code].
	SECTION 2.  Section 387.003, Local Government Code, is 
amended by amending Subsections (b) and (f) and adding Subsections 
(b-1), (g), and (h) to read as follows:
	(b)  The order calling the election must:                                      
		(1)  define the boundaries of the district to include 
any portion of the county in which the combined tax rate of all 
local sales and use taxes imposed, including the rate to be imposed 
by the district if approved at the election, would not exceed two 
percent [that is not located in an authority governed by Chapter 451 
or 452, Transportation Code]; and
		(2)  call for the election to be held within those 
boundaries.              
	(b-1)  If the proposed district includes any territory of a 
municipality, the commissioners court shall send notice by 
certified mail to the governing body of the municipality of the 
commissioners court's intent to create the district.  The 
commissioners court must send the notice not later than the 60th day 
before the date the commissioners court orders the election.  The 
governing body of the municipality may exclude the territory of the 
municipality from the proposed district by sending notice by 
certified mail to the commissioners court of the governing body's 
desire to exclude the municipal territory from the district.  The 
governing body must send the notice not later than the 45th day 
after the date the governing body receives notice from the 
commissioners court under this subsection.  If the commissioners 
court fails to provide notice to a municipality as required by this 
subsection, the governing body of the municipality may exclude its 
territory from the district at any time, including after the 
creation of the district,  by providing written notice to the 
commissioners court of the governing body's desire to exclude the 
territory.   The territory of a municipality that is excluded under 
this subsection may subsequently be included in the district in an 
election held under Subsection (f).
	(f)  The commissioners court may call an election to be held 
in an area of the county that is not located in a district created 
under this section to determine whether the area should be included 
in the district and whether the district's sales and use tax should 
be imposed in the area.  An election may not be held in an area in 
which the combined tax rate of all local sales and use taxes 
imposed, including the rate to be imposed by the district if 
approved at the election, would exceed two percent [that is 
included in an authority governed by Chapter 451 or 452, 
Transportation Code].
	(g)  The area in which an election is held under Subsection 
(f) is included in the district and the sales and use tax is imposed 
if a majority of the votes received at the election favor inclusion 
in the district and imposition of the sales and use tax.
	(h)  If more than one election to authorize a sales and use 
tax is held on the same day in the area of a proposed district or an 
area proposed to be added to a district and if the resulting 
approval by the voters would cause the imposition of a sales and use 
tax in any area to exceed two percent, only a tax authorized at an 
election under this section may be imposed.
	SECTION 3.  The change in law made by this Act by adding 
Section 387.003(b-1), Local Government Code, applies only to an 
election ordered on or after the effective date of this Act.
	SECTION 4.  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 September 1, 2005.