HBA-CCH, MPM, CMT H.B. 693 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 693
By: Bosse
Urban Affairs
2/19/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, if any portion of a city with a sales tax of 8.25
percent is located in a county with a population of 750,000 or more, the
city is prohibited from imposing a sales tax to benefit an industrial
development corporation created under the Development Corporation Act of
1979.  Baytown, Texas is at this maximum sales tax rate, and is therefore
precluded from imposing additional sales taxes to benefit such a
corporation.  Current law does, however, authorize a city with a population
of less than 10,000 that is located in more than two counties, one of which
borders the Gulf of Mexico, to create a municipal development district and
impose a sales tax to finance its development projects.  The City of
Baytown, which is located in Harris and Chambers counties, has requested
that law be amended to allow any city located in more than one county to
create a municipal development district.  House Bill 693 makes current
provisions for municipal development districts applicable to any city
located in more than one county. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 693 amends the Local Government Code to modify the provisions
for municipal development districts to apply only to a municipality that is
located in more than one county, rather than a municipality with a
population of less than 10,000 that is located in two counties, at least
one of which borders on the Gulf of Mexico.  The bill also authorizes the
municipality, on the question of creating a municipal district, to provide
for the district boundaries to conform automatically to any changes in the
boundaries of the portion of the municipality included in the district. 


EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.