H.B. No. 1720
 
 
 
 
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
  repealed.
         SECTION 2.  Section 387.003, Local Government Code, is
  amended by amending Subsections (a), (b), and (f) and adding
  Subsections (b-1), (g), and (h) to read as follows:
         (a)  The commissioners court of the county may call an
  election on the question of creating a county assistance district
  under this chapter to perform the following functions in the
  district:
               (1)  the construction, maintenance, or improvement of
  roads or highways;
               (2)  the provision of law enforcement and detention
  services;
               (3)  the maintenance or improvement of libraries,
  museums, parks, or other recreational facilities;
               (4)  the provision of services that benefit the public
  health or welfare, including the provision of firefighting and fire
  prevention services; or
               (5)  the promotion of economic development and tourism.
         (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.  If the
  municipality has created a development corporation under Section 4A
  or 4B, Development Corporation Act of 1979 (Article 5190.6,
  Vernon's Texas Civil Statutes), the commissioners court shall also
  send the notice to the board of directors of the corporation.  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. 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) with the consent of the municipality.
         (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 local 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 local 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, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1720 was passed by the House on April
  12, 2007, by the following vote:  Yeas 135, Nays 6, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1720 on May 21, 2007, by the following vote:  Yeas 132, Nays 9,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1720 was passed by the Senate, with
  amendments, on May 17, 2007, by the following vote:  Yeas 29, Nays
  2.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor