By: Rosson S.B. No. 1388
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of a county mass transit authority.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Chapter 10, Title 28, Revised Statutes, is
1-4 amended by adding Article 1118z-1 to read as follows:
1-5 Art. 1118z-1. COUNTY MASS TRANSIT AUTHORITY
1-6 Sec. 1. DEFINITIONS. In this article:
1-7 (1) "Authority" means a mass transit authority created
1-8 under this article.
1-9 (2) "Bond" includes a note.
1-10 (3) "Board" means the governing body of an authority.
1-11 (4) "Mass transit" means the transportation of
1-12 passengers and hand-carried packages or baggage of a passenger by
1-13 any means of surface, overhead, or underground transportation,
1-14 other than an aircraft or taxicab.
1-15 (5) "Principal municipality" means the municipality of
1-16 greatest population in a county to which this article applies.
1-17 (6) "Transit authority system" means:
1-18 (A) property owned or held by an authority for
1-19 mass transit purposes; and
1-20 (B) facilities necessary or convenient for:
1-21 (i) the use of or access to mass transit
1-22 by persons or vehicles; or
1-23 (ii) the protection or environmental
1-24 enhancement of mass transit.
2-1 (7) "Unit of election" means a municipality, including
2-2 the principal municipality, or the unincorporated area of a county.
2-3 Sec. 2. APPLICATION. This article applies only to a county
2-4 containing a municipality with a population of 500,000 or greater
2-5 that has created a mass transit department under Article 1118z,
2-6 Revised Statutes.
2-7 Sec. 3. CREATION OF AUTHORITY. (a) An authority is created
2-8 under this article if a resolution finding that the creation of an
2-9 authority would be in the public interest and a benefit to persons
2-10 residing in the county is adopted by:
2-11 (1) the county commissioners court;
2-12 (2) the governing body of the principal municipality;
2-13 and
2-14 (3) the governing body of at least one municipality
2-15 other than the principal municipality.
2-16 (b) An authority may not be created if the rate of the sales
2-17 and use tax charged by the city transit department of the principal
2-18 municipality, when added to an existing sales and use tax collected
2-19 in the county other than by the principal municipality, would
2-20 exceed the limit imposed by Section 38 of this article.
2-21 Sec. 4. BOARD OF AUTHORITY. (a) The board of an authority
2-22 consists of seven members. A member of the board serves without
2-23 compensation but is entitled to reimbursement for expenses incurred
2-24 in board service. The board shall elect one of its members as
2-25 presiding officer. The members are appointed as follows:
2-26 (1) two members by the county commissioners court;
2-27 (2) four members by the governing body of the
3-1 principal municipality; and
3-2 (3) one member by the governing bodies of all
3-3 municipalities that adopt the resolution described by Section 3 of
3-4 this article.
3-5 (b) A member of the board serves at the pleasure of the
3-6 appointing entity.
3-7 (c) The board shall administer and operate the authority.
3-8 (d) The board shall hold at least one regular meeting each
3-9 month for the purpose of transacting business of the authority.
3-10 (e) The presiding officer may call a special meeting of the
3-11 board.
3-12 Sec. 5. CONFIRMATION ELECTION. (a) If an authority is
3-13 created under Section 3 of this article, the board shall propose a
3-14 service plan and an initial tax rate for the authority. The
3-15 initial tax rate must be the same rate as that collected by the
3-16 city transit department created by the principal municipality.
3-17 (b) After proposing a service plan and an initial tax rate,
3-18 the board shall call an election in the county to approve the
3-19 creation of the authority and the tax rate. The election must be
3-20 held on a uniform election date but may not be held on the same day
3-21 as an election held by the county under Section 323.101, Tax Code.
3-22 The election is not held in the territory of the principal
3-23 municipality.
3-24 (c) Notice of the election must include a description of the
3-25 nature and rate of the proposed tax. The board shall send a copy
3-26 of the notice to the Texas Department of Transportation and the
3-27 comptroller.
4-1 (d) At the election the ballots shall be printed to permit
4-2 voting for or against the following proposition: "The creation of
4-3 the (name of county) Transit Authority and the imposition of a
4-4 (rate of tax) percent sales and use tax in (name of county)
4-5 County."
4-6 (e) If a majority of the votes cast at the election approve
4-7 the proposition:
4-8 (1) the board shall record the result in its minutes
4-9 and adopt an order implementing the service plan; and
4-10 (2) on the day the sales and use tax takes effect in
4-11 the authority, the city transit department created by the principal
4-12 municipality under Article 1118z, Revised Statutes, is dissolved,
4-13 and its assets, personnel, and obligations are transferred to the
4-14 authority.
4-15 (f) If less than a majority of the votes cast at the
4-16 election approve the proposition, the board shall adopt an order
4-17 dissolving the authority, and the city transit department of the
4-18 principal municipality is not affected.
4-19 (g) The jurisdiction of an authority is coextensive with the
4-20 territory of the county.
4-21 (h) The board shall file a certified copy of an order
4-22 adopted under Subsection (e)(1) or (f) of this section with the
4-23 Texas Department of Transportation, with the comptroller, and in
4-24 the deed records of the county.
4-25 Sec. 6. CONFLICTS OF INTEREST: AUTHORITY EMPLOYEES. An
4-26 employee of an authority may not have a pecuniary interest in, or
4-27 receive a benefit from, an agreement to which the authority is a
5-1 party.
5-2 Sec. 7. TRANSFER OF RESOURCES BETWEEN MUNICIPALITY AND
5-3 AUTHORITY. (a) The governing body of a municipality may transfer
5-4 to an authority created under this article:
5-5 (1) property and employees of a division of the
5-6 municipality that before the creation of the authority was
5-7 responsible for municipal public transportation; and
5-8 (2) municipal funds that may be used for mass transit.
5-9 (b) The governing body may abolish or change the functions
5-10 of the municipal division formerly responsible for municipal public
5-11 transportation.
5-12 (c) If an authority is required to be dissolved under this
5-13 article, the board, on dissolution of the authority, shall transfer
5-14 to a municipality the funds, property, and employees that were
5-15 transferred to the authority under this section. The governing
5-16 body of the municipality may then re-create or change the duties of
5-17 any municipal division abolished or changed as a result of
5-18 transfers made under this section.
5-19 Sec. 8. INVESTMENTS. (a) A board may invest authority
5-20 funds in any obligation, security, or evidence of indebtedness in
5-21 which the principal municipality may invest municipal funds.
5-22 (b) In making an investment of authority funds, a board
5-23 shall exercise the judgment and care, under the circumstances
5-24 prevailing at the time of making the investment, that persons of
5-25 ordinary prudence, discretion, and intelligence exercise in the
5-26 management of their own affairs in making a permanent and
5-27 nonspeculative disposition of their funds, considering the probable
6-1 income from the disposition and the probable safety of their
6-2 capital.
6-3 Sec. 9. DEPOSIT OF MONEY. (a) The board shall designate
6-4 one or more banks as depositories for authority funds. All
6-5 authority money, other than money invested as provided by Section 8
6-6 of this article, shall be deposited in one or more of the
6-7 authority's depository banks.
6-8 (b) Funds in a depository, to the extent that those funds
6-9 are not insured by the Federal Deposit Insurance Corporation, shall
6-10 be secured in the manner provided by law for the security of county
6-11 funds.
6-12 Sec. 10. LIABILITY OF CREATING ENTITIES. The political
6-13 subdivisions that adopt a resolution under Subsection (a) of
6-14 Section 3 of this article are liable for an expense the authority
6-15 incurs before the date a sales and use tax is approved for the
6-16 authority under this article, including the costs of holding the
6-17 election.
6-18 Sec. 11. ACQUIRING AND DISPOSING OF PROPERTY. (a) An
6-19 authority may acquire, hold, use, sell, lease, or dispose of
6-20 property, including licenses, patents, rights, and other interests,
6-21 necessary, convenient, or useful for the full exercise of any of
6-22 its powers under this article.
6-23 (b) The authority may acquire property described in
6-24 Subsection (a) in any manner, including by gift or devise.
6-25 (c) An authority may dispose of, by sale, lease, or other
6-26 conveyance:
6-27 (1) any property of the authority not needed for the
7-1 efficient operation and maintenance of the authority system; and
7-2 (2) any surplus property not needed for its
7-3 requirements or for the purpose of carrying out its powers under
7-4 this article.
7-5 (d) The lease of unneeded property under Subsection (c) must
7-6 be consistent with the efficient operation and maintenance of the
7-7 transit authority system.
7-8 Sec. 12. TRANSIT AUTHORITY SYSTEM. (a) An authority may:
7-9 (1) acquire, construct, own, operate, and maintain a
7-10 transit authority system;
7-11 (2) use any public way; and
7-12 (3) construct, repair, and maintain a municipal
7-13 street, as authorized by the governing body of a municipality in
7-14 the authority.
7-15 (b) In the exercise of a power under Subsection (a) of this
7-16 section, an authority may relocate or reroute, or alter the
7-17 construction of, any public or private property, including:
7-18 (1) an alley, road, street, or railroad;
7-19 (2) an electric line and facility;
7-20 (3) a telegraph and telephone property and facility;
7-21 (4) a pipeline and facility; and
7-22 (5) a conduit and facility.
7-23 Sec. 13. FARES AND OTHER CHARGES. The board shall, after a
7-24 public hearing, impose reasonable and nondiscriminatory fares,
7-25 tolls, charges, rents, or other compensation for the use of the
7-26 transit authority system sufficient to produce revenue, together
7-27 with receipts from taxes imposed by the authority, in an amount
8-1 adequate to:
8-2 (1) pay all the expenses necessary to operate and
8-3 maintain the transit authority system;
8-4 (2) pay when due the principal of and interest on, and
8-5 sinking fund and reserve fund payments agreed to be made with
8-6 respect to, all bonds that are issued by the board and payable in
8-7 whole or part from the revenue; and
8-8 (3) fulfill the terms of any other agreement with the
8-9 holders of bonds described by Subdivision (2) of this section or
8-10 with a person acting on behalf of the bondholders.
8-11 Sec. 14. AGREEMENT WITH UTILITIES, CARRIERS. An authority
8-12 may agree with a public or private utility, communication system,
8-13 common carrier, or transportation system for:
8-14 (1) the joint use of the property of the agreeing
8-15 entities in the authority; or
8-16 (2) the establishment of through routes, joint fares,
8-17 or transfers of passengers.
8-18 Sec. 15. CONTRACTS; ACQUISITION OF PROPERTY BY AGREEMENT.
8-19 (a) An authority may contract with any person and may accept a
8-20 grant or loan from any person.
8-21 (b) An authority may acquire rolling stock or other property
8-22 under a contract or trust agreement, including a conditional sales
8-23 contract, lease, and equipment trust certificate.
8-24 Sec. 16. USE AND ACQUISITION OF PROPERTY OF OTHERS. (a) An
8-25 authority may not alter or damage any property of this state or a
8-26 political subdivision of this state or owned by a person rendering
8-27 public services and may not disrupt services being provided by
9-1 others or inconvenience in any other manner an owner of property,
9-2 without first having obtained:
9-3 (1) the written consent of the owner; or
9-4 (2) the right from the governing body of the
9-5 municipality to take the action under the municipality's power of
9-6 eminent domain.
9-7 (b) An authority may agree with an owner of property to
9-8 provide for:
9-9 (1) a necessary relocation or alteration of property
9-10 by the owner or a contractor chosen by the owner; and
9-11 (2) the reimbursement by the authority to the owner of
9-12 the costs incurred by the owner in making the relocation or
9-13 alteration.
9-14 (c) The authority shall pay the cost of any relocation,
9-15 rerouting, or other alteration in the construction made under this
9-16 chapter and is liable for any damage to property occurring because
9-17 of the change.
9-18 Sec. 17. ROUTES. An authority shall determine each route,
9-19 including route changes, as the board considers advisable.
9-20 Sec. 18. TORT LIABILITY AND GOVERNMENTAL IMMUNITY. (a) An
9-21 authority is a separate governmental unit for purposes of Chapter
9-22 101, Civil Practice and Remedies Code, and operations of an
9-23 authority are essential governmental functions and not proprietary
9-24 functions for all purposes, including the purposes of that chapter.
9-25 (b) This chapter does not create or confer any governmental
9-26 immunity or limitation of liability on any entity that is not a
9-27 governmental unit, governmental entity or authority, or public
10-1 agency or a subdivision of one of those persons. In this
10-2 subsection, "governmental unit" has the meaning assigned by Section
10-3 101.001, Civil Practice and Remedies Code.
10-4 Sec. 19. TAX EXEMPTION. The assets of an authority are
10-5 exempt from any tax of the state or a state taxing authority.
10-6 Sec. 20. TRANSPORTATION FOR JOBS PROGRAM PARTICIPANTS.
10-7 (a) An authority shall contract with the Texas Department of Human
10-8 Services to provide, in accordance with federal law, transportation
10-9 services to a person who:
10-10 (1) resides in the area served by the authority;
10-11 (2) is receiving financial assistance under Chapter
10-12 31, Human Resources Code; and
10-13 (3) is registered in the jobs opportunities and basic
10-14 skills training program under Part F, Subchapter IV, Social
10-15 Security Act, as amended (42 U.S.C. Section 682).
10-16 (b) The contract must include provisions to ensure that:
10-17 (1) the authority is required to provide
10-18 transportation services only to a location:
10-19 (A) to which the person travels in connection
10-20 with participation in the jobs opportunities and basic skills
10-21 training program; and
10-22 (B) that the authority serves under the
10-23 authority's authorized rate structure and existing services;
10-24 (2) the authority is to provide directly to the Texas
10-25 Department of Human Services trip vouchers for distribution by the
10-26 Texas Department of Human Services to a person who is eligible
10-27 under this section to receive transportation services;
11-1 (3) the Texas Department of Human Services reimburses
11-2 the authority for allowable costs, at the applicable federal
11-3 matching rate; and
11-4 (4) the Texas Department of Human Services may return
11-5 undistributed trip vouchers to the authority.
11-6 (c) An authority shall certify the amount of public funds
11-7 spent by the authority under this section for the purpose of
11-8 obtaining federal funds under the jobs opportunities and basic
11-9 skills training program.
11-10 Sec. 21. WAIVER OF FEDERAL REQUIREMENTS. If, before
11-11 implementing Section 20 of this article, the Texas Department of
11-12 Human Services determines that a waiver or authorization from a
11-13 federal agency is necessary for implementation, the Texas
11-14 Department of Human Services shall request the waiver or
11-15 authorization, and the Texas Department of Human Services and an
11-16 authority may delay implementing Section 20 until the waiver or
11-17 authorization is granted.
11-18 Sec. 22. PURCHASE AND PERCENT OF VEHICLES USING ALTERNATIVE
11-19 FUELS. (a) An authority may not purchase or lease a motor vehicle
11-20 that is not capable of using compressed natural gas or another
11-21 alternative fuel the use of which results in comparably lower
11-22 emissions of oxides of nitrogen, volatile organic compounds, carbon
11-23 monoxide, or particulates or combinations of those materials.
11-24 (b) After August 31, 1996, at least 50 percent of the fleet
11-25 vehicles operated by an authority must be capable of using
11-26 compressed natural gas or another alternative fuel.
11-27 (b-1) At least 30 percent of the fleet vehicles operated by
12-1 an authority must be capable of using compressed natural gas or
12-2 another alternative fuel. This subsection expires September 1,
12-3 1996.
12-4 (c) The Texas Natural Resource Conservation Commission,
12-5 before 1997, shall review the alternative fuels use program under
12-6 this section. If the commission determines that the program has
12-7 been effective in reducing total annual emissions from motor
12-8 vehicles in the area, the authority shall achieve a percentage of
12-9 fleet vehicles capable of using compressed natural gas or other
12-10 alternative fuels of at least 90 percent of the number of fleet
12-11 vehicles operated after August 31, 1998.
12-12 Sec. 23. ALTERNATIVE FUELS USE PROGRAM: EXCEPTIONS.
12-13 (a) An authority may make exceptions to the requirements of
12-14 Section 22 of this article if the authority certifies the facts
12-15 described by Subsection (b) of this section.
12-16 (b) A certification under this section must state that:
12-17 (1) the authority's vehicles will be operating
12-18 primarily in an area in which neither the authority nor a supplier
12-19 has or can reasonably be expected to establish a central refueling
12-20 station for compressed natural gas or other alternative fuels; or
12-21 (2) the authority is unable to acquire or be provided
12-22 equipment or refueling facilities necessary to operate vehicles
12-23 using compressed natural gas or other alternative fuels at a
12-24 project cost that is reasonably expected to result in no greater
12-25 net cost than the continued use of traditional gasoline or diesel
12-26 fuel measured over the expected useful life of the equipment or
12-27 facilities supplied.
13-1 Sec. 24. ALTERNATIVE FUELS EQUIPMENT AND FACILITIES.
13-2 (a) In addition to other methods authorized by law, an authority
13-3 may acquire or be provided equipment or refueling facilities by an
13-4 arrangement, including a gift or a loan, under a service contract
13-5 for the supply of compressed natural gas or other alternative
13-6 fuels.
13-7 (b) If an authority acquires or is provided equipment or
13-8 facilities as authorized by Subsection (a) of this section, the
13-9 supplier is entitled, under the supply contract, to recover the
13-10 cost of giving, loaning, or providing the equipment or facilities
13-11 through the fuel charges.
13-12 Sec. 25. ALTERNATIVE FUELS USE PROGRAM: VEHICLES COVERED
13-13 AND SAFETY. (a) In developing a compressed natural gas or other
13-14 alternative fuels use program, an authority should work with
13-15 vehicle manufacturers and converters, fuel distributors, and others
13-16 to specify the vehicles to be covered considering relevant factors,
13-17 including vehicle range, specialty vehicle uses, fuel availability,
13-18 vehicle manufacturing and conversion capability, safety, and resale
13-19 value.
13-20 (b) The authority may meet the percentage requirements of
13-21 Section 22 of this article by:
13-22 (1) purchasing new vehicles; or
13-23 (2) converting existing vehicles, in conformity with
13-24 federal and state requirements and applicable safety laws, to
13-25 alternative fuels use.
13-26 (c) In purchasing, leasing, maintaining, or converting a
13-27 vehicle for alternative fuels use, the authority shall comply with
14-1 all applicable safety standards adopted by the United States
14-2 Department of Transportation or the Railroad Commission of Texas or
14-3 their successor agencies.
14-4 Sec. 26. ALTERNATIVE FUELS USE PROGRAM: REPORTS. (a) Not
14-5 later than December 31 of each year, an authority shall file an
14-6 annual report with the Texas Natural Resource Conservation
14-7 Commission showing:
14-8 (1) purchases, leases, and conversions of motor
14-9 vehicles;
14-10 (2) the amount of compressed natural gas and other
14-11 alternative fuels used; and
14-12 (3) any other information required by the commission
14-13 relevant to the alternative fuels use program.
14-14 (b) The commission may require reporting from an authority
14-15 to document air quality benefits from an alternative fuels use
14-16 program.
14-17 Sec. 27. POWER TO ISSUE BONDS. (a) An authority may issue
14-18 revenue bonds at any time and for any amounts it considers
14-19 necessary or appropriate for:
14-20 (1) the acquisition, construction, repair, equipping,
14-21 improvement, or extension of its transit system; or
14-22 (2) the construction or general maintenance of streets
14-23 of the creating municipality.
14-24 (b) Bonds payable solely from revenues may be issued by
14-25 resolution of the board.
14-26 (c) Bonds, other than refunding bonds, any portion of which
14-27 is payable from tax revenue may not be issued until authorized by a
15-1 majority vote of the voters of the authority voting in an election.
15-2 Sec. 28. BOND TERMS. (a) An authority's bonds are fully
15-3 negotiable.
15-4 (b) The authority may make the bonds redeemable before
15-5 maturity at the price and subject to the terms and conditions that
15-6 are provided in the resolution authorizing the bonds.
15-7 (c) A revenue bond indenture may limit a power of the
15-8 authority provided by this article as long as the bond containing
15-9 the indenture is outstanding and unpaid.
15-10 Sec. 29. SALE. Bonds may be sold at a public or private
15-11 sale as determined by the board.
15-12 Sec. 30. APPROVAL; REGISTRATION. (a) An authority's bonds
15-13 and the records relating to their issuance shall be submitted to
15-14 the attorney general for examination before the bonds may be
15-15 delivered.
15-16 (b) If the attorney general finds that the bonds have been
15-17 issued in conformity with the constitution and this article and
15-18 that the bonds will be a binding obligation of the issuing
15-19 authority, the attorney general shall approve the bonds.
15-20 (c) After the bonds are approved by the attorney general,
15-21 the comptroller shall register the bonds.
15-22 Sec. 31. INCONTESTABILITY. Bonds are incontestable after
15-23 they are:
15-24 (1) approved by the attorney general;
15-25 (2) registered by the comptroller; and
15-26 (3) sold and delivered to the purchaser.
15-27 Sec. 32. SECURITY PLEDGED. (a) To secure the payment of an
16-1 authority's bonds, the authority may:
16-2 (1) pledge all or part of revenue received from any
16-3 tax that the authority may impose;
16-4 (2) pledge all or part of the revenue of the transit
16-5 authority system; and
16-6 (3) mortgage all or part of the transit authority
16-7 system, including any part of the system subsequently acquired.
16-8 (b) Under Subsection (a)(3) of this section, the authority
16-9 may, subject to the terms of the bond indenture or resolution
16-10 authorizing the issuance of the bonds, encumber a separate item of
16-11 the transit authority system and acquire, use, hold, or contract
16-12 for any property by lease, chattel mortgage, or other conditional
16-13 sale, including an equipment trust transaction.
16-14 Sec. 33. PLEDGE OF REVENUE LIMITED. The expenses of
16-15 operation and maintenance of a transit authority system, including
16-16 salaries, labor, materials, and repairs necessary to provide
16-17 efficient service and every other proper item of expense, are a
16-18 first lien and charge against any revenue of an authority that is
16-19 encumbered under this article.
16-20 Sec. 34. REFUNDING BONDS. An authority may issue refunding
16-21 bonds for the purposes and in the manner authorized by Chapter 503,
16-22 Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas
16-23 Civil Statutes), Chapter 784, Acts of the 61st Legislature, Regular
16-24 Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes), or
16-25 other law.
16-26 Sec. 35. BONDS AS AUTHORIZED INVESTMENTS. (a) An
16-27 authority's bonds are authorized investments for:
17-1 (1) a bank;
17-2 (2) a trust company;
17-3 (3) a savings and loan association; and
17-4 (4) an insurance company.
17-5 (b) The bonds, when accompanied by all appurtenant,
17-6 unmatured coupons and to the extent of the lesser of their face
17-7 value or market value, are eligible to secure the deposit of public
17-8 funds of this state, a political subdivision of this state, and any
17-9 other political corporation of this state.
17-10 Sec. 36. INTEREST EXEMPTION. Interest on bonds issued by an
17-11 authority is exempt from any tax of the state or a state taxing
17-12 authority.
17-13 Sec. 37. SALES AND USE TAX. (a) The board may impose for
17-14 the authority a sales and use tax at a permissible rate that does
17-15 not exceed the rate approved by the voters at an election under
17-16 this article.
17-17 (b) The board by order may:
17-18 (1) decrease the rate of the sales and use tax for the
17-19 authority to a permissible rate; or
17-20 (2) call an election for the increase or decrease of
17-21 the sales and use tax to a permissible rate.
17-22 (c) The permissible rates for a sales and use tax imposed
17-23 under this article are:
17-24 (1) one-quarter of one percent; and
17-25 (2) one-half of one percent.
17-26 (d) Chapter 322, Tax Code, applies to an authority's sales
17-27 and use tax.
18-1 Sec. 38. MAXIMUM TAX RATE. (a) A board may not adopt a
18-2 sales and use tax rate, including a rate increase, that when
18-3 combined with the rates of all sales and use taxes imposed by all
18-4 political subdivisions of this state having territory in the county
18-5 exceeds two percent in any location in the county.
18-6 (b) An election by an authority to approve a sales and use
18-7 tax or increase the rate of the authority's sales and use tax has
18-8 no effect if:
18-9 (1) the voters of the authority approve the
18-10 authority's sales and use tax rate or rate increase at an election
18-11 held on the same day on which the municipality or county having
18-12 territory in the jurisdiction of the authority adopts a sales and
18-13 use tax or an additional sales and use tax; and
18-14 (2) the combined rates of all sales and use taxes
18-15 imposed by the authority and all political subdivisions of this
18-16 state would exceed two percent in any part of the territory in the
18-17 jurisdiction of the authority.
18-18 Sec. 39. ELECTION TO CHANGE TAX RATE. (a) At an election
18-19 ordered under Subsection (b)(2) of Section 37 of this article, the
18-20 ballots shall be printed to permit voting for or against the
18-21 proposition: "The increase (decrease) of the local sales and use
18-22 tax rate of (name of authority) to (percentage)."
18-23 (b) The increase or decrease in the tax rate becomes
18-24 effective only if it is approved by a majority of the votes cast.
18-25 (c) A notice of the election and a certified copy of the
18-26 order canvassing the election results shall be:
18-27 (1) sent to the Texas Department of Transportation and
19-1 the comptroller; and
19-2 (2) filed in the deed records of the county.
19-3 Sec. 40. SALES TAX: EFFECTIVE DATES. (a) An authority's
19-4 sales and use tax takes effect on the first day of the second
19-5 calendar quarter that begins after the date the comptroller
19-6 receives a copy of the order required to be sent under Subsection
19-7 (h) of Section 5 of this article.
19-8 (b) An increase or decrease in the rate of an authority's
19-9 sales and use tax takes effect on:
19-10 (1) the first day of the first calendar quarter that
19-11 begins after the date the comptroller receives the notice provided
19-12 under Subsection (c) of Section 39 of this article; or
19-13 (2) the first day of the second calendar quarter that
19-14 begins after the date the comptroller receives the notice, if
19-15 within 10 days after the date of receipt of the notice the
19-16 comptroller gives written notice to the presiding officer of the
19-17 board that the comptroller requires more time to implement tax
19-18 collection and reporting procedures.
19-19 Sec. 41. ELECTION TO DISSOLVE AUTHORITY. (a) A board may
19-20 order an election on the question of dissolving the authority.
19-21 (b) The board shall dissolve the authority if the
19-22 dissolution is approved by a majority of the votes cast.
19-23 (c) The provisions of Section 5 of this article that relate
19-24 to the notice and conduct of an election under that section apply
19-25 to an election to dissolve an authority unless a different
19-26 requirement is specified in this section.
19-27 (d) The board shall send a notice of the election to the
20-1 Texas Department of Transportation and the comptroller.
20-2 (e) At the election, the ballots shall be printed to permit
20-3 voting for or against the proposition: "Dissolution of (name of
20-4 authority)."
20-5 (f) The board shall send a certified copy of the order
20-6 canvassing the election results to the Texas Department of
20-7 Transportation and the comptroller and file a copy in the deed
20-8 records of the county.
20-9 (g) The repeal of an authority's sales and use tax under
20-10 this subchapter takes effect on:
20-11 (1) the first day of the first calendar quarter that
20-12 begins after the date the comptroller receives the notice of the
20-13 dissolution of the authority; or
20-14 (2) the first day of the second calendar quarter that
20-15 begins after the date the comptroller receives the notice, if
20-16 within 10 days after the date of receipt of the notice the
20-17 comptroller gives written notice to the presiding officer of the
20-18 board that the comptroller requires more time to implement the
20-19 repeal of the tax.
20-20 Sec. 42. WITHDRAWAL FROM AUTHORITY. (a) The governing body
20-21 of a unit of election may order an election to withdraw the unit
20-22 from an authority.
20-23 (b) On the determination by a governing body of a unit of
20-24 election that a petition for withdrawal under this chapter is
20-25 valid, the governing body shall order an election to withdraw the
20-26 unit of election from the authority.
20-27 (c) An election to withdraw may not be ordered, and a
21-1 petition for an election to withdraw may not be accepted for
21-2 filing, more frequently than once during each period of 12 months
21-3 preceding the anniversary of the date of the election confirming
21-4 the authority.
21-5 Sec. 43. PETITION FOR WITHDRAWAL. (a) At the request of a
21-6 qualified voter of a unit of election in an authority, the
21-7 municipal secretary or other clerk or administrator of the unit of
21-8 election shall deliver to the voter, in the number requested,
21-9 petition signature sheets for a petition to withdraw from the
21-10 authority prepared, numbered, and authenticated by the municipal
21-11 secretary or other official. During the period that signatures on
21-12 the petition may be obtained, the official shall authenticate and
21-13 deliver additional petition signature sheets as requested by the
21-14 voter. Only one petition for withdrawal may be in circulation at a
21-15 time.
21-16 (b) Each sheet of a petition must have a heading in capital
21-17 letters as follows:
21-18 "THIS PETITION IS TO REQUIRE AN ELECTION TO BE HELD IN
21-19 (name of the unit of election) TO DISSOLVE (name of
21-20 authority) IN (name of the unit of election) SUBJECT TO
21-21 THE CONTINUED COLLECTION OF SALES TAXES FOR THE PERIOD
21-22 REQUIRED BY LAW."
21-23 (c) In addition to the requirements of Section 277.002,
21-24 Election Code, to be valid a petition must:
21-25 (1) be signed on authenticated petition sheets by not
21-26 less than 10 percent of the number of registered voters of the unit
21-27 of election as shown on the voter registration list of the county;
22-1 (2) be filed with the secretary, clerk, or
22-2 administrator of the unit of election not later than the 60th day
22-3 after the date that the first sheet of the petition was received
22-4 under Subsection (a) of this section;
22-5 (3) contain signatures that are signed in ink or
22-6 indelible pencil by the voter; and
22-7 (4) have affixed or printed on each sheet an affidavit
22-8 that is executed before a notary public by the person who
22-9 circulated the sheet and that is in the following form and
22-10 substance:
22-11 "STATE OF TEXAS
22-12 "COUNTY OF _______________
22-13 "I, ____________________, affirm that I
22-14 personally witnessed each signer affix his or her
22-15 signature to this page of this petition for the
22-16 dissolution of (name of authority) in (name of unit of
22-17 election). I affirm to the best of my knowledge and
22-18 belief that each signature is the genuine signature of
22-19 the person whose name is signed and that the date
22-20 entered next to each signature is the date the
22-21 signature was affixed to this page.
22-22 ______________________
22-23 "Sworn to and subscribed before me this the ____
22-24 day of ___, ____.
22-25 (SEAL) ______________________________
22-26 Notary Public, State of Texas"
22-27 (d) Each sheet of the petition must be filed under
23-1 Subsection (c)(2) of this section at the same time as a single
23-2 filing.
23-3 (e) The secretary, clerk, or administrator of a unit of
23-4 election in which a petition for withdrawal from an authority is
23-5 filed shall examine the petition and file with the governing body
23-6 of the unit a report stating whether the petition, in the opinion
23-7 of the secretary, clerk, or administrator, is valid.
23-8 (f) On receipt of a petition and a report under Subsection
23-9 (e) of this section, the governing body shall examine the petition
23-10 to determine whether the petition is valid. The governing body may
23-11 hold public hearings and conduct or order investigations as
23-12 appropriate to make the determination. The governing body's
23-13 determination is conclusive of the issues.
23-14 (g) The governing body of a unit of election that receives
23-15 an invalid petition shall reject the petition.
23-16 (h) A petition that is rejected is void, and the petition
23-17 and each sheet of the rejected petition may not be used in
23-18 connection with a subsequent petition.
23-19 Sec. 44. WITHDRAWAL ELECTION. (a) An election to withdraw
23-20 from an authority must be held on the first applicable uniform
23-21 election date occurring after the expiration of 12 calendar months
23-22 after the date on which the governing body orders the election.
23-23 (b) The governing body shall give notice of the election to
23-24 the board, the Texas Department of Transportation, and the
23-25 comptroller immediately on calling the election.
23-26 (c) At the election the ballot shall be printed to permit
23-27 voting for or against the proposition: "Shall the (name of
24-1 authority) be continued in (name of unit of election)?"
24-2 (d) If a majority of the votes received on the measure in an
24-3 election favor the proposition, the authority continues in the unit
24-4 of election.
24-5 (e) If less than a majority of the votes received on the
24-6 measure in the election favor the proposition, the authority ceases
24-7 in the unit of election on the day after the date of the canvass of
24-8 the election.
24-9 (f) On the effective date of a withdrawal from an authority:
24-10 (1) the authority shall cease providing transportation
24-11 services in the withdrawn unit of election; and
24-12 (2) the financial obligations of the authority
24-13 attributable to the withdrawn unit of election cease to accrue.
24-14 (g) Withdrawal from an authority does not affect the right
24-15 of the authority to travel through the territory of the unit of
24-16 election to provide service to a unit of election that is a part of
24-17 the authority.
24-18 Sec. 45. PROCEDURE AFTER WITHDRAWAL ELECTION. (a) Until
24-19 the amount of revenue from an authority's sales and use tax
24-20 collected in a withdrawn unit of election after the effective date
24-21 of withdrawal and paid to the authority equals the total financial
24-22 obligation of the unit, the sales and use tax continues to be
24-23 collected in the territory of the election unit.
24-24 (b) After the amount described by Subsection (a) of this
24-25 section has been collected, the comptroller shall discontinue
24-26 collecting the tax in the territory of the unit of election.
24-27 (c) The total financial obligation of a withdrawn unit of
25-1 election to the authority is an amount equal to:
25-2 (1) the unit's apportioned share of the authority's
25-3 outstanding obligations; and
25-4 (2) the amount, not computed under Subdivision (1) of
25-5 this subsection, that is necessary and appropriate to allocate to
25-6 the unit because of financial obligations of the authority that
25-7 specifically relate to the unit.
25-8 (d) An authority's outstanding obligations under Subsection
25-9 (c)(1) of this section is the sum of:
25-10 (1) the obligations of the authority authorized in the
25-11 budget of, and contracted for by, the authority;
25-12 (2) outstanding contractual obligations for capital or
25-13 other expenditures, including expenditures for a subsequent year,
25-14 the payment of which is not made or provided for from the proceeds
25-15 of notes, bonds, or other obligations;
25-16 (3) payments due or to become due in a subsequent year
25-17 on notes, bonds, or other securities or obligations for debt issued
25-18 by the authority;
25-19 (4) the amount required by the authority to be
25-20 reserved for all years to comply with financial covenants made with
25-21 lenders, note or bond holders, or other creditors or contractors;
25-22 and
25-23 (5) the amount necessary for the full and timely
25-24 payment of the obligations of the authority, to avoid a default or
25-25 impairment of those obligations, including contingent liabilities.
25-26 (e) The apportioned share of a unit's obligation is the
25-27 amount of the obligation times a fraction, the numerator of which
26-1 is the number of inhabitants of the withdrawing unit of election
26-2 and the denominator of which is the number of inhabitants of the
26-3 authority, including the number of inhabitants of the unit.
26-4 (f) The board shall determine the amount of each component
26-5 of the computations required under this section, including the
26-6 components of the unit's apportioned share, as of the effective
26-7 date of withdrawal. The number of inhabitants shall be determined
26-8 according to the most recent and available applicable data of an
26-9 agency of the United States.
26-10 (g) The board shall certify to a withdrawn unit of election
26-11 and to the comptroller the total financial obligation of the unit
26-12 to the authority as determined under this section.
26-13 SECTION 2. This Act takes effect September 1, 1995.
26-14 SECTION 3. The importance of this legislation and the
26-15 crowded condition of the calendars in both houses create an
26-16 emergency and an imperative public necessity that the
26-17 constitutional rule requiring bills to be read on three several
26-18 days in each house be suspended, and this rule is hereby suspended.