1-1 By: Rosson S.B. No. 1388
1-2 (In the Senate - Filed March 13, 1995; March 20, 1995, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 19, 1995, reported favorably by the following
1-5 vote: Yeas 8, Nays 0; April 19, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the creation of a county mass transit authority.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Chapter 10, Title 28, Revised Statutes, is
1-11 amended by adding Article 1118z-1 to read as follows:
1-12 Art. 1118z-1. COUNTY MASS TRANSIT AUTHORITY
1-13 Sec. 1. DEFINITIONS. In this article:
1-14 (1) "Authority" means a mass transit authority created
1-15 under this article.
1-16 (2) "Bond" includes a note.
1-17 (3) "Board" means the governing body of an authority.
1-18 (4) "Mass transit" means the transportation of
1-19 passengers and hand-carried packages or baggage of a passenger by
1-20 any means of surface, overhead, or underground transportation,
1-21 other than an aircraft or taxicab.
1-22 (5) "Principal municipality" means the municipality of
1-23 greatest population in a county to which this article applies.
1-24 (6) "Transit authority system" means:
1-25 (A) property owned or held by an authority for
1-26 mass transit purposes; and
1-27 (B) facilities necessary or convenient for:
1-28 (i) the use of or access to mass transit
1-29 by persons or vehicles; or
1-30 (ii) the protection or environmental
1-31 enhancement of mass transit.
1-32 (7) "Unit of election" means a municipality, including
1-33 the principal municipality, or the unincorporated area of a county.
1-34 Sec. 2. APPLICATION. This article applies only to a county
1-35 containing a municipality with a population of 500,000 or greater
1-36 that has created a mass transit department under Article 1118z,
1-37 Revised Statutes.
1-38 Sec. 3. CREATION OF AUTHORITY. (a) An authority is created
1-39 under this article if a resolution finding that the creation of an
1-40 authority would be in the public interest and a benefit to persons
1-41 residing in the county is adopted by:
1-42 (1) the county commissioners court;
1-43 (2) the governing body of the principal municipality;
1-44 and
1-45 (3) the governing body of at least one municipality
1-46 other than the principal municipality.
1-47 (b) An authority may not be created if the rate of the sales
1-48 and use tax charged by the city transit department of the principal
1-49 municipality, when added to an existing sales and use tax collected
1-50 in the county other than by the principal municipality, would
1-51 exceed the limit imposed by Section 38 of this article.
1-52 Sec. 4. BOARD OF AUTHORITY. (a) The board of an authority
1-53 consists of seven members. A member of the board serves without
1-54 compensation but is entitled to reimbursement for expenses incurred
1-55 in board service. The board shall elect one of its members as
1-56 presiding officer. The members are appointed as follows:
1-57 (1) two members by the county commissioners court;
1-58 (2) four members by the governing body of the
1-59 principal municipality; and
1-60 (3) one member by the governing bodies of all
1-61 municipalities that adopt the resolution described by Section 3 of
1-62 this article.
1-63 (b) A member of the board serves at the pleasure of the
1-64 appointing entity.
1-65 (c) The board shall administer and operate the authority.
1-66 (d) The board shall hold at least one regular meeting each
1-67 month for the purpose of transacting business of the authority.
1-68 (e) The presiding officer may call a special meeting of the
2-1 board.
2-2 Sec. 5. CONFIRMATION ELECTION. (a) If an authority is
2-3 created under Section 3 of this article, the board shall propose a
2-4 service plan and an initial tax rate for the authority. The
2-5 initial tax rate must be the same rate as that collected by the
2-6 city transit department created by the principal municipality.
2-7 (b) After proposing a service plan and an initial tax rate,
2-8 the board shall call an election in the county to approve the
2-9 creation of the authority and the tax rate. The election must be
2-10 held on a uniform election date but may not be held on the same day
2-11 as an election held by the county under Section 323.101, Tax Code.
2-12 The election is not held in the territory of the principal
2-13 municipality.
2-14 (c) Notice of the election must include a description of the
2-15 nature and rate of the proposed tax. The board shall send a copy
2-16 of the notice to the Texas Department of Transportation and the
2-17 comptroller.
2-18 (d) At the election the ballots shall be printed to permit
2-19 voting for or against the following proposition: "The creation of
2-20 the (name of county) Transit Authority and the imposition of a
2-21 (rate of tax) percent sales and use tax in (name of county)
2-22 County."
2-23 (e) If a majority of the votes cast at the election approve
2-24 the proposition:
2-25 (1) the board shall record the result in its minutes
2-26 and adopt an order implementing the service plan; and
2-27 (2) on the day the sales and use tax takes effect in
2-28 the authority, the city transit department created by the principal
2-29 municipality under Article 1118z, Revised Statutes, is dissolved,
2-30 and its assets, personnel, and obligations are transferred to the
2-31 authority.
2-32 (f) If less than a majority of the votes cast at the
2-33 election approve the proposition, the board shall adopt an order
2-34 dissolving the authority, and the city transit department of the
2-35 principal municipality is not affected.
2-36 (g) The jurisdiction of an authority is coextensive with the
2-37 territory of the county.
2-38 (h) The board shall file a certified copy of an order
2-39 adopted under Subsection (e)(1) or (f) of this section with the
2-40 Texas Department of Transportation, with the comptroller, and in
2-41 the deed records of the county.
2-42 Sec. 6. CONFLICTS OF INTEREST: AUTHORITY EMPLOYEES. An
2-43 employee of an authority may not have a pecuniary interest in, or
2-44 receive a benefit from, an agreement to which the authority is a
2-45 party.
2-46 Sec. 7. TRANSFER OF RESOURCES BETWEEN MUNICIPALITY AND
2-47 AUTHORITY. (a) The governing body of a municipality may transfer
2-48 to an authority created under this article:
2-49 (1) property and employees of a division of the
2-50 municipality that before the creation of the authority was
2-51 responsible for municipal public transportation; and
2-52 (2) municipal funds that may be used for mass transit.
2-53 (b) The governing body may abolish or change the functions
2-54 of the municipal division formerly responsible for municipal public
2-55 transportation.
2-56 (c) If an authority is required to be dissolved under this
2-57 article, the board, on dissolution of the authority, shall transfer
2-58 to a municipality the funds, property, and employees that were
2-59 transferred to the authority under this section. The governing
2-60 body of the municipality may then re-create or change the duties of
2-61 any municipal division abolished or changed as a result of
2-62 transfers made under this section.
2-63 Sec. 8. INVESTMENTS. (a) A board may invest authority
2-64 funds in any obligation, security, or evidence of indebtedness in
2-65 which the principal municipality may invest municipal funds.
2-66 (b) In making an investment of authority funds, a board
2-67 shall exercise the judgment and care, under the circumstances
2-68 prevailing at the time of making the investment, that persons of
2-69 ordinary prudence, discretion, and intelligence exercise in the
2-70 management of their own affairs in making a permanent and
3-1 nonspeculative disposition of their funds, considering the probable
3-2 income from the disposition and the probable safety of their
3-3 capital.
3-4 Sec. 9. DEPOSIT OF MONEY. (a) The board shall designate
3-5 one or more banks as depositories for authority funds. All
3-6 authority money, other than money invested as provided by Section 8
3-7 of this article, shall be deposited in one or more of the
3-8 authority's depository banks.
3-9 (b) Funds in a depository, to the extent that those funds
3-10 are not insured by the Federal Deposit Insurance Corporation, shall
3-11 be secured in the manner provided by law for the security of county
3-12 funds.
3-13 Sec. 10. LIABILITY OF CREATING ENTITIES. The political
3-14 subdivisions that adopt a resolution under Subsection (a) of
3-15 Section 3 of this article are liable for an expense the authority
3-16 incurs before the date a sales and use tax is approved for the
3-17 authority under this article, including the costs of holding the
3-18 election.
3-19 Sec. 11. ACQUIRING AND DISPOSING OF PROPERTY. (a) An
3-20 authority may acquire, hold, use, sell, lease, or dispose of
3-21 property, including licenses, patents, rights, and other interests,
3-22 necessary, convenient, or useful for the full exercise of any of
3-23 its powers under this article.
3-24 (b) The authority may acquire property described in
3-25 Subsection (a) in any manner, including by gift or devise.
3-26 (c) An authority may dispose of, by sale, lease, or other
3-27 conveyance:
3-28 (1) any property of the authority not needed for the
3-29 efficient operation and maintenance of the authority system; and
3-30 (2) any surplus property not needed for its
3-31 requirements or for the purpose of carrying out its powers under
3-32 this article.
3-33 (d) The lease of unneeded property under Subsection (c) must
3-34 be consistent with the efficient operation and maintenance of the
3-35 transit authority system.
3-36 Sec. 12. TRANSIT AUTHORITY SYSTEM. (a) An authority may:
3-37 (1) acquire, construct, own, operate, and maintain a
3-38 transit authority system;
3-39 (2) use any public way; and
3-40 (3) construct, repair, and maintain a municipal
3-41 street, as authorized by the governing body of a municipality in
3-42 the authority.
3-43 (b) In the exercise of a power under Subsection (a) of this
3-44 section, an authority may relocate or reroute, or alter the
3-45 construction of, any public or private property, including:
3-46 (1) an alley, road, street, or railroad;
3-47 (2) an electric line and facility;
3-48 (3) a telegraph and telephone property and facility;
3-49 (4) a pipeline and facility; and
3-50 (5) a conduit and facility.
3-51 Sec. 13. FARES AND OTHER CHARGES. The board shall, after a
3-52 public hearing, impose reasonable and nondiscriminatory fares,
3-53 tolls, charges, rents, or other compensation for the use of the
3-54 transit authority system sufficient to produce revenue, together
3-55 with receipts from taxes imposed by the authority, in an amount
3-56 adequate to:
3-57 (1) pay all the expenses necessary to operate and
3-58 maintain the transit authority system;
3-59 (2) pay when due the principal of and interest on, and
3-60 sinking fund and reserve fund payments agreed to be made with
3-61 respect to, all bonds that are issued by the board and payable in
3-62 whole or part from the revenue; and
3-63 (3) fulfill the terms of any other agreement with the
3-64 holders of bonds described by Subdivision (2) of this section or
3-65 with a person acting on behalf of the bondholders.
3-66 Sec. 14. AGREEMENT WITH UTILITIES, CARRIERS. An authority
3-67 may agree with a public or private utility, communication system,
3-68 common carrier, or transportation system for:
3-69 (1) the joint use of the property of the agreeing
3-70 entities in the authority; or
4-1 (2) the establishment of through routes, joint fares,
4-2 or transfers of passengers.
4-3 Sec. 15. CONTRACTS; ACQUISITION OF PROPERTY BY AGREEMENT.
4-4 (a) An authority may contract with any person and may accept a
4-5 grant or loan from any person.
4-6 (b) An authority may acquire rolling stock or other property
4-7 under a contract or trust agreement, including a conditional sales
4-8 contract, lease, and equipment trust certificate.
4-9 Sec. 16. USE AND ACQUISITION OF PROPERTY OF OTHERS. (a) An
4-10 authority may not alter or damage any property of this state or a
4-11 political subdivision of this state or owned by a person rendering
4-12 public services and may not disrupt services being provided by
4-13 others or inconvenience in any other manner an owner of property,
4-14 without first having obtained:
4-15 (1) the written consent of the owner; or
4-16 (2) the right from the governing body of the
4-17 municipality to take the action under the municipality's power of
4-18 eminent domain.
4-19 (b) An authority may agree with an owner of property to
4-20 provide for:
4-21 (1) a necessary relocation or alteration of property
4-22 by the owner or a contractor chosen by the owner; and
4-23 (2) the reimbursement by the authority to the owner of
4-24 the costs incurred by the owner in making the relocation or
4-25 alteration.
4-26 (c) The authority shall pay the cost of any relocation,
4-27 rerouting, or other alteration in the construction made under this
4-28 chapter and is liable for any damage to property occurring because
4-29 of the change.
4-30 Sec. 17. ROUTES. An authority shall determine each route,
4-31 including route changes, as the board considers advisable.
4-32 Sec. 18. TORT LIABILITY AND GOVERNMENTAL IMMUNITY. (a) An
4-33 authority is a separate governmental unit for purposes of Chapter
4-34 101, Civil Practice and Remedies Code, and operations of an
4-35 authority are essential governmental functions and not proprietary
4-36 functions for all purposes, including the purposes of that chapter.
4-37 (b) This chapter does not create or confer any governmental
4-38 immunity or limitation of liability on any entity that is not a
4-39 governmental unit, governmental entity or authority, or public
4-40 agency or a subdivision of one of those persons. In this
4-41 subsection, "governmental unit" has the meaning assigned by Section
4-42 101.001, Civil Practice and Remedies Code.
4-43 Sec. 19. TAX EXEMPTION. The assets of an authority are
4-44 exempt from any tax of the state or a state taxing authority.
4-45 Sec. 20. TRANSPORTATION FOR JOBS PROGRAM PARTICIPANTS.
4-46 (a) An authority shall contract with the Texas Department of Human
4-47 Services to provide, in accordance with federal law, transportation
4-48 services to a person who:
4-49 (1) resides in the area served by the authority;
4-50 (2) is receiving financial assistance under Chapter
4-51 31, Human Resources Code; and
4-52 (3) is registered in the jobs opportunities and basic
4-53 skills training program under Part F, Subchapter IV, Social
4-54 Security Act, as amended (42 U.S.C. Section 682).
4-55 (b) The contract must include provisions to ensure that:
4-56 (1) the authority is required to provide
4-57 transportation services only to a location:
4-58 (A) to which the person travels in connection
4-59 with participation in the jobs opportunities and basic skills
4-60 training program; and
4-61 (B) that the authority serves under the
4-62 authority's authorized rate structure and existing services;
4-63 (2) the authority is to provide directly to the Texas
4-64 Department of Human Services trip vouchers for distribution by the
4-65 Texas Department of Human Services to a person who is eligible
4-66 under this section to receive transportation services;
4-67 (3) the Texas Department of Human Services reimburses
4-68 the authority for allowable costs, at the applicable federal
4-69 matching rate; and
4-70 (4) the Texas Department of Human Services may return
5-1 undistributed trip vouchers to the authority.
5-2 (c) An authority shall certify the amount of public funds
5-3 spent by the authority under this section for the purpose of
5-4 obtaining federal funds under the jobs opportunities and basic
5-5 skills training program.
5-6 Sec. 21. WAIVER OF FEDERAL REQUIREMENTS. If, before
5-7 implementing Section 20 of this article, the Texas Department of
5-8 Human Services determines that a waiver or authorization from a
5-9 federal agency is necessary for implementation, the Texas
5-10 Department of Human Services shall request the waiver or
5-11 authorization, and the Texas Department of Human Services and an
5-12 authority may delay implementing Section 20 until the waiver or
5-13 authorization is granted.
5-14 Sec. 22. PURCHASE AND PERCENT OF VEHICLES USING ALTERNATIVE
5-15 FUELS. (a) An authority may not purchase or lease a motor vehicle
5-16 that is not capable of using compressed natural gas or another
5-17 alternative fuel the use of which results in comparably lower
5-18 emissions of oxides of nitrogen, volatile organic compounds, carbon
5-19 monoxide, or particulates or combinations of those materials.
5-20 (b) After August 31, 1996, at least 50 percent of the fleet
5-21 vehicles operated by an authority must be capable of using
5-22 compressed natural gas or another alternative fuel.
5-23 (b-1) At least 30 percent of the fleet vehicles operated by
5-24 an authority must be capable of using compressed natural gas or
5-25 another alternative fuel. This subsection expires September 1,
5-26 1996.
5-27 (c) The Texas Natural Resource Conservation Commission,
5-28 before 1997, shall review the alternative fuels use program under
5-29 this section. If the commission determines that the program has
5-30 been effective in reducing total annual emissions from motor
5-31 vehicles in the area, the authority shall achieve a percentage of
5-32 fleet vehicles capable of using compressed natural gas or other
5-33 alternative fuels of at least 90 percent of the number of fleet
5-34 vehicles operated after August 31, 1998.
5-35 Sec. 23. ALTERNATIVE FUELS USE PROGRAM: EXCEPTIONS.
5-36 (a) An authority may make exceptions to the requirements of
5-37 Section 22 of this article if the authority certifies the facts
5-38 described by Subsection (b) of this section.
5-39 (b) A certification under this section must state that:
5-40 (1) the authority's vehicles will be operating
5-41 primarily in an area in which neither the authority nor a supplier
5-42 has or can reasonably be expected to establish a central refueling
5-43 station for compressed natural gas or other alternative fuels; or
5-44 (2) the authority is unable to acquire or be provided
5-45 equipment or refueling facilities necessary to operate vehicles
5-46 using compressed natural gas or other alternative fuels at a
5-47 project cost that is reasonably expected to result in no greater
5-48 net cost than the continued use of traditional gasoline or diesel
5-49 fuel measured over the expected useful life of the equipment or
5-50 facilities supplied.
5-51 Sec. 24. ALTERNATIVE FUELS EQUIPMENT AND FACILITIES.
5-52 (a) In addition to other methods authorized by law, an authority
5-53 may acquire or be provided equipment or refueling facilities by an
5-54 arrangement, including a gift or a loan, under a service contract
5-55 for the supply of compressed natural gas or other alternative
5-56 fuels.
5-57 (b) If an authority acquires or is provided equipment or
5-58 facilities as authorized by Subsection (a) of this section, the
5-59 supplier is entitled, under the supply contract, to recover the
5-60 cost of giving, loaning, or providing the equipment or facilities
5-61 through the fuel charges.
5-62 Sec. 25. ALTERNATIVE FUELS USE PROGRAM: VEHICLES COVERED
5-63 AND SAFETY. (a) In developing a compressed natural gas or other
5-64 alternative fuels use program, an authority should work with
5-65 vehicle manufacturers and converters, fuel distributors, and others
5-66 to specify the vehicles to be covered considering relevant factors,
5-67 including vehicle range, specialty vehicle uses, fuel availability,
5-68 vehicle manufacturing and conversion capability, safety, and resale
5-69 value.
5-70 (b) The authority may meet the percentage requirements of
6-1 Section 22 of this article by:
6-2 (1) purchasing new vehicles; or
6-3 (2) converting existing vehicles, in conformity with
6-4 federal and state requirements and applicable safety laws, to
6-5 alternative fuels use.
6-6 (c) In purchasing, leasing, maintaining, or converting a
6-7 vehicle for alternative fuels use, the authority shall comply with
6-8 all applicable safety standards adopted by the United States
6-9 Department of Transportation or the Railroad Commission of Texas or
6-10 their successor agencies.
6-11 Sec. 26. ALTERNATIVE FUELS USE PROGRAM: REPORTS. (a) Not
6-12 later than December 31 of each year, an authority shall file an
6-13 annual report with the Texas Natural Resource Conservation
6-14 Commission showing:
6-15 (1) purchases, leases, and conversions of motor
6-16 vehicles;
6-17 (2) the amount of compressed natural gas and other
6-18 alternative fuels used; and
6-19 (3) any other information required by the commission
6-20 relevant to the alternative fuels use program.
6-21 (b) The commission may require reporting from an authority
6-22 to document air quality benefits from an alternative fuels use
6-23 program.
6-24 Sec. 27. POWER TO ISSUE BONDS. (a) An authority may issue
6-25 revenue bonds at any time and for any amounts it considers
6-26 necessary or appropriate for:
6-27 (1) the acquisition, construction, repair, equipping,
6-28 improvement, or extension of its transit system; or
6-29 (2) the construction or general maintenance of streets
6-30 of the creating municipality.
6-31 (b) Bonds payable solely from revenues may be issued by
6-32 resolution of the board.
6-33 (c) Bonds, other than refunding bonds, any portion of which
6-34 is payable from tax revenue may not be issued until authorized by a
6-35 majority vote of the voters of the authority voting in an election.
6-36 Sec. 28. BOND TERMS. (a) An authority's bonds are fully
6-37 negotiable.
6-38 (b) The authority may make the bonds redeemable before
6-39 maturity at the price and subject to the terms and conditions that
6-40 are provided in the resolution authorizing the bonds.
6-41 (c) A revenue bond indenture may limit a power of the
6-42 authority provided by this article as long as the bond containing
6-43 the indenture is outstanding and unpaid.
6-44 Sec. 29. SALE. Bonds may be sold at a public or private
6-45 sale as determined by the board.
6-46 Sec. 30. APPROVAL; REGISTRATION. (a) An authority's bonds
6-47 and the records relating to their issuance shall be submitted to
6-48 the attorney general for examination before the bonds may be
6-49 delivered.
6-50 (b) If the attorney general finds that the bonds have been
6-51 issued in conformity with the constitution and this article and
6-52 that the bonds will be a binding obligation of the issuing
6-53 authority, the attorney general shall approve the bonds.
6-54 (c) After the bonds are approved by the attorney general,
6-55 the comptroller shall register the bonds.
6-56 Sec. 31. INCONTESTABILITY. Bonds are incontestable after
6-57 they are:
6-58 (1) approved by the attorney general;
6-59 (2) registered by the comptroller; and
6-60 (3) sold and delivered to the purchaser.
6-61 Sec. 32. SECURITY PLEDGED. (a) To secure the payment of an
6-62 authority's bonds, the authority may:
6-63 (1) pledge all or part of revenue received from any
6-64 tax that the authority may impose;
6-65 (2) pledge all or part of the revenue of the transit
6-66 authority system; and
6-67 (3) mortgage all or part of the transit authority
6-68 system, including any part of the system subsequently acquired.
6-69 (b) Under Subsection (a)(3) of this section, the authority
6-70 may, subject to the terms of the bond indenture or resolution
7-1 authorizing the issuance of the bonds, encumber a separate item of
7-2 the transit authority system and acquire, use, hold, or contract
7-3 for any property by lease, chattel mortgage, or other conditional
7-4 sale, including an equipment trust transaction.
7-5 Sec. 33. PLEDGE OF REVENUE LIMITED. The expenses of
7-6 operation and maintenance of a transit authority system, including
7-7 salaries, labor, materials, and repairs necessary to provide
7-8 efficient service and every other proper item of expense, are a
7-9 first lien and charge against any revenue of an authority that is
7-10 encumbered under this article.
7-11 Sec. 34. REFUNDING BONDS. An authority may issue refunding
7-12 bonds for the purposes and in the manner authorized by Chapter 503,
7-13 Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas
7-14 Civil Statutes), Chapter 784, Acts of the 61st Legislature, Regular
7-15 Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes), or
7-16 other law.
7-17 Sec. 35. BONDS AS AUTHORIZED INVESTMENTS. (a) An
7-18 authority's bonds are authorized investments for:
7-19 (1) a bank;
7-20 (2) a trust company;
7-21 (3) a savings and loan association; and
7-22 (4) an insurance company.
7-23 (b) The bonds, when accompanied by all appurtenant,
7-24 unmatured coupons and to the extent of the lesser of their face
7-25 value or market value, are eligible to secure the deposit of public
7-26 funds of this state, a political subdivision of this state, and any
7-27 other political corporation of this state.
7-28 Sec. 36. INTEREST EXEMPTION. Interest on bonds issued by an
7-29 authority is exempt from any tax of the state or a state taxing
7-30 authority.
7-31 Sec. 37. SALES AND USE TAX. (a) The board may impose for
7-32 the authority a sales and use tax at a permissible rate that does
7-33 not exceed the rate approved by the voters at an election under
7-34 this article.
7-35 (b) The board by order may:
7-36 (1) decrease the rate of the sales and use tax for the
7-37 authority to a permissible rate; or
7-38 (2) call an election for the increase or decrease of
7-39 the sales and use tax to a permissible rate.
7-40 (c) The permissible rates for a sales and use tax imposed
7-41 under this article are:
7-42 (1) one-quarter of one percent; and
7-43 (2) one-half of one percent.
7-44 (d) Chapter 322, Tax Code, applies to an authority's sales
7-45 and use tax.
7-46 Sec. 38. MAXIMUM TAX RATE. (a) A board may not adopt a
7-47 sales and use tax rate, including a rate increase, that when
7-48 combined with the rates of all sales and use taxes imposed by all
7-49 political subdivisions of this state having territory in the county
7-50 exceeds two percent in any location in the county.
7-51 (b) An election by an authority to approve a sales and use
7-52 tax or increase the rate of the authority's sales and use tax has
7-53 no effect if:
7-54 (1) the voters of the authority approve the
7-55 authority's sales and use tax rate or rate increase at an election
7-56 held on the same day on which the municipality or county having
7-57 territory in the jurisdiction of the authority adopts a sales and
7-58 use tax or an additional sales and use tax; and
7-59 (2) the combined rates of all sales and use taxes
7-60 imposed by the authority and all political subdivisions of this
7-61 state would exceed two percent in any part of the territory in the
7-62 jurisdiction of the authority.
7-63 Sec. 39. ELECTION TO CHANGE TAX RATE. (a) At an election
7-64 ordered under Subsection (b)(2) of Section 37 of this article, the
7-65 ballots shall be printed to permit voting for or against the
7-66 proposition: "The increase (decrease) of the local sales and use
7-67 tax rate of (name of authority) to (percentage)."
7-68 (b) The increase or decrease in the tax rate becomes
7-69 effective only if it is approved by a majority of the votes cast.
7-70 (c) A notice of the election and a certified copy of the
8-1 order canvassing the election results shall be:
8-2 (1) sent to the Texas Department of Transportation and
8-3 the comptroller; and
8-4 (2) filed in the deed records of the county.
8-5 Sec. 40. SALES TAX: EFFECTIVE DATES. (a) An authority's
8-6 sales and use tax takes effect on the first day of the second
8-7 calendar quarter that begins after the date the comptroller
8-8 receives a copy of the order required to be sent under Subsection
8-9 (h) of Section 5 of this article.
8-10 (b) An increase or decrease in the rate of an authority's
8-11 sales and use tax takes effect on:
8-12 (1) the first day of the first calendar quarter that
8-13 begins after the date the comptroller receives the notice provided
8-14 under Subsection (c) of Section 39 of this article; or
8-15 (2) the first day of the second calendar quarter that
8-16 begins after the date the comptroller receives the notice, if
8-17 within 10 days after the date of receipt of the notice the
8-18 comptroller gives written notice to the presiding officer of the
8-19 board that the comptroller requires more time to implement tax
8-20 collection and reporting procedures.
8-21 Sec. 41. ELECTION TO DISSOLVE AUTHORITY. (a) A board may
8-22 order an election on the question of dissolving the authority.
8-23 (b) The board shall dissolve the authority if the
8-24 dissolution is approved by a majority of the votes cast.
8-25 (c) The provisions of Section 5 of this article that relate
8-26 to the notice and conduct of an election under that section apply
8-27 to an election to dissolve an authority unless a different
8-28 requirement is specified in this section.
8-29 (d) The board shall send a notice of the election to the
8-30 Texas Department of Transportation and the comptroller.
8-31 (e) At the election, the ballots shall be printed to permit
8-32 voting for or against the proposition: "Dissolution of (name of
8-33 authority)."
8-34 (f) The board shall send a certified copy of the order
8-35 canvassing the election results to the Texas Department of
8-36 Transportation and the comptroller and file a copy in the deed
8-37 records of the county.
8-38 (g) The repeal of an authority's sales and use tax under
8-39 this subchapter takes effect on:
8-40 (1) the first day of the first calendar quarter that
8-41 begins after the date the comptroller receives the notice of the
8-42 dissolution of the authority; or
8-43 (2) the first day of the second calendar quarter that
8-44 begins after the date the comptroller receives the notice, if
8-45 within 10 days after the date of receipt of the notice the
8-46 comptroller gives written notice to the presiding officer of the
8-47 board that the comptroller requires more time to implement the
8-48 repeal of the tax.
8-49 Sec. 42. WITHDRAWAL FROM AUTHORITY. (a) The governing body
8-50 of a unit of election may order an election to withdraw the unit
8-51 from an authority.
8-52 (b) On the determination by a governing body of a unit of
8-53 election that a petition for withdrawal under this chapter is
8-54 valid, the governing body shall order an election to withdraw the
8-55 unit of election from the authority.
8-56 (c) An election to withdraw may not be ordered, and a
8-57 petition for an election to withdraw may not be accepted for
8-58 filing, more frequently than once during each period of 12 months
8-59 preceding the anniversary of the date of the election confirming
8-60 the authority.
8-61 Sec. 43. PETITION FOR WITHDRAWAL. (a) At the request of a
8-62 qualified voter of a unit of election in an authority, the
8-63 municipal secretary or other clerk or administrator of the unit of
8-64 election shall deliver to the voter, in the number requested,
8-65 petition signature sheets for a petition to withdraw from the
8-66 authority prepared, numbered, and authenticated by the municipal
8-67 secretary or other official. During the period that signatures on
8-68 the petition may be obtained, the official shall authenticate and
8-69 deliver additional petition signature sheets as requested by the
8-70 voter. Only one petition for withdrawal may be in circulation at a
9-1 time.
9-2 (b) Each sheet of a petition must have a heading in capital
9-3 letters as follows:
9-4 "THIS PETITION IS TO REQUIRE AN ELECTION TO BE HELD IN (name of the
9-5 unit of election) TO DISSOLVE (name of authority) IN (name of the
9-6 unit of election) SUBJECT TO THE CONTINUED COLLECTION OF SALES
9-7 TAXES FOR THE PERIOD REQUIRED BY LAW."
9-8 (c) In addition to the requirements of Section 277.002,
9-9 Election Code, to be valid a petition must:
9-10 (1) be signed on authenticated petition sheets by not
9-11 less than 10 percent of the number of registered voters of the unit
9-12 of election as shown on the voter registration list of the county;
9-13 (2) be filed with the secretary, clerk, or
9-14 administrator of the unit of election not later than the 60th day
9-15 after the date that the first sheet of the petition was received
9-16 under Subsection (a) of this section;
9-17 (3) contain signatures that are signed in ink or
9-18 indelible pencil by the voter; and
9-19 (4) have affixed or printed on each sheet an affidavit
9-20 that is executed before a notary public by the person who
9-21 circulated the sheet and that is in the following form and
9-22 substance:
9-23 "STATE OF TEXAS
9-24 "COUNTY OF _______________
9-25 "I, ____________________, affirm that I personally witnessed
9-26 each signer affix his or her signature to this page of this
9-27 petition for the dissolution of (name of authority) in (name of
9-28 unit of election). I affirm to the best of my knowledge and belief
9-29 that each signature is the genuine signature of the person whose
9-30 name is signed and that the date entered next to each signature is
9-31 the date the signature was affixed to this page.
9-32 ______________________
9-33 "Sworn to and subscribed before me this the ____ day of ___,
9-34 ____.
9-35 (SEAL) ______________________________
9-36 Notary Public, State of Texas"
9-37 (d) Each sheet of the petition must be filed under
9-38 Subsection (c)(2) of this section at the same time as a single
9-39 filing.
9-40 (e) The secretary, clerk, or administrator of a unit of
9-41 election in which a petition for withdrawal from an authority is
9-42 filed shall examine the petition and file with the governing body
9-43 of the unit a report stating whether the petition, in the opinion
9-44 of the secretary, clerk, or administrator, is valid.
9-45 (f) On receipt of a petition and a report under Subsection
9-46 (e) of this section, the governing body shall examine the petition
9-47 to determine whether the petition is valid. The governing body may
9-48 hold public hearings and conduct or order investigations as
9-49 appropriate to make the determination. The governing body's
9-50 determination is conclusive of the issues.
9-51 (g) The governing body of a unit of election that receives
9-52 an invalid petition shall reject the petition.
9-53 (h) A petition that is rejected is void, and the petition
9-54 and each sheet of the rejected petition may not be used in
9-55 connection with a subsequent petition.
9-56 Sec. 44. WITHDRAWAL ELECTION. (a) An election to withdraw
9-57 from an authority must be held on the first applicable uniform
9-58 election date occurring after the expiration of 12 calendar months
9-59 after the date on which the governing body orders the election.
9-60 (b) The governing body shall give notice of the election to
9-61 the board, the Texas Department of Transportation, and the
9-62 comptroller immediately on calling the election.
9-63 (c) At the election the ballot shall be printed to permit
9-64 voting for or against the proposition: "Shall the (name of
9-65 authority) be continued in (name of unit of election)?"
9-66 (d) If a majority of the votes received on the measure in an
9-67 election favor the proposition, the authority continues in the unit
9-68 of election.
9-69 (e) If less than a majority of the votes received on the
9-70 measure in the election favor the proposition, the authority ceases
10-1 in the unit of election on the day after the date of the canvass of
10-2 the election.
10-3 (f) On the effective date of a withdrawal from an authority:
10-4 (1) the authority shall cease providing transportation
10-5 services in the withdrawn unit of election; and
10-6 (2) the financial obligations of the authority
10-7 attributable to the withdrawn unit of election cease to accrue.
10-8 (g) Withdrawal from an authority does not affect the right
10-9 of the authority to travel through the territory of the unit of
10-10 election to provide service to a unit of election that is a part of
10-11 the authority.
10-12 Sec. 45. PROCEDURE AFTER WITHDRAWAL ELECTION. (a) Until
10-13 the amount of revenue from an authority's sales and use tax
10-14 collected in a withdrawn unit of election after the effective date
10-15 of withdrawal and paid to the authority equals the total financial
10-16 obligation of the unit, the sales and use tax continues to be
10-17 collected in the territory of the election unit.
10-18 (b) After the amount described by Subsection (a) of this
10-19 section has been collected, the comptroller shall discontinue
10-20 collecting the tax in the territory of the unit of election.
10-21 (c) The total financial obligation of a withdrawn unit of
10-22 election to the authority is an amount equal to:
10-23 (1) the unit's apportioned share of the authority's
10-24 outstanding obligations; and
10-25 (2) the amount, not computed under Subdivision (1) of
10-26 this subsection, that is necessary and appropriate to allocate to
10-27 the unit because of financial obligations of the authority that
10-28 specifically relate to the unit.
10-29 (d) An authority's outstanding obligations under Subsection
10-30 (c)(1) of this section is the sum of:
10-31 (1) the obligations of the authority authorized in the
10-32 budget of, and contracted for by, the authority;
10-33 (2) outstanding contractual obligations for capital or
10-34 other expenditures, including expenditures for a subsequent year,
10-35 the payment of which is not made or provided for from the proceeds
10-36 of notes, bonds, or other obligations;
10-37 (3) payments due or to become due in a subsequent year
10-38 on notes, bonds, or other securities or obligations for debt issued
10-39 by the authority;
10-40 (4) the amount required by the authority to be
10-41 reserved for all years to comply with financial covenants made with
10-42 lenders, note or bond holders, or other creditors or contractors;
10-43 and
10-44 (5) the amount necessary for the full and timely
10-45 payment of the obligations of the authority, to avoid a default or
10-46 impairment of those obligations, including contingent liabilities.
10-47 (e) The apportioned share of a unit's obligation is the
10-48 amount of the obligation times a fraction, the numerator of which
10-49 is the number of inhabitants of the withdrawing unit of election
10-50 and the denominator of which is the number of inhabitants of the
10-51 authority, including the number of inhabitants of the unit.
10-52 (f) The board shall determine the amount of each component
10-53 of the computations required under this section, including the
10-54 components of the unit's apportioned share, as of the effective
10-55 date of withdrawal. The number of inhabitants shall be determined
10-56 according to the most recent and available applicable data of an
10-57 agency of the United States.
10-58 (g) The board shall certify to a withdrawn unit of election
10-59 and to the comptroller the total financial obligation of the unit
10-60 to the authority as determined under this section.
10-61 SECTION 2. This Act takes effect September 1, 1995.
10-62 SECTION 3. The importance of this legislation and the
10-63 crowded condition of the calendars in both houses create an
10-64 emergency and an imperative public necessity that the
10-65 constitutional rule requiring bills to be read on three several
10-66 days in each house be suspended, and this rule is hereby suspended.
10-67 * * * * *