JH C.S.H.B. 2445 75(R)    BILL ANALYSIS


URBAN AFFAIRS
C.S.H.B. 2445
By: Greenberg
4-10-97
Committee Report (Substituted)



BACKGROUND 

Citizens of the Central Texas Region have expressed their wish to be able
to vote prior to the construction of a rail system.  The Capital
Metropolitan Transit Authority does not have the legal authority to hold a
referendum. 

PURPOSE

As proposed, H.B. 2445, gives the Capital Metropolitan Transportation
Authority Board Members the authority to hold a binding referendum on the
question of whether to build rail. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 451 of the Transportation Code by adding
Section 451.071 titled Referendum for Rail Plan; Certain Authorities 

(a) States that this section applies to an authority confirmed before July
1, 1985 and in a city with a population less than 750,000. 

(b) Gives such authority the ability to hold a referendum on whether the
authority may operate a fixed rail transit system. 

(c) States that the notice of the election must include a general
description of the fixed rail transit system, including the general
location. 

(d) States that if the majority of voters approve the proposition then the
authority may build and operate the system as provided in the notice.  If
less than a majority of the voters approve the proposition then the
authority may not expend funds of the authority to purchase, acquire,
construct, operate, or maintain any form of a rail system.  Unless, the
voters approve the proposition at a subsequent referendum.  Subsequent
referendums may be held when a year's time has passed since the last
referendum and shall be conducted in the same manner as the initial
referendum. 

SECTION 2. Adds Transportation Code Section 451.3625 prohibiting issuance
of short-term   revenue debt for fixed rail system without referendum. 

SECTION 3. Transitional provision.

SECTION 4. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute adds Section 451.3625 entitled BONDS FOR RAIL
SYSTEM:  CERTAIN AUTHORITIES.  This section states that Capital Metro must
receive voter approval prior to issuing short-term debt or revenue bonds
for the purpose of constructing rail.  The section also authorizes the
agency to issue short term debt for up to five years for, if voter
approval has been given, and only for use for a rail system.