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.