JH S.B. 601 75(R)    BILL ANALYSIS


URBAN AFFAIRS
S.B. 601
By: Lindsay (Thompson)
4-1-97
Committee Report (Unamended)



BACKGROUND 

Currently, metropolitan authorities (MTAs) are authorized under Chapters
451 and 452, Transportation Code.  MTAs have been created in seven urban
areas of the state: Austin, Corpus Christi, Dallas, El Paso, Fort Worth,
Houston and San Antonio.  The El Paso MTA is the only MTA in Texas that
does not have any member communities; only the City of El Paso is included
in the authority. 

Of the remaining MTAs, all but the Harris County Metropolitan Transit
Authority (METRO) and Corpus Christi Regional Transportation Authority
have provisions that allow member communities, also called "units of
election," to withdraw from an MTA.  THese provisions are found in Chapter
451, Transportation Code.  Procedures for withdrawal include requirements
for a petition from a percentage of registered voters in a member
community, and an election to be held to determine whether to dissolve the
authority in the member community. 

If the member community votes to withdraw from the authority, a
determination of the total amount of financial obligations of the
withdrawn community is calculated.  THe collection of sales and use tax
continues in the member community after withdrawal until the net financial
obligation is paid to the authority.  The net financial obligation
includes the apportioned share of the authority's outstanding obligations,
and any obligation specifically related the the unit that withdraws. 

The Harris County METRO includes 14 units of election.  SB 601 would
provide member communities in the Harris County MTA with the ability to
withdraw from the authority in accordance with Section 451. 617,
Transportation Code. 

PURPOSE

As proposed, SB 601 outlines provisions regarding withdrawal of a unit
from a rapid transit authority. 

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 Section 451.617(a), Transportation Code, to authorize a
unit of election,   other than the principal municipality, to withdraw
from the rapid transit authority   (authority), in addition to any other
manner provided by law, by a vote of a   majority of the registered voters
of the unit of election voting at an election on the   question of
withdrawing from the authority, in an authority crated before 1980 in
which the principal municipality has a population of 750,000 or more,
rather than   less than 1.2 million, which is existing law. Adds provision
allowing withdrawal   by unit of election in transit authority created
before 1980, with a principal city   population of 1.6 million, and in
which unit of election the voters had voted not to   confirm the
participation in the authority and levy of taxes; such elections not to
be held more frequently than every six years. 
  

SECTION 2. Emergency clause.
  Effective date: upon passage.