SRC-TNM S.B. 601 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 601
By: Lindsay
Intergovernmental Relations
2-23-97
As Filed


DIGEST 

Currently, metropolitan transit 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withdrawn community is calculated.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 to the unit that withdraws. 

The Harris County METRO includes 14 units of election.  S.B. 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, S.B. 601 outlines provisions regarding withdrawal of a unit
from a rapid transit authority. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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 created before 1980 in which the principal
municipality has a population of 750,000 or more, rather than less than
1.2 million. 

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