JH S.B. 679 75(R)    BILL ANALYSIS


URBAN AFFAIRS
S.B. 679
By: Lindsay (Bailey)
5-22-97
Committee Report (Unamended)



BACKGROUND 

Currently, metropolitan rapid transit authorities in Texas are not
required to use a certain portion of the revenues they collect from sales
and use tax for county and municipal road and bridge purposes and traffic
control improvements. This bill would require the transit authorities to
use at least 25 percent of the money they receive for such purposes. 

PURPOSE

As proposed, S.B. 679 requires the board of a metropolitan rapid transit
authority that imposes a sales and use tax to distribute a certain amount
of the total revenue collected to each municipality and county located in
the authority to be used only for county and municipal road and bridge
purposes. 

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 451.065, Transportation Code, by adding
Subsections (g) and   (h), as follows: 
  (g) Requires the board of a rapid transit authority (board) that imposes
a sales and   use tax, not later than April 1 of each year, to distribute
not less than 25 percent of   the sales and use tax revenue that the
authority collected during the preceding   calendar year to each
municipality and county located in the authority. Requires   the board to
distribute the amount in consultation with the municipalities and the
counties. Authorizes the use of money received from the authority by a
municipality or a county only for the performance of an action described
by   Subsection (a). Requires a municipality with a population of less
than 1.2 million   to contract with the county in which the municipality
is located, or with the   principal municipality of the authority, for the
design, acquisition of necessary   right-of-way, and construction of a
project under Subsection (a) that is to be   located in that municipality.
Provides that this subsection applies only to the   board of an authority
in which the principal municipality has a population of more   than 1.2
million. 
  (h) Provides that Subsection (g) does not apply if at an election called
by the   authority, a majority of the votes cast approve a proposition
eliminating the   requirement for distribution under Subsection (g). 

SECTION 2. Effective date: January 1, 1998.

SECTION 3. Emergency clause.