SRC-HRD S.B. 679 75(R) BILL ANALYSIS Senate Research Center S.B. 679 By: Lindsay Intergovernmental Relations 3-13-97 As Filed DIGEST 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 This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 451.065, Transportation Code, by adding Section (g), 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 an amount that is not less than 25 percent of the total revenue from the sales and use tax 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 proportion to the revenue from the sales and use tax that was collected in that year in each municipality and in the unincorporated territory of each county. 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). 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. SECTION 2. Effective date: January 1, 1998. SECTION 3. Emergency clause.