SRC-HRD C.S.S.B. 679 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 679
By: Lindsay
Intergovernmental Relations
5-10-97
Committee Report (Substituted)


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, C.S.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
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.    

SUMMARY OF COMMITTEE CHANGES

SECTION 1. 

Amends proposed Section 451.065(g), Transportation Code, to require the
board of an  authority to distribute not less than 25 percent of the sales
and use tax revenue, rather than an amount that is not less than 25
percent of the total sales and use tax.  Requires the board to distribute
the amount in consultation with the municipalities and the counties,
rather than in proportion to the revenue from sales and use tax that was
collected in that year in each municipality and in the unincorporated
territory of each county.  Sets forth requirements for a municipality with
a population of less than 1.2 million. Adds Subsection (h) regarding an
election called by the authority.