By Keel                                         H.B. No. 2230

      75R6520 DWS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the sales and use tax in certain metropolitan transit

 1-3     authorities.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter I, Chapter 451, Transportation Code,

 1-6     is amended by adding Section 451.4051 to read as follows:

 1-7           Sec. 451.4051.  TAX RATE IN CERTAIN AUTHORITIES.  (a)  This

 1-8     section applies only to an authority confirmed before July 1, 1985,

 1-9     in which the principal municipality has a population of less than

1-10     750,000.

1-11           (b)  If on September 1, 1997, an authority to which this

1-12     section applies has in effect a sales and use tax of three-quarters

1-13     of one percent or one percent, the tax rate expires on December 1,

1-14     1997, unless the continuation of the rate is approved by a majority

1-15     of the votes recorded at an election called for that purpose on the

1-16     uniform election date in November 1997.

1-17           (c)  If the tax rate is approved at the election held under

1-18     Subsection (b), the tax rate expires on December 1 of each third

1-19     subsequent year unless the continuation of the rate is approved by

1-20     a majority of the votes recorded at an election called for that

1-21     purpose on the uniform election date in November preceding the

1-22     expiration date.

1-23           (d)  The ballots at an election held under this section shall

1-24     be printed to provide for voting for or against the following

 2-1     proposition:  "The continuation of the local sales and use tax rate

 2-2     of (percentage)."  Sections 451.411-451.413 apply to an election

 2-3     under this section as if the election were held to increase or

 2-4     decrease the tax rate.

 2-5           (e)  If a tax rate expires under this section, the board may

 2-6     set the tax rate at one-quarter of one percent or one-half of one

 2-7     percent.

 2-8           SECTION 2.  The importance of this legislation and the

 2-9     crowded condition of the calendars in both houses create an

2-10     emergency and an imperative public necessity that the

2-11     constitutional rule requiring bills to be read on three several

2-12     days in each house be suspended, and this rule is hereby suspended,

2-13     and that this Act take effect and be in force from and after its

2-14     passage, and it is so enacted.