1-1                                   AN ACT
 1-2     relating to the operation of a fixed rail transit system by certain
 1-3     metropolitan rapid transit authorities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 451, Transportation Code,
 1-6     is amended by adding Section 451.071 to read as follows:
 1-7           Sec. 451.071.  REFERENDUM FOR RAIL PLAN; CERTAIN AUTHORITIES.
 1-8     (a)  This section applies only to an authority confirmed before
 1-9     July 1, 1985, in which the principal municipality has a population
1-10     of less than 750,000.
1-11           (b)  The authority may hold a referendum on whether the
1-12     authority may operate a fixed rail transit system.  At the election
1-13     the ballots shall be printed to permit voting for or against the
1-14     following proposition:  "The operation of a fixed rail system by
1-15     (name of authority)."
1-16           (c)  The notice of an election called under this section must
1-17     include a general description of the form of the fixed rail transit
1-18     system, including the general location of any proposed routes.
1-19           (d)  If a majority of the votes cast are in favor of the
1-20     proposition, the authority may build and operate the system as
1-21     provided in the notice for the election.  If less than a majority
1-22     of the votes cast are in favor of the proposition, the authority
1-23     may not expend funds of the authority to purchase, acquire,
1-24     construct, operate, or maintain any form of a fixed rail transit
 2-1     system unless the system is approved by a majority of the votes
 2-2     cast at a referendum held by the authority for that purpose.
 2-3           (e)  A subsequent referendum under Subsection (d):
 2-4                 (1)  may be held more than once;
 2-5                 (2)  is held in the same manner as the initial
 2-6     referendum; and
 2-7                 (3)  may not be held before the first anniversary of an
 2-8     election previously held under this section.
 2-9           SECTION 2.  Subchapter H, Chapter 451, Transportation Code,
2-10     is amended by adding Section 451.3625 to read as follows:
2-11           Sec. 451.3625.  BONDS FOR RAIL SYSTEM; CERTAIN AUTHORITIES.
2-12     (a)  This section applies only to an authority confirmed before
2-13     July 1, 1985, in which the principal municipality has a population
2-14     of less than 750,000.
2-15           (b)  An authority may not issue short-term debt under Section
2-16     451.362 or bonds secured by the revenue of the authority to finance
2-17     any portion of the purchase, acquisition, construction, operation,
2-18     or maintenance of a fixed rail transit system unless the system is
2-19     approved at a referendum under Section 451.071.
2-20           (c)  If a referendum is approved under Section 451.071, the
2-21     term for which short-term debt may be issued under Section 451.362
2-22     is increased to five years if the purpose of the debt is the
2-23     purchase, acquisition, construction, operation, or maintenance of
2-24     the fixed rail transit system approved at the referendum.
2-25           SECTION 3.  The change in law made by Section 2 of this Act
2-26     does not affect the validity of bonds or short-term debt issued
2-27     before the effective date of this Act.
 3-1           SECTION 4.  The importance of this legislation and the
 3-2     crowded condition of the calendars in both houses create an
 3-3     emergency and an imperative public necessity that the
 3-4     constitutional rule requiring bills to be read on three several
 3-5     days in each house be suspended, and this rule is hereby suspended,
 3-6     and that this Act take effect and be in force from and after its
 3-7     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2445 was passed by the House on April
         25, 1997, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2445 was passed by the Senate on May
         17, 1997, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor