1-1     By:  Greenberg, et al. (Senate Sponsor - Barrientos)  H.B. No. 2445

 1-2           (In the Senate - Received from the House April 27, 1997;

 1-3     April 29, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 15, 1997, reported favorably by

 1-5     the following vote:  Yeas 11, Nays 0; May 15, 1997, sent to

 1-6     printer.)

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the operation of a fixed rail transit system by certain

1-10     metropolitan rapid transit authorities.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Subchapter B, Chapter 451, Transportation Code,

1-13     is amended by adding Section 451.071 to read as follows:

1-14           Sec. 451.071.  REFERENDUM FOR RAIL PLAN; CERTAIN AUTHORITIES.

1-15     (a)  This section applies only to an authority confirmed before

1-16     July 1, 1985, in which the principal municipality has a population

1-17     of less than 750,000.

1-18           (b)  The authority may hold a referendum on whether the

1-19     authority may operate a fixed rail transit system.  At the election

1-20     the ballots shall be printed to permit voting for or against the

1-21     following proposition:  "The operation of a fixed rail system by

1-22     (name of authority)."

1-23           (c)  The notice of an election called under this section must

1-24     include a general description of the form of the fixed rail transit

1-25     system, including the general location of any proposed routes.

1-26           (d)  If a majority of the votes cast are in favor of the

1-27     proposition, the authority may build and operate the system as

1-28     provided in the notice for the election.  If less than a majority

1-29     of the votes cast are in favor of the proposition, the authority

1-30     may not expend funds of the authority to purchase, acquire,

1-31     construct, operate, or maintain any form of a fixed rail transit

1-32     system unless the system is approved by a majority of the votes

1-33     cast at a referendum held by the authority for that purpose.

1-34           (e)  A subsequent referendum under Subsection (d):

1-35                 (1)  may be held more than once;

1-36                 (2)  is held in the same manner as the initial

1-37     referendum; and

1-38                 (3)  may not be held before the first anniversary of an

1-39     election previously held under this section.

1-40           SECTION 2.  Subchapter H, Chapter 451, Transportation Code,

1-41     is amended by adding Section 451.3625 to read as follows:

1-42           Sec. 451.3625.  BONDS FOR RAIL SYSTEM; CERTAIN AUTHORITIES.

1-43     (a)  This section applies only to an authority confirmed before

1-44     July 1, 1985, in which the principal municipality has a population

1-45     of less than 750,000.

1-46           (b)  An authority may not issue short-term debt under Section

1-47     451.362 or bonds secured by the revenue of the authority to finance

1-48     any portion of the purchase, acquisition, construction, operation,

1-49     or maintenance of a fixed rail transit system unless the system is

1-50     approved at a referendum under Section 451.071.

1-51           (c)  If a referendum is approved under Section 451.071, the

1-52     term for which short-term debt may be issued under Section 451.362

1-53     is increased to five years if the purpose of the debt is the

1-54     purchase, acquisition, construction, operation, or maintenance of

1-55     the fixed rail transit system approved at the referendum.

1-56           SECTION 3.  The change in law made by Section 2 of this Act

1-57     does not affect the validity of bonds or short-term debt issued

1-58     before the effective date of this Act.

1-59           SECTION 4.  The importance of this legislation and the

1-60     crowded condition of the calendars in both houses create an

1-61     emergency and an imperative public necessity that the

1-62     constitutional rule requiring bills to be read on three several

1-63     days in each house be suspended, and this rule is hereby suspended,

1-64     and that this Act take effect and be in force from and after its

 2-1     passage, and it is so enacted.

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