SRC-JBJ S.B. 683 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 683
76R4825 CBH-DBy: Brown
Infrastructure
3/26/1999
As Filed


DIGEST 

Currently, Section 451, Transportation Code, provides local authorities
funding through sales and use taxes.  In 1997, the legislature, enacted
Chapter 334, Local Government Code, to authorize municipalities to use
transit authority tax revenues for sports and community venues.  In an
effort to avoid a systemwide reduction of taxes to transit authorities, the
legislature permitted a municipality to vote itself out of the transit
authority.  Although the legislature in 1997 intended for all
municipalities to be able to implement a venue project and vote to withdraw
from the transit authority, the earlier legislation that created the
transit authorities for Nueces County and Harris County did not allow for
their municipalities to withdraw from the authority.  S.B. 683 clarifies
legislative intent of earlier transit authorities by including language
that would allow for municipalities to utilize the election withdrawal
provisions of Section 451.617, Transportation Code. 

PURPOSE

As proposed, S.B. 683 amends the ability of certain local authorities to
impose a sales and use tax to fund venue projects. 

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 Sections 334.085(b) and (b-1), Local Government Code, to
include in Subsection (b-1) an exception to the provision that the election
to approve or increase the tax under this chapter is to be treated for all
purposes as an election to reduce the tax rate of the other taxing
authority. Requires a municipality affected by Subchapter 451M,
Transportation Code, to hold an election with the applicable provisions of
that subchapter, and a municipality in which Subchapter 451M,
Transportation Code, does not apply to hold the election in accordance with
Section 451.617, Transportation Code.  Deletes an exception, from an
election to approve or increase the tax under this chapter, for a rapid
transit authority created under Chapter 451, Transportation Code.  Deletes
requirement that an election on the question of withdrawing affected
municipalities from the rapid transit authority must be held pursuant to
Subchapter Chapter 451M, Transportation Code. 

SECTION 2.Emergency clause.
  Effective date:  upon passage.