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.