SRC-JXG S.B. 769 76(R)BILL ANALYSIS


Senate Research CenterS.B. 769
By: Madla
Intergovernmental Relations
6/29/1999
Enrolled


DIGEST 

Currently, a metropolitan transit system cannot increase sales taxes, when
a city in its region enacts a sales tax reaching the maximum allowed under
state law. Under the 75th Legislature, H.B. 92 allowed the use of sales
taxes for purposes other than transportation, such as arenas and crime
control districts. Balcones Heights is located in the VIA Metropolitan
Transit Authority region in San Antonio, and blocked VIA from increasing
tax rates.  S.B. 769 will authorize an election to create an advanced
transportation district,  and will increase the advanced transportation
sales tax one-half of one percent. 

PURPOSE

As enrolled, S.B. 769 creates an advanced transportation district; and
authorizes the imposition of a local sales and use tax for advanced
transportation. 

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 Chapter 451, Transportation Code, by adding Subchapter O,
as follows: 

SUBCHAPTER O. ADVANCED TRANSPORTATION DISTRICT

Sec. 451.701. DEFINITIONS. Defines "advanced transportation," "district,"
and "participating unit."  

Sec. 451.702. ELECTION AUTHORIZED. Authorizes the board of a rapid transit
authority (authority) in which the sales and use tax is imposed at a rate
of one-half of one percent and in which the principal municipality has a
population of more than 700,000 to order an election to create an advanced
transportation district (district) within the authority's boundaries and to
impose a sales and use tax for advanced transportation under this
subchapter. Provides that the rate of the sales and use tax for advanced
transportation is onefourth of one percent. Requires the board to provide
written notice of the board's intention to call an election under
Subsection (a) to the governing body of each municipality and the
commissioners court of each county any part of which is in the authority at
least 120 days before the date of the proposed election. Requires the
authority to pay the costs of an election ordered by the board under this
section. Sets forth standard language for the ballot to permit voting for
or against the proposition. Requires the proceeds of the sales and use tax
imposed under this section to be used by the district only for advanced
transportation purposes. 

Sec. 451.703. CONDUCT OF INITIAL ELECTION: SEPARATE RESULT.  Requires the
election to be conducted so that the votes are separately tabulated and
canvassed and the result is declared in each unit of election in the
authority in each municipality within the authority, and in the
unincorporated area of a county in the authority.  

Sec. 451.704. RESULTS OF ELECTION; ORDER. Provides that the district is
created and includes certain areas, if a majority of the rates are in favor
of the proposition. Requires the  board to record the results in its
minutes and adopt certain orders. Requires the orders to be accompanied
with a map of the district that shows the boundaries of the district.
Requires a copy of the order and map to be filed with the Texas Department
of Transportation (TxDOT), the comptroller, and in the deed records of each
county in which the district is located.  

Sec. 451.705. SUBSEQUENT ELECTIONS. Authorizes the governing body of the
municipality to order an election in the municipality at a later date on
the question of joining the district, if the voters do not vote to join the
district at the initial election under Section 451.702. Authorizes the
commissioners court of the county to order an election in the county at a
later date on the question of joining the district, if the voters of the
unincorporated of a county do not vote to join the district at the initial
election under Section 451.702. Requires an election ordered under this
section to be held in the same manner as the initial election, except that
the governmental entity ordering the election shall pay the costs of the
election, and the governing body of that entity shall canvass the vote,
declare the results, and notify the district of the results of the
election. 

Sec. 451.706. LIMITATION ON TAX RATE. Prohibits the combined rates of all
sales and use taxes imposed by the district and all other political
subdivisions of the state from exceeding two percent in any location in the
district. Provides that the election of a participating unit to join the
district repeals all other local sales and use taxes in that unit, except
for the sales and use tax of the authority, and a sales and use tax of no
more than one percent imposed by a municipality under Section 321.101(a) or
321.103(a), Tax Code, if after an election held under this subchapter the
imposition of the district's tax in a participating unit would exceed the
limit imposed under Subsection (a). Requires the sales and use tax
authorized by this subchapter and the repeal of any other local sales and
use taxes under this section to take effect on the first day of the second
calendar quarter beginning after the date the comptroller receives a copy
of the order canvassing the results of the election. 

Sec. 451.707. GOVERNANCE OF DISTRICT. Requires the board to act as the
governing body of the district and to be responsible for the management,
operation, and control of the district. Requires the business of the
district to be conducted by its governing body and by the employees of the
authority acting under the control and direction of the general manager of
the authority. Authorizes the district to enter into contracts with the
authority or other private or public entities to conduct the business of
the district. Provides that the district has the same powers of the
authority that called the election creating the district as provided  by
Subchapters B, C, F, H, I, and K, except as otherwise provided by this
subchapter.  

Sec. 451.708. DISTRICT ASSETS ANE RECORDKEEPING. Requires an asset of the
district to be held in the name of the authority. Requires the authority to
keep separate books and accounting records for the funds, revenues,
expenses, and other property of the district. 

Sec. 451.709. NATURE OF DISTRICT. Provides that the district is a
governmental unit under Chapter 101, Civil Practice and Remedies Code, and
the operations of the district are not proprietary functions for any
purpose, including the application of Chapter 101, Civil Practice and
Remedies Code. 

Sec. 451.710. ANNEXATION OF TERRITORY BY MUNICIPALITY. Provides that
territory that is not in the district becomes part of the district, on
annexation by a municipality that is in the district. 

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