1-1     By:  Denny, Madden (Senate Sponsor - Brown)            H.B. No. 352
 1-2           (In the Senate - Received from the House April 26, 1999;
 1-3     April 27, 1999, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 13, 1999, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 13, 1999, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the limit on fines collected by municipalities for
1-10     traffic violations.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 542.402, Transportation Code, is amended
1-13     to read as follows:
1-14           Sec. 542.402.  DISPOSITION OF FINES.  (a)  A municipality or
1-15     county shall use a fine collected for a violation of a highway law
1-16     in this title [subtitle] to:
1-17                 (1)  construct and maintain roads, bridges, and
1-18     culverts in the municipality or county;
1-19                 (2)  enforce laws regulating the use of highways by
1-20     motor vehicles; and
1-21                 (3)  defray the expense of county traffic officers.
1-22           (b)  In each fiscal year, a municipality having a population
1-23     of less than 5,000 may retain, from fines collected for violations
1-24     of [highway laws in] this title [subtitle] and from special
1-25     expenses collected under Article 45.54, Code of Criminal Procedure,
1-26     in cases in which a violation of this title [subtitle] is alleged,
1-27     an amount equal to 30 percent of the municipality's revenue for the
1-28     preceding fiscal year from all sources, other than federal funds
1-29     and bond proceeds, as shown by the audit performed under Section
1-30     103.001, Local Government Code.  After a municipality has retained
1-31     that amount, the municipality shall send to the comptroller any
1-32     portion of a fine or a special expense collected that exceeds $1.
1-33           (c)  The comptroller shall enforce Subsection (b).
1-34           (d)  In a fiscal year in which a municipality retains from
1-35     fines and special expenses collected for violations of [highway
1-36     laws in] this title [subtitle] an amount equal to at least 20
1-37     percent of the municipality's revenue for the  preceding fiscal
1-38     year from all sources other than federal funds and bond proceeds,
1-39     not later than the 120th day after the last day of the
1-40     municipality's fiscal year, the municipality shall send to the
1-41     comptroller:
1-42                 (1)  a copy of the municipality's financial statement
1-43     for that fiscal year filed under Chapter 103, Local Government
1-44     Code; and
1-45                 (2)  a report that shows the total amount collected for
1-46     that fiscal year from fines and special expenses under Subsection
1-47     (b).
1-48           (e)  If an audit is conducted by the comptroller under
1-49     Subsection (c) and it is determined that the municipality is
1-50     retaining more than 20 percent of the amounts under Subsection (b)
1-51     and has not complied with Subsection (d), the municipality shall
1-52     pay the costs incurred by the comptroller in conducting the audit.
1-53           SECTION 2.  This Act takes effect September 1, 1999, and
1-54     applies only to fines and special expenses collected in a fiscal
1-55     year that begins on or after that date.  Fines and special expenses
1-56     collected in a fiscal year that begins before the effective date of
1-57     this Act are governed by the law in effect immediately before the
1-58     effective date of this Act and that law is continued in effect for
1-59     that purpose.
1-60           SECTION 3.  The importance of this legislation and the
1-61     crowded condition of the calendars in both houses create an
1-62     emergency and an imperative public necessity that the
1-63     constitutional rule requiring bills to be read on three several
1-64     days in each house be suspended, and this rule is hereby suspended.
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