By Krusee H.B. No. 1554
76R5530 DRH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a referendum on the dedication of revenue of certain
1-3 mass transit authorities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 451.071, Transportation Code, is amended
1-6 to read as follows:
1-7 Sec. 451.071. REFERENDUM FOR FIXED RAIL TRANSIT SYSTEM AND
1-8 HIGHWAY PROJECTS [PLAN]; CERTAIN AUTHORITIES. (a) This section
1-9 applies only to an authority in which the board reduced the sales
1-10 and use tax of the authority from the maximum permissible rate but
1-11 subsequently adopted the maximum rate [confirmed before July 1,
1-12 1985, in which the principal municipality has a population of less
1-13 than 750,000].
1-14 (b) The authority shall hold on November 2, 1999, a
1-15 referendum on whether the authority shall dedicate a portion of its
1-16 revenue for a fixed rail transit system and for state highway and
1-17 tollway projects that benefit the authority. At the election the
1-18 ballots shall be printed to permit voting for or against the
1-19 following propositions:
1-20 (1) "The dedication and use of one-quarter of the
1-21 sales and use tax revenue of (name of authority) for the operation
1-22 of a fixed rail transit system by (name of authority)."; and
1-23 (2) "The dedication and use of one-quarter of the
1-24 sales and use tax revenue of (name of authority) for state highway
2-1 and tollway projects that benefit (name of authority)."
2-2 (c) If a majority of the votes cast favor the proposition in
2-3 Subsection (b)(1), the authority may dedicate and use one-quarter
2-4 of the sales and use tax revenue to build and operate a fixed rail
2-5 transit system. If less than a majority of the votes cast favor
2-6 the proposition in Subsection (b)(1), the authority may not spend
2-7 funds of the authority to purchase, acquire, construct, operate, or
2-8 maintain any form of a fixed rail transit system unless approved at
2-9 a subsequent referendum.
2-10 (d) If a majority of the votes cast favor the proposition in
2-11 Subsection (b)(2), the authority shall dedicate and use one-quarter
2-12 of the sales and use tax revenue for state highway or tollway
2-13 projects that benefit the taxpayers of the authority.
2-14 (e) Notwithstanding Section 451.404, the sales and use tax
2-15 rate that the authority imposes may not exceed:
2-16 (1) one percent, if both propositions in Subsection
2-17 (b) are approved at the referendum;
2-18 (2) three-quarters of one percent, if only one
2-19 proposition in Subsection (b) is approved at the referendum; or
2-20 (3) one-half of one percent, if neither proposition in
2-21 Subsection (b) is approved at the referendum.
2-22 (f) If a proposition in Subsection (b) is not approved at
2-23 the referendum, the board may call a subsequent referendum on the
2-24 proposition. A subsequent referendum must be held on the uniform
2-25 election date in November. A referendum may be held under this
2-26 subsection more than once.
2-27 (g) Funds dedicated for state highway or tollway projects
3-1 under this section may be used only to construct, maintain, or
3-2 expand a state highway or tollway project that benefits the
3-3 taxpayers of the authority and that is selected by the Texas
3-4 Department of Transportation or a regional tollway authority in
3-5 consultation with the authority and the local metropolitan planning
3-6 organization. The project is not required to be in the service
3-7 area of the authority.
3-8 (h) To accomplish Subsection (g), the authority shall enter
3-9 into an agreement with:
3-10 (1) the Texas Department of Transportation; or
3-11 (2) a regional tollway authority.
3-12 (i) A change in the sales and use tax that is required by a
3-13 referendum held under this section takes effect on the first day of
3-14 the fiscal year of the authority that follows the referendum.
3-15 [(b) The authority may hold a referendum on whether the
3-16 authority may operate a fixed rail transit system. At the election
3-17 the ballots shall be printed to permit voting for or against the
3-18 following proposition: "The operation of a fixed rail system by
3-19 (name of authority)."]
3-20 [(c) The notice of an election called under this section
3-21 must include a general description of the form of the fixed rail
3-22 transit system, including the general location of any proposed
3-23 routes.]
3-24 [(d) If a majority of the votes cast are in favor of the
3-25 proposition, the authority may build and operate the system as
3-26 provided in the notice for the election. If less than a majority
3-27 of the votes cast are in favor of the proposition, the authority
4-1 may not expend funds of the authority to purchase, acquire,
4-2 construct, operate, or maintain any form of a fixed rail transit
4-3 system unless the system is approved by a majority of the votes
4-4 cast at a referendum held by the authority for that purpose.]
4-5 [(e) A subsequent referendum under Subsection (d):]
4-6 [(1) may be held more than once;]
4-7 [(2) is held in the same manner as the initial
4-8 referendum; and]
4-9 [(3) may not be held before the first anniversary of
4-10 an election previously held under this section.]
4-11 SECTION 2. Sections 451.3625(b) and (c), Transportation
4-12 Code, are amended to read as follows:
4-13 (b) An authority may not issue short-term debt under Section
4-14 451.362 or bonds secured by the revenue of the authority to finance
4-15 any portion of the purchase, acquisition, construction, operation,
4-16 or maintenance of a fixed rail transit system unless the
4-17 proposition contained in Section 451.071(b)(1) [the system] is
4-18 approved at a referendum [under Section 451.071].
4-19 (c) If the proposition contained in Section 451.071(b)(1) is
4-20 approved at a referendum [is approved under Section 451.071], the
4-21 term for which short-term debt may be issued under Section 451.362
4-22 is increased to five years if the purpose of the debt is the
4-23 purchase, acquisition, construction, operation, or maintenance of a
4-24 [the] fixed rail transit system [approved at the referendum].
4-25 SECTION 3. The importance of this legislation and the
4-26 crowded condition of the calendars in both houses create an
4-27 emergency and an imperative public necessity that the
5-1 constitutional rule requiring bills to be read on three several
5-2 days in each house be suspended, and this rule is hereby suspended,
5-3 and that this Act take effect and be in force from and after its
5-4 passage, and it is so enacted.