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.