By Dutton                                             H.B. No. 1785
         76R7179 DRH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the sales and use tax imposed by certain rapid transit
 1-3     authorities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter D, Chapter 322, Tax Code, is amended
 1-6     by adding Section 322.3025 to read as follows:
 1-7           Sec. 322.3025.  DISTRIBUTION OF SALES AND USE TAX TO CERTAIN
 1-8     POLITICAL SUBDIVISIONS.  (a)  This section applies only to an
 1-9     authority in which  the principal municipality has a population of
1-10     more than 1.2 million.
1-11           (b)  On the request of the governing body of a municipality
1-12     that is located in the authority, the comptroller shall remit to
1-13     the municipality from the sales and use tax collected for the
1-14     authority an amount equal to one-half of the sales and use tax
1-15     collected for the authority in the territory of the municipality.
1-16           (c)  On the request of the commissioners court of a county
1-17     that is located in the authority, the comptroller shall remit to
1-18     the county from the sales and use tax collected for the authority
1-19     an amount equal to one-half of the sales and use tax collected for
1-20     the authority in the unincorporated territory of the county.
1-21           (d)  Money remitted to a municipality or county under this
1-22     section may be spent only for the internal transportation needs of
1-23     and traffic management in the municipality or county.
1-24           (e)  The comptroller by rule shall establish the date a
 2-1     request under Subsection (b) or (c) takes effect and the process by
 2-2     which a municipality or county may revoke or rescind its request.
 2-3           (f)  In this section, "authority" and "principal
 2-4     municipality" have the meanings assigned by Section 451.001,
 2-5     Transportation Code.
 2-6           SECTION 2.  This Act takes effect September 1, 1999.
 2-7           SECTION 3.  The importance of this legislation and the
 2-8     crowded condition of the calendars in both houses create an
 2-9     emergency and an imperative public necessity that the
2-10     constitutional rule requiring bills to be read on three several
2-11     days in each house be suspended, and this rule is hereby suspended.