By Reyna of Bexar                                     H.B. No. 3195
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of development corporations and advanced
 1-3     transportation districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 451, Transportation Code, is amended by
 1-6     adding Subchapter O to read as follows:
 1-7               SUBCHAPTER O.  ADVANCED TRANSPORTATION DISTRICT
 1-8           Sec. 451.701.  DEFINITIONS.  In this subchapter:
 1-9                 (1)  "District" means an advanced transportation
1-10     district created under this subchapter.
1-11                 (2)  "Participating unit" means a municipality or
1-12     county that joins a district under this subchapter.
1-13           Sec. 451.702.  ELECTION AUTHORIZED.  (a)  The board of an
1-14     authority in which the sales and use tax is imposed at a rate of
1-15     one-half of one percent may order an election to create an advanced
1-16     transportation district within the authority's boundaries and to
1-17     impose a sales and use tax at the rate of one-half of one percent
1-18     for advanced transportation and local development under this
1-19     subchapter.
1-20           (b)  The board must provide a copy of the election order to
1-21     the governing body of each municipality and the commissioners court
 2-1     of each county any part of which is in the authority.
 2-2           (c)  The authority shall pay the costs of an election held
 2-3     under this subchapter.
 2-4           Sec. 451.703.  CONDUCT OF INITIAL ELECTION:  SEPARATE RESULT.
 2-5     The election shall be conducted so that votes are separately
 2-6     tabulated and canvassed and that the result is declared in each
 2-7     unit of election in the authority as follows:
 2-8                 (1)  each municipality in the authority; and
 2-9                 (2)  the unincorporated area of a county in the
2-10     authority.
2-11           Sec. 451.704.  BALLOT PROPOSITION.  At the election, the
2-12     ballots shall be prepared to permit voting for or against the
2-13     following proposition:  "The creation of an advanced transportation
2-14     district and the imposition of a sales and use tax at the rate of
2-15     one-half of one percent for advanced transportation and local
2-16     development."
2-17           Sec. 451.705.  RESULTS OF ELECTION; ORDER.  (a)  If a
2-18     majority of the votes cast in the principal municipality of the
2-19     authority are in favor of the proposition, the district is created
2-20     and includes:
2-21                 (1)  the principal municipality;
2-22                 (2)  each municipality in which a majority of the votes
2-23     cast favor the proposition; and
2-24                 (3)  the unincorporated area of each county in which a
2-25     majority of the votes cast favor the proposition.
 3-1           (b)  If the district is created, the board shall record the
 3-2     results in its minutes and adopt an order:
 3-3                 (1)  declaring that the district is created;
 3-4                 (2)  describing the territory of the district;
 3-5                 (3)  stating the date of the election;
 3-6                 (4)  containing the proposition;
 3-7                 (5)  showing the number of votes cast for or against
 3-8     the proposition in each unit of election; and
 3-9                 (6)  showing the number of votes by which the
3-10     proposition was approved in each unit of election in which the
3-11     proposition was approved.
3-12           (c)  The order must be accompanied with a map of the
3-13     authority that shows the boundaries of the authority.
3-14           (d)  A copy of the order and map shall be filed:
3-15                 (1)  with the department;
3-16                 (2)  with the comptroller; and
3-17                 (3)  in the deed records of each county in which the
3-18     authority is located.
3-19           Sec. 451.706.  SUBSEQUENT ELECTIONS.  (a)  If the voters of a
3-20     municipality of the authority do not vote to join the district at
3-21     the initial election under Section 451.703, the governing body of
3-22     the municipality may order an election at a later date on the
3-23     question of joining the district.
3-24           (b)  If the voters of the unincorporated area of a county do
3-25     not vote to join the district at the initial election under Section
 4-1     451.703, the commissioners court of the county may order an
 4-2     election at a later date on the question of joining the district.
 4-3           (c)  An election ordered under this section shall be held in
 4-4     the same manner as the initial election, except that the
 4-5     governmental entity ordering the election shall pay the costs of
 4-6     the election, canvass the vote, declare the results, and notify the
 4-7     district  of the results of the election.
 4-8           Sec. 451.707.  LIMITATION ON TAX RATE.  (a)  The combined
 4-9     rate of all sales and use taxes imposed by the district and all
4-10     other political subdivisions of the state may not exceed two
4-11     percent in any location in the district.
4-12           (b)  If after an election held under Section 451.703 or
4-13     451.706 the imposition of the district's tax in a participating
4-14     unit would exceed the limit imposed under Subsection (a), the
4-15     election of a participating unit to join the district repeals all
4-16     local sales and use taxes in that unit except for:
4-17                 (1)  the sales and use tax of the authority; and
4-18                 (2)  a sales and use tax of not more than one percent
4-19     imposed by a municipality under Section 321.101(a) or 321.103(a),
4-20     Tax Code.
4-21           (c)  The sales and use tax authorized by this subchapter and
4-22     the repeal of any local sales and use taxes under this section take
4-23     effect on the first day of the second calendar quarter beginning
4-24     after the date the comptroller receives a copy of the order
4-25     canvassing the results of the election.
 5-1           Sec. 451.708.  USE OF TAX PROCEEDS.  (a)  Before January 1,
 5-2     2010, 50 percent of the proceeds of the district's sales and use
 5-3     tax collected in a participating unit shall be distributed by the
 5-4     district to the governing body of that unit.  The governing body of
 5-5     the unit may use this money to perform any activity or purpose  for
 5-6     which a special district that is funded by a sales and use tax
 5-7     approved at an election may perform under laws in effect on January
 5-8     1, 1999.
 5-9           (b)  Proceeds remaining after the distribution required under
5-10     Subsection (a)  may be used by the district for light rail,
5-11     commuter rail, fixed guideways, high occupancy vehicle lanes, and
5-12     traffic monitoring systems and other advanced transportation
5-13     facilities and services, including planning, feasibility studies,
5-14     and professional and other services in connection with advanced
5-15     facilities and services.
5-16           Sec. 451.709.  DEVELOPMENT CORPORATION.  As an alternative to
5-17     the use of the tax proceeds provided by Section 451.708, a district
5-18     may create a development corporation in the same manner and for the
5-19     same purposes as a city under Section 4A, Development Corporation
5-20     Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), or a
5-21     city or eligible city under Section 4B, Development Corporation Act
5-22     of 1979 (Article 5190.6, Vernon's Texas Civil Statutes).  A local
5-23     sales and use tax collected by the district on behalf of the
5-24     corporation may not exceed the limit imposed by Section 451.707.
5-25           Sec. 451.710.  GOVERNANCE OF DISTRICT.  (a)  The board of the
 6-1     authority shall act as the governing body of the district and is
 6-2     responsible for the management, operation, and control of the
 6-3     district.
 6-4           (b)  The business of the district is conducted through its
 6-5     governing body and by the employees of the authority acting under
 6-6     the control and direction of the general manager of the authority.
 6-7           (c)  The district may enter into contracts with the authority
 6-8     or other private or public entities to conduct the business of the
 6-9     district.
6-10           (d)  Except as otherwise provided by this subchapter, the
6-11     district has the same powers of the authority that called the
6-12     election creating the district as provided by Subchapters B, C, F,
6-13     H, I, and K.
6-14           Sec. 451.711.  DISTRICT ASSETS AND RECORDKEEPING.  (a)  An
6-15     asset of the district shall be held in the name of the authority.
6-16           (b)  The authority shall keep separate books and accounting
6-17     records for the funds, revenues, expenses, and other property of
6-18     the district.
6-19           Sec. 451.712.  NATURE OF DISTRICT.  The district is a
6-20     governmental unit under Chapter 101, Civil Practice and Remedies
6-21     Code, and the operations of the district are not proprietary
6-22     functions for any purpose, including the application of Chapter
6-23     101, Civil Practice and Remedies Code.
6-24           Sec. 451.713.  ANNEXATION OF TERRITORY BY MUNICIPALITY.  On
6-25     annexation by a municipality that is in the district, territory
 7-1     that is not in the district becomes part of the district.
 7-2           SECTION 2.  The importance of this legislation and the
 7-3     crowded condition of the calendars in both houses create an
 7-4     emergency and an imperative public necessity that the
 7-5     constitutional rule requiring bills to be read on three several
 7-6     days in each house be suspended, and this rule is hereby suspended,
 7-7     and that this Act take effect and be in force from and after its
 7-8     passage, and it is so enacted.