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.