By Van de Putte H.B. No. 3705
76R9234 E
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of an advanced transportation district and
1-3 authorizing the imposition of a local sales and use tax for
1-4 advanced transportation and local development.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 451, Transportation Code, is amended by
1-7 adding Subchapter O to read as follows:
1-8 SUBCHAPTER O. ADVANCED TRANSPORTATION DISTRICT
1-9 Sec. 451.701. DEFINITIONS. In this subchapter:
1-10 (1) "Advanced transportation" means light rail,
1-11 commuter rail, fixed guideways, high occupancy vehicle lanes,
1-12 traffic monitoring systems, and other advanced transportation
1-13 facilities and services, including planning, feasibility studies,
1-14 and professional and other services in connection with such
1-15 advanced facilities and services.
1-16 (2) "Local development" means any activities and
1-17 purposes for which special districts may be created and funded by
1-18 local sales and use taxes upon elections within the districts under
1-19 laws in effect January 1, 1999.
1-20 (3) "District" means an advanced transportation
1-21 district created under this subchapter.
1-22 (4) "Participating unit" means a municipality or the
1-23 unincorporated area of a county that joins a district under this
1-24 subchapter.
2-1 Sec. 451.702. ELECTION AUTHORIZED. (a) The board of an
2-2 authority in which the sales and use tax is imposed at a rate of
2-3 one-half of one percent and in which the principal municipality has
2-4 a population of more than 700,000 may order an election to create
2-5 an advanced transportation district within the authority's
2-6 boundaries and to impose a sales and use tax for advanced
2-7 transportation under this subchapter. If a sales and use tax is
2-8 approved at the election, the rate of the sales and use tax for
2-9 advanced transportation shall be one-fourth of one percent until
2-10 January 1, 2011, and one-half of one percent thereafter.
2-11 (b) The board shall provide written notification of the
2-12 board's intention to call an election under Subsection (a) to the
2-13 governing body of each municipality and the commissioners court of
2-14 each county any part of which is in the authority at least 120 days
2-15 prior to the date of the election.
2-16 (c) The authority shall pay the costs of an election ordered
2-17 by the board under Subsection (a).
2-18 (d) The board ordering an election under this section shall
2-19 submit to the voters the proposition: "Shall an advanced
2-20 transportation district be created and shall a sales and use tax be
2-21 levied for advanced transportation within the boundaries of the
2-22 district at the rate of one-fourth of one percent until January 1,
2-23 2011, and thereafter at the rate of one-half of one percent?"
2-24 (e) The proceeds of the sales and use tax imposed under this
2-25 section shall be used by the district only for advanced
2-26 transportation purposes.
2-27 Sec. 451.703. CONDUCT OF INITIAL ELECTION: SEPARATE RESULT.
3-1 The election shall be conducted so that votes are separately
3-2 tabulated and canvassed and that the result is declared in each
3-3 unit of election in the authority as follows:
3-4 (1) in each municipality in the authority; and
3-5 (2) in the unincorporated area of a county in the
3-6 authority.
3-7 Sec. 451.704. RESULTS OF ELECTION; ORDER. (a) If a
3-8 majority of the votes cast in the principal municipality of the
3-9 authority are in favor of the proposition, the district is created
3-10 and includes:
3-11 (1) the principal municipality;
3-12 (2) each municipality in which a majority of the votes
3-13 cast favor the proposition; and
3-14 (3) the unincorporated area of each county in which a
3-15 majority of the votes cast favor the proposition.
3-16 (b) If the district is created, the board shall record the
3-17 results in its minutes and adopt an order:
3-18 (1) declaring that the district is created;
3-19 (2) describing the territory of the district;
3-20 (3) stating the date of the election;
3-21 (4) containing the proposition;
3-22 (5) showing the number of votes cast for or against
3-23 the proposition in each unit of election; and
3-24 (6) showing the number of votes by which the
3-25 proposition was approved in each unit of election in which the
3-26 proposition was approved.
3-27 (c) The order must be accompanied with a map of the district
4-1 that shows the boundaries of the district.
4-2 (d) A copy of the order and map shall be filed:
4-3 (1) with the department;
4-4 (2) with the comptroller; and
4-5 (3) in the deed records of each county in which the
4-6 district is located.
4-7 Sec. 451.705. SUBSEQUENT ELECTIONS. (a) If the voters of a
4-8 municipality within the authority do not vote to join the district
4-9 at the initial election under Section 451.702, the governing body
4-10 of the municipality may order an election at a later date on the
4-11 question of joining the district.
4-12 (b) If the voters of the unincorporated area of a county do
4-13 not vote to join the district at the initial election under Section
4-14 451.702, the commissioners court of the county may order an
4-15 election at a later date on the question of joining the district.
4-16 (c) An election ordered under this section shall be held in
4-17 the same manner as the initial election, except that the
4-18 governmental entity ordering the election shall pay the costs of
4-19 the election, canvass the vote, declare the results, and notify the
4-20 district of the results of the election.
4-21 Sec. 451.706. LOCAL DEVELOPMENT SALES AND USE TAX. (a) On
4-22 the same date that the election creating the district is called
4-23 under Section 451.702, the authority may order an election to
4-24 impose a sales and use tax until January 1, 2011, within the
4-25 district's boundaries for local development. The rate of such sales
4-26 and use tax for local development shall be one-fourth of one
4-27 percent. The election called by the authority to impose a sales
5-1 and use tax shall only be effective if the district is created at
5-2 the election pursuant to Section 451.704 and a majority of the
5-3 votes within the district are cast in favor of the proposition. The
5-4 board must provide written notification of the board's intention to
5-5 call an election to impose a sales and use tax for local
5-6 development purposes to the governing body of each municipality and
5-7 the commissioners court of each county any part of which is in the
5-8 authority at least 240 days prior to the date of the election. The
5-9 notification shall also inform the governing body and commissioners
5-10 court of the provisions of Subsection (b). The ballot proposition
5-11 must state the exact purpose for which the sales and use tax
5-12 proceeds will be used by the governing body of the political
5-13 subdivision or, if the governing body has not adopted a
5-14 pre-election document setting forth the exact purpose as required
5-15 by Subsection (b), the ballot proposition shall state that the
5-16 local development sales and use tax proceeds shall be retained by
5-17 the district for advanced transportation purposes.
5-18 (b) The proceeds of the district's sales and use tax
5-19 collected for local development purposes in a participating unit
5-20 shall be distributed by the district to the governing body of that
5-21 unit. At least 180 days prior to the date of the election ordered
5-22 under Subsection (a), the governing body of each political
5-23 subdivision within the authority's area must adopt an ordinance,
5-24 resolution, or other official pre-election document setting forth
5-25 the exact local development purpose for which the funds will be
5-26 used by the political subdivision and must deliver a copy of the
5-27 pre-election document to the board within seven days after its
6-1 passage. All funds received by the participating unit from the
6-2 district shall be used by the governing body exclusively for
6-3 purposes set forth in the pre-election document, and the governing
6-4 body may not amend the pre-election document after the date of its
6-5 original adoption. If a pre-election document is not adopted by
6-6 the governing body at least 180 days prior to the date of the
6-7 election, the proceeds of the local development sales and use tax
6-8 collected within the participating unit shall be retained by the
6-9 district for advanced transportation purposes.
6-10 (c) If the authority does not order an election under
6-11 Subsection (a) or if the election ordered to impose a local
6-12 development sales and use tax fails, the district may order an
6-13 election prior to January 1, 2009, to impose a local development
6-14 sales and use tax until January 1, 2011, within the district's
6-15 boundaries. The rate of the sales and use tax for local
6-16 development shall be one-fourth of one percent. The district must
6-17 provide written notification of the district's intention to call an
6-18 election to impose a sales and use tax for local development
6-19 purposes to the governing body of each municipality and the
6-20 commissioners court of each county any part of which is in the
6-21 authority at least 240 days prior to the date of the election. The
6-22 notification shall also inform the governing body and commissioners
6-23 court of the provisions of Subsection (d). The ballot proposition
6-24 must state the exact purpose for which the sales and use tax
6-25 proceeds will be used by the governing body of the participating
6-26 unit or, if the governing body has not adopted a pre-election
6-27 document setting forth the exact purpose as required by Subsection
7-1 (d), the ballot proposition shall state that the local development
7-2 sales and use tax proceeds shall be retained by the district for
7-3 advanced transportation purposes.
7-4 (d) If a majority of the votes cast within the district in
7-5 the election ordered pursuant to Subsection (c) favor the
7-6 imposition of the local development sales and use tax, the proceeds
7-7 of the tax collected in a participating unit shall be distributed
7-8 by the district to the governing body of that unit. At least 180
7-9 days prior to the date of the election authorizing the local
7-10 development sales and use tax within the participating unit, the
7-11 governing body of each participating unit must adopt an ordinance,
7-12 resolution, or other official pre-election document setting forth
7-13 the exact local development purpose for which the funds will be
7-14 used by the participating unit and must deliver a copy of the
7-15 pre-election document to the district within seven days after its
7-16 passage. All funds received by the participating unit from the
7-17 district shall be used by the governing body exclusively for the
7-18 purpose set forth in the pre-election document, and the governing
7-19 body may not amend the pre-election document after the date of its
7-20 original adoption. If a pre-election document is not adopted by the
7-21 governing body at least 180 days prior to the date of the election,
7-22 the proceeds of the local development sales and use tax collected
7-23 within the participating unit shall be retained by the district for
7-24 advanced transportation purposes.
7-25 (e) Any local development sales and use tax authorized under
7-26 this section shall automatically cease effective January 1, 2011.
7-27 (f) The authority or district shall pay the costs of an
8-1 election ordered under this section.
8-2 Sec. 451.707. ACCOUNTING. The comptroller shall maintain an
8-3 account of the sales and use tax collected by the district in each
8-4 participating unit and provide monthly reports of the collections
8-5 in each participating unit to the governing body of the district.
8-6 Sec. 451.708. LIMITATION ON TAX RATE. (a) The combined
8-7 rate of all sales and use taxes imposed by the district and all
8-8 other political subdivisions of the state may not exceed two
8-9 percent in any location in the district.
8-10 (b) If after an election held under this subchapter the
8-11 imposition of the district's tax in a participating unit would
8-12 exceed the limit imposed under Subsection (a), the election of a
8-13 participating unit to join the district shall repeal all local
8-14 sales and use taxes in that unit, whether adopted prior to or at
8-15 the same time as an election held under this subchapter, except
8-16 for:
8-17 (1) the sales and use tax of the authority; and
8-18 (2) a sales and use tax of not more than one percent
8-19 imposed by a municipality under Section 321.101(a) or 321.103(a),
8-20 Tax Code.
8-21 (c) The sales and use tax authorized by this subchapter and
8-22 the repeal of any local sales and use taxes under this section take
8-23 effect on the first day of the second calendar quarter beginning
8-24 after the date the comptroller receives a copy of the order
8-25 canvassing the results of the election.
8-26 Sec. 451.709. GOVERNANCE OF DISTRICT. (a) The board of
8-27 the authority shall act as the governing body of the district and
9-1 is responsible for the management, operation, and control of the
9-2 district.
9-3 (b) The business of the district is conducted through its
9-4 governing body and by the employees of the authority acting under
9-5 the control and direction of the general manager of the authority.
9-6 (c) The district may enter into contracts with the authority
9-7 or other private or public entities to conduct the business of the
9-8 district.
9-9 (d) Except as otherwise provided by this subchapter, the
9-10 district has the same powers of the authority that called the
9-11 election creating the district as provided by Subchapters B, C, F,
9-12 H, I, and K.
9-13 Sec. 451.710. DISTRICT ASSETS AND RECORDKEEPING. (a) An
9-14 asset of the district shall be held in the name of the authority.
9-15 (b) The authority shall keep separate books and accounting
9-16 records for the funds, revenues, expenses, and other property of
9-17 the district.
9-18 Sec. 451.711. NATURE OF DISTRICT. The district is a
9-19 governmental unit under Chapter 101, Civil Practice and Remedies
9-20 Code, and the operations of the district are not proprietary
9-21 functions for any purpose, including the application of Chapter
9-22 101, Civil Practice and Remedies Code.
9-23 Sec. 451.712. ANNEXATION OF TERRITORY BY MUNICIPALITY. On
9-24 annexation by a municipality that is in the district, territory
9-25 that is not in the district becomes part of the district.
9-26 SECTION 2. The importance of this legislation and the
9-27 crowded condition of the calendars in both houses create an
10-1 emergency and an imperative public necessity that the
10-2 constitutional rule requiring bills to be read on three several
10-3 days in each house be suspended, and this rule is hereby suspended,
10-4 and that this Act take effect and be in force from and after its
10-5 passage, and it is so enacted.