By: Madla S.B. No. 769 A BILL TO BE ENTITLED AN ACT 1-1 relating to the creation of an advanced transportation district and 1-2 authorizing the imposition of a local sales and use tax for 1-3 advanced transportation. 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) "Advanced transportation" means light rail, 1-10 commuter rail, fixed guideways, high occupancy vehicle lanes, 1-11 traffic monitoring systems, and other advanced transportation 1-12 facilities and services, including planning, feasibility studies, 1-13 and professional and other services in connection with those 1-14 facilities and services. 1-15 (2) "District" means an advanced transportation 1-16 district created under this subchapter. 1-17 (3) "Participating unit" means a municipality or the 1-18 unincorporated area of a county that joins a district under this 1-19 subchapter. 1-20 Sec. 451.702. ELECTION AUTHORIZED. (a) The board of an 1-21 authority in which the sales and use tax is imposed at a rate of 1-22 one-half of one percent and in which the principal municipality has 1-23 a population of more than 700,000 may order an election to create 1-24 an advanced transportation district within the authority's 2-1 boundaries and to impose a sales and use tax for advanced 2-2 transportation under this subchapter. If approved at the election, 2-3 the rate of the sales and use tax for advanced transportation is 2-4 one-fourth of one percent. 2-5 (b) The board shall provide written notice of the board's 2-6 intention to call an election under Subsection (a) to the governing 2-7 body of each municipality and the commissioners court of each 2-8 county any part of which is in the authority at least 120 days 2-9 before the date of the proposed election. 2-10 (c) The authority shall pay the costs of an election ordered 2-11 by the board under this section. 2-12 (d) At the election, the ballots shall be prepared to permit 2-13 voting for or against the proposition: "The creation of an 2-14 advanced transportation district and the imposition of a sales and 2-15 use tax for advanced transportation within the district at the rate 2-16 of one-fourth of one percent." 2-17 (e) The proceeds of the sales and use tax imposed under this 2-18 section shall be used by the district only for advanced 2-19 transportation purposes. 2-20 Sec. 451.703. CONDUCT OF INITIAL ELECTION: SEPARATE RESULT. 2-21 The election shall be conducted so that votes are separately 2-22 tabulated and canvassed and that the result is declared in each 2-23 unit of election in the authority as follows: 2-24 (1) in each municipality in the authority; and 2-25 (2) in the unincorporated area of each county in the 2-26 authority. 3-1 Sec. 451.704. RESULTS OF ELECTION; ORDER. (a) If a 3-2 majority of the votes cast in the principal municipality of the 3-3 authority are in favor of the proposition, the district is created 3-4 and includes: 3-5 (1) the principal municipality; 3-6 (2) each municipality in which a majority of the votes 3-7 cast favor the proposition; and 3-8 (3) the unincorporated area of each county in which a 3-9 majority of the votes cast favor the proposition. 3-10 (b) If the district is created, the board shall record the 3-11 results in its minutes and adopt an order: 3-12 (1) declaring that the district is created; 3-13 (2) describing the territory of the district; 3-14 (3) stating the date of the election; 3-15 (4) containing the proposition; 3-16 (5) showing the number of votes cast for or against 3-17 the proposition in each unit of election; and 3-18 (6) showing the number of votes by which the 3-19 proposition was approved in each unit of election in which the 3-20 proposition was approved. 3-21 (c) The order must be accompanied by a map of the district 3-22 that shows the boundaries of the district. 3-23 (d) A copy of the order and map shall be filed: 3-24 (1) with the department; 3-25 (2) with the comptroller; and 3-26 (3) in the deed records of each county in which the 4-1 district is located. 4-2 Sec. 451.705. SUBSEQUENT ELECTIONS. (a) If the voters of a 4-3 municipality do not vote to join the district at the initial 4-4 election under Section 451.702, the governing body of the 4-5 municipality may order an election in the municipality at a later 4-6 date on the question of joining the district. 4-7 (b) If the voters of the unincorporated area of a county do 4-8 not vote to join the district at the initial election under Section 4-9 451.702, the commissioners court of the county may order an 4-10 election in the county at a later date on the question of joining 4-11 the district. 4-12 (c) An election ordered under this section shall be held in 4-13 the same manner as the initial election, except that the 4-14 governmental entity ordering the election shall pay the costs of 4-15 the election, and the governing body of that entity shall canvass 4-16 the vote, declare the results, and notify the district of the 4-17 results of the election. 4-18 Sec. 451.706. LIMITATION ON TAX RATE. (a) The combined 4-19 rate of all sales and use taxes imposed by the district and all 4-20 other political subdivisions of this state may not exceed two 4-21 percent in any location in the district. 4-22 (b) If after an election held under this subchapter the 4-23 imposition of the district's tax in a participating unit would 4-24 exceed the limit imposed under Subsection (a), the election of a 4-25 participating unit to join the district repeals all other local 4-26 sales and use taxes in that unit, except for: 5-1 (1) the sales and use tax of the authority; and 5-2 (2) a sales and use tax of not more than one percent 5-3 imposed by a municipality under Section 321.101(a) or 321.103(a), 5-4 Tax Code. 5-5 (c) The sales and use tax authorized by this subchapter and 5-6 the repeal of any local sales and use taxes under this section take 5-7 effect on the first day of the second calendar quarter beginning 5-8 after the date the comptroller receives a copy of the order 5-9 canvassing the results of the election. 5-10 Sec. 451.707. GOVERNANCE OF DISTRICT. (a) The board of the 5-11 authority shall act as the governing body of the district and is 5-12 responsible for the management, operation, and control of the 5-13 district. 5-14 (b) The business of the district is conducted through its 5-15 governing body and by the employees of the authority acting under 5-16 the control and direction of the general manager of the authority. 5-17 (c) The district may enter into contracts with the authority 5-18 or other private or public entities to conduct the business of the 5-19 district. 5-20 (d) Except as otherwise provided by this subchapter, the 5-21 district has the same powers of the authority that called the 5-22 election creating the district as provided by Subchapters B, C, F, 5-23 H, I, and K. 5-24 Sec. 451.708. DISTRICT ASSETS AND RECORDKEEPING. (a) An 5-25 asset of the district shall be held in the name of the authority. 5-26 (b) The authority shall keep separate books and accounting 6-1 records for the funds, revenues, expenses, and other property of 6-2 the district. 6-3 Sec. 451.709. NATURE OF DISTRICT. The district is a 6-4 governmental unit under Chapter 101, Civil Practice and Remedies 6-5 Code, and the operations of the district are not proprietary 6-6 functions for any purpose, including the application of Chapter 6-7 101, Civil Practice and Remedies Code. 6-8 Sec. 451.710. ANNEXATION OF TERRITORY BY MUNICIPALITY. On 6-9 annexation by a municipality that is in the district, territory 6-10 that is not in the district becomes part of the district. 6-11 SECTION 2. The importance of this legislation and the 6-12 crowded condition of the calendars in both houses create an 6-13 emergency and an imperative public necessity that the 6-14 constitutional rule requiring bills to be read on three several 6-15 days in each house be suspended, and this rule is hereby suspended, 6-16 and that this Act take effect and be in force from and after its 6-17 passage, and it is so enacted.