By:  Madla                                             S.B. No. 769
         99S0565/1                           
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the creation of an advanced transportation district;
 1-2     authorizing the imposition of a local sales and use tax for
 1-3     advanced transportation and local development.
 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.  APPLICATION OF SUBCHAPTER.  This subchapter
 1-9     applies only to an authority that imposed a sales and use tax at
1-10     the rate of one-half of one percent on October 20, 1987, and that
1-11     imposes a sales and use tax at the rate of one-half of one percent
1-12     on the date of the election ordered under Section 451.703.
1-13           Sec. 451.702.  DEFINITIONS.  In this subchapter:
1-14                 (1)  "Advanced transportation" means light rail,
1-15     commuter rail, fixed guideways, high occupancy vehicle lanes,
1-16     traffic monitoring systems, and other advanced transportation
1-17     facilities and services, including planning, feasibility studies,
1-18     and professional and other services in connection with such
1-19     advanced facilities and services.
1-20                 (2)  "Advanced transportation district" means a
1-21     district created for advanced transportation and local development
1-22     purposes.
1-23                 (3)  "Local development" means any activities and
1-24     purposes for which special districts may be created and funded by
 2-1     local sales and use taxes upon elections within the districts under
 2-2     laws in effect on January 1, 1999.
 2-3                 (4)  "Participating unit" means a municipality in the
 2-4     authority's boundaries electing to join the advanced transportation
 2-5     district under Section 451.704 or the unincorporated area of a
 2-6     county within the authority electing to join the advanced
 2-7     transportation district under Section 451.704.  For purposes of
 2-8     this subchapter, the governing body of the unincorporated area is
 2-9     the commissioners court of the county.
2-10           Sec. 451.703.  CREATION OF ADVANCED TRANSPORTATION DISTRICT.
2-11     The board of the authority may order an election to create an
2-12     advanced transportation district within the authority's boundaries
2-13     and to impose a sales and use tax at the rate of one-half of one
2-14     percent for advanced transportation and local development in
2-15     accordance with this subchapter.  An election may be held only
2-16     after the board has provided written notification of the board's
2-17     election order to the governing body of each municipality and the
2-18     commissioners court of each county included in whole or part within
2-19     the territory of the authority.  The authority shall pay the costs
2-20     of each election ordered by the board.
2-21           Sec. 451.704.  CONDUCT OF INITIAL ELECTION; SEPARATE RESULT.
2-22     (a)  The election shall be conducted so that the votes are
2-23     separately tabulated and canvassed and the result is declared in
2-24     each unit of election in the authority as follows:
2-25                 (1)  in each municipality within the authority; and
2-26                 (2)  in the unincorporated area of a county within the
 3-1     authority.
 3-2           (b)  The board shall canvass the votes cast in the election
 3-3     and shall issue an order declaring the results of the canvass and
 3-4     the election.
 3-5           (c)  If a majority of the votes in the municipality with the
 3-6     largest population in the authority's boundaries are cast in favor
 3-7     of the proposition, the advanced transportation district is created
 3-8     and shall consist of:
 3-9                 (1)  the municipality with the largest population;
3-10                 (2)  all other municipalities, if any, in which the
3-11     election was held and in which a majority of votes cast favored the
3-12     proposition; and
3-13                 (3)  an unincorporated area within the authority, if
3-14     the majority of votes cast in the unincorporated area favored the
3-15     proposition.
3-16           (d)  If the advanced transportation district is created, the
3-17     board shall record the results of the election in its minutes and
3-18     adopt an order:
3-19                 (1)  declaring that the advanced transportation
3-20     district is created;
3-21                 (2)  describing the territory of the advanced
3-22     transportation district;
3-23                 (3)  stating the date of the election;
3-24                 (4)  containing the proposition;
3-25                 (5)  showing the number of votes cast for or against
3-26     the proposition in each unit of election; and
 4-1                 (6)  showing the number of votes by which the
 4-2     proposition was approved in each unit of election in which the
 4-3     proposition was approved.
 4-4           (e)  The order must be accompanied by a map of the advanced
 4-5     transportation district that shows the boundaries of the district.
 4-6           (f)  A copy of the order and map shall be filed:
 4-7                 (1)  with the department;
 4-8                 (2)  with the comptroller; and
 4-9                 (3)  in the deed records of each county in which the
4-10     authority is located.
4-11           (g)  When a municipality that is part of the advanced
4-12     transportation district annexes territory that before the
4-13     annexation was not part of the advanced transportation district,
4-14     the annexed territory becomes part of the district.
4-15           Sec. 451.705.  SUBSEQUENT ELECTIONS.  If a municipality does
4-16     not vote to join the advanced transportation district at the
4-17     initial election called by the authority, the governing body of the
4-18     municipality may call and hold an election at a later date to join
4-19     the advanced transportation district.  If the unincorporated area
4-20     within the authority does not join the advanced transportation
4-21     district in the initial election called by the authority, the
4-22     commissioners court of the county may call and hold an election at
4-23     a later date to join the advanced transportation district.  The
4-24     governing bodies of the municipalities and the commissioners court
4-25     shall pay the costs of the election, canvass the votes, declare the
4-26     results, and notify the advanced transportation district of the
 5-1     results in an election held under this section.
 5-2           Sec. 451.706.  EFFECT OF ELECTIONS.  The combined rates of
 5-3     all sales and use taxes imposed by the advanced transportation
 5-4     district and all other political subdivisions of the state may not
 5-5     exceed two percent in any location in the advanced transportation
 5-6     district.  In participating units in which the imposition of the
 5-7     local sales and use tax by the advanced transportation district
 5-8     would result in the imposition of a total local sales and use tax
 5-9     in the participating unit of more than two percent, the election by
5-10     the participating unit to join the advanced transportation district
5-11     under Section 451.704 or 451.705 shall also act to repeal all local
5-12     sales and use taxes imposed by or within the participating unit,
5-13     whether adopted prior to or at the same time as an advanced
5-14     transportation district election, except the local sales and use
5-15     tax imposed by the authority and the local sales and use tax of one
5-16     percent imposed by a municipality pursuant to Sections 321.101(a)
5-17     and 321.103(a).  The sales and use tax authorized by this
5-18     subchapter and the repeal of any other local sales and use taxes
5-19     under this section shall take effect on the first day of the second
5-20     calendar quarter beginning after the date the comptroller receives
5-21     a copy of the order canvassing the results of the election.
5-22           Sec. 451.707.  BALLOT PROPOSITION.  The board under Section
5-23     451.703 shall submit to the voters the proposition:  "Shall an
5-24     advanced transportation district be created and shall a sales and
5-25     use tax at the rate of one-half of one percent be levied for
5-26     advanced transportation and local development within the boundaries
 6-1     of the district, with 50 percent of such one-half percent sales and
 6-2     use tax collected by the advanced transportation district paid by
 6-3     the district to participating political subdivisions for local
 6-4     development until January 1, 2010?"
 6-5           Sec. 451.708.  USE OF SALES AND USE TAX PROCEEDS.
 6-6     (a)  Except as provided by Subsection (b), the proceeds of the
 6-7     sales and use tax imposed by this subchapter shall be used by the
 6-8     advanced transportation district only for advanced transportation.
 6-9           (b)  Prior to January 1, 2010, the advanced transportation
6-10     district shall pay 50 percent of the sales and use tax collected by
6-11     the advanced transportation district under this subchapter in each
6-12     participating unit to the governing body of the participating unit
6-13     for local development as determined by the governing body of the
6-14     participating unit.
6-15           Sec. 451.709.  GOVERNANCE AND POWERS OF THE ADVANCED
6-16     TRANSPORTATION DISTRICT.  The board shall act as the governing body
6-17     of the advanced transportation district and shall be responsible
6-18     for the management, operation, and control of the advanced
6-19     transportation district.  The business of the advanced
6-20     transportation district shall be conducted by its governing body
6-21     and by the employees of the authority acting under the control and
6-22     direction of the general manager of the authority.  The advanced
6-23     transportation district may enter into contracts with the authority
6-24     or other private or public entities to conduct the business of the
6-25     advanced transportation district.  Except as otherwise provided by
6-26     this subchapter, the advanced transportation district shall have
 7-1     the powers of the authority that called the election to create the
 7-2     district under Subchapters B, C, F, H, I, and K and shall exercise
 7-3     such powers in the manner provided by those subchapters.
 7-4           Sec. 451.710.  PROPERTY OF THE ADVANCED TRANSPORTATION
 7-5     DISTRICT; SEPARATE BOOKS.  Property of the advanced transportation
 7-6     district shall be held in the name of the authority.  However, the
 7-7     authority shall keep separate books and accounting records
 7-8     segregating the funds, revenues, expenses, and other property of
 7-9     the advanced transportation district.
7-10           Sec. 451.711.  GOVERNMENTAL UNIT.  The advanced
7-11     transportation district is a governmental unit under Chapter 101,
7-12     Civil Practice and Remedies Code, and the operations of the
7-13     advanced transportation district are not proprietary functions for
7-14     any purpose, including the application of Chapter 101, Civil
7-15     Practice and Remedies Code.
7-16           SECTION 2.  This Act takes effect September 1, 1999.
7-17           SECTION 3.  The importance of this legislation and the
7-18     crowded condition of the calendars in both houses create an
7-19     emergency and an imperative public necessity that the
7-20     constitutional rule requiring bills to be read on three several
7-21     days in each house be suspended, and this rule is hereby suspended.