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.