1-1     By:  Madla                                             S.B. No. 769
 1-2           (In the Senate - Filed March 1, 1999; March 3, 1999, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; March 29, 1999, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 5, Nays 0;
 1-6     March 29, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 769                    By:  Madla
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the creation of an advanced transportation district and
1-11     authorizing the imposition of a local sales and use tax for
1-12     advanced transportation.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Chapter 451, Transportation Code, is amended by
1-15     adding Subchapter O to read as follows:
1-16               SUBCHAPTER O.  ADVANCED TRANSPORTATION DISTRICT
1-17           Sec. 451.701.  DEFINITIONS.  In this subchapter:
1-18                 (1)  "Advanced transportation" means light rail,
1-19     commuter rail, fixed guideways, high occupancy vehicle lanes,
1-20     traffic monitoring systems, and other advanced transportation
1-21     facilities and services, including planning, feasibility studies,
1-22     and professional and other services in connection with those
1-23     facilities and services.
1-24                 (2)  "District" means an advanced transportation
1-25     district created under this subchapter.
1-26                 (3)  "Participating unit" means a municipality or the
1-27     unincorporated area of a county that joins a district under this
1-28     subchapter.
1-29           Sec. 451.702.  ELECTION AUTHORIZED.  (a)  The board of an
1-30     authority in which the sales and use tax is imposed at a rate of
1-31     one-half of one percent and in which the principal municipality has
1-32     a population of more than 700,000 may order an election to create
1-33     an advanced transportation district within the authority's
1-34     boundaries and to impose a sales and use tax for advanced
1-35     transportation under this subchapter.  If approved at the election,
1-36     the rate of the sales and use tax for advanced transportation is
1-37     one-fourth of one percent.
1-38           (b)  The board shall provide written notice of the board's
1-39     intention to call an election under Subsection (a) to the governing
1-40     body of each municipality and the commissioners court of each
1-41     county any part of which is in the authority at least 120 days
1-42     before the date of the proposed election.
1-43           (c)  The authority shall pay the costs of an election ordered
1-44     by the board under this section.
1-45           (d)  At the election, the ballots shall be prepared to permit
1-46     voting for or against the proposition:  "The creation of an
1-47     advanced transportation district and the imposition of a sales and
1-48     use tax for advanced transportation within the district at the rate
1-49     of one-fourth of one percent."
1-50           (e)  The proceeds of the sales and use tax imposed under this
1-51     section shall be used by the district only for advanced
1-52     transportation purposes.
1-53           Sec. 451.703.  CONDUCT OF INITIAL ELECTION:  SEPARATE RESULT.
1-54     The election shall be conducted so that votes are separately
1-55     tabulated and canvassed and that the result is declared in each
1-56     unit of election in the authority as follows:
1-57                 (1)  in each municipality in the authority; and
1-58                 (2)  in the unincorporated area of each county in the
1-59     authority.
1-60           Sec. 451.704.  RESULTS OF ELECTION; ORDER.  (a)  If a
1-61     majority of the votes cast in the principal municipality of the
1-62     authority are in favor of the proposition, the district is created
1-63     and includes:
1-64                 (1)  the principal municipality;
 2-1                 (2)  each municipality in which a majority of the votes
 2-2     cast favor the proposition; and
 2-3                 (3)  the unincorporated area of each county in which a
 2-4     majority of the votes cast favor the proposition.
 2-5           (b)  If the district is created, the board shall record the
 2-6     results in its minutes and adopt an order:
 2-7                 (1)  declaring that the district is created;
 2-8                 (2)  describing the territory of the district;
 2-9                 (3)  stating the date of the election;
2-10                 (4)  containing the proposition;
2-11                 (5)  showing the number of votes cast for or against
2-12     the proposition in each unit of election; and
2-13                 (6)  showing the number of votes by which the
2-14     proposition was approved in each unit of election in which the
2-15     proposition was approved.
2-16           (c)  The order must be accompanied by a map of the district
2-17     that shows the boundaries of the district.
2-18           (d)  A copy of the order and map shall be filed:
2-19                 (1)  with the department;
2-20                 (2)  with the comptroller; and
2-21                 (3)  in the deed records of each county in which the
2-22     district is located.
2-23           Sec. 451.705.  SUBSEQUENT ELECTIONS.  (a)  If the voters of a
2-24     municipality do not vote to join the district at the initial
2-25     election under Section 451.702, the governing body of the
2-26     municipality may order an election in the municipality at a later
2-27     date on the question of joining the district.
2-28           (b)  If the voters of the unincorporated area of a county do
2-29     not vote to join the district at the initial election under Section
2-30     451.702, the commissioners court of the county may order an
2-31     election in the county at a later date on the question of joining
2-32     the district.
2-33           (c)  An election ordered under this section shall be held in
2-34     the same manner as the initial election, except that the
2-35     governmental entity ordering the election shall pay the costs of
2-36     the election, and the governing body of that entity shall canvass
2-37     the vote, declare the results, and notify the district of the
2-38     results of the election.
2-39           Sec. 451.706.  LIMITATION ON TAX RATE.  (a)  The combined
2-40     rate of all sales and use taxes imposed by the district and all
2-41     other political subdivisions of this state may not exceed two
2-42     percent in any location in the district.
2-43           (b)  If after an election held under this subchapter the
2-44     imposition of the district's tax in a participating unit would
2-45     exceed the limit imposed under Subsection (a), the election of a
2-46     participating unit to join the district repeals all other local
2-47     sales and use taxes in that unit, except for:
2-48                 (1)  the sales and use tax of the authority; and
2-49                 (2)  a sales and use tax of not more than one percent
2-50     imposed by a municipality under Section 321.101(a) or 321.103(a),
2-51     Tax Code.
2-52           (c)  The sales and use tax authorized by this subchapter and
2-53     the repeal of any local sales and use taxes under this section take
2-54     effect on the first day of the second calendar quarter beginning
2-55     after the date the comptroller receives a copy of the order
2-56     canvassing the results of the election.
2-57           Sec.  451.707.  GOVERNANCE OF DISTRICT.  (a)  The board of
2-58     the authority shall act as the governing body of the district and
2-59     is responsible for the management, operation, and control of the
2-60     district.
2-61           (b)  The business of the district is conducted through its
2-62     governing body and by the employees of the authority acting under
2-63     the control and direction of the general manager of the authority.
2-64           (c)  The district may enter into contracts with the authority
2-65     or other private or public entities to conduct the business of the
2-66     district.
2-67           (d)  Except as otherwise provided by this subchapter, the
2-68     district has the same powers of the authority that called the
2-69     election creating the district as provided by Subchapters B, C, F,
 3-1     H, I, and K.
 3-2           Sec.  451.708.  DISTRICT ASSETS AND RECORDKEEPING.  (a)  An
 3-3     asset of the district shall be held in the name of the authority.
 3-4           (b)  The authority shall keep separate books and accounting
 3-5     records for the funds, revenues, expenses, and other property of
 3-6     the district.
 3-7           Sec. 451.709.  NATURE OF DISTRICT.  The district is a
 3-8     governmental unit under Chapter 101, Civil Practice and Remedies
 3-9     Code, and the operations of the district are not proprietary
3-10     functions for any purpose, including the application of Chapter
3-11     101, Civil Practice and Remedies Code.
3-12           Sec. 451.710.  ANNEXATION OF TERRITORY BY MUNICIPALITY.  On
3-13     annexation by a municipality that is in the district, territory
3-14     that is not in the district becomes part of the district.
3-15           SECTION 2. The importance of this legislation and the crowded
3-16     condition of the calendars in both houses create an emergency and
3-17     an imperative public necessity that the constitutional rule
3-18     requiring bills to be read on three several days in each house be
3-19     suspended, and this rule is hereby suspended, and that this Act
3-20     take effect and be in force from and after its passage, and it is
3-21     so enacted.
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