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. 3-22 * * * * *