1-1 By: Ogden S.B. No. 1511 1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read 1-3 first time and referred to Committee on State Affairs; May 3, 1999, 1-4 reported adversely, with favorable Committee Substitute by the 1-5 following vote: Yeas 7, Nays 0; May 3, 1999, sent to printer.) 1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1511 By: Lucio 1-7 A BILL TO BE ENTITLED 1-8 AN ACT 1-9 relating to the creation of a county assistance district in certain 1-10 counties in which a rapid transit or regional transportation 1-11 authority is located; authorizing a sales and use tax. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subtitle B, Title 12, Local Government Code, is 1-14 amended by adding Chapter 384 to read as follows: 1-15 CHAPTER 384. COUNTY ASSISTANCE DISTRICT 1-16 Sec. 384.001. DEFINITION. In this chapter, "district" means 1-17 a county assistance district created under this chapter. 1-18 Sec. 384.002. APPLICABILITY. This chapter applies only to a 1-19 county that has a population of less than 25,000 and any portion of 1-20 which is included in an authority governed by Chapter 451 or 452, 1-21 Transportation Code. 1-22 Sec. 384.003. CREATION AND FUNCTIONS OF DISTRICT. (a) The 1-23 commissioners court of the county may call an election on the 1-24 question of creating a county assistance district under this 1-25 chapter to perform the following functions in the district: 1-26 (1) the construction, maintenance, or improvement of 1-27 roads or highways; 1-28 (2) the provision of law enforcement and detention 1-29 services; 1-30 (3) the maintenance or improvement of libraries, 1-31 museums, parks, or other recreational facilities; or 1-32 (4) the provision of services that benefit the public 1-33 health or welfare. 1-34 (b) The order calling the election must: 1-35 (1) define the boundaries of the district to include 1-36 any portion of the county that is not located in an authority 1-37 governed by Chapter 451 or 452, Transportation Code; and 1-38 (2) call for the election to be held within those 1-39 boundaries. 1-40 (c) The ballot at the election must be printed to permit 1-41 voting for or against the proposition: "Authorizing the creation 1-42 of the ____ County Assistance District (insert name of district) 1-43 and the imposition of a sales and use tax at the rate of ____ of 1-44 one percent (insert one-eighth, one-fourth, three-eighths, or 1-45 one-half, as appropriate) for the purpose of financing the 1-46 operations of the district." 1-47 (d) The district is created if a majority of the votes 1-48 received at the election favor the creation of the district. 1-49 (e) If a majority of the votes received at the election are 1-50 against the creation of the district, another election on the 1-51 question of creating a county assistance district may not be held 1-52 in the county before the first anniversary of the most recent 1-53 election concerning the creation of a district. 1-54 (f) The commissioners court may call an election to be held 1-55 in an area of the county that is not located in a district created 1-56 under this section to determine whether the area should be included 1-57 in the district and whether the district's sales and use tax should 1-58 be imposed in the area. An election may not be held in an area 1-59 that is included in an authority governed by Chapter 451 or 452, 1-60 Transportation Code. The area is included in the district and the 1-61 sales and use tax is imposed if a majority of the votes received at 1-62 the election favor inclusion in the district and imposition of the 1-63 sales and use tax. 1-64 Sec. 384.004. POLITICAL SUBDIVISION. A district is a 2-1 political subdivision of this state. 2-2 Sec. 384.005. GOVERNING BODY. (a) The commissioners court 2-3 of the county in which the district is created is the governing 2-4 body of the district. 2-5 (b) A member of the commissioners court is not entitled to 2-6 compensation for service on the governing body of the district but 2-7 is entitled to reimbursement for actual and necessary expenses. 2-8 Sec. 384.006. GENERAL POWERS OF DISTRICT. (a) A district 2-9 may: 2-10 (1) perform any act necessary to the full exercise of 2-11 the district's functions; 2-12 (2) accept a grant or loan from: 2-13 (A) the United States; 2-14 (B) an agency or political subdivision of this 2-15 state; or 2-16 (C) a public or private person; 2-17 (3) acquire, sell, lease, convey, or otherwise dispose 2-18 of property or an interest in property under terms determined by 2-19 the district; 2-20 (4) employ necessary personnel; and 2-21 (5) adopt rules to govern the operation of the 2-22 district and its employees and property. 2-23 (b) A district may contract with a public or private person 2-24 to perform any act the district is authorized to perform under this 2-25 chapter. 2-26 (c) A district may not levy an ad valorem tax. 2-27 Sec. 384.007. SALES AND USE TAX. (a) A district by order 2-28 may impose a sales and use tax under this chapter to finance the 2-29 operations of the district only if the tax is approved at an 2-30 election held under Section 384.003. 2-31 (b) A district may not adopt a sales and use tax under this 2-32 chapter if the adoption of the tax would result in a combined tax 2-33 rate of all local sales and use taxes of more than two percent in 2-34 any location in the district. 2-35 Sec. 384.008. TAX CODE APPLICABLE. (a) Chapter 323, Tax 2-36 Code, governs the imposition, computation, administration, 2-37 collection, and remittance of a tax authorized under this chapter 2-38 except as inconsistent with this chapter. 2-39 (b) Section 323.101(b), Tax Code, does not apply to a tax 2-40 authorized by this chapter. 2-41 Sec. 384.009. TAX RATE. The rate of a tax adopted under 2-42 this chapter must be one-eighth, one-fourth, three-eighths, or 2-43 one-half of one percent. 2-44 Sec. 384.010. REPEAL OR RATE CHANGE. (a) A district that 2-45 has adopted a sales and use tax under this chapter may, by order 2-46 and subject to Section 384.007(b), change the rate of the tax or 2-47 repeal the tax if the change or repeal is approved by a majority of 2-48 the votes received in the district at an election held for that 2-49 purpose. 2-50 (b) The tax may be changed under Subsection (a) in one or 2-51 more increments of one-eighth of one percent to a maximum of 2-52 one-half of one percent. 2-53 (c) The ballot for an election to change the tax shall be 2-54 printed to permit voting for or against the proposition: "The 2-55 adoption of a sales and use tax at the rate of ____ of one percent 2-56 (insert one-fourth, three-eighths, or one-half, as appropriate)." 2-57 (d) The ballot for the election to repeal the tax shall be 2-58 printed to permit voting for or against the proposition: "The 2-59 repeal of the sales and use tax for financing the __________ County 2-60 Assistance District (insert name of district)." 2-61 Sec. 384.011. IMPOSITION OF TAX. (a) If the district 2-62 adopts the tax, a tax is imposed on the receipts from the sale at 2-63 retail of taxable items in the district at the rate approved at the 2-64 election. 2-65 (b) There is also imposed an excise tax on the use, storage, 2-66 or other consumption in the district of tangible personal property 2-67 purchased, leased, or rented from a retailer during the period that 2-68 the tax is effective in the district. The rate of the excise tax 2-69 is the same as the rate of the sales tax portion of the tax and is 3-1 applied to the sale price of the tangible personal property. 3-2 Sec. 384.012. EFFECTIVE DATE OF TAX. The adoption of the 3-3 tax, the change of the tax rate, or the repeal of the tax takes 3-4 effect on the first day of the first calendar quarter occurring 3-5 after the expiration of the first complete quarter occurring after 3-6 the date the comptroller receives a notice of the results of the 3-7 election adopting, changing, or repealing the tax. 3-8 SECTION 2. The importance of this legislation and the 3-9 crowded condition of the calendars in both houses create an 3-10 emergency and an imperative public necessity that the 3-11 constitutional rule requiring bills to be read on three several 3-12 days in each house be suspended, and this rule is hereby suspended, 3-13 and that this Act take effect and be in force from and after its 3-14 passage, and it is so enacted. 3-15 * * * * *