By Haywood S.B. No. 1818
76R7992 DRH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sales and use tax in certain metropolitan transit
1-3 authorities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter I, Chapter 451, Transportation Code,
1-6 is amended by adding Section 451.4051 to read as follows:
1-7 Sec. 451.4051. REFERENDUM ON USES OF SALES AND USE TAX:
1-8 CERTAIN AUTHORITIES. (a) This section applies only to an
1-9 authority in which the board reduced the sales and use tax of the
1-10 authority from the maximum permissible rate but subsequently
1-11 adopted the maximum rate.
1-12 (b) The authority shall hold on November 2, 1999, a
1-13 referendum on whether the authority shall dedicate a portion of its
1-14 revenue for a fixed rail transit system and for state highway and
1-15 tollway projects that benefit the authority. At the election the
1-16 ballots shall be printed to permit voting for or against the
1-17 following propositions:
1-18 (1) "The dedication and use of one-quarter of the
1-19 sales and use tax revenue of (name of authority) for the operation
1-20 of a fixed rail transit system by (name of authority)."; and
1-21 (2) "The dedication and use of one-quarter of the
1-22 sales and use tax revenue of (name of authority) for state highway
1-23 and tollway projects that benefit (name of authority)."
1-24 (c) If a majority of the votes cast favor the proposition in
2-1 Subsection (b)(1), the authority may dedicate and use one-quarter
2-2 of the sales and use tax revenue to build and operate a fixed rail
2-3 transit system. If less than a majority of the votes cast favor
2-4 the proposition in Subsection (b)(1), the authority may not spend
2-5 funds of the authority to purchase, acquire, construct, operate, or
2-6 maintain any form of a fixed rail transit system unless approved at
2-7 a subsequent referendum.
2-8 (d) If a majority of the votes cast favor the proposition in
2-9 Subsection (b)(2), the authority shall dedicate and use one-quarter
2-10 of the sales and use tax revenue for state highway or tollway
2-11 projects that benefit the taxpayers of the authority.
2-12 (e) Notwithstanding Section 451.404, the sales and use tax
2-13 rate that the authority imposes may not exceed:
2-14 (1) one percent, if both propositions in Subsection
2-15 (b) are approved at the referendum;
2-16 (2) three-quarters of one percent, if only one
2-17 proposition in Subsection (b) is approved at the referendum; or
2-18 (3) one-half of one percent, if neither proposition in
2-19 Subsection (b) is approved at the referendum.
2-20 (f) If a proposition in Subsection (b) is not approved at
2-21 the referendum, the board may call a subsequent referendum on the
2-22 proposition. A subsequent referendum must be held on the uniform
2-23 election date in November. A referendum may be held under this
2-24 subsection more than once.
2-25 (g) Funds dedicated for state highway or tollway projects
2-26 under this section may be used only to construct, maintain, or
2-27 expand a state highway or tollway project that benefits the
3-1 taxpayers of the authority and that is selected by the Texas
3-2 Department of Transportation or a regional tollway authority in
3-3 consultation with the authority and the local metropolitan planning
3-4 organization. The project is not required to be in the service
3-5 area of the authority.
3-6 (h) To accomplish Subsection (g), the authority shall enter
3-7 into an agreement with:
3-8 (1) the Texas Department of Transportation; or
3-9 (2) a regional tollway authority.
3-10 (i) A change in the sales and use tax that is required by a
3-11 referendum held under this section takes effect on the first day of
3-12 the fiscal year of the authority that follows the referendum.
3-13 SECTION 2. Sections 451.3625(b) and (c), Transportation
3-14 Code, are amended to read as follows:
3-15 (b) An authority may not issue short-term debt under Section
3-16 451.362 or bonds secured by the revenue of the authority to finance
3-17 any portion of the purchase, acquisition, construction, operation,
3-18 or maintenance of a fixed rail transit system unless the
3-19 proposition contained in Section 451.4051(b)(1) [the system] is
3-20 approved at a referendum [under Section 451.071].
3-21 (c) If the proposition contained in Section 451.4051(b)(1)
3-22 is approved at a referendum [is approved under Section 451.071],
3-23 the term for which short-term debt may be issued under Section
3-24 451.362 is increased to five years if the purpose of the debt is
3-25 the purchase, acquisition, construction, operation, or maintenance
3-26 of a [the] fixed rail transit system [approved at the referendum].
3-27 SECTION 3. Section 451.071, Transportation Code, is
4-1 repealed.
4-2 SECTION 4. The importance of this legislation and the
4-3 crowded condition of the calendars in both houses create an
4-4 emergency and an imperative public necessity that the
4-5 constitutional rule requiring bills to be read on three several
4-6 days in each house be suspended, and this rule is hereby suspended,
4-7 and that this Act take effect and be in force from and after its
4-8 passage, and it is so enacted.