By Keel                                                H.B. No. 749
         77R4318 DWS-F                           
                                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.  TAX RATE IN CERTAIN AUTHORITIES.  (a)  This
 1-8     section applies only to an authority in which the board has lowered
 1-9     the tax rate from the maximum permissible amount and subsequently
1-10     raised the tax rate back to the maximum permissible amount.
1-11           (b)  An authority to which this section applies shall hold an
1-12     election on the uniform election date in November 2001 to decrease
1-13     the authority's sales and use tax rate.
1-14           (c)  The ballots at an election held under this section shall
1-15     be printed to provide for voting for or against the following
1-16     proposition:  "The decrease of the local sales and use tax rate to
1-17     one-half of one percent."  Sections 451.411-451.413 apply to an
1-18     election under this section.
1-19           (d)  If a majority of votes recorded at the election approve
1-20     the proposition, the authority's sales and use tax rate is one-half
1-21     of one percent. If a majority of votes recorded at the election do
1-22     not approve the proposition, the authority's sales and use tax rate
1-23     is the rate in effect on the date of the election.
1-24           (e)  Any subsequent election to increase or decrease the
 2-1     authority's sales and use tax rate may be held only on the uniform
 2-2     election date in November.
 2-3           SECTION 2.  This Act takes effect immediately if it receives
 2-4     a vote of two-thirds of all the members elected to each house, as
 2-5     provided by Section 39, Article III, Texas Constitution.  If this
 2-6     Act does not receive the vote necessary for immediate effect, this
 2-7     Act takes effect September 1, 2001.