By Solomons H.B. No. 3323 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation, organization and management powers of a 1-3 regional county transportation authority; providing for elections; 1-4 providing for a governing board; providing for procedures for 1-5 annexation of territory; authorizing the levy and collection of the 1-6 sales and use and excise tax; authorizing transit authorities to 1-7 contract with the county transportation authority. 1-8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-9 The Transportation Code is amended by adding a new 1-10 Chapter ___ to read as follows: 1-11 SUBCHAPTER A. CREATION OF COUNTY AUTHORITY 1-12 SECTION 1. LEGISLATIVE INTENT (a) The legislature finds 1-13 that an increasing proportion of the State's population resides in 1-14 counties adjacent to other counties that contain partial or 1-15 complete major metropolitan areas. 1-16 (b) The rapidly increasing population in counties adjacent 1-17 to these major metropolitan areas has caused a concentration of 1-18 vehicles and vehicular traffic related to commuting to and from 1-19 residences in the adjacent county to places of employment located 1-20 in major metropolitan areas. 1-21 (c) The escalating number of motor vehicles on 1-22 thoroughfares, freeways and other major arteries of transportation 1-23 has increased at a rate faster than roadway infrastructure can be 2-1 enhanced resulting in traffic congestion, delays and restricting 2-2 the speed of the vehicular traffic substantially below posted speed 2-3 limits. 2-4 (d) As a result of the increase in vehicles and related 2-5 traffic congestion, reduced mobility and speed, the motor vehicles 2-6 are emitting gases, pollutants and other irritants into the 2-7 atmosphere at a level which may adversely affect the health, safety 2-8 and welfare of the citizenry. 2-9 (e) To provide more efficient transportation, mobility and 2-10 to reduce air pollution and congestion, a suitable option to 2-11 private passenger motor vehicle must be afforded. 2-12 SECTION 2. DEFINITIONS. 2-13 SECTION 3. CREATION OF COUNTY TRANSPORTATION AUTHORITY. (a) 2-14 A county transportation authority, to provide public transportation 2-15 and transportation related services, may be created in a county 2-16 adjacent to a county with a population of more than one million. 2-17 (b) The Commissioner's Court of the county wishing to create 2-18 a county regional transportation authority may initiate the process 2-19 to create the authority by the passage of a resolution or order or 2-20 upon on receipt of a petition requesting creation of a the 2-21 authority signed by at least five percent of the registered voters 2-22 in the county. 2-23 (1) If a petition of five percent of the registered 2-24 voters is received by the county, it shall be verified by the 2-25 county clerk, consistent with the provisions of Chapter 277, Texas 2-26 Election Code, and then returned to the Commissioners Court with a 3-1 finding of verification. 3-2 (c) Upon receipt of the verified petition by the 3-3 Commissioners Court or upon passage of a resolution or ordinance 3-4 calling for the creation of the authority by the Commissioners' 3-5 Court, the Court shall schedule a public hearing within sixty days 3-6 from either the receipt of the petition or the passage of the 3-7 resolution of the order whichever occurs earlier. 3-8 (1) The Commissioners' Court shall call a public 3-9 hearing. 3-10 (2) The time and the place of the public hearing shall 3-11 be published once a week for two consecutive weeks in a newspaper 3-12 of general circulation in the county. The first publication is to 3-13 be not less than thirty days prior to the date of the hearing. 3-14 (3) Every incorporated municipality with a population 3-15 in excess of 15,000 shall be notified of the public hearing by 3-16 mailing notice of the hearing to the governing body of the city. 3-17 (d) The county Commissioners' Court shall conduct a hearing 3-18 at the time and place specified in the notice and may continue the 3-19 hearings from day to day and from time to time until it is 3-20 completed. 3-21 (1) Any interested person may appear and offer 3-22 evidence concerning the creation of the authority, operation of the 3-23 county transportation system and whether creation of the authority 3-24 would serve any public purpose or of any other facts bearing upon 3-25 the creation of the authority. 3-26 (e) After receiving evidence, testimony and discussion at 4-1 the hearing, the county Commissioners' Court may adopt a resolution 4-2 or order: 4-3 (1) designating the name of the authority; 4-4 (2) a statement that all lands within the county shall 4-5 be part of the authority including a municipality partially 4-6 therein; and 4-7 (3) that the territory is subject to the authority 4-8 based upon the results of the confirmation election. 4-9 SECTION 4. INTERIM EXECUTIVE COMMITTEE. (a) The county 4-10 Commissioners' Court and certain municipalities shall appoint an 4-11 interim executive committee for the Authority subsequent to 4-12 adopting an order or resolution. 4-13 (b) The interim executive committee shall be composed of: 4-14 (1) one member appointed by the governing board of 4-15 each city within the county that has a population within the county 4-16 in excess of 15,000. 4-17 (2) three members appointed by the Commissioners' 4-18 Court, two of whom shall reside in the unincorporated area of the 4-19 county. Three other members to be designated by the remaining 4-20 incorporated cities within the county that have a population within 4-21 the county of over 500. 4-22 (3) that selection process shall be as follows: 4-23 (A) all incorporated cities with a population 4-24 over 500 shall be afforded the opportunity to nominate one person 4-25 for the executive committee. The nomination form shall be sent to 4-26 the governing body by mail. 5-1 (B) The county judge shall receive the names 5-2 returned on the nomination form. Only those names received within 5-3 thirty days of mailing the nomination forms shall be added to the 5-4 election ballot. 5-5 (C) The ballot containing the names submitted to 5-6 the county judge by the cities with a population over 500 shall be 5-7 forwarded to each municipality. Each municipality shall be entitled 5-8 to cast one vote. 5-9 (D) The ballots shall be returned on or before 5-10 the date stated thereon to the county judge to be considered valid. 5-11 If received thereafter they shall not be counted. 5-12 (E) The county judge shall name as members of 5-13 the executive committee the three individuals with the highest 5-14 plurality vote. In the case of ties, the county judge shall select 5-15 the appropriate number from those receiving equal votes. 5-16 (F) Should three members not be authorized by 5-17 this process, the county judge shall name the balance of the 5-18 members for the interim executive committee not to exceed nine. 5-19 SECTION 5. SERVICE PLAN AND PROPOSED TAX RATE. (a) The 5-20 members of the interim executive committee shall elect from among 5-21 their number a chairman, vice chairman and secretary. 5-22 (b) The interim executive committee after its organization 5-23 shall develop a service plan and proposed tax rate. 5-24 (c) The service plan and proposed tax rate shall be 5-25 developed by the interim executive committee within one hundred and 5-26 eighty days from the first meeting of the interim executive 6-1 committee, but in no event at a date later than one year after the 6-2 first meeting of the interim executive committee. 6-3 (d) The interim executive committee shall hold at least one 6-4 regular meeting during each month for the purpose of developing a 6-5 service plan and determining a proposed tax rate. 6-6 SECTION 6. APPROVAL OF SERVICE PLAN AND TAX RATE. (a) Upon 6-7 the approval by the interim executive committee of the service plan 6-8 and tax rate, a copy thereof shall be provided to the county 6-9 commissioners' court and the governing body of each municipality 6-10 with a population in excess of 15,000. 6-11 (b) Notice of the adoption shall be published in a newspaper 6-12 of general circulation and sent to all municipalities in the county 6-13 with a population in excess of 500. 6-14 (c) Not later than sixty days after the date that the 6-15 interim executive committee approved the service plan and tax rate, 6-16 the governing body of each municipality, having territory in the 6-17 authority, may approve by resolution or order the service plan and 6-18 tax rate. 6-19 (d) A municipality that does not approve by resolution or 6-20 order the service plan and tax rate may not participate in the 6-21 service plan or the confirmation election order for the authority. 6-22 (e) The interim executive committee may not order a 6-23 confirmation election in a municipality where the governing body 6-24 has not approved the service plan and tax rate. 6-25 SECTION 7. CONFIRMATION ELECTION. (a) The interim executive 6-26 committee shall provide notice to the commissioner's court of the 7-1 need to call a confirmation election. 7-2 (b) The confirmation election shall be ordered by the 7-3 commissioner's court and by the governing body of each municipality 7-4 with a population of over 15,000 which has approved by order or 7-5 resolution the service plan and tax rate for the authority. 7-6 (c) The confirmation election shall submit to the qualified 7-7 voters of each qualifying municipality and the unincorporated area 7-8 of the County the following proposition: "Shall the creation of 7-9 the _____ County Transportation Authority be confirmed?" The 7-10 notice of the election must include a brief description of the 7-11 service plan and that an imposition of a tax to pay for the plan 7-12 must be approved by the voters of at a subsequent election. 7-13 (d) The confirmation election for the authority shall be 7-14 held on a uniform date. 7-15 SECTION 8. CONDUCT OF THE ELECTION. (a) The confirmation 7-16 election shall be conducted so that the votes are separately 7-17 tabulated and canvassed showing the results of each separate 7-18 municipality that passed a resolution or order approving the 7-19 service plan and tax rate and then the balance of the County 7-20 eligible to vote. 7-21 (b) The Interim Executive Committee shall canvass their 7-22 returns and declare the results of election separately with respect 7-23 to each designated area. 7-24 (c) The governing body of a qualified municipality shall 7-25 canvass the returns of the confirmation election ordered by the 7-26 municipality to confirm the Authority and declare the results of 8-1 the election. 8-2 (d) In each municipality or in the county where a majority 8-3 of votes were received in favor of the proposition as worded on the 8-4 ballot, the Authority is confirmed. 8-5 (e) The Authority continues, inclusive of each of those 8-6 units, except that the Authority ceases in every municipality over 8-7 15,000 that did not affirmatively vote for the proposition or in 8-8 the portion of the county which is not within the boundaries of a 8-9 confirming municipality. 8-10 (f) If no municipality or the balance of the county does not 8-11 approve of the proposition as provided on the ballot, the Authority 8-12 shall terminate and cease. 8-13 (g) If any qualified municipality voting on the proposition 8-14 casts a majority of votes in favor of the proposition or the county 8-15 does so, then the authority shall continue. 8-16 (h) If the authority continues, the interim executive 8-17 committee shall record the results in its minutes and adopt an 8-18 Order declaring: the creation of the Authority is confirmed; 8-19 stating the date of the election containing the proposition voted 8-20 on; showing the number of votes cast for or against the proposition 8-21 by each qualified city and in the balance of the county. Upon 8-22 adoption of the order confirming the authority the interim 8-23 executive committee becomes the executive committee. 8-24 (i) A certified copy of the Order shall be filed with the 8-25 Texas Department of Transportation and the Comptroller. 8-26 SECTION 9. FAILURE TO CONFIRM AUTHORITY. (a) If the 9-1 authority does not continue, the interim executive committee shall 9-2 enter an Order declaring the results of the votes cast at the 9-3 election; that the authority ceases; and the authority is 9-4 dissolved. 9-5 (b) The county and the qualifying cities for the 9-6 confirmation election shall share the expenses of the election 9-7 based proportionately upon the population of the areas where the 9-8 election was conducted. 9-9 (c) An Authority that has not been confirmed, expires on the 9-10 third anniversary of the date of the resolution or order initiating 9-11 the process to create the authority. 9-12 SUBCHAPTER B. POWER OF AUTHORITY 9-13 SECTION 1. POWERS APPLICABLE TO COUNTY TRANSPORTATION 9-14 AUTHORITY. (a) This subchapter applies only to an authority that 9-15 has been confirmed. 9-16 (b) The authority is a governmental body a corporate body, 9-17 and has perpetual succession. 9-18 (c) The authority exercises public and essential 9-19 governmental functions. The Authority's operations are governmental 9-20 and not proprietary functions for any purpose, including the 9-21 application of Chapter 101 of the Civil Practice & Remedies Code. 9-22 SECTION 2. GOVERNANCE OF AUTHORITY. (a) The executive 9-23 committee is responsible for the management, operation, and control 9-24 of the Authority and its properties. 9-25 SECTION 3. GENERAL POWER OF AUTHORITY. (a) The authority 9-26 has any and all power necessary or convenient to carry out this 10-1 chapter or effect the purpose of this chapter. 10-2 (b) An Authority may sue and be sued. An authority may not 10-3 be required to give security for costs in a suit brought or 10-4 prosecuted by the authority and may not be required to post a 10-5 supersedeas or cost bond in an appeal of a judgment. 10-6 (c) An Authority may hold, use, sell, lease, dispose of, and 10-7 acquire by any means, property and licenses, patents, rights and 10-8 other interests necessary, convenient or useful to the exercise of 10-9 any power under this chapter. 10-10 (d) An Authority may sell, lease or dispose any right, 10-11 interest, or property that is not necessary for the efficient 10-12 operation and maintenance of public transportation or at any time 10-13 surplus material or other property not needed by the authority to 10-14 carry out the powers under this chapter. 10-15 SECTION 4. POWER TO CONTRACT. (a) An Authority may contract 10-16 with any person. 10-17 (b) An Authority may accept a grant or loan from any person. 10-18 (c) An Authority may enter into any interlocal agreement or 10-19 other agreement with any municipality or other transportation or 10-20 transit entity that is consistent with and beneficial to the 10-21 service plan approved by the authority. 10-22 SECTION 5. THE OPERATION OF A PUBLIC TRANSPORTATION SYSTEM. 10-23 (a) The authority may: 10-24 (1) acquire, construct, develop, plan, own, operate 10-25 and maintain a public transportation system in the territory of the 10-26 authority including the territory of the political subdivision or 11-1 municipality partially located in the territory of the Authority; 11-2 (2) contract with a municipality, county or any 11-3 political subdivision for the Authority to provide public 11-4 transportation services outside the authority; 11-5 (3) lease all or part of the public transportation to, 11-6 or contract for the operation of all or part of the public 11-7 transportation system, by an operator; 11-8 (4) contract with a political subdivision or 11-9 governmental entity to provide public transportation services 11-10 inside the authority consistent with rules and regulations 11-11 established by the authority, including appropriate capital, 11-12 maintenance and operation or other costs specifically approved by 11-13 the authority and audited by them. 11-14 (b) The authority shall determine the routes of the public 11-15 transportation system or approve routes submitted to them. 11-16 SECTION 6. AUTHORIZATION OF TAX LEVY. (a) An Authority may 11-17 call an authorization election for the tax levy associated with the 11-18 service plan developed by the interim executive committee, or a tax 11-19 rate that has been modified by action of the executive committee, 11-20 at any time after the confirmation election which creates the 11-21 authority. 11-22 (b) The executive committee shall request an authorization 11-23 vote on a tax rate to the voters of each qualified municipality and 11-24 unincorporated area participating in the Authority. The 11-25 proposition will be worded as follows: "Shall the _____ County 11-26 Transportation Authority levy of a proposed tax not to exceed 12-1 _____, be authorized?" 12-2 (c) The election shall be conducted in the same manner as 12-3 provided for the confirmation election for the Authority with 12-4 canvassing, certification and an order confirming the resulting of 12-5 the election. 12-6 (d) Service Plan may be implemented in those qualified 12-7 cities or in the balance of county only if the qualified 12-8 municipality or the balance of county cast the majority of the 12-9 votes in favor of the authorization to levy a proposed tax by the 12-10 authority. 12-11 (e) The election to authorize a tax levy under this section 12-12 expires on the second anniversary of the adoption of the order by 12-13 the Executive Committee declaring the confirmation of the 12-14 authority. 12-15 SECTION 7. ACQUISITION OF PROPERTY. (a) The Authority may 12-16 as it is necessary or useful in the construction, repair, 12-17 maintenance or operation of the public transportation system use 12-18 any public way, including an alley. 12-19 (b) The Authority may acquire by eminent domain any interest 12-20 in real property including a fee simple interest and the use of air 12-21 or subsurface space. 12-22 (1) Right of eminent domain may not be exercised 12-23 within the boundary of a municipality without the approval of the 12-24 proposed acquisition by the city. 12-25 (2) Power of eminent domain may not be exercised by 12-26 the Authority in an unincorporated area without the approval by the 13-1 county of the proposed acquisition. 13-2 (c) The Authority may contract with the owner of the 13-3 property to allow the owner to relocate, reroute or alter the 13-4 owner's property. The Authority may pay the contractor of the 13-5 owner or provide for reimbursement to the owner of the costs 13-6 involved. 13-7 (d) Any relocation caused by the exercise of eminent domain 13-8 of the Authority shall be at the Authority's expense. 13-9 (e) The Executive Committee shall adopt a resolution 13-10 authorizing eminent domain that describes the property interest; 13-11 and, declares the public necessity for the acquisition relating to 13-12 the construction, extension, improvement or development of the 13-13 public transportation system. 13-14 (f) A resolution that meets the requirements of (e) above 13-15 and is approved by the appropriate municipal governing body or 13-16 commissioner's court is conclusive evidence of the finding of 13-17 public necessity. 13-18 (g) Chapter 21 of the Texas Property Code applies to the 13-19 eminent domain power of the Authority. 13-20 SECTION 8. JOINT USE AGREEMENT. (a) An Authority may agree 13-21 with any other public or private utility communication system, 13-22 common carrier or transportation system for: (1) joint use of the 13-23 property or fixtures of the agreeing entities; and (2) the 13-24 establishment of through routes, joint fares or transfers of 13-25 passengers between the agreeing entities. 13-26 SECTION 8. FARES AND USE FEES. (a) The Authority shall 14-1 impose reasonable and nondiscriminatory fares, tolls, charges, 14-2 rents and other forms of compensation for use of the public 14-3 transportation system. The fares shall be sufficient to produce 14-4 revenue, which together with tax, revenue and any grants received 14-5 by the Authority, are of an amount: (1) adequate to pay annually 14-6 the operation and maintenance expenses of the public transportation 14-7 system; (2) to pay as due the principal and interest on all bonds 14-8 issued by the Authority, which are payable in whole or part from 14-9 Authority revenue received and any sinking fund or reserve fund 14-10 payments; and (3) fulfill the terms of any other agreement with 14-11 the holders of bonds issued by the authority. 14-12 (b) The fares for passenger transportation may be set 14-13 according to a zone system or by any other classification which the 14-14 Authority determines is reasonably related to cost of the system 14-15 use. 14-16 (c) This section does not limit the State's power to 14-17 regulate taxes imposed by the Authority. The State agrees not to 14-18 alter permission granted under this section to the Authority to 14-19 impose taxes, fares, tolls, charges, rents and other revenues 14-20 sufficient to pay obligations incurred. 14-21 (d) State agrees not to impair the rights and remedies of an 14-22 Authority bondholder until the principal and interest on the bond, 14-23 interest on unpaid installments, cost and expenses in connection 14-24 with an action or proceeding by or on behalf of a bondholder, are 14-25 discharged. 14-26 SECTION 9. INSURANCE. (a) The Authority may insure through 15-1 purchased insurance policies or self insurance programs, or both, 15-2 the legal liability of the Authority and of its contractors and 15-3 subcontractors relating to the acquisition, construction and 15-4 operation of the programs and facilities for: personal and 15-5 property damage; officers and employers liability. 15-6 (b) The Authority may use contracts, rating plans and risk 15-7 management programs designed to encourage accident prevention. 15-8 (c) In developing an insurance or self-insurance program the 15-9 Authority may consider the peculiar hazards, indemnity standards 15-10 and past or prospective loss and expense experience of the 15-11 Authority or similar authorities and of its contractors and 15-12 subcontractors. 15-13 SECTION 10. TAX EXEMPTION. The property revenue income of 15-14 the Authority is exempt from state and local taxes. 15-15 SECTION 11. EXEMPTION OF TRANSIT RAIL SYSTEM. (a) If the 15-16 Authority constructs, or operates or contracts with another entity 15-17 to construct, or operate a mass transit rail system, the Authority 15-18 is not subject to any state law regulating or governing the design, 15-19 construction or operation of a railroad, railway, street railway, 15-20 streetcar and urban railway. 15-21 (b) If the Authority acquires ownership of an interest in 15-22 real property, or any mass transit rail system property operating 15-23 on property previously used by a railroad, railway, street railway, 15-24 or interurban railway when transferred to the Authority is a 15-25 continuation of existing rail use. 15-26 SECTION 12. EXECUTIVE COMMITTEE. (a) An Executive Committee 16-1 member has a term of two years. Each member of the Executive 16-2 Committee is subject to reappointment as provided for in the 16-3 selection of the Interim Executive Committee, but in no instance 16-4 shall a member serve more than three terms. 16-5 (b) A vacancy in the Executive Committee is filled under the 16-6 same manner as the original appointment. 16-7 (c) To be eligible for appointment to the Executive 16-8 Committee, the person must have professional experience in 16-9 transportation, business, government, engineering or law. 16-10 (d) Members of the Executive Committee and officers and 16-11 employees of the Authority are subject to Chapter 171, Texas Local 16-12 Government Code. 16-13 (e) The Executive Committee of the Authority shall meet at 16-14 least monthly to transact business of the Authority. 16-15 (1) the presiding officer may call special meetings as 16-16 necessary; 16-17 (2) the Executive Committee by resolution shall set 16-18 the time, place and date of regular meetings; 16-19 (3) The Executive Committee adopt rules and bylaws as 16-20 necessary to conduct meetings. 16-21 (f) Five members of the Executive Committee constitute a 16-22 quorum. 16-23 (1) An action of the Executive Committee requires a 16-24 vote of a majority of the members present. 16-25 (2) The bylaws may require a more than a majority vote 16-26 for a specified authorizations. 17-1 SUBCHAPTER C. PARTICIPATION AND SERVICE PLAN 17-2 SECTION 1. ADDITION OF TERRITORY BY MUNICIPAL ANNEXATION. 17-3 (a) When a municipality that is a part of the Authority annexes 17-4 territory that before the annexation was not part of the Authority, 17-5 then the annexed territory becomes part of the Authority. 17-6 SECTION 2. ADDITION BY ELECTION. (a) Territory of a 17-7 municipality that is not initially part of the Authority may be 17-8 added to the Authority if: 17-9 (1) Any part of the municipality is located within the 17-10 territory of the Authority; 17-11 (2) The governing body of the municipality orders an 17-12 election under this section on whether the territory of the 17-13 municipality outside of the Authority should be added to the 17-14 Authority; and 17-15 (3) If a majority of the results received in the 17-16 election favor the measure, the governing body of the municipality 17-17 shall certify to the Executive Committee the result of an election 17-18 in which additional territory is approved. 17-19 SECTION 3. PARTICIPATION IN MORE THAN ONE TRANSIT AUTHORITY. 17-20 (a) A municipality that has a population of more than 500,000 and 17-21 is located in a county with a population of more than 1,000,000 may 17-22 participate in a separate transit authority. 17-23 (b) If the municipality described in (a) joins the 17-24 Authority, and a separate Transit or Transportation Authority is 17-25 created or established in a county with a population of more than 17-26 1,000,000, the municipality which had voted to participate with the 18-1 Authority and was a qualified municipality may: 18-2 (1) remain in the Authority which was originally 18-3 created 18-4 (2) join the new Authority in the county with a 18-5 population of more than 1,000,000 in which municipality is 18-6 primarily located; or 18-7 (3) participate with both Authorities. 18-8 (c) A municipality which has requested, participated in, or 18-9 received a benefit of capital improvements made by the Authority, 18-10 if it transfers to a different Authority or participates with more 18-11 than one Transit or Transportation Authority, must continue to 18-12 honor reimbursement obligations resulting from the capital 18-13 improvements of the Authority. 18-14 SECTION 4. TAX IMPOSED IN NEW TERRITORY. (a) Sales and use 18-15 tax imposed by the Authority takes effect in a territory added to 18-16 the Authority under this subchapter on the first day of the 18-17 calendar quarter that occurs after the addition of the territory. 18-18 (b) The Authority shall send a certified copy of the order 18-19 adding territory or an order canvassing the returns and declaring 18-20 the results of the election, with a map showing the territory added 18-21 to the Authority to the Comptroller. The order must include the 18-22 effective date of the tax. 18-23 SECTION 5. SERVICE PLAN. (a) A service plan developed by 18-24 the Executive Committee shall consider the following: 18-25 (1) The regional transportation plan for the county of 18-26 the Authority. 19-1 (2) Actual and projected traffic counts of private 19-2 passenger vehicles within the territory of the Authority and 19-3 projected destinations. 19-4 (3) Reasonably feasible alternative modes of public 19-5 transportation, such as: fixed guideway rail; passenger commercial 19-6 carriers or dedicated thoroughfare lanes. 19-7 (4) The most efficient collection points for passenger 19-8 use and destination or transfer points shall be located. 19-9 (A) alternative routes linking the access and 19-10 discharge points shall be created; 19-11 (B) Where right of way will be required for the 19-12 transit routes, alternate alignments using least populous areas 19-13 should be determined. 19-14 (b) Initial estimates of capital expenditures for a 19-15 functional public transportation system shall be considered: 19-16 (c) Various forms of public transportation consistent with 19-17 use of the routes determined should be evaluated. 19-18 (1) Cost per passenger per mile should be determined. 19-19 (2) Cost would include: capital expense of 19-20 acquisition of the public transportation system; costs associated 19-21 with the acquisition, improvement or modification of the transit 19-22 way; and maintenance and operating costs. 19-23 SECTION 6. MAINTENANCE AND OPERATION. (a) An administrative 19-24 overhead cost should be calculated separately. 19-25 (b) Load Factors based on surveys, interviews, or other 19-26 reasonable quantification for the modes of transportation should be 20-1 considered. 20-2 (1) A fare structure for the ridership of the public 20-3 transportation system by mode shall be estimated. 20-4 (2) Revenue from all sources, including fares, fees, 20-5 grants and debt issuance shall be compared with estimated costs and 20-6 expenses. 20-7 (3) Revenue minus expenses should be expressed as a 20-8 numerical number as well as a per rider factor for each trip or 20-9 segment thereof. 20-10 (4) Any shortfall of revenue to expense shall be 20-11 expressed in a dollar figure and a per rider figure per trip. 20-12 (5) If the service plan contemplates joint use of 20-13 other transit systems or transfer to them, estimated dates of 20-14 access should be provided. 20-15 (6) If certain segments of the service plan are more 20-16 profitable, or show a smaller deficit than others, then the plan 20-17 shall analyze segments separately in addition to a transportation 20-18 system. 20-19 SUBCHAPTER D. BONDS 20-20 SECTION 1. ISSUANCE. (a) The Authority may issues bonds at 20-21 times as determined by the executive committee; 20-22 (b) The bonds may be issued as is necessary and appropriate 20-23 for: the acquisition, construction, repair, improvement or 20-24 extension of the public transportation system for the Authority; 20-25 creating or funding self-insurance or retirement or pension fund 20-26 reserves; 21-1 (c) For purposes of the Authority, a bond also includes a 21-2 note. Any bond issued by the authority must have 20 year even 21-3 principal and interest payback; 21-4 (d) Any bond issuance that all or portion of which is 21-5 secured by pledge of sales and use tax revenues with maturity of 21-6 five years or longer from the date of issuance may not be issued by 21-7 the Authority until an election has been held and has been approved 21-8 by a majority of the votes received on the issue from a qualified 21-9 municipalities or participating entities in accord with the 21-10 provisions established for authorization of sales and use tax; 21-11 (e) The bonds of the authority are fully negotiable. The 21-12 authority may make the bonds redeemable before maturity; 21-13 (f) The bonds may be sold at a public or private sale, 21-14 whichever is financially more beneficial to the authority; 21-15 (g) The bonds of the authority are incontestable after they 21-16 are approved by the attorney general or registered by the 21-17 comptroller and sold; 21-18 (h) To secure the payment of the bonds of the authority, the 21-19 authority may pledge all or part of the revenue realized from any 21-20 tax that is approved and levied; pledge any part of the revenue 21-21 from the public transportation system; or mortgage any part of the 21-22 public transportation system; 21-23 (i) Notwithstanding the above, the authority may issue 21-24 refunding bonds at any time when the repayment savings from the 21-25 refunding bonds exceeds the cost of issuance. 21-26 SUBCHAPTER E. TAXATION 22-1 SECTION 1. SALES AND USE TAX. (a) The Executive Committee 22-2 may impose sales and use tax for use by the Authority at a rate of: 22-3 (1) one-quarter of one-percent, 22-4 (2) one-half of one-percent, 22-5 (3) three-quarters of one-percent or 22-6 (4) one-percent; 22-7 (b) The imposition of the sales and use tax must be approved 22-8 in an election and may not be imposed by a municipality or in the 22-9 balance of the county that has not confirmed the Authority; 22-10 (c) Sales and use tax may be imposed by a municipality if it 22-11 already participates in a transportation or transit plan other 22-12 than Authority, if: 22-13 (1) the combined rates of all sales and use taxes 22-14 proposed in the municipality does not exceed two-percent; 22-15 (2) in submitting the authorization for a vote within 22-16 the municipality, the ballot shall read: "The City of __________ 22-17 already imposes a sales and use tax for participation in the 22-18 __________ transportation authority. The proposed sales and use 22-19 tax is solely for the benefit of, and will be dedicated to the 22-20 __________ county transportation authority." 22-21 SECTION 2. MAXIMUM TAX RATE. (a) The Authority may not 22-22 adopt a sales and use tax including a rate increase, when the tax 22-23 combined with the rates of sales and use taxes imposed by other 22-24 political subdivision having territory in the authority exceeds 2% 22-25 in any location of the authority. Any increase in the tax rate to 22-26 a higher rate must be approved by a majority of the voters at a 23-1 confirmation election as specified herein; 23-2 (b) The sales and use tax takes effect on the first day of 23-3 the first quarter after the confirmation election; 23-4 (c) The tax rate of the Authority may be lowered by order of 23-5 the Executive Committee if it is in the best interest of the 23-6 Authority; 23-7 SUBCHAPTER F. ADMINISTRATION 23-8 SECTION 1. AUDIT. (a) The Authority shall prepare an annual 23-9 audit conducted by an independent certified public accountant; 23-10 (b) The audit is a public record under Chapter 552 of the 23-11 Government Code; 23-12 (c) The Executive Committee shall receive the audit at a 23-13 regular business session and address on the record any deficiencies 23-14 noted in the report to management; 23-15 SECTION 2. FUNDING. (a) The Authority may receive grants, 23-16 donations or gifts to pay for operational costs or authorized 23-17 purposes. 23-18 (b) The Executive Committee shall develop an annual budget 23-19 consistent with its duties. 23-20 (c) The Authority may request funds for operation from 23-21 qualified municipalities, the commissioners court, or both. The 23-22 request shall be accompanied with a budget and funds appropriated 23-23 to the authority are subject to audit. 23-24 SECTION 3. PROHIBITIONS. (a) No employee, agent or person 23-25 receiving compensation from, or on behalf of, the Authority may 23-26 attempt to effect the outcome of any legislation. 24-1 (b) This section does not apply to a contested 24-2 administrative matter or pending or reasonably anticipated 24-3 litigation. 24-4 SECTION 4. EFFECTIVE DATE. This Act takes effect September 24-5 1, 2001.