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.