By Shields                                            H.B. No. 3557
         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 advanced transportation districts and the funding of
 1-3     those districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subtitle K, Section 451.701, Transportation Code,
 1-6     is amended as follows:
 1-7                 (1)  "Advanced transportation" means [light rail,
 1-8     commuter rail], high occupancy vehicle lanes, high occupancy toll
 1-9     lanes, express lanes, general purpose freeway lanes, general
1-10     purpose arterial lanes, freeway interchanges, busways, bus lanes,
1-11     bus rapid transit, fixed guideways, traffic management [monitoring]
1-12     systems, transportation improvements along public ways and other
1-13     advanced transportation facilities and services, including
1-14     planning, operating costs and management, feasibility studies, and
1-15     professional and other services in connection with those facilities
1-16     and services.
1-17                 (2)  "District" means an advanced transportation
1-18     district created under this subchapter.
1-19                 (3)  "Participating unit" mean[s] a municipality or the
1-20     unincorporated area of a county that joins a district under this
1-21     subchapter.
1-22           Sec. 451.702.  Election Authorized. (a)  The board of an
1-23     authority or the county commissioners court in which the
 2-1     metropolitan transit authority's sales and use tax is imposed at a
 2-2     rate of one-half of one percent and in which the principal
 2-3     municipality has a population of more than 700,000 may order an
 2-4     election to create an advanced transportation district within the
 2-5     authority's boundaries and to impose a sales and use tax for
 2-6     advanced transportation under this subchapter.  If approved at the
 2-7     election, the rate of the sales and use tax for advanced
 2-8     transportation [is] may be one-fourth to one-half of one percent in
 2-9     one-eighth percent increments.
2-10           (b)  The entity ordering the election [board] shall provide
2-11     written notice of the [board's] intention to call an election under
2-12     Subsection (a)  to the governing body of each municipality and the
2-13     commissioners court of each county any part of which is in the
2-14     authority at least 120 days before the date of the proposed
2-15     election.
2-16           (c)  The entity ordering the election [authority] shall pay
2-17     the costs of the [an] election ordered by the board under this
2-18     section.
2-19           (d)  At the election, the ballots shall be prepared to permit
2-20     voting for or against the proposition:  "The creation of an
2-21     advanced transportation district and the imposition of a sales and
2-22     use tax for advanced transportation within the district at the rate
2-23     of     of one percent."
2-24           (e)  The proceeds of the sales and use tax imposed under this
2-25     section shall be used by the district in conformity with the
2-26     metropolitan transportation plan of the metropolitan planning
 3-1     organization and only for advanced transportation purposes:
 3-2                 (1)  The proceeds shall be expended as mutually agreed
 3-3     by the transit authority's board and the metropolitan planning
 3-4     organization's transportation steering committee;
 3-5                 (2)  Should the transit authority and the metropolitan
 3-6     planning organization's transportation steering committee fail to
 3-7     reach an agreement on the expenditure of the of the sales and use
 3-8     tax revenue, a panel composed of the following five representatives
 3-9     of participating political jurisdictions shall decide how to manage
3-10     and disburse the tax revenues:
3-11                       (A)  The County Judge of the county of largest
3-12     population within the metropolitan planning organization area;
3-13                       (B)  The Mayor of the city of largest population
3-14     within the metropolitan planning organization area;
3-15                       (C)  The metropolitan planning organization
3-16     Chairman;
3-17                       (D)  The Chairman of the transit authority; and
3-18                       (E)  A representative of the participating
3-19     suburban cities.
3-20           SECTION 2.  Subtitle K, Section 451.707, Transportation Code,
3-21     is amended as follows:
3-22           (a)  The board of the authority, or the metropolitan planning
3-23     organization transportation steering committee shall act as the
3-24     governing body of the district and is responsible for the
3-25     management, operation, and control of the district, subject to the
3-26     approval process set out in Section 451.702(f) above.
 4-1           (b)  The business of the district may be [is] conducted
 4-2     through its governing body, subject to the approval process set out
 4-3     in Section 451.702(f) above [and by the employees of the authority
 4-4     acting under the control and direction of the general manager of
 4-5     the authority].
 4-6           (c)  The district may enter into contracts with the authority
 4-7     or other private or public entities to conduct the business of the
 4-8     district.
 4-9           (d)  Except as otherwise provided by this subchapter, the
4-10     district has the same powers of the transit authority [that called
4-11     the election creating the district] as provided by Subchapters B,
4-12     C, F, H, I, and K.
4-13           SECTION 3.  This Act takes effect September 1, 2001.