LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 9, 2001
  
  
          TO:  Honorable Bill G. Carter, Chair, House Committee on Urban
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3557  by Shields (Relating to advanced transportation
               districts and the funding of those districts.), As
               Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would amend the definition of advanced transportation in
Subtitle K, Section 451.701 of the Transportation Code to include high
occupancy toll lanes, express lanes, general purpose freeway lanes,
general purpose arterial lanes, freeway interchanges, busways, bus lanes,
bus rapid transit, traffic management systems and transportation
improvements along public ways.  The definition would also include
operating costs and management in addition to planning.

The bill would allow the county commissioners court to order an election
to impose a sales and use tax for advanced transportation at a rate
ranging from 0.25 percent to 0.5 percent in increments of 0.125 percent.
The entity ordering the election would pay the costs of the election.
The proceeds of the sales and use tax must be used in conformity with
the metropolitan transportation plan of the metropolitan planning
organization. The bill would take effect September 1, 2001.
  
Local Government Impact
  
The bill would only apply to a metropolitan transit authority in which a
sales and use tax is imposed at a rate of 0.5 percent and in which the
principal municipality has a population of more than 700,000.  Under
current law, the board of a transit authority may create an advanced
transportation district within its boundaries and impose a sales and use
tax at a rate of 0.25 percent.

According to the San Antonio Metropolitan Transit Authority, the bill
would generate the following revenue for the advanced transportation
district if the sales tax was approved by a majority of voters:

at the rate of 0.125 percent, the sales tax would produce $18.4
million;
at the rate of 0.25 percent, the sales tax would produce $36.9
million; and
at the rate of 0.5 percent, the sales tax would produce $73.9
million.

There would be an estimated one-time cost if a special election was held.
According to the San Antonio Metropolitan Transit Authority, the
previous special election cost the district $300,000.  However, if the
election was held in November, the election costs would be minimal.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB