SRC-LBB S.B. 404 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 404
78R4646JD-FBy: Madla
Infrastructure Development and Security
2/27/2003
As Filed


DIGEST AND PURPOSE 

Current law allows the imposition of a sales and use tax for advanced
transportation purposes.  The board of a transit authority may create an
advanced transportation district within its boundaries and may propose an
increase in the sales and use tax at a rate of 0.25 percent.  As proposed,
S.B. 404 expands the definition of "advanced transportation" and adds the
definition of "mobility enhancement."  This bill increases the maximum
allowable tax rate of an advanced transportation district, and establishes
requirements regarding the use of the tax revenue.  The bill also requires
geographic equity when funding projects that will utilize match monies
collected under this bill. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 451.701, Transportation Code, by amending
Subdivision (1) and adding Subdivision (4), as follows: 

 (1)  Redefines "advanced transportation." 

 (4)  Adds the definition of "mobility enhancement."

SECTION 2.  Amends Section 451.702, Transportation Code, by amending
Subsections (a), (d), and (e) and adding Subsections (f)-(j), as follows: 

(a)  Includes mobility enhancement among the reasons for which the board
of a transportation authority may impose a sales and use tax.  Requires
the governing body of the district to set the rate of the sales and use
tax at one of four specified percentages. 

(d)  Provides that the proposition on the election ballot shall read:  "
The creation of an advanced transportation district and the imposition of
a sales and use tax for advanced transportation and mobility enhancement
within the district at the rate to be set by the governing body of the
advanced transportation district."  Makes a conforming change. 

 (e)  Requires that the proceeds of the sales and use tax imposed under
this section be  
 used by the district only for certain purposes.

(f)  Requires the district to use one-half of the proceeds of the sales
and use tax only for advanced transportation purposes as determined by the
governing body of the district. 

(g)  Requires the governing body of the district to remit a set portion of
the proceeds of the sales and use tax to each participating unit.
Authorizes a participating unit to use proceeds received only for advanced
transportation or mobility enhancement purposes in the territory of  the
authority. 

 (h)  Requires payments under Subsection (g) to be made at a certain time.

(i)  Requires the governing body of the district to place one-fourth of
the sales and use tax proceeds in a separate account.  Authorizes the
governing body of the district to use funds in the account, together with
interest or other revenues earned on those funds, only to provide the
appropriate amount to the Texas Department of Transportation as the local
share of a state or federal grant for advanced transportation or mobility
enhancement purposes in the territory of the district. 

(j)  Requires the governing body of the district  to follow certain
guidelines for projects to be funded under Subsection (i). 

SECTION 3.  Effective date:  upon passage or September 1, 2003.