By:  Solomons                                                     H.B. No. 3017

Substitute the following for H.B. No. 3017:                                   

By:  Lewis                                                    C.S.H.B. No. 3017



A BILL TO BE ENTITLED

AN ACT

relating to the organization, administration and validation of the 
creation and certain action of a coordinated county transportation 
authority.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1:  Section 460.001, Transportation Code, is amended 
to read as follows:
	Sec. 460.001.  DEFINITIONS.  In this chapter:                                  
		(1)  "Authority" means a coordinated county 
transportation authority created under this chapter.
		(2)  "Balance of the county" means that part of the 
county that is outside the boundaries of a municipality with a 
population of 12,000 or more.
		(3)  "Board of directors [Executive committee]" means 
the governing body of the authority.
	SECTION 2.  Subchapter A, Chapter 460, Transportation Code, 
is amended by adding Section 460.004 to read as follows:
	Sec. 460.004.  REFERENCE.  A reference in this chapter to the 
executive committee means the board of directors.
	SECTION 3.  Section 460.551, is amended to read as follows:                    
	Sec. 460.551.  Sales and Use Tax  (a)  The executive 
committee may impose for an authority a sales and use tax at the 
rate of:
		(1)  one-quarter of one percent;                                              
		(2)  three-eights of one percent;                                      
		(3) [2]  one-half of one percent;                            
		(4)  five-eights of one percent;                                       
		(5) [3]  three-quarters of one percent; [or]
		(6)  seven-eights of one percent; or                                   
		(7) [4]  one percent.                                        
	SECTION 4.  Section 460.056, Transportation Code, is amended 
by adding Subsection (f) to read as follows:
	(f)  The board of directors of a confirmed authority may by 
rule create a procedure by which a municipality described by 
Subsection (d) may become a participating member of an authority.
	SECTION 5.  Section 460.201(b), Transportation Code, is 
amended to read as follows:
	(b)  A member of the board of directors [executive committee] 
may not serve more that three consecutive terms.
	SECTION 6.  Subchapter D, Chapter 460, Transportation Code, 
is amended by adding Section 460.206 to read as follows:
	Sec. 460.206.  RULES.  The board of directors may adopt rules 
relating to the creation of a vacancy on the board by the absence of 
a board member at the board meetings, staggering he terms ofup to 
one half of the board of directors, and providing for alternatives.
	SECTION 7.  Section 460.44, Transportation Code, is amended 
by adding Subsection (d) to read as follows:
	(d)  An authority may accept gifts, grants, donations, 
receipts, or funds from any source to carry out its powers and 
duties under this chapter.
	SECTION 8.  Section 460.502(c), Transportation Code, is 
amended to read as follows:
	(c)  A bond issued by the authority may ave [20 years] a 
maturity of up to 30 years from the date of issuance [even principal 
and interest payback].
	SECTION 9.  Section 460.503, Transportation Code, is amended 
to read as follows:
	Section 460.503.  BOND TERMS.  The bonds of an authority are 
fully negotiable.  An authority may make the bonds redeemable 
before maturity.  The terms and conditions of authority bonds are 
subject to rules adopted by the board of directors.
	SECTION 10.  Section 460.503, Transportation Code, is 
amended to read as follows:
	Sec. 460.506.  SECURITY PLEDGED.  To secure the payment of an 
authority's bonds, the authority may:
		(1)  pledge all or part of revenue realized from any tax 
that is approved and levied;
		(2)  pledge any part of the revenue of the public 
transportation system; [or]
		(3)  mortgage any part of the public transportation 
system; or              
		(4)  pledge government grants, contractual revenue, or 
lease revenue.
	SECTION 11.  Section 460.507, Transportation Code, is 
amended to read as follows:
	Sec. 460.508.  NOTES.  (a)  An authority may issue negotiable 
notes payable from any of the authority's sources of revenue to pay 
for any lawful expenditure, other than principal and interest on 
the authority's debt.
	(b)  notes issued by an authority shall be payable over a 
period not to exceed five year from the date of issuance.
	(c)  the Texas Resource Conservation Commission is not 
required to approve notes issued under this section.
	(d)  an authority may not have outstanding notes in excess of 
$10 [1] million at any one time.
	SECTION 12.  (a)  The creation of the Denton County 
Transportation Authority under Chapter 1186, Acts of the 77th 
Legislature, Regular Session, 2001, composed of the territory in 
Denton County is validated as of the date of the election held on 
November 5, 2001, at which the voters of Denton County approved the 
confirmation of the district.  Any acts and proceedings of the 
district in Denton County are validated as of the dates they 
occurred.
	(b)  This Act does not validate any government act or 
proceeding that, under the law of this state at the time of the act 
or proceeding occurred, was a misdemeanor or a felony.
	SECTION 13.  This Act takes effect September 1, 2003, except 
Section 3 of this Act takes effect only in House Bill 164, 78th 
Session, is passed by the House and Senate and approved by the 
Governor.