S.B. No. 404
AN ACT
relating to advanced transportation districts.                                
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 451.701, Transportation Code, is amended 
by amending Subdivision (1) and adding Subdivision (4) to read as 
follows:
		(1)  "Advanced transportation" means light rail, 
commuter rail, fixed guideways, traffic management systems, bus 
ways, bus lanes, technologically advanced bus transit vehicles and 
systems, bus rapid transit vehicles and systems, passenger 
amenities, transit centers, stations, electronic transit-related 
information, fare, and operating systems, high occupancy vehicle 
lanes, traffic signal prioritization and coordination systems,
monitoring systems, and other advanced transportation facilities, 
equipment, operations, systems, and services, including planning, 
feasibility studies, operations, and professional and other 
services in connection with such [those] facilities, equipment, 
operations, systems, and services.
		(4)  "Mobility enhancement" means the design, 
construction, reconstruction, alteration, and maintenance of:
			(A)  streets, roads, highways, high occupancy 
vehicle lanes, toll lanes, sidewalks, and infrastructure designed 
to improve mobility;
			(B)  traffic signal prioritization and 
coordination systems;        
			(C)  monitoring systems; and                                          
			(D)  other mobility enhancement facilities, 
equipment, systems, and services.
	SECTION 2.  Section 451.702, Transportation Code, is amended 
by amending Subsections (a), (d), and (e) and adding Subsections 
(f) through (j) to read as follows:
	(a)  The board of an authority in which the sales and use tax 
is imposed at a rate of one-half of one percent and in which the 
principal municipality has a population of more than 700,000 may 
order an election to create an advanced transportation district 
within the authority's boundaries and to impose a sales and use tax 
for advanced transportation and mobility enhancement under this 
subchapter.  If approved at the election, the rate of the sales and 
use tax for advanced transportation and mobility enhancement shall 
be set by the governing body of the district at a rate of:
		(1)  one-eighth of one percent;                                        
		(2)  [is] one-fourth of one percent;           
		(3)  three-eighths of one percent; or                                  
		(4)  one-half of one percent.                                          
	(d)  At the election, the ballots shall be prepared to permit 
voting for or against the proposition:  "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 [of one-fourth of one percent]."
	(e)  The proceeds of the sales and use tax imposed under this 
section shall be used by the district only for:
		(1)  advanced transportation and mobility enhancement
purposes as provided by Subsections (f)-(j); and
		(2)  reimbursement to the authority for the cost of an 
election held under this section.
	(f)  The district shall 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)  The governing body of the district shall remit 
one-fourth of the proceeds of the sales and use tax to each 
participating unit in proportion to the amount of the sales and use 
tax proceeds that were collected in that participating unit.  A 
participating unit may use proceeds received under this subsection 
only for advanced transportation or mobility enhancement purposes 
in the territory of the authority.
	(h)  Payments under Subsection (g) shall be made monthly 
beginning the first day of the month after the month in which the 
authority receives proceeds of the sales and use tax imposed under 
this section.
	(i)  The governing body of the district shall place 
one-fourth of the proceeds of the sales and use tax in a separate 
account.  Funds in the account, together with interest or other 
revenues earned on those funds, may be used as determined by the 
governing body of the district 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)  For projects to be funded under Subsection (i), the 
governing body of the district shall:
		(1)  obtain recommendations from the appropriate 
metropolitan planning organization;
		(2)  prioritize projects eligible for funding under 
that subsection; and
		(3)  consider in the selection and prioritization 
process the geographic location of other state or federally funded 
transportation projects, advanced transportation projects, and 
mobility enhancement projects so as to foster geographic equity in 
the planning and development of the projects.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.
                                                                              
______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 404 passed the Senate on 
March 20, 2003, by the following vote:  Yeas 31, Nays 0.
______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 404 passed the House on 
May 16, 2003, by the following vote:  Yeas 147, Nays 0, one 
present not voting.
______________________________ 
   Chief Clerk of the House            
Approved:
______________________________ 
            Date
______________________________ 
          Governor