78R3481 JD-D

By:  Shapiro                                                      S.B. No. 971



A BILL TO BE ENTITLED

AN ACT

relating to the addition of a municipality to the territory of a 
regional transportation authority.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 452.602, Transportation Code, is amended 
by amending Subsection (a) and adding Subsection (a-1) to read as 
follows:
	(a)  The territory of a municipality that is not part of an 
authority may be added to an authority if:
		(1)  any part of the municipality is located in a county 
in which the authority is located, regardless of whether the 
municipality is contiguous to the territory of the authority;
		(2)  the municipality has not adopted an additional 
municipal sales and use tax, as defined by Section 321.002, Tax 
Code;
		(3)  the governing body of the municipality orders an 
election under this section on whether the territory of the 
municipality should be added to the authority;  and
		(4) [(3)]  a majority of the votes received in the 
election favor the measure.
	(a-1)  If addition of the territory of the municipality to 
the authority would impair the imposition of the authority's sales 
and use tax because the addition would result in a combined sales 
and use tax rate of more than two percent in the municipality, the 
election to approve the addition of the municipality to the 
authority is to be treated for all purposes as an election to reduce 
the rate of the municipality's sales and use tax to the highest rate 
that will not impair the imposition of the authority's sales and use 
tax.
	SECTION 2.  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.