By: Madla S.B. No. 1434
A BILL TO BE ENTITLED
AN ACT
relating to use of money of an advanced transportation district to
finance advanced transportation or mobility enhancement by a
county, municipality, or local government corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subdivision (4), Section 451.701,
Transportation Code, is amended to read as follows:
(4) "Mobility enhancement" means the design,
construction, reconstruction, alteration, financing, 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; and
(E) any debt service requirement, capitalized
interest, reserve fund requirement, credit agreement as defined by
Section 1371.001, Government Code, administrative cost, or other
bond-related cost incurred by or relating to the issuance of
obligations by a county or municipality or by a local government
corporation created under Chapter 431 acting on behalf of a county
or municipality relating to the design, construction,
reconstruction, alteration, financing, and maintenance of mobility
enhancement projects.
SECTION 2. Section 451.702, Transportation Code, is amended
by amending Subsections (f) and (i) and adding Subsections (k),
(l), and (m) to read as follows:
(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. Those purposes
may include a debt service requirement, capitalized interest,
reserve fund requirement, credit agreement as defined by Section
1371.001, Government Code, administrative cost, or other
bond-related cost incurred by or relating to the issuance of
obligations by the district relating to the purchase, design,
construction, reconstruction, alteration, financing, and
maintenance of advanced transportation facilities, equipment,
operations, systems, and services, including a feasibility study,
operation, or professional or other service in connection with the
facilities, equipment, operations, systems, and services.
(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, a county or
municipality in which the district is located, or a local
government corporation created under Chapter 431 as the local share
of a state or federal grant, including a transfer of money by the
Texas Department of Transportation or another state or federal
entity under an agreement with a county, municipality, or local
government corporation created by the county or municipality under
Chapter 431, for advanced transportation or mobility enhancement
purposes in the territory of the district.
(k) Pursuant to its authority under Subsection (i), the
governing body of the district may enter into an agreement or other
contractual arrangement with a county, municipality, or local
government corporation created under Chapter 431 by a county or
municipality to transfer proceeds of the district's sales and use
tax identified in Subsection (i) to the county, municipality, or
local government corporation to finance any cost relating to
mobility enhancement purposes in the territory of the district.
The county, municipality, or local government corporation may
pledge and create a lien on the proceeds transferred. The lien and
pledge are subject to Chapter 1208, Government Code. Money of the
district other than the portion of the district's sales and use tax
identified in Subsection (i) may not be used or obligated for
purposes identified in Subsection (i).
(l) The governing body of the district may enter into an
agreement or contractual arrangement under Subsection (k) without
the necessity of an election.
(m) As a condition of a payment under Subsection (i), the
county, municipality, or local government corporation shall
provide the governing body of the district a certificate indicating
that the county, municipality, or local government corporation will
use the money in conformity with this subchapter.
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, 2005.