80R4960 JD-D

By: Brimer S.B. No. 1435

A BILL TO BE ENTITLED

AN ACT

relating to the creation, powers, and funding of a metropolitan area mobility authority; authorizing a tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle G, Title 6, Transportation Code, is amended by adding Chapter 371 to read as follows: CHAPTER 371. METROPOLITAN AREA MOBILITY AUTHORITIES SUBCHAPTER A. GENERAL PROVISIONS

Sec. 371.001. DEFINITIONS. In this chapter:

(1) "Authority" means a metropolitan area mobility authority.

(2) "Board" means the board of directors of an authority.

(3) "Director" means a member of a board.

Sec. 371.002. CREATION. (a) For each county in this state having a population of 500,000 or more, the commission by order shall create an authority. The territory of an authority consists of the county having a population of 500,000 or more and each county contiguous to that county.

(b) In connection with two contiguous counties each having a population of 500,000 or more, the commission by order shall create an authority, the territory of which consists of both counties having a population of 500,000 or more and each county that is contiguous to either of those counties.

(c) Under terms and conditions agreed to by the authorities, two contiguous authorities may consolidate into a single authority on the adoption of an order or resolution approving the consolidation by the board of each authority.

Sec. 371.003. BOARD; TERMS; COMPENSATION. (a) The governing body of an authority is a board of directors consisting of an odd number of members.

(b) Directors are appointed by the commissioners court of the counties in the authority. The commissioners court of each county having a population of less than 500,000 shall appoint one director. The commissioners court of each county having a population of 500,000 or more but less than 1 million shall appoint two directors. The commissioners court of each county having a population of 1 million or more shall appoint three directors.

(c) If the number of directors appointed under Subsection (b) is an even number, the commissioners courts of the counties in the authority that have a population of less than 500,000 shall jointly select one additional director.

(d) The directors shall elect a presiding officer and an assistant presiding officer from the board members.

(e) Directors serve two-year staggered terms.

(f) A director is entitled to:

(1) compensation for service on the board; and

(2) expenses actually incurred while serving on the board.

Sec. 371.004. HEADQUARTERS. Each board shall locate and maintain a headquarters for the authority it governs.

Sec. 371.005. GENERAL POWERS. (a) An authority has all the powers of:

(1) the department, other than a power provided by the constitution of this state or a power relating to vehicle titling and registration, motor carriers, or motor vehicles;

(2) a regional mobility authority created under:

(A) Section 361.003, as enacted by Section 2, Chapter 1237, Acts of the 77th Legislature, Regular Session, 2001;

(B) Chapter 370; or

(C) another law of this state; and

(3) a metropolitan rapid transit authority under Chapter 451 or a regional transportation authority under Chapter 452.

(b) For purposes of Subsection (a), all the provisions of Chapter 451 or 452 applicable to an authority under that chapter apply to an authority to the extent they can be made applicable. All references to an authority in those chapters mean an authority under this chapter. All references to the board in Chapter 451 or an executive committee in Chapter 452 mean the board of directors of an authority.

(c) An authority may exercise a power described by Subsection (a) or another section of this chapter only in the territory of the authority.

Sec. 371.006. POWERS RELATING TO AIRPORTS. (a) In addition to any other power, an authority may construct, maintain, manage, or operate one or more airports, as defined by Section 22.001, located in the territory of the authority.

(b) For purposes of Subsection (a), all the provisions of Chapter 22 applicable to a local government apply to an authority to the extent they can be made applicable. All references to a local government in that chapter mean an authority. All references to the governing body of a local government in that chapter mean a board.

Sec. 371.007. DIVISIONS. (a) Each authority shall establish an aviation division, a highway division, a rail division, and a toll project division.

(b) A board may enter into one or more agreements with the commission or the department for the design, construction, maintenance, or operation of a transportation project of the authority that is located in the territory of the authority, including a tolled or nontolled highway or segment of a highway, and the commission and the department are authorized to enter into such a contract with a board. [Sections 371.008-371.050 reserved for expansion] SUBCHAPTER B. LOCAL FUEL SALES TAX

Sec. 371.051. DEFINITIONS. In this subchapter:

(1) "Dealer," "diesel fuel," "gasoline," "motor vehicle," "public highway," and "sale" have the meanings assigned by Section 162.001, Tax Code.

(2) "Jobber" means a person who:

(A) purchases tax-paid diesel fuel or gasoline from a person who holds a license under Chapter 162, Tax Code; and

(B) makes a sale with the tax included to a person who maintains storage facilities for motor fuel and uses all or part of the stored motor fuel to operate a motor vehicle.

Sec. 371.052. FUEL SALES TAX AUTHORIZED. (a) An authority, by order of its board, may impose a sales tax on gasoline and diesel fuel sold in the territory of the authority to propel a motor vehicle on the public highways of this state.

(b) An authority may impose a tax under this subchapter only if the tax is approved at an election held under Section 371.054.

Sec. 371.053. RATE OF TAX. The tax authorized by this subchapter may be imposed in increments of one-eighth of one percent, not to exceed two percent, of the sales price of gasoline and diesel fuel sold in the authority and used to propel a motor vehicle on the public highways of this state.

Sec. 371.054. ADOPTION ELECTION PROCEDURE. (a) An election to adopt the tax authorized by this subchapter is called by an order of the applicable board.

(b) At an election to adopt the tax, the ballot shall be prepared to permit voting for or against the proposition: "The adoption of a local fuel sales tax in the (name of) Metropolitan Area Mobility Authority at the rate of (insert proposed rate)."

Sec. 371.055. ELECTION TO ABOLISH TAX OR CHANGE RATE. (a) The board of an authority may order an election on the question of abolishing or changing the rate of the tax authorized by this subchapter.

(b) The board shall order an election on the question of abolishing or changing the rate of the tax if the board receives a petition requesting the election signed by a number of registered voters of the authority equal to at least five percent of the total vote received in the territory of the authority by all candidates for governor in the most recent gubernatorial general election.

(c) The ballot at an election to change the rate of the tax must be printed to permit voting for or against the proposition: "Authorizing the (name of) Metropolitan Area Mobility Authority to impose a local fuel sales tax at the rate of (insert proposed rate)."

(d) The ballot at an election to abolish the tax must be printed to permit voting for or against the proposition: "Abolishing the local fuel sales tax in the (name of) Metropolitan Area Mobility Authority."

Sec. 371.056. COMPUTATION OF TAX. (a) A person, including a dealer or jobber, who makes a sale of gasoline or diesel fuel in the authority to a person who uses the gasoline or diesel fuel to propel a motor vehicle on the public highways of this state shall collect the tax authorized by this subchapter for the benefit of the applicable authority.

(b) The seller shall add the tax authorized by this subchapter to the selling price of gasoline or diesel fuel, and the tax is a part of the gasoline or diesel fuel price, is a debt owed to the seller, and is recoverable at law in the same manner as the gasoline or diesel fuel charge.

(c) The tax authorized by this subchapter is in addition to the tax imposed by Chapter 162, Tax Code.

Sec. 371.057. EXEMPTIONS APPLICABLE. The exemptions provided by Sections 162.104 and 162.204, Tax Code, apply to the tax authorized by this subchapter.

Sec. 371.058. EFFECTIVE DATE OF TAX OR TAX CHANGE. The adoption or abolition of the tax authorized by this subchapter or a change in a tax rate takes effect on the date prescribed by the order imposing or abolishing the tax or changing the rate.

Sec. 371.059. COLLECTION AND ENFORCEMENT OF TAX. (a) A person required to collect the tax authorized by this subchapter shall report and send the taxes to the applicable authority as provided by that authority.

(b) The board of an authority by order may prescribe monetary penalties, including interest charges, for failure to keep records required by this subchapter, to report when required, or to pay the tax when due.

(c) The board of an authority by order may permit a person who is required to collect the tax authorized by this subchapter to retain a percentage of the amount collected and required to be reported as reimbursement to the person for the costs of collecting the tax. The board may provide that the person may retain the amount only if the person pays the tax and files reports as required by the authority.

(d) The attorney acting for the authority may bring suit against a person who violates this subchapter.

Sec. 371.060. REFUND. (a) A person who has paid the tax authorized by this subchapter on gasoline or diesel fuel used by the person for a purpose other than to propel a motor vehicle on the public highways of this state or for a use exempted under Section 371.057 may file a claim for a refund.

(b) An authority shall prescribe the procedures a person must use to obtain a refund under this section.

Sec. 371.061. REQUIRED PERMIT. The board of an authority may require a dealer, jobber, or other person required to collect, report, and pay the tax authorized by this subchapter to obtain a permit from the authority.

Sec. 371.062. TRANSFER TO COMPTROLLER. (a) Not later than the last day of the first month following each calendar quarter, the custodian of the authority treasury shall send to the comptroller an amount equal to one-fourth of the taxes collected during that calendar quarter after payment of all refunds allowed by law and expenses of collection.

(b) The comptroller shall deposit money received under this section to the credit of the available school fund.

Sec. 371.063. USE OF TAX PROCEEDS. Except as provided by Section 371.062, an authority may use net tax revenue received under this subchapter only for a purpose authorized by Section 7-a, Article VIII, Texas Constitution. [Sections 371.064-371.100 reserved for expansion] SUBCHAPTER C. SALES AND USE TAX

Sec. 371.101. IMPOSITION, COMPUTATION, ADMINISTRATION, AND GOVERNANCE OF SALES TAX. (a) An authority, by order of its board, may impose a sales and use tax.

(b) Chapter 323, Tax Code, to the extent not inconsistent with this subchapter, governs the imposition, computation, administration, and governance of the sales and use tax under this subchapter, except that Sections 323.101 and 323.105 and 323.401-323.408, Tax Code, do not apply.

(c) Chapter 323, Tax Code, does not apply to the use and allocation of revenue under this subchapter.

(d) In applying the procedures under Chapter 323, Tax Code, to an authority, the authority's name is substituted for "the county," and "board of directors" is substituted for "commissioners court."

Sec. 371.102. SALES AND USE TAX RATE. The rate of a sales and use tax imposed under this subchapter is three-eighths of one percent.

Sec. 371.103. EFFECTIVE DATE OF SALES AND USE TAX. (a) The sales and use tax imposed under this subchapter takes effect on the first day of the first calendar quarter occurring after the expiration of the first complete calendar quarter occurring after the date on which the comptroller receives a notice of the board's order imposing the tax.

(b) If the comptroller determines that an effective date provided by Subsection (a) will occur before the comptroller can reasonably take the action required to begin collecting the tax, the comptroller may postpone the effective date until the first day of the next calendar quarter.

Sec. 371.104. IMPOSITION IN MUNICIPALITY OR COUNTY WITH OTHER TAXING AUTHORITY. (a) If an authority is included within the boundaries of another taxing authority and the imposition of the tax under this subchapter would result in a combined tax rate of more than two percent in any location in the authority, the tax rate of the other taxing authority is automatically reduced to the highest rate that will not result in a combined tax rate of more than two percent in any location in the authority. If the authority is included within the boundaries of more than one taxing authority, the board shall choose which taxing authority's tax will be reduced.

(b) The rate of the tax imposed by the other taxing authority is increased without further action of the governing body or the voters of the other taxing authority on the date on which the tax imposed under this subchapter is abolished by the board, but only to the extent that any tax imposed by the other taxing authority was reduced under this section when the board ordered the imposition of the tax under this subchapter.

(c) This section does not permit a taxing authority to impose taxes at differential tax rates within the territory of the authority.

Sec. 371.105. ABOLITION OF TAX. (a) The board of an authority by order may abolish a sales and use tax imposed under this subchapter.

(b) A sales and use tax imposed under this subchapter may not be collected after the last day of the first calendar quarter occurring after notification to the comptroller by the authority that the board has abolished the tax.

(c) An authority shall notify the comptroller of the abolition of the tax not later than the 30th day after the date its board adopts an order under Subsection (a). [Sections 371.106-371.150 reserved for expansion] SUBCHAPTER D. ADDITIONAL VEHICLE REGISTRATION FEE

Sec. 371.151. ADDITIONAL COUNTY REGISTRATION FEE FOR BENEFIT OF AUTHORITY. The commissioners court of a county located in an authority by order shall impose an additional fee for registering a vehicle in the county if the question of imposing the fee is submitted to and approved by the voters of each county in the authority. The fee is for the use and benefit of the authority.

Sec. 371.152. CALLING OF ELECTION. (a) An election authorized by Section 371.151 is called by the adoption of an order by the commissioners courts of the counties in an authority.

(b) The commissioners courts shall call the election on receipt of a resolution or order of the board requesting that the election be called. The resolution or order of the board must specify the amount of the proposed additional registration fee.

Sec. 371.153. ELECTION DATE. An election under Section 371.151 must be held on the next uniform election date that occurs after the date of the election order and that allows sufficient time to comply with the requirements of other law.

Sec. 371.154. BALLOT. (a) At an election to adopt the additional fee, the ballot shall be prepared to permit voting for or against the proposition: "The adoption of an additional vehicle registration fee in (name of county) in the amount of ($_____) for the use and benefit of (name of authority)."

(b) The additional fee may not be imposed unless in each county of the authority a majority of the voters voting in the election favor the proposition.

Sec. 371.155. EXEMPTION. A vehicle that may be registered under Chapter 502 or 504 without payment of a registration fee may be registered in a county imposing a fee under this subchapter without payment of the additional fee.

Sec. 371.156. EFFECTIVE DATE. A fee imposed under this subchapter may take effect only on January 1 of a year. The commissioners court of a county must adopt the order and notify the department not later than September 1 of the year preceding the year in which the fee takes effect.

Sec. 371.157. REMOVAL. (a) A fee imposed under this subchapter may be removed by the commissioners court of a county on receipt of a resolution or order of the applicable board requesting removal of the fee.

(b) The removal may take effect only on January 1 of a year. A county may remove the fee only by:

(1) rescinding the order imposing the fee; and

(2) notifying the department not later than September 1 of the year preceding the year in which the removal takes effect.

Sec. 371.158. COLLECTION. (a) The county assessor-collector of a county imposing a fee under this subchapter shall collect the additional fee for a vehicle when other fees imposed under Chapter 502 or 504 are collected.

(b) The department shall collect the additional fee on a vehicle that is owned by a resident of a county imposing a fee under this subchapter and that under Chapter 502 or 504 must be registered directly with the department. The department shall send all fees collected for a county under this subsection to the county treasurer.

(c) The department shall adopt rules and develop forms necessary to administer registration by mail for a vehicle being registered in a county imposing a fee under this subchapter.

(d) Each fee collected or received by a county treasurer under this subchapter shall be sent, without deduction, to the authority.

SECTION 2. Subchapter F, Chapter 162, Tax Code, is amended by adding Section 162.506 to read as follows:

Sec. 162.506. PAYMENT TO METROPOLITAN AREA MOBILITY AUTHORITY. On or before the 15th day of each month, the comptroller shall:

(1) using the best available sources of statistical data, determine the estimated average or actual consumption in the territory of each metropolitan area mobility authority in this state during the preceding month of gasoline, diesel fuel, and liquefied gas used to propel motor vehicles on public highways;

(2) from the number of gallons determined under Subdivision (1), determine the taxes collected under this chapter that were paid on that gasoline, diesel fuel, and liquefied gas; and

(3) from money deposited to the credit of the state highway fund, make a payment through the electronic funds transfer system to each metropolitan area mobility authority in an amount equal to 85 percent of the amount determined under Subdivision (2).

SECTION 3. (a) On the date agreed upon by the board of directors of the applicable metropolitan area mobility authority and the board of directors of a regional mobility authority having territory in a metropolitan area mobility authority, but not later than the first anniversary of the date that a majority of the initial board of directors of the metropolitan area mobility authority have been appointed and have qualified for office:

(1) the assets, rights, and obligations of the regional mobility authority are transferred to the metropolitan area mobility authority;

(2) the metropolitan area mobility authority shall succeed to all assets, rights, and other property of the regional mobility authority, including roadways, rights-of-way, toll projects and proposed extensions to those projects, administration buildings, and all other facilities, improvements, leaseholds, funds, accounts, and investments;

(3) the metropolitan area mobility authority shall assume and become liable for all duties and obligations of the regional mobility authority related to the assets, rights, and properties transferred under Subdivision (2) of this subsection, including contracts and bonds secured by the revenues of the assets, and the metropolitan area mobility authority is obligated to comply with all the assumed obligations to the same extent as the regional mobility authority;

(4) a rule or regulation adopted by the regional mobility authority relating to the operation of a turnpike before that date that is not inconsistent with this Act remains in effect as a rule or regulation of the metropolitan area mobility authority until superseded by action of that entity; and

(5) to provide continuity of services, the board of directors of the metropolitan area mobility authority may enter into a contract with the board of directors of the regional mobility authority under which the regional mobility authority will manage the assets, rights, and other property of the regional mobility authority transferred to the metropolitan area mobility authority under this section in the manner and under the terms and conditions agreed to by those boards of directors and specified in the contract.

(b) The metropolitan area mobility authority is a successor agency to the regional mobility authority for all purposes, including for the purpose of Section 52-b, Article III, Texas Constitution, concerning all assets, rights, other property, duties, and obligations transferred to the metropolitan area mobility authority under this Act.

(c) Any existing agreement by and between the regional mobility authority and this state, the Texas Transportation Commission, the Texas Department of Transportation, the Federal Highway Administration, the United States Department of Transportation, any other federal or state governmental entity, or any local governmental entity that pertains to an asset, right, or obligation transferred to the metropolitan area mobility authority under this Act is binding on, benefits, and is fully enforceable by and against the metropolitan area mobility authority.

SECTION 4. (a) On the date agreed upon by the board of directors of the applicable metropolitan area mobility authority and the governing body of a metropolitan rapid transit authority operating under Chapter 451, Transportation Code, or a regional transportation authority operating under Chapter 452 of that code, but not later than the first anniversary of the date that a majority of the initial board of directors of the metropolitan area mobility authority have been appointed and have qualified for office:

(1) all assets, rights, and obligations of the metropolitan rapid transit authority or regional transportation authority that pertain to or are associated with a commuter rail system, fixed rail transit system, light rail system, or light rail mass transit system are transferred to the metropolitan area mobility authority;

(2) the metropolitan area mobility authority shall succeed to all assets, rights, and other property of the metropolitan rapid transit authority or regional transportation authority that pertain to or are associated with a system described by Subdivision (1) of this subsection, including rolling stock, fixed guideway rails, rights-of-way, administration buildings, and all other facilities, improvements, leaseholds, funds, accounts, and investments related to that system;

(3) the metropolitan area mobility authority shall assume and become liable for all duties and obligations of the metropolitan rapid transit authority or regional transportation authority that relate to the system described by Subdivision (1) of this section or to the assets, rights, and properties transferred under Subdivision (2) of this subsection, including contracts and bonds secured by the revenues of the assets, and the metropolitan area mobility authority is obligated to comply with all the assumed obligations to the same extent as the metropolitan rapid transit authority or regional transportation authority;

(4) a rule or regulation adopted by the metropolitan rapid transit authority or regional transportation authority relating to the operation of a system described by Subdivision (1) of this subsection before that date that is not inconsistent with this Act remains in effect as a rule or regulation of the metropolitan area mobility authority until superseded by action of that entity; and

(5) to provide continuity of services, the board of directors of the metropolitan area mobility authority may enter into a contract with the governing body of the metropolitan rapid transit authority or regional transportation authority under which the metropolitan rapid transit authority or regional transportation authority will manage the assets, rights, and other property of the metropolitan rapid transit authority or regional transportation authority transferred to the metropolitan area mobility authority under this section, in the manner and under the terms and conditions agreed to by the governing body and the board of directors and specified in the contract.

(b) Any existing agreement by and between the metropolitan rapid transit authority or regional transportation authority and this state, the Texas Transportation Commission, the Texas Department of Transportation, the Federal Highway Administration, the United States Department of Transportation, any other federal or state governmental entity, or any local governmental entity that pertains to an asset, right, or obligation transferred to the metropolitan area mobility authority under this section is binding on, benefits, and is fully enforceable by and against the metropolitan area mobility authority.

SECTION 5. (a) On the date agreed upon by the board of directors of the applicable metropolitan area mobility authority and the governing body of an entity that operates an airport in the territory of the authority, but not later than the first anniversary of the date that a majority of the initial board of directors of the metropolitan area mobility authority have been appointed and have qualified for office:

(1) all assets, rights, and obligations of the operating entity that pertain to or are associated with the airport are transferred to the metropolitan area mobility authority;

(2) the metropolitan area mobility authority shall succeed to all assets, rights, and other property of the operating entity that pertain to or are associated with the airport, including administration buildings and all other facilities, improvements, leaseholds, funds, accounts, and investments related to the airport;

(3) the metropolitan area mobility authority shall assume and become liable for all duties and obligations of the operating entity that relate to the airport or to the assets, rights, and properties transferred under Subdivision (2) of this section, including contracts and bonds secured by the revenues of the assets, and the metropolitan area mobility authority is obligated to comply with all the assumed obligations to the same extent as the operating entity;

(4) a rule or regulation adopted by the operating entity relating to the operation of the airport before that date that is not inconsistent with this Act remains in effect as a rule or regulation of the metropolitan area mobility authority until superseded by action of that entity; and

(5) to provide continuity of services, the board of directors of the metropolitan area mobility authority may enter into a contract with the entity that operates the airport under which that entity will manage the assets, rights, and other property of the metropolitan rapid transit authority or regional transportation authority transferred to the metropolitan area mobility authority under this section, in the manner and under the terms and conditions agreed to by the governing body and the governing body of the operating entity.

(b) Any existing agreement by and between the entity that operates the airport and this state, the Texas Transportation Commission, the Texas Department of Transportation, the Federal Aviation Administration, the United States Department of Transportation, any other federal or state governmental entity, or any local governmental entity that pertains to an asset, right, or obligation transferred to the metropolitan area mobility authority under this section is binding on, benefits, and is fully enforceable by and against the metropolitan area mobility authority.

SECTION 6. This Act takes effect September 1, 2007.