Amend CSSB 1263 (Senate committee printing) by adding the 
following SECTIONS, appropriately numbered, to the bill, and 
renumbering subsequent SECTIONS accordingly:
	SECTION ____.  Section 451.061, Transportation Code, is 
amended by amending Subsection (d) and adding Subsection (d-1) to 
read as follows:
	(d)  Except as provided by Subsection (d-1), the [The] fares, 
tolls, charges, rents, and other compensation established by an 
authority in which the principal municipality has a population of 
less than 1.2 million may not take effect until approved by a 
majority vote of a committee composed of:
		(1)  five members of the governing body of the 
principal municipality, selected by that governing body;
		(2)  three members of the commissioners court of the 
county having the largest portion of the incorporated territory of 
the principal municipality, selected by that commissioners court; 
and
		(3)  three mayors of municipalities, other than the 
principal municipality, located in the authority, selected by:
			(A)  the mayors of all the municipalities, except 
the principal municipality, located in the authority; or
			(B)  the mayor of the most populous municipality, 
other than the principal municipality, in the case of an authority 
in which the principal municipality has a population of less than 
300,000.
	(d-1)  The establishment of or a change to fares, tolls, 
charges, rents, and other compensation by an authority confirmed 
before July 1, 1985, in which the principal municipality has a 
population of less than 750,000, takes effect immediately on 
approval by a majority vote of the board, except that the 
establishment of or a change to a single-ride base fare takes effect 
on the 60th day after the date the board approves the fare or change 
to the fare, unless the policy board of the metropolitan planning 
organization that serves the area of the authority disapproves the 
fare or change to the fare by a majority vote.
	SECTION ____.  Section 451.071, Transportation Code, is 
amended by adding Subsections (b-1) and (g) to read as follows:
	(b-1)  The ballot may not permit the fixed rail transit 
system, or a proposal to expand a system, and the method of funding 
for the system or expansion of the system to be voted on as separate 
options.  All fixed rail transit systems, proposals to expand a 
system, and methods of funding included on a ballot must be approved 
or rejected as a group.
	(g)  This section does not require the authority to hold a 
referendum on a proposal to:
		(1)  enter into a contract to build, operate, or 
maintain a fixed rail transit system for another entity;
		(2)  expand a system previously approved under this 
section if the proposed expansion involves the addition of not more 
than one mile of track to the system; or
		(3)  enter into an interlocal agreement to build, 
operate, or maintain a system previously approved under this 
section.
	SECTION ____.  Subchapter J, Chapter 451, Transportation 
Code, is amended by adding Sections 451.458, 451.459, and 451.460 
to read as follows:
	Sec. 451.458.  INTERNAL AUDITOR.  (a)  This section applies 
only to an authority confirmed before July 1, 1985, in which the 
principal municipality has a population of less than 750,000.
	(b)  The board shall enter into a contract with a qualified 
individual to perform internal auditing services as specified in 
the contract.  A contract entered into under this section may be 
renewed for subsequent fiscal years of the authority but may not be 
renewed for more than three consecutive fiscal years.
	(c)  The contract must require the auditor to report directly 
to the board.
	Sec. 451.459.  SUNSET REVIEW.  (a)  An authority confirmed 
before July 1, 1985, in which the principal municipality has a 
population of less than 750,000 is subject to review under Chapter 
325, Government Code (Texas Sunset Act), as if it were a state 
agency but may not be abolished under that chapter.  The review 
shall be conducted as if the authority were scheduled to be 
abolished September 1, 2011.  In addition, another review shall be 
conducted as if the authority were scheduled to be abolished 
September 1, 2016.  The reviews conducted under this section must 
include an assessment of the governance, management, and operating 
structure of the authority and the authority's compliance with the 
duties and requirements placed on it by the legislature.
	(b)  The authority shall pay the cost incurred by the Sunset 
Advisory Commission in performing a review of the authority under 
this section.  The Sunset Advisory Commission shall determine the 
cost, and the authority shall pay the amount promptly on receipt of 
a statement from the Sunset Advisory Commission detailing the cost.
	Sec. 451.460.  ANNUAL REPORT.  (a)  This section applies only 
to an authority confirmed before July 1, 1985, in which the 
principal municipality has a population of less than 750,000.
	(b)  The authority annually shall provide a report to the 
governing body of each municipality or county in the authority to 
which the authority is financially obligated regarding the status 
of the financial obligation.
	SECTION ____.  Section 451.5021, Transportation Code, is 
amended by amending Subsections (a), (b), and (d) and adding 
Subsections (b-1), (d-1), (d-2), and (d-3) to read as follows:
	(a)  This section applies only to the board of an authority 
created before July 1, 1985, in which the principal municipality 
has a population of less than 750,000 [in which each member of the 
governing body of the principal municipality is elected at large].
	(b)  Members of the [The] board [is composed of seven members 
who] are appointed as follows:
		(1)  one member, who is an elected official, [two 
members representing the general public] appointed by the 
metropolitan planning organization designated by the governor that 
serves the area of the authority;
		(2)  one member, who is an elected official, [two 
members] appointed by the governing body of the principal 
municipality;
		(3)  one member jointly appointed by:                           
			(A)  the governing body of the principal 
municipality; and          
			(B)  the commissioners court of the principal 
county;               
		(4)  one member jointly appointed by:                           
			(A)  the governing body of the principal 
municipality; and          
			(B)  the commissioners court of the county, 
excluding the principal county, that has the largest population of 
the counties in the authority [a panel composed of the mayors of all 
the municipalities in the authority located in the principal county 
of the authority, excluding the mayor of the principal 
municipality]; [and]
		(5)  one member, who is an elected official, appointed 
by a panel composed of:
			(A)  the mayors of all municipalities in the 
authority [located outside the principal county of the authority], 
excluding the mayor of the principal municipality; and
			(B)  the county judges of the counties having 
unincorporated area in the authority;
		(6)  one member, who has at least 10 years of experience 
as a financial or accounting professional, appointed by the 
metropolitan planning organization that serves the area in which 
the authority is located;
		(7)  one member, who has at least 10 years of experience 
in an executive-level position in a public or private organization, 
including a governmental entity, appointed by the metropolitan 
planning organization that serves the area in which the authority 
is located; and
		(8)  two members appointed by the metropolitan planning 
organization that serves the area in which the authority is 
located, if according to the most recent federal decennial census 
more than 35 percent of the population in the territory of the 
authority resides outside the principal municipality[, excluding 
the county judge of the principal county; and
			[(C)  the presiding officer of each municipal 
utility district that:
				[(i)  has a majority of its territory 
located outside the principal county; and
				[(ii)  is located wholly or partly in the 
authority].    
	(b-1)  Notwithstanding Section 451.505, members of the board 
serve staggered three-year terms, with the terms of two or three 
members, as applicable, expiring June 1 of each year.
	(d)  A person appointed under Subsection (b)(1), (2)
[(b)(2), (3), (4)], or (5):
		(1)  must be a member of the governing body:                                  
			(A)  of the political subdivision that is entitled 
to make the appointment; or
			(B)  over which a member of the panel entitled to 
make an appointment presides;
		(2)  vacates the office of board member if the person 
ceases to be a member of the governing body described by Subdivision 
(1);
		(3)  serves on the board as an additional duty of the 
office held on the governing body described by Subdivision (1); and
		(4)  is not entitled to compensation for serving as a 
member of the board.  
	(d-1)  At least two members appointed under Subsections 
(b)(1), (6), and (7) must be qualified voters residing in the 
principal municipality.
	(d-2)  A person appointed under Subsection (b)(3) must:                 
		(1)  have the person's principal place of occupation or 
employment in:
			(A)  the principal municipality; or                                   
			(B)  the portion of the authority's service area 
that is located in the principal county; or
		(2)  be a qualified voter of:                                          
			(A)  the principal municipality; or                                   
			(B)  the portion of the authority's service area 
that is located in the principal county.
	(d-3)  A person appointed under Subsection (b)(4) must:                 
		(1)  have the person's principal place of occupation or 
employment in:
			(A)  the principal municipality; or                                   
			(B)  the portion of the authority's service area 
that is located in the county, other than the principal county, that 
has the largest population of the counties in the authority; or
		(2)  be a qualified voter of:                                          
			(A)  the principal municipality; or                                   
			(B)  the portion of the authority's service area 
that is located in the county, other than the principal county, that 
has the largest population of the counties in the authority.
	SECTION ____.  Subsections (g) and (h), Section 451.5021, 
Transportation Code, are repealed.
	SECTION ____.  (a)  This section applies only to a member of 
the board of a metropolitan rapid transit authority created before 
July 1, 1985, in which the principal municipality has a population 
of 750,000 or less.
	(b)  The term of a board member that is scheduled, under the 
law as it existed before the effective date of this Act, to expire:
		(1)  after the effective date of this Act but before 
January 1, 2010, is extended to December 31, 2009; and
		(2)  on or after January 1, 2010, expires June 1, 2010.                       
	(c)  As soon as practicable on or after the effective date of 
this Act, but not later than December 31, 2009, the persons and 
entities specified in Section 451.5021, Transportation Code, as 
amended by this Act, shall appoint the members of the board in 
compliance with that section, as amended, to serve terms that begin 
January 1, 2010, or June 2, 2010, as applicable.
	(d)  A vacancy created because of the expiration of a term 
under Subsection (b) of this section is filled in the manner 
provided by Subsection (c) of this section.
	(e)  The members of the board appointed under Subsection (c) 
of this section shall draw lots to determine which terms of three 
members expire June 1, 2011, which terms of three members expire 
June 1, 2012, and which terms of three members expire June 1, 2013.