By: Carona  S.B. No. 855
         (In the Senate - Filed February 16, 2009; March 9, 2009, read
  first time and referred to Committee on Transportation and Homeland
  Security; April 2, 2009, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 7, Nays 2;
  April 2, 2009, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 855 By:  Carona
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to local options regarding mobility improvement projects
  in certain counties and municipalities; providing authority to
  impose a tax, issue bonds, and impose penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 14, Local Government Code, is
  amended by adding Chapter 446 to read as follows:
  CHAPTER 446. LOCAL OPTIONS FOR TRANSPORTATION PROJECTS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 446.001.  SHORT TITLE.  This chapter may be cited as the
  Texas Local Option Transportation Act.
         Sec. 446.002.  DEFINITIONS. In this chapter:
               (1)  "Dealer," "diesel fuel," "gasoline," "motor
  fuel," "motor vehicle," "public highway," and "sale" have the
  meanings assigned by Section 162.001, Tax Code.
               (2)  "Department" means the Texas Department of
  Transportation.
               (3)  "Intermodal hub" and "transit system" have the
  meanings assigned by Section 370.003, Transportation Code.
               (4)  "Metropolitan planning organization" has the
  meaning assigned by Section 472.031, Transportation Code.
               (5)  "Mobility improvement project" means a capital
  improvement or set of related capital improvements within a
  geographic area, including maintenance and operation of such
  improvements, that is designed to relieve traffic congestion,
  increase mobility and the movement of traffic or individuals,
  expand transportation capacity, promote traffic or pedestrian
  safety, or improve air quality, including passenger rail systems
  and related infrastructure; freight rail systems; transit systems;
  intermodal hubs; pedestrian facilities; streets, roadways,
  highways, and additional roadway or highway lanes, including
  turning lanes and managed or high occupancy vehicle lanes; and
  bridges, tunnels, interchanges, overpasses and underpasses,
  service roads, ramps, entrance plazas, parking areas or structures,
  and traffic signal systems.
               (6)  "Transit authority" or "transportation authority"
  means an authority operating under Chapter 370, 451, 452, or 460,
  Transportation Code.
         Sec. 446.003.  REDUCTION PROHIBITED.  (a)  A county,
  municipality, or metropolitan planning organization may not be
  penalized with a reduction in state or federal transportation
  funding, including funding from the state highway fund, the Texas
  mobility fund, the Texas highway beautification fund, general
  obligation bonds, or any other method of state or federal
  transportation financing, because of the imposition of a method of
  local option funding under this chapter.
         (b)  The department may not reduce any allocation of state or
  federal transportation funding to a department district because the
  district contains a county that imposes a method of local option
  funding under this chapter.
         (c)  A county, municipality, or other entity funding
  transportation in a county may not reduce traditional
  transportation funding because the county imposes a method of local
  option funding under this chapter.
         Sec. 446.004.  APPLICABILITY OF PROVISIONS.  The provisions
  of this subchapter and Subchapter B only apply to a county to which
  another subchapter of this chapter applies.
         Sec. 446.005.  RESTRICTIONS ON LOBBYING.  A county that
  imposes a method of local option funding under this chapter may not
  use the funds to pay a person or entity that is required to register
  with the Texas Ethics Commission under Chapter 305, Government
  Code.
         Sec. 446.006.  LIBERAL CONSTRUCTION. This chapter shall be
  liberally construed to effect its purposes.
         Sec. 446.007.  EXPIRATION OF CHAPTER. (a)  This chapter
  expires January 1, 2019.  The expiration of this chapter precludes
  the holding of elections and the imposition of any method of local
  option funding not authorized under this chapter before its
  expiration.
         (b)  The expiration of this chapter does not affect:
               (1)  the enforcement of bonds, obligations, covenants,
  or other legal instrument issued or executed under this chapter
  before its expiration;
               (2)  the continued imposition and collection of any
  fees or methods of local option funding authorized at an election
  held under this chapter before its expiration;
               (3)  the performance of any mobility improvement
  project, including maintenance and operation of a project; or
               (4)  the administration of a local option
  transportation fund established under Section 446.110 or a similar
  fund created by a county for money raised by a method of local
  option funding under this chapter.
  [Sections 446.008-446.050 reserved for expansion]
  SUBCHAPTER B.  LOCAL OPTION FUNDING
         Sec. 446.051.  METHODS OF LOCAL OPTION FUNDING.  (a)  A
  county may include on a ballot proposition under this chapter any
  combination of the following methods of local option funding:
               (1)  a tax on the retail sale of gasoline or diesel fuel
  in the county as described by Section 446.055;
               (2)  a mobility improvement fee, in an amount not less
  than $1 or more than $60, imposed on a person registering a motor
  vehicle in the county at the time of registration, except that the
  fee is not imposed on a person registering a motor vehicle in the
  manner provided by Section 501.0234, Transportation Code;
               (3)  a parking management fee, in an amount not to
  exceed $2 per day per vehicle use of a parking space, for paid
  parking facilities owned by the county or a municipality in the
  county that are available to the general public, excluding metered
  parking and parking at an international airport located partially
  in two separate counties each with a population above one million;
               (4)  an annual motor vehicle emissions fee on vehicles
  registered in the county as described by Section 446.056;
               (5)  a fee for the renewal of a driver's license issued
  to a county resident as described by Section 446.057; and
               (6)  a Texas new resident roadway impact fee, in an
  amount not less than $1 or more than $250, imposed on each person
  registering a motor vehicle previously registered in another state
  or country, to be collected at the time of registration.
         (b)  The mobility improvement fee authorized by Subsection
  (a)(2) and the Texas new resident roadway impact fee authorized by
  Subsection (a)(6) are not automobile registration fees and may not
  be construed as automobile registration fees for any legal or
  constitutional purpose.
         (c)  Chapter 395 does not apply to the Texas new resident
  roadway impact fee authorized by Subsection (a)(6).
         (d)  Except as otherwise provided by this subchapter, a
  county shall adopt rules and prescribe forms for the collection of a
  tax or fee authorized by this section. A person required to collect
  a tax or fee authorized by this section shall report and send the
  tax or fee to the county as provided by the county.
         (e)  A county imposing a tax or fee under this section may
  prescribe monetary penalties, including interest charges, for
  failure to keep records required by rules adopted under this
  section, failure to report when required, or failure to pay the tax
  when due.
         (f)  A county attorney, criminal district attorney, or
  district attorney may bring suit against a person to enforce the
  provisions of this section.
         Sec. 446.052.  COUNTY AUTHORITY TO IMPOSE METHOD OF FUNDING.  
  (a)  A county may impose and collect a method of local option
  funding approved by a majority of the voters of the county voting at
  an election held under this chapter and may enter into a contract or
  interlocal agreement as provided by Section 446.058 to implement
  the imposition or collection.
         (b)  A method of local option funding implemented under this
  chapter:
               (1)  may not be used to raise funds in excess of the
  amount required to fund approved mobility improvement projects; and
               (2)  must expire when the approved mobility improvement
  projects are accepted by the governmental entity that contracted
  for the projects or when the bonds are paid off, whichever is later,
  unless continued funding for maintenance and operation of a
  project, including the impact to an existing system as specified by
  an interlocal agreement, was authorized at an election held under
  this chapter.
         Sec. 446.053.  LOW-INCOME RELIEF. (a)  For each method of
  local option funding implemented by a county under this chapter,
  except a motor fuel tax or parking management fee, the county
  commissioners court shall, by an order issued before January 10,
  2010, establish an exemption, waiver, or partial reduction for
  individuals of low or moderate income who demonstrate significant
  financial hardship, based on income guidelines adopted by the Texas
  Commission on Environmental Quality under Section 382.210, Health
  and Safety Code. Before issuing an order under this section, the
  commissioners court must hold a public hearing regarding the
  proposed exemption, waiver, or partial reduction.
         (b)  The commissioners court shall qualify for the
  exemption, waiver, or partial reduction established under this
  section any person who is eligible to participate in the income
  vehicle repair assistance, retrofit, and accelerated vehicle
  retirement program authorized under Chapter 382, Health and Safety
  Code.
         Sec. 446.054.  IMPOSITION OF METHOD OF LOCAL OPTION FUNDING.
  (a)  If a majority of the votes cast in an election held in a county
  under this chapter approve any method or combination of methods of
  local option funding, the commissioners court of the county by
  order shall, except in regard to a motor fuel tax, impose and begin
  the collection of the approved method or methods of funding before
  the 91st day after the election date.
         (b)  At a minimum, the order imposing the method or methods
  of local option funding must specify:
               (1)  the rate or amount of the method or methods
  approved at the election; and
               (2)  the manner in which each method will be
  administered, collected, and enforced.
         (c)  Sections 502.102, 502.1025, and 502.108, Transportation
  Code, do not apply to money collected under this chapter.
         Sec. 446.055.  IMPOSITION OF COUNTY MOTOR FUEL TAX.  (a)  A
  county to which this chapter applies may, if approved in accordance
  with other provisions of this chapter, impose a tax at a rate of 2,
  4, 6, 8, or 10 cents per gallon on the retail sale of gasoline or
  diesel fuel that is sold in the county by a person, including a
  dealer, engaged in the business of making retail sales of taxable
  motor fuel and that is used to propel a motor vehicle on the public
  highways of this state. The tax is added to the selling price of the
  gasoline or diesel fuel and 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 fuel charge for gasoline or diesel fuel.
         (b)  The tax authorized by this section is in addition to the
  tax imposed by Chapter 162, Tax Code.
         (c)  Except as provided by Subsection (d), the tax authorized
  by this section takes effect on the first day of the first calendar
  quarter following the expiration of the first complete quarter
  occurring after the date of election authorizing the order imposing
  the tax under Section 446.054.
         (d)  If the county determines that the time of effect
  required by Subsection (c) will occur before the county can
  reasonably take the action required to begin collecting the tax or
  to implement an increase, decrease, or abolition of the tax, the
  county may delay the time of effect until the first day of the first
  calendar quarter following the date on which the county by official
  action declares that it is ready to begin collecting the tax.
         (e)  A county motor fuel tax imposed under this section is
  due and payable to the county on or before the 20th day of the month
  following the end of each calendar month.
         (f)  The comptroller shall adopt rules and prescribe forms
  for the collection of the county motor fuel tax imposed under this
  section.  A person required to collect the tax imposed under this
  section, including a dealer, shall report and send the taxes to the
  county as provided by the county using forms prescribed by the
  comptroller.  A county may not require any additional information
  beyond that required by the forms prescribed by the comptroller.
         (g)  A county imposing a tax under this section may:
               (1)  require a dealer or other person required to
  collect the tax to obtain a permit from the county;
               (2)  prescribe monetary penalties, including interest
  charges, for failure to keep records required by rules adopted
  under this section, failure to report when required, or failure to
  pay the tax when due; and
               (3)  permit a dealer or other person who is required to
  collect the tax and who remains in compliance with all tax payment
  and report filing requirements to retain a percentage of the tax as
  reimbursement to the person for the costs of collecting the tax.
         (h)  A county attorney, criminal district attorney, or
  district attorney may bring suit against a person who violates this
  section.
         (i)  A tax imposed under this section does not apply to motor
  fuel exempted under Section 162.104 or 162.204, Tax Code.  A person
  who has paid a tax imposed under this section 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 used for an exempt
  purpose may file a claim for a refund.  The county shall prescribe
  the procedures a person must use to obtain a refund under this
  section.
         (j)  To the extent of any conflict between this section and
  Chapter 162, Tax Code, Chapter 162 controls.
         Sec. 446.056.  IMPOSITION OF ANNUAL MOTOR VEHICLE EMISSIONS
  FEE. (a)  A county to which this chapter applies may, if approved
  in accordance with other provisions of this chapter, impose on the
  owner of a vehicle registered in the county an annual motor vehicle
  emissions fee in an amount not less than $1 or more than $15,
  assessed at the time of a required emissions test administered
  under the program described by 30 T.A.C. Section 114.50.
         (b)  Each emissions inspection station required to conduct
  an emissions test in accordance with 30 T.A.C. Section
  114.50(a)(1)(A) or (B) shall collect the fee from the owner of any
  vehicle registered in a county imposing a fee described by
  Subsection (a) and shall remit the fee to that county.
         Sec. 446.057.  IMPOSITION OF COUNTY DRIVER'S LICENSE FEE.  
  (a)  In this section, "driver's license" and "license" have the
  meanings assigned by Section 521.001, Transportation Code.
         (b)  A county to which this chapter applies may, if approved
  in accordance with other provisions of this chapter, impose a fee on
  the renewal by a county resident of a license under Chapter 521,
  Transportation Code, in an amount not less than $1 or more than the
  license renewal fee under Section 521.421, Transportation Code. A
  fee imposed under this section is in addition to the fee imposed
  under Section 521.421, Transportation Code.
         (c)  A fee imposed by a county under this section shall be
  collected by the Department of Public Safety and deposited in trust
  in the separate suspense account of the county from which the fees
  were collected for allocation to the county as provided by this
  section.
         (d)  Each month, the comptroller shall send to the county
  treasurer or to the person who performs the office of the county
  treasurer the county's share of the fees payable to a municipality
  within the county collected by the Department of Public Safety
  under this section.
         (e)  The comptroller may retain in the suspense account of a
  county a portion of the municipality's share of the fees collected
  for the municipality under this section, not to exceed two percent
  of the amount remitted to the county.  If the county has abolished
  the fee, the amount that may be retained may not exceed two percent
  of the final remittance to the county at the time of the termination
  of the collection of the fee.
         (f)  From the amounts retained in a county's suspense
  account, the comptroller may redeem dishonored checks and drafts
  deposited to the credit of the account.
         (g)  Before the expiration of one year after the effective
  date of the abolition of a county driver's license fee imposed under
  this section, the comptroller shall send to the county the
  remainder of the money in the county's suspense account and shall
  close the account.
         (h)  Interest earned on all deposits made under this section,
  including interest earned from retained suspense accounts, shall be
  credited to the county's trust account and allocated to the county
  as described by this section.
         Sec. 446.058.  INTERLOCAL CONTRACTING AUTHORITY.  (a)  A
  political subdivision may contract or agree with another political
  subdivision to perform governmental functions and services in
  accordance with this chapter.
         (b)  A party to an interlocal contract may contract with an
  agency, as that term is defined by Section 771.002, Government
  Code.
         (c)  In this section, "interlocal contract" has the meaning
  assigned by Section 791.003, Government Code.
         Sec. 446.059.  ANNUAL REPORT AND AUDIT. (a)  On or before
  the 90th day following the end of the fiscal year of a county that
  imposes a method of local option funding under this chapter, the
  county commissioners court must submit a report to the executive
  director of the department and to the state auditor. The report
  must include:
               (1)  the amount and source of local option revenue
  collected in the county;
               (2)  the amount and purpose of expenditures related to
  mobility improvement projects; and
               (3)  a description of the progress made toward
  completion of mobility improvement projects.
         (b)  The county must publish the report required under
  Subsection (a) on the county's Internet website at the time the
  report is submitted to the department.
         (c)  Based on a risk assessment process in accordance with
  Chapter 321, Government Code, the financial transactions of a
  county regarding methods of local option funding implemented under
  this chapter and related mobility improvement projects are subject
  to audit by the state auditor.  A county audited under this
  subsection shall reimburse the state auditor for the expense of the
  audit.
  [Sections 446.060-446.100 reserved for expansion]
  SUBCHAPTER C. NORTH TEXAS REGION
         Sec. 446.101.  APPLICABILITY OF SUBCHAPTER. This subchapter
  applies only to a county that is located in a region served by a
  metropolitan planning organization that serves two adjacent
  counties that each have a population of one million or more.
         Sec. 446.102.  PROJECT SELECTION AND BALLOT COMMITTEES.
  (a)  Not later than October 1, 2009, the county commissioners of
  each county to which this subchapter applies shall jointly
  establish with the municipalities in the county a project selection
  and ballot committee to prepare a ballot proposition and related
  plans and information as required under this chapter. A county's
  project selection and ballot committee must be established before
  any local option election under this subchapter may be held in the
  county. If a county commissioners court does not wish to initiate
  the election process in the county, it shall, by an order issued not
  later than October 1, 2009, decline to establish a project
  selection and ballot committee.
         (b)  If a county commissioners court declines to establish a
  project selection and ballot committee for the county, the
  governing bodies of two or more cities that contain at least 60
  percent of the county's total population may, by a joint resolution
  passed not later than November 1, 2009, establish a joint project
  selection and ballot committee.
         Sec. 446.103.  COMMITTEE MEMBERSHIP.  (a)  Except as
  provided by Subsection (a-1), in a county with a population greater
  than 400,000, the project selection and ballot committee is
  composed of 11 members as follows:
               (1)  two members who are elected county officials,
  appointed by the county commissioners court;
               (2)  one member who is a member of the governing body of
  a municipality not otherwise entitled to a seat under Subdivision
  (4) or (5) with a population of 25,000 or less located in the
  county, appointed by the county commissioners court;
               (3)  one member who is a member of the governing body of
  a municipality not otherwise entitled to a seat under Subdivision
  (4) or (5) with a population greater than 25,000 but less than
  95,000 located in the county, appointed by the county commissioners
  court;
               (4)  two members who are elected officials of the most
  populous municipality located in the county, appointed by the
  governing body of the municipality;
               (5)  four members who are elected officials of the next
  four most populous municipalities located in the county, one each
  appointed by the governing body of each municipality; and
               (6)  one member who is a member of the governing board
  of the transit or transportation authority with the largest service
  area in the county, appointed by the governing body of the
  authority.
         (a-1)  In a county with a population greater than 400,000, if
  the most populous municipality located in the county contains 45
  percent or more of the county population, the county’s project
  selection and ballot committee is composed of 11 members as
  follows:
               (1)  two members who are elected county officials,
  appointed by the county commissioners court;
               (2)  one member who is a member of the governing body of
  a municipality not otherwise entitled to a seat under Subdivision
  (4) or (5) with a population of 25,000 or less located in the
  county, appointed by the county commissioners court;
               (3)  one member who is a member of the governing body of
  a municipality not otherwise entitled to a seat under Subdivision
  (4) or (5) with a population greater than 25,000 but less than
  95,000 located in the county, appointed by the county commissioners
  court;
               (4)  three members who are elected officials of the
  most populous municipality located in the county, appointed by the
  governing body of the municipality;
               (5)  three members who are elected officials of the
  next three most populous municipalities located in the county, one
  each appointed by the governing body of each municipality; and
               (6)  one member who is a member of the governing board
  of the transit or transportation authority with the largest service
  area in the county, appointed by the governing body of the
  authority.
         (b)  In a county with a population of 400,000 or less, the
  project selection and ballot committee is composed of nine members
  as follows:
               (1)  two members who are elected county officials,
  appointed by the county commissioners court;
               (2)  two members who are elected officials of the most
  populous municipality located in the county, appointed by the
  governing body of the municipality;
               (3)  four members who are elected officials of the next
  four most populous municipalities located in the county, one each
  appointed by the governing body of each municipality; and
               (4)  one member:
                     (A)  who is a member of the governing board of a
  transit or transportation authority operating in the county,
  appointed by the governing body of the authority; or
                     (B)  if no transit or transportation authority
  operates in the county, who is an elected official of the sixth most
  populous municipality in the county, appointed by the governing
  body of the municipality.
         (c)  If a county commissioners court fails to make a
  committee appointment as provided under Subsection (a)(1),
  (a-1)(1), or (b)(1) by the required date, the open seat shall remain
  unfilled. If a county commissioners court fails to make a committee
  appointment as provided under Subsection (a)(2) or (3) or
  Subsection (a-1)(2) or (3) by the required date, the open seat shall
  be filled by appointment made by the governing body of the largest
  municipality in the county. In the case of an open seat provided
  for by Subsection (a)(2) or (a-1)(2) the seat shall be filled from
  among the members of the governing body of a municipality with a
  population of 25,000 or less located in the county. In the case of
  an open seat provided for by Subsection (a)(3) or (a-1)(3) the seat
  shall be filled from among the members of the governing body of a
  municipality with a population greater than 25,000 but less than
  95,000 located in the county.
         (d)  Only the portion of a municipality's population that is
  located within the county may be used to determine municipal
  population for the purposes of Subsections (a)(5), (a-1)(5),
  (b)(3), and (b)(4)(B).  For the purposes of this subsection,
  municipal population is based on the most recent estimate published
  by the metropolitan planning organization of the region.
         (e)  A vacancy in a committee shall be filled by appointment
  by the entity that appointed the vacating member.
         (f)  A committee member is not entitled to compensation for
  serving on the committee but is entitled to reimbursement for
  actual and necessary expenses incurred in performing the official
  duties of office.
         (g)  Appointments to a committee shall be made without regard
  to the race, color, disability, sex, religion, age, or national
  origin of the appointees.
         (h)  A committee must elect a chair from among its members
  and may adopt rules for the conduct of its activities.
         (i)  At the discretion of the committee, employees of the
  department, the county, or a municipality, regional metropolitan
  planning organization, airport, or transit or transportation
  authority located in the county may be asked to provide staff
  support services to a committee.
         (j)  All meetings of a committee are open meetings. Notice
  of committee meetings must be provided in accordance with Sections
  551.041, 551.0411, 551.042, 551.043, and 551.049, Government Code,
  as if the committee were a governmental body under that chapter.
         (k)  A project selection and ballot committee established
  under this subchapter is abolished, and all the duties of the
  committee expire, on the date the committee submits a final
  recommended ballot under Section 446.106.
         Sec. 446.104.  SELECTION OF PROJECTS AND METHODS OF LOCAL
  OPTION FUNDING.  (a)  A project selection and ballot committee, by
  supermajority vote of not less than two-thirds of its membership,
  shall:
               (1)  determine and propose each mobility improvement
  project located in the county or benefiting the county;
               (2)  determine and propose one or more methods of local
  option funding authorized by this chapter sufficient to fund each
  mobility improvement project; and
               (3)  determine and propose an appropriate rate for each
  proposed method of local option funding for the construction of
  each mobility improvement project and a separate proposed rate for
  each project's continued maintenance and operation, if applicable.
         (b)  A committee may propose, and money raised by a method of
  local option funding under this chapter may finance, the
  construction of new mobility improvement projects and related
  maintenance and operations, the expansion, reconstruction, or
  rehabilitation of existing mobility improvement projects, and
  improvements in the maintenance and operation of existing mobility
  improvement projects. A committee may only propose construction of
  a new mobility improvement project that the committee determines is
  consistent with the transportation plan adopted by the metropolitan
  planning organization for the region in which the county is
  located.  A committee shall consider passenger rail corridors in
  selecting projects to be included on a ballot.
         (c)  A committee may propose a mobility improvement project
  located outside the county, including a project serving a regional
  airport, only if the committee determines that the project benefits
  the county.
         (d)  Before a committee may make the determinations required
  by Subsections (a)-(c), the committee must:
               (1)  conduct at least three public hearings regarding
  the proposed mobility improvement projects and proposed methods of
  local option funding; and
               (2)  use its best efforts to meet with all affected
  parties, including workforce populations served by passenger rail
  systems and affected neighborhood groups.
         Sec. 446.105.  COMMITTEE COMMITMENT TO EQUITY. (a)  A
  committee must use its best efforts to ensure that mobility
  improvement projects selected for inclusion on a ballot under this
  subchapter benefit each municipality and unincorporated area in the
  county in approximate proportion to the amount of revenue generated
  within each of the municipalities and unincorporated areas.
         (b)  Revenue from a method of local option funding imposed
  under this subchapter and collected within the taxing jurisdiction
  of a transit or transportation authority that is funded through a
  dedicated sales tax must be maintained in a segregated account and
  may not be used outside the taxing jurisdiction of the authority
  unless the governing body of the authority and the governing bodies
  of all municipalities in the county that are within the authority's
  jurisdiction consent to such use.
         Sec. 446.106.  FINAL RECOMMENDED BALLOT.  Not later than
  April 1, 2010, each project selection and ballot committee must
  submit to the appropriate county commissioners court:
               (1)  a detailed final list of mobility improvement
  projects and methods of local option funding, including proposed
  rates for construction and separate proposed rates for maintenance
  and operation, if applicable, determined by the committee under
  Section 446.104; and
               (2)  a final recommended ballot that complies with the
  requirements of Section 446.108.
         Sec. 446.107.  COUNTY OPTION TO CALL ELECTION; PETITION
  PROCESS. (a)  On receiving a proposed ballot from a project
  selection and ballot committee under Section 446.106, the county
  commissioners court, after holding at least two public hearings
  regarding the ballot, may by majority vote at a regularly held
  public meeting of the commissioners court:
               (1)  order an election to be held on the uniform
  election date in November 2010 on the issue of authorizing the
  ballot; or
               (2)  reject the ballot.
         (b)  If, by June 1, 2010, a county commissioners court has
  not taken action under Subsection (a)(1) or (2) on a proposed ballot
  submitted to the commissioners court, the commissioners court must
  order an election to be held on the uniform election date in
  November 2010 on the issue of authorizing the ballot.
         (c)  If a county commissioners court rejects a proposed
  ballot under Subsection (a)(2), the commissioners court must
  nonetheless call an election to be held on the uniform election date
  in November 2010 on the issue of authorizing the ballot if before
  August 1, 2010, the commissioners court receives:
               (1)  a resolution requesting that the election be
  called on the ballot as submitted by the project selection and
  ballot committee that has been adopted by the governing bodies of at
  least two municipalities that:
                     (A)  are located partially or wholly in the
  county; and
                     (B)  contain at least 60 percent of the county's
  total population; or
               (2)  a petition requesting that the election be called
  on the ballot as submitted by the project selection and ballot
  committee that is signed by a number of registered voters in the
  county equal to at least 10 percent of the total number of votes
  cast in the county for all candidates for governor in the most
  recent gubernatorial general election.
         (d)  A county commissioners court may not amend in any way
  the list of mobility improvement projects or methods of local
  option funding contained in a proposed ballot submitted to the
  commissioners court by a project selection and ballot committee.
         (e)  Before calling an election under this section, a county
  commissioners court must publish a financial plan for each mobility
  improvement project proposed to be included on a ballot.
         Sec. 446.108.  REQUIRED BALLOT LANGUAGE; ELECTION. (a)  An
  order under Section 446.107 calling an election must:
               (1)  specify each proposed method of local option
  funding authorized by this chapter that the county intends to use to
  fund each proposed mobility improvement project or portion thereof;
               (2)  for each specified method of funding, list the
  proposed rate or amount to be used to fund capital construction of
  mobility improvement projects and, if applicable, a separate and
  corresponding proposed rate or amount for maintenance and operation
  of the projects;
               (3)  list and generally describe the nature and scope
  of the proposed mobility improvement projects to be constructed
  with each specified method of local option funding; and
               (4)  list the estimated cost, or portion thereof, and
  the estimated completion date for the capital construction of each
  proposed mobility improvement project.
         (b)  The ballot at an election held under this subchapter
  must be printed to permit voting for or against the proposition:
  "Authorizing ________ (insert name of county) to undertake the
  following mobility improvement projects funded by the following
  sources of revenue in amounts and rates as shown:_______ (insert a
  general and brief description of each mobility improvement project
  proposed by the committee, an estimated total cost of each project,
  a description of each method of funding proposed, including a rate
  for capital construction and, if applicable, a separate rate for
  maintenance and operation, the estimated date of expiration of any
  bonds, and the estimated date the project will be operational to the
  public)."
         (c)  The estimated cost of construction of a mobility
  improvement project listed on a ballot is not a legally binding
  restriction on the actual and ultimate cost of financing the
  project.
         (d)  A ballot may not permit individual mobility improvement
  projects or methods of local option funding to be voted on as
  separate options. All mobility improvement projects and methods of
  local option funding included on a ballot must be approved or
  rejected as a group.
         (e)  In addition to other applicable ballot requirements, a
  ballot proposed in a county primarily served by a transit authority
  subject to Subchapter O, Chapter 452, Transportation Code, that
  proposes to use funds collected within the jurisdiction of the
  authority to finance the construction of a mobility improvement
  project related to a rail project located outside of the
  jurisdiction of the authority must specify, in regard to each such
  proposed project:
               (1)  a general description of the proposed rail-related
  project;
               (2)  a list of estimated costs of the proposed project,
  including maintenance and operating costs;
               (3)  an estimate of any increased cost of service
  within the jurisdiction of the authority resulting from the
  proposed project; and
               (4)  a limit on the amount of revenue raised through
  local option funding under this chapter that may be spent on the
  project.
         (f)  Section 334.025 applies to an election called under this
  subchapter.
         (g)  An election called under Section 446.107 must be held on
  a uniform election date in November.
         Sec. 446.109.  SUBSEQUENT ELECTIONS. (a)  After initial
  mobility improvement projects and methods of local option funding
  are determined and an initial election is called in a county under
  Sections 446.104-446.108, the county commissioners court may
  jointly establish with the municipalities in the county a
  subsequent project selection and ballot committee to determine and
  propose additional projects and funding, and additional elections
  may be called, using the procedures described by this subchapter.
         (b)  Notwithstanding Section 446.107, the commissioners
  court of a county may not call an election under that section before
  the second anniversary of an election previously called under that
  section.
         Sec. 446.110.  LOCAL OPTION TRANSPORTATION FUND. (a)  The
  county commissioners court of each county which implements a method
  of local option funding under this chapter shall, by order,
  establish a local option transportation fund separate and apart
  from the county's general fund account.
         (b)  The county shall deposit in the fund the proceeds of any
  method of local option funding implemented by the county under this
  chapter and any other money required by law to be deposited in the
  fund.
         (c)  The county shall establish segregated accounts in the
  fund:
               (1)  for each approved mobility improvement project or
  portion thereof;
               (2)  for money to fund maintenance and operation of
  passenger rail projects or transit projects; and
               (3)  for funds collected in the jurisdiction of a
  transit or transportation authority that is funded through a
  dedicated sales tax and that operates under Subchapter O, Chapter
  452, or Chapter 460, Transportation Code.
         (d)  Money in the fund, including any interest earned, is the
  property of the county depositing the money and may be spent only on
  mobility improvement projects located in the county.
         Sec. 446.111.  USE OF MONEY IN FUND; ISSUANCE OF BONDS.  
  (a)  A county may use money in its local option transportation fund
  to:
               (1)  reimburse or pay, without issuing bonds or other
  obligations or otherwise creating debt, the costs of planning,
  acquiring, establishing, developing, constructing, or renovating
  mobility improvement projects in the county that were approved at
  an election under this subchapter;
               (2)  pay the principal of, interest on, or other costs
  relating to bonds or other obligations the county issues for the
  purpose of financing mobility improvement projects in the county
  that were approved at an election under this subchapter;
               (3)  pay amounts due and owing to a transit or
  transportation authority under a contract or interlocal agreement
  between the county and the authority under which the authority
  agrees to provide, develop, construct, install, and operate
  passenger rail facilities and services inside and outside the
  county and to issue bonds and other obligations that are secured by
  and payable from the amounts due from the county under the contract
  or interlocal agreement for the purpose of financing the capital
  costs of the facilities, if a method of local option funding was
  approved for such purpose at an election under this subchapter;
               (4)  pay amounts due and owing to a municipality under a
  contract or interlocal agreement between the county and the
  municipality under which the municipality agrees to provide,
  develop, or construct mobility improvement projects located inside
  the municipality; and
               (5)  reimburse or pay the actual and customary costs of
  financial administration of the fund.
         (b)  A contract or interlocal agreement entered into between
  a county and a transit or transportation authority for the purposes
  described by Subsection (a)(3) may have such terms and provisions,
  and may impose and contain requirements, grants, and limitations,
  as the county and the transit or transportation authority may
  mutually agree, including the power of the transit or
  transportation authority to pledge as security for its bonds all
  amounts, less agreed costs of collection, deposited to the county's
  local option transportation fund, if such a pledge was approved at
  an election under this subchapter.
         (c)  Bonds or other obligations issued by a county under this
  section may be made payable from money in the county's local option
  transportation fund, subject to any limitations contained in a
  contract or interlocal agreement between the county and a transit
  or transportation authority, and from any other sources of revenue
  of the county that are lawfully available.  Bonds or other
  obligations issued by a transit or transportation authority under a
  contract or interlocal agreement shall be payable from and secured
  by the money in the county's local option transportation fund and
  the revenue received from the operation of the passenger rail
  services financed by the bonds or other obligations and may not
  include any revenue the transit or transportation authority
  receives from a dedicated sales tax or the operation of any other
  passenger rail or bus system or related services.
         (d)  Bonds or other obligations issued by a county under this
  section or by a transit or transportation authority under a
  contract or interlocal agreement may mature serially or otherwise
  not more than 30 years after the date of issuance.
         (e)  Any bonds or other obligations issued by a county or by a
  transit or transportation authority under this section, and the
  proceedings authorizing the bonds or other obligations, must be
  submitted to the attorney general for review and approval under
  Chapter 1202, Government Code.
         (f)  A county, in expending money in its local option
  transportation fund, must comply with the provisions of Section
  446.105. A county may not:
               (1)  use money in the fund to finance the construction
  of a mobility improvement project not approved by the voters in an
  election under this subchapter; or
               (2)  use funds approved for a particular mobility
  improvement project to fund a different project.
         Sec. 446.112.  USE OF SALES TAX BY TRANSPORTATION AUTHORITY.
  A subregion of a transportation authority governed by a subregional
  board described by Subchapter O, Chapter 452, Transportation Code,
  may not use any proceeds from a sales and use tax imposed under that
  chapter, or any other revenue of the authority under that chapter,
  for a mobility improvement project under this subchapter without
  the favorable vote of four-fifths of the members of the subregional
  board.
         Sec. 446.113.  TRANSIT OR TRANSPORTATION AUTHORITY SERVICES
  NOT AUTHORIZED.  (a)  A county acting under this subchapter may not
  directly operate or provide passenger rail services or any service
  expressly reserved by a transit or transportation authority that
  serves the county.
         (b)  A method of local option funding implemented by a county
  under this subchapter may not be used to establish or fund services
  of a transit or transportation authority created on or after
  January 1, 2009.
         (c)  This subchapter does not authorize the creation of a
  transit or transportation authority.
  [Sections 446.114-446.150 reserved for expansion]
  SUBCHAPTER D. ALAMO REGION
         Sec. 446.151.  APPLICABILITY OF SUBCHAPTER.  This subchapter
  applies only to a county for which an advanced transportation
  district has been created under Subchapter O, Chapter 451,
  Transportation Code, and:
               (1)  for which no contiguous county has a population of
  more than 200,000; and
               (2)  in which the principal municipality has a
  population of more than 1.1 million.
         Sec. 446.152.  IMPOSITION OF METHOD OF LOCAL OPTION FUNDING
  BY VOTER APPROVAL. (a)  A county to which this subchapter applies
  may impose one or more methods of local option funding authorized by
  this subchapter if:
               (1)  the county receives a resolution requesting that
  an election be called on the issue of imposing one or more methods
  of local option funding authorized by this subchapter that has been
  adopted by the governing body of an advanced transportation
  district, as defined by Subchapter O, Chapter 451, Transportation
  Code, that is located wholly or partially in the county, or a
  successor to such district;
               (2)  the county by order calls an election to be held in
  the county for the purpose of approving the proposed methods of
  funding; and
               (3)  the imposition of the proposed methods of funding
  is approved by a majority of the voters of the county voting at the
  election.
         (b)  The governing body of an advanced transportation
  district described by Subsection (a)(1) may adopt a resolution
  requesting an election be called under this section only after:
               (1)  consulting with:
                     (A)  the entities described by Section 446.155(b)
  located in the county;
                     (B)  the metropolitan planning organization for
  the region in which the county is located; and
                     (C)  the oversight committee of the advanced
  transportation district; and
               (2)  holding a public hearing regarding imposition of
  the proposed methods of local option funding.
         (c)  A county may adopt an order calling an election under
  this section only after holding a public hearing regarding
  imposition of the proposed methods of local option funding.
         Sec. 446.153.  CONTENTS OF ORDER; BALLOT PROPOSITION.
  (a)  An order calling an election on the issue of imposing one or
  more methods of local option funding authorized by this subchapter
  must include the ballot proposition to be used in the election. The
  ballot proposition must, at a minimum:
               (1)  designate each proposed method of funding;
               (2)  specify for each proposed method of funding:
                     (A)  the rate of the tax or amount the fee to be
  imposed, as applicable;
                     (B)  the effective date of the imposition of the
  method of funding; and
                     (C)  the manner in which the method of funding
  will be administered, collected, and enforced; and
               (3)  permit voters to vote for or against each proposed
  method of funding separately.
         (b)  The ballot proposition may:
               (1)  specify one or more mobility improvement projects
  to which revenue from a proposed method of local option funding will
  be dedicated; and
               (2)  provide that a method of local option funding
  approved at the election will expire on completion of the mobility
  improvement projects to which the funding is dedicated.
         Sec. 446.154.  ABOLITION OF METHOD OF FUNDING; CHANGE IN
  RATE OR AMOUNT; CHANGE IN DEDICATION. (a)  With regard to methods
  of local option funding previously approved at an election held
  under this subchapter, a county commissioners court by order may
  call an election on the issue of:
               (1)  abolishing the methods of local option funding;
               (2)  increasing or decreasing the maximum rate or
  amount of the methods of local option funding; or
               (3)  changing the dedication of the methods of local
  option funding.
         (b)  A county commissioners court shall call an election
  under Subsection (a) if the commissioners court receives a petition
  requesting that the election be called that is signed by a number of
  registered voters in the county equal to at least 10 percent of the
  total number of votes cast in the county for all candidates for
  governor in the most recent gubernatorial general election.
         (c)  Notwithstanding any other provision of this section, a
  county may abolish, decrease the rate of, or change the dedication
  of a method of local option funding only if the abolition, decrease,
  or change will not violate, impair, or be inconsistent with a bond
  resolution, trust agreement, or indenture governing the use of the
  revenue attributable to the method of funding.
         Sec. 446.155.  USE OF REVENUE; USE BY OTHER TRANSPORTATION
  ENTITY. (a)  A county shall deposit money raised by a method of
  local option funding imposed under this subchapter in a special
  account in the county general fund. Subject to any applicable
  constitutional restriction, money in the account may be used only
  for county transportation purposes.
         (b)  A county may use money raised by a method of local option
  funding imposed under this subchapter to make payments due under a
  contract entered into between the county and another governmental
  entity for the construction, maintenance, or operation of mobility
  improvement projects, including contracts entered into with:
               (1)  a regional mobility authority;
               (2)  a regional tollway authority;
               (3)  an advanced transportation district;
               (4)  a metropolitan rapid transit authority;
               (5)  a regional transportation authority; and
               (6)  any successor entity to an authority or district
  described by Subdivisions (1)-(5).
         (c)  A county may contract with another governmental entity
  under Subsection (b) only if the county finds that the primary
  purpose of the contract is to promote a public purpose of the
  county.
         Sec. 446.156.  AUTHORIZED METHODS OF LOCAL OPTION FUNDING.
  (a)  Except as provided by Subsection (b)(2), Sections 446.051,
  446.054, 446.055, 446.056, and 446.057 do not apply to a county
  acting under this subchapter.
         (b)  A county to which this subchapter applies may include on
  a ballot proposition under this subchapter any combination of the
  following methods of local option funding:
               (1)  a county gasoline and diesel fuel tax as described
  by Section 446.157;
               (2)  an additional vehicle registration fee as
  described by Section 446.158 and implemented in the manner
  described by Section 446.051(a)(2);
               (3)  a road impact fee, not to exceed $100, on each new
  resident of the county;
               (4)  a non-resident commuter fee on residents who
  commute into the county; or
               (5)  an additional motor vehicle inspection fee, not to
  exceed $10, on each motor vehicle inspected in the county under
  Chapter 548, Transportation Code.
         (c)  Chapter 395 does not apply to the road impact fee
  authorized by Subsection (b)(3).
         Sec. 446.157.  COUNTY GASOLINE AND DIESEL FUEL TAX. (a)  In
  this section:
               (1)  "Jobber" means a person who:
                     (A)  purchases tax-paid gasoline or diesel fuel
  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 gasoline or diesel fuel and
  uses all or part of the stored gasoline or diesel fuel to operate a
  motor vehicle.
               (2)  "Net gallon" has the meaning assigned by Section
  162.001, Tax Code.
         (b)  A county to which this subchapter applies may, if
  approved in accordance with other provisions of this subchapter,
  impose a tax on the sale of gasoline or diesel fuel sold in the
  county to propel a motor vehicle on the public highways of this
  state.
         (c)  The tax authorized by this section may be imposed at a
  rate of 2, 4, 6, 8, or 10 cents for each net gallon of gasoline or
  diesel fuel sold in the county to propel a motor vehicle on the
  public highways of this state.
         (d)  A person, including a dealer or jobber, who makes a sale
  of gasoline or diesel fuel in the county 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
  section for the benefit of the county. The seller shall add the
  amount of the tax 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 fuel charge for gasoline or diesel fuel.
         (e)  The tax authorized by this section is in addition to the
  tax imposed by Chapter 162, Tax Code.
         (f)  The exemptions provided by Sections 162.104 and
  162.204, Tax Code, apply to the tax authorized by this section.
         (g)  A person, including a dealer or jobber, required to
  collect the tax authorized by this section shall report and send the
  taxes to the county as provided by the county.
         (h)  The county may prescribe monetary penalties, including
  interest charges, for failure to keep records required by this
  section, to report when required, or to pay the tax when due.
         (i)  The county may permit a person who is required to
  collect the tax authorized by this section 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 county may
  provide that the person may retain the amount only if the person
  pays the tax and files reports as required by the county.
         (j)  The county attorney may bring suit against a person who
  violates this section.
         (k)  A person who has paid the tax authorized by this section
  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 Subsection (f) may file a claim for a
  refund.
         (l)  The county shall prescribe the procedures a person must
  use to obtain a refund under this section.
         (m)  The county may require a dealer, jobber, or other person
  required to collect, report, and pay the tax authorized by this
  section to obtain a permit from the county.
         Sec. 446.158.  ADDITIONAL VEHICLE REGISTRATION FEE. (a)  A
  county to which this subchapter applies, if approved in accordance
  with other provisions of this subchapter, may impose an additional
  fee, not to exceed $10, for registering a vehicle in the county.
         (b)  A vehicle that may be registered under Chapter 502 or
  504, Transportation Code, without payment of a registration fee may
  be registered in the county without payment of the additional fee.
         (c)  A fee authorized by this section may take effect only on
  January 1 of a year. The county must notify the department not
  later than September 1 of the year preceding the year in which the
  fee takes effect.
         (d)  A fee authorized by this section may be abolished under
  Section 446.154. The abolition may take effect only on January 1 of
  a year. A county must notify the department not later than
  September 1 of the year preceding the year in which the abolition
  takes effect.
         (e)  The county assessor-collector of a county imposing a fee
  authorized by this section shall collect the fee for a vehicle when
  other fees imposed under Chapter 502 or 504, Transportation Code,
  are collected.
         (f)  The department shall collect the additional fee on a
  vehicle that is owned by a resident of the county and that, under
  Chapter 502 or 504, Transportation Code, must be registered
  directly with the department. The department shall send all fees
  collected for a county under this section to the county for deposit
  as provided by Section 446.155.
         (g)  The department shall adopt rules and develop forms
  necessary to administer registration by mail for a vehicle being
  registered in the county or a vehicle that is owned by a resident of
  the county.
         Sec. 446.159.  ELECTION ON AD VALOREM TAX.  A county to which
  this subchapter applies may hold an election on the adoption of the
  additional ad valorem tax not to exceed 15 cents on the $100
  valuation of property provided by Subsection (c), Section 9,
  Article VIII, Texas Constitution, for transportation projects, if
  that subsection authorizes the use of the tax for those projects.
  [Sections 446.160-446.200 reserved for expansion]
  SUBCHAPTER E. CAPITAL REGION
         Sec. 446.201.  APPLICABILITY OF SUBCHAPTER. (a)  Except as
  provided by Subsection (b), this subchapter applies only to a
  county for which a regional mobility authority has been created
  under Chapter 370, Transportation Code, and in which the principal
  municipality:
               (1)  has a population of more than 650,000; and
               (2)  elects all members of its governing body at large.
         (b)  The county commissioners court of a county, except for
  the second most populous county served by the regional mobility
  authority described by Subsection (a), contiguous to a county
  described by Subsection (a) and served by the same metropolitan
  planning organization may, by resolution, order that this
  subchapter applies to the county.
         Sec. 446.202.  DEFINITIONS. In this subchapter:
               (1)  "Mobility improvement project" includes:
                     (A)  sidewalks; and
                     (B)  paths, lanes, ways, and trails for bicycling
  or hiking and facilities related to such paths, lanes, ways, and
  trails.
               (2)  "Transit authority" or "transportation authority"
  includes a county described by Section 446.201(a) and the county's
  principal municipality.
               (3)  "Principal municipality" means the municipality
  with the largest population in a county.
         Sec. 446.203.  CALLING OF ELECTION. (a)  The commissioners
  court of a county to which this subchapter applies by order may call
  an election on the issue of imposing one or more methods of local
  option funding authorized by this chapter to:
               (1)  acquire, construct, develop, own, operate, and
  maintain mobility improvement projects;
               (2)  fund operations, maintenance, capital, and debt
  service expenses for mobility improvement projects; or
               (3)  contract with a transportation authority or
  transportation provider for a purpose described by Subdivision (1)
  or (2).
         (b)  A county commissioners court and the principal
  municipality of the county may, by orders containing identical
  provisions, jointly call an election on the issue described by
  Subsection (a). The cost of an election called under this
  subsection is shared by the county and the principal municipality
  on a pro rata basis.
         (c)  A county commissioners court by order shall call an
  election on the issue described by Subsection (a) on receipt of a
  resolution requesting that the election be called that has been
  adopted by:
               (1)  the governing bodies of one or more municipalities
  representing more than 60 percent of the total population of the
  county; or
               (2)  the governing bodies of the principal municipality
  and the second most populous municipality located in the county.
         (d)  A resolution under Subsection (c) must be adopted by the
  governing body of each petitioning municipality by a vote of not
  less than two-thirds of its membership.
         (e)  A county commissioners court may order an election under
  this section on an issue described by Subsection (a) only after
  holding a public hearing regarding the issue.
         (f)  The governing body of the principal municipality of a
  county described by Section 446.201(a) may, by order adopted by a
  majority vote of its membership, call an election within the
  boundaries of the municipality on the issue described in Subsection
  (a), the results of which only apply within the boundaries of the
  municipality. The municipality may adopt the order only after
  holding a public hearing regarding the issue.
         (g)  A principal municipality ordering an election within
  the boundaries of the municipality under Subsection (f) has the
  powers and responsibilities granted to a county under Subchapter B
  within the boundaries of the municipality only.
         (h)  Before an election may be called under this section, the
  metropolitan planning organization for the region in which the
  county or municipality calling the election is located must certify
  by majority vote that the list of proposed mobility improvement
  projects included on the proposed ballot are consistent with the
  organization's current long-range transportation plan.
         (i)  An election called under this section may only be held
  on a uniform election date in November or May.
         (j)  An election under this subchapter may be called not more
  than 120 days prior to election day.
         (k)  Notwithstanding Subsections (a)-(f), if either the
  county commissioners court or the governing body of the principal
  municipality described by Subsection (f) calls for an election, the
  other entity may not call for an election under this subchapter
  until the next uniform election date.
         (l)  Notwithstanding Subsections (a)-(f) and (k), in the
  event a county commissioners court and the governing body of the
  principal municipality described by Subsection (f) call an election
  under this subchapter not more than 120 days prior to election day
  and not less than 110 days prior to election day:
               (1)  each election order is deemed invalid; and
               (2)  no additional election may be called under this
  subchapter until the next uniform election date.
         Sec. 446.204.  CONTENTS OF ORDER; BALLOT PROPOSITION.
  (a)  An order calling an election under Section 446.203 must
  include the ballot proposition to be used in the election. The
  ballot proposition must:
               (1)  list each proposed mobility improvement project to
  be funded;
               (2)  designate each proposed method of local option
  funding and the proposed rate or amount to be used to fund capital
  construction of each proposed mobility improvement project or group
  of projects and, if applicable, designate a separate and
  corresponding proposed rate or amount for the maintenance and
  operation of each proposed project or group of projects;
               (3)  state the estimated date or dates on which each
  proposed method of local option funding is expected to expire; and
               (4)  if applicable, list the estimated annual
  maintenance and operation expenses for each proposed mobility
  improvement project or group of projects for which a rate or amount
  is proposed under Subdivision (2).
         (b)  The ballot proposition for an election ordered under
  Section 446.203(c) must include the name of each municipality
  petitioning under that subsection.
         Sec. 446.205.  PROJECT SELECTION ADVISORY COMMITTEE.
  (a)  Before a county or municipality may order an election under
  Section 446.203 or a municipality may adopt a resolution under
  Section 446.203(c), the county or municipality must establish a
  project selection advisory committee to recommend mobility
  improvement projects and related methods of local option funding
  authorized by this chapter. The composition of an advisory
  committee is determined by the county or municipality that
  establishes the committee. A county and principal municipality
  acting jointly under Section 446.203(b) may establish and compose a
  joint committee. Two or more municipalities adopting a resolution
  under Section 446.203(c) may establish and compose a joint
  committee.
         (b)  Each project selection advisory committee shall:
               (1)  consult with:
                     (A)  the county or municipality that establishes
  the committee;
                     (B)  the metropolitan planning organization for
  the region in which the county is located;
                     (C)  the municipalities located in the county;
                     (D)  a regional mobility authority operating
  under Chapter 370, Transportation Code, that serves the county;
                     (E)  a transit or transportation authority
  created or operating under Subtitle K, Title 6, Transportation
  Code, that serves the county; and
                     (F)  a commuter rail district operating wholly or
  partially in the county;
               (2)  give first consideration to mobility improvement
  projects of regional significance that complement or supplement the
  regional transportation system; and
               (3)  consider the geographic location of other
  state-funded or federally funded transportation projects and
  mobility improvement projects so as to foster geographic equity in
  the planning and development of regional projects.
         Sec. 446.206.  SUBSEQUENT ELECTIONS. (a)  After initial
  mobility improvement projects and methods of local option funding
  are determined and an initial election is called under Sections
  446.203 and 446.204, a project selection advisory committee may
  determine and propose additional projects and funding, and
  additional elections may be called, using the procedures described
  by those sections.
         (b)  Notwithstanding Section 446.203, the commissioners
  court of a county or the governing body of a municipality may not
  call an election under this subchapter before the 11th month
  following an election previously called under this subchapter.
         Sec. 446.207.  TRANSIT OR TRANSPORTATION AUTHORITY SERVICES
  NOT AUTHORIZED. (a)  A county acting under this subchapter may not
  directly operate or provide passenger rail services or any service
  expressly reserved by a transit authority created or operating
  under Chapter 451, Transportation Code, that serves the county.
         (b)  This subchapter does not authorize the creation of a
  transit or transportation authority.
  [Sections 446.208-446.250 reserved for expansion]
  SUBCHAPTER F. WEST TEXAS BORDER REGION
         Sec. 446.251.  APPLICABILITY OF SUBCHAPTER. This subchapter
  applies only to a municipality that:
               (1)  has a population of more than 550,000;
               (2)  has created a regional mobility authority under
  Chapter 370, Transportation Code; and
               (3)  is located in a county that is adjacent to an
  international border.
         Sec. 446.252.  DEFINITIONS. In this subchapter:
               (1)  "Mobility improvement project" includes:
                     (A)  sidewalks; and
                     (B)  paths, lanes, ways, and trails for bicycling
  or hiking and facilities related to such paths, lanes, ways, and
  trails.
               (2)  "Transit authority" or "transportation authority"
  includes a municipality to which this subchapter applies.
         Sec. 446.253.  CALLING OF ELECTION. (a)  The governing body
  of a municipality to which this subchapter applies may, by order
  adopted by a majority vote of its membership, call an election on
  the issue of imposing one or more methods of local option funding
  authorized by this chapter to:
               (1)  acquire, construct, develop, own, operate, and
  maintain mobility improvement projects;
               (2)  fund operations, maintenance, capital, and debt
  service expenses for mobility improvement projects; or
               (3)  contract with a transportation authority or
  transportation provider for a purpose described by Subdivision (1)
  or (2).
         (b)  A municipality may order an election under this section
  on an issue described by Subsection (a) only after holding a public
  hearing regarding the issue.
         (c)  A municipality ordering an election under this section
  has the powers and responsibilities granted to a county under
  Subchapter B.
         (d)  Before an election may be called under this section, the
  metropolitan planning organization for the region in which the
  municipality calling the election is located must certify by
  majority vote that the list of proposed mobility improvement
  projects included on the proposed ballot are consistent with the
  organization's current long-range transportation plan.
         (e)  An election called under this section may only be held
  on a uniform election date in November or May.
         Sec. 446.254.  CONTENTS OF ORDER; BALLOT PROPOSITION. An
  order calling an election under Section 446.253 must include the
  ballot proposition to be used in the election. The ballot
  proposition must:
               (1)  list each proposed mobility improvement project to
  be funded;
               (2)  designate each proposed method of local option
  funding and the proposed rate or amount to be used to fund capital
  construction of each proposed mobility improvement project or group
  of projects and, if applicable, designate a separate and
  corresponding proposed rate or amount for the maintenance and
  operation of each proposed project or group of projects;
               (3)  state the estimated date or dates on which each
  proposed method of local option funding is expected to expire; and
               (4)  if applicable, list the estimated annual
  maintenance and operation expenses for each proposed mobility
  improvement project or group of projects for which a rate or amount
  is proposed under Subdivision (2).
         Sec. 446.255.  PROJECT SELECTION ADVISORY COMMITTEE.
  (a)  Before a municipality may order an election under this
  subchapter, the municipality must establish a project selection
  advisory committee to recommend mobility improvement projects and
  related methods of local option funding authorized by this chapter.
  The composition of an advisory committee is determined by the
  municipality.
         (b)  Each project selection advisory committee shall:
               (1)  consult with:
                     (A)  the municipality that establishes the
  committee;
                     (B)  the metropolitan planning organization for
  the region in which the municipality is located;
                     (C)  other municipalities located in the same
  county as the municipality;
                     (D)  a regional mobility authority operating
  under Chapter 370, Transportation Code, that serves the
  municipality;
                     (E)  any transit or transportation authority
  created or operating under Subtitle K, Title 6, Transportation
  Code, that serves the municipality; and
                     (F)  any commuter rail district operating wholly
  or partially in the municipality;
               (2)  give first consideration to mobility improvement
  projects of regional significance that complement or supplement the
  regional transportation system; and
               (3)  consider the geographic location of other
  state-funded or federally funded transportation projects and
  mobility improvement projects so as to foster geographic equity in
  the planning and development of regional projects.
         Sec. 446.256.  SUBSEQUENT ELECTIONS. (a)  After initial
  mobility improvement projects and methods of local option funding
  are determined and an initial election is called under Sections
  446.253 and 446.254, a project selection advisory committee may
  determine and propose additional projects and funding, and
  additional elections may be called, using the procedures described
  by those sections.
         (b)  Notwithstanding Section 446.253, the governing body of
  a municipality may not call an election under this subchapter
  before the 11th month following an election previously called under
  this subchapter.
         Sec. 446.257.  TRANSIT OR TRANSPORTATION AUTHORITY SERVICES
  NOT AUTHORIZED. (a)  A municipality acting under this subchapter
  may not directly operate or provide passenger rail services or any
  service expressly reserved by a transit authority created or
  operating under Chapter 451, Transportation Code, that serves the
  municipality.
         (b)  This subchapter does not authorize the creation of a
  transit or transportation authority.
         SECTION 2.  Subsection (a), Section 502.003, Transportation
  Code, is amended to read as follows:
         (a)  Except as provided by Subsection (b) and by Chapter 446,
  Local Government Code, a political subdivision of this state may
  not require an owner of a motor vehicle to:
               (1)  register the vehicle;
               (2)  pay a motor vehicle registration fee; or
               (3)  pay an occupation tax or license fee in connection
  with a motor vehicle.
         SECTION 3.  (a)  Unless otherwise authorized by the
  constitution of this state, money collected from a county motor
  fuel tax authorized by this Act may be used only for acquiring
  rights-of-way, for constructing, maintaining, and policing public
  roadways, and for administering laws related to the supervision of
  traffic and safety on those roads.
         (b)  If the constitution of this state does not authorize the
  use of money collected under the county motor fuel tax authorized by
  this Act for transportation uses other than those described by
  Subsection (a) of this section, the county shall deposit such money
  into an account separate from the money collected under other
  provisions of Chapter 446, Local Government Code, as added by this
  Act, and may use the money only for the purposes described by
  Subsection (a) of this section.
         (c)  If the constitution of this state requires that
  one-fourth of the county motor fuel tax authorized by this Act be
  allocated to the available school fund, the county shall deposit
  such money into an account separate from the money collected under
  other provisions of this Act and shall allocate the money to the
  comptroller of public accounts for deposit in the state treasury
  for the purpose required by the constitution.
         SECTION 4.  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, 2009.
 
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