By: McClendon (Senate Sponsor - Zaffirini) H.B. No. 2396
         (In the Senate - Received from the House May 6, 2011;
  May 9, 2011, read first time and referred to Committee on
  Transportation and Homeland Security; May 20, 2011, reported
  adversely, with favorable Committee Substitute by the following
  vote:  Yeas 8, Nays 0; May 20, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 2396 By:  Wentworth
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the pledge of advanced transportation district sales
  and use taxes to certain bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 451.702, Transportation Code, is amended
  by amending Subsections (a) and (l) and adding Subsection (l-1) to
  read as follows:
         (a)  The board of an authority in which the sales and use tax
  is imposed at a rate of one-half of one percent and in which the
  principal municipality has a population of more than 1.3 million
  [700,000] may order an election to create an advanced
  transportation district within the authority's boundaries and to
  impose a sales and use tax for advanced transportation and mobility
  enhancement under this subchapter. If approved at the election,
  the rate of the sales and use tax for advanced transportation and
  mobility enhancement shall be set by the governing body of the
  district at a rate of:
               (1)  one-eighth of one percent;
               (2)  one-fourth of one percent;
               (3)  three-eighths of one percent; or
               (4)  one-half of one percent.
         (l)  Notwithstanding any other provision of this chapter,
  the [The] governing body of a [the] district may, by order or
  resolution, without the necessity of an election specifically
  concerning the matter:
               (1)  pledge the sales and use tax proceeds identified
  in Subsection (f) from a sales and use tax imposed by an election
  held under this section after May 21, 1999, to one or more series of
  sales and use tax revenue bonds issued under Subchapter H, subject
  to Subsection (l-1); and
               (2)  enter into an agreement or contractual arrangement
  under Subsection (k) [without the necessity of an election].
         (l-1)  The governing body of a district may not pledge sales
  and use tax proceeds under Subsection (l) unless the board has
  conducted a public hearing concerning the issuance of the bonds to
  which the proceeds are pledged and published notice of the hearing
  at least 14 days before the date of the hearing in a newspaper of
  general circulation in the principal municipality of the authority.
         SECTION 2.  This Act takes effect September 1, 2011.
 
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