HBA-JRA H.B. 2138 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2138
By: Krusee
Ways & Means
4/1/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, metropolitan rapid transit authorities are authorized to
collect a sales and use tax of up to one percent.  Voters in the authority
must authorize the tax to be collected.  In some cases, authorization to
collect the maximum tax rate was approved by the voters at the same
election that created the authority, but the full amount was not collected
initially.  Consequently, the board of such an authority has been able to
increase the tax rate without further approval by the voters.  Currently,
there is no method for the public to force the board to lower the rate.
H.B. 2138 provides for the expiration of a tax rate of three-quarters of
one percent or one percent that was set by an authority that set the tax at
a rate lower than authorized and subsequently raised it back to the maximum
permissible amount, unless the continuation of the tax rate is approved by
the voters. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter I, Chapter 451, Transportation Code, by
adding Section 451.4051, as follows: 

Sec. 451.4051.  TAX RATE IN CERTAIN AUTHORITIES.  (a)  Makes this section
applicable only to a rapid transit authority in which the governing body of
the authority (board) has lowered the tax rate from the maximum permissible
amount and subsequently raised the tax rate back to the maximum permissible
amount. 

(b)  Provides that a tax rate of three-quarters of one percent or one
percent in effect on September 1, 1999, expires on December 1, 1999, unless
the continuation of the tax rate is approved by a majority of the votes
recorded at an election called for that purpose on the uniform election
date in November 1999. 

(c)  Requires the ballots at an election held under this section to printed
to provide for voting for or against the proposition.  Sets forth the
required language of the ballot. Provides that Sections 451.411-451.413
(Results of Election; Notice), (Effective Date of Tax Rate Change), and
(Tax Effective Dates after Election Contest), Transportation Code, apply to
an election under this section as if the election were held to increase or
decrease the tax rate. 

(d)  Authorizes the board to set the tax rate at one-quarter of one percent
or one-half of one percent if a tax rate expires under this section. 

SECTION 2.Emergency clause.
  Effective date: upon passage.