HBA-TYH S.B. 769 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 769 By: Madla Urban Affairs 4/19/1999 Engrossed BACKGROUND AND PURPOSE The term "advanced transportation" includes light rail, commuter rail, fixed guideways, and high occupancy vehicle lanes, as well as other transportation facilities and services. In light of the growing population of Texas, the development of such means of transportation may be useful as a means of relieving traffic congestion on streets and highways. Such a development will require extra funds. Currently, however, a metropolitan transit system cannot increase sales taxes when a city in its region enacts a sales tax reaching the maximum allowed under state law. The 75th Legislature had enacted legislation to allow the use of sales taxes for purposes other than transportation, such as arenas and crime control districts. S.B. 769 authorizes the board of a rapid transit authority to order an election to create an advanced transportation district (district) within the authority's boundaries and to impose a sales and use tax at the rate of one-fourth of one percent for advanced transportation. 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 Chapter 451, Transportation Code, by adding Subchapter O, as follows: SUBCHAPTER O. ADVANCED TRANSPORTATION DISTRICT Sec. 451.701. DEFINITIONS. Defines "advanced transportation," "district," and "participating unit." Sec. 451.702. ELECTION AUTHORIZED. (a) Authorizes the board (board) of an authority (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 700,000 to 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. Provides that if approved at the election, the rate of the sales and use tax for advanced transportation is one-fourth of one percent. (b) Requires the board to provide written notice of the board's intention to call an election to the governing body of each municipality and the commissioners court of each county any part of which is in the authority at least 120 days before the date of the proposed election. (c) Requires the authority to pay the costs of an election ordered by the board. (d) Sets forth standard language for the ballot to permit voting for or against the proposition. (e) Requires the proceeds of the sales and use tax imposed to be used by the district only for advanced transportation purposes. Sec. 451.703. CONDUCT OF INITIAL ELECTION: SEPARATE RESULT. Requires the election to be conducted so that the votes are separately tabulated and canvassed and the result is declared in each unit of election in the authority in each municipality within the authority, and in the unincorporated area of a county in the authority. Sec. 451.704. RESULTS OF ELECTION; ORDER. Provides that the district is created and includes the enumerated areas, if a majority of the votes are in favor of the proposition. Requires the board to record the results in its minutes and adopt an order meeting the enumerated descriptions. Provides that the order must be accompanied by a map of the district showing the boundaries of the district. Requires a copy of the order and map to be filed with the Texas Department of Transportation, the comptroller, and in the deed records of each county in which the district is located. Sec. 451.705. SUBSEQUENT ELECTIONS. Authorizes the governing body of a municipality to order an election in the municipality at a later date on the question of joining the district, if the voters do not vote to join the district at the initial election under Section 451.702. Authorizes the commissioners court of a county to order an election in the county at a later date on the question of joining the district, if the voters of the unincorporated area of a county do not vote to join the district at the initial election under Section 451.702. Requires an election ordered under this section to be held in the same manner as the initial election, except that the governmental entity ordering the election is required to pay the costs of the election, and the governing body of that entity is required to canvass the vote, declare the results, and notify the district of the results of the election. Sec. 451.706. LIMITATION ON TAX RATE. Prohibits the combined rate of all sales and use taxes imposed by the district and all other political subdivisions of the state from exceeding two percent in any location in the district. Provides that if after an election the imposition of the district's tax in a participating unit would exceed the designated limit, the election of a participating unit to join the district repeals all other local sales and use taxes in that unit, except for the sales and use tax of the authority and a sales and use tax of not more than one percent imposed by a municipality under Section 321.101(a) (Tax Authorized) or 321.103(a) (Sales Tax), Tax Code. Provides that the sales and use tax and the repeal of any other local sales and use taxes take effect on the first day of the second calendar quarter after the date the comptroller receives a copy of the order canvassing the results of the election. Sec. 451.707. GOVERNANCE OF DISTRICT. Requires the board to act as the governing body of the district and to be responsible for the management, operation, and control of the district. Requires the business of the district to be conducted by its governing body and by the employees of the authority acting under the control and direction of the general manager of the authority. Authorizes the district to enter into contracts with the authority or other private or public entities to conduct the business of the district. Provides that the district has the same powers of the authority that called the election creating the district as provided by Subchapters B (Powers of Authorities), C (Management of Authority), F (Special Programs and Services), H (Bonds), I (Taxation), and K (Boards), except as otherwise provided by this subchapter. Sec. 451.708. DISTRICT ASSETS AND RECORDKEEPING. Requires an asset of the district to be held in the name of the authority. Requires the authority to keep separate books and accounting records for the funds, revenues, expenses, and other property of the district. Sec. 451.709. NATURE OF DISTRICT. Provides that the district is a governmental unit under Chapter 101 (Tort Claims), Civil Practice and Remedies Code, and the operations of the district are not proprietary functions for any purpose, including the application of Chapter 101, Civil Practice and Remedies Code. Sec. 451.710. ANNEXATION OF TERRITORY BY MUNICIPALITY. Provides that territory that is not in the district becomes part of the district, on annexation by a municipality that is in the district. SECTION 2. Emergency clause. Effective date: upon passage.