HBA-NRS H.B. 3323 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3323 By: Solomons Transportation 8/6/2001 Enrolled BACKGROUND AND PURPOSE Because of the increase in the state's population, counties adjacent to other counties that contain a major municipality are adversely affected by an increase in traffic congestion on area roadways. To provide more efficient transportation and to reduce air pollution, an alternative means of transportation in such counties needs to be developed. A county transportation authority could facilitate efforts to ameliorate traffic congestion and pollution. House Bill 3323 authorizes a county adjacent to a county with a population of more than one million to create a coordinated county transportation authority. 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. ANALYSIS House Bill 3323 amends the Transportation Code to authorize the commissioners court of a county adjacent to a county with a population of more than one million to initiate the process to create a coordinated county transportation authority (authority) (Sec. 460.002 and 460.051). The bill sets forth provisions for the ineligibility of certain municipalities to join or become a member of an authority (Sec. 460.003). The bill authorizes the commissioners court of a county to initiate the process to create an authority by resolution or order or on receipt of a petition signed by a number of registered voters equal to or greater than five percent of the number of votes cast in the county in the most recent gubernatorial election (Sec. 460.051). The bill requires the commissioners court to hold a public hearing after receipt of a petition or on passage of a resolution or order and to provide notice of the meeting. After the public hearing, the bill authorizes the commissioners court to adopt a resolution or order designating the name of the authority, stating that all land within the county is required to be part of the authority, and stating that such territory is subject to the authority based on the results of the confirmation election (Secs. 460.052 and 460.053). The bill requires the commissioners court and certain municipalities to appoint an interim executive committee and sets forth the selection process and composition of the interim executive committee (Sec. 460.054). The bill requires the interim executive committee to develop a service plan and determine a proposed tax rate (Sec. 460.055). On approval by the interim executive committee of the service plan and tax rate, the bill requires a copy of the service plan and tax rate to be provided to the county commissioners court and the governing body of each municipality with a population of 12,000 or more located in the county. The bill prohibits a municipality with a population of 12,000 or more that does not approve by resolution or order the service plan and tax rate from participating in the service plan or the confirmation election for the authority (Sec. 460.056). The bill requires the interim executive committee to provide notice to the commissioners court of the need to call a confirmation election and sets forth provisions regarding such an election (Sec. 460.057). The bill requires a confirmation election to be conducted so that votes are separately tabulated and canvassed showing the results for each municipality that passed a resolution or order approving the service plan and tax rate and for the qualified voters in the balance of the county. In each municipality or in the county where a majority of votes were received in favor of the proposition, the authority is confirmed and the interim executive committee becomes the executive committee of the authority (executive committee) (Sec. 460.058 and 460.059). The bill provides that an authority that has not been confirmed expires on the third anniversary of the effective date of the resolution or order initiating the process to create the authority (Sec. 460.060). The bill provides that an authority may sue and be sued. The bill authorizes the authority to hold, use, sell, lease, dispose of, and acquire, by any means, property and licenses, patents, rights and other interests necessary, convenient, or useful to the exercise of power ascribed to the authority (Sec. 460.103). The bill authorizes an authority to contract with any person, to accept a gift, grant, donation, or loan from any person, and to enter into an agreement with a transportation or transit entity (Sec. 460.104). The bill authorizes the authority to acquire, construct, develop, plan, own, operate and maintain a public transportation system in the territory of the authority, including the territory of a political subdivision or municipality partially located in the territory of the authority and sets forth provisions regarding the operation of a public transportation system (Sec. 460.105). The bill authorizes an authority to call an authorization election for a tax levy associated with the service plan developed by the interim executive committee or a tax rate that has been modified by action of the executive committee after the confirmation election that creates the authority. An authority that does not authorize an initial tax levy expires on the second anniversary of the date of the adoption of an order confirming the creation of an authority (Sec. 460.106). House Bill 3323 authorizes an authority to use any public way as it is necessary or useful in the construction, repair, maintenance or operation of the public transportation system. The bill authorizes the authority, with approval, to acquire by eminent domain any interest in real property, including a fee simple interest and the use of air or subsurface space (Sec. 460.107). The bill authorizes an authority to agree with any other public or private utility, communication system, common carrier, or transportation system for the joint use of the property or fixtures of the agreeing entities and for the establishment of through routes, joint fares, or transfers of passengers between the agreeing entities. If the exercise of a power granted to an authority requires a public utility facility to be relocated, adjusted, raised, lowered, rerouted, or changed as to grade or construction, the bill requires the authority to take the required action at the authority's expense. The bill prohibits an authority from imposing an impact fee or assessment on the property, equipment, or facilities of a utility (Sec. 460.108). The bill requires an authority to impose reasonable and nondiscriminatory fares, tolls, charges, rents, and other forms of compensation for the use of the public transportation system (Sec. 460.109). The bill authorizes an authority to insure, through purchased insurance policies and self-insurance programs, the legal liability of the authority and of its contractors and subcontractors arising from the acquisition, construction, or operation of the programs and facilities of the authority for personal and property damage and for officers' and employers' liability (Sec. 460.110). The bill provides that the property, revenue, and income of an authority are exempt from state and local taxes (Sec. 460.111). If the authority constructs or operates or contracts with another entity to construct or operate a mass transit rail system, the authority is not subject to any state law regulating or governing the design, construction, or operation of a railroad, railway, street railway, streetcar, or interurban railway (Sec. 460.112). The bill sets forth provisions relating to executive committee membership, eligibility, conflicts of interest, meetings, and voting requirements (Secs. 460.201- 460.205). The bill provides that when a municipality that is a part of an authority annexes territory that before the annexation is not part of the authority, the annexed territory becomes part of the authority (Sec. 460.301). The bill provides that the territory of a municipality that is not part of an authority may be added to an authority if any part of the municipality is located in the territory of the authority, the governing body of the municipality orders an election on whether the territory of the municipality should be added to the authority, and a majority of the votes received in the election favor the measure (Sec. 460.302). The bill authorizes a municipality that has a population of more than 500,000 that is located in a county with a population of more than one million to participate in a separate transit authority or to participate in both the original and new authorities (Sec. 460.303). The bill provides that sales and use tax imposed by an authority takes effect in territory added to the authority on the first day of the first calendar quarter that begins after the addition of the territory (Sec. 460.304). The bill requires that a service plan developed by the interim executive committee consider the regional transportation plan for the county, traffic counts, alternative modes of public transportation, the most efficient location of collection points, estimates of capital expenditures, various forms of public transportation consistent with the use of determined routes, administrative overhead costs, fare structure, comparison of revenue, and dates of access to other transit systems. The bill provides that administrative overhead costs should be calculated separately and certain load factors should be considered (Sec. 460.055). The bill authorizes an authority to issue bonds when necessary for the acquisition, construction, repair, improvement, or extension of the public transportation system of the authority (Sec. 460.502). The bill authorizes an executive committee to impose a sales and use tax at certain rates for use by the authority after approval by election. The bill authorizes a municipality with a population of 12,000 or more that has confirmed the authority to impose a sales and use tax at a rate higher than the minimum uniform rate established by the authority if the authority will provide the municipality a higher level of service. The bill requires the executive committee to impose a sales and use tax at a minimum uniform rate as determined by the executive committee if the tax is approved at an election in an area that has confirmed the authority (Sec. 460.551). The bill requires the executive committee of an authority to have an annual audit prepared by an independent certified public accountant (Sec. 460.402). The bill prohibits an authority from awarding a contract for construction, services, or property, other than real property, except through the solicitation of competitive sealed bids or proposals, except under certain circumstances (Sec. 460.406) EFFECTIVE DATE September 1, 2001.