Texas 2009 - 81st Regular

Texas House Bill HB3341 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R6901 E
2	2	By: Miklos H.B. No. 3341
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of a transportation development
8	8	corporation in certain municipalities; authorizing local option
9	9	elections for funding mass transit projects.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle C1, Title 12, Local Government Code, as
12	12	effective April 1, 2009, is amended by adding Chapter 508 to read as
13	13	follows:
14	14	CHAPTER 508. TRANSPORTATION DEVELOPMENT CORPORATIONS
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 508.001. DEFINITIONS. In this chapter:
17	17	(1) "Authorizing municipality" means a municipality
18	18	that authorizes the creation of a transportation development
19	19	corporation.
20	20	(2) "Complementary transportation services" includes:
21	21	(A) special transportation services for a person
22	22	who is elderly or has a disability;
23	23	(B) medical transportation services;
24	24	(C) assistance in street modifications as
25	25	necessary to accommodate the public transportation system;
26	26	(D) construction of new general aviation
27	27	facilities or renovation or purchase of existing facilities not
28	28	served by certificated air carriers to relieve air traffic
29	29	congestion at existing facilities; and
30	30	(E) any other service that complements the public
31	31	transportation system, including providing parking garages.
32	32	(3) "Merged corporation" means a transportation
33	33	development corporation formed under Section 508.004 and governed
34	34	by this chapter.
35	35	(4) "Public transportation" means the conveyance of
36	36	passengers and hand-carried packages or baggage of a passenger by
37	37	any means of transit services made available to the public.
38	38	(5) "Public transportation system" means:
39	39	(A) all property owned or held by a
40	40	transportation development corporation for public transportation
41	41	or complementary transportation service purposes, including
42	42	vehicle parking areas and facilities and other facilities necessary
43	43	or convenient for the beneficial use of, and the access of persons
44	44	and vehicles to, public transportation;
45	45	(B) real property, facilities, and equipment for
46	46	the protection and environmental enhancement of all the facilities;
47	47	and
48	48	(C) property held:
49	49	(i) in accordance with a contract with the
50	50	owner making the property subject to the control of or regulation by
51	51	the corporation; and
52	52	(ii) for public transportation or
53	53	complementary transportation service purposes.
54	54	(6) "Transportation development corporation" means a
55	55	corporation governed by this chapter.
56	56	Sec. 508.002. APPLICABILITY OF CHAPTER. This chapter
57	57	applies only to a municipality that is located in a county:
58	58	(1) with a population of 1.4 million or more but less
59	59	than 3.4 million; or
60	60	(2) adjacent to a county with a population of 1.4
61	61	million or more but less than 3.4 million.
62	62	Sec. 508.003. AUTHORITY TO CREATE CORPORATION. (a) A
63	63	municipality may authorize the creation under this subtitle of a
64	64	transportation development corporation.
65	65	(b) A municipality may not authorize the creation of more
66	66	than one transportation development corporation in the
67	67	municipality.
68	68	Sec. 508.004. MERGER OF CORPORATIONS. (a) Two or more but
69	69	not more than nine transportation development corporations formed
70	70	under this chapter may merge and combine their assets, liabilities,
71	71	obligations, authority, and operations into one transportation
72	72	development corporation if:
73	73	(1) the board of directors of each corporation that is
74	74	a party to the merger adopts a plan of merger that states the terms
75	75	and conditions of the merger and includes the certificate of
76	76	formation of the corporation to be created by the plan of merger;
77	77	(2) the governing body of each authorizing
78	78	municipality approves the merger;
79	79	(3) the sales and use taxes imposed for the benefit of
80	80	each of the merging corporations are of an equal rate; and
81	81	(4) the merger would not impair the obligation of a
82	82	contract of a merging corporation that created debt for which the
83	83	proceeds of a sales and use tax imposed for the benefit of the
84	84	merging corporation were pledged wholly or partly for its payment.
85	85	(b) A merged corporation is a political subdivision solely
86	86	for purposes of imposing a sales and use tax for the benefit of the
87	87	merged corporation.
88	88	(c) When a merger takes effect, the separate existence of
89	89	each transportation development corporation that is a party to the
90	90	merger ceases.
91	91	Sec. 508.005. CONTENTS OF CERTIFICATE OF FORMATION. The
92	92	certificate of formation of a transportation development
93	93	corporation must state that the corporation is governed by this
94	94	chapter.
95	95	Sec. 508.006. CORPORATION NOT SUBJECT TO CERTAIN
96	96	PROVISIONS. Sections 501.203, 501.205, 501.251-501.254,
97	97	501.255(a) and (b), 501.256, and 501.257 do not apply to a
98	98	corporation under this chapter.
99	99	[Sections 508.007-508.050 reserved for expansion]
100	100	SUBCHAPTER B. GOVERNANCE OF CORPORATION
101	101	Sec. 508.051. BOARD OF DIRECTORS. (a) The board of
102	102	directors of a transportation development corporation created by a
103	103	single authorizing municipality consists of at least five
104	104	directors.
105	105	(b) A director is appointed by the governing body of the
106	106	authorizing municipality. A director serves at the pleasure of the
107	107	governing body that appointed the director and may be removed by
108	108	that governing body at any time without cause.
109	109	(c) The governing body of the authorizing municipality
110	110	shall determine the number of directors and the length of each
111	111	director's term.
112	112	(d) The governing bodies of the authorizing municipalities
113	113	of a merged corporation shall determine by written agreement the
114	114	number of directors, the apportionment of directors for each
115	115	municipality, and the length of each director's term. The board
116	116	shall consist of as many directors as necessary so that each
117	117	authorizing municipality is represented by at least one director.
118	118	(e) The length of a director's term may not exceed six
119	119	years.
120	120	Sec. 508.052. OFFICERS. The board of directors of a
121	121	transportation development corporation shall appoint:
122	122	(1) a president;
123	123	(2) a secretary; and
124	124	(3) other officers of the corporation that:
125	125	(A) the governing body of the authorizing
126	126	municipality considers necessary; or
127	127	(B) the governing bodies of the authorizing
128	128	municipalities of a merged corporation authorize by written
129	129	agreement.
130	130	Sec. 508.053. QUORUM. A majority of the entire membership
131	131	of the board of directors of a transportation development
132	132	corporation is a quorum.
133	133	Sec. 508.054. LOCATION OF BOARD MEETINGS. (a) The board of
134	134	directors of a transportation development corporation shall
135	135	conduct each board meeting within the boundaries of the authorizing
136	136	municipality.
137	137	(b) The board of directors of a merged corporation shall
138	138	conduct each board meeting within the combined boundaries of each
139	139	authorizing municipality of the merged corporation.
140	140	Sec. 508.055. RESTRICTIONS ON REGISTERED AGENT AND OFFICE.
141	141	(a) The registered agent of a transportation development
142	142	corporation must be an individual who is a resident of this state.
143	143	(b) The registered office of a transportation development
144	144	corporation must be located within the boundaries of the
145	145	authorizing municipality.
146	146	(c) The registered office of a merged corporation must be
147	147	located within the combined boundaries of each authorizing
148	148	municipality of the merged corporation.
149	149	[Sections 508.056-508.100 reserved for expansion]
150	150	SUBCHAPTER C. GENERAL POWERS AND DUTIES
151	151	Sec. 508.101. APPLICABILITY OF OTHER LAW; CONFLICTS. A
152	152	transportation development corporation has the powers and is
153	153	subject to the limitations of a corporation created under another
154	154	provision of this subtitle outside of this chapter. To the extent
155	155	of a conflict between this chapter and another provision of this
156	156	subtitle, this chapter prevails.
157	157	Sec. 508.102. AUTHORITY OF CORPORATION TO OPERATE PUBLIC
158	158	TRANSPORTATION SYSTEM. A transportation development corporation
159	159	has:
160	160	(1) the same authority as a municipality to operate a
161	161	public transportation system; and
162	162	(2) the powers provided to a regional transportation
163	163	authority under Chapter 452, Transportation Code.
164	164	Sec. 508.103. CONTRACTS. A transportation development
165	165	corporation may contract with any person to:
166	166	(1) carry out a transportation development project or
167	167	objective; or
168	168	(2) assist with the development or operation of a
169	169	transportation development project or objective consistent with
170	170	the purposes of and duties provided by this subtitle.
171	171	Sec. 508.104. LIMITATION ON USE OF REVENUES FOR PROMOTIONAL
172	172	PURPOSE. A transportation development corporation may spend not
173	173	more than 10 percent of the corporate revenues for promotional
174	174	purposes.
175	175	Sec. 508.105. BOND REPAYMENT. (a) Bonds or other
176	176	obligations that mature in 30 years or less and that are issued to
177	177	pay the costs of projects may be made payable from any source of
178	178	funds available to the transportation development corporation,
179	179	including the proceeds of a sales and use tax imposed under this
180	180	chapter.
181	181	(b) Bonds or other obligations that by their terms are
182	182	payable from the tax proceeds:
183	183	(1) may not be paid wholly or partly from any property
184	184	taxes imposed or to be imposed by an authorizing municipality; and
185	185	(2) are not a debt of and do not give rise to a claim
186	186	for payment against an authorizing municipality, except as to sales
187	187	and use tax revenue held by the municipality and required under this
188	188	chapter to be delivered to the transportation development
189	189	corporation.
190	190	Sec. 508.106. EMINENT DOMAIN. A transportation development
191	191	corporation may exercise the power of eminent domain inside and
192	192	outside the corporate limits of an authorizing municipality or
193	193	municipalities.
194	194	Sec. 508.107. LIABILITY. (a) The following are not liable
195	195	for damages arising from the performance of a governmental function
196	196	of a transportation development corporation or an authorizing
197	197	municipality:
198	198	(1) the corporation;
199	199	(2) a director of the corporation;
200	200	(3) the municipality;
201	201	(4) a member of the governing body of the
202	202	municipality; or
203	203	(5) an employee of the corporation or municipality.
204	204	(b) For purposes of Chapter 101, Civil Practice and Remedies
205	205	Code, a transportation development corporation is a governmental
206	206	unit and the corporation's actions are governmental functions.
207	207	Sec. 508.108. CALLING OF ELECTIONS. (a) The board of the
208	208	transportation development corporation may call an election on the
209	209	issue of authorizing a tax under Section 508.251 for one or more
210	210	public transportation system projects.
211	211	(b) The corporation shall call an election on the issue
212	212	described by Subsection (a) on receipt of a petition requesting
213	213	that the election be called signed by a number of registered voters
214	214	in one or more authorizing municipalities equal to at least 10
215	215	percent of the total number of votes cast in the municipality or
216	216	municipalities for all candidates for governor in the most recent
217	217	gubernatorial general election.
218	218	(c) The corporation may adopt an order under this section
219	219	only after holding a public hearing on the issue.
220	220	[Sections 508.109-508.150 reserved for expansion]
221	221	SUBCHAPTER D. AUTHORIZED PROJECTS
222	222	Sec. 508.151. AUTHORIZED PROJECTS. (a) In this chapter,
223	223	"project" means land, buildings, equipment, facilities,
224	224	expenditures, and improvements found by the board of directors to
225	225	be required or suitable for use for the acquisition, construction,
226	226	creation, operation, or maintenance of a public transportation
227	227	system.
228	228	(b) A corporation may finance and undertake one or more
229	229	projects.
230	230	Sec. 508.152. PUBLIC PURPOSE DESIGNATION; EXEMPTION FROM
231	231	TAXATION. (a) The legislature finds for all constitutional and
232	232	statutory purposes that:
233	233	(1) a project under this chapter is owned, used, and
234	234	held for a public purpose for and on behalf of an authorizing
235	235	municipality or municipalities or a merged corporation, as
236	236	appropriate; and
237	237	(2) except as otherwise provided by this section,
238	238	Section 501.160 of this subtitle and Section 25.07(a), Tax Code, do
239	239	not apply to a leasehold or other possessory interest granted by a
240	240	transportation development corporation during the period the
241	241	corporation owns projects on behalf of an authorizing municipality
242	242	or municipalities or a merged corporation, as appropriate.
243	243	(b) A project is exempt from ad valorem taxation under
244	244	Section 11.11, Tax Code, for the period described by Subsection
245	245	(a)(2) of this section.
246	246	(c) This subsection applies only if the voters of an
247	247	authorizing municipality of a transportation development
248	248	corporation or the authorizing municipalities of a merged
249	249	corporation have not approved the adoption of a sales and use tax
250	250	for the benefit of the corporation under Section 508.251. An
251	251	ownership, leasehold, or other possessory interest of a person
252	252	other than the corporation in real property constituting a project
253	253	of the corporation described by this section is subject to ad
254	254	valorem taxation under Section 25.07(a), Tax Code.
255	255	Sec. 508.153. HEARING REQUIRED TO UNDERTAKE PROJECT. A
256	256	transportation development corporation shall hold at least one
257	257	public hearing on a proposed project before spending money to
258	258	undertake the project.
259	259	[Sections 508.154-508.250 reserved for expansion]
260	260	SUBCHAPTER E. SALES AND USE TAX
261	261	Sec. 508.251. TAX AUTHORIZED. (a) An authorizing
262	262	municipality may adopt a sales and use tax for the benefit of a
263	263	transportation development corporation if the tax is approved by a
264	264	majority of the voters of the municipality voting at an election
265	265	held for that purpose.
266	266	(b) Except as provided by Subsection (c), a merged
267	267	corporation may adopt a sales and use tax under this subchapter only
268	268	if a majority of voters of each authorizing municipality approve
269	269	the tax in an election held in each municipality.
270	270	(c) If the imposition of a sales and use tax was previously
271	271	approved at an election held by the authorizing municipality of
272	272	each corporation included in a merged corporation, the previous
273	273	elections are considered as an election to approve the imposition
274	274	of the tax for use by the merged corporation and an additional
275	275	election under Subsection (b) is not required.
276	276	(d) Each authorizing municipality of a merged corporation
277	277	shall receive for the benefit of the corporation the revenue from
278	278	the tax imposed by the corporation within the municipality.
279	279	Sec. 508.252. SALES TAX. (a) If an authorizing
280	280	municipality or merged corporation adopts the tax under Section
281	281	508.251, a tax is imposed on the receipts from the sale at retail of
282	282	taxable items within the municipality or merged corporation at the
283	283	rate approved by the voters.
284	284	(b) The rate of the tax imposed under Subsection (a) must be
285	285	equal to one-eighth, one-fourth, three-eighths, one-half,
286	286	five-eighths, three-fourths, or seven-eighths of one percent or one
287	287	percent.
288	288	Sec. 508.253. USE TAX. (a) If an authorizing municipality
289	289	or merged corporation adopts the tax under Section 508.251, an
290	290	excise tax is imposed on the use, storage, or other consumption
291	291	within the municipality or corporation of taxable items purchased,
292	292	leased, or rented from a retailer during the period that the tax is
293	293	effective within the municipality or corporation.
294	294	(b) The rate of the excise tax is the same as the rate of the
295	295	sales tax portion of the sales and use tax and is applied to the
296	296	sales price of the taxable items.
297	297	Sec. 508.254. SALES AND USE TAXES NOT COUNTED IN COMBINED
298	298	LOCAL TAX RATE. Notwithstanding any other law, the rate of a sales
299	299	and use tax imposed by a municipality or merged corporation under
300	300	this chapter may not be considered in determining the combined or
301	301	overlapping rate of sales and use taxes imposed in the municipality
302	302	or corporation for any purpose other than as provided by Section
303	303	328.004, Tax Code.
304	304	Sec. 508.255. APPLICABILITY OF TAX CODE. (a) Chapter 321,
305	305	Tax Code, governs an election to approve the adoption of the sales
306	306	and use tax under this chapter and governs the imposition,
307	307	computation, administration, governance, use, and abolition of the
308	308	tax except as inconsistent with this chapter.
309	309	(b) Except as provided by this subsection, the tax imposed
310	310	under this chapter takes effect as provided by Section 321.102(a),
311	311	Tax Code. If an election is held under this chapter at the same
312	312	time an election is held to impose or change the rate of the
313	313	additional municipal sales and use tax, the tax under this chapter
314	314	and the imposition or change in rate of the additional municipal
315	315	sales and use tax take effect as provided by Section 321.102(b), Tax
316	316	Code.
317	317	(c) After the effective date of the taxes imposed under this
318	318	chapter, the adoption of a sales and use tax or the attempted
319	319	adoption of a sales and use tax by an authorizing municipality or a
320	320	merged corporation or another taxing jurisdiction having territory
321	321	in the municipality or corporation does not impair the taxes
322	322	imposed under this chapter.
323	323	Sec. 508.256. BALLOT. In an election to adopt the sales
324	324	and use tax under this chapter, the ballot shall be printed to
325	325	provide for voting for or against the proposition: "The adoption
326	326	of a sales and use tax for the acquisition, construction, creation,
327	327	operation, or maintenance of a public transportation system at the
328	328	rate of __________" (one-eighth, one-fourth, three-eighths,
329	329	one-half, five-eighths, three-fourths, or seven-eighths of one
330	330	percent or one percent to be inserted as appropriate).
331	331	Sec. 508.257. LIMITATION ON DURATION OF TAX. (a) At an
332	332	election held under Section 508.251, an authorizing municipality or
333	333	merged corporation may also allow the voters to vote on a ballot
334	334	proposition to limit the period for imposition of a sales and use
335	335	tax.
336	336	(b) An authorizing municipality or merged corporation that
337	337	has imposed a tax for a limited time under this section may extend
338	338	the period of the tax's imposition or reimpose the tax only if the
339	339	extension or reimposition is approved by a majority of the voters of
340	340	the municipality or corporation voting at an election held for that
341	341	purpose in the same manner as an election held under Section
342	342	504.257.
343	343	Sec. 508.258. LIMITED SALES AND USE TAX FOR SPECIFIC
344	344	PROJECT. (a) At an election held under Section 508.251, an
345	345	authorizing municipality or merged corporation may also allow the
346	346	voters to vote on a ballot proposition to limit the use of the sales
347	347	and use tax to a specific project.
348	348	(b) A transportation development corporation created to
349	349	perform a specific project as provided by this section may retain
350	350	its corporate existence and perform any other project approved by
351	351	the voters of an authorizing municipality or merged corporation at
352	352	an election held for that purpose in the same manner as Section
353	353	504.260 provides for an election held under Section 504.251.
354	354	Before spending money to undertake a project, a transportation
355	355	development corporation shall hold a public hearing as otherwise
356	356	provided by this chapter.
357	357	Sec. 508.259. ELECTIONS AFFECTING MERGED CORPORATIONS. (a)
358	358	A ballot proposition under Section 508.257 affecting a merged
359	359	corporation is approved only if a majority of the voters of each
360	360	authorizing municipality approves the same proposition at an
361	361	election held in each municipality for that purpose in the same
362	362	manner as an election held under Section 504.257.
363	363	(b) A ballot proposition under Section 508.258 affecting a
364	364	merged corporation is approved only if a majority of the voters of
365	365	each authorizing municipality approves the same proposition at an
366	366	election held in each municipality for that purpose in the same
367	367	manner as Section 504.260 provides for an election held under
368	368	Section 504.251.
369	369	Sec. 508.260. CESSATION OF COLLECTION OF TAXES. A sales
370	370	and use tax imposed under this chapter may not be collected after
371	371	the last day of the first calendar quarter that occurs after the
372	372	transportation development corporation notifies the comptroller
373	373	that:
374	374	(1) all bonds or other obligations of the corporation,
375	375	including any refunding bonds, payable wholly or partly from the
376	376	proceeds of the sales and use tax imposed under this chapter, have
377	377	been paid in full; or
378	378	(2) the total amount, exclusive of guaranteed
379	379	interest, necessary to pay in full the bonds and other obligations
380	380	has been set aside in a trust account dedicated to the payment of
381	381	the bonds and other obligations.
382	382	[Sections 508.261-508.300 reserved for expansion]
383	383	SUBCHAPTER F. USE OF TAX PROCEEDS
384	384	Sec. 508.301. DELIVERY OF TAX PROCEEDS. On an authorizing
385	385	municipality's receipt from the comptroller of the proceeds of the
386	386	sales and use tax imposed under this chapter, the municipality
387	387	shall deliver the proceeds to the transportation development
388	388	corporation.
389	389	Sec. 508.302. PAYMENT OF PROJECT COSTS, BONDS, OR OTHER
390	390	OBLIGATIONS. The proceeds of the sales and use tax imposed under
391	391	this chapter may be used to:
392	392	(1) pay the costs of projects authorized by Section
393	393	508.151; or
394	394	(2) pay the principal of, interest on, and other costs
395	395	relating to bonds or other obligations issued by the transportation
396	396	development corporation to:
397	397	(A) pay the costs of projects; or
398	398	(B) refund bonds or other obligations issued to
399	399	pay the costs of projects.
400	400	[Sections 508.303-508.350 reserved for expansion]
401	401	SUBCHAPTER G. WITHDRAWAL FROM MERGED CORPORATION
402	402	Sec. 508.351. WITHDRAWAL FROM MERGED CORPORATION. (a) A
403	403	municipality may withdraw from a merged corporation if all of the
404	404	municipality's obligations and entitlements relating to the merged
405	405	corporation have been properly settled.
406	406	(b) The municipality withdrawing from the merged
407	407	corporation may not receive any assets, including money or other
408	408	property, of the merged corporation until the existence of the
409	409	merged corporation is terminated as provided by Section 508.354.
410	410	Sec. 508.352. DISTRIBUTION OF NET EARNINGS. If the board
411	411	of directors of a merged corporation determines that sufficient
412	412	provisions have been made to pay the corporation's expenses, bonds,
413	413	and other obligations, any net earnings may be distributed among
414	414	the authorizing municipalities of the corporation as a percentage
415	415	of the per capita contributions made by each of the municipalities
416	416	during the corporation's existence, including sales and use tax
417	417	delivered to the corporation.
418	418	Sec. 508.353. EFFECT OF WITHDRAWAL OF MUNICIPALITY. A
419	419	merged corporation may not terminate its existence as a result of
420	420	the withdrawal of a municipality from the merged corporation if at
421	421	least two authorizing municipalities remain in the corporation.
422	422	Sec. 508.354. DISTRIBUTION OF ASSETS. (a) Subject to
423	423	Subsection (b), on termination of the existence of a merged
424	424	corporation, any assets of the corporation remaining after all the
425	425	corporation's obligations have been met shall be distributed among
426	426	the authorizing municipalities as a percentage of the per capita
427	427	contributions made by each of the municipalities during the
428	428	corporation's existence, including sales and use tax delivered to
429	429	the corporation.
430	430	(b) A municipality that withdraws from a merged corporation
431	431	is entitled to receive a distribution under Subsection (a) that is
432	432	reduced by one percent for each year the merged corporation
433	433	operated without the municipality's membership in the corporation.
434	434	[Sections 508.355-508.400 reserved for expansion]
435	435	SUBCHAPTER H. TERMINATION OF CORPORATION
436	436	Sec. 508.401. APPLICATION OF SUBCHAPTER. This subchapter
437	437	applies to a transportation development corporation or to a merged
438	438	corporation with one remaining authorizing municipality.
439	439	Sec. 508.402. ELECTION TO TERMINATE EXISTENCE OF
440	440	CORPORATION ON PETITION. (a) The governing body of an authorizing
441	441	municipality shall order an election on the termination of the
442	442	existence of the transportation development corporation on receipt
443	443	of a petition requesting the election that is signed by at least 10
444	444	percent of the registered voters of the municipality.
445	445	(b) The authorizing municipality shall hold the election on
446	446	the first available uniform election date that occurs after the
447	447	time required by Section 3.005, Election Code.
448	448	Sec. 508.403. BALLOT. The ballot for an election held
449	449	under Section 508.402 shall be printed to permit voting for or
450	450	against the proposition: "Termination of the __________ (name of
451	451	corporation)."
452	452	Sec. 508.404. TERMINATION OF EXISTENCE OF CORPORATION.
453	453	(a) If a majority of the votes cast at an election held under
454	454	Section 508.402 approve the termination, the transportation
455	455	development corporation shall:
456	456	(1) continue operations only as necessary to meet the
457	457	obligations the corporation incurred before the date of the
458	458	election, including paying the principal of and interest on the
459	459	corporation's bonds; and
460	460	(2) liquidate the corporation's assets and apply the
461	461	proceeds to satisfy the corporation's obligations, to the extent
462	462	practicable.
463	463	(b) After the transportation development corporation has
464	464	satisfied all of the corporation's obligations, any remaining
465	465	assets of the corporation shall be transferred to the authorizing
466	466	municipality, and the existence of the corporation is terminated.
467	467	(c) The authorizing municipality shall promptly notify the
468	468	comptroller and the secretary of state of the date the existence of
469	469	a transportation development corporation is terminated under this
470	470	subchapter.
471	471	(d) A tax imposed under this chapter may not be collected
472	472	after the last day of the first calendar quarter that begins after
473	473	the authorizing municipality provides notice under Subsection (c).
474	474	Sec. 508.405. ELECTION REJECTING TERMINATION. If less
475	475	than a majority of the votes cast at an election held under Section
476	476	508.402 approve the termination, Section 508.404 has no effect.
477	477	SECTION 2. Subtitle C, Title 3, Tax Code, is amended by
478	478	adding Chapter 328 to read as follows:
479	479	CHAPTER 328. SALES AND USE TAX FOR TRANSPORTATION IN CERTAIN
480	480	MUNICIPALITIES
481	481	Sec. 328.001. DEFINITIONS. In this chapter:
482	482	(1) "Transit development district" means the
483	483	territory of one or more authorizing municipalities of a
484	484	transportation development corporation created under Chapter 508,
485	485	Local Government Code.
486	486	(2) "Transit sales and use tax" means a sales and use
487	487	tax imposed for the support of a transit development district or for
488	488	the support of transportation services authorized under the
489	489	Transportation Code.
490	490	Sec. 328.002. APPLICABILITY OF CHAPTER. This chapter
491	491	applies only to a transit development district located in a county:
492	492	(1) with a population of 1.4 million or more but less
493	493	than 3.4 million; or
494	494	(2) adjacent to a county with a population of 1.4
495	495	million or more but less than 3.4 million.
496	496	Sec. 328.003. TRANSIT SALES AND USE TAX NOT COUNTED IN
497	497	COMBINED LOCAL TAX RATE. Notwithstanding any other law, the rate of
498	498	a transit sales and use tax imposed within the territory of a
499	499	transit development district to which this chapter applies or a
500	500	municipality that is included within the boundaries of a rapid
501	501	transit authority created under Chapter 451 or 452, Transportation
502	502	Code, may not be considered in determining the combined or
503	503	overlapping rate of local sales and use taxes in the district for
504	504	any purpose other than as provided in Section 328.004.
505	505	Sec. 328.004. LIMITATION FOR TRANSIT SALES AND USE TAXES.
506	506	Notwithstanding any other law, the rate of all transit sales and
507	507	use taxes imposed within the territory of a transportation
508	508	development district to which this chapter applies or a
509	509	municipality that is included within the boundaries of a rapid
510	510	transit authority created under Chapter 451 or 452, Transportation
511	511	Code, may not exceed one percent at any location in the district.
512	512	SECTION 3. Sections 321.101(b) and (e), Tax Code, are
513	513	amended to read as follows:
514	514	(b) A municipality that is not disqualified may, by a
515	515	majority vote of the qualified voters of the municipality voting at
516	516	an election held for that purpose, adopt an additional sales and use
517	517	tax for the benefit of the municipality in accordance with this
518	518	chapter. A municipality, other than a municipality included in a
519	519	transportation development district to which Chapter 328 applies,
520	520	is disqualified from adopting the additional sales and use tax if
521	521	the municipality:
522	522	(1) is included within the boundaries of a rapid
523	523	transit authority created under Chapter 451, Transportation Code;
524	524	(2) is included within the boundaries of a regional
525	525	transportation authority created under Chapter 452, Transportation
526	526	Code, by a principal municipality having a population of less than
527	527	800,000, unless the municipality has a population of 400,000 or
528	528	more and is located in more than one county;
529	529	(3) is wholly or partly located in a county that
530	530	contains territory within the boundaries of a regional
531	531	transportation authority created under Chapter 452, Transportation
532	532	Code, by a principal municipality having a population in excess of
533	533	800,000, unless:
534	534	(A) the municipality is a contiguous
535	535	municipality; or
536	536	(B) the municipality is not included within the
537	537	boundaries of the authority and is located wholly or partly in a
538	538	county in which fewer than 250 persons are residents of both the
539	539	county and the authority according to the most recent federal
540	540	census; or
541	541	(C) the municipality is not and on January 1,
542	542	1993, was not included within the boundaries of the authority; or
543	543	(4) imposes a tax authorized by Chapter 453,
544	544	Transportation Code.
545	545	(e) An authority created under Chapter 451 or 452,
546	546	Transportation Code, is prohibited from imposing the tax provided
547	547	for by those chapters if within the boundaries of the authority
548	548	there is a municipality, other than a municipality included in a
549	549	transportation development district to which Chapter 328 applies,
550	550	that has adopted the additional sales and use tax provided for by
551	551	this section.
552	552	SECTION 4. This Act takes effect October 1, 2009.