By: Rodriguez H.B. No. 3448 A BILL TO BE ENTITLED AN ACT relating to local options regarding transportation and mobility improvement projects in certain counties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle B, Title 14, Local Government Code, is amended by adding Chapter 446 to read as follows: CHAPTER 446. LOCAL OPTIONS FOR TRANSPORTATION PROJECTS Sec. 446.001. SHORT TITLE. This chapter may be cited as the Texas Local Option Transportation Act. Sec. 446.002. DEFINITIONS. In this chapter: (1) "Department" means the Texas Department of Transportation. (2) "Metropolitan planning organization" has the meaning assigned by Section 472.031, Transportation Code. (3) "Transportation Provider" means a transit agency created or operating under Chapter 451, Transportation Code, transportation authority, regional mobility authority, city or county. Sec. 446.003. APPLICABILITY OF CHAPTER. This chapter applies only to a region served by a metropolitan planning organization with jurisdiction over a region in which: (1) the principal municipality has a population of more than 650,000; (2) all members of the governing body of the principal municipality are elected on an at-large basis; (3) a regional mobility authority has been created for the county in which the principal municipality is located under Chapter 370, Transportation Code. Sec. 446.004. REDUCTION PROHIBITED. (a) A county may not be penalized with a reduction in traditional transportation funding because of the imposition of a method of local option funding under this chapter. (b) The department may not reduce any allocation of traditional transportation funding to any of its districts because a district contains a county that imposes a method of local option funding under this chapter. Sec. 446.005. CALLING OF ELECTION. (a) The commissioners court of a county by order may call an election on the issue of authorizing one or more methods under Section 446.008 for one or more mobility or transportation improvement projects located in the county, including passenger rail, transit, freight rail, and roadway projects. (b) The commissioners court shall call an election on the issue described by Subsection (a) on receipt of: (1) a resolution requesting that the election be called adopted by the governing body of one or more municipalities that: (A) are located in the county; and (B) alone or together contain at least 60 percent of the county's total population. (c) The commissioners court may adopt an order under this section only after holding a public hearing on the issue. Sec. 446.006. ELECTION AND BALLOT LANGUAGE. (a) An order under Section 446.005 calling an election must: (1) specify each proposed method authorized by this chapter that the county intends to use to fund a mobility or transportation improvement project; (2) for each specified method, list the proposed rate or amount of the method to be used to fund capital construction of a mobility or transportation improvement project and, if applicable, a separate and corresponding proposed rate or amount for maintenance and operation of the project; (3) list and generally describe the proposed mobility or transportation improvement project to be constructed with each specified method; (4) list the estimated cost of and completion date for the capital construction of each proposed mobility or transportation improvement project; (5) if more than one mobility or transportation improvement project is proposed, specify the sequence and order in which the projects will be initiated and completed; and (6) list a non-binding date on which the proposed rate or amount for the capital construction of a mobility or transportation improvement project is expected to expire. (b) The ballot at an election held under this section must be printed to permit voting for or against the proposition: "Authorizing _______ (insert name of county) to _______ (insert a general and brief description of each proposed mobility or transportation improvement project) and to impose a _______ (insert each method of funding proposed for capital construction) at the rate or amount of _______ (insert each proposed rate or amount individually) for the purpose of financing the construction of the project and to impose a _______ (insert each method of funding proposed to be used exclusively for maintenance and operation, if applicable) at the rate or amount of _______ (insert proposed rate or amount) for the continuing maintenance and operation of the project. Construction of the project is estimated to be completed by the year _______ and the _______ (insert each method of funding proposed for capital construction) is expected to expire in the year _______ (list the year any bonds are expected to be retired)". (If more than one project is proposed on the ballot, insert name of the project to be completed first) _______ will be completed first, followed by _______ (insert name of project to be completed next until all projects listed on the ballot are listed in the order in which they will be completed). (c) Section 334.025 applies to an election called under Section 446.005. (d) An election called under Section 446.005 must be held on a uniform election date in May or November or on a general primary election date in March. (e) Notwithstanding Section 446.005, the commissioners court of a county may not call an election under that section within 12 months of an election previously called under that section. (f) If the commissioners court calls an election under this section on the receipt of valid resolutions under Section 446.005(b)(1), the ballot at the election must also state that the election was called for that reason. Sec. 446.007. PROJECT SELECTION; POLITICAL SUBDIVISION EQUITY. (a) Subject to the provisions of Subsection (c), the commissioners court of a county shall determine each mobility or transportation improvement project to be funded by a method authorized by this chapter and called pursuant to Section 446.005(a). (b) Subject to the provisions of Subsection (c), the governing body of a municipality shall determine each mobility project or transportation improvement project to be funded by a method authorized by this chapter and called pursuant to Section 446.005(b). (c) A mobility or transportation improvement project under this chapter may be funded only if the project is determined to be an improvement of passenger rail, transit, or freight rail mobility or a substantial improvement of the roadway system by the metropolitan planning organization for the regional transportation system in which the county is located. For projects funded by an election called pursuant to Section 446.005, the commissioners court shall use best efforts to ensure that each project selected for inclusion on a ballot has regional significance. (d) If a county imposing a method of local option funding under this chapter is designated as a nonattainment area within the meaning of Section 107(d) of the Clean Air Act (42 U.S.C. Section 7407), as amended, preference in project selection shall be given to projects that: (1) are exempt from federal transportation conformity requirements as listed in 40 C.F.R. Section 93.126; (2) are exempt from regional emissions analyses as listed in 40 C.F.R. Section 93.127; or (3) demonstrate quantifiable vehicle emission reductions. Sec. 446.008. METHOD OF FUNDING. (a) A proposition placed on a ballot under Section 446.006 may include any combination of the following methods of funding: (1) a county tax on the sale of motor vehicle fuel as annually adjusted under Section 446.013; (2) a local option mobility improvement fee, in an amount not to exceed $60; (3) a parking regulation and management fee in addition to current local parking fees in the amount of $.50 per hour for meter parking space and $1 per day for each structured parking space; (4) an annual motor vehicle emissions fee based on the amount of pollutants released by a vehicle, not to exceed $20; (5) a fee for the renewal of a driver's license issued to a county resident equal to the amount of the renewal fee of the license under Section 521.421, Transportation Code; (6) a new resident roadway impact fee, in an amount not to exceed $250; and (7) a mileage fee based on the amount of miles traveled by a motor vehicle registered to a county resident, not to exceed one cent per vehicle mile traveled. (b) Chapter 395 does not apply to a fee imposed under Subsection (a). (c) The local option mobility improvement fee authorized by Subsection (a)(2) shall be imposed on each person registering a motor vehicle in the county other than a person who initially registers a vehicle after acquiring the vehicle. (d) The new resident roadway impact fee authorized by Subsection (a)(6) shall be imposed on each person registering a motor vehicle previously registered in any county not participating in the local option transportation fund or another state or country and be collected at the time of registration. Sec. 446.009. IMPOSITION OF METHOD OF LOCAL OPTION FUNDING; LOW-INCOME RELIEF. (a) If a majority of the votes cast in an election held under this chapter approve any method or combination of methods of local option funding under this chapter, the commissioners court of the county by order shall impose and begin the collection of the approved method or methods of funding before the 91st day after the election date. (b) At a minimum, the order imposing the method or methods of local option funding shall specify: (1) the rate or amount of the method or methods approved at the election; and (2) the manner in which each method will be administered, collected, and enforced. (c) Section 502.108, Transportation Code, does not apply to money collected under this chapter. (d) For any funding method authorized by this chapter except a motor fuel tax, the commissioners court, after conducting a public hearing, may by order establish an exemption, waiver, or partial reduction for individuals of low or moderate income who demonstrate significant financial hardship. (e) A county may impose and collect a method approved at an election held under this chapter and may enter into a contract or interlocal agreement to implement the imposition or collection. Sec. 446.010. LOCAL OPTION TRANSPORTATION FUND. (a) All counties in which a method of local option funding authorized by this chapter is imposed, shall participate in a local option transportation fund to be administered by the local Metropolitan Planning Organization, under whose jurisdiction the county falls. (b) The county shall deposit in the local option transportation fund the proceeds of any method imposed by the county under this chapter and any other money required by law to be deposited in the fund. (c) The local Metropolitan Planning Organization shall establish a separate account in the fund for each approved mobility or transportation improvement project or portion thereof and, if applicable, a separate account for money to be used to fund maintenance and operations of the project. (d) Money in the fund is the property of the county depositing the money and may be spent only on mobility or transportation improvement projects located in the county, except that money may be spent on a project located outside the county, including a project located on or that serves an airport, if the commissioners court or the municipality placing the project on the ballot pursuant to Section 446.007 determines that the project benefits the region. Sec. 446.011. USE OF MONEY IN FUND. (a) The Metropolitan Planning Organization may use the money in the local option transportation fund to: (1) reimburse or pay the costs of planning, acquiring, establishing, developing, constructing, or renovating a mobility or transportation improvement project for which a method of local option funding was imposed under this chapter; (2) pay the principal of, interest on, or other costs relating to bonds or other obligations, refund bonds, notes or other obligations issued by a county, municipality or transportation provider for a mobility or transportation improvement project for which a method of local option funding was imposed under this subchapter; (3) refund the costs of operating or maintaining a mobility or transportation improvement project for which a method of local option funding was imposed under this subchapter operated by a transportation provider; or (4) enter into a contract or an interlocal agreement with a person, including a transportation provider, to: (A) provide mobility services for a project for which a method was imposed under this chapter, including passenger rail facilities and services; and (B) implement transportation projects for which a method was imposed under this chapter. (b) The bonds or other obligations and the proceedings authorizing the bonds or other obligations shall be submitted to the attorney general for review and approval as required by Chapter 1202, Government Code. (c) The bonds or other obligations must be payable from and secured by the money in the local option transportation fund. (d) The bonds or other obligations may mature serially or otherwise not more than 30 years from the date of issuance. (e) The bonds or other obligations are not a debt of and do not create a claim for payment against the revenue or property of the county other than the revenue sources pledged in connection with a mobility or transportation improvement project for which the bonds are issued. Sec. 446.012. TRANSIT OR TRANSPORTATION AUTHORITY SERVICES NOT AUTHORIZED. (a) A county or municipality acting under this chapter, may not directly operate or provide passenger rail services or any service expressly reserved by a transit authority created or operating under Chapter 451, Transportation Code, that serves the county. (b) This chapter does not authorize the creation of a transit or transportation authority. Sec. 446.013. ANNUAL RATE CHANGE ACCORDING TO PRODUCER PRICE INDEX. (a) In this section: (1) "Producer price index" means the producer price index for highway and street construction published by the United States Department of Labor. (2) "Producer price index percentage change" means the percentage increase or decrease, not to exceed five percent, in the producer price index of a given state fiscal year from the producer price index of the preceding state fiscal year. (b) On October 1 of each year, the rate of the tax imposed under Section 446.008(a)(1) is increased or decreased by an amount that is equal to the producer price index percentage change for the preceding fiscal year multiplied by the rate of the tax on August 1 of that year. SECTION 2. Section 502.003(a), Transportation Code, is amended to read as follows: (a) Except as provided by Subsection (b) and by Chapter 446, Local Government Code, a political subdivision of this state may not require an owner of a motor vehicle to: (1) register the vehicle; (2) pay a motor vehicle registration fee; or (3) pay an occupation tax or license fee in connection with a motor vehicle. SECTION 3. (a) Except as otherwise provided by this section, this Act takes effect January 1, 2010. (b) A motor vehicle fuel tax or a vehicle registration fee authorized by this Act may be imposed only if the constitutional amendment proposed by the 81st Legislature, Regular Session, 2009, allowing the expenditure of motor vehicle fuel taxes and vehicle registration fees to construct, maintain, and operate passenger rail, transit, and freight rail is approved by the voters. If that amendment is not approved by the voters, a motor vehicle fuel tax and a vehicle registration fee authorized by this Act may not be imposed.