81R8101 MTB-D By: Truitt H.B. No. 9 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. Sec. 446.003. APPLICABILITY OF CHAPTER. This chapter applies only to a county: (1) that is located in a region served by a metropolitan planning organization that serves two adjacent counties that each have a population of one million or more; and (2) for which a regional mobility authority has been created under Chapter 370, Transportation Code, and in which the principal municipality has a population of more than 600,000. 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, roadway, and freight rail 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 bodies of at least two municipalities that: (A) are located partially or completely in the county; and (B) contain at least 60 percent of the county's total population; or (2) a petition requesting that the election be called signed by a number of registered voters of the county equal to at least 10 percent of the total number of votes cast in the county for all candidates for governor in the most recent gubernatorial general election. (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 the 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. Sec. 446.007. PROJECT SELECTION; POLITICAL SUBDIVISION EQUITY. (a) Except as provided by Subsection (b), the commissioners court of a county shall determine each mobility or transportation improvement project to be funded by a method authorized by this chapter. (b) The commissioners court may fund a mobility or transportation improvement project under this chapter only if the project is determined to be necessary and appropriate by the metropolitan planning organization for the region in which the county is located. The commissioners court shall use best efforts to ensure that each project selected for inclusion on a ballot benefits contributing political subdivisions in approximate proportion to the amount of revenue collected from each method of local option funding in the political subdivision. 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, at a rate not to exceed 10 cents per gallon and 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 the amount of $1 per hour per vehicle use of a parking space; (4) an annual motor vehicle emissions fee based on the amount of pollutants released by a vehicle, not to exceed $15; (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; and (6) a new resident roadway impact fee, in an amount not to exceed $250. (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 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) A county may not impose a method of local option funding after bonds or other obligations are paid in full. (d) Section 502.108, Transportation Code, does not apply to money collected under this chapter. (e) For any method authorized by this chapter, 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. (f) 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) A county in which a method of local option funding authorized by this chapter is imposed by order shall establish a local option transportation fund. (b) The county shall deposit in the 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 county shall establish a separate account in the fund for each method imposed for a mobility or transportation improvement project 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 the commissioners court of a county by order may authorize money to be spent on a project located outside the county, including a project located on or that serves an airport, if the court determines that the project benefits the region and selects the project under Section 446.007. Sec. 446.011. USE OF MONEY IN FUND. (a) A county may use 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 issued by the county or to refund bonds, notes, or other obligations issued by a transit or transportation authority created or operating under Chapter 451, 452, or 460, Transportation Code, for a mobility or transportation improvement project for which a method of local option funding was imposed under this chapter; (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 chapter operated by a transit or transportation authority created or operating under Chapter 451, 452, or 460, Transportation Code; or (4) enter into a contract or an interlocal agreement with a person, including a transportation authority or 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, including roadways, 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, acting under this chapter, may not directly operate or provide passenger rail services or any service expressly reserved by a transit or transportation authority created or operating under Chapter 451, 452, or 460, 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. This Act takes effect January 1, 2010.