82R5024 KLA-F By: Martinez Fischer H.B. No. 2016 A BILL TO BE ENTITLED AN ACT relating to the operation of certain rapid transit authorities, including the power to repeal the local sales and use tax exemption for telecommunications services and the use of revenue from the tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 322.109, Tax Code, is amended by amending Subsection (d) and adding Subsection (f) to read as follows: (d) The governing board of a taxing entity created under Chapter 451, Transportation Code, may not repeal the application of the exemption provided by Subsection (a) unless the repeal is first approved by a majority of the members of the governing body of each municipality that created the taxing entity, except as authorized by Subsection (f). A reinstatement of the exemption must be approved in the same manner. (f) The governing board of a taxing entity created before 1980 in which the principal municipality has a population of less than 1.5 million may not repeal the application of the exemption provided by Subsection (a) unless the repeal is first approved by a majority vote of a committee created under Section 451.061(d), Transportation Code. A reinstatement of the exemption must be approved in the same manner. Revenue resulting from a repeal of the application of the exemption by a taxing entity to which this subsection applies may be used only to provide transportation services to persons with disabilities as required by the federal Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.) or regulations adopted under that Act. SECTION 2. Section 451.061(d), Transportation Code, is amended to read as follows: (d) Except as provided by Subsection (d-1), the fares, tolls, charges, rents, and other compensation established by an authority in which the principal municipality has a population of less than 1.5 [1.2] million may not take effect until approved by a majority vote of a committee composed of: (1) five members of the governing body of the principal municipality, selected by that governing body; (2) three members of the commissioners court of the county having the largest portion of the incorporated territory of the principal municipality, selected by that commissioners court; and (3) three mayors of municipalities, other than the principal municipality, located in the authority, selected by: (A) the mayors of all the municipalities, except the principal municipality, located in the authority; or (B) the mayor of the most populous municipality, other than the principal municipality, in the case of an authority in which the principal municipality has a population of less than 300,000. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.