By: Watson S.B. No. 579 A BILL TO BE ENTITLED AN ACT relating to optional fees on registration of vehicles in certain counties to fund transportation projects; authorizing a fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 502.402(a), Transportation Code, as amended by Chapters 1273 (H.B. 1198) and 1277 (H.B. 1573), Acts of the 83rd Legislature, Regular Session, 2013, is reenacted to read as follows: (a) This section applies only to: (1) a county that: (A) borders the United Mexican States; and (B) has a population of more than 250,000; and (2) a county that has a population of more than 1.5 million that is coterminous with a regional mobility authority. SECTION 2. Subchapter H, Chapter 502, Transportation Code, is amended by adding Section 502.406 to read as follows: Sec. 502.406. OPTIONAL COUNTY FEE FOR PROJECTS OF REGIONAL MOBILITY AUTHORITIES. (a) This section applies only to the most populous county that is part of a regional mobility authority created under Chapter 370 with at least two counties, at least one of which has a population of more than one million. (b) The commissioners court of a county by order may impose an additional fee for a vehicle registered in the county. Except as provided by Subsection (c), the fee may not exceed $10. (c) The commissioners court of a county may increase the additional fee to $20 adjusted annually to reflect the percentage change during the preceding year in the construction cost index if approved by a majority of the qualified voters of the county voting on the issue at a referendum election, which the commissioners court may order and hold for that purpose. The ballot language must clearly state that the fee will increase annually in accordance with the construction cost index. For purposes of this subsection, the "construction cost index" means the most recent construction cost index published by Engineering News-Record as a measure of inflation or, if the construction cost index is not published, another similar index chosen by the commissioners court. (d) A vehicle that may be registered under this chapter without payment of a registration fee may be registered under this section without payment of the additional fee. (e) A fee imposed under this section may take effect and be removed in accordance with the requirements of Section 502.401. (f) The additional fee shall be collected for a vehicle when other fees imposed under this chapter are collected. The fee revenue collected shall be sent to the regional mobility authority in which the county is located to fund transportation projects that are consistent with the purposes specified by Section 7-a, Article VIII, Texas Constitution. Notwithstanding Section 370.251(i), before a county may impose a fee under this section, a regional mobility authority which is to receive fees from a county pursuant to this section must enter into an agreement with the county that identifies, or provides a process for identifying, transportation projects which will be funded by fee revenue. The agreement must be approved by the county commissioners court, the board of directors of the regional mobility authority, and a majority of the board members of the regional mobility authority who were appointed by the county which adopted or approved the fee. (g) Additional fees adopted by a county pursuant to this section may only be used by the regional mobility authority for projects located in the unincorporated and incorporated portions of the county that adopted the fee, unless, in the agreement required by Subsection (f), the county commissioners court and the regional mobility authority make findings that: (1) a project located wholly or partly within another county will improve the safety and mobility of residents located within the county that adopted the fee; and (2) the development of the transportation project will serve a public purpose. (h) The department shall adopt rules necessary to administer registration for a vehicle being registered in a county imposing a fee under this section. SECTION 3. This Act takes effect September 1, 2015.