89R11550 SRA-F By: Villalobos H.B. No. 4576 A BILL TO BE ENTITLED AN ACT relating to the operation of certain metropolitan transit authorities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 162.356(b), Tax Code, is amended to read as follows: (b) The exemption provided by Subsection (a)(11) does not apply to compressed natural gas or liquefied natural gas delivered into the fuel supply tank of a motor vehicle from a refueling facility accessible to motor vehicles other than: (1) motor vehicles [those] described by Subsection (a)(11)(A); or (2) motor vehicles exempt from the tax imposed by this subchapter under another provision of Subsection (a), if the refueling facility is operated by a metropolitan rapid transit authority operating under Chapter 451, Transportation Code, in which the principal municipality has a population of less than 320,000. SECTION 2. Section 451.061(d-1), Transportation Code, is amended to read as follows: (d-1) The establishment of or a change to fares, tolls, charges, rents, and other compensation by an authority [confirmed before July 1, 1985,] in which the principal municipality has a population of less than 1.3 million[,] takes effect immediately on approval by a majority vote of the board, except that the establishment of or a change to a single-ride base fare takes effect on the 60th day after the date the board approves the fare or change to the fare, unless the policy board of the metropolitan planning organization that serves the area of the authority disapproves the fare or change to the fare by a majority vote. SECTION 3. Subchapter C, Chapter 451, Transportation Code, is amended by adding Section 451.1025 to read as follows: Sec. 451.1025. SELECTION AND RETENTION OF INSURANCE BROKER. (a) This section applies only to an authority in which the principal municipality has a population of less than 320,000. (b) The board may select a licensed insurance agent for the authority as the sole broker of record to obtain proposals and coverages for insurance, including in areas of risk relating to public official liability, property, casualty, workers' compensation, and specific and aggregate stop-loss coverage insurance for self-funded health care. (c) The board may retain a broker of record selected under this section only on a fee basis paid by the authority. A broker of record retained under this section may not directly or indirectly receive any other remuneration, compensation, or other form of payment from any other source for the placement of insurance business under the broker of record contract with the board. (d) A broker of record retained under this section may not submit any insurance carrier proposal to the board or direct any authority insurance business to an insurance carrier if the broker has a business relationship or proposed business relationship with the carrier, including an appointment, unless the broker first discloses the nature of that relationship or proposed relationship, in writing, to the board. (e) A broker who violates this section is subject to any disciplinary remedy available under Chapter 82, Insurance Code, or Section 4005.102, Insurance Code, including license revocation and fine. SECTION 4. Section 451.506, Transportation Code, is amended by adding Subsection (b-1) to read as follows: (b-1) This subsection applies only to an individual serving on the board of an authority in which the principal municipality has a population of less than 320,000. For purposes of Subsection (b), in determining the length of service on the board of an individual to whom this subsection applies, the following periods of service are excluded: (1) a period of service that results from the individual's appointment to fill an unexpired term that occurs before the individual's first appointment to a full term on the board; or (2) a period of service on the board that is attributable to a term shortened by the individual's appointment as the board's presiding officer under Section 451.502(e). SECTION 5. 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, 2025.