CHAPTER 453. MUNICIPAL TRANSIT DEPARTMENTS

TRANSPORTATION CODE

TITLE 6. ROADWAYS

SUBTITLE K. MASS TRANSPORTATION

CHAPTER 453. MUNICIPAL TRANSIT DEPARTMENTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 453.001. DEFINITIONS. In this chapter:

(1) "Board" means the governing body of a transit department.

(2) "Mass transit" means the transportation of passengers and

hand-carried packages or baggage of a passenger by any means of

surface, overhead, or underground transportation, other than an

aircraft or taxicab.

(3) "Transit department" means a mass transit department created

under this chapter or under former Article 1118z, Revised

Statutes, enacted by Section 34, Article 1, Chapter 10, Acts of

the 69th Legislature, 3rd Called Session, 1986.

(4) "Transit department system" means:

(A) property owned or held by a municipality and used by a

transit department for mass transit purposes; and

(B) facilities necessary or convenient for:

(i) the use of or access to mass transit by persons or vehicles;

or

(ii) the protection or environmental enhancement of mass

transit.

(5) "Transportation disadvantaged" has the meaning assigned by

Section 451.001.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1038, Sec. 7, eff. Sept. 1,

2001.

Sec. 453.002. EXCLUDED MUNICIPALITIES. (a) This chapter does

not apply to a municipality any part of which is located in:

(1) a county that contains territory within the corporate limits

of a principal municipality that is a part of an authority

operating under Chapter 451 or 452; or

(2) a federal metropolitan statistical area or primary

metropolitan statistical area that contains a principal

municipality that is a part of an authority operating under

Chapter 451 or 452.

(b) For the purpose of this section "principal municipality" has

the meaning assigned by Section 451.001 or 452.001.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.003. CONTINUING APPLICATION OF CHAPTER. The

continuation of a transit department created in compliance with,

and for which a tax has been approved under, this chapter is not

affected by a later failure of the municipality that created the

transit department to meet a requirement of Section 453.002(a) or

453.051(a)(2).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER B. CREATION AND ADMINISTRATION OF TRANSIT DEPARTMENT

Sec. 453.051. CREATION OF TRANSIT DEPARTMENT. (a) The

governing body of a municipality, by ordinance or resolution, may

create a transit department if:

(1) the municipality operates a mass transportation system;

(2) the municipality has a population of 50,000 or more; and

(3) the governing body determines that the creation of a transit

department and operation of a transit department system would be

in the public interest and of benefit to persons residing in the

municipality.

(b) The jurisdiction of a transit department is coextensive with

the territory of the municipality that creates the transit

department.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.31(a), eff.

Sept. 1, 1997.

Sec. 453.052. ADMINISTRATION OF TRANSIT DEPARTMENT. The board

of a transit department shall administer and operate the transit

department.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.053. BOARD. (a) The board of a transit department

consists of the members of the governing body of the municipality

that creates the transit department.

(b) Service as a member of the board is an additional duty of

the office of a member of the governing body and is without

compensation.

(c) The presiding officers of the governing body of the

municipality that creates a transit department are the presiding

officers of the board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.054. BOARD MEETINGS. (a) The board shall hold at

least one regular meeting each month for the purpose of

transacting business of the transit department.

(b) The presiding officer may call a special meeting of the

board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.055. CONFLICTS OF INTEREST: TRANSIT DEPARTMENT

EMPLOYEES. An employee of a transit department may not have a

pecuniary interest in, or receive a benefit from, an agreement to

which the transit department is a party.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.056. TRANSFER OF MUNICIPAL RESOURCES TO TRANSIT

DEPARTMENT. (a) The governing body of a municipality may

transfer to a transit department created by the municipality:

(1) property and employees of a division of the municipality

that before the creation of the transit department was

responsible for municipal public transportation; and

(2) municipal funds that may be used for mass transit.

(b) The governing body may abolish or change the functions of

the municipal division formerly responsible for municipal public

transportation.

(c) If a transit department is required to be dissolved under

this chapter, the board, on dissolution of the transit

department, shall transfer to the municipality the funds,

property, and employees that were transferred to the transit

department under this section. The governing body of the

municipality may then recreate or change the duties of any

municipal division abolished or changed as a result of transfers

made under this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.057. INVESTMENTS. (a) A board may invest transit

department funds in any obligation, security, or evidence of

indebtedness in which the municipality for which the transit

department was created may invest municipal funds.

(b) In making an investment of transit department funds, a board

shall exercise the judgment and care, under the circumstances

prevailing at the time of making the investment, that persons of

ordinary prudence, discretion, and intelligence exercise in the

management of their own affairs in making a permanent and

nonspeculative disposition of their funds, considering the

probable income from the disposition and the probable safety of

their capital.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.058. ACCOUNTS AND DEPOSIT OF MONEY; DEDICATION OF

MONEY. (a) The board shall deposit all transit department

money, other than money invested as provided by Section 453.057,

with the treasurer of the creating municipality to the credit of

the accounts described by Subsection (b).

(b) All money received from the collection of the sales and use

tax under Subchapter H shall be credited to an account separate

from an account to which all other money governed by Subsection

(a) shall be credited.

(c) Sales and use tax collections under Subchapter H may be used

only for mass transit.

(d) The board may transfer money credited to the account that

does not contain sales and use tax collections back to the

municipality.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.059. LIABILITY OF CREATING MUNICIPALITY. A

municipality that creates a transit department is liable for an

expense the transit department incurs before the date a sales and

use tax is approved for the transit department under Subchapter

D, including the costs of holding the election.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.060. PROHIBITION OF CONSUMPTION OF ALCOHOLIC BEVERAGE.

(a) A board by resolution may prohibit the consumption of an

alcoholic beverage on property a transit department possesses or

controls. The resolution must describe with particularity each

place where consumption of an alcoholic beverage is prohibited.

(b) The transit department shall post a sign in each place where

consumption of an alcoholic beverage is prohibited under this

section. The sign must indicate that a person may not consume an

alcoholic beverage in that place.

(c) A person commits an offense if the person consumes an

alcoholic beverage in a place where the consumption of an

alcoholic beverage is prohibited under this section.

(d) An offense under this section is a Class C misdemeanor.

(e) In this section, "alcoholic beverage" has the meaning

assigned by Section 1.04, Alcoholic Beverage Code.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.32(a), eff. Sept.

1, 1997.

Sec. 453.061. TRANSPORTATION DISADVANTAGED. The board shall

consider the interests of the transportation disadvantaged in

making decisions under this chapter.

Added by Acts 2001, 77th Leg., ch. 1038, Sec. 8, eff. Sept. 1,

2001.

SUBCHAPTER C. POWERS OF TRANSIT DEPARTMENT

Sec. 453.101. POWERS APPLICABLE TO TRANSIT DEPARTMENT HAVING

TAX. Except for the administration of assets transferred under

Section 453.056, this subchapter applies only to a transit

department that has a local sales and use tax approved under

Subchapter D.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.102. ACQUIRING AND DISPOSING OF PROPERTY. (a) A

transit department may acquire, hold, use, sell, lease, or

dispose of property, including licenses, patents, rights, and

other interests, necessary, convenient, or useful for the full

exercise of any of its powers under this chapter.

(b) The transit department may acquire property described in

Subsection (a) in any manner, including by gift or devise.

(c) An acquisition made or other action taken under Subsection

(a) shall be in the name of the municipality that created the

transit department.

(d) A transit department may dispose of, by sale, lease, or

other conveyance:

(1) any property of the transit department not needed for the

efficient operation and maintenance of the transit department

system; and

(2) any surplus property not needed for its requirements or for

the purpose of carrying out its powers under this chapter.

(e) The lease of unneeded property under Subsection (c) must be

consistent with the efficient operation and maintenance of the

transit department system.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.103. TRANSIT DEPARTMENT SYSTEM. (a) A transit

department may in the municipality creating the transit

department:

(1) acquire, construct, own, operate, and maintain a transit

department system;

(2) use any public way; and

(3) construct, repair, and maintain a municipal street, as

authorized by the governing body of the municipality.

(b) In the exercise of a power under Subsection (a), a transit

department may relocate or reroute, or alter the construction of,

any public or private property, including:

(1) an alley, road, street, or railroad;

(2) an electric line and facility;

(3) a telegraph and telephone property and facility;

(4) a pipeline and facility; and

(5) a conduit and facility.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.104. FARES AND OTHER CHARGES. The board shall, after a

public hearing, impose reasonable and nondiscriminatory fares,

tolls, charges, rents, or other compensation for the use of the

transit department system sufficient to produce revenue, together

with receipts from taxes imposed by the transit department, in an

amount adequate to:

(1) pay all the expenses necessary to operate and maintain the

transit department system;

(2) pay when due the principal of and interest on, and sinking

fund and reserve fund payments agreed to be made with respect to,

all bonds that are issued by the board and payable in whole or

part from the revenue; and

(3) fulfill the terms of any other agreement with the holders of

bonds described by Subdivision (2) or with a person acting on

behalf of the bondholders.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.105. AGREEMENT WITH UTILITIES, CARRIERS. A transit

department may agree with a public or private utility,

communication system, common carrier, or transportation system

for:

(1) the joint use of the property of the agreeing entities in

the municipality; or

(2) the establishment of through routes, joint fares, or

transfers of passengers.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.106. CONTRACTS; ACQUISITION OF PROPERTY BY AGREEMENT.

(a) A transit department may contract with any person and may

accept a grant or loan from any person.

(b) A transit department may acquire rolling stock or other

property under a contract or trust agreement, including a

conditional sales contract, lease, and equipment trust

certificate.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.107. USE AND ACQUISITION OF PROPERTY OF OTHERS. (a) A

transit department may not alter or damage any property of this

state or a political subdivision of this state or owned by a

person rendering public services and may not disrupt services

being provided by others or inconvenience in any other manner an

owner of property, without first having obtained:

(1) the written consent of the owner; or

(2) the right from the governing body of the municipality to

take the action under the municipality's power of eminent domain.

(b) A transit department may agree with an owner of property to

provide for:

(1) a necessary relocation or alteration of property by the

owner or a contractor chosen by the owner; and

(2) the reimbursement by the transit department to the owner of

the costs incurred by the owner in making the relocation or

alteration.

(c) The transit department shall pay the cost of any relocation,

rerouting, or other alteration in the construction made under

this chapter and is liable for any damage to property occurring

because of the change.

(d) The department shall permit a transit department to

construct a separate area adjacent to a highway under the

jurisdiction of the department so that buses may safely board and

discharge passengers without impeding the flow of traffic. The

location, design, and construction standards of an area

constructed under this subsection must be approved by the

department to ensure the safety of the traveling public.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by:

Acts 2005, 79th Leg., Ch.

1281, Sec. 1, eff. June 18, 2005.

Sec. 453.108. ROUTES. A transit department shall determine each

route, including route changes, as the board considers advisable.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.109. TORT LIABILITY AND GOVERNMENTAL IMMUNITY. (a) A

transit department is a separate governmental unit for purposes

of Chapter 101, Civil Practice and Remedies Code, and operations

of a transit department are essential governmental functions and

not proprietary functions for all purposes, including the

purposes of that chapter.

(b) This chapter does not create or confer any governmental

immunity or limitation of liability on any entity that is not a

governmental unit, governmental entity or authority, or public

agency or a subdivision of one of those persons. In this

subsection "governmental unit" has the meaning assigned by

Section 101.001, Civil Practice and Remedies Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.110. TAX EXEMPTION. The assets of a transit department

are exempt from any tax of the state or a state taxing authority.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER D. TRANSIT DEPARTMENT TAX ELECTION

Sec. 453.151. BOARD TO ORDER TAX ELECTION. (a) If the board

determines that implementation of a mass transit plan developed

by the transit department is feasible, the board shall order an

election to approve a local sales and use tax at the rate

determined by the board under Section 453.401 unless the

municipality that created the transit department imposes an

additional sales and use tax under Section 321.101(b), Tax Code.

(b) The board may not order an election under this section to be

held on the same day as an election held by the creating

municipality to approve an additional sales and use tax under

Section 321.101(b), Tax Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.152. NOTICE OF ELECTION. (a) Notice of the election

must include a description of the nature and rate of the proposed

tax.

(b) The board shall send a copy of the notice to the Texas

Department of Transportation and to the comptroller.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.153. BALLOT PROPOSITION. At an election under this

subchapter, the ballots shall be prepared to provide for voting

for or against the proposition: "Levy of a proposed local sales

and use tax at the rate of _____ (insert appropriate rate)

percent."

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.154. RESULTS OF ELECTION. (a) If a majority of the

votes received at the election favor the proposition, the board

shall:

(1) record the result in its minutes; and

(2) adopt an order requiring implementation of the mass transit

plan.

(b) If a majority of the votes received at the election do not

favor the proposition, the board shall:

(1) record in its minutes an order declaring the result; and

(2) dissolve the transit department as soon as practicable.

(c) The board shall file a certified copy of an order under this

section with the Texas Department of Transportation, with the

comptroller, and in the deed records of the county.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER E. SPECIAL TRANSPORTATION PROGRAMS

Sec. 453.201. TRANSPORTATION FOR JOBS PROGRAM PARTICIPANTS. (a)

A transit department shall contract with the Texas Department of

Human Services to provide, in accordance with federal law,

transportation services to a person who:

(1) resides in the area served by the transit department;

(2) is receiving financial assistance under Chapter 31, Human

Resources Code; and

(3) is registered in the jobs opportunities and basic skills

training program under Part F, Subchapter IV, Social Security Act

(42 U.S.C. Section 682).

(b) The contract must include provisions to ensure that:

(1) the transit department is required to provide transportation

services only to a location:

(A) to which the person travels in connection with participation

in the jobs opportunities and basic skills training program; and

(B) that the transit department serves under the transit

department's authorized rate structure and existing services;

(2) the transit department is to provide directly to the Texas

Department of Human Services trip vouchers for distribution by

the Texas Department of Human Services to a person who is

eligible under this section to receive transportation services;

(3) the Texas Department of Human Services reimburses the

transit department for allowable costs, at the applicable federal

matching rate; and

(4) the Texas Department of Human Services may return

undistributed trip vouchers to the transit department.

(c) A transit department shall certify the amount of public

funds spent by the transit department under this section for the

purpose of obtaining federal funds under the jobs opportunities

and basic skills training program.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.202. WAIVER OF FEDERAL REQUIREMENTS. If, before

implementing Section 453.201, the Texas Department of Human

Services determines that a waiver or authorization from a federal

agency is necessary for implementation, the Texas Department of

Human Services shall request the waiver or authorization, and the

Texas Department of Human Services and a transit department may

delay implementing Section 453.201 until the waiver or

authorization is granted.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER G. BONDS

Sec. 453.301. DEFINITION. In this subchapter, "bond" includes a

note.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.302. POWER TO ISSUE BONDS. (a) A transit department

may issue revenue bonds at any time and for any amounts it

considers necessary or appropriate for:

(1) the acquisition, construction, repair, equipping,

improvement, or extension of its transit system; or

(2) the construction or general maintenance of streets of the

creating municipality.

(b) Bonds payable solely from revenues may be issued by

resolution of the board.

(c) Bonds, other than refunding bonds, any portion of which is

payable from tax revenue, may not be issued until authorized by a

majority vote of the voters of the municipality voting in an

election.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.303. BOND TERMS. (a) A transit department's bonds are

fully negotiable.

(b) The transit department may make the bonds redeemable before

maturity at the price and subject to the terms and conditions

that are provided in the resolution authorizing the bonds.

(c) A revenue bond indenture may limit a power of the transit

department provided by Sections 453.101-453.108 or 453.109(b) as

long as the bond containing the indenture is outstanding and

unpaid.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.304. SALE. Bonds may be sold at a public or private

sale as determined by the board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.305. APPROVAL; REGISTRATION. (a) A transit

department's bonds and the records relating to their issuance

shall be submitted to the attorney general for examination before

the bonds may be delivered.

(b) If the attorney general finds that the bonds have been

issued in conformity with the constitution and this chapter and

that the bonds will be a binding obligation of the issuing

transit department, the attorney general shall approve the bonds.

(c) After the bonds are approved by the attorney general, the

comptroller shall register the bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.306. INCONTESTABILITY. Bonds are incontestable after

they are:

(1) approved by the attorney general;

(2) registered by the comptroller; and

(3) sold and delivered to the purchaser.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.307. SECURITY PLEDGED. (a) To secure the payment of a

transit department's bonds, the transit department may:

(1) pledge all or part of revenue received from any tax that the

transit department may impose;

(2) pledge all or part of the revenue of the transit department

system; and

(3) mortgage all or part of the transit department system,

including any part of the system subsequently acquired.

(b) Under Subsection (a)(3), the transit department may, subject

to the terms of the bond indenture or resolution authorizing the

issuance of the bonds, encumber a separate item of the transit

department system and acquire, use, hold, or contract for any

property by lease, chattel mortgage, or other conditional sale,

including an equipment trust transaction.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.308. PLEDGE OF REVENUE LIMITED. The expenses of

operation and maintenance of a transit department system,

including salaries, labor, materials, and repairs necessary to

provide efficient service and every other proper item of expense,

are a first lien and charge against any revenue of a transit

department that is encumbered under this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.309. REFUNDING BONDS. A transit department may issue

refunding bonds for the purposes and in the manner authorized by

Chapter 1207, Government Code, or other law.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.397, eff. Sept.

1, 2001.

Sec. 453.310. BONDS AS AUTHORIZED INVESTMENTS. (a) A transit

department's bonds are authorized investments for:

(1) a bank;

(2) a trust company;

(3) a savings and loan association; and

(4) an insurance company.

(b) The bonds, when accompanied by all appurtenant, unmatured

coupons and to the extent of the lesser of their face value or

market value, are eligible to secure the deposit of public funds

of this state, a political subdivision of this state, and any

other political corporation of this state.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.311. INTEREST EXEMPTION. Interest on bonds issued by a

transit department is exempt from any tax of the state or a state

taxing authority.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER H. TAXES

Sec. 453.401. SALES AND USE TAX. (a) The board may impose for

the transit department a sales and use tax at a permissible rate

that does not exceed the rate approved by the voters at an

election under this chapter.

(b) The board by order may:

(1) decrease the rate of the sales and use tax for the transit

department to a permissible rate; or

(2) call an election for the increase or decrease of the sales

and use tax to a permissible rate.

(c) The permissible rates for a sales and use tax imposed under

this chapter are:

(1) one-quarter of one percent; and

(2) one-half of one percent.

(d) Chapter 322, Tax Code, applies to a transit department's

sales and use tax.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.402. MAXIMUM TAX RATE. (a) A board may not adopt a

sales and use tax rate, including a rate increase, that when

combined with the rates of all sales and use taxes imposed by all

political subdivisions of this state having territory in the

municipality exceeds two percent in any location in the

municipality.

(b) An election by a transit department to approve a sales and

use tax or increase the rate of the transit department's sales

and use tax has no effect if:

(1) the voters of the transit department approve the

department's sales and use tax rate or rate increase at an

election held on the same day on which the municipality or county

having territory in the jurisdiction of the transit department

adopts a sales and use tax or an additional sales and use tax;

and

(2) the combined rates of all sales and use taxes imposed by the

transit department and all political subdivisions of this state

would exceed two percent in any part of the territory in the

jurisdiction of the transit department.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.403. ELECTION TO CHANGE TAX RATE. (a) At an election

ordered under Section 453.401(b)(2), the ballots shall be

prepared to permit voting for or against the proposition: "The

increase (decrease) of the local sales and use tax rate of (name

of transit department) to (percentage)."

(b) The increase or decrease in the tax rate becomes effective

if it is approved by a majority of the votes cast.

(c) A notice of the election and a certified copy of the order

canvassing the election results shall be:

(1) sent to the Texas Department of Transportation and the

comptroller; and

(2) filed in the deed records of the county.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.404. SALES TAX: EFFECTIVE DATES. (a) A transit

department's sales and use tax takes effect on the first day of

the second calendar quarter that begins after the date the

comptroller receives a copy of the order required to be sent

under Section 453.154.

(b) An increase or decrease in the rate of a transit

department's sales and use tax takes effect on:

(1) the first day of the first calendar quarter that begins

after the date the comptroller receives the notice provided under

Section 453.403(c); or

(2) the first day of the second calendar quarter that begins

after the date the comptroller receives the notice if within 10

days after the date of receipt of the notice the comptroller

gives written notice to the presiding officer of the board that

the comptroller requires more time to implement tax collection

and reporting procedures.

(c) The presiding officer of the board of a transit department

that imposes a sales and use tax under this chapter shall send to

the comptroller by United States registered or certified mail a

certified copy of each order of the municipality that created the

transit department that adds territory to, or removes territory

from, the municipality unless notice of the boundary change is

given under Chapter 321, Tax Code. The order must give the

effective date of the change and be accompanied by a map of the

municipality clearly showing the territory added or removed. The

tax is effective in the added territory or is excluded from the

removed territory in the same manner as provided for a change of

tax rate in Subsection (b).

(d) If the notice of a boundary change is given as provided by

Chapter 321, Tax Code, the tax imposed under this chapter takes

effect at the same time that the municipal tax takes effect under

that notice.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER I. DISSOLUTION OF TRANSIT DEPARTMENT

Sec. 453.451. ELECTION TO DISSOLVE TRANSIT DEPARTMENT. (a) A

board may order an election on the question of dissolving the

transit department.

(b) The board shall dissolve the transit department if the

dissolution is approved by a majority of the votes cast.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.452. ELECTION PROCEDURES. (a) The provisions of

Subchapter D that relate to the notice and conduct of an election

under that subchapter apply to an election to dissolve a transit

department unless a different requirement is specified in this

subchapter.

(b) The board shall send a notice of the election to the Texas

Department of Transportation and the comptroller.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.453. BALLOTS; NOTICE OF ELECTION RESULTS. (a) At the

election, the ballots shall be prepared to provide for voting for

or against the proposition: "Dissolution of (name of transit

department)."

(b) The board shall send a certified copy of the order

canvassing the election results to the Texas Department of

Transportation and the comptroller and file a copy in the deed

records of the county.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 453.454. EFFECTIVE DATE OF DISSOLUTION. The repeal of a

transit department's sales and use tax under this subchapter

takes effect on:

(1) the first day of the first calendar quarter that begins

after the date the comptroller receives the notice of the

dissolution of the transit department; or

(2) the first day of the second calendar quarter that begins

after the date the comptroller receives the notice, if within 10

days after the date of receipt of the notice the comptroller

gives written notice to the presiding officer of the board that

the comptroller requires more time to implement the repeal of the

tax.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.