CHAPTER 457. COUNTY MASS TRANSIT AUTHORITY
TRANSPORTATION CODE
TITLE 6. ROADWAYS
SUBTITLE K. MASS TRANSPORTATION
CHAPTER 457. COUNTY MASS TRANSIT AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 457.001. DEFINITIONS. In this chapter:
(1) "Authority" means a mass transit authority created under
this chapter or former Article 1118z-1, Revised Statutes.
(2) "Board" means the governing body of an authority.
(3) "Bond" includes a note.
(4) "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.
(5) "Principal municipality" means the municipality of greatest
population in a county to which this chapter applies.
(6) "Transit authority system" means:
(A) property owned or held by an authority 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.
(7) "Unit of election" means a municipality, including the
principal municipality, or the unincorporated area of a county.
(8) "Transportation disadvantaged" has the meaning assigned by
Section 451.001.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997. Amended by Acts 2001, 77th Leg., ch. 1038, Sec. 9, eff.
Sept. 1, 2001.
Sec. 457.002. APPLICABILITY. This chapter applies only to a
county containing a municipality with a population of 500,000 or
more that has created a mass transit department under Chapter 453
or former Article 1118z, Revised Statutes.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
SUBCHAPTER B. CREATION AND ADMINISTRATION OF AUTHORITY
Sec. 457.051. CREATION OF AUTHORITY. (a) An authority is
created under this chapter if a resolution finding that the
creation of an authority would be in the public interest and a
benefit to persons residing in the county is adopted by:
(1) the county commissioners court;
(2) the governing body of the principal municipality; and
(3) the governing body of at least one municipality other than
the principal municipality.
(b) An authority may not be created if the rate of the sales and
use tax charged by the city transit department of the principal
municipality, when added to an existing sales and use tax
collected in the county other than by the principal municipality,
would exceed the limit imposed by Section 457.302.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.052. BOARD OF AUTHORITY. (a) The board of an
authority consists of seven members. A member of the board serves
without compensation but is entitled to reimbursement for
expenses incurred in board service. The board shall elect one of
its members as presiding officer. The members are appointed as
follows:
(1) two members by the county commissioners court;
(2) four members by the governing body of the principal
municipality; and
(3) one member by the governing bodies of all municipalities
that adopt the resolution described by Section 457.051.
(b) A member of the board serves at the pleasure of the
appointing entity.
(c) The board shall administer and operate the authority.
(d) The board shall hold at least one regular meeting each month
for the purpose of transacting business of the authority.
(e) The presiding officer may call a special meeting of the
board.
(f) The principal municipality shall make its appointments to
the board so that at least one of the appointees is designated to
represent the interests of the transportation disadvantaged.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997. Amended by Acts 2001, 77th Leg., ch. 1038, Sec. 10, eff.
Sept. 1, 2001.
Sec. 457.053. CONFIRMATION ELECTION. (a) If an authority is
created under Section 457.051, the board shall propose a service
plan and an initial tax rate for the authority. The initial tax
rate must be the same rate as that collected by the city transit
department created by the principal municipality.
(b) After proposing a service plan and an initial tax rate, the
board shall call an election in the county to approve the
creation of the authority and the tax rate. The election must be
held on a uniform election date but may not be held on the same
day as an election held by the county under Section 323.101, Tax
Code. The election is not held in the territory of the principal
municipality.
(c) Notice of the election must include a description of the
nature and rate of the proposed tax. The board shall send a copy
of the notice to the department and the comptroller.
(d) At the election, the ballots shall be printed to permit
voting for or against the following proposition: "The creation of
the (name of county) Transit Authority and the imposition of a
(rate of tax) percent sales and use tax in (name of county)
County."
(e) If a majority of the votes cast at the election approve the
proposition:
(1) the board shall record the result in its minutes and adopt
an order implementing the service plan; and
(2) on the day the sales and use tax takes effect in the
authority, the city transit department created by the principal
municipality under Chapter 453 or former Article 1118z, Revised
Statutes, is dissolved, and its assets, personnel, and
obligations are transferred to the authority.
(f) If less than a majority of the votes cast at the election
approve the proposition, the board shall adopt an order
dissolving the authority, and the city transit department of the
principal municipality is not affected.
(g) The jurisdiction of an authority is coextensive with the
territory of the county.
(h) The board shall file a certified copy of an order adopted
under Subsection (e)(1) or (f) with the department, with the
comptroller, and in the deed records of the county.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.054. CONFLICTS OF INTEREST: AUTHORITY EMPLOYEES. An
employee of an authority may not have a pecuniary interest in, or
receive a benefit from, an agreement to which the authority is a
party.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.055. TRANSFER OF RESOURCES BETWEEN MUNICIPALITY AND
AUTHORITY. (a) The governing body of a municipality may
transfer to an authority created under this chapter:
(1) property and employees of a division of the municipality
that before the creation of the authority 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 an authority is required to be dissolved under this
chapter, the board, on dissolution of the authority, shall
transfer to a municipality the funds, property, and employees
that were transferred to the authority under this section. The
governing body of the municipality may then re-create or change
the duties of any municipal division abolished or changed as a
result of transfers made under this section.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.056. INVESTMENTS. (a) A board may invest authority
funds in any obligation, security, or evidence of indebtedness in
which the principal municipality may invest municipal funds.
(b) In making an investment of authority 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.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.057. DEPOSIT OF MONEY. (a) The board shall designate
one or more banks as depositories for authority funds. All
authority money, other than money invested as provided by Section
457.056, shall be deposited in one or more of the authority's
depository banks.
(b) Funds in a depository, to the extent that those funds are
not insured by the Federal Deposit Insurance Corporation, shall
be secured in the manner provided by law for the security of
county funds.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.058. LIABILITY OF CREATING ENTITIES. The political
subdivisions that adopt a resolution under Section 457.051(a) are
liable for an expense the authority incurs before the date a
sales and use tax is approved for the authority under this
chapter, including the costs of holding the election.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
SUBCHAPTER C. POWERS OF AUTHORITY
Sec. 457.101. ACQUIRING AND DISPOSING OF PROPERTY. (a) An
authority 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 authority may acquire property described in Subsection
(a) in any manner, including by gift or devise.
(c) An authority may dispose of, by sale, lease, or other
conveyance:
(1) any property of the authority not needed for the efficient
operation and maintenance of the transit authority system; and
(2) any surplus property not needed for its requirements or for
the purpose of carrying out its powers under this chapter.
(d) The lease of unneeded property under Subsection (c) must be
consistent with the efficient operation and maintenance of the
transit authority system.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.102. TRANSIT AUTHORITY SYSTEM. (a) An authority may:
(1) acquire, construct, own, operate, and maintain a transit
authority system;
(2) use any public way; and
(3) construct, repair, and maintain a municipal street, as
authorized by the governing body of a municipality in the
authority.
(b) In the exercise of a power under Subsection (a), an
authority 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.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.103. 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 authority system sufficient to produce revenue, together
with receipts from taxes imposed by the authority, in an amount
adequate to:
(1) pay all the expenses necessary to operate and maintain the
transit authority 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.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.104. AGREEMENT WITH UTILITIES AND CARRIERS. An
authority 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 authority; or
(2) the establishment of through routes, joint fares, or
transfers of passengers.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.105. CONTRACTS; ACQUISITION OF PROPERTY BY AGREEMENT.
(a) An authority may contract with any person and may accept a
grant or loan from any person.
(b) An authority may acquire rolling stock or other property
under a contract or trust agreement, including a conditional
sales contract, lease, and equipment trust certificate.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.106. USE AND ACQUISITION OF PROPERTY OF OTHERS. (a)
An authority 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) An authority 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 authority to the owner of the costs
incurred by the owner in making the relocation or alteration.
(c) The authority 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.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.107. ROUTES. An authority shall determine each route,
including route changes, as the board considers advisable.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.108. TORT LIABILITY AND GOVERNMENTAL IMMUNITY. (a) An
authority is a separate governmental unit for purposes of Chapter
101, Civil Practice and Remedies Code, and operations of an
authority 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.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.109. TAX EXEMPTION. The assets of an authority are
exempt from any tax of the state or a state taxing authority.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
SUBCHAPTER D. SPECIAL TRANSPORTATION PROGRAMS
Sec. 457.151. TRANSPORTATION FOR JOBS PROGRAM PARTICIPANTS. (a)
An authority shall contract with the Texas Workforce Commission
to provide, in accordance with federal law, transportation
services to a person who:
(1) resides in the area served by the authority;
(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, as amended (42 U.S.C. Section 682).
(b) The contract must include provisions to ensure that:
(1) the authority 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 authority serves under the authority's authorized
rate structure and existing services;
(2) the authority is to provide directly to the Texas Workforce
Commission trip vouchers for distribution by the workforce
commission to a person who is eligible under this section to
receive transportation services;
(3) the workforce commission reimburses the authority for
allowable costs, at the applicable federal matching rate; and
(4) the workforce commission may return undistributed trip
vouchers to the authority.
(c) An authority shall certify the amount of public funds spent
by the authority under this section for the purpose of obtaining
federal funds under the jobs opportunities and basic skills
training program.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.152. WAIVER OF FEDERAL REQUIREMENTS. If, before
implementing Section 457.151, the Texas Workforce Commission
determines that a waiver or authorization from a federal agency
is necessary for implementation, the workforce commission shall
request the waiver or authorization, and the workforce commission
and an authority may delay implementing Section 457.151 until the
waiver or authorization is granted.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
SUBCHAPTER E. ALTERNATIVE FUEL USE PROGRAM
Sec. 457.201. PURCHASE AND PERCENT OF VEHICLES USING ALTERNATIVE
FUEL. (a) An authority may not purchase or lease a motor
vehicle that is not capable of using compressed natural gas or
another alternative fuel the use of which results in comparably
lower emissions of oxides of nitrogen, volatile organic
compounds, carbon monoxide, or particulates or combinations of
those materials.
(b) At least 50 percent of the fleet vehicles operated by an
authority must be capable of using compressed natural gas or
another alternative fuel.
(c) Repealed by Acts 2005, 79th Leg., Ch. 864, Sec. 5, eff.
September 1, 2005.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch.
864, Sec. 5, eff. September 1, 2005.
Sec. 457.202. ALTERNATIVE FUEL USE PROGRAM: EXCEPTIONS. (a) An
authority may make exceptions to the requirements of Section
457.201 if the authority certifies the facts described by
Subsection (b).
(b) A certification under this section must state that:
(1) the authority's vehicles will be operating primarily in an
area in which neither the authority nor a supplier has or can
reasonably be expected to establish a central refueling station
for compressed natural gas or other alternative fuel; or
(2) the authority is unable to acquire or be provided equipment
or refueling facilities necessary to operate vehicles using
compressed natural gas or other alternative fuel at a project
cost that is reasonably expected to result in no greater net cost
than the continued use of traditional gasoline or diesel fuel
measured over the expected useful life of the equipment or
facilities supplied.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.203. ALTERNATIVE FUEL EQUIPMENT AND FACILITIES. (a)
In addition to other methods authorized by law, an authority may
acquire or be provided equipment or refueling facilities by an
arrangement, including a gift or a loan, under a service contract
for the supply of compressed natural gas or other alternative
fuel.
(b) If an authority acquires or is provided equipment or
facilities as authorized by Subsection (a), the supplier is
entitled, under the supply contract, to recover the cost of
giving, loaning, or providing the equipment or facilities through
the fuel charges.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.204. ALTERNATIVE FUEL USE PROGRAM: VEHICLES COVERED AND
SAFETY. (a) In developing a compressed natural gas or other
alternative fuel use program, an authority should work with
vehicle manufacturers and converters, fuel distributors, and
others to specify the vehicles to be covered considering relevant
factors, including vehicle range, specialty vehicle uses, fuel
availability, vehicle manufacturing and conversion capability,
safety, and resale value.
(b) The authority may meet the percentage requirements of
Section 457.201 by:
(1) purchasing new vehicles; or
(2) converting existing vehicles, in conformity with federal and
state requirements and applicable safety laws, to alternative
fuel use.
(c) In purchasing, leasing, maintaining, or converting a vehicle
for alternative fuel use, the authority shall comply with all
applicable safety standards adopted by the United States
Department of Transportation or the Railroad Commission of Texas
or their successor agencies.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
SUBCHAPTER F. BONDS
Sec. 457.251. POWER TO ISSUE BONDS. (a) An authority 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 authority voting in an
election.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.252. BOND TERMS. (a) An authority's bonds are fully
negotiable.
(b) The authority may make the bonds redeemable before maturity
at the price and subject to the terms that are provided in the
resolution authorizing the bonds.
(c) A revenue bond indenture may limit a power of the authority
provided by this chapter as long as the bond containing the
indenture is outstanding and unpaid.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.253. SALE. Bonds may be sold at a public or private
sale as determined by the board.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.254. APPROVAL; REGISTRATION. (a) An authority'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
authority, the attorney general shall approve the bonds.
(c) After the bonds are approved by the attorney general, the
comptroller shall register the bonds.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.255. 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.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.256. SECURITY PLEDGED. (a) To secure the payment of
an authority's bonds, the authority may:
(1) pledge all or part of revenue received from any tax that the
authority may impose;
(2) pledge all or part of the revenue of the transit authority
system; and
(3) mortgage all or part of the transit authority system,
including any part of the system subsequently acquired.
(b) Under Subsection (a)(3), the authority may, subject to the
terms of the bond indenture or resolution authorizing the
issuance of the bonds, encumber a separate item of the transit
authority system and acquire, use, hold, or contract for any
property by lease, chattel mortgage, or other conditional sale,
including an equipment trust transaction.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.257. PLEDGE OF REVENUE LIMITED. The expenses of
operation and maintenance of a transit authority 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 an authority
that is encumbered under this chapter.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.258. REFUNDING BONDS. An authority may issue refunding
bonds for the purposes and in the manner authorized by Chapter
1207, Government Code, or other law.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.399,
eff. Sept. 1, 2001.
Sec. 457.259. BONDS AS AUTHORIZED INVESTMENTS. (a) An
authority'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.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.260. INTEREST EXEMPTION. Interest on bonds issued by
an authority is exempt from any tax of the state or a state
taxing authority.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
SUBCHAPTER G. TAXES
Sec. 457.301. SALES AND USE TAX. (a) The board may impose for
the authority 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 authority
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 an authority's sales and
use tax.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.302. 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
county exceeds two percent in any location in the county.
(b) An election by an authority to approve a sales and use tax
or increase the rate of the authority's sales and use tax has no
effect if:
(1) the voters of the authority approve the authority'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 authority 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
authority and all political subdivisions of this state would
exceed two percent in any part of the territory in the
jurisdiction of the authority.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.303. ELECTION TO CHANGE TAX RATE. (a) At an election
ordered under Section 457.301(b)(2), the ballots shall be printed
to permit voting for or against the proposition: "The increase
(decrease) of the local sales and use tax rate of (name of
authority) to (percentage)."
(b) The increase or decrease in the tax rate becomes effective
only 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 department and the comptroller; and
(2) filed in the deed records of the county.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.304. SALES TAX: EFFECTIVE DATES. (a) An authority'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
457.053(h).
(b) An increase or decrease in the rate of an authority'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 457.303(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.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
SUBCHAPTER H. DISSOLUTION OF AUTHORITY; WITHDRAWAL OF UNIT OF
ELECTION
Sec. 457.351. ELECTION TO DISSOLVE AUTHORITY. (a) A board may
order an election on the question of dissolving the authority.
(b) The board shall dissolve the authority if the dissolution is
approved by a majority of the votes cast.
(c) The provisions of Section 457.053 that relate to the notice
and conduct of an election under that section apply to an
election to dissolve an authority unless a different requirement
is specified in this section.
(d) The board shall send a notice of the election to the
department and the comptroller.
(e) At the election, the ballots shall be printed to permit
voting for or against the proposition: "Dissolution of (name of
authority)."
(f) The board shall send a certified copy of the order
canvassing the election results to the department and the
comptroller and file a copy in the deed records of the county.
(g) The repeal of an authority's sales and use tax under this
chapter 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 authority; 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.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.352. WITHDRAWAL FROM AUTHORITY. (a) The governing
body of a unit of election may order an election to withdraw the
unit from an authority.
(b) On the determination by a governing body of a unit of
election that a petition for withdrawal under this chapter is
valid, the governing body shall order an election to withdraw the
unit of election from the authority.
(c) An election to withdraw may not be ordered, and a petition
for an election to withdraw may not be accepted for filing, more
frequently than once during each period of 12 months preceding
the anniversary of the date of the election confirming the
authority.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.353. PETITION FOR WITHDRAWAL. (a) At the request of a
qualified voter of a unit of election in an authority, the
municipal secretary or other clerk or administrator of the unit
of election shall deliver to the voter, in the number requested,
petition signature sheets for a petition to withdraw from the
authority prepared, numbered, and authenticated by the municipal
secretary or other official. During the period when signatures on
the petition may be obtained, the official shall authenticate and
deliver additional petition signature sheets as requested by the
voter. Only one petition for withdrawal may be in circulation at
a time.
(b) Each sheet of a petition must have a heading in capital
letters as follows:
"THIS PETITION IS TO REQUIRE AN ELECTION TO BE HELD IN (name of
the unit of election) TO DISSOLVE (name of authority) IN (name of
the unit of election) SUBJECT TO THE CONTINUED COLLECTION OF
SALES TAXES FOR THE PERIOD REQUIRED BY LAW."
(c) In addition to the requirements of Section 277.002, Election
Code, to be valid a petition must:
(1) be signed on authenticated petition sheets by not less than
10 percent of the number of registered voters of the unit of
election as shown on the voter registration list of the county;
(2) be filed with the secretary, clerk, or administrator of the
unit of election not later than the 60th day after the date the
first sheet of the petition was received under Subsection (a);
(3) contain signatures that are signed in ink or indelible
pencil by the voter; and
(4) have affixed or printed on each sheet an affidavit that is
executed before a notary public by the person who circulated the
sheet and that is in the following form and substance:
"STATE OF TEXAS
"COUNTY OF _______________
"I, ____________________, affirm that I personally witnessed each
signer affix his or her signature to this page of this petition
for the dissolution of (name of authority) in (name of unit of
election). I affirm to the best of my knowledge and belief that
each signature is the genuine signature of the person whose name
is signed and that the date entered next to each signature is the
date the signature was affixed to this page.
_______________________
"Sworn to and subscribed before me this the ____ day of ___,
____.
(SEAL)
_______________________________
Notary Public, State of Texas"
(d) Each sheet of the petition must be filed under Subsection
(c)(2) at the same time as a single filing.
(e) The secretary, clerk, or administrator of a unit of election
in which a petition for withdrawal from an authority is filed
shall examine the petition and file with the governing body of
the unit a report stating whether the petition, in the opinion of
the secretary, clerk, or administrator, is valid.
(f) On receipt of a petition and a report under Subsection (e),
the governing body shall examine the petition to determine
whether the petition is valid. The governing body may hold public
hearings and conduct or order investigations as appropriate to
make the determination. The governing body's determination is
conclusive of the issues.
(g) The governing body of a unit of election that receives an
invalid petition shall reject the petition.
(h) A petition that is rejected is void, and the petition and
each sheet of the rejected petition may not be used in connection
with a subsequent petition.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.354. WITHDRAWAL ELECTION. (a) An election to withdraw
from an authority must be held on the first applicable uniform
election date occurring after the expiration of 12 calendar
months after the date the governing body orders the election.
(b) The governing body shall give notice of the election to the
board, the department, and the comptroller immediately on calling
the election.
(c) At the election, the ballots shall be printed to permit
voting for or against the proposition: "Shall the (name of
authority) be continued in (name of unit of election)?"
(d) If a majority of the votes received on the measure in an
election favor the proposition, the authority continues in the
unit of election.
(e) If less than a majority of the votes received on the measure
in the election favor the proposition, the authority ceases in
the unit of election on the day after the date of the canvass of
the election.
(f) On the effective date of a withdrawal from an authority:
(1) the authority shall cease providing transportation services
in the withdrawn unit of election; and
(2) the financial obligations of the authority attributable to
the withdrawn unit of election cease to accrue.
(g) Withdrawal from an authority does not affect the right of
the authority to travel through the territory of the unit of
election to provide service to a unit of election that is a part
of the authority.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.
Sec. 457.355. PROCEDURE AFTER WITHDRAWAL ELECTION. (a) Until
the amount of revenue from an authority's sales and use tax
collected in a withdrawn unit of election after the effective
date of withdrawal and paid to the authority equals the total
financial obligation of the unit, the sales and use tax continues
to be collected in the territory of the election unit.
(b) After the amount described by Subsection (a) has been
collected, the comptroller shall discontinue collecting the tax
in the territory of the unit of election.
(c) The total financial obligation of a withdrawn unit of
election to the authority is an amount equal to:
(1) the unit's apportioned share of the authority's outstanding
obligations; and
(2) the amount, not computed under Subdivision (1), that is
necessary and appropriate to allocate to the unit because of
financial obligations of the authority that specifically relate
to the unit.
(d) An authority's outstanding obligation under Subsection
(c)(1) is the sum of:
(1) the obligations of the authority authorized in the budget
of, and contracted for by, the authority;
(2) outstanding contractual obligations for capital or other
expenditures, including expenditures for a subsequent year, the
payment of which is not made or provided for from the proceeds of
notes, bonds, or other obligations;
(3) payments due or to become due in a subsequent year on notes,
bonds, or other securities or obligations for debt issued by the
authority;
(4) the amount required by the authority to be reserved for all
years to comply with financial covenants made with lenders, note
or bond holders, or other creditors or contractors; and
(5) the amount necessary for the full and timely payment of the
obligations of the authority, to avoid a default or impairment of
those obligations, including contingent liabilities.
(e) The apportioned share of a unit's obligation is the amount
of the obligation times a fraction, the numerator of which is the
number of inhabitants of the withdrawing unit of election and the
denominator of which is the number of inhabitants of the
authority, including the number of inhabitants of the unit.
(f) The board shall determine the amount of each component of
the computations required under this section, including the
components of the unit's apportioned share, as of the effective
date of withdrawal. The number of inhabitants shall be determined
according to the most recent and available applicable data of an
agency of the United States.
(g) The board shall certify to a withdrawn unit of election and
to the comptroller the total financial obligation of the unit to
the authority as determined under this section.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept.
1, 1997.