HBA-NRS H.B. 3323 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3323 By: Solomons Transportation 4/2/2001 Introduced BACKGROUND AND PURPOSE Due to the increase in the state's population, counties adjacent to other counties that contain a major municipality are adversely affected by an increase in traffic congestion on area roadways. To provide more efficient transportation and to reduce air pollution an alternative means of transportation in such counties needs to be developed. A county transportation authority could facilitate efforts to ameliorate traffic congestion and pollution. House Bill 3323 authorizes a county adjacent to a county with a population of more than million to create a county transportation authority. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3323 amends the Transportation Code to authorize a county adjacent to a county with a population of more than million to create a county transportation authority (authority). The bill authorizes the commissioners court of the county to create the authority by resolution or order or by a petition signed by at least five percent of registered voters in the county. The bill requires the commissioners court to schedule a public hearing upon receipt of the petition or upon passage of the resolution or order, and to provide notice of the meeting. The bill authorizes the commissioners court to adopt a resolution or order after the public hearing designating the name of the authority and a statement that requires all lands within the county to be part of the authority including a municipality partially therein. (SUBCHAPTER A, SECTION 3). The bill requires the commissioners court and certain municipalities to appoint an interim executive committee and sets forth the selection process and composition of the interim executive committee (SUBCHAPTER A, SECTION 4). The bill requires the interim executive committee to develop a service plan and proposed tax rate (SUBCHAPTER A, SECTION 5). Upon the approval by the interim executive committee of the service plan and tax rate, the bill requires a copy of the service plan and tax rate to be provided to the county commissioners court and the governing body of each municipality with a population in excess of 15,000. The bill prohibits a municipality that does not approve by resolution or order the service plan and tax rate from participating in the service plan or the confirmation election order for the authority (SUBCHAPTER A, SECTION 6). The bill requires the interim executive committee to provide notice to the commissioners court of the need to call a confirmation election. The bill requires the commissioners court and the governing body of each municipality that has approved the plan to order the confirmation election (SUBCHAPTER A, SECTION 7). The bill requires the confirmation election to be conducted so that votes are separately tabulated and canvassed showing the results of each separate municipality that passed a resolution or order approving the service plan and tax rate. In each municipality or in the county where a majority of votes were received in favor of the proposition, the authority is confirmed (SUBCHAPTER A, SECTION 8). The bill provides that an authority that has not been confirmed expires on the third anniversary of the date of the resolution or order initiating the process to create the authority (SUBCHAPTER A, SECTION 9). The bill provides that an authority may sue and be sued. The bill authorizes the authority to hold, use, sell, lease, dispose of, and acquire by any means, property and licenses, patents, rights and other interests necessary, convenient or useful to the exercise of power ascribed to the authority (SUBCHAPTER B, SECTION 3). The bill authorizes the authority to contract with any person, to accept a grant or loan from any person, and to enter into any interlocal agreement or other agreement with any municipality or other transportation or transit entity (SUBCHAPTER B, SECTION 4). The bill authorizes the authority to acquire, construct, develop, plan, own, operate and maintain a public transportation system in the territory of the authority including the territory of the political subdivision or municipality partially located in the territory of the authority (SUBCHAPTER B, SECTION 5). The bill authorizes a municipality, for two years after the confirmation of the authority to call an authorization election for the tax levy associated with the service plan developed by the interim executive committee, or a tax rate that has been modified by action of the executive committee after the confirmation election which creates the authority (SUBCHAPTER B, SECTION 6). H.B. 3323 authorizes the municipality to use any public way as it is necessary or useful in the construction, repair, maintenance or operation of the public transportation system. The bill authorizes the authority to acquire by eminent domain interest in real property including a fee simple interest and the use of air or subsurface space (SUBCHAPTER B, SECTION 7). The bill authorizes a municipality to agree with any other public or private utility communication system, common carrier, or transportation system for joint use of the property or fixtures of the agreeing entities and for the establishment of through routes, joint fares, or transfers of passengers between the agreeing entities. The bill requires the authority to impose reasonable and nondiscriminatory fares, tolls, charges, rents, and other forms of compensation for use of the public transportation system (SUBCHAPTER B, SECTION 8 ). The bill authorizes the authority to insure through purchased insurance policies and self insurance programs the legal liability of the authority and of its contractors and subcontractors relating to the acquisition, construction, and operation of the programs and facilities for personal and property damages and for officer and employer liability (SUBCHAPTER B, SECTION 9). The bill provides that the property revenue income of the authority is exempt from state and local taxes (SUBCHAPTER B, SECTION 10). If the authority constructs, or operates or contracts with another entity to construct, or operate a mass transit rail system, the authority is not subject to any state law regulating or governing the design, construction or operation of a railroad, railway, street railway, streetcar and urban railway (SUBCHAPTER B, SECTION 11). The bill sets forth provisions relating to executive committee membership and meetings (SUBCHAPTER B, SECTION 12). The bill provides that when an annexed territory becomes part of a municipality that is a part of the authority, the annexed territory becomes part of the authority (SUBCHAPTER C, SECTION 1). The bill provides that a municipality that is not part of the authority may be added to the authority if any part of the municipality is located within the territory of the authority and an election on whether the territory of the municipality outside of the authority should be added to the authority ordered by the governing body of the municipality results in a majority favoring the measure (SUBCHAPTER C, SECTION 2). The bill authorizes a municipality that has a population of more than 500,000 and is located in a county with a population of more than 1,000,000 to participate in a separate transit authority or to participate in both the original and new authorities (SUBCHAPTER C, SECTION 3). The bill provides that sales tax and use tax imposed by the authority takes effect in a territory added to the authority on the first day of the calendar quarter that occurs after the addition of the territory (SUBCHAPTER C, SECTION 4). The bill requires that a service plan developed by the executive committee consider the regional transportation plan for the county, traffic counts, alternative modes of public transportation, the most efficient collection points, estimates of capital expenditures, and various forms of public transportation consistent with the use of determined routes (SUBCHAPTER C, SECTION 5). The bill provides that administrative costs should be calculated separately and certain load factors should be considered (SUBCHAPTER C, SECTION 6). The bill authorizes the authority to issue bonds when necessary for the construction, repair, and improvement of the public transportation system of the authority (SUBCHAPTER D, SECTION 1). The bill authorizes an executive committee to impose sales and use tax at certain rates for use by the authority after approval by election (SUBCHAPTER E, SECTION 1). The bill requires the authority to prepare an annual audit conducted by an independent certified public accountant (SUBCHAPTER F, SECTION 1). EFFECTIVE DATE September 1, 2001.