H.B. No. 2682
 
 
 
 
AN ACT
  relating to the administration and powers of a coordinated county
  transportation authority.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 460.054(c), Transportation Code, is
  amended to read as follows:
         (c)  The members described by Subsection (b)(3) shall be
  designated as follows:
               (1)  each municipality with a population of more than
  500 but less than 12,000 located in the county shall nominate one
  person using a nomination form sent to the governing body of the
  municipality by mail;
               (2)  the county judge shall add the names on the
  nomination forms that are received before the 31st day after the
  date of the mailing of the nomination forms;
               (3)  each municipality with a population of more than
  500 but less than 12,000 located in the county is entitled to cast
  one vote;
               (4)  only ballots returned to the county judge on or
  before a predetermined date shall be counted;
               (5)  the county judge shall designate the three persons
  with the highest plurality vote as members of the interim executive
  committee; and
               (6)  if three members are not designated by this
  process, the county judge shall name the balance of the members of
  the interim executive committee described by Subsection (b)(3).
         SECTION 2.  Section 460.059(d), Transportation Code, is
  amended to read as follows:
         (d)  On adoption of the order confirming the authority, the
  interim executive committee becomes the board of directors
  [executive committee] of the authority.
         SECTION 3.  Section 460.104, Transportation Code, is amended
  by adding Subsection (d) to read as follows:
         (d)  An authority may acquire rolling stock or other real or
  personal property under a contract or trust agreement, including a
  conditional sales contract, a lease, a lease-purchase agreement, or
  an equipment trust.
         SECTION 4.  Sections 460.106(a) and (b), Transportation
  Code, are amended to read as follows:
         (a)  An authority may call an authorization election for a
  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 authority [executive committee] at any time after the
  confirmation election that creates the authority.
         (b)  The authority [executive committee] in ordering the
  authorization election shall submit to the qualified voters in the
  county located in an area participating in the authority the
  following proposition:
         "Shall the (name of authority) levy of a proposed tax, not to
  exceed (rate), be authorized?"
         SECTION 5.  The heading to Subchapter D, Chapter 460,
  Transportation Code, is amended to read as follows:
         SUBCHAPTER D.  PROVISIONS APPLICABLE TO BOARD OF DIRECTORS
  [EXECUTIVE COMMITTEE]
         SECTION 6.  Section 460.201(a), Transportation Code, is
  amended to read as follows:
         (a)  Each member of the board of directors [executive
  committee] serves a term of two years.
         SECTION 7.  Section 460.202, Transportation Code, is amended
  to read as follows:
         Sec. 460.202.  ELIGIBILITY.  To be eligible for appointment
  to the board of directors [executive committee], a person must have
  professional experience in the field of transportation, business,
  government, engineering, or law.
         SECTION 8.  Section 460.203, Transportation Code, is amended
  to read as follows:
         Sec. 460.203.  CONFLICTS OF INTEREST.  Members of the board
  of directors [executive committee] and officers and employees of
  the authority are subject to Chapter 171, Local Government Code.
         SECTION 9.  Sections 460.204(a) and (c), Transportation
  Code, are amended to read as follows:
         (a)  The board of directors [executive committee] shall meet
  at least monthly to transact the business of an authority.
         (c)  The board of directors [executive committee] by
  resolution shall:
               (1)  set the time, place, and date of regular meetings;
  and
               (2)  adopt rules and bylaws as necessary to conduct
  meetings.
         SECTION 10.  Section 460.205, Transportation Code, is
  amended to read as follows:
         Sec. 460.205.  QUORUM; VOTING REQUIREMENTS.  (a)  Five
  members constitute a quorum of the board of directors [executive
  committee].
         (b)  An action of the board of directors [executive
  committee] requires a vote of a majority of the members present
  unless the bylaws require a larger number for a specific action.
         SECTION 11.  Section 460.302, Transportation Code, is
  amended to read as follows:
         Sec. 460.302.  ADDITION OF MUNICIPALITY BY ELECTION.  (a)
  The territory of a municipality that is not initially part of an
  authority may be added to an authority if:
               (1)  any part of the municipality is located in the
  territory of the authority;
               (2)  the governing body of the municipality requests in
  writing that the authority call [orders] an election under this
  section on whether the territory of the municipality should be
  added to the authority, the authority calls the election, and
  submits to the qualified voters of the municipality the following
  proposition: "Shall the (name of authority) levy of a proposed tax,
  not to exceed (rate), be authorized?"; and
               (3)  a majority of the votes received in the election
  favor the measure.
         (b)  The governing body of the authority [municipality]
  shall canvass the returns, declare the result, and notify the
  comptroller and the department [certify to the executive committee
  the result of an election in which the addition is approved].
         (c)  If approval by a municipality would cause the tax in a
  municipality that has imposed a dedicated or special-purpose sales
  and use tax to exceed the limit imposed under Section 460.552(a),
  the governing body of the municipality may request in writing that
  an authority call an election under this section on whether the
  territory of the municipality should be added with a combined
  ballot proposition to lower or repeal any dedicated or
  special-purpose sales and use tax.  A combined ballot proposition
  under this subsection:
               (1)  shall contain substantially the same language, if
  any, required by law for the lowering, repealing, raising, or
  adopting of each tax as appropriate; and
               (2)  that receives a negative vote shall have no effect
  on either the sales tax to be lowered or repealed by the proposition
  or the sales tax to be raised or adopted by the proposition.
         (c-1)  This section shall not be construed to change the
  substantive law of any sales tax, including the allowed maximum
  rate or combined rate of local sales taxes.
         (d)  At any time after the date of an election approving the
  addition of a municipality under this section, the authority and
  the governing body of the municipality may enter into an interlocal
  agreement that provides for the eventual admission of the
  municipality to the territory of the authority and for the payment
  of proportional capital recovery fees as determined by the
  authority. The authority is not required to provide transportation
  services to the municipality until any capital recovery fees
  provided for in the agreement are paid to the authority.
         (e)  A sales and use tax imposed by an authority takes effect
  in a municipality added to the authority under this section on the
  first day after the expiration of the first complete calendar
  quarter that begins after the date the comptroller receives a
  certified copy of an order adopted by the authority relating to the
  addition of the municipality or other notice of the addition of the
  municipality, accompanied by a map of the authority clearly showing
  the territory added.
         (f)  In this section, "dedicated or special-purpose sales
  and use tax" means a tax referred to or described by:
               (1)  Section 4A or 4B, Development Corporation Act of
  1979 (Article 5190.6, Vernon's Texas Civil Statutes);
               (2)  Section 379A.081, Local Government Code;
               (3)  Section 363.055, Local Government Code; or
               (4)  Section 327.003, Tax Code.
         SECTION 12.  Section 460.304(a), Transportation Code, is
  amended to read as follows:
         (a)  Except as provided by Section 460.302(e), a [A] sales
  and use tax imposed by an authority takes effect in territory added
  to the authority under this subchapter on the first day of the first
  calendar quarter that begins after the addition of the territory.
         SECTION 13.  Section 460.401, Transportation Code, is
  amended to read as follows:
         Sec. 460.401.  MANAGEMENT OF AUTHORITY.  The board of
  directors [executive committee] is responsible for the management,
  operation, and control of the authority and its properties.
         SECTION 14.  Sections 460.402(a) and (c), Transportation
  Code, are amended to read as follows:
         (a)  The [executive committee of an] authority shall have an
  annual audit of the affairs of the authority prepared by an
  independent certified public accountant.
         (c)  On receipt of the audit prescribed by Subsection (a),
  the board of directors [executive committee] shall address on the
  record any deficiencies noted in the report at a regular meeting of
  the board of directors [executive committee].
         SECTION 15.  Section 460.403, Transportation Code, is
  amended to read as follows:
         Sec. 460.403.  BUDGET.  The board of directors [executive
  committee] shall prepare an annual budget.
         SECTION 16.  Section 460.406, Transportation Code, is
  amended by amending Subsection (c) and by adding Subsection (d) to
  read as follows:
         (c)  The board of directors [executive committee] may
  authorize the negotiation of a contract without competitive sealed
  bids or proposals if:
               (1)  the aggregate amount involved in the contract is
  $25,000 or less;
               (2)  the contract is for construction for which not
  more than one bid or proposal is received;
               (3)  the contract is for services or property for which
  there is only one source or for which it is otherwise impracticable
  to obtain competition;
               (4)  the contract is to respond to an emergency for
  which the public exigency does not permit the delay incident to the
  competitive process;
               (5)  the contract is for personal or professional
  services or services for which competitive bidding is precluded by
  law; [or]
               (6)  the contract, without regard to form and which may
  include bonds, notes, loan agreements, or other obligations, is for
  the purpose of borrowing money or is a part of a transaction
  relating to the borrowing of money, including:
                     (A)  a credit support agreement, such as a line or
  letter of credit or other debt guaranty;
                     (B)  a bond, note, debt sale or purchase, trustee,
  paying agent, remarketing agent, indexing agent, or similar
  agreement;
                     (C)  an agreement with a securities dealer,
  broker, or underwriter; and
                     (D)  any other contract or agreement considered by
  the board of directors [executive committee] to be appropriate or
  necessary in support of the authority's financing activities;
               (7)  the contract is for work that is performed and paid
  for by the day as the work progresses;
               (8)  the contract is for the purchase of land or a
  right-of-way;
               (9)  the contract is for the purchase of personal
  property sold:
                     (A)  at an auction by a state licensed auctioneer;
                     (B)  at a going out of business sale held in
  compliance with Subchapter F, Chapter 17, Business & Commerce Code;
  or
                     (C)  by a political subdivision of this state, a
  state agency, or an entity of the federal government;
               (10)  the contract is for services performed by blind
  or severely disabled persons;
               (11)  the contract is for the purchase of electricity;
  or
               (12)  the contract is one awarded for alternate project
  delivery under Sections 271.117-271.119, Local Government Code.
         (d)  For the purposes of entering into a contract authorized
  by Subsection (c)(12), an authority is considered a "governmental
  entity" as defined by Section 271.111, Local Government Code.
         SECTION 17.  Section 460.504, Transportation Code, is
  amended to read as follows:
         Sec. 460.504.  SALE.  An authority's bonds may be sold at a
  public or private sale as determined by the board of directors
  [executive committee] to be the more financially beneficial.
         SECTION 18.  Section 460.508(c), Transportation Code, is
  amended to read as follows:
         (c)  The Texas [Natural Resource Conservation] Commission on
  Environmental Quality is not required to approve notes issued under
  this section.
         SECTION 19.  Sections 460.551(a), (b), (c), and (d),
  Transportation Code, are amended to read as follows:
         (a)  The board of directors [executive committee] may impose
  for an authority a sales and use tax at the rate of:
               (1)  one-quarter of one percent;
               (2)  three-eighths of one percent;
               (3)  one-half of one percent;
               (4)  five-eighths of one percent;
               (5)  three-quarters of one percent;
               (6)  seven-eighths of one percent; or
               (7)  one percent.
         (b)  The imposition of an authority's sales and use tax must
  be approved at an election conducted in the manner provided by this
  chapter and may not be imposed in an area that has not confirmed the
  authority.
         (c)  A sales and use tax may be imposed, as prescribed by this
  section, by a municipality that participates in a transportation or
  transit authority other than an authority created under this
  chapter if:
               (1)  the combined rates of all sales and use taxes
  imposed in the municipality does not exceed two percent; and
               (2)  the ballot of the authorization vote for the sales
  and use tax reads:
         "(Name of city) already imposes a sales and use tax for
  participation in the (name of transportation or transit authority)
  [transportation authority]. The proposed sales and use tax is
  solely for the benefit of, and will be dedicated to, the (name of
  authority created under this chapter) [county transportation
  authority]."
         (d)  The authority shall impose a sales and use tax at a
  minimum uniform rate as determined by the board of directors
  [executive committee] if the tax is approved at an election in an
  area that has confirmed the authority.
         SECTION 20.  Section 460.554, Transportation Code, is
  amended to read as follows:
         Sec. 460.554.  RATE DECREASE.  The board of directors
  [executive committee] by order may direct the comptroller of public
  accounts to collect the authority's sales and use tax at a rate that
  is lower than the rate approved by the voters at the confirmation
  hearing if the board of directors [executive committee] determines
  that it is in the best interest of the authority.
         SECTION 21.  Section 321.107, Tax Code, is amended to read as
  follows:
         Sec. 321.107.  ADMINISTRATION OF LOCAL SALES AND USE TAXES
  IMPOSED BY OTHER GOVERNMENTAL ENTITIES.  The imposition,
  computation, administration, enforcement, and collection of any
  local sales and use tax imposed by any other local governmental
  entity is governed by this chapter, except as otherwise provided by
  law. In this section, "other local governmental entity" includes
  any governmental entity created by the legislature that has a
  limited purpose or function, that has a defined or restricted
  geographic territory, and that is authorized by law to impose a
  local sales and use tax. The term does not include a county, county
  health services district, county landfill and criminal detention
  center district, metropolitan transportation authority,
  coordinated county transportation authority, economic development
  district, crime control district, hospital district, emergency
  services district, or library district.
         SECTION 22.  Section 460.201(b), Transportation Code, is
  repealed.
         SECTION 23.  (a)  An election called and conducted
  authorizing the levy of a sales and use tax, where a majority of
  votes received favored the authorization of a sales and use tax levy
  by or for the benefit of an authority created under Chapter 460,
  Transportation Code, that occurred before the effective date of
  this Act, is validated. Any acts or proceedings of an authority are
  validated as of the dates they occurred.
         (b)  This Act does not validate any governmental act or
  proceeding that, under the law of this state at the time the act or
  proceeding occurred, was a misdemeanor or a felony.
         SECTION 24.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2682 was passed by the House on April
  27, 2007, by the following vote:  Yeas 133, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2682 was passed by the Senate on May
  15, 2007, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor