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