CHAPTER 457. COUNTY MASS TRANSIT AUTHORITY

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Texas > Transportation-code > Title-6-roadways > 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;

(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.

(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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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."

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.

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.

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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!