HBA-LCA H.B. 2245 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2245
By: Krusee
Urban Affairs
3/30/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, when a city or territorial unit  withdraws from a mass
transit authority, the board of the transit authority (board) may determine
the net financial obligation of the unit without input from the withdrawing
unit (unit).  

H.B. 2245 requires that the board and unit jointly determine the amount of
each component of the computation determining the net financial obligation,
and requires the comptroller of public accounts to determine the amount of
each component if the board and unit fail to agree.  This bill also
provides that a judicial proceeding to review or compel a decision against
the board may be brought only in a court in the county in which the
majority of the population of the withdrawing unit resides. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 451.611, Transportation Code, by amending
Subsections (a), (b), and (d) and adding Subsections (e) and (f), as
follows: 

(a)  Makes conforming changes.

(b)  Makes conforming changes.

(d)  Makes conforming changes.

(e)  Requires the comptroller, if the governing body of a rapid transit
authority (board) of the governing body of an election unit  that withdraws
from the authority (unit) fail to agree on the amount of each component of
the computations required under this section (Determination of Total Amount
of Financial Obligations of Withdrawn Unit) before the 91st day after the
date returns from the election to withdraw are canvassed, to determine the
amount of each component.  Requires the determination within 180 days of
the canvass.  

(f) Provides that a judicial proceeding to review or compel determination
under this section may only be brought only in a court in the county in
which a majority of the territory of the unit of election is located. 

SECTION 2.  Amends Section 451.612(a), Transportation Code, to make a
conforming change. 

SECTION 3.  Amends Section 451.614, Transportation Code, by amending
Subsection (c) and adding Subsection (d), as follows: 

(c)  Requires the comptroller to return to the governing body, within 90
days of a determination under Section 451.611, the interest, computed at a
rate established under Section 304.003, Finance Code (Judgment Interest
Rate: Interest Rate Not in Contract) on the amount by which the unit's
apportioned share of the authority's assets exceeds its gross  financial
obligation (amount), in addition to the amount.  Requires the interest to
be calculated beginning on the first day after the date the results of the
withdrawal election are canvassed.   

(d)  Provides that the board and the governing body of the withdrawn unit
may agree on an alternative method or source of payment of a refund,
including payment made over time. Requires the board to notify the
comptroller of such an agreement. 

SECTION 4.  Provides that this Act applies to each withdrawal of territory
from a metropolitan rapid transit authority under Subchapter M, Chapter
451, Transportation Code, that occurs on or after November 1, 1998, except
that for a withdrawal before the effective date of this Act the comptroller
shall determine the amount of each component under Section 451.611(e), as
added by Section 1 of this Act, not later than the 180th day after the
effective date of this Act if the board of the authority and the governing
body of the withdrawn unit of election fail to agree on the amount of each
component before the 91st day after the effective date of this Act 

SECTION 5.  Emergency clause.
  Effective date: upon passage.