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component of the computations required under this section (Determination of Total Amount of Financial Obligations of Withdrawn Unit) before the 91st day after the date returns from the election to withdraw are canvassed, to determine the amount of each component.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.