HBA-MSH S.B. 782 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 782
By: Madla
Urban Affairs
4/8/2001
Engrossed



BACKGROUND AND PURPOSE 

Current law allows the imposition of a sales and use tax for advanced
transportation purposes.  Some communities may find these funds
insufficient to meet their burgeoning transportation needs.  Senate Bill
782 expands the definition of "advanced transportation," increases the
maximum allowable tax rate of an advanced transportation district, and
establishes requirements regarding the use of the tax revenue. 

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. 

ANALYSIS

Senate Bill 782 amends the Transportation Code to add to the definition of
"advanced transportation" high occupancy toll lanes, traffic management
systems, bus ways, bus lanes, bus transit, transportation-related
improvements along public ways on which the authority provides regular bus
service, operating costs, and management. 

The bill authorizes the rate of a sales and use tax for advanced
transportation to be set at a rate from oneeighth of one percent to
one-half of one percent in one-eighth percent increments as determined by
the board of an advanced transportation district.  The bill requires the
board of an advanced transportation district to determine the rate of a
sales and use tax prior to the preparation of ballots for an election.  The
bill authorizes the use of the proceeds of a sales and use tax only for
specified advanced transportation purposes so that two-thirds of the
proceeds are used by the board for advanced transportation purposes and the
remaining one-third is paid to the principal municipality in the district
and each participating unit. The bill sets forth provisions relating to the
disbursement and permitted uses of the funds. 

EFFECTIVE DATE

September 1, 2001.