HBA-MSH S.B. 782 77(R)BILL ANALYSIS Office of House Bill AnalysisS.B. 782 By: Madla Urban Affairs 4/29/2001 Committee Report (Amended) 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. EXPLANATION OF AMENDMENTS Committee Amendment No. 1 amends the definition of "advanced transportation" to include transportationrelated maintenance on or along public ways on which the authority provides regular bus service. The amendment removes the restrictions on the use of proceeds from a sales and use tax and the requirement that one-third of the proceeds be paid to the principal municipality and each participating district. The amendment requires that the proceeds be used only for advanced transportation purposes as determined by the board of an advanced transportation district. If any of the proceeds are used for the improvement or maintenance of public ways on which the authority provides regular bus service, the amendment provides that the amount of payments, other than for preexisting contractual obligations for street maintenance or improvements in the sale or conveyance of a transit system, may be the only payment to the principal municipality or to a participating unit for the repair, maintenance, replacement, relocation, or use of public ways including alleys.