By: McClendon (Senate Sponsor - Zaffirini)	H.B. No. 2396
	(In the Senate - Received from the House May 6, 2011;
	May 9, 2011, read first time and referred to Committee on
	Transportation and Homeland Security; May 20, 2011, reported
	adversely, with favorable Committee Substitute by the following
	vote:  Yeas 8, Nays 0; May 20, 2011, sent to printer.)
	COMMITTEE SUBSTITUTE FOR H.B. No. 2396	By:  Wentworth

	A BILL TO BE ENTITLED
	AN ACT
	relating to the pledge of advanced transportation district sales
	and use taxes to certain bonds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 451.702, Transportation Code, is amended
	by amending Subsections (a) and (l) and adding Subsection (l-1) to
	read as follows:
	(a)  The board of an authority in which the sales and use tax
	is imposed at a rate of one-half of one percent and in which the
	principal municipality has a population of more than 1.3 million
	[700,000] may order an election to create an advanced
	transportation district within the authority's boundaries and to
	impose a sales and use tax for advanced transportation and mobility
	enhancement under this subchapter. If approved at the election,
	the rate of the sales and use tax for advanced transportation and
	mobility enhancement shall be set by the governing body of the
	district at a rate of:
	(1)  one-eighth of one percent;
	(2)  one-fourth of one percent;
	(3)  three-eighths of one percent; or
	(4)  one-half of one percent.
	(l)  Notwithstanding any other provision of this chapter,
	the [The] governing body of a [the] district may, by order or
	resolution, without the necessity of an election specifically
	concerning the matter:
	(1)  pledge the sales and use tax proceeds identified
	in Subsection (f) from a sales and use tax imposed by an election
	held under this section after May 21, 1999, to one or more series of
	sales and use tax revenue bonds issued under Subchapter H, subject
	to Subsection (l-1); and
	(2)  enter into an agreement or contractual arrangement
	under Subsection (k) [without the necessity of an election].
	(l-1)  The governing body of a district may not pledge sales
	and use tax proceeds under Subsection (l) unless the board has
	conducted a public hearing concerning the issuance of the bonds to
	which the proceeds are pledged and published notice of the hearing
	at least 14 days before the date of the hearing in a newspaper of
	general circulation in the principal municipality of the authority.
	SECTION 2.  This Act takes effect September 1, 2011.
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