Relating to the withdrawal of a unit of election from certain metropolitan rapid transit authorities and the net financial obligation of that withdrawal.

89(R) HB 3643 - Introduced version - Bill Text

89R15404 RDR-F

By: Troxclair

H.B. No. 3643

A BILL TO BE ENTITLED

AN ACT

relating to the withdrawal of a unit of election from certain

metropolitan rapid transit authorities and the net financial

obligation of that withdrawal.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 451.603(c), Transportation Code, is

amended to read as follows:

(c) An election to withdraw may not be
held
[
ordered, and a

petition for an election to withdraw may not be accepted for filing,

on or
] before the
second
[
fifth
] anniversary
of the first day of the

calendar month in which a
[
after the date of a
] previous election
to

withdraw
[
in
] the unit
of election
[
to withdraw
] from the authority

was held
.

SECTION 2. Section 451.611, Transportation Code, is amended

by amending Subsection (a) and adding Subsections (c-1) and (e) to

read as follows:

(a)
Except as provided by Subsection (c-1), the
[
The
] net

financial obligation of a withdrawn unit of election to the

authority is an amount equal to:

(1) the gross financial obligations of the unit, which

is the sum of:

(A) the unit's apportioned share of the

authority's outstanding obligations; and

(B) the amount, not computed in Subdivision

(1)(A), that is necessary and appropriate to allocate to the unit

because of financial obligations of the authority that specifically

relate to the unit; minus

(2) the unit's apportioned share of the unencumbered

assets of the authority that consist of cash, cash deposits,

certificates of deposit, and bonds, stocks, and other negotiable

securities.

(c-1)

This subsection applies only to a withdrawn unit of

election that has a total number of inhabitants equal to two percent

or less of the total number of inhabitants of the authority,

including the number of inhabitants of the unit.

The net financial

obligation of a withdrawn unit of election to which this subsection

applies is the fair market value of the authority's property that

will remain in the unit after the unit's withdrawal.

(e)

An authority shall annually make a good faith estimate

of each unit of election's net financial obligation and shall

report that estimate to the unit of election not later than July 1

of each year.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.