85R8235 JRR-D     By: Workman H.B. No. 2627       A BILL TO BE ENTITLED   AN ACT   relating to the withdrawal of a unit of election from certain   metropolitan rapid transit authorities.          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 first [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 451.607(c), Transportation Code, is   amended to read as follows:          (c)  At the election the ballot shall be printed to provide   for voting for or against the proposition: "Shall [the] (name of   unit of election [authority]) withdraw from the [be continued in]   (name of authority [unit of election])?"          SECTION 3.  Section 451.608, Transportation Code, is amended   to read as follows:          Sec. 451.608.  RESULT OF WITHDRAWAL ELECTION. (a) If a   majority of the votes received on the measure in an election held   under Section 451.607 favor the proposition, the [authority   continues in the] unit of election withdraws from the authority and   the authority ceases in the unit of election on the day after the   date the election results are canvassed.          (b)  If less than a majority of the votes received on the   measure in the election favor the proposition, the authority   continues [ceases] in the unit of election [on the day after the day   the election returns are canvassed].          SECTION 4.  Section 451.611, Transportation Code, is amended   by amending Subsections (a), (b), and (d) and adding Subsections   (b-1), (e), (f), and (g) to read as follows:          (a)  The net financial obligation of a withdrawn unit of   election to the authority is an amount equal to:                (1)  the gross financial obligations of the unit, which   is the sum of:             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 plus a reasonable credit in an amount determined by the   comptroller under Subsection (f) if the comptroller finds a   disparity in transit services provided by the authority to the   unit.          (b)  Subject to Subsection (b-1), an [An] authority's   outstanding obligations under Subsection (a)(1)(A) is the sum of:                (1)  the obligations of the authority authorized in the   budget of, and contracted for by, the authority;                (2)  outstanding contractual obligations for capital   or other expenditures, including expenditures for a subsequent   year, the payment of which is not made or provided for from the   proceeds of notes, bonds, or other obligations;                (3)  payments due or to become due in a subsequent year   on notes, bonds, or other securities or obligations for debt issued   by the authority;                (4)  the amount required by the authority to be   reserved for all years to comply with financial covenants made with   lenders, note or bond holders, or other creditors or contractors;   and                (5)  the amount necessary for the full and timely   payment of the obligations of the authority, to avoid a default or   impairment of those obligations, including contingent liabilities.          (b-1)  An authority's outstanding obligations under   Subsection (a)(1)(A) does not include the authority's outstanding   obligations related to rail service if the authority does not   operate a commuter rail line within the unit of election.          (d)  The comptroller [board] shall determine the amount of   each component of the computations required under this section,   including the components of the unit's apportioned share, including   any credit for a disparity in transit services provided by the   authority to the unit of election, as of the effective date of   withdrawal. The number of inhabitants shall be determined   according to the most recent and available applicable data of an   agency of the United States.          (e)  The authority shall provide all information requested   by the comptroller to determine the amount of each component of the   computations required under this section. The unit of election may   provide information to the comptroller with respect to any   component, including information about any disparity in transit   services provided by the authority to the unit.          (f)  The comptroller has discretion to determine a   reasonable credit, if any, for a disparity in transit services   provided by the authority to the unit of election.          (g)  An authority shall annually make a good faith estimate   of each unit of election's net financial obligation and shall   report that estimate to each unit of election not later than October   1 of each year.          SECTION 5.  Section 451.612, Transportation Code, is amended   to read as follows:          Sec. 451.612.  CERTIFICATION OF NET FINANCIAL OBLIGATION OF   UNIT. (a) If a majority of the votes received on the measure in an   election held under Section 451.607 favor the proposition, the   comptroller [The board] shall certify to the governing body of a   withdrawn unit of election and to the authority [comptroller] the   net financial obligation of the unit to the authority as determined   under this subchapter.          (b)  If a withdrawn unit of election has [there is] no net   financial obligation [of the unit], the comptroller shall certify   [certification must show] that fact to the governing body of the   unit and to the authority.          (c)  The comptroller shall make each certification required   by this section not later than 180 days after the date an election   is held under Section 451.607.          SECTION 6.  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, 2017.