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HB 3643

AN ACT relating to the withdrawal of a unit of election from certain

House Bill Troxclair
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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What This Bill Does

Modifies rules for withdrawing from metropolitan rapid transit authorities in Texas. It changes the waiting period between withdrawal elections from five years to two years and introduces a new calculation method for financial obligations, particularly for smaller units with two percent or less of the authority's total inhabitants. The bill requires annual good faith estimates of net financial obligations to be reported to election units by July 1, potentially making it easier and more transparent for communities to consider leaving a transit authority.

Subject Areas

Bill Text

relating to the withdrawal of a unit of election from certain
metropolitan rapid transit authorities and the net financial
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 451.603(c), Transportation Code, is
(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
SECTION 2.  Section 451.611, Transportation Code, is amended
by amending Subsection (a) and adding Subsections (c-1) and (e) to
(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financial obligation of a withdrawn unit of election to the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
(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
(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
(c-1)  This subsection applies only to a withdrawn unit of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
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.

Bill History

filed

Bill filed: AN ACT relating to the withdrawal of a unit of election from certain