Bill Text: TX HB2423 | 2013-2014 | 83rd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the creation of regional transit authorities; granting the power of eminent domain; providing authority to issue bonds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2013-05-13 - Referred to Transportation [HB2423 Detail]
Download: Texas-2013-HB2423-Introduced.html
Bill Title: Relating to the creation of regional transit authorities; granting the power of eminent domain; providing authority to issue bonds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2013-05-13 - Referred to Transportation [HB2423 Detail]
Download: Texas-2013-HB2423-Introduced.html
83R7962 MTB-D | ||
By: Martinez | H.B. No. 2423 |
|
||
|
||
relating to the creation of regional transit authorities; granting | ||
the power of eminent domain; providing authority to impose a tax and | ||
issue bonds. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle K, Title 6, Transportation Code, is | ||
amended by adding Chapter 463 to read as follows: | ||
CHAPTER 463. REGIONAL TRANSIT AUTHORITIES | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 463.001. DEFINITIONS. In this chapter: | ||
(1) "Authority" means a regional transit authority | ||
created under this chapter. | ||
(2) "Executive committee" means the authority | ||
directors who serve as the governing body of the authority. | ||
(3) "Light rail mass transit system" means a system | ||
that: | ||
(A) uses a fixed guideway rail with electric | ||
power propelling mass transit passenger vehicles; and | ||
(B) is constructed by an authority. | ||
(4) "Public transportation system" means: | ||
(A) all property owned or held by an authority | ||
for public transportation service purposes; | ||
(B) real property, facilities, and equipment for | ||
the protection and environmental enhancement of all the facilities; | ||
and | ||
(C) property held: | ||
(i) in accordance with a contract with the | ||
owner making the property subject to the control of or regulation by | ||
the authority; and | ||
(ii) for public transportation service | ||
purposes. | ||
(5) "Service plan" means an outline of the service | ||
that would be provided by the authority to counties if confirmed at | ||
an election. | ||
Sec. 463.002. APPLICATION. This chapter applies to: | ||
(1) a county contiguous to the Gulf of Mexico or a bay | ||
or inlet opening into the gulf and bordering the United Mexican | ||
States; and | ||
(2) a county that borders a county described by | ||
Subdivision (1). | ||
Sec. 463.003. MUNICIPALITIES MAY PROVIDE TRANSPORTATION | ||
SERVICES. This chapter does not prohibit a municipality from | ||
providing public transportation services. | ||
SUBCHAPTER B. POWERS OF AUTHORITIES | ||
Sec. 463.051. POWERS APPLICABLE TO CONFIRMED AUTHORITY. | ||
This subchapter applies only to an authority that has been | ||
confirmed. | ||
Sec. 463.052. NATURE OF AUTHORITY. (a) An authority: | ||
(1) is a public political entity and corporate body; | ||
(2) has perpetual succession; and | ||
(3) exercises public and essential governmental | ||
functions. | ||
(b) The exercise of a power granted by this chapter, | ||
including a power relating to a station or terminal complex, is for | ||
a public purpose and is a matter of public necessity. | ||
(c) An authority is a governmental unit under Chapter 101, | ||
Civil Practice and Remedies Code, and the operations of the | ||
authority are not proprietary functions for any purpose including | ||
the application of Chapter 101, Civil Practice and Remedies Code. | ||
Sec. 463.053. RESPONSIBILITY FOR CONTROL OF AUTHORITY. | ||
Except as provided by Section 463.104, the executive committee is | ||
responsible for the management, operation, and control of an | ||
authority and its property. | ||
Sec. 463.054. GENERAL POWERS OF AUTHORITY. (a) An | ||
authority has any power necessary or convenient to carry out this | ||
chapter or to effect a purpose of this chapter. | ||
(b) An authority may sue and be sued. An authority may not | ||
be required to give security for costs in a suit brought or | ||
prosecuted by the authority and may not be required to give a | ||
supersedeas or cost bond in an appeal of a judgment. | ||
(c) An authority may hold, use, sell, lease, dispose of, and | ||
acquire, by any means, property and licenses, patents, rights, and | ||
other interests necessary, convenient, or useful to the exercise of | ||
any power under this chapter. | ||
(d) An authority may sell, lease, or dispose of in another | ||
manner: | ||
(1) any right, interest, or property of the authority | ||
that is not needed for, or, if a lease, is inconsistent with, the | ||
efficient operation and maintenance of the public transportation | ||
system; or | ||
(2) at any time, surplus materials or other property | ||
that is not needed for the requirements of the authority or for | ||
carrying out a power under this chapter. | ||
Sec. 463.055. CONTRACTS; GRANTS AND LOANS. (a) An | ||
authority may contract with any person. | ||
(b) An authority may accept a grant or loan from any person. | ||
(c) An authority may enter one or more agreements with any | ||
municipality included in the area of the authority for the | ||
distribution of the authority's revenues. | ||
Sec. 463.056. OPERATION OF PUBLIC TRANSPORTATION SYSTEM. | ||
(a) An authority may: | ||
(1) acquire, construct, develop, plan, own, operate, | ||
and maintain a public transportation system in the territory of the | ||
authority, including the territory of a political subdivision; | ||
(2) contract with a municipality, county, or other | ||
political subdivision for the authority to provide public | ||
transportation services outside the authority; and | ||
(3) lease all or a part of the public transportation | ||
system to, or contract for the operation of all or a part of the | ||
public transportation system by, an operator. | ||
(b) An authority, as the authority determines advisable, | ||
shall determine routes. | ||
(c) The executive committee may submit a referendum for the | ||
approval of a power granted by Subsection (a) or (b). | ||
(d) A private operator who contracts with an authority under | ||
this chapter is not a public entity for purposes of any law of this | ||
state. | ||
Sec. 463.057. ACQUISITION OF PROPERTY BY AGREEMENT. An | ||
authority may acquire rolling stock or other property under a | ||
contract or trust agreement, including a conditional sales | ||
contract, lease, and equipment trust certificate. | ||
Sec. 463.058. USE AND ACQUISITION OF PROPERTY OF OTHERS. | ||
(a) For a purpose described by Section 463.056(a)(1) and as | ||
necessary or useful in the construction, repair, maintenance, or | ||
operation of the public transportation system, an authority may: | ||
(1) use a public way, including an alley; and | ||
(2) directly, or indirectly by another person, | ||
relocate or reroute the property of another person or alter the | ||
construction of the property of another person. | ||
(b) For an act authorized by Subsection (a)(2), an authority | ||
may contract with the owner of the property to allow the owner to | ||
make the relocation, rerouting, or alteration by the owner's own | ||
means or through a contractor of the owner. The contract may | ||
provide for reimbursement of the owner for costs or payment to the | ||
contractor. | ||
(c) An authority may acquire by eminent domain any interest | ||
in real property, including a fee simple interest, except the right | ||
of eminent domain may not be exercised: | ||
(1) in a municipality without the approval of each | ||
proposed acquisition by the governing body of the municipality or | ||
in an unincorporated area without the approval of each proposed | ||
acquisition by the commissioners court of the county in which the | ||
property to be condemned is located; or | ||
(2) in a manner that would: | ||
(A) unduly impair the existing neighborhood | ||
character of property surrounding, or adjacent to, the property to | ||
be condemned; | ||
(B) unduly interfere with interstate commerce; | ||
or | ||
(C) authorize the authority to run an authority | ||
vehicle on a railroad track that is used to transport property. | ||
(d) If an authority, through the exercise of a power under | ||
this chapter, makes necessary the relocation or rerouting of, or | ||
alteration of the construction of, a road, alley, overpass, | ||
underpass, railroad track, bridge, or associated property, an | ||
electric, telegraph, telephone, or television cable line, conduit, | ||
or associated property, or a water, sewer, gas, or other pipeline, | ||
or associated property, the relocation or rerouting or alteration | ||
of the construction must be accomplished at the sole cost and | ||
expense of the authority, and damages that are incurred by an owner | ||
of the property must be paid by the authority. | ||
(e) Unless the power of eminent domain is exercised, an | ||
authority may not begin an activity authorized under Subsection (a) | ||
to alter or damage property of others, including this state or a | ||
political subdivision of this state, without having first received | ||
the written permission of the owner. | ||
Sec. 463.059. EMINENT DOMAIN PROCEEDINGS. (a) An eminent | ||
domain proceeding by an authority is initiated by the adoption by | ||
the executive committee of a resolution that: | ||
(1) describes the property interest to be acquired by | ||
the authority; | ||
(2) declares the public necessity for and interest in | ||
the acquisition; and | ||
(3) states that the acquisition is necessary and | ||
proper for the construction, extension, improvement, or | ||
development of the public transportation system. | ||
(b) A resolution adopted under this section and approved by | ||
resolution of the appropriate municipal governing body or | ||
commissioners court is conclusive evidence of the public necessity | ||
for the acquisition described in the resolution and that the | ||
property interest is necessary for public use. | ||
(c) Except as otherwise provided by this chapter, Chapter | ||
21, Property Code, applies to an eminent domain proceeding by an | ||
authority. | ||
Sec. 463.060. AGREEMENT WITH UTILITIES; CARRIERS. An | ||
authority may agree with any other public or private utility, | ||
communication system, common carrier, or transportation system | ||
for: | ||
(1) the joint use in the authority of the property of | ||
the agreeing entities; or | ||
(2) the establishment of through routes, joint fares, | ||
or transfers of passengers. | ||
Sec. 463.061. FARES AND OTHER CHARGES. (a) An authority | ||
shall impose reasonable and nondiscriminatory fares, tolls, | ||
charges, rents, and other compensation for the use of the public | ||
transportation system sufficient to produce revenue, together with | ||
tax revenue and grants received by the authority, in an amount | ||
adequate to: | ||
(1) pay all expenses necessary to operate and maintain | ||
the public transportation system; | ||
(2) pay when due the principal of and interest on, and | ||
sinking fund and reserve fund payments agreed to be made with | ||
respect to, all bonds that are issued by the authority and payable | ||
wholly or partly from the revenue; and | ||
(3) fulfill the terms of any other agreement with the | ||
holders of bonds described by Subdivision (2) or with a person | ||
acting on behalf of the bondholders. | ||
(b) It is intended by this chapter that the compensation | ||
imposed under Subsection (a) and taxes imposed by the authority not | ||
exceed the amounts necessary to produce revenue sufficient to meet | ||
the obligations of the authority under this chapter. | ||
(c) Compensation for the use of the public transportation | ||
system may be set according to a zone system or to another | ||
classification that the authority determines to be reasonable. | ||
(d) This section does not limit the state's power to | ||
regulate taxes imposed by an authority or other compensation | ||
authorized under this section. The state agrees with holders of | ||
bonds issued under this chapter, however, not to alter the power | ||
given to an authority under this section to impose taxes, fares, | ||
tolls, charges, rents, and other compensation in amounts sufficient | ||
to comply with Subsection (a), or to impair the rights and remedies | ||
of an authority bondholder, or a person acting on behalf of a | ||
bondholder, until the bonds, interest on the bonds, interest on | ||
unpaid installments of interest, costs and expenses in connection | ||
with an action or proceeding by or on behalf of a bondholder, and | ||
other obligations of the authority in connection with the bonds are | ||
discharged. | ||
Sec. 463.062. ENFORCEMENT OF FARES AND OTHER CHARGES. (a) | ||
An executive committee by resolution may prohibit the use of the | ||
public transportation system by a person who fails to possess | ||
evidence showing that the appropriate fare for the use of the system | ||
has been paid and may establish reasonable and appropriate methods, | ||
using transit police officers or fare enforcement officers under | ||
Section 463.063, to ensure that persons using the public | ||
transportation system pay the appropriate fare for that use. | ||
(b) The authority shall post signs designating each area in | ||
which a person is prohibited from using the transportation system | ||
without possession of evidence showing that the appropriate fare | ||
has been paid. | ||
Sec. 463.063. FARE ENFORCEMENT OFFICERS. (a) The | ||
authority may employ persons to serve as fare enforcement officers | ||
to enforce the payment of fares for use of the public transportation | ||
system by requesting and inspecting evidence showing payment of the | ||
appropriate fare from a person using the public transportation | ||
system. | ||
(b) Before commencing duties as a fare enforcement officer a | ||
person must complete a 40-hour training course approved by the | ||
authority that is appropriate to the duties required of a fare | ||
enforcement officer. | ||
(c) While performing duties, a fare enforcement officer | ||
shall: | ||
(1) wear a distinctive uniform that identifies the | ||
officer as a fare enforcement officer; and | ||
(2) work under the direction of the chief of police of | ||
the authority. | ||
(d) A fare enforcement officer may: | ||
(1) request evidence showing payment of the | ||
appropriate fare from passengers of the public transportation | ||
system; | ||
(2) request personal identification from a passenger | ||
who does not produce evidence showing payment of the appropriate | ||
fare on request by the officer; and | ||
(3) request that a passenger leave the public | ||
transportation system if the passenger does not possess evidence of | ||
payment of the appropriate fare. | ||
(e) A fare enforcement officer may not carry a weapon while | ||
performing duties under this section. | ||
(f) A fare enforcement officer is not a peace officer and | ||
has no authority to enforce a criminal law, other than the authority | ||
possessed by any other person who is not a peace officer. | ||
Sec. 463.064. ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANE | ||
USAGE. (a) An executive committee by resolution may regulate or | ||
prohibit improper entrance into, exit from, and vehicle occupancy | ||
in high occupancy vehicle lanes operated, managed, or maintained by | ||
the authority. | ||
(b) An executive committee by resolution may establish | ||
reasonable and appropriate methods to enforce regulations or | ||
prohibitions established under Subsection (a). | ||
Sec. 463.065. INSURANCE. (a) An authority may insure, | ||
through purchased insurance policies or self-insurance programs, | ||
or both, the legal liability of the authority and of its contractors | ||
and subcontractors arising from the acquisition, construction, or | ||
operation of the programs and facilities of the authority for: | ||
(1) personal or property damage; and | ||
(2) officers' and employees' liability. | ||
(b) An authority may use contracts, rating plans, and risk | ||
management programs designed to encourage accident prevention. | ||
(c) In developing an insurance or self-insurance program, | ||
an authority may consider the peculiar hazards, indemnity | ||
standards, and past and prospective loss and expense experience of | ||
the authority and of its contractors and subcontractors. | ||
Sec. 463.066. TAX EXEMPTION. The property, revenue, and | ||
income of an authority are exempt from state and local taxes. | ||
Sec. 463.067. LIGHT RAIL SYSTEM: REGULATORY EXEMPTION. | ||
(a) An authority that constructs or operates or contracts with | ||
another entity to construct or operate a light rail mass transit | ||
system is not subject to any state law regulating or governing the | ||
design, construction, or operation of a railroad, railway, street | ||
railway, street car, or interurban railway. | ||
(b) For purposes of ownership or transfer of ownership of an | ||
interest in real property, a light rail mass transit system line | ||
operating on property previously used by a railroad, railway, | ||
street railway, or interurban railway is a continuation of existing | ||
rail use. | ||
Sec. 463.068. ELECTIONS. (a) In an election ordered by the | ||
executive committee: | ||
(1) the executive committee shall give notice of the | ||
election by publication in a newspaper of general circulation in | ||
the authority at least once each week for three consecutive weeks, | ||
with the first publication occurring at least 21 days before the | ||
date of election; and | ||
(2) a resolution ordering the election and the | ||
election notice must show, in addition to the requirements of the | ||
Election Code, the hours of the election and polling places in | ||
election precincts. | ||
(b) Subsection (a) does not apply to an election under | ||
Section 463.359. | ||
(c) A copy of the notice of each election held under this | ||
chapter shall be furnished to the Texas Transportation Commission | ||
and the comptroller. | ||
SUBCHAPTER C. MANAGEMENT OF AUTHORITY | ||
Sec. 463.101. EXECUTIVE COMMITTEE: POWERS. The executive | ||
committee may: | ||
(1) employ and prescribe the compensation for a chief | ||
executive officer whom the committee may designate as the general | ||
manager or the executive director; | ||
(2) appoint auditors and attorneys and prescribe their | ||
duties, compensation, and tenure; | ||
(3) adopt a seal for the authority; | ||
(4) set the fiscal year for the authority; | ||
(5) establish a complete system of accounts for the | ||
authority; | ||
(6) designate by resolution an authorized | ||
representative of the authority to, according to terms prescribed | ||
by the executive committee: | ||
(A) invest authority funds; and | ||
(B) withdraw money from authority accounts for | ||
investments; and | ||
(7) designate by resolution an authorized | ||
representative of the authority to supervise the substitution of | ||
securities pledged to secure authority funds. | ||
Sec. 463.102. INVESTMENTS. The executive committee may | ||
invest authority funds in any investment authorized for an entity | ||
under Chapter 2256, Government Code. | ||
Sec. 463.103. DEPOSITORY; DEPOSIT OF FUNDS. (a) The | ||
executive committee shall designate one or more banks as | ||
depositories for authority funds. | ||
(b) All funds of an authority that are not otherwise | ||
invested shall be deposited in one or more of the authority's | ||
depository banks unless otherwise required by an order or | ||
resolution authorizing the issuance of an authority bond or note or | ||
other contractual undertaking. | ||
(c) Funds in a depository, to the extent that those funds | ||
are not insured by the Federal Deposit Insurance Corporation, shall | ||
be secured in the manner provided by law for the security of county | ||
funds. | ||
Sec. 463.104. CHIEF EXECUTIVE: DUTIES. (a) The general | ||
manager or executive director shall administer the daily operation | ||
of an authority. | ||
(b) In conformity with the policy of the executive | ||
committee, the general manager or executive director may: | ||
(1) employ persons to conduct the affairs of the | ||
authority, including any operating or management company; and | ||
(2) remove any employee. | ||
(c) The general manager or executive director shall | ||
prescribe the duties, tenure, and compensation of each person | ||
employed. | ||
Sec. 463.105. RULES. (a) The executive committee by | ||
resolution may adopt rules for the: | ||
(1) safe and efficient operation and maintenance of | ||
the public transportation system; | ||
(2) use of the public transportation system and the | ||
authority's services by the public and the payment of fares, tolls, | ||
and other charges; and | ||
(3) regulation of privileges on property owned, | ||
leased, or otherwise controlled by the authority. | ||
(b) The authority shall encourage to the maximum extent | ||
feasible the participation of private enterprise. | ||
(c) A notice of each rule adopted by the executive committee | ||
shall be published in a newspaper with general circulation in the | ||
area in which the authority is located once each week for two | ||
consecutive weeks after adoption of the rule. The notice must | ||
contain a condensed statement of the substance of the rule and must | ||
advise that a copy of the complete text of the rule is filed in the | ||
principal office of the authority where the text may be read by any | ||
person. | ||
(d) A rule becomes effective 10 days after the date of the | ||
second publication of the notice under this section. | ||
Sec. 463.106. PURCHASES: COMPETITIVE BIDDING. (a) An | ||
authority may not award a contract for construction, services, or | ||
property, other than real property, except through the solicitation | ||
of competitive sealed bids or proposals, including the reverse | ||
auction procedure, ensuring full and open competition. | ||
(b) The authority shall describe in a solicitation each | ||
factor to be used to evaluate a bid or proposal and give the | ||
factor's relative importance. | ||
Sec. 463.107. DURATION OF CONTRACTS. An authority may | ||
contract for payment with debt obligations and for performance and | ||
payments to extend longer than one fiscal year if the contract | ||
provides for the discharge of the authority's contractual | ||
obligations by any method, including: | ||
(1) committing current year funds, future tax | ||
revenues, or cancellation charges; and | ||
(2) making the contract subject to the future | ||
availability of funds. | ||
Sec. 463.108. SECURITY. The executive committee may | ||
establish a security force and provide for the employment of | ||
security personnel. | ||
Sec. 463.109. BUDGET RECOMMENDATIONS. The executive | ||
committee shall make a proposed annual budget available to the | ||
commissioners courts of the counties in the authority at least 30 | ||
days before the date of the adoption of the final annual budget. | ||
Sec. 463.110. FINANCIAL AUDITS. (a) The executive | ||
committee of an authority shall have an annual audit of the affairs | ||
of the authority prepared by an independent certified public | ||
accountant or a firm of independent certified public accountants. | ||
(b) The audit is open to public inspection. | ||
SUBCHAPTER D. STATION OR TERMINAL COMPLEX SYSTEMS | ||
Sec. 463.151. STATION OR TERMINAL COMPLEX: SYSTEM PLAN. | ||
(a) An authority may not acquire an interest in real property for a | ||
station or terminal complex unless the station or terminal complex | ||
is included in the public transportation system in a comprehensive | ||
service plan approved by a resolution of the executive committee. A | ||
mass transit facility of an authority is not a station or terminal | ||
complex under this subchapter unless the facility is included in | ||
the authority's comprehensive service plan under this section. | ||
(b) A station or terminal complex may not be included in a | ||
public transportation system unless the executive committee first | ||
finds that the station or complex: | ||
(1) will encourage and provide for efficient and | ||
economical public transportation; | ||
(2) will facilitate access to public transportation | ||
and provide for other public transportation purposes; | ||
(3) will reduce vehicular congestion and air | ||
pollution; and | ||
(4) is reasonably essential to the successful | ||
operation of the public transportation system. | ||
(c) On making a finding under Subsection (b), the executive | ||
committee may amend the authority's comprehensive service plan to | ||
include a station or terminal complex. | ||
Sec. 463.152. STATION OR TERMINAL COMPLEX: FACILITIES. A | ||
station or terminal complex of an authority: | ||
(1) must include adequate provisions for the transfer | ||
of passengers among the various means of transportation available | ||
to the complex; and | ||
(2) may include provisions for residential, | ||
institutional, recreational, commercial, and industrial | ||
facilities. | ||
Sec. 463.153. APPROVAL OF MUNICIPALITY. The location of a | ||
station or terminal complex in a municipality or in the | ||
extraterritorial jurisdiction of a municipality must be approved, | ||
as to conformity with the comprehensive or general plan of the | ||
municipality, by a motion, resolution, or ordinance adopted by the | ||
governing body of the municipality. | ||
Sec. 463.154. TRANSFER OF REAL PROPERTY IN STATION OR | ||
TERMINAL COMPLEX. (a) An authority may transfer to any person by | ||
any means, including sale or lease, an interest in real property in | ||
a station or terminal complex and may contract with respect to it, | ||
in accordance with the comprehensive service plan approved by the | ||
executive committee, and subject to terms: | ||
(1) the executive committee finds to be in the public | ||
interest or necessary to carry out this section; and | ||
(2) specified in the instrument transferring the title | ||
or right of use. | ||
(b) A transfer must be at the fair value of the interest | ||
transferred considering the use designated for the real property in | ||
the authority's comprehensive service plan. | ||
SUBCHAPTER E. BONDS | ||
Sec. 463.201. DEFINITION. In this subchapter, "bond" | ||
includes a note. | ||
Sec. 463.202. POWER TO ISSUE BONDS. (a) An authority may | ||
issue bonds at any time and for any amounts it considers necessary | ||
or appropriate for: | ||
(1) the acquisition, construction, repair, equipping, | ||
improvement, or extension of its public transportation system; or | ||
(2) creating or funding self-insurance or retirement | ||
or pension fund reserves. | ||
(b) A bond any portion of which is secured by a pledge of | ||
sales and use tax revenues and that has a maturity longer than five | ||
years from the date of issuance may not be issued by an authority | ||
until an election has been held and the proposition proposing the | ||
issue has been approved by a majority of the votes received on the | ||
issue in accordance with Section 463.212. | ||
(c) Subsection (b) does not apply to: | ||
(1) refunding bonds; or | ||
(2) bonds described by Subsection (a)(2). | ||
Sec. 463.203. BOND TERMS. An authority's bonds are fully | ||
negotiable. An authority may make the bonds redeemable before | ||
maturity at the price and subject to the terms and conditions that | ||
are provided in the authority's resolution authorizing the bonds. | ||
Sec. 463.204. SALE. An authority's bonds may be sold at a | ||
public or private sale as determined by the executive committee to | ||
be the more advantageous. | ||
Sec. 463.205. APPROVAL; REGISTRATION. (a) An authority's | ||
bonds and the records relating to their issuance shall be submitted | ||
to the attorney general for examination before the bonds may be | ||
delivered. | ||
(b) If the attorney general finds that the bonds have been | ||
issued in conformity with the constitution and this chapter and | ||
that the bonds will be a binding obligation of the issuing | ||
authority, the attorney general shall approve the bonds. | ||
(c) After the bonds are approved by the attorney general, | ||
the comptroller shall register the bonds. | ||
Sec. 463.206. INCONTESTABILITY. Bonds are incontestable | ||
after they are: | ||
(1) approved by the attorney general; | ||
(2) registered by the comptroller; and | ||
(3) sold and delivered to the purchaser. | ||
Sec. 463.207. SECURITY PLEDGED. (a) To secure the payment | ||
of an authority's bonds, the authority may: | ||
(1) pledge all or part of revenue realized from any tax | ||
that the authority may impose; | ||
(2) pledge any part of the revenue of the public | ||
transportation system; | ||
(3) mortgage any part of the public transportation | ||
system, including any part of the system subsequently acquired; | ||
(4) pledge all or part of funds the federal government | ||
has committed to the authority as grants in aid; and | ||
(5) provide that a pledge of revenue described by | ||
Subdivision (1) or (2) is a first lien or charge against that | ||
revenue. | ||
(b) Under Subsection (a)(3) an authority may, subject to the | ||
terms of the bond indenture or the resolution authorizing the | ||
issuance of the bonds, encumber a separate item of the public | ||
transportation system and acquire, use, hold, or contract for the | ||
property by lease, chattel mortgage, or other conditional sale | ||
including an equipment trust transaction. | ||
(c) An authority may not issue bonds secured by ad valorem | ||
tax revenue. | ||
(d) An authority is not prohibited by this subchapter from | ||
encumbering one or more public transportation systems to purchase, | ||
construct, extend, or repair one or more other public | ||
transportation systems of the authority. | ||
(e) The authority may pledge funds described by Subsection | ||
(a)(4): | ||
(1) as the sole security for the bonds; or | ||
(2) in addition to any other security described by | ||
this section. | ||
Sec. 463.208. USE OF REVENUE. Revenue in excess of amounts | ||
pledged under Section 463.207(a)(1) or (2) shall be used to: | ||
(1) pay the expenses of operation and maintenance of a | ||
public transportation system, including salaries, labor, | ||
materials, and repairs necessary to provide efficient service and | ||
every other proper item of expense; and | ||
(2) fund operating reserves. | ||
Sec. 463.209. REFUNDING BONDS. An authority may issue | ||
refunding bonds for the purposes and in the manner authorized by | ||
general law, including Chapter 1207, Government Code. | ||
Sec. 463.210. BONDS AS AUTHORIZED INVESTMENTS. (a) An | ||
authority's bonds are authorized investments for: | ||
(1) a bank; | ||
(2) a savings bank; | ||
(3) a trust company; | ||
(4) a savings and loan association; and | ||
(5) an insurance company. | ||
(b) The bonds, when accompanied by all appurtenant, | ||
unmatured coupons and to the extent of the lesser of their face | ||
value or market value, are eligible to secure the deposit of public | ||
funds of this state, a political subdivision of this state, and any | ||
other political corporation of this state. | ||
Sec. 463.211. EXCHANGE OF BONDS FOR EXISTING SYSTEM. An | ||
authority's revenue bonds may be exchanged, instead of cash, for | ||
the property of all or part of an existing public transportation | ||
system to be acquired by the authority. If the property is owned by | ||
a corporation that will dissolve simultaneously with the exchange, | ||
the authority may acquire the stock of the corporation. | ||
Sec. 463.212. ELECTION TO PLEDGE TAXES. (a) The executive | ||
committee may order an election to authorize the pledge of sales and | ||
use tax revenue to the payment of a specified amount of long-term | ||
bonds for the authority's public transportation system. | ||
(b) Sales and use tax revenue at a rate higher than the | ||
previously approved rate may not be pledged. | ||
(c) The notice of election shall be published, the | ||
proposition and ballot prepared, and the election held in | ||
accordance with and at the times permitted by the law applicable to | ||
a municipal bond election. The authority may publish, or | ||
distribute in another manner, additional copies of the election | ||
order to inform the voters fully of its content. | ||
(d) If the proposition is approved, the authority may issue | ||
bonds in an amount not exceeding the amount approved. | ||
Sec. 463.213. TAX EXEMPTION. The interest on bonds issued | ||
by an authority is exempt from state and local taxes. | ||
SUBCHAPTER F. TAXATION | ||
Sec. 463.251. SALES AND USE TAX. (a) The executive | ||
committee may impose for an authority a sales and use tax at the | ||
rate of: | ||
(1) one-quarter of one percent; | ||
(2) one-half of one percent; | ||
(3) three-quarters of one percent; or | ||
(4) one percent. | ||
(b) The imposition of an authority's sales and use tax must | ||
be approved at an election under this chapter. | ||
(c) Chapter 322, Tax Code, applies to an authority's sales | ||
and use tax. | ||
(d) Except to the extent that a provision of this chapter | ||
applies, Chapter 323, Tax Code, applies to the tax authorized by | ||
this section in the same manner as that chapter applies to the tax | ||
authorized by that chapter. | ||
(e) Sections 323.101(d) and (e) and 323.505, Tax Code, do | ||
not apply to the tax authorized by this section. | ||
(f) Revenue from the tax authorized by this section must be | ||
spent as follows: | ||
(1) 50 percent on a light rail mass transit system; | ||
(2) 30 percent on bus transit; and | ||
(3) 20 percent on the construction and maintenance of | ||
roads in the area of the authority. | ||
Sec. 463.252. RATE INCREASE: SALES AND USE TAX. The | ||
executive committee may not increase the tax rate to a rate higher | ||
than the rate approved by the voters at the confirmation election | ||
without first receiving a majority vote in favor of the increase at | ||
an authority-wide election. | ||
Sec. 463.253. INITIAL SALES TAX: EFFECTIVE DATE. The | ||
adoption of or the increase or decrease in the rate of an | ||
authority's sales and use tax takes effect on the first day of the | ||
second calendar quarter beginning after the date that the | ||
comptroller receives a copy of the order required to be sent under | ||
Section 463.361. | ||
Sec. 463.254. RATE DECREASE: SALES AND USE TAX. (a) The | ||
executive committee by order may direct the comptroller to collect | ||
the authority's sales and use tax at a rate that is lower than the | ||
rate approved by the voters at the confirmation election. | ||
(b) The executive committee must file a certified copy of | ||
the order with the comptroller. | ||
Sec. 463.255. PROPERTY TAXES. An authority may not impose | ||
an ad valorem property tax. | ||
SUBCHAPTER G. EXECUTIVE COMMITTEE | ||
Sec. 463.301. COMPOSITION. (a) The executive committee of | ||
an authority is the board of directors of the regional planning | ||
commission established for the area of the authority under Chapter | ||
391, Local Government Code. | ||
(b) Service on the executive committee by a public officer | ||
or employee is an additional duty of the office or employment. | ||
Sec. 463.302. OFFICERS. (a) The members of the executive | ||
committee shall elect from among its membership a presiding | ||
officer, assistant presiding officer, and secretary. | ||
(b) The executive committee may appoint, as necessary, | ||
members or nonmembers as assistant secretaries. | ||
(c) The secretary or assistant secretary shall: | ||
(1) keep permanent records of each proceeding and | ||
transaction of the authority; and | ||
(2) perform other duties assigned by the executive | ||
committee. | ||
Sec. 463.303. CONFLICTS OF INTEREST. Members of the | ||
executive committee and officers of the authority are subject to | ||
Chapter 171, Local Government Code. | ||
Sec. 463.304. MEETINGS. (a) The executive committee shall | ||
hold at least one regular meeting each month to transact the | ||
business of an authority. | ||
(b) On written notice, the presiding officer may call | ||
special meetings as necessary. | ||
(c) The executive committee by resolution shall: | ||
(1) set the time, place, and day of the regular | ||
meetings; and | ||
(2) adopt rules and bylaws as necessary to conduct | ||
meetings. | ||
Sec. 463.305. VOTING REQUIREMENTS. An action of the | ||
executive committee requires a vote of a majority of the members | ||
present unless the bylaws require a larger number for a particular | ||
action. | ||
SUBCHAPTER H. CREATION OF AUTHORITIES | ||
Sec. 463.351. CREATION OF AUTHORITY AUTHORIZED. The | ||
commissioners courts of the counties to which this chapter applies | ||
may agree to initiate the process to create a regional transit | ||
authority to provide public transportation services within the | ||
boundaries of the counties. | ||
Sec. 463.352. INITIATING ORDER OR RESOLUTION: CONTENTS. | ||
To initiate the process of creating an authority, each | ||
commissioners court must adopt a resolution or order containing the | ||
designation of each time and place for holding public hearings on | ||
the proposal to create the authority. | ||
Sec. 463.353. NOTICE OF HEARING. (a) Notice of the time | ||
and place of the public hearings on the creation of the authority | ||
shall be published, beginning at least 30 days before the date of | ||
the hearing, once a week for two consecutive weeks in a newspaper of | ||
general circulation in each county. | ||
(b) The commissioners courts shall give a copy of the notice | ||
to the Texas Transportation Commission and the comptroller. | ||
Sec. 463.354. CONDUCT OF HEARING. (a) Each commissioners | ||
court creating an authority shall conduct public hearings on the | ||
creation. | ||
(b) Any person may appear at a hearing and offer evidence | ||
on: | ||
(1) the creation of the authority; | ||
(2) the operation of a public transportation system; | ||
(3) the public utility and public interest served in | ||
the creation of an authority; or | ||
(4) other facts bearing on the creation of an | ||
authority. | ||
(c) A hearing may be continued until completed. | ||
Sec. 463.355. RESOLUTION OR ORDER. (a) After hearing the | ||
evidence presented at the hearings, but not earlier than 75 days | ||
after the date the process is initiated by the commissioners | ||
courts, each commissioners court may adopt a resolution or order: | ||
(1) designating the name of the authority; and | ||
(2) authorizing the appointment of the interim | ||
executive committee. | ||
(b) After the hearing, the results of the hearing shall be | ||
sent to the Texas Department of Transportation and the comptroller. | ||
Sec. 463.356. INTERIM EXECUTIVE COMMITTEE. (a) The | ||
interim executive committee is composed as provided by Section | ||
463.301 for an executive committee except that the interim | ||
executive committee must include an additional member who is a | ||
member of the board of directors of a commuter rail district | ||
described by Chapter 174. | ||
(b) The interim executive committee, after its | ||
organization, shall develop a service plan and determine a proposed | ||
tax rate. | ||
(c) Service on the interim executive committee by a public | ||
officer or employee is an additional duty of the office or | ||
employment. | ||
Sec. 463.357. APPROVAL OF SERVICE PLAN AND TAX RATE. Not | ||
later than the 45th day after the date the interim executive | ||
committee approves the service plan and tax rate, the commissioners | ||
court of each county creating an authority must approve, by | ||
resolution or order, the service plan and tax rate. | ||
Sec. 463.358. NOTICE OF INTENT TO ORDER ELECTION. Not | ||
earlier than the 61st day after the date the interim executive | ||
committee approves a service plan and tax rate, the interim | ||
executive committee shall notify the commissioners court of each | ||
county included in the boundaries of the authority of the interim | ||
executive committee's intention to call a confirmation election. | ||
Sec. 463.359. CONFIRMATION ELECTION. (a) The interim | ||
executive committee in ordering the confirmation election shall | ||
submit to the qualified voters of each county participating in the | ||
election in the authority the following proposition: "Shall the | ||
creation of (name of authority) be confirmed and shall the levy of | ||
the proposed tax, not to exceed (rate), be authorized?" | ||
(b) In addition to other information required by law, the | ||
notice of the election must include a description of the nature and | ||
rate of the proposed tax. | ||
Sec. 463.360. CONDUCT OF ELECTION. The executive committee | ||
shall canvass the returns and declare the results of the election | ||
separately with respect to each county. | ||
Sec. 463.361. RESULTS OF ELECTION; ORDER. (a) The | ||
authority is confirmed if a majority of the votes received in each | ||
county favor the proposition. | ||
(b) If the authority continues, the interim executive | ||
committee shall record the results in its minutes and adopt an | ||
order: | ||
(1) declaring that the creation of the authority is | ||
confirmed; | ||
(2) stating the date of the election; | ||
(3) containing the proposition; and | ||
(4) showing the number of votes cast for or against the | ||
proposition in each county. | ||
(c) A certified copy of the order shall be filed with: | ||
(1) the Texas Department of Transportation; and | ||
(2) the comptroller. | ||
(d) If the authority does not continue, the interim | ||
executive committee shall enter an order declaring that the result | ||
of votes cast at the election is that the authority ceases in its | ||
entirety. The order shall be filed with the Texas Department of | ||
Transportation and the comptroller, and the authority is dissolved. | ||
Sec. 463.362. EFFECT OF CREATION. On the creation of an | ||
authority the boundaries of which overlap the territory of a | ||
commuter rail district described by Chapter 174, the commuter rail | ||
district is dissolved, and all assets, including property, and all | ||
liabilities, including debt and other obligations, of the commuter | ||
rail district transfer to and are assumed by the authority. | ||
Sec. 463.363. COST OF ELECTION. The commissioners courts | ||
creating an authority shall pay the cost of the confirmation | ||
election. | ||
Sec. 463.364. EXPIRATION OF UNCONFIRMED AUTHORITY. An | ||
authority that has not been confirmed expires on the third | ||
anniversary of the effective date of orders initiating the process | ||
to create the authority. | ||
SECTION 2. Section 174.051, Transportation Code, is amended | ||
by adding Subsection (c) to read as follows: | ||
(c) Notwithstanding Subsections (a) and (b), a district may | ||
not be created in the boundaries of a regional transit authority | ||
under Chapter 463. | ||
SECTION 3. Section 322.001(a), Tax Code, is amended to read | ||
as follows: | ||
(a) This chapter applies to the imposition, assessment, | ||
collection, administration, and enforcement of a sales and use tax | ||
imposed under Chapter 451, 452, 453, [ |
||
Transportation Code. | ||
SECTION 4. Section 322.002(1), Tax Code, is amended to read | ||
as follows: | ||
(1) "Taxing entity" means a rapid transit authority, a | ||
regional transit authority, including a subregional transportation | ||
authority, or a municipal mass transit department created under | ||
Chapter 451, 452, [ |
||
coordinated county transportation authority created under Chapter | ||
460, Transportation Code, that has adopted a sales and use tax under | ||
the law authorizing the creation of the entity. | ||
SECTION 5. 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, 2013. |