Bill Text: TX HB71 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to the creation of regional transit authorities; granting the power of eminent domain; providing authority to issue bonds and charge fees; creating a criminal offense.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2019-05-24 - Effective immediately [HB71 Detail]

Download: Texas-2019-HB71-Enrolled.html

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H.B. No. 71

AN ACT
relating to the creation of regional transit authorities; granting
the power of eminent domain; providing authority to issue bonds and
charge fees; creating a criminal offense.
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) "Complementary transportation services" includes:
(A) special transportation services for a person
who is elderly or has a disability;
(B) medical transportation services;
(C) assistance in street modifications as
necessary to accommodate the public transportation system;
(D) construction of new general aviation
facilities or renovation or purchase of existing facilities not
served by certificated air carriers to relieve air traffic
congestion at existing facilities; and
(E) any other service that complements the public
transportation system, including providing parking garages.
(3) "Executive committee" means the authority
directors who serve as the governing body of the authority.
(4) "Mass transit system" means a system constructed
by an authority for the transportation of passengers and
hand-carried packages or baggage of a passenger by any means of
surface, overhead, or underground transportation, other than an
aircraft or taxicab. The term includes a rail system and services
coordinated with a transit system operated by a municipality.
(5) "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.
(6) "Regional high capacity transit" means intercity
transit service designed to transport more people than typical,
local fixed-route bus service by using dedicated lanes or
rights-of-way or by having transit priority, including queue jumps
or traffic signal priority. The term includes bus rapid transit,
light rail, commuter rail, streetcars, high occupancy toll lanes,
or other fixed guideway operations.
(7) "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 that is contiguous to the Gulf of Mexico
or a bay or inlet opening into the gulf and that borders 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. An authority may
coordinate the provision of services with the municipality and
include the services provided by the municipality in the
authority's service plan.
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.
(e) An authority may leverage funds with a municipality that
provides public transportation services in the territory of the
authority to finance a project.
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 territory 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 in 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 except that an independent contractor of the authority that
performs a function of the authority is liable for damages only to
the extent that the authority would be liable if the authority
itself were performing the function.
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) 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.
(f) In this subsection, "telecommunications provider" has
the meaning assigned by Section 51.002, Utilities Code.
Notwithstanding Subsection (a), an authority may not relocate the
property of a telecommunications provider on behalf of the provider
without the provider's permission.
(g) Subsections (e) and (f) do not apply if the power of
eminent domain is exercised.
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, after notice and a
hearing, 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
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) 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 fares, tolls, charges, or rents 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
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;
PENALTIES. (a) The executive committee by resolution may prohibit
the use of the public transportation system by a person without
payment of the appropriate fare for the use of the system and may
establish reasonable and appropriate methods to ensure that persons
using the public transportation system pay the appropriate fare for
that use.
(b) The executive committee by resolution may provide that a
fare for or charge for the use of the public transportation system
that is not paid incurs a reasonable administrative fee.
(c) An authority shall post signs designating each area in
which a person is prohibited from using the transportation system
without payment of the appropriate fare.
(d) A person commits an offense if the person or another for
whom the person is criminally responsible under Section 7.02, Penal
Code, uses the public transportation system without paying the
appropriate fare. An offense under this section is:
(1) a misdemeanor punishable by a fine not to exceed
$100; and
(2) not a crime of moral turpitude.
(e) If the person fails to provide proof that the person
paid the appropriate fare for the use of the public transportation
system and fails to pay any administrative fee assessed under
Subsection (b) on or before the 30th day after the date the
authority notifies the person that the person is required to pay the
amount of the fare and the administrative fee, it is prima facie
evidence that the person used the public transportation system
without paying the appropriate fare.
(f) The notice required by Subsection (e) may be included in
a citation issued to the person by a peace officer under Article
14.06, Code of Criminal Procedure, or by a fare enforcement officer
under Section 463.063, in connection with an offense relating to
the nonpayment of the appropriate fare for the use of the public
transportation system.
(g) It is an exception to the application of Subsection (d)
that on or before the 30th day after the date the authority notified
the person that the person is required to pay the amount of the fare
and any administrative fee assessed under Subsection (b), the
person:
(1) provided proof that the person paid the
appropriate fare at the time the person used the public
transportation system or at a later date or that the person was
exempt from payment; and
(2) paid the administrative fee assessed under
Subsection (b), if applicable.
(h) A justice court located in the territory of the
authority may enter into an agreement with the authority to try all
criminal cases that arise under Subsection (d). Notwithstanding
Articles 4.12 and 4.14, Code of Criminal Procedure, if a justice
court enters into an agreement with the authority:
(1) a criminal case that arises under Subsection (d)
must be tried in the justice court; and
(2) the justice court has exclusive jurisdiction in
all criminal cases that arise under Subsection (d).
Sec. 463.063. FARE ENFORCEMENT OFFICERS. (a) An authority
may employ or contract for persons to serve as fare enforcement
officers to enforce the payment of fares for use of the public
transportation system by:
(1) requesting and inspecting evidence showing
payment of the appropriate fare from a person using the public
transportation system; and
(2) issuing a citation to a person described by
Section 463.062(d).
(b) Before commencing duties as a fare enforcement officer,
a person must complete at least eight hours of training 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, badge, or insignia
that identifies the person as a fare enforcement officer; and
(2) work under the direction of the authority's chief
executive officer.
(d) A fare enforcement officer may:
(1) request evidence showing payment of the
appropriate fare from passengers of the public transportation
system or evidence showing exemption from the payment requirement;
(2) request personal identification or other
documentation designated by the authority from a passenger who does
not produce evidence showing payment of the appropriate fare on
request by the officer;
(3) instruct a passenger to immediately leave the
public transportation system if the passenger does not possess
evidence showing payment or exemption from payment of the
appropriate fare; or
(4) file a complaint in the appropriate court that
charges the person with an offense under Section 463.062(d).
(e) A fare enforcement officer may not carry a weapon while
performing duties under this section unless the officer is a
certified peace officer.
(f) A fare enforcement officer who is not a certified peace
officer is not a peace officer and has no authority to enforce a
criminal law, except as provided by this section.
Sec. 463.064. ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANE
USAGE. (a) The 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) The 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. CONTINUATION OF EXISTING RAIL USE. For
purposes of ownership or transfer of ownership of an interest in
real property, a 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 463.309.
(c) A copy of the notice of each election held under this
chapter shall be furnished to the Texas Transportation Commission
and the comptroller.
Sec. 463.069. ADDITIONAL FEE. (a) In addition to a toll or
other charge imposed under Section 367.011 or other law, an entity
that operates an international bridge may impose a fee for the use
of the bridge as follows:
(1) not more than $1 for passenger vehicles;
(2) not more than $2 for commercial motor vehicles;
and
(3) not more than 25 cents for pedestrians.
(b) Before a fee may be imposed under this section, the
entity must enter into a written agreement with an authority
relating to the imposition and disposition of the fee. The
agreement must provide:
(1) for collection of the fee by the entity and
remittance of the authority's portion of the fee to the authority
each month; and
(2) if more than one entity operates an international
bridge, for the division of the amount described by Subsection
(c)(1) among the entities.
(c) Of the fees collected under this section:
(1) 25 percent shall be retained by the entity for
transportation projects or complementary transportation services;
(2) 50 percent shall be used for a rail mass transit
system; and
(3) 25 percent shall be used for regional high
capacity transit.
(d) The percentage described by Subsection (c)(3) may be
retained by the entity if:
(1) the entity is a mass transit provider; and
(2) mass transit was provided in the municipality in
which the international bridge is located on or before January 1,
2019.
SUBCHAPTER C. MANAGEMENT OF AUTHORITY
Sec. 463.101. POWERS AND AUTHORITY OF EXECUTIVE COMMITTEE.
(a) 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.
(b) The executive committee is the local designated
recipient of funds committed to the authority by the federal
government.
Sec. 463.102. INVESTMENTS. The executive committee shall
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) An authority shall deposit all funds of the authority
that are not otherwise invested 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 OFFICER: DUTIES. (a) The
general manager or executive director, as designated under Section
463.101(a)(1), 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. 463.1055. PROCUREMENT RULES. (a) The executive
committee may adopt and enforce procurement procedures,
guidelines, and rules:
(1) defining the terms in and implementing Sections
463.106 and 463.107; or
(2) covering:
(A) the appointment of contracting officers;
(B) the solicitation for and award of contracts,
including the electronic transmission of bids and proposals and the
use of the reverse auction procedure, as defined by Section
2155.062, Government Code;
(C) the resolution of protests and contract
disputes;
(D) foreign currency transactions and
conversions and foreign exchange rate risk management; or
(E) other aspects of the procurement process for
domestic and international contracts.
(b) Sections 463.106 and 463.107 and the procedures,
guidelines, or rules adopted under this section confer no rights on
an actual or potential bidder, offeror, contractor, or other person
except as expressly stated in the procedures, guidelines, or rules.
(c) A procurement procedure, guideline, or rule covering
the electronic transmission of bids and proposals must provide:
(1) for the identification, security, and
confidentiality of an electronic bid or proposal;
(2) that an electronic bid or proposal is not required
to be sealed; and
(3) that an electronic bid or proposal remains
effectively unopened until the appropriate time.
Sec. 463.106. PURCHASES: COMPETITIVE BIDDING. (a) Except
as provided by Subsection (c) and as otherwise provided by this
chapter, 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 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.
(c) The executive committee may authorize the negotiation
of a contract without competitive sealed bids or proposals if:
(1) the aggregate amount involved in the contract is
$50,000 or less;
(2) the contract is for construction for which not
more than one bid or proposal is received;
(3) the contract is for services or property for which
there is only one source or for which it is otherwise impracticable
to obtain competition;
(4) the contract is to respond to an emergency for
which the public exigency does not permit the delay incident to the
competitive process;
(5) the contract is for personal or professional
services or services for which competitive bidding is precluded by
law; or
(6) the contract, without regard to form and which may
include bonds, notes, loan agreements, or other obligations, is for
the purpose of borrowing money or is a part of a transaction
relating to the borrowing of money, including:
(A) a credit support agreement, such as a line or
letter of credit or other debt guaranty;
(B) a bond, note, debt sale or purchase, trustee,
paying agent, remarketing agent, indexing agent, or similar
agreement;
(C) an agreement with a securities dealer,
broker, or underwriter; and
(D) any other contract or agreement considered by
the executive committee to be appropriate or necessary in support
of the authority's financing activities.
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 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 by the executive committee 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 final audit report 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. STATION OR TERMINAL COMPLEX: LOCATION. An
authority shall determine the location of a station or terminal
complex after notice and a hearing.
Sec. 463.1535. 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) An authority may exercise the powers granted to the
governing body of an issuer in connection with the issuance of
obligations and the execution of credit agreements under Chapter
1371, Government Code.
(c) A bond 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.
(d) Subsection (c) does not apply to:
(1) refunding bonds;
(2) bonds described by Subsection (a)(2); or
(3) commercial paper notes having maturities of 270
days or less that are authorized to be issued and reissued from time
to time under a commercial paper program in a maximum principal
amount that the chief financial officer certifies, based on
reasonable estimates of pledged revenue, can be repaid in full
within five years after the date of authorization of the commercial
paper program, taking into consideration any other bonds or notes
having a prior or parity lien on the pledged revenue, regardless of
the final date of the commercial paper program.
(e) A commercial paper program described by Subsection
(d)(3) may not be continued beyond five years unless, before
issuing any note with a maturity exceeding five years from the date
of the initial authorization of the program or five years from the
date of any new certification, the chief financial officer provides
a new certification that the maximum principal amount of the
program, based on reasonable estimates of pledged revenue, can be
repaid in full within five years after the date of the most recent
new certification, taking into consideration any other bonds or
notes having a prior or parity lien on the pledged revenue.
Sec. 463.203. BOND TERMS. (a) An authority's bonds are
fully negotiable. An authority may make the bonds redeemable
before maturity at the price and subject to the terms that are
provided in the authority's resolution authorizing the bonds. The
authority's resolution authorizing the bonds may contain any other
terms the executive committee considers appropriate.
(b) A bond issued under this subchapter is not a debt or
pledge of the faith and credit of the state, a political subdivision
included in the boundaries of the authority, or any other political
subdivision of the state.
(c) Each bond issued by an authority under this subchapter
must contain on its face a statement substantially to the effect
that:
(1) the state, a political subdivision included in the
boundaries of the authority, or any other political subdivision of
the state is not obligated to pay the principal of or the interest
on the bond; and
(2) the faith and credit and taxing power of the state,
a political subdivision included in the boundaries of the
authority, or any other political subdivision of the state are not
pledged to the payment of the principal of or the interest on the
bond.
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 any part of the revenue of the public
transportation system;
(2) mortgage any part of the public transportation
system, including any part of the system subsequently acquired;
(3) pledge all or part of funds the federal government
has committed to the authority as grants in aid; and
(4) provide that a pledge of revenue described by
Subdivision (1) is a first or subordinate lien or charge against
that revenue.
(b) Under Subsection (a)(2), 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)(3):
(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) 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. TAX EXEMPTION. The interest on bonds issued
by an authority is exempt from state and local taxes.
SUBCHAPTER F. EXECUTIVE COMMITTEE
Sec. 463.251. 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. 463.252. OFFICERS. (a) The officers elected by the
board of directors of the regional planning commission described by
Section 463.251(a) shall serve as the officers of the executive
committee.
(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. 463.253. CONFLICTS OF INTEREST. Members of the
executive committee and officers of the authority are subject to
Chapter 171, Local Government Code.
Sec. 463.254. 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. 463.255. VOTING REQUIREMENTS. A majority of the
members of the executive committee constitutes a quorum, and when a
quorum is present, action may be taken by a majority vote of the
members present unless the bylaws require a larger number for a
particular action.
SUBCHAPTER G. CREATION OF AUTHORITIES
Sec. 463.301. CREATION OF AUTHORITY AUTHORIZED. The board
of directors of the regional planning commission established for
the area included in the boundaries of the counties to which this
chapter applies may initiate the process to create a regional
transit authority to provide public transportation services in the
boundaries of those counties.
Sec. 463.302. INITIATING ORDER OR RESOLUTION: CONTENTS.
To initiate the process of creating an authority, the board of
directors described by Section 463.301 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. 463.303. 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 board of directors described by Section 463.301
shall give a copy of the notice to the Texas Department of
Transportation and the comptroller.
Sec. 463.304. CONDUCT OF HEARING. (a) The board of
directors described by Section 463.301 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. 463.305. 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 board of directors
described by Section 463.301, the board 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. 463.306. INTERIM EXECUTIVE COMMITTEE. (a) The
interim executive committee is composed as provided by Section
463.251 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.
(c) Service on the interim executive committee by a public
officer or employee is an additional duty of the office or
employment.
Sec. 463.307. APPROVAL OF SERVICE PLAN. Not later than the
45th day after the date the interim executive committee approves
the service plan, the commissioners court of each county creating
an authority must approve, by resolution or order, the service
plan.
Sec. 463.308. NOTICE OF INTENT TO CALL ELECTION. After
approval is received under Section 463.307, but not earlier than
the 61st day after the date the interim executive committee
approves a service plan, 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. 463.309. CONFIRMATION ELECTION. The interim executive
committee in calling the confirmation election shall submit to the
qualified voters of each county in the authority the following
proposition: "Shall the creation of (name of authority) be
confirmed?"
Sec. 463.310. CONDUCT OF ELECTION. The interim executive
committee shall canvass the returns and declare the results of the
election separately with respect to each county.
Sec. 463.311. 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 the
Texas Department of Transportation and 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. 463.312. EFFECT OF CREATION ON COMMUTER RAIL DISTRICT.
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. 463.313. COST OF ELECTION. The board of directors
described by Section 463.301 creating an authority shall pay the
cost of the confirmation election.
Sec. 463.314. EXPIRATION OF UNCONFIRMED AUTHORITY. An
authority that has not been confirmed expires on the third
anniversary of the effective date of a resolution or order
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. Sections 463.058(c) and (g) and Section 463.059,
Transportation Code, as added by this Act, take effect only if this
Act receives a two-thirds vote of all the members elected to each
house.
SECTION 4. 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, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 71 was passed by the House on April 9,
2019, by the following vote: Yeas 108, Nays 37, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 71 was passed by the Senate on May 10,
2019, by the following vote: Yeas 21, Nays 10.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor