Texas 2009 - 81st Regular

Texas House Bill HB2987 Compare Versions

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1	1	81R6156 JTS-D
2	2	By: Phillips H.B. No. 2987
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a nonsubstantive revision of statutes relating to
8	8	railroads; including conforming amendments.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	ARTICLE 1. GENERAL MATTERS
11	11	SECTION 1.01. PURPOSE OF ACT. (a) This Act is enacted as a
12	12	part of the state's continuing statutory revision program under
13	13	Section 323.007, Government Code. The program contemplates a
14	14	topic-by-topic revision of the state's general and permanent
15	15	statute law without substantive change.
16	16	(b) Consistent with the objectives of the statutory
17	17	revision program, the purpose of this Act is to make the law
18	18	encompassed by this Act more accessible and understandable by:
19	19	(1) rearranging the statutes into a more logical
20	20	order;
21	21	(2) employing a format and numbering system designed
22	22	to facilitate citation of the law and to accommodate future
23	23	expansion of the law;
24	24	(3) eliminating repealed, duplicative, expired, and
25	25	executed provisions; and
26	26	(4) restating the law in modern American English to
27	27	the greatest extent possible.
28	28	ARTICLE 2. TRANSFER OF PROVISIONS FROM TITLE 112, REVISED
29	29	STATUTES, TO TRANSPORTATION CODE
30	30	SECTION 2.01. Subtitle A, Title 5, Transportation Code, is
31	31	redesignated as Subtitle B, Title 5, Transportation Code, and the
32	32	subtitle heading is amended to read as follows:
33	33	SUBTITLE B [A]. STATE RAIL FACILITIES [TEXAS DEPARTMENT OF
34	34	TRANSPORTATION]
35	35	SECTION 2.02. Title 5, Transportation Code, is amended by
36	36	adding a new Subtitle A to read as follows:
37	37	SUBTITLE A. GENERAL PROVISIONS
38	38	CHAPTER 81. GENERAL PROVISIONS
39	39	Sec. 81.001. DEFINITIONS
40	40	Sec. 81.002. APPLICABILITY
41	41	SUBTITLE A. GENERAL PROVISIONS
42	42	CHAPTER 81. GENERAL PROVISIONS
43	43	Sec. 81.001. DEFINITIONS. In this title:
44	44	(1) "Commission" means the Texas Transportation
45	45	Commission.
46	46	(2) "Department" means the Texas Department of
47	47	Transportation. (New.)
48	48	Sec. 81.002. APPLICABILITY. In this title, a reference to a
49	49	railroad company includes:
50	50	(1) a railroad incorporated before September 1, 2007,
51	51	under former Title 112, Revised Statutes; or
52	52	(2) any other legal entity operating a railroad,
53	53	including an entity organized under the Texas Business Corporation
54	54	Act or the Texas Corporation Law provisions of the Business
55	55	Organizations Code. (V.A.C.S. Art. 6259a.)
56	56	SECTION 2.03. Title 5, Transportation Code, is amended by
57	57	adding Subtitles C and D to read as follows:
58	58	SUBTITLE C. RAILROADS GENERALLY
59	59	CHAPTER 111. REGULATION BY TEXAS DEPARTMENT OF TRANSPORTATION
60	60	SUBCHAPTER A. GENERAL PROVISIONS
61	61	Sec. 111.001. DEFINITION OF PERSON
62	62	Sec. 111.002. POWER AND AUTHORITY
63	63	Sec. 111.003. TRANSFER OF RAILROAD AUTHORITY
64	64	Sec. 111.004. REFERENCE TO RAILROAD COMMISSION
65	65	[Sections 111.005-111.050 reserved for expansion]
66	66	SUBCHAPTER B. REGULATION OF RAILROADS BY DEPARTMENT
67	67	Sec. 111.051. INSPECTION OF BOOKS AND PAPERS; PENALTY
68	68	Sec. 111.052. INFORMATION SOLICITED BY DEPARTMENT
69	69	Sec. 111.053. REFUSAL TO ANSWER BY RAILROAD COMPANY
70	70	OFFICER OR EMPLOYEE; CRIMINAL PENALTY
71	71	Sec. 111.054. REFUSAL TO ANSWER BY RAILROAD COMPANY;
72	72	PENALTY
73	73	Sec. 111.055. WITNESSES
74	74	Sec. 111.056. DEPOSITIONS
75	75	Sec. 111.057. PENALTY NOT OTHERWISE PROVIDED
76	76	Sec. 111.058. SUITS FOR PENALTY
77	77	[Sections 111.059-111.100 reserved for expansion]
78	78	SUBCHAPTER C. DEPARTMENT SAFETY REGULATION
79	79	Sec. 111.101. IMPLEMENTATION OF FEDERAL SAFETY LAWS;
80	80	FEES
81	81	Sec. 111.102. HAZARDOUS MATERIALS INSPECTIONS
82	82	SUBTITLE C. RAILROADS GENERALLY
83	83	CHAPTER 111. REGULATION BY TEXAS DEPARTMENT OF TRANSPORTATION
84	84	SUBCHAPTER A. GENERAL PROVISIONS
85	85	Sec. 111.001. DEFINITION OF PERSON. In this chapter:
86	86	(1) "person" includes a corporation, as provided by
87	87	Section 312.011, Government Code; and
88	88	(2) the definition of "person" assigned by Section
89	89	311.005, Government Code, does not apply. (New.)
90	90	Sec. 111.002. POWER AND AUTHORITY. To the extent not
91	91	preempted by federal law, the department:
92	92	(1) has power and authority over:
93	93	(A) railroads, including suburban, belt, and
94	94	terminal railroads;
95	95	(B) public wharves, docks, piers, elevators,
96	96	warehouses, sheds, tracks, and other property used in connection
97	97	with railroads; and
98	98	(C) persons, associations, and private or
99	99	municipal corporations that own or operate a railroad, or a wharf,
100	100	dock, pier, elevator, warehouse, shed, track, or other property
101	101	used in connection with a railroad; and
102	102	(2) shall govern and regulate those railroads,
103	103	persons, associations, and corporations and prevent abuses in the
104	104	conduct of their business. (V.A.C.S. Art. 6445, Subsec. (a).)
105	105	Sec. 111.003. TRANSFER OF RAILROAD AUTHORITY. On October 1,
106	106	2005, all powers and duties of the Railroad Commission of Texas that
107	107	related primarily to railroads and the regulation of railroads and
108	108	that existed on that date were transferred to the department, as
109	109	provided by Chapter 281, Acts of the 79th Legislature, Regular
110	110	Session, 2005. (V.A.C.S. Art. 6445, Subsec. (b).)
111	111	Sec. 111.004. REFERENCE TO RAILROAD COMMISSION. Any
112	112	reference in law to the Railroad Commission of Texas that relates
113	113	primarily to railroads and the regulation of railroads means the
114	114	department. (V.A.C.S. Art. 6445, Subsec. (c).)
115	115	[Sections 111.005-111.050 reserved for expansion]
116	116	SUBCHAPTER B. REGULATION OF RAILROADS BY DEPARTMENT
117	117	Sec. 111.051. INSPECTION OF BOOKS AND PAPERS; PENALTY. (a)
118	118	A member of the commission or a person authorized in writing by a
119	119	member of the commission under the hand and seal of the department
120	120	may at any time:
121	121	(1) inspect the books and papers of a railroad
122	122	company; and
123	123	(2) examine under oath a railroad company officer,
124	124	agent, or employee in relation to the business and affairs of the
125	125	company.
126	126	(b) A railroad company that refuses to permit an examination
127	127	of the company's books and papers under Subsection (a) is liable to
128	128	the state, for each violation, for a penalty of not less than $125
129	129	or more than $500 for each day the company fails or refuses to
130	130	permit the examination.
131	131	(c) An officer, agent, or employee of a railroad company who
132	132	possesses or controls any book or paper of the company commits an
133	133	offense if, after proper demand, the officer, agent, or employee
134	134	fails or refuses to exhibit, to any member of the commission or any
135	135	person authorized to investigate, the book or paper. An offense
136	136	under this subsection is a misdemeanor punishable by a fine of not
137	137	less than $125 or more than $500. (V.A.C.S. Arts. 6464, 6465,
138	138	6559i-1.)
139	139	Sec. 111.052. INFORMATION SOLICITED BY DEPARTMENT. (a)
140	140	The department shall as often as necessary provide each railroad
141	141	company a questionnaire designed to elicit all information
142	142	concerning the railroad.
143	143	(b) A railroad company receiving a questionnaire under
144	144	Subsection (a) shall properly fill out the questionnaire and answer
145	145	each question fully and correctly. A railroad company that is
146	146	unable to answer a question shall give satisfactory reason for the
147	147	inability to answer.
148	148	(c) A railroad company shall return the completed
149	149	questionnaire, sworn to by the proper officer of the company, to the
150	150	department not later than the 30th day after the date the company
151	151	received the questionnaire. (V.A.C.S. Art. 6467.)
152	152	Sec. 111.053. REFUSAL TO ANSWER BY RAILROAD COMPANY OFFICER
153	153	OR EMPLOYEE; CRIMINAL PENALTY. (a) An officer or employee of a
154	154	railroad company commits an offense if the officer or employee:
155	155	(1) fails or refuses to fill out and return a
156	156	questionnaire to the department as required by law;
157	157	(2) fails or refuses to answer any question in a
158	158	questionnaire;
159	159	(3) gives a false answer to any question in a
160	160	questionnaire if the answer to the question is within the officer's
161	161	or employee's knowledge; or
162	162	(4) evades the answer to any question in a
163	163	questionnaire.
164	164	(b) An offense under this section is a misdemeanor
165	165	punishable by a fine of $500 for each day that the officer or
166	166	employee violates this section after the date the questionnaire is
167	167	due to the department. (V.A.C.S. Art. 6559i-2.)
168	168	Sec. 111.054. REFUSAL TO ANSWER BY RAILROAD COMPANY;
169	169	PENALTY. (a) A railroad company is liable to the state for a
170	170	penalty of $500 if:
171	171	(1) an officer or employee of the company:
172	172	(A) fails or refuses to fill out and return a
173	173	questionnaire under Section 111.052;
174	174	(B) fails or refuses to answer a question in a
175	175	questionnaire under Section 111.052;
176	176	(C) gives a false answer to a question in a
177	177	questionnaire under Section 111.052 and the fact inquired of is
178	178	within the officer's or employee's knowledge; or
179	179	(D) evades the answer to such a question in a
180	180	questionnaire under Section 111.052; and
181	181	(2) it appears that the officer or employee acted in
182	182	obedience to the company's direction, permission, or request in the
183	183	officer's or employee's failure, refusal, or evasion.
184	184	(b) The department may prescribe a system of bookkeeping to
185	185	be observed by each railroad company that receives a questionnaire
186	186	under Section 111.052, under the penalties of Subsection (a).
187	187	(V.A.C.S. Art. 6468.)
188	188	Sec. 111.055. WITNESSES. (a) This section applies only to
189	189	the extent that it does not conflict with Chapter 2001, Government
190	190	Code.
191	191	(b) In an examination or investigation under this chapter,
192	192	the department may compel the attendance of witnesses and may issue
193	193	subpoenas for witnesses in accordance with rules prescribed by the
194	194	department. The officer to whom process is directed shall serve it.
195	195	(c) A witness who appears before the department by order of
196	196	the department at a place outside the county where the witness
197	197	resides is entitled to receive for the witness's attendance:
198	198	(1) $1 for each day; and
199	199	(2) three cents for each mile the witness travels, by
200	200	the nearest practical route, in going to and returning from that
201	201	place.
202	202	(d) On the presentation of proper vouchers, sworn to by the
203	203	witness and approved by the department, the comptroller shall pay
204	204	the witness the amount to which the witness is entitled.
205	205	(e) A witness is not entitled to fees or mileage if, when
206	206	summoned at the request of a railroad, the witness:
207	207	(1) is directly or indirectly interested in the
208	208	railroad;
209	209	(2) is in any way interested in stock, a bond, a
210	210	mortgage, or a security, or the earnings of the railroad; or
211	211	(3) was an officer, agent, or employee of the
212	212	railroad.
213	213	(f) A witness furnished with free transportation may not
214	214	receive pay for the distance the witness travels on the free
215	215	transportation.
216	216	(g) The department may issue an attachment as in civil cases
217	217	for a witness who fails or refuses to obey a subpoena and may compel
218	218	the witness to appear before the department and testify on a matter
219	219	as the department requires.
220	220	(h) If a witness, after being summoned, fails or refuses to
221	221	attend or to answer a question asked of the witness that the witness
222	222	would be required to answer if in court, the department may fine and
223	223	imprison the witness for contempt in the same manner that a judge of
224	224	the district court might do under similar circumstances.
225	225	(i) The claim that testimony might tend to incriminate the
226	226	person giving the testimony does not excuse a witness from
227	227	testifying, but the evidence or testimony may not be used against
228	228	the witness in a criminal trial. (New; V.A.C.S. Art. 6471.)
229	229	Sec. 111.056. DEPOSITIONS. (a) The department may in its
230	230	discretion issue process to take the testimony of a witness by a
231	231	written or oral deposition instead of compelling the personal
232	232	attendance of the witness.
233	233	(b) An officer executing process issued under a provision of
234	234	this subtitle or Subtitle D may charge a fee as determined by the
235	235	department, not to exceed fees prescribed by law for similar
236	236	services. (V.A.C.S. Art. 6472.)
237	237	Sec. 111.057. PENALTY NOT OTHERWISE PROVIDED. A railway
238	238	company doing business in this state is liable to the state for a
239	239	penalty of not more than $5,000 each time the railway company:
240	240	(1) violates any provision of this subtitle or
241	241	Subtitle D or fails or refuses to perform any duty imposed upon it
242	242	for which a penalty has not been provided by law; or
243	243	(2) fails, neglects, or refuses to obey any
244	244	requirement, order, judgment, or decree of the department.
245	245	(V.A.C.S. Art. 6476.)
246	246	Sec. 111.058. SUITS FOR PENALTY. (a) For a penalty
247	247	provided under this chapter that is recoverable by the state, the
248	248	attorney general, or an attorney acting under the direction of the
249	249	attorney general, may bring suit in the name of the state in:
250	250	(1) Travis County; or
251	251	(2) any county in or through which the railroad runs.
252	252	(b) The attorney bringing a suit under this section is
253	253	entitled to receive:
254	254	(1) a fee to be paid by the state of $50 for each
255	255	penalty recovered and collected by the attorney; and
256	256	(2) 10 percent of the amount collected.
257	257	(c) In all suits arising under this chapter or Section
258	258	112.003, the rules of evidence shall be the same as in ordinary
259	259	civil actions, except as otherwise provided by this chapter.
260	260	(V.A.C.S. Art. 6477 (part).)
261	261	[Sections 111.059-111.100 reserved for expansion]
262	262	SUBCHAPTER C. DEPARTMENT SAFETY REGULATION
263	263	Sec. 111.101. IMPLEMENTATION OF FEDERAL SAFETY LAWS; FEES.
264	264	(a) The department may perform any act, adopt any rules, and issue
265	265	any orders as permitted by the Federal Railroad Safety Act of 1970,
266	266	originally codified as 45 U.S.C. Sections 421, 431 et seq. and
267	267	recodified in 1994 as 49 U.S.C. Sections 20101-20117, 20131,
268	268	20133-20141, 20143, 21301, 21302, 21304, 21311, 24902, and 24905
269	269	and Sections 4(b)(1), (i), and (t) of Pub. L. No. 103-272.
270	270	(b) The department by rule shall:
271	271	(1) adopt reasonable fees to be assessed annually
272	272	against railroads operating within the state; and
273	273	(2) establish the method by which the fees are
274	274	calculated and assessed.
275	275	(c) The total amount of fees estimated to be collected by
276	276	rules adopted by the department under this section may not exceed
277	277	the amount estimated by the department to be necessary to recover
278	278	the costs of administering the department's rail safety program.
279	279	(d) In adopting a fee structure, the department may consider
280	280	the gross ton miles for railroad operations within this state for
281	281	each railroad operating in the state to provide for the equitable
282	282	allocation among railroads of the cost of administering the
283	283	department's rail safety program.
284	284	(e) A fee collected under this section shall be deposited to
285	285	the credit of the general revenue fund to be used for the rail
286	286	safety program. (V.A.C.S. Art. 6448a.)
287	287	Sec. 111.102. HAZARDOUS MATERIALS INSPECTIONS. (a) The
288	288	department may enter private property on which a railroad facility
289	289	that is connected to but not a part of a general railroad system of
290	290	transportation is located at a reasonable time and in a reasonable
291	291	manner to perform an inspection, investigation, or surveillance of
292	292	facilities, equipment, records, and operations relating to the
293	293	packaging, loading, or transportation of hazardous materials to
294	294	determine whether the railroad facility complies with the
295	295	applicable safety requirements of this chapter or a rule adopted
296	296	under this chapter.
297	297	(b) In performing an inspection under this section, the
298	298	department may not require a railroad facility owner or operator to
299	299	alter or cease rail operations.
300	300	(c) Any inspection, investigation, or surveillance
301	301	performed on the site of a manufacturing facility shall be
302	302	performed in compliance with the safety rules of the facility,
303	303	including a rule regarding security clearance at the front gate if
304	304	appropriate. (V.A.C.S. Art. 6448b.)
305	305	CHAPTER 112. POWERS AND DUTIES OF RAILROADS
306	306	SUBCHAPTER A. GENERAL PROVISIONS
307	307	Sec. 112.001. DEFINITION OF PERSON
308	308	Sec. 112.002. GENERAL RIGHTS OF RAILROADS
309	309	Sec. 112.003. DAMAGES
310	310	[Sections 112.004-112.050 reserved for expansion]
311	311	SUBCHAPTER B. ACQUISITION AND USE OF PROPERTY BY RAILROAD OR OF RAILROAD
312	312	RAILROAD
313	313	Sec. 112.051. ENTRY ONTO PRIVATE PROPERTY
314	314	Sec. 112.052. ACQUISITION OF PROPERTY FOR CHANGE,
315	315	LINE
316	316	Sec. 112.053. CONDEMNATION OF PROPERTY: WHEN RAILROAD
317	317	COMPANY AND OWNER DISAGREE
318	318	Sec. 112.054. CONDEMNATION OF PROPERTY: CERTAIN
319	319	TERMINAL SWITCHING RAILROADS
320	320	Sec. 112.055. RIGHT-OF-WAY ACQUIRED BY CONDEMNATION
321	321	Sec. 112.056. CONDEMNATION OF PROPERTY FOR CERTAIN
322	322	ROADS
323	323	Sec. 112.057. CONSTRUCTION ON OR NEAR CERTAIN
324	324	WATERWAYS OR ROADS
325	325	Sec. 112.058. INTERSECTION OF RAIL LINE AND ROAD OR
326	326	STREET
327	327	Sec. 112.059. CROSSINGS OF PUBLIC ROADS
328	328	Sec. 112.060. CONVERSION OF PROPERTY IN CUSTODY OF
329	329	RAILROAD COMPANY
330	330	Sec. 112.061. SUIT INVOLVING RAILROAD COMPANY PROPERTY
331	331	Sec. 112.062. RAILROAD COMPANY PROPERTY SUBJECT TO EXECUTION;
332	332	CHARACTERIZATION OF ROLLING STOCK
333	333	[Sections 112.063-112.100 reserved for expansion]
334	334	SUBCHAPTER C. SAFETY
335	335	Sec. 112.101. CATTLE GUARDS
336	336	Sec. 112.102. LIABILITY FOR DEATH OR INJURY TO STOCK
337	337	Sec. 112.103. DUTY TO STOP AND RENDER AID; OFFENSE
338	338	[Sections 112.104-112.150 reserved for expansion]
339	339	SUBCHAPTER D. LIABILITY FOR INJURIES TO EMPLOYEES
340	340	Sec. 112.151. APPLICABILITY OF SUBCHAPTER
341	341	Sec. 112.152. LIABILITY GENERALLY FOR INJURY TO OR
342	342	DEATH OF EMPLOYEE
343	343	Sec. 112.153. CONTRIBUTORY NEGLIGENCE
344	344	Sec. 112.154. ASSUMED RISK
345	345	Sec. 112.155. CERTAIN PROVISIONS VOID
346	346	Sec. 112.156. LIABILITY OFFSET
347	347	Sec. 112.157. CONSTRUCTION OF CERTAIN SECTIONS
348	348	Sec. 112.158. INJURY TO FELLOW SERVANT
349	349	CHAPTER 112. POWERS AND DUTIES OF RAILROADS
350	350	SUBCHAPTER A. GENERAL PROVISIONS
351	351	Sec. 112.001. DEFINITION OF PERSON. In this chapter:
352	352	(1) "person" includes a corporation, as provided by
353	353	Section 312.011, Government Code; and
354	354	(2) the definition of "person" assigned by Section
355	355	311.005, Government Code, does not apply. (New.)
356	356	Sec. 112.002. GENERAL RIGHTS OF RAILROADS. (a) A railroad
357	357	company has the right to succession.
358	358	(b) A railroad company may:
359	359	(1) sue, be sued, plead, and be impleaded in its
360	360	corporate name;
361	361	(2) have and use a seal and alter the seal at will;
362	362	(3) receive and convey persons and property on its
363	363	railway by any mechanical power, including the use of steam;
364	364	(4) regulate the time and manner in which, and the
365	365	compensation for which, passengers and property are transported,
366	366	subject to the provisions of law;
367	367	(5) exercise the power of eminent domain for the
368	368	purposes prescribed by this subtitle or Subtitle D;
369	369	(6) purchase, hold, and use all property as necessary
370	370	for the construction and use of its railway, stations, and other
371	371	accommodations necessary to accomplish company objectives, and
372	372	convey that property when no longer required for railway use; and
373	373	(7) take, hold, and use property granted to the
374	374	company to aid in the construction and use of its railway, and
375	375	convey that property in a manner consistent with the terms of the
376	376	grant when the property is no longer required for railway use.
377	377	(V.A.C.S. Art. 6341.)
378	378	Sec. 112.003. DAMAGES. A railroad subject to this subtitle
379	379	or Subtitle D is liable to a person, firm, or corporation injured
380	380	for the damages resulting from:
381	381	(1) a prohibited or unlawful act or thing that the
382	382	railroad does or causes or permits to be done; or
383	383	(2) failure of the railroad to perform an act the
384	384	railroad is required to perform under this subtitle or Subtitle D.
385	385	(V.A.C.S. Art. 6475.)
386	386	[Sections 112.004-112.050 reserved for expansion]
387	387	SUBCHAPTER B. ACQUISITION AND USE OF PROPERTY BY RAILROAD OR OF
388	388	RAILROAD
389	389	Sec. 112.051. ENTRY ONTO PRIVATE PROPERTY. (a) A railroad
390	390	company is entitled to make an examination and survey for the
391	391	company's proposed railway, to be performed as necessary to select
392	392	the most advantageous route for the proposed railway, and, subject
393	393	to Subsection (c), may enter on the lands or waters of any person or
394	394	corporation for that purpose.
395	395	(b) A railroad company is responsible for any damages
396	396	arising from an examination or survey under this section.
397	397	(c) Except for the purposes of performing a lineal survey, a
398	398	railroad company may not enter on private real property for the
399	399	purpose of condemning the property or any material on the property
400	400	for any purpose until the company agrees with and pays the owner of
401	401	the property all damages that may be caused to the owner's property
402	402	by the condemnation of the property and by the construction of the
403	403	company's road. (V.A.C.S. Arts. 6318, 6337.)
404	404	Sec. 112.052. ACQUISITION OF PROPERTY FOR CHANGE,
405	405	RELOCATION, OR ABANDONMENT OF RAILROAD LINE. (a) Subject to
406	406	Subsection (b), a railroad company or a receiver of a railroad that
407	407	changes, relocates, or abandons a line of railroad in this state may
408	408	acquire by condemnation or otherwise land for:
409	409	(1) right-of-way;
410	410	(2) depot grounds;
411	411	(3) shops;
412	412	(4) roundhouses;
413	413	(5) water supply sites;
414	414	(6) sidings;
415	415	(7) switches;
416	416	(8) spurs; or
417	417	(9) any other purpose connected with or necessary to
418	418	the building or operating of the line of railroad, as changed,
419	419	relocated, or abandoned.
420	420	(b) Property acquired under this section must be declared
421	421	for and charged with public use. (V.A.C.S. Art. 6351.)
422	422	Sec. 112.053. CONDEMNATION OF PROPERTY: WHEN RAILROAD
423	423	COMPANY AND OWNER DISAGREE. (a) A railroad company may acquire
424	424	property by condemnation if the company cannot agree with the owner
425	425	for the purchase of the property and the property is required for
426	426	any of the following purposes:
427	427	(1) the incorporation of the railroad;
428	428	(2) the transaction of company business;
429	429	(3) depots, station buildings, and machine and repair
430	430	shops;
431	431	(4) the construction of reservoirs for the water
432	432	supply;
433	433	(5) the right-of-way, or new or additional
434	434	right-of-way;
435	435	(6) a change or relocation;
436	436	(7) a roadbed;
437	437	(8) the shortening of a line;
438	438	(9) the reduction of grades;
439	439	(10) the double tracking of the railroad or the
440	440	construction and operation of tracks; or
441	441	(11) any other purpose connected with or necessary to
442	442	the building, operating, or running of the railroad.
443	443	(b) A railroad company may not, under this section, condemn
444	444	property that is located more than two miles from the company's
445	445	right-of-way. (V.A.C.S. Art. 6336.)
446	446	Sec. 112.054. CONDEMNATION OF PROPERTY: CERTAIN TERMINAL
447	447	SWITCHING RAILROADS. (a) This section applies only to the
448	448	condemnation of property for a terminal switching railroad that:
449	449	(1) handles fewer than 10,000 but more than 3,000
450	450	carloads a year; and
451	451	(2) operates in a single county that:
452	452	(A) has a population of 110,000 or more;
453	453	(B) is not adjacent to the Texas border; and
454	454	(C) does not contain a portion of a national
455	455	forest.
456	456	(b) The power to condemn property given to a railroad
457	457	company under this subtitle or Subtitle D, including Section
458	458	112.052 or 112.053, does not apply to any property used for or
459	459	designated under local zoning regulations for residential use
460	460	unless the use of the condemned property is authorized under or in
461	461	conformity with local zoning or development regulations. (V.A.C.S.
462	462	Art. 6336a.)
463	463	Sec. 112.055. RIGHT-OF-WAY ACQUIRED BY CONDEMNATION. (a)
464	464	A right-of-way that a railway company in this state acquires by
465	465	condemnation does not include a fee simple estate in public or
466	466	private land.
467	467	(b) A right-of-way that a railway company acquires by
468	468	condemnation is not lost on forfeiture or expiration of the railway
469	469	company's charter. The right-of-way remains subject to an
470	470	extension of the charter or the grant of a new charter, and a new
471	471	condemnation of the way is not required. (V.A.C.S. Art. 6339.)
472	472	Sec. 112.056. CONDEMNATION OF PROPERTY FOR CERTAIN ROADS.
473	473	(a) Subject to Subsection (b), a corporation created to build,
474	474	maintain, and operate a line of railroads to a mine, gin, quarry,
475	475	manufacturing plant, or mill may acquire by condemnation land
476	476	necessary for the right-of-way for a road connecting the mine, gin,
477	477	quarry, manufacturing plant, or mill to the nearest line of
478	478	railroad.
479	479	(b) The corporation may condemn property under this section
480	480	only if the corporation declares itself a common carrier and its
481	481	railroads public highways, placing the road under the control of
482	482	the department. (V.A.C.S. Art. 6550.)
483	483	Sec. 112.057. CONSTRUCTION ON OR NEAR CERTAIN WATERWAYS OR
484	484	ROADS. (a) A railroad company may construct the company's road
485	485	across, along, or on any stream of water, water course, street,
486	486	highway, turnpike, or canal where the route of the company's
487	487	railway intersects or touches the stream, water course, street,
488	488	highway, turnpike, or canal.
489	489	(b) The railroad company shall:
490	490	(1) restore the stream, water course, street, highway,
491	491	turnpike, or canal to its former state or to a state in which its
492	492	usefulness is not unnecessarily impaired; and
493	493	(2) keep the crossing in repair. (V.A.C.S. Art.
494	494	6320.)
495	495	Sec. 112.058. INTERSECTION OF RAIL LINE AND ROAD OR STREET.
496	496	Sections 112.051, 112.053, 112.054, 112.055, 112.057, 112.059, and
497	497	112.061 do not affect a law that requires a railroad company to
498	498	provide a proper crossing at each intersection of a road or street.
499	499	(V.A.C.S. Art. 6326.)
500	500	Sec. 112.059. CROSSINGS OF PUBLIC ROADS. (a) Each railroad
501	501	company in this state shall place and keep the portion of the
502	502	company's roadbed and right-of-way over or across which a public
503	503	county road runs in proper condition for the use of the traveling
504	504	public.
505	505	(b) A railroad company is liable for a penalty of $10 for
506	506	each week the company does not comply with the requirements of this
507	507	section if:
508	508	(1) the overseer of a public road gives written notice
509	509	to the company's person responsible for maintaining the area where
510	510	the work is needed; and
511	511	(2) the company fails to complete the work or repairs
512	512	within 30 days after the date written notice is given under
513	513	Subdivision (1).
514	514	(c) A county attorney, on the making of an affidavit of the
515	515	facts by any person, shall immediately institute a suit against the
516	516	railroad company to recover the penalty provided by this section. A
517	517	county attorney's wilful failure or refusal to comply with this
518	518	subsection is sufficient cause for the county attorney to be
519	519	removed from office unless it is evident that the suit could not
520	520	have been maintained.
521	521	(d) A proceeding under this section shall be conducted in
522	522	the name of the county and in the same manner as a proceeding in a
523	523	civil suit.
524	524	(e) A county attorney is entitled to a fee of $10, taxed as
525	525	costs, for each suit maintained by the county attorney under this
526	526	section. If two or more penalties are sought in the same suit only
527	527	one fee may be recovered under this subsection.
528	528	(f) If the county is cast in the suit, the county may not be
529	529	charged costs.
530	530	(g) A penalty collected under this section shall be
531	531	deposited in the road and bridge fund of the county in which the
532	532	suit is brought. (V.A.C.S. Art. 6327.)
533	533	Sec. 112.060. CONVERSION OF PROPERTY IN CUSTODY OF RAILROAD
534	534	COMPANY. (a) A railroad company in this state or a receiver of a
535	535	railroad company in this state may not confiscate or otherwise
536	536	convert to the company's or receiver's own use, in whole or in
537	537	substantial part, a carload shipment of any article or commodity of
538	538	freight traffic received by the company or receiver for
539	539	transportation and delivery without the express consent of the
540	540	owner or consignee of the shipment.
541	541	(b) An act of an agent, officer, or employee of a railroad
542	542	company or receiver under this section that is within the apparent
543	543	scope of the agent's, officer's, or employee's duties or authority
544	544	with respect to the confiscation or conversion is considered to be
545	545	an act of the company or receiver.
546	546	(c) This section does not apply to a conversion of freight
547	547	that has been damaged or intermingled with other freight in wrecks,
548	548	or to refused or unclaimed freight, that the railroad is unable to
549	549	deliver.
550	550	(d) In addition to all other remedies or penalties that may
551	551	be provided by law, a railroad company or receiver that violates
552	552	this section is subject to:
553	553	(1) a penalty in favor of the state of not less than
554	554	$125 or more than $500; and
555	555	(2) an additional penalty in favor of the owner or
556	556	consignee of the converted shipment equal to twice the amount of the
557	557	purchase price of the converted shipment. (V.A.C.S. Arts. 6366,
558	558	6367.)
559	559	Sec. 112.061. SUIT INVOLVING RAILROAD COMPANY PROPERTY.
560	560	(a) If a railroad company is sued for property occupied by the
561	561	company for railroad purposes or for damages to property occupied
562	562	by the company for railroad purposes, the court in which the suit is
563	563	pending may determine all matters in dispute between the parties,
564	564	including the condemnation of the property, on petition or cross
565	565	bill by the defendant requesting that remedy.
566	566	(b) A plea for condemnation under Subsection (a) is
567	567	considered an admission of the plaintiff's title to the property.
568	568	(V.A.C.S. Art. 6338.)
569	569	Sec. 112.062. RAILROAD COMPANY PROPERTY SUBJECT TO
570	570	EXECUTION; CHARACTERIZATION OF ROLLING STOCK. (a) All or any part
571	571	of a railroad company's real and personal property is subject to
572	572	execution and sale in the same manner as the property of
573	573	individuals.
574	574	(b) No portion of a railroad company's real or personal
575	575	property is exempt from execution and sale.
576	576	(c) The rolling stock and all other movable property
577	577	belonging to a railroad company is considered personal property.
578	578	(V.A.C.S. Art. 6420.)
579	579	[Sections 112.063-112.100 reserved for expansion]
580	580	SUBCHAPTER C. SAFETY
581	581	Sec. 112.101. CATTLE GUARDS. (a) A railroad company whose
582	582	railroad passes through a field or enclosure shall construct and
583	583	keep in good repair a good and sufficient cattle guard or stop at
584	584	each location the railroad enters the field or enclosure.
585	585	(b) If a field or enclosure through which a railway passes
586	586	is enlarged or extended, or the owner of any land over which a
587	587	railway runs clears and opens a field so as to include the track of a
588	588	railway, the railroad company shall construct and keep in repair
589	589	good and sufficient cattle guards or stops at the borders of the
590	590	extended enclosures or fields or the new fields.
591	591	(c) A cattle guard or stop required by this section shall be
592	592	constructed and kept in repair to protect the fields and enclosures
593	593	from the depredations of stock of any kind.
594	594	(d) If a railroad company fails to construct and keep in
595	595	repair a cattle guard or stop required by this section, the owner of
596	596	the enclosure or field may:
597	597	(1) have the required cattle guards or stops
598	598	constructed at the proper places and kept in repair; and
599	599	(2) recover from the company the costs of constructing
600	600	or repairing the required cattle guards or stops, unless it is shown
601	601	that the enlargement or extension was made capriciously and with
602	602	intent to harass and molest the company.
603	603	(e) A railroad company that neglects to construct or keep in
604	604	repair a proper cattle guard or stop as required by this section is
605	605	liable to a party injured by the neglect for all damages that may
606	606	result from the neglect. The injured party may seek to recover the
607	607	damages by filing suit. (V.A.C.S. Art. 6400.)
608	608	Sec. 112.102. LIABILITY FOR DEATH OR INJURY TO STOCK. (a)
609	609	Subject to Subsection (b), a railroad company is liable to the owner
610	610	for the value of all stock killed or injured by the company's
611	611	locomotives and cars operating over the company's railways,
612	612	regardless of whether the county or subdivision of a county in which
613	613	the death or injury occurs has, under Subchapter B or D, Chapter
614	614	143, Agriculture Code, prohibited certain animals from running at
615	615	large.
616	616	(b) A railroad company that fences its railway is liable
617	617	only for injury to stock that results from a want of ordinary care.
618	618	(V.A.C.S. Art. 6402.)
619	619	Sec. 112.103. DUTY TO STOP AND RENDER AID; OFFENSE. (a) In
620	620	this section, "operator" means the person assigned by a railroad
621	621	company to be responsible for the operation of a train.
622	622	(b) An operator who is involved, while operating a
623	623	locomotive, in an accident resulting in injury to or death of a
624	624	person or damage to a vehicle that is driven or attended by a person
625	625	shall immediately stop the locomotive at the scene of the accident.
626	626	(c) The operator shall render to a person injured in the
627	627	accident reasonable assistance, including transporting, or the
628	628	making of arrangements for transporting, the person to a physician,
629	629	surgeon, or hospital for medical or surgical treatment if it is
630	630	apparent that treatment is necessary or if the injured person
631	631	requests transportation.
632	632	(d) A person who violates this section commits an offense.
633	633	An offense under this subsection is a Class C misdemeanor.
634	634	(V.A.C.S. Art. 6419b; New.)
635	635	[Sections 112.104-112.150 reserved for expansion]
636	636	SUBCHAPTER D. LIABILITY FOR INJURIES TO EMPLOYEES
637	637	Sec. 112.151. APPLICABILITY OF SUBCHAPTER.
638	638	Notwithstanding any other law, this subchapter does not apply to
639	639	the portion of a person's, receiver's, or corporation's operations
640	640	that:
641	641	(1) consists solely of the fabrication, manufacture,
642	642	repair, or storage of rail rolling stock; or
643	643	(2) uses rail cars solely as a part of its own internal
644	644	manufacturing or production process. (V.A.C.S. Art. 6432A.)
645	645	Sec. 112.152. LIABILITY GENERALLY FOR INJURY TO OR DEATH OF
646	646	EMPLOYEE. (a) A corporation, receiver, or other person operating a
647	647	railroad in this state is liable for damages to a person who, while
648	648	employed by the railroad operator, is injured as a result of:
649	649	(1) the negligence of an officer, agent, or employee
650	650	of the railroad operator; or
651	651	(2) any defect or insufficiency due to the railroad
652	652	operator's negligence in its cars, engines, appliances, machinery,
653	653	track, roadbed, works, boats, wharves, or other equipment.
654	654	(b) If an employee dies as a result of the negligence,
655	655	defect, or insufficiency described by Subsection (a), the railroad
656	656	operator is liable to the employee's personal representative for
657	657	the benefit of the employee's surviving spouse and children and the
658	658	employee's parents or, if the employee is not survived by a spouse,
659	659	child, or parent, to the employee's next of kin who is dependent on
660	660	the employee.
661	661	(c) Damages recovered under Subsection (b) are not liable
662	662	for the debts of the deceased and shall be divided among the persons
663	663	entitled to the benefit of the action who are living, in shares the
664	664	fact finder considers proper.
665	665	(d) An action under Subsection (b) may be brought without
666	666	administration by all parties entitled to damages under that
667	667	subsection, or by any one or more of those parties, for the benefit
668	668	of all of those parties. If all parties entitled to recover are not
669	669	before the court, the action may proceed for the benefit of the
670	670	parties who are before the court. (V.A.C.S. Art. 6439.)
671	671	Sec. 112.153. CONTRIBUTORY NEGLIGENCE. (a) In an action
672	672	under Section 112.152, the employee's contributory negligence is
673	673	not a bar to recovery but the fact finder shall reduce the
674	674	employee's damages in proportion to the amount of contributory
675	675	negligence attributable to the employee.
676	676	(b) An employee may not be found contributorily negligent in
677	677	a case in which the railroad operator's violation of a statute
678	678	enacted for the safety of employees contributed to the employee's
679	679	injury or death. (V.A.C.S. Art. 6440.)
680	680	Sec. 112.154. ASSUMED RISK. (a) The plea of assumed risk
681	681	is not available as a bar to recovery of damages in a suit brought in
682	682	a court in this state against a corporation, receiver, or other
683	683	person operating a railroad, interurban railway, or street railway
684	684	in this state for the recovery of damages for the death of or
685	685	personal injury to an employee caused by the wrong or negligence of
686	686	the railroad or railway operator. An employee assumes the ordinary
687	687	risk incident to the employee's employment but does not assume the
688	688	risk resulting from any negligence of the employee's employer,
689	689	regardless of whether the negligence is known to the employee.
690	690	(b) If in a suit described by Subsection (a) it is alleged
691	691	and proven that the deceased or injured employee was negligent in
692	692	continuing in the service of the railroad or railway operator in
693	693	view of the risk, dangers, and hazards of which the employee knew or
694	694	must necessarily have known, in the ordinary performance of the
695	695	employee's duties, that fact does not bar the employee's recovery,
696	696	but is considered contributory negligence. If contributory
697	697	negligence described by this subsection proximately caused or
698	698	contributed to the cause of the death or injury, the damages
699	699	recoverable by the employee or the employee's heirs or
700	700	representatives shall be reduced only in proportion to the amount
701	701	of negligence attributable to the employee.
702	702	(c) An employee of a railway company who is injured while
703	703	engaged in the operation of a train in this state that is propelled
704	704	by two or more engines is not considered to have assumed the risk of
705	705	that injury if the injury is a result of the operation of two or more
706	706	engines on the train rather than one.
707	707	(d) In an action against a railroad operator under Section
708	708	112.152, an employee may not be held to have assumed the risk of the
709	709	employee's employment in a case in which the railroad operator's
710	710	violation of a statute enacted for the safety of employees
711	711	contributed to the employee's injury or death. (V.A.C.S. Arts.
712	712	6437, 6438, 6441.)
713	713	Sec. 112.155. CERTAIN PROVISIONS VOID. A provision of a
714	714	contract, rule, or device the purpose of which is to exempt a
715	715	railroad operator from liability under Section 112.152 is void to
716	716	the extent of the purported exemption. (V.A.C.S. Art. 6442
717	717	(part).)
718	718	Sec. 112.156. LIABILITY OFFSET. In an action against a
719	719	railroad operator under Section 112.152, the railroad operator may
720	720	offset the railroad operator's liability by the amount of the
721	721	railroad operator's contribution or payment to any insurance,
722	722	relief benefit, or indemnity from which benefits have been paid to
723	723	the injured employee or another person entitled to the benefits as a
724	724	result of the injury or death that is the subject of the action.
725	725	(V.A.C.S. Art. 6442 (part).)
726	726	Sec. 112.157. CONSTRUCTION OF CERTAIN SECTIONS. (a)
727	727	Sections 112.152, 112.153, 112.154(d), 112.155, and 112.156 do not:
728	728	(1) limit the duty or liability of a railroad operator
729	729	or impair the rights of an employee under the Revised Statutes of
730	730	1925; or
731	731	(2) affect a right of action under another law of this
732	732	state.
733	733	(b) Except as provided by Section 112.151, a section listed
734	734	in Subsection (a) controls over any other provision of the Revised
735	735	Statutes of 1925 with which it conflicts. (V.A.C.S. Art. 6443.)
736	736	Sec. 112.158. INJURY TO FELLOW SERVANT. (a) This section
737	737	applies only to a corporation, receiver, or other person that
738	738	controls or operates a railroad or street railway the line of which
739	739	is located wholly or partly in this state.
740	740	(b) An entity described by Subsection (a) is liable for
741	741	damages sustained by an employee of the entity while the employee is
742	742	engaged in the work of operating the cars, locomotives, or trains of
743	743	the entity as a result of the negligence of any other employee of
744	744	the entity, regardless of whether the negligent employee and the
745	745	employee who sustained the damages are considered fellow servants.
746	746	(c) Persons who are engaged in the common service of an
747	747	entity described by Subsection (a) are considered fellow servants
748	748	only if the persons are:
749	749	(1) employed in the same grade of employment;
750	750	(2) doing the same character of work or service; and
751	751	(3) working together at the same time and place and at
752	752	the same piece of work for a common purpose.
753	753	(d) A person engaged in the service of an entity described
754	754	by Subsection (a) is considered a vice principal of that entity if
755	755	the person is entrusted by the entity with the authority of
756	756	superintendence, control, or command of the other employees of the
757	757	entity, with the authority to direct any other employee in the
758	758	performance of any duty of the employee.
759	759	(e) A vice principal of an entity described by Subsection
760	760	(a) is not considered a fellow servant with other employees of the
761	761	entity.
762	762	(f) A contract between an employer and employee that limits
763	763	the employer's liability under this section in the event of the
764	764	death of or injury to the employee or setting damages that may be
765	765	recovered under this section is not valid or binding.
766	766	(g) This section does not impair or diminish the defense of
767	767	contributory negligence if the injury of the employee is
768	768	proximately caused by the employee's own contributory negligence.
769	769	(V.A.C.S. Arts. 6432, 6433, 6434, 6435, 6436.)
770	770	[Chapters 113-130 reserved for expansion]
771	771	SUBTITLE D. MISCELLANEOUS RAILROADS
772	772	CHAPTER 131. MISCELLANEOUS RAILWAYS
773	773	SUBCHAPTER A. GENERAL PROVISIONS
774	774	Sec. 131.001. DEFINITION OF PERSON
775	775	[Sections 131.002-131.010 reserved for expansion]
776	776	SUBCHAPTER B. ELECTRIC RAILWAYS
777	777	Sec. 131.011. DEFINITION
778	778	Sec. 131.012. EMINENT DOMAIN
779	779	Sec. 131.013. RIGHT-OF-WAY
780	780	Sec. 131.014. CONSTRUCTION OF RAILWAY ALONG OR OVER
781	781	WATERWAY OR INFRASTRUCTURE
782	782	Sec. 131.015. USE OF ELECTRIC STREET RAILWAY TRACKS
783	783	Sec. 131.016. TIME REQUIRED FOR CONSTRUCTION
784	784	Sec. 131.017. USE OF CONDEMNED TRACK
785	785	[Sections 131.018-131.030 reserved for expansion]
786	786	SUBCHAPTER C. MERGER OF INTERURBAN RAILWAY
787	787	Sec. 131.031. DEFINITION
788	788	Sec. 131.032. ACQUISITION OF RAILWAY PROPERTY
789	789	AUTHORIZED
790	790	Sec. 131.033. MUNICIPAL CONSENT REQUIRED
791	791	Sec. 131.034. USE OF STREET RAILWAYS
792	792	Sec. 131.035. LIMITATION ON ACQUISITION
793	793	[Sections 131.036-131.060 reserved for expansion]
794	794	SUBCHAPTER D. PROVISION OF UTILITIES
795	795	Sec. 131.061. INTERURBAN ELECTRIC RAILWAYS
796	796	Sec. 131.062. SUPPLY AND SALE OF ELECTRICITY BY
797	797	STREET, SUBURBAN, OR BELT LINE RAILWAY
798	798	[Sections 131.063-131.100 reserved for expansion]
799	799	SUBCHAPTER E. REDUCED STREET RAILWAY FARES
800	800	Sec. 131.101. APPLICABILITY
801	801	Sec. 131.102. CHILDREN YOUNGER THAN 13 YEARS OF AGE
802	802	Sec. 131.103. STUDENTS
803	803	Sec. 131.104. CHILDREN YOUNGER THAN SIX YEARS OF AGE
804	804	Sec. 131.105. TRANSFER RIGHTS
805	805	[Sections 131.106-131.900 reserved for expansion]
806	806	SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
807	807	Sec. 131.901. STREET AND SUBURBAN RAILWAYS
808	808	Sec. 131.902. FREIGHT INTERURBAN RAILWAYS
809	809	Sec. 131.903. BUILDINGS AND OTHER FACILITIES: CERTAIN
810	810	RAILWAYS
811	811	Sec. 131.904. MOTOR BUS LINES
812	812	SUBTITLE D. MISCELLANEOUS RAILROADS
813	813	CHAPTER 131. MISCELLANEOUS RAILWAYS
814	814	SUBCHAPTER A. GENERAL PROVISIONS
815	815	Sec. 131.001. DEFINITION OF PERSON. In this chapter:
816	816	(1) "person" includes a corporation, as provided by
817	817	Section 312.011, Government Code; and
818	818	(2) the definition of "person" assigned by Section
819	819	311.005, Government Code, does not apply. (New.)
820	820	[Sections 131.002-131.010 reserved for expansion]
821	821	SUBCHAPTER B. ELECTRIC RAILWAYS
822	822	Sec. 131.011. DEFINITION. In this subchapter, "interurban
823	823	electric railway company" means a corporation chartered under the
824	824	laws of this state to conduct and operate an electric railway
825	825	between two municipalities in this state. (V.A.C.S. Art. 6540
826	826	(part).)
827	827	Sec. 131.012. EMINENT DOMAIN. A corporation chartered for
828	828	the purpose of constructing, acquiring, maintaining, or operating
829	829	lines of electric railway between municipalities in this state for
830	830	the transportation of freight, passengers, or both freight and
831	831	passengers may:
832	832	(1) exercise the power of eminent domain with all the
833	833	rights and powers granted by law to a railroad company; and
834	834	(2) enter, condemn, and appropriate land,
835	835	right-of-way, easements, or other property of any person or
836	836	corporation to acquire:
837	837	(A) right-of-way on which to construct and
838	838	operate lines of railway for the acquiring corporation; or
839	839	(B) sites for depots or power plants. (V.A.C.S.
840	840	Art. 6535.)
841	841	Sec. 131.013. RIGHT-OF-WAY. (a) A corporation described
842	842	by Section 131.012 may:
843	843	(1) lay out right-of-way not to exceed 200 feet in
844	844	width for its railways;
845	845	(2) construct its railways and appurtenances on that
846	846	right-of-way; and
847	847	(3) with compensation being made in accordance with
848	848	law:
849	849	(A) take for the purpose of cuttings and
850	850	embankments additional land necessary for the proper construction
851	851	and security of its railways; and
852	852	(B) cut down any tree or remove any structure
853	853	that may be in danger of falling on or obstructing its railway.
854	854	(b) The corporation may:
855	855	(1) have an examination and survey of its proposed
856	856	railway made as necessary to select the most advantageous route;
857	857	and
858	858	(2) for the purposes of Subdivision (1), enter on the
859	859	land or water of any person or corporation, subject to
860	860	responsibility for all damages that may be caused by the entrance,
861	861	examination, or survey. (V.A.C.S. Art. 6536.)
862	862	Sec. 131.014. CONSTRUCTION OF RAILWAY ALONG OR OVER
863	863	WATERWAY OR INFRASTRUCTURE. (a) A corporation described by
864	864	Section 131.012 may construct its railway along, across, or over
865	865	any stream, water course, bay, navigable water, arm of the sea,
866	866	street, highway, steam railway, turnpike, or canal located in the
867	867	route of its electric railway.
868	868	(b) The corporation may erect and operate a bridge, tram,
869	869	trestle, or causeway, over, along, or across any stream, water
870	870	course, bay, navigable water, arm of the sea, street, highway,
871	871	turnpike, or canal described by Subsection (a).
872	872	(c) A bridge or other structure described by Subsection (b)
873	873	may not be erected so as to unnecessarily or unreasonably prevent
874	874	the navigation of the stream, water course, bay, arm of the sea, or
875	875	navigable water.
876	876	(d) This section does not authorize the construction of an
877	877	electric railway on or across a street, alley, square, or property
878	878	of a municipality without the consent of the governing body of the
879	879	municipality.
880	880	(e) Before constructing an electric railway along or on a
881	881	highway, turnpike, or canal, an interurban electric railway company
882	882	must obtain the consent of the authority having jurisdiction over
883	883	the highway, turnpike, or canal. (V.A.C.S. Art. 6537.)
884	884	Sec. 131.015. USE OF ELECTRIC STREET RAILWAY TRACKS. (a)
885	885	An interurban electric railway company's power of eminent domain
886	886	under this subchapter includes the power to condemn for its use and
887	887	benefit easements and right-of-way to operate interurban cars along
888	888	and on the track of an electric street railway company owning,
889	889	controlling, or operating track on any public street or alley in a
890	890	municipality for a purpose described by Subsection (b), subject to
891	891	the consent, authority, and control of the governing body of the
892	892	municipality.
893	893	(b) Condemnation under Subsection (a) may be used only to
894	894	secure an entrance into and an outlet from a municipality on a route
895	895	designated by the governing body of the municipality.
896	896	(c) In a proceeding to condemn an easement or right-of-way
897	897	under this section, the court or the jury trying the case shall
898	898	define and establish the terms on which the easement or
899	899	right-of-way may be used.
900	900	(d) A court rendering a judgment in a proceeding under this
901	901	section may review and reform the terms of a grant and the
902	902	provisions of the judgment on a subsequent application by a party to
903	903	the original proceeding or a person claiming through or under a
904	904	party to the original proceeding.
905	905	(e) The hearing on an application brought under Subsection
906	906	(d) is in the nature of a retrial of the proceeding with respect to
907	907	the terms on which the easement may be used except that the court
908	908	may not declare the easement forfeited or impair the exercise of the
909	909	easement.
910	910	(f) An application under Subsection (d) may not be made
911	911	before the second anniversary of the date of the final judgment on
912	912	the most recent application. (V.A.C.S. Arts. 6538, 6539.)
913	913	Sec. 131.016. TIME REQUIRED FOR CONSTRUCTION. The rights
914	914	secured under this chapter by an interurban electric railway
915	915	company are void unless the road to be constructed under the charter
916	916	of the company is fully constructed from one municipality to
917	917	another within 12 months of the date of the final judgment awarding
918	918	the company an easement or right-of-way under Section 131.015.
919	919	(V.A.C.S. Art. 6540 (part).)
920	920	Sec. 131.017. USE OF CONDEMNED TRACK. (a) Unless the
921	921	company whose track is condemned under this subchapter consents, an
922	922	interurban electric railway company exercising the powers granted
923	923	under this chapter may not receive for transportation freight or
924	924	passengers at any location on the condemned track destined to
925	925	another location on the condemned track.
926	926	(b) A company that wilfully violates Subsection (a)
927	927	forfeits the easement or right-of-way used to provide the
928	928	transportation. (V.A.C.S. Art. 6540 (part).)
929	929	[Sections 131.018-131.030 reserved for expansion]
930	930	SUBCHAPTER C. MERGER OF INTERURBAN RAILWAY
931	931	Sec. 131.031. DEFINITION. In this subchapter, "interurban
932	932	railway" means an electric or other interurban line of railway in
933	933	this state. (V.A.C.S. Art. 6543 (part).)
934	934	Sec. 131.032. ACQUISITION OF RAILWAY PROPERTY AUTHORIZED.
935	935	(a) A corporation organized under the laws of this state that is
936	936	authorized to construct, acquire, and operate an interurban railway
937	937	may:
938	938	(1) acquire, lease, or purchase the physical property,
939	939	rights, and franchise of any other railway corporation with similar
940	940	powers; or
941	941	(2) lease or purchase physical property, rights, and
942	942	franchises of any suburban or street railway corporation the
943	943	railway lines of which are to be operated in connection with the
944	944	interurban railway.
945	945	(b) The owner of physical property or a right or franchise
946	946	described by Subsection (a)(1) or (2) may sell or dispose of the
947	947	property, right, or franchise to the corporation making an
948	948	acquisition, lease, or purchase under Subsection (a).
949	949	(c) An acquisition or purchase under this section may be on
950	950	the terms:
951	951	(1) agreed to by the board of directors of each
952	952	corporation; and
953	953	(2) authorized or approved by a majority of the
954	954	stockholders of each corporation. (V.A.C.S. Art. 6543 (part).)
955	955	Sec. 131.033. MUNICIPAL CONSENT REQUIRED. (a) Before
956	956	selling property under this subchapter, a corporation that owns or
957	957	operates a street car railway must obtain the consent of the
958	958	governing body of the municipality in which the street car line is
959	959	located.
960	960	(b) This subchapter does not affect a charter provision of a
961	961	municipality that provides for the right of qualified voters of the
962	962	municipality to vote on the granting or amending of franchise to a
963	963	street or interurban railway. (V.A.C.S. Art. 6543 (part).)
964	964	Sec. 131.034. USE OF STREET RAILWAYS. A corporation
965	965	authorized to construct, acquire, and operate an interurban railway
966	966	and a corporation owning and operating a street railway may enter
967	967	into a trackage or lease contract to allow for continuous passage
968	968	into or through a municipality, subject to the consent of the
969	969	governing body of the municipality. (V.A.C.S. Art. 6543 (part).)
970	970	Sec. 131.035. LIMITATION ON ACQUISITION. A corporation
971	971	described by this subchapter may not:
972	972	(1) acquire, own, control, or operate a parallel or
973	973	competing interurban line; or
974	974	(2) purchase, lease, acquire, own, or control,
975	975	directly or indirectly, the shares or certificates of stock or
976	976	bonds, a franchise or other right, or the physical property or any
977	977	part of the property, of any corporation in violation of the law
978	978	commonly known as the antitrust law. (V.A.C.S. Art. 6543 (part).)
979	979	[Sections 131.036-131.060 reserved for expansion]
980	980	SUBCHAPTER D. PROVISION OF UTILITIES
981	981	Sec. 131.061. INTERURBAN ELECTRIC RAILWAYS. An interurban
982	982	electric railway company, as defined by Section 131.011, is
983	983	entitled to produce, supply, and sell electric light and power to
984	984	the public and to municipalities. (V.A.C.S. Art. 6541.)
985	985	Sec. 131.062. SUPPLY AND SALE OF ELECTRICITY BY STREET,
986	986	SUBURBAN, OR BELT LINE RAILWAY. A corporation organized under the
987	987	general laws of this state that owns or operates with electric power
988	988	any street or suburban railway or belt line of railways in and near
989	989	a municipality for the transportation of freight and passengers
990	990	within this state may:
991	991	(1) supply and sell electric light and power to the
992	992	public or a municipality;
993	993	(2) acquire or otherwise provide appliances necessary
994	994	for an activity authorized by Subdivision (1); and
995	995	(3) in the manner provided by law, amend its articles
996	996	of incorporation to expressly include the authority under this
997	997	section. (V.A.C.S. Art. 6545 (part).)
998	998	[Sections 131.063-131.100 reserved for expansion]
999	999	SUBCHAPTER E. REDUCED STREET RAILWAY FARES
1000	1000	Sec. 131.101. APPLICABILITY. This subchapter applies only
1001	1001	to a person or corporation owning or operating a street railway in
1002	1002	or on the public streets of a municipality with a population of
1003	1003	40,000 or more. (V.A.C.S. Art. 6544 (part).)
1004	1004	Sec. 131.102. CHILDREN YOUNGER THAN 13 YEARS OF AGE. (a)
1005	1005	The owner or operator of a street railway shall transport a child
1006	1006	younger than 13 years of age for half the fare regularly collected
1007	1007	for the transportation of an adult.
1008	1008	(b) This section does not apply to the transportation of a
1009	1009	child to or from a school or other institution of learning located
1010	1010	one mile or more outside the corporate limits of the municipality in
1011	1011	which the street car operates. (V.A.C.S. Art. 6544 (part).)
1012	1012	Sec. 131.103. STUDENTS. (a) The owner or operator of a
1013	1013	street railway shall sell or provide for the sale of tickets for
1014	1014	half of the regular fare collected for the transportation of adults
1015	1015	to students younger than 18 years of age who attend academic,
1016	1016	public, or private school in a grade not higher than the highest
1017	1017	grade of the public high schools located in or adjacent to the
1018	1018	municipality in which the railway is located.
1019	1019	(b) Tickets under this section must be sold in lots of 20,
1020	1020	with each ticket valid for one trip over the railway lines.
1021	1021	(c) Tickets under this section are not required to be sold
1022	1022	unless the student making the purchase presents the written
1023	1023	certificate of the principal of the school the student attends
1024	1024	stating that the student:
1025	1025	(1) is younger than 18 years of age; and
1026	1026	(2) is in regular attendance at a school in a grade
1027	1027	that qualifies under Subsection (a).
1028	1028	(d) Tickets under this section are not required to be sold
1029	1029	and may not be used except during the months when a school
1030	1030	qualifying under Subsection (a) is in session.
1031	1031	(e) A student described by Subsection (a) shall be
1032	1032	transported at half fare only when the student presents a ticket
1033	1033	issued under this section. (V.A.C.S. Art. 6544 (part).)
1034	1034	Sec. 131.104. CHILDREN YOUNGER THAN SIX YEARS OF AGE. The
1035	1035	owner or operator of a street railway shall transport free of charge
1036	1036	a child younger than six years of age when attended by a passenger
1037	1037	who is at least six years of age. (V.A.C.S. Art. 6544 (part).)
1038	1038	Sec. 131.105. TRANSFER RIGHTS. The owner or operator of a
1039	1039	street railway shall offer a passenger paying a reduced fare or no
1040	1040	fare under this subchapter the same rights as to the use of
1041	1041	transfers issued by the owner or operator's line or other lines as
1042	1042	offered to a passenger paying full fare. (V.A.C.S. Art. 6544
1043	1043	(part).)
1044	1044	[Sections 131.106-131.900 reserved for expansion]
1045	1045	SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
1046	1046	Sec. 131.901. STREET AND SUBURBAN RAILWAYS. (a) Street and
1047	1047	suburban railways engaged in the transportation of freight in and
1048	1048	near a municipality are subject to the control of the department.
1049	1049	(b) A street railway company is not exempt from payment of
1050	1050	assessments that may be imposed against it for street improvements.
1051	1051	(V.A.C.S. Art. 6545 (part).)
1052	1052	Sec. 131.902. FREIGHT INTERURBAN RAILWAYS. (a) An entity
1053	1053	incorporated as an electric, gas or gasoline, denatured alcohol, or
1054	1054	naphtha interurban or motor railway that engages in transporting
1055	1055	freight is subject to the control of the department.
1056	1056	(b) A corporation described by Subsection (a) is not exempt
1057	1057	from payment of assessments that may be imposed against it for
1058	1058	street improvements.
1059	1059	(c) An interurban railway described by Subsection (a):
1060	1060	(1) may exercise the same power of eminent domain as
1061	1061	given by law to railroads;
1062	1062	(2) may exercise the power of eminent domain to
1063	1063	acquire right-of-way on which to construct its railway lines and
1064	1064	sites for depots and power plants;
1065	1065	(3) has the same rights, powers, and privileges as
1066	1066	granted by law to an interurban electric railway company; and
1067	1067	(4) may acquire, hold, and operate other public
1068	1068	utilities in and adjacent to a municipality in or through which the
1069	1069	company operates.
1070	1070	(d) An interurban railway company described by Subsection
1071	1071	(a) may not condemn property on which is located a cemetery unless
1072	1072	it is affirmatively shown, and found by the court trying the
1073	1073	condemnation suit, that:
1074	1074	(1) it is necessary to take the property; and
1075	1075	(2) no other route is possible or practicable.
1076	1076	(V.A.C.S. Art. 6546.)
1077	1077	Sec. 131.903. BUILDINGS AND OTHER FACILITIES: CERTAIN
1078	1078	RAILWAYS. A corporation organized before September 1, 1925, under
1079	1079	any law of this state, that operates a line of electric, gas or
1080	1080	gasoline, denatured alcohol, or naphtha motor railway in and
1081	1081	between municipalities in this state, may:
1082	1082	(1) own and operate union depots and office buildings;
1083	1083	and
1084	1084	(2) acquire, hold, and operate electric light and
1085	1085	power plants in and adjacent to a municipality in or through which
1086	1086	the railway operates. (V.A.C.S. Art. 6547 (part).)
1087	1087	Sec. 131.904. MOTOR BUS LINES. (a) This section applies
1088	1088	only to a corporation authorized to operate a street or suburban
1089	1089	railway or an interurban railway and to carry passengers for hire.
1090	1090	(b) Subject to the approval of the governing body of the
1091	1091	municipality in which the corporation operates its railway, the
1092	1092	corporation may:
1093	1093	(1) substitute, wholly or partly, motor bus lines for
1094	1094	its railway; and
1095	1095	(2) maintain and operate automobile motor buses to
1096	1096	carry passengers for hire on:
1097	1097	(A) public roads, streets, plazas, alleys, and
1098	1098	highways within the corporate limits of a municipality under
1099	1099	regulations prescribed by the municipality; and
1100	1100	(B) public roads and highways that are located
1101	1101	outside the corporate limits of that municipality but within five
1102	1102	miles of the corporate limits, under regulations prescribed by the
1103	1103	commissioners court of the county.
1104	1104	(c) The substitution of motor buses or the discontinuance of
1105	1105	a railway under this section does not impair any corporate power of
1106	1106	a corporation incorporated before August 30, 1933, as a street or
1107	1107	interurban railway with respect to the operation of other public
1108	1108	utilities authorized by a corporate charter or statute in effect on
1109	1109	August 30, 1933.
1110	1110	(d) A corporation acting under this section must amend its
1111	1111	charter and pay any fee provided by law for the filing of the
1112	1112	amendment.
1113	1113	(e) This section may not be construed to impair the rights
1114	1114	of a municipality under a franchise granted to a corporation or its
1115	1115	predecessor before August 30, 1933. (V.A.C.S. Art. 6548 (part).)
1116	1116	SECTION 2.04. Subtitle I, Title 5, Transportation Code, is
1117	1117	amended by adding Chapters 172, 173, and 174 to read as follows:
1118	1118	CHAPTER 172. RURAL RAIL TRANSPORTATION DISTRICTS
1119	1119	SUBCHAPTER A. GENERAL PROVISIONS
1120	1120	Sec. 172.001. DEFINITIONS
1121	1121	Sec. 172.002. NATURE OF DISTRICT
1122	1122	Sec. 172.003. FINDINGS
1123	1123	[Sections 172.004-172.050 reserved for expansion]
1124	1124	SUBCHAPTER B. CREATION
1125	1125	Sec. 172.051. APPLICABILITY
1126	1126	Sec. 172.052. CREATION OF DISTRICT BY MORE THAN ONE
1127	1127	COUNTY
1128	1128	Sec. 172.053. CREATION OF DISTRICT BY ONE COUNTY
1129	1129	Sec. 172.054. NOTICE OF CREATION
1130	1130	Sec. 172.055. AUTOMATIC ASSUMPTION OF CONTRACTUAL
1131	1131	DISTRICTS
1132	1132	[Sections 172.056-172.100 reserved for expansion]
1133	1133	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
1134	1134	Sec. 172.101. CONTROL OF DISTRICT
1135	1135	Sec. 172.102. TERMS
1136	1136	Sec. 172.103. QUALIFICATIONS FOR OFFICE
1137	1137	Sec. 172.104. VACANCY
1138	1138	Sec. 172.105. REMOVAL
1139	1139	Sec. 172.106. OFFICERS
1140	1140	Sec. 172.107. MEETINGS; NOTICE
1141	1141	Sec. 172.108. RULES FOR PROCEEDINGS
1142	1142	Sec. 172.109. EMPLOYEES
1143	1143	Sec. 172.110. PECUNIARY INTEREST IN CERTAIN CONTRACTS
1144	1144	PROHIBITED
1145	1145	[Sections 172.111-172.150 reserved for expansion]
1146	1146	SUBCHAPTER D. GENERAL POWERS AND DUTIES
1147	1147	Sec. 172.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
1148	1148	FUNCTIONS
1149	1149	Sec. 172.152. RULES
1150	1150	Sec. 172.153. AGREEMENTS GENERALLY
1151	1151	Sec. 172.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
1152	1152	USE
1153	1153	Sec. 172.155. JOINT OWNERSHIP AGREEMENTS
1154	1154	Sec. 172.156. AWARDING CONSTRUCTION OR PURCHASE
1155	1155	CONTRACTS
1156	1156	Sec. 172.157. EMINENT DOMAIN
1157	1157	Sec. 172.158. DISPOSITION OF SURPLUS PROPERTY
1158	1158	Sec. 172.159. SUITS
1159	1159	Sec. 172.160. PERPETUAL SUCCESSION
1160	1160	[Sections 172.161-172.200 reserved for expansion]
1161	1161	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
1162	1162	CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
1163	1163	Sec. 172.201. GENERAL AUTHORITY OVER RAIL FACILITIES
1164	1164	Sec. 172.202. USE AND ALTERATION OF PROPERTY OF
1165	1165	ANOTHER POLITICAL SUBDIVISION
1166	1166	Sec. 172.203. RULES GOVERNING SYSTEM; ROUTINGS
1167	1167	Sec. 172.204. ACQUISITION OF PROPERTY
1168	1168	Sec. 172.205. POWERS RELATING TO DISTRICT PROPERTY
1169	1169	Sec. 172.206. ACQUISITION OF ROLLING STOCK AND OTHER
1170	1170	PROPERTY
1171	1171	Sec. 172.207. COMPENSATION FOR USE OF SYSTEM FACILITIES
1172	1172	Sec. 172.208. OPERATION OR USE CONTRACTS
1173	1173	Sec. 172.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
1174	1174	WITH OTHER POLITICAL SUBDIVISIONS
1175	1175	Sec. 172.210. ABANDONMENT OF RAIL LINE
1176	1176	[Sections 172.211-172.250 reserved for expansion]
1177	1177	SUBCHAPTER F. FINANCIAL PROVISIONS
1178	1178	Sec. 172.251. FISCAL YEAR
1179	1179	Sec. 172.252. ANNUAL BUDGET
1180	1180	Sec. 172.253. GRANTS AND LOANS
1181	1181	Sec. 172.254. DEPOSITORY
1182	1182	Sec. 172.255. APPLICABILITY OF PUBLIC PROPERTY
1183	1183	FINANCING LAW; PROHIBITION ON AD VALOREM TAX
1184	1184	Sec. 172.256. NONNEGOTIABLE PURCHASE MONEY NOTES; BOND
1185	1185	ANTICIPATION NOTES
1186	1186	Sec. 172.257. TAX EXEMPTION
1187	1187	[Sections 172.258-172.300 reserved for expansion]
1188	1188	SUBCHAPTER G. BONDS
1189	1189	Sec. 172.301. REVENUE BONDS
1190	1190	Sec. 172.302. SECURITY FOR PAYMENT OF BONDS
1191	1191	Sec. 172.303. BONDS AS AUTHORIZED INVESTMENTS
1192	1192	AND SECURITY FOR DEPOSITS OF PUBLIC FUNDS
1193	1193	Sec. 172.304. APPLICABILITY OF PUBLIC IMPROVEMENT
1194	1194	FINANCING LAW
1195	1195	Sec. 172.305. LIMIT ON POWER
1196	1196	Sec. 172.306. EXEMPTION FROM REVIEW OF NOTES BY
1197	1197	ATTORNEY GENERAL
1198	1198	CHAPTER 172. RURAL RAIL TRANSPORTATION DISTRICTS
1199	1199	SUBCHAPTER A. GENERAL PROVISIONS
1200	1200	Sec. 172.001. DEFINITIONS. In this chapter:
1201	1201	(1) "Board" means a district's board of directors.
1202	1202	(2) "Bonds" means:
1203	1203	(A) bonds;
1204	1204	(B) notes, including bond anticipation notes,
1205	1205	revenue anticipation notes, and grant anticipation notes;
1206	1206	(C) warrants;
1207	1207	(D) certificates of obligation;
1208	1208	(E) interest-bearing contracts;
1209	1209	(F) interest-bearing leases of property;
1210	1210	(G) equipment trust certificates;
1211	1211	(H) commercial paper; and
1212	1212	(I) any obligation issued to refund any type of
1213	1213	bond.
1214	1214	(3) "Director" means a board member.
1215	1215	(4) "District" means a rural rail transportation
1216	1216	district created under this chapter or under Chapter 623, Acts of
1217	1217	the 67th Legislature, Regular Session, 1981 (Article 6550c,
1218	1218	Vernon's Texas Civil Statutes), as that chapter existed before
1219	1219	April 1, 2011.
1220	1220	(5) "Maintenance facility" includes a workshop, a
1221	1221	service, storage, security, or personnel facility, temporary or
1222	1222	transient lodging for district employees, and equipment for any
1223	1223	type of facility.
1224	1224	(6) "Maintenance and operating expenses" means all
1225	1225	expenses of operating and maintaining a district and its rail
1226	1226	facilities, including:
1227	1227	(A) all compensation, labor, materials, repairs,
1228	1228	and extensions necessary, required, or convenient in the board's
1229	1229	discretion to render efficient service or to maintain and operate
1230	1230	the district; and
1231	1231	(B) taxes or other amounts paid, payable, or to
1232	1232	be paid to the United States under Section 148(f), Internal Revenue
1233	1233	Code of 1986, or any similar law.
1234	1234	(7) "Rail facilities" means:
1235	1235	(A) property, or an interest in that property,
1236	1236	that the board determines is necessary or convenient to provide a
1237	1237	rural rail transportation system; and
1238	1238	(B) property or an interest necessary or
1239	1239	convenient to acquire, provide, construct, enlarge, remodel,
1240	1240	renovate, improve, furnish, use, or equip the system, including:
1241	1241	(i) a right-of-way;
1242	1242	(ii) an earthwork or structure, including
1243	1243	clearing and grubbing of right-of-way, demolition of a structure,
1244	1244	relocation of utilities, a pipeline, or any other obstacle in a
1245	1245	right-of-way, stripping and stockpiling, removal of subsoil for
1246	1246	embankment or spoil, a borrow pit, dressing and seeding of a slope,
1247	1247	construction of a culvert, a road crossing, a bridge, restoration
1248	1248	of a roadway, drainage within a right-of-way or along a road
1249	1249	network, and restoration of a hydrologic system;
1250	1250	(iii) trackwork;
1251	1251	(iv) a train control, including signalling,
1252	1252	interlocking equipment, speed monitoring equipment, an emergency
1253	1253	braking system, a central traffic control facility, and a
1254	1254	communication system;
1255	1255	(v) a passenger or freight service
1256	1256	building, terminal, or station, a ticketing facility, a waiting
1257	1257	area, a platform, a concession, an elevator, an escalator, a
1258	1258	facility for handicapped access, an access road, a parking facility
1259	1259	for passengers, a baggage handling facility, a local maintenance
1260	1260	facility, and offices for district purposes and includes an
1261	1261	interest in real property necessary or convenient for an item
1262	1262	listed under this subparagraph;
1263	1263	(vi) rolling stock; and
1264	1264	(vii) a maintenance facility.
1265	1265	(8) "Revenue" means the income, receipts, and
1266	1266	collections received by, to be received by, or pledged to the
1267	1267	district from or by any source, except a restricted gift or a grant
1268	1268	in aid of construction.
1269	1269	(9) "Right-of-way" means:
1270	1270	(A) a right of passage over property;
1271	1271	(B) a strip of land in length and width
1272	1272	determined required, necessary, or convenient by the board over,
1273	1273	on, or under which trackwork is or is to be constructed or acquired;
1274	1274	or
1275	1275	(C) a right of precedential passing.
1276	1276	(10) "Rolling stock" means a locomotive, an engine, a
1277	1277	rail car, a repair construction car, or another car designed to
1278	1278	operate on trackwork.
1279	1279	(11) "Trackwork" means track, a track bed, track bed
1280	1280	preparation, a tie, a rail fastener, a slab, a rail, an emergency
1281	1281	crossover, a setout track, storage track, and a switch. (V.A.C.S.
1282	1282	Art. 6550c, Secs. 2(1), (2), (4), (5), (8), (9), (11), (12), (13),
1283	1283	(14), (15), (16), (17); New.)
1284	1284	Sec. 172.002. NATURE OF DISTRICT. (a) A district is a
1285	1285	public body and a political subdivision of this state exercising
1286	1286	public and essential governmental functions.
1287	1287	(b) A district, in the exercise of powers under this
1288	1288	chapter, is performing only governmental functions and is a
1289	1289	governmental unit under Chapter 101, Civil Practice and Remedies
1290	1290	Code. (V.A.C.S. Art. 6550c, Sec. 5(a) (part).)
1291	1291	Sec. 172.003. FINDINGS. The legislature finds that:
1292	1292	(1) the state contains many rural areas that are
1293	1293	heavily dependent on agriculture for economic survival;
1294	1294	(2) transportation of agricultural and industrial
1295	1295	products is essential to the continued economic vitality of rural
1296	1296	areas;
1297	1297	(3) the rail transportation systems in some rural
1298	1298	areas are threatened by railroad bankruptcies and abandonment
1299	1299	proceedings that would cause the cessation of rail services to the
1300	1300	areas;
1301	1301	(4) it is in the interest of all citizens of the state
1302	1302	that existing rail systems be maintained for the most efficient and
1303	1303	economical movement of essential agricultural products from the
1304	1304	areas of production to the local, national, and export markets;
1305	1305	(5) rural rail transportation districts are
1306	1306	appropriate political subdivisions to provide for the continued
1307	1307	operation of railroads, which are declared by Section 2, Article X,
1308	1308	Texas Constitution, to be public highways;
1309	1309	(6) the creation, re-creation, financing,
1310	1310	maintenance, and operation of rural rail transportation districts
1311	1311	and facilities acquired by the districts under this chapter will
1312	1312	help develop, maintain, and diversify the economy of the state,
1313	1313	eliminate unemployment or underemployment, foster the growth of
1314	1314	enterprises based on agriculture, and serve to develop and expand
1315	1315	transportation and commerce within the state under the authority
1316	1316	granted by Section 52-a, Article III, Texas Constitution; and
1317	1317	(7) financing by rural rail transportation districts
1318	1318	for the purposes provided by this chapter is a lawful and valid
1319	1319	public purpose. (V.A.C.S. Art. 6550c, Sec. 1.)
1320	1320	[Sections 172.004-172.050 reserved for expansion]
1321	1321	SUBCHAPTER B. CREATION
1322	1322	Sec. 172.051. APPLICABILITY. A county is eligible to
1323	1323	create a district as provided by this chapter only if a rail line is
1324	1324	located in the county that:
1325	1325	(1) is being or has been abandoned through a
1326	1326	bankruptcy court or Surface Transportation Board proceeding; or
1327	1327	(2) carries three million gross tons per mile per year
1328	1328	or less. (V.A.C.S. Art. 6550c, Secs. 2(6) (part), 3(b), 3A(a)
1329	1329	(part).)
1330	1330	Sec. 172.052. CREATION OF DISTRICT BY MORE THAN ONE COUNTY.
1331	1331	(a) The commissioners courts of two or more counties that are a
1332	1332	contiguous area may by concurrent order:
1333	1333	(1) create a district; or
1334	1334	(2) provide for the re-creation of a district by the
1335	1335	addition of one or more counties.
1336	1336	(b) The district consists of the territory of each county
1337	1337	whose commissioners court adopts the concurrent order.
1338	1338	(c) Each concurrent order must:
1339	1339	(1) contain identical provisions for creation or
1340	1340	re-creation;
1341	1341	(2) be adopted at the time of the creation or
1342	1342	re-creation;
1343	1343	(3) declare the boundaries of the district as the
1344	1344	boundaries of the counties included;
1345	1345	(4) designate the district's name; and
1346	1346	(5) designate the number of directors, which may not
1347	1347	be less than four, and the manner of the directors' appointment by a
1348	1348	commissioners court.
1349	1349	(d) The commissioners court of each county included in a
1350	1350	district by order may provide for the district's dissolution if
1351	1351	each commissioners court determines that the dissolution will not
1352	1352	impair an obligation of any contract of the district. The
1353	1353	dissolution order is effective only on the creation or re-creation
1354	1354	of another district in which each county included in the dissolving
1355	1355	district is included. (V.A.C.S. Art. 6550c, Secs. 2(3), (6)
1356	1356	(part), 3(a), (c), (d).)
1357	1357	Sec. 172.053. CREATION OF DISTRICT BY ONE COUNTY. (a) The
1358	1358	commissioners court of a county may by order create a district in
1359	1359	that county to develop, finance, maintain, and operate a new rail
1360	1360	system under this chapter and for other purposes of this chapter.
1361	1361	(b) The boundaries of a district created under this section
1362	1362	are the boundaries of the county in which the district is created.
1363	1363	(c) At the time the district is created, the commissioners
1364	1364	court shall:
1365	1365	(1) designate the district's name; and
1366	1366	(2) appoint at least four residents of the county to
1367	1367	serve as directors.
1368	1368	(d) The commissioners court of the county by order may
1369	1369	provide for the district's dissolution if the commissioners court
1370	1370	determines that the dissolution will not impair an obligation of
1371	1371	any contract of the district. The dissolution order is effective
1372	1372	only on the creation of another district in which the county is
1373	1373	included. (V.A.C.S. Art. 6550c, Secs. 3A(a) (part), (b), (c),
1374	1374	(f).)
1375	1375	Sec. 172.054. NOTICE OF CREATION. (a) The board of each
1376	1376	newly created district shall provide notice to the Texas
1377	1377	Transportation Institute of the district's creation.
1378	1378	(b) On being notified by the board, the Texas Transportation
1379	1379	Institute shall make available to the board a guide to the services
1380	1380	and information that the institute provides. (V.A.C.S. Art. 6550c,
1381	1381	Sec. 3(f).)
1382	1382	Sec. 172.055. AUTOMATIC ASSUMPTION OF CONTRACTUAL
1383	1383	OBLIGATIONS AFTER CREATION BY CERTAIN DISTRICTS. A district
1384	1384	created or re-created under Section 172.052 automatically assumes
1385	1385	any obligation of a contract executed by the district or a
1386	1386	predecessor district that is in force on the date of the creation or
1387	1387	re-creation unless the contract expressly expires on the date of
1388	1388	dissolution or re-creation of the district that executed the
1389	1389	contract. (V.A.C.S. Art. 6550c, Sec. 3(e).)
1390	1390	[Sections 172.056-172.100 reserved for expansion]
1391	1391	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
1392	1392	Sec. 172.101. CONTROL OF DISTRICT. (a) The board is
1393	1393	responsible for the management, operation, and control of the
1394	1394	district.
1395	1395	(b) The right to control and regulate district affairs is
1396	1396	vested exclusively in the board except as specifically otherwise
1397	1397	provided by this chapter. (V.A.C.S. Art. 6550c, Secs. 4(a), (d)
1398	1398	(part).)
1399	1399	Sec. 172.102. TERMS. (a) A director serves a two-year
1400	1400	term.
1401	1401	(b) An initial director serves a term ending on the second
1402	1402	anniversary of the date:
1403	1403	(1) the latest concurrent order creating or
1404	1404	re-creating the district under Section 172.052 was adopted; or
1405	1405	(2) an order creating the district under Section
1406	1406	172.053 was adopted. (V.A.C.S. Art. 6550c, Secs. 3A(d), 4(b)
1407	1407	(part).)
1408	1408	Sec. 172.103. QUALIFICATIONS FOR OFFICE. (a) To be
1409	1409	eligible for appointment as a director, a person must be a resident
1410	1410	of the county governed by the commissioners court that appoints the
1411	1411	person.
1412	1412	(b) An elected officer of this state or a political
1413	1413	subdivision of this state who is not prohibited by the Texas
1414	1414	Constitution from serving on the board is eligible to serve on the
1415	1415	board. (V.A.C.S. Art. 6550c, Secs. 3A(c) (part), (e), 4(b) (part),
1416	1416	(g).)
1417	1417	Sec. 172.104. VACANCY. The commissioners court that
1418	1418	appointed a director who vacates the position shall appoint a
1419	1419	director for the unexpired term. (V.A.C.S. Art. 6550c, Secs. 3A(e),
1420	1420	4(b) (part).)
1421	1421	Sec. 172.105. REMOVAL. (a) The commissioners court that
1422	1422	appointed a director may remove the director from office for
1423	1423	neglect of duty or malfeasance in office after:
1424	1424	(1) at least 10 days' written notice to the director;
1425	1425	and
1426	1426	(2) a hearing before the commissioners court.
1427	1427	(b) At the hearing on the question of removal of a director,
1428	1428	the director is entitled to be heard in person or through counsel.
1429	1429	(V.A.C.S. Art. 6550c, Secs. 3A(e), 4(b) (part).)
1430	1430	Sec. 172.106. OFFICERS. The board shall select a
1431	1431	president, vice president, treasurer, and secretary. The secretary
1432	1432	is not required to be a director. (V.A.C.S. Art. 6550c, Secs. 3A(e),
1433	1433	4(c) (part).)
1434	1434	Sec. 172.107. MEETINGS; NOTICE. (a) The board shall hold
1435	1435	at least one regular meeting each month to conduct district
1436	1436	business.
1437	1437	(b) The president may call a special board meeting.
1438	1438	(c) Chapter 551, Government Code, applies to board
1439	1439	meetings, except that notice of a board meeting shall be posted at
1440	1440	the administrative office of the district and at the courthouse in
1441	1441	the county in which that office is located. (V.A.C.S. Art. 6550c,
1442	1442	Secs. 3A(e), 4(c) (part), (f).)
1443	1443	Sec. 172.108. RULES FOR PROCEEDINGS. The board shall adopt
1444	1444	rules for its proceedings. (V.A.C.S. Art. 6550c, Sec. 4(d) (part).)
1445	1445	Sec. 172.109. EMPLOYEES. The board may employ and
1446	1446	compensate persons to carry out the powers and duties of the
1447	1447	district. (V.A.C.S. Art. 6550c, Sec. 4(d) (part).)
1448	1448	Sec. 172.110. PECUNIARY INTEREST IN CERTAIN CONTRACTS
1449	1449	PROHIBITED. A district employee may not have a direct or indirect
1450	1450	pecuniary interest in any contract or agreement to which the
1451	1451	district is a party. (V.A.C.S. Art. 6550c, Sec. 4(e).)
1452	1452	[Sections 172.111-172.150 reserved for expansion]
1453	1453	SUBCHAPTER D. GENERAL POWERS AND DUTIES
1454	1454	Sec. 172.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
1455	1455	FUNCTIONS. (a) A district has all powers necessary or convenient
1456	1456	to carry out the purposes of this chapter.
1457	1457	(b) A district may generally perform all acts necessary for
1458	1458	the full exercise of the district's powers. (V.A.C.S. Art. 6550c,
1459	1459	Secs. 5(a) (part), (k) (part).)
1460	1460	Sec. 172.152. RULES. To protect the state's health,
1461	1461	safety, and general welfare, a district may adopt rules to govern
1462	1462	the operation of the district, its employees, the rail facilities,
1463	1463	service provided by the district, and any other necessary matter
1464	1464	concerning its purposes, including rules regarding health, safety,
1465	1465	alcohol or beverage service, food service, or telephone or utility
1466	1466	service. (V.A.C.S. Art. 6550c, Sec. 5(h).)
1467	1467	Sec. 172.153. AGREEMENTS GENERALLY. A district may make
1468	1468	contracts, leases, and agreements with the United States, this
1469	1469	state and its agencies and political subdivisions, public or
1470	1470	private corporations, and any other person. (V.A.C.S. Art. 6550c,
1471	1471	Sec. 5(k) (part).)
1472	1472	Sec. 172.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
1473	1473	A district may:
1474	1474	(1) enter into agreements with a public utility,
1475	1475	private utility, communication system, common carrier, or
1476	1476	transportation system for the joint use of its facilities,
1477	1477	installations, or property inside or outside the district; and
1478	1478	(2) establish:
1479	1479	(A) through routes;
1480	1480	(B) joint fares; and
1481	1481	(C) divisions of tariffs, subject to approval of
1482	1482	a tariff-regulating body that has jurisdiction. (V.A.C.S. Art.
1483	1483	6550c, Sec. 5(g).)
1484	1484	Sec. 172.155. JOINT OWNERSHIP AGREEMENTS. A district may
1485	1485	enter into a joint ownership agreement with any person. (V.A.C.S.
1486	1486	Art. 6550c, Sec. 5(i).)
1487	1487	Sec. 172.156. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
1488	1488	(a) A contract in the amount of more than $15,000 for the
1489	1489	construction of improvements or the purchase of material,
1490	1490	machinery, equipment, supplies, or any other property except real
1491	1491	property may be awarded only through competitive bidding after
1492	1492	notice is published in a newspaper of general circulation in the
1493	1493	district at least 15 days before the date set for receiving bids.
1494	1494	(b) A board may adopt rules governing the taking of bids and
1495	1495	the awarding of contracts.
1496	1496	(c) This section does not apply to:
1497	1497	(1) personal or professional services; or
1498	1498	(2) the acquisition of an existing rail transportation
1499	1499	system. (V.A.C.S. Art. 6550c, Sec. 7.)
1500	1500	Sec. 172.157. EMINENT DOMAIN. (a) A district may exercise
1501	1501	the power of eminent domain to acquire:
1502	1502	(1) land in fee simple; or
1503	1503	(2) any interest less than fee simple in, on, under, or
1504	1504	above land, including an easement, right-of-way, or right of use of
1505	1505	airspace or subsurface space.
1506	1506	(b) A district may not exercise the power of eminent domain
1507	1507	in a manner that would unduly interfere with interstate commerce.
1508	1508	(c) An eminent domain proceeding brought by a district is
1509	1509	governed by Chapter 21, Property Code, except to the extent
1510	1510	inconsistent with this chapter.
1511	1511	(d) An eminent domain proceeding is begun by the board's
1512	1512	adoption of a resolution declaring that the district's acquisition
1513	1513	of the property or interest described in the resolution:
1514	1514	(1) is a public necessity; and
1515	1515	(2) is necessary and proper for the construction,
1516	1516	extension, improvement, or development of rail facilities and is in
1517	1517	the public interest.
1518	1518	(e) The resolution is conclusive evidence of the public
1519	1519	necessity of the proposed acquisition and that the real property or
1520	1520	interest in property is necessary for public use. (V.A.C.S.
1521	1521	Art. 6550c, Sec. 5(f).)
1522	1522	Sec. 172.158. DISPOSITION OF SURPLUS PROPERTY. (a) A
1523	1523	district may sell, lease, convey, or otherwise dispose of any
1524	1524	right, interest, or property not needed for or, in the case of a
1525	1525	lease, not inconsistent with the efficient operation and
1526	1526	maintenance of the system.
1527	1527	(b) A district may, on adoption of an order by the board,
1528	1528	sell, lease, or otherwise dispose of surplus property not needed
1529	1529	for district requirements or to carry out district powers under
1530	1530	this chapter. (V.A.C.S. Art. 6550c, Sec. 5(l).)
1531	1531	Sec. 172.159. SUITS. (a) A district may:
1532	1532	(1) sue and be sued;
1533	1533	(2) institute and prosecute suits without giving
1534	1534	security for costs; and
1535	1535	(3) appeal from a judgment without giving a
1536	1536	supersedeas or cost bond.
1537	1537	(b) An action at law or in equity against the district must
1538	1538	be brought in the county in which the principal office of the
1539	1539	district is located, except that a suit in eminent domain must be
1540	1540	brought in the county in which the land is located. (V.A.C.S. Art.
1541	1541	6550c, Sec. 5(c).)
1542	1542	Sec. 172.160. PERPETUAL SUCCESSION. A district has
1543	1543	perpetual succession. (V.A.C.S. Art. 6550c, Sec. 5(b).)
1544	1544	[Sections 172.161-172.200 reserved for expansion]
1545	1545	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
1546	1546	CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
1547	1547	Sec. 172.201. GENERAL AUTHORITY OVER RAIL FACILITIES. A
1548	1548	district may plan, acquire, construct, complete, develop, own,
1549	1549	operate, and maintain rail facilities inside or outside the
1550	1550	district. (V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
1551	1551	Sec. 172.202. USE AND ALTERATION OF PROPERTY OF ANOTHER
1552	1552	POLITICAL SUBDIVISION. For a purpose described by Section 172.201,
1553	1553	as necessary or useful in the construction, reconstruction, repair,
1554	1554	maintenance, and operation of rail facilities, and subject to a
1555	1555	grant previously secured or with the consent of a municipality,
1556	1556	county, or other political subdivision, a district may:
1557	1557	(1) use streets, alleys, roads, highways, and other
1558	1558	public ways of the political subdivision; and
1559	1559	(2) relocate, raise, reroute, change the grade of, or
1560	1560	alter, at the district's expense, the construction of a publicly
1561	1561	owned or privately owned street, alley, highway, road, railroad,
1562	1562	electric line or facility, telegraph or telephone property or
1563	1563	facility, pipeline or facility, conduit or facility, and other
1564	1564	property. (V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
1565	1565	Sec. 172.203. RULES GOVERNING SYSTEM; ROUTINGS. A district
1566	1566	by resolution may adopt rules governing the use, operation, and
1567	1567	maintenance of the system and shall determine all routings and
1568	1568	change them when the board considers it advisable. (V.A.C.S. Art.
1569	1569	6550c, Sec. 5(m).)
1570	1570	Sec. 172.204. ACQUISITION OF PROPERTY. (a) A district may
1571	1571	purchase, whenever the district considers the purchase expedient,
1572	1572	land, property rights, right-of-way, franchises, easements, and
1573	1573	other interests in land the district considers necessary to
1574	1574	acquire, construct, or operate a rail facility on terms and at a
1575	1575	price to which the district and the owner agree.
1576	1576	(b) The district may take title to the land or interest in
1577	1577	the district's name.
1578	1578	(c) The governing body of a municipality, a county, any
1579	1579	other political subdivision, or a public agency may convey without
1580	1580	advertisement the title or the rights and easements to property
1581	1581	needed by the district for its purposes in connection with the
1582	1582	acquisition, construction, or operation of rail facilities.
1583	1583	(V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
1584	1584	Sec. 172.205. POWERS RELATING TO DISTRICT PROPERTY. A
1585	1585	district may acquire by grant, purchase, gift, devise, lease, or
1586	1586	otherwise and may hold, use, sell, lease, or dispose of property,
1587	1587	including a license, a patent, a right, or an interest, necessary,
1588	1588	convenient, or useful for the full exercise of its powers under this
1589	1589	chapter. (V.A.C.S. Art. 6550c, Sec. 5(d).)
1590	1590	Sec. 172.206. ACQUISITION OF ROLLING STOCK AND OTHER
1591	1591	PROPERTY. A district may acquire rolling stock or other property,
1592	1592	under a conditional sales contract, lease, equipment trust
1593	1593	certificate, or other form of contract or trust agreement.
1594	1594	(V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
1595	1595	Sec. 172.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
1596	1596	(a) A district shall establish and maintain reasonable and
1597	1597	nondiscriminatory rents or other compensation for the use of the
1598	1598	facilities of the system acquired, constructed, operated,
1599	1599	regulated, or maintained by the district.
1600	1600	(b) Together with grants received by the district, the rents
1601	1601	or other compensation must be sufficient to produce revenue
1602	1602	adequate to:
1603	1603	(1) pay all expenses necessary for the operation and
1604	1604	maintenance of the district's property and facilities;
1605	1605	(2) pay the principal of and interest on all bonds
1606	1606	issued by the district payable wholly or partly from the revenue, as
1607	1607	they become due and payable; and
1608	1608	(3) fulfill the terms of agreements made with the
1609	1609	holders of bonds or with any person on their behalf. (V.A.C.S.
1610	1610	Art. 6550c, Sec. 5(j).)
1611	1611	Sec. 172.208. OPERATION OR USE CONTRACTS. (a) A district
1612	1612	may:
1613	1613	(1) lease all or part of the rail facilities to any
1614	1614	operator; or
1615	1615	(2) contract for the use or operation of all or part of
1616	1616	the rail facilities by any operator.
1617	1617	(b) To the maximum extent practicable, the district shall
1618	1618	encourage the participation of private enterprise in the operation
1619	1619	of rail facilities.
1620	1620	(c) The term of an operating contract under this section may
1621	1621	not exceed 20 years. In this subsection, "operating contract"
1622	1622	means a professional services contract executed by a district and
1623	1623	another person under which the person agrees to provide all or part
1624	1624	of the:
1625	1625	(1) rolling stock required for operation as a common
1626	1626	carrier over all or a part of the rail facilities of the district;
1627	1627	and
1628	1628	(2) personnel required for the operation of the
1629	1629	rolling stock owned or leased by the district or for the operation
1630	1630	of the rail facilities of the district. (V.A.C.S. Art. 6550c,
1631	1631	Secs. 2(7), 5(n).)
1632	1632	Sec. 172.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
1633	1633	OTHER POLITICAL SUBDIVISIONS. A district may contract with a
1634	1634	county or other political subdivision of this state for the
1635	1635	district to provide rail transportation services to an area outside
1636	1636	the district on terms to which the parties agree. (V.A.C.S. Art.
1637	1637	6550c, Sec. 5(o).)
1638	1638	Sec. 172.210. ABANDONMENT OF RAIL LINE. (a) A district may
1639	1639	not abandon a district rail line for which state money has been
1640	1640	loaned or granted unless the abandonment is approved by the
1641	1641	commission as being consistent with the policies of this chapter.
1642	1642	(b) The commission by rule shall adopt procedures for
1643	1643	applying for and obtaining approval for abandonment under this
1644	1644	section. (V.A.C.S. Art. 6550c, Sec. 5(r).)
1645	1645	[Sections 172.211-172.250 reserved for expansion]
1646	1646	SUBCHAPTER F. FINANCIAL PROVISIONS
1647	1647	Sec. 172.251. FISCAL YEAR. (a) Unless the board changes
1648	1648	the fiscal year, the district's fiscal year ends on September 30.
1649	1649	(b) The board may not change the fiscal year more than once
1650	1650	in a three-year period. (V.A.C.S. Art. 6550c, Sec. 5(p) (part).)
1651	1651	Sec. 172.252. ANNUAL BUDGET. (a) Before beginning the
1652	1652	operation of rail facilities, the board shall adopt an annual
1653	1653	operating budget specifying the district's anticipated revenue and
1654	1654	expenses for the remainder of the fiscal year. The district shall
1655	1655	adopt an operating budget for each succeeding fiscal year.
1656	1656	(b) The board must hold a public hearing before adopting
1657	1657	each budget except the initial budget. Notice of the hearing must
1658	1658	be published at least seven days before the date of the hearing in a
1659	1659	newspaper of general circulation in the district.
1660	1660	(c) A budget may be amended at any time if notice of the
1661	1661	proposed amendment is given in the notice of meeting.
1662	1662	(d) An expenditure that is not budgeted may not be made.
1663	1663	(V.A.C.S. Art. 6550c, Sec. 5(p) (part).)
1664	1664	Sec. 172.253. GRANTS AND LOANS. A district may accept a
1665	1665	grant or loan from the United States, this state and its agencies
1666	1666	and political subdivisions, public or private corporations, and any
1667	1667	other person. (V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
1668	1668	Sec. 172.254. DEPOSITORY. (a) The board by resolution
1669	1669	shall name one or more banks for the deposit of district funds.
1670	1670	(b) District funds are public funds and may be invested in
1671	1671	securities permitted by Chapter 2256, Government Code.
1672	1672	(c) To the extent district funds are not insured by the
1673	1673	Federal Deposit Insurance Corporation or its successor, the funds
1674	1674	shall be collateralized in the manner provided for county funds.
1675	1675	(V.A.C.S. Art. 6550c, Sec. 5(q).)
1676	1676	Sec. 172.255. APPLICABILITY OF PUBLIC PROPERTY FINANCING
1677	1677	LAW; PROHIBITION ON AD VALOREM TAX. A district may use the
1678	1678	procedures provided by Chapter 271, Local Government Code, to
1679	1679	finance the district's rail facilities, except to the extent of a
1680	1680	conflict with this chapter, and except that the district may not
1681	1681	impose an ad valorem tax. (V.A.C.S. Art. 6550c, Sec. 6A(a).)
1682	1682	Sec. 172.256. NONNEGOTIABLE PURCHASE MONEY NOTES; BOND
1683	1683	ANTICIPATION NOTES. (a) A district may:
1684	1684	(1) issue nonnegotiable purchase money notes, payable
1685	1685	in installments and secured by the property being acquired or
1686	1686	constructed, to acquire or construct rail facilities; or
1687	1687	(2) secure the obligation of the notes by a pledge or
1688	1688	by issuing bonds, including bond anticipation notes.
1689	1689	(b) A district may covenant with the purchaser of bond
1690	1690	anticipation notes that the proceeds of one or more particular
1691	1691	series of bonds will be used for the ultimate payment of the
1692	1692	purchase money notes or bond anticipation notes. (V.A.C.S.
1693	1693	Art. 6550c, Sec. 6A(b).)
1694	1694	Sec. 172.257. TAX EXEMPTION. District property and revenue
1695	1695	and the interest on bonds issued by the district are exempt from any
1696	1696	tax imposed by this state or a political subdivision of this state.
1697	1697	(V.A.C.S. Art. 6550c, Sec. 8.)
1698	1698	[Sections 172.258-172.300 reserved for expansion]
1699	1699	SUBCHAPTER G. BONDS
1700	1700	Sec. 172.301. REVENUE BONDS. A district, by board
1701	1701	resolution, may issue revenue bonds in amounts that the board
1702	1702	considers necessary or appropriate for the acquisition, purchase,
1703	1703	construction, reconstruction, repair, equipping, improvement, or
1704	1704	extension of its rail facilities. (V.A.C.S. Art. 6550c, Secs. 6(a)
1705	1705	(part), (e).)
1706	1706	Sec. 172.302. SECURITY FOR PAYMENT OF BONDS. (a) To secure
1707	1707	payment of district bonds, the district may:
1708	1708	(1) encumber and pledge all or part of the revenue of
1709	1709	its rail facilities; and
1710	1710	(2) encumber all or part of the property of the rail
1711	1711	facilities and everything pertaining to them acquired or to be
1712	1712	acquired.
1713	1713	(b) Unless prohibited by the resolution or indenture
1714	1714	relating to outstanding bonds, a district may encumber separately
1715	1715	any item of property. (V.A.C.S. Art. 6550c, Sec. 6(c) (part).)
1716	1716	Sec. 172.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
1717	1717	FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds are legal and
1718	1718	authorized investments for:
1719	1719	(1) a bank;
1720	1720	(2) a trust company;
1721	1721	(3) a savings and loan association; and
1722	1722	(4) an insurance company.
1723	1723	(b) The bonds are:
1724	1724	(1) eligible to secure the deposit of public funds of
1725	1725	this state or a municipality, a county, a school district, or any
1726	1726	other political corporation or subdivision of this state; and
1727	1727	(2) lawful and sufficient security for the deposit to
1728	1728	the extent of the principal amount or market value of the bonds,
1729	1729	whichever is less. (V.A.C.S. Art. 6550c, Sec. 6(d).)
1730	1730	Sec. 172.304. APPLICABILITY OF PUBLIC IMPROVEMENT
1731	1731	FINANCING LAW. For purposes of Chapter 1371, Government Code:
1732	1732	(1) a district is an issuer; and
1733	1733	(2) the acquisition, improvement, or repair of rail
1734	1734	facilities by a district is an eligible project. (V.A.C.S. Art.
1735	1735	6550c, Sec. 5(a) (part).)
1736	1736	Sec. 172.305. LIMIT ON POWER. A revenue bond indenture may
1737	1737	limit the exercise of the power granted by Section 172.002,
1738	1738	172.151, 172.152, 172.153, 172.154, 172.155, 172.157, 172.158,
1739	1739	172.159, 172.160, 172.201, 172.202, 172.203, 172.204, 172.205,
1740	1740	172.206, 172.207, 172.208, 172.209, 172.210, 172.251, 172.252,
1741	1741	172.253, 172.254, or 172.304. The limitation applies while any of
1742	1742	the revenue bonds issued under the indenture are outstanding and
1743	1743	unpaid. (V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
1744	1744	Sec. 172.306. EXEMPTION FROM REVIEW OF NOTES BY ATTORNEY
1745	1745	GENERAL. District notes authorized to be issued to an agency of the
1746	1746	federal or state government, and related records, are not required
1747	1747	to be submitted to the attorney general for examination under
1748	1748	Chapter 1202, Government Code. (V.A.C.S. Art. 6550c, Sec. 6(b)
1749	1749	(part).)
1750	1750	CHAPTER 173. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
1751	1751	SUBCHAPTER A. GENERAL PROVISIONS
1752	1752	Sec. 173.001. DEFINITION OF PERSON
1753	1753	Sec. 173.002. DEFINITIONS
1754	1754	Sec. 173.003. LOCATION OF MUNICIPALITY IN COUNTY
1755	1755	Sec. 173.004. NATURE OF DISTRICT
1756	1756	Sec. 173.005. SUNSET PROVISION
1757	1757	[Sections 173.006-173.050 reserved for expansion]
1758	1758	SUBCHAPTER B. CREATION
1759	1759	Sec. 173.051. CREATION OF DISTRICT
1760	1760	Sec. 173.052. ADDITION OF POLITICAL SUBDIVISION TO
1761	1761	DISTRICT
1762	1762	[Sections 173.053-173.100 reserved for expansion]
1763	1763	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
1764	1764	Sec. 173.101. CONTROL OF DISTRICT
1765	1765	Sec. 173.102. COMPOSITION OF BOARD; TERMS
1766	1766	Sec. 173.103. VACANCY
1767	1767	Sec. 173.104. PRESIDING OFFICER
1768	1768	Sec. 173.105. MEETINGS
1769	1769	Sec. 173.106. BOARD MEETINGS BY TELEPHONE OR
1770	1770	VIDEOCONFERENCE
1771	1771	Sec. 173.107. RULES FOR PROCEEDINGS
1772	1772	Sec. 173.108. COMPENSATION; REIMBURSEMENT
1773	1773	Sec. 173.109. EMPLOYEES
1774	1774	Sec. 173.110. EXECUTIVE COMMITTEE
1775	1775	Sec. 173.111. RETIREMENT BENEFITS
1776	1776	[Sections 173.112-173.150 reserved for expansion]
1777	1777	SUBCHAPTER D. GENERAL POWERS AND DUTIES
1778	1778	Sec. 173.151. GENERAL POWERS OF DISTRICT
1779	1779	Sec. 173.152. RULES
1780	1780	Sec. 173.153. AGREEMENTS GENERALLY
1781	1781	Sec. 173.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
1782	1782	USE
1783	1783	Sec. 173.155. JOINT OWNERSHIP AGREEMENTS
1784	1784	Sec. 173.156. EXCLUSIVE DEVELOPMENT AGREEMENTS
1785	1785	Sec. 173.157. INTERLOCAL AGREEMENTS WITH COMMISSION
1786	1786	Sec. 173.158. AWARDING CONSTRUCTION OR PURCHASE
1787	1787	CONTRACTS
1788	1788	Sec. 173.159. EMINENT DOMAIN
1789	1789	Sec. 173.160. SUITS
1790	1790	[Sections 173.161-173.200 reserved for expansion]
1791	1791	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
1792	1792	CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
1793	1793	Sec. 173.201. GENERAL AUTHORITY OVER COMMUTER RAIL
1794	1794	FACILITIES
1795	1795	Sec. 173.202. POWERS RELATING TO DISTRICT PROPERTY
1796	1796	Sec. 173.203. USE AND ALTERATION OF PROPERTY OF
1797	1797	ANOTHER POLITICAL SUBDIVISION
1798	1798	Sec. 173.204. RULES GOVERNING SYSTEM AND ROUTINGS
1799	1799	Sec. 173.205. ACQUISITION OF PROPERTY
1800	1800	Sec. 173.206. ACQUISITION OF ROLLING STOCK AND OTHER
1801	1801	PROPERTY
1802	1802	Sec. 173.207. COMPENSATION FOR USE OF SYSTEM
1803	1803	FACILITIES
1804	1804	Sec. 173.208. OPERATION OR USE CONTRACTS
1805	1805	Sec. 173.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
1806	1806	WITH OTHER POLITICAL SUBDIVISIONS
1807	1807	[Sections 173.210-173.250 reserved for expansion]
1808	1808	SUBCHAPTER F. FINANCIAL PROVISIONS
1809	1809	Sec. 173.251. FISCAL YEAR
1810	1810	Sec. 173.252. ANNUAL BUDGET
1811	1811	Sec. 173.253. GRANTS AND LOANS
1812	1812	Sec. 173.254. DEPOSITORY
1813	1813	Sec. 173.255. PURCHASE OF ADDITIONAL INSURED
1814	1814	PROVISIONS
1815	1815	Sec. 173.256. FINANCING OF CERTAIN TRANSPORTATION
1816	1816	INFRASTRUCTURE
1817	1817	Sec. 173.257. TAX EXEMPTION
1818	1818	[Sections 173.258-173.300 reserved for expansion]
1819	1819	SUBCHAPTER G. BONDS
1820	1820	Sec. 173.301. REVENUE BONDS
1821	1821	Sec. 173.302. SECURITY FOR PAYMENT OF BONDS
1822	1822	Sec. 173.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY FOR
1823	1823	DEPOSITS OF PUBLIC FUNDS
1824	1824	Sec. 173.304. LIMIT ON POWER
1825	1825	[Sections 173.305-173.350 reserved for expansion]
1826	1826	SUBCHAPTER H. SALES AND USE TAXES
1827	1827	Sec. 173.351. TAX AUTHORIZED
1828	1828	Sec. 173.352. TAX RATE
1829	1829	Sec. 173.353. PREEMPTION OF OTHER SALES AND USE TAXES
1830	1830	Sec. 173.354. APPLICABILITY OF TAX CODE
1831	1831	Sec. 173.355. NOTICE TO COMPTROLLER
1832	1832	Sec. 173.356. NOTICE TO LOCAL GOVERNMENTS
1833	1833	Sec. 173.357. ACQUISITION OF ADDITIONAL TERRITORY
1834	1834	SUBJECT TO TAX
1835	1835	Sec. 173.358. DUTY OF COMPTROLLER
1836	1836	Sec. 173.359. EFFECTIVE DATE OF TAX
1837	1837	CHAPTER 173. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
1838	1838	SUBCHAPTER A. GENERAL PROVISIONS
1839	1839	Sec. 173.001. DEFINITION OF PERSON. In this chapter:
1840	1840	(1) "person" includes a corporation, as provided by
1841	1841	Section 312.011, Government Code; and
1842	1842	(2) the definition of "person" assigned by Section
1843	1843	311.005, Government Code, does not apply. (New.)
1844	1844	Sec. 173.002. DEFINITIONS. In this chapter:
1845	1845	(1) "Board" means a district's board of directors.
1846	1846	(2) "Commuter rail facility" means any property
1847	1847	necessary for the transportation of passengers and baggage between
1848	1848	locations in a district. The term includes rolling stock,
1849	1849	locomotives, stations, parking areas, and rail lines.
1850	1850	(3) "Creating municipality" means a municipality
1851	1851	described by Section 173.051(a).
1852	1852	(4) "Director" means a board member.
1853	1853	(5) "District" means an intermunicipal commuter rail
1854	1854	district created under this chapter or under Article 6550c-1,
1855	1855	Revised Statutes, as that article existed before April 1, 2011.
1856	1856	(6) "District property" means property the district
1857	1857	owns or leases under a long-term lease.
1858	1858	(7) "System" means all of the commuter rail and
1859	1859	intermodal facilities leased or owned by or operated on behalf of a
1860	1860	district. (V.A.C.S. Art. 6550c-1, Secs. 1(2), (3), (5), (6), (7);
1861	1861	New.)
1862	1862	Sec. 173.003. LOCATION OF MUNICIPALITY IN COUNTY. For
1863	1863	purposes of this chapter, a municipality is located in a county only
1864	1864	if 90 percent or more of the population of the municipality resides
1865	1865	in that county. (V.A.C.S. Art. 6550c-1, Sec. 2(d).)
1866	1866	Sec. 173.004. NATURE OF DISTRICT. (a) A district is a public
1867	1867	body and a political subdivision of this state exercising public
1868	1868	and essential governmental functions.
1869	1869	(b) A district, in the exercise of powers under this
1870	1870	chapter, is performing only governmental functions and is a
1871	1871	governmental unit under Chapter 101, Civil Practice and Remedies
1872	1872	Code. (V.A.C.S. Art. 6550c-1, Sec. 4(a) (part).)
1873	1873	Sec. 173.005. SUNSET PROVISION. A district is subject every
1874	1874	12th year to review under Chapter 325, Government Code (Texas
1875	1875	Sunset Act). (V.A.C.S. Art. 6550c-1, Sec. 4(b).)
1876	1876	[Sections 173.006-173.050 reserved for expansion]
1877	1877	SUBCHAPTER B. CREATION
1878	1878	Sec. 173.051. CREATION OF DISTRICT. (a) A district may be
1879	1879	created to provide commuter rail service between two
1880	1880	municipalities:
1881	1881	(1) each of which has a population of more than
1882	1882	450,000; and
1883	1883	(2) that are located not farther than 100 miles
1884	1884	apart as determined by the department.
1885	1885	(b) The creating municipalities and the counties in which
1886	1886	the creating municipalities are located may create a district on
1887	1887	passage of a resolution favoring creation by the governing body of
1888	1888	each municipality or county. (V.A.C.S. Art. 6550c-1, Secs. 2(a),
1889	1889	(b).)
1890	1890	Sec. 173.052. ADDITION OF POLITICAL SUBDIVISION TO
1891	1891	DISTRICT. The following political subdivisions may become a part
1892	1892	of a district with the approval of the governing body of the
1893	1893	political subdivision:
1894	1894	(1) a county located adjacent to the county in which a
1895	1895	creating municipality is located; and
1896	1896	(2) a municipality with a population of more than
1897	1897	18,000 located in a county described by Subdivision (1). (V.A.C.S.
1898	1898	Art. 6550c-1, Sec. 2(c).)
1899	1899	[Sections 173.053-173.100 reserved for expansion]
1900	1900	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
1901	1901	Sec. 173.101. CONTROL OF DISTRICT. A district is governed
1902	1902	by a board of directors. The board is responsible for the
1903	1903	management, operation, and control of the district. (V.A.C.S. Art.
1904	1904	6550c-1, Sec. 3(a).)
1905	1905	Sec. 173.102. COMPOSITION OF BOARD; TERMS. (a) The board
1906	1906	is composed of:
1907	1907	(1) two public directors appointed by the commission;
1908	1908	(2) one elected member of the governing body of each
1909	1909	political subdivision that has become a part of the district under
1910	1910	Subchapter B;
1911	1911	(3) one elected director appointed by the regional
1912	1912	planning organization of which a creating municipality is a part;
1913	1913	(4) one director appointed by each creating
1914	1914	municipality to represent the business community of the
1915	1915	municipality;
1916	1916	(5) one director appointed by each authority created
1917	1917	under Chapter 451 that serves a creating municipality;
1918	1918	(6) one director appointed by each county in which a
1919	1919	creating municipality is located to represent transportation
1920	1920	providers that provide service to rural areas in the county; and
1921	1921	(7) one director appointed by all other directors to
1922	1922	represent all municipalities in the district that do not otherwise
1923	1923	have representation on the board who is an elected official of one
1924	1924	of those municipalities.
1925	1925	(b) Each director serves a staggered two-year term, with as
1926	1926	near as possible to half of the directors' terms expiring February 1
1927	1927	of each year. If one or more directors are added to the board, the
1928	1928	directors other than the new directors shall determine the lengths
1929	1929	of the new directors' terms so that one-half, or as near one-half as
1930	1930	possible, of the directors serve terms expiring each year.
1931	1931	(V.A.C.S. Art. 6550c-1, Secs. 3(b), (c) (part).)
1932	1932	Sec. 173.103. VACANCY. A vacancy on the board shall be
1933	1933	filled in the same manner as the original appointment or election.
1934	1934	(V.A.C.S. Art. 6550c-1, Sec. 3(c) (part).)
1935	1935	Sec. 173.104. PRESIDING OFFICER. (a) The directors shall
1936	1936	elect one member as presiding officer.
1937	1937	(b) The presiding officer may select another director to
1938	1938	preside in the absence of the presiding officer. (V.A.C.S. Art.
1939	1939	6550c-1, Sec. 3(d).)
1940	1940	Sec. 173.105. MEETINGS. The presiding officer shall call
1941	1941	at least one meeting of the board each year and may hold other
1942	1942	meetings as the presiding officer determines are appropriate.
1943	1943	(V.A.C.S. Art. 6550c-1, Sec. 3(e).)
1944	1944	Sec. 173.106. BOARD MEETINGS BY TELEPHONE OR
1945	1945	VIDEOCONFERENCE. (a) Chapter 551, Government Code, does not
1946	1946	prohibit the board from holding an open or closed meeting by
1947	1947	telephone conference call or videoconference.
1948	1948	(b) A meeting held by telephone conference call or
1949	1949	videoconference need not have a quorum present at any one location.
1950	1950	(c) A telephone conference call or videoconference meeting
1951	1951	is subject to the notice requirements applicable to other meetings.
1952	1952	(d) The notice of a telephone conference call or
1953	1953	videoconference meeting must specify each location of the meeting
1954	1954	where a director will participate and the physical location where
1955	1955	the presiding officer of the board will preside. Each of those
1956	1956	locations must be open to the public during the open portion of the
1957	1957	meeting.
1958	1958	(e) Each part of a telephone conference call meeting that is
1959	1959	required to be open to the public must be audible to the public at
1960	1960	each meeting location specified in the notice of the meeting and
1961	1961	shall be tape recorded. The district shall make the tape recording
1962	1962	available to the public.
1963	1963	(f) Each part of a videoconference meeting that is required
1964	1964	to be open to the public must:
1965	1965	(1) be visible and audible to the public at each
1966	1966	meeting location specified in the notice of the meeting; and
1967	1967	(2) have two-way audio and video communications with
1968	1968	each participant in the meeting during the entire meeting.
1969	1969	(g) Without regard to whether a director is participating in
1970	1970	a meeting from a remote location by videoconference call, the board
1971	1971	may allow a member of the public to testify at a meeting from a
1972	1972	remote location by videoconference call. The board shall designate
1973	1973	the location for public participation in the notice of the meeting.
1974	1974	(V.A.C.S. Art. 6550c-1, Sec. 3A.)
1975	1975	Sec. 173.107. RULES FOR PROCEEDINGS. The board shall adopt
1976	1976	rules for its proceedings. (V.A.C.S. Art. 6550c-1, Sec. 3(g)
1977	1977	(part).)
1978	1978	Sec. 173.108. COMPENSATION; REIMBURSEMENT. A director is
1979	1979	not entitled to compensation for serving as a director but is
1980	1980	entitled to reimbursement for reasonable expenses incurred while
1981	1981	serving as a director. (V.A.C.S. Art. 6550c-1, Sec. 3(f).)
1982	1982	Sec. 173.109. EMPLOYEES. The board may employ and
1983	1983	compensate persons to carry out the powers and duties of the
1984	1984	district. (V.A.C.S. Art. 6550c-1, Sec. 3(g) (part).)
1985	1985	Sec. 173.110. EXECUTIVE COMMITTEE. The board shall appoint
1986	1986	an executive committee. (V.A.C.S. Art. 6550c-1, Sec. 3(g) (part).)
1987	1987	Sec. 173.111. RETIREMENT BENEFITS. A district is eligible
1988	1988	to participate in the Texas County and District Retirement System.
1989	1989	(V.A.C.S. Art. 6550c-1, Sec. 4(q).)
1990	1990	[Sections 173.112-173.150 reserved for expansion]
1991	1991	SUBCHAPTER D. GENERAL POWERS AND DUTIES
1992	1992	Sec. 173.151. GENERAL POWERS OF DISTRICT. (a) A district
1993	1993	has all the powers necessary or convenient to carry out the purposes
1994	1994	of this chapter.
1995	1995	(b) A district may generally perform all acts necessary for
1996	1996	the full exercise of the district's powers. (V.A.C.S. Art.
1997	1997	6550c-1, Secs. 4(a) (part), (k) (part).)
1998	1998	Sec. 173.152. RULES. To protect district residents'
1999	1999	health, safety, and general welfare, a district may adopt rules to
2000	2000	govern the operation of the district, its employees, the system,
2001	2001	service provided by the district, and any other necessary matter
2002	2002	concerning its purposes, including rules regarding health, safety,
2003	2003	alcohol or beverage service, food service, or telephone or utility
2004	2004	service. (V.A.C.S. Art. 6550c-1, Sec. 4(h).)
2005	2005	Sec. 173.153. AGREEMENTS GENERALLY. A district may make
2006	2006	contracts, leases, and agreements with the United States, this
2007	2007	state and its agencies and political subdivisions, public or
2008	2008	private corporations, and any other person. (V.A.C.S. Art.
2009	2009	6550c-1, Sec. 4(k) (part).)
2010	2010	Sec. 173.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
2011	2011	A district may:
2012	2012	(1) make agreements with a public utility, private
2013	2013	utility, communication system, common carrier, state agency, or
2014	2014	transportation system for the joint use of facilities,
2015	2015	installations, or property inside or outside the district; and
2016	2016	(2) establish:
2017	2017	(A) through routes;
2018	2018	(B) joint fares; and
2019	2019	(C) divisions of tariffs, subject to approval of
2020	2020	a tariff-regulating body that has jurisdiction. (V.A.C.S. Art.
2021	2021	6550c-1, Sec. 4(g).)
2022	2022	Sec. 173.155. JOINT OWNERSHIP AGREEMENTS. A district may
2023	2023	make a joint ownership agreement with any person. (V.A.C.S. Art.
2024	2024	6550c-1, Sec. 4(i).)
2025	2025	Sec. 173.156. EXCLUSIVE DEVELOPMENT AGREEMENTS. (a) A
2026	2026	board may enter into an exclusive development agreement with a
2027	2027	private entity.
2028	2028	(b) The exclusive development agreement:
2029	2029	(1) at a minimum must provide for the design and
2030	2030	construction of a commuter rail facility or system; and
2031	2031	(2) may provide for the financing, acquisition,
2032	2032	maintenance, or operation of a commuter rail facility or system.
2033	2033	(c) The board may adopt rules governing an agreement under
2034	2034	this section. (V.A.C.S. Art. 6550c-1, Sec. 6A.)
2035	2035	Sec. 173.157. INTERLOCAL AGREEMENTS WITH COMMISSION. The
2036	2036	commission may enter into an interlocal agreement with a district
2037	2037	under which the district may exercise a power or duty of the
2038	2038	commission for the development and efficient operation of
2039	2039	intermodal corridors in the district. (V.A.C.S. Art. 6550c-1, Sec.
2040	2040	4(k) (part).)
2041	2041	Sec. 173.158. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
2042	2042	(a) A contract in the amount of more than $15,000 for the
2043	2043	construction of improvements or the purchase of material,
2044	2044	machinery, equipment, supplies, or any other property except real
2045	2045	property may be awarded only through competitive bidding after
2046	2046	notice is published in a newspaper of general circulation in the
2047	2047	district at least 15 days before the date set for receiving bids.
2048	2048	(b) A board may adopt rules governing the taking of bids and
2049	2049	the awarding of contracts.
2050	2050	(c) This section does not apply to:
2051	2051	(1) personal or professional services;
2052	2052	(2) the acquisition of an existing rail transportation
2053	2053	system;
2054	2054	(3) a contract with a common carrier to construct
2055	2055	lines and to operate commuter rail service on lines wholly or partly
2056	2056	owned by the carrier; or
2057	2057	(4) an agreement with a private entity under Section
2058	2058	173.156. (V.A.C.S. Art. 6550c-1, Sec. 6.)
2059	2059	Sec. 173.159. EMINENT DOMAIN. (a) A district may exercise
2060	2060	the power of eminent domain to acquire:
2061	2061	(1) land in fee simple; or
2062	2062	(2) any interest less than fee simple in, on, under, or
2063	2063	above land, including an easement, right-of-way, or right of use of
2064	2064	airspace or subsurface space.
2065	2065	(b) The power of eminent domain under this section does not
2066	2066	apply to:
2067	2067	(1) land under the jurisdiction of the department or a
2068	2068	metropolitan transit authority; or
2069	2069	(2) a rail line owned by a common carrier or
2070	2070	municipality.
2071	2071	(c) To the extent possible, the district shall use existing
2072	2072	rail or intermodal transportation corridors for the alignment of
2073	2073	its system.
2074	2074	(d) An eminent domain proceeding is begun by the board's
2075	2075	adoption of a resolution declaring that the district's acquisition
2076	2076	of the property or interest described in the resolution:
2077	2077	(1) is a public necessity; and
2078	2078	(2) is necessary and proper for the construction,
2079	2079	extension, improvement, or development of commuter rail facilities
2080	2080	and is in the public interest.
2081	2081	(e) The resolution is conclusive evidence of the public
2082	2082	necessity of the proposed acquisition and that the real property or
2083	2083	interest in property is necessary for public use. (V.A.C.S. Art.
2084	2084	6550c-1, Sec. 4(f).)
2085	2085	Sec. 173.160. SUITS. (a) A district may:
2086	2086	(1) sue and be sued;
2087	2087	(2) institute and prosecute suits without giving
2088	2088	security for costs; and
2089	2089	(3) appeal from a judgment without giving a
2090	2090	supersedeas or cost bond.
2091	2091	(b) An action at law or in equity against the district must
2092	2092	be brought in the county in which a principal office of the district
2093	2093	is located, except that a suit in eminent domain must be brought in
2094	2094	the county in which the land is located. (V.A.C.S. Art. 6550c-1,
2095	2095	Sec. 4(c).)
2096	2096	[Sections 173.161-173.200 reserved for expansion]
2097	2097	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
2098	2098	CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
2099	2099	Sec. 173.201. GENERAL AUTHORITY OVER COMMUTER RAIL
2100	2100	FACILITIES. A district may acquire, construct, develop, own,
2101	2101	operate, and maintain intermodal and commuter rail facilities
2102	2102	inside, or connect political subdivisions in, the district.
2103	2103	(V.A.C.S. Art. 6550c-1, Sec. 4(e) (part).)
2104	2104	Sec. 173.202. POWERS RELATING TO DISTRICT PROPERTY. A
2105	2105	district may acquire by grant, purchase, gift, devise, lease, or
2106	2106	otherwise and may hold, use, sell, lease, or dispose of property,
2107	2107	including a license, a patent, a right, or an interest, necessary,
2108	2108	convenient, or useful for the full exercise of its powers under this
2109	2109	chapter. (V.A.C.S. Art. 6550c-1, Sec. 4(d).)
2110	2110	Sec. 173.203. USE AND ALTERATION OF PROPERTY OF ANOTHER
2111	2111	POLITICAL SUBDIVISION. (a) For a purpose described by Section
2112	2112	173.201, as necessary or useful in the construction,
2113	2113	reconstruction, repair, maintenance, and operation of the system,
2114	2114	and with the consent of a municipality, county, or other political
2115	2115	subdivision, a district may:
2116	2116	(1) use streets, alleys, roads, highways, and other
2117	2117	public ways of the political subdivision; and
2118	2118	(2) relocate, raise, reroute, change the grade of, or
2119	2119	alter, at the district's expense, the construction of a publicly
2120	2120	owned or privately owned street, alley, highway, road, railroad,
2121	2121	electric line or facility, telegraph or telephone property or
2122	2122	facility, pipeline or facility, conduit or facility, and other
2123	2123	property.
2124	2124	(b) A district may not use or alter:
2125	2125	(1) a road or highway in the state highway system
2126	2126	without the permission of the commission; or
2127	2127	(2) a railroad without permission of the railroad.
2128	2128	(V.A.C.S. Art. 6550c-1, Sec. 4(e) (part).)
2129	2129	Sec. 173.204. RULES GOVERNING SYSTEM AND ROUTINGS. A
2130	2130	district by resolution may adopt rules governing the use,
2131	2131	operation, and maintenance of the system and shall determine all
2132	2132	routings and change them when the board considers it advisable.
2133	2133	(V.A.C.S. Art. 6550c-1, Sec. 4(l).)
2134	2134	Sec. 173.205. ACQUISITION OF PROPERTY. (a) A district may
2135	2135	purchase any interest in real property to acquire, construct, or
2136	2136	operate a commuter rail facility on terms and at a price to which
2137	2137	the district and the owner agree.
2138	2138	(b) The governing body of a municipality, a county, any
2139	2139	other political subdivision, or a public agency may convey the
2140	2140	title or the rights and easements to property needed by the district
2141	2141	for its purposes in connection with the acquisition, construction,
2142	2142	or operation of the system. (V.A.C.S. Art. 6550c-1, Sec. 4(e)
2143	2143	(part).)
2144	2144	Sec. 173.206. ACQUISITION OF ROLLING STOCK AND OTHER
2145	2145	PROPERTY. A district may acquire rolling stock or other property
2146	2146	under a conditional sales contract, lease, equipment trust
2147	2147	certificate, or other form of contract or trust agreement.
2148	2148	(V.A.C.S. Art. 6550c-1, Sec. 4(k) (part).)
2149	2149	Sec. 173.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
2150	2150	(a) A district shall establish and maintain reasonable and
2151	2151	nondiscriminatory rates or other compensation for the use of the
2152	2152	facilities of the system acquired, constructed, operated,
2153	2153	regulated, or maintained by the district.
2154	2154	(b) Together with grants received by the district, the rates
2155	2155	or other compensation must be sufficient to produce revenue
2156	2156	adequate to:
2157	2157	(1) pay all expenses necessary for the operation and
2158	2158	maintenance of the district's property and facilities;
2159	2159	(2) pay the principal of and interest on all bonds
2160	2160	issued by the district under this chapter payable wholly or partly
2161	2161	from the revenue, as they become due and payable; and
2162	2162	(3) fulfill the terms of agreements made with the
2163	2163	holders of bonds or with any person on their behalf. (V.A.C.S. Art.
2164	2164	6550c-1, Sec. 4(j).)
2165	2165	Sec. 173.208. OPERATION OR USE CONTRACTS. (a) A district
2166	2166	may:
2167	2167	(1) lease all or part of the commuter rail facilities
2168	2168	to any operator; or
2169	2169	(2) contract for the use or operation of all or part of
2170	2170	the commuter rail facilities by any operator.
2171	2171	(b) To the maximum extent practicable, the district shall
2172	2172	encourage the participation of private enterprise in the operation
2173	2173	of commuter rail facilities.
2174	2174	(c) The term of an operating contract under this section may
2175	2175	not exceed 20 years. (V.A.C.S. Art. 6550c-1, Sec. 4(m).)
2176	2176	Sec. 173.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
2177	2177	OTHER POLITICAL SUBDIVISIONS. A district may contract with a county
2178	2178	or other political subdivision of this state for the district to
2179	2179	provide commuter rail transportation services to an area outside
2180	2180	the district on terms to which the parties agree. (V.A.C.S. Art.
2181	2181	6550c-1, Sec. 4(n).)
2182	2182	[Sections 173.210-173.250 reserved for expansion]
2183	2183	SUBCHAPTER F. FINANCIAL PROVISIONS
2184	2184	Sec. 173.251. FISCAL YEAR. Unless the board changes the
2185	2185	fiscal year, the district's fiscal year ends on September 30.
2186	2186	(V.A.C.S. Art. 6550c-1, Sec. 4(p) (part).)
2187	2187	Sec. 173.252. ANNUAL BUDGET. (a) Before beginning the
2188	2188	operation of commuter rail facilities, the board shall adopt an
2189	2189	annual operating budget specifying the district's anticipated
2190	2190	revenue and expenses for the remainder of the fiscal year. The
2191	2191	district shall adopt an operating budget for each succeeding fiscal
2192	2192	year.
2193	2193	(b) The board must hold a public hearing before adopting
2194	2194	each budget except the initial budget. Notice of the hearing must
2195	2195	be published at least seven days before the date of the hearing in a
2196	2196	newspaper of general circulation in the district.
2197	2197	(c) A budget may be amended at any time if notice of the
2198	2198	proposed amendment is given in the notice of meeting.
2199	2199	(d) An expenditure that is not budgeted may not be made.
2200	2200	(V.A.C.S. Art. 6550c-1, Sec. 4(p) (part).)
2201	2201	Sec. 173.253. GRANTS AND LOANS. A district may accept
2202	2202	grants and loans from the United States, this state and its agencies
2203	2203	and political subdivisions, public or private corporations, and
2204	2204	other persons. (V.A.C.S. Art. 6550c-1, Sec. 4(k) (part).)
2205	2205	Sec. 173.254. DEPOSITORY. (a) The board by resolution
2206	2206	shall name one or more banks for the deposit of district funds.
2207	2207	(b) District funds are public funds and may be invested in
2208	2208	securities permitted by Chapter 2256, Government Code.
2209	2209	(c) To the extent district funds are not insured by the
2210	2210	Federal Deposit Insurance Corporation or its successor, the funds
2211	2211	shall be collateralized in the manner provided for county funds.
2212	2212	(V.A.C.S. Art. 6550c-1, Sec. 4(r).)
2213	2213	Sec. 173.255. PURCHASE OF ADDITIONAL INSURED PROVISIONS. A
2214	2214	district may purchase an additional insured provision to any
2215	2215	liability insurance contract. (V.A.C.S. Art. 6550c-1, Sec. 4(o).)
2216	2216	Sec. 173.256. FINANCING OF CERTAIN TRANSPORTATION
2217	2217	INFRASTRUCTURE. (a) This section applies only to a local
2218	2218	government, other than a school district, that is a member of a
2219	2219	district and that is authorized to impose ad valorem taxes on real
2220	2220	property.
2221	2221	(b) A district may enter into an interlocal contract with a
2222	2222	local government member for the financing of transportation
2223	2223	infrastructure that is constructed or that is to be constructed in
2224	2224	the territory of the local government by the district.
2225	2225	(c) The agreement must include:
2226	2226	(1) the duration of the agreement;
2227	2227	(2) a description of each transportation
2228	2228	infrastructure project or proposed project;
2229	2229	(3) a map showing the location of each project; and
2230	2230	(4) an estimate of the cost of each project.
2231	2231	(d) The agreement may establish one or more transportation
2232	2232	infrastructure zones. The district and the local government may
2233	2233	agree that, at one or more specified times, the local government
2234	2234	will pay to the district an amount that is calculated on the basis
2235	2235	of increased ad valorem tax collections in a zone that are
2236	2236	attributable to increased values of property located in the zone
2237	2237	resulting from an infrastructure project. The amount may not
2238	2238	exceed an amount that is equal to 30 percent of the increase in ad
2239	2239	valorem tax collections for the specified period.
2240	2240	(e) Money received by the district under this section may be
2241	2241	used:
2242	2242	(1) to provide a local match for the acquisition of
2243	2243	right-of-way in the territory of the local government; or
2244	2244	(2) for design, construction, operation, or
2245	2245	maintenance of transportation facilities in the territory of the
2246	2246	local government. (V.A.C.S. Art. 6550c-1, Sec. 8.)
2247	2247	Sec. 173.257. TAX EXEMPTION. District property, material
2248	2248	purchases, revenue, and income and the interest on bonds and notes
2249	2249	issued by the district are exempt from any tax imposed by this state
2250	2250	or a political subdivision of this state. (V.A.C.S. Art. 6550c-1,
2251	2251	Sec. 7.)
2252	2252	[Sections 173.258-173.300 reserved for expansion]
2253	2253	SUBCHAPTER G. BONDS
2254	2254	Sec. 173.301. REVENUE BONDS. A district may issue revenue
2255	2255	bonds and notes in amounts that the board considers necessary or
2256	2256	appropriate for the acquisition, purchase, construction,
2257	2257	reconstruction, repair, equipping, improvement, or extension of
2258	2258	its commuter rail facilities. (V.A.C.S. Art. 6550c-1, Sec. 5(a)
2259	2259	(part).)
2260	2260	Sec. 173.302. SECURITY FOR PAYMENT OF BONDS. (a) To secure
2261	2261	payment of district bonds or notes, the district may:
2262	2262	(1) encumber and pledge all or part of the revenue of
2263	2263	its commuter rail facilities; and
2264	2264	(2) encumber all or part of the property of the
2265	2265	commuter rail facilities and everything pertaining to them acquired
2266	2266	or to be acquired.
2267	2267	(b) Unless prohibited by the resolution or indenture
2268	2268	relating to outstanding bonds or notes, a district may encumber
2269	2269	separately any item of property. (V.A.C.S. Art. 6550c-1, Sec. 5(c)
2270	2270	(part).)
2271	2271	Sec. 173.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
2272	2272	FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds and notes are
2273	2273	legal and authorized investments for:
2274	2274	(1) a bank;
2275	2275	(2) a trust company;
2276	2276	(3) a savings and loan association; and
2277	2277	(4) an insurance company.
2278	2278	(b) The bonds and notes are:
2279	2279	(1) eligible to secure the deposit of public funds of
2280	2280	this state or a municipality, a county, a school district, or any
2281	2281	other political corporation or subdivision of this state; and
2282	2282	(2) lawful and sufficient security for the deposit to
2283	2283	the extent of the principal amount or market value of the bonds or
2284	2284	notes, whichever is less. (V.A.C.S. Art. 6550c-1, Sec. 5(d).)
2285	2285	Sec. 173.304. LIMIT ON POWER. (a) A revenue bond indenture
2286	2286	may limit the exercise of a power granted by Section 173.004,
2287	2287	173.005, 173.111, 173.151, 173.152, 173.153, 173.154, 173.155,
2288	2288	173.157, 173.159, 173.160, 173.201, 173.202, 173.203, 173.204,
2289	2289	173.205, 173.206, 173.207, 173.208, 173.209, 173.251, 173.252,
2290	2290	173.253, 173.254, or 173.255.
2291	2291	(b) The limitation applies while any of the revenue bonds
2292	2292	issued under the indenture are outstanding and unpaid. (V.A.C.S.
2293	2293	Art. 6550c-1, Sec. 4(k) (part).)
2294	2294	[Sections 173.305-173.350 reserved for expansion]
2295	2295	SUBCHAPTER H. SALES AND USE TAXES
2296	2296	Sec. 173.351. TAX AUTHORIZED. A sales and use tax is
2297	2297	imposed on items sold on district property. (V.A.C.S. Art.
2298	2298	6550c-1, Sec. 9(a) (part).)
2299	2299	Sec. 173.352. TAX RATE. The sales and use tax shall be
2300	2300	imposed at the rate of the highest combination of local sales and
2301	2301	use taxes imposed at the time of the district's creation in any
2302	2302	local governmental jurisdiction that is part of the district.
2303	2303	(V.A.C.S. Art. 6550c-1, Sec. 9(a) (part).)
2304	2304	Sec. 173.353. PREEMPTION OF OTHER SALES AND USE TAXES. The
2305	2305	tax imposed under this subchapter preempts all other local sales
2306	2306	and use taxes that would otherwise be imposed on district property.
2307	2307	(V.A.C.S. Art. 6550c-1, Sec. 9(a) (part).)
2308	2308	Sec. 173.354. APPLICABILITY OF TAX CODE. Chapter 321, Tax
2309	2309	Code, governs the computation, administration, governance, and use
2310	2310	of the tax except as inconsistent with this chapter. (V.A.C.S. Art.
2311	2311	6550c-1, Sec. 9(b) (part).)
2312	2312	Sec. 173.355. NOTICE TO COMPTROLLER. (a) The district
2313	2313	shall notify the comptroller in writing by United States registered
2314	2314	or certified mail of the district's creation and of its intent to
2315	2315	impose the sales and use tax under this chapter.
2316	2316	(b) The district shall provide to the comptroller all
2317	2317	information required to implement the tax, including:
2318	2318	(1) an adequate map showing the property boundaries of
2319	2319	the district;
2320	2320	(2) a certified copy of the resolution of the board
2321	2321	adopting the tax; and
2322	2322	(3) certified copies of the resolutions of the
2323	2323	governing bodies of the creating municipalities and of the
2324	2324	commissioners courts of the counties in which the municipalities
2325	2325	are located.
2326	2326	(c) Not later than the 30th day after the date the
2327	2327	comptroller receives the notice, map, and other information, the
2328	2328	comptroller shall inform the district whether the comptroller is
2329	2329	prepared to administer the tax. (V.A.C.S. Art. 6550c-1, Secs.
2330	2330	9(c), (d).)
2331	2331	Sec. 173.356. NOTICE TO LOCAL GOVERNMENTS. At the same time
2332	2332	the district notifies the comptroller under Section 173.355, the
2333	2333	district shall:
2334	2334	(1) notify each affected local governmental
2335	2335	jurisdiction of the district's creation; and
2336	2336	(2) provide each jurisdiction with an adequate map
2337	2337	showing the property boundaries of the district. (V.A.C.S. Art.
2338	2338	6550c-1, Sec. 9(e).)
2339	2339	Sec. 173.357. ACQUISITION OF ADDITIONAL TERRITORY SUBJECT
2340	2340	TO TAX. (a) Not later than the 30th day after the date a district
2341	2341	acquires additional territory, the district shall notify the
2342	2342	comptroller and each affected local governmental jurisdiction of
2343	2343	the acquisition.
2344	2344	(b) The district must include with each notification:
2345	2345	(1) an adequate map showing the new property
2346	2346	boundaries of the district; and
2347	2347	(2) the date the additional territory was acquired.
2348	2348	(c) Not later than the 30th day after the date the
2349	2349	comptroller receives the notice under this section, the comptroller
2350	2350	shall inform the district whether the comptroller is prepared to
2351	2351	administer the tax in the additional territory. (V.A.C.S. Art.
2352	2352	6550c-1, Sec. 9(f).)
2353	2353	Sec. 173.358. DUTY OF COMPTROLLER. The comptroller shall:
2354	2354	(1) administer, collect, and enforce a tax imposed
2355	2355	under this chapter; and
2356	2356	(2) remit to a district the tax collected on the
2357	2357	district's property. (V.A.C.S. Art. 6550c-1, Secs. 9(a) (part),
2358	2358	(b) (part).)
2359	2359	Sec. 173.359. EFFECTIVE DATE OF TAX. A tax imposed under
2360	2360	this chapter or the repeal of a tax imposed under this chapter takes
2361	2361	effect on the first day of the first calendar quarter that begins
2362	2362	after the expiration of the first complete calendar quarter that
2363	2363	occurs after the date the comptroller receives a notice of the
2364	2364	action as required by this subchapter. (V.A.C.S. Art. 6550c-1,
2365	2365	Sec. 9(g).)
2366	2366	CHAPTER 174. COMMUTER RAIL DISTRICTS
2367	2367	SUBCHAPTER A. GENERAL PROVISIONS
2368	2368	Sec. 174.001. DEFINITION OF PERSON
2369	2369	Sec. 174.002. DEFINITIONS
2370	2370	Sec. 174.003. NATURE OF DISTRICT
2371	2371	Sec. 174.004. REQUIREMENT FOR SERVICE TO
2372	2372	MUNICIPALITIES IN DISTRICT
2373	2373	[Sections 174.005-174.050 reserved for expansion]
2374	2374	SUBCHAPTER B. CREATION
2375	2375	Sec. 174.051. CREATION OF DISTRICT
2376	2376	[Sections 174.052-174.100 reserved for expansion]
2377	2377	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
2378	2378	Sec. 174.101. CONTROL OF DISTRICT
2379	2379	Sec. 174.102. COMPOSITION OF BOARD; TERMS
2380	2380	Sec. 174.103. PRESIDING OFFICER
2381	2381	Sec. 174.104. MEETINGS
2382	2382	Sec. 174.105. RULES FOR PROCEEDINGS
2383	2383	Sec. 174.106. COMPENSATION; REIMBURSEMENT
2384	2384	Sec. 174.107. EMPLOYEES
2385	2385	Sec. 174.108. EXECUTIVE COMMITTEE
2386	2386	Sec. 174.109. RETIREMENT BENEFITS
2387	2387	[Sections 174.110-174.150 reserved for expansion]
2388	2388	SUBCHAPTER D. GENERAL POWERS AND DUTIES
2389	2389	Sec. 174.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
2390	2390	FUNCTIONS
2391	2391	Sec. 174.152. RULES
2392	2392	Sec. 174.153. AGREEMENTS GENERALLY
2393	2393	Sec. 174.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
2394	2394	USE
2395	2395	Sec. 174.155. JOINT OWNERSHIP AGREEMENTS
2396	2396	Sec. 174.156. INTERLOCAL AGREEMENTS WITH COMMISSION
2397	2397	Sec. 174.157. AWARDING CONSTRUCTION OR PURCHASE
2398	2398	CONTRACTS
2399	2399	Sec. 174.158. EMINENT DOMAIN
2400	2400	Sec. 174.159. SUITS
2401	2401	[Sections 174.160-174.200 reserved for expansion]
2402	2402	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
2403	2403	CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
2404	2404	Sec. 174.201. GENERAL AUTHORITY OVER COMMUTER RAIL
2405	2405	FACILITIES
2406	2406	Sec. 174.202. POWERS RELATING TO DISTRICT PROPERTY
2407	2407	Sec. 174.203. USE AND ALTERATION OF PROPERTY OF
2408	2408	ANOTHER POLITICAL SUBDIVISION
2409	2409	Sec. 174.204. RULES GOVERNING SYSTEM AND ROUTINGS
2410	2410	Sec. 174.205. ACQUISITION OF PROPERTY
2411	2411	Sec. 174.206. ACQUISITION OF ROLLING STOCK AND OTHER
2412	2412	PROPERTY
2413	2413	Sec. 174.207. COMPENSATION FOR USE OF SYSTEM
2414	2414	FACILITIES
2415	2415	Sec. 174.208. OPERATION OR USE CONTRACTS
2416	2416	Sec. 174.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
2417	2417	WITH OTHER POLITICAL SUBDIVISIONS
2418	2418	[Sections 174.210-174.250 reserved for expansion]
2419	2419	SUBCHAPTER F. FINANCIAL PROVISIONS
2420	2420	Sec. 174.251. FISCAL YEAR
2421	2421	Sec. 174.252. ANNUAL BUDGET
2422	2422	Sec. 174.253. GRANTS AND LOANS
2423	2423	Sec. 174.254. DEPOSITORY
2424	2424	Sec. 174.255. PURCHASE OF ADDITIONAL INSURED
2425	2425	PROVISIONS
2426	2426	Sec. 174.256. TAX EXEMPTION
2427	2427	[Sections 174.257-174.300 reserved for expansion]
2428	2428	SUBCHAPTER G. BONDS
2429	2429	Sec. 174.301. REVENUE BONDS
2430	2430	Sec. 174.302. SECURITY FOR PAYMENT OF BONDS
2431	2431	Sec. 174.303. BONDS AS AUTHORIZED INVESTMENTS AND
2432	2432	SECURITY FOR DEPOSITS OF PUBLIC FUNDS
2433	2433	Sec. 174.304. LIMIT ON POWER
2434	2434	[Sections 174.305-174.350 reserved for expansion]
2435	2435	SUBCHAPTER H. TAXES
2436	2436	Sec. 174.351. TAX AUTHORIZED
2437	2437	Sec. 174.352. IMPOSITION OF TAX
2438	2438	Sec. 174.353. TAX RATE
2439	2439	Sec. 174.354. EFFECTIVE DATE OF TAX
2440	2440	CHAPTER 174. COMMUTER RAIL DISTRICTS
2441	2441	SUBCHAPTER A. GENERAL PROVISIONS
2442	2442	Sec. 174.001. DEFINITION OF PERSON. In this chapter:
2443	2443	(1) "person" includes a corporation, as provided by
2444	2444	Section 312.011, Government Code; and
2445	2445	(2) the definition of "person" assigned by Section
2446	2446	311.005, Government Code, does not apply. (New.)
2447	2447	Sec. 174.002. DEFINITIONS. In this chapter:
2448	2448	(1) "Board" means a district's board of directors.
2449	2449	(2) "Commuter rail facility" means any property
2450	2450	necessary for the transportation of passengers and baggage between
2451	2451	locations in a district. The term includes rolling stock,
2452	2452	locomotives, stations, parking areas, and rail lines.
2453	2453	(3) "Director" means a board member.
2454	2454	(4) "District" means a commuter rail district created
2455	2455	under this chapter or under Article 6550c-3, Revised Statutes, as
2456	2456	that article existed before April 1, 2011.
2457	2457	(5) "System" means all of the commuter rail and
2458	2458	intermodal facilities leased or owned by or operated on behalf of a
2459	2459	district. (V.A.C.S. Art. 6550c-3, Secs. 1(2), (5), (7); New.)
2460	2460	Sec. 174.003. NATURE OF DISTRICT. (a) A district is a public
2461	2461	body and a political subdivision of this state exercising public
2462	2462	and essential governmental functions.
2463	2463	(b) A district, in the exercise of powers under this
2464	2464	chapter, is performing only governmental functions and is a
2465	2465	governmental unit under Chapter 101, Civil Practice and Remedies
2466	2466	Code. (V.A.C.S. Art. 6550c-3, Sec. 4(a) (part).)
2467	2467	Sec. 174.004. REQUIREMENT FOR SERVICE TO MUNICIPALITIES IN
2468	2468	DISTRICT. A municipality located in a district that wishes to be
2469	2469	served by commuter rail facilities of the district must pay for
2470	2470	construction of a commuter rail station. (V.A.C.S. Art. 6550c-3,
2471	2471	Sec. 9.)
2472	2472	[Sections 174.005-174.050 reserved for expansion]
2473	2473	SUBCHAPTER B. CREATION
2474	2474	Sec. 174.051. CREATION OF DISTRICT. (a) A district may be
2475	2475	created to provide commuter rail service to counties along the
2476	2476	Texas-Mexico border.
2477	2477	(b) The commissioners court of a county may create a
2478	2478	commuter rail district on adoption of an order favoring the
2479	2479	creation. (V.A.C.S. Art. 6550c-3, Sec. 2.)
2480	2480	[Sections 174.052-174.100 reserved for expansion]
2481	2481	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
2482	2482	Sec. 174.101. CONTROL OF DISTRICT. A district is governed
2483	2483	by a board of directors. The board is responsible for the
2484	2484	management, operation, and control of the district. (V.A.C.S. Art.
2485	2485	6550c-3, Sec. 3(a).)
2486	2486	Sec. 174.102. COMPOSITION OF BOARD; TERMS. (a) The board is
2487	2487	composed of five directors appointed as follows:
2488	2488	(1) one director appointed by the county judge; and
2489	2489	(2) one director appointed by each county
2490	2490	commissioner.
2491	2491	(b) Each director serves a four-year term. The board may
2492	2492	provide for the staggering of the terms of its directors. (V.A.C.S.
2493	2493	Art. 6550c-3, Sec. 3(b).)
2494	2494	Sec. 174.103. PRESIDING OFFICER. (a) The directors shall
2495	2495	elect one director as presiding officer.
2496	2496	(b) The presiding officer may select another director to
2497	2497	preside in the absence of the presiding officer. (V.A.C.S. Art.
2498	2498	6550c-3, Sec. 3(c).)
2499	2499	Sec. 174.104. MEETINGS. The presiding officer shall call
2500	2500	at least one meeting of the board each year and may call other
2501	2501	meetings as the presiding officer determines are appropriate.
2502	2502	(V.A.C.S. Art. 6550c-3, Sec. 3(d).)
2503	2503	Sec. 174.105. RULES FOR PROCEEDINGS. The board shall adopt
2504	2504	rules for its proceedings. (V.A.C.S. Art. 6550c-3, Sec. 3(f)
2505	2505	(part).)
2506	2506	Sec. 174.106. COMPENSATION; REIMBURSEMENT. A director is
2507	2507	not entitled to compensation for serving as a director but is
2508	2508	entitled to reimbursement for reasonable expenses incurred while
2509	2509	serving as a director. (V.A.C.S. Art. 6550c-3, Sec. 3(e).)
2510	2510	Sec. 174.107. EMPLOYEES. The board may employ and
2511	2511	compensate persons to carry out the powers and duties of the
2512	2512	district. (V.A.C.S. Art. 6550c-3, Sec. 3(f) (part).)
2513	2513	Sec. 174.108. EXECUTIVE COMMITTEE. The board shall appoint
2514	2514	an executive committee. (V.A.C.S. Art. 6550c-3, Sec. 3(f) (part).)
2515	2515	Sec. 174.109. RETIREMENT BENEFITS. A district is eligible
2516	2516	to participate in the Texas County and District Retirement System.
2517	2517	(V.A.C.S. Art. 6550c-3, Sec. 4(p).)
2518	2518	[Sections 174.110-174.150 reserved for expansion]
2519	2519	SUBCHAPTER D. GENERAL POWERS AND DUTIES
2520	2520	Sec. 174.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
2521	2521	FUNCTIONS. (a) A district has all the powers necessary or
2522	2522	convenient to carry out the purposes of this chapter.
2523	2523	(b) A district may perform any act necessary for the full
2524	2524	exercise of the district's powers. (V.A.C.S. Art. 6550c-3, Secs.
2525	2525	4(a) (part), (j) (part).)
2526	2526	Sec. 174.152. RULES. To protect the health, safety, and
2527	2527	general welfare of district residents and people who use district
2528	2528	services, a district may adopt rules to govern the operation of the
2529	2529	district, its employees, the system, service provided by the
2530	2530	district, and any other necessary matter concerning its purposes,
2531	2531	including rules regarding health, safety, alcohol or beverage
2532	2532	service, food service, or telephone or utility service. (V.A.C.S.
2533	2533	Art. 6550c-3, Sec. 4(g).)
2534	2534	Sec. 174.153. AGREEMENTS GENERALLY. A district may make
2535	2535	contracts, leases, and agreements with the United States, this
2536	2536	state and its agencies and political subdivisions, and other
2537	2537	persons and entities. (V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
2538	2538	Sec. 174.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
2539	2539	A district may:
2540	2540	(1) make agreements with a public utility, private
2541	2541	utility, communication system, common carrier, state agency, or
2542	2542	transportation system for the joint use of facilities,
2543	2543	installations, or property inside or outside the district; and
2544	2544	(2) establish:
2545	2545	(A) through routes; and
2546	2546	(B) joint fares. (V.A.C.S. Art. 6550c-3, Sec.
2547	2547	4(f).)
2548	2548	Sec. 174.155. JOINT OWNERSHIP AGREEMENTS. A district may
2549	2549	enter into a joint ownership agreement with any person. (V.A.C.S.
2550	2550	Art. 6550c-3, Sec. 4(h).)
2551	2551	Sec. 174.156. INTERLOCAL AGREEMENTS WITH COMMISSION. The
2552	2552	commission may enter into an interlocal agreement with the district
2553	2553	under which the district may exercise a power or duty of the
2554	2554	commission for the development and efficient operation of an
2555	2555	intermodal corridor in the district. (V.A.C.S. Art. 6550c-3, Sec.
2556	2556	4(j) (part).)
2557	2557	Sec. 174.157. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
2558	2558	(a) A contract in the amount of more than $15,000 for the
2559	2559	construction of improvements or the purchase of material,
2560	2560	machinery, equipment, supplies, or any other property except real
2561	2561	property may be awarded only through competitive bidding after
2562	2562	notice is published in a newspaper of general circulation in the
2563	2563	district at least 15 days before the date set for receiving bids.
2564	2564	(b) The board may adopt rules governing the taking of bids
2565	2565	and the awarding of contracts.
2566	2566	(c) This section does not apply to:
2567	2567	(1) personal or professional services;
2568	2568	(2) the acquisition of an existing rail transportation
2569	2569	system; or
2570	2570	(3) a contract with a common carrier to construct
2571	2571	lines or to operate commuter rail service on lines wholly or partly
2572	2572	owned by the carrier. (V.A.C.S. Art. 6550c-3, Sec. 6.)
2573	2573	Sec. 174.158. EMINENT DOMAIN. (a) A district may exercise
2574	2574	the power of eminent domain to acquire:
2575	2575	(1) real property in fee simple; or
2576	2576	(2) an interest in real property less than fee simple
2577	2577	in, on, under, or above land, including an easement, right-of-way,
2578	2578	or right of use of airspace or subsurface space.
2579	2579	(b) The power of eminent domain under this section does not
2580	2580	apply to:
2581	2581	(1) land under the jurisdiction of the department; or
2582	2582	(2) a rail line owned by a common carrier or
2583	2583	municipality.
2584	2584	(c) To the extent possible, the district shall use existing
2585	2585	rail or intermodal transportation corridors for the alignment of
2586	2586	its system.
2587	2587	(d) An eminent domain proceeding is begun by the board's
2588	2588	adoption of a resolution declaring that the district's acquisition
2589	2589	of the property or interest described in the resolution:
2590	2590	(1) is a public necessity; and
2591	2591	(2) is necessary and proper for the construction,
2592	2592	extension, improvement, or development of commuter rail facilities
2593	2593	and is in the public interest.
2594	2594	(e) The resolution is conclusive evidence of the public
2595	2595	necessity of the proposed acquisition and that the real property or
2596	2596	interest in property is necessary for public use. (V.A.C.S. Art.
2597	2597	6550c-3, Sec. 4(e).)
2598	2598	Sec. 174.159. SUITS. (a) A district may:
2599	2599	(1) sue and be sued;
2600	2600	(2) institute and prosecute suits without giving
2601	2601	security for costs; and
2602	2602	(3) appeal from a judgment without giving a
2603	2603	supersedeas or cost bond.
2604	2604	(b) An action at law or in equity against the district must
2605	2605	be brought in the county in which a principal office of the district
2606	2606	is located, except that a suit in eminent domain involving an
2607	2607	interest in land must be brought in the county in which the land is
2608	2608	located. (V.A.C.S. Art. 6550c-3, Sec. 4(b).)
2609	2609	[Sections 174.160-174.200 reserved for expansion]
2610	2610	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
2611	2611	CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
2612	2612	Sec. 174.201. GENERAL AUTHORITY OVER COMMUTER RAIL
2613	2613	FACILITIES. A district may acquire, construct, develop, own,
2614	2614	operate, and maintain intermodal and commuter rail facilities to
2615	2615	connect political subdivisions in the district. (V.A.C.S. Art.
2616	2616	6550c-3, Sec. 4(d) (part).)
2617	2617	Sec. 174.202. POWERS RELATING TO DISTRICT PROPERTY. A
2618	2618	district may acquire by grant, purchase, gift, devise, lease, or
2619	2619	otherwise and may hold, use, sell, lease, or dispose of property,
2620	2620	including a license, a patent, a right, or an interest, necessary,
2621	2621	convenient, or useful for the full exercise of its powers.
2622	2622	(V.A.C.S. Art. 6550c-3, Sec. 4(c).)
2623	2623	Sec. 174.203. USE AND ALTERATION OF PROPERTY OF ANOTHER
2624	2624	POLITICAL SUBDIVISION. (a) For a purpose described by Section
2625	2625	174.201, as necessary or useful in the construction,
2626	2626	reconstruction, repair, maintenance, and operation of the system,
2627	2627	and with the consent of a municipality, county, or other political
2628	2628	subdivision, a district may:
2629	2629	(1) use streets, alleys, roads, highways, and other
2630	2630	public ways of the political subdivision; and
2631	2631	(2) relocate, raise, reroute, change the grade of, or
2632	2632	alter, at the district's expense, the construction of a publicly
2633	2633	owned or privately owned street, alley, highway, road, railroad,
2634	2634	electric line or facility, telegraph or telephone property or
2635	2635	facility, pipeline or facility, conduit or facility, and other
2636	2636	property.
2637	2637	(b) A district may not use or alter:
2638	2638	(1) a road or highway in the state highway system
2639	2639	without the permission of the commission; or
2640	2640	(2) a railroad without permission of the railroad.
2641	2641	(V.A.C.S. Art. 6550c-3, Sec. 4(d) (part).)
2642	2642	Sec. 174.204. RULES GOVERNING SYSTEM AND ROUTINGS. A
2643	2643	district by resolution may adopt rules governing the use,
2644	2644	operation, and maintenance of the system and may determine or
2645	2645	change a routing as the board considers advisable. (V.A.C.S. Art.
2646	2646	6550c-3, Sec. 4(k).)
2647	2647	Sec. 174.205. ACQUISITION OF PROPERTY. (a) A district may
2648	2648	purchase any interest in real property to acquire, construct, or
2649	2649	operate a commuter rail facility on terms and at a price to which
2650	2650	the district and the owner agree.
2651	2651	(b) The governing body of a municipality, a county, any
2652	2652	other political subdivision, or a public agency may convey the
2653	2653	title or the rights and easements to property needed by the district
2654	2654	for its purposes in connection with the acquisition, construction,
2655	2655	or operation of the system. (V.A.C.S. Art. 6550c-3, Sec. 4(d)
2656	2656	(part).)
2657	2657	Sec. 174.206. ACQUISITION OF ROLLING STOCK AND OTHER
2658	2658	PROPERTY. A district may acquire rolling stock or other property
2659	2659	under a conditional sales contract, lease, equipment trust
2660	2660	certificate, or other form of contract or trust agreement.
2661	2661	(V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
2662	2662	Sec. 174.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
2663	2663	(a) A district shall establish and maintain reasonable and
2664	2664	nondiscriminatory rates or other compensation for the use of the
2665	2665	facilities of the system acquired, constructed, operated,
2666	2666	regulated, or maintained by the district.
2667	2667	(b) Together with grants received by the district, the rates
2668	2668	or other compensation must be sufficient to produce revenue
2669	2669	adequate to:
2670	2670	(1) pay all expenses necessary for the operation and
2671	2671	maintenance of the district's property and facilities;
2672	2672	(2) pay the principal of and interest on bonds issued
2673	2673	by the district payable wholly or partly from the revenue, as they
2674	2674	become due and payable; and
2675	2675	(3) fulfill the terms of agreements made with the
2676	2676	holders of bonds or with any person on their behalf. (V.A.C.S. Art.
2677	2677	6550c-3, Sec. 4(i).)
2678	2678	Sec. 174.208. OPERATION OR USE CONTRACTS. (a) A district
2679	2679	may:
2680	2680	(1) lease all or part of the commuter rail facilities
2681	2681	to an operator; or
2682	2682	(2) contract for the use or operation of all or part of
2683	2683	the commuter rail facilities by an operator.
2684	2684	(b) To the maximum extent practicable, the district shall
2685	2685	encourage the participation of private enterprise in the operation
2686	2686	of commuter rail facilities.
2687	2687	(c) The term of an operating contract under this section may
2688	2688	not exceed 20 years. (V.A.C.S. Art. 6550c-3, Sec. 4(l).)
2689	2689	Sec. 174.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
2690	2690	OTHER POLITICAL SUBDIVISIONS. A district may contract with a
2691	2691	county or other political subdivision of this state for the
2692	2692	district to provide commuter rail transportation services to an
2693	2693	area outside the district on terms to which the parties agree.
2694	2694	(V.A.C.S. Art. 6550c-3, Sec. 4(m).)
2695	2695	[Sections 174.210-174.250 reserved for expansion]
2696	2696	SUBCHAPTER F. FINANCIAL PROVISIONS
2697	2697	Sec. 174.251. FISCAL YEAR. Unless the board changes the
2698	2698	fiscal year, the district's fiscal year ends on September 30.
2699	2699	(V.A.C.S. Art. 6550c-3, Sec. 4(o) (part).)
2700	2700	Sec. 174.252. ANNUAL BUDGET. (a) Before beginning the
2701	2701	operation of commuter rail facilities, the board shall adopt an
2702	2702	annual operating budget specifying the district's anticipated
2703	2703	revenue and expenses for the remainder of the fiscal year. The
2704	2704	district shall adopt an operating budget for each succeeding fiscal
2705	2705	year.
2706	2706	(b) The board must hold a public hearing before adopting
2707	2707	each budget except the initial budget. Notice of the hearing must
2708	2708	be published at least seven days before the date of the hearing in a
2709	2709	newspaper of general circulation in the district.
2710	2710	(c) A budget may be amended at any time if notice of the
2711	2711	proposed amendment is given in the notice of the meeting at which
2712	2712	the amendment will be considered.
2713	2713	(d) An expenditure that is not budgeted may not be made.
2714	2714	(V.A.C.S. Art. 6550c-3, Sec. 4(o) (part).)
2715	2715	Sec. 174.253. GRANTS AND LOANS. A district may accept
2716	2716	grants and loans from the United States, this state and its agencies
2717	2717	and political subdivisions, and other persons and entities.
2718	2718	(V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
2719	2719	Sec. 174.254. DEPOSITORY. (a) The board by resolution
2720	2720	shall name one or more banks for the deposit of district funds.
2721	2721	(b) District funds are public funds and may be invested in
2722	2722	securities permitted by Chapter 2256, Government Code.
2723	2723	(c) To the extent district funds are not insured by the
2724	2724	Federal Deposit Insurance Corporation or its successor, the funds
2725	2725	shall be collateralized in the manner provided for county funds.
2726	2726	(V.A.C.S. Art. 6550c-3, Sec. 4(q).)
2727	2727	Sec. 174.255. PURCHASE OF ADDITIONAL INSURED PROVISIONS. A
2728	2728	district may purchase an additional insured provision to any
2729	2729	liability insurance contract. (V.A.C.S. Art. 6550c-3, Sec. 4(n).)
2730	2730	Sec. 174.256. TAX EXEMPTION. District property, material
2731	2731	purchases, revenue, and income and the interest on a bond or note
2732	2732	issued by a district are exempt from any tax imposed by this state
2733	2733	or a political subdivision of this state. (V.A.C.S. Art. 6550c-3,
2734	2734	Sec. 7.)
2735	2735	[Sections 174.257-174.300 reserved for expansion]
2736	2736	SUBCHAPTER G. BONDS
2737	2737	Sec. 174.301. REVENUE BONDS. A district may issue revenue
2738	2738	bonds and notes in amounts that the board considers necessary or
2739	2739	appropriate for the acquisition, purchase, construction,
2740	2740	reconstruction, repair, equipping, improvement, or extension of
2741	2741	its commuter rail facilities. (V.A.C.S. Art. 6550c-3, Sec. 5(a)
2742	2742	(part).)
2743	2743	Sec. 174.302. SECURITY FOR PAYMENT OF BONDS. (a) To secure
2744	2744	payment of district bonds or notes, the district may:
2745	2745	(1) encumber and pledge all or part of the revenue of
2746	2746	its commuter rail facilities; and
2747	2747	(2) encumber all or part of the property of the
2748	2748	commuter rail facilities and everything pertaining to them that is
2749	2749	acquired or to be acquired.
2750	2750	(b) Unless prohibited by the resolution or indenture
2751	2751	relating to outstanding bonds or notes, a district may encumber
2752	2752	separately any item of property. (V.A.C.S. Art. 6550c-3, Sec. 5(c)
2753	2753	(part).)
2754	2754	Sec. 174.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
2755	2755	FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds and notes are
2756	2756	legal and authorized investments for:
2757	2757	(1) a bank;
2758	2758	(2) a trust company;
2759	2759	(3) a savings and loan association; and
2760	2760	(4) an insurance company.
2761	2761	(b) The bonds and notes are:
2762	2762	(1) eligible to secure the deposit of public funds of
2763	2763	this state or a municipality, a county, a school district, or any
2764	2764	other political corporation or subdivision of this state; and
2765	2765	(2) lawful and sufficient security for the deposit to
2766	2766	the extent of the principal amount or market value of the bonds or
2767	2767	notes, whichever is less. (V.A.C.S. Art. 6550c-3, Sec. 5(d).)
2768	2768	Sec. 174.304. LIMIT ON POWER. (a) A revenue bond indenture
2769	2769	may limit the exercise of the power granted by Section 174.003,
2770	2770	174.109, 174.151, 174.152, 174.153, 174.154, 174.155, 174.156,
2771	2771	174.158, 174.159, 174.201, 174.202, 174.203, 174.204, 174.205,
2772	2772	174.206, 174.207, 174.208, 174.209, 174.251, 174.252, 174.253,
2773	2773	174.254, or 174.255.
2774	2774	(b) A limit applies while any of the revenue bonds issued
2775	2775	under the indenture are outstanding and unpaid. (V.A.C.S. Art.
2776	2776	6550c-3, Sec. 4(j) (part).)
2777	2777	[Sections 174.305-174.350 reserved for expansion]
2778	2778	SUBCHAPTER H. TAXES
2779	2779	Sec. 174.351. TAX AUTHORIZED. A district may impose any
2780	2780	kind of tax except an ad valorem property tax. (V.A.C.S. Art.
2781	2781	6550c-3, Sec. 8(a).)
2782	2782	Sec. 174.352. IMPOSITION OF TAX. (a) A district may not
2783	2783	impose a tax or increase the rate of an existing tax unless a
2784	2784	proposition proposing the imposition or rate increase is approved
2785	2785	by a majority of the votes received at an election held for that
2786	2786	purpose.
2787	2787	(b) Each new tax or rate increase must be expressed in a
2788	2788	separate proposition consisting of a brief statement of the nature
2789	2789	of the proposed tax.
2790	2790	(c) The notice of the election must contain a statement of
2791	2791	the base or rate of the proposed tax. (V.A.C.S. Art. 6550c-3, Secs.
2792	2792	8(b), (c), (d).)
2793	2793	Sec. 174.353. TAX RATE. (a) The board, subject to Section
2794	2794	174.352(a), may impose for a district a sales and use tax at the
2795	2795	rate of:
2796	2796	(1) one-quarter of one percent;
2797	2797	(2) one-half of one percent;
2798	2798	(3) three-quarters of one percent; or
2799	2799	(4) one percent.
2800	2800	(b) A district may not adopt a sales and use tax rate,
2801	2801	including a rate increase, that when combined with the rates of all
2802	2802	sales and use taxes imposed by other political subdivisions of this
2803	2803	state having territory in the district exceeds two percent in any
2804	2804	location in the district. (V.A.C.S. Art. 6550c-3, Secs. 8(e),
2805	2805	(f).)
2806	2806	Sec. 174.354. EFFECTIVE DATE OF TAX. A district's sales and
2807	2807	use tax takes effect on the first day of the second calendar quarter
2808	2808	beginning after the election approving the tax. (V.A.C.S. Art.
2809	2809	6550c-3, Sec. 8(g).)
2810	2810	SECTION 2.05. Subchapter B, Chapter 452, Transportation
2811	2811	Code, is amended by adding Section 452.0561 to read as follows:
2812	2812	Sec. 452.0561. LIABILITY OF TRANSPORTATION ENTITY
2813	2813	PROVIDING PUBLIC TRANSPORTATION. (a) This section applies only to
2814	2814	a transportation entity created under:
2815	2815	(1) Subtitle C or D of Title 5 or Chapter 172, 173, or
2816	2816	174; or
2817	2817	(2) former Title 112, Revised Statutes.
2818	2818	(b) A transportation entity created for the purpose of
2819	2819	providing public transportation is a governmental unit under
2820	2820	Chapter 101, Civil Practice and Remedies Code, and the operations
2821	2821	of the entity are essential governmental functions and not
2822	2822	proprietary functions for any purpose, including the application of
2823	2823	Chapter 101, Civil Practice and Remedies Code.
2824	2824	(c) An independent contractor of a transportation entity
2825	2825	performing a function of the entity or an authority is liable for
2826	2826	damages only to the extent that the entity or authority would be
2827	2827	liable if the entity or authority itself were performing the
2828	2828	function. (V.A.C.S. Art. 6550d.)
2829	2829	SECTION 2.06. Chapter 471, Transportation Code, is amended
2830	2830	by adding Section 471.009 to read as follows:
2831	2831	Sec. 471.009. ENHANCED PAVEMENT MARKING VISIBILITY AT
2832	2832	CERTAIN GRADE CROSSINGS. (a) In this section:
2833	2833	(1) "Grade crossing" and "reflecting material" have
2834	2834	the meanings assigned by Section 471.004.
2835	2835	(2) "Pavement markings" means markings applied or
2836	2836	attached to the surface of a roadway to regulate, warn, or guide
2837	2837	traffic.
2838	2838	(3) "Stop bar" means the marking that is applied or
2839	2839	attached to the surface of a roadway on either side of a grade
2840	2840	crossing and that indicates that a vehicle must stop at the grade
2841	2841	crossing.
2842	2842	(b) A county or municipality shall use standards developed
2843	2843	by the department in applying pavement markings or a stop bar at a
2844	2844	grade crossing if the cost of the markings or stop bar is paid
2845	2845	either entirely or partly from state or federal funds. In
2846	2846	developing its standards, the department shall follow the standards
2847	2847	in the Manual on Uniform Traffic Control Devices issued by the
2848	2848	United States Department of Transportation Federal Highway
2849	2849	Administration and, where appropriate, require the use of
2850	2850	reflecting materials. (V.A.C.S. Art. 6370c.)
2851	2851	SECTION 2.07. Title 66, Revised Statutes, is amended by
2852	2852	adding Article 4015g to read as follows:
2853	2853	Art. 4015g. SUITS FOR PENALTY. (a) A suit brought under this
2854	2854	title for recovery of penalties may be brought in any county in
2855	2855	which:
2856	2856	(1) a violation of this title is committed;
2857	2857	(2) the company or receiver has an agent or
2858	2858	representative; or
2859	2859	(3) the principal office of the company is located, or
2860	2860	in which a receiver resides.
2861	2861	(b) Of money collected from a penalty in this title:
2862	2862	(1) half, less the commission and expenses allowed by
2863	2863	law, shall be deposited in the state treasury; and
2864	2864	(2) the remainder shall be paid into the jury fund of
2865	2865	the county in which the suit may be maintained. (V.A.C.S. Art. 6477
2866	2866	(part).)
2867	2867	ARTICLE 3. TRANSFER OF PROVISIONS FROM TITLE 112, REVISED
2868	2868	STATUTES, TO NATURAL RESOURCES CODE
2869	2869	SECTION 3.01. Subchapter A, Chapter 81, Natural Resources
2870	2870	Code, is amended by adding Section 81.002 to read as follows:
2871	2871	Sec. 81.002. DEFINITION OF PERSON FOR CERTAIN PROVISIONS.
2872	2872	In this chapter:
2873	2873	(1) "person" includes a corporation, as provided by
2874	2874	Section 312.011, Government Code; and
2875	2875	(2) the definition of "person" assigned by Section
2876	2876	311.005, Government Code, does not apply. (New.)
2877	2877	SECTION 3.02. Subchapter B, Chapter 81, Natural Resources
2878	2878	Code, is amended by adding Sections 81.01001 through 81.01016 and
2879	2879	81.0165 to read as follows:
2880	2880	SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
2881	2881	Sec. 81.01001. SUNSET PROVISION
2882	2882	Sec. 81.01002. CHAIRMAN
2883	2883	Sec. 81.01003. QUALIFICATIONS FOR OFFICE
2884	2884	Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE,
2885	2885	INTEREST
2886	2886	Sec. 81.01005. NAME AND SEAL
2887	2887	Sec. 81.01006. PROCEDURAL RULES
2888	2888	Sec. 81.01007. SUPPLIES
2889	2889	Sec. 81.01008. SESSIONS
2890	2890	Sec. 81.01009. RECORDS RESEARCH FEE
2891	2891	Sec. 81.01010. FEE FOR COPIES
2892	2892	Sec. 81.01011. METHOD OF MAKING PAYMENTS TO COMMISSION
2893	2893	Sec. 81.01012. GIFTS, GRANTS, AND DONATIONS
2894	2894	Sec. 81.01013. CONFLICT OF INTEREST
2895	2895	Sec. 81.01014. EQUAL EMPLOYMENT OPPORTUNITY
2896	2896	Sec. 81.01015. EMPLOYEE INCENTIVE PROGRAM
2897	2897	Sec. 81.01016. SEPARATION OF RESPONSIBILITIES
2898	2898	Sec. 81.0165. SALARY OF SECRETARY
2899	2899	Sec. 81.01001. SUNSET PROVISION. The Railroad Commission
2900	2900	of Texas is subject to Chapter 325, Government Code (Texas Sunset
2901	2901	Act). Unless continued in existence as provided by that chapter,
2902	2902	the commission is abolished September 1, 2013. (V.A.C.S. Art.
2903	2903	6445a.)
2904	2904	Sec. 81.01002. CHAIRMAN. The commissioners shall elect one
2905	2905	commissioner as the chairman. (V.A.C.S. Art. 6447 (part).)
2906	2906	Sec. 81.01003. QUALIFICATIONS FOR OFFICE. A commissioner
2907	2907	must be:
2908	2908	(1) a qualified voter under the constitution and laws;
2909	2909	and
2910	2910	(2) at least 25 years of age. (V.A.C.S. Art. 6447
2911	2911	(part).)
2912	2912	Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF
2913	2913	CONDUCT, AND CONFLICT OF INTEREST. A commissioner is subject to the
2914	2914	provisions of Chapter 572, Government Code, that apply to elected
2915	2915	officers, including the requirements governing personal financial
2916	2916	statements, standards of conduct, and conflicts of interest.
2917	2917	(V.A.C.S. Art. 6447 (part).)
2918	2918	Sec. 81.01005. NAME AND SEAL. (a) The commissioners are
2919	2919	known collectively as the "Railroad Commission of Texas."
2920	2920	(b) The seal of the commission contains a star of five
2921	2921	points with the words "Railroad Commission of Texas" engraved on
2922	2922	it. (V.A.C.S. Art. 6447 (part).)
2923	2923	Sec. 81.01006. PROCEDURAL RULES. The commissioners may
2924	2924	adopt all rules necessary for the commission's government and
2925	2925	proceedings. (V.A.C.S. Art. 6447 (part).)
2926	2926	Sec. 81.01007. SUPPLIES. The commissioners shall be
2927	2927	furnished necessary furniture, stationery, supplies, and expenses,
2928	2928	to be paid for on the order of the governor. (V.A.C.S. Art. 6447
2929	2929	(part).)
2930	2930	Sec. 81.01008. SESSIONS. The commission may hold sessions
2931	2931	at any place in this state when considered necessary. (V.A.C.S.
2932	2932	Art. 6447 (part).)
2933	2933	Sec. 81.01009. RECORDS RESEARCH FEE. The commission shall
2934	2934	charge a person who requests an examination or search of commission
2935	2935	records $5 for each half hour or fraction of a half hour that a
2936	2936	commission employee spends in the examination or search unless the
2937	2937	person requesting the search represents this state or a county.
2938	2938	(V.A.C.S. Art. 6447j.)
2939	2939	Sec. 81.01010. FEE FOR COPIES. (a) The commission may
2940	2940	charge a fee for copies of papers provided by the commission to a
2941	2941	person other than a department of this state.
2942	2942	(b) The fee for a copy of a paper, document, or record in the
2943	2943	commission's office, including the certificate and seal to be
2944	2944	applied by the secretary, is 15 cents for each 100 words.
2945	2945	(c) This section does not authorize the commission to charge
2946	2946	a person a fee for a tariff sheet for the person's own use if the
2947	2947	tariff sheet is in effect.
2948	2948	(d) The fees charged and collected under this section shall
2949	2949	be accounted for by the secretary of the commission and paid into
2950	2950	the treasury as provided by Chapter 603, Government Code.
2951	2951	(V.A.C.S. Art. 3922.)
2952	2952	Sec. 81.01011. METHOD OF MAKING PAYMENTS TO COMMISSION.
2953	2953	(a) The commission may authorize payment, as prescribed by the
2954	2954	commission, of a regulatory fee, fine, penalty, or charge for goods
2955	2955	and services by means of an electronic payment method or a credit
2956	2956	card issued by a financial institution chartered by a state or the
2957	2957	United States or issued by a nationally recognized credit
2958	2958	organization approved by the commission. A payment by the
2959	2959	authorized method may be made in person, by telephone, or through
2960	2960	the Internet.
2961	2961	(b) The commission may require a person who makes a payment
2962	2962	to the commission by means of an electronic payment method or credit
2963	2963	card to pay a discount or service charge in an amount reasonable and
2964	2964	necessary to reimburse the commission for the costs involved in
2965	2965	processing the payment.
2966	2966	(c) The commission may adopt rules as necessary to implement
2967	2967	this section. (V.A.C.S. Art. 6447n.)
2968	2968	Sec. 81.01012. GIFTS, GRANTS, AND DONATIONS. (a) In this
2969	2969	section, "contested case" has the meaning assigned by Section
2970	2970	2001.003, Government Code.
2971	2971	(b) The commission may apply for, request, solicit,
2972	2972	contract for, receive, accept, and administer gifts, grants, and
2973	2973	donations of money or other assistance from any source to carry out
2974	2974	any commission purpose or power.
2975	2975	(c) The commission may not, under Subsection (b), accept a
2976	2976	gift or donation of money or of property from a party in a contested
2977	2977	case during the period from the inception of the contested case
2978	2978	until the 30th day after the date a final order is signed in the
2979	2979	contested case. (V.A.C.S. Art. 6447i.)
2980	2980	Sec. 81.01013. CONFLICT OF INTEREST. (a) In this section,
2981	2981	"Texas trade association" means a cooperative and voluntarily
2982	2982	joined association of business or professional competitors in this
2983	2983	state designed to assist its members and its industry or profession
2984	2984	in dealing with mutual business or professional problems and in
2985	2985	promoting their common interest.
2986	2986	(b) A person may not be an employee of the commission
2987	2987	employed in a "bona fide executive, administrative, or professional
2988	2988	capacity," as that phrase is used for purposes of establishing an
2989	2989	exemption to the overtime provisions of the federal Fair Labor
2990	2990	Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
2991	2991	(1) the person is an officer, employee, or paid
2992	2992	consultant of a Texas trade association in a business or industry
2993	2993	regulated by the commission; or
2994	2994	(2) the person's spouse is an officer, manager, or paid
2995	2995	consultant of a Texas trade association in a business or industry
2996	2996	regulated by the commission.
2997	2997	(c) A person who is required to register as a lobbyist under
2998	2998	Chapter 305, Government Code, may not act as the general counsel to
2999	2999	the commission.
3000	3000	(d) The commission shall provide to commissioners and to
3001	3001	agency employees, as often as necessary, information regarding the
3002	3002	requirements for office or employment under this chapter, including
3003	3003	information regarding a person's responsibilities under applicable
3004	3004	laws relating to standards of conduct for state officers or
3005	3005	employees. (V.A.C.S. Art. 6447c.)
3006	3006	Sec. 81.01014. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
3007	3007	commission shall prepare and maintain a written policy statement
3008	3008	that implements a program of equal employment opportunity to ensure
3009	3009	that all personnel decisions are made without regard to race,
3010	3010	color, disability, sex, religion, age, or national origin.
3011	3011	(b) The policy statement must include:
3012	3012	(1) personnel policies, including policies relating
3013	3013	to recruitment, evaluation, selection, training, and promotion of
3014	3014	personnel, that show the intent of the commission to avoid the
3015	3015	unlawful employment practices described by Chapter 21, Labor Code;
3016	3016	and
3017	3017	(2) an analysis of the extent to which the composition
3018	3018	of the commission's personnel is in accordance with state and
3019	3019	federal law and a description of reasonable methods to achieve
3020	3020	compliance with state and federal law.
3021	3021	(c) The policy statement must:
3022	3022	(1) be updated annually;
3023	3023	(2) be reviewed by the Texas Workforce Commission
3024	3024	civil rights division for compliance with Subsection (b); and
3025	3025	(3) be filed with the governor's office. (V.A.C.S.
3026	3026	Art. 6447b.)
3027	3027	Sec. 81.01015. EMPLOYEE INCENTIVE PROGRAM. The commission
3028	3028	shall provide to commission employees information and training on
3029	3029	the benefits and methods of participation in the state employee
3030	3030	incentive program. (V.A.C.S. Art. 6447m.)
3031	3031	Sec. 81.01016. SEPARATION OF RESPONSIBILITIES. The
3032	3032	commission shall develop and implement policies that clearly
3033	3033	separate the policy-making responsibilities of the commissioners
3034	3034	and the management responsibilities of the staff of the commission.
3035	3035	(V.A.C.S. Art. 6447k.)
3036	3036	Sec. 81.0165. SALARY OF SECRETARY. The salary of the
3037	3037	secretary of the commission shall be the amount appropriated for
3038	3038	that purpose by the legislature. (V.A.C.S. Art. 6447a.)
3039	3039	SECTION 3.03. Subchapter C, Chapter 81, Natural Resources
3040	3040	Code, is amended by adding Sections 81.0591, 81.0592, 81.062,
3041	3041	81.063, and 81.064 to read as follows:
3042	3042	SUBCHAPTER C. JURISDICTION, POWERS, AND DUTIES
3043	3043	Sec. 81.0591. COMPLAINTS
3044	3044	Sec. 81.0592. CONSUMER INTEREST INFORMATION
3045	3045	Sec. 81.062. PUBLIC PARTICIPATION
3046	3046	Sec. 81.063. ISSUANCE, SUSPENSION, OR REVOCATION OF
3047	3047	LICENSE, PERMIT, OR CERTIFICATE
3048	3048	Sec. 81.064. POWERS OF COMMISSIONER OR DESIGNATED
3049	3049	EMPLOYEE IN CASES BEFORE COMMISSION
3050	3050	Sec. 81.0591. COMPLAINTS. (a) The commission shall
3051	3051	maintain a file on each written complaint filed with the
3052	3052	commission. The file must include:
3053	3053	(1) the name of the person who filed the complaint;
3054	3054	(2) the date the complaint is received by the
3055	3055	commission;
3056	3056	(3) the subject matter of the complaint;
3057	3057	(4) the name of each person contacted in relation to
3058	3058	the complaint;
3059	3059	(5) a summary of the results of the review or
3060	3060	investigation of the complaint; and
3061	3061	(6) an explanation of the reason the file was closed,
3062	3062	if the commission closed the file without taking action other than
3063	3063	to investigate the complaint.
3064	3064	(b) The commission shall provide to the person filing the
3065	3065	complaint and to each person who is a subject of the complaint a
3066	3066	copy of the commission's policies and procedures relating to
3067	3067	complaint investigation and resolution.
3068	3068	(c) The commission, at least quarterly until final
3069	3069	disposition of the complaint, shall notify the person filing the
3070	3070	complaint and each person who is a subject of the complaint of the
3071	3071	status of the investigation unless the notice would jeopardize an
3072	3072	undercover investigation. (V.A.C.S. Art. 6447h.)
3073	3073	Sec. 81.0592. CONSUMER INTEREST INFORMATION. (a) The
3074	3074	commission shall prepare information of consumer interest
3075	3075	describing the regulatory functions of the commission and the
3076	3076	procedures by which consumer complaints are filed with and resolved
3077	3077	by the commission.
3078	3078	(b) The commission shall make the information available to
3079	3079	the public and appropriate state agencies. (V.A.C.S. Art. 6447g.)
3080	3080	Sec. 81.062. PUBLIC PARTICIPATION. The commission shall
3081	3081	develop and implement policies that provide the public with a
3082	3082	reasonable opportunity to appear before the commission and to speak
3083	3083	on any issue under the jurisdiction of the commission. (V.A.C.S.
3084	3084	Art. 6447l.)
3085	3085	Sec. 81.063. ISSUANCE, SUSPENSION, OR REVOCATION OF
3086	3086	LICENSE, PERMIT, OR CERTIFICATE. (a) If the commission proposes to
3087	3087	suspend or revoke a person's license, permit, or certificate of
3088	3088	public convenience and necessity, the person is entitled to a
3089	3089	hearing before the commission.
3090	3090	(b) The commission may not:
3091	3091	(1) refuse to issue a license, permit, or certificate
3092	3092	to a person because of the person's race, religion, color, sex, or
3093	3093	national origin; or
3094	3094	(2) revoke or suspend the license, permit, or
3095	3095	certificate of a person because of the person's race, religion,
3096	3096	color, sex, or national origin. (V.A.C.S. Arts. 6447f(a), (c).)
3097	3097	Sec. 81.064. POWERS OF COMMISSIONER OR DESIGNATED EMPLOYEE
3098	3098	IN CASES BEFORE COMMISSION. (a) In a case before the commission, a
3099	3099	commissioner, or an authorized commission employee, designated by
3100	3100	the commission for that purpose, in the same manner as if the entire
3101	3101	commission were present, may:
3102	3102	(1) hold a hearing;
3103	3103	(2) conduct an investigation;
3104	3104	(3) make a record of a hearing or investigation for the
3105	3105	use and benefit of the commission;
3106	3106	(4) administer an oath;
3107	3107	(5) certify to an official act; and
3108	3108	(6) compel the attendance of a witness and the
3109	3109	production of papers, books, accounts, and other pertinent
3110	3110	documents and testimony.
3111	3111	(b) The record of a hearing or investigation made under this
3112	3112	section that is certified to by the commissioner or employee has the
3113	3113	same effect as if made before the commission. The commission shall
3114	3114	determine a case in which the record is made under this section in
3115	3115	the same manner as if the record had been made before the
3116	3116	commission.
3117	3117	(c) The commission may punish for contempt a person who:
3118	3118	(1) refuses to comply with this section; or
3119	3119	(2) obstructs or attempts to obstruct a proceeding
3120	3120	under this section. (V.A.C.S. Art. 6519a (part).)
3121	3121	SECTION 3.04. Subchapter D, Chapter 81, Natural Resources
3122	3122	Code, is amended by adding Section 81.093 to read as follows:
3123	3123	Sec. 81.093. DEPOSITIONS. (a) In a matter pending for
3124	3124	hearing before the commission or a division of the commission, the
3125	3125	commission or an interested party may produce the testimony of a
3126	3126	witness by written or oral deposition instead of compelling the
3127	3127	personal attendance of the witness. For that purpose, the
3128	3128	commission may issue a commission or other process necessary to
3129	3129	take a deposition.
3130	3130	(b) The deposition shall be taken, to the extent applicable
3131	3131	and to the greatest extent possible, in accordance with the
3132	3132	provisions of the Texas Rules of Civil Procedure relating to
3133	3133	written and oral depositions. (V.A.C.S. Art. 6472a.)
3134	3134	ARTICLE 4. CONFORMING AMENDMENTS
3135	3135	SECTION 4.01. Section 101.0817, Government Code, is amended
3136	3136	to read as follows:
3137	3137	Sec. 101.0817. STATUTORY COUNTY COURT FEES AND COSTS UNDER
3138	3138	OTHER LAWS. The clerk of a statutory county court shall collect
3139	3139	a fee of $10 under Section 112.059, Transportation Code [Article
3140	3140	6327, Vernon's Texas Civil Statutes], for a county attorney in a
3141	3141	suit regarding a railroad company's failure to keep roadbed and
3142	3142	right-of-way in proper condition.
3143	3143	SECTION 4.02. Section 91.004(c), Transportation Code, is
3144	3144	amended to read as follows:
3145	3145	(c) Subsection (b) does not apply to money appropriated or
3146	3146	allocated:
3147	3147	(1) to a transit authority described by Chapter 451, a
3148	3148	transportation authority described by Chapter 452 or 460, or a
3149	3149	transit department described by Chapter 453; or
3150	3150	(2) for use by:
3151	3151	(A) a port authority or navigation district
3152	3152	created or operating under Section 52, Article III, or Section 59,
3153	3153	Article XVI, Texas Constitution; or
3154	3154	(B) a district created under Chapter 172 of this
3155	3155	code or Chapter 623, Acts of the 67th Legislature, Regular Session,
3156	3156	1981 (former Article 6550c, Vernon's Texas Civil Statutes).
3157	3157	SECTION 4.03. Sections 171.001(2), (4), and (5),
3158	3158	Transportation Code, are amended to read as follows:
3159	3159	(2) "Bonds" has the meaning assigned by Section
3160	3160	172.001 [Chapter 623, Acts of the 67th Legislature, Regular
3161	3161	Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes)].
3162	3162	(4) "Rail facilities" has the meaning assigned by
3163	3163	Section 172.001 [Chapter 623, Acts of the 67th Legislature, Regular
3164	3164	Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes)],
3165	3165	except that the term includes property and interests necessary or
3166	3166	convenient for the provision of a nonrural rail transportation
3167	3167	system.
3168	3168	(5) "Revenue" ["Revenues"] has the meaning assigned by
3169	3169	Section 172.001 [Chapter 623, Acts of the 67th Legislature, Regular
3170	3170	Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes)].
3171	3171	SECTION 4.04. Section 171.002, Transportation Code, is
3172	3172	amended to read as follows:
3173	3173	Sec. 171.002. APPLICABILITY OF RURAL RAIL TRANSPORTATION
3174	3174	DISTRICTS LAW. (a) Except as provided by this chapter, the
3175	3175	provisions of Chapter 172 other than Section 172.003 [Sections 2-9,
3176	3176	Chapter 623, Acts of the 67th Legislature, Regular Session, 1981
3177	3177	(Article 6550c, Vernon's Texas Civil Statutes),] apply to a
3178	3178	district as if the district were created under that chapter.
3179	3179	(b) For purposes of applying Chapter 172 [623, Acts of the
3180	3180	67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
3181	3181	Texas Civil Statutes),] to a district created under this chapter, a
3182	3182	reference to "rail facilities" in Chapter 172 [Chapter 623] means
3183	3183	"rail facilities" as defined by Section 171.001.
3184	3184	(c) For purposes of applying Chapter 172 [623, Acts of the
3185	3185	67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
3186	3186	Texas Civil Statutes),] to a district created under this chapter, a
3187	3187	reference in Chapter 172 [Chapter 623] to "eligible county" means a
3188	3188	county that created the district.
3189	3189	SECTION 4.05. Section 171.053, Transportation Code, is
3190	3190	amended to read as follows:
3191	3191	Sec. 171.053. INTERMUNICIPAL COMMUTER RAIL DISTRICT
3192	3192	POWERS. The governing bodies of the county or counties and of the
3193	3193	most populous municipality in the most populous county may provide
3194	3194	that the district may exercise the powers of an intermunicipal
3195	3195	commuter rail district created under Chapter 173 or former Article
3196	3196	6550c-1, Revised Statutes, by specifying in the concurrent order or
3197	3197	ordinance creating the district that those powers may be exercised
3198	3198	by the district.
3199	3199	SECTION 4.06. Section 171.154, Transportation Code, is
3200	3200	amended to read as follows:
3201	3201	Sec. 171.154. INTERMUNICIPAL COMMUTER RAIL POWERS. (a)
3202	3202	The district may exercise the powers of an intermunicipal commuter
3203	3203	rail district created under Chapter 173 or former Article 6550c-1,
3204	3204	Revised Statutes, only if the concurrent order or ordinance
3205	3205	creating the district specifies that the district may exercise
3206	3206	those powers. The order or ordinance may not grant the district
3207	3207	the power to impose a tax.
3208	3208	(b) In the event of a conflict between this chapter and a
3209	3209	power granted by Chapter 173 [Article 6550c-1, Revised Statutes],
3210	3210	this chapter controls. In the event of a conflict between Chapter
3211	3211	173 [Article 6550c-1] and Chapter 172 [Chapter 623, Acts of the 67th
3212	3212	Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
3213	3213	Civil Statutes)], Chapter 172 [Article 6550c] controls over Chapter
3214	3214	173 [Article 6550c-1].
3215	3215	SECTION 4.07. Section 171.251, Transportation Code, is
3216	3216	amended to read as follows:
3217	3217	Sec. 171.251. PLEDGE OF REVENUE [REVENUES]. A district may
3218	3218	secure and pledge revenue [revenues] derived from any source to
3219	3219	secure the payment of district bonds.
3220	3220	SECTION 4.08. Section 171.302, Transportation Code, is
3221	3221	amended to read as follows:
3222	3222	Sec. 171.302. DISSOLUTION. In addition to the dissolution
3223	3223	procedures provided by Chapter 172 [Chapter 623, Acts of the 67th
3224	3224	Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
3225	3225	Civil Statutes)], the board may dissolve a district if:
3226	3226	(1) all district liabilities have been paid or
3227	3227	adequate provision has been made for the payment of all
3228	3228	liabilities;
3229	3229	(2) the district is not a party to any lawsuits or
3230	3230	adequate provision has been made for the satisfaction of any
3231	3231	judgment or order that may be entered against the district in a
3232	3232	lawsuit to which the district is a party; and
3233	3233	(3) the district has commitments from other
3234	3234	governmental entities to assume jurisdiction of all district rail
3235	3235	facilities.
3236	3236	SECTION 4.09. Section 370.186(d), Transportation Code, is
3237	3237	amended to read as follows:
3238	3238	(d) An authority may not construct, maintain, or operate a
3239	3239	passenger rail facility within the boundaries of an intermunicipal
3240	3240	commuter rail district created under former Article 6550c-1,
3241	3241	Vernon's Texas Civil Statutes, as those boundaries existed on
3242	3242	September 1, 2005, unless the district and the authority enter into
3243	3243	a written agreement specifying the terms and conditions under which
3244	3244	the project will be undertaken.
3245	3245	SECTION 4.10. Section 452.056(d), Transportation Code, is
3246	3246	amended to read as follows:
3247	3247	(d) A private operator who contracts with an authority under
3248	3248	this chapter is not a public entity for purposes of any law of this
3249	3249	state except that an independent contractor of the authority that,
3250	3250	on or after June 14, 1989, performs a function of the authority or
3251	3251	an entity described by Section 452.0561 [under Title 112, Revised
3252	3252	Statutes,] that is created to provide transportation services is
3253	3253	liable for damages only to the extent that the authority or entity
3254	3254	would be liable if the authority or entity itself were performing
3255	3255	the function and only for a cause of action that accrues on or after
3256	3256	that date.
3257	3257	SECTION 4.11. Section 25.07(b), Tax Code, as amended by
3258	3258	Chapters 609, 885, and 1169, Acts of the 80th Legislature, Regular
3259	3259	Session, 2007, is reenacted and amended to read as follows:
3260	3260	(b) Except as provided by Sections 11.11(b) and (c), a
3261	3261	leasehold or other possessory interest in exempt property may not
3262	3262	be listed if:
3263	3263	(1) the property is permanent university fund land;
3264	3264	(2) the property is county public school fund
3265	3265	agricultural land;
3266	3266	(3) the property is a part of a public transportation
3267	3267	facility owned by a municipality or county and:
3268	3268	(A) is an airport passenger terminal building or
3269	3269	a building used primarily for maintenance of aircraft or other
3270	3270	aircraft services, for aircraft equipment storage, or for air
3271	3271	cargo;
3272	3272	(B) is an airport fueling system facility;
3273	3273	(C) is in a foreign-trade zone:
3274	3274	(i) that has been granted to a joint airport
3275	3275	board under Subchapter C, Chapter 681, Business & Commerce Code;
3276	3276	(ii) the area of which in the portion of the
3277	3277	zone located in the airport operated by the joint airport board does
3278	3278	not exceed 2,500 acres; and
3279	3279	(iii) that is established and operating
3280	3280	pursuant to federal law; or
3281	3281	(D)(i) is in a foreign trade zone established
3282	3282	pursuant to federal law after June 1, 1991, that [which] operates
3283	3283	pursuant to federal law;
3284	3284	(ii) is contiguous to or has access via a
3285	3285	taxiway to an airport located in two counties, one of which has a
3286	3286	population of 500,000 or more according to the federal decennial
3287	3287	census most recently preceding the establishment of the foreign
3288	3288	trade zone; and
3289	3289	(iii) is owned, directly or through a
3290	3290	corporation organized under the Development Corporation Act
3291	3291	(Subtitle C1, Title 12, Local Government Code), by the same
3292	3292	municipality that [which] owns the airport;
3293	3293	(4) the interest is in a part of:
3294	3294	(A) a park, market, fairground, or similar public
3295	3295	facility that is owned by a municipality; or
3296	3296	(B) a convention center, visitor center, sports
3297	3297	facility with permanent seating, concert hall, arena, or stadium
3298	3298	that is owned by a municipality as such leasehold or possessory
3299	3299	interest serves a governmental, municipal, or public purpose or
3300	3300	function when the facility is open to the public, regardless of
3301	3301	whether a fee is charged for admission;
3302	3302	(5) the interest involves only the right to use the
3303	3303	property for grazing or other agricultural purposes; [or]
3304	3304	(6) the property is:
3305	3305	(A) owned by a municipality, a public port, or a
3306	3306	navigation district created or operating under Section 59, Article
3307	3307	XVI, Texas Constitution, or under a statute enacted under Section
3308	3308	59, Article XVI, Texas Constitution; and
3309	3309	(B) used as an aid or facility incidental to or
3310	3310	useful in the operation or development of a port or waterway or in
3311	3311	aid of navigation-related commerce; or
3312	3312	(7) [(8)] the property is part of a rail facility
3313	3313	owned by a rural rail transportation district [created or]
3314	3314	operating under Chapter 172, Transportation Code [623, Acts of the
3315	3315	67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
3316	3316	Texas Civil Statutes)].
3317	3317	ARTICLE 5. REPEALER
3318	3318	SECTION 5.01. (a) The following provisions are repealed:
3319	3319	(1) Title 112, Revised Statutes;
3320	3320	(2) Article 3922, Revised Statutes;
3321	3321	(3) Chapter 480 (H.B. 1656), Acts of the 73rd
3322	3322	Legislature, Regular Session, 1993 (Article 6370c, Vernon's Texas
3323	3323	Civil Statutes);
3324	3324	(4) Section 1, Chapter 140 (H.B. 525), Acts of the 40th
3325	3325	Legislature, Regular Session, 1927 (Article 6447a, Vernon's Texas
3326	3326	Civil Statutes);
3327	3327	(5) Section 1, Chapter 43 (H.B. 105), Acts of the 41st
3328	3328	Legislature, 5th Called Session, 1930 (Article 6472a, Vernon's
3329	3329	Texas Civil Statutes);
3330	3330	(6) Section 1, Chapter 262 (S.B. 125), Acts of the 41st
3331	3331	Legislature, Regular Session, 1929 (Article 6519a, Vernon's Texas
3332	3332	Civil Statutes);
3333	3333	(7) Section 8, Chapter 65 (S.B. 389), Acts of the 67th
3334	3334	Legislature, Regular Session, 1981 (Article 6519c, Vernon's Texas
3335	3335	Civil Statutes); and
3336	3336	(8) Chapter 623 (H.B. 1822), Acts of the 67th
3337	3337	Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
3338	3338	Civil Statutes).
3339	3339	(b) The repeal of Title 112, Revised Statutes, by this Act
3340	3340	does not affect the validity of statutes that were not added to
3341	3341	Title 112, Revised Statutes, by the legislature, but were
3342	3342	unofficially printed in that title by any publisher of the Texas
3343	3343	statutes, except as those articles are specifically repealed in
3344	3344	Subsection (a) of this section.
3345	3345	ARTICLE 6. LEGISLATIVE INTENT; EFFECTIVE DATE
3346	3346	SECTION 6.01. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
3347	3347	This Act is enacted under Section 43, Article III, Texas
3348	3348	Constitution. No substantive change in law is intended by this Act.
3349	3349	SECTION 6.02. EFFECTIVE DATE. This Act takes effect April
3350	3350	1, 2011.