Texas 2009 - 81st Regular

Texas House Bill HB3650 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Merritt H.B. No. 3650
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the creation, administration, powers, duties,
7	7	operations, and financing of a border region high-speed rail
8	8	authority for the Texas-Louisiana and the Texas-Mexico border
9	9	regions; granting the power to issue bonds; imposing a tax;
10	10	granting the power of eminent domain.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 13, Title 112, Revised Statutes, is
13	13	amended by adding Article 6550c-4 to read as follows:
14	14	Art. 6550c-4. BORDER REGION HIGH-SPEED RAIL AUTHORITIES
15	15	Sec. 1. DEFINITIONS. In this article:
16	16	(1) "Authority" means a border region high-speed rail
17	17	authority created under this article.
18	18	(2) "Authority property" means all property an
19	19	authority owns or leases under a long-term lease.
20	20	(3) "Border region" means the Texas-Louisiana border
21	21	region or the Texas-Mexico border region, as defined by Section
22	22	2056.002, Government Code.
23	23	(4) "Commission" means the Texas Transportation
24	24	Commission.
25	25	(5) "Department" means the Texas Department of
26	26	Transportation.
27	27	(6) "High-speed rail" means the rail technology that
28	28	permits the operation of rolling stock between scheduled stops at
29	29	speeds greater than 70 miles per hour.
30	30	(7) "High-speed rail facility" means any property
31	31	necessary for the transportation of passengers and baggage between
32	32	points in a border region by high-speed rail. The term includes
33	33	rolling stock, locomotives, stations, parking areas, and rail
34	34	lines.
35	35	(8) "System" means all of the high-speed rail and
36	36	intermodal facilities leased or owned by or operated on behalf of an
37	37	authority.
38	38	Sec. 2. GOVERNING BODY. (a) The governing body of an
39	39	authority is a board of directors consisting of representatives of
40	40	each county in the border region for which the authority is created.
41	41	The board is composed of 11 members appointed by the governor.
42	42	(b) The members of the board shall elect one member as
43	43	presiding officer. The presiding officer may select another member
44	44	to preside in the absence of the presiding officer.
45	45	(c) The presiding officer shall call at least one meeting of
46	46	the board each year and may call other meetings as the presiding
47	47	officer determines are appropriate.
48	48	(d) A member of the board is not entitled to compensation
49	49	for serving as a member but is entitled to reimbursement for
50	50	reasonable expenses incurred while serving as a member.
51	51	(e) The board shall adopt rules for its proceedings and
52	52	appoint an executive committee. The board may employ and compensate
53	53	persons to carry out the powers and duties of the authority.
54	54	(f) Chapter 171, Local Government Code, applies to a member
55	55	of the board.
56	56	Sec. 3. POWERS AND DUTIES OF AUTHORITY. (a) An authority is
57	57	a public body and a political subdivision of the state exercising
58	58	public and essential governmental functions and has all the powers
59	59	necessary or convenient to carry out the purposes of this article.
60	60	An authority, in the exercise of powers under this article, is
61	61	performing only governmental functions and is a governmental unit
62	62	within the meaning of Chapter 101, Civil Practice and Remedies
63	63	Code.
64	64	(b) An authority is subject every 12th year to review under
65	65	Chapter 325, Government Code (Texas Sunset Act).
66	66	(c) An authority may sue and be sued in all courts, may
67	67	institute and prosecute suits without giving security for costs,
68	68	and may appeal from a judgment without giving a supersedeas or cost
69	69	bond. An action at law or in equity against an authority must be
70	70	brought in the county in which a principal office of the authority
71	71	is located, except that in an eminent domain proceeding involving
72	72	an interest in land, suit must be brought in the county in which the
73	73	land is located.
74	74	(d) An authority may acquire by grant, purchase, gift,
75	75	devise, lease, or otherwise and may hold, use, sell, lease, or
76	76	dispose of real and personal property, licenses, patents, rights,
77	77	and interests necessary, convenient, or useful for the full
78	78	exercise of its powers.
79	79	(e) An authority may acquire, construct, develop, own,
80	80	operate, maintain, and improve intermodal and high-speed rail
81	81	facilities to connect political subdivisions in the applicable
82	82	border region. For this purpose and with the consent of a
83	83	municipality, county, or other political subdivision, an authority
84	84	may use streets, alleys, roads, highways, and other public ways of
85	85	the municipality, county, or other political subdivision and may
86	86	relocate, raise, reroute, change the grade of, or alter, at the
87	87	expense of the authority, the construction of any street, alley,
88	88	highway, road, railroad, electric lines and facilities, telegraph
89	89	and telephone properties and facilities, pipelines and facilities,
90	90	conduits and facilities, and other properties, whether publicly or
91	91	privately owned, as necessary or useful in the construction,
92	92	reconstruction, repair, maintenance, operation, and improvement of
93	93	the system. An authority may not use or alter a road or highway that
94	94	is part of the state highway system without the permission of the
95	95	commission or a railroad without permission of the railroad. An
96	96	authority may acquire by purchase any interest in real property for
97	97	the acquisition, construction, operation, or improvement of a
98	98	high-speed rail facility on terms and at a price as agreed to
99	99	between the authority and the owner. The governing body of a
100	100	municipality, county, other political subdivision, or public
101	101	agency may convey title or rights and easements to any property
102	102	needed by an authority to effect its purposes in connection with the
103	103	acquisition, construction, operation, or improvement of the
104	104	system.
105	105	(f) An authority has the right of eminent domain to acquire
106	106	real property in fee simple or an interest in real property less
107	107	than fee simple in, on, under, or above land, including an easement,
108	108	right-of-way, or right of use of airspace or subsurface space. The
109	109	power of eminent domain under this section does not apply to land
110	110	under the jurisdiction of the department or a rail line owned by a
111	111	common carrier or municipality. An authority shall, to the extent
112	112	possible, use existing rail or intermodal transportation corridors
113	113	for the alignment of its system. A proceeding for the exercise of
114	114	the power of eminent domain is begun by the adoption by the board of
115	115	a resolution declaring the public necessity for the acquisition by
116	116	an authority of the property or interest described in the
117	117	resolution and that the acquisition is necessary and proper for the
118	118	construction, extension, improvement, or development of high-speed
119	119	rail facilities and is in the public interest. The resolution of an
120	120	authority is conclusive evidence of the public necessity of the
121	121	proposed acquisition and that the real or personal property or
122	122	interest in property is necessary for public use.
123	123	(g) With the consent of the property owner, instead of
124	124	paying for real property with a single fixed payment, an authority
125	125	may pay the owner in the form of:
126	126	(1) an intangible legal right to receive a percentage
127	127	of identified fees related to the applicable segment of the system;
128	128	or
129	129	(2) an exclusive or nonexclusive right to use or
130	130	operate a part of the system.
131	131	(h) An authority may make agreements with a public utility,
132	132	private utility, communication system, common carrier, state
133	133	agency, or transportation system for the joint use of facilities,
134	134	installations, or properties inside or outside the border region
135	135	and establish through routes and joint fares.
136	136	(i) An authority may adopt rules to govern the operation of
137	137	the authority, its employees, the system, service provided by the
138	138	authority, and any other necessary matter concerning its purposes,
139	139	including rules relating to health, safety, alcohol or beverage
140	140	service, food service, and telephone and utility services, to
141	141	protect the health, safety, and general welfare of residents of the
142	142	border region and people who use the authority's services.
143	143	(j) An authority may enter into a joint ownership agreement
144	144	with any person.
145	145	(k) An authority shall establish and maintain rates or other
146	146	compensation for the use of the facilities of the system acquired,
147	147	constructed, operated, regulated, or maintained by the authority
148	148	that is reasonable and nondiscriminatory and, together with grants
149	149	received by the authority, is sufficient to produce revenues
150	150	adequate:
151	151	(1) to pay all expenses necessary for the operation
152	152	and maintenance of the properties and facilities of the authority;
153	153	(2) to pay the interest on and principal of bonds
154	154	issued by the authority and payable in whole or in part from the
155	155	revenues, as they become due and payable; and
156	156	(3) to comply with the terms of an agreement made with
157	157	the holders of bonds or with any person in their behalf.
158	158	(l) An authority may make contracts, leases, and agreements
159	159	with, and accept grants and loans from, the United States, this
160	160	state, agencies and political subdivisions of this state or another
161	161	state of the United States, the United Mexican States, or a state of
162	162	the United Mexican States, and other persons and entities and may
163	163	perform any act necessary for the full exercise of the powers vested
164	164	in it. The commission may enter into an interlocal agreement with an
165	165	authority under which the authority may exercise a power or duty of
166	166	the commission for the development and efficient operation of an
167	167	intermodal corridor in the border region. An authority may acquire
168	168	rolling stock or other property under conditional sales contracts,
169	169	leases, equipment trust certificates, or any other form of contract
170	170	or trust agreement. A revenue bond indenture may limit the exercise
171	171	of the powers granted by this section, and a limit applies as long
172	172	as the revenue bonds issued under the indenture are outstanding and
173	173	unpaid.
174	174	(m) An authority by resolution may adopt rules governing the
175	175	use, operation, and maintenance of the system and may determine or
176	176	change a routing as the board considers advisable.
177	177	(n) An authority may lease all or part of the high-speed
178	178	rail facilities to, or contract for the use or operation of all or
179	179	part of the high-speed rail facilities by, an operator. An
180	180	authority shall encourage to the maximum extent practicable the
181	181	participation of private enterprise in the operation of high-speed
182	182	rail facilities. The term of an operating contract under this
183	183	subsection may not exceed 20 years.
184	184	(o) An authority may contract with a county or other
185	185	political subdivision of this state for the authority to provide
186	186	high-speed rail transportation services to an area outside the
187	187	border region on the terms and conditions agreed to by the parties.
188	188	(p) An authority may purchase an additional insured
189	189	provision to any liability insurance contract.
190	190	(q) Before beginning the operation of high-speed rail
191	191	facilities, the board shall adopt an annual operating budget
192	192	specifying the anticipated revenues and expenses of the authority
193	193	for the remainder of the fiscal year. Each year the board shall
194	194	adopt an operating budget for the authority. The fiscal year of an
195	195	authority ends September 30 unless changed by the board. The board
196	196	shall hold a public hearing before adopting a budget other than the
197	197	initial budget. Notice of each hearing must be published at least
198	198	seven days before the date of the hearing in a newspaper of general
199	199	circulation in each county in the applicable border region. A
200	200	budget may be amended at any time if notice of the proposed
201	201	amendment is given in the notice of the meeting at which the
202	202	amendment will be considered. An expenditure that is not budgeted
203	203	may not be made.
204	204	(r) An authority is eligible to participate in the Texas
205	205	County and District Retirement System.
206	206	(s) The board shall by resolution name one or more banks for
207	207	the deposit of authority funds. Authority funds are public funds
208	208	and may be invested in securities permitted by Chapter 2256,
209	209	Government Code. To the extent funds of an authority are not insured
210	210	by the Federal Deposit Insurance Corporation or its successor, they
211	211	shall be collateralized in the manner provided for county funds.
212	212	(t) To provide tax benefits to another party that are
213	213	available with respect to property under the laws of a foreign
214	214	country or to encourage private investment with a transportation
215	215	authority in the United States, and notwithstanding any other
216	216	provision of this chapter, an authority may enter into and execute,
217	217	as it considers appropriate, contracts, agreements, notes,
218	218	security agreements, conveyances, bills of sale, deeds, leases as
219	219	lessee or lessor, and currency hedges, swap transactions, or
220	220	agreements relating to foreign and domestic currency. The
221	221	agreements or instruments may have the terms, maturities, duration,
222	222	provisions as to governing law, indemnities, and other provisions
223	223	that are approved by the board. In connection with any transaction
224	224	authorized by this subsection, the authority shall deposit in
225	225	trust, escrow, or similar arrangement cash or lawful investments or
226	226	securities, or shall enter into one or more payment agreements,
227	227	financial guarantees, or insurance contracts with counterparties
228	228	having either a corporate credit or debt rating in any form, a
229	229	claims-paying ability, or a rating for financial strength of "AA"
230	230	or better by Moody's Investors Service, Inc., or by Standard &
231	231	Poor's Corporation or "A-" or better by BEST's rating system that,
232	232	by their terms, including interest to be earned on any cash or
233	233	securities, are sufficient in amount to pay when due all amounts
234	234	required to be paid by the authority as rent over the full term of
235	235	the transaction plus any optional purchase price due under the
236	236	transaction. A certification in advance by an independent financial
237	237	expert, banker, or certified public accountant, who is not an
238	238	employee of the authority, certifying compliance with this
239	239	requirement constitutes conclusive evidence of compliance.
240	240	Property sold, acquired, or otherwise transferred under this
241	241	subsection is considered for all purposes to be property owned and
242	242	held by the authority and used for public purposes.
243	243	Sec. 4. BONDS AND NOTES. (a) An authority may issue revenue
244	244	bonds and notes in amounts the board considers necessary or
245	245	appropriate for the acquisition, purchase, construction,
246	246	reconstruction, repair, equipping, improvement, or extension of
247	247	the authority's high-speed rail facilities. A bond or note is fully
248	248	negotiable and may be made redeemable before maturity, at the
249	249	option of the authority and at the price and under the terms the
250	250	board determines in the resolution authorizing the bond or note and
251	251	may be sold at public or private sale, as the board determines.
252	252	(b) An authority shall submit all bonds and notes and the
253	253	record of proceedings relating to their issuance to the attorney
254	254	general for examination before delivery. If the attorney general
255	255	determines that they have been issued in accordance with the
256	256	constitution and this article and that they will be binding
257	257	obligations of the authority, the attorney general shall approve
258	258	them, and the comptroller shall register them. A bond or note issued
259	259	under this article is incontestable after approval, registration,
260	260	and sale and delivery of the bond or note to the purchaser.
261	261	(c) To secure the payment of the bond or note, an authority
262	262	may encumber and pledge all or any part of the revenues of its
263	263	high-speed rail facilities, may mortgage and encumber all or part
264	264	of the property of the high-speed rail facilities and any thing
265	265	pertaining to them that is acquired or to be acquired, and may
266	266	prescribe the terms and provisions of the bond or note in any manner
267	267	not inconsistent with this article. If not prohibited by the
268	268	resolution or indenture relating to outstanding bonds or notes, an
269	269	authority may encumber separately any item of real or personal
270	270	property.
271	271	(d) A bond or note is a legal and authorized investment for
272	272	banks, trust companies, savings and loan associations, and
273	273	insurance companies. The bond or note is eligible to secure the
274	274	deposit of public funds of this state or a municipality, county,
275	275	school district, or other political corporation or subdivision of
276	276	this state. The bond or note is lawful and sufficient security for
277	277	the deposits to the extent of the principal amount or market value
278	278	of the bond or note, whichever is less.
279	279	Sec. 5. COMPETITIVE BIDS. A contract in the amount of more
280	280	than $15,000 for the construction of improvements or the purchase
281	281	of material, machinery, equipment, supplies, or any other property
282	282	other than real property may be let only on competitive bids after
283	283	notice published, at least 15 days before the date set for receiving
284	284	bids, in a newspaper of general circulation in each county in the
285	285	applicable border region. The board may adopt rules governing the
286	286	taking of bids and the awarding of contracts. This section does not
287	287	apply to:
288	288	(1) personal or professional services;
289	289	(2) the acquisition of an existing rail transportation
290	290	system; or
291	291	(3) a contract with a common carrier to construct
292	292	lines or to operate high-speed rail service on lines owned in whole
293	293	or in part by the carrier.
294	294	Sec. 6. EXEMPTION FROM TAXES. The property, material
295	295	purchases, revenues, and income of an authority and the interest on
296	296	a bond or note issued by an authority are exempt from all taxes
297	297	imposed by this state or a political subdivision of this state.
298	298	Sec. 7. SALES AND USE TAX. (a) A sales and use tax is imposed
299	299	on items sold on authority property. The sales and use tax shall be
300	300	imposed at the rate of the highest combination of local sales and
301	301	use taxes imposed at the time of the authority's creation in any
302	302	local governmental jurisdiction in the applicable border region.
303	303	The comptroller shall remit to the authority the local sales and use
304	304	tax collected on the authority's property. All other local sales
305	305	and use taxes that would otherwise be imposed on authority property
306	306	are abolished by the imposition of this tax.
307	307	(b) The comptroller shall administer, collect, and enforce
308	308	a tax imposed under this article. Chapter 321, Tax Code, governs the
309	309	computation, administration, governance, and use of the tax except
310	310	as inconsistent with this article.
311	311	(c) An authority shall notify the comptroller in writing by
312	312	registered or certified mail of the authority's creation and of its
313	313	intent to impose the sales and use tax under this article. The
314	314	authority shall provide to the comptroller all information required
315	315	to implement the tax, including:
316	316	(1) an adequate map showing the property boundaries of
317	317	the authority; and
318	318	(2) a certified copy of the resolution of the
319	319	authority board adopting the tax.
320	320	(d) Not later than the 30th day after the date the
321	321	comptroller receives the notice, map, and other information, the
322	322	comptroller shall inform the authority of whether the comptroller
323	323	is prepared to administer the tax.
324	324	(e) At the same time an authority notifies the comptroller
325	325	under Subsection (c) of this section, the authority shall notify
326	326	each affected local governmental unit of the authority's creation
327	327	and provide each with an adequate map showing the property
328	328	boundaries of the authority.
329	329	(f) Not later than the 30th day after the date an authority
330	330	adds territory to the authority, the authority shall notify the
331	331	comptroller and each affected local governmental unit of the
332	332	addition. The authority must include with each notification an
333	333	adequate map showing the new boundaries of the authority and the
334	334	date the additional territory was added. Not later than the 30th day
335	335	after the date the comptroller receives the notice under this
336	336	subsection, the comptroller shall inform the authority of whether
337	337	the comptroller is prepared to administer the tax in the additional
338	338	territory.
339	339	(g) A tax imposed under this section or the abolition of a
340	340	tax under Subsection (a) of this section takes effect on the first
341	341	day of the first complete calendar quarter that occurs after the
342	342	expiration of the first complete calendar quarter that occurs after
343	343	the date the comptroller receives a notice of the action as required
344	344	by this section.
345	345	SECTION 2. This Act takes effect September 1, 2009.