S.B. No. 1263 AN ACT relating to certain mass transit entities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subsections (e) and (f), Section 451.0611, Transportation Code, are amended to read as follows: (e) The notice required by Subsection (d)(2) may be included in a citation issued to the person under Article 14.06, Code of Criminal Procedure, or under Section 451.0612, in connection with an offense relating to the nonpayment of the appropriate fare or charge for the use of the public transportation system. (f) An offense under Subsection (d) is: (1) a Class C misdemeanor; and (2) not a crime of moral turpitude. SECTION 2. Subchapter B, Chapter 451, Transportation Code, is amended by adding Section 451.0612 to read as follows: Sec. 451.0612. FARE ENFORCEMENT OFFICERS IN CERTAIN AUTHORITIES. (a) An authority confirmed before July 1, 1985, in which the principal municipality has a population of less than 750,000 may employ persons to serve as fare enforcement officers to enforce the payment of fares for use of the public transportation system by: (1) requesting and inspecting evidence showing payment of the appropriate fare from a person using the public transportation system; and (2) issuing a citation to a person described by Section 451.0611(d)(1). (b) Before commencing duties as a fare enforcement officer, a person must complete a 40-hour training course approved by the authority that is appropriate to the duties required of a fare enforcement officer. (c) While performing duties, a fare enforcement officer shall: (1) wear a distinctive uniform that identifies the officer as a fare enforcement officer; and (2) work under the direction of the authority's manager of safety and security. (d) A fare enforcement officer may: (1) request evidence showing payment of the appropriate fare from passengers of the public transportation system; (2) request personal identification from a passenger who does not produce evidence showing payment of the appropriate fare on request by the officer; (3) request that a passenger leave the public transportation system if the passenger does not possess evidence of payment of the appropriate fare; and (4) file a complaint in the appropriate court that charges the person with an offense under Section 451.0611(d). (e) A fare enforcement officer may not carry a weapon while performing duties under this section. (f) A fare enforcement officer is not a peace officer and has no authority to enforce a criminal law, other than the authority possessed by any other person who is not a peace officer. SECTION 3. Subsection (c), Section 451.108, Transportation Code, is amended to read as follows: (c) A peace officer commissioned under this section, except as provided by Subsections (d) and (e), or a peace officer contracted for employment by an authority confirmed before July 1, 1985, in which the principal municipality has a population of less than 750,000, may: (1) make an arrest in any county in which the transit authority system is located as necessary to prevent or abate the commission of an offense against the law of this state or a political subdivision of this state if the offense or threatened offense occurs on or involves the transit authority system; (2) make an arrest for an offense involving injury or detriment to the transit authority system; (3) enforce traffic laws and investigate traffic accidents that involve or occur in the transit authority system; and (4) provide emergency and public safety services to the transit authority system or users of the transit authority system. SECTION 4. Section 451.061, Transportation Code, is amended by amending Subsection (d) and adding Subsection (d-1) to read as follows: (d) Except as provided by Subsection (d-1), the [The] fares, tolls, charges, rents, and other compensation established by an authority in which the principal municipality has a population of less than 1.2 million may not take effect until approved by a majority vote of a committee composed of: (1) five members of the governing body of the principal municipality, selected by that governing body; (2) three members of the commissioners court of the county having the largest portion of the incorporated territory of the principal municipality, selected by that commissioners court; and (3) three mayors of municipalities, other than the principal municipality, located in the authority, selected by: (A) the mayors of all the municipalities, except the principal municipality, located in the authority; or (B) the mayor of the most populous municipality, other than the principal municipality, in the case of an authority in which the principal municipality has a population of less than 300,000. (d-1) The establishment of or a change to fares, tolls, charges, rents, and other compensation by an authority confirmed before July 1, 1985, in which the principal municipality has a population of less than 750,000, takes effect immediately on approval by a majority vote of the board, except that the establishment of or a change to a single-ride base fare takes effect on the 60th day after the date the board approves the fare or change to the fare, unless the policy board of the metropolitan planning organization that serves the area of the authority disapproves the fare or change to the fare by a majority vote. SECTION 5. Section 451.071, Transportation Code, is amended by adding Subsections (g) and (h) to read as follows: (g) This section does not require the authority to hold a referendum on a proposal to enter into a contract or interlocal agreement to build, operate, or maintain a fixed rail transit system for another entity. Notwithstanding Subsection (d), the authority may spend funds of the authority to enter into a contract and operate under that contract to build, operate, or maintain a fixed rail transit system if the other entity will reimburse the authority for the funds. (h) A referendum held by a political subdivision, the authority, or an entity other than the authority at which funding is approved for a fixed rail transit system is considered to meet the requirements of Subsections (d) and (e) and Section 451.3625 if the notice for the election called by the political subdivision, the authority, or other entity contains the description required by Subsection (c). The referendum may allow for financial participation of more than one political subdivision or entity. The authority may only spend funds of the authority if the referendum authorizes that expenditure. SECTION 6. Subchapter J, Chapter 451, Transportation Code, is amended by adding Sections 451.458, 451.459, and 451.460 to read as follows: Sec. 451.458. INTERNAL AUDITOR. (a) This section applies only to an authority confirmed before July 1, 1985, in which the principal municipality has a population of less than 750,000. (b) The board shall appoint a qualified individual to perform internal auditing services for a term of five years. The board may remove the auditor only on the affirmative vote of at least three-fourths of the members of the board. (c) The auditor shall report directly to the board. Sec. 451.459. SUNSET REVIEW. (a) An authority confirmed before July 1, 1985, in which the principal municipality has a population of less than 750,000 is subject to review under Chapter 325, Government Code (Texas Sunset Act), as if it were a state agency but may not be abolished under that chapter. The review shall be conducted as if the authority were scheduled to be abolished September 1, 2011. In addition, another review shall be conducted as if the authority were scheduled to be abolished September 1, 2017. The reviews conducted under this section must include an assessment of the governance, management, and operating structure of the authority and the authority's compliance with the duties and requirements placed on it by the legislature. (b) The authority shall pay the cost incurred by the Sunset Advisory Commission in performing a review of the authority under this section. The Sunset Advisory Commission shall determine the cost, and the authority shall pay the amount promptly on receipt of a statement from the Sunset Advisory Commission detailing the cost. Sec. 451.460. ANNUAL REPORT. (a) This section applies only to an authority confirmed before July 1, 1985, in which the principal municipality has a population of less than 750,000. (b) The authority shall provide an annual report to each governing body of a municipality or county in the authority regarding the status of any financial obligation of the authority to the municipality or county. SECTION 7. Section 451.5021, Transportation Code, is amended by amending Subsections (a), (b), (d), and (e) and adding Subsections (b-1), (d-1), (d-2), and (d-3) to read as follows: (a) This section applies only to the board of an authority created before July 1, 1985, in which the principal municipality has a population of less than 750,000 [in which each member of the governing body of the principal municipality is elected at large]. (b) Members of the [The] board [is composed of seven members who] are appointed as follows: (1) one member, who is an elected official, [two members representing the general public] appointed by the metropolitan planning organization designated by the governor that serves the area of the authority; (2) two members, one who must be and one who may be an elected official, [two members] appointed by the governing body of the principal municipality; (3) one member appointed by the commissioners court of the principal county; (4) one member appointed by the commissioners court of the county, excluding the principal county, that has the largest population of the counties in the authority [a panel composed of the mayors of all the municipalities in the authority located in the principal county of the authority, excluding the mayor of the principal municipality]; [and] (5) one member, who is an elected official, appointed by a panel composed of[: [(A)] the mayors of all municipalities in the authority [located outside the principal county of the authority], excluding the mayor of the principal municipality; (6) one member, who has at least 10 years of experience as a financial or accounting professional, appointed by the metropolitan planning organization that serves the area in which the authority is located; (7) one member, who has at least 10 years of experience in an executive-level position in a public or private organization, including a governmental entity, appointed by the metropolitan planning organization that serves the area in which the authority is located; and (8) two members appointed by the metropolitan planning organization that serves the area in which the authority is located, if according to the most recent federal decennial census more than 35 percent of the population in the territory of the authority resides outside the principal municipality [(B) the county judges of the counties having unincorporated area in the authority, excluding the county judge of the principal county; and [(C) the presiding officer of each municipal utility district that: [(i) has a majority of its territory located outside the principal county; and [(ii) is located wholly or partly in the authority]. (b-1) Notwithstanding Section 451.505, members of the board serve staggered three-year terms, with the terms of two or three members, as applicable, expiring June 1 of each year. (d) A person appointed under Subsection (b)(1), (2) [(b)(2), (3), (4)], or (5), except as provided by Subsection (b)(2): (1) must be a member of the governing body: (A) of the political subdivision that is entitled to make the appointment; or (B) over which a member of the panel entitled to make an appointment presides; (2) vacates the office of board member if the person ceases to be a member of the governing body described by Subdivision (1); (3) serves on the board as an additional duty of the office held on the governing body described by Subdivision (1); and (4) is not entitled to compensation for serving as a member of the board. (d-1) At least two members appointed under Subsections (b)(1), (6), and (7) must be qualified voters residing in the principal municipality. (d-2) A person appointed under Subsection (b)(3) must: (1) have the person's principal place of occupation or employment in the portion of the authority's service area that is located in the principal county; or (2) be a qualified voter of the principal county. (d-3) A person appointed under Subsection (b)(4) must: (1) have the person's principal place of occupation or employment in the portion of the authority's service area that is located in the county, other than the principal county, that has the largest population of the counties in the authority; or (2) be a qualified voter of the county, other than the principal county, that has the largest population of the counties in the authority. (e) A panel appointing a member under Subsection (b)(5) [this section] operates in the manner prescribed by Section 451.503. SECTION 8. Subsection (b), Section 451.505, Transportation Code, is amended to read as follows: (b) The terms of members of a board are staggered if the authority was[: [(1)] created before 1980 and has a principal municipality with a population of less than 1.2 million[; or [(2) confirmed before July 1, 1985, and has a principal municipality with a population of less than 750,000]. SECTION 9. Subsections (g) and (h), Section 451.5021, Transportation Code, are repealed. SECTION 10. (a) This section applies only to a member of the board of a metropolitan rapid transit authority created before July 1, 1985, in which the principal municipality has a population of 750,000 or less. (b) The term of a board member that is scheduled, under the law as it existed before the effective date of this Act, to expire: (1) after the effective date of this Act but before January 1, 2010, is extended to December 31, 2009; and (2) on or after January 1, 2010, expires on the date the term was scheduled to expire under this law as it existed before the effective date of this Act. (c) As soon as practicable on or after the effective date of this Act, but not later than December 31, 2009, the persons and entities specified in Section 451.5021, Transportation Code, as amended by this Act, shall appoint the members of the board in compliance with that section, as amended, to serve terms that begin, as applicable and as subject to Subsection (d) of this section: (1) January 1, 2010; or (2) the day after a term expires under Subdivision (2), Subsection (b) of this section. (d) A vacancy created because of the expiration of a term under Subsection (b) of this section is filled in the following manner: (1) for a member appointed under Subdivision (1), Subsection (b), Section 451.5021, Transportation Code, under the law as it existed before the effective date of this Act: (A) one vacancy shall be filled by the appointing person or entity specified by Subdivision (6), Subsection (b), Section 451.5021, Transportation Code, as added by this Act; and (B) one vacancy shall be filled by the appointing person or entity specified by Subdivision (7), Subsection (b), Section 451.5021, Transportation Code, as added by this Act; (2) for a member appointed under Subdivision (2), Subsection (b), Section 451.5021, Transportation Code, under the law as it existed before the effective date of this Act: (A) one vacancy shall be filled by the appointing person or entity specified by Subdivision (1), Subsection (b), Section 451.5021, Transportation Code, as amended by this Act; and (B) one vacancy shall be filled by the appointing person or entity specified by Subdivision (2), Subsection (b), Section 451.5021, Transportation Code, as amended by this Act; (3) for a member appointed under Subdivision (3), Subsection (b), Section 451.5021, Transportation Code, under the law as it existed before the effective date of this Act, the vacancy shall be filled by the appointing person or entity specified by Subdivision (3), Subsection (b), Section 451.5021, Transportation Code, as amended by this Act; (4) for a member appointed under Subdivision (4), Subsection (b), Section 451.5021, Transportation Code, under the law as it existed before the effective date of this Act, the vacancy shall be filled by the appointing person or entity specified by Subdivision (5), Subsection (b), Section 451.5021, Transportation Code, as amended by this Act; and (5) for a member appointed under Subdivision (5), Subsection (b), Section 451.5021, Transportation Code, under the law as it existed before the effective date of this Act, the vacancy shall be filled by the appointing person or entity specified by Subdivision (4), Subsection (b), Section 451.5021, Transportation Code, as amended by this Act. (e) The members of the board appointed under Subsection (c) of this section shall draw lots to determine which terms of two members expire June 1, 2011, which terms of three members expire June 1, 2012, and which terms of three members expire June 1, 2013. (f) As soon as practicable after the metropolitan planning organization specified by Subdivision (8), Subsection (b), Section 451.5021, Transportation Code, as added by this Act, determines that that subdivision applies to the metropolitan rapid transit authority, the metropolitan planning organization shall appoint: (1) one member of the board of the authority for a term to expire June 1, 2011, or, if that date has passed, the following six-year anniversary of that date; and (2) one member of the board of the authority for a term to expire June 1, 2013, or, if that date has passed, the following six-year anniversary of that date. SECTION 11. This Act takes effect September 1, 2009. ______________________________ ______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1263 passed the Senate on May 18, 2009, by the following vote: Yeas 31, Nays 0; May 30, 2009, Senate refused to concur in House amendment and requested appointment of Conference Committee; May 30, 2009, House granted request of the Senate; May 31, 2009, Senate adopted Conference Committee Report by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1263 passed the House, with amendment, on May 27, 2009, by the following vote: Yeas 147, Nays 1, one present not voting; May 30, 2009, House granted request of the Senate for appointment of Conference Committee; May 31, 2009, House adopted Conference Committee Report by the following vote: Yeas 143, Nays 0, one present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor