Texas 2009 - 81st Regular

Texas Senate Bill SB1540 Compare Versions

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1	1	S.B. No. 1540
2	2
3	3
4	4	AN ACT
5	5	relating to a nonsubstantive revision of statutes relating to
6	6	railroads; including conforming amendments.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	ARTICLE 1. GENERAL MATTERS
9	9	SECTION 1.01. PURPOSE OF ACT. (a) This Act is enacted as a
10	10	part of the state's continuing statutory revision program under
11	11	Section 323.007, Government Code. The program contemplates a
12	12	topic-by-topic revision of the state's general and permanent
13	13	statute law without substantive change.
14	14	(b) Consistent with the objectives of the statutory
15	15	revision program, the purpose of this Act is to make the law
16	16	encompassed by this Act more accessible and understandable by:
17	17	(1) rearranging the statutes into a more logical
18	18	order;
19	19	(2) employing a format and numbering system designed
20	20	to facilitate citation of the law and to accommodate future
21	21	expansion of the law;
22	22	(3) eliminating repealed, duplicative, expired, and
23	23	executed provisions; and
24	24	(4) restating the law in modern American English to
25	25	the greatest extent possible.
26	26	ARTICLE 2. TRANSFER OF PROVISIONS FROM TITLE 112, REVISED
27	27	STATUTES, TO TRANSPORTATION CODE
28	28	SECTION 2.01. Subtitle A, Title 5, Transportation Code, is
29	29	redesignated as Subtitle B, Title 5, Transportation Code, and the
30	30	subtitle heading is amended to read as follows:
31	31	SUBTITLE B [A]. STATE RAIL FACILITIES [TEXAS DEPARTMENT OF
32	32	TRANSPORTATION]
33	33	SECTION 2.02. Title 5, Transportation Code, is amended by
34	34	adding a new Subtitle A to read as follows:
35	35	SUBTITLE A. GENERAL PROVISIONS
36	36	CHAPTER 81. GENERAL PROVISIONS
37	37	Sec. 81.001. DEFINITIONS
38	38	Sec. 81.002. APPLICABILITY
39	39	SUBTITLE A. GENERAL PROVISIONS
40	40	CHAPTER 81. GENERAL PROVISIONS
41	41	Sec. 81.001. DEFINITIONS. In this title:
42	42	(1) "Commission" means the Texas Transportation
43	43	Commission.
44	44	(2) "Department" means the Texas Department of
45	45	Transportation. (New.)
46	46	Sec. 81.002. APPLICABILITY. In this title, a reference to a
47	47	railroad company includes:
48	48	(1) a railroad incorporated before September 1, 2007,
49	49	under former Title 112, Revised Statutes; or
50	50	(2) any other legal entity operating a railroad,
51	51	including an entity organized under the Texas Business Corporation
52	52	Act or the Texas Corporation Law provisions of the Business
53	53	Organizations Code. (V.A.C.S. Art. 6259a.)
54	54	SECTION 2.03. Title 5, Transportation Code, is amended by
55	55	adding Subtitles C and D to read as follows:
56	56	SUBTITLE C. RAILROADS GENERALLY
57	57	CHAPTER 111. REGULATION BY TEXAS DEPARTMENT OF TRANSPORTATION
58	58	SUBCHAPTER A. GENERAL PROVISIONS
59	59	Sec. 111.001. DEFINITION OF PERSON
60	60	Sec. 111.002. POWER AND AUTHORITY
61	61	Sec. 111.003. TRANSFER OF RAILROAD AUTHORITY
62	62	Sec. 111.004. REFERENCE TO RAILROAD COMMISSION
63	63	[Sections 111.005-111.050 reserved for expansion]
64	64	SUBCHAPTER B. REGULATION OF RAILROADS BY DEPARTMENT
65	65	Sec. 111.051. INSPECTION OF BOOKS AND PAPERS; PENALTY
66	66	Sec. 111.052. INFORMATION SOLICITED BY DEPARTMENT
67	67	Sec. 111.053. REFUSAL TO ANSWER BY RAILROAD COMPANY
68	68	OFFICER OR EMPLOYEE; CRIMINAL PENALTY
69	69	Sec. 111.054. REFUSAL TO ANSWER BY RAILROAD COMPANY;
70	70	PENALTY
71	71	Sec. 111.055. WITNESSES
72	72	Sec. 111.056. DEPOSITIONS
73	73	Sec. 111.057. PENALTY NOT OTHERWISE PROVIDED
74	74	Sec. 111.058. SUITS FOR PENALTY
75	75	[Sections 111.059-111.100 reserved for expansion]
76	76	SUBCHAPTER C. DEPARTMENT SAFETY REGULATION
77	77	Sec. 111.101. IMPLEMENTATION OF FEDERAL SAFETY LAWS;
78	78	FEES
79	79	Sec. 111.102. HAZARDOUS MATERIALS INSPECTIONS
80	80	SUBTITLE C. RAILROADS GENERALLY
81	81	CHAPTER 111. REGULATION BY TEXAS DEPARTMENT OF TRANSPORTATION
82	82	SUBCHAPTER A. GENERAL PROVISIONS
83	83	Sec. 111.001. DEFINITION OF PERSON. In this chapter:
84	84	(1) "person" includes a corporation, as provided by
85	85	Section 312.011, Government Code; and
86	86	(2) the definition of "person" assigned by Section
87	87	311.005, Government Code, does not apply. (New.)
88	88	Sec. 111.002. POWER AND AUTHORITY. To the extent not
89	89	preempted by federal law, the department:
90	90	(1) has power and authority over:
91	91	(A) railroads, including suburban, belt, and
92	92	terminal railroads;
93	93	(B) public wharves, docks, piers, elevators,
94	94	warehouses, sheds, tracks, and other property used in connection
95	95	with railroads; and
96	96	(C) persons, associations, and private or
97	97	municipal corporations that own or operate a railroad, or a wharf,
98	98	dock, pier, elevator, warehouse, shed, track, or other property
99	99	used in connection with a railroad; and
100	100	(2) shall govern and regulate those railroads,
101	101	persons, associations, and corporations and prevent abuses in the
102	102	conduct of their business. (V.A.C.S. Art. 6445, Subsec. (a).)
103	103	Sec. 111.003. TRANSFER OF RAILROAD AUTHORITY. On October
104	104	1, 2005, all powers and duties of the Railroad Commission of Texas
105	105	that related primarily to railroads and the regulation of railroads
106	106	and that existed on that date were transferred to the department, as
107	107	provided by Chapter 281, Acts of the 79th Legislature, Regular
108	108	Session, 2005. (V.A.C.S. Art. 6445, Subsec. (b).)
109	109	Sec. 111.004. REFERENCE TO RAILROAD COMMISSION. Any
110	110	reference in law to the Railroad Commission of Texas that relates
111	111	primarily to railroads and the regulation of railroads means the
112	112	department. (V.A.C.S. Art. 6445, Subsec. (c).)
113	113	[Sections 111.005-111.050 reserved for expansion]
114	114	SUBCHAPTER B. REGULATION OF RAILROADS BY DEPARTMENT
115	115	Sec. 111.051. INSPECTION OF BOOKS AND PAPERS; PENALTY.
116	116	(a) A member of the commission or a person authorized in writing by
117	117	a member of the commission under the hand and seal of the department
118	118	may at any time:
119	119	(1) inspect the books and papers of a railroad
120	120	company; and
121	121	(2) examine under oath a railroad company officer,
122	122	agent, or employee in relation to the business and affairs of the
123	123	company.
124	124	(b) A railroad company that refuses to permit an examination
125	125	of the company's books and papers under Subsection (a) is liable to
126	126	the state, for each violation, for a penalty of not less than $125
127	127	or more than $500 for each day the company fails or refuses to
128	128	permit the examination.
129	129	(c) An officer, agent, or employee of a railroad company who
130	130	possesses or controls any book or paper of the company commits an
131	131	offense if, after proper demand, the officer, agent, or employee
132	132	fails or refuses to exhibit, to any member of the commission or any
133	133	person authorized to investigate, the book or paper. An offense
134	134	under this subsection is a misdemeanor punishable by a fine of not
135	135	less than $125 or more than $500. (V.A.C.S. Arts. 6464, 6465,
136	136	6559i-1.)
137	137	Sec. 111.052. INFORMATION SOLICITED BY DEPARTMENT.
138	138	(a) The department shall as often as necessary provide each
139	139	railroad company a questionnaire designed to elicit all information
140	140	concerning the railroad.
141	141	(b) A railroad company receiving a questionnaire under
142	142	Subsection (a) shall properly fill out the questionnaire and answer
143	143	each question fully and correctly. A railroad company that is
144	144	unable to answer a question shall give satisfactory reason for the
145	145	inability to answer.
146	146	(c) A railroad company shall return the completed
147	147	questionnaire, sworn to by the proper officer of the company, to the
148	148	department not later than the 30th day after the date the company
149	149	received the questionnaire. (V.A.C.S. Art. 6467.)
150	150	Sec. 111.053. REFUSAL TO ANSWER BY RAILROAD COMPANY OFFICER
151	151	OR EMPLOYEE; CRIMINAL PENALTY. (a) An officer or employee of a
152	152	railroad company commits an offense if the officer or employee:
153	153	(1) fails or refuses to fill out and return a
154	154	questionnaire to the department as required by law;
155	155	(2) fails or refuses to answer any question in a
156	156	questionnaire;
157	157	(3) gives a false answer to any question in a
158	158	questionnaire if the answer to the question is within the officer's
159	159	or employee's knowledge; or
160	160	(4) evades the answer to any question in a
161	161	questionnaire.
162	162	(b) An offense under this section is a misdemeanor
163	163	punishable by a fine of $500 for each day that the officer or
164	164	employee violates this section after the date the questionnaire is
165	165	due to the department. (V.A.C.S. Art. 6559i-2.)
166	166	Sec. 111.054. REFUSAL TO ANSWER BY RAILROAD COMPANY;
167	167	PENALTY. (a) A railroad company is liable to the state for a
168	168	penalty of $500 if:
169	169	(1) an officer or employee of the company:
170	170	(A) fails or refuses to fill out and return a
171	171	questionnaire under Section 111.052;
172	172	(B) fails or refuses to answer a question in a
173	173	questionnaire under Section 111.052;
174	174	(C) gives a false answer to a question in a
175	175	questionnaire under Section 111.052 and the fact inquired of is
176	176	within the officer's or employee's knowledge; or
177	177	(D) evades the answer to such a question in a
178	178	questionnaire under Section 111.052; and
179	179	(2) it appears that the officer or employee acted in
180	180	obedience to the company's direction, permission, or request in the
181	181	officer's or employee's failure, refusal, or evasion.
182	182	(b) The department may prescribe a system of bookkeeping to
183	183	be observed by each railroad company that receives a questionnaire
184	184	under Section 111.052, under the penalties of Subsection (a).
185	185	(V.A.C.S. Art. 6468.)
186	186	Sec. 111.055. WITNESSES. (a) This section applies only to
187	187	the extent that it does not conflict with Chapter 2001, Government
188	188	Code.
189	189	(b) In an examination or investigation under this chapter,
190	190	the department may compel the attendance of witnesses and may issue
191	191	subpoenas for witnesses in accordance with rules prescribed by the
192	192	department. The officer to whom process is directed shall serve it.
193	193	(c) A witness who appears before the department by order of
194	194	the department at a place outside the county where the witness
195	195	resides is entitled to receive for the witness's attendance:
196	196	(1) $1 for each day; and
197	197	(2) three cents for each mile the witness travels, by
198	198	the nearest practical route, in going to and returning from that
199	199	place.
200	200	(d) On the presentation of proper vouchers, sworn to by the
201	201	witness and approved by the department, the comptroller shall pay
202	202	the witness the amount to which the witness is entitled.
203	203	(e) A witness is not entitled to fees or mileage if, when
204	204	summoned at the request of a railroad, the witness:
205	205	(1) is directly or indirectly interested in the
206	206	railroad;
207	207	(2) is in any way interested in stock, a bond, a
208	208	mortgage, or a security, or the earnings of the railroad; or
209	209	(3) was an officer, agent, or employee of the
210	210	railroad.
211	211	(f) A witness furnished with free transportation may not
212	212	receive pay for the distance the witness travels on the free
213	213	transportation.
214	214	(g) The department may issue an attachment as in civil cases
215	215	for a witness who fails or refuses to obey a subpoena and may compel
216	216	the witness to appear before the department and testify on a matter
217	217	as the department requires.
218	218	(h) If a witness, after being summoned, fails or refuses to
219	219	attend or to answer a question asked of the witness that the witness
220	220	would be required to answer if in court, the department may fine and
221	221	imprison the witness for contempt in the same manner that a judge of
222	222	the district court might do under similar circumstances.
223	223	(i) The claim that testimony might tend to incriminate the
224	224	person giving the testimony does not excuse a witness from
225	225	testifying, but the evidence or testimony may not be used against
226	226	the witness in a criminal trial. (New; V.A.C.S. Art. 6471.)
227	227	Sec. 111.056. DEPOSITIONS. (a) The department may in its
228	228	discretion issue process to take the testimony of a witness by a
229	229	written or oral deposition instead of compelling the personal
230	230	attendance of the witness.
231	231	(b) An officer executing process issued under a provision of
232	232	this subtitle or Subtitle D may charge a fee as determined by the
233	233	department, not to exceed fees prescribed by law for similar
234	234	services. (V.A.C.S. Art. 6472.)
235	235	Sec. 111.057. PENALTY NOT OTHERWISE PROVIDED. A railway
236	236	company doing business in this state is liable to the state for a
237	237	penalty of not more than $5,000 each time the railway company:
238	238	(1) violates any provision of this subtitle or
239	239	Subtitle D or fails or refuses to perform any duty imposed upon it
240	240	for which a penalty has not been provided by law; or
241	241	(2) fails, neglects, or refuses to obey any
242	242	requirement, order, judgment, or decree of the department.
243	243	(V.A.C.S. Art. 6476.)
244	244	Sec. 111.058. SUITS FOR PENALTY. (a) For a penalty
245	245	provided under this chapter that is recoverable by the state, the
246	246	attorney general, or an attorney acting under the direction of the
247	247	attorney general, may bring suit in the name of the state in:
248	248	(1) Travis County; or
249	249	(2) any county in or through which the railroad runs.
250	250	(b) The attorney bringing a suit under this section is
251	251	entitled to receive:
252	252	(1) a fee to be paid by the state of $50 for each
253	253	penalty recovered and collected by the attorney; and
254	254	(2) 10 percent of the amount collected.
255	255	(c) In all suits arising under this chapter or Section
256	256	112.003, the rules of evidence shall be the same as in ordinary
257	257	civil actions, except as otherwise provided by this chapter.
258	258	(V.A.C.S. Art. 6477 (part).)
259	259	[Sections 111.059-111.100 reserved for expansion]
260	260	SUBCHAPTER C. DEPARTMENT SAFETY REGULATION
261	261	Sec. 111.101. IMPLEMENTATION OF FEDERAL SAFETY LAWS; FEES.
262	262	(a) The department may perform any act, adopt any rules, and issue
263	263	any orders as permitted by the Federal Railroad Safety Act of 1970,
264	264	originally codified as 45 U.S.C. Sections 421, 431 et seq. and
265	265	recodified in 1994 as 49 U.S.C. Sections 20101-20117, 20131,
266	266	20133-20141, 20143, 21301, 21302, 21304, 21311, 24902, and 24905
267	267	and Sections 4(b)(1), (i), and (t) of Pub. L. No. 103-272.
268	268	(b) The department by rule shall:
269	269	(1) adopt reasonable fees to be assessed annually
270	270	against railroads operating within the state; and
271	271	(2) establish the method by which the fees are
272	272	calculated and assessed.
273	273	(c) The total amount of fees estimated to be collected by
274	274	rules adopted by the department under this section may not exceed
275	275	the amount estimated by the department to be necessary to recover
276	276	the costs of administering the department's rail safety program.
277	277	(d) In adopting a fee structure, the department may consider
278	278	the gross ton miles for railroad operations within this state for
279	279	each railroad operating in the state to provide for the equitable
280	280	allocation among railroads of the cost of administering the
281	281	department's rail safety program.
282	282	(e) A fee collected under this section shall be deposited to
283	283	the credit of the general revenue fund to be used for the rail
284	284	safety program. (V.A.C.S. Art. 6448a.)
285	285	Sec. 111.102. HAZARDOUS MATERIALS INSPECTIONS. (a) The
286	286	department may enter private property on which a railroad facility
287	287	that is connected to but not a part of a general railroad system of
288	288	transportation is located at a reasonable time and in a reasonable
289	289	manner to perform an inspection, investigation, or surveillance of
290	290	facilities, equipment, records, and operations relating to the
291	291	packaging, loading, or transportation of hazardous materials to
292	292	determine whether the railroad facility complies with the
293	293	applicable safety requirements of this chapter or a rule adopted
294	294	under this chapter.
295	295	(b) In performing an inspection under this section, the
296	296	department may not require a railroad facility owner or operator to
297	297	alter or cease rail operations.
298	298	(c) Any inspection, investigation, or surveillance
299	299	performed on the site of a manufacturing facility shall be
300	300	performed in compliance with the safety rules of the facility,
301	301	including a rule regarding security clearance at the front gate if
302	302	appropriate. (V.A.C.S. Art. 6448b.)
303	303	CHAPTER 112. POWERS AND DUTIES OF RAILROADS
304	304	SUBCHAPTER A. GENERAL PROVISIONS
305	305	Sec. 112.001. DEFINITION OF PERSON
306	306	Sec. 112.002. GENERAL RIGHTS OF RAILROADS
307	307	Sec. 112.003. DAMAGES
308	308	[Sections 112.004-112.050 reserved for expansion]
309	309	SUBCHAPTER B. ACQUISITION AND USE OF PROPERTY BY RAILROAD OR OF RAILROAD
310	310	RAILROAD
311	311	Sec. 112.051. ENTRY ONTO PRIVATE PROPERTY
312	312	Sec. 112.052. ACQUISITION OF PROPERTY FOR CHANGE,
313	313	LINE
314	314	Sec. 112.053. CONDEMNATION OF PROPERTY: WHEN RAILROAD
315	315	COMPANY AND OWNER DISAGREE
316	316	Sec. 112.054. CONDEMNATION OF PROPERTY: CERTAIN
317	317	TERMINAL SWITCHING RAILROADS
318	318	Sec. 112.055. RIGHT-OF-WAY ACQUIRED BY CONDEMNATION
319	319	Sec. 112.056. CONDEMNATION OF PROPERTY FOR CERTAIN
320	320	ROADS
321	321	Sec. 112.057. CONSTRUCTION ON OR NEAR CERTAIN
322	322	WATERWAYS OR ROADS
323	323	Sec. 112.058. INTERSECTION OF RAIL LINE AND ROAD OR
324	324	STREET
325	325	Sec. 112.059. CROSSINGS OF PUBLIC ROADS
326	326	Sec. 112.060. CONVERSION OF PROPERTY IN CUSTODY OF
327	327	RAILROAD COMPANY
328	328	Sec. 112.061. SUIT INVOLVING RAILROAD COMPANY PROPERTY
329	329	Sec. 112.062. RAILROAD COMPANY PROPERTY SUBJECT TO EXECUTION;
330	330	CHARACTERIZATION OF ROLLING STOCK
331	331	[Sections 112.063-112.100 reserved for expansion]
332	332	SUBCHAPTER C. SAFETY
333	333	Sec. 112.101. CATTLE GUARDS
334	334	Sec. 112.102. LIABILITY FOR DEATH OR INJURY TO STOCK
335	335	Sec. 112.103. DUTY TO STOP AND RENDER AID; OFFENSE
336	336	[Sections 112.104-112.150 reserved for expansion]
337	337	SUBCHAPTER D. LIABILITY FOR INJURIES TO EMPLOYEES
338	338	Sec. 112.151. APPLICABILITY OF SUBCHAPTER
339	339	Sec. 112.152. LIABILITY GENERALLY FOR INJURY TO OR
340	340	DEATH OF EMPLOYEE
341	341	Sec. 112.153. CONTRIBUTORY NEGLIGENCE
342	342	Sec. 112.154. ASSUMED RISK
343	343	Sec. 112.155. CERTAIN PROVISIONS VOID
344	344	Sec. 112.156. LIABILITY OFFSET
345	345	Sec. 112.157. CONSTRUCTION OF CERTAIN SECTIONS
346	346	Sec. 112.158. INJURY TO FELLOW SERVANT
347	347	CHAPTER 112. POWERS AND DUTIES OF RAILROADS
348	348	SUBCHAPTER A. GENERAL PROVISIONS
349	349	Sec. 112.001. DEFINITION OF PERSON. In this chapter:
350	350	(1) "person" includes a corporation, as provided by
351	351	Section 312.011, Government Code; and
352	352	(2) the definition of "person" assigned by Section
353	353	311.005, Government Code, does not apply. (New.)
354	354	Sec. 112.002. GENERAL RIGHTS OF RAILROADS. (a) A railroad
355	355	company has the right to succession.
356	356	(b) A railroad company may:
357	357	(1) sue, be sued, plead, and be impleaded in its
358	358	corporate name;
359	359	(2) have and use a seal and alter the seal at will;
360	360	(3) receive and convey persons and property on its
361	361	railway by any mechanical power, including the use of steam;
362	362	(4) regulate the time and manner in which, and the
363	363	compensation for which, passengers and property are transported,
364	364	subject to the provisions of law;
365	365	(5) exercise the power of eminent domain for the
366	366	purposes prescribed by this subtitle or Subtitle D;
367	367	(6) purchase, hold, and use all property as necessary
368	368	for the construction and use of its railway, stations, and other
369	369	accommodations necessary to accomplish company objectives, and
370	370	convey that property when no longer required for railway use; and
371	371	(7) take, hold, and use property granted to the
372	372	company to aid in the construction and use of its railway, and
373	373	convey that property in a manner consistent with the terms of the
374	374	grant when the property is no longer required for railway use.
375	375	(V.A.C.S. Art. 6341.)
376	376	Sec. 112.003. DAMAGES. A railroad subject to this subtitle
377	377	or Subtitle D is liable to a person, firm, or corporation injured
378	378	for the damages resulting from:
379	379	(1) a prohibited or unlawful act or thing that the
380	380	railroad does or causes or permits to be done; or
381	381	(2) failure of the railroad to perform an act the
382	382	railroad is required to perform under this subtitle or Subtitle D.
383	383	(V.A.C.S. Art. 6475.)
384	384	[Sections 112.004-112.050 reserved for expansion]
385	385	SUBCHAPTER B. ACQUISITION AND USE OF PROPERTY BY RAILROAD OR OF
386	386	RAILROAD
387	387	Sec. 112.051. ENTRY ONTO PRIVATE PROPERTY. (a) A railroad
388	388	company is entitled to make an examination and survey for the
389	389	company's proposed railway, to be performed as necessary to select
390	390	the most advantageous route for the proposed railway, and, subject
391	391	to Subsection (c), may enter on the lands or waters of any person or
392	392	corporation for that purpose.
393	393	(b) A railroad company is responsible for any damages
394	394	arising from an examination or survey under this section.
395	395	(c) Except for the purposes of performing a lineal survey, a
396	396	railroad company may not enter on private real property for the
397	397	purpose of condemning the property or any material on the property
398	398	for any purpose until the company agrees with and pays the owner of
399	399	the property all damages that may be caused to the owner's property
400	400	by the condemnation of the property and by the construction of the
401	401	company's road. (V.A.C.S. Arts. 6318, 6337.)
402	402	Sec. 112.052. ACQUISITION OF PROPERTY FOR CHANGE,
403	403	RELOCATION, OR ABANDONMENT OF RAILROAD LINE. (a) Subject to
404	404	Subsection (b), a railroad company or a receiver of a railroad that
405	405	changes, relocates, or abandons a line of railroad in this state may
406	406	acquire by condemnation or otherwise land for:
407	407	(1) right-of-way;
408	408	(2) depot grounds;
409	409	(3) shops;
410	410	(4) roundhouses;
411	411	(5) water supply sites;
412	412	(6) sidings;
413	413	(7) switches;
414	414	(8) spurs; or
415	415	(9) any other purpose connected with or necessary to
416	416	the building or operating of the line of railroad, as changed,
417	417	relocated, or abandoned.
418	418	(b) Property acquired under this section must be declared
419	419	for and charged with public use. (V.A.C.S. Art. 6351.)
420	420	Sec. 112.053. CONDEMNATION OF PROPERTY: WHEN RAILROAD
421	421	COMPANY AND OWNER DISAGREE. (a) A railroad company may acquire
422	422	property by condemnation if the company cannot agree with the owner
423	423	for the purchase of the property and the property is required for
424	424	any of the following purposes:
425	425	(1) the incorporation of the railroad;
426	426	(2) the transaction of company business;
427	427	(3) depots, station buildings, and machine and repair
428	428	shops;
429	429	(4) the construction of reservoirs for the water
430	430	supply;
431	431	(5) the right-of-way, or new or additional
432	432	right-of-way;
433	433	(6) a change or relocation;
434	434	(7) a roadbed;
435	435	(8) the shortening of a line;
436	436	(9) the reduction of grades;
437	437	(10) the double tracking of the railroad or the
438	438	construction and operation of tracks; or
439	439	(11) any other purpose connected with or necessary to
440	440	the building, operating, or running of the railroad.
441	441	(b) A railroad company may not, under this section, condemn
442	442	property that is located more than two miles from the company's
443	443	right-of-way. (V.A.C.S. Art. 6336.)
444	444	Sec. 112.054. CONDEMNATION OF PROPERTY: CERTAIN TERMINAL
445	445	SWITCHING RAILROADS. (a) This section applies only to the
446	446	condemnation of property for a terminal switching railroad that:
447	447	(1) handles fewer than 10,000 but more than 3,000
448	448	carloads a year; and
449	449	(2) operates in a single county that:
450	450	(A) has a population of 110,000 or more;
451	451	(B) is not adjacent to the Texas border; and
452	452	(C) does not contain a portion of a national
453	453	forest.
454	454	(b) The power to condemn property given to a railroad
455	455	company under this subtitle or Subtitle D, including Section
456	456	112.052 or 112.053, does not apply to any property used for or
457	457	designated under local zoning regulations for residential use
458	458	unless the use of the condemned property is authorized under or in
459	459	conformity with local zoning or development regulations. (V.A.C.S.
460	460	Art. 6336a.)
461	461	Sec. 112.055. RIGHT-OF-WAY ACQUIRED BY CONDEMNATION.
462	462	(a) A right-of-way that a railway company in this state acquires
463	463	by condemnation does not include a fee simple estate in public or
464	464	private land.
465	465	(b) A right-of-way that a railway company acquires by
466	466	condemnation is not lost on forfeiture or expiration of the railway
467	467	company's charter. The right-of-way remains subject to an
468	468	extension of the charter or the grant of a new charter, and a new
469	469	condemnation of the way is not required. (V.A.C.S. Art. 6339.)
470	470	Sec. 112.056. CONDEMNATION OF PROPERTY FOR CERTAIN ROADS.
471	471	(a) Subject to Subsection (b), a corporation created to build,
472	472	maintain, and operate a line of railroads to a mine, gin, quarry,
473	473	manufacturing plant, or mill may acquire by condemnation land
474	474	necessary for the right-of-way for a road connecting the mine, gin,
475	475	quarry, manufacturing plant, or mill to the nearest line of
476	476	railroad.
477	477	(b) The corporation may condemn property under this section
478	478	only if the corporation declares itself a common carrier and its
479	479	railroads public highways, placing the road under the control of
480	480	the department. (V.A.C.S. Art. 6550.)
481	481	Sec. 112.057. CONSTRUCTION ON OR NEAR CERTAIN WATERWAYS OR
482	482	ROADS. (a) A railroad company may construct the company's road
483	483	across, along, or on any stream of water, water course, street,
484	484	highway, turnpike, or canal where the route of the company's
485	485	railway intersects or touches the stream, water course, street,
486	486	highway, turnpike, or canal.
487	487	(b) The railroad company shall:
488	488	(1) restore the stream, water course, street, highway,
489	489	turnpike, or canal to its former state or to a state in which its
490	490	usefulness is not unnecessarily impaired; and
491	491	(2) keep the crossing in repair. (V.A.C.S. Art.
492	492	6320.)
493	493	Sec. 112.058. INTERSECTION OF RAIL LINE AND ROAD OR STREET.
494	494	Sections 112.051, 112.053, 112.054, 112.055, 112.057, 112.059, and
495	495	112.061 do not affect a law that requires a railroad company to
496	496	provide a proper crossing at each intersection of a road or street.
497	497	(V.A.C.S. Art. 6326.)
498	498	Sec. 112.059. CROSSINGS OF PUBLIC ROADS. (a) Each
499	499	railroad company in this state shall place and keep the portion of
500	500	the company's roadbed and right-of-way over or across which a
501	501	public county road runs in proper condition for the use of the
502	502	traveling public.
503	503	(b) A railroad company is liable for a penalty of $10 for
504	504	each week the company does not comply with the requirements of this
505	505	section if:
506	506	(1) the overseer of a public road gives written notice
507	507	to the company's person responsible for maintaining the area where
508	508	the work is needed; and
509	509	(2) the company fails to complete the work or repairs
510	510	within 30 days after the date written notice is given under
511	511	Subdivision (1).
512	512	(c) A county attorney, on the making of an affidavit of the
513	513	facts by any person, shall immediately institute a suit against the
514	514	railroad company to recover the penalty provided by this section. A
515	515	county attorney's wilful failure or refusal to comply with this
516	516	subsection is sufficient cause for the county attorney to be
517	517	removed from office unless it is evident that the suit could not
518	518	have been maintained.
519	519	(d) A proceeding under this section shall be conducted in
520	520	the name of the county and in the same manner as a proceeding in a
521	521	civil suit.
522	522	(e) A county attorney is entitled to a fee of $10, taxed as
523	523	costs, for each suit maintained by the county attorney under this
524	524	section. If two or more penalties are sought in the same suit only
525	525	one fee may be recovered under this subsection.
526	526	(f) If the county is cast in the suit, the county may not be
527	527	charged costs.
528	528	(g) A penalty collected under this section shall be
529	529	deposited in the road and bridge fund of the county in which the
530	530	suit is brought. (V.A.C.S. Art. 6327.)
531	531	Sec. 112.060. CONVERSION OF PROPERTY IN CUSTODY OF RAILROAD
532	532	COMPANY. (a) A railroad company in this state or a receiver of a
533	533	railroad company in this state may not confiscate or otherwise
534	534	convert to the company's or receiver's own use, in whole or in
535	535	substantial part, a carload shipment of any article or commodity of
536	536	freight traffic received by the company or receiver for
537	537	transportation and delivery without the express consent of the
538	538	owner or consignee of the shipment.
539	539	(b) An act of an agent, officer, or employee of a railroad
540	540	company or receiver under this section that is within the apparent
541	541	scope of the agent's, officer's, or employee's duties or authority
542	542	with respect to the confiscation or conversion is considered to be
543	543	an act of the company or receiver.
544	544	(c) This section does not apply to a conversion of freight
545	545	that has been damaged or intermingled with other freight in wrecks,
546	546	or to refused or unclaimed freight, that the railroad is unable to
547	547	deliver.
548	548	(d) In addition to all other remedies or penalties that may
549	549	be provided by law, a railroad company or receiver that violates
550	550	this section is subject to:
551	551	(1) a penalty in favor of the state of not less than
552	552	$125 or more than $500; and
553	553	(2) an additional penalty in favor of the owner or
554	554	consignee of the converted shipment equal to twice the amount of the
555	555	purchase price of the converted shipment. (V.A.C.S. Arts. 6366,
556	556	6367.)
557	557	Sec. 112.061. SUIT INVOLVING RAILROAD COMPANY PROPERTY.
558	558	(a) If a railroad company is sued for property occupied by the
559	559	company for railroad purposes or for damages to property occupied
560	560	by the company for railroad purposes, the court in which the suit is
561	561	pending may determine all matters in dispute between the parties,
562	562	including the condemnation of the property, on petition or cross
563	563	bill by the defendant requesting that remedy.
564	564	(b) A plea for condemnation under Subsection (a) is
565	565	considered an admission of the plaintiff's title to the property.
566	566	(V.A.C.S. Art. 6338.)
567	567	Sec. 112.062. RAILROAD COMPANY PROPERTY SUBJECT TO
568	568	EXECUTION; CHARACTERIZATION OF ROLLING STOCK. (a) All or any part
569	569	of a railroad company's real and personal property is subject to
570	570	execution and sale in the same manner as the property of
571	571	individuals.
572	572	(b) No portion of a railroad company's real or personal
573	573	property is exempt from execution and sale.
574	574	(c) The rolling stock and all other movable property
575	575	belonging to a railroad company is considered personal property.
576	576	(V.A.C.S. Art. 6420.)
577	577	[Sections 112.063-112.100 reserved for expansion]
578	578	SUBCHAPTER C. SAFETY
579	579	Sec. 112.101. CATTLE GUARDS. (a) A railroad company whose
580	580	railroad passes through a field or enclosure shall construct and
581	581	keep in good repair a good and sufficient cattle guard or stop at
582	582	each location the railroad enters the field or enclosure.
583	583	(b) If a field or enclosure through which a railway passes
584	584	is enlarged or extended, or the owner of any land over which a
585	585	railway runs clears and opens a field so as to include the track of a
586	586	railway, the railroad company shall construct and keep in repair
587	587	good and sufficient cattle guards or stops at the borders of the
588	588	extended enclosures or fields or the new fields.
589	589	(c) A cattle guard or stop required by this section shall be
590	590	constructed and kept in repair to protect the fields and enclosures
591	591	from the depredations of stock of any kind.
592	592	(d) If a railroad company fails to construct and keep in
593	593	repair a cattle guard or stop required by this section, the owner of
594	594	the enclosure or field may:
595	595	(1) have the required cattle guards or stops
596	596	constructed at the proper places and kept in repair; and
597	597	(2) recover from the company the costs of constructing
598	598	or repairing the required cattle guards or stops, unless it is shown
599	599	that the enlargement or extension was made capriciously and with
600	600	intent to harass and molest the company.
601	601	(e) A railroad company that neglects to construct or keep in
602	602	repair a proper cattle guard or stop as required by this section is
603	603	liable to a party injured by the neglect for all damages that may
604	604	result from the neglect. The injured party may seek to recover the
605	605	damages by filing suit. (V.A.C.S. Art. 6400.)
606	606	Sec. 112.102. LIABILITY FOR DEATH OR INJURY TO STOCK.
607	607	(a) Subject to Subsection (b), a railroad company is liable to the
608	608	owner for the value of all stock killed or injured by the company's
609	609	locomotives and cars operating over the company's railways,
610	610	regardless of whether the county or subdivision of a county in which
611	611	the death or injury occurs has, under Subchapter B or D, Chapter
612	612	143, Agriculture Code, prohibited certain animals from running at
613	613	large.
614	614	(b) A railroad company that fences its railway is liable
615	615	only for injury to stock that results from a want of ordinary care.
616	616	(V.A.C.S. Art. 6402.)
617	617	Sec. 112.103. DUTY TO STOP AND RENDER AID; OFFENSE. (a) In
618	618	this section, "operator" means the person assigned by a railroad
619	619	company to be responsible for the operation of a train.
620	620	(b) An operator who is involved, while operating a
621	621	locomotive, in an accident resulting in injury to or death of a
622	622	person or damage to a vehicle that is driven or attended by a person
623	623	shall immediately stop the locomotive at the scene of the accident.
624	624	(c) The operator shall render to a person injured in the
625	625	accident reasonable assistance, including transporting, or the
626	626	making of arrangements for transporting, the person to a physician,
627	627	surgeon, or hospital for medical or surgical treatment if it is
628	628	apparent that treatment is necessary or if the injured person
629	629	requests transportation.
630	630	(d) A person who violates this section commits an offense.
631	631	An offense under this subsection is a Class C misdemeanor.
632	632	(V.A.C.S. Art. 6419b; New.)
633	633	[Sections 112.104-112.150 reserved for expansion]
634	634	SUBCHAPTER D. LIABILITY FOR INJURIES TO EMPLOYEES
635	635	Sec. 112.151. APPLICABILITY OF SUBCHAPTER.
636	636	Notwithstanding any other law, this subchapter does not apply to
637	637	the portion of a person's, receiver's, or corporation's operations
638	638	that:
639	639	(1) consists solely of the fabrication, manufacture,
640	640	repair, or storage of rail rolling stock; or
641	641	(2) uses rail cars solely as a part of its own internal
642	642	manufacturing or production process. (V.A.C.S. Art. 6432A.)
643	643	Sec. 112.152. LIABILITY GENERALLY FOR INJURY TO OR DEATH OF
644	644	EMPLOYEE. (a) A corporation, receiver, or other person operating
645	645	a railroad in this state is liable for damages to a person who,
646	646	while employed by the railroad operator, is injured as a result of:
647	647	(1) the negligence of an officer, agent, or employee
648	648	of the railroad operator; or
649	649	(2) any defect or insufficiency due to the railroad
650	650	operator's negligence in its cars, engines, appliances, machinery,
651	651	track, roadbed, works, boats, wharves, or other equipment.
652	652	(b) If an employee dies as a result of the negligence,
653	653	defect, or insufficiency described by Subsection (a), the railroad
654	654	operator is liable to the employee's personal representative for
655	655	the benefit of the employee's surviving spouse and children and the
656	656	employee's parents or, if the employee is not survived by a spouse,
657	657	child, or parent, to the employee's next of kin who is dependent on
658	658	the employee.
659	659	(c) Damages recovered under Subsection (b) are not liable
660	660	for the debts of the deceased and shall be divided among the persons
661	661	entitled to the benefit of the action who are living, in shares the
662	662	fact finder considers proper.
663	663	(d) An action under Subsection (b) may be brought without
664	664	administration by all parties entitled to damages under that
665	665	subsection, or by any one or more of those parties, for the benefit
666	666	of all of those parties. If all parties entitled to recover are not
667	667	before the court, the action may proceed for the benefit of the
668	668	parties who are before the court. (V.A.C.S. Art. 6439.)
669	669	Sec. 112.153. CONTRIBUTORY NEGLIGENCE. (a) In an action
670	670	under Section 112.152, the employee's contributory negligence is
671	671	not a bar to recovery but the fact finder shall reduce the
672	672	employee's damages in proportion to the amount of contributory
673	673	negligence attributable to the employee.
674	674	(b) An employee may not be found contributorily negligent in
675	675	a case in which the railroad operator's violation of a statute
676	676	enacted for the safety of employees contributed to the employee's
677	677	injury or death. (V.A.C.S. Art. 6440.)
678	678	Sec. 112.154. ASSUMED RISK. (a) The plea of assumed risk
679	679	is not available as a bar to recovery of damages in a suit brought in
680	680	a court in this state against a corporation, receiver, or other
681	681	person operating a railroad, interurban railway, or street railway
682	682	in this state for the recovery of damages for the death of or
683	683	personal injury to an employee caused by the wrong or negligence of
684	684	the railroad or railway operator. An employee assumes the ordinary
685	685	risk incident to the employee's employment but does not assume the
686	686	risk resulting from any negligence of the employee's employer,
687	687	regardless of whether the negligence is known to the employee.
688	688	(b) If in a suit described by Subsection (a) it is alleged
689	689	and proven that the deceased or injured employee was negligent in
690	690	continuing in the service of the railroad or railway operator in
691	691	view of the risk, dangers, and hazards of which the employee knew or
692	692	must necessarily have known, in the ordinary performance of the
693	693	employee's duties, that fact does not bar the employee's recovery,
694	694	but is considered contributory negligence. If contributory
695	695	negligence described by this subsection proximately caused or
696	696	contributed to the cause of the death or injury, the damages
697	697	recoverable by the employee or the employee's heirs or
698	698	representatives shall be reduced only in proportion to the amount
699	699	of negligence attributable to the employee.
700	700	(c) An employee of a railway company who is injured while
701	701	engaged in the operation of a train in this state that is propelled
702	702	by two or more engines is not considered to have assumed the risk of
703	703	that injury if the injury is a result of the operation of two or more
704	704	engines on the train rather than one.
705	705	(d) In an action against a railroad operator under Section
706	706	112.152, an employee may not be held to have assumed the risk of the
707	707	employee's employment in a case in which the railroad operator's
708	708	violation of a statute enacted for the safety of employees
709	709	contributed to the employee's injury or death. (V.A.C.S. Arts.
710	710	6437, 6438, 6441.)
711	711	Sec. 112.155. CERTAIN PROVISIONS VOID. A provision of a
712	712	contract, rule, or device the purpose of which is to exempt a
713	713	railroad operator from liability under Section 112.152 is void to
714	714	the extent of the purported exemption. (V.A.C.S. Art. 6442
715	715	(part).)
716	716	Sec. 112.156. LIABILITY OFFSET. In an action against a
717	717	railroad operator under Section 112.152, the railroad operator may
718	718	offset the railroad operator's liability by the amount of the
719	719	railroad operator's contribution or payment to any insurance,
720	720	relief benefit, or indemnity from which benefits have been paid to
721	721	the injured employee or another person entitled to the benefits as a
722	722	result of the injury or death that is the subject of the action.
723	723	(V.A.C.S. Art. 6442 (part).)
724	724	Sec. 112.157. CONSTRUCTION OF CERTAIN SECTIONS.
725	725	(a) Sections 112.152, 112.153, 112.154(d), 112.155, and 112.156
726	726	do not:
727	727	(1) limit the duty or liability of a railroad operator
728	728	or impair the rights of an employee under the Revised Statutes of
729	729	1925; or
730	730	(2) affect a right of action under another law of this
731	731	state.
732	732	(b) Except as provided by Section 112.151, a section listed
733	733	in Subsection (a) controls over any other provision of the Revised
734	734	Statutes of 1925 with which it conflicts. (V.A.C.S. Art. 6443.)
735	735	Sec. 112.158. INJURY TO FELLOW SERVANT. (a) This section
736	736	applies only to a corporation, receiver, or other person that
737	737	controls or operates a railroad or street railway the line of which
738	738	is located wholly or partly in this state.
739	739	(b) An entity described by Subsection (a) is liable for
740	740	damages sustained by an employee of the entity while the employee is
741	741	engaged in the work of operating the cars, locomotives, or trains of
742	742	the entity as a result of the negligence of any other employee of
743	743	the entity, regardless of whether the negligent employee and the
744	744	employee who sustained the damages are considered fellow servants.
745	745	(c) Persons who are engaged in the common service of an
746	746	entity described by Subsection (a) are considered fellow servants
747	747	only if the persons are:
748	748	(1) employed in the same grade of employment;
749	749	(2) doing the same character of work or service; and
750	750	(3) working together at the same time and place and at
751	751	the same piece of work for a common purpose.
752	752	(d) A person engaged in the service of an entity described
753	753	by Subsection (a) is considered a vice principal of that entity if
754	754	the person is entrusted by the entity with the authority of
755	755	superintendence, control, or command of the other employees of the
756	756	entity, with the authority to direct any other employee in the
757	757	performance of any duty of the employee.
758	758	(e) A vice principal of an entity described by Subsection
759	759	(a) is not considered a fellow servant with other employees of the
760	760	entity.
761	761	(f) A contract between an employer and employee that limits
762	762	the employer's liability under this section in the event of the
763	763	death of or injury to the employee or setting damages that may be
764	764	recovered under this section is not valid or binding.
765	765	(g) This section does not impair or diminish the defense of
766	766	contributory negligence if the injury of the employee is
767	767	proximately caused by the employee's own contributory negligence.
768	768	(V.A.C.S. Arts. 6432, 6433, 6434, 6435, 6436.)
769	769	[Chapters 113-130 reserved for expansion]
770	770	SUBTITLE D. MISCELLANEOUS RAILROADS
771	771	CHAPTER 131. MISCELLANEOUS RAILWAYS
772	772	SUBCHAPTER A. GENERAL PROVISIONS
773	773	Sec. 131.001. DEFINITION OF PERSON
774	774	[Sections 131.002-131.010 reserved for expansion]
775	775	SUBCHAPTER B. ELECTRIC RAILWAYS
776	776	Sec. 131.011. DEFINITION
777	777	Sec. 131.012. EMINENT DOMAIN
778	778	Sec. 131.013. RIGHT-OF-WAY
779	779	Sec. 131.014. CONSTRUCTION OF RAILWAY ALONG OR OVER
780	780	WATERWAY OR INFRASTRUCTURE
781	781	Sec. 131.015. USE OF ELECTRIC STREET RAILWAY TRACKS
782	782	Sec. 131.016. TIME REQUIRED FOR CONSTRUCTION
783	783	Sec. 131.017. USE OF CONDEMNED TRACK
784	784	[Sections 131.018-131.030 reserved for expansion]
785	785	SUBCHAPTER C. MERGER OF INTERURBAN RAILWAY
786	786	Sec. 131.031. DEFINITION
787	787	Sec. 131.032. ACQUISITION OF RAILWAY PROPERTY
788	788	AUTHORIZED
789	789	Sec. 131.033. MUNICIPAL CONSENT REQUIRED
790	790	Sec. 131.034. USE OF STREET RAILWAYS
791	791	Sec. 131.035. LIMITATION ON ACQUISITION
792	792	[Sections 131.036-131.060 reserved for expansion]
793	793	SUBCHAPTER D. PROVISION OF UTILITIES
794	794	Sec. 131.061. INTERURBAN ELECTRIC RAILWAYS
795	795	Sec. 131.062. SUPPLY AND SALE OF ELECTRICITY BY
796	796	STREET, SUBURBAN, OR BELT LINE RAILWAY
797	797	[Sections 131.063-131.100 reserved for expansion]
798	798	SUBCHAPTER E. REDUCED STREET RAILWAY FARES
799	799	Sec. 131.101. APPLICABILITY
800	800	Sec. 131.102. CHILDREN YOUNGER THAN 13 YEARS OF AGE
801	801	Sec. 131.103. STUDENTS
802	802	Sec. 131.104. CHILDREN YOUNGER THAN SIX YEARS OF AGE
803	803	Sec. 131.105. TRANSFER RIGHTS
804	804	[Sections 131.106-131.900 reserved for expansion]
805	805	SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
806	806	Sec. 131.901. STREET AND SUBURBAN RAILWAYS
807	807	Sec. 131.902. FREIGHT INTERURBAN RAILWAYS
808	808	Sec. 131.903. BUILDINGS AND OTHER FACILITIES: CERTAIN
809	809	RAILWAYS
810	810	Sec. 131.904. MOTOR BUS LINES
811	811	SUBTITLE D. MISCELLANEOUS RAILROADS
812	812	CHAPTER 131. MISCELLANEOUS RAILWAYS
813	813	SUBCHAPTER A. GENERAL PROVISIONS
814	814	Sec. 131.001. DEFINITION OF PERSON. In this chapter:
815	815	(1) "person" includes a corporation, as provided by
816	816	Section 312.011, Government Code; and
817	817	(2) the definition of "person" assigned by Section
818	818	311.005, Government Code, does not apply. (New.)
819	819	[Sections 131.002-131.010 reserved for expansion]
820	820	SUBCHAPTER B. ELECTRIC RAILWAYS
821	821	Sec. 131.011. DEFINITION. In this subchapter, "interurban
822	822	electric railway company" means a corporation chartered under the
823	823	laws of this state to conduct and operate an electric railway
824	824	between two municipalities in this state. (V.A.C.S. Art. 6540
825	825	(part).)
826	826	Sec. 131.012. EMINENT DOMAIN. A corporation chartered for
827	827	the purpose of constructing, acquiring, maintaining, or operating
828	828	lines of electric railway between municipalities in this state for
829	829	the transportation of freight, passengers, or both freight and
830	830	passengers may:
831	831	(1) exercise the power of eminent domain with all the
832	832	rights and powers granted by law to a railroad company; and
833	833	(2) enter, condemn, and appropriate land,
834	834	right-of-way, easements, or other property of any person or
835	835	corporation to acquire:
836	836	(A) right-of-way on which to construct and
837	837	operate lines of railway for the acquiring corporation; or
838	838	(B) sites for depots or power plants. (V.A.C.S.
839	839	Art. 6535.)
840	840	Sec. 131.013. RIGHT-OF-WAY. (a) A corporation described
841	841	by Section 131.012 may:
842	842	(1) lay out right-of-way not to exceed 200 feet in
843	843	width for its railways;
844	844	(2) construct its railways and appurtenances on that
845	845	right-of-way; and
846	846	(3) with compensation being made in accordance with
847	847	law:
848	848	(A) take for the purpose of cuttings and
849	849	embankments additional land necessary for the proper construction
850	850	and security of its railways; and
851	851	(B) cut down any tree or remove any structure
852	852	that may be in danger of falling on or obstructing its railway.
853	853	(b) The corporation may:
854	854	(1) have an examination and survey of its proposed
855	855	railway made as necessary to select the most advantageous route;
856	856	and
857	857	(2) for the purposes of Subdivision (1), enter on the
858	858	land or water of any person or corporation, subject to
859	859	responsibility for all damages that may be caused by the entrance,
860	860	examination, or survey. (V.A.C.S. Art. 6536.)
861	861	Sec. 131.014. CONSTRUCTION OF RAILWAY ALONG OR OVER
862	862	WATERWAY OR INFRASTRUCTURE. (a) A corporation described by
863	863	Section 131.012 may construct its railway along, across, or over
864	864	any stream, water course, bay, navigable water, arm of the sea,
865	865	street, highway, steam railway, turnpike, or canal located in the
866	866	route of its electric railway.
867	867	(b) The corporation may erect and operate a bridge, tram,
868	868	trestle, or causeway, over, along, or across any stream, water
869	869	course, bay, navigable water, arm of the sea, street, highway,
870	870	turnpike, or canal described by Subsection (a).
871	871	(c) A bridge or other structure described by Subsection (b)
872	872	may not be erected so as to unnecessarily or unreasonably prevent
873	873	the navigation of the stream, water course, bay, arm of the sea, or
874	874	navigable water.
875	875	(d) This section does not authorize the construction of an
876	876	electric railway on or across a street, alley, square, or property
877	877	of a municipality without the consent of the governing body of the
878	878	municipality.
879	879	(e) Before constructing an electric railway along or on a
880	880	highway, turnpike, or canal, an interurban electric railway company
881	881	must obtain the consent of the authority having jurisdiction over
882	882	the highway, turnpike, or canal. (V.A.C.S. Art. 6537.)
883	883	Sec. 131.015. USE OF ELECTRIC STREET RAILWAY TRACKS.
884	884	(a) An interurban electric railway company's power of eminent
885	885	domain under this subchapter includes the power to condemn for its
886	886	use and benefit easements and right-of-way to operate interurban
887	887	cars along and on the track of an electric street railway company
888	888	owning, controlling, or operating track on any public street or
889	889	alley in a municipality for a purpose described by Subsection (b),
890	890	subject to the consent, authority, and control of the governing
891	891	body of the municipality.
892	892	(b) Condemnation under Subsection (a) may be used only to
893	893	secure an entrance into and an outlet from a municipality on a route
894	894	designated by the governing body of the municipality.
895	895	(c) In a proceeding to condemn an easement or right-of-way
896	896	under this section, the court or the jury trying the case shall
897	897	define and establish the terms on which the easement or
898	898	right-of-way may be used.
899	899	(d) A court rendering a judgment in a proceeding under this
900	900	section may review and reform the terms of a grant and the
901	901	provisions of the judgment on a subsequent application by a party to
902	902	the original proceeding or a person claiming through or under a
903	903	party to the original proceeding.
904	904	(e) The hearing on an application brought under Subsection
905	905	(d) is in the nature of a retrial of the proceeding with respect to
906	906	the terms on which the easement may be used except that the court
907	907	may not declare the easement forfeited or impair the exercise of the
908	908	easement.
909	909	(f) An application under Subsection (d) may not be made
910	910	before the second anniversary of the date of the final judgment on
911	911	the most recent application. (V.A.C.S. Arts. 6538, 6539.)
912	912	Sec. 131.016. TIME REQUIRED FOR CONSTRUCTION. The rights
913	913	secured under this chapter by an interurban electric railway
914	914	company are void unless the road to be constructed under the charter
915	915	of the company is fully constructed from one municipality to
916	916	another within 12 months of the date of the final judgment awarding
917	917	the company an easement or right-of-way under Section 131.015.
918	918	(V.A.C.S. Art. 6540 (part).)
919	919	Sec. 131.017. USE OF CONDEMNED TRACK. (a) Unless the
920	920	company whose track is condemned under this subchapter consents, an
921	921	interurban electric railway company exercising the powers granted
922	922	under this chapter may not receive for transportation freight or
923	923	passengers at any location on the condemned track destined to
924	924	another location on the condemned track.
925	925	(b) A company that wilfully violates Subsection (a)
926	926	forfeits the easement or right-of-way used to provide the
927	927	transportation. (V.A.C.S. Art. 6540 (part).)
928	928	[Sections 131.018-131.030 reserved for expansion]
929	929	SUBCHAPTER C. MERGER OF INTERURBAN RAILWAY
930	930	Sec. 131.031. DEFINITION. In this subchapter, "interurban
931	931	railway" means an electric or other interurban line of railway in
932	932	this state. (V.A.C.S. Art. 6543 (part).)
933	933	Sec. 131.032. ACQUISITION OF RAILWAY PROPERTY AUTHORIZED.
934	934	(a) A corporation organized under the laws of this state that is
935	935	authorized to construct, acquire, and operate an interurban railway
936	936	may:
937	937	(1) acquire, lease, or purchase the physical property,
938	938	rights, and franchise of any other railway corporation with similar
939	939	powers; or
940	940	(2) lease or purchase physical property, rights, and
941	941	franchises of any suburban or street railway corporation the
942	942	railway lines of which are to be operated in connection with the
943	943	interurban railway.
944	944	(b) The owner of physical property or a right or franchise
945	945	described by Subsection (a)(1) or (2) may sell or dispose of the
946	946	property, right, or franchise to the corporation making an
947	947	acquisition, lease, or purchase under Subsection (a).
948	948	(c) An acquisition or purchase under this section may be on
949	949	the terms:
950	950	(1) agreed to by the board of directors of each
951	951	corporation; and
952	952	(2) authorized or approved by a majority of the
953	953	stockholders of each corporation. (V.A.C.S. Art. 6543 (part).)
954	954	Sec. 131.033. MUNICIPAL CONSENT REQUIRED. (a) Before
955	955	selling property under this subchapter, a corporation that owns or
956	956	operates a street car railway must obtain the consent of the
957	957	governing body of the municipality in which the street car line is
958	958	located.
959	959	(b) This subchapter does not affect a charter provision of a
960	960	municipality that provides for the right of qualified voters of the
961	961	municipality to vote on the granting or amending of franchise to a
962	962	street or interurban railway. (V.A.C.S. Art. 6543 (part).)
963	963	Sec. 131.034. USE OF STREET RAILWAYS. A corporation
964	964	authorized to construct, acquire, and operate an interurban railway
965	965	and a corporation owning and operating a street railway may enter
966	966	into a trackage or lease contract to allow for continuous passage
967	967	into or through a municipality, subject to the consent of the
968	968	governing body of the municipality. (V.A.C.S. Art. 6543 (part).)
969	969	Sec. 131.035. LIMITATION ON ACQUISITION. A corporation
970	970	described by this subchapter may not:
971	971	(1) acquire, own, control, or operate a parallel or
972	972	competing interurban line; or
973	973	(2) purchase, lease, acquire, own, or control,
974	974	directly or indirectly, the shares or certificates of stock or
975	975	bonds, a franchise or other right, or the physical property or any
976	976	part of the property, of any corporation in violation of the law
977	977	commonly known as the antitrust law. (V.A.C.S. Art. 6543 (part).)
978	978	[Sections 131.036-131.060 reserved for expansion]
979	979	SUBCHAPTER D. PROVISION OF UTILITIES
980	980	Sec. 131.061. INTERURBAN ELECTRIC RAILWAYS. An interurban
981	981	electric railway company, as defined by Section 131.011, is
982	982	entitled to produce, supply, and sell electric light and power to
983	983	the public and to municipalities. (V.A.C.S. Art. 6541.)
984	984	Sec. 131.062. SUPPLY AND SALE OF ELECTRICITY BY STREET,
985	985	SUBURBAN, OR BELT LINE RAILWAY. A corporation organized under the
986	986	general laws of this state that owns or operates with electric power
987	987	any street or suburban railway or belt line of railways in and near
988	988	a municipality for the transportation of freight and passengers
989	989	within this state may:
990	990	(1) supply and sell electric light and power to the
991	991	public or a municipality;
992	992	(2) acquire or otherwise provide appliances necessary
993	993	for an activity authorized by Subdivision (1); and
994	994	(3) in the manner provided by law, amend its articles
995	995	of incorporation to expressly include the authority under this
996	996	section. (V.A.C.S. Art. 6545 (part).)
997	997	[Sections 131.063-131.100 reserved for expansion]
998	998	SUBCHAPTER E. REDUCED STREET RAILWAY FARES
999	999	Sec. 131.101. APPLICABILITY. This subchapter applies only
1000	1000	to a person or corporation owning or operating a street railway in
1001	1001	or on the public streets of a municipality with a population of
1002	1002	40,000 or more. (V.A.C.S. Art. 6544 (part).)
1003	1003	Sec. 131.102. CHILDREN YOUNGER THAN 13 YEARS OF AGE.
1004	1004	(a) The owner or operator of a street railway shall transport a
1005	1005	child younger than 13 years of age for half the fare regularly
1006	1006	collected for the transportation of an adult.
1007	1007	(b) This section does not apply to the transportation of a
1008	1008	child to or from a school or other institution of learning located
1009	1009	one mile or more outside the corporate limits of the municipality in
1010	1010	which the street car operates. (V.A.C.S. Art. 6544 (part).)
1011	1011	Sec. 131.103. STUDENTS. (a) The owner or operator of a
1012	1012	street railway shall sell or provide for the sale of tickets for
1013	1013	half of the regular fare collected for the transportation of adults
1014	1014	to students younger than 18 years of age who attend academic,
1015	1015	public, or private school in a grade not higher than the highest
1016	1016	grade of the public high schools located in or adjacent to the
1017	1017	municipality in which the railway is located.
1018	1018	(b) Tickets under this section must be sold in lots of 20,
1019	1019	with each ticket valid for one trip over the railway lines.
1020	1020	(c) Tickets under this section are not required to be sold
1021	1021	unless the student making the purchase presents the written
1022	1022	certificate of the principal of the school the student attends
1023	1023	stating that the student:
1024	1024	(1) is younger than 18 years of age; and
1025	1025	(2) is in regular attendance at a school in a grade
1026	1026	that qualifies under Subsection (a).
1027	1027	(d) Tickets under this section are not required to be sold
1028	1028	and may not be used except during the months when a school
1029	1029	qualifying under Subsection (a) is in session.
1030	1030	(e) A student described by Subsection (a) shall be
1031	1031	transported at half fare only when the student presents a ticket
1032	1032	issued under this section. (V.A.C.S. Art. 6544 (part).)
1033	1033	Sec. 131.104. CHILDREN YOUNGER THAN SIX YEARS OF AGE. The
1034	1034	owner or operator of a street railway shall transport free of charge
1035	1035	a child younger than six years of age when attended by a passenger
1036	1036	who is at least six years of age. (V.A.C.S. Art. 6544 (part).)
1037	1037	Sec. 131.105. TRANSFER RIGHTS. The owner or operator of a
1038	1038	street railway shall offer a passenger paying a reduced fare or no
1039	1039	fare under this subchapter the same rights as to the use of
1040	1040	transfers issued by the owner or operator's line or other lines as
1041	1041	offered to a passenger paying full fare. (V.A.C.S. Art. 6544
1042	1042	(part).)
1043	1043	[Sections 131.106-131.900 reserved for expansion]
1044	1044	SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
1045	1045	Sec. 131.901. STREET AND SUBURBAN RAILWAYS. (a) Street
1046	1046	and suburban railways engaged in the transportation of freight in
1047	1047	and near a municipality are subject to the control of the
1048	1048	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.
1420	1420	3A(e), 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.
1433	1433	3A(e), 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)
1445	1445	(part).)
1446	1446	Sec. 172.109. EMPLOYEES. The board may employ and
1447	1447	compensate persons to carry out the powers and duties of the
1448	1448	district. (V.A.C.S. Art. 6550c, Sec. 4(d) (part).)
1449	1449	Sec. 172.110. PECUNIARY INTEREST IN CERTAIN CONTRACTS
1450	1450	PROHIBITED. A district employee may not have a direct or indirect
1451	1451	pecuniary interest in any contract or agreement to which the
1452	1452	district is a party. (V.A.C.S. Art. 6550c, Sec. 4(e).)
1453	1453	[Sections 172.111-172.150 reserved for expansion]
1454	1454	SUBCHAPTER D. GENERAL POWERS AND DUTIES
1455	1455	Sec. 172.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
1456	1456	FUNCTIONS. (a) A district has all powers necessary or convenient
1457	1457	to carry out the purposes of this chapter.
1458	1458	(b) A district may generally perform all acts necessary for
1459	1459	the full exercise of the district's powers. (V.A.C.S. Art. 6550c,
1460	1460	Secs. 5(a) (part), (k) (part).)
1461	1461	Sec. 172.152. RULES. To protect the state's health,
1462	1462	safety, and general welfare, a district may adopt rules to govern
1463	1463	the operation of the district, its employees, the rail facilities,
1464	1464	service provided by the district, and any other necessary matter
1465	1465	concerning its purposes, including rules regarding health, safety,
1466	1466	alcohol or beverage service, food service, or telephone or utility
1467	1467	service. (V.A.C.S. Art. 6550c, Sec. 5(h).)
1468	1468	Sec. 172.153. AGREEMENTS GENERALLY. A district may make
1469	1469	contracts, leases, and agreements with the United States, this
1470	1470	state and its agencies and political subdivisions, public or
1471	1471	private corporations, and any other person. (V.A.C.S. Art. 6550c,
1472	1472	Sec. 5(k) (part).)
1473	1473	Sec. 172.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
1474	1474	A district may:
1475	1475	(1) enter into agreements with a public utility,
1476	1476	private utility, communication system, common carrier, or
1477	1477	transportation system for the joint use of its facilities,
1478	1478	installations, or property inside or outside the district; and
1479	1479	(2) establish:
1480	1480	(A) through routes;
1481	1481	(B) joint fares; and
1482	1482	(C) divisions of tariffs, subject to approval of
1483	1483	a tariff-regulating body that has jurisdiction. (V.A.C.S. Art.
1484	1484	6550c, Sec. 5(g).)
1485	1485	Sec. 172.155. JOINT OWNERSHIP AGREEMENTS. A district may
1486	1486	enter into a joint ownership agreement with any person. (V.A.C.S.
1487	1487	Art. 6550c, Sec. 5(i).)
1488	1488	Sec. 172.156. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
1489	1489	(a) A contract in the amount of more than $15,000 for the
1490	1490	construction of improvements or the purchase of material,
1491	1491	machinery, equipment, supplies, or any other property except real
1492	1492	property may be awarded only through competitive bidding after
1493	1493	notice is published in a newspaper of general circulation in the
1494	1494	district at least 15 days before the date set for receiving bids.
1495	1495	(b) A board may adopt rules governing the taking of bids and
1496	1496	the awarding of contracts.
1497	1497	(c) This section does not apply to:
1498	1498	(1) personal or professional services; or
1499	1499	(2) the acquisition of an existing rail transportation
1500	1500	system. (V.A.C.S. Art. 6550c, Sec. 7.)
1501	1501	Sec. 172.157. EMINENT DOMAIN. (a) A district may exercise
1502	1502	the power of eminent domain to acquire:
1503	1503	(1) land in fee simple; or
1504	1504	(2) any interest less than fee simple in, on, under, or
1505	1505	above land, including an easement, right-of-way, or right of use of
1506	1506	airspace or subsurface space.
1507	1507	(b) A district may not exercise the power of eminent domain
1508	1508	in a manner that would unduly interfere with interstate commerce.
1509	1509	(c) An eminent domain proceeding brought by a district is
1510	1510	governed by Chapter 21, Property Code, except to the extent
1511	1511	inconsistent with this chapter.
1512	1512	(d) An eminent domain proceeding is begun by the board's
1513	1513	adoption of a resolution declaring that the district's acquisition
1514	1514	of the property or interest described in the resolution:
1515	1515	(1) is a public necessity; and
1516	1516	(2) is necessary and proper for the construction,
1517	1517	extension, improvement, or development of rail facilities and is in
1518	1518	the public interest.
1519	1519	(e) The resolution is conclusive evidence of the public
1520	1520	necessity of the proposed acquisition and that the real property or
1521	1521	interest in property is necessary for public use. (V.A.C.S.
1522	1522	Art. 6550c, Sec. 5(f).)
1523	1523	Sec. 172.158. DISPOSITION OF SURPLUS PROPERTY. (a) A
1524	1524	district may sell, lease, convey, or otherwise dispose of any
1525	1525	right, interest, or property not needed for or, in the case of a
1526	1526	lease, not inconsistent with the efficient operation and
1527	1527	maintenance of the system.
1528	1528	(b) A district may, on adoption of an order by the board,
1529	1529	sell, lease, or otherwise dispose of surplus property not needed
1530	1530	for district requirements or to carry out district powers under
1531	1531	this chapter. (V.A.C.S. Art. 6550c, Sec. 5(l).)
1532	1532	Sec. 172.159. SUITS. (a) A district may:
1533	1533	(1) sue and be sued;
1534	1534	(2) institute and prosecute suits without giving
1535	1535	security for costs; and
1536	1536	(3) appeal from a judgment without giving a
1537	1537	supersedeas or cost bond.
1538	1538	(b) An action at law or in equity against the district must
1539	1539	be brought in the county in which the principal office of the
1540	1540	district is located, except that a suit in eminent domain must be
1541	1541	brought in the county in which the land is located. (V.A.C.S. Art.
1542	1542	6550c, Sec. 5(c).)
1543	1543	Sec. 172.160. PERPETUAL SUCCESSION. A district has
1544	1544	perpetual succession. (V.A.C.S. Art. 6550c, Sec. 5(b).)
1545	1545	[Sections 172.161-172.200 reserved for expansion]
1546	1546	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
1547	1547	CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
1548	1548	Sec. 172.201. GENERAL AUTHORITY OVER RAIL FACILITIES. A
1549	1549	district may plan, acquire, construct, complete, develop, own,
1550	1550	operate, and maintain rail facilities inside or outside the
1551	1551	district. (V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
1552	1552	Sec. 172.202. USE AND ALTERATION OF PROPERTY OF ANOTHER
1553	1553	POLITICAL SUBDIVISION. For a purpose described by Section 172.201,
1554	1554	as necessary or useful in the construction, reconstruction, repair,
1555	1555	maintenance, and operation of rail facilities, and subject to a
1556	1556	grant previously secured or with the consent of a municipality,
1557	1557	county, or other political subdivision, a district may:
1558	1558	(1) use streets, alleys, roads, highways, and other
1559	1559	public ways of the political subdivision; and
1560	1560	(2) relocate, raise, reroute, change the grade of, or
1561	1561	alter, at the district's expense, the construction of a publicly
1562	1562	owned or privately owned street, alley, highway, road, railroad,
1563	1563	electric line or facility, telegraph or telephone property or
1564	1564	facility, pipeline or facility, conduit or facility, and other
1565	1565	property. (V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
1566	1566	Sec. 172.203. RULES GOVERNING SYSTEM; ROUTINGS. A district
1567	1567	by resolution may adopt rules governing the use, operation, and
1568	1568	maintenance of the system and shall determine all routings and
1569	1569	change them when the board considers it advisable. (V.A.C.S. Art.
1570	1570	6550c, Sec. 5(m).)
1571	1571	Sec. 172.204. ACQUISITION OF PROPERTY. (a) A district may
1572	1572	purchase, whenever the district considers the purchase expedient,
1573	1573	land, property rights, right-of-way, franchises, easements, and
1574	1574	other interests in land the district considers necessary to
1575	1575	acquire, construct, or operate a rail facility on terms and at a
1576	1576	price to which the district and the owner agree.
1577	1577	(b) The district may take title to the land or interest in
1578	1578	the district's name.
1579	1579	(c) The governing body of a municipality, a county, any
1580	1580	other political subdivision, or a public agency may convey without
1581	1581	advertisement the title or the rights and easements to property
1582	1582	needed by the district for its purposes in connection with the
1583	1583	acquisition, construction, or operation of rail facilities.
1584	1584	(V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
1585	1585	Sec. 172.205. POWERS RELATING TO DISTRICT PROPERTY. A
1586	1586	district may acquire by grant, purchase, gift, devise, lease, or
1587	1587	otherwise and may hold, use, sell, lease, or dispose of property,
1588	1588	including a license, a patent, a right, or an interest, necessary,
1589	1589	convenient, or useful for the full exercise of its powers under this
1590	1590	chapter. (V.A.C.S. Art. 6550c, Sec. 5(d).)
1591	1591	Sec. 172.206. ACQUISITION OF ROLLING STOCK AND OTHER
1592	1592	PROPERTY. A district may acquire rolling stock or other property,
1593	1593	under a conditional sales contract, lease, equipment trust
1594	1594	certificate, or other form of contract or trust agreement.
1595	1595	(V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
1596	1596	Sec. 172.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
1597	1597	(a) A district shall establish and maintain reasonable and
1598	1598	nondiscriminatory rents or other compensation for the use of the
1599	1599	facilities of the system acquired, constructed, operated,
1600	1600	regulated, or maintained by the district.
1601	1601	(b) Together with grants received by the district, the rents
1602	1602	or other compensation must be sufficient to produce revenue
1603	1603	adequate to:
1604	1604	(1) pay all expenses necessary for the operation and
1605	1605	maintenance of the district's property and facilities;
1606	1606	(2) pay the principal of and interest on all bonds
1607	1607	issued by the district payable wholly or partly from the revenue, as
1608	1608	they become due and payable; and
1609	1609	(3) fulfill the terms of agreements made with the
1610	1610	holders of bonds or with any person on their behalf. (V.A.C.S.
1611	1611	Art. 6550c, Sec. 5(j).)
1612	1612	Sec. 172.208. OPERATION OR USE CONTRACTS. (a) A district
1613	1613	may:
1614	1614	(1) lease all or part of the rail facilities to any
1615	1615	operator; or
1616	1616	(2) contract for the use or operation of all or part of
1617	1617	the rail facilities by any operator.
1618	1618	(b) To the maximum extent practicable, the district shall
1619	1619	encourage the participation of private enterprise in the operation
1620	1620	of rail facilities.
1621	1621	(c) The term of an operating contract under this section may
1622	1622	not exceed 20 years. In this subsection, "operating contract"
1623	1623	means a professional services contract executed by a district and
1624	1624	another person under which the person agrees to provide all or part
1625	1625	of the:
1626	1626	(1) rolling stock required for operation as a common
1627	1627	carrier over all or a part of the rail facilities of the district;
1628	1628	and
1629	1629	(2) personnel required for the operation of the
1630	1630	rolling stock owned or leased by the district or for the operation
1631	1631	of the rail facilities of the district. (V.A.C.S. Art. 6550c,
1632	1632	Secs. 2(7), 5(n).)
1633	1633	Sec. 172.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
1634	1634	OTHER POLITICAL SUBDIVISIONS. A district may contract with a
1635	1635	county or other political subdivision of this state for the
1636	1636	district to provide rail transportation services to an area outside
1637	1637	the district on terms to which the parties agree. (V.A.C.S. Art.
1638	1638	6550c, Sec. 5(o).)
1639	1639	Sec. 172.210. ABANDONMENT OF RAIL LINE. (a) A district
1640	1640	may not abandon a district rail line for which state money has been
1641	1641	loaned or granted unless the abandonment is approved by the
1642	1642	commission as being consistent with the policies of this chapter.
1643	1643	(b) The commission by rule shall adopt procedures for
1644	1644	applying for and obtaining approval for abandonment under this
1645	1645	section. (V.A.C.S. Art. 6550c, Sec. 5(r).)
1646	1646	[Sections 172.211-172.250 reserved for expansion]
1647	1647	SUBCHAPTER F. FINANCIAL PROVISIONS
1648	1648	Sec. 172.251. FISCAL YEAR. (a) Unless the board changes
1649	1649	the fiscal year, the district's fiscal year ends on September 30.
1650	1650	(b) The board may not change the fiscal year more than once
1651	1651	in a three-year period. (V.A.C.S. Art. 6550c, Sec. 5(p) (part).)
1652	1652	Sec. 172.252. ANNUAL BUDGET. (a) Before beginning the
1653	1653	operation of rail facilities, the board shall adopt an annual
1654	1654	operating budget specifying the district's anticipated revenue and
1655	1655	expenses for the remainder of the fiscal year. The district shall
1656	1656	adopt an operating budget for each succeeding fiscal year.
1657	1657	(b) The board must hold a public hearing before adopting
1658	1658	each budget except the initial budget. Notice of the hearing must
1659	1659	be published at least seven days before the date of the hearing in a
1660	1660	newspaper of general circulation in the district.
1661	1661	(c) A budget may be amended at any time if notice of the
1662	1662	proposed amendment is given in the notice of meeting.
1663	1663	(d) An expenditure that is not budgeted may not be made.
1664	1664	(V.A.C.S. Art. 6550c, Sec. 5(p) (part).)
1665	1665	Sec. 172.253. GRANTS AND LOANS. A district may accept a
1666	1666	grant or loan from the United States, this state and its agencies
1667	1667	and political subdivisions, public or private corporations, and any
1668	1668	other person. (V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
1669	1669	Sec. 172.254. DEPOSITORY. (a) The board by resolution
1670	1670	shall name one or more banks for the deposit of district funds.
1671	1671	(b) District funds are public funds and may be invested in
1672	1672	securities permitted by Chapter 2256, Government Code.
1673	1673	(c) To the extent district funds are not insured by the
1674	1674	Federal Deposit Insurance Corporation or its successor, the funds
1675	1675	shall be collateralized in the manner provided for county funds.
1676	1676	(V.A.C.S. Art. 6550c, Sec. 5(q).)
1677	1677	Sec. 172.255. APPLICABILITY OF PUBLIC PROPERTY FINANCING
1678	1678	LAW; PROHIBITION ON AD VALOREM TAX. A district may use the
1679	1679	procedures provided by Chapter 271, Local Government Code, to
1680	1680	finance the district's rail facilities, except to the extent of a
1681	1681	conflict with this chapter, and except that the district may not
1682	1682	impose an ad valorem tax. (V.A.C.S. Art. 6550c, Sec. 6A(a).)
1683	1683	Sec. 172.256. NONNEGOTIABLE PURCHASE MONEY NOTES; BOND
1684	1684	ANTICIPATION NOTES. (a) A district may:
1685	1685	(1) issue nonnegotiable purchase money notes, payable
1686	1686	in installments and secured by the property being acquired or
1687	1687	constructed, to acquire or construct rail facilities; or
1688	1688	(2) secure the obligation of the notes by a pledge or
1689	1689	by issuing bonds, including bond anticipation notes.
1690	1690	(b) A district may covenant with the purchaser of bond
1691	1691	anticipation notes that the proceeds of one or more particular
1692	1692	series of bonds will be used for the ultimate payment of the
1693	1693	purchase money notes or bond anticipation notes. (V.A.C.S.
1694	1694	Art. 6550c, Sec. 6A(b).)
1695	1695	Sec. 172.257. TAX EXEMPTION. District property and revenue
1696	1696	and the interest on bonds issued by the district are exempt from any
1697	1697	tax imposed by this state or a political subdivision of this state.
1698	1698	(V.A.C.S. Art. 6550c, Sec. 8.)
1699	1699	[Sections 172.258-172.300 reserved for expansion]
1700	1700	SUBCHAPTER G. BONDS
1701	1701	Sec. 172.301. REVENUE BONDS. A district, by board
1702	1702	resolution, may issue revenue bonds in amounts that the board
1703	1703	considers necessary or appropriate for the acquisition, purchase,
1704	1704	construction, reconstruction, repair, equipping, improvement, or
1705	1705	extension of its rail facilities. (V.A.C.S. Art. 6550c, Secs. 6(a)
1706	1706	(part), (e).)
1707	1707	Sec. 172.302. SECURITY FOR PAYMENT OF BONDS. (a) To
1708	1708	secure payment of district bonds, the district may:
1709	1709	(1) encumber and pledge all or part of the revenue of
1710	1710	its rail facilities; and
1711	1711	(2) encumber all or part of the property of the rail
1712	1712	facilities and everything pertaining to them acquired or to be
1713	1713	acquired.
1714	1714	(b) Unless prohibited by the resolution or indenture
1715	1715	relating to outstanding bonds, a district may encumber separately
1716	1716	any item of property. (V.A.C.S. Art. 6550c, Sec. 6(c) (part).)
1717	1717	Sec. 172.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
1718	1718	FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds are legal and
1719	1719	authorized investments for:
1720	1720	(1) a bank;
1721	1721	(2) a trust company;
1722	1722	(3) a savings and loan association; and
1723	1723	(4) an insurance company.
1724	1724	(b) The bonds are:
1725	1725	(1) eligible to secure the deposit of public funds of
1726	1726	this state or a municipality, a county, a school district, or any
1727	1727	other political corporation or subdivision of this state; and
1728	1728	(2) lawful and sufficient security for the deposit to
1729	1729	the extent of the principal amount or market value of the bonds,
1730	1730	whichever is less. (V.A.C.S. Art. 6550c, Sec. 6(d).)
1731	1731	Sec. 172.304. APPLICABILITY OF PUBLIC IMPROVEMENT
1732	1732	FINANCING LAW. For purposes of Chapter 1371, Government Code:
1733	1733	(1) a district is an issuer; and
1734	1734	(2) the acquisition, improvement, or repair of rail
1735	1735	facilities by a district is an eligible project. (V.A.C.S. Art.
1736	1736	6550c, Sec. 5(a) (part).)
1737	1737	Sec. 172.305. LIMIT ON POWER. A revenue bond indenture may
1738	1738	limit the exercise of the power granted by Section 172.002,
1739	1739	172.151, 172.152, 172.153, 172.154, 172.155, 172.157, 172.158,
1740	1740	172.159, 172.160, 172.201, 172.202, 172.203, 172.204, 172.205,
1741	1741	172.206, 172.207, 172.208, 172.209, 172.210, 172.251, 172.252,
1742	1742	172.253, 172.254, or 172.304. The limitation applies while any of
1743	1743	the revenue bonds issued under the indenture are outstanding and
1744	1744	unpaid. (V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
1745	1745	Sec. 172.306. EXEMPTION FROM REVIEW OF NOTES BY ATTORNEY
1746	1746	GENERAL. District notes authorized to be issued to an agency of the
1747	1747	federal or state government, and related records, are not required
1748	1748	to be submitted to the attorney general for examination under
1749	1749	Chapter 1202, Government Code. (V.A.C.S. Art. 6550c, Sec. 6(b)
1750	1750	(part).)
1751	1751	CHAPTER 173. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
1752	1752	SUBCHAPTER A. GENERAL PROVISIONS
1753	1753	Sec. 173.001. DEFINITION OF PERSON
1754	1754	Sec. 173.002. DEFINITIONS
1755	1755	Sec. 173.003. LOCATION OF MUNICIPALITY IN COUNTY
1756	1756	Sec. 173.004. NATURE OF DISTRICT
1757	1757	Sec. 173.005. SUNSET PROVISION
1758	1758	[Sections 173.006-173.050 reserved for expansion]
1759	1759	SUBCHAPTER B. CREATION
1760	1760	Sec. 173.051. CREATION OF DISTRICT
1761	1761	Sec. 173.052. ADDITION OF POLITICAL SUBDIVISION TO
1762	1762	DISTRICT
1763	1763	[Sections 173.053-173.100 reserved for expansion]
1764	1764	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
1765	1765	Sec. 173.101. CONTROL OF DISTRICT
1766	1766	Sec. 173.102. COMPOSITION OF BOARD; TERMS
1767	1767	Sec. 173.103. VACANCY
1768	1768	Sec. 173.104. PRESIDING OFFICER
1769	1769	Sec. 173.105. MEETINGS
1770	1770	Sec. 173.106. BOARD MEETINGS BY TELEPHONE OR
1771	1771	VIDEOCONFERENCE
1772	1772	Sec. 173.107. RULES FOR PROCEEDINGS
1773	1773	Sec. 173.108. COMPENSATION; REIMBURSEMENT
1774	1774	Sec. 173.109. EMPLOYEES
1775	1775	Sec. 173.110. EXECUTIVE COMMITTEE
1776	1776	Sec. 173.111. RETIREMENT BENEFITS
1777	1777	[Sections 173.112-173.150 reserved for expansion]
1778	1778	SUBCHAPTER D. GENERAL POWERS AND DUTIES
1779	1779	Sec. 173.151. GENERAL POWERS OF DISTRICT
1780	1780	Sec. 173.152. RULES
1781	1781	Sec. 173.153. AGREEMENTS GENERALLY
1782	1782	Sec. 173.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
1783	1783	USE
1784	1784	Sec. 173.155. JOINT OWNERSHIP AGREEMENTS
1785	1785	Sec. 173.156. EXCLUSIVE DEVELOPMENT AGREEMENTS
1786	1786	Sec. 173.157. INTERLOCAL AGREEMENTS WITH COMMISSION
1787	1787	Sec. 173.158. AWARDING CONSTRUCTION OR PURCHASE
1788	1788	CONTRACTS
1789	1789	Sec. 173.159. EMINENT DOMAIN
1790	1790	Sec. 173.160. SUITS
1791	1791	[Sections 173.161-173.200 reserved for expansion]
1792	1792	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
1793	1793	CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
1794	1794	Sec. 173.201. GENERAL AUTHORITY OVER COMMUTER RAIL
1795	1795	FACILITIES
1796	1796	Sec. 173.202. POWERS RELATING TO DISTRICT PROPERTY
1797	1797	Sec. 173.203. USE AND ALTERATION OF PROPERTY OF
1798	1798	ANOTHER POLITICAL SUBDIVISION
1799	1799	Sec. 173.204. RULES GOVERNING SYSTEM AND ROUTINGS
1800	1800	Sec. 173.205. ACQUISITION OF PROPERTY
1801	1801	Sec. 173.206. ACQUISITION OF ROLLING STOCK AND OTHER
1802	1802	PROPERTY
1803	1803	Sec. 173.207. COMPENSATION FOR USE OF SYSTEM
1804	1804	FACILITIES
1805	1805	Sec. 173.208. OPERATION OR USE CONTRACTS
1806	1806	Sec. 173.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
1807	1807	WITH OTHER POLITICAL SUBDIVISIONS
1808	1808	[Sections 173.210-173.250 reserved for expansion]
1809	1809	SUBCHAPTER F. FINANCIAL PROVISIONS
1810	1810	Sec. 173.251. FISCAL YEAR
1811	1811	Sec. 173.252. ANNUAL BUDGET
1812	1812	Sec. 173.253. GRANTS AND LOANS
1813	1813	Sec. 173.254. DEPOSITORY
1814	1814	Sec. 173.255. PURCHASE OF ADDITIONAL INSURED
1815	1815	PROVISIONS
1816	1816	Sec. 173.256. FINANCING OF CERTAIN TRANSPORTATION
1817	1817	INFRASTRUCTURE
1818	1818	Sec. 173.257. TAX EXEMPTION
1819	1819	[Sections 173.258-173.300 reserved for expansion]
1820	1820	SUBCHAPTER G. BONDS
1821	1821	Sec. 173.301. REVENUE BONDS
1822	1822	Sec. 173.302. SECURITY FOR PAYMENT OF BONDS
1823	1823	Sec. 173.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY FOR
1824	1824	DEPOSITS OF PUBLIC FUNDS
1825	1825	Sec. 173.304. LIMIT ON POWER
1826	1826	[Sections 173.305-173.350 reserved for expansion]
1827	1827	SUBCHAPTER H. SALES AND USE TAXES
1828	1828	Sec. 173.351. TAX AUTHORIZED
1829	1829	Sec. 173.352. TAX RATE
1830	1830	Sec. 173.353. PREEMPTION OF OTHER SALES AND USE TAXES
1831	1831	Sec. 173.354. APPLICABILITY OF TAX CODE
1832	1832	Sec. 173.355. NOTICE TO COMPTROLLER
1833	1833	Sec. 173.356. NOTICE TO LOCAL GOVERNMENTS
1834	1834	Sec. 173.357. ACQUISITION OF ADDITIONAL TERRITORY
1835	1835	SUBJECT TO TAX
1836	1836	Sec. 173.358. DUTY OF COMPTROLLER
1837	1837	Sec. 173.359. EFFECTIVE DATE OF TAX
1838	1838	CHAPTER 173. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
1839	1839	SUBCHAPTER A. GENERAL PROVISIONS
1840	1840	Sec. 173.001. DEFINITION OF PERSON. In this chapter:
1841	1841	(1) "person" includes a corporation, as provided by
1842	1842	Section 312.011, Government Code; and
1843	1843	(2) the definition of "person" assigned by Section
1844	1844	311.005, Government Code, does not apply. (New.)
1845	1845	Sec. 173.002. DEFINITIONS. In this chapter:
1846	1846	(1) "Board" means a district's board of directors.
1847	1847	(2) "Commuter rail facility" means any property
1848	1848	necessary for the transportation of passengers and baggage between
1849	1849	locations in a district. The term includes rolling stock,
1850	1850	locomotives, stations, parking areas, and rail lines.
1851	1851	(3) "Creating municipality" means a municipality
1852	1852	described by Section 173.051(a).
1853	1853	(4) "Director" means a board member.
1854	1854	(5) "District" means an intermunicipal commuter rail
1855	1855	district created under this chapter or under Article 6550c-1,
1856	1856	Revised Statutes, as that article existed before April 1, 2011.
1857	1857	(6) "District property" means property the district
1858	1858	owns or leases under a long-term lease.
1859	1859	(7) "System" means all of the commuter rail and
1860	1860	intermodal facilities leased or owned by or operated on behalf of a
1861	1861	district. (V.A.C.S. Art. 6550c-1, Secs. 1(2), (3), (5), (6), (7);
1862	1862	New.)
1863	1863	Sec. 173.003. LOCATION OF MUNICIPALITY IN COUNTY. For
1864	1864	purposes of this chapter, a municipality is located in a county only
1865	1865	if 90 percent or more of the population of the municipality resides
1866	1866	in that county. (V.A.C.S. Art. 6550c-1, Sec. 2(d).)
1867	1867	Sec. 173.004. NATURE OF DISTRICT. (a) A district is a
1868	1868	public body and a political subdivision of this state exercising
1869	1869	public and essential governmental functions.
1870	1870	(b) A district, in the exercise of powers under this
1871	1871	chapter, is performing only governmental functions and is a
1872	1872	governmental unit under Chapter 101, Civil Practice and Remedies
1873	1873	Code. (V.A.C.S. Art. 6550c-1, Sec. 4(a) (part).)
1874	1874	Sec. 173.005. SUNSET PROVISION. A district is subject
1875	1875	every 12th year to review under Chapter 325, Government Code (Texas
1876	1876	Sunset Act). (V.A.C.S. Art. 6550c-1, Sec. 4(b).)
1877	1877	[Sections 173.006-173.050 reserved for expansion]
1878	1878	SUBCHAPTER B. CREATION
1879	1879	Sec. 173.051. CREATION OF DISTRICT. (a) A district may be
1880	1880	created to provide commuter rail service between two
1881	1881	municipalities:
1882	1882	(1) each of which has a population of more than
1883	1883	450,000; and
1884	1884	(2) that are located not farther than 100 miles
1885	1885	apart as determined by the department.
1886	1886	(b) The creating municipalities and the counties in which
1887	1887	the creating municipalities are located may create a district on
1888	1888	passage of a resolution favoring creation by the governing body of
1889	1889	each municipality or county. (V.A.C.S. Art. 6550c-1, Secs. 2(a),
1890	1890	(b).)
1891	1891	Sec. 173.052. ADDITION OF POLITICAL SUBDIVISION TO
1892	1892	DISTRICT. The following political subdivisions may become a part
1893	1893	of a district with the approval of the governing body of the
1894	1894	political subdivision:
1895	1895	(1) a county located adjacent to the county in which a
1896	1896	creating municipality is located; and
1897	1897	(2) a municipality with a population of more than
1898	1898	18,000 located in a county described by Subdivision (1). (V.A.C.S.
1899	1899	Art. 6550c-1, Sec. 2(c).)
1900	1900	[Sections 173.053-173.100 reserved for expansion]
1901	1901	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
1902	1902	Sec. 173.101. CONTROL OF DISTRICT. A district is governed
1903	1903	by a board of directors. The board is responsible for the
1904	1904	management, operation, and control of the district. (V.A.C.S. Art.
1905	1905	6550c-1, Sec. 3(a).)
1906	1906	Sec. 173.102. COMPOSITION OF BOARD; TERMS. (a) The board
1907	1907	is composed of:
1908	1908	(1) two public directors appointed by the commission;
1909	1909	(2) one elected member of the governing body of each
1910	1910	political subdivision that has become a part of the district under
1911	1911	Subchapter B;
1912	1912	(3) one elected director appointed by the regional
1913	1913	planning organization of which a creating municipality is a part;
1914	1914	(4) one director appointed by each creating
1915	1915	municipality to represent the business community of the
1916	1916	municipality;
1917	1917	(5) one director appointed by each authority created
1918	1918	under Chapter 451 that serves a creating municipality;
1919	1919	(6) one director appointed by each county in which a
1920	1920	creating municipality is located to represent transportation
1921	1921	providers that provide service to rural areas in the county; and
1922	1922	(7) one director appointed by all other directors to
1923	1923	represent all municipalities in the district that do not otherwise
1924	1924	have representation on the board who is an elected official of one
1925	1925	of those municipalities.
1926	1926	(b) Each director serves a staggered two-year term, with as
1927	1927	near as possible to half of the directors' terms expiring February 1
1928	1928	of each year. If one or more directors are added to the board, the
1929	1929	directors other than the new directors shall determine the lengths
1930	1930	of the new directors' terms so that one-half, or as near one-half as
1931	1931	possible, of the directors serve terms expiring each year.
1932	1932	(V.A.C.S. Art. 6550c-1, Secs. 3(b), (c) (part).)
1933	1933	Sec. 173.103. VACANCY. A vacancy on the board shall be
1934	1934	filled in the same manner as the original appointment or election.
1935	1935	(V.A.C.S. Art. 6550c-1, Sec. 3(c) (part).)
1936	1936	Sec. 173.104. PRESIDING OFFICER. (a) The directors shall
1937	1937	elect one member as presiding officer.
1938	1938	(b) The presiding officer may select another director to
1939	1939	preside in the absence of the presiding officer. (V.A.C.S. Art.
1940	1940	6550c-1, Sec. 3(d).)
1941	1941	Sec. 173.105. MEETINGS. The presiding officer shall call
1942	1942	at least one meeting of the board each year and may hold other
1943	1943	meetings as the presiding officer determines are appropriate.
1944	1944	(V.A.C.S. Art. 6550c-1, Sec. 3(e).)
1945	1945	Sec. 173.106. BOARD MEETINGS BY TELEPHONE OR
1946	1946	VIDEOCONFERENCE. (a) Chapter 551, Government Code, does not
1947	1947	prohibit the board from holding an open or closed meeting by
1948	1948	telephone conference call or videoconference.
1949	1949	(b) A meeting held by telephone conference call or
1950	1950	videoconference need not have a quorum present at any one location.
1951	1951	(c) A telephone conference call or videoconference meeting
1952	1952	is subject to the notice requirements applicable to other meetings.
1953	1953	(d) The notice of a telephone conference call or
1954	1954	videoconference meeting must specify each location of the meeting
1955	1955	where a director will participate and the physical location where
1956	1956	the presiding officer of the board will preside. Each of those
1957	1957	locations must be open to the public during the open portion of the
1958	1958	meeting.
1959	1959	(e) Each part of a telephone conference call meeting that is
1960	1960	required to be open to the public must be audible to the public at
1961	1961	each meeting location specified in the notice of the meeting and
1962	1962	shall be tape recorded. The district shall make the tape recording
1963	1963	available to the public.
1964	1964	(f) Each part of a videoconference meeting that is required
1965	1965	to be open to the public must:
1966	1966	(1) be visible and audible to the public at each
1967	1967	meeting location specified in the notice of the meeting; and
1968	1968	(2) have two-way audio and video communications with
1969	1969	each participant in the meeting during the entire meeting.
1970	1970	(g) Without regard to whether a director is participating in
1971	1971	a meeting from a remote location by videoconference call, the board
1972	1972	may allow a member of the public to testify at a meeting from a
1973	1973	remote location by videoconference call. The board shall designate
1974	1974	the location for public participation in the notice of the meeting.
1975	1975	(V.A.C.S. Art. 6550c-1, Sec. 3A.)
1976	1976	Sec. 173.107. RULES FOR PROCEEDINGS. The board shall adopt
1977	1977	rules for its proceedings. (V.A.C.S. Art. 6550c-1, Sec. 3(g)
1978	1978	(part).)
1979	1979	Sec. 173.108. COMPENSATION; REIMBURSEMENT. A director is
1980	1980	not entitled to compensation for serving as a director but is
1981	1981	entitled to reimbursement for reasonable expenses incurred while
1982	1982	serving as a director. (V.A.C.S. Art. 6550c-1, Sec. 3(f).)
1983	1983	Sec. 173.109. EMPLOYEES. The board may employ and
1984	1984	compensate persons to carry out the powers and duties of the
1985	1985	district. (V.A.C.S. Art. 6550c-1, Sec. 3(g) (part).)
1986	1986	Sec. 173.110. EXECUTIVE COMMITTEE. The board shall appoint
1987	1987	an executive committee. (V.A.C.S. Art. 6550c-1, Sec. 3(g) (part).)
1988	1988	Sec. 173.111. RETIREMENT BENEFITS. A district is eligible
1989	1989	to participate in the Texas County and District Retirement System.
1990	1990	(V.A.C.S. Art. 6550c-1, Sec. 4(q).)
1991	1991	[Sections 173.112-173.150 reserved for expansion]
1992	1992	SUBCHAPTER D. GENERAL POWERS AND DUTIES
1993	1993	Sec. 173.151. GENERAL POWERS OF DISTRICT. (a) A district
1994	1994	has all the powers necessary or convenient to carry out the purposes
1995	1995	of this chapter.
1996	1996	(b) A district may generally perform all acts necessary for
1997	1997	the full exercise of the district's powers. (V.A.C.S. Art.
1998	1998	6550c-1, Secs. 4(a) (part), (k) (part).)
1999	1999	Sec. 173.152. RULES. To protect district residents'
2000	2000	health, safety, and general welfare, a district may adopt rules to
2001	2001	govern the operation of the district, its employees, the system,
2002	2002	service provided by the district, and any other necessary matter
2003	2003	concerning its purposes, including rules regarding health, safety,
2004	2004	alcohol or beverage service, food service, or telephone or utility
2005	2005	service. (V.A.C.S. Art. 6550c-1, Sec. 4(h).)
2006	2006	Sec. 173.153. AGREEMENTS GENERALLY. A district may make
2007	2007	contracts, leases, and agreements with the United States, this
2008	2008	state and its agencies and political subdivisions, public or
2009	2009	private corporations, and any other person. (V.A.C.S. Art.
2010	2010	6550c-1, Sec. 4(k) (part).)
2011	2011	Sec. 173.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
2012	2012	A district may:
2013	2013	(1) make agreements with a public utility, private
2014	2014	utility, communication system, common carrier, state agency, or
2015	2015	transportation system for the joint use of facilities,
2016	2016	installations, or property inside or outside the district; and
2017	2017	(2) establish:
2018	2018	(A) through routes;
2019	2019	(B) joint fares; and
2020	2020	(C) divisions of tariffs, subject to approval of
2021	2021	a tariff-regulating body that has jurisdiction. (V.A.C.S. Art.
2022	2022	6550c-1, Sec. 4(g).)
2023	2023	Sec. 173.155. JOINT OWNERSHIP AGREEMENTS. A district may
2024	2024	make a joint ownership agreement with any person. (V.A.C.S. Art.
2025	2025	6550c-1, Sec. 4(i).)
2026	2026	Sec. 173.156. EXCLUSIVE DEVELOPMENT AGREEMENTS. (a) A
2027	2027	board may enter into an exclusive development agreement with a
2028	2028	private entity.
2029	2029	(b) The exclusive development agreement:
2030	2030	(1) at a minimum must provide for the design and
2031	2031	construction of a commuter rail facility or system; and
2032	2032	(2) may provide for the financing, acquisition,
2033	2033	maintenance, or operation of a commuter rail facility or system.
2034	2034	(c) The board may adopt rules governing an agreement under
2035	2035	this section. (V.A.C.S. Art. 6550c-1, Sec. 6A.)
2036	2036	Sec. 173.157. INTERLOCAL AGREEMENTS WITH COMMISSION. The
2037	2037	commission may enter into an interlocal agreement with a district
2038	2038	under which the district may exercise a power or duty of the
2039	2039	commission for the development and efficient operation of
2040	2040	intermodal corridors in the district. (V.A.C.S. Art. 6550c-1, Sec.
2041	2041	4(k) (part).)
2042	2042	Sec. 173.158. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
2043	2043	(a) A contract in the amount of more than $15,000 for the
2044	2044	construction of improvements or the purchase of material,
2045	2045	machinery, equipment, supplies, or any other property except real
2046	2046	property may be awarded only through competitive bidding after
2047	2047	notice is published in a newspaper of general circulation in the
2048	2048	district at least 15 days before the date set for receiving bids.
2049	2049	(b) A board may adopt rules governing the taking of bids and
2050	2050	the awarding of contracts.
2051	2051	(c) This section does not apply to:
2052	2052	(1) personal or professional services;
2053	2053	(2) the acquisition of an existing rail transportation
2054	2054	system;
2055	2055	(3) a contract with a common carrier to construct
2056	2056	lines and to operate commuter rail service on lines wholly or partly
2057	2057	owned by the carrier; or
2058	2058	(4) an agreement with a private entity under Section
2059	2059	173.156. (V.A.C.S. Art. 6550c-1, Sec. 6.)
2060	2060	Sec. 173.159. EMINENT DOMAIN. (a) A district may exercise
2061	2061	the power of eminent domain to acquire:
2062	2062	(1) land in fee simple; or
2063	2063	(2) any interest less than fee simple in, on, under, or
2064	2064	above land, including an easement, right-of-way, or right of use of
2065	2065	airspace or subsurface space.
2066	2066	(b) The power of eminent domain under this section does not
2067	2067	apply to:
2068	2068	(1) land under the jurisdiction of the department or a
2069	2069	metropolitan transit authority; or
2070	2070	(2) a rail line owned by a common carrier or
2071	2071	municipality.
2072	2072	(c) To the extent possible, the district shall use existing
2073	2073	rail or intermodal transportation corridors for the alignment of
2074	2074	its system.
2075	2075	(d) An eminent domain proceeding is begun by the board's
2076	2076	adoption of a resolution declaring that the district's acquisition
2077	2077	of the property or interest described in the resolution:
2078	2078	(1) is a public necessity; and
2079	2079	(2) is necessary and proper for the construction,
2080	2080	extension, improvement, or development of commuter rail facilities
2081	2081	and is in the public interest.
2082	2082	(e) The resolution is conclusive evidence of the public
2083	2083	necessity of the proposed acquisition and that the real property or
2084	2084	interest in property is necessary for public use. (V.A.C.S. Art.
2085	2085	6550c-1, Sec. 4(f).)
2086	2086	Sec. 173.160. SUITS. (a) A district may:
2087	2087	(1) sue and be sued;
2088	2088	(2) institute and prosecute suits without giving
2089	2089	security for costs; and
2090	2090	(3) appeal from a judgment without giving a
2091	2091	supersedeas or cost bond.
2092	2092	(b) An action at law or in equity against the district must
2093	2093	be brought in the county in which a principal office of the district
2094	2094	is located, except that a suit in eminent domain must be brought in
2095	2095	the county in which the land is located. (V.A.C.S. Art. 6550c-1,
2096	2096	Sec. 4(c).)
2097	2097	[Sections 173.161-173.200 reserved for expansion]
2098	2098	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
2099	2099	CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
2100	2100	Sec. 173.201. GENERAL AUTHORITY OVER COMMUTER RAIL
2101	2101	FACILITIES. A district may acquire, construct, develop, own,
2102	2102	operate, and maintain intermodal and commuter rail facilities
2103	2103	inside, or connect political subdivisions in, the district.
2104	2104	(V.A.C.S. Art. 6550c-1, Sec. 4(e) (part).)
2105	2105	Sec. 173.202. POWERS RELATING TO DISTRICT PROPERTY. A
2106	2106	district may acquire by grant, purchase, gift, devise, lease, or
2107	2107	otherwise and may hold, use, sell, lease, or dispose of property,
2108	2108	including a license, a patent, a right, or an interest, necessary,
2109	2109	convenient, or useful for the full exercise of its powers under this
2110	2110	chapter. (V.A.C.S. Art. 6550c-1, Sec. 4(d).)
2111	2111	Sec. 173.203. USE AND ALTERATION OF PROPERTY OF ANOTHER
2112	2112	POLITICAL SUBDIVISION. (a) For a purpose described by Section
2113	2113	173.201, as necessary or useful in the construction,
2114	2114	reconstruction, repair, maintenance, and operation of the system,
2115	2115	and with the consent of a municipality, county, or other political
2116	2116	subdivision, a district may:
2117	2117	(1) use streets, alleys, roads, highways, and other
2118	2118	public ways of the political subdivision; and
2119	2119	(2) relocate, raise, reroute, change the grade of, or
2120	2120	alter, at the district's expense, the construction of a publicly
2121	2121	owned or privately owned street, alley, highway, road, railroad,
2122	2122	electric line or facility, telegraph or telephone property or
2123	2123	facility, pipeline or facility, conduit or facility, and other
2124	2124	property.
2125	2125	(b) A district may not use or alter:
2126	2126	(1) a road or highway in the state highway system
2127	2127	without the permission of the commission; or
2128	2128	(2) a railroad without permission of the railroad.
2129	2129	(V.A.C.S. Art. 6550c-1, Sec. 4(e) (part).)
2130	2130	Sec. 173.204. RULES GOVERNING SYSTEM AND ROUTINGS. A
2131	2131	district by resolution may adopt rules governing the use,
2132	2132	operation, and maintenance of the system and shall determine all
2133	2133	routings and change them when the board considers it advisable.
2134	2134	(V.A.C.S. Art. 6550c-1, Sec. 4(l).)
2135	2135	Sec. 173.205. ACQUISITION OF PROPERTY. (a) A district may
2136	2136	purchase any interest in real property to acquire, construct, or
2137	2137	operate a commuter rail facility on terms and at a price to which
2138	2138	the district and the owner agree.
2139	2139	(b) The governing body of a municipality, a county, any
2140	2140	other political subdivision, or a public agency may convey the
2141	2141	title or the rights and easements to property needed by the district
2142	2142	for its purposes in connection with the acquisition, construction,
2143	2143	or operation of the system. (V.A.C.S. Art. 6550c-1, Sec. 4(e)
2144	2144	(part).)
2145	2145	Sec. 173.206. ACQUISITION OF ROLLING STOCK AND OTHER
2146	2146	PROPERTY. A district may acquire rolling stock or other property
2147	2147	under a conditional sales contract, lease, equipment trust
2148	2148	certificate, or other form of contract or trust agreement.
2149	2149	(V.A.C.S. Art. 6550c-1, Sec. 4(k) (part).)
2150	2150	Sec. 173.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
2151	2151	(a) A district shall establish and maintain reasonable and
2152	2152	nondiscriminatory rates or other compensation for the use of the
2153	2153	facilities of the system acquired, constructed, operated,
2154	2154	regulated, or maintained by the district.
2155	2155	(b) Together with grants received by the district, the rates
2156	2156	or other compensation must be sufficient to produce revenue
2157	2157	adequate to:
2158	2158	(1) pay all expenses necessary for the operation and
2159	2159	maintenance of the district's property and facilities;
2160	2160	(2) pay the principal of and interest on all bonds
2161	2161	issued by the district under this chapter payable wholly or partly
2162	2162	from the revenue, as they become due and payable; and
2163	2163	(3) fulfill the terms of agreements made with the
2164	2164	holders of bonds or with any person on their behalf. (V.A.C.S. Art.
2165	2165	6550c-1, Sec. 4(j).)
2166	2166	Sec. 173.208. OPERATION OR USE CONTRACTS. (a) A district
2167	2167	may:
2168	2168	(1) lease all or part of the commuter rail facilities
2169	2169	to any operator; or
2170	2170	(2) contract for the use or operation of all or part of
2171	2171	the commuter rail facilities by any operator.
2172	2172	(b) To the maximum extent practicable, the district shall
2173	2173	encourage the participation of private enterprise in the operation
2174	2174	of commuter rail facilities.
2175	2175	(c) The term of an operating contract under this section may
2176	2176	not exceed 20 years. (V.A.C.S. Art. 6550c-1, Sec. 4(m).)
2177	2177	Sec. 173.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
2178	2178	OTHER POLITICAL SUBDIVISIONS. A district may contract with a
2179	2179	county or other political subdivision of this state for the
2180	2180	district to provide commuter rail transportation services to an
2181	2181	area outside the district on terms to which the parties agree.
2182	2182	(V.A.C.S. Art. 6550c-1, Sec. 4(n).)
2183	2183	[Sections 173.210-173.250 reserved for expansion]
2184	2184	SUBCHAPTER F. FINANCIAL PROVISIONS
2185	2185	Sec. 173.251. FISCAL YEAR. Unless the board changes the
2186	2186	fiscal year, the district's fiscal year ends on September 30.
2187	2187	(V.A.C.S. Art. 6550c-1, Sec. 4(p) (part).)
2188	2188	Sec. 173.252. ANNUAL BUDGET. (a) Before beginning the
2189	2189	operation of commuter rail facilities, the board shall adopt an
2190	2190	annual operating budget specifying the district's anticipated
2191	2191	revenue and expenses for the remainder of the fiscal year. The
2192	2192	district shall adopt an operating budget for each succeeding fiscal
2193	2193	year.
2194	2194	(b) The board must hold a public hearing before adopting
2195	2195	each budget except the initial budget. Notice of the hearing must
2196	2196	be published at least seven days before the date of the hearing in a
2197	2197	newspaper of general circulation in the district.
2198	2198	(c) A budget may be amended at any time if notice of the
2199	2199	proposed amendment is given in the notice of meeting.
2200	2200	(d) An expenditure that is not budgeted may not be made.
2201	2201	(V.A.C.S. Art. 6550c-1, Sec. 4(p) (part).)
2202	2202	Sec. 173.253. GRANTS AND LOANS. A district may accept
2203	2203	grants and loans from the United States, this state and its agencies
2204	2204	and political subdivisions, public or private corporations, and
2205	2205	other persons. (V.A.C.S. Art. 6550c-1, Sec. 4(k) (part).)
2206	2206	Sec. 173.254. DEPOSITORY. (a) The board by resolution
2207	2207	shall name one or more banks for the deposit of district funds.
2208	2208	(b) District funds are public funds and may be invested in
2209	2209	securities permitted by Chapter 2256, Government Code.
2210	2210	(c) To the extent district funds are not insured by the
2211	2211	Federal Deposit Insurance Corporation or its successor, the funds
2212	2212	shall be collateralized in the manner provided for county funds.
2213	2213	(V.A.C.S. Art. 6550c-1, Sec. 4(r).)
2214	2214	Sec. 173.255. PURCHASE OF ADDITIONAL INSURED PROVISIONS. A
2215	2215	district may purchase an additional insured provision to any
2216	2216	liability insurance contract. (V.A.C.S. Art. 6550c-1, Sec. 4(o).)
2217	2217	Sec. 173.256. FINANCING OF CERTAIN TRANSPORTATION
2218	2218	INFRASTRUCTURE. (a) This section applies only to a local
2219	2219	government, other than a school district, that is a member of a
2220	2220	district and that is authorized to impose ad valorem taxes on real
2221	2221	property.
2222	2222	(b) A district may enter into an interlocal contract with a
2223	2223	local government member for the financing of transportation
2224	2224	infrastructure that is constructed or that is to be constructed in
2225	2225	the territory of the local government by the district.
2226	2226	(c) The agreement must include:
2227	2227	(1) the duration of the agreement;
2228	2228	(2) a description of each transportation
2229	2229	infrastructure project or proposed project;
2230	2230	(3) a map showing the location of each project; and
2231	2231	(4) an estimate of the cost of each project.
2232	2232	(d) The agreement may establish one or more transportation
2233	2233	infrastructure zones. The district and the local government may
2234	2234	agree that, at one or more specified times, the local government
2235	2235	will pay to the district an amount that is calculated on the basis
2236	2236	of increased ad valorem tax collections in a zone that are
2237	2237	attributable to increased values of property located in the zone
2238	2238	resulting from an infrastructure project. The amount may not
2239	2239	exceed an amount that is equal to 30 percent of the increase in ad
2240	2240	valorem tax collections for the specified period.
2241	2241	(e) Money received by the district under this section may be
2242	2242	used:
2243	2243	(1) to provide a local match for the acquisition of
2244	2244	right-of-way in the territory of the local government; or
2245	2245	(2) for design, construction, operation, or
2246	2246	maintenance of transportation facilities in the territory of the
2247	2247	local government. (V.A.C.S. Art. 6550c-1, Sec. 8.)
2248	2248	Sec. 173.257. TAX EXEMPTION. District property, material
2249	2249	purchases, revenue, and income and the interest on bonds and notes
2250	2250	issued by the district are exempt from any tax imposed by this state
2251	2251	or a political subdivision of this state. (V.A.C.S. Art. 6550c-1,
2252	2252	Sec. 7.)
2253	2253	[Sections 173.258-173.300 reserved for expansion]
2254	2254	SUBCHAPTER G. BONDS
2255	2255	Sec. 173.301. REVENUE BONDS. A district may issue revenue
2256	2256	bonds and notes in amounts that the board considers necessary or
2257	2257	appropriate for the acquisition, purchase, construction,
2258	2258	reconstruction, repair, equipping, improvement, or extension of
2259	2259	its commuter rail facilities. (V.A.C.S. Art. 6550c-1, Sec. 5(a)
2260	2260	(part).)
2261	2261	Sec. 173.302. SECURITY FOR PAYMENT OF BONDS. (a) To
2262	2262	secure payment of district bonds or notes, the district may:
2263	2263	(1) encumber and pledge all or part of the revenue of
2264	2264	its commuter rail facilities; and
2265	2265	(2) encumber all or part of the property of the
2266	2266	commuter rail facilities and everything pertaining to them acquired
2267	2267	or to be acquired.
2268	2268	(b) Unless prohibited by the resolution or indenture
2269	2269	relating to outstanding bonds or notes, a district may encumber
2270	2270	separately any item of property. (V.A.C.S. Art. 6550c-1, Sec. 5(c)
2271	2271	(part).)
2272	2272	Sec. 173.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
2273	2273	FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds and notes are
2274	2274	legal and authorized investments for:
2275	2275	(1) a bank;
2276	2276	(2) a trust company;
2277	2277	(3) a savings and loan association; and
2278	2278	(4) an insurance company.
2279	2279	(b) The bonds and notes are:
2280	2280	(1) eligible to secure the deposit of public funds of
2281	2281	this state or a municipality, a county, a school district, or any
2282	2282	other political corporation or subdivision of this state; and
2283	2283	(2) lawful and sufficient security for the deposit to
2284	2284	the extent of the principal amount or market value of the bonds or
2285	2285	notes, whichever is less. (V.A.C.S. Art. 6550c-1, Sec. 5(d).)
2286	2286	Sec. 173.304. LIMIT ON POWER. (a) A revenue bond
2287	2287	indenture may limit the exercise of a power granted by Section
2288	2288	173.004, 173.005, 173.111, 173.151, 173.152, 173.153, 173.154,
2289	2289	173.155, 173.157, 173.159, 173.160, 173.201, 173.202, 173.203,
2290	2290	173.204, 173.205, 173.206, 173.207, 173.208, 173.209, 173.251,
2291	2291	173.252, 173.253, 173.254, or 173.255.
2292	2292	(b) The limitation applies while any of the revenue bonds
2293	2293	issued under the indenture are outstanding and unpaid. (V.A.C.S.
2294	2294	Art. 6550c-1, Sec. 4(k) (part).)
2295	2295	[Sections 173.305-173.350 reserved for expansion]
2296	2296	SUBCHAPTER H. SALES AND USE TAXES
2297	2297	Sec. 173.351. TAX AUTHORIZED. A sales and use tax is
2298	2298	imposed on items sold on district property. (V.A.C.S. Art.
2299	2299	6550c-1, Sec. 9(a) (part).)
2300	2300	Sec. 173.352. TAX RATE. The sales and use tax shall be
2301	2301	imposed at the rate of the highest combination of local sales and
2302	2302	use taxes imposed at the time of the district's creation in any
2303	2303	local governmental jurisdiction that is part of the district.
2304	2304	(V.A.C.S. Art. 6550c-1, Sec. 9(a) (part).)
2305	2305	Sec. 173.353. PREEMPTION OF OTHER SALES AND USE TAXES. The
2306	2306	tax imposed under this subchapter preempts all other local sales
2307	2307	and use taxes that would otherwise be imposed on district property.
2308	2308	(V.A.C.S. Art. 6550c-1, Sec. 9(a) (part).)
2309	2309	Sec. 173.354. APPLICABILITY OF TAX CODE. Chapter 321, Tax
2310	2310	Code, governs the computation, administration, governance, and use
2311	2311	of the tax except as inconsistent with this chapter. (V.A.C.S. Art.
2312	2312	6550c-1, Sec. 9(b) (part).)
2313	2313	Sec. 173.355. NOTICE TO COMPTROLLER. (a) The district
2314	2314	shall notify the comptroller in writing by United States registered
2315	2315	or certified mail of the district's creation and of its intent to
2316	2316	impose the sales and use tax under this chapter.
2317	2317	(b) The district shall provide to the comptroller all
2318	2318	information required to implement the tax, including:
2319	2319	(1) an adequate map showing the property boundaries of
2320	2320	the district;
2321	2321	(2) a certified copy of the resolution of the board
2322	2322	adopting the tax; and
2323	2323	(3) certified copies of the resolutions of the
2324	2324	governing bodies of the creating municipalities and of the
2325	2325	commissioners courts of the counties in which the municipalities
2326	2326	are located.
2327	2327	(c) Not later than the 30th day after the date the
2328	2328	comptroller receives the notice, map, and other information, the
2329	2329	comptroller shall inform the district whether the comptroller is
2330	2330	prepared to administer the tax. (V.A.C.S. Art. 6550c-1, Secs.
2331	2331	9(c), (d).)
2332	2332	Sec. 173.356. NOTICE TO LOCAL GOVERNMENTS. At the same time
2333	2333	the district notifies the comptroller under Section 173.355, the
2334	2334	district shall:
2335	2335	(1) notify each affected local governmental
2336	2336	jurisdiction of the district's creation; and
2337	2337	(2) provide each jurisdiction with an adequate map
2338	2338	showing the property boundaries of the district. (V.A.C.S. Art.
2339	2339	6550c-1, Sec. 9(e).)
2340	2340	Sec. 173.357. ACQUISITION OF ADDITIONAL TERRITORY SUBJECT
2341	2341	TO TAX. (a) Not later than the 30th day after the date a district
2342	2342	acquires additional territory, the district shall notify the
2343	2343	comptroller and each affected local governmental jurisdiction of
2344	2344	the acquisition.
2345	2345	(b) The district must include with each notification:
2346	2346	(1) an adequate map showing the new property
2347	2347	boundaries of the district; and
2348	2348	(2) the date the additional territory was acquired.
2349	2349	(c) Not later than the 30th day after the date the
2350	2350	comptroller receives the notice under this section, the comptroller
2351	2351	shall inform the district whether the comptroller is prepared to
2352	2352	administer the tax in the additional territory. (V.A.C.S. Art.
2353	2353	6550c-1, Sec. 9(f).)
2354	2354	Sec. 173.358. DUTY OF COMPTROLLER. The comptroller shall:
2355	2355	(1) administer, collect, and enforce a tax imposed
2356	2356	under this chapter; and
2357	2357	(2) remit to a district the tax collected on the
2358	2358	district's property. (V.A.C.S. Art. 6550c-1, Secs. 9(a) (part),
2359	2359	(b) (part).)
2360	2360	Sec. 173.359. EFFECTIVE DATE OF TAX. A tax imposed under
2361	2361	this chapter or the repeal of a tax imposed under this chapter takes
2362	2362	effect on the first day of the first calendar quarter that begins
2363	2363	after the expiration of the first complete calendar quarter that
2364	2364	occurs after the date the comptroller receives a notice of the
2365	2365	action as required by this subchapter. (V.A.C.S. Art. 6550c-1,
2366	2366	Sec. 9(g).)
2367	2367	CHAPTER 174. COMMUTER RAIL DISTRICTS
2368	2368	SUBCHAPTER A. GENERAL PROVISIONS
2369	2369	Sec. 174.001. DEFINITION OF PERSON
2370	2370	Sec. 174.002. DEFINITIONS
2371	2371	Sec. 174.003. NATURE OF DISTRICT
2372	2372	Sec. 174.004. REQUIREMENT FOR SERVICE TO
2373	2373	MUNICIPALITIES IN DISTRICT
2374	2374	[Sections 174.005-174.050 reserved for expansion]
2375	2375	SUBCHAPTER B. CREATION
2376	2376	Sec. 174.051. CREATION OF DISTRICT
2377	2377	[Sections 174.052-174.100 reserved for expansion]
2378	2378	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
2379	2379	Sec. 174.101. CONTROL OF DISTRICT
2380	2380	Sec. 174.102. COMPOSITION OF BOARD; TERMS
2381	2381	Sec. 174.103. PRESIDING OFFICER
2382	2382	Sec. 174.104. MEETINGS
2383	2383	Sec. 174.105. RULES FOR PROCEEDINGS
2384	2384	Sec. 174.106. COMPENSATION; REIMBURSEMENT
2385	2385	Sec. 174.107. EMPLOYEES
2386	2386	Sec. 174.108. EXECUTIVE COMMITTEE
2387	2387	Sec. 174.109. RETIREMENT BENEFITS
2388	2388	[Sections 174.110-174.150 reserved for expansion]
2389	2389	SUBCHAPTER D. GENERAL POWERS AND DUTIES
2390	2390	Sec. 174.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
2391	2391	FUNCTIONS
2392	2392	Sec. 174.152. RULES
2393	2393	Sec. 174.153. AGREEMENTS GENERALLY
2394	2394	Sec. 174.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
2395	2395	USE
2396	2396	Sec. 174.155. JOINT OWNERSHIP AGREEMENTS
2397	2397	Sec. 174.156. INTERLOCAL AGREEMENTS WITH COMMISSION
2398	2398	Sec. 174.157. AWARDING CONSTRUCTION OR PURCHASE
2399	2399	CONTRACTS
2400	2400	Sec. 174.158. EMINENT DOMAIN
2401	2401	Sec. 174.159. SUITS
2402	2402	[Sections 174.160-174.200 reserved for expansion]
2403	2403	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
2404	2404	CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
2405	2405	Sec. 174.201. GENERAL AUTHORITY OVER COMMUTER RAIL
2406	2406	FACILITIES
2407	2407	Sec. 174.202. POWERS RELATING TO DISTRICT PROPERTY
2408	2408	Sec. 174.203. USE AND ALTERATION OF PROPERTY OF
2409	2409	ANOTHER POLITICAL SUBDIVISION
2410	2410	Sec. 174.204. RULES GOVERNING SYSTEM AND ROUTINGS
2411	2411	Sec. 174.205. ACQUISITION OF PROPERTY
2412	2412	Sec. 174.206. ACQUISITION OF ROLLING STOCK AND OTHER
2413	2413	PROPERTY
2414	2414	Sec. 174.207. COMPENSATION FOR USE OF SYSTEM
2415	2415	FACILITIES
2416	2416	Sec. 174.208. OPERATION OR USE CONTRACTS
2417	2417	Sec. 174.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
2418	2418	WITH OTHER POLITICAL SUBDIVISIONS
2419	2419	[Sections 174.210-174.250 reserved for expansion]
2420	2420	SUBCHAPTER F. FINANCIAL PROVISIONS
2421	2421	Sec. 174.251. FISCAL YEAR
2422	2422	Sec. 174.252. ANNUAL BUDGET
2423	2423	Sec. 174.253. GRANTS AND LOANS
2424	2424	Sec. 174.254. DEPOSITORY
2425	2425	Sec. 174.255. PURCHASE OF ADDITIONAL INSURED
2426	2426	PROVISIONS
2427	2427	Sec. 174.256. TAX EXEMPTION
2428	2428	[Sections 174.257-174.300 reserved for expansion]
2429	2429	SUBCHAPTER G. BONDS
2430	2430	Sec. 174.301. REVENUE BONDS
2431	2431	Sec. 174.302. SECURITY FOR PAYMENT OF BONDS
2432	2432	Sec. 174.303. BONDS AS AUTHORIZED INVESTMENTS AND
2433	2433	SECURITY FOR DEPOSITS OF PUBLIC FUNDS
2434	2434	Sec. 174.304. LIMIT ON POWER
2435	2435	[Sections 174.305-174.350 reserved for expansion]
2436	2436	SUBCHAPTER H. TAXES
2437	2437	Sec. 174.351. TAX AUTHORIZED
2438	2438	Sec. 174.352. IMPOSITION OF TAX
2439	2439	Sec. 174.353. TAX RATE
2440	2440	Sec. 174.354. EFFECTIVE DATE OF TAX
2441	2441	CHAPTER 174. COMMUTER RAIL DISTRICTS
2442	2442	SUBCHAPTER A. GENERAL PROVISIONS
2443	2443	Sec. 174.001. DEFINITION OF PERSON. In this chapter:
2444	2444	(1) "person" includes a corporation, as provided by
2445	2445	Section 312.011, Government Code; and
2446	2446	(2) the definition of "person" assigned by Section
2447	2447	311.005, Government Code, does not apply. (New.)
2448	2448	Sec. 174.002. DEFINITIONS. In this chapter:
2449	2449	(1) "Board" means a district's board of directors.
2450	2450	(2) "Commuter rail facility" means any property
2451	2451	necessary for the transportation of passengers and baggage between
2452	2452	locations in a district. The term includes rolling stock,
2453	2453	locomotives, stations, parking areas, and rail lines.
2454	2454	(3) "Director" means a board member.
2455	2455	(4) "District" means a commuter rail district created
2456	2456	under this chapter or under Article 6550c-3, Revised Statutes, as
2457	2457	that article existed before April 1, 2011.
2458	2458	(5) "System" means all of the commuter rail and
2459	2459	intermodal facilities leased or owned by or operated on behalf of a
2460	2460	district. (V.A.C.S. Art. 6550c-3, Secs. 1(2), (5), (7); New.)
2461	2461	Sec. 174.003. NATURE OF DISTRICT. (a) A district is a
2462	2462	public body and a political subdivision of this state exercising
2463	2463	public and essential governmental functions.
2464	2464	(b) A district, in the exercise of powers under this
2465	2465	chapter, is performing only governmental functions and is a
2466	2466	governmental unit under Chapter 101, Civil Practice and Remedies
2467	2467	Code. (V.A.C.S. Art. 6550c-3, Sec. 4(a) (part).)
2468	2468	Sec. 174.004. REQUIREMENT FOR SERVICE TO MUNICIPALITIES IN
2469	2469	DISTRICT. A municipality located in a district that wishes to be
2470	2470	served by commuter rail facilities of the district must pay for
2471	2471	construction of a commuter rail station. (V.A.C.S. Art. 6550c-3,
2472	2472	Sec. 9.)
2473	2473	[Sections 174.005-174.050 reserved for expansion]
2474	2474	SUBCHAPTER B. CREATION
2475	2475	Sec. 174.051. CREATION OF DISTRICT. (a) A district may be
2476	2476	created to provide commuter rail service to counties along the
2477	2477	Texas-Mexico border.
2478	2478	(b) The commissioners court of a county may create a
2479	2479	commuter rail district on adoption of an order favoring the
2480	2480	creation. (V.A.C.S. Art. 6550c-3, Sec. 2.)
2481	2481	[Sections 174.052-174.100 reserved for expansion]
2482	2482	SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
2483	2483	Sec. 174.101. CONTROL OF DISTRICT. A district is governed
2484	2484	by a board of directors. The board is responsible for the
2485	2485	management, operation, and control of the district. (V.A.C.S. Art.
2486	2486	6550c-3, Sec. 3(a).)
2487	2487	Sec. 174.102. COMPOSITION OF BOARD; TERMS. (a) The board
2488	2488	is composed of five directors appointed as follows:
2489	2489	(1) one director appointed by the county judge; and
2490	2490	(2) one director appointed by each county
2491	2491	commissioner.
2492	2492	(b) Each director serves a four-year term. The board may
2493	2493	provide for the staggering of the terms of its directors. (V.A.C.S.
2494	2494	Art. 6550c-3, Sec. 3(b).)
2495	2495	Sec. 174.103. PRESIDING OFFICER. (a) The directors shall
2496	2496	elect one director as presiding officer.
2497	2497	(b) The presiding officer may select another director to
2498	2498	preside in the absence of the presiding officer. (V.A.C.S. Art.
2499	2499	6550c-3, Sec. 3(c).)
2500	2500	Sec. 174.104. MEETINGS. The presiding officer shall call
2501	2501	at least one meeting of the board each year and may call other
2502	2502	meetings as the presiding officer determines are appropriate.
2503	2503	(V.A.C.S. Art. 6550c-3, Sec. 3(d).)
2504	2504	Sec. 174.105. RULES FOR PROCEEDINGS. The board shall adopt
2505	2505	rules for its proceedings. (V.A.C.S. Art. 6550c-3, Sec. 3(f)
2506	2506	(part).)
2507	2507	Sec. 174.106. COMPENSATION; REIMBURSEMENT. A director is
2508	2508	not entitled to compensation for serving as a director but is
2509	2509	entitled to reimbursement for reasonable expenses incurred while
2510	2510	serving as a director. (V.A.C.S. Art. 6550c-3, Sec. 3(e).)
2511	2511	Sec. 174.107. EMPLOYEES. The board may employ and
2512	2512	compensate persons to carry out the powers and duties of the
2513	2513	district. (V.A.C.S. Art. 6550c-3, Sec. 3(f) (part).)
2514	2514	Sec. 174.108. EXECUTIVE COMMITTEE. The board shall appoint
2515	2515	an executive committee. (V.A.C.S. Art. 6550c-3, Sec. 3(f) (part).)
2516	2516	Sec. 174.109. RETIREMENT BENEFITS. A district is eligible
2517	2517	to participate in the Texas County and District Retirement System.
2518	2518	(V.A.C.S. Art. 6550c-3, Sec. 4(p).)
2519	2519	[Sections 174.110-174.150 reserved for expansion]
2520	2520	SUBCHAPTER D. GENERAL POWERS AND DUTIES
2521	2521	Sec. 174.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
2522	2522	FUNCTIONS. (a) A district has all the powers necessary or
2523	2523	convenient to carry out the purposes of this chapter.
2524	2524	(b) A district may perform any act necessary for the full
2525	2525	exercise of the district's powers. (V.A.C.S. Art. 6550c-3, Secs.
2526	2526	4(a) (part), (j) (part).)
2527	2527	Sec. 174.152. RULES. To protect the health, safety, and
2528	2528	general welfare of district residents and people who use district
2529	2529	services, a district may adopt rules to govern the operation of the
2530	2530	district, its employees, the system, service provided by the
2531	2531	district, and any other necessary matter concerning its purposes,
2532	2532	including rules regarding health, safety, alcohol or beverage
2533	2533	service, food service, or telephone or utility service. (V.A.C.S.
2534	2534	Art. 6550c-3, Sec. 4(g).)
2535	2535	Sec. 174.153. AGREEMENTS GENERALLY. A district may make
2536	2536	contracts, leases, and agreements with the United States, this
2537	2537	state and its agencies and political subdivisions, and other
2538	2538	persons and entities. (V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
2539	2539	Sec. 174.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
2540	2540	A district may:
2541	2541	(1) make agreements with a public utility, private
2542	2542	utility, communication system, common carrier, state agency, or
2543	2543	transportation system for the joint use of facilities,
2544	2544	installations, or property inside or outside the district; and
2545	2545	(2) establish:
2546	2546	(A) through routes; and
2547	2547	(B) joint fares. (V.A.C.S. Art. 6550c-3, Sec.
2548	2548	4(f).)
2549	2549	Sec. 174.155. JOINT OWNERSHIP AGREEMENTS. A district may
2550	2550	enter into a joint ownership agreement with any person. (V.A.C.S.
2551	2551	Art. 6550c-3, Sec. 4(h).)
2552	2552	Sec. 174.156. INTERLOCAL AGREEMENTS WITH COMMISSION. The
2553	2553	commission may enter into an interlocal agreement with the district
2554	2554	under which the district may exercise a power or duty of the
2555	2555	commission for the development and efficient operation of an
2556	2556	intermodal corridor in the district. (V.A.C.S. Art. 6550c-3, Sec.
2557	2557	4(j) (part).)
2558	2558	Sec. 174.157. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
2559	2559	(a) A contract in the amount of more than $15,000 for the
2560	2560	construction of improvements or the purchase of material,
2561	2561	machinery, equipment, supplies, or any other property except real
2562	2562	property may be awarded only through competitive bidding after
2563	2563	notice is published in a newspaper of general circulation in the
2564	2564	district at least 15 days before the date set for receiving bids.
2565	2565	(b) The board may adopt rules governing the taking of bids
2566	2566	and the awarding of contracts.
2567	2567	(c) This section does not apply to:
2568	2568	(1) personal or professional services;
2569	2569	(2) the acquisition of an existing rail transportation
2570	2570	system; or
2571	2571	(3) a contract with a common carrier to construct
2572	2572	lines or to operate commuter rail service on lines wholly or partly
2573	2573	owned by the carrier. (V.A.C.S. Art. 6550c-3, Sec. 6.)
2574	2574	Sec. 174.158. EMINENT DOMAIN. (a) A district may exercise
2575	2575	the power of eminent domain to acquire:
2576	2576	(1) real property in fee simple; or
2577	2577	(2) an interest in real property less than fee simple
2578	2578	in, on, under, or above land, including an easement, right-of-way,
2579	2579	or right of use of airspace or subsurface space.
2580	2580	(b) The power of eminent domain under this section does not
2581	2581	apply to:
2582	2582	(1) land under the jurisdiction of the department; or
2583	2583	(2) a rail line owned by a common carrier or
2584	2584	municipality.
2585	2585	(c) To the extent possible, the district shall use existing
2586	2586	rail or intermodal transportation corridors for the alignment of
2587	2587	its system.
2588	2588	(d) An eminent domain proceeding is begun by the board's
2589	2589	adoption of a resolution declaring that the district's acquisition
2590	2590	of the property or interest described in the resolution:
2591	2591	(1) is a public necessity; and
2592	2592	(2) is necessary and proper for the construction,
2593	2593	extension, improvement, or development of commuter rail facilities
2594	2594	and is in the public interest.
2595	2595	(e) The resolution is conclusive evidence of the public
2596	2596	necessity of the proposed acquisition and that the real property or
2597	2597	interest in property is necessary for public use. (V.A.C.S. Art.
2598	2598	6550c-3, Sec. 4(e).)
2599	2599	Sec. 174.159. SUITS. (a) A district may:
2600	2600	(1) sue and be sued;
2601	2601	(2) institute and prosecute suits without giving
2602	2602	security for costs; and
2603	2603	(3) appeal from a judgment without giving a
2604	2604	supersedeas or cost bond.
2605	2605	(b) An action at law or in equity against the district must
2606	2606	be brought in the county in which a principal office of the district
2607	2607	is located, except that a suit in eminent domain involving an
2608	2608	interest in land must be brought in the county in which the land is
2609	2609	located. (V.A.C.S. Art. 6550c-3, Sec. 4(b).)
2610	2610	[Sections 174.160-174.200 reserved for expansion]
2611	2611	SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
2612	2612	CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
2613	2613	Sec. 174.201. GENERAL AUTHORITY OVER COMMUTER RAIL
2614	2614	FACILITIES. A district may acquire, construct, develop, own,
2615	2615	operate, and maintain intermodal and commuter rail facilities to
2616	2616	connect political subdivisions in the district. (V.A.C.S. Art.
2617	2617	6550c-3, Sec. 4(d) (part).)
2618	2618	Sec. 174.202. POWERS RELATING TO DISTRICT PROPERTY. A
2619	2619	district may acquire by grant, purchase, gift, devise, lease, or
2620	2620	otherwise and may hold, use, sell, lease, or dispose of property,
2621	2621	including a license, a patent, a right, or an interest, necessary,
2622	2622	convenient, or useful for the full exercise of its powers.
2623	2623	(V.A.C.S. Art. 6550c-3, Sec. 4(c).)
2624	2624	Sec. 174.203. USE AND ALTERATION OF PROPERTY OF ANOTHER
2625	2625	POLITICAL SUBDIVISION. (a) For a purpose described by Section
2626	2626	174.201, as necessary or useful in the construction,
2627	2627	reconstruction, repair, maintenance, and operation of the system,
2628	2628	and with the consent of a municipality, county, or other political
2629	2629	subdivision, a district may:
2630	2630	(1) use streets, alleys, roads, highways, and other
2631	2631	public ways of the political subdivision; and
2632	2632	(2) relocate, raise, reroute, change the grade of, or
2633	2633	alter, at the district's expense, the construction of a publicly
2634	2634	owned or privately owned street, alley, highway, road, railroad,
2635	2635	electric line or facility, telegraph or telephone property or
2636	2636	facility, pipeline or facility, conduit or facility, and other
2637	2637	property.
2638	2638	(b) A district may not use or alter:
2639	2639	(1) a road or highway in the state highway system
2640	2640	without the permission of the commission; or
2641	2641	(2) a railroad without permission of the railroad.
2642	2642	(V.A.C.S. Art. 6550c-3, Sec. 4(d) (part).)
2643	2643	Sec. 174.204. RULES GOVERNING SYSTEM AND ROUTINGS. A
2644	2644	district by resolution may adopt rules governing the use,
2645	2645	operation, and maintenance of the system and may determine or
2646	2646	change a routing as the board considers advisable. (V.A.C.S. Art.
2647	2647	6550c-3, Sec. 4(k).)
2648	2648	Sec. 174.205. ACQUISITION OF PROPERTY. (a) A district may
2649	2649	purchase any interest in real property to acquire, construct, or
2650	2650	operate a commuter rail facility on terms and at a price to which
2651	2651	the district and the owner agree.
2652	2652	(b) The governing body of a municipality, a county, any
2653	2653	other political subdivision, or a public agency may convey the
2654	2654	title or the rights and easements to property needed by the district
2655	2655	for its purposes in connection with the acquisition, construction,
2656	2656	or operation of the system. (V.A.C.S. Art. 6550c-3, Sec. 4(d)
2657	2657	(part).)
2658	2658	Sec. 174.206. ACQUISITION OF ROLLING STOCK AND OTHER
2659	2659	PROPERTY. A district may acquire rolling stock or other property
2660	2660	under a conditional sales contract, lease, equipment trust
2661	2661	certificate, or other form of contract or trust agreement.
2662	2662	(V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
2663	2663	Sec. 174.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
2664	2664	(a) A district shall establish and maintain reasonable and
2665	2665	nondiscriminatory rates or other compensation for the use of the
2666	2666	facilities of the system acquired, constructed, operated,
2667	2667	regulated, or maintained by the district.
2668	2668	(b) Together with grants received by the district, the rates
2669	2669	or other compensation must be sufficient to produce revenue
2670	2670	adequate to:
2671	2671	(1) pay all expenses necessary for the operation and
2672	2672	maintenance of the district's property and facilities;
2673	2673	(2) pay the principal of and interest on bonds issued
2674	2674	by the district payable wholly or partly from the revenue, as they
2675	2675	become due and payable; and
2676	2676	(3) fulfill the terms of agreements made with the
2677	2677	holders of bonds or with any person on their behalf. (V.A.C.S.
2678	2678	Art. 6550c-3, Sec. 4(i).)
2679	2679	Sec. 174.208. OPERATION OR USE CONTRACTS. (a) A district
2680	2680	may:
2681	2681	(1) lease all or part of the commuter rail facilities
2682	2682	to an operator; or
2683	2683	(2) contract for the use or operation of all or part of
2684	2684	the commuter rail facilities by an operator.
2685	2685	(b) To the maximum extent practicable, the district shall
2686	2686	encourage the participation of private enterprise in the operation
2687	2687	of commuter rail facilities.
2688	2688	(c) The term of an operating contract under this section may
2689	2689	not exceed 20 years. (V.A.C.S. Art. 6550c-3, Sec. 4(l).)
2690	2690	Sec. 174.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
2691	2691	OTHER POLITICAL SUBDIVISIONS. A district may contract with a
2692	2692	county or other political subdivision of this state for the
2693	2693	district to provide commuter rail transportation services to an
2694	2694	area outside the district on terms to which the parties agree.
2695	2695	(V.A.C.S. Art. 6550c-3, Sec. 4(m).)
2696	2696	[Sections 174.210-174.250 reserved for expansion]
2697	2697	SUBCHAPTER F. FINANCIAL PROVISIONS
2698	2698	Sec. 174.251. FISCAL YEAR. Unless the board changes the
2699	2699	fiscal year, the district's fiscal year ends on September 30.
2700	2700	(V.A.C.S. Art. 6550c-3, Sec. 4(o) (part).)
2701	2701	Sec. 174.252. ANNUAL BUDGET. (a) Before beginning the
2702	2702	operation of commuter rail facilities, the board shall adopt an
2703	2703	annual operating budget specifying the district's anticipated
2704	2704	revenue and expenses for the remainder of the fiscal year. The
2705	2705	district shall adopt an operating budget for each succeeding fiscal
2706	2706	year.
2707	2707	(b) The board must hold a public hearing before adopting
2708	2708	each budget except the initial budget. Notice of the hearing must
2709	2709	be published at least seven days before the date of the hearing in a
2710	2710	newspaper of general circulation in the district.
2711	2711	(c) A budget may be amended at any time if notice of the
2712	2712	proposed amendment is given in the notice of the meeting at which
2713	2713	the amendment will be considered.
2714	2714	(d) An expenditure that is not budgeted may not be made.
2715	2715	(V.A.C.S. Art. 6550c-3, Sec. 4(o) (part).)
2716	2716	Sec. 174.253. GRANTS AND LOANS. A district may accept
2717	2717	grants and loans from the United States, this state and its agencies
2718	2718	and political subdivisions, and other persons and entities.
2719	2719	(V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
2720	2720	Sec. 174.254. DEPOSITORY. (a) The board by resolution
2721	2721	shall name one or more banks for the deposit of district funds.
2722	2722	(b) District funds are public funds and may be invested in
2723	2723	securities permitted by Chapter 2256, Government Code.
2724	2724	(c) To the extent district funds are not insured by the
2725	2725	Federal Deposit Insurance Corporation or its successor, the funds
2726	2726	shall be collateralized in the manner provided for county funds.
2727	2727	(V.A.C.S. Art. 6550c-3, Sec. 4(q).)
2728	2728	Sec. 174.255. PURCHASE OF ADDITIONAL INSURED PROVISIONS. A
2729	2729	district may purchase an additional insured provision to any
2730	2730	liability insurance contract. (V.A.C.S. Art. 6550c-3, Sec. 4(n).)
2731	2731	Sec. 174.256. TAX EXEMPTION. District property, material
2732	2732	purchases, revenue, and income and the interest on a bond or note
2733	2733	issued by a district are exempt from any tax imposed by this state
2734	2734	or a political subdivision of this state. (V.A.C.S. Art. 6550c-3,
2735	2735	Sec. 7.)
2736	2736	[Sections 174.257-174.300 reserved for expansion]
2737	2737	SUBCHAPTER G. BONDS
2738	2738	Sec. 174.301. REVENUE BONDS. A district may issue revenue
2739	2739	bonds and notes in amounts that the board considers necessary or
2740	2740	appropriate for the acquisition, purchase, construction,
2741	2741	reconstruction, repair, equipping, improvement, or extension of
2742	2742	its commuter rail facilities. (V.A.C.S. Art. 6550c-3, Sec. 5(a)
2743	2743	(part).)
2744	2744	Sec. 174.302. SECURITY FOR PAYMENT OF BONDS. (a) To
2745	2745	secure payment of district bonds or notes, the district may:
2746	2746	(1) encumber and pledge all or part of the revenue of
2747	2747	its commuter rail facilities; and
2748	2748	(2) encumber all or part of the property of the
2749	2749	commuter rail facilities and everything pertaining to them that is
2750	2750	acquired or to be acquired.
2751	2751	(b) Unless prohibited by the resolution or indenture
2752	2752	relating to outstanding bonds or notes, a district may encumber
2753	2753	separately any item of property. (V.A.C.S. Art. 6550c-3, Sec. 5(c)
2754	2754	(part).)
2755	2755	Sec. 174.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
2756	2756	FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds and notes are
2757	2757	legal and authorized investments for:
2758	2758	(1) a bank;
2759	2759	(2) a trust company;
2760	2760	(3) a savings and loan association; and
2761	2761	(4) an insurance company.
2762	2762	(b) The bonds and notes are:
2763	2763	(1) eligible to secure the deposit of public funds of
2764	2764	this state or a municipality, a county, a school district, or any
2765	2765	other political corporation or subdivision of this state; and
2766	2766	(2) lawful and sufficient security for the deposit to
2767	2767	the extent of the principal amount or market value of the bonds or
2768	2768	notes, whichever is less. (V.A.C.S. Art. 6550c-3, Sec. 5(d).)
2769	2769	Sec. 174.304. LIMIT ON POWER. (a) A revenue bond
2770	2770	indenture may limit the exercise of the power granted by Section
2771	2771	174.003, 174.109, 174.151, 174.152, 174.153, 174.154, 174.155,
2772	2772	174.156, 174.158, 174.159, 174.201, 174.202, 174.203, 174.204,
2773	2773	174.205, 174.206, 174.207, 174.208, 174.209, 174.251, 174.252,
2774	2774	174.253, 174.254, or 174.255.
2775	2775	(b) A limit applies while any of the revenue bonds issued
2776	2776	under the indenture are outstanding and unpaid. (V.A.C.S. Art.
2777	2777	6550c-3, Sec. 4(j) (part).)
2778	2778	[Sections 174.305-174.350 reserved for expansion]
2779	2779	SUBCHAPTER H. TAXES
2780	2780	Sec. 174.351. TAX AUTHORIZED. A district may impose any
2781	2781	kind of tax except an ad valorem property tax. (V.A.C.S. Art.
2782	2782	6550c-3, Sec. 8(a).)
2783	2783	Sec. 174.352. IMPOSITION OF TAX. (a) A district may not
2784	2784	impose a tax or increase the rate of an existing tax unless a
2785	2785	proposition proposing the imposition or rate increase is approved
2786	2786	by a majority of the votes received at an election held for that
2787	2787	purpose.
2788	2788	(b) Each new tax or rate increase must be expressed in a
2789	2789	separate proposition consisting of a brief statement of the nature
2790	2790	of the proposed tax.
2791	2791	(c) The notice of the election must contain a statement of
2792	2792	the base or rate of the proposed tax. (V.A.C.S. Art. 6550c-3, Secs.
2793	2793	8(b), (c), (d).)
2794	2794	Sec. 174.353. TAX RATE. (a) The board, subject to Section
2795	2795	174.352(a), may impose for a district a sales and use tax at the
2796	2796	rate of:
2797	2797	(1) one-quarter of one percent;
2798	2798	(2) one-half of one percent;
2799	2799	(3) three-quarters of one percent; or
2800	2800	(4) one percent.
2801	2801	(b) A district may not adopt a sales and use tax rate,
2802	2802	including a rate increase, that when combined with the rates of all
2803	2803	sales and use taxes imposed by other political subdivisions of this
2804	2804	state having territory in the district exceeds two percent in any
2805	2805	location in the district. (V.A.C.S. Art. 6550c-3, Secs. 8(e),
2806	2806	(f).)
2807	2807	Sec. 174.354. EFFECTIVE DATE OF TAX. A district's sales and
2808	2808	use tax takes effect on the first day of the second calendar quarter
2809	2809	beginning after the election approving the tax. (V.A.C.S. Art.
2810	2810	6550c-3, Sec. 8(g).)
2811	2811	SECTION 2.05. Subchapter B, Chapter 452, Transportation
2812	2812	Code, is amended by adding Section 452.0561 to read as follows:
2813	2813	Sec. 452.0561. LIABILITY OF TRANSPORTATION ENTITY
2814	2814	PROVIDING PUBLIC TRANSPORTATION. (a) This section applies only to
2815	2815	a transportation entity created under:
2816	2816	(1) Subtitle C or D of Title 5 or Chapter 172, 173, or
2817	2817	174; or
2818	2818	(2) former Title 112, Revised Statutes.
2819	2819	(b) A transportation entity created for the purpose of
2820	2820	providing public transportation is a governmental unit under
2821	2821	Chapter 101, Civil Practice and Remedies Code, and the operations
2822	2822	of the entity are essential governmental functions and not
2823	2823	proprietary functions for any purpose, including the application of
2824	2824	Chapter 101, Civil Practice and Remedies Code.
2825	2825	(c) An independent contractor of a transportation entity
2826	2826	performing a function of the entity or an authority is liable for
2827	2827	damages only to the extent that the entity or authority would be
2828	2828	liable if the entity or authority itself were performing the
2829	2829	function. (V.A.C.S. Art. 6550d.)
2830	2830	SECTION 2.06. Chapter 471, Transportation Code, is amended
2831	2831	by adding Section 471.009 to read as follows:
2832	2832	Sec. 471.009. ENHANCED PAVEMENT MARKING VISIBILITY AT
2833	2833	CERTAIN GRADE CROSSINGS. (a) In this section:
2834	2834	(1) "Grade crossing" and "reflecting material" have
2835	2835	the meanings assigned by Section 471.004.
2836	2836	(2) "Pavement markings" means markings applied or
2837	2837	attached to the surface of a roadway to regulate, warn, or guide
2838	2838	traffic.
2839	2839	(3) "Stop bar" means the marking that is applied or
2840	2840	attached to the surface of a roadway on either side of a grade
2841	2841	crossing and that indicates that a vehicle must stop at the grade
2842	2842	crossing.
2843	2843	(b) A county or municipality shall use standards developed
2844	2844	by the department in applying pavement markings or a stop bar at a
2845	2845	grade crossing if the cost of the markings or stop bar is paid
2846	2846	either entirely or partly from state or federal funds. In
2847	2847	developing its standards, the department shall follow the standards
2848	2848	in the Manual on Uniform Traffic Control Devices issued by the
2849	2849	United States Department of Transportation Federal Highway
2850	2850	Administration and, where appropriate, require the use of
2851	2851	reflecting materials. (V.A.C.S. Art. 6370c.)
2852	2852	SECTION 2.07. Title 66, Revised Statutes, is amended by
2853	2853	adding Article 4015g to read as follows:
2854	2854	Art. 4015g. SUITS FOR PENALTY. (a) A suit brought under
2855	2855	this title for recovery of penalties may be brought in any county in
2856	2856	which:
2857	2857	(1) a violation of this title is committed;
2858	2858	(2) the company or receiver has an agent or
2859	2859	representative; or
2860	2860	(3) the principal office of the company is located, or
2861	2861	in which a receiver resides.
2862	2862	(b) Of money collected from a penalty in this title:
2863	2863	(1) half, less the commission and expenses allowed by
2864	2864	law, shall be deposited in the state treasury; and
2865	2865	(2) the remainder shall be paid into the jury fund of
2866	2866	the county in which the suit may be maintained. (V.A.C.S. Art. 6477
2867	2867	(part).)
2868	2868	ARTICLE 3. TRANSFER OF PROVISIONS FROM TITLE 112, REVISED
2869	2869	STATUTES, TO NATURAL RESOURCES CODE
2870	2870	SECTION 3.01. Subchapter A, Chapter 81, Natural Resources
2871	2871	Code, is amended by adding Section 81.002 to read as follows:
2872	2872	Sec. 81.002. DEFINITION OF PERSON FOR CERTAIN PROVISIONS.
2873	2873	In this chapter:
2874	2874	(1) "person" includes a corporation, as provided by
2875	2875	Section 312.011, Government Code; and
2876	2876	(2) the definition of "person" assigned by Section
2877	2877	311.005, Government Code, does not apply. (New.)
2878	2878	SECTION 3.02. Subchapter B, Chapter 81, Natural Resources
2879	2879	Code, is amended by adding Sections 81.01001 through 81.01016 and
2880	2880	81.0165 to read as follows:
2881	2881	SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
2882	2882	Sec. 81.01001. SUNSET PROVISION
2883	2883	Sec. 81.01002. CHAIRMAN
2884	2884	Sec. 81.01003. QUALIFICATIONS FOR OFFICE
2885	2885	Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE,
2886	2886	INTEREST
2887	2887	Sec. 81.01005. NAME AND SEAL
2888	2888	Sec. 81.01006. PROCEDURAL RULES
2889	2889	Sec. 81.01007. SUPPLIES
2890	2890	Sec. 81.01008. SESSIONS
2891	2891	Sec. 81.01009. RECORDS RESEARCH FEE
2892	2892	Sec. 81.01010. FEE FOR COPIES
2893	2893	Sec. 81.01011. METHOD OF MAKING PAYMENTS TO COMMISSION
2894	2894	Sec. 81.01012. GIFTS, GRANTS, AND DONATIONS
2895	2895	Sec. 81.01013. CONFLICT OF INTEREST
2896	2896	Sec. 81.01014. EQUAL EMPLOYMENT OPPORTUNITY
2897	2897	Sec. 81.01015. EMPLOYEE INCENTIVE PROGRAM
2898	2898	Sec. 81.01016. SEPARATION OF RESPONSIBILITIES
2899	2899	Sec. 81.0165. SALARY OF SECRETARY
2900	2900	Sec. 81.01001. SUNSET PROVISION. The Railroad Commission
2901	2901	of Texas is subject to Chapter 325, Government Code (Texas Sunset
2902	2902	Act). Unless continued in existence as provided by that chapter,
2903	2903	the commission is abolished September 1, 2013. (V.A.C.S. Art.
2904	2904	6445a.)
2905	2905	Sec. 81.01002. CHAIRMAN. The commissioners shall elect one
2906	2906	commissioner as the chairman. (V.A.C.S. Art. 6447 (part).)
2907	2907	Sec. 81.01003. QUALIFICATIONS FOR OFFICE. A commissioner
2908	2908	must be:
2909	2909	(1) a qualified voter under the constitution and laws;
2910	2910	and
2911	2911	(2) at least 25 years of age. (V.A.C.S. Art. 6447
2912	2912	(part).)
2913	2913	Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF
2914	2914	CONDUCT, AND CONFLICT OF INTEREST. A commissioner is subject to the
2915	2915	provisions of Chapter 572, Government Code, that apply to elected
2916	2916	officers, including the requirements governing personal financial
2917	2917	statements, standards of conduct, and conflicts of interest.
2918	2918	(V.A.C.S. Art. 6447 (part).)
2919	2919	Sec. 81.01005. NAME AND SEAL. (a) The commissioners are
2920	2920	known collectively as the "Railroad Commission of Texas."
2921	2921	(b) The seal of the commission contains a star of five
2922	2922	points with the words "Railroad Commission of Texas" engraved on
2923	2923	it. (V.A.C.S. Art. 6447 (part).)
2924	2924	Sec. 81.01006. PROCEDURAL RULES. The commissioners may
2925	2925	adopt all rules necessary for the commission's government and
2926	2926	proceedings. (V.A.C.S. Art. 6447 (part).)
2927	2927	Sec. 81.01007. SUPPLIES. The commissioners shall be
2928	2928	furnished necessary furniture, stationery, supplies, and expenses,
2929	2929	to be paid for on the order of the governor. (V.A.C.S. Art. 6447
2930	2930	(part).)
2931	2931	Sec. 81.01008. SESSIONS. The commission may hold sessions
2932	2932	at any place in this state when considered necessary. (V.A.C.S.
2933	2933	Art. 6447 (part).)
2934	2934	Sec. 81.01009. RECORDS RESEARCH FEE. The commission shall
2935	2935	charge a person who requests an examination or search of commission
2936	2936	records $5 for each half hour or fraction of a half hour that a
2937	2937	commission employee spends in the examination or search unless the
2938	2938	person requesting the search represents this state or a county.
2939	2939	(V.A.C.S. Art. 6447j.)
2940	2940	Sec. 81.01010. FEE FOR COPIES. (a) The commission may
2941	2941	charge a fee for copies of papers provided by the commission to a
2942	2942	person other than a department of this state.
2943	2943	(b) The fee for a copy of a paper, document, or record in the
2944	2944	commission's office, including the certificate and seal to be
2945	2945	applied by the secretary, is 15 cents for each 100 words.
2946	2946	(c) This section does not authorize the commission to charge
2947	2947	a person a fee for a tariff sheet for the person's own use if the
2948	2948	tariff sheet is in effect.
2949	2949	(d) The fees charged and collected under this section shall
2950	2950	be accounted for by the secretary of the commission and paid into
2951	2951	the treasury as provided by Chapter 603, Government Code.
2952	2952	(V.A.C.S. Art. 3922.)
2953	2953	Sec. 81.01011. METHOD OF MAKING PAYMENTS TO COMMISSION.
2954	2954	(a) The commission may authorize payment, as prescribed by the
2955	2955	commission, of a regulatory fee, fine, penalty, or charge for goods
2956	2956	and services by means of an electronic payment method or a credit
2957	2957	card issued by a financial institution chartered by a state or the
2958	2958	United States or issued by a nationally recognized credit
2959	2959	organization approved by the commission. A payment by the
2960	2960	authorized method may be made in person, by telephone, or through
2961	2961	the Internet.
2962	2962	(b) The commission may require a person who makes a payment
2963	2963	to the commission by means of an electronic payment method or credit
2964	2964	card to pay a discount or service charge in an amount reasonable and
2965	2965	necessary to reimburse the commission for the costs involved in
2966	2966	processing the payment.
2967	2967	(c) The commission may adopt rules as necessary to implement
2968	2968	this section. (V.A.C.S. Art. 6447n.)
2969	2969	Sec. 81.01012. GIFTS, GRANTS, AND DONATIONS. (a) In this
2970	2970	section, "contested case" has the meaning assigned by Section
2971	2971	2001.003, Government Code.
2972	2972	(b) The commission may apply for, request, solicit,
2973	2973	contract for, receive, accept, and administer gifts, grants, and
2974	2974	donations of money or other assistance from any source to carry out
2975	2975	any commission purpose or power.
2976	2976	(c) The commission may not, under Subsection (b), accept a
2977	2977	gift or donation of money or of property from a party in a contested
2978	2978	case during the period from the inception of the contested case
2979	2979	until the 30th day after the date a final order is signed in the
2980	2980	contested case. (V.A.C.S. Art. 6447i.)
2981	2981	Sec. 81.01013. CONFLICT OF INTEREST. (a) In this section,
2982	2982	"Texas trade association" means a cooperative and voluntarily
2983	2983	joined association of business or professional competitors in this
2984	2984	state designed to assist its members and its industry or profession
2985	2985	in dealing with mutual business or professional problems and in
2986	2986	promoting their common interest.
2987	2987	(b) A person may not be an employee of the commission
2988	2988	employed in a "bona fide executive, administrative, or professional
2989	2989	capacity," as that phrase is used for purposes of establishing an
2990	2990	exemption to the overtime provisions of the federal Fair Labor
2991	2991	Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
2992	2992	(1) the person is an officer, employee, or paid
2993	2993	consultant of a Texas trade association in a business or industry
2994	2994	regulated by the commission; or
2995	2995	(2) the person's spouse is an officer, manager, or paid
2996	2996	consultant of a Texas trade association in a business or industry
2997	2997	regulated by the commission.
2998	2998	(c) A person who is required to register as a lobbyist under
2999	2999	Chapter 305, Government Code, may not act as the general counsel to
3000	3000	the commission.
3001	3001	(d) The commission shall provide to commissioners and to
3002	3002	agency employees, as often as necessary, information regarding the
3003	3003	requirements for office or employment under this chapter, including
3004	3004	information regarding a person's responsibilities under applicable
3005	3005	laws relating to standards of conduct for state officers or
3006	3006	employees. (V.A.C.S. Art. 6447c.)
3007	3007	Sec. 81.01014. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
3008	3008	commission shall prepare and maintain a written policy statement
3009	3009	that implements a program of equal employment opportunity to ensure
3010	3010	that all personnel decisions are made without regard to race,
3011	3011	color, disability, sex, religion, age, or national origin.
3012	3012	(b) The policy statement must include:
3013	3013	(1) personnel policies, including policies relating
3014	3014	to recruitment, evaluation, selection, training, and promotion of
3015	3015	personnel, that show the intent of the commission to avoid the
3016	3016	unlawful employment practices described by Chapter 21, Labor Code;
3017	3017	and
3018	3018	(2) an analysis of the extent to which the composition
3019	3019	of the commission's personnel is in accordance with state and
3020	3020	federal law and a description of reasonable methods to achieve
3021	3021	compliance with state and federal law.
3022	3022	(c) The policy statement must:
3023	3023	(1) be updated annually;
3024	3024	(2) be reviewed by the Texas Workforce Commission
3025	3025	civil rights division for compliance with Subsection (b); and
3026	3026	(3) be filed with the governor's office. (V.A.C.S.
3027	3027	Art. 6447b.)
3028	3028	Sec. 81.01015. EMPLOYEE INCENTIVE PROGRAM. The commission
3029	3029	shall provide to commission employees information and training on
3030	3030	the benefits and methods of participation in the state employee
3031	3031	incentive program. (V.A.C.S. Art. 6447m.)
3032	3032	Sec. 81.01016. SEPARATION OF RESPONSIBILITIES. The
3033	3033	commission shall develop and implement policies that clearly
3034	3034	separate the policy-making responsibilities of the commissioners
3035	3035	and the management responsibilities of the staff of the commission.
3036	3036	(V.A.C.S. Art. 6447k.)
3037	3037	Sec. 81.0165. SALARY OF SECRETARY. The salary of the
3038	3038	secretary of the commission shall be the amount appropriated for
3039	3039	that purpose by the legislature. (V.A.C.S. Art. 6447a.)
3040	3040	SECTION 3.03. Subchapter C, Chapter 81, Natural Resources
3041	3041	Code, is amended by adding Sections 81.0591, 81.0592, 81.062,
3042	3042	81.063, and 81.064 to read as follows:
3043	3043	SUBCHAPTER C. JURISDICTION, POWERS, AND DUTIES
3044	3044	Sec. 81.0591. COMPLAINTS
3045	3045	Sec. 81.0592. CONSUMER INTEREST INFORMATION
3046	3046	Sec. 81.062. PUBLIC PARTICIPATION
3047	3047	Sec. 81.063. ISSUANCE, SUSPENSION, OR REVOCATION OF
3048	3048	LICENSE, PERMIT, OR CERTIFICATE
3049	3049	Sec. 81.064. POWERS OF COMMISSIONER OR DESIGNATED
3050	3050	EMPLOYEE IN CASES BEFORE COMMISSION
3051	3051	Sec. 81.0591. COMPLAINTS. (a) The commission shall
3052	3052	maintain a file on each written complaint filed with the
3053	3053	commission. The file must include:
3054	3054	(1) the name of the person who filed the complaint;
3055	3055	(2) the date the complaint is received by the
3056	3056	commission;
3057	3057	(3) the subject matter of the complaint;
3058	3058	(4) the name of each person contacted in relation to
3059	3059	the complaint;
3060	3060	(5) a summary of the results of the review or
3061	3061	investigation of the complaint; and
3062	3062	(6) an explanation of the reason the file was closed,
3063	3063	if the commission closed the file without taking action other than
3064	3064	to investigate the complaint.
3065	3065	(b) The commission shall provide to the person filing the
3066	3066	complaint and to each person who is a subject of the complaint a
3067	3067	copy of the commission's policies and procedures relating to
3068	3068	complaint investigation and resolution.
3069	3069	(c) The commission, at least quarterly until final
3070	3070	disposition of the complaint, shall notify the person filing the
3071	3071	complaint and each person who is a subject of the complaint of the
3072	3072	status of the investigation unless the notice would jeopardize an
3073	3073	undercover investigation. (V.A.C.S. Art. 6447h.)
3074	3074	Sec. 81.0592. CONSUMER INTEREST INFORMATION. (a) The
3075	3075	commission shall prepare information of consumer interest
3076	3076	describing the regulatory functions of the commission and the
3077	3077	procedures by which consumer complaints are filed with and resolved
3078	3078	by the commission.
3079	3079	(b) The commission shall make the information available to
3080	3080	the public and appropriate state agencies. (V.A.C.S. Art. 6447g.)
3081	3081	Sec. 81.062. PUBLIC PARTICIPATION. The commission shall
3082	3082	develop and implement policies that provide the public with a
3083	3083	reasonable opportunity to appear before the commission and to speak
3084	3084	on any issue under the jurisdiction of the commission. (V.A.C.S.
3085	3085	Art. 6447l.)
3086	3086	Sec. 81.063. ISSUANCE, SUSPENSION, OR REVOCATION OF
3087	3087	LICENSE, PERMIT, OR CERTIFICATE. (a) If the commission proposes
3088	3088	to suspend or revoke a person's license, permit, or certificate of
3089	3089	public convenience and necessity, the person is entitled to a
3090	3090	hearing before the commission.
3091	3091	(b) The commission may not:
3092	3092	(1) refuse to issue a license, permit, or certificate
3093	3093	to a person because of the person's race, religion, color, sex, or
3094	3094	national origin; or
3095	3095	(2) revoke or suspend the license, permit, or
3096	3096	certificate of a person because of the person's race, religion,
3097	3097	color, sex, or national origin. (V.A.C.S. Arts. 6447f(a), (c).)
3098	3098	Sec. 81.064. POWERS OF COMMISSIONER OR DESIGNATED EMPLOYEE
3099	3099	IN CASES BEFORE COMMISSION. (a) In a case before the commission, a
3100	3100	commissioner, or an authorized commission employee, designated by
3101	3101	the commission for that purpose, in the same manner as if the entire
3102	3102	commission were present, may:
3103	3103	(1) hold a hearing;
3104	3104	(2) conduct an investigation;
3105	3105	(3) make a record of a hearing or investigation for the
3106	3106	use and benefit of the commission;
3107	3107	(4) administer an oath;
3108	3108	(5) certify to an official act; and
3109	3109	(6) compel the attendance of a witness and the
3110	3110	production of papers, books, accounts, and other pertinent
3111	3111	documents and testimony.
3112	3112	(b) The record of a hearing or investigation made under this
3113	3113	section that is certified to by the commissioner or employee has the
3114	3114	same effect as if made before the commission. The commission shall
3115	3115	determine a case in which the record is made under this section in
3116	3116	the same manner as if the record had been made before the
3117	3117	commission.
3118	3118	(c) The commission may punish for contempt a person who:
3119	3119	(1) refuses to comply with this section; or
3120	3120	(2) obstructs or attempts to obstruct a proceeding
3121	3121	under this section. (V.A.C.S. Art. 6519a (part).)
3122	3122	SECTION 3.04. Subchapter D, Chapter 81, Natural Resources
3123	3123	Code, is amended by adding Section 81.093 to read as follows:
3124	3124	Sec. 81.093. DEPOSITIONS. (a) In a matter pending for
3125	3125	hearing before the commission or a division of the commission, the
3126	3126	commission or an interested party may produce the testimony of a
3127	3127	witness by written or oral deposition instead of compelling the
3128	3128	personal attendance of the witness. For that purpose, the
3129	3129	commission may issue a commission or other process necessary to
3130	3130	take a deposition.
3131	3131	(b) The deposition shall be taken, to the extent applicable
3132	3132	and to the greatest extent possible, in accordance with the
3133	3133	provisions of the Texas Rules of Civil Procedure relating to
3134	3134	written and oral depositions. (V.A.C.S. Art. 6472a.)
3135	3135	ARTICLE 4. CONFORMING AMENDMENTS
3136	3136	SECTION 4.01. Section 101.0817, Government Code, is amended
3137	3137	to read as follows:
3138	3138	Sec. 101.0817. STATUTORY COUNTY COURT FEES AND COSTS UNDER
3139	3139	OTHER LAWS. The clerk of a statutory county court shall collect
3140	3140	a fee of $10 under Section 112.059, Transportation Code [Article
3141	3141	6327, Vernon's Texas Civil Statutes], for a county attorney in a
3142	3142	suit regarding a railroad company's failure to keep roadbed and
3143	3143	right-of-way in proper condition.
3144	3144	SECTION 4.02. Subsection (c), Section 91.004,
3145	3145	Transportation Code, is amended to read as follows:
3146	3146	(c) Subsection (b) does not apply to money appropriated or
3147	3147	allocated:
3148	3148	(1) to a transit authority described by Chapter 451, a
3149	3149	transportation authority described by Chapter 452 or 460, or a
3150	3150	transit department described by Chapter 453; or
3151	3151	(2) for use by:
3152	3152	(A) a port authority or navigation district
3153	3153	created or operating under Section 52, Article III, or Section 59,
3154	3154	Article XVI, Texas Constitution; or
3155	3155	(B) a district created under Chapter 172 of this
3156	3156	code or Chapter 623, Acts of the 67th Legislature, Regular Session,
3157	3157	1981 (former Article 6550c, Vernon's Texas Civil Statutes).
3158	3158	SECTION 4.03. Subdivisions (2), (4), and (5), Section
3159	3159	171.001, Transportation Code, are amended to read as follows:
3160	3160	(2) "Bonds" has the meaning assigned by Section
3161	3161	172.001 [Chapter 623, Acts of the 67th Legislature, Regular
3162	3162	Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes)].
3163	3163	(4) "Rail facilities" has the meaning assigned by
3164	3164	Section 172.001 [Chapter 623, Acts of the 67th Legislature, Regular
3165	3165	Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes)],
3166	3166	except that the term includes property and interests necessary or
3167	3167	convenient for the provision of a nonrural rail transportation
3168	3168	system.
3169	3169	(5) "Revenue" ["Revenues"] has the meaning assigned by
3170	3170	Section 172.001 [Chapter 623, Acts of the 67th Legislature, Regular
3171	3171	Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes)].
3172	3172	SECTION 4.04. Section 171.002, Transportation Code, is
3173	3173	amended to read as follows:
3174	3174	Sec. 171.002. APPLICABILITY OF RURAL RAIL TRANSPORTATION
3175	3175	DISTRICTS LAW. (a) Except as provided by this chapter, the
3176	3176	provisions of Chapter 172 other than Section 172.003 [Sections 2-9,
3177	3177	Chapter 623, Acts of the 67th Legislature, Regular Session, 1981
3178	3178	(Article 6550c, Vernon's Texas Civil Statutes),] apply to a
3179	3179	district as if the district were created under that chapter.
3180	3180	(b) For purposes of applying Chapter 172 [623, Acts of the
3181	3181	67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
3182	3182	Texas Civil Statutes),] to a district created under this chapter, a
3183	3183	reference to "rail facilities" in Chapter 172 [Chapter 623] means
3184	3184	"rail facilities" as defined by Section 171.001.
3185	3185	(c) For purposes of applying Chapter 172 [623, Acts of the
3186	3186	67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
3187	3187	Texas Civil Statutes),] to a district created under this chapter, a
3188	3188	reference in Chapter 172 [Chapter 623] to "eligible county" means a
3189	3189	county that created the district.
3190	3190	SECTION 4.05. Section 171.053, Transportation Code, is
3191	3191	amended to read as follows:
3192	3192	Sec. 171.053. INTERMUNICIPAL COMMUTER RAIL DISTRICT
3193	3193	POWERS. The governing bodies of the county or counties and of the
3194	3194	most populous municipality in the most populous county may provide
3195	3195	that the district may exercise the powers of an intermunicipal
3196	3196	commuter rail district created under Chapter 173 or former Article
3197	3197	6550c-1, Revised Statutes, by specifying in the concurrent order or
3198	3198	ordinance creating the district that those powers may be exercised
3199	3199	by the district.
3200	3200	SECTION 4.06. Section 171.154, Transportation Code, is
3201	3201	amended to read as follows:
3202	3202	Sec. 171.154. INTERMUNICIPAL COMMUTER RAIL POWERS.
3203	3203	(a) The district may exercise the powers of an intermunicipal
3204	3204	commuter rail district created under Chapter 173 or former Article
3205	3205	6550c-1, Revised Statutes, only if the concurrent order or
3206	3206	ordinance creating the district specifies that the district may
3207	3207	exercise those powers. The order or ordinance may not grant the
3208	3208	district the power to impose a tax.
3209	3209	(b) In the event of a conflict between this chapter and a
3210	3210	power granted by Chapter 173 [Article 6550c-1, Revised Statutes],
3211	3211	this chapter controls. In the event of a conflict between Chapter
3212	3212	173 [Article 6550c-1] and Chapter 172 [Chapter 623, Acts of the 67th
3213	3213	Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
3214	3214	Civil Statutes)], Chapter 172 [Article 6550c] controls over Chapter
3215	3215	173 [Article 6550c-1].
3216	3216	SECTION 4.07. Section 171.251, Transportation Code, is
3217	3217	amended to read as follows:
3218	3218	Sec. 171.251. PLEDGE OF REVENUE [REVENUES]. A district may
3219	3219	secure and pledge revenue [revenues] derived from any source to
3220	3220	secure the payment of district bonds.
3221	3221	SECTION 4.08. Section 171.302, Transportation Code, is
3222	3222	amended to read as follows:
3223	3223	Sec. 171.302. DISSOLUTION. In addition to the dissolution
3224	3224	procedures provided by Chapter 172 [Chapter 623, Acts of the 67th
3225	3225	Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
3226	3226	Civil Statutes)], the board may dissolve a district if:
3227	3227	(1) all district liabilities have been paid or
3228	3228	adequate provision has been made for the payment of all
3229	3229	liabilities;
3230	3230	(2) the district is not a party to any lawsuits or
3231	3231	adequate provision has been made for the satisfaction of any
3232	3232	judgment or order that may be entered against the district in a
3233	3233	lawsuit to which the district is a party; and
3234	3234	(3) the district has commitments from other
3235	3235	governmental entities to assume jurisdiction of all district rail
3236	3236	facilities.
3237	3237	SECTION 4.09. Subsection (d), Section 370.186,
3238	3238	Transportation Code, is amended to read as follows:
3239	3239	(d) An authority may not construct, maintain, or operate a
3240	3240	passenger rail facility within the boundaries of an intermunicipal
3241	3241	commuter rail district created under former Article 6550c-1,
3242	3242	Vernon's Texas Civil Statutes, as those boundaries existed on
3243	3243	September 1, 2005, unless the district and the authority enter into
3244	3244	a written agreement specifying the terms and conditions under which
3245	3245	the project will be undertaken.
3246	3246	SECTION 4.10. Subsection (d), Section 452.056,
3247	3247	Transportation Code, is amended to read as follows:
3248	3248	(d) A private operator who contracts with an authority under
3249	3249	this chapter is not a public entity for purposes of any law of this
3250	3250	state except that an independent contractor of the authority that,
3251	3251	on or after June 14, 1989, performs a function of the authority or
3252	3252	an entity described by Section 452.0561 [under Title 112, Revised
3253	3253	Statutes,] that is created to provide transportation services is
3254	3254	liable for damages only to the extent that the authority or entity
3255	3255	would be liable if the authority or entity itself were performing
3256	3256	the function and only for a cause of action that accrues on or after
3257	3257	that date.
3258	3258	SECTION 4.11. Subsection (b), Section 25.07, Tax Code, as
3259	3259	amended by Chapters 609, 885, and 1169, Acts of the 80th
3260	3260	Legislature, Regular Session, 2007, is reenacted and amended to
3261	3261	read as follows:
3262	3262	(b) Except as provided by Sections 11.11(b) and (c), a
3263	3263	leasehold or other possessory interest in exempt property may not
3264	3264	be listed if:
3265	3265	(1) the property is permanent university fund land;
3266	3266	(2) the property is county public school fund
3267	3267	agricultural land;
3268	3268	(3) the property is a part of a public transportation
3269	3269	facility owned by a municipality or county and:
3270	3270	(A) is an airport passenger terminal building or
3271	3271	a building used primarily for maintenance of aircraft or other
3272	3272	aircraft services, for aircraft equipment storage, or for air
3273	3273	cargo;
3274	3274	(B) is an airport fueling system facility;
3275	3275	(C) is in a foreign-trade zone:
3276	3276	(i) that has been granted to a joint airport
3277	3277	board under Subchapter C, Chapter 681, Business & Commerce Code;
3278	3278	(ii) the area of which in the portion of the
3279	3279	zone located in the airport operated by the joint airport board does
3280	3280	not exceed 2,500 acres; and
3281	3281	(iii) that is established and operating
3282	3282	pursuant to federal law; or
3283	3283	(D)(i) is in a foreign trade zone established
3284	3284	pursuant to federal law after June 1, 1991, that [which] operates
3285	3285	pursuant to federal law;
3286	3286	(ii) is contiguous to or has access via a
3287	3287	taxiway to an airport located in two counties, one of which has a
3288	3288	population of 500,000 or more according to the federal decennial
3289	3289	census most recently preceding the establishment of the foreign
3290	3290	trade zone; and
3291	3291	(iii) is owned, directly or through a
3292	3292	corporation organized under the Development Corporation Act
3293	3293	(Subtitle C1, Title 12, Local Government Code), by the same
3294	3294	municipality that [which] owns the airport;
3295	3295	(4) the interest is in a part of:
3296	3296	(A) a park, market, fairground, or similar public
3297	3297	facility that is owned by a municipality; or
3298	3298	(B) a convention center, visitor center, sports
3299	3299	facility with permanent seating, concert hall, arena, or stadium
3300	3300	that is owned by a municipality as such leasehold or possessory
3301	3301	interest serves a governmental, municipal, or public purpose or
3302	3302	function when the facility is open to the public, regardless of
3303	3303	whether a fee is charged for admission;
3304	3304	(5) the interest involves only the right to use the
3305	3305	property for grazing or other agricultural purposes; [or]
3306	3306	(6) the property is:
3307	3307	(A) owned by a municipality, a public port, or a
3308	3308	navigation district created or operating under Section 59, Article
3309	3309	XVI, Texas Constitution, or under a statute enacted under Section
3310	3310	59, Article XVI, Texas Constitution; and
3311	3311	(B) used as an aid or facility incidental to or
3312	3312	useful in the operation or development of a port or waterway or in
3313	3313	aid of navigation-related commerce; or
3314	3314	(7) [(8)] the property is part of a rail facility
3315	3315	owned by a rural rail transportation district [created or]
3316	3316	operating under Chapter 172, Transportation Code [623, Acts of the
3317	3317	67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
3318	3318	Texas Civil Statutes)].
3319	3319	ARTICLE 5. REPEALER
3320	3320	SECTION 5.01. (a) The following provisions are repealed:
3321	3321	(1) Title 112, Revised Statutes;
3322	3322	(2) Article 3922, Revised Statutes;
3323	3323	(3) Chapter 480 (H.B. 1656), Acts of the 73rd
3324	3324	Legislature, Regular Session, 1993 (Article 6370c, Vernon's Texas
3325	3325	Civil Statutes);
3326	3326	(4) Section 1, Chapter 140 (H.B. 525), Acts of the 40th
3327	3327	Legislature, Regular Session, 1927 (Article 6447a, Vernon's Texas
3328	3328	Civil Statutes);
3329	3329	(5) Section 1, Chapter 43 (H.B. 105), Acts of the 41st
3330	3330	Legislature, 5th Called Session, 1930 (Article 6472a, Vernon's
3331	3331	Texas Civil Statutes);
3332	3332	(6) Section 1, Chapter 262 (S.B. 125), Acts of the 41st
3333	3333	Legislature, Regular Session, 1929 (Article 6519a, Vernon's Texas
3334	3334	Civil Statutes);
3335	3335	(7) Section 8, Chapter 65 (S.B. 389), Acts of the 67th
3336	3336	Legislature, Regular Session, 1981 (Article 6519c, Vernon's Texas
3337	3337	Civil Statutes); and
3338	3338	(8) Chapter 623 (H.B. 1822), Acts of the 67th
3339	3339	Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
3340	3340	Civil Statutes).
3341	3341	(b) The repeal of Title 112, Revised Statutes, by this Act
3342	3342	does not affect the validity of statutes that were not added to
3343	3343	Title 112, Revised Statutes, by the legislature, but were
3344	3344	unofficially printed in that title by any publisher of the Texas
3345	3345	statutes, except as those articles are specifically repealed in
3346	3346	Subsection (a) of this section.
3347	3347	ARTICLE 6. LEGISLATIVE INTENT; EFFECTIVE DATE
3348	3348	SECTION 6.01. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
3349	3349	This Act is enacted under Section 43, Article III, Texas
3350	3350	Constitution. No substantive change in law is intended by this Act.
3351	3351	SECTION 6.02. EFFECTIVE DATE. This Act takes effect April
3352	3352	1, 2011.
3353	3353	______________________________ ______________________________
3354	3354	President of the Senate Speaker of the House
3355	3355	I hereby certify that S.B. No. 1540 passed the Senate on
3356	3356	April 23, 2009, by the following vote: Yeas 30, Nays 0.
3357	3357	______________________________
3358	3358	Secretary of the Senate
3359	3359	I hereby certify that S.B. No. 1540 passed the House on
3360	3360	May 11, 2009, by the following vote: Yeas 147, Nays 0, two
3361	3361	present not voting.
3362	3362	______________________________
3363	3363	Chief Clerk of the House
3364	3364	Approved:
3365	3365	______________________________
3366	3366	Date
3367	3367	______________________________
3368	3368	Governor