Texas 2009 - 81st Regular

Texas Senate Bill SB1540 Latest Draft

Bill / Enrolled Version Filed 02/01/2025

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                            S.B. No. 1540


 AN ACT
 relating to a nonsubstantive revision of statutes relating to
 railroads; including conforming amendments.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. GENERAL MATTERS
 SECTION 1.01. PURPOSE OF ACT. (a) This Act is enacted as a
 part of the state's continuing statutory revision program under
 Section 323.007, Government Code. The program contemplates a
 topic-by-topic revision of the state's general and permanent
 statute law without substantive change.
 (b) Consistent with the objectives of the statutory
 revision program, the purpose of this Act is to make the law
 encompassed by this Act more accessible and understandable by:
 (1) rearranging the statutes into a more logical
 order;
 (2) employing a format and numbering system designed
 to facilitate citation of the law and to accommodate future
 expansion of the law;
 (3) eliminating repealed, duplicative, expired, and
 executed provisions; and
 (4) restating the law in modern American English to
 the greatest extent possible.
 ARTICLE 2. TRANSFER OF PROVISIONS FROM TITLE 112, REVISED
 STATUTES, TO TRANSPORTATION CODE
 SECTION 2.01. Subtitle A, Title 5, Transportation Code, is
 redesignated as Subtitle B, Title 5, Transportation Code, and the
 subtitle heading is amended to read as follows:
 SUBTITLE B [A]. STATE RAIL FACILITIES [TEXAS DEPARTMENT OF
 TRANSPORTATION]
 SECTION 2.02. Title 5, Transportation Code, is amended by
 adding a new Subtitle A to read as follows:
 SUBTITLE A. GENERAL PROVISIONS
 CHAPTER 81. GENERAL PROVISIONS
 Sec. 81.001. DEFINITIONS
 Sec. 81.002. APPLICABILITY
 SUBTITLE A. GENERAL PROVISIONS
 CHAPTER 81. GENERAL PROVISIONS
 Sec. 81.001. DEFINITIONS. In this title:
 (1) "Commission" means the Texas Transportation
 Commission.
 (2) "Department" means the Texas Department of
 Transportation. (New.)
 Sec. 81.002. APPLICABILITY. In this title, a reference to a
 railroad company includes:
 (1) a railroad incorporated before September 1, 2007,
 under former Title 112, Revised Statutes; or
 (2) any other legal entity operating a railroad,
 including an entity organized under the Texas Business Corporation
 Act or the Texas Corporation Law provisions of the Business
 Organizations Code. (V.A.C.S. Art. 6259a.)
 SECTION 2.03. Title 5, Transportation Code, is amended by
 adding Subtitles C and D to read as follows:
 SUBTITLE C. RAILROADS GENERALLY
 CHAPTER 111. REGULATION BY TEXAS DEPARTMENT OF TRANSPORTATION
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 111.001. DEFINITION OF PERSON
 Sec. 111.002. POWER AND AUTHORITY
 Sec. 111.003. TRANSFER OF RAILROAD AUTHORITY
 Sec. 111.004. REFERENCE TO RAILROAD COMMISSION
 [Sections 111.005-111.050 reserved for expansion]
 SUBCHAPTER B. REGULATION OF RAILROADS BY DEPARTMENT
 Sec. 111.051. INSPECTION OF BOOKS AND PAPERS; PENALTY
 Sec. 111.052. INFORMATION SOLICITED BY DEPARTMENT
 Sec. 111.053. REFUSAL TO ANSWER BY RAILROAD COMPANY
 OFFICER OR EMPLOYEE; CRIMINAL PENALTY
 Sec. 111.054. REFUSAL TO ANSWER BY RAILROAD COMPANY;
 PENALTY
 Sec. 111.055. WITNESSES
 Sec. 111.056. DEPOSITIONS
 Sec. 111.057. PENALTY NOT OTHERWISE PROVIDED
 Sec. 111.058. SUITS FOR PENALTY
 [Sections 111.059-111.100 reserved for expansion]
 SUBCHAPTER C. DEPARTMENT SAFETY REGULATION
 Sec. 111.101. IMPLEMENTATION OF FEDERAL SAFETY LAWS;
 FEES
 Sec. 111.102. HAZARDOUS MATERIALS INSPECTIONS
 SUBTITLE C. RAILROADS GENERALLY
 CHAPTER 111. REGULATION BY TEXAS DEPARTMENT OF TRANSPORTATION
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 111.001. DEFINITION OF PERSON. In this chapter:
 (1) "person" includes a corporation, as provided by
 Section 312.011, Government Code; and
 (2) the definition of "person" assigned by Section
 311.005, Government Code, does not apply. (New.)
 Sec. 111.002. POWER AND AUTHORITY. To the extent not
 preempted by federal law, the department:
 (1) has power and authority over:
 (A) railroads, including suburban, belt, and
 terminal railroads;
 (B) public wharves, docks, piers, elevators,
 warehouses, sheds, tracks, and other property used in connection
 with railroads; and
 (C) persons, associations, and private or
 municipal corporations that own or operate a railroad, or a wharf,
 dock, pier, elevator, warehouse, shed, track, or other property
 used in connection with a railroad; and
 (2) shall govern and regulate those railroads,
 persons, associations, and corporations and prevent abuses in the
 conduct of their business. (V.A.C.S. Art. 6445, Subsec. (a).)
 Sec. 111.003. TRANSFER OF RAILROAD AUTHORITY. On October
 1, 2005, all powers and duties of the Railroad Commission of Texas
 that related primarily to railroads and the regulation of railroads
 and that existed on that date were transferred to the department, as
 provided by Chapter 281, Acts of the 79th Legislature, Regular
 Session, 2005. (V.A.C.S. Art. 6445, Subsec. (b).)
 Sec. 111.004. REFERENCE TO RAILROAD COMMISSION. Any
 reference in law to the Railroad Commission of Texas that relates
 primarily to railroads and the regulation of railroads means the
 department. (V.A.C.S. Art. 6445, Subsec. (c).)
 [Sections 111.005-111.050 reserved for expansion]
 SUBCHAPTER B. REGULATION OF RAILROADS BY DEPARTMENT
 Sec. 111.051. INSPECTION OF BOOKS AND PAPERS; PENALTY.
 (a) A member of the commission or a person authorized in writing by
 a member of the commission under the hand and seal of the department
 may at any time:
 (1) inspect the books and papers of a railroad
 company; and
 (2) examine under oath a railroad company officer,
 agent, or employee in relation to the business and affairs of the
 company.
 (b) A railroad company that refuses to permit an examination
 of the company's books and papers under Subsection (a) is liable to
 the state, for each violation, for a penalty of not less than $125
 or more than $500 for each day the company fails or refuses to
 permit the examination.
 (c) An officer, agent, or employee of a railroad company who
 possesses or controls any book or paper of the company commits an
 offense if, after proper demand, the officer, agent, or employee
 fails or refuses to exhibit, to any member of the commission or any
 person authorized to investigate, the book or paper. An offense
 under this subsection is a misdemeanor punishable by a fine of not
 less than $125 or more than $500. (V.A.C.S. Arts. 6464, 6465,
 6559i-1.)
 Sec. 111.052. INFORMATION SOLICITED BY DEPARTMENT.
 (a) The department shall as often as necessary provide each
 railroad company a questionnaire designed to elicit all information
 concerning the railroad.
 (b) A railroad company receiving a questionnaire under
 Subsection (a) shall properly fill out the questionnaire and answer
 each question fully and correctly. A railroad company that is
 unable to answer a question shall give satisfactory reason for the
 inability to answer.
 (c) A railroad company shall return the completed
 questionnaire, sworn to by the proper officer of the company, to the
 department not later than the 30th day after the date the company
 received the questionnaire. (V.A.C.S. Art. 6467.)
 Sec. 111.053. REFUSAL TO ANSWER BY RAILROAD COMPANY OFFICER
 OR EMPLOYEE; CRIMINAL PENALTY. (a) An officer or employee of a
 railroad company commits an offense if the officer or employee:
 (1) fails or refuses to fill out and return a
 questionnaire to the department as required by law;
 (2) fails or refuses to answer any question in a
 questionnaire;
 (3) gives a false answer to any question in a
 questionnaire if the answer to the question is within the officer's
 or employee's knowledge; or
 (4) evades the answer to any question in a
 questionnaire.
 (b) An offense under this section is a misdemeanor
 punishable by a fine of $500 for each day that the officer or
 employee violates this section after the date the questionnaire is
 due to the department. (V.A.C.S. Art. 6559i-2.)
 Sec. 111.054. REFUSAL TO ANSWER BY RAILROAD COMPANY;
 PENALTY. (a) A railroad company is liable to the state for a
 penalty of $500 if:
 (1) an officer or employee of the company:
 (A) fails or refuses to fill out and return a
 questionnaire under Section 111.052;
 (B) fails or refuses to answer a question in a
 questionnaire under Section 111.052;
 (C) gives a false answer to a question in a
 questionnaire under Section 111.052 and the fact inquired of is
 within the officer's or employee's knowledge; or
 (D) evades the answer to such a question in a
 questionnaire under Section 111.052; and
 (2) it appears that the officer or employee acted in
 obedience to the company's direction, permission, or request in the
 officer's or employee's failure, refusal, or evasion.
 (b) The department may prescribe a system of bookkeeping to
 be observed by each railroad company that receives a questionnaire
 under Section 111.052, under the penalties of Subsection (a).
 (V.A.C.S. Art. 6468.)
 Sec. 111.055. WITNESSES. (a) This section applies only to
 the extent that it does not conflict with Chapter 2001, Government
 Code.
 (b) In an examination or investigation under this chapter,
 the department may compel the attendance of witnesses and may issue
 subpoenas for witnesses in accordance with rules prescribed by the
 department. The officer to whom process is directed shall serve it.
 (c) A witness who appears before the department by order of
 the department at a place outside the county where the witness
 resides is entitled to receive for the witness's attendance:
 (1) $1 for each day; and
 (2) three cents for each mile the witness travels, by
 the nearest practical route, in going to and returning from that
 place.
 (d) On the presentation of proper vouchers, sworn to by the
 witness and approved by the department, the comptroller shall pay
 the witness the amount to which the witness is entitled.
 (e) A witness is not entitled to fees or mileage if, when
 summoned at the request of a railroad, the witness:
 (1) is directly or indirectly interested in the
 railroad;
 (2) is in any way interested in stock, a bond, a
 mortgage, or a security, or the earnings of the railroad; or
 (3) was an officer, agent, or employee of the
 railroad.
 (f) A witness furnished with free transportation may not
 receive pay for the distance the witness travels on the free
 transportation.
 (g) The department may issue an attachment as in civil cases
 for a witness who fails or refuses to obey a subpoena and may compel
 the witness to appear before the department and testify on a matter
 as the department requires.
 (h) If a witness, after being summoned, fails or refuses to
 attend or to answer a question asked of the witness that the witness
 would be required to answer if in court, the department may fine and
 imprison the witness for contempt in the same manner that a judge of
 the district court might do under similar circumstances.
 (i) The claim that testimony might tend to incriminate the
 person giving the testimony does not excuse a witness from
 testifying, but the evidence or testimony may not be used against
 the witness in a criminal trial. (New; V.A.C.S. Art. 6471.)
 Sec. 111.056. DEPOSITIONS. (a) The department may in its
 discretion issue process to take the testimony of a witness by a
 written or oral deposition instead of compelling the personal
 attendance of the witness.
 (b) An officer executing process issued under a provision of
 this subtitle or Subtitle D may charge a fee as determined by the
 department, not to exceed fees prescribed by law for similar
 services. (V.A.C.S. Art. 6472.)
 Sec. 111.057. PENALTY NOT OTHERWISE PROVIDED. A railway
 company doing business in this state is liable to the state for a
 penalty of not more than $5,000 each time the railway company:
 (1) violates any provision of this subtitle or
 Subtitle D or fails or refuses to perform any duty imposed upon it
 for which a penalty has not been provided by law; or
 (2) fails, neglects, or refuses to obey any
 requirement, order, judgment, or decree of the department.
 (V.A.C.S. Art. 6476.)
 Sec. 111.058. SUITS FOR PENALTY. (a) For a penalty
 provided under this chapter that is recoverable by the state, the
 attorney general, or an attorney acting under the direction of the
 attorney general, may bring suit in the name of the state in:
 (1) Travis County; or
 (2) any county in or through which the railroad runs.
 (b) The attorney bringing a suit under this section is
 entitled to receive:
 (1) a fee to be paid by the state of $50 for each
 penalty recovered and collected by the attorney; and
 (2) 10 percent of the amount collected.
 (c) In all suits arising under this chapter or Section
 112.003, the rules of evidence shall be the same as in ordinary
 civil actions, except as otherwise provided by this chapter.
 (V.A.C.S. Art. 6477 (part).)
 [Sections 111.059-111.100 reserved for expansion]
 SUBCHAPTER C. DEPARTMENT SAFETY REGULATION
 Sec. 111.101. IMPLEMENTATION OF FEDERAL SAFETY LAWS; FEES.
 (a) The department may perform any act, adopt any rules, and issue
 any orders as permitted by the Federal Railroad Safety Act of 1970,
 originally codified as 45 U.S.C. Sections 421, 431 et seq. and
 recodified in 1994 as 49 U.S.C. Sections 20101-20117, 20131,
 20133-20141, 20143, 21301, 21302, 21304, 21311, 24902, and 24905
 and Sections 4(b)(1), (i), and (t) of Pub. L. No. 103-272.
 (b) The department by rule shall:
 (1) adopt reasonable fees to be assessed annually
 against railroads operating within the state; and
 (2) establish the method by which the fees are
 calculated and assessed.
 (c) The total amount of fees estimated to be collected by
 rules adopted by the department under this section may not exceed
 the amount estimated by the department to be necessary to recover
 the costs of administering the department's rail safety program.
 (d) In adopting a fee structure, the department may consider
 the gross ton miles for railroad operations within this state for
 each railroad operating in the state to provide for the equitable
 allocation among railroads of the cost of administering the
 department's rail safety program.
 (e) A fee collected under this section shall be deposited to
 the credit of the general revenue fund to be used for the rail
 safety program. (V.A.C.S. Art. 6448a.)
 Sec. 111.102. HAZARDOUS MATERIALS INSPECTIONS. (a) The
 department may enter private property on which a railroad facility
 that is connected to but not a part of a general railroad system of
 transportation is located at a reasonable time and in a reasonable
 manner to perform an inspection, investigation, or surveillance of
 facilities, equipment, records, and operations relating to the
 packaging, loading, or transportation of hazardous materials to
 determine whether the railroad facility complies with the
 applicable safety requirements of this chapter or a rule adopted
 under this chapter.
 (b) In performing an inspection under this section, the
 department may not require a railroad facility owner or operator to
 alter or cease rail operations.
 (c) Any inspection, investigation, or surveillance
 performed on the site of a manufacturing facility shall be
 performed in compliance with the safety rules of the facility,
 including a rule regarding security clearance at the front gate if
 appropriate. (V.A.C.S. Art. 6448b.)
 CHAPTER 112. POWERS AND DUTIES OF RAILROADS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 112.001. DEFINITION OF PERSON
 Sec. 112.002. GENERAL RIGHTS OF RAILROADS
 Sec. 112.003. DAMAGES
 [Sections 112.004-112.050 reserved for expansion]
 SUBCHAPTER B. ACQUISITION AND USE OF PROPERTY BY RAILROAD OR OF RAILROAD
 RAILROAD
 Sec. 112.051. ENTRY ONTO PRIVATE PROPERTY
 Sec. 112.052. ACQUISITION OF PROPERTY FOR CHANGE,
 LINE
 Sec. 112.053. CONDEMNATION OF PROPERTY: WHEN RAILROAD
 COMPANY AND OWNER DISAGREE
 Sec. 112.054. CONDEMNATION OF PROPERTY: CERTAIN
 TERMINAL SWITCHING RAILROADS
 Sec. 112.055. RIGHT-OF-WAY ACQUIRED BY CONDEMNATION
 Sec. 112.056. CONDEMNATION OF PROPERTY FOR CERTAIN
 ROADS
 Sec. 112.057. CONSTRUCTION ON OR NEAR CERTAIN
 WATERWAYS OR ROADS
 Sec. 112.058. INTERSECTION OF RAIL LINE AND ROAD OR
 STREET
 Sec. 112.059. CROSSINGS OF PUBLIC ROADS
 Sec. 112.060. CONVERSION OF PROPERTY IN CUSTODY OF
 RAILROAD COMPANY
 Sec. 112.061. SUIT INVOLVING RAILROAD COMPANY PROPERTY
 Sec. 112.062. RAILROAD COMPANY PROPERTY SUBJECT TO EXECUTION;
 CHARACTERIZATION OF ROLLING STOCK
 [Sections 112.063-112.100 reserved for expansion]
 SUBCHAPTER C. SAFETY
 Sec. 112.101. CATTLE GUARDS
 Sec. 112.102. LIABILITY FOR DEATH OR INJURY TO STOCK
 Sec. 112.103. DUTY TO STOP AND RENDER AID; OFFENSE
 [Sections 112.104-112.150 reserved for expansion]
 SUBCHAPTER D. LIABILITY FOR INJURIES TO EMPLOYEES
 Sec. 112.151. APPLICABILITY OF SUBCHAPTER
 Sec. 112.152. LIABILITY GENERALLY FOR INJURY TO OR
 DEATH OF EMPLOYEE
 Sec. 112.153. CONTRIBUTORY NEGLIGENCE
 Sec. 112.154. ASSUMED RISK
 Sec. 112.155. CERTAIN PROVISIONS VOID
 Sec. 112.156. LIABILITY OFFSET
 Sec. 112.157. CONSTRUCTION OF CERTAIN SECTIONS
 Sec. 112.158. INJURY TO FELLOW SERVANT
 CHAPTER 112. POWERS AND DUTIES OF RAILROADS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 112.001. DEFINITION OF PERSON. In this chapter:
 (1) "person" includes a corporation, as provided by
 Section 312.011, Government Code; and
 (2) the definition of "person" assigned by Section
 311.005, Government Code, does not apply. (New.)
 Sec. 112.002. GENERAL RIGHTS OF RAILROADS. (a) A railroad
 company has the right to succession.
 (b) A railroad company may:
 (1) sue, be sued, plead, and be impleaded in its
 corporate name;
 (2) have and use a seal and alter the seal at will;
 (3) receive and convey persons and property on its
 railway by any mechanical power, including the use of steam;
 (4) regulate the time and manner in which, and the
 compensation for which, passengers and property are transported,
 subject to the provisions of law;
 (5) exercise the power of eminent domain for the
 purposes prescribed by this subtitle or Subtitle D;
 (6) purchase, hold, and use all property as necessary
 for the construction and use of its railway, stations, and other
 accommodations necessary to accomplish company objectives, and
 convey that property when no longer required for railway use; and
 (7) take, hold, and use property granted to the
 company to aid in the construction and use of its railway, and
 convey that property in a manner consistent with the terms of the
 grant when the property is no longer required for railway use.
 (V.A.C.S. Art. 6341.)
 Sec. 112.003. DAMAGES. A railroad subject to this subtitle
 or Subtitle D is liable to a person, firm, or corporation injured
 for the damages resulting from:
 (1) a prohibited or unlawful act or thing that the
 railroad does or causes or permits to be done; or
 (2) failure of the railroad to perform an act the
 railroad is required to perform under this subtitle or Subtitle D.
 (V.A.C.S. Art. 6475.)
 [Sections 112.004-112.050 reserved for expansion]
 SUBCHAPTER B. ACQUISITION AND USE OF PROPERTY BY RAILROAD OR OF
 RAILROAD
 Sec. 112.051. ENTRY ONTO PRIVATE PROPERTY. (a) A railroad
 company is entitled to make an examination and survey for the
 company's proposed railway, to be performed as necessary to select
 the most advantageous route for the proposed railway, and, subject
 to Subsection (c), may enter on the lands or waters of any person or
 corporation for that purpose.
 (b) A railroad company is responsible for any damages
 arising from an examination or survey under this section.
 (c) Except for the purposes of performing a lineal survey, a
 railroad company may not enter on private real property for the
 purpose of condemning the property or any material on the property
 for any purpose until the company agrees with and pays the owner of
 the property all damages that may be caused to the owner's property
 by the condemnation of the property and by the construction of the
 company's road. (V.A.C.S. Arts. 6318, 6337.)
 Sec. 112.052. ACQUISITION OF PROPERTY FOR CHANGE,
 RELOCATION, OR ABANDONMENT OF RAILROAD LINE. (a) Subject to
 Subsection (b), a railroad company or a receiver of a railroad that
 changes, relocates, or abandons a line of railroad in this state may
 acquire by condemnation or otherwise land for:
 (1) right-of-way;
 (2) depot grounds;
 (3) shops;
 (4) roundhouses;
 (5) water supply sites;
 (6) sidings;
 (7) switches;
 (8) spurs; or
 (9) any other purpose connected with or necessary to
 the building or operating of the line of railroad, as changed,
 relocated, or abandoned.
 (b) Property acquired under this section must be declared
 for and charged with public use. (V.A.C.S. Art. 6351.)
 Sec. 112.053. CONDEMNATION OF PROPERTY: WHEN RAILROAD
 COMPANY AND OWNER DISAGREE. (a) A railroad company may acquire
 property by condemnation if the company cannot agree with the owner
 for the purchase of the property and the property is required for
 any of the following purposes:
 (1) the incorporation of the railroad;
 (2) the transaction of company business;
 (3) depots, station buildings, and machine and repair
 shops;
 (4) the construction of reservoirs for the water
 supply;
 (5) the right-of-way, or new or additional
 right-of-way;
 (6) a change or relocation;
 (7) a roadbed;
 (8) the shortening of a line;
 (9) the reduction of grades;
 (10) the double tracking of the railroad or the
 construction and operation of tracks; or
 (11) any other purpose connected with or necessary to
 the building, operating, or running of the railroad.
 (b) A railroad company may not, under this section, condemn
 property that is located more than two miles from the company's
 right-of-way. (V.A.C.S. Art. 6336.)
 Sec. 112.054. CONDEMNATION OF PROPERTY: CERTAIN TERMINAL
 SWITCHING RAILROADS. (a) This section applies only to the
 condemnation of property for a terminal switching railroad that:
 (1) handles fewer than 10,000 but more than 3,000
 carloads a year; and
 (2) operates in a single county that:
 (A) has a population of 110,000 or more;
 (B) is not adjacent to the Texas border; and
 (C) does not contain a portion of a national
 forest.
 (b) The power to condemn property given to a railroad
 company under this subtitle or Subtitle D, including Section
 112.052 or 112.053, does not apply to any property used for or
 designated under local zoning regulations for residential use
 unless the use of the condemned property is authorized under or in
 conformity with local zoning or development regulations. (V.A.C.S.
 Art. 6336a.)
 Sec. 112.055. RIGHT-OF-WAY ACQUIRED BY CONDEMNATION.
 (a) A right-of-way that a railway company in this state acquires
 by condemnation does not include a fee simple estate in public or
 private land.
 (b) A right-of-way that a railway company acquires by
 condemnation is not lost on forfeiture or expiration of the railway
 company's charter. The right-of-way remains subject to an
 extension of the charter or the grant of a new charter, and a new
 condemnation of the way is not required. (V.A.C.S. Art. 6339.)
 Sec. 112.056. CONDEMNATION OF PROPERTY FOR CERTAIN ROADS.
 (a) Subject to Subsection (b), a corporation created to build,
 maintain, and operate a line of railroads to a mine, gin, quarry,
 manufacturing plant, or mill may acquire by condemnation land
 necessary for the right-of-way for a road connecting the mine, gin,
 quarry, manufacturing plant, or mill to the nearest line of
 railroad.
 (b) The corporation may condemn property under this section
 only if the corporation declares itself a common carrier and its
 railroads public highways, placing the road under the control of
 the department. (V.A.C.S. Art. 6550.)
 Sec. 112.057. CONSTRUCTION ON OR NEAR CERTAIN WATERWAYS OR
 ROADS. (a) A railroad company may construct the company's road
 across, along, or on any stream of water, water course, street,
 highway, turnpike, or canal where the route of the company's
 railway intersects or touches the stream, water course, street,
 highway, turnpike, or canal.
 (b) The railroad company shall:
 (1) restore the stream, water course, street, highway,
 turnpike, or canal to its former state or to a state in which its
 usefulness is not unnecessarily impaired; and
 (2) keep the crossing in repair. (V.A.C.S. Art.
 6320.)
 Sec. 112.058. INTERSECTION OF RAIL LINE AND ROAD OR STREET.
 Sections 112.051, 112.053, 112.054, 112.055, 112.057, 112.059, and
 112.061 do not affect a law that requires a railroad company to
 provide a proper crossing at each intersection of a road or street.
 (V.A.C.S. Art. 6326.)
 Sec. 112.059. CROSSINGS OF PUBLIC ROADS. (a) Each
 railroad company in this state shall place and keep the portion of
 the company's roadbed and right-of-way over or across which a
 public county road runs in proper condition for the use of the
 traveling public.
 (b) A railroad company is liable for a penalty of $10 for
 each week the company does not comply with the requirements of this
 section if:
 (1) the overseer of a public road gives written notice
 to the company's person responsible for maintaining the area where
 the work is needed; and
 (2) the company fails to complete the work or repairs
 within 30 days after the date written notice is given under
 Subdivision (1).
 (c) A county attorney, on the making of an affidavit of the
 facts by any person, shall immediately institute a suit against the
 railroad company to recover the penalty provided by this section. A
 county attorney's wilful failure or refusal to comply with this
 subsection is sufficient cause for the county attorney to be
 removed from office unless it is evident that the suit could not
 have been maintained.
 (d) A proceeding under this section shall be conducted in
 the name of the county and in the same manner as a proceeding in a
 civil suit.
 (e) A county attorney is entitled to a fee of $10, taxed as
 costs, for each suit maintained by the county attorney under this
 section. If two or more penalties are sought in the same suit only
 one fee may be recovered under this subsection.
 (f) If the county is cast in the suit, the county may not be
 charged costs.
 (g) A penalty collected under this section shall be
 deposited in the road and bridge fund of the county in which the
 suit is brought. (V.A.C.S. Art. 6327.)
 Sec. 112.060. CONVERSION OF PROPERTY IN CUSTODY OF RAILROAD
 COMPANY. (a) A railroad company in this state or a receiver of a
 railroad company in this state may not confiscate or otherwise
 convert to the company's or receiver's own use, in whole or in
 substantial part, a carload shipment of any article or commodity of
 freight traffic received by the company or receiver for
 transportation and delivery without the express consent of the
 owner or consignee of the shipment.
 (b) An act of an agent, officer, or employee of a railroad
 company or receiver under this section that is within the apparent
 scope of the agent's, officer's, or employee's duties or authority
 with respect to the confiscation or conversion is considered to be
 an act of the company or receiver.
 (c) This section does not apply to a conversion of freight
 that has been damaged or intermingled with other freight in wrecks,
 or to refused or unclaimed freight, that the railroad is unable to
 deliver.
 (d) In addition to all other remedies or penalties that may
 be provided by law, a railroad company or receiver that violates
 this section is subject to:
 (1) a penalty in favor of the state of not less than
 $125 or more than $500; and
 (2) an additional penalty in favor of the owner or
 consignee of the converted shipment equal to twice the amount of the
 purchase price of the converted shipment. (V.A.C.S. Arts. 6366,
 6367.)
 Sec. 112.061. SUIT INVOLVING RAILROAD COMPANY PROPERTY.
 (a) If a railroad company is sued for property occupied by the
 company for railroad purposes or for damages to property occupied
 by the company for railroad purposes, the court in which the suit is
 pending may determine all matters in dispute between the parties,
 including the condemnation of the property, on petition or cross
 bill by the defendant requesting that remedy.
 (b) A plea for condemnation under Subsection (a) is
 considered an admission of the plaintiff's title to the property.
 (V.A.C.S. Art. 6338.)
 Sec. 112.062. RAILROAD COMPANY PROPERTY SUBJECT TO
 EXECUTION; CHARACTERIZATION OF ROLLING STOCK. (a) All or any part
 of a railroad company's real and personal property is subject to
 execution and sale in the same manner as the property of
 individuals.
 (b) No portion of a railroad company's real or personal
 property is exempt from execution and sale.
 (c) The rolling stock and all other movable property
 belonging to a railroad company is considered personal property.
 (V.A.C.S. Art. 6420.)
 [Sections 112.063-112.100 reserved for expansion]
 SUBCHAPTER C. SAFETY
 Sec. 112.101. CATTLE GUARDS. (a) A railroad company whose
 railroad passes through a field or enclosure shall construct and
 keep in good repair a good and sufficient cattle guard or stop at
 each location the railroad enters the field or enclosure.
 (b) If a field or enclosure through which a railway passes
 is enlarged or extended, or the owner of any land over which a
 railway runs clears and opens a field so as to include the track of a
 railway, the railroad company shall construct and keep in repair
 good and sufficient cattle guards or stops at the borders of the
 extended enclosures or fields or the new fields.
 (c) A cattle guard or stop required by this section shall be
 constructed and kept in repair to protect the fields and enclosures
 from the depredations of stock of any kind.
 (d) If a railroad company fails to construct and keep in
 repair a cattle guard or stop required by this section, the owner of
 the enclosure or field may:
 (1) have the required cattle guards or stops
 constructed at the proper places and kept in repair; and
 (2) recover from the company the costs of constructing
 or repairing the required cattle guards or stops, unless it is shown
 that the enlargement or extension was made capriciously and with
 intent to harass and molest the company.
 (e) A railroad company that neglects to construct or keep in
 repair a proper cattle guard or stop as required by this section is
 liable to a party injured by the neglect for all damages that may
 result from the neglect. The injured party may seek to recover the
 damages by filing suit. (V.A.C.S. Art. 6400.)
 Sec. 112.102. LIABILITY FOR DEATH OR INJURY TO STOCK.
 (a) Subject to Subsection (b), a railroad company is liable to the
 owner for the value of all stock killed or injured by the company's
 locomotives and cars operating over the company's railways,
 regardless of whether the county or subdivision of a county in which
 the death or injury occurs has, under Subchapter B or D, Chapter
 143, Agriculture Code, prohibited certain animals from running at
 large.
 (b) A railroad company that fences its railway is liable
 only for injury to stock that results from a want of ordinary care.
 (V.A.C.S. Art. 6402.)
 Sec. 112.103. DUTY TO STOP AND RENDER AID; OFFENSE. (a) In
 this section, "operator" means the person assigned by a railroad
 company to be responsible for the operation of a train.
 (b) An operator who is involved, while operating a
 locomotive, in an accident resulting in injury to or death of a
 person or damage to a vehicle that is driven or attended by a person
 shall immediately stop the locomotive at the scene of the accident.
 (c) The operator shall render to a person injured in the
 accident reasonable assistance, including transporting, or the
 making of arrangements for transporting, the person to a physician,
 surgeon, or hospital for medical or surgical treatment if it is
 apparent that treatment is necessary or if the injured person
 requests transportation.
 (d) A person who violates this section commits an offense.
 An offense under this subsection is a Class C misdemeanor.
 (V.A.C.S. Art. 6419b; New.)
 [Sections 112.104-112.150 reserved for expansion]
 SUBCHAPTER D. LIABILITY FOR INJURIES TO EMPLOYEES
 Sec. 112.151. APPLICABILITY OF SUBCHAPTER.
 Notwithstanding any other law, this subchapter does not apply to
 the portion of a person's, receiver's, or corporation's operations
 that:
 (1) consists solely of the fabrication, manufacture,
 repair, or storage of rail rolling stock; or
 (2) uses rail cars solely as a part of its own internal
 manufacturing or production process. (V.A.C.S. Art. 6432A.)
 Sec. 112.152. LIABILITY GENERALLY FOR INJURY TO OR DEATH OF
 EMPLOYEE. (a) A corporation, receiver, or other person operating
 a railroad in this state is liable for damages to a person who,
 while employed by the railroad operator, is injured as a result of:
 (1) the negligence of an officer, agent, or employee
 of the railroad operator; or
 (2) any defect or insufficiency due to the railroad
 operator's negligence in its cars, engines, appliances, machinery,
 track, roadbed, works, boats, wharves, or other equipment.
 (b) If an employee dies as a result of the negligence,
 defect, or insufficiency described by Subsection (a), the railroad
 operator is liable to the employee's personal representative for
 the benefit of the employee's surviving spouse and children and the
 employee's parents or, if the employee is not survived by a spouse,
 child, or parent, to the employee's next of kin who is dependent on
 the employee.
 (c) Damages recovered under Subsection (b) are not liable
 for the debts of the deceased and shall be divided among the persons
 entitled to the benefit of the action who are living, in shares the
 fact finder considers proper.
 (d) An action under Subsection (b) may be brought without
 administration by all parties entitled to damages under that
 subsection, or by any one or more of those parties, for the benefit
 of all of those parties. If all parties entitled to recover are not
 before the court, the action may proceed for the benefit of the
 parties who are before the court. (V.A.C.S. Art. 6439.)
 Sec. 112.153. CONTRIBUTORY NEGLIGENCE. (a) In an action
 under Section 112.152, the employee's contributory negligence is
 not a bar to recovery but the fact finder shall reduce the
 employee's damages in proportion to the amount of contributory
 negligence attributable to the employee.
 (b) An employee may not be found contributorily negligent in
 a case in which the railroad operator's violation of a statute
 enacted for the safety of employees contributed to the employee's
 injury or death. (V.A.C.S. Art. 6440.)
 Sec. 112.154. ASSUMED RISK. (a) The plea of assumed risk
 is not available as a bar to recovery of damages in a suit brought in
 a court in this state against a corporation, receiver, or other
 person operating a railroad, interurban railway, or street railway
 in this state for the recovery of damages for the death of or
 personal injury to an employee caused by the wrong or negligence of
 the railroad or railway operator. An employee assumes the ordinary
 risk incident to the employee's employment but does not assume the
 risk resulting from any negligence of the employee's employer,
 regardless of whether the negligence is known to the employee.
 (b) If in a suit described by Subsection (a) it is alleged
 and proven that the deceased or injured employee was negligent in
 continuing in the service of the railroad or railway operator in
 view of the risk, dangers, and hazards of which the employee knew or
 must necessarily have known, in the ordinary performance of the
 employee's duties, that fact does not bar the employee's recovery,
 but is considered contributory negligence. If contributory
 negligence described by this subsection proximately caused or
 contributed to the cause of the death or injury, the damages
 recoverable by the employee or the employee's heirs or
 representatives shall be reduced only in proportion to the amount
 of negligence attributable to the employee.
 (c) An employee of a railway company who is injured while
 engaged in the operation of a train in this state that is propelled
 by two or more engines is not considered to have assumed the risk of
 that injury if the injury is a result of the operation of two or more
 engines on the train rather than one.
 (d) In an action against a railroad operator under Section
 112.152, an employee may not be held to have assumed the risk of the
 employee's employment in a case in which the railroad operator's
 violation of a statute enacted for the safety of employees
 contributed to the employee's injury or death. (V.A.C.S. Arts.
 6437, 6438, 6441.)
 Sec. 112.155. CERTAIN PROVISIONS VOID. A provision of a
 contract, rule, or device the purpose of which is to exempt a
 railroad operator from liability under Section 112.152 is void to
 the extent of the purported exemption. (V.A.C.S. Art. 6442
 (part).)
 Sec. 112.156. LIABILITY OFFSET. In an action against a
 railroad operator under Section 112.152, the railroad operator may
 offset the railroad operator's liability by the amount of the
 railroad operator's contribution or payment to any insurance,
 relief benefit, or indemnity from which benefits have been paid to
 the injured employee or another person entitled to the benefits as a
 result of the injury or death that is the subject of the action.
 (V.A.C.S. Art. 6442 (part).)
 Sec. 112.157. CONSTRUCTION OF CERTAIN SECTIONS.
 (a) Sections 112.152, 112.153, 112.154(d), 112.155, and 112.156
 do not:
 (1) limit the duty or liability of a railroad operator
 or impair the rights of an employee under the Revised Statutes of
 1925; or
 (2) affect a right of action under another law of this
 state.
 (b) Except as provided by Section 112.151, a section listed
 in Subsection (a) controls over any other provision of the Revised
 Statutes of 1925 with which it conflicts. (V.A.C.S. Art. 6443.)
 Sec. 112.158. INJURY TO FELLOW SERVANT. (a) This section
 applies only to a corporation, receiver, or other person that
 controls or operates a railroad or street railway the line of which
 is located wholly or partly in this state.
 (b) An entity described by Subsection (a) is liable for
 damages sustained by an employee of the entity while the employee is
 engaged in the work of operating the cars, locomotives, or trains of
 the entity as a result of the negligence of any other employee of
 the entity, regardless of whether the negligent employee and the
 employee who sustained the damages are considered fellow servants.
 (c) Persons who are engaged in the common service of an
 entity described by Subsection (a) are considered fellow servants
 only if the persons are:
 (1) employed in the same grade of employment;
 (2) doing the same character of work or service; and
 (3) working together at the same time and place and at
 the same piece of work for a common purpose.
 (d) A person engaged in the service of an entity described
 by Subsection (a) is considered a vice principal of that entity if
 the person is entrusted by the entity with the authority of
 superintendence, control, or command of the other employees of the
 entity, with the authority to direct any other employee in the
 performance of any duty of the employee.
 (e) A vice principal of an entity described by Subsection
 (a) is not considered a fellow servant with other employees of the
 entity.
 (f) A contract between an employer and employee that limits
 the employer's liability under this section in the event of the
 death of or injury to the employee or setting damages that may be
 recovered under this section is not valid or binding.
 (g) This section does not impair or diminish the defense of
 contributory negligence if the injury of the employee is
 proximately caused by the employee's own contributory negligence.
 (V.A.C.S. Arts. 6432, 6433, 6434, 6435, 6436.)
 [Chapters 113-130 reserved for expansion]
 SUBTITLE D. MISCELLANEOUS RAILROADS
 CHAPTER 131. MISCELLANEOUS RAILWAYS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 131.001. DEFINITION OF PERSON
 [Sections 131.002-131.010 reserved for expansion]
 SUBCHAPTER B. ELECTRIC RAILWAYS
 Sec. 131.011. DEFINITION
 Sec. 131.012. EMINENT DOMAIN
 Sec. 131.013. RIGHT-OF-WAY
 Sec. 131.014. CONSTRUCTION OF RAILWAY ALONG OR OVER
 WATERWAY OR INFRASTRUCTURE
 Sec. 131.015. USE OF ELECTRIC STREET RAILWAY TRACKS
 Sec. 131.016. TIME REQUIRED FOR CONSTRUCTION
 Sec. 131.017. USE OF CONDEMNED TRACK
 [Sections 131.018-131.030 reserved for expansion]
 SUBCHAPTER C. MERGER OF INTERURBAN RAILWAY
 Sec. 131.031. DEFINITION
 Sec. 131.032. ACQUISITION OF RAILWAY PROPERTY
 AUTHORIZED
 Sec. 131.033. MUNICIPAL CONSENT REQUIRED
 Sec. 131.034. USE OF STREET RAILWAYS
 Sec. 131.035. LIMITATION ON ACQUISITION
 [Sections 131.036-131.060 reserved for expansion]
 SUBCHAPTER D. PROVISION OF UTILITIES
 Sec. 131.061. INTERURBAN ELECTRIC RAILWAYS
 Sec. 131.062. SUPPLY AND SALE OF ELECTRICITY BY
 STREET, SUBURBAN, OR BELT LINE RAILWAY
 [Sections 131.063-131.100 reserved for expansion]
 SUBCHAPTER E. REDUCED STREET RAILWAY FARES
 Sec. 131.101. APPLICABILITY
 Sec. 131.102. CHILDREN YOUNGER THAN 13 YEARS OF AGE
 Sec. 131.103. STUDENTS
 Sec. 131.104. CHILDREN YOUNGER THAN SIX YEARS OF AGE
 Sec. 131.105. TRANSFER RIGHTS
 [Sections 131.106-131.900 reserved for expansion]
 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
 Sec. 131.901. STREET AND SUBURBAN RAILWAYS
 Sec. 131.902. FREIGHT INTERURBAN RAILWAYS
 Sec. 131.903. BUILDINGS AND OTHER FACILITIES: CERTAIN
 RAILWAYS
 Sec. 131.904. MOTOR BUS LINES
 SUBTITLE D. MISCELLANEOUS RAILROADS
 CHAPTER 131. MISCELLANEOUS RAILWAYS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 131.001. DEFINITION OF PERSON. In this chapter:
 (1) "person" includes a corporation, as provided by
 Section 312.011, Government Code; and
 (2) the definition of "person" assigned by Section
 311.005, Government Code, does not apply. (New.)
 [Sections 131.002-131.010 reserved for expansion]
 SUBCHAPTER B. ELECTRIC RAILWAYS
 Sec. 131.011. DEFINITION. In this subchapter, "interurban
 electric railway company" means a corporation chartered under the
 laws of this state to conduct and operate an electric railway
 between two municipalities in this state. (V.A.C.S. Art. 6540
 (part).)
 Sec. 131.012. EMINENT DOMAIN. A corporation chartered for
 the purpose of constructing, acquiring, maintaining, or operating
 lines of electric railway between municipalities in this state for
 the transportation of freight, passengers, or both freight and
 passengers may:
 (1) exercise the power of eminent domain with all the
 rights and powers granted by law to a railroad company; and
 (2) enter, condemn, and appropriate land,
 right-of-way, easements, or other property of any person or
 corporation to acquire:
 (A) right-of-way on which to construct and
 operate lines of railway for the acquiring corporation; or
 (B) sites for depots or power plants. (V.A.C.S.
 Art. 6535.)
 Sec. 131.013. RIGHT-OF-WAY. (a) A corporation described
 by Section 131.012 may:
 (1) lay out right-of-way not to exceed 200 feet in
 width for its railways;
 (2) construct its railways and appurtenances on that
 right-of-way; and
 (3) with compensation being made in accordance with
 law:
 (A) take for the purpose of cuttings and
 embankments additional land necessary for the proper construction
 and security of its railways; and
 (B) cut down any tree or remove any structure
 that may be in danger of falling on or obstructing its railway.
 (b) The corporation may:
 (1) have an examination and survey of its proposed
 railway made as necessary to select the most advantageous route;
 and
 (2) for the purposes of Subdivision (1), enter on the
 land or water of any person or corporation, subject to
 responsibility for all damages that may be caused by the entrance,
 examination, or survey. (V.A.C.S. Art. 6536.)
 Sec. 131.014. CONSTRUCTION OF RAILWAY ALONG OR OVER
 WATERWAY OR INFRASTRUCTURE. (a) A corporation described by
 Section 131.012 may construct its railway along, across, or over
 any stream, water course, bay, navigable water, arm of the sea,
 street, highway, steam railway, turnpike, or canal located in the
 route of its electric railway.
 (b) The corporation may erect and operate a bridge, tram,
 trestle, or causeway, over, along, or across any stream, water
 course, bay, navigable water, arm of the sea, street, highway,
 turnpike, or canal described by Subsection (a).
 (c) A bridge or other structure described by Subsection (b)
 may not be erected so as to unnecessarily or unreasonably prevent
 the navigation of the stream, water course, bay, arm of the sea, or
 navigable water.
 (d) This section does not authorize the construction of an
 electric railway on or across a street, alley, square, or property
 of a municipality without the consent of the governing body of the
 municipality.
 (e) Before constructing an electric railway along or on a
 highway, turnpike, or canal, an interurban electric railway company
 must obtain the consent of the authority having jurisdiction over
 the highway, turnpike, or canal. (V.A.C.S. Art. 6537.)
 Sec. 131.015. USE OF ELECTRIC STREET RAILWAY TRACKS.
 (a) An interurban electric railway company's power of eminent
 domain under this subchapter includes the power to condemn for its
 use and benefit easements and right-of-way to operate interurban
 cars along and on the track of an electric street railway company
 owning, controlling, or operating track on any public street or
 alley in a municipality for a purpose described by Subsection (b),
 subject to the consent, authority, and control of the governing
 body of the municipality.
 (b) Condemnation under Subsection (a) may be used only to
 secure an entrance into and an outlet from a municipality on a route
 designated by the governing body of the municipality.
 (c) In a proceeding to condemn an easement or right-of-way
 under this section, the court or the jury trying the case shall
 define and establish the terms on which the easement or
 right-of-way may be used.
 (d) A court rendering a judgment in a proceeding under this
 section may review and reform the terms of a grant and the
 provisions of the judgment on a subsequent application by a party to
 the original proceeding or a person claiming through or under a
 party to the original proceeding.
 (e) The hearing on an application brought under Subsection
 (d) is in the nature of a retrial of the proceeding with respect to
 the terms on which the easement may be used except that the court
 may not declare the easement forfeited or impair the exercise of the
 easement.
 (f) An application under Subsection (d) may not be made
 before the second anniversary of the date of the final judgment on
 the most recent application. (V.A.C.S. Arts. 6538, 6539.)
 Sec. 131.016. TIME REQUIRED FOR CONSTRUCTION. The rights
 secured under this chapter by an interurban electric railway
 company are void unless the road to be constructed under the charter
 of the company is fully constructed from one municipality to
 another within 12 months of the date of the final judgment awarding
 the company an easement or right-of-way under Section 131.015.
 (V.A.C.S. Art. 6540 (part).)
 Sec. 131.017. USE OF CONDEMNED TRACK. (a) Unless the
 company whose track is condemned under this subchapter consents, an
 interurban electric railway company exercising the powers granted
 under this chapter may not receive for transportation freight or
 passengers at any location on the condemned track destined to
 another location on the condemned track.
 (b) A company that wilfully violates Subsection (a)
 forfeits the easement or right-of-way used to provide the
 transportation. (V.A.C.S. Art. 6540 (part).)
 [Sections 131.018-131.030 reserved for expansion]
 SUBCHAPTER C. MERGER OF INTERURBAN RAILWAY
 Sec. 131.031. DEFINITION. In this subchapter, "interurban
 railway" means an electric or other interurban line of railway in
 this state. (V.A.C.S. Art. 6543 (part).)
 Sec. 131.032. ACQUISITION OF RAILWAY PROPERTY AUTHORIZED.
 (a) A corporation organized under the laws of this state that is
 authorized to construct, acquire, and operate an interurban railway
 may:
 (1) acquire, lease, or purchase the physical property,
 rights, and franchise of any other railway corporation with similar
 powers; or
 (2) lease or purchase physical property, rights, and
 franchises of any suburban or street railway corporation the
 railway lines of which are to be operated in connection with the
 interurban railway.
 (b) The owner of physical property or a right or franchise
 described by Subsection (a)(1) or (2) may sell or dispose of the
 property, right, or franchise to the corporation making an
 acquisition, lease, or purchase under Subsection (a).
 (c) An acquisition or purchase under this section may be on
 the terms:
 (1) agreed to by the board of directors of each
 corporation; and
 (2) authorized or approved by a majority of the
 stockholders of each corporation. (V.A.C.S. Art. 6543 (part).)
 Sec. 131.033. MUNICIPAL CONSENT REQUIRED. (a) Before
 selling property under this subchapter, a corporation that owns or
 operates a street car railway must obtain the consent of the
 governing body of the municipality in which the street car line is
 located.
 (b) This subchapter does not affect a charter provision of a
 municipality that provides for the right of qualified voters of the
 municipality to vote on the granting or amending of franchise to a
 street or interurban railway. (V.A.C.S. Art. 6543 (part).)
 Sec. 131.034. USE OF STREET RAILWAYS. A corporation
 authorized to construct, acquire, and operate an interurban railway
 and a corporation owning and operating a street railway may enter
 into a trackage or lease contract to allow for continuous passage
 into or through a municipality, subject to the consent of the
 governing body of the municipality. (V.A.C.S. Art. 6543 (part).)
 Sec. 131.035. LIMITATION ON ACQUISITION. A corporation
 described by this subchapter may not:
 (1) acquire, own, control, or operate a parallel or
 competing interurban line; or
 (2) purchase, lease, acquire, own, or control,
 directly or indirectly, the shares or certificates of stock or
 bonds, a franchise or other right, or the physical property or any
 part of the property, of any corporation in violation of the law
 commonly known as the antitrust law. (V.A.C.S. Art. 6543 (part).)
 [Sections 131.036-131.060 reserved for expansion]
 SUBCHAPTER D. PROVISION OF UTILITIES
 Sec. 131.061. INTERURBAN ELECTRIC RAILWAYS. An interurban
 electric railway company, as defined by Section 131.011, is
 entitled to produce, supply, and sell electric light and power to
 the public and to municipalities. (V.A.C.S. Art. 6541.)
 Sec. 131.062. SUPPLY AND SALE OF ELECTRICITY BY STREET,
 SUBURBAN, OR BELT LINE RAILWAY. A corporation organized under the
 general laws of this state that owns or operates with electric power
 any street or suburban railway or belt line of railways in and near
 a municipality for the transportation of freight and passengers
 within this state may:
 (1) supply and sell electric light and power to the
 public or a municipality;
 (2) acquire or otherwise provide appliances necessary
 for an activity authorized by Subdivision (1); and
 (3) in the manner provided by law, amend its articles
 of incorporation to expressly include the authority under this
 section. (V.A.C.S. Art. 6545 (part).)
 [Sections 131.063-131.100 reserved for expansion]
 SUBCHAPTER E. REDUCED STREET RAILWAY FARES
 Sec. 131.101. APPLICABILITY. This subchapter applies only
 to a person or corporation owning or operating a street railway in
 or on the public streets of a municipality with a population of
 40,000 or more. (V.A.C.S. Art. 6544 (part).)
 Sec. 131.102. CHILDREN YOUNGER THAN 13 YEARS OF AGE.
 (a) The owner or operator of a street railway shall transport a
 child younger than 13 years of age for half the fare regularly
 collected for the transportation of an adult.
 (b) This section does not apply to the transportation of a
 child to or from a school or other institution of learning located
 one mile or more outside the corporate limits of the municipality in
 which the street car operates. (V.A.C.S. Art. 6544 (part).)
 Sec. 131.103. STUDENTS. (a) The owner or operator of a
 street railway shall sell or provide for the sale of tickets for
 half of the regular fare collected for the transportation of adults
 to students younger than 18 years of age who attend academic,
 public, or private school in a grade not higher than the highest
 grade of the public high schools located in or adjacent to the
 municipality in which the railway is located.
 (b) Tickets under this section must be sold in lots of 20,
 with each ticket valid for one trip over the railway lines.
 (c) Tickets under this section are not required to be sold
 unless the student making the purchase presents the written
 certificate of the principal of the school the student attends
 stating that the student:
 (1) is younger than 18 years of age; and
 (2) is in regular attendance at a school in a grade
 that qualifies under Subsection (a).
 (d) Tickets under this section are not required to be sold
 and may not be used except during the months when a school
 qualifying under Subsection (a) is in session.
 (e) A student described by Subsection (a) shall be
 transported at half fare only when the student presents a ticket
 issued under this section. (V.A.C.S. Art. 6544 (part).)
 Sec. 131.104. CHILDREN YOUNGER THAN SIX YEARS OF AGE. The
 owner or operator of a street railway shall transport free of charge
 a child younger than six years of age when attended by a passenger
 who is at least six years of age. (V.A.C.S. Art. 6544 (part).)
 Sec. 131.105. TRANSFER RIGHTS. The owner or operator of a
 street railway shall offer a passenger paying a reduced fare or no
 fare under this subchapter the same rights as to the use of
 transfers issued by the owner or operator's line or other lines as
 offered to a passenger paying full fare. (V.A.C.S. Art. 6544
 (part).)
 [Sections 131.106-131.900 reserved for expansion]
 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
 Sec. 131.901. STREET AND SUBURBAN RAILWAYS. (a) Street
 and suburban railways engaged in the transportation of freight in
 and near a municipality are subject to the control of the
 department.
 (b) A street railway company is not exempt from payment of
 assessments that may be imposed against it for street improvements.
 (V.A.C.S. Art. 6545 (part).)
 Sec. 131.902. FREIGHT INTERURBAN RAILWAYS. (a) An entity
 incorporated as an electric, gas or gasoline, denatured alcohol, or
 naphtha interurban or motor railway that engages in transporting
 freight is subject to the control of the department.
 (b) A corporation described by Subsection (a) is not exempt
 from payment of assessments that may be imposed against it for
 street improvements.
 (c) An interurban railway described by Subsection (a):
 (1) may exercise the same power of eminent domain as
 given by law to railroads;
 (2) may exercise the power of eminent domain to
 acquire right-of-way on which to construct its railway lines and
 sites for depots and power plants;
 (3) has the same rights, powers, and privileges as
 granted by law to an interurban electric railway company; and
 (4) may acquire, hold, and operate other public
 utilities in and adjacent to a municipality in or through which the
 company operates.
 (d) An interurban railway company described by Subsection
 (a) may not condemn property on which is located a cemetery unless
 it is affirmatively shown, and found by the court trying the
 condemnation suit, that:
 (1) it is necessary to take the property; and
 (2) no other route is possible or practicable.
 (V.A.C.S. Art. 6546.)
 Sec. 131.903. BUILDINGS AND OTHER FACILITIES: CERTAIN
 RAILWAYS. A corporation organized before September 1, 1925, under
 any law of this state, that operates a line of electric, gas or
 gasoline, denatured alcohol, or naphtha motor railway in and
 between municipalities in this state, may:
 (1) own and operate union depots and office buildings;
 and
 (2) acquire, hold, and operate electric light and
 power plants in and adjacent to a municipality in or through which
 the railway operates. (V.A.C.S. Art. 6547 (part).)
 Sec. 131.904. MOTOR BUS LINES. (a) This section applies
 only to a corporation authorized to operate a street or suburban
 railway or an interurban railway and to carry passengers for hire.
 (b) Subject to the approval of the governing body of the
 municipality in which the corporation operates its railway, the
 corporation may:
 (1) substitute, wholly or partly, motor bus lines for
 its railway; and
 (2) maintain and operate automobile motor buses to
 carry passengers for hire on:
 (A) public roads, streets, plazas, alleys, and
 highways within the corporate limits of a municipality under
 regulations prescribed by the municipality; and
 (B) public roads and highways that are located
 outside the corporate limits of that municipality but within five
 miles of the corporate limits, under regulations prescribed by the
 commissioners court of the county.
 (c) The substitution of motor buses or the discontinuance of
 a railway under this section does not impair any corporate power of
 a corporation incorporated before August 30, 1933, as a street or
 interurban railway with respect to the operation of other public
 utilities authorized by a corporate charter or statute in effect on
 August 30, 1933.
 (d) A corporation acting under this section must amend its
 charter and pay any fee provided by law for the filing of the
 amendment.
 (e) This section may not be construed to impair the rights
 of a municipality under a franchise granted to a corporation or its
 predecessor before August 30, 1933. (V.A.C.S. Art. 6548 (part).)
 SECTION 2.04. Subtitle I, Title 5, Transportation Code, is
 amended by adding Chapters 172, 173, and 174 to read as follows:
 CHAPTER 172. RURAL RAIL TRANSPORTATION DISTRICTS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 172.001. DEFINITIONS
 Sec. 172.002. NATURE OF DISTRICT
 Sec. 172.003. FINDINGS
 [Sections 172.004-172.050 reserved for expansion]
 SUBCHAPTER B. CREATION
 Sec. 172.051. APPLICABILITY
 Sec. 172.052. CREATION OF DISTRICT BY MORE THAN ONE
 COUNTY
 Sec. 172.053. CREATION OF DISTRICT BY ONE COUNTY
 Sec. 172.054. NOTICE OF CREATION
 Sec. 172.055. AUTOMATIC ASSUMPTION OF CONTRACTUAL
 DISTRICTS
 [Sections 172.056-172.100 reserved for expansion]
 SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
 Sec. 172.101. CONTROL OF DISTRICT
 Sec. 172.102. TERMS
 Sec. 172.103. QUALIFICATIONS FOR OFFICE
 Sec. 172.104. VACANCY
 Sec. 172.105. REMOVAL
 Sec. 172.106. OFFICERS
 Sec. 172.107. MEETINGS; NOTICE
 Sec. 172.108. RULES FOR PROCEEDINGS
 Sec. 172.109. EMPLOYEES
 Sec. 172.110. PECUNIARY INTEREST IN CERTAIN CONTRACTS
 PROHIBITED
 [Sections 172.111-172.150 reserved for expansion]
 SUBCHAPTER D. GENERAL POWERS AND DUTIES
 Sec. 172.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
 FUNCTIONS
 Sec. 172.152. RULES
 Sec. 172.153. AGREEMENTS GENERALLY
 Sec. 172.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
 USE
 Sec. 172.155. JOINT OWNERSHIP AGREEMENTS
 Sec. 172.156. AWARDING CONSTRUCTION OR PURCHASE
 CONTRACTS
 Sec. 172.157. EMINENT DOMAIN
 Sec. 172.158. DISPOSITION OF SURPLUS PROPERTY
 Sec. 172.159. SUITS
 Sec. 172.160. PERPETUAL SUCCESSION
 [Sections 172.161-172.200 reserved for expansion]
 SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
 CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
 Sec. 172.201. GENERAL AUTHORITY OVER RAIL FACILITIES
 Sec. 172.202. USE AND ALTERATION OF PROPERTY OF
 ANOTHER POLITICAL SUBDIVISION
 Sec. 172.203. RULES GOVERNING SYSTEM; ROUTINGS
 Sec. 172.204. ACQUISITION OF PROPERTY
 Sec. 172.205. POWERS RELATING TO DISTRICT PROPERTY
 Sec. 172.206. ACQUISITION OF ROLLING STOCK AND OTHER
 PROPERTY
 Sec. 172.207. COMPENSATION FOR USE OF SYSTEM FACILITIES
 Sec. 172.208. OPERATION OR USE CONTRACTS
 Sec. 172.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
 WITH OTHER POLITICAL SUBDIVISIONS
 Sec. 172.210. ABANDONMENT OF RAIL LINE
 [Sections 172.211-172.250 reserved for expansion]
 SUBCHAPTER F. FINANCIAL PROVISIONS
 Sec. 172.251. FISCAL YEAR
 Sec. 172.252. ANNUAL BUDGET
 Sec. 172.253. GRANTS AND LOANS
 Sec. 172.254. DEPOSITORY
 Sec. 172.255. APPLICABILITY OF PUBLIC PROPERTY
 FINANCING LAW; PROHIBITION ON AD VALOREM TAX
 Sec. 172.256. NONNEGOTIABLE PURCHASE MONEY NOTES; BOND
 ANTICIPATION NOTES
 Sec. 172.257. TAX EXEMPTION
 [Sections 172.258-172.300 reserved for expansion]
 SUBCHAPTER G. BONDS
 Sec. 172.301. REVENUE BONDS
 Sec. 172.302. SECURITY FOR PAYMENT OF BONDS
 Sec. 172.303. BONDS AS AUTHORIZED INVESTMENTS
 AND SECURITY FOR DEPOSITS OF PUBLIC FUNDS
 Sec. 172.304. APPLICABILITY OF PUBLIC IMPROVEMENT
 FINANCING LAW
 Sec. 172.305. LIMIT ON POWER
 Sec. 172.306. EXEMPTION FROM REVIEW OF NOTES BY
 ATTORNEY GENERAL
 CHAPTER 172. RURAL RAIL TRANSPORTATION DISTRICTS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 172.001. DEFINITIONS. In this chapter:
 (1) "Board" means a district's board of directors.
 (2) "Bonds" means:
 (A) bonds;
 (B) notes, including bond anticipation notes,
 revenue anticipation notes, and grant anticipation notes;
 (C) warrants;
 (D) certificates of obligation;
 (E) interest-bearing contracts;
 (F) interest-bearing leases of property;
 (G) equipment trust certificates;
 (H) commercial paper; and
 (I) any obligation issued to refund any type of
 bond.
 (3) "Director" means a board member.
 (4) "District" means a rural rail transportation
 district created under this chapter or under Chapter 623, Acts of
 the 67th Legislature, Regular Session, 1981 (Article 6550c,
 Vernon's Texas Civil Statutes), as that chapter existed before
 April 1, 2011.
 (5) "Maintenance facility" includes a workshop, a
 service, storage, security, or personnel facility, temporary or
 transient lodging for district employees, and equipment for any
 type of facility.
 (6) "Maintenance and operating expenses" means all
 expenses of operating and maintaining a district and its rail
 facilities, including:
 (A) all compensation, labor, materials, repairs,
 and extensions necessary, required, or convenient in the board's
 discretion to render efficient service or to maintain and operate
 the district; and
 (B) taxes or other amounts paid, payable, or to
 be paid to the United States under Section 148(f), Internal Revenue
 Code of 1986, or any similar law.
 (7) "Rail facilities" means:
 (A) property, or an interest in that property,
 that the board determines is necessary or convenient to provide a
 rural rail transportation system; and
 (B) property or an interest necessary or
 convenient to acquire, provide, construct, enlarge, remodel,
 renovate, improve, furnish, use, or equip the system, including:
 (i) a right-of-way;
 (ii) an earthwork or structure, including
 clearing and grubbing of right-of-way, demolition of a structure,
 relocation of utilities, a pipeline, or any other obstacle in a
 right-of-way, stripping and stockpiling, removal of subsoil for
 embankment or spoil, a borrow pit, dressing and seeding of a slope,
 construction of a culvert, a road crossing, a bridge, restoration
 of a roadway, drainage within a right-of-way or along a road
 network, and restoration of a hydrologic system;
 (iii) trackwork;
 (iv) a train control, including signalling,
 interlocking equipment, speed monitoring equipment, an emergency
 braking system, a central traffic control facility, and a
 communication system;
 (v) a passenger or freight service
 building, terminal, or station, a ticketing facility, a waiting
 area, a platform, a concession, an elevator, an escalator, a
 facility for handicapped access, an access road, a parking facility
 for passengers, a baggage handling facility, a local maintenance
 facility, and offices for district purposes and includes an
 interest in real property necessary or convenient for an item
 listed under this subparagraph;
 (vi) rolling stock; and
 (vii) a maintenance facility.
 (8) "Revenue" means the income, receipts, and
 collections received by, to be received by, or pledged to the
 district from or by any source, except a restricted gift or a grant
 in aid of construction.
 (9) "Right-of-way" means:
 (A) a right of passage over property;
 (B) a strip of land in length and width
 determined required, necessary, or convenient by the board over,
 on, or under which trackwork is or is to be constructed or acquired;
 or
 (C) a right of precedential passing.
 (10) "Rolling stock" means a locomotive, an engine, a
 rail car, a repair construction car, or another car designed to
 operate on trackwork.
 (11) "Trackwork" means track, a track bed, track bed
 preparation, a tie, a rail fastener, a slab, a rail, an emergency
 crossover, a setout track, storage track, and a switch. (V.A.C.S.
 Art. 6550c, Secs. 2(1), (2), (4), (5), (8), (9), (11), (12), (13),
 (14), (15), (16), (17); New.)
 Sec. 172.002. NATURE OF DISTRICT. (a) A district is a
 public body and a political subdivision of this state exercising
 public and essential governmental functions.
 (b) A district, in the exercise of powers under this
 chapter, is performing only governmental functions and is a
 governmental unit under Chapter 101, Civil Practice and Remedies
 Code. (V.A.C.S. Art. 6550c, Sec. 5(a) (part).)
 Sec. 172.003. FINDINGS. The legislature finds that:
 (1) the state contains many rural areas that are
 heavily dependent on agriculture for economic survival;
 (2) transportation of agricultural and industrial
 products is essential to the continued economic vitality of rural
 areas;
 (3) the rail transportation systems in some rural
 areas are threatened by railroad bankruptcies and abandonment
 proceedings that would cause the cessation of rail services to the
 areas;
 (4) it is in the interest of all citizens of the state
 that existing rail systems be maintained for the most efficient and
 economical movement of essential agricultural products from the
 areas of production to the local, national, and export markets;
 (5) rural rail transportation districts are
 appropriate political subdivisions to provide for the continued
 operation of railroads, which are declared by Section 2, Article X,
 Texas Constitution, to be public highways;
 (6) the creation, re-creation, financing,
 maintenance, and operation of rural rail transportation districts
 and facilities acquired by the districts under this chapter will
 help develop, maintain, and diversify the economy of the state,
 eliminate unemployment or underemployment, foster the growth of
 enterprises based on agriculture, and serve to develop and expand
 transportation and commerce within the state under the authority
 granted by Section 52-a, Article III, Texas Constitution; and
 (7) financing by rural rail transportation districts
 for the purposes provided by this chapter is a lawful and valid
 public purpose. (V.A.C.S. Art. 6550c, Sec. 1.)
 [Sections 172.004-172.050 reserved for expansion]
 SUBCHAPTER B. CREATION
 Sec. 172.051. APPLICABILITY. A county is eligible to
 create a district as provided by this chapter only if a rail line is
 located in the county that:
 (1) is being or has been abandoned through a
 bankruptcy court or Surface Transportation Board proceeding; or
 (2) carries three million gross tons per mile per year
 or less. (V.A.C.S. Art. 6550c, Secs. 2(6) (part), 3(b), 3A(a)
 (part).)
 Sec. 172.052. CREATION OF DISTRICT BY MORE THAN ONE COUNTY.
 (a) The commissioners courts of two or more counties that are a
 contiguous area may by concurrent order:
 (1) create a district; or
 (2) provide for the re-creation of a district by the
 addition of one or more counties.
 (b) The district consists of the territory of each county
 whose commissioners court adopts the concurrent order.
 (c) Each concurrent order must:
 (1) contain identical provisions for creation or
 re-creation;
 (2) be adopted at the time of the creation or
 re-creation;
 (3) declare the boundaries of the district as the
 boundaries of the counties included;
 (4) designate the district's name; and
 (5) designate the number of directors, which may not
 be less than four, and the manner of the directors' appointment by a
 commissioners court.
 (d) The commissioners court of each county included in a
 district by order may provide for the district's dissolution if
 each commissioners court determines that the dissolution will not
 impair an obligation of any contract of the district. The
 dissolution order is effective only on the creation or re-creation
 of another district in which each county included in the dissolving
 district is included. (V.A.C.S. Art. 6550c, Secs. 2(3), (6)
 (part), 3(a), (c), (d).)
 Sec. 172.053. CREATION OF DISTRICT BY ONE COUNTY. (a) The
 commissioners court of a county may by order create a district in
 that county to develop, finance, maintain, and operate a new rail
 system under this chapter and for other purposes of this chapter.
 (b) The boundaries of a district created under this section
 are the boundaries of the county in which the district is created.
 (c) At the time the district is created, the commissioners
 court shall:
 (1) designate the district's name; and
 (2) appoint at least four residents of the county to
 serve as directors.
 (d) The commissioners court of the county by order may
 provide for the district's dissolution if the commissioners court
 determines that the dissolution will not impair an obligation of
 any contract of the district. The dissolution order is effective
 only on the creation of another district in which the county is
 included. (V.A.C.S. Art. 6550c, Secs. 3A(a) (part), (b), (c),
 (f).)
 Sec. 172.054. NOTICE OF CREATION. (a) The board of each
 newly created district shall provide notice to the Texas
 Transportation Institute of the district's creation.
 (b) On being notified by the board, the Texas Transportation
 Institute shall make available to the board a guide to the services
 and information that the institute provides. (V.A.C.S. Art. 6550c,
 Sec. 3(f).)
 Sec. 172.055. AUTOMATIC ASSUMPTION OF CONTRACTUAL
 OBLIGATIONS AFTER CREATION BY CERTAIN DISTRICTS. A district
 created or re-created under Section 172.052 automatically assumes
 any obligation of a contract executed by the district or a
 predecessor district that is in force on the date of the creation or
 re-creation unless the contract expressly expires on the date of
 dissolution or re-creation of the district that executed the
 contract. (V.A.C.S. Art. 6550c, Sec. 3(e).)
 [Sections 172.056-172.100 reserved for expansion]
 SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
 Sec. 172.101. CONTROL OF DISTRICT. (a) The board is
 responsible for the management, operation, and control of the
 district.
 (b) The right to control and regulate district affairs is
 vested exclusively in the board except as specifically otherwise
 provided by this chapter. (V.A.C.S. Art. 6550c, Secs. 4(a), (d)
 (part).)
 Sec. 172.102. TERMS. (a) A director serves a two-year
 term.
 (b) An initial director serves a term ending on the second
 anniversary of the date:
 (1) the latest concurrent order creating or
 re-creating the district under Section 172.052 was adopted; or
 (2) an order creating the district under Section
 172.053 was adopted. (V.A.C.S. Art. 6550c, Secs. 3A(d), 4(b)
 (part).)
 Sec. 172.103. QUALIFICATIONS FOR OFFICE. (a) To be
 eligible for appointment as a director, a person must be a resident
 of the county governed by the commissioners court that appoints the
 person.
 (b) An elected officer of this state or a political
 subdivision of this state who is not prohibited by the Texas
 Constitution from serving on the board is eligible to serve on the
 board. (V.A.C.S. Art. 6550c, Secs. 3A(c) (part), (e), 4(b) (part),
 (g).)
 Sec. 172.104. VACANCY. The commissioners court that
 appointed a director who vacates the position shall appoint a
 director for the unexpired term. (V.A.C.S. Art. 6550c, Secs.
 3A(e), 4(b) (part).)
 Sec. 172.105. REMOVAL. (a) The commissioners court that
 appointed a director may remove the director from office for
 neglect of duty or malfeasance in office after:
 (1) at least 10 days' written notice to the director;
 and
 (2) a hearing before the commissioners court.
 (b) At the hearing on the question of removal of a director,
 the director is entitled to be heard in person or through counsel.
 (V.A.C.S. Art. 6550c, Secs. 3A(e), 4(b) (part).)
 Sec. 172.106. OFFICERS. The board shall select a
 president, vice president, treasurer, and secretary. The secretary
 is not required to be a director. (V.A.C.S. Art. 6550c, Secs.
 3A(e), 4(c) (part).)
 Sec. 172.107. MEETINGS; NOTICE. (a) The board shall hold
 at least one regular meeting each month to conduct district
 business.
 (b) The president may call a special board meeting.
 (c) Chapter 551, Government Code, applies to board
 meetings, except that notice of a board meeting shall be posted at
 the administrative office of the district and at the courthouse in
 the county in which that office is located. (V.A.C.S. Art. 6550c,
 Secs. 3A(e), 4(c) (part), (f).)
 Sec. 172.108. RULES FOR PROCEEDINGS. The board shall adopt
 rules for its proceedings. (V.A.C.S. Art. 6550c, Sec. 4(d)
 (part).)
 Sec. 172.109. EMPLOYEES. The board may employ and
 compensate persons to carry out the powers and duties of the
 district. (V.A.C.S. Art. 6550c, Sec. 4(d) (part).)
 Sec. 172.110. PECUNIARY INTEREST IN CERTAIN CONTRACTS
 PROHIBITED. A district employee may not have a direct or indirect
 pecuniary interest in any contract or agreement to which the
 district is a party. (V.A.C.S. Art. 6550c, Sec. 4(e).)
 [Sections 172.111-172.150 reserved for expansion]
 SUBCHAPTER D. GENERAL POWERS AND DUTIES
 Sec. 172.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
 FUNCTIONS. (a) A district has all powers necessary or convenient
 to carry out the purposes of this chapter.
 (b) A district may generally perform all acts necessary for
 the full exercise of the district's powers. (V.A.C.S. Art. 6550c,
 Secs. 5(a) (part), (k) (part).)
 Sec. 172.152. RULES. To protect the state's health,
 safety, and general welfare, a district may adopt rules to govern
 the operation of the district, its employees, the rail facilities,
 service provided by the district, and any other necessary matter
 concerning its purposes, including rules regarding health, safety,
 alcohol or beverage service, food service, or telephone or utility
 service. (V.A.C.S. Art. 6550c, Sec. 5(h).)
 Sec. 172.153. AGREEMENTS GENERALLY. A district may make
 contracts, leases, and agreements with the United States, this
 state and its agencies and political subdivisions, public or
 private corporations, and any other person. (V.A.C.S. Art. 6550c,
 Sec. 5(k) (part).)
 Sec. 172.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
 A district may:
 (1) enter into agreements with a public utility,
 private utility, communication system, common carrier, or
 transportation system for the joint use of its facilities,
 installations, or property inside or outside the district; and
 (2) establish:
 (A) through routes;
 (B) joint fares; and
 (C) divisions of tariffs, subject to approval of
 a tariff-regulating body that has jurisdiction. (V.A.C.S. Art.
 6550c, Sec. 5(g).)
 Sec. 172.155. JOINT OWNERSHIP AGREEMENTS. A district may
 enter into a joint ownership agreement with any person. (V.A.C.S.
 Art. 6550c, Sec. 5(i).)
 Sec. 172.156. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
 (a) A contract in the amount of more than $15,000 for the
 construction of improvements or the purchase of material,
 machinery, equipment, supplies, or any other property except real
 property may be awarded only through competitive bidding after
 notice is published in a newspaper of general circulation in the
 district at least 15 days before the date set for receiving bids.
 (b) A board may adopt rules governing the taking of bids and
 the awarding of contracts.
 (c) This section does not apply to:
 (1) personal or professional services; or
 (2) the acquisition of an existing rail transportation
 system. (V.A.C.S. Art. 6550c, Sec. 7.)
 Sec. 172.157. EMINENT DOMAIN. (a) A district may exercise
 the power of eminent domain to acquire:
 (1) land in fee simple; or
 (2) any interest less than fee simple in, on, under, or
 above land, including an easement, right-of-way, or right of use of
 airspace or subsurface space.
 (b) A district may not exercise the power of eminent domain
 in a manner that would unduly interfere with interstate commerce.
 (c) An eminent domain proceeding brought by a district is
 governed by Chapter 21, Property Code, except to the extent
 inconsistent with this chapter.
 (d) An eminent domain proceeding is begun by the board's
 adoption of a resolution declaring that the district's acquisition
 of the property or interest described in the resolution:
 (1) is a public necessity; and
 (2) is necessary and proper for the construction,
 extension, improvement, or development of rail facilities and is in
 the public interest.
 (e) The resolution is conclusive evidence of the public
 necessity of the proposed acquisition and that the real property or
 interest in property is necessary for public use. (V.A.C.S.
 Art. 6550c, Sec. 5(f).)
 Sec. 172.158. DISPOSITION OF SURPLUS PROPERTY. (a) A
 district may sell, lease, convey, or otherwise dispose of any
 right, interest, or property not needed for or, in the case of a
 lease, not inconsistent with the efficient operation and
 maintenance of the system.
 (b) A district may, on adoption of an order by the board,
 sell, lease, or otherwise dispose of surplus property not needed
 for district requirements or to carry out district powers under
 this chapter. (V.A.C.S. Art. 6550c, Sec. 5(l).)
 Sec. 172.159. SUITS. (a) A district may:
 (1) sue and be sued;
 (2) institute and prosecute suits without giving
 security for costs; and
 (3) appeal from a judgment without giving a
 supersedeas or cost bond.
 (b) An action at law or in equity against the district must
 be brought in the county in which the principal office of the
 district is located, except that a suit in eminent domain must be
 brought in the county in which the land is located. (V.A.C.S. Art.
 6550c, Sec. 5(c).)
 Sec. 172.160. PERPETUAL SUCCESSION. A district has
 perpetual succession. (V.A.C.S. Art. 6550c, Sec. 5(b).)
 [Sections 172.161-172.200 reserved for expansion]
 SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
 CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
 Sec. 172.201. GENERAL AUTHORITY OVER RAIL FACILITIES. A
 district may plan, acquire, construct, complete, develop, own,
 operate, and maintain rail facilities inside or outside the
 district. (V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
 Sec. 172.202. USE AND ALTERATION OF PROPERTY OF ANOTHER
 POLITICAL SUBDIVISION. For a purpose described by Section 172.201,
 as necessary or useful in the construction, reconstruction, repair,
 maintenance, and operation of rail facilities, and subject to a
 grant previously secured or with the consent of a municipality,
 county, or other political subdivision, a district may:
 (1) use streets, alleys, roads, highways, and other
 public ways of the political subdivision; and
 (2) relocate, raise, reroute, change the grade of, or
 alter, at the district's expense, the construction of a publicly
 owned or privately owned street, alley, highway, road, railroad,
 electric line or facility, telegraph or telephone property or
 facility, pipeline or facility, conduit or facility, and other
 property. (V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
 Sec. 172.203. RULES GOVERNING SYSTEM; ROUTINGS. A district
 by resolution may adopt rules governing the use, operation, and
 maintenance of the system and shall determine all routings and
 change them when the board considers it advisable. (V.A.C.S. Art.
 6550c, Sec. 5(m).)
 Sec. 172.204. ACQUISITION OF PROPERTY. (a) A district may
 purchase, whenever the district considers the purchase expedient,
 land, property rights, right-of-way, franchises, easements, and
 other interests in land the district considers necessary to
 acquire, construct, or operate a rail facility on terms and at a
 price to which the district and the owner agree.
 (b) The district may take title to the land or interest in
 the district's name.
 (c) The governing body of a municipality, a county, any
 other political subdivision, or a public agency may convey without
 advertisement the title or the rights and easements to property
 needed by the district for its purposes in connection with the
 acquisition, construction, or operation of rail facilities.
 (V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
 Sec. 172.205. POWERS RELATING TO DISTRICT PROPERTY. A
 district may acquire by grant, purchase, gift, devise, lease, or
 otherwise and may hold, use, sell, lease, or dispose of property,
 including a license, a patent, a right, or an interest, necessary,
 convenient, or useful for the full exercise of its powers under this
 chapter. (V.A.C.S. Art. 6550c, Sec. 5(d).)
 Sec. 172.206. ACQUISITION OF ROLLING STOCK AND OTHER
 PROPERTY. A district may acquire rolling stock or other property,
 under a conditional sales contract, lease, equipment trust
 certificate, or other form of contract or trust agreement.
 (V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
 Sec. 172.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
 (a) A district shall establish and maintain reasonable and
 nondiscriminatory rents or other compensation for the use of the
 facilities of the system acquired, constructed, operated,
 regulated, or maintained by the district.
 (b) Together with grants received by the district, the rents
 or other compensation must be sufficient to produce revenue
 adequate to:
 (1) pay all expenses necessary for the operation and
 maintenance of the district's property and facilities;
 (2) pay the principal of and interest on all bonds
 issued by the district payable wholly or partly from the revenue, as
 they become due and payable; and
 (3) fulfill the terms of agreements made with the
 holders of bonds or with any person on their behalf. (V.A.C.S.
 Art. 6550c, Sec. 5(j).)
 Sec. 172.208. OPERATION OR USE CONTRACTS. (a) A district
 may:
 (1) lease all or part of the rail facilities to any
 operator; or
 (2) contract for the use or operation of all or part of
 the rail facilities by any operator.
 (b) To the maximum extent practicable, the district shall
 encourage the participation of private enterprise in the operation
 of rail facilities.
 (c) The term of an operating contract under this section may
 not exceed 20 years. In this subsection, "operating contract"
 means a professional services contract executed by a district and
 another person under which the person agrees to provide all or part
 of the:
 (1) rolling stock required for operation as a common
 carrier over all or a part of the rail facilities of the district;
 and
 (2) personnel required for the operation of the
 rolling stock owned or leased by the district or for the operation
 of the rail facilities of the district. (V.A.C.S. Art. 6550c,
 Secs. 2(7), 5(n).)
 Sec. 172.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
 OTHER POLITICAL SUBDIVISIONS. A district may contract with a
 county or other political subdivision of this state for the
 district to provide rail transportation services to an area outside
 the district on terms to which the parties agree. (V.A.C.S. Art.
 6550c, Sec. 5(o).)
 Sec. 172.210. ABANDONMENT OF RAIL LINE. (a) A district
 may not abandon a district rail line for which state money has been
 loaned or granted unless the abandonment is approved by the
 commission as being consistent with the policies of this chapter.
 (b) The commission by rule shall adopt procedures for
 applying for and obtaining approval for abandonment under this
 section. (V.A.C.S. Art. 6550c, Sec. 5(r).)
 [Sections 172.211-172.250 reserved for expansion]
 SUBCHAPTER F. FINANCIAL PROVISIONS
 Sec. 172.251. FISCAL YEAR. (a) Unless the board changes
 the fiscal year, the district's fiscal year ends on September 30.
 (b) The board may not change the fiscal year more than once
 in a three-year period. (V.A.C.S. Art. 6550c, Sec. 5(p) (part).)
 Sec. 172.252. ANNUAL BUDGET. (a) Before beginning the
 operation of rail facilities, the board shall adopt an annual
 operating budget specifying the district's anticipated revenue and
 expenses for the remainder of the fiscal year. The district shall
 adopt an operating budget for each succeeding fiscal year.
 (b) The board must hold a public hearing before adopting
 each budget except the initial budget. Notice of the hearing must
 be published at least seven days before the date of the hearing in a
 newspaper of general circulation in the district.
 (c) A budget may be amended at any time if notice of the
 proposed amendment is given in the notice of meeting.
 (d) An expenditure that is not budgeted may not be made.
 (V.A.C.S. Art. 6550c, Sec. 5(p) (part).)
 Sec. 172.253. GRANTS AND LOANS. A district may accept a
 grant or loan from the United States, this state and its agencies
 and political subdivisions, public or private corporations, and any
 other person. (V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
 Sec. 172.254. DEPOSITORY. (a) The board by resolution
 shall name one or more banks for the deposit of district funds.
 (b) District funds are public funds and may be invested in
 securities permitted by Chapter 2256, Government Code.
 (c) To the extent district funds are not insured by the
 Federal Deposit Insurance Corporation or its successor, the funds
 shall be collateralized in the manner provided for county funds.
 (V.A.C.S. Art. 6550c, Sec. 5(q).)
 Sec. 172.255. APPLICABILITY OF PUBLIC PROPERTY FINANCING
 LAW; PROHIBITION ON AD VALOREM TAX. A district may use the
 procedures provided by Chapter 271, Local Government Code, to
 finance the district's rail facilities, except to the extent of a
 conflict with this chapter, and except that the district may not
 impose an ad valorem tax. (V.A.C.S. Art. 6550c, Sec. 6A(a).)
 Sec. 172.256. NONNEGOTIABLE PURCHASE MONEY NOTES; BOND
 ANTICIPATION NOTES. (a) A district may:
 (1) issue nonnegotiable purchase money notes, payable
 in installments and secured by the property being acquired or
 constructed, to acquire or construct rail facilities; or
 (2) secure the obligation of the notes by a pledge or
 by issuing bonds, including bond anticipation notes.
 (b) A district may covenant with the purchaser of bond
 anticipation notes that the proceeds of one or more particular
 series of bonds will be used for the ultimate payment of the
 purchase money notes or bond anticipation notes. (V.A.C.S.
 Art. 6550c, Sec. 6A(b).)
 Sec. 172.257. TAX EXEMPTION. District property and revenue
 and the interest on bonds issued by the district are exempt from any
 tax imposed by this state or a political subdivision of this state.
 (V.A.C.S. Art. 6550c, Sec. 8.)
 [Sections 172.258-172.300 reserved for expansion]
 SUBCHAPTER G. BONDS
 Sec. 172.301. REVENUE BONDS. A district, by board
 resolution, may issue revenue bonds in amounts that the board
 considers necessary or appropriate for the acquisition, purchase,
 construction, reconstruction, repair, equipping, improvement, or
 extension of its rail facilities. (V.A.C.S. Art. 6550c, Secs. 6(a)
 (part), (e).)
 Sec. 172.302. SECURITY FOR PAYMENT OF BONDS. (a) To
 secure payment of district bonds, the district may:
 (1) encumber and pledge all or part of the revenue of
 its rail facilities; and
 (2) encumber all or part of the property of the rail
 facilities and everything pertaining to them acquired or to be
 acquired.
 (b) Unless prohibited by the resolution or indenture
 relating to outstanding bonds, a district may encumber separately
 any item of property. (V.A.C.S. Art. 6550c, Sec. 6(c) (part).)
 Sec. 172.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
 FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds are legal and
 authorized investments for:
 (1) a bank;
 (2) a trust company;
 (3) a savings and loan association; and
 (4) an insurance company.
 (b) The bonds are:
 (1) eligible to secure the deposit of public funds of
 this state or a municipality, a county, a school district, or any
 other political corporation or subdivision of this state; and
 (2) lawful and sufficient security for the deposit to
 the extent of the principal amount or market value of the bonds,
 whichever is less. (V.A.C.S. Art. 6550c, Sec. 6(d).)
 Sec. 172.304. APPLICABILITY OF PUBLIC IMPROVEMENT
 FINANCING LAW. For purposes of Chapter 1371, Government Code:
 (1) a district is an issuer; and
 (2) the acquisition, improvement, or repair of rail
 facilities by a district is an eligible project. (V.A.C.S. Art.
 6550c, Sec. 5(a) (part).)
 Sec. 172.305. LIMIT ON POWER. A revenue bond indenture may
 limit the exercise of the power granted by Section 172.002,
 172.151, 172.152, 172.153, 172.154, 172.155, 172.157, 172.158,
 172.159, 172.160, 172.201, 172.202, 172.203, 172.204, 172.205,
 172.206, 172.207, 172.208, 172.209, 172.210, 172.251, 172.252,
 172.253, 172.254, or 172.304. The limitation applies while any of
 the revenue bonds issued under the indenture are outstanding and
 unpaid. (V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
 Sec. 172.306. EXEMPTION FROM REVIEW OF NOTES BY ATTORNEY
 GENERAL. District notes authorized to be issued to an agency of the
 federal or state government, and related records, are not required
 to be submitted to the attorney general for examination under
 Chapter 1202, Government Code. (V.A.C.S. Art. 6550c, Sec. 6(b)
 (part).)
 CHAPTER 173. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 173.001. DEFINITION OF PERSON
 Sec. 173.002. DEFINITIONS
 Sec. 173.003. LOCATION OF MUNICIPALITY IN COUNTY
 Sec. 173.004. NATURE OF DISTRICT
 Sec. 173.005. SUNSET PROVISION
 [Sections 173.006-173.050 reserved for expansion]
 SUBCHAPTER B. CREATION
 Sec. 173.051. CREATION OF DISTRICT
 Sec. 173.052. ADDITION OF POLITICAL SUBDIVISION TO
 DISTRICT
 [Sections 173.053-173.100 reserved for expansion]
 SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
 Sec. 173.101. CONTROL OF DISTRICT
 Sec. 173.102. COMPOSITION OF BOARD; TERMS
 Sec. 173.103. VACANCY
 Sec. 173.104. PRESIDING OFFICER
 Sec. 173.105. MEETINGS
 Sec. 173.106. BOARD MEETINGS BY TELEPHONE OR
 VIDEOCONFERENCE
 Sec. 173.107. RULES FOR PROCEEDINGS
 Sec. 173.108. COMPENSATION; REIMBURSEMENT
 Sec. 173.109. EMPLOYEES
 Sec. 173.110. EXECUTIVE COMMITTEE
 Sec. 173.111. RETIREMENT BENEFITS
 [Sections 173.112-173.150 reserved for expansion]
 SUBCHAPTER D. GENERAL POWERS AND DUTIES
 Sec. 173.151. GENERAL POWERS OF DISTRICT
 Sec. 173.152. RULES
 Sec. 173.153. AGREEMENTS GENERALLY
 Sec. 173.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
 USE
 Sec. 173.155. JOINT OWNERSHIP AGREEMENTS
 Sec. 173.156. EXCLUSIVE DEVELOPMENT AGREEMENTS
 Sec. 173.157. INTERLOCAL AGREEMENTS WITH COMMISSION
 Sec. 173.158. AWARDING CONSTRUCTION OR PURCHASE
 CONTRACTS
 Sec. 173.159. EMINENT DOMAIN
 Sec. 173.160. SUITS
 [Sections 173.161-173.200 reserved for expansion]
 SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
 CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
 Sec. 173.201. GENERAL AUTHORITY OVER COMMUTER RAIL
 FACILITIES
 Sec. 173.202. POWERS RELATING TO DISTRICT PROPERTY
 Sec. 173.203. USE AND ALTERATION OF PROPERTY OF
 ANOTHER POLITICAL SUBDIVISION
 Sec. 173.204. RULES GOVERNING SYSTEM AND ROUTINGS
 Sec. 173.205. ACQUISITION OF PROPERTY
 Sec. 173.206. ACQUISITION OF ROLLING STOCK AND OTHER
 PROPERTY
 Sec. 173.207. COMPENSATION FOR USE OF SYSTEM
 FACILITIES
 Sec. 173.208. OPERATION OR USE CONTRACTS
 Sec. 173.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
 WITH OTHER POLITICAL SUBDIVISIONS
 [Sections 173.210-173.250 reserved for expansion]
 SUBCHAPTER F. FINANCIAL PROVISIONS
 Sec. 173.251. FISCAL YEAR
 Sec. 173.252. ANNUAL BUDGET
 Sec. 173.253. GRANTS AND LOANS
 Sec. 173.254. DEPOSITORY
 Sec. 173.255. PURCHASE OF ADDITIONAL INSURED
 PROVISIONS
 Sec. 173.256. FINANCING OF CERTAIN TRANSPORTATION
 INFRASTRUCTURE
 Sec. 173.257. TAX EXEMPTION
 [Sections 173.258-173.300 reserved for expansion]
 SUBCHAPTER G. BONDS
 Sec. 173.301. REVENUE BONDS
 Sec. 173.302. SECURITY FOR PAYMENT OF BONDS
 Sec. 173.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY FOR
 DEPOSITS OF PUBLIC FUNDS
 Sec. 173.304. LIMIT ON POWER
 [Sections 173.305-173.350 reserved for expansion]
 SUBCHAPTER H. SALES AND USE TAXES
 Sec. 173.351. TAX AUTHORIZED
 Sec. 173.352. TAX RATE
 Sec. 173.353. PREEMPTION OF OTHER SALES AND USE TAXES
 Sec. 173.354. APPLICABILITY OF TAX CODE
 Sec. 173.355. NOTICE TO COMPTROLLER
 Sec. 173.356. NOTICE TO LOCAL GOVERNMENTS
 Sec. 173.357. ACQUISITION OF ADDITIONAL TERRITORY
 SUBJECT TO TAX
 Sec. 173.358. DUTY OF COMPTROLLER
 Sec. 173.359. EFFECTIVE DATE OF TAX
 CHAPTER 173. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 173.001. DEFINITION OF PERSON. In this chapter:
 (1) "person" includes a corporation, as provided by
 Section 312.011, Government Code; and
 (2) the definition of "person" assigned by Section
 311.005, Government Code, does not apply. (New.)
 Sec. 173.002. DEFINITIONS. In this chapter:
 (1) "Board" means a district's board of directors.
 (2) "Commuter rail facility" means any property
 necessary for the transportation of passengers and baggage between
 locations in a district. The term includes rolling stock,
 locomotives, stations, parking areas, and rail lines.
 (3) "Creating municipality" means a municipality
 described by Section 173.051(a).
 (4) "Director" means a board member.
 (5) "District" means an intermunicipal commuter rail
 district created under this chapter or under Article 6550c-1,
 Revised Statutes, as that article existed before April 1, 2011.
 (6) "District property" means property the district
 owns or leases under a long-term lease.
 (7) "System" means all of the commuter rail and
 intermodal facilities leased or owned by or operated on behalf of a
 district. (V.A.C.S. Art. 6550c-1, Secs. 1(2), (3), (5), (6), (7);
 New.)
 Sec. 173.003. LOCATION OF MUNICIPALITY IN COUNTY. For
 purposes of this chapter, a municipality is located in a county only
 if 90 percent or more of the population of the municipality resides
 in that county. (V.A.C.S. Art. 6550c-1, Sec. 2(d).)
 Sec. 173.004. NATURE OF DISTRICT. (a) A district is a
 public body and a political subdivision of this state exercising
 public and essential governmental functions.
 (b) A district, in the exercise of powers under this
 chapter, is performing only governmental functions and is a
 governmental unit under Chapter 101, Civil Practice and Remedies
 Code. (V.A.C.S. Art. 6550c-1, Sec. 4(a) (part).)
 Sec. 173.005. SUNSET PROVISION. A district is subject
 every 12th year to review under Chapter 325, Government Code (Texas
 Sunset Act). (V.A.C.S. Art. 6550c-1, Sec. 4(b).)
 [Sections 173.006-173.050 reserved for expansion]
 SUBCHAPTER B. CREATION
 Sec. 173.051. CREATION OF DISTRICT. (a) A district may be
 created to provide commuter rail service between two
 municipalities:
 (1) each of which has a population of more than
 450,000; and
 (2) that are located not farther than 100 miles
 apart as determined by the department.
 (b) The creating municipalities and the counties in which
 the creating municipalities are located may create a district on
 passage of a resolution favoring creation by the governing body of
 each municipality or county. (V.A.C.S. Art. 6550c-1, Secs. 2(a),
 (b).)
 Sec. 173.052. ADDITION OF POLITICAL SUBDIVISION TO
 DISTRICT. The following political subdivisions may become a part
 of a district with the approval of the governing body of the
 political subdivision:
 (1) a county located adjacent to the county in which a
 creating municipality is located; and
 (2) a municipality with a population of more than
 18,000 located in a county described by Subdivision (1). (V.A.C.S.
 Art. 6550c-1, Sec. 2(c).)
 [Sections 173.053-173.100 reserved for expansion]
 SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
 Sec. 173.101. CONTROL OF DISTRICT. A district is governed
 by a board of directors. The board is responsible for the
 management, operation, and control of the district. (V.A.C.S. Art.
 6550c-1, Sec. 3(a).)
 Sec. 173.102. COMPOSITION OF BOARD; TERMS. (a) The board
 is composed of:
 (1) two public directors appointed by the commission;
 (2) one elected member of the governing body of each
 political subdivision that has become a part of the district under
 Subchapter B;
 (3) one elected director appointed by the regional
 planning organization of which a creating municipality is a part;
 (4) one director appointed by each creating
 municipality to represent the business community of the
 municipality;
 (5) one director appointed by each authority created
 under Chapter 451 that serves a creating municipality;
 (6) one director appointed by each county in which a
 creating municipality is located to represent transportation
 providers that provide service to rural areas in the county; and
 (7) one director appointed by all other directors to
 represent all municipalities in the district that do not otherwise
 have representation on the board who is an elected official of one
 of those municipalities.
 (b) Each director serves a staggered two-year term, with as
 near as possible to half of the directors' terms expiring February 1
 of each year. If one or more directors are added to the board, the
 directors other than the new directors shall determine the lengths
 of the new directors' terms so that one-half, or as near one-half as
 possible, of the directors serve terms expiring each year.
 (V.A.C.S. Art. 6550c-1, Secs. 3(b), (c) (part).)
 Sec. 173.103. VACANCY. A vacancy on the board shall be
 filled in the same manner as the original appointment or election.
 (V.A.C.S. Art. 6550c-1, Sec. 3(c) (part).)
 Sec. 173.104. PRESIDING OFFICER. (a) The directors shall
 elect one member as presiding officer.
 (b) The presiding officer may select another director to
 preside in the absence of the presiding officer. (V.A.C.S. Art.
 6550c-1, Sec. 3(d).)
 Sec. 173.105. MEETINGS. The presiding officer shall call
 at least one meeting of the board each year and may hold other
 meetings as the presiding officer determines are appropriate.
 (V.A.C.S. Art. 6550c-1, Sec. 3(e).)
 Sec. 173.106. BOARD MEETINGS BY TELEPHONE OR
 VIDEOCONFERENCE. (a) Chapter 551, Government Code, does not
 prohibit the board from holding an open or closed meeting by
 telephone conference call or videoconference.
 (b) A meeting held by telephone conference call or
 videoconference need not have a quorum present at any one location.
 (c) A telephone conference call or videoconference meeting
 is subject to the notice requirements applicable to other meetings.
 (d) The notice of a telephone conference call or
 videoconference meeting must specify each location of the meeting
 where a director will participate and the physical location where
 the presiding officer of the board will preside. Each of those
 locations must be open to the public during the open portion of the
 meeting.
 (e) Each part of a telephone conference call meeting that is
 required to be open to the public must be audible to the public at
 each meeting location specified in the notice of the meeting and
 shall be tape recorded. The district shall make the tape recording
 available to the public.
 (f) Each part of a videoconference meeting that is required
 to be open to the public must:
 (1) be visible and audible to the public at each
 meeting location specified in the notice of the meeting; and
 (2) have two-way audio and video communications with
 each participant in the meeting during the entire meeting.
 (g) Without regard to whether a director is participating in
 a meeting from a remote location by videoconference call, the board
 may allow a member of the public to testify at a meeting from a
 remote location by videoconference call. The board shall designate
 the location for public participation in the notice of the meeting.
 (V.A.C.S. Art. 6550c-1, Sec. 3A.)
 Sec. 173.107. RULES FOR PROCEEDINGS. The board shall adopt
 rules for its proceedings. (V.A.C.S. Art. 6550c-1, Sec. 3(g)
 (part).)
 Sec. 173.108. COMPENSATION; REIMBURSEMENT. A director is
 not entitled to compensation for serving as a director but is
 entitled to reimbursement for reasonable expenses incurred while
 serving as a director. (V.A.C.S. Art. 6550c-1, Sec. 3(f).)
 Sec. 173.109. EMPLOYEES. The board may employ and
 compensate persons to carry out the powers and duties of the
 district. (V.A.C.S. Art. 6550c-1, Sec. 3(g) (part).)
 Sec. 173.110. EXECUTIVE COMMITTEE. The board shall appoint
 an executive committee. (V.A.C.S. Art. 6550c-1, Sec. 3(g) (part).)
 Sec. 173.111. RETIREMENT BENEFITS. A district is eligible
 to participate in the Texas County and District Retirement System.
 (V.A.C.S. Art. 6550c-1, Sec. 4(q).)
 [Sections 173.112-173.150 reserved for expansion]
 SUBCHAPTER D. GENERAL POWERS AND DUTIES
 Sec. 173.151. GENERAL POWERS OF DISTRICT. (a) A district
 has all the powers necessary or convenient to carry out the purposes
 of this chapter.
 (b) A district may generally perform all acts necessary for
 the full exercise of the district's powers. (V.A.C.S. Art.
 6550c-1, Secs. 4(a) (part), (k) (part).)
 Sec. 173.152. RULES. To protect district residents'
 health, safety, and general welfare, a district may adopt rules to
 govern the operation of the district, its employees, the system,
 service provided by the district, and any other necessary matter
 concerning its purposes, including rules regarding health, safety,
 alcohol or beverage service, food service, or telephone or utility
 service. (V.A.C.S. Art. 6550c-1, Sec. 4(h).)
 Sec. 173.153. AGREEMENTS GENERALLY. A district may make
 contracts, leases, and agreements with the United States, this
 state and its agencies and political subdivisions, public or
 private corporations, and any other person. (V.A.C.S. Art.
 6550c-1, Sec. 4(k) (part).)
 Sec. 173.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
 A district may:
 (1) make agreements with a public utility, private
 utility, communication system, common carrier, state agency, or
 transportation system for the joint use of facilities,
 installations, or property inside or outside the district; and
 (2) establish:
 (A) through routes;
 (B) joint fares; and
 (C) divisions of tariffs, subject to approval of
 a tariff-regulating body that has jurisdiction. (V.A.C.S. Art.
 6550c-1, Sec. 4(g).)
 Sec. 173.155. JOINT OWNERSHIP AGREEMENTS. A district may
 make a joint ownership agreement with any person. (V.A.C.S. Art.
 6550c-1, Sec. 4(i).)
 Sec. 173.156. EXCLUSIVE DEVELOPMENT AGREEMENTS. (a) A
 board may enter into an exclusive development agreement with a
 private entity.
 (b) The exclusive development agreement:
 (1) at a minimum must provide for the design and
 construction of a commuter rail facility or system; and
 (2) may provide for the financing, acquisition,
 maintenance, or operation of a commuter rail facility or system.
 (c) The board may adopt rules governing an agreement under
 this section. (V.A.C.S. Art. 6550c-1, Sec. 6A.)
 Sec. 173.157. INTERLOCAL AGREEMENTS WITH COMMISSION. The
 commission may enter into an interlocal agreement with a district
 under which the district may exercise a power or duty of the
 commission for the development and efficient operation of
 intermodal corridors in the district. (V.A.C.S. Art. 6550c-1, Sec.
 4(k) (part).)
 Sec. 173.158. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
 (a) A contract in the amount of more than $15,000 for the
 construction of improvements or the purchase of material,
 machinery, equipment, supplies, or any other property except real
 property may be awarded only through competitive bidding after
 notice is published in a newspaper of general circulation in the
 district at least 15 days before the date set for receiving bids.
 (b) A board may adopt rules governing the taking of bids and
 the awarding of contracts.
 (c) This section does not apply to:
 (1) personal or professional services;
 (2) the acquisition of an existing rail transportation
 system;
 (3) a contract with a common carrier to construct
 lines and to operate commuter rail service on lines wholly or partly
 owned by the carrier; or
 (4) an agreement with a private entity under Section
 173.156. (V.A.C.S. Art. 6550c-1, Sec. 6.)
 Sec. 173.159. EMINENT DOMAIN. (a) A district may exercise
 the power of eminent domain to acquire:
 (1) land in fee simple; or
 (2) any interest less than fee simple in, on, under, or
 above land, including an easement, right-of-way, or right of use of
 airspace or subsurface space.
 (b) The power of eminent domain under this section does not
 apply to:
 (1) land under the jurisdiction of the department or a
 metropolitan transit authority; or
 (2) a rail line owned by a common carrier or
 municipality.
 (c) To the extent possible, the district shall use existing
 rail or intermodal transportation corridors for the alignment of
 its system.
 (d) An eminent domain proceeding is begun by the board's
 adoption of a resolution declaring that the district's acquisition
 of the property or interest described in the resolution:
 (1) is a public necessity; and
 (2) is necessary and proper for the construction,
 extension, improvement, or development of commuter rail facilities
 and is in the public interest.
 (e) The resolution is conclusive evidence of the public
 necessity of the proposed acquisition and that the real property or
 interest in property is necessary for public use. (V.A.C.S. Art.
 6550c-1, Sec. 4(f).)
 Sec. 173.160. SUITS. (a) A district may:
 (1) sue and be sued;
 (2) institute and prosecute suits without giving
 security for costs; and
 (3) appeal from a judgment without giving a
 supersedeas or cost bond.
 (b) An action at law or in equity against the district must
 be brought in the county in which a principal office of the district
 is located, except that a suit in eminent domain must be brought in
 the county in which the land is located. (V.A.C.S. Art. 6550c-1,
 Sec. 4(c).)
 [Sections 173.161-173.200 reserved for expansion]
 SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
 CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
 Sec. 173.201. GENERAL AUTHORITY OVER COMMUTER RAIL
 FACILITIES. A district may acquire, construct, develop, own,
 operate, and maintain intermodal and commuter rail facilities
 inside, or connect political subdivisions in, the district.
 (V.A.C.S. Art. 6550c-1, Sec. 4(e) (part).)
 Sec. 173.202. POWERS RELATING TO DISTRICT PROPERTY. A
 district may acquire by grant, purchase, gift, devise, lease, or
 otherwise and may hold, use, sell, lease, or dispose of property,
 including a license, a patent, a right, or an interest, necessary,
 convenient, or useful for the full exercise of its powers under this
 chapter. (V.A.C.S. Art. 6550c-1, Sec. 4(d).)
 Sec. 173.203. USE AND ALTERATION OF PROPERTY OF ANOTHER
 POLITICAL SUBDIVISION. (a) For a purpose described by Section
 173.201, as necessary or useful in the construction,
 reconstruction, repair, maintenance, and operation of the system,
 and with the consent of a municipality, county, or other political
 subdivision, a district may:
 (1) use streets, alleys, roads, highways, and other
 public ways of the political subdivision; and
 (2) relocate, raise, reroute, change the grade of, or
 alter, at the district's expense, the construction of a publicly
 owned or privately owned street, alley, highway, road, railroad,
 electric line or facility, telegraph or telephone property or
 facility, pipeline or facility, conduit or facility, and other
 property.
 (b) A district may not use or alter:
 (1) a road or highway in the state highway system
 without the permission of the commission; or
 (2) a railroad without permission of the railroad.
 (V.A.C.S. Art. 6550c-1, Sec. 4(e) (part).)
 Sec. 173.204. RULES GOVERNING SYSTEM AND ROUTINGS. A
 district by resolution may adopt rules governing the use,
 operation, and maintenance of the system and shall determine all
 routings and change them when the board considers it advisable.
 (V.A.C.S. Art. 6550c-1, Sec. 4(l).)
 Sec. 173.205. ACQUISITION OF PROPERTY. (a) A district may
 purchase any interest in real property to acquire, construct, or
 operate a commuter rail facility on terms and at a price to which
 the district and the owner agree.
 (b) The governing body of a municipality, a county, any
 other political subdivision, or a public agency may convey the
 title or the rights and easements to property needed by the district
 for its purposes in connection with the acquisition, construction,
 or operation of the system. (V.A.C.S. Art. 6550c-1, Sec. 4(e)
 (part).)
 Sec. 173.206. ACQUISITION OF ROLLING STOCK AND OTHER
 PROPERTY. A district may acquire rolling stock or other property
 under a conditional sales contract, lease, equipment trust
 certificate, or other form of contract or trust agreement.
 (V.A.C.S. Art. 6550c-1, Sec. 4(k) (part).)
 Sec. 173.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
 (a) A district shall establish and maintain reasonable and
 nondiscriminatory rates or other compensation for the use of the
 facilities of the system acquired, constructed, operated,
 regulated, or maintained by the district.
 (b) Together with grants received by the district, the rates
 or other compensation must be sufficient to produce revenue
 adequate to:
 (1) pay all expenses necessary for the operation and
 maintenance of the district's property and facilities;
 (2) pay the principal of and interest on all bonds
 issued by the district under this chapter payable wholly or partly
 from the revenue, as they become due and payable; and
 (3) fulfill the terms of agreements made with the
 holders of bonds or with any person on their behalf. (V.A.C.S. Art.
 6550c-1, Sec. 4(j).)
 Sec. 173.208. OPERATION OR USE CONTRACTS. (a) A district
 may:
 (1) lease all or part of the commuter rail facilities
 to any operator; or
 (2) contract for the use or operation of all or part of
 the commuter rail facilities by any operator.
 (b) To the maximum extent practicable, the district shall
 encourage the participation of private enterprise in the operation
 of commuter rail facilities.
 (c) The term of an operating contract under this section may
 not exceed 20 years. (V.A.C.S. Art. 6550c-1, Sec. 4(m).)
 Sec. 173.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
 OTHER POLITICAL SUBDIVISIONS. A district may contract with a
 county or other political subdivision of this state for the
 district to provide commuter rail transportation services to an
 area outside the district on terms to which the parties agree.
 (V.A.C.S. Art. 6550c-1, Sec. 4(n).)
 [Sections 173.210-173.250 reserved for expansion]
 SUBCHAPTER F. FINANCIAL PROVISIONS
 Sec. 173.251. FISCAL YEAR. Unless the board changes the
 fiscal year, the district's fiscal year ends on September 30.
 (V.A.C.S. Art. 6550c-1, Sec. 4(p) (part).)
 Sec. 173.252. ANNUAL BUDGET. (a) Before beginning the
 operation of commuter rail facilities, the board shall adopt an
 annual operating budget specifying the district's anticipated
 revenue and expenses for the remainder of the fiscal year. The
 district shall adopt an operating budget for each succeeding fiscal
 year.
 (b) The board must hold a public hearing before adopting
 each budget except the initial budget. Notice of the hearing must
 be published at least seven days before the date of the hearing in a
 newspaper of general circulation in the district.
 (c) A budget may be amended at any time if notice of the
 proposed amendment is given in the notice of meeting.
 (d) An expenditure that is not budgeted may not be made.
 (V.A.C.S. Art. 6550c-1, Sec. 4(p) (part).)
 Sec. 173.253. GRANTS AND LOANS. A district may accept
 grants and loans from the United States, this state and its agencies
 and political subdivisions, public or private corporations, and
 other persons. (V.A.C.S. Art. 6550c-1, Sec. 4(k) (part).)
 Sec. 173.254. DEPOSITORY. (a) The board by resolution
 shall name one or more banks for the deposit of district funds.
 (b) District funds are public funds and may be invested in
 securities permitted by Chapter 2256, Government Code.
 (c) To the extent district funds are not insured by the
 Federal Deposit Insurance Corporation or its successor, the funds
 shall be collateralized in the manner provided for county funds.
 (V.A.C.S. Art. 6550c-1, Sec. 4(r).)
 Sec. 173.255. PURCHASE OF ADDITIONAL INSURED PROVISIONS. A
 district may purchase an additional insured provision to any
 liability insurance contract. (V.A.C.S. Art. 6550c-1, Sec. 4(o).)
 Sec. 173.256. FINANCING OF CERTAIN TRANSPORTATION
 INFRASTRUCTURE. (a) This section applies only to a local
 government, other than a school district, that is a member of a
 district and that is authorized to impose ad valorem taxes on real
 property.
 (b) A district may enter into an interlocal contract with a
 local government member for the financing of transportation
 infrastructure that is constructed or that is to be constructed in
 the territory of the local government by the district.
 (c) The agreement must include:
 (1) the duration of the agreement;
 (2) a description of each transportation
 infrastructure project or proposed project;
 (3) a map showing the location of each project; and
 (4) an estimate of the cost of each project.
 (d) The agreement may establish one or more transportation
 infrastructure zones. The district and the local government may
 agree that, at one or more specified times, the local government
 will pay to the district an amount that is calculated on the basis
 of increased ad valorem tax collections in a zone that are
 attributable to increased values of property located in the zone
 resulting from an infrastructure project. The amount may not
 exceed an amount that is equal to 30 percent of the increase in ad
 valorem tax collections for the specified period.
 (e) Money received by the district under this section may be
 used:
 (1) to provide a local match for the acquisition of
 right-of-way in the territory of the local government; or
 (2) for design, construction, operation, or
 maintenance of transportation facilities in the territory of the
 local government. (V.A.C.S. Art. 6550c-1, Sec. 8.)
 Sec. 173.257. TAX EXEMPTION. District property, material
 purchases, revenue, and income and the interest on bonds and notes
 issued by the district are exempt from any tax imposed by this state
 or a political subdivision of this state. (V.A.C.S. Art. 6550c-1,
 Sec. 7.)
 [Sections 173.258-173.300 reserved for expansion]
 SUBCHAPTER G. BONDS
 Sec. 173.301. REVENUE BONDS. A district may issue revenue
 bonds and notes in amounts that the board considers necessary or
 appropriate for the acquisition, purchase, construction,
 reconstruction, repair, equipping, improvement, or extension of
 its commuter rail facilities. (V.A.C.S. Art. 6550c-1, Sec. 5(a)
 (part).)
 Sec. 173.302. SECURITY FOR PAYMENT OF BONDS. (a) To
 secure payment of district bonds or notes, the district may:
 (1) encumber and pledge all or part of the revenue of
 its commuter rail facilities; and
 (2) encumber all or part of the property of the
 commuter rail facilities and everything pertaining to them acquired
 or to be acquired.
 (b) Unless prohibited by the resolution or indenture
 relating to outstanding bonds or notes, a district may encumber
 separately any item of property. (V.A.C.S. Art. 6550c-1, Sec. 5(c)
 (part).)
 Sec. 173.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
 FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds and notes are
 legal and authorized investments for:
 (1) a bank;
 (2) a trust company;
 (3) a savings and loan association; and
 (4) an insurance company.
 (b) The bonds and notes are:
 (1) eligible to secure the deposit of public funds of
 this state or a municipality, a county, a school district, or any
 other political corporation or subdivision of this state; and
 (2) lawful and sufficient security for the deposit to
 the extent of the principal amount or market value of the bonds or
 notes, whichever is less. (V.A.C.S. Art. 6550c-1, Sec. 5(d).)
 Sec. 173.304. LIMIT ON POWER. (a) A revenue bond
 indenture may limit the exercise of a power granted by Section
 173.004, 173.005, 173.111, 173.151, 173.152, 173.153, 173.154,
 173.155, 173.157, 173.159, 173.160, 173.201, 173.202, 173.203,
 173.204, 173.205, 173.206, 173.207, 173.208, 173.209, 173.251,
 173.252, 173.253, 173.254, or 173.255.
 (b) The limitation applies while any of the revenue bonds
 issued under the indenture are outstanding and unpaid. (V.A.C.S.
 Art. 6550c-1, Sec. 4(k) (part).)
 [Sections 173.305-173.350 reserved for expansion]
 SUBCHAPTER H. SALES AND USE TAXES
 Sec. 173.351. TAX AUTHORIZED. A sales and use tax is
 imposed on items sold on district property. (V.A.C.S. Art.
 6550c-1, Sec. 9(a) (part).)
 Sec. 173.352. TAX RATE. The sales and use tax shall be
 imposed at the rate of the highest combination of local sales and
 use taxes imposed at the time of the district's creation in any
 local governmental jurisdiction that is part of the district.
 (V.A.C.S. Art. 6550c-1, Sec. 9(a) (part).)
 Sec. 173.353. PREEMPTION OF OTHER SALES AND USE TAXES. The
 tax imposed under this subchapter preempts all other local sales
 and use taxes that would otherwise be imposed on district property.
 (V.A.C.S. Art. 6550c-1, Sec. 9(a) (part).)
 Sec. 173.354. APPLICABILITY OF TAX CODE. Chapter 321, Tax
 Code, governs the computation, administration, governance, and use
 of the tax except as inconsistent with this chapter. (V.A.C.S. Art.
 6550c-1, Sec. 9(b) (part).)
 Sec. 173.355. NOTICE TO COMPTROLLER. (a) The district
 shall notify the comptroller in writing by United States registered
 or certified mail of the district's creation and of its intent to
 impose the sales and use tax under this chapter.
 (b) The district shall provide to the comptroller all
 information required to implement the tax, including:
 (1) an adequate map showing the property boundaries of
 the district;
 (2) a certified copy of the resolution of the board
 adopting the tax; and
 (3) certified copies of the resolutions of the
 governing bodies of the creating municipalities and of the
 commissioners courts of the counties in which the municipalities
 are located.
 (c) Not later than the 30th day after the date the
 comptroller receives the notice, map, and other information, the
 comptroller shall inform the district whether the comptroller is
 prepared to administer the tax. (V.A.C.S. Art. 6550c-1, Secs.
 9(c), (d).)
 Sec. 173.356. NOTICE TO LOCAL GOVERNMENTS. At the same time
 the district notifies the comptroller under Section 173.355, the
 district shall:
 (1) notify each affected local governmental
 jurisdiction of the district's creation; and
 (2) provide each jurisdiction with an adequate map
 showing the property boundaries of the district. (V.A.C.S. Art.
 6550c-1, Sec. 9(e).)
 Sec. 173.357. ACQUISITION OF ADDITIONAL TERRITORY SUBJECT
 TO TAX. (a) Not later than the 30th day after the date a district
 acquires additional territory, the district shall notify the
 comptroller and each affected local governmental jurisdiction of
 the acquisition.
 (b) The district must include with each notification:
 (1) an adequate map showing the new property
 boundaries of the district; and
 (2) the date the additional territory was acquired.
 (c) Not later than the 30th day after the date the
 comptroller receives the notice under this section, the comptroller
 shall inform the district whether the comptroller is prepared to
 administer the tax in the additional territory. (V.A.C.S. Art.
 6550c-1, Sec. 9(f).)
 Sec. 173.358. DUTY OF COMPTROLLER. The comptroller shall:
 (1) administer, collect, and enforce a tax imposed
 under this chapter; and
 (2) remit to a district the tax collected on the
 district's property. (V.A.C.S. Art. 6550c-1, Secs. 9(a) (part),
 (b) (part).)
 Sec. 173.359. EFFECTIVE DATE OF TAX. A tax imposed under
 this chapter or the repeal of a tax imposed under this chapter takes
 effect on the first day of the first calendar quarter that begins
 after the expiration of the first complete calendar quarter that
 occurs after the date the comptroller receives a notice of the
 action as required by this subchapter. (V.A.C.S. Art. 6550c-1,
 Sec. 9(g).)
 CHAPTER 174. COMMUTER RAIL DISTRICTS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 174.001. DEFINITION OF PERSON
 Sec. 174.002. DEFINITIONS
 Sec. 174.003. NATURE OF DISTRICT
 Sec. 174.004. REQUIREMENT FOR SERVICE TO
 MUNICIPALITIES IN DISTRICT
 [Sections 174.005-174.050 reserved for expansion]
 SUBCHAPTER B. CREATION
 Sec. 174.051. CREATION OF DISTRICT
 [Sections 174.052-174.100 reserved for expansion]
 SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
 Sec. 174.101. CONTROL OF DISTRICT
 Sec. 174.102. COMPOSITION OF BOARD; TERMS
 Sec. 174.103. PRESIDING OFFICER
 Sec. 174.104. MEETINGS
 Sec. 174.105. RULES FOR PROCEEDINGS
 Sec. 174.106. COMPENSATION; REIMBURSEMENT
 Sec. 174.107. EMPLOYEES
 Sec. 174.108. EXECUTIVE COMMITTEE
 Sec. 174.109. RETIREMENT BENEFITS
 [Sections 174.110-174.150 reserved for expansion]
 SUBCHAPTER D. GENERAL POWERS AND DUTIES
 Sec. 174.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
 FUNCTIONS
 Sec. 174.152. RULES
 Sec. 174.153. AGREEMENTS GENERALLY
 Sec. 174.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
 USE
 Sec. 174.155. JOINT OWNERSHIP AGREEMENTS
 Sec. 174.156. INTERLOCAL AGREEMENTS WITH COMMISSION
 Sec. 174.157. AWARDING CONSTRUCTION OR PURCHASE
 CONTRACTS
 Sec. 174.158. EMINENT DOMAIN
 Sec. 174.159. SUITS
 [Sections 174.160-174.200 reserved for expansion]
 SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
 CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
 Sec. 174.201. GENERAL AUTHORITY OVER COMMUTER RAIL
 FACILITIES
 Sec. 174.202. POWERS RELATING TO DISTRICT PROPERTY
 Sec. 174.203. USE AND ALTERATION OF PROPERTY OF
 ANOTHER POLITICAL SUBDIVISION
 Sec. 174.204. RULES GOVERNING SYSTEM AND ROUTINGS
 Sec. 174.205. ACQUISITION OF PROPERTY
 Sec. 174.206. ACQUISITION OF ROLLING STOCK AND OTHER
 PROPERTY
 Sec. 174.207. COMPENSATION FOR USE OF SYSTEM
 FACILITIES
 Sec. 174.208. OPERATION OR USE CONTRACTS
 Sec. 174.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
 WITH OTHER POLITICAL SUBDIVISIONS
 [Sections 174.210-174.250 reserved for expansion]
 SUBCHAPTER F. FINANCIAL PROVISIONS
 Sec. 174.251. FISCAL YEAR
 Sec. 174.252. ANNUAL BUDGET
 Sec. 174.253. GRANTS AND LOANS
 Sec. 174.254. DEPOSITORY
 Sec. 174.255. PURCHASE OF ADDITIONAL INSURED
 PROVISIONS
 Sec. 174.256. TAX EXEMPTION
 [Sections 174.257-174.300 reserved for expansion]
 SUBCHAPTER G. BONDS
 Sec. 174.301. REVENUE BONDS
 Sec. 174.302. SECURITY FOR PAYMENT OF BONDS
 Sec. 174.303. BONDS AS AUTHORIZED INVESTMENTS AND
 SECURITY FOR DEPOSITS OF PUBLIC FUNDS
 Sec. 174.304. LIMIT ON POWER
 [Sections 174.305-174.350 reserved for expansion]
 SUBCHAPTER H. TAXES
 Sec. 174.351. TAX AUTHORIZED
 Sec. 174.352. IMPOSITION OF TAX
 Sec. 174.353. TAX RATE
 Sec. 174.354. EFFECTIVE DATE OF TAX
 CHAPTER 174. COMMUTER RAIL DISTRICTS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 174.001. DEFINITION OF PERSON. In this chapter:
 (1) "person" includes a corporation, as provided by
 Section 312.011, Government Code; and
 (2) the definition of "person" assigned by Section
 311.005, Government Code, does not apply. (New.)
 Sec. 174.002. DEFINITIONS. In this chapter:
 (1) "Board" means a district's board of directors.
 (2) "Commuter rail facility" means any property
 necessary for the transportation of passengers and baggage between
 locations in a district. The term includes rolling stock,
 locomotives, stations, parking areas, and rail lines.
 (3) "Director" means a board member.
 (4) "District" means a commuter rail district created
 under this chapter or under Article 6550c-3, Revised Statutes, as
 that article existed before April 1, 2011.
 (5) "System" means all of the commuter rail and
 intermodal facilities leased or owned by or operated on behalf of a
 district. (V.A.C.S. Art. 6550c-3, Secs. 1(2), (5), (7); New.)
 Sec. 174.003. NATURE OF DISTRICT. (a) A district is a
 public body and a political subdivision of this state exercising
 public and essential governmental functions.
 (b) A district, in the exercise of powers under this
 chapter, is performing only governmental functions and is a
 governmental unit under Chapter 101, Civil Practice and Remedies
 Code. (V.A.C.S. Art. 6550c-3, Sec. 4(a) (part).)
 Sec. 174.004. REQUIREMENT FOR SERVICE TO MUNICIPALITIES IN
 DISTRICT. A municipality located in a district that wishes to be
 served by commuter rail facilities of the district must pay for
 construction of a commuter rail station. (V.A.C.S. Art. 6550c-3,
 Sec. 9.)
 [Sections 174.005-174.050 reserved for expansion]
 SUBCHAPTER B. CREATION
 Sec. 174.051. CREATION OF DISTRICT. (a) A district may be
 created to provide commuter rail service to counties along the
 Texas-Mexico border.
 (b) The commissioners court of a county may create a
 commuter rail district on adoption of an order favoring the
 creation. (V.A.C.S. Art. 6550c-3, Sec. 2.)
 [Sections 174.052-174.100 reserved for expansion]
 SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
 Sec. 174.101. CONTROL OF DISTRICT. A district is governed
 by a board of directors. The board is responsible for the
 management, operation, and control of the district. (V.A.C.S. Art.
 6550c-3, Sec. 3(a).)
 Sec. 174.102. COMPOSITION OF BOARD; TERMS. (a) The board
 is composed of five directors appointed as follows:
 (1) one director appointed by the county judge; and
 (2) one director appointed by each county
 commissioner.
 (b) Each director serves a four-year term. The board may
 provide for the staggering of the terms of its directors. (V.A.C.S.
 Art. 6550c-3, Sec. 3(b).)
 Sec. 174.103. PRESIDING OFFICER. (a) The directors shall
 elect one director as presiding officer.
 (b) The presiding officer may select another director to
 preside in the absence of the presiding officer. (V.A.C.S. Art.
 6550c-3, Sec. 3(c).)
 Sec. 174.104. MEETINGS. The presiding officer shall call
 at least one meeting of the board each year and may call other
 meetings as the presiding officer determines are appropriate.
 (V.A.C.S. Art. 6550c-3, Sec. 3(d).)
 Sec. 174.105. RULES FOR PROCEEDINGS. The board shall adopt
 rules for its proceedings. (V.A.C.S. Art. 6550c-3, Sec. 3(f)
 (part).)
 Sec. 174.106. COMPENSATION; REIMBURSEMENT. A director is
 not entitled to compensation for serving as a director but is
 entitled to reimbursement for reasonable expenses incurred while
 serving as a director. (V.A.C.S. Art. 6550c-3, Sec. 3(e).)
 Sec. 174.107. EMPLOYEES. The board may employ and
 compensate persons to carry out the powers and duties of the
 district. (V.A.C.S. Art. 6550c-3, Sec. 3(f) (part).)
 Sec. 174.108. EXECUTIVE COMMITTEE. The board shall appoint
 an executive committee. (V.A.C.S. Art. 6550c-3, Sec. 3(f) (part).)
 Sec. 174.109. RETIREMENT BENEFITS. A district is eligible
 to participate in the Texas County and District Retirement System.
 (V.A.C.S. Art. 6550c-3, Sec. 4(p).)
 [Sections 174.110-174.150 reserved for expansion]
 SUBCHAPTER D. GENERAL POWERS AND DUTIES
 Sec. 174.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
 FUNCTIONS. (a) A district has all the powers necessary or
 convenient to carry out the purposes of this chapter.
 (b) A district may perform any act necessary for the full
 exercise of the district's powers. (V.A.C.S. Art. 6550c-3, Secs.
 4(a) (part), (j) (part).)
 Sec. 174.152. RULES. To protect the health, safety, and
 general welfare of district residents and people who use district
 services, a district may adopt rules to govern the operation of the
 district, its employees, the system, service provided by the
 district, and any other necessary matter concerning its purposes,
 including rules regarding health, safety, alcohol or beverage
 service, food service, or telephone or utility service. (V.A.C.S.
 Art. 6550c-3, Sec. 4(g).)
 Sec. 174.153. AGREEMENTS GENERALLY. A district may make
 contracts, leases, and agreements with the United States, this
 state and its agencies and political subdivisions, and other
 persons and entities. (V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
 Sec. 174.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
 A district may:
 (1) make agreements with a public utility, private
 utility, communication system, common carrier, state agency, or
 transportation system for the joint use of facilities,
 installations, or property inside or outside the district; and
 (2) establish:
 (A) through routes; and
 (B) joint fares. (V.A.C.S. Art. 6550c-3, Sec.
 4(f).)
 Sec. 174.155. JOINT OWNERSHIP AGREEMENTS. A district may
 enter into a joint ownership agreement with any person. (V.A.C.S.
 Art. 6550c-3, Sec. 4(h).)
 Sec. 174.156. INTERLOCAL AGREEMENTS WITH COMMISSION. The
 commission may enter into an interlocal agreement with the district
 under which the district may exercise a power or duty of the
 commission for the development and efficient operation of an
 intermodal corridor in the district. (V.A.C.S. Art. 6550c-3, Sec.
 4(j) (part).)
 Sec. 174.157. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
 (a) A contract in the amount of more than $15,000 for the
 construction of improvements or the purchase of material,
 machinery, equipment, supplies, or any other property except real
 property may be awarded only through competitive bidding after
 notice is published in a newspaper of general circulation in the
 district at least 15 days before the date set for receiving bids.
 (b) The board may adopt rules governing the taking of bids
 and the awarding of contracts.
 (c) This section does not apply to:
 (1) personal or professional services;
 (2) the acquisition of an existing rail transportation
 system; or
 (3) a contract with a common carrier to construct
 lines or to operate commuter rail service on lines wholly or partly
 owned by the carrier. (V.A.C.S. Art. 6550c-3, Sec. 6.)
 Sec. 174.158. EMINENT DOMAIN. (a) A district may exercise
 the power of eminent domain to acquire:
 (1) real property in fee simple; or
 (2) an interest in real property less than fee simple
 in, on, under, or above land, including an easement, right-of-way,
 or right of use of airspace or subsurface space.
 (b) The power of eminent domain under this section does not
 apply to:
 (1) land under the jurisdiction of the department; or
 (2) a rail line owned by a common carrier or
 municipality.
 (c) To the extent possible, the district shall use existing
 rail or intermodal transportation corridors for the alignment of
 its system.
 (d) An eminent domain proceeding is begun by the board's
 adoption of a resolution declaring that the district's acquisition
 of the property or interest described in the resolution:
 (1) is a public necessity; and
 (2) is necessary and proper for the construction,
 extension, improvement, or development of commuter rail facilities
 and is in the public interest.
 (e) The resolution is conclusive evidence of the public
 necessity of the proposed acquisition and that the real property or
 interest in property is necessary for public use. (V.A.C.S. Art.
 6550c-3, Sec. 4(e).)
 Sec. 174.159. SUITS. (a) A district may:
 (1) sue and be sued;
 (2) institute and prosecute suits without giving
 security for costs; and
 (3) appeal from a judgment without giving a
 supersedeas or cost bond.
 (b) An action at law or in equity against the district must
 be brought in the county in which a principal office of the district
 is located, except that a suit in eminent domain involving an
 interest in land must be brought in the county in which the land is
 located. (V.A.C.S. Art. 6550c-3, Sec. 4(b).)
 [Sections 174.160-174.200 reserved for expansion]
 SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
 CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
 Sec. 174.201. GENERAL AUTHORITY OVER COMMUTER RAIL
 FACILITIES. A district may acquire, construct, develop, own,
 operate, and maintain intermodal and commuter rail facilities to
 connect political subdivisions in the district. (V.A.C.S. Art.
 6550c-3, Sec. 4(d) (part).)
 Sec. 174.202. POWERS RELATING TO DISTRICT PROPERTY. A
 district may acquire by grant, purchase, gift, devise, lease, or
 otherwise and may hold, use, sell, lease, or dispose of property,
 including a license, a patent, a right, or an interest, necessary,
 convenient, or useful for the full exercise of its powers.
 (V.A.C.S. Art. 6550c-3, Sec. 4(c).)
 Sec. 174.203. USE AND ALTERATION OF PROPERTY OF ANOTHER
 POLITICAL SUBDIVISION. (a) For a purpose described by Section
 174.201, as necessary or useful in the construction,
 reconstruction, repair, maintenance, and operation of the system,
 and with the consent of a municipality, county, or other political
 subdivision, a district may:
 (1) use streets, alleys, roads, highways, and other
 public ways of the political subdivision; and
 (2) relocate, raise, reroute, change the grade of, or
 alter, at the district's expense, the construction of a publicly
 owned or privately owned street, alley, highway, road, railroad,
 electric line or facility, telegraph or telephone property or
 facility, pipeline or facility, conduit or facility, and other
 property.
 (b) A district may not use or alter:
 (1) a road or highway in the state highway system
 without the permission of the commission; or
 (2) a railroad without permission of the railroad.
 (V.A.C.S. Art. 6550c-3, Sec. 4(d) (part).)
 Sec. 174.204. RULES GOVERNING SYSTEM AND ROUTINGS. A
 district by resolution may adopt rules governing the use,
 operation, and maintenance of the system and may determine or
 change a routing as the board considers advisable. (V.A.C.S. Art.
 6550c-3, Sec. 4(k).)
 Sec. 174.205. ACQUISITION OF PROPERTY. (a) A district may
 purchase any interest in real property to acquire, construct, or
 operate a commuter rail facility on terms and at a price to which
 the district and the owner agree.
 (b) The governing body of a municipality, a county, any
 other political subdivision, or a public agency may convey the
 title or the rights and easements to property needed by the district
 for its purposes in connection with the acquisition, construction,
 or operation of the system. (V.A.C.S. Art. 6550c-3, Sec. 4(d)
 (part).)
 Sec. 174.206. ACQUISITION OF ROLLING STOCK AND OTHER
 PROPERTY. A district may acquire rolling stock or other property
 under a conditional sales contract, lease, equipment trust
 certificate, or other form of contract or trust agreement.
 (V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
 Sec. 174.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
 (a) A district shall establish and maintain reasonable and
 nondiscriminatory rates or other compensation for the use of the
 facilities of the system acquired, constructed, operated,
 regulated, or maintained by the district.
 (b) Together with grants received by the district, the rates
 or other compensation must be sufficient to produce revenue
 adequate to:
 (1) pay all expenses necessary for the operation and
 maintenance of the district's property and facilities;
 (2) pay the principal of and interest on bonds issued
 by the district payable wholly or partly from the revenue, as they
 become due and payable; and
 (3) fulfill the terms of agreements made with the
 holders of bonds or with any person on their behalf. (V.A.C.S.
 Art. 6550c-3, Sec. 4(i).)
 Sec. 174.208. OPERATION OR USE CONTRACTS. (a) A district
 may:
 (1) lease all or part of the commuter rail facilities
 to an operator; or
 (2) contract for the use or operation of all or part of
 the commuter rail facilities by an operator.
 (b) To the maximum extent practicable, the district shall
 encourage the participation of private enterprise in the operation
 of commuter rail facilities.
 (c) The term of an operating contract under this section may
 not exceed 20 years. (V.A.C.S. Art. 6550c-3, Sec. 4(l).)
 Sec. 174.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
 OTHER POLITICAL SUBDIVISIONS. A district may contract with a
 county or other political subdivision of this state for the
 district to provide commuter rail transportation services to an
 area outside the district on terms to which the parties agree.
 (V.A.C.S. Art. 6550c-3, Sec. 4(m).)
 [Sections 174.210-174.250 reserved for expansion]
 SUBCHAPTER F. FINANCIAL PROVISIONS
 Sec. 174.251. FISCAL YEAR. Unless the board changes the
 fiscal year, the district's fiscal year ends on September 30.
 (V.A.C.S. Art. 6550c-3, Sec. 4(o) (part).)
 Sec. 174.252. ANNUAL BUDGET. (a) Before beginning the
 operation of commuter rail facilities, the board shall adopt an
 annual operating budget specifying the district's anticipated
 revenue and expenses for the remainder of the fiscal year. The
 district shall adopt an operating budget for each succeeding fiscal
 year.
 (b) The board must hold a public hearing before adopting
 each budget except the initial budget. Notice of the hearing must
 be published at least seven days before the date of the hearing in a
 newspaper of general circulation in the district.
 (c) A budget may be amended at any time if notice of the
 proposed amendment is given in the notice of the meeting at which
 the amendment will be considered.
 (d) An expenditure that is not budgeted may not be made.
 (V.A.C.S. Art. 6550c-3, Sec. 4(o) (part).)
 Sec. 174.253. GRANTS AND LOANS. A district may accept
 grants and loans from the United States, this state and its agencies
 and political subdivisions, and other persons and entities.
 (V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
 Sec. 174.254. DEPOSITORY. (a) The board by resolution
 shall name one or more banks for the deposit of district funds.
 (b) District funds are public funds and may be invested in
 securities permitted by Chapter 2256, Government Code.
 (c) To the extent district funds are not insured by the
 Federal Deposit Insurance Corporation or its successor, the funds
 shall be collateralized in the manner provided for county funds.
 (V.A.C.S. Art. 6550c-3, Sec. 4(q).)
 Sec. 174.255. PURCHASE OF ADDITIONAL INSURED PROVISIONS. A
 district may purchase an additional insured provision to any
 liability insurance contract. (V.A.C.S. Art. 6550c-3, Sec. 4(n).)
 Sec. 174.256. TAX EXEMPTION. District property, material
 purchases, revenue, and income and the interest on a bond or note
 issued by a district are exempt from any tax imposed by this state
 or a political subdivision of this state. (V.A.C.S. Art. 6550c-3,
 Sec. 7.)
 [Sections 174.257-174.300 reserved for expansion]
 SUBCHAPTER G. BONDS
 Sec. 174.301. REVENUE BONDS. A district may issue revenue
 bonds and notes in amounts that the board considers necessary or
 appropriate for the acquisition, purchase, construction,
 reconstruction, repair, equipping, improvement, or extension of
 its commuter rail facilities. (V.A.C.S. Art. 6550c-3, Sec. 5(a)
 (part).)
 Sec. 174.302. SECURITY FOR PAYMENT OF BONDS. (a) To
 secure payment of district bonds or notes, the district may:
 (1) encumber and pledge all or part of the revenue of
 its commuter rail facilities; and
 (2) encumber all or part of the property of the
 commuter rail facilities and everything pertaining to them that is
 acquired or to be acquired.
 (b) Unless prohibited by the resolution or indenture
 relating to outstanding bonds or notes, a district may encumber
 separately any item of property. (V.A.C.S. Art. 6550c-3, Sec. 5(c)
 (part).)
 Sec. 174.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
 FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds and notes are
 legal and authorized investments for:
 (1) a bank;
 (2) a trust company;
 (3) a savings and loan association; and
 (4) an insurance company.
 (b) The bonds and notes are:
 (1) eligible to secure the deposit of public funds of
 this state or a municipality, a county, a school district, or any
 other political corporation or subdivision of this state; and
 (2) lawful and sufficient security for the deposit to
 the extent of the principal amount or market value of the bonds or
 notes, whichever is less. (V.A.C.S. Art. 6550c-3, Sec. 5(d).)
 Sec. 174.304. LIMIT ON POWER. (a) A revenue bond
 indenture may limit the exercise of the power granted by Section
 174.003, 174.109, 174.151, 174.152, 174.153, 174.154, 174.155,
 174.156, 174.158, 174.159, 174.201, 174.202, 174.203, 174.204,
 174.205, 174.206, 174.207, 174.208, 174.209, 174.251, 174.252,
 174.253, 174.254, or 174.255.
 (b) A limit applies while any of the revenue bonds issued
 under the indenture are outstanding and unpaid. (V.A.C.S. Art.
 6550c-3, Sec. 4(j) (part).)
 [Sections 174.305-174.350 reserved for expansion]
 SUBCHAPTER H. TAXES
 Sec. 174.351. TAX AUTHORIZED. A district may impose any
 kind of tax except an ad valorem property tax. (V.A.C.S. Art.
 6550c-3, Sec. 8(a).)
 Sec. 174.352. IMPOSITION OF TAX. (a) A district may not
 impose a tax or increase the rate of an existing tax unless a
 proposition proposing the imposition or rate increase is approved
 by a majority of the votes received at an election held for that
 purpose.
 (b) Each new tax or rate increase must be expressed in a
 separate proposition consisting of a brief statement of the nature
 of the proposed tax.
 (c) The notice of the election must contain a statement of
 the base or rate of the proposed tax. (V.A.C.S. Art. 6550c-3, Secs.
 8(b), (c), (d).)
 Sec. 174.353. TAX RATE. (a) The board, subject to Section
 174.352(a), may impose for a district a sales and use tax at the
 rate of:
 (1) one-quarter of one percent;
 (2) one-half of one percent;
 (3) three-quarters of one percent; or
 (4) one percent.
 (b) A district may not adopt a sales and use tax rate,
 including a rate increase, that when combined with the rates of all
 sales and use taxes imposed by other political subdivisions of this
 state having territory in the district exceeds two percent in any
 location in the district. (V.A.C.S. Art. 6550c-3, Secs. 8(e),
 (f).)
 Sec. 174.354. EFFECTIVE DATE OF TAX. A district's sales and
 use tax takes effect on the first day of the second calendar quarter
 beginning after the election approving the tax. (V.A.C.S. Art.
 6550c-3, Sec. 8(g).)
 SECTION 2.05. Subchapter B, Chapter 452, Transportation
 Code, is amended by adding Section 452.0561 to read as follows:
 Sec. 452.0561. LIABILITY OF TRANSPORTATION ENTITY
 PROVIDING PUBLIC TRANSPORTATION. (a) This section applies only to
 a transportation entity created under:
 (1) Subtitle C or D of Title 5 or Chapter 172, 173, or
 174; or
 (2) former Title 112, Revised Statutes.
 (b) A transportation entity created for the purpose of
 providing public transportation is a governmental unit under
 Chapter 101, Civil Practice and Remedies Code, and the operations
 of the entity are essential governmental functions and not
 proprietary functions for any purpose, including the application of
 Chapter 101, Civil Practice and Remedies Code.
 (c) An independent contractor of a transportation entity
 performing a function of the entity or an authority is liable for
 damages only to the extent that the entity or authority would be
 liable if the entity or authority itself were performing the
 function. (V.A.C.S. Art. 6550d.)
 SECTION 2.06. Chapter 471, Transportation Code, is amended
 by adding Section 471.009 to read as follows:
 Sec. 471.009. ENHANCED PAVEMENT MARKING VISIBILITY AT
 CERTAIN GRADE CROSSINGS. (a) In this section:
 (1) "Grade crossing" and "reflecting material" have
 the meanings assigned by Section 471.004.
 (2) "Pavement markings" means markings applied or
 attached to the surface of a roadway to regulate, warn, or guide
 traffic.
 (3) "Stop bar" means the marking that is applied or
 attached to the surface of a roadway on either side of a grade
 crossing and that indicates that a vehicle must stop at the grade
 crossing.
 (b) A county or municipality shall use standards developed
 by the department in applying pavement markings or a stop bar at a
 grade crossing if the cost of the markings or stop bar is paid
 either entirely or partly from state or federal funds. In
 developing its standards, the department shall follow the standards
 in the Manual on Uniform Traffic Control Devices issued by the
 United States Department of Transportation Federal Highway
 Administration and, where appropriate, require the use of
 reflecting materials. (V.A.C.S. Art. 6370c.)
 SECTION 2.07. Title 66, Revised Statutes, is amended by
 adding Article 4015g to read as follows:
 Art. 4015g. SUITS FOR PENALTY. (a) A suit brought under
 this title for recovery of penalties may be brought in any county in
 which:
 (1) a violation of this title is committed;
 (2) the company or receiver has an agent or
 representative; or
 (3) the principal office of the company is located, or
 in which a receiver resides.
 (b) Of money collected from a penalty in this title:
 (1) half, less the commission and expenses allowed by
 law, shall be deposited in the state treasury; and
 (2) the remainder shall be paid into the jury fund of
 the county in which the suit may be maintained. (V.A.C.S. Art. 6477
 (part).)
 ARTICLE 3. TRANSFER OF PROVISIONS FROM TITLE 112, REVISED
 STATUTES, TO NATURAL RESOURCES CODE
 SECTION 3.01. Subchapter A, Chapter 81, Natural Resources
 Code, is amended by adding Section 81.002 to read as follows:
 Sec. 81.002. DEFINITION OF PERSON FOR CERTAIN PROVISIONS.
 In this chapter:
 (1) "person" includes a corporation, as provided by
 Section 312.011, Government Code; and
 (2) the definition of "person" assigned by Section
 311.005, Government Code, does not apply. (New.)
 SECTION 3.02. Subchapter B, Chapter 81, Natural Resources
 Code, is amended by adding Sections 81.01001 through 81.01016 and
 81.0165 to read as follows:
 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
 Sec. 81.01001. SUNSET PROVISION
 Sec. 81.01002. CHAIRMAN
 Sec. 81.01003. QUALIFICATIONS FOR OFFICE
 Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE,
 INTEREST
 Sec. 81.01005. NAME AND SEAL
 Sec. 81.01006. PROCEDURAL RULES
 Sec. 81.01007. SUPPLIES
 Sec. 81.01008. SESSIONS
 Sec. 81.01009. RECORDS RESEARCH FEE
 Sec. 81.01010. FEE FOR COPIES
 Sec. 81.01011. METHOD OF MAKING PAYMENTS TO COMMISSION
 Sec. 81.01012. GIFTS, GRANTS, AND DONATIONS
 Sec. 81.01013. CONFLICT OF INTEREST
 Sec. 81.01014. EQUAL EMPLOYMENT OPPORTUNITY
 Sec. 81.01015. EMPLOYEE INCENTIVE PROGRAM
 Sec. 81.01016. SEPARATION OF RESPONSIBILITIES
 Sec. 81.0165. SALARY OF SECRETARY
 Sec. 81.01001. SUNSET PROVISION. The Railroad Commission
 of Texas is subject to Chapter 325, Government Code (Texas Sunset
 Act). Unless continued in existence as provided by that chapter,
 the commission is abolished September 1, 2013. (V.A.C.S. Art.
 6445a.)
 Sec. 81.01002. CHAIRMAN. The commissioners shall elect one
 commissioner as the chairman. (V.A.C.S. Art. 6447 (part).)
 Sec. 81.01003. QUALIFICATIONS FOR OFFICE. A commissioner
 must be:
 (1) a qualified voter under the constitution and laws;
 and
 (2) at least 25 years of age. (V.A.C.S. Art. 6447
 (part).)
 Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF
 CONDUCT, AND CONFLICT OF INTEREST. A commissioner is subject to the
 provisions of Chapter 572, Government Code, that apply to elected
 officers, including the requirements governing personal financial
 statements, standards of conduct, and conflicts of interest.
 (V.A.C.S. Art. 6447 (part).)
 Sec. 81.01005. NAME AND SEAL. (a) The commissioners are
 known collectively as the "Railroad Commission of Texas."
 (b) The seal of the commission contains a star of five
 points with the words "Railroad Commission of Texas" engraved on
 it. (V.A.C.S. Art. 6447 (part).)
 Sec. 81.01006. PROCEDURAL RULES. The commissioners may
 adopt all rules necessary for the commission's government and
 proceedings. (V.A.C.S. Art. 6447 (part).)
 Sec. 81.01007. SUPPLIES. The commissioners shall be
 furnished necessary furniture, stationery, supplies, and expenses,
 to be paid for on the order of the governor. (V.A.C.S. Art. 6447
 (part).)
 Sec. 81.01008. SESSIONS. The commission may hold sessions
 at any place in this state when considered necessary. (V.A.C.S.
 Art. 6447 (part).)
 Sec. 81.01009. RECORDS RESEARCH FEE. The commission shall
 charge a person who requests an examination or search of commission
 records $5 for each half hour or fraction of a half hour that a
 commission employee spends in the examination or search unless the
 person requesting the search represents this state or a county.
 (V.A.C.S. Art. 6447j.)
 Sec. 81.01010. FEE FOR COPIES. (a) The commission may
 charge a fee for copies of papers provided by the commission to a
 person other than a department of this state.
 (b) The fee for a copy of a paper, document, or record in the
 commission's office, including the certificate and seal to be
 applied by the secretary, is 15 cents for each 100 words.
 (c) This section does not authorize the commission to charge
 a person a fee for a tariff sheet for the person's own use if the
 tariff sheet is in effect.
 (d) The fees charged and collected under this section shall
 be accounted for by the secretary of the commission and paid into
 the treasury as provided by Chapter 603, Government Code.
 (V.A.C.S. Art. 3922.)
 Sec. 81.01011. METHOD OF MAKING PAYMENTS TO COMMISSION.
 (a) The commission may authorize payment, as prescribed by the
 commission, of a regulatory fee, fine, penalty, or charge for goods
 and services by means of an electronic payment method or a credit
 card issued by a financial institution chartered by a state or the
 United States or issued by a nationally recognized credit
 organization approved by the commission. A payment by the
 authorized method may be made in person, by telephone, or through
 the Internet.
 (b) The commission may require a person who makes a payment
 to the commission by means of an electronic payment method or credit
 card to pay a discount or service charge in an amount reasonable and
 necessary to reimburse the commission for the costs involved in
 processing the payment.
 (c) The commission may adopt rules as necessary to implement
 this section. (V.A.C.S. Art. 6447n.)
 Sec. 81.01012. GIFTS, GRANTS, AND DONATIONS. (a) In this
 section, "contested case" has the meaning assigned by Section
 2001.003, Government Code.
 (b) The commission may apply for, request, solicit,
 contract for, receive, accept, and administer gifts, grants, and
 donations of money or other assistance from any source to carry out
 any commission purpose or power.
 (c) The commission may not, under Subsection (b), accept a
 gift or donation of money or of property from a party in a contested
 case during the period from the inception of the contested case
 until the 30th day after the date a final order is signed in the
 contested case. (V.A.C.S. Art. 6447i.)
 Sec. 81.01013. CONFLICT OF INTEREST. (a) In this section,
 "Texas trade association" means a cooperative and voluntarily
 joined association of business or professional competitors in this
 state designed to assist its members and its industry or profession
 in dealing with mutual business or professional problems and in
 promoting their common interest.
 (b) A person may not be an employee of the commission
 employed in a "bona fide executive, administrative, or professional
 capacity," as that phrase is used for purposes of establishing an
 exemption to the overtime provisions of the federal Fair Labor
 Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
 (1) the person is an officer, employee, or paid
 consultant of a Texas trade association in a business or industry
 regulated by the commission; or
 (2) the person's spouse is an officer, manager, or paid
 consultant of a Texas trade association in a business or industry
 regulated by the commission.
 (c) A person who is required to register as a lobbyist under
 Chapter 305, Government Code, may not act as the general counsel to
 the commission.
 (d) The commission shall provide to commissioners and to
 agency employees, as often as necessary, information regarding the
 requirements for office or employment under this chapter, including
 information regarding a person's responsibilities under applicable
 laws relating to standards of conduct for state officers or
 employees. (V.A.C.S. Art. 6447c.)
 Sec. 81.01014. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
 commission shall prepare and maintain a written policy statement
 that implements a program of equal employment opportunity to ensure
 that all personnel decisions are made without regard to race,
 color, disability, sex, religion, age, or national origin.
 (b) The policy statement must include:
 (1) personnel policies, including policies relating
 to recruitment, evaluation, selection, training, and promotion of
 personnel, that show the intent of the commission to avoid the
 unlawful employment practices described by Chapter 21, Labor Code;
 and
 (2) an analysis of the extent to which the composition
 of the commission's personnel is in accordance with state and
 federal law and a description of reasonable methods to achieve
 compliance with state and federal law.
 (c) The policy statement must:
 (1) be updated annually;
 (2) be reviewed by the Texas Workforce Commission
 civil rights division for compliance with Subsection (b); and
 (3) be filed with the governor's office. (V.A.C.S.
 Art. 6447b.)
 Sec. 81.01015. EMPLOYEE INCENTIVE PROGRAM. The commission
 shall provide to commission employees information and training on
 the benefits and methods of participation in the state employee
 incentive program. (V.A.C.S. Art. 6447m.)
 Sec. 81.01016. SEPARATION OF RESPONSIBILITIES. The
 commission shall develop and implement policies that clearly
 separate the policy-making responsibilities of the commissioners
 and the management responsibilities of the staff of the commission.
 (V.A.C.S. Art. 6447k.)
 Sec. 81.0165. SALARY OF SECRETARY. The salary of the
 secretary of the commission shall be the amount appropriated for
 that purpose by the legislature. (V.A.C.S. Art. 6447a.)
 SECTION 3.03. Subchapter C, Chapter 81, Natural Resources
 Code, is amended by adding Sections 81.0591, 81.0592, 81.062,
 81.063, and 81.064 to read as follows:
 SUBCHAPTER C. JURISDICTION, POWERS, AND DUTIES
 Sec. 81.0591. COMPLAINTS
 Sec. 81.0592. CONSUMER INTEREST INFORMATION
 Sec. 81.062. PUBLIC PARTICIPATION
 Sec. 81.063. ISSUANCE, SUSPENSION, OR REVOCATION OF
 LICENSE, PERMIT, OR CERTIFICATE
 Sec. 81.064. POWERS OF COMMISSIONER OR DESIGNATED
 EMPLOYEE IN CASES BEFORE COMMISSION
 Sec. 81.0591. COMPLAINTS. (a) The commission shall
 maintain a file on each written complaint filed with the
 commission. The file must include:
 (1) the name of the person who filed the complaint;
 (2) the date the complaint is received by the
 commission;
 (3) the subject matter of the complaint;
 (4) the name of each person contacted in relation to
 the complaint;
 (5) a summary of the results of the review or
 investigation of the complaint; and
 (6) an explanation of the reason the file was closed,
 if the commission closed the file without taking action other than
 to investigate the complaint.
 (b) The commission shall provide to the person filing the
 complaint and to each person who is a subject of the complaint a
 copy of the commission's policies and procedures relating to
 complaint investigation and resolution.
 (c) The commission, at least quarterly until final
 disposition of the complaint, shall notify the person filing the
 complaint and each person who is a subject of the complaint of the
 status of the investigation unless the notice would jeopardize an
 undercover investigation. (V.A.C.S. Art. 6447h.)
 Sec. 81.0592. CONSUMER INTEREST INFORMATION. (a) The
 commission shall prepare information of consumer interest
 describing the regulatory functions of the commission and the
 procedures by which consumer complaints are filed with and resolved
 by the commission.
 (b) The commission shall make the information available to
 the public and appropriate state agencies. (V.A.C.S. Art. 6447g.)
 Sec. 81.062. PUBLIC PARTICIPATION. The commission shall
 develop and implement policies that provide the public with a
 reasonable opportunity to appear before the commission and to speak
 on any issue under the jurisdiction of the commission. (V.A.C.S.
 Art. 6447l.)
 Sec. 81.063. ISSUANCE, SUSPENSION, OR REVOCATION OF
 LICENSE, PERMIT, OR CERTIFICATE. (a) If the commission proposes
 to suspend or revoke a person's license, permit, or certificate of
 public convenience and necessity, the person is entitled to a
 hearing before the commission.
 (b) The commission may not:
 (1) refuse to issue a license, permit, or certificate
 to a person because of the person's race, religion, color, sex, or
 national origin; or
 (2) revoke or suspend the license, permit, or
 certificate of a person because of the person's race, religion,
 color, sex, or national origin. (V.A.C.S. Arts. 6447f(a), (c).)
 Sec. 81.064. POWERS OF COMMISSIONER OR DESIGNATED EMPLOYEE
 IN CASES BEFORE COMMISSION. (a) In a case before the commission, a
 commissioner, or an authorized commission employee, designated by
 the commission for that purpose, in the same manner as if the entire
 commission were present, may:
 (1) hold a hearing;
 (2) conduct an investigation;
 (3) make a record of a hearing or investigation for the
 use and benefit of the commission;
 (4) administer an oath;
 (5) certify to an official act; and
 (6) compel the attendance of a witness and the
 production of papers, books, accounts, and other pertinent
 documents and testimony.
 (b) The record of a hearing or investigation made under this
 section that is certified to by the commissioner or employee has the
 same effect as if made before the commission. The commission shall
 determine a case in which the record is made under this section in
 the same manner as if the record had been made before the
 commission.
 (c) The commission may punish for contempt a person who:
 (1) refuses to comply with this section; or
 (2) obstructs or attempts to obstruct a proceeding
 under this section. (V.A.C.S. Art. 6519a (part).)
 SECTION 3.04. Subchapter D, Chapter 81, Natural Resources
 Code, is amended by adding Section 81.093 to read as follows:
 Sec. 81.093. DEPOSITIONS. (a) In a matter pending for
 hearing before the commission or a division of the commission, the
 commission or an interested party may produce the testimony of a
 witness by written or oral deposition instead of compelling the
 personal attendance of the witness. For that purpose, the
 commission may issue a commission or other process necessary to
 take a deposition.
 (b) The deposition shall be taken, to the extent applicable
 and to the greatest extent possible, in accordance with the
 provisions of the Texas Rules of Civil Procedure relating to
 written and oral depositions. (V.A.C.S. Art. 6472a.)
 ARTICLE 4. CONFORMING AMENDMENTS
 SECTION 4.01. Section 101.0817, Government Code, is amended
 to read as follows:
 Sec. 101.0817. STATUTORY COUNTY COURT FEES AND COSTS UNDER
 OTHER LAWS. The clerk of a statutory county court shall collect
 a fee of $10 under Section 112.059, Transportation Code [Article
 6327, Vernon's Texas Civil Statutes], for a county attorney in a
 suit regarding a railroad company's failure to keep roadbed and
 right-of-way in proper condition.
 SECTION 4.02. Subsection (c), Section 91.004,
 Transportation Code, is amended to read as follows:
 (c) Subsection (b) does not apply to money appropriated or
 allocated:
 (1) to a transit authority described by Chapter 451, a
 transportation authority described by Chapter 452 or 460, or a
 transit department described by Chapter 453; or
 (2) for use by:
 (A) a port authority or navigation district
 created or operating under Section 52, Article III, or Section 59,
 Article XVI, Texas Constitution; or
 (B) a district created under Chapter 172 of this
 code or Chapter 623, Acts of the 67th Legislature, Regular Session,
 1981 (former Article 6550c, Vernon's Texas Civil Statutes).
 SECTION 4.03. Subdivisions (2), (4), and (5), Section
 171.001, Transportation Code, are amended to read as follows:
 (2) "Bonds" has the meaning assigned by Section
 172.001 [Chapter 623, Acts of the 67th Legislature, Regular
 Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes)].
 (4) "Rail facilities" has the meaning assigned by
 Section 172.001 [Chapter 623, Acts of the 67th Legislature, Regular
 Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes)],
 except that the term includes property and interests necessary or
 convenient for the provision of a nonrural rail transportation
 system.
 (5) "Revenue" ["Revenues"] has the meaning assigned by
 Section 172.001 [Chapter 623, Acts of the 67th Legislature, Regular
 Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes)].
 SECTION 4.04. Section 171.002, Transportation Code, is
 amended to read as follows:
 Sec. 171.002. APPLICABILITY OF RURAL RAIL TRANSPORTATION
 DISTRICTS LAW. (a) Except as provided by this chapter, the
 provisions of Chapter 172 other than Section 172.003 [Sections 2-9,
 Chapter 623, Acts of the 67th Legislature, Regular Session, 1981
 (Article 6550c, Vernon's Texas Civil Statutes),] apply to a
 district as if the district were created under that chapter.
 (b) For purposes of applying Chapter 172 [623, Acts of the
 67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
 Texas Civil Statutes),] to a district created under this chapter, a
 reference to "rail facilities" in Chapter 172 [Chapter 623] means
 "rail facilities" as defined by Section 171.001.
 (c) For purposes of applying Chapter 172 [623, Acts of the
 67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
 Texas Civil Statutes),] to a district created under this chapter, a
 reference in Chapter 172 [Chapter 623] to "eligible county" means a
 county that created the district.
 SECTION 4.05. Section 171.053, Transportation Code, is
 amended to read as follows:
 Sec. 171.053. INTERMUNICIPAL COMMUTER RAIL DISTRICT
 POWERS. The governing bodies of the county or counties and of the
 most populous municipality in the most populous county may provide
 that the district may exercise the powers of an intermunicipal
 commuter rail district created under Chapter 173 or former Article
 6550c-1, Revised Statutes, by specifying in the concurrent order or
 ordinance creating the district that those powers may be exercised
 by the district.
 SECTION 4.06. Section 171.154, Transportation Code, is
 amended to read as follows:
 Sec. 171.154. INTERMUNICIPAL COMMUTER RAIL POWERS.
 (a) The district may exercise the powers of an intermunicipal
 commuter rail district created under Chapter 173 or former Article
 6550c-1, Revised Statutes, only if the concurrent order or
 ordinance creating the district specifies that the district may
 exercise those powers. The order or ordinance may not grant the
 district the power to impose a tax.
 (b) In the event of a conflict between this chapter and a
 power granted by Chapter 173 [Article 6550c-1, Revised Statutes],
 this chapter controls. In the event of a conflict between Chapter
 173 [Article 6550c-1] and Chapter 172 [Chapter 623, Acts of the 67th
 Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
 Civil Statutes)], Chapter 172 [Article 6550c] controls over Chapter
 173 [Article 6550c-1].
 SECTION 4.07. Section 171.251, Transportation Code, is
 amended to read as follows:
 Sec. 171.251. PLEDGE OF REVENUE [REVENUES]. A district may
 secure and pledge revenue [revenues] derived from any source to
 secure the payment of district bonds.
 SECTION 4.08. Section 171.302, Transportation Code, is
 amended to read as follows:
 Sec. 171.302. DISSOLUTION. In addition to the dissolution
 procedures provided by Chapter 172 [Chapter 623, Acts of the 67th
 Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
 Civil Statutes)], the board may dissolve a district if:
 (1) all district liabilities have been paid or
 adequate provision has been made for the payment of all
 liabilities;
 (2) the district is not a party to any lawsuits or
 adequate provision has been made for the satisfaction of any
 judgment or order that may be entered against the district in a
 lawsuit to which the district is a party; and
 (3) the district has commitments from other
 governmental entities to assume jurisdiction of all district rail
 facilities.
 SECTION 4.09. Subsection (d), Section 370.186,
 Transportation Code, is amended to read as follows:
 (d) An authority may not construct, maintain, or operate a
 passenger rail facility within the boundaries of an intermunicipal
 commuter rail district created under former Article 6550c-1,
 Vernon's Texas Civil Statutes, as those boundaries existed on
 September 1, 2005, unless the district and the authority enter into
 a written agreement specifying the terms and conditions under which
 the project will be undertaken.
 SECTION 4.10. Subsection (d), Section 452.056,
 Transportation Code, is amended to read as follows:
 (d) A private operator who contracts with an authority under
 this chapter is not a public entity for purposes of any law of this
 state except that an independent contractor of the authority that,
 on or after June 14, 1989, performs a function of the authority or
 an entity described by Section 452.0561 [under Title 112, Revised
 Statutes,] that is created to provide transportation services is
 liable for damages only to the extent that the authority or entity
 would be liable if the authority or entity itself were performing
 the function and only for a cause of action that accrues on or after
 that date.
 SECTION 4.11. Subsection (b), Section 25.07, Tax Code, as
 amended by Chapters 609, 885, and 1169, Acts of the 80th
 Legislature, Regular Session, 2007, is reenacted and amended to
 read as follows:
 (b) Except as provided by Sections 11.11(b) and (c), a
 leasehold or other possessory interest in exempt property may not
 be listed if:
 (1) the property is permanent university fund land;
 (2) the property is county public school fund
 agricultural land;
 (3) the property is a part of a public transportation
 facility owned by a municipality or county and:
 (A) is an airport passenger terminal building or
 a building used primarily for maintenance of aircraft or other
 aircraft services, for aircraft equipment storage, or for air
 cargo;
 (B) is an airport fueling system facility;
 (C) is in a foreign-trade zone:
 (i) that has been granted to a joint airport
 board under Subchapter C, Chapter 681, Business & Commerce Code;
 (ii) the area of which in the portion of the
 zone located in the airport operated by the joint airport board does
 not exceed 2,500 acres; and
 (iii) that is established and operating
 pursuant to federal law; or
 (D)(i) is in a foreign trade zone established
 pursuant to federal law after June 1, 1991, that [which] operates
 pursuant to federal law;
 (ii) is contiguous to or has access via a
 taxiway to an airport located in two counties, one of which has a
 population of 500,000 or more according to the federal decennial
 census most recently preceding the establishment of the foreign
 trade zone; and
 (iii) is owned, directly or through a
 corporation organized under the Development Corporation Act
 (Subtitle C1, Title 12, Local Government Code), by the same
 municipality that [which] owns the airport;
 (4) the interest is in a part of:
 (A) a park, market, fairground, or similar public
 facility that is owned by a municipality; or
 (B) a convention center, visitor center, sports
 facility with permanent seating, concert hall, arena, or stadium
 that is owned by a municipality as such leasehold or possessory
 interest serves a governmental, municipal, or public purpose or
 function when the facility is open to the public, regardless of
 whether a fee is charged for admission;
 (5) the interest involves only the right to use the
 property for grazing or other agricultural purposes; [or]
 (6) the property is:
 (A) owned by a municipality, a public port, or a
 navigation district created or operating under Section 59, Article
 XVI, Texas Constitution, or under a statute enacted under Section
 59, Article XVI, Texas Constitution; and
 (B) used as an aid or facility incidental to or
 useful in the operation or development of a port or waterway or in
 aid of navigation-related commerce; or
 (7) [(8)] the property is part of a rail facility
 owned by a rural rail transportation district [created or]
 operating under Chapter 172, Transportation Code [623, Acts of the
 67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
 Texas Civil Statutes)].
 ARTICLE 5. REPEALER
 SECTION 5.01. (a) The following provisions are repealed:
 (1) Title 112, Revised Statutes;
 (2) Article 3922, Revised Statutes;
 (3) Chapter 480 (H.B. 1656), Acts of the 73rd
 Legislature, Regular Session, 1993 (Article 6370c, Vernon's Texas
 Civil Statutes);
 (4) Section 1, Chapter 140 (H.B. 525), Acts of the 40th
 Legislature, Regular Session, 1927 (Article 6447a, Vernon's Texas
 Civil Statutes);
 (5) Section 1, Chapter 43 (H.B. 105), Acts of the 41st
 Legislature, 5th Called Session, 1930 (Article 6472a, Vernon's
 Texas Civil Statutes);
 (6) Section 1, Chapter 262 (S.B. 125), Acts of the 41st
 Legislature, Regular Session, 1929 (Article 6519a, Vernon's Texas
 Civil Statutes);
 (7) Section 8, Chapter 65 (S.B. 389), Acts of the 67th
 Legislature, Regular Session, 1981 (Article 6519c, Vernon's Texas
 Civil Statutes); and
 (8) Chapter 623 (H.B. 1822), Acts of the 67th
 Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
 Civil Statutes).
 (b) The repeal of Title 112, Revised Statutes, by this Act
 does not affect the validity of statutes that were not added to
 Title 112, Revised Statutes, by the legislature, but were
 unofficially printed in that title by any publisher of the Texas
 statutes, except as those articles are specifically repealed in
 Subsection (a) of this section.
 ARTICLE 6. LEGISLATIVE INTENT; EFFECTIVE DATE
 SECTION 6.01. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
 This Act is enacted under Section 43, Article III, Texas
 Constitution. No substantive change in law is intended by this Act.
 SECTION 6.02. EFFECTIVE DATE. This Act takes effect April
 1, 2011.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I hereby certify that S.B. No. 1540 passed the Senate on
 April 23, 2009, by the following vote: Yeas 30, Nays 0.
 ______________________________
 Secretary of the Senate
 I hereby certify that S.B. No. 1540 passed the House on
 May 11, 2009, by the following vote: Yeas 147, Nays 0, two
 present not voting.
 ______________________________
 Chief Clerk of the House
 Approved:
 ______________________________
 Date
 ______________________________
 Governor