By: Phillips H.B. No. 1112
A BILL TO BE ENTITLED
AN ACT
relating to the authority and powers of regional mobility
authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 370.003(12) and (14), Transportation
Code, are amended to read as follows:
(12) "Surplus revenue" means revenue that exceeds:
(A) an authority's debt service requirements for
a transportation project, including the redemption or purchase
price of bonds subject to redemption or purchase as provided in the
applicable bond proceedings;
(A-1) an authority's payment obligations under a
contract or agreement authorized by this chapter;
(B) coverage requirements of a bond indenture for
a transportation project;
(C) costs of operation and maintenance for a
transportation project;
(D) cost of repair, expansion, or improvement of
a transportation project;
(E) funds allocated for feasibility studies; and
(F) necessary reserves as determined by the
authority.
(14) "Transportation project" means:
(A) a turnpike project;
(B) a system;
(C) a passenger or freight rail facility,
including:
(i) tracks;
(ii) a rail line;
(iii) switching, signaling, or other
operating equipment;
(iv) a depot;
(v) a locomotive;
(vi) rolling stock;
(vii) a maintenance facility; and
(viii) other real and personal property
associated with a rail operation;
(D) a roadway with a functional classification
greater than a local road or rural minor collector;
(E) a ferry;
(F) an airport, other than an airport that on
September 1, 2005, was served by one or more air carriers engaged in
scheduled interstate transportation, as those terms were defined by
14 C.F.R. Section 1.1 on that date;
(G) a pedestrian or bicycle facility;
(H) an intermodal [intermodel] hub;
(I) an automated conveyor belt for the movement
of freight;
(J) a border crossing inspection station;
(K) an air quality improvement initiative;
(L) a public utility facility;
(M) a transit system;
(M-1) a parking area, structure, or facility, or
a collection device for parking fees; [and]
(N) if applicable, projects and programs listed
in the most recently approved state implementation plan for the
area covered by the authority, including an early action compact;
and
(O) improvements in a transportation
reinvestment zone designated under Subchapter E, Chapter 222.
SECTION 2. Section 370.004(a), Transportation Code, is
amended to read as follows:
(a) The cost of acquisition, construction, improvement,
extension, or expansion of a transportation project under this
chapter includes the cost of:
(1) the actual acquisition, construction,
improvement, extension, or expansion of the transportation
project;
(2) the acquisition of real property, rights-of-way,
property rights, easements, and other interests in real property;
(3) machinery and equipment;
(4) interest payable before, during, and for not more
than three years after acquisition, construction, improvement,
extension, or expansion as provided in the bond proceedings;
(5) traffic estimates, revenue estimates, engineering
and legal services, plans, specifications, surveys, appraisals,
construction cost estimates, and other expenses necessary or
incidental to determining the feasibility of the acquisition,
construction, improvement, extension, or expansion;
(6) necessary or incidental administrative, legal,
and other expenses;
(7) compliance with laws, regulations, and
administrative rulings, including any costs associated with
necessary environmental mitigation measures;
(8) financing;
(9) the assumption of debts, obligations, and
liabilities of an entity relating to a transportation project
transferred to an authority by that entity; [and]
(10) expenses related to the initial operation of the
transportation project; and
(11) payment obligations of an authority under a
contract or agreement authorized by this chapter in connection with
the acquisition, construction, improvement, extension, expansion,
or financing of the transportation project.
SECTION 3. Sections 370.033(a), (f), and (g),
Transportation Code, are amended to read as follows:
(a) An authority, through its board, may:
(1) adopt rules for the regulation of its affairs and
the conduct of its business;
(2) adopt an official seal;
(3) study, evaluate, design, finance, acquire,
construct, maintain, repair, and operate transportation projects,
individually or as one or more systems, provided that a
transportation project that is subject to Subpart C, 23 C.F.R. Part
450, is:
(A) included in the plan approved by the
applicable metropolitan planning organization; and
(B) consistent with the statewide transportation
plan and the statewide transportation improvement program;
(4) acquire, hold, and dispose of property in the
exercise of its powers and the performance of its duties under this
chapter;
(5) enter into contracts or operating agreements with
a similar authority, another governmental entity, or an agency of
the United States, a state of the United States, the United Mexican
States, or a state of the United Mexican States;
(6) enter into contracts or agreements necessary or
incidental to its powers and duties under this chapter;
(7) cooperate and work directly with property owners
and governmental entities and officials to support an activity
required to promote or develop a transportation project;
(8) employ and set the compensation and benefits of
administrators, consulting engineers, attorneys, accountants,
construction and financial experts, superintendents, managers,
full-time and part-time employees, agents, consultants, and other
persons as the authority considers necessary or useful;
(8-a) participate in the state travel management
program administered by the comptroller for the purpose of
obtaining reduced airline fares and reduced travel agent fees,
provided that the comptroller may charge the authority a fee not to
exceed the costs incurred by the comptroller in providing services
to the authority;
(9) notwithstanding Sections 221.003 and 222.031 and
subject to Subsections (j) and (m), apply for, directly or
indirectly receive and spend loans, gifts, grants, and other
contributions for any purpose of this chapter, including the
construction of a transportation project, and receive and spend
contributions of money, property, labor, or other things of value
from any source, including the United States, a state of the United
States, the United Mexican States, a state of the United Mexican
States, the commission, the department, a subdivision of this
state, or a governmental entity or private entity, to be used for
the purposes for which the grants, loans, or contributions are
made, and enter into any agreement necessary for the grants, loans,
or contributions;
(10) install, construct, or contract for the
construction of public utility facilities, direct the time and
manner of construction of a public utility facility in, on, along,
over, or under a transportation project, or request the removal or
relocation of a public utility facility in, on, along, over, or
under a transportation project;
(11) organize a corporation under Chapter 431 for the
promotion and development of transportation projects;
(12) adopt and enforce rules not inconsistent with
this chapter for the use of any transportation project, including
tolls, fares, or other user fees, speed and weight limits, and
traffic and other public safety rules, provided that an authority
must consider the same factors that the Texas Turnpike Authority
division of the department must consider in altering a prima facie
speed limit under Section 545.354;
(13) enter into leases, operating agreements, service
agreements, licenses, franchises, and similar agreements with a
public or private party governing the party's use of all or any
portion of a transportation project and the rights and obligations
of the authority with respect to a transportation project;
(14) borrow money from or enter into a loan agreement
or other arrangement with the state infrastructure bank, the
department, the commission, or any other public or private entity;
and
(15) do all things necessary or appropriate to carry
out the powers and duties expressly granted or imposed by this
chapter.
(f) An authority and a governmental entity may enter into a
contract, agreement, interlocal agreement, or other similar
arrangement under which the authority may plan, design, construct,
or operate a transportation project on behalf of the governmental
entity. An authority may enter into a contract or agreement with
the department under which the authority will plan, develop,
operate, or maintain a transportation project on behalf of the
department, subject to the transportation project being in the
authority's area of jurisdiction. A contract or agreement under
this subsection may contain terms and conditions as may be approved
by an authority, including payment obligations of the governmental
entity and the authority.
(g) Payments to be made to an authority under a contract or
agreement described by Subsection (f) constitute operating
expenses of the transportation project or system that is to be
operated under the contract or agreement. The contract or
agreement may extend for the number of years as agreed to by the
parties.
SECTION 4. Sections 370.071(a) and (b), Transportation
Code, are amended to read as follows:
(a) An authority may pay the expenses of studying the cost
and feasibility of a transportation project, the design and
engineering of a transportation project, and any other expenses
relating to the preparation and issuance of bonds for a proposed
transportation project by:
(1) using legally available revenue derived from an
existing transportation project;
(2) borrowing money and issuing bonds or entering into
a loan agreement payable out of legally available revenue
anticipated to be derived from the operation of an existing
transportation project; [or]
(3) pledging to the payment of the bonds or a loan
agreement legally available revenue anticipated to be derived from
the operation of transportation projects or revenue legally
available to the authority from another source; or
(4) pledging to the payment of the bonds or a loan
agreement the proceeds from the sale of other bonds.
(b) Money spent under this section for a proposed
transportation project must be reimbursed to the transportation
project from which the money was spent from the proceeds of bonds
issued for the acquisition and construction of the proposed
transportation project, unless the transportation projects are or
become part of a system under Section 370.034.
SECTION 5. Section 370.072(c), Transportation Code, is
amended to read as follows:
(c) Money in the feasibility study fund may be used only to
pay the expenses of studying the cost and feasibility of a
transportation project, the design and engineering of a
transportation project, and any other expenses relating to:
(1) the preparation and issuance of bonds for the
acquisition and construction of a proposed transportation project;
(2) the financing of the improvement, extension, or
expansion of an existing transportation project; and
(3) private participation, as authorized by law, in
the financing of a proposed transportation project, the refinancing
of an existing transportation project or system, or the
improvement, extension, or expansion of a transportation project.
SECTION 6. Section 370.073(a), Transportation Code, is
amended to read as follows:
(a) One or more municipalities, counties, or other
governmental entities, a combination of municipalities, counties,
and other governmental entities, or a private group or combination
of individuals in this state may pay all or part of the expenses of
studying the cost and feasibility of a transportation project, the
design and engineering of a transportation project, and any other
expenses relating to:
(1) the preparation and issuance of bonds for the
acquisition or construction of a proposed transportation project by
an authority;
(2) the improvement, extension, or expansion of an
existing transportation project of the authority; or
(3) the use of private participation under applicable
law in connection with the acquisition, construction, improvement,
expansion, extension, maintenance, repair, or operation of a
transportation project by an authority.
SECTION 7. Section 370.113(a), Transportation Code, is
amended to read as follows:
(a) The principal of, interest on, and any redemption
premium on bonds issued by an authority are payable solely from:
(1) the revenue of the transportation project for
which the bonds are issued;
(2) payments made under an agreement with the
commission, the department, or other governmental entity as
authorized [provided] by this chapter [Subchapter G];
(3) money derived from any other source available to
the authority, other than money derived from a transportation
project that is not part of the same system or money derived from a
different system, except to the extent that the surplus revenue of a
transportation project or system has been pledged for that purpose;
[and]
(4) amounts received under a credit agreement relating
to the transportation project for which the bonds are issued; and
(5) the proceeds of the sale of other bonds.
SECTION 8. Section 370.114, Transportation Code, is amended
to read as follows:
Sec. 370.114. EFFECT OF LIEN. (a) A lien on or a pledge of
revenue from a transportation project under this chapter or on a
reserve, replacement, or other fund established in connection with
a bond issued under this chapter or a contract or agreement entered
into under this chapter:
(1) is enforceable at the time of payment for and
delivery of the bond or on the effective date of the contract or
agreement;
(2) applies to each item on hand or subsequently
received;
(3) applies without physical delivery of an item or
other act; and
(4) is enforceable against any person having a claim,
in tort, contract, or other remedy, against the applicable
authority without regard to whether the person has notice of the
lien or pledge.
(b) A copy of any bond resolution shall [is not required to]
be maintained [recorded except] in the regular records of the
authority.
SECTION 9. Section 370.172, Transportation Code, is amended
by amending Subsection (b) and adding Subsection (k) to read as
follows:
(b) Tolls, fees, fares, or other charges must be set at
rates or amounts so that the aggregate of tolls, fees, fares, or
other charges from an authority's transportation project, together
with other revenue of the transportation project:
(1) provides revenue sufficient to pay:
(A) the cost of maintaining, repairing, and
operating the transportation project; [and]
(B) the principal of and interest on any bonds
issued for the transportation project as those bonds become due and
payable; and
(C) any other payment obligations of an authority
under a contract or agreement authorized under this chapter; and
(2) creates reserves for a purpose listed under
Subdivision (1).
(k) Notwithstanding any other provision of this chapter, an
authority may pledge all or any part of its revenues and any other
funds available to the authority to the payment of any obligations
of the authority under a contract or agreement authorized by this
chapter.
SECTION 10. Section 370.173(c), Transportation Code, is
amended to read as follows:
(c) The authority may use money in the revolving fund to:
(1) finance the acquisition, construction,
maintenance, or operation of a transportation project, including
the extension, expansion, or improvement of a transportation
project;
(2) provide matching money required in connection with
any federal, state, local, or private aid, grant, or other funding,
including aid or funding by or with public-private partnerships;
(3) provide credit enhancement either directly or
indirectly for bonds issued to acquire, construct, extend, expand,
or improve a transportation project;
(4) provide security for or payment of future or
existing debt for the design, acquisition, construction,
operation, maintenance, extension, expansion, or improvement of a
transportation project or system;
(5) borrow money and issue bonds, promissory notes, or
other indebtedness payable out of the revolving fund for any
purpose authorized by this chapter; and
(6) provide for any other reasonable purpose that
assists in the financing of an authority as authorized by this
chapter.
SECTION 11. Section 370.177, Transportation Code, is
amended by adding Subsection (l) to read as follows:
(l) In addition to the other powers and duties provided by
this chapter, with regard to its toll collection and enforcement
powers for its turnpike projects or other toll projects developed,
financed, constructed, and operated under an agreement with the
authority or another entity, an authority has the same powers and
duties as the department under Chapter 228, a county under Chapter
284, and a regional tollway authority under Chapter 366.
SECTION 12. Sections 370.251(a) and (b), Transportation
Code, are amended to read as follows:
(a) Except as provided by Subsection (a-1), the governing
body of an authority is a board of directors consisting of
representatives of each county in which a transportation project of
the authority is located or is proposed to be located. The
commissioners court of each county that initially forms the
authority shall appoint at least two directors to the board.
Additional directors may be appointed to the board at the time of
initial formation by agreement of the counties creating the
authority to ensure fair representation of political subdivisions
in the counties of the authority that will be affected by a
transportation project of the authority, provided that the number
of directors must be an odd number. The commissioners court of a
county that is subsequently added to the authority shall appoint at
least one director to the board. The governor shall appoint one
director to the board who shall serve as the presiding officer of
the board and shall appoint an additional director to the board if
an appointment is necessary to maintain an odd number of directors
on the board.
(b) The appointment [Unless the commissioners courts] of
additional directors from a county subsequently added to an [the
counties of the] authority or from a [unanimously agree otherwise,
the commissioners court of each] county of an authority that
contains an operating transportation project of the authority shall
be by a process unanimously agreed to by the commissioners courts of
all the counties of the authority [appoint one additional
director].
SECTION 13. Subchapter F, Chapter 370, Transportation Code,
is amended by adding Section 370.2511 to read as follows:
Sec. 370.2511. BOARD OF DIRECTORS: CERTAIN AUTHORITIES.
(a) This section applies only to an authority created by a
municipality.
(b) The governing body of a municipality by order may
establish the governing body as the board of directors of an
authority.
(c) If the board of directors of an authority created by a
municipality consists of the members of the governing body of the
municipality, the presiding officers of the governing body of the
municipality are the presiding officers of the board.
(d) Each director of a board under this section has equal
status and may vote.
(e) The vote of a majority attending a board meeting is
necessary for any action taken by a board under this section. If a
vacancy exists on a board, the majority of directors serving on the
board is a quorum.
(f) The governing body of a municipality that becomes the
board of an existing authority under this section shall by
resolution provide for the transfer process that establishes the
governing body as the board of the authority.
(g) If the board of directors of an authority created by a
municipality consists of the members of the governing body of the
municipality, Sections 370.251, 370.2515, 370.252, 370.2521,
370.2522, 370.2523, 370.253, 370.254, and 370.255 do not apply to
the board.
SECTION 14. Section 370.303, Transportation Code, is
amended by amending Subsections (a) and (b) and adding Subsections
(b-1) and (g) to read as follows:
(a) A governmental entity [other than a nonprofit
corporation] may, consistent with the Texas Constitution, issue
bonds, notes, or other obligations or enter into and make payments
under agreements with an authority in connection with the
financing, acquisition, construction, [to acquire, construct,
maintain,] or operation of [operate] a transportation project by an
authority, whether inside or outside the geographic boundaries of
the governmental entity, including agreements to pay the principal
of, and interest on, bonds, notes, or other obligations issued by
the authority and make payments under any related credit
agreements. The entity may impose and collect taxes to pay the
interest on the bonds and to provide a sinking fund for the
redemption of the bonds.
(b) In addition to the powers provided by Subsection (a), a
governmental entity may, to the extent constitutionally permitted,
agree with an authority to:
(1) issue bonds, notes, or other obligations;
(2) [,] create:
(A) a taxing district;
(B) a transportation reinvestment zone under
Subchapter E, Chapter 222; or
(C) an entity to promote economic development;
(3) collect and remit to an authority taxes, fees, or
assessments collected for purposes of developing transportation
projects;
(4) [,] fund public improvements to promote economic
development;[,] or
(5) enter into and make payments under an agreement to
acquire, construct, maintain, or operate any portion of a
transportation project of the authority.
(b-1) An agreement under Subsection (b) may include a means
for a local governmental entity to pledge or otherwise provide
funds for a transportation project that benefits the governmental
entity to be developed by the authority.
(g) An agreement under this section may contain repayment or
reimbursement obligations of an authority.
SECTION 15. Section 370.304, Transportation Code, is
amended to read as follows:
Sec. 370.304. ADDITIONAL AGREEMENTS OF AUTHORITY. An
authority may enter into any contract, loan agreement, or other
agreement necessary or convenient to achieve the purposes of this
subchapter.
SECTION 16. Section 370.317(d), Transportation Code, is
repealed.
SECTION 17. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2011.