Texas 2011 - 82nd Regular

Texas Senate Bill SB1422 Compare Versions

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1	1	82R20783 NAJ-D
2	2	By: Nelson, et al. S.B. No. 1422
3	3	(Solomons)
4	4	Substitute the following for S.B. No. 1422: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to coordinated county transportation authorities;
10	10	creating an offense.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 460.106(d), Transportation Code, is
13	13	amended to read as follows:
14	14	(d) Except as provided by Subchapter I, a [A] service plan
15	15	may be implemented in an area of the county participating in the
16	16	authority only if a majority of votes received favor the
17	17	authorization of a tax levy by the authority.
18	18	SECTION 2. Subchapter C, Chapter 460, Transportation Code,
19	19	is amended by adding Sections 460.1091 and 460.1092 to read as
20	20	follows:
21	21	Sec. 460.1091. ENFORCEMENT OF FARES AND OTHER CHARGES;
22	22	PENALTIES. (a) A board of directors by resolution may prohibit the
23	23	use of the public transportation system by a person without payment
24	24	of the appropriate fare for the use of the system and may establish
25	25	reasonable and appropriate methods to ensure that persons using the
26	26	public transportation system pay the appropriate fare for that use.
27	27	(b) A board of directors by resolution may provide that a
28	28	fare for or charge for the use of the public transportation system
29	29	that is not paid incurs a reasonable administrative fee.
30	30	(c) An authority shall post signs designating each area in
31	31	which a person is prohibited from using the transportation system
32	32	without payment of the appropriate fare.
33	33	(d) A person commits an offense if the person or another for
34	34	whom the person is criminally responsible under Section 7.02, Penal
35	35	Code, uses the public transportation system without paying the
36	36	appropriate fare.
37	37	(e) If the person fails to provide proof that the person
38	38	paid the appropriate fare for the use of the public transportation
39	39	system and fails to pay any administrative fee assessed under
40	40	Subsection (b) on or before the 30th day after the date the
41	41	authority notifies the person that the person is required to pay the
42	42	amount of the fare and the administrative fee, it is prima facie
43	43	evidence that the person used the public transportation system
44	44	without paying the appropriate fare.
45	45	(f) The notice required by Subsection (e) may be included in
46	46	a citation issued to the person by a peace officer under Article
47	47	14.06, Code of Criminal Procedure, or by a fare enforcement officer
48	48	under Section 460.1092, in connection with an offense relating to
49	49	the nonpayment of the appropriate fare for the use of the public
50	50	transportation system.
51	51	(g) It is an exception to the application of Subsection (d)
52	52	that on or before the 30th day after the date the authority notified
53	53	the person that the person is required to pay the amount of the fare
54	54	and any administrative fee assessed under Subsection (b), the
55	55	person:
56	56	(1) provided proof that the person paid the
57	57	appropriate fare at the time the person used the transportation
58	58	system or at a later date or that the person was exempt from
59	59	payment; and
60	60	(2) paid the administrative fee assessed under
61	61	Subsection (b), if applicable.
62	62	(h) An offense under Subsection (d) is:
63	63	(1) a misdemeanor punishable by a fine not to exceed
64	64	$100; and
65	65	(2) not a crime of moral turpitude.
66	66	(i) A justice court located in the service area of the
67	67	authority may enter into an agreement with the authority to try all
68	68	criminal cases that arise under Subsection (d). Notwithstanding
69	69	Articles 4.12 and 4.14, Code of Criminal Procedure, if a justice
70	70	court enters into an agreement with the authority:
71	71	(1) a criminal case that arises under Subsection (d)
72	72	must be tried in the justice court; and
73	73	(2) the justice court has exclusive jurisdiction in
74	74	all criminal cases that arise under Subsection (d).
75	75	Sec. 460.1092. FARE ENFORCEMENT OFFICERS. (a) An
76	76	authority may employ persons to serve as fare enforcement officers
77	77	to enforce the payment of fares for use of the public transportation
78	78	system by:
79	79	(1) requesting and inspecting evidence showing
80	80	payment of the appropriate fare from a person using the public
81	81	transportation system; and
82	82	(2) issuing a citation to a person described by
83	83	Section 460.1091(d).
84	84	(b) Before commencing duties as a fare enforcement officer,
85	85	a person must complete at least eight hours of training approved by
86	86	the authority that is appropriate to the duties required of a fare
87	87	enforcement officer.
88	88	(c) While performing duties, a fare enforcement officer
89	89	shall:
90	90	(1) wear a distinctive uniform, badge, or insignia
91	91	that identifies the person as a fare enforcement officer; and
92	92	(2) work under the direction of the authority's chief
93	93	administrative officer.
94	94	(d) A fare enforcement officer may:
95	95	(1) request evidence showing payment of the
96	96	appropriate fare from passengers of the public transportation
97	97	system or evidence showing exemption from the payment requirement;
98	98	(2) request personal identification or other
99	99	documentation designated by the authority from a passenger who does
100	100	not produce evidence showing payment of the appropriate fare on
101	101	request by the officer;
102	102	(3) instruct a passenger to immediately leave the
103	103	public transportation system if the passenger does not possess
104	104	evidence showing payment or exemption from payment of the
105	105	appropriate fare; or
106	106	(4) file a complaint in the appropriate court that
107	107	charges the person with an offense under Section 460.1091(d).
108	108	(e) A fare enforcement officer may not carry a weapon while
109	109	performing duties under this section unless the officer is a
110	110	certified peace officer.
111	111	(f) A fare enforcement officer who is not a certified peace
112	112	officer is not a peace officer and has no authority to enforce a
113	113	criminal law, except as provided by this section.
114	114	SECTION 3. Section 460.406(c), Transportation Code, is
115	115	amended to read as follows:
116	116	(c) The board of directors may authorize the negotiation of
117	117	a contract without competitive sealed bids or proposals if:
118	118	(1) the aggregate amount involved in the contract is
119	119	$50,000 [$25,000] or less;
120	120	(2) the contract is for construction for which not
121	121	more than one bid or proposal is received;
122	122	(3) the contract is for services or property for which
123	123	there is only one source or for which it is otherwise impracticable
124	124	to obtain competition;
125	125	(4) the contract is to respond to an emergency for
126	126	which the public exigency does not permit the delay incident to the
127	127	competitive process;
128	128	(5) the contract is for personal or professional
129	129	services or services for which competitive bidding is precluded by
130	130	law;
131	131	(6) the contract, without regard to form and which may
132	132	include bonds, notes, loan agreements, or other obligations, is for
133	133	the purpose of borrowing money or is a part of a transaction
134	134	relating to the borrowing of money, including:
135	135	(A) a credit support agreement, such as a line or
136	136	letter of credit or other debt guaranty;
137	137	(B) a bond, note, debt sale or purchase, trustee,
138	138	paying agent, remarketing agent, indexing agent, or similar
139	139	agreement;
140	140	(C) an agreement with a securities dealer,
141	141	broker, or underwriter; and
142	142	(D) any other contract or agreement considered by
143	143	the board of directors to be appropriate or necessary in support of
144	144	the authority's financing activities;
145	145	(7) the contract is for work that is performed and paid
146	146	for by the day as the work progresses;
147	147	(8) the contract is for the purchase of land or a
148	148	right-of-way;
149	149	(9) the contract is for the purchase of personal
150	150	property sold:
151	151	(A) at an auction by a state licensed auctioneer;
152	152	(B) at a going out of business sale held in
153	153	compliance with Subchapter F, Chapter 17, Business & Commerce Code;
154	154	or
155	155	(C) by a political subdivision of this state, a
156	156	state agency, or an entity of the federal government;
157	157	(10) the contract is for services performed by blind
158	158	or severely disabled persons;
159	159	(11) the contract is for the purchase of electricity;
160	160	or
161	161	(12) the contract is one awarded for alternate project
162	162	delivery under Sections 271.117-271.119, Local Government Code.
163	163	SECTION 4. Chapter 460, Transportation Code, is amended by
164	164	adding Subchapter I to read as follows:
165	165	SUBCHAPTER I. PARTICIPATION IN AUTHORITY THROUGH TAX INCREMENT
166	166	PAYMENTS
167	167	Sec. 460.601. DEFINITION. In this subchapter, "tax
168	168	increment" means the amount of revenue generated from ad valorem
169	169	taxes, sales and use taxes imposed by a municipality under Section
170	170	321.101(a), Tax Code, or both ad valorem and sales and use taxes
171	171	that are attributable to a public transportation financing area
172	172	designated under this subchapter that exceeds the amount
173	173	attributable to the area for the year in which the area was
174	174	designated.
175	175	Sec. 460.602. PARTICIPATION IN SERVICE PLAN; AGREEMENT WITH
176	176	MUNICIPALITY. A service plan may be implemented in an area of a
177	177	municipality that has not authorized the authority's sales and use
178	178	tax levy if:
179	179	(1) the authorization by the municipality of the
180	180	authority's sales and use tax levy, when combined with the rates of
181	181	all sales and use taxes imposed by other political subdivisions in
182	182	the municipality, would exceed two percent in any location in the
183	183	municipality; and
184	184	(2) the municipality has entered into an agreement
185	185	with the authority to provide public transportation services in a
186	186	public transportation financing area designated under this
187	187	subchapter in exchange for all or a portion of the tax increment in
188	188	the area.
189	189	Sec. 460.603. DESIGNATION OF PUBLIC TRANSPORTATION
190	190	FINANCING AREA. The governing body of a municipality by ordinance
191	191	may designate a contiguous geographic area in the jurisdiction of
192	192	the municipality to be a public transportation financing area. The
193	193	geographic area:
194	194	(1) must have one or more transit facilities that
195	195	include a structure provided for or on behalf of the authority for
196	196	embarkation on and disembarkation from public transportation
197	197	services provided by the authority, which may include a transit
198	198	stop, transit shelter, transit garage, or transit terminal;
199	199	(2) may include any territory located in the
200	200	municipality's jurisdiction; and
201	201	(3) must include an area one-half mile on either side
202	202	of the proposed service route served by a structure under
203	203	Subdivision (1), to the extent that that area is included in the
204	204	municipality's boundaries.
205	205	Sec. 460.604. HEARING. (a) Before adopting an ordinance
206	206	designating a public transportation financing area, the
207	207	municipality must hold a public hearing on the creation of the
208	208	public transportation financing area and its benefits to the
209	209	municipality and to property in the proposed public transportation
210	210	financing area. At the hearing, an interested person may speak for
211	211	or against the designation of the public transportation financing
212	212	area.
213	213	(b) Not later than the 30th day before the date of the
214	214	hearing, notice of the hearing must be published in a newspaper
215	215	having general circulation in the municipality.
216	216	Sec. 460.605. DESIGNATION OF TAX INCREMENT. (a) In the
217	217	ordinance designating an area as a public transportation financing
218	218	area, the municipality must:
219	219	(1) designate a portion or amount of the tax increment
220	220	to be paid to the authority and deposited in the tax increment
221	221	account under Section 460.606; and
222	222	(2) state whether the tax increment will be generated
223	223	from ad valorem tax revenue, sales and use tax revenue, or both.
224	224	(b) The amount designated for payment and deposit may not
225	225	exceed the equivalent of the amount that would be collected by the
226	226	authority if the municipality had authorized the authority's sales
227	227	and use tax levy.
228	228	(c) Notwithstanding Subsection (b), if the amount
229	229	designated under Subsection (b) is not sufficient to compensate the
230	230	authority for the maintenance and operating expenses of providing
231	231	service to the public transportation financing area and for any
232	232	capital cost incurred for the benefit of the public transportation
233	233	financing area, the authority may request and the municipality
234	234	shall designate that the entire portion or amount of the tax
235	235	increment be deposited in the tax increment account, regardless of
236	236	whether that amount exceeds the authority's sales and use tax levy
237	237	equivalent, until any amounts owed for all previous years'
238	238	maintenance and operating expenses and for any capital cost
239	239	incurred for the benefit of the public transportation financing
240	240	area have been paid.
241	241	Sec. 460.606. TAX INCREMENT ACCOUNT; USE OF TAXES. (a) An
242	242	authority that enters into an agreement with a municipality to
243	243	provide services to a public transportation financing area must
244	244	establish a tax increment account and maintain the account as a
245	245	fiduciary of the municipality.
246	246	(b) The taxes to be deposited into the tax increment account
247	247	may be disbursed from the account only to:
248	248	(1) compensate the authority for maintenance and
249	249	operating expenses of providing services to the public
250	250	transportation financing area, including compensation for
251	251	expansion, improvement, rehabilitation, or enhancement amounts
252	252	owed for previous years' maintenance and operating expenses for the
253	253	public transportation financing area;
254	254	(2) compensate the authority for any capital cost
255	255	incurred for the benefit of the public transportation financing
256	256	area;
257	257	(3) notwithstanding Section 321.506, Tax Code,
258	258	satisfy claims of holders of tax increment bonds, notes, or other
259	259	obligations issued or incurred for projects or services that
260	260	directly or indirectly benefit the public transportation financing
261	261	area through the expansion, improvement, rehabilitation, or
262	262	enhancement of transportation service by the authority under the
263	263	service plan; and
264	264	(4) pay any capital recovery fee required by the
265	265	authority.
266	266	Sec. 460.607. AGREEMENT WITH COMPTROLLER. Before pledging
267	267	or otherwise committing money in the tax increment account under
268	268	Section 460.606, the governing body of a municipality must enter
269	269	into an agreement under Subchapter E, Chapter 271, Local Government
270	270	Code, to authorize and direct the comptroller to:
271	271	(1) withhold from any payment to which the
272	272	municipality may be entitled the amount of the payment due to the
273	273	tax increment account;
274	274	(2) deposit that amount into the tax increment
275	275	account; and
276	276	(3) continue withholding and making additional
277	277	payments into the tax increment account until an amount sufficient
278	278	to satisfy the amount due to the account has been met.
279	279	Sec. 460.608. ACCOUNTING OF MAINTENANCE AND OPERATING
280	280	EXPENSES. An authority shall, under an agreement under Section
281	281	460.602:
282	282	(1) provide to the municipality an annual accounting,
283	283	with supporting documentation, of the annual maintenance and
284	284	operating expenses of providing service to the public
285	285	transportation financing area; and
286	286	(2) notify the municipality when amounts owed for all
287	287	previous years' maintenance and operating expenses and for any
288	288	capital cost incurred for the benefit of the public transportation
289	289	financing area have been fully paid.
290	290	Sec. 460.609. CAPITAL RECOVERY FEE. An agreement to
291	291	provide services to a public transportation financing area may
292	292	require the municipality to pay the authority a capital recovery
293	293	fee. An authority that requires a capital recovery fee shall:
294	294	(1) apply toward the amount owed for the capital
295	295	recovery fee any amount in the tax increment account that exceeds
296	296	the amount necessary to compensate the authority for:
297	297	(A) the annual maintenance and operating
298	298	expenses of providing service to the public transportation
299	299	financing area, including amounts for expansion, improvement,
300	300	rehabilitation, or enhancement that may be owed for previous years'
301	301	maintenance and operating expenses; and
302	302	(B) any capital cost incurred for the benefit of
303	303	the public transportation financing area; and
304	304	(2) notify the municipality when the amount owed for
305	305	the capital recovery fee has been fully paid.
306	306	Sec. 460.610. USE OF SURPLUS TAX INCREMENT PAYMENT AMOUNTS.
307	307	After any applicable capital recovery fee has been paid, the
308	308	authority and the municipality shall negotiate to determine use of
309	309	the amount of tax increment payments that exceeds the amount
310	310	necessary to compensate the authority for the annual maintenance
311	311	and operating expenses of providing service to the public
312	312	transportation financing area. The excess amounts may be used to
313	313	develop infrastructure enhancement, replacement, or improvement
314	314	projects in the public transportation financing area that benefit
315	315	both the municipality and the authority.
316	316	Sec. 460.611. TERMINATION OF PUBLIC TRANSPORTATION
317	317	FINANCING AREA. If the tax increment is pledged to the payment of
318	318	bonds and interest on the bonds or to the payment of any other
319	319	obligations, the public transportation financing area or an
320	320	agreement for services under Section 460.602 may not be terminated
321	321	by agreement of the parties unless the municipality that created
322	322	the public transportation financing area deposits or causes to be
323	323	deposited with a trustee or other escrow agent authorized by law
324	324	funds in an amount that, together with the interest on the
325	325	investment of the funds in direct obligations of the United States,
326	326	will be sufficient to pay:
327	327	(1) the principal of, premium, if any, and interest on
328	328	all bonds issued on behalf of the public transportation financing
329	329	area at maturity or at the date fixed for redemption of the bonds;
330	330	and
331	331	(2) any other amounts that may become due, including
332	332	compensation due or to become due to the trustee or escrow agent, as
333	333	well as to pay the principal of and interest on any other
334	334	obligations incurred on behalf of the public transportation
335	335	financing area.
336	336	SECTION 5. This Act takes effect September 1, 2011.