By: Williams S.B. No. 1578 (Deshotel) A BILL TO BE ENTITLED AN ACT relating to the addition of a county to a freight rail district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Subchapter B, Chapter 171, Transportation Code, is amended to read as follows: SUBCHAPTER B. CREATION; ADDITION OF COUNTY TO DISTRICT SECTION 2. Section 171.054, Transportation Code, is amended to read as follows: Sec. 171.054. DISTRICT TERRITORY. The district consists of the territory of: (1) each county that created the district; (2) each county added to the district under Section 171.055; and (3) the territory of the most populous municipality in the most populous county if that municipality's territory is located in more than one county. SECTION 3. Subchapter B, Chapter 171, Transportation Code, is amended by adding Section 171.055 to read as follows: Sec. 171.055. ADDITION OF COUNTY TO DISTRICT. (a) A county may be added to a district if: (1) the county is adjacent to a county with a population of 3.3 million or more that created the district; or (2) the county: (A) is adjacent to a county that is added to the district under Subdivision (1); and (B) contains a navigation district. (b) The following governing bodies must by joint resolution approve the addition of the county to the district: (1) the commissioners court of the county to be added to the district; (2) the commissioners court of each county in the district; and (3) the governing body of the most populous municipality in the most populous county in the district. (c) The resolution must include the number of directors the new county will have on the board. (d) On adoption of the resolution by each commissioners court and the governing body of the municipality, the county is added to the district. SECTION 4. Section 171.101, Transportation Code, is amended to read as follows: Sec. 171.101. COMPOSITION OF BOARD; PRESIDING OFFICER. (a) The board consists of directors, including a presiding officer, as provided in the order or ordinance creating the district under Section 171.052(b). (b) The board shall add directors for each county added to the district as provided in the joint resolution adding the county under Section 171.055. SECTION 5. Section 171.152, Transportation Code, is amended to read as follows: Sec. 171.152. GENERAL CONTRACT POWERS. A district may contract with any person, including: (1) a county or municipality, including a county or municipality that is a member of [created] the district; (2) this state or any political subdivision of this state; (3) the United States; or (4) a railroad. SECTION 6. Subsection (a), Section 171.301, Transportation Code, is amended to read as follows: (a) A county or municipality that is a member of [created] the district may petition the board for approval to withdraw from the district. The board may approve the petition only if: (1) the district has no outstanding bonds; or (2) the district has debt other than bonds and the board finds that the withdrawal of the county or municipality will not materially affect the ability of the district to repay the debt. SECTION 7. 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.