Texas 2013 - 83rd Regular

Texas House Bill HB2423 Compare Versions

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1	1	83R23360 MTB-D
2	2	By: Martinez H.B. No. 2423
3	3	Substitute the following for H.B. No. 2423:
4	4	By: Lucio III C.S.H.B. No. 2423
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of regional transit authorities; granting
10	10	the power of eminent domain; providing authority to issue bonds.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle K, Title 6, Transportation Code, is
13	13	amended by adding Chapter 463 to read as follows:
14	14	CHAPTER 463. REGIONAL TRANSIT AUTHORITIES
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 463.001. DEFINITIONS. In this chapter:
17	17	(1) "Authority" means a regional transit authority
18	18	created under this chapter.
19	19	(2) "Executive committee" means the authority
20	20	directors who serve as the governing body of the authority.
21	21	(3) "Light rail mass transit system" means a system
22	22	that:
23	23	(A) uses a fixed guideway rail with electric
24	24	power propelling mass transit passenger vehicles; and
25	25	(B) is constructed by an authority.
26	26	(4) "Public transportation system" means:
27	27	(A) all property owned or held by an authority
28	28	for public transportation service purposes;
29	29	(B) real property, facilities, and equipment for
30	30	the protection and environmental enhancement of all the facilities;
31	31	and
32	32	(C) property held:
33	33	(i) in accordance with a contract with the
34	34	owner making the property subject to the control of or regulation by
35	35	the authority; and
36	36	(ii) for public transportation service
37	37	purposes.
38	38	(5) "Service plan" means an outline of the service
39	39	that would be provided by the authority to counties if confirmed at
40	40	an election.
41	41	Sec. 463.002. APPLICATION. This chapter applies to:
42	42	(1) a county that is contiguous to the Gulf of Mexico
43	43	or a bay or inlet opening into the gulf and that borders the United
44	44	Mexican States; and
45	45	(2) a county that borders a county described by
46	46	Subdivision (1).
47	47	Sec. 463.003. MUNICIPALITIES MAY PROVIDE TRANSPORTATION
48	48	SERVICES. This chapter does not prohibit a municipality from
49	49	providing public transportation services within its boundaries. An
50	50	authority may coordinate the provision of services with the
51	51	municipality and include the services provided by the municipality
52	52	in the authority's service plan.
53	53	SUBCHAPTER B. POWERS OF AUTHORITIES
54	54	Sec. 463.051. POWERS APPLICABLE TO CONFIRMED AUTHORITY.
55	55	This subchapter applies only to an authority that has been
56	56	confirmed.
57	57	Sec. 463.052. NATURE OF AUTHORITY. (a) An authority:
58	58	(1) is a public political entity and corporate body;
59	59	(2) has perpetual succession; and
60	60	(3) exercises public and essential governmental
61	61	functions.
62	62	(b) The exercise of a power granted by this chapter,
63	63	including a power relating to a station or terminal complex, is for
64	64	a public purpose and is a matter of public necessity.
65	65	(c) An authority is a governmental unit under Chapter 101,
66	66	Civil Practice and Remedies Code, and the operations of the
67	67	authority are not proprietary functions for any purpose including
68	68	the application of Chapter 101, Civil Practice and Remedies Code.
69	69	Sec. 463.053. RESPONSIBILITY FOR CONTROL OF AUTHORITY.
70	70	Except as provided by Section 463.104, the executive committee is
71	71	responsible for the management, operation, and control of an
72	72	authority and its property.
73	73	Sec. 463.054. GENERAL POWERS OF AUTHORITY. (a) An
74	74	authority has any power necessary or convenient to carry out this
75	75	chapter or to effect a purpose of this chapter.
76	76	(b) An authority may sue and be sued. An authority may not
77	77	be required to give security for costs in a suit brought or
78	78	prosecuted by the authority and may not be required to give a
79	79	supersedeas or cost bond in an appeal of a judgment.
80	80	(c) An authority may hold, use, sell, lease, dispose of, and
81	81	acquire, by any means, property and licenses, patents, rights, and
82	82	other interests necessary, convenient, or useful to the exercise of
83	83	any power under this chapter.
84	84	(d) An authority may sell, lease, or dispose of in another
85	85	manner:
86	86	(1) any right, interest, or property of the authority
87	87	that is not needed for, or, if a lease, is inconsistent with, the
88	88	efficient operation and maintenance of the public transportation
89	89	system; or
90	90	(2) at any time, surplus materials or other property
91	91	that is not needed for the requirements of the authority or for
92	92	carrying out a power under this chapter.
93	93	Sec. 463.055. CONTRACTS; GRANTS AND LOANS. (a) An
94	94	authority may contract with any person.
95	95	(b) An authority may accept a grant or loan from any person.
96	96	(c) An authority may enter one or more agreements with any
97	97	municipality included in the area of the authority for the
98	98	distribution of the authority's revenues.
99	99	Sec. 463.056. OPERATION OF PUBLIC TRANSPORTATION SYSTEM.
100	100	(a) An authority may:
101	101	(1) acquire, construct, develop, plan, own, operate,
102	102	and maintain a public transportation system in the territory of the
103	103	authority, including the territory of a political subdivision;
104	104	(2) contract with a municipality, county, or other
105	105	political subdivision for the authority to provide public
106	106	transportation services outside the authority; and
107	107	(3) lease all or a part of the public transportation
108	108	system to, or contract for the operation of all or a part of the
109	109	public transportation system by, an operator.
110	110	(b) An authority, as the authority determines advisable,
111	111	shall determine routes.
112	112	(c) The executive committee may submit a referendum for the
113	113	approval of a power granted by Subsection (a) or (b).
114	114	(d) A private operator who contracts with an authority under
115	115	this chapter is not a public entity for purposes of any law of this
116	116	state.
117	117	Sec. 463.057. ACQUISITION OF PROPERTY BY AGREEMENT. An
118	118	authority may acquire rolling stock or other property under a
119	119	contract or trust agreement, including a conditional sales
120	120	contract, lease, and equipment trust certificate.
121	121	Sec. 463.058. USE AND ACQUISITION OF PROPERTY OF OTHERS.
122	122	(a) For a purpose described by Section 463.056(a)(1) and as
123	123	necessary or useful in the construction, repair, maintenance, or
124	124	operation of the public transportation system, an authority may:
125	125	(1) use a public way, including an alley; and
126	126	(2) directly, or indirectly by another person,
127	127	relocate or reroute the property of another person or alter the
128	128	construction of the property of another person.
129	129	(b) For an act authorized by Subsection (a)(2), an authority
130	130	may contract with the owner of the property to allow the owner to
131	131	make the relocation, rerouting, or alteration by the owner's own
132	132	means or through a contractor of the owner. The contract may
133	133	provide for reimbursement of the owner for costs or payment to the
134	134	contractor.
135	135	(c) An authority may acquire by eminent domain any interest
136	136	in real property, including a fee simple interest, except the right
137	137	of eminent domain may not be exercised:
138	138	(1) in a municipality without the approval of each
139	139	proposed acquisition by the governing body of the municipality or
140	140	in an unincorporated area without the approval of each proposed
141	141	acquisition by the commissioners court of the county in which the
142	142	property to be condemned is located; or
143	143	(2) in a manner that would:
144	144	(A) unduly impair the existing neighborhood
145	145	character of property surrounding, or adjacent to, the property to
146	146	be condemned;
147	147	(B) unduly interfere with interstate commerce;
148	148	or
149	149	(C) authorize the authority to run an authority
150	150	vehicle on a railroad track that is used to transport property.
151	151	(d) If an authority, through the exercise of a power under
152	152	this chapter, makes necessary the relocation or rerouting of, or
153	153	alteration of the construction of, a road, alley, overpass,
154	154	underpass, railroad track, bridge, or associated property, an
155	155	electric, telegraph, telephone, or television cable line, conduit,
156	156	or associated property, or a water, sewer, gas, or other pipeline,
157	157	or associated property, the relocation or rerouting or alteration
158	158	of the construction must be accomplished at the sole cost and
159	159	expense of the authority, and damages that are incurred by an owner
160	160	of the property must be paid by the authority.
161	161	(e) Unless the power of eminent domain is exercised, an
162	162	authority may not begin an activity authorized under Subsection (a)
163	163	to alter or damage property of others, including this state or a
164	164	political subdivision of this state, without having first received
165	165	the written permission of the owner.
166	166	Sec. 463.059. EMINENT DOMAIN PROCEEDINGS. (a) An eminent
167	167	domain proceeding by an authority is initiated by the adoption by
168	168	the executive committee of a resolution that:
169	169	(1) describes the property interest to be acquired by
170	170	the authority;
171	171	(2) declares the public necessity for and interest in
172	172	the acquisition; and
173	173	(3) states that the acquisition is necessary and
174	174	proper for the construction, extension, improvement, or
175	175	development of the public transportation system.
176	176	(b) A resolution adopted under this section and approved by
177	177	resolution of the appropriate municipal governing body or
178	178	commissioners court is conclusive evidence of the public necessity
179	179	for the acquisition described in the resolution and that the
180	180	property interest is necessary for public use.
181	181	(c) Except as otherwise provided by this chapter, Chapter
182	182	21, Property Code, applies to an eminent domain proceeding by an
183	183	authority.
184	184	Sec. 463.060. AGREEMENT WITH UTILITIES; CARRIERS. An
185	185	authority may agree with any other public or private utility,
186	186	communication system, common carrier, or transportation system
187	187	for:
188	188	(1) the joint use in the authority of the property of
189	189	the agreeing entities; or
190	190	(2) the establishment of through routes, joint fares,
191	191	or transfers of passengers.
192	192	Sec. 463.061. FARES AND OTHER CHARGES. (a) An authority
193	193	shall impose reasonable and nondiscriminatory fares, tolls,
194	194	charges, rents, and other compensation for the use of the public
195	195	transportation system sufficient to produce revenue, together with
196	196	grants received by the authority, in an amount adequate to:
197	197	(1) pay all expenses necessary to operate and maintain
198	198	the public transportation system;
199	199	(2) pay when due the principal of and interest on, and
200	200	sinking fund and reserve fund payments agreed to be made with
201	201	respect to, all bonds that are issued by the authority and payable
202	202	wholly or partly from the revenue; and
203	203	(3) fulfill the terms of any other agreement with the
204	204	holders of bonds described by Subdivision (2) or with a person
205	205	acting on behalf of the bondholders.
206	206	(b) It is intended by this chapter that the compensation
207	207	imposed under Subsection (a) not exceed the amounts necessary to
208	208	produce revenue sufficient to meet the obligations of the authority
209	209	under this chapter.
210	210	(c) Compensation for the use of the public transportation
211	211	system may be set according to a zone system or to another
212	212	classification that the authority determines to be reasonable.
213	213	(d) The state agrees with holders of bonds issued under this
214	214	chapter not to alter the power given to an authority under this
215	215	section to impose fares, tolls, charges, rents, and other
216	216	compensation in amounts sufficient to comply with Subsection (a),
217	217	or to impair the rights and remedies of an authority bondholder, or
218	218	a person acting on behalf of a bondholder, until the bonds, interest
219	219	on the bonds, interest on unpaid installments of interest, costs
220	220	and expenses in connection with an action or proceeding by or on
221	221	behalf of a bondholder, and other obligations of the authority in
222	222	connection with the bonds are discharged.
223	223	Sec. 463.062. ENFORCEMENT OF FARES AND OTHER CHARGES. (a)
224	224	An executive committee by resolution may prohibit the use of the
225	225	public transportation system by a person who fails to possess
226	226	evidence showing that the appropriate fare for the use of the system
227	227	has been paid and may establish reasonable and appropriate methods,
228	228	using transit police officers or fare enforcement officers under
229	229	Section 463.063, to ensure that persons using the public
230	230	transportation system pay the appropriate fare for that use.
231	231	(b) The authority shall post signs designating each area in
232	232	which a person is prohibited from using the transportation system
233	233	without possession of evidence showing that the appropriate fare
234	234	has been paid.
235	235	Sec. 463.063. FARE ENFORCEMENT OFFICERS. (a) The
236	236	authority may employ persons to serve as fare enforcement officers
237	237	to enforce the payment of fares for use of the public transportation
238	238	system by requesting and inspecting evidence showing payment of the
239	239	appropriate fare from a person using the public transportation
240	240	system.
241	241	(b) Before commencing duties as a fare enforcement officer a
242	242	person must complete a 40-hour training course approved by the
243	243	authority that is appropriate to the duties required of a fare
244	244	enforcement officer.
245	245	(c) While performing duties, a fare enforcement officer
246	246	shall:
247	247	(1) wear a distinctive uniform that identifies the
248	248	officer as a fare enforcement officer; and
249	249	(2) work under the direction of the chief of police of
250	250	the authority.
251	251	(d) A fare enforcement officer may:
252	252	(1) request evidence showing payment of the
253	253	appropriate fare from passengers of the public transportation
254	254	system;
255	255	(2) request personal identification from a passenger
256	256	who does not produce evidence showing payment of the appropriate
257	257	fare on request by the officer; and
258	258	(3) request that a passenger leave the public
259	259	transportation system if the passenger does not possess evidence of
260	260	payment of the appropriate fare.
261	261	(e) A fare enforcement officer may not carry a weapon while
262	262	performing duties under this section.
263	263	(f) A fare enforcement officer is not a peace officer and
264	264	has no authority to enforce a criminal law, other than the authority
265	265	possessed by any other person who is not a peace officer.
266	266	Sec. 463.064. ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANE
267	267	USAGE. (a) An executive committee by resolution may regulate or
268	268	prohibit improper entrance into, exit from, and vehicle occupancy
269	269	in high occupancy vehicle lanes operated, managed, or maintained by
270	270	the authority.
271	271	(b) An executive committee by resolution may establish
272	272	reasonable and appropriate methods to enforce regulations or
273	273	prohibitions established under Subsection (a).
274	274	Sec. 463.065. INSURANCE. (a) An authority may insure,
275	275	through purchased insurance policies or self-insurance programs,
276	276	or both, the legal liability of the authority and of its contractors
277	277	and subcontractors arising from the acquisition, construction, or
278	278	operation of the programs and facilities of the authority for:
279	279	(1) personal or property damage; and
280	280	(2) officers' and employees' liability.
281	281	(b) An authority may use contracts, rating plans, and risk
282	282	management programs designed to encourage accident prevention.
283	283	(c) In developing an insurance or self-insurance program,
284	284	an authority may consider the peculiar hazards, indemnity
285	285	standards, and past and prospective loss and expense experience of
286	286	the authority and of its contractors and subcontractors.
287	287	Sec. 463.066. TAX EXEMPTION. The property, revenue, and
288	288	income of an authority are exempt from state and local taxes.
289	289	Sec. 463.067. LIGHT RAIL SYSTEM: REGULATORY EXEMPTION.
290	290	(a) An authority that constructs or operates or contracts with
291	291	another entity to construct or operate a light rail mass transit
292	292	system is not subject to any state law regulating or governing the
293	293	design, construction, or operation of a railroad, railway, street
294	294	railway, street car, or interurban railway.
295	295	(b) For purposes of ownership or transfer of ownership of an
296	296	interest in real property, a light rail mass transit system line
297	297	operating on property previously used by a railroad, railway,
298	298	street railway, or interurban railway is a continuation of existing
299	299	rail use.
300	300	Sec. 463.068. ELECTIONS. (a) In an election ordered by the
301	301	executive committee:
302	302	(1) the executive committee shall give notice of the
303	303	election by publication in a newspaper of general circulation in
304	304	the authority at least once each week for three consecutive weeks,
305	305	with the first publication occurring at least 21 days before the
306	306	date of election; and
307	307	(2) a resolution ordering the election and the
308	308	election notice must show, in addition to the requirements of the
309	309	Election Code, the hours of the election and polling places in
310	310	election precincts.
311	311	(b) Subsection (a) does not apply to an election under
312	312	Section 463.309.
313	313	(c) A copy of the notice of each election held under this
314	314	chapter shall be furnished to the Texas Transportation Commission
315	315	and the comptroller.
316	316	SUBCHAPTER C. MANAGEMENT OF AUTHORITY
317	317	Sec. 463.101. EXECUTIVE COMMITTEE: POWERS. The executive
318	318	committee may:
319	319	(1) employ and prescribe the compensation for a chief
320	320	executive officer whom the committee may designate as the general
321	321	manager or the executive director;
322	322	(2) appoint auditors and attorneys and prescribe their
323	323	duties, compensation, and tenure;
324	324	(3) adopt a seal for the authority;
325	325	(4) set the fiscal year for the authority;
326	326	(5) establish a complete system of accounts for the
327	327	authority;
328	328	(6) designate by resolution an authorized
329	329	representative of the authority to, according to terms prescribed
330	330	by the executive committee:
331	331	(A) invest authority funds; and
332	332	(B) withdraw money from authority accounts for
333	333	investments; and
334	334	(7) designate by resolution an authorized
335	335	representative of the authority to supervise the substitution of
336	336	securities pledged to secure authority funds.
337	337	Sec. 463.102. INVESTMENTS. The executive committee may
338	338	invest authority funds in any investment authorized for an entity
339	339	under Chapter 2256, Government Code.
340	340	Sec. 463.103. DEPOSITORY; DEPOSIT OF FUNDS. (a) The
341	341	executive committee shall designate one or more banks as
342	342	depositories for authority funds.
343	343	(b) All funds of an authority that are not otherwise
344	344	invested shall be deposited in one or more of the authority's
345	345	depository banks unless otherwise required by an order or
346	346	resolution authorizing the issuance of an authority bond or note or
347	347	other contractual undertaking.
348	348	(c) Funds in a depository, to the extent that those funds
349	349	are not insured by the Federal Deposit Insurance Corporation, shall
350	350	be secured in the manner provided by law for the security of county
351	351	funds.
352	352	Sec. 463.104. CHIEF EXECUTIVE: DUTIES. (a) The general
353	353	manager or executive director shall administer the daily operation
354	354	of an authority.
355	355	(b) In conformity with the policy of the executive
356	356	committee, the general manager or executive director may:
357	357	(1) employ persons to conduct the affairs of the
358	358	authority, including any operating or management company; and
359	359	(2) remove any employee.
360	360	(c) The general manager or executive director shall
361	361	prescribe the duties, tenure, and compensation of each person
362	362	employed.
363	363	Sec. 463.105. RULES. (a) The executive committee by
364	364	resolution may adopt rules for the:
365	365	(1) safe and efficient operation and maintenance of
366	366	the public transportation system;
367	367	(2) use of the public transportation system and the
368	368	authority's services by the public and the payment of fares, tolls,
369	369	and other charges; and
370	370	(3) regulation of privileges on property owned,
371	371	leased, or otherwise controlled by the authority.
372	372	(b) The authority shall encourage to the maximum extent
373	373	feasible the participation of private enterprise.
374	374	(c) A notice of each rule adopted by the executive committee
375	375	shall be published in a newspaper with general circulation in the
376	376	area in which the authority is located once each week for two
377	377	consecutive weeks after adoption of the rule. The notice must
378	378	contain a condensed statement of the substance of the rule and must
379	379	advise that a copy of the complete text of the rule is filed in the
380	380	principal office of the authority where the text may be read by any
381	381	person.
382	382	(d) A rule becomes effective 10 days after the date of the
383	383	second publication of the notice under this section.
384	384	Sec. 463.106. PURCHASES: COMPETITIVE BIDDING. (a) An
385	385	authority may not award a contract for construction, services, or
386	386	property, other than real property, except through the solicitation
387	387	of competitive sealed bids or proposals, including the reverse
388	388	auction procedure, ensuring full and open competition.
389	389	(b) The authority shall describe in a solicitation each
390	390	factor to be used to evaluate a bid or proposal and give the
391	391	factor's relative importance.
392	392	Sec. 463.107. DURATION OF CONTRACTS. An authority may
393	393	contract for payment with debt obligations and for performance and
394	394	payments to extend longer than one fiscal year if the contract
395	395	provides for the discharge of the authority's contractual
396	396	obligations by any method, including:
397	397	(1) committing current year funds or cancellation
398	398	charges; and
399	399	(2) making the contract subject to the future
400	400	availability of funds.
401	401	Sec. 463.108. SECURITY. The executive committee may
402	402	establish a security force and provide for the employment of
403	403	security personnel.
404	404	Sec. 463.109. BUDGET RECOMMENDATIONS. The executive
405	405	committee shall make a proposed annual budget available to the
406	406	commissioners courts of the counties in the authority at least 30
407	407	days before the date of the adoption of the final annual budget.
408	408	Sec. 463.110. FINANCIAL AUDITS. (a) The executive
409	409	committee of an authority shall have an annual audit of the affairs
410	410	of the authority prepared by an independent certified public
411	411	accountant or a firm of independent certified public accountants.
412	412	(b) The audit is open to public inspection.
413	413	SUBCHAPTER D. STATION OR TERMINAL COMPLEX SYSTEMS
414	414	Sec. 463.151. STATION OR TERMINAL COMPLEX: SYSTEM PLAN.
415	415	(a) An authority may not acquire an interest in real property for a
416	416	station or terminal complex unless the station or terminal complex
417	417	is included in the public transportation system in a comprehensive
418	418	service plan approved by a resolution of the executive committee. A
419	419	mass transit facility of an authority is not a station or terminal
420	420	complex under this subchapter unless the facility is included in
421	421	the authority's comprehensive service plan under this section.
422	422	(b) A station or terminal complex may not be included in a
423	423	public transportation system unless the executive committee first
424	424	finds that the station or complex:
425	425	(1) will encourage and provide for efficient and
426	426	economical public transportation;
427	427	(2) will facilitate access to public transportation
428	428	and provide for other public transportation purposes;
429	429	(3) will reduce vehicular congestion and air
430	430	pollution; and
431	431	(4) is reasonably essential to the successful
432	432	operation of the public transportation system.
433	433	(c) On making a finding under Subsection (b), the executive
434	434	committee may amend the authority's comprehensive service plan to
435	435	include a station or terminal complex.
436	436	Sec. 463.152. STATION OR TERMINAL COMPLEX: FACILITIES. A
437	437	station or terminal complex of an authority:
438	438	(1) must include adequate provisions for the transfer
439	439	of passengers among the various means of transportation available
440	440	to the complex; and
441	441	(2) may include provisions for residential,
442	442	institutional, recreational, commercial, and industrial
443	443	facilities.
444	444	Sec. 463.153. APPROVAL OF MUNICIPALITY. The location of a
445	445	station or terminal complex in a municipality or in the
446	446	extraterritorial jurisdiction of a municipality must be approved,
447	447	as to conformity with the comprehensive or general plan of the
448	448	municipality, by a motion, resolution, or ordinance adopted by the
449	449	governing body of the municipality.
450	450	Sec. 463.154. TRANSFER OF REAL PROPERTY IN STATION OR
451	451	TERMINAL COMPLEX. (a) An authority may transfer to any person by
452	452	any means, including sale or lease, an interest in real property in
453	453	a station or terminal complex and may contract with respect to it,
454	454	in accordance with the comprehensive service plan approved by the
455	455	executive committee, and subject to terms:
456	456	(1) the executive committee finds to be in the public
457	457	interest or necessary to carry out this section; and
458	458	(2) specified in the instrument transferring the title
459	459	or right of use.
460	460	(b) A transfer must be at the fair value of the interest
461	461	transferred considering the use designated for the real property in
462	462	the authority's comprehensive service plan.
463	463	SUBCHAPTER E. BONDS
464	464	Sec. 463.201. DEFINITION. In this subchapter, "bond"
465	465	includes a note.
466	466	Sec. 463.202. POWER TO ISSUE BONDS. An authority may issue
467	467	bonds at any time and for any amounts it considers necessary or
468	468	appropriate for:
469	469	(1) the acquisition, construction, repair, equipping,
470	470	improvement, or extension of its public transportation system; or
471	471	(2) creating or funding self-insurance or retirement
472	472	or pension fund reserves.
473	473	Sec. 463.203. BOND TERMS. An authority's bonds are fully
474	474	negotiable. An authority may make the bonds redeemable before
475	475	maturity at the price and subject to the terms and conditions that
476	476	are provided in the authority's resolution authorizing the bonds.
477	477	Sec. 463.204. SALE. An authority's bonds may be sold at a
478	478	public or private sale as determined by the executive committee to
479	479	be the more advantageous.
480	480	Sec. 463.205. APPROVAL; REGISTRATION. (a) An authority's
481	481	bonds and the records relating to their issuance shall be submitted
482	482	to the attorney general for examination before the bonds may be
483	483	delivered.
484	484	(b) If the attorney general finds that the bonds have been
485	485	issued in conformity with the constitution and this chapter and
486	486	that the bonds will be a binding obligation of the issuing
487	487	authority, the attorney general shall approve the bonds.
488	488	(c) After the bonds are approved by the attorney general,
489	489	the comptroller shall register the bonds.
490	490	Sec. 463.206. INCONTESTABILITY. Bonds are incontestable
491	491	after they are:
492	492	(1) approved by the attorney general;
493	493	(2) registered by the comptroller; and
494	494	(3) sold and delivered to the purchaser.
495	495	Sec. 463.207. SECURITY PLEDGED. (a) To secure the payment
496	496	of an authority's bonds, the authority may:
497	497	(1) pledge any part of the revenue of the public
498	498	transportation system;
499	499	(2) mortgage any part of the public transportation
500	500	system, including any part of the system subsequently acquired;
501	501	(3) pledge all or part of funds the federal government
502	502	has committed to the authority as grants in aid; and
503	503	(4) provide that a pledge of revenue described by
504	504	Subdivision (1) is a first lien or charge against that revenue.
505	505	(b) Under Subsection (a)(2) an authority may, subject to the
506	506	terms of the bond indenture or the resolution authorizing the
507	507	issuance of the bonds, encumber a separate item of the public
508	508	transportation system and acquire, use, hold, or contract for the
509	509	property by lease, chattel mortgage, or other conditional sale
510	510	including an equipment trust transaction.
511	511	(c) An authority may not issue bonds secured by ad valorem
512	512	tax revenue.
513	513	(d) An authority is not prohibited by this subchapter from
514	514	encumbering one or more public transportation systems to purchase,
515	515	construct, extend, or repair one or more other public
516	516	transportation systems of the authority.
517	517	(e) The authority may pledge funds described by Subsection
518	518	(a)(3):
519	519	(1) as the sole security for the bonds; or
520	520	(2) in addition to any other security described by
521	521	this section.
522	522	Sec. 463.208. USE OF REVENUE. Revenue in excess of amounts
523	523	pledged under Section 463.207(a)(1) shall be used to:
524	524	(1) pay the expenses of operation and maintenance of a
525	525	public transportation system, including salaries, labor,
526	526	materials, and repairs necessary to provide efficient service and
527	527	every other proper item of expense; and
528	528	(2) fund operating reserves.
529	529	Sec. 463.209. REFUNDING BONDS. An authority may issue
530	530	refunding bonds for the purposes and in the manner authorized by
531	531	general law, including Chapter 1207, Government Code.
532	532	Sec. 463.210. BONDS AS AUTHORIZED INVESTMENTS. (a) An
533	533	authority's bonds are authorized investments for:
534	534	(1) a bank;
535	535	(2) a savings bank;
536	536	(3) a trust company;
537	537	(4) a savings and loan association; and
538	538	(5) an insurance company.
539	539	(b) The bonds, when accompanied by all appurtenant,
540	540	unmatured coupons and to the extent of the lesser of their face
541	541	value or market value, are eligible to secure the deposit of public
542	542	funds of this state, a political subdivision of this state, and any
543	543	other political corporation of this state.
544	544	Sec. 463.211. EXCHANGE OF BONDS FOR EXISTING SYSTEM. An
545	545	authority's revenue bonds may be exchanged, instead of cash, for
546	546	the property of all or part of an existing public transportation
547	547	system to be acquired by the authority. If the property is owned by
548	548	a corporation that will dissolve simultaneously with the exchange,
549	549	the authority may acquire the stock of the corporation.
550	550	Sec. 463.212. TAX EXEMPTION. The interest on bonds issued
551	551	by an authority is exempt from state and local taxes.
552	552	SUBCHAPTER F. EXECUTIVE COMMITTEE
553	553	Sec. 463.251. COMPOSITION. (a) The executive committee of
554	554	an authority is the board of directors of the regional planning
555	555	commission established for the area of the authority under Chapter
556	556	391, Local Government Code.
557	557	(b) Service on the executive committee by a public officer
558	558	or employee is an additional duty of the office or employment.
559	559	Sec. 463.252. OFFICERS. (a) The officers elected by the
560	560	board of directors of the regional planning commission described by
561	561	Section 463.251(a) shall serve as the officers of the executive
562	562	committee.
563	563	(b) The executive committee may appoint, as necessary,
564	564	members or nonmembers as assistant secretaries.
565	565	(c) The secretary or assistant secretary shall:
566	566	(1) keep permanent records of each proceeding and
567	567	transaction of the authority; and
568	568	(2) perform other duties assigned by the executive
569	569	committee.
570	570	Sec. 463.253. CONFLICTS OF INTEREST. Members of the
571	571	executive committee and officers of the authority are subject to
572	572	Chapter 171, Local Government Code.
573	573	Sec. 463.254. MEETINGS. (a) The executive committee shall
574	574	hold at least one regular meeting each month to transact the
575	575	business of an authority.
576	576	(b) On written notice, the presiding officer may call
577	577	special meetings as necessary.
578	578	(c) The executive committee by resolution shall:
579	579	(1) set the time, place, and day of the regular
580	580	meetings; and
581	581	(2) adopt rules and bylaws as necessary to conduct
582	582	meetings.
583	583	Sec. 463.255. VOTING REQUIREMENTS. An action of the
584	584	executive committee requires a vote of a majority of the members
585	585	present unless the bylaws require a larger number for a particular
586	586	action.
587	587	SUBCHAPTER G. CREATION OF AUTHORITIES
588	588	Sec. 463.301. CREATION OF AUTHORITY AUTHORIZED. The board
589	589	of directors of the regional planning commission established for
590	590	the area included in the boundaries of the counties to which this
591	591	chapter applies may initiate the process to create a regional
592	592	transit authority to provide public transportation services within
593	593	the boundaries of the counties.
594	594	Sec. 463.302. INITIATING ORDER OR RESOLUTION: CONTENTS.
595	595	To initiate the process of creating an authority, the board of
596	596	directors described by Section 463.301 must adopt a resolution or
597	597	order containing the designation of each time and place for holding
598	598	public hearings on the proposal to create the authority.
599	599	Sec. 463.303. NOTICE OF HEARING. (a) Notice of the time
600	600	and place of the public hearings on the creation of the authority
601	601	shall be published, beginning at least 30 days before the date of
602	602	the hearing, once a week for two consecutive weeks in a newspaper of
603	603	general circulation in each county.
604	604	(b) The board of directors described by Section 463.301
605	605	shall give a copy of the notice to the Texas Transportation
606	606	Commission and the comptroller.
607	607	Sec. 463.304. CONDUCT OF HEARING. (a) The board of
608	608	directors described by Section 463.301 creating an authority shall
609	609	conduct public hearings on the creation.
610	610	(b) Any person may appear at a hearing and offer evidence
611	611	on:
612	612	(1) the creation of the authority;
613	613	(2) the operation of a public transportation system;
614	614	(3) the public utility and public interest served in
615	615	the creation of an authority; or
616	616	(4) other facts bearing on the creation of an
617	617	authority.
618	618	(c) A hearing may be continued until completed.
619	619	Sec. 463.305. RESOLUTION OR ORDER. (a) After hearing the
620	620	evidence presented at the hearings, but not earlier than 75 days
621	621	after the date the process is initiated by the board of directors
622	622	described by Section 463.301, the board may adopt a resolution or
623	623	order:
624	624	(1) designating the name of the authority; and
625	625	(2) authorizing the appointment of the interim
626	626	executive committee.
627	627	(b) After the hearing, the results of the hearing shall be
628	628	sent to the Texas Department of Transportation and the comptroller.
629	629	Sec. 463.306. INTERIM EXECUTIVE COMMITTEE. (a) The
630	630	interim executive committee is composed as provided by Section
631	631	463.251 for an executive committee except that the interim
632	632	executive committee must include an additional member who is a
633	633	member of the board of directors of a commuter rail district
634	634	described by Chapter 174.
635	635	(b) The interim executive committee, after its
636	636	organization, shall develop a service plan.
637	637	(c) Service on the interim executive committee by a public
638	638	officer or employee is an additional duty of the office or
639	639	employment.
640	640	Sec. 463.307. APPROVAL OF SERVICE PLAN. Not later than the
641	641	45th day after the date the interim executive committee approves
642	642	the service plan, the commissioners court of each county creating
643	643	an authority must approve, by resolution or order, the service
644	644	plan.
645	645	Sec. 463.308. NOTICE OF INTENT TO ORDER ELECTION. Not
646	646	earlier than the 61st day after the date the interim executive
647	647	committee approves a service plan, the interim executive committee
648	648	shall notify the commissioners court of each county included in the
649	649	boundaries of the authority of the interim executive committee's
650	650	intention to call a confirmation election.
651	651	Sec. 463.309. CONFIRMATION ELECTION. The interim executive
652	652	committee in ordering the confirmation election shall submit to the
653	653	qualified voters of each county in the authority the following
654	654	proposition: "Shall the creation of (name of authority) be
655	655	confirmed?"
656	656	Sec. 463.310. CONDUCT OF ELECTION. The interim executive
657	657	committee shall canvass the returns and declare the results of the
658	658	election separately with respect to each county.
659	659	Sec. 463.311. RESULTS OF ELECTION; ORDER. (a) The
660	660	authority is confirmed if a majority of the votes received in each
661	661	county favor the proposition.
662	662	(b) If the authority continues, the interim executive
663	663	committee shall record the results in its minutes and adopt an
664	664	order:
665	665	(1) declaring that the creation of the authority is
666	666	confirmed;
667	667	(2) stating the date of the election;
668	668	(3) containing the proposition; and
669	669	(4) showing the number of votes cast for or against the
670	670	proposition in each county.
671	671	(c) A certified copy of the order shall be filed with:
672	672	(1) the Texas Department of Transportation; and
673	673	(2) the comptroller.
674	674	(d) If the authority does not continue, the interim
675	675	executive committee shall enter an order declaring that the result
676	676	of votes cast at the election is that the authority ceases in its
677	677	entirety. The order shall be filed with the Texas Department of
678	678	Transportation and the comptroller, and the authority is dissolved.
679	679	Sec. 463.312. EFFECT OF CREATION. On the creation of an
680	680	authority the boundaries of which overlap the territory of a
681	681	commuter rail district described by Chapter 174, the commuter rail
682	682	district is dissolved, and all assets, including property, and all
683	683	liabilities, including debt and other obligations, of the commuter
684	684	rail district transfer to and are assumed by the authority.
685	685	Sec. 463.313. COST OF ELECTION. The board of directors
686	686	described by Section 463.301 creating an authority shall pay the
687	687	cost of the confirmation election.
688	688	Sec. 463.314. EXPIRATION OF UNCONFIRMED AUTHORITY. An
689	689	authority that has not been confirmed expires on the third
690	690	anniversary of the effective date of a resolution or order
691	691	initiating the process to create the authority.
692	692	SECTION 2. Section 174.051, Transportation Code, is amended
693	693	by adding Subsection (c) to read as follows:
694	694	(c) Notwithstanding Subsections (a) and (b), a district may
695	695	not be created in the boundaries of a regional transit authority
696	696	under Chapter 463.
697	697	SECTION 3. This Act takes effect immediately if it receives
698	698	a vote of two-thirds of all the members elected to each house, as
699	699	provided by Section 39, Article III, Texas Constitution. If this
700	700	Act does not receive the vote necessary for immediate effect, this
701	701	Act takes effect September 1, 2013.