By: Guillen H.B. No. 563
A BILL TO BE ENTITLED
AN ACT
relating to shale transportation districts, authorizing the
issuance of bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle Z, Title 6, Transportation Code, is
amended by adding Chapter 473 to read as follows:
CHAPTER 473. SHALE TRANSPORTATION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 473.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "Commission" means the Texas Transportation
Commission.
(3) "Department" means the Texas Department of
Transportation.
(4) "District" means a shale transportation district
created under this chapter.
Sec. 473.002. EXPIRATION OF AUTHORITY. The commission may
not authorize the creation of a district under this chapter on or
after September 1, 2023.
[Sections 473.003-473.050 reserved for expansion]
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 473.051. CREATION OF DISTRICT. (a) Two or more
counties that contain a portion of a shale formation may form a
shale transportation district to plan, coordinate, and provide
financial assistance for road projects in the district if:
(1) the county or counties submit a comprehensive road
construction, maintenance, and improvement plan for the proposed
district, including a budget for the plan
(2) the commission approves the plan.
(b) A district may not be created without the approval of
the commission under Subsection (a) and the approval of the
commissioners court of each county that will be a part of the
district.
(c) a plan adopted under this section must ensure local
funding mechanisms are used to the extent possible.
Sec. 473.052. NATURE OF DISTRICT. (a) A district is a body
politic and corporate and a political subdivision of this state.
(b) A district is a governmental unit as that term is
defined in Section 101.001, Civil Practice and Remedies Code.
(c) The exercise by a district of the powers conferred by
this chapter is:
(1) in all respects for the benefit of the people of
the counties in which a district operates and of the people of this
state; and
(2) an essential governmental function of the state.
(d) The operations of a district are governmental, not
proprietary, functions.
[Sections 473.053-473.100 reserved for expansion]
SUBCHAPTER C. GOVERNANCE
Sec. 473.101. BOARD OF DIRECTORS. (a) The governing body of
a district is a board of directors consisting of:
(1) representatives of each county of the district;
(2) two members appointed by the governor who has
experience with oil and gas industry interests in the district; and
(3) one member appointed by the governor to serve as
the presiding officer of the board.
(b) The commissioners court of each county that forms the
district 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
district to ensure fair representation of political subdivisions in
the counties of the district, provided that the number of directors
must be an odd number.
(c) All appointments to the board shall be made without
regard to race, color, disability, sex, religion, age, or national
origin.
(d) The following individuals are ineligible to serve as a
director:
(1) an elected official;
(2) a person who is not a resident of a county within
the geographic area of the district;
(3) a department employee;
(4) an employee of a governmental entity any part of
which is located within the geographic boundaries of the district;
and
(5) a person owning an interest in real property that
will be acquired for a road project in the district, if it is known
at the time of the person's proposed appointment that the property
will be acquired for the road project.
(e) Each director has equal status and may vote.
(f) The vote of a majority attending a board meeting is
necessary for any action taken by the board. If a vacancy exists on
the board, the majority of directors serving on the board is a
quorum.
(g) The commission may refuse to authorize the creation of a
district if the commission determines that the proposed board will
not fairly represent political subdivisions in the counties of the
district that will be affected by the projects in the comprehensive
plan.
Sec. 473.102. TERMS. (a) Directors serve two-year terms,
with as near as possible to one-half of the directors' terms
expiring on February 1 of each year.
(b) One director appointed to the initial board of a
district by the commissioners court of a county shall be designated
by the court to serve a term of one year and one director designated
to serve a term of two years. If one or more directors are
subsequently appointed to the board, the directors other than the
subsequent appointees shall determine the length of the appointees'
terms, to comply with Subsection (a).
Sec. 473.103. VACANCY. If a vacancy occurs on the board,
the appointing authority shall promptly appoint a successor to
serve for the unexpired portion of the term.
[Sections 473.104-473.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
Sec. 473.151. GENERAL POWERS. (a) A district, through its
board, may:
(1) adopt rules for the regulation of its affairs and
the conduct of its business;
(2) adopt an official seal; and
(3) apply for and directly or indirectly receive and
spend loans, gifts, and grants.
(b) A district may sue and be sued and plead and be impleaded
in its own name.
Sec. 473.152. DISTRICT COMPREHENSIVE ROAD CONSTRUCTION,
MAINTENANCE, AND IMPROVEMENT PLAN; CONTRACTS FOR USE OF BOND
PROCEEDS. (a) A district may contract with the department or a local
government in the district for the use of district money, including
bond proceeds under Section 473.153, by the department or local
government for construction or improvement of road projects that
are part of the comprehensive road construction, maintenance, and
improvement plan submitted under Section 473.051.
(b) A district, with the approval of the commission, may
amend the comprehensive plan, including by adding or removing
projects from the plan.
(c) Unless otherwise authorized by the commission, all
projects proposed in a comprehensive road construction,
maintenance, and improvement plan must be proposed to be completed
not later than the 10th anniversary of the creation of the district.
Sec. 473.153. BONDS SECURED BY SEVERANCE TAX REVENUE. A
district, by bond resolution, may authorize the issuance of bonds
for which the principal of and interest on are payable solely from:
(1) money under Sections 49-g(d) and (e), Article III,
Texas Constitution, allocated to the district by the department;
and
(2) money derived from any other source available to
the district.
[Sections 473.154-473.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION OF DISTRICT
Sec. 473.201. VOLUNTARY DISSOLUTION. (a) A district may
not be dissolved unless the dissolution is approved by the
commission.
(b) A board may submit a request to the commission for
approval to dissolve.
(c) The commission may approve a request to dissolve only
if:
(1) all debts, obligations, and liabilities of the
district have been paid and discharged or adequate provision has
been made for the payment of all debts, obligations, and
liabilities; and
(2) there are no suits pending against the district,
or adequate provision has been made for the satisfaction of any
judgment, order, or decree that may be entered against it in any
pending suit.
Sec. 473.202. INVOLUNTARY DISSOLUTION FOR NONCOMPLIANCE
WITH RULE OR AGREEMENT. (a) The commission by order may require a
district to dissolve if the commission determines that the district
has not substantially complied with the requirements of a
commission rule or an agreement between the department and the
district.
(b) The commission may not require dissolution under
Subsection (a) unless:
(1) the conditions described in Section 473.201(c)
have been met; and
(2) the holders of any indebtedness have evidenced
their agreement to the dissolution.
Sec. 473.203. DISSOLUTION AFTER COMPLETION OF PROJECTS IN
PLAN. The commission shall dissolve a district if:
(1) all projects in the district's comprehensive road
construction, maintenance, and improvement plan have been
completed;
(2) all debts, obligations, and liabilities of the
district have been paid and discharged or adequate provision has
been made for the payment of all debts, obligations, and
liabilities; and
(3) there are no suits pending against the district,
or adequate provision has been made for the satisfaction of any
judgment, order, or decree that may be entered against it in any
pending suit.
SECTION 2. SECTION 2. This Act takes effect on the date on
which the constitutional amendment proposed by the 83rd
Legislature, Regular Session, 2013, to authorize the legislature If
that amendment is not approved by the voters, this Act has no
effect.
SECTION 3. This Act takes effect September 1, 2013.