Texas 2017 - 85th Regular

Texas House Bill HB1986 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	85R22908 MTB-D
2		-	By: Martinez H.B. No. 1986
3		-	Substitute the following for H.B. No. 1986:
4		-	By: Davis of Dallas C.S.H.B. No. 1986
	1	+	By: Martinez, Guerra (Senate Sponsor - Lucio) H.B. No. 1986
	2	+	(In the Senate - Received from the House May 8, 2017;
	3	+	May 10, 2017, read first time and referred to Committee on
	4	+	Transportation; May 23, 2017, reported favorably by the following
	5	+	vote: Yeas 7, Nays 2; May 23, 2017, sent to printer.)
	6	+	Click here to see the committee vote
5	7
6	8
7	9		A BILL TO BE ENTITLED
8	10		AN ACT
9	11		relating to the creation of regional transit authorities; granting
10	12		the power of eminent domain; providing authority to issue bonds and
11	13		charge fees; creating a criminal offense.
12	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	15		SECTION 1. Subtitle K, Title 6, Transportation Code, is
14	16		amended by adding Chapter 463 to read as follows:
15	17		CHAPTER 463. REGIONAL TRANSIT AUTHORITIES
16	18		SUBCHAPTER A. GENERAL PROVISIONS
17	19		Sec. 463.001. DEFINITIONS. In this chapter:
18	20		(1) "Authority" means a regional transit authority
19	21		created under this chapter.
20	22		(2) "Complementary transportation services" includes:
21	23		(A) special transportation services for a person
22	24		who is elderly or has a disability;
23	25		(B) medical transportation services;
24	26		(C) assistance in street modifications as
25	27		necessary to accommodate the public transportation system;
26	28		(D) construction of new general aviation
27	29		facilities or renovation or purchase of existing facilities not
28	30		served by certificated air carriers to relieve air traffic
29	31		congestion at existing facilities; and
30	32		(E) any other service that complements the public
31	33		transportation system, including providing parking garages.
32	34		(3) "Executive committee" means the authority
33	35		directors who serve as the governing body of the authority.
34	36		(4) "Mass transit system" means a system constructed
35	37		by an authority for the transportation of passengers and
36	38		hand-carried packages or baggage of a passenger by any means of
37	39		surface, overhead, or underground transportation, other than an
38	40		aircraft or taxicab. The term includes a rail system and services
39	41		coordinated with a transit system operated by a municipality.
40	42		(5) "Public transportation system" means:
41	43		(A) all property owned or held by an authority
42	44		for public transportation service purposes;
43	45		(B) real property, facilities, and equipment for
44	46		the protection and environmental enhancement of all the facilities;
45	47		and
46	48		(C) property held:
47	49		(i) in accordance with a contract with the
48	50		owner making the property subject to the control of or regulation by
49	51		the authority; and
50	52		(ii) for public transportation service
51	53		purposes.
52	54		(6) "Regional high capacity transit" means intercity
53	55		transit service designed to transport more people than typical,
54	56		local fixed-route bus service by using dedicated lanes or
55	57		rights-of-way or by having transit priority, including queue jumps
56	58		or traffic signal priority. The term includes bus rapid transit,
57	59		light rail, commuter rail, streetcars, high occupancy toll lanes,
58	60		or other fixed guideway operations.
59	61		(7) "Service plan" means an outline of the service
60	62		that would be provided by the authority to counties if confirmed at
61	63		an election.
62	64		Sec. 463.002. APPLICATION. This chapter applies to:
63	65		(1) a county that is contiguous to the Gulf of Mexico
64	66		or a bay or inlet opening into the gulf and that borders the United
65	67		Mexican States; and
66	68		(2) a county that borders a county described by
67	69		Subdivision (1).
68	70		Sec. 463.003. MUNICIPALITIES MAY PROVIDE TRANSPORTATION
69	71		SERVICES. This chapter does not prohibit a municipality from
70	72		providing public transportation services. An authority may
71	73		coordinate the provision of services with the municipality and
72	74		include the services provided by the municipality in the
73	75		authority's service plan.
74	76		SUBCHAPTER B. POWERS OF AUTHORITIES
75	77		Sec. 463.051. POWERS APPLICABLE TO CONFIRMED AUTHORITY.
76	78		This subchapter applies only to an authority that has been
77	79		confirmed.
78	80		Sec. 463.052. NATURE OF AUTHORITY. (a) An authority:
79	81		(1) is a public political entity and corporate body;
80	82		(2) has perpetual succession; and
81	83		(3) exercises public and essential governmental
82	84		functions.
83	85		(b) The exercise of a power granted by this chapter,
84	86		including a power relating to a station or terminal complex, is for
85	87		a public purpose and is a matter of public necessity.
86	88		(c) An authority is a governmental unit under Chapter 101,
87	89		Civil Practice and Remedies Code, and the operations of the
88	90		authority are not proprietary functions for any purpose including
89	91		the application of Chapter 101, Civil Practice and Remedies Code.
90	92		Sec. 463.053. RESPONSIBILITY FOR CONTROL OF AUTHORITY.
91	93		Except as provided by Section 463.104, the executive committee is
92	94		responsible for the management, operation, and control of an
93	95		authority and its property.
94	96		Sec. 463.054. GENERAL POWERS OF AUTHORITY. (a) An
95	97		authority has any power necessary or convenient to carry out this
96	98		chapter or to effect a purpose of this chapter.
97	99		(b) An authority may sue and be sued. An authority may not
98	100		be required to give security for costs in a suit brought or
99	101		prosecuted by the authority and may not be required to give a
100	102		supersedeas or cost bond in an appeal of a judgment.
101	103		(c) An authority may hold, use, sell, lease, dispose of, and
102	104		acquire, by any means, property and licenses, patents, rights, and
103	105		other interests necessary, convenient, or useful to the exercise of
104	106		any power under this chapter.
105	107		(d) An authority may sell, lease, or dispose of in another
106	108		manner:
107	109		(1) any right, interest, or property of the authority
108	110		that is not needed for, or, if a lease, is inconsistent with, the
109	111		efficient operation and maintenance of the public transportation
110	112		system; or
111	113		(2) at any time, surplus materials or other property
112	114		that is not needed for the requirements of the authority or for
113	115		carrying out a power under this chapter.
114	116		(e) An authority may leverage funds with a municipality that
115	117		provides public transportation services in the territory of the
116	118		authority to finance a project.
117	119		Sec. 463.055. CONTRACTS; GRANTS AND LOANS. (a) An
118	120		authority may contract with any person.
119	121		(b) An authority may accept a grant or loan from any person.
120	122		(c) An authority may enter one or more agreements with any
121	123		municipality included in the territory of the authority for the
122	124		distribution of the authority's revenues.
123	125		(d) An authority may enter into a contract with a private
124	126		entity under Chapter 2267, Government Code.
125	127		Sec. 463.056. OPERATION OF PUBLIC TRANSPORTATION SYSTEM.
126	128		(a) An authority may:
127	129		(1) acquire, construct, develop, plan, own, operate,
128	130		and maintain a public transportation system in the territory of the
129	131		authority, including the territory of a political subdivision;
130	132		(2) contract with a municipality, county, or other
131	133		political subdivision for the authority to provide public
132	134		transportation services outside the authority; and
133	135		(3) lease all or a part of the public transportation
134	136		system to, or contract for the operation of all or a part of the
135	137		public transportation system by, an operator.
136	138		(b) An authority, as the authority determines advisable,
137	139		shall determine routes.
138	140		(c) The executive committee may submit a referendum for the
139	141		approval of a power granted by Subsection (a) or (b).
140	142		(d) A private operator who contracts with an authority under
141	143		this chapter is not a public entity for purposes of any law of this
142	144		state except that an independent contractor of the authority that
143	145		performs a function of the authority is liable for damages only to
144	146		the extent that the authority would be liable if the authority
145	147		itself were performing the function.
146	148		Sec. 463.057. ACQUISITION OF PROPERTY BY AGREEMENT. An
147	149		authority may acquire rolling stock or other property under a
148	150		contract or trust agreement, including a conditional sales
149	151		contract, lease, and equipment trust certificate.
150	152		Sec. 463.058. USE AND ACQUISITION OF PROPERTY OF OTHERS.
151	153		(a) For a purpose described by Section 463.056(a)(1) and as
152	154		necessary or useful in the construction, repair, maintenance, or
153	155		operation of the public transportation system, an authority may:
154	156		(1) use a public way, including an alley; and
155	157		(2) directly, or indirectly by another person,
156	158		relocate or reroute the property of another person or alter the
157	159		construction of the property of another person.
158	160		(b) For an act authorized by Subsection (a)(2), an authority
159	161		may contract with the owner of the property to allow the owner to
160	162		make the relocation, rerouting, or alteration by the owner's own
161	163		means or through a contractor of the owner. The contract may
162	164		provide for reimbursement of the owner for costs or payment to the
163	165		contractor.
	166	+	(b-1) In this subsection, "telecommunications provider" has
	167	+	the meaning assigned by Section 51.002, Utilities Code.
	168	+	Notwithstanding Subsection (b), an authority may not relocate the
	169	+	property of a telecommunications provider on behalf of the provider
	170	+	without the provider's permission. An authority shall reimburse a
	171	+	telecommunications provider for the cost of the relocation if
	172	+	otherwise provided by law.
164	173		(c) Except as otherwise provided by this subsection, an
165	174		authority may acquire by eminent domain any interest in real
166	175		property, including a fee simple interest. The right of eminent
167	176		domain may not be exercised in a manner that would authorize the
168	177		authority to run an authority vehicle on a railroad track that is
169	178		used to transport property.
170	179		(d) If an authority, through the exercise of a power under
171	180		this chapter, makes necessary the relocation or rerouting of, or
172	181		alteration of the construction of, a road, alley, overpass,
173	182		underpass, railroad track, bridge, or associated property, an
174	183		electric, telegraph, telephone, or television cable line, conduit,
175	184		or associated property, or a water, sewer, gas, or other pipeline,
176	185		or associated property, the relocation or rerouting or alteration
177	186		of the construction must be accomplished at the sole cost and
178	187		expense of the authority, and damages that are incurred by an owner
179	188		of the property must be paid by the authority.
180	189		(e) An authority may not begin an activity authorized under
181	190		Subsection (a) to alter or damage property of others, including
182	191		this state or a political subdivision of this state, without having
183	192		first received the written permission of the owner.
184	193		(f) Subsection (e) does not apply if the power of eminent
185	194		domain is exercised.
186	195		Sec. 463.059. EMINENT DOMAIN PROCEEDINGS. (a) An eminent
187	196		domain proceeding by an authority is initiated by the adoption by
188	197		the executive committee of a resolution, after notice and a
189	198		hearing, that:
190	199		(1) describes the property interest to be acquired by
191	200		the authority;
192	201		(2) declares the public necessity for and interest in
193	202		the acquisition; and
194	203		(3) states that the acquisition is necessary and
195	204		proper for the construction, extension, improvement, or
196	205		development of the public transportation system.
197	206		(b) A resolution adopted under this section is conclusive
198	207		evidence of the public necessity for the acquisition described in
199	208		the resolution and that the property interest is necessary for
200	209		public use.
201	210		(c) Except as otherwise provided by this chapter, Chapter
202	211		21, Property Code, applies to an eminent domain proceeding by an
203	212		authority.
204	213		Sec. 463.060. AGREEMENT WITH UTILITIES; CARRIERS. An
205	214		authority may agree with any other public or private utility,
206	215		communication system, common carrier, or transportation system
207	216		for:
208	217		(1) the joint use in the authority of the property of
209	218		the agreeing entities; or
210	219		(2) the establishment of through routes, joint fares,
211	220		or transfers of passengers.
212	221		Sec. 463.061. FARES AND OTHER CHARGES. (a) An authority
213	222		shall impose reasonable and nondiscriminatory fares, tolls,
214	223		charges, rents, and other compensation for the use of the public
215	224		transportation system sufficient to produce revenue, together with
216	225		grants received by the authority, in an amount adequate to:
217	226		(1) pay all expenses necessary to operate and maintain
218	227		the public transportation system;
219	228		(2) pay when due the principal of and interest on, and
220	229		sinking fund and reserve fund payments agreed to be made with
221	230		respect to, all bonds that are issued by the authority and payable
222	231		wholly or partly from the revenue; and
223	232		(3) fulfill the terms of any other agreement with the
224	233		holders of bonds described by Subdivision (2) or with a person
225	234		acting on behalf of the bondholders.
226	235		(b) It is intended by this chapter that the compensation
227	236		imposed under Subsection (a) not exceed the amounts necessary to
228	237		produce revenue sufficient to meet the obligations of the authority
229	238		under this chapter.
230	239		(c) Compensation for the use of the public transportation
231	240		system may be set according to a zone system or to another
232	241		classification that the authority determines to be reasonable.
233	242		(d) The state agrees with holders of bonds issued under this
234	243		chapter not to alter the power given to an authority under this
235	244		section to impose fares, tolls, charges, rents, and other
236	245		compensation in amounts sufficient to comply with Subsection (a),
237	246		or to impair the rights and remedies of an authority bondholder, or
238	247		a person acting on behalf of a bondholder, until the bonds, interest
239	248		on the bonds, interest on unpaid installments of interest, costs
240	249		and expenses in connection with an action or proceeding by or on
241	250		behalf of a bondholder, and other obligations of the authority in
242	251		connection with the bonds are discharged.
243	252		Sec. 463.062. ENFORCEMENT OF FARES AND OTHER CHARGES;
244	253		PENALTIES. (a) An executive committee by resolution may prohibit
245	254		the use of the public transportation system by a person without
246	255		payment of the appropriate fare for the use of the system and may
247	256		establish reasonable and appropriate methods to ensure that persons
248	257		using the public transportation system pay the appropriate fare for
249	258		that use.
250	259		(b) An executive committee by resolution may provide that a
251	260		fare for or charge for the use of the public transportation system
252	261		that is not paid incurs a reasonable administrative fee.
253	262		(c) An authority shall post signs designating each area in
254	263		which a person is prohibited from using the transportation system
255	264		without payment of the appropriate fare.
256	265		(d) A person commits an offense if the person or another for
257	266		whom the person is criminally responsible under Section 7.02, Penal
258	267		Code, uses the public transportation system without paying the
259	268		appropriate fare.
260	269		(e) If the person fails to provide proof that the person
261	270		paid the appropriate fare for the use of the public transportation
262	271		system and fails to pay any administrative fee assessed under
263	272		Subsection (b) on or before the 30th day after the date the
264	273		authority notifies the person that the person is required to pay the
265	274		amount of the fare and the administrative fee, it is prima facie
266	275		evidence that the person used the public transportation system
267	276		without paying the appropriate fare.
268	277		(f) The notice required by Subsection (e) may be included in
269	278		a citation issued to the person by a peace officer under Article
270	279		14.06, Code of Criminal Procedure, or by a fare enforcement officer
271	280		under Section 463.063, in connection with an offense relating to
272	281		the nonpayment of the appropriate fare for the use of the public
273	282		transportation system.
274	283		(g) It is an exception to the application of Subsection (d)
275	284		that on or before the 30th day after the date the authority notified
276	285		the person that the person is required to pay the amount of the fare
277	286		and any administrative fee assessed under Subsection (b), the
278	287		person:
279	288		(1) provided proof that the person paid the
280	289		appropriate fare at the time the person used the transportation
281	290		system or at a later date or that the person was exempt from
282	291		payment; and
283	292		(2) paid the administrative fee assessed under
284	293		Subsection (b), if applicable.
285	294		(h) An offense under Subsection (d) is:
286	295		(1) a misdemeanor punishable by a fine not to exceed
287	296		$100; and
288	297		(2) not a crime of moral turpitude.
289	298		(i) A justice court located in the territory of the
290	299		authority may enter into an agreement with the authority to try all
291	300		criminal cases that arise under Subsection (d). Notwithstanding
292	301		Articles 4.12 and 4.14, Code of Criminal Procedure, if a justice
293	302		court enters into an agreement with the authority:
294	303		(1) a criminal case that arises under Subsection (d)
295	304		must be tried in the justice court; and
296	305		(2) the justice court has exclusive jurisdiction in
297	306		all criminal cases that arise under Subsection (d).
298	307		Sec. 463.063. FARE ENFORCEMENT OFFICERS. (a) An authority
299	308		may employ or contract for persons to serve as fare enforcement
300	309		officers to enforce the payment of fares for use of the public
301	310		transportation system by:
302	311		(1) requesting and inspecting evidence showing
303	312		payment of the appropriate fare from a person using the public
304	313		transportation system; and
305	314		(2) issuing a citation to a person described by
306	315		Section 463.062(d).
307	316		(b) Before commencing duties as a fare enforcement officer,
308	317		a person must complete at least eight hours of training approved by
309	318		the authority that is appropriate to the duties required of a fare
310	319		enforcement officer.
311	320		(c) While performing duties, a fare enforcement officer
312	321		shall:
313	322		(1) wear a distinctive uniform, badge, or insignia
314	323		that identifies the person as a fare enforcement officer; and
315	324		(2) work under the direction of the authority's chief
316	325		administrative officer.
317	326		(d) A fare enforcement officer may:
318	327		(1) request evidence showing payment of the
319	328		appropriate fare from passengers of the public transportation
320	329		system or evidence showing exemption from the payment requirement;
321	330		(2) request personal identification or other
322	331		documentation designated by the authority from a passenger who does
323	332		not produce evidence showing payment of the appropriate fare on
324	333		request by the officer;
325	334		(3) instruct a passenger to immediately leave the
326	335		public transportation system if the passenger does not possess
327	336		evidence showing payment or exemption from payment of the
328	337		appropriate fare; or
329	338		(4) file a complaint in the appropriate court that
330	339		charges the person with an offense under Section 463.062(d).
331	340		(e) A fare enforcement officer may not carry a weapon while
332	341		performing duties under this section unless the officer is a
333	342		certified peace officer.
334	343		(f) A fare enforcement officer who is not a certified peace
335	344		officer is not a peace officer and has no authority to enforce a
336	345		criminal law, except as provided by this section.
337	346		Sec. 463.064. ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANE
338	347		USAGE. (a) An executive committee by resolution may regulate or
339	348		prohibit improper entrance into, exit from, and vehicle occupancy
340	349		in high occupancy vehicle lanes operated, managed, or maintained by
341	350		the authority.
342	351		(b) An executive committee by resolution may establish
343	352		reasonable and appropriate methods to enforce regulations or
344	353		prohibitions established under Subsection (a).
345	354		Sec. 463.065. INSURANCE. (a) An authority may insure,
346	355		through purchased insurance policies or self-insurance programs,
347	356		or both, the legal liability of the authority and of its contractors
348	357		and subcontractors arising from the acquisition, construction, or
349	358		operation of the programs and facilities of the authority for:
350	359		(1) personal or property damage; and
351	360		(2) officers' and employees' liability.
352	361		(b) An authority may use contracts, rating plans, and risk
353	362		management programs designed to encourage accident prevention.
354	363		(c) In developing an insurance or self-insurance program,
355	364		an authority may consider the peculiar hazards, indemnity
356	365		standards, and past and prospective loss and expense experience of
357	366		the authority and of its contractors and subcontractors.
358	367		Sec. 463.066. TAX EXEMPTION. The property, revenue, and
359	368		income of an authority are exempt from state and local taxes.
360	369		Sec. 463.067. CONTINUATION OF EXISTING RAIL USE. For
361	370		purposes of ownership or transfer of ownership of an interest in
362	371		real property, a rail mass transit system line operating on
363	372		property previously used by a railroad, railway, street railway, or
364	373		interurban railway is a continuation of existing rail use.
365	374		Sec. 463.068. ELECTIONS. (a) In an election ordered by the
366	375		executive committee:
367	376		(1) the executive committee shall give notice of the
368	377		election by publication in a newspaper of general circulation in
369	378		the authority at least once each week for three consecutive weeks,
370	379		with the first publication occurring at least 21 days before the
371	380		date of election; and
372	381		(2) a resolution ordering the election and the
373	382		election notice must show, in addition to the requirements of the
374	383		Election Code, the hours of the election and polling places in
375	384		election precincts.
376	385		(b) Subsection (a) does not apply to an election under
377	386		Section 463.309.
378	387		(c) A copy of the notice of each election held under this
379	388		chapter shall be furnished to the Texas Transportation Commission
380	389		and the comptroller.
381	390		Sec. 463.069. ADDITIONAL FEE. (a) In addition to a toll or
382	391		other charge imposed under Section 367.011 or other law, an entity
383	392		that operates an international bridge may impose a fee for the use
384	393		of the bridge as follows:
385	394		(1) $1 for passenger vehicles;
386	395		(2) $2 for commercial motor vehicles; and
387	396		(3) 25 cents for pedestrians.
388	397		(b) Before a fee may be imposed under this section, the
389	398		entity must enter into a written agreement with an authority
390	399		relating to the imposition and disposition of the fee. The
391	400		agreement must provide:
392	401		(1) for collection of the fee by the entity and
393	402		remittance of the authority's portion of the fee to the authority
394	403		each month; and
395	404		(2) if more than one entity operates an international
396	405		bridge, for the division of the amount described by Subsection
397	406		(c)(1) among the entities.
398	407		(c) Of the fees collected under this section:
399	408		(1) 25 percent shall be retained by the entity for
400	409		transportation projects or complementary transportation services;
401	410		(2) 50 percent shall be used for a rail mass transit
402	411		system; and
403	412		(3) 25 percent shall be used for regional high
404	413		capacity transit.
405	414		(d) The percentage described by Subsection (c)(3) may be
406	415		retained by the entity if:
407	416		(1) the entity is a mass transit provider; and
408	417		(2) mass transit was provided in the municipality in
409	418		which the international bridge is located on or before January 1,
410	419		2017.
411	420		SUBCHAPTER C. MANAGEMENT OF AUTHORITY
412	421		Sec. 463.101. POWERS AND AUTHORITY OF EXECUTIVE COMMITTEE.
413	422		(a) The executive committee may:
414	423		(1) employ and prescribe the compensation for a chief
415	424		executive officer whom the committee may designate as the general
416	425		manager or the executive director;
417	426		(2) appoint auditors and attorneys and prescribe their
418	427		duties, compensation, and tenure;
419	428		(3) adopt a seal for the authority;
420	429		(4) set the fiscal year for the authority;
421	430		(5) establish a complete system of accounts for the
422	431		authority;
423	432		(6) designate by resolution an authorized
424	433		representative of the authority to, according to terms prescribed
425	434		by the executive committee:
426	435		(A) invest authority funds; and
427	436		(B) withdraw money from authority accounts for
428	437		investments; and
429	438		(7) designate by resolution an authorized
430	439		representative of the authority to supervise the substitution of
431	440		securities pledged to secure authority funds.
432	441		(b) The executive committee is the local designated
433	442		recipient of funds committed to the authority by the federal
434	443		government.
435	444		Sec. 463.102. INVESTMENTS. The executive committee shall
436	445		invest authority funds in any investment authorized for an entity
437	446		under Chapter 2256, Government Code.
438	447		Sec. 463.103. DEPOSITORY; DEPOSIT OF FUNDS. (a) The
439	448		executive committee shall designate one or more banks as
440	449		depositories for authority funds.
441	450		(b) All funds of an authority that are not otherwise
442	451		invested shall be deposited in one or more of the authority's
443	452		depository banks unless otherwise required by an order or
444	453		resolution authorizing the issuance of an authority bond or note or
445	454		other contractual undertaking.
446	455		(c) Funds in a depository, to the extent that those funds
447	456		are not insured by the Federal Deposit Insurance Corporation, shall
448	457		be secured in the manner provided by law for the security of county
449	458		funds.
450	459		Sec. 463.104. CHIEF EXECUTIVE: DUTIES. (a) The general
451	460		manager or executive director shall administer the daily operation
452	461		of an authority.
453	462		(b) In conformity with the policy of the executive
454	463		committee, the general manager or executive director may:
455	464		(1) employ persons to conduct the affairs of the
456	465		authority, including any operating or management company; and
457	466		(2) remove any employee.
458	467		(c) The general manager or executive director shall
459	468		prescribe the duties, tenure, and compensation of each person
460	469		employed.
461	470		Sec. 463.105. RULES. (a) The executive committee by
462	471		resolution may adopt rules for the:
463	472		(1) safe and efficient operation and maintenance of
464	473		the public transportation system;
465	474		(2) use of the public transportation system and the
466	475		authority's services by the public and the payment of fares, tolls,
467	476		and other charges; and
468	477		(3) regulation of privileges on property owned,
469	478		leased, or otherwise controlled by the authority.
470	479		(b) The authority shall encourage to the maximum extent
471	480		feasible the participation of private enterprise.
472	481		(c) A notice of each rule adopted by the executive committee
473	482		shall be published in a newspaper with general circulation in the
474	483		area in which the authority is located once each week for two
475	484		consecutive weeks after adoption of the rule. The notice must
476	485		contain a condensed statement of the substance of the rule and must
477	486		advise that a copy of the complete text of the rule is filed in the
478	487		principal office of the authority where the text may be read by any
479	488		person.
480	489		(d) A rule becomes effective 10 days after the date of the
481	490		second publication of the notice under this section.
482	491		Sec. 463.106. PURCHASES: COMPETITIVE BIDDING. (a) Except
483	492		as provided by Subsection (c) and as otherwise provided by this
484	493		chapter, an authority may not award a contract for construction,
485	494		services, or property, other than real property, except through the
486	495		solicitation of competitive sealed bids or proposals ensuring full
487	496		and open competition.
488	497		(b) The authority shall describe in a solicitation each
489	498		factor to be used to evaluate a bid or proposal and give the
490	499		factor's relative importance.
491	500		(c) The executive committee may authorize the negotiation
492	501		of a contract without competitive sealed bids or proposals if:
493	502		(1) the aggregate amount involved in the contract is
494	503		less than the greater of:
495	504		(A) $50,000; or
496	505		(B) the amount of an expenditure under a contract
497	506		that would require a municipality to comply with Section
498	507		252.021(a), Local Government Code;
499	508		(2) the contract is for construction for which not
500	509		more than one bid or proposal is received;
501	510		(3) the contract is for services or property for which
502	511		there is only one source or for which it is otherwise impracticable
503	512		to obtain competition;
504	513		(4) the contract is to respond to an emergency for
505	514		which the public exigency does not permit the delay incident to the
506	515		competitive process;
507	516		(5) the contract is for personal or professional
508	517		services or services for which competitive bidding is precluded by
509	518		law;
510	519		(6) the contract, without regard to form and which may
511	520		include bonds, notes, loan agreements, or other obligations, is for
512	521		the purpose of borrowing money or is a part of a transaction
513	522		relating to the borrowing of money, including:
514	523		(A) a credit support agreement, such as a line or
515	524		letter of credit or other debt guaranty;
516	525		(B) a bond, note, debt sale or purchase, trustee,
517	526		paying agent, remarketing agent, indexing agent, or similar
518	527		agreement;
519	528		(C) an agreement with a securities dealer,
520	529		broker, or underwriter; and
521	530		(D) any other contract or agreement considered by
522	531		the executive committee to be appropriate or necessary in support
523	532		of the authority's financing activities;
524	533		(7) the contract is for work that is performed and paid
525	534		for by the day as the work progresses;
526	535		(8) the contract is for the lease or purchase of an
527	536		interest in land;
528	537		(9) the contract is for the purchase of personal
529	538		property sold:
530	539		(A) at an auction by a state licensed auctioneer;
531	540		(B) at a going out of business sale held in
532	541		compliance with Subchapter F, Chapter 17, Business & Commerce Code;
533	542		or
534	543		(C) by a political subdivision of this state, a
535	544		state agency, or an entity of the federal government;
536	545		(10) the contract is for services performed by persons
537	546		who are blind or have severe disabilities;
538	547		(11) the contract is for the purchase of electricity;
539	548		(12) the contract is one for an authority project and
540	549		awarded for alternate project delivery using the procedures under
541	550		Subchapters E, F, G, and I, Chapter 2269, Government Code; or
542	551		(13) the contract is for fare enforcement officer
543	552		services under Section 463.063.
544	553		(d) For the purposes of entering into a contract authorized
545	554		by Subsection (c)(12), an authority is considered a "governmental
546	555		entity" as described by Section 2269.002, Government Code.
547	556		Sec. 463.107. DURATION OF CONTRACTS. An authority may
548	557		contract for payment with debt obligations and for performance and
549	558		payments to extend longer than one fiscal year if the contract
550	559		provides for the discharge of the authority's contractual
551	560		obligations by any method, including:
552	561		(1) committing current year funds or cancellation
553	562		charges; and
554	563		(2) making the contract subject to the future
555	564		availability of funds.
556	565		Sec. 463.108. SECURITY. The executive committee may
557	566		establish a security force and provide for the employment of
558	567		security personnel.
559	568		Sec. 463.109. BUDGET RECOMMENDATIONS. The executive
560	569		committee shall make a proposed annual budget available to the
561	570		commissioners courts of the counties in the authority at least 30
562	571		days before the date of the adoption by the executive committee of
563	572		the final annual budget.
564	573		Sec. 463.110. FINANCIAL AUDITS. (a) The executive
565	574		committee of an authority shall have an annual audit of the affairs
566	575		of the authority prepared by an independent certified public
567	576		accountant or a firm of independent certified public accountants.
568	577		(b) The final audit report is open to public inspection.
569	578		SUBCHAPTER D. STATION OR TERMINAL COMPLEX SYSTEMS
570	579		Sec. 463.151. STATION OR TERMINAL COMPLEX: SYSTEM PLAN.
571	580		(a) An authority may not acquire an interest in real property for a
572	581		station or terminal complex unless the station or terminal complex
573	582		is included in the public transportation system in a comprehensive
574	583		service plan approved by a resolution of the executive committee. A
575	584		mass transit facility of an authority is not a station or terminal
576	585		complex under this subchapter unless the facility is included in
577	586		the authority's comprehensive service plan under this section.
578	587		(b) A station or terminal complex may not be included in a
579	588		public transportation system unless the executive committee first
580	589		finds that the station or complex:
581	590		(1) will encourage and provide for efficient and
582	591		economical public transportation;
583	592		(2) will facilitate access to public transportation
584	593		and provide for other public transportation purposes;
585	594		(3) will reduce vehicular congestion and air
586	595		pollution; and
587	596		(4) is reasonably essential to the successful
588	597		operation of the public transportation system.
589	598		(c) On making a finding under Subsection (b), the executive
590	599		committee may amend the authority's comprehensive service plan to
591	600		include a station or terminal complex.
592	601		Sec. 463.152. STATION OR TERMINAL COMPLEX: FACILITIES. A
593	602		station or terminal complex of an authority:
594	603		(1) must include adequate provisions for the transfer
595	604		of passengers among the various means of transportation available
596	605		to the complex; and
597	606		(2) may include provisions for residential,
598	607		institutional, recreational, commercial, and industrial
599	608		facilities.
600	609		Sec. 463.153. STATION OR TERMINAL COMPLEX: LOCATION. An
601	610		authority shall determine the location of a station or terminal
602	611		complex after notice and a hearing.
603	612		Sec. 463.154. TRANSFER OF REAL PROPERTY IN STATION OR
604	613		TERMINAL COMPLEX. (a) An authority may transfer to any person by
605	614		any means, including sale or lease, an interest in real property in
606	615		a station or terminal complex and may contract with respect to it,
607	616		in accordance with the comprehensive service plan approved by the
608	617		executive committee, and subject to terms:
609	618		(1) the executive committee finds to be in the public
610	619		interest or necessary to carry out this section; and
611	620		(2) specified in the instrument transferring the title
612	621		or right of use.
613	622		(b) A transfer must be at the fair value of the interest
614	623		transferred considering the use designated for the real property in
615	624		the authority's comprehensive service plan.
616	625		SUBCHAPTER E. BONDS
617	626		Sec. 463.201. DEFINITION. In this subchapter, "bond"
618	627		includes a note.
619	628		Sec. 463.202. POWER TO ISSUE BONDS. (a) An authority may
620	629		issue bonds at any time and for any amounts it considers necessary
621	630		or appropriate for:
622	631		(1) the acquisition, construction, repair, equipping,
623	632		improvement, or extension of its public transportation system; or
624	633		(2) creating or funding self-insurance or retirement
625	634		or pension fund reserves.
626	635		(b) An authority may exercise the powers granted to the
627	636		governing body of an issuer in connection with the issuance of
628	637		obligations and the execution of credit agreements under Chapter
629	638		1371, Government Code.
630	639		Sec. 463.203. BOND TERMS. (a) An authority's bonds are
631	640		fully negotiable. An authority may make the bonds redeemable
632	641		before maturity at the price and subject to the terms and conditions
633	642		that are provided in the authority's resolution authorizing the
634	643		bonds. The authority's resolution authorizing the bonds may
635	644		contain any other terms the executive committee considers
636	645		appropriate.
637	646		(b) A bond issued under this subchapter is not a debt or
638	647		pledge of the faith and credit of the state, a political subdivision
639	648		included in the boundaries of the authority, or any other political
640	649		subdivision of the state.
641	650		(c) Each bond issued by an authority under this subchapter
642	651		must contain on its face a statement substantially to the effect
643	652		that:
644	653		(1) the state, a political subdivision included in the
645	654		boundaries of the authority, or any other political subdivision of
646	655		the state is not obligated to pay the principal of or the interest
647	656		on the bond; and
648	657		(2) the faith and credit and taxing power of the state,
649	658		a political subdivision included in the boundaries of the
650	659		authority, or any other political subdivision of the state are not
651	660		pledged to the payment of the principal of or the interest on the
652	661		bond.
653	662		Sec. 463.204. SALE. An authority's bonds may be sold at a
654	663		public or private sale as determined by the executive committee to
655	664		be the more advantageous.
656	665		Sec. 463.205. APPROVAL; REGISTRATION. (a) An authority's
657	666		bonds and the records relating to their issuance shall be submitted
658	667		to the attorney general for examination before the bonds may be
659	668		delivered.
660	669		(b) If the attorney general finds that the bonds have been
661	670		issued in conformity with the constitution and this chapter and
662	671		that the bonds will be a binding obligation of the issuing
663	672		authority, the attorney general shall approve the bonds.
664	673		(c) After the bonds are approved by the attorney general,
665	674		the comptroller shall register the bonds.
666	675		Sec. 463.206. INCONTESTABILITY. Bonds are incontestable
667	676		after they are:
668	677		(1) approved by the attorney general;
669	678		(2) registered by the comptroller; and
670	679		(3) sold and delivered to the purchaser.
671	680		Sec. 463.207. SECURITY PLEDGED. (a) To secure the payment
672	681		of an authority's bonds, the authority may:
673	682		(1) pledge any part of the revenue of the public
674	683		transportation system;
675	684		(2) mortgage any part of the public transportation
676	685		system, including any part of the system subsequently acquired;
677	686		(3) pledge all or part of funds the federal government
678	687		has committed to the authority as grants in aid; and
679	688		(4) provide that a pledge of revenue described by
680	689		Subdivision (1) is a first or subordinate lien or charge against
681	690		that revenue.
682	691		(b) Under Subsection (a)(2) an authority may, subject to the
683	692		terms of the bond indenture or the resolution authorizing the
684	693		issuance of the bonds, encumber a separate item of the public
685	694		transportation system and acquire, use, hold, or contract for the
686	695		property by lease, chattel mortgage, or other conditional sale
687	696		including an equipment trust transaction.
688	697		(c) An authority may not issue bonds secured by ad valorem
689	698		tax revenue.
690	699		(d) An authority is not prohibited by this subchapter from
691	700		encumbering one or more public transportation systems to purchase,
692	701		construct, extend, or repair one or more other public
693	702		transportation systems of the authority.
694	703		(e) The authority may pledge funds described by Subsection
695	704		(a)(3):
696	705		(1) as the sole security for the bonds; or
697	706		(2) in addition to any other security described by
698	707		this section.
699	708		Sec. 463.208. USE OF REVENUE. Revenue in excess of amounts
700	709		pledged under Section 463.207(a)(1) shall be used to:
701	710		(1) pay the expenses of operation and maintenance of a
702	711		public transportation system, including salaries, labor,
703	712		materials, and repairs necessary to provide efficient service and
704	713		every other proper item of expense; and
705	714		(2) fund operating reserves.
706	715		Sec. 463.209. REFUNDING BONDS. An authority may issue
707	716		refunding bonds for the purposes and in the manner authorized by
708	717		general law, including Chapter 1207, Government Code.
709	718		Sec. 463.210. BONDS AS AUTHORIZED INVESTMENTS. (a) An
710	719		authority's bonds are authorized investments for:
711	720		(1) a bank;
712	721		(2) a savings bank;
713	722		(3) a trust company;
714	723		(4) a savings and loan association; and
715	724		(5) an insurance company.
716	725		(b) The bonds, when accompanied by all appurtenant,
717	726		unmatured coupons and to the extent of the lesser of their face
718	727		value or market value, are eligible to secure the deposit of public
719	728		funds of this state, a political subdivision of this state, and any
720	729		other political corporation of this state.
721	730		Sec. 463.211. EXCHANGE OF BONDS FOR EXISTING SYSTEM. An
722	731		authority's revenue bonds may be exchanged, instead of cash, for
723	732		the property of all or part of an existing public transportation
724	733		system to be acquired by the authority. If the property is owned by
725	734		a corporation that will dissolve simultaneously with the exchange,
726	735		the authority may acquire the stock of the corporation.
727	736		Sec. 463.212. TAX EXEMPTION. The interest on bonds issued
728	737		by an authority is exempt from state and local taxes.
729	738		SUBCHAPTER F. EXECUTIVE COMMITTEE
730	739		Sec. 463.251. COMPOSITION. (a) The executive committee of
731	740		an authority is the board of directors of the regional planning
732	741		commission established for the area of the authority under Chapter
733	742		391, Local Government Code.
734	743		(b) Service on the executive committee by a public officer
735	744		or employee is an additional duty of the office or employment.
736	745		Sec. 463.252. OFFICERS. (a) The officers elected by the
737	746		board of directors of the regional planning commission described by
738	747		Section 463.251(a) shall serve as the officers of the executive
739	748		committee.
740	749		(b) The executive committee may appoint, as necessary,
741	750		members or nonmembers as assistant secretaries.
742	751		(c) The secretary or assistant secretary shall:
743	752		(1) keep permanent records of each proceeding and
744	753		transaction of the authority; and
745	754		(2) perform other duties assigned by the executive
746	755		committee.
747	756		Sec. 463.253. CONFLICTS OF INTEREST. Members of the
748	757		executive committee and officers of the authority are subject to
749	758		Chapter 171, Local Government Code.
750	759		Sec. 463.254. MEETINGS. (a) The executive committee shall
751	760		hold at least one regular meeting each month to transact the
752	761		business of an authority.
753	762		(b) On written notice, the presiding officer may call
754	763		special meetings as necessary.
755	764		(c) The executive committee by resolution shall:
756	765		(1) set the time, place, and day of the regular
757	766		meetings; and
758	767		(2) adopt rules and bylaws as necessary to conduct
759	768		meetings.
760	769		Sec. 463.255. VOTING REQUIREMENTS. A majority of the
761	770		members of the executive committee constitutes a quorum, and when a
762	771		quorum is present, action may be taken by a majority vote of the
763	772		members present unless the bylaws require a larger number for a
764	773		particular action.
765	774		SUBCHAPTER G. CREATION OF AUTHORITIES
766	775		Sec. 463.301. CREATION OF AUTHORITY AUTHORIZED. The board
767	776		of directors of the regional planning commission established for
768	777		the area included in the boundaries of the counties to which this
769	778		chapter applies may initiate the process to create a regional
770	779		transit authority to provide public transportation services within
771	780		the boundaries of the counties.
772	781		Sec. 463.302. INITIATING ORDER OR RESOLUTION: CONTENTS.
773	782		To initiate the process of creating an authority, the board of
774	783		directors described by Section 463.301 must adopt a resolution or
775	784		order containing the designation of each time and place for holding
776	785		public hearings on the proposal to create the authority.
777	786		Sec. 463.303. NOTICE OF HEARING. (a) Notice of the time
778	787		and place of the public hearings on the creation of the authority
779	788		shall be published, beginning at least 30 days before the date of
780	789		the hearing, once a week for two consecutive weeks in a newspaper of
781	790		general circulation in each county.
782	791		(b) The board of directors described by Section 463.301
783	792		shall give a copy of the notice to the Texas Transportation
784	793		Commission and the comptroller.
785	794		Sec. 463.304. CONDUCT OF HEARING. (a) The board of
786	795		directors described by Section 463.301 creating an authority shall
787	796		conduct public hearings on the creation.
788	797		(b) Any person may appear at a hearing and offer evidence
789	798		on:
790	799		(1) the creation of the authority;
791	800		(2) the operation of a public transportation system;
792	801		(3) the public utility and public interest served in
793	802		the creation of an authority; or
794	803		(4) other facts bearing on the creation of an
795	804		authority.
796	805		(c) A hearing may be continued until completed.
797	806		Sec. 463.305. RESOLUTION OR ORDER. (a) After hearing the
798	807		evidence presented at the hearings, but not earlier than 75 days
799	808		after the date the process is initiated by the board of directors
800	809		described by Section 463.301, the board may adopt a resolution or
801	810		order:
802	811		(1) designating the name of the authority; and
803	812		(2) authorizing the appointment of the interim
804	813		executive committee.
805	814		(b) After the hearing, the results of the hearing shall be
806	815		sent to the Texas Department of Transportation and the comptroller.
807	816		Sec. 463.306. INTERIM EXECUTIVE COMMITTEE. (a) The
808	817		interim executive committee is composed as provided by Section
809	818		463.251 for an executive committee except that the interim
810	819		executive committee must include an additional member who is a
811	820		member of the board of directors of a commuter rail district
812	821		described by Chapter 174.
813	822		(b) The interim executive committee, after its
814	823		organization, shall develop a service plan.
815	824		(c) Service on the interim executive committee by a public
816	825		officer or employee is an additional duty of the office or
817	826		employment.
818	827		Sec. 463.307. APPROVAL OF SERVICE PLAN. Not later than the
819	828		45th day after the date the interim executive committee approves
820	829		the service plan, the commissioners court of each county creating
821	830		an authority must approve, by resolution or order, the service
822	831		plan.
823	832		Sec. 463.308. NOTICE OF INTENT TO ORDER ELECTION. Not
824	833		earlier than the 61st day after the date the interim executive
825	834		committee approves a service plan, the interim executive committee
826	835		shall notify the commissioners court of each county included in the
827	836		boundaries of the authority of the interim executive committee's
828	837		intention to call a confirmation election.
829	838		Sec. 463.309. CONFIRMATION ELECTION. The interim executive
830	839		committee in ordering the confirmation election shall submit to the
831	840		qualified voters of each county in the authority the following
832	841		proposition: "Shall the creation of (name of authority) be
833	842		confirmed?"
834	843		Sec. 463.310. CONDUCT OF ELECTION. The interim executive
835	844		committee shall canvass the returns and declare the results of the
836	845		election separately with respect to each county.
837	846		Sec. 463.311. RESULTS OF ELECTION; ORDER. (a) The
838	847		authority is confirmed if a majority of the votes received in each
839	848		county favor the proposition.
840	849		(b) If the authority continues, the interim executive
841	850		committee shall record the results in its minutes and adopt an
842	851		order:
843	852		(1) declaring that the creation of the authority is
844	853		confirmed;
845	854		(2) stating the date of the election;
846	855		(3) containing the proposition; and
847	856		(4) showing the number of votes cast for or against the
848	857		proposition in each county.
849	858		(c) A certified copy of the order shall be filed with:
850	859		(1) the Texas Department of Transportation; and
851	860		(2) the comptroller.
852	861		(d) If the authority does not continue, the interim
853	862		executive committee shall enter an order declaring that the result
854	863		of votes cast at the election is that the authority ceases in its
855	864		entirety. The order shall be filed with the Texas Department of
856	865		Transportation and the comptroller, and the authority is dissolved.
857	866		Sec. 463.312. EFFECT OF CREATION. On the creation of an
858	867		authority the boundaries of which overlap the territory of a
859	868		commuter rail district described by Chapter 174, the commuter rail
860	869		district is dissolved, and all assets, including property, and all
861	870		liabilities, including debt and other obligations, of the commuter
862	871		rail district transfer to and are assumed by the authority.
863	872		Sec. 463.313. COST OF ELECTION. The board of directors
864	873		described by Section 463.301 creating an authority shall pay the
865	874		cost of the confirmation election.
866	875		Sec. 463.314. EXPIRATION OF UNCONFIRMED AUTHORITY. An
867	876		authority that has not been confirmed expires on the third
868	877		anniversary of the effective date of a resolution or order
869	878		initiating the process to create the authority.
870	879		SECTION 2. Section 174.051, Transportation Code, is amended
871	880		by adding Subsection (c) to read as follows:
872	881		(c) Notwithstanding Subsections (a) and (b), a district may
873	882		not be created in the boundaries of a regional transit authority
874	883		under Chapter 463.
875	884		SECTION 3. Sections 463.058(c) and (f) and Section 463.059,
876	885		Transportation Code, as added by this Act, take effect only if this
877	886		Act receives a two-thirds vote of all the members elected to each
878	887		house.
879	888		SECTION 4. This Act takes effect immediately if it receives
880	889		a vote of two-thirds of all the members elected to each house, as
881	890		provided by Section 39, Article III, Texas Constitution. If this
882	891		Act does not receive the vote necessary for immediate effect, this
883	892		Act takes effect September 1, 2017.
	893	+	* * * * *