Texas 2017 - 85th Regular

Texas Senate Bill SB2139 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R6441 MTB-D
2	2	By: Lucio S.B. No. 2139
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of regional transit authorities; granting
8	8	the power of eminent domain; providing authority to issue bonds and
9	9	charge fees; creating a criminal offense.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle K, Title 6, Transportation Code, is
12	12	amended by adding Chapter 463 to read as follows:
13	13	CHAPTER 463. REGIONAL TRANSIT AUTHORITIES
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 463.001. DEFINITIONS. In this chapter:
16	16	(1) "Authority" means a regional transit authority
17	17	created under this chapter.
18	18	(2) "Complementary transportation services" includes:
19	19	(A) special transportation services for a person
20	20	who is elderly or has a disability;
21	21	(B) medical transportation services;
22	22	(C) assistance in street modifications as
23	23	necessary to accommodate the public transportation system;
24	24	(D) construction of new general aviation
25	25	facilities or renovation or purchase of existing facilities not
26	26	served by certificated air carriers to relieve air traffic
27	27	congestion at existing facilities; and
28	28	(E) any other service that complements the public
29	29	transportation system, including providing parking garages.
30	30	(3) "Executive committee" means the authority
31	31	directors who serve as the governing body of the authority.
32	32	(4) "Mass transit system" means a system constructed
33	33	by an authority for the transportation of passengers and
34	34	hand-carried packages or baggage of a passenger by any means of
35	35	surface, overhead, or underground transportation, other than an
36	36	aircraft or taxicab. The term includes a rail system and services
37	37	coordinated with a transit system operated by a municipality.
38	38	(5) "Public transportation system" means:
39	39	(A) all property owned or held by an authority
40	40	for public transportation service purposes;
41	41	(B) real property, facilities, and equipment for
42	42	the protection and environmental enhancement of all the facilities;
43	43	and
44	44	(C) property held:
45	45	(i) in accordance with a contract with the
46	46	owner making the property subject to the control of or regulation by
47	47	the authority; and
48	48	(ii) for public transportation service
49	49	purposes.
50	50	(6) "Regional high capacity transit" means intercity
51	51	transit service designed to transport more people than typical,
52	52	local fixed-route bus service by using dedicated lanes or
53	53	rights-of-way or by having transit priority, including queue jumps
54	54	or traffic signal priority. The term includes bus rapid transit,
55	55	light rail, commuter rail, streetcars, high occupancy toll lanes,
56	56	or other fixed guideway operations.
57	57	(7) "Service plan" means an outline of the service
58	58	that would be provided by the authority to counties if confirmed at
59	59	an election.
60	60	Sec. 463.002. APPLICATION. This chapter applies to:
61	61	(1) a county that is contiguous to the Gulf of Mexico
62	62	or a bay or inlet opening into the gulf and that borders the United
63	63	Mexican States; and
64	64	(2) a county that borders a county described by
65	65	Subdivision (1).
66	66	Sec. 463.003. MUNICIPALITIES MAY PROVIDE TRANSPORTATION
67	67	SERVICES. This chapter does not prohibit a municipality from
68	68	providing public transportation services. An authority may
69	69	coordinate the provision of services with the municipality and
70	70	include the services provided by the municipality in the
71	71	authority's service plan.
72	72	SUBCHAPTER B. POWERS OF AUTHORITIES
73	73	Sec. 463.051. POWERS APPLICABLE TO CONFIRMED AUTHORITY.
74	74	This subchapter applies only to an authority that has been
75	75	confirmed.
76	76	Sec. 463.052. NATURE OF AUTHORITY. (a) An authority:
77	77	(1) is a public political entity and corporate body;
78	78	(2) has perpetual succession; and
79	79	(3) exercises public and essential governmental
80	80	functions.
81	81	(b) The exercise of a power granted by this chapter,
82	82	including a power relating to a station or terminal complex, is for
83	83	a public purpose and is a matter of public necessity.
84	84	(c) An authority is a governmental unit under Chapter 101,
85	85	Civil Practice and Remedies Code, and the operations of the
86	86	authority are not proprietary functions for any purpose including
87	87	the application of Chapter 101, Civil Practice and Remedies Code.
88	88	Sec. 463.053. RESPONSIBILITY FOR CONTROL OF AUTHORITY.
89	89	Except as provided by Section 463.104, the executive committee is
90	90	responsible for the management, operation, and control of an
91	91	authority and its property.
92	92	Sec. 463.054. GENERAL POWERS OF AUTHORITY. (a) An
93	93	authority has any power necessary or convenient to carry out this
94	94	chapter or to effect a purpose of this chapter.
95	95	(b) An authority may sue and be sued. An authority may not
96	96	be required to give security for costs in a suit brought or
97	97	prosecuted by the authority and may not be required to give a
98	98	supersedeas or cost bond in an appeal of a judgment.
99	99	(c) An authority may hold, use, sell, lease, dispose of, and
100	100	acquire, by any means, property and licenses, patents, rights, and
101	101	other interests necessary, convenient, or useful to the exercise of
102	102	any power under this chapter.
103	103	(d) An authority may sell, lease, or dispose of in another
104	104	manner:
105	105	(1) any right, interest, or property of the authority
106	106	that is not needed for, or, if a lease, is inconsistent with, the
107	107	efficient operation and maintenance of the public transportation
108	108	system; or
109	109	(2) at any time, surplus materials or other property
110	110	that is not needed for the requirements of the authority or for
111	111	carrying out a power under this chapter.
112	112	(e) An authority may leverage funds with a municipality that
113	113	provides public transportation services in the territory of the
114	114	authority to finance a project.
115	115	Sec. 463.055. CONTRACTS; GRANTS AND LOANS. (a) An
116	116	authority may contract with any person.
117	117	(b) An authority may accept a grant or loan from any person.
118	118	(c) An authority may enter one or more agreements with any
119	119	municipality included in the territory of the authority for the
120	120	distribution of the authority's revenues.
121	121	(d) An authority may enter into a contract with a private
122	122	entity under Chapter 2267, Government Code.
123	123	Sec. 463.056. OPERATION OF PUBLIC TRANSPORTATION SYSTEM.
124	124	(a) An authority may:
125	125	(1) acquire, construct, develop, plan, own, operate,
126	126	and maintain a public transportation system in the territory of the
127	127	authority, including the territory of a political subdivision;
128	128	(2) contract with a municipality, county, or other
129	129	political subdivision for the authority to provide public
130	130	transportation services outside the authority; and
131	131	(3) lease all or a part of the public transportation
132	132	system to, or contract for the operation of all or a part of the
133	133	public transportation system by, an operator.
134	134	(b) An authority, as the authority determines advisable,
135	135	shall determine routes.
136	136	(c) The executive committee may submit a referendum for the
137	137	approval of a power granted by Subsection (a) or (b).
138	138	(d) A private operator who contracts with an authority under
139	139	this chapter is not a public entity for purposes of any law of this
140	140	state except that an independent contractor of the authority that
141	141	performs a function of the authority is liable for damages only to
142	142	the extent that the authority would be liable if the authority
143	143	itself were performing the function.
144	144	Sec. 463.057. ACQUISITION OF PROPERTY BY AGREEMENT. An
145	145	authority may acquire rolling stock or other property under a
146	146	contract or trust agreement, including a conditional sales
147	147	contract, lease, and equipment trust certificate.
148	148	Sec. 463.058. USE AND ACQUISITION OF PROPERTY OF OTHERS.
149	149	(a) For a purpose described by Section 463.056(a)(1) and as
150	150	necessary or useful in the construction, repair, maintenance, or
151	151	operation of the public transportation system, an authority may:
152	152	(1) use a public way, including an alley; and
153	153	(2) directly, or indirectly by another person,
154	154	relocate or reroute the property of another person or alter the
155	155	construction of the property of another person.
156	156	(b) For an act authorized by Subsection (a)(2), an authority
157	157	may contract with the owner of the property to allow the owner to
158	158	make the relocation, rerouting, or alteration by the owner's own
159	159	means or through a contractor of the owner. The contract may
160	160	provide for reimbursement of the owner for costs or payment to the
161	161	contractor.
162	162	(c) Except as otherwise provided by this subsection, an
163	163	authority may acquire by eminent domain any interest in real
164	164	property, including a fee simple interest. The right of eminent
165	165	domain may not be exercised in a manner that would authorize the
166	166	authority to run an authority vehicle on a railroad track that is
167	167	used to transport property.
168	168	(d) If an authority, through the exercise of a power under
169	169	this chapter, makes necessary the relocation or rerouting of, or
170	170	alteration of the construction of, a road, alley, overpass,
171	171	underpass, railroad track, bridge, or associated property, an
172	172	electric, telegraph, telephone, or television cable line, conduit,
173	173	or associated property, or a water, sewer, gas, or other pipeline,
174	174	or associated property, the relocation or rerouting or alteration
175	175	of the construction must be accomplished at the sole cost and
176	176	expense of the authority, and damages that are incurred by an owner
177	177	of the property must be paid by the authority.
178	178	(e) An authority may not begin an activity authorized under
179	179	Subsection (a) to alter or damage property of others, including
180	180	this state or a political subdivision of this state, without having
181	181	first received the written permission of the owner.
182	182	(f) Subsection (e) does not apply if the power of eminent
183	183	domain is exercised.
184	184	Sec. 463.059. EMINENT DOMAIN PROCEEDINGS. (a) An eminent
185	185	domain proceeding by an authority is initiated by the adoption by
186	186	the executive committee of a resolution, after notice and a
187	187	hearing, that:
188	188	(1) describes the property interest to be acquired by
189	189	the authority;
190	190	(2) declares the public necessity for and interest in
191	191	the acquisition; and
192	192	(3) states that the acquisition is necessary and
193	193	proper for the construction, extension, improvement, or
194	194	development of the public transportation system.
195	195	(b) A resolution adopted under this section is conclusive
196	196	evidence of the public necessity for the acquisition described in
197	197	the resolution and that the property interest is necessary for
198	198	public use.
199	199	(c) Except as otherwise provided by this chapter, Chapter
200	200	21, Property Code, applies to an eminent domain proceeding by an
201	201	authority.
202	202	Sec. 463.060. AGREEMENT WITH UTILITIES; CARRIERS. An
203	203	authority may agree with any other public or private utility,
204	204	communication system, common carrier, or transportation system
205	205	for:
206	206	(1) the joint use in the authority of the property of
207	207	the agreeing entities; or
208	208	(2) the establishment of through routes, joint fares,
209	209	or transfers of passengers.
210	210	Sec. 463.061. FARES AND OTHER CHARGES. (a) An authority
211	211	shall impose reasonable and nondiscriminatory fares, tolls,
212	212	charges, rents, and other compensation for the use of the public
213	213	transportation system sufficient to produce revenue, together with
214	214	grants received by the authority, in an amount adequate to:
215	215	(1) pay all expenses necessary to operate and maintain
216	216	the public transportation system;
217	217	(2) pay when due the principal of and interest on, and
218	218	sinking fund and reserve fund payments agreed to be made with
219	219	respect to, all bonds that are issued by the authority and payable
220	220	wholly or partly from the revenue; and
221	221	(3) fulfill the terms of any other agreement with the
222	222	holders of bonds described by Subdivision (2) or with a person
223	223	acting on behalf of the bondholders.
224	224	(b) It is intended by this chapter that the compensation
225	225	imposed under Subsection (a) not exceed the amounts necessary to
226	226	produce revenue sufficient to meet the obligations of the authority
227	227	under this chapter.
228	228	(c) Compensation for the use of the public transportation
229	229	system may be set according to a zone system or to another
230	230	classification that the authority determines to be reasonable.
231	231	(d) The state agrees with holders of bonds issued under this
232	232	chapter not to alter the power given to an authority under this
233	233	section to impose fares, tolls, charges, rents, and other
234	234	compensation in amounts sufficient to comply with Subsection (a),
235	235	or to impair the rights and remedies of an authority bondholder, or
236	236	a person acting on behalf of a bondholder, until the bonds, interest
237	237	on the bonds, interest on unpaid installments of interest, costs
238	238	and expenses in connection with an action or proceeding by or on
239	239	behalf of a bondholder, and other obligations of the authority in
240	240	connection with the bonds are discharged.
241	241	Sec. 463.062. ENFORCEMENT OF FARES AND OTHER CHARGES;
242	242	PENALTIES. (a) An executive committee by resolution may prohibit
243	243	the use of the public transportation system by a person without
244	244	payment of the appropriate fare for the use of the system and may
245	245	establish reasonable and appropriate methods to ensure that persons
246	246	using the public transportation system pay the appropriate fare for
247	247	that use.
248	248	(b) An executive committee by resolution may provide that a
249	249	fare for or charge for the use of the public transportation system
250	250	that is not paid incurs a reasonable administrative fee.
251	251	(c) An authority shall post signs designating each area in
252	252	which a person is prohibited from using the transportation system
253	253	without payment of the appropriate fare.
254	254	(d) A person commits an offense if the person or another for
255	255	whom the person is criminally responsible under Section 7.02, Penal
256	256	Code, uses the public transportation system without paying the
257	257	appropriate fare.
258	258	(e) If the person fails to provide proof that the person
259	259	paid the appropriate fare for the use of the public transportation
260	260	system and fails to pay any administrative fee assessed under
261	261	Subsection (b) on or before the 30th day after the date the
262	262	authority notifies the person that the person is required to pay the
263	263	amount of the fare and the administrative fee, it is prima facie
264	264	evidence that the person used the public transportation system
265	265	without paying the appropriate fare.
266	266	(f) The notice required by Subsection (e) may be included in
267	267	a citation issued to the person by a peace officer under Article
268	268	14.06, Code of Criminal Procedure, or by a fare enforcement officer
269	269	under Section 463.063, in connection with an offense relating to
270	270	the nonpayment of the appropriate fare for the use of the public
271	271	transportation system.
272	272	(g) It is an exception to the application of Subsection (d)
273	273	that on or before the 30th day after the date the authority notified
274	274	the person that the person is required to pay the amount of the fare
275	275	and any administrative fee assessed under Subsection (b), the
276	276	person:
277	277	(1) provided proof that the person paid the
278	278	appropriate fare at the time the person used the transportation
279	279	system or at a later date or that the person was exempt from
280	280	payment; and
281	281	(2) paid the administrative fee assessed under
282	282	Subsection (b), if applicable.
283	283	(h) An offense under Subsection (d) is:
284	284	(1) a misdemeanor punishable by a fine not to exceed
285	285	$100; and
286	286	(2) not a crime of moral turpitude.
287	287	(i) A justice court located in the territory of the
288	288	authority may enter into an agreement with the authority to try all
289	289	criminal cases that arise under Subsection (d). Notwithstanding
290	290	Articles 4.12 and 4.14, Code of Criminal Procedure, if a justice
291	291	court enters into an agreement with the authority:
292	292	(1) a criminal case that arises under Subsection (d)
293	293	must be tried in the justice court; and
294	294	(2) the justice court has exclusive jurisdiction in
295	295	all criminal cases that arise under Subsection (d).
296	296	Sec. 463.063. FARE ENFORCEMENT OFFICERS. (a) An authority
297	297	may employ or contract for persons to serve as fare enforcement
298	298	officers to enforce the payment of fares for use of the public
299	299	transportation system by:
300	300	(1) requesting and inspecting evidence showing
301	301	payment of the appropriate fare from a person using the public
302	302	transportation system; and
303	303	(2) issuing a citation to a person described by
304	304	Section 463.062(d).
305	305	(b) Before commencing duties as a fare enforcement officer,
306	306	a person must complete at least eight hours of training approved by
307	307	the authority that is appropriate to the duties required of a fare
308	308	enforcement officer.
309	309	(c) While performing duties, a fare enforcement officer
310	310	shall:
311	311	(1) wear a distinctive uniform, badge, or insignia
312	312	that identifies the person as a fare enforcement officer; and
313	313	(2) work under the direction of the authority's chief
314	314	administrative officer.
315	315	(d) A fare enforcement officer may:
316	316	(1) request evidence showing payment of the
317	317	appropriate fare from passengers of the public transportation
318	318	system or evidence showing exemption from the payment requirement;
319	319	(2) request personal identification or other
320	320	documentation designated by the authority from a passenger who does
321	321	not produce evidence showing payment of the appropriate fare on
322	322	request by the officer;
323	323	(3) instruct a passenger to immediately leave the
324	324	public transportation system if the passenger does not possess
325	325	evidence showing payment or exemption from payment of the
326	326	appropriate fare; or
327	327	(4) file a complaint in the appropriate court that
328	328	charges the person with an offense under Section 463.062(d).
329	329	(e) A fare enforcement officer may not carry a weapon while
330	330	performing duties under this section unless the officer is a
331	331	certified peace officer.
332	332	(f) A fare enforcement officer who is not a certified peace
333	333	officer is not a peace officer and has no authority to enforce a
334	334	criminal law, except as provided by this section.
335	335	Sec. 463.064. ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANE
336	336	USAGE. (a) An executive committee by resolution may regulate or
337	337	prohibit improper entrance into, exit from, and vehicle occupancy
338	338	in high occupancy vehicle lanes operated, managed, or maintained by
339	339	the authority.
340	340	(b) An executive committee by resolution may establish
341	341	reasonable and appropriate methods to enforce regulations or
342	342	prohibitions established under Subsection (a).
343	343	Sec. 463.065. INSURANCE. (a) An authority may insure,
344	344	through purchased insurance policies or self-insurance programs,
345	345	or both, the legal liability of the authority and of its contractors
346	346	and subcontractors arising from the acquisition, construction, or
347	347	operation of the programs and facilities of the authority for:
348	348	(1) personal or property damage; and
349	349	(2) officers' and employees' liability.
350	350	(b) An authority may use contracts, rating plans, and risk
351	351	management programs designed to encourage accident prevention.
352	352	(c) In developing an insurance or self-insurance program,
353	353	an authority may consider the peculiar hazards, indemnity
354	354	standards, and past and prospective loss and expense experience of
355	355	the authority and of its contractors and subcontractors.
356	356	Sec. 463.066. TAX EXEMPTION. The property, revenue, and
357	357	income of an authority are exempt from state and local taxes.
358	358	Sec. 463.067. MASS TRANSIT SYSTEM: REGULATORY EXEMPTION.
359	359	(a) An authority that constructs or operates or contracts with
360	360	another entity to construct or operate a rail mass transit system is
361	361	not subject to any state law regulating or governing the design,
362	362	construction, or operation of a railroad, railway, street railway,
363	363	streetcar, or interurban railway.
364	364	(b) For purposes of ownership or transfer of ownership of an
365	365	interest in real property, a rail mass transit system line
366	366	operating on property previously used by a railroad, railway,
367	367	street railway, or interurban railway is a continuation of existing
368	368	rail use.
369	369	Sec. 463.068. ELECTIONS. (a) In an election ordered by the
370	370	executive committee:
371	371	(1) the executive committee shall give notice of the
372	372	election by publication in a newspaper of general circulation in
373	373	the authority at least once each week for three consecutive weeks,
374	374	with the first publication occurring at least 21 days before the
375	375	date of election; and
376	376	(2) a resolution ordering the election and the
377	377	election notice must show, in addition to the requirements of the
378	378	Election Code, the hours of the election and polling places in
379	379	election precincts.
380	380	(b) Subsection (a) does not apply to an election under
381	381	Section 463.309.
382	382	(c) A copy of the notice of each election held under this
383	383	chapter shall be furnished to the Texas Transportation Commission
384	384	and the comptroller.
385	385	Sec. 463.069. ADDITIONAL FEE. (a) In addition to a toll or
386	386	other charge imposed under Section 367.011 or other law, an entity
387	387	that operates an international bridge may impose a fee for the use
388	388	of the bridge as follows:
389	389	(1) $1 for passenger vehicles;
390	390	(2) $2 for commercial motor vehicles; and
391	391	(3) 25 cents for pedestrians.
392	392	(b) Before a fee may be imposed under this section, the
393	393	entity must enter into a written agreement with an authority
394	394	relating to the imposition and disposition of the fee. The
395	395	agreement must provide for collection of the fee by the entity and
396	396	remittance of the authority's portion of the fee to the authority
397	397	each month.
398	398	(c) Of the fees collected under this section:
399	399	(1) 25 percent shall be retained by the entity for
400	400	transportation projects or complementary transportation services;
401	401	(2) 50 percent shall be used for a rail mass transit
402	402	system; and
403	403	(3) 25 percent shall be used for regional high
404	404	capacity transit.
405	405	(d) The percentage described by Subsection (c)(3) may be
406	406	retained by the entity if:
407	407	(1) the entity is a mass transit provider; and
408	408	(2) mass transit was provided in the municipality in
409	409	which the international bridge is located on or before January 1,
410	410	2017.
411	411	SUBCHAPTER C. MANAGEMENT OF AUTHORITY
412	412	Sec. 463.101. POWERS AND AUTHORITY OF EXECUTIVE COMMITTEE.
413	413	(a) The executive committee may:
414	414	(1) employ and prescribe the compensation for a chief
415	415	executive officer whom the committee may designate as the general
416	416	manager or the executive director;
417	417	(2) appoint auditors and attorneys and prescribe their
418	418	duties, compensation, and tenure;
419	419	(3) adopt a seal for the authority;
420	420	(4) set the fiscal year for the authority;
421	421	(5) establish a complete system of accounts for the
422	422	authority;
423	423	(6) designate by resolution an authorized
424	424	representative of the authority to, according to terms prescribed
425	425	by the executive committee:
426	426	(A) invest authority funds; and
427	427	(B) withdraw money from authority accounts for
428	428	investments; and
429	429	(7) designate by resolution an authorized
430	430	representative of the authority to supervise the substitution of
431	431	securities pledged to secure authority funds.
432	432	(b) The executive committee is the local designated
433	433	recipient of funds committed to the authority by the federal
434	434	government.
435	435	Sec. 463.102. INVESTMENTS. The executive committee shall
436	436	invest authority funds in any investment authorized for an entity
437	437	under Chapter 2256, Government Code.
438	438	Sec. 463.103. DEPOSITORY; DEPOSIT OF FUNDS. (a) The
439	439	executive committee shall designate one or more banks as
440	440	depositories for authority funds.
441	441	(b) All funds of an authority that are not otherwise
442	442	invested shall be deposited in one or more of the authority's
443	443	depository banks unless otherwise required by an order or
444	444	resolution authorizing the issuance of an authority bond or note or
445	445	other contractual undertaking.
446	446	(c) Funds in a depository, to the extent that those funds
447	447	are not insured by the Federal Deposit Insurance Corporation, shall
448	448	be secured in the manner provided by law for the security of county
449	449	funds.
450	450	Sec. 463.104. CHIEF EXECUTIVE: DUTIES. (a) The general
451	451	manager or executive director shall administer the daily operation
452	452	of an authority.
453	453	(b) In conformity with the policy of the executive
454	454	committee, the general manager or executive director may:
455	455	(1) employ persons to conduct the affairs of the
456	456	authority, including any operating or management company; and
457	457	(2) remove any employee.
458	458	(c) The general manager or executive director shall
459	459	prescribe the duties, tenure, and compensation of each person
460	460	employed.
461	461	Sec. 463.105. RULES. (a) The executive committee by
462	462	resolution may adopt rules for the:
463	463	(1) safe and efficient operation and maintenance of
464	464	the public transportation system;
465	465	(2) use of the public transportation system and the
466	466	authority's services by the public and the payment of fares, tolls,
467	467	and other charges; and
468	468	(3) regulation of privileges on property owned,
469	469	leased, or otherwise controlled by the authority.
470	470	(b) The authority shall encourage to the maximum extent
471	471	feasible the participation of private enterprise.
472	472	(c) A notice of each rule adopted by the executive committee
473	473	shall be published in a newspaper with general circulation in the
474	474	area in which the authority is located once each week for two
475	475	consecutive weeks after adoption of the rule. The notice must
476	476	contain a condensed statement of the substance of the rule and must
477	477	advise that a copy of the complete text of the rule is filed in the
478	478	principal office of the authority where the text may be read by any
479	479	person.
480	480	(d) A rule becomes effective 10 days after the date of the
481	481	second publication of the notice under this section.
482	482	Sec. 463.106. PURCHASES: COMPETITIVE BIDDING. (a) Except
483	483	as provided by Subsection (c) and as otherwise provided by this
484	484	chapter, an authority may not award a contract for construction,
485	485	services, or property, other than real property, except through the
486	486	solicitation of competitive sealed bids or proposals ensuring full
487	487	and open competition.
488	488	(b) The authority shall describe in a solicitation each
489	489	factor to be used to evaluate a bid or proposal and give the
490	490	factor's relative importance.
491	491	(c) The executive committee may authorize the negotiation
492	492	of a contract without competitive sealed bids or proposals if:
493	493	(1) the aggregate amount involved in the contract is
494	494	less than the greater of:
495	495	(A) $50,000; or
496	496	(B) the amount of an expenditure under a contract
497	497	that would require a municipality to comply with Section
498	498	252.021(a), Local Government Code;
499	499	(2) the contract is for construction for which not
500	500	more than one bid or proposal is received;
501	501	(3) the contract is for services or property for which
502	502	there is only one source or for which it is otherwise impracticable
503	503	to obtain competition;
504	504	(4) the contract is to respond to an emergency for
505	505	which the public exigency does not permit the delay incident to the
506	506	competitive process;
507	507	(5) the contract is for personal or professional
508	508	services or services for which competitive bidding is precluded by
509	509	law;
510	510	(6) the contract, without regard to form and which may
511	511	include bonds, notes, loan agreements, or other obligations, is for
512	512	the purpose of borrowing money or is a part of a transaction
513	513	relating to the borrowing of money, including:
514	514	(A) a credit support agreement, such as a line or
515	515	letter of credit or other debt guaranty;
516	516	(B) a bond, note, debt sale or purchase, trustee,
517	517	paying agent, remarketing agent, indexing agent, or similar
518	518	agreement;
519	519	(C) an agreement with a securities dealer,
520	520	broker, or underwriter; and
521	521	(D) any other contract or agreement considered by
522	522	the executive committee to be appropriate or necessary in support
523	523	of the authority's financing activities;
524	524	(7) the contract is for work that is performed and paid
525	525	for by the day as the work progresses;
526	526	(8) the contract is for the lease or purchase of an
527	527	interest in land;
528	528	(9) the contract is for the purchase of personal
529	529	property sold:
530	530	(A) at an auction by a state licensed auctioneer;
531	531	(B) at a going out of business sale held in
532	532	compliance with Subchapter F, Chapter 17, Business & Commerce Code;
533	533	or
534	534	(C) by a political subdivision of this state, a
535	535	state agency, or an entity of the federal government;
536	536	(10) the contract is for services performed by persons
537	537	who are blind or have severe disabilities;
538	538	(11) the contract is for the purchase of electricity;
539	539	(12) the contract is one for an authority project and
540	540	awarded for alternate project delivery using the procedures under
541	541	Subchapters E, F, G, and I, Chapter 2269, Government Code; or
542	542	(13) the contract is for fare enforcement officer
543	543	services under Section 463.063.
544	544	(d) For the purposes of entering into a contract authorized
545	545	by Subsection (c)(12), an authority is considered a "governmental
546	546	entity" as described by Section 2269.002, Government Code.
547	547	Sec. 463.107. DURATION OF CONTRACTS. An authority may
548	548	contract for payment with debt obligations and for performance and
549	549	payments to extend longer than one fiscal year if the contract
550	550	provides for the discharge of the authority's contractual
551	551	obligations by any method, including:
552	552	(1) committing current year funds or cancellation
553	553	charges; and
554	554	(2) making the contract subject to the future
555	555	availability of funds.
556	556	Sec. 463.108. SECURITY. The executive committee may
557	557	establish a security force and provide for the employment of
558	558	security personnel.
559	559	Sec. 463.109. BUDGET RECOMMENDATIONS. The executive
560	560	committee shall make a proposed annual budget available to the
561	561	commissioners courts of the counties in the authority at least 30
562	562	days before the date of the adoption by the executive committee of
563	563	the final annual budget.
564	564	Sec. 463.110. FINANCIAL AUDITS. (a) The executive
565	565	committee of an authority shall have an annual audit of the affairs
566	566	of the authority prepared by an independent certified public
567	567	accountant or a firm of independent certified public accountants.
568	568	(b) The final audit report is open to public inspection.
569	569	SUBCHAPTER D. STATION OR TERMINAL COMPLEX SYSTEMS
570	570	Sec. 463.151. STATION OR TERMINAL COMPLEX: SYSTEM PLAN.
571	571	(a) An authority may not acquire an interest in real property for a
572	572	station or terminal complex unless the station or terminal complex
573	573	is included in the public transportation system in a comprehensive
574	574	service plan approved by a resolution of the executive committee. A
575	575	mass transit facility of an authority is not a station or terminal
576	576	complex under this subchapter unless the facility is included in
577	577	the authority's comprehensive service plan under this section.
578	578	(b) A station or terminal complex may not be included in a
579	579	public transportation system unless the executive committee first
580	580	finds that the station or complex:
581	581	(1) will encourage and provide for efficient and
582	582	economical public transportation;
583	583	(2) will facilitate access to public transportation
584	584	and provide for other public transportation purposes;
585	585	(3) will reduce vehicular congestion and air
586	586	pollution; and
587	587	(4) is reasonably essential to the successful
588	588	operation of the public transportation system.
589	589	(c) On making a finding under Subsection (b), the executive
590	590	committee may amend the authority's comprehensive service plan to
591	591	include a station or terminal complex.
592	592	Sec. 463.152. STATION OR TERMINAL COMPLEX: FACILITIES. A
593	593	station or terminal complex of an authority:
594	594	(1) must include adequate provisions for the transfer
595	595	of passengers among the various means of transportation available
596	596	to the complex; and
597	597	(2) may include provisions for residential,
598	598	institutional, recreational, commercial, and industrial
599	599	facilities.
600	600	Sec. 463.153. STATION OR TERMINAL COMPLEX: LOCATION. An
601	601	authority shall determine the location of a station or terminal
602	602	complex after notice and a hearing.
603	603	Sec. 463.154. TRANSFER OF REAL PROPERTY IN STATION OR
604	604	TERMINAL COMPLEX. (a) An authority may transfer to any person by
605	605	any means, including sale or lease, an interest in real property in
606	606	a station or terminal complex and may contract with respect to it,
607	607	in accordance with the comprehensive service plan approved by the
608	608	executive committee, and subject to terms:
609	609	(1) the executive committee finds to be in the public
610	610	interest or necessary to carry out this section; and
611	611	(2) specified in the instrument transferring the title
612	612	or right of use.
613	613	(b) A transfer must be at the fair value of the interest
614	614	transferred considering the use designated for the real property in
615	615	the authority's comprehensive service plan.
616	616	SUBCHAPTER E. BONDS
617	617	Sec. 463.201. DEFINITION. In this subchapter, "bond"
618	618	includes a note.
619	619	Sec. 463.202. POWER TO ISSUE BONDS. An authority may issue
620	620	bonds at any time and for any amounts it considers necessary or
621	621	appropriate for:
622	622	(1) the acquisition, construction, repair, equipping,
623	623	improvement, or extension of its public transportation system; or
624	624	(2) creating or funding self-insurance or retirement
625	625	or pension fund reserves.
626	626	Sec. 463.203. BOND TERMS. An authority's bonds are fully
627	627	negotiable. An authority may make the bonds redeemable before
628	628	maturity at the price and subject to the terms and conditions that
629	629	are provided in the authority's resolution authorizing the bonds.
630	630	Sec. 463.204. SALE. An authority's bonds may be sold at a
631	631	public or private sale as determined by the executive committee to
632	632	be the more advantageous.
633	633	Sec. 463.205. APPROVAL; REGISTRATION. (a) An authority's
634	634	bonds and the records relating to their issuance shall be submitted
635	635	to the attorney general for examination before the bonds may be
636	636	delivered.
637	637	(b) If the attorney general finds that the bonds have been
638	638	issued in conformity with the constitution and this chapter and
639	639	that the bonds will be a binding obligation of the issuing
640	640	authority, the attorney general shall approve the bonds.
641	641	(c) After the bonds are approved by the attorney general,
642	642	the comptroller shall register the bonds.
643	643	Sec. 463.206. INCONTESTABILITY. Bonds are incontestable
644	644	after they are:
645	645	(1) approved by the attorney general;
646	646	(2) registered by the comptroller; and
647	647	(3) sold and delivered to the purchaser.
648	648	Sec. 463.207. SECURITY PLEDGED. (a) To secure the payment
649	649	of an authority's bonds, the authority may:
650	650	(1) pledge any part of the revenue of the public
651	651	transportation system;
652	652	(2) mortgage any part of the public transportation
653	653	system, including any part of the system subsequently acquired;
654	654	(3) pledge all or part of funds the federal government
655	655	has committed to the authority as grants in aid; and
656	656	(4) provide that a pledge of revenue described by
657	657	Subdivision (1) is a first lien or charge against that revenue.
658	658	(b) Under Subsection (a)(2) an authority may, subject to the
659	659	terms of the bond indenture or the resolution authorizing the
660	660	issuance of the bonds, encumber a separate item of the public
661	661	transportation system and acquire, use, hold, or contract for the
662	662	property by lease, chattel mortgage, or other conditional sale
663	663	including an equipment trust transaction.
664	664	(c) An authority may not issue bonds secured by ad valorem
665	665	tax revenue.
666	666	(d) An authority is not prohibited by this subchapter from
667	667	encumbering one or more public transportation systems to purchase,
668	668	construct, extend, or repair one or more other public
669	669	transportation systems of the authority.
670	670	(e) The authority may pledge funds described by Subsection
671	671	(a)(3):
672	672	(1) as the sole security for the bonds; or
673	673	(2) in addition to any other security described by
674	674	this section.
675	675	Sec. 463.208. USE OF REVENUE. Revenue in excess of amounts
676	676	pledged under Section 463.207(a)(1) shall be used to:
677	677	(1) pay the expenses of operation and maintenance of a
678	678	public transportation system, including salaries, labor,
679	679	materials, and repairs necessary to provide efficient service and
680	680	every other proper item of expense; and
681	681	(2) fund operating reserves.
682	682	Sec. 463.209. REFUNDING BONDS. An authority may issue
683	683	refunding bonds for the purposes and in the manner authorized by
684	684	general law, including Chapter 1207, Government Code.
685	685	Sec. 463.210. BONDS AS AUTHORIZED INVESTMENTS. (a) An
686	686	authority's bonds are authorized investments for:
687	687	(1) a bank;
688	688	(2) a savings bank;
689	689	(3) a trust company;
690	690	(4) a savings and loan association; and
691	691	(5) an insurance company.
692	692	(b) The bonds, when accompanied by all appurtenant,
693	693	unmatured coupons and to the extent of the lesser of their face
694	694	value or market value, are eligible to secure the deposit of public
695	695	funds of this state, a political subdivision of this state, and any
696	696	other political corporation of this state.
697	697	Sec. 463.211. EXCHANGE OF BONDS FOR EXISTING SYSTEM. An
698	698	authority's revenue bonds may be exchanged, instead of cash, for
699	699	the property of all or part of an existing public transportation
700	700	system to be acquired by the authority. If the property is owned by
701	701	a corporation that will dissolve simultaneously with the exchange,
702	702	the authority may acquire the stock of the corporation.
703	703	Sec. 463.212. TAX EXEMPTION. The interest on bonds issued
704	704	by an authority is exempt from state and local taxes.
705	705	SUBCHAPTER F. EXECUTIVE COMMITTEE
706	706	Sec. 463.251. COMPOSITION. (a) The executive committee of
707	707	an authority is the board of directors of the regional planning
708	708	commission established for the area of the authority under Chapter
709	709	391, Local Government Code.
710	710	(b) Service on the executive committee by a public officer
711	711	or employee is an additional duty of the office or employment.
712	712	Sec. 463.252. OFFICERS. (a) The officers elected by the
713	713	board of directors of the regional planning commission described by
714	714	Section 463.251(a) shall serve as the officers of the executive
715	715	committee.
716	716	(b) The executive committee may appoint, as necessary,
717	717	members or nonmembers as assistant secretaries.
718	718	(c) The secretary or assistant secretary shall:
719	719	(1) keep permanent records of each proceeding and
720	720	transaction of the authority; and
721	721	(2) perform other duties assigned by the executive
722	722	committee.
723	723	Sec. 463.253. CONFLICTS OF INTEREST. Members of the
724	724	executive committee and officers of the authority are subject to
725	725	Chapter 171, Local Government Code.
726	726	Sec. 463.254. MEETINGS. (a) The executive committee shall
727	727	hold at least one regular meeting each month to transact the
728	728	business of an authority.
729	729	(b) On written notice, the presiding officer may call
730	730	special meetings as necessary.
731	731	(c) The executive committee by resolution shall:
732	732	(1) set the time, place, and day of the regular
733	733	meetings; and
734	734	(2) adopt rules and bylaws as necessary to conduct
735	735	meetings.
736	736	Sec. 463.255. VOTING REQUIREMENTS. A majority of the
737	737	members of the executive committee constitutes a quorum, and when a
738	738	quorum is present, action may be taken by a majority vote of the
739	739	members present unless the bylaws require a larger number for a
740	740	particular action.
741	741	SUBCHAPTER G. CREATION OF AUTHORITIES
742	742	Sec. 463.301. CREATION OF AUTHORITY AUTHORIZED. The board
743	743	of directors of the regional planning commission established for
744	744	the area included in the boundaries of the counties to which this
745	745	chapter applies may initiate the process to create a regional
746	746	transit authority to provide public transportation services within
747	747	the boundaries of the counties.
748	748	Sec. 463.302. INITIATING ORDER OR RESOLUTION: CONTENTS.
749	749	To initiate the process of creating an authority, the board of
750	750	directors described by Section 463.301 must adopt a resolution or
751	751	order containing the designation of each time and place for holding
752	752	public hearings on the proposal to create the authority.
753	753	Sec. 463.303. NOTICE OF HEARING. (a) Notice of the time
754	754	and place of the public hearings on the creation of the authority
755	755	shall be published, beginning at least 30 days before the date of
756	756	the hearing, once a week for two consecutive weeks in a newspaper of
757	757	general circulation in each county.
758	758	(b) The board of directors described by Section 463.301
759	759	shall give a copy of the notice to the Texas Transportation
760	760	Commission and the comptroller.
761	761	Sec. 463.304. CONDUCT OF HEARING. (a) The board of
762	762	directors described by Section 463.301 creating an authority shall
763	763	conduct public hearings on the creation.
764	764	(b) Any person may appear at a hearing and offer evidence
765	765	on:
766	766	(1) the creation of the authority;
767	767	(2) the operation of a public transportation system;
768	768	(3) the public utility and public interest served in
769	769	the creation of an authority; or
770	770	(4) other facts bearing on the creation of an
771	771	authority.
772	772	(c) A hearing may be continued until completed.
773	773	Sec. 463.305. RESOLUTION OR ORDER. (a) After hearing the
774	774	evidence presented at the hearings, but not earlier than 75 days
775	775	after the date the process is initiated by the board of directors
776	776	described by Section 463.301, the board may adopt a resolution or
777	777	order:
778	778	(1) designating the name of the authority; and
779	779	(2) authorizing the appointment of the interim
780	780	executive committee.
781	781	(b) After the hearing, the results of the hearing shall be
782	782	sent to the Texas Department of Transportation and the comptroller.
783	783	Sec. 463.306. INTERIM EXECUTIVE COMMITTEE. (a) The
784	784	interim executive committee is composed as provided by Section
785	785	463.251 for an executive committee except that the interim
786	786	executive committee must include an additional member who is a
787	787	member of the board of directors of a commuter rail district
788	788	described by Chapter 174.
789	789	(b) The interim executive committee, after its
790	790	organization, shall develop a service plan.
791	791	(c) Service on the interim executive committee by a public
792	792	officer or employee is an additional duty of the office or
793	793	employment.
794	794	Sec. 463.307. APPROVAL OF SERVICE PLAN. Not later than the
795	795	45th day after the date the interim executive committee approves
796	796	the service plan, the commissioners court of each county creating
797	797	an authority must approve, by resolution or order, the service
798	798	plan.
799	799	Sec. 463.308. NOTICE OF INTENT TO ORDER ELECTION. Not
800	800	earlier than the 61st day after the date the interim executive
801	801	committee approves a service plan, the interim executive committee
802	802	shall notify the commissioners court of each county included in the
803	803	boundaries of the authority of the interim executive committee's
804	804	intention to call a confirmation election.
805	805	Sec. 463.309. CONFIRMATION ELECTION. The interim executive
806	806	committee in ordering the confirmation election shall submit to the
807	807	qualified voters of each county in the authority the following
808	808	proposition: "Shall the creation of (name of authority) be
809	809	confirmed?"
810	810	Sec. 463.310. CONDUCT OF ELECTION. The interim executive
811	811	committee shall canvass the returns and declare the results of the
812	812	election separately with respect to each county.
813	813	Sec. 463.311. RESULTS OF ELECTION; ORDER. (a) The
814	814	authority is confirmed if a majority of the votes received in each
815	815	county favor the proposition.
816	816	(b) If the authority continues, the interim executive
817	817	committee shall record the results in its minutes and adopt an
818	818	order:
819	819	(1) declaring that the creation of the authority is
820	820	confirmed;
821	821	(2) stating the date of the election;
822	822	(3) containing the proposition; and
823	823	(4) showing the number of votes cast for or against the
824	824	proposition in each county.
825	825	(c) A certified copy of the order shall be filed with:
826	826	(1) the Texas Department of Transportation; and
827	827	(2) the comptroller.
828	828	(d) If the authority does not continue, the interim
829	829	executive committee shall enter an order declaring that the result
830	830	of votes cast at the election is that the authority ceases in its
831	831	entirety. The order shall be filed with the Texas Department of
832	832	Transportation and the comptroller, and the authority is dissolved.
833	833	Sec. 463.312. EFFECT OF CREATION. On the creation of an
834	834	authority the boundaries of which overlap the territory of a
835	835	commuter rail district described by Chapter 174, the commuter rail
836	836	district is dissolved, and all assets, including property, and all
837	837	liabilities, including debt and other obligations, of the commuter
838	838	rail district transfer to and are assumed by the authority.
839	839	Sec. 463.313. COST OF ELECTION. The board of directors
840	840	described by Section 463.301 creating an authority shall pay the
841	841	cost of the confirmation election.
842	842	Sec. 463.314. EXPIRATION OF UNCONFIRMED AUTHORITY. An
843	843	authority that has not been confirmed expires on the third
844	844	anniversary of the effective date of a resolution or order
845	845	initiating the process to create the authority.
846	846	SECTION 2. Section 174.051, Transportation Code, is amended
847	847	by adding Subsection (c) to read as follows:
848	848	(c) Notwithstanding Subsections (a) and (b), a district may
849	849	not be created in the boundaries of a regional transit authority
850	850	under Chapter 463.
851	851	SECTION 3. Sections 463.058(c) and (f) and Section 463.059,
852	852	Transportation Code, as added by Section 1 of this Act, take effect
853	853	only if this Act receives a two-thirds vote of all the members
854	854	elected to each house.
855	855	SECTION 4. This Act takes effect immediately if it receives
856	856	a vote of two-thirds of all the members elected to each house, as
857	857	provided by Section 39, Article III, Texas Constitution. If this
858	858	Act does not receive the vote necessary for immediate effect, this
859	859	Act takes effect September 1, 2017.