Texas 2019 - 86th Regular

Texas House Bill HB71 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 71
	1	+	By: Martinez, Guillen (Senate Sponsor - Lucio) H.B. No. 71
	2	+	(In the Senate - Received from the House April 11, 2019;
	3	+	April 15, 2019, read first time and referred to Committee on
	4	+	Transportation; April 24, 2019, reported favorably by the
	5	+	following vote: Yeas 7, Nays 2; April 24, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the creation of regional transit authorities; granting
6	12		the power of eminent domain; providing authority to issue bonds and
7	13		charge fees; creating a criminal offense.
8	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	15		SECTION 1. Subtitle K, Title 6, Transportation Code, is
10	16		amended by adding Chapter 463 to read as follows:
11	17		CHAPTER 463. REGIONAL TRANSIT AUTHORITIES
12	18		SUBCHAPTER A. GENERAL PROVISIONS
13	19		Sec. 463.001. DEFINITIONS. In this chapter:
14	20		(1) "Authority" means a regional transit authority
15	21		created under this chapter.
16	22		(2) "Complementary transportation services" includes:
17	23		(A) special transportation services for a person
18	24		who is elderly or has a disability;
19	25		(B) medical transportation services;
20	26		(C) assistance in street modifications as
21	27		necessary to accommodate the public transportation system;
22	28		(D) construction of new general aviation
23	29		facilities or renovation or purchase of existing facilities not
24	30		served by certificated air carriers to relieve air traffic
25	31		congestion at existing facilities; and
26	32		(E) any other service that complements the public
27	33		transportation system, including providing parking garages.
28	34		(3) "Executive committee" means the authority
29	35		directors who serve as the governing body of the authority.
30	36		(4) "Mass transit system" means a system constructed
31	37		by an authority for the transportation of passengers and
32	38		hand-carried packages or baggage of a passenger by any means of
33	39		surface, overhead, or underground transportation, other than an
34	40		aircraft or taxicab. The term includes a rail system and services
35	41		coordinated with a transit system operated by a municipality.
36	42		(5) "Public transportation system" means:
37	43		(A) all property owned or held by an authority
38	44		for public transportation service purposes;
39	45		(B) real property, facilities, and equipment for
40	46		the protection and environmental enhancement of all the facilities;
41	47		and
42	48		(C) property held:
43	49		(i) in accordance with a contract with the
44	50		owner making the property subject to the control of or regulation by
45	51		the authority; and
46	52		(ii) for public transportation service
47	53		purposes.
48	54		(6) "Regional high capacity transit" means intercity
49	55		transit service designed to transport more people than typical,
50	56		local fixed-route bus service by using dedicated lanes or
51	57		rights-of-way or by having transit priority, including queue jumps
52	58		or traffic signal priority. The term includes bus rapid transit,
53	59		light rail, commuter rail, streetcars, high occupancy toll lanes,
54	60		or other fixed guideway operations.
55	61		(7) "Service plan" means an outline of the service
56	62		that would be provided by the authority to counties if confirmed at
57	63		an election.
58	64		Sec. 463.002. APPLICATION. This chapter applies to:
59	65		(1) a county that is contiguous to the Gulf of Mexico
60	66		or a bay or inlet opening into the gulf and that borders the United
61	67		Mexican States; and
62	68		(2) a county that borders a county described by
63	69		Subdivision (1).
64	70		Sec. 463.003. MUNICIPALITIES MAY PROVIDE TRANSPORTATION
65	71		SERVICES. This chapter does not prohibit a municipality from
66	72		providing public transportation services. An authority may
67	73		coordinate the provision of services with the municipality and
68	74		include the services provided by the municipality in the
69	75		authority's service plan.
70	76		SUBCHAPTER B. POWERS OF AUTHORITIES
71	77		Sec. 463.051. POWERS APPLICABLE TO CONFIRMED AUTHORITY.
72	78		This subchapter applies only to an authority that has been
73	79		confirmed.
74	80		Sec. 463.052. NATURE OF AUTHORITY. (a) An authority:
75	81		(1) is a public political entity and corporate body;
76	82		(2) has perpetual succession; and
77	83		(3) exercises public and essential governmental
78	84		functions.
79	85		(b) The exercise of a power granted by this chapter,
80	86		including a power relating to a station or terminal complex, is for
81	87		a public purpose and is a matter of public necessity.
82	88		(c) An authority is a governmental unit under Chapter 101,
83	89		Civil Practice and Remedies Code, and the operations of the
84	90		authority are not proprietary functions for any purpose including
85	91		the application of Chapter 101, Civil Practice and Remedies Code.
86	92		Sec. 463.053. RESPONSIBILITY FOR CONTROL OF AUTHORITY.
87	93		Except as provided by Section 463.104, the executive committee is
88	94		responsible for the management, operation, and control of an
89	95		authority and its property.
90	96		Sec. 463.054. GENERAL POWERS OF AUTHORITY. (a) An
91	97		authority has any power necessary or convenient to carry out this
92	98		chapter or to effect a purpose of this chapter.
93	99		(b) An authority may sue and be sued. An authority may not
94	100		be required to give security for costs in a suit brought or
95	101		prosecuted by the authority and may not be required to give a
96	102		supersedeas or cost bond in an appeal of a judgment.
97	103		(c) An authority may hold, use, sell, lease, dispose of, and
98	104		acquire, by any means, property and licenses, patents, rights, and
99	105		other interests necessary, convenient, or useful to the exercise of
100	106		any power under this chapter.
101	107		(d) An authority may sell, lease, or dispose of in another
102	108		manner:
103	109		(1) any right, interest, or property of the authority
104	110		that is not needed for, or, if a lease, is inconsistent with, the
105	111		efficient operation and maintenance of the public transportation
106	112		system; or
107	113		(2) at any time, surplus materials or other property
108	114		that is not needed for the requirements of the authority or for
109	115		carrying out a power under this chapter.
110	116		(e) An authority may leverage funds with a municipality that
111	117		provides public transportation services in the territory of the
112	118		authority to finance a project.
113	119		Sec. 463.055. CONTRACTS; GRANTS AND LOANS. (a) An
114	120		authority may contract with any person.
115	121		(b) An authority may accept a grant or loan from any person.
116	122		(c) An authority may enter one or more agreements with any
117	123		municipality included in the territory of the authority for the
118	124		distribution of the authority's revenues.
119	125		Sec. 463.056. OPERATION OF PUBLIC TRANSPORTATION SYSTEM.
120	126		(a) An authority may:
121	127		(1) acquire, construct, develop, plan, own, operate,
122	128		and maintain a public transportation system in the territory of the
123	129		authority, including in the territory of a political subdivision;
124	130		(2) contract with a municipality, county, or other
125	131		political subdivision for the authority to provide public
126	132		transportation services outside the authority; and
127	133		(3) lease all or a part of the public transportation
128	134		system to, or contract for the operation of all or a part of the
129	135		public transportation system by, an operator.
130	136		(b) An authority, as the authority determines advisable,
131	137		shall determine routes.
132	138		(c) The executive committee may submit a referendum for the
133	139		approval of a power granted by Subsection (a) or (b).
134	140		(d) A private operator who contracts with an authority under
135	141		this chapter is not a public entity for purposes of any law of this
136	142		state except that an independent contractor of the authority that
137	143		performs a function of the authority is liable for damages only to
138	144		the extent that the authority would be liable if the authority
139	145		itself were performing the function.
140	146		Sec. 463.057. ACQUISITION OF PROPERTY BY AGREEMENT. An
141	147		authority may acquire rolling stock or other property under a
142	148		contract or trust agreement, including a conditional sales
143	149		contract, lease, and equipment trust certificate.
144	150		Sec. 463.058. USE AND ACQUISITION OF PROPERTY OF OTHERS.
145	151		(a) For a purpose described by Section 463.056(a)(1) and as
146	152		necessary or useful in the construction, repair, maintenance, or
147	153		operation of the public transportation system, an authority may:
148	154		(1) use a public way, including an alley; and
149	155		(2) directly, or indirectly by another person,
150	156		relocate or reroute the property of another person or alter the
151	157		construction of the property of another person.
152	158		(b) For an act authorized by Subsection (a)(2), an authority
153	159		may contract with the owner of the property to allow the owner to
154	160		make the relocation, rerouting, or alteration by the owner's own
155	161		means or through a contractor of the owner. The contract may
156	162		provide for reimbursement of the owner for costs or payment to the
157	163		contractor.
158	164		(c) An authority may acquire by eminent domain any interest
159	165		in real property, including a fee simple interest, except the right
160	166		of eminent domain may not be exercised:
161	167		(1) in a municipality without the approval of each
162	168		proposed acquisition by the governing body of the municipality or
163	169		in an unincorporated area without the approval of each proposed
164	170		acquisition by the commissioners court of the county in which the
165	171		property to be condemned is located; or
166	172		(2) in a manner that would:
167	173		(A) unduly impair the existing neighborhood
168	174		character of property surrounding, or adjacent to, the property to
169	175		be condemned;
170	176		(B) unduly interfere with interstate commerce;
171	177		or
172	178		(C) authorize the authority to run an authority
173	179		vehicle on a railroad track that is used to transport property.
174	180		(d) If an authority, through the exercise of a power under
175	181		this chapter, makes necessary the relocation or rerouting of, or
176	182		alteration of the construction of, a road, alley, overpass,
177	183		underpass, railroad track, bridge, or associated property, an
178	184		electric, telegraph, telephone, or television cable line, conduit,
179	185		or associated property, or a water, sewer, gas, or other pipeline,
180	186		or associated property, the relocation or rerouting or alteration
181	187		of the construction must be accomplished at the sole cost and
182	188		expense of the authority, and damages that are incurred by an owner
183	189		of the property must be paid by the authority.
184	190		(e) An authority may not begin an activity authorized under
185	191		Subsection (a) to alter or damage property of others, including
186	192		this state or a political subdivision of this state, without having
187	193		first received the written permission of the owner.
188	194		(f) In this subsection, "telecommunications provider" has
189	195		the meaning assigned by Section 51.002, Utilities Code.
190	196		Notwithstanding Subsection (a), an authority may not relocate the
191	197		property of a telecommunications provider on behalf of the provider
192	198		without the provider's permission.
193	199		(g) Subsections (e) and (f) do not apply if the power of
194	200		eminent domain is exercised.
195	201		Sec. 463.059. EMINENT DOMAIN PROCEEDINGS. (a) An eminent
196	202		domain proceeding by an authority is initiated by the adoption by
197	203		the executive committee of a resolution, after notice and a
198	204		hearing, that:
199	205		(1) describes the property interest to be acquired by
200	206		the authority;
201	207		(2) declares the public necessity for and interest in
202	208		the acquisition; and
203	209		(3) states that the acquisition is necessary and
204	210		proper for the construction, extension, improvement, or
205	211		development of the public transportation system.
206	212		(b) A resolution adopted under this section and approved by
207	213		resolution of the appropriate municipal governing body or
208	214		commissioners court is conclusive evidence of the public necessity
209	215		for the acquisition described in the resolution and that the
210	216		property interest is necessary for public use.
211	217		(c) Except as otherwise provided by this chapter, Chapter
212	218		21, Property Code, applies to an eminent domain proceeding by an
213	219		authority.
214	220		Sec. 463.060. AGREEMENT WITH UTILITIES; CARRIERS. An
215	221		authority may agree with any other public or private utility,
216	222		communication system, common carrier, or transportation system
217	223		for:
218	224		(1) the joint use in the authority of the property of
219	225		the agreeing entities; or
220	226		(2) the establishment of through routes, joint fares,
221	227		or transfers of passengers.
222	228		Sec. 463.061. FARES AND OTHER CHARGES. (a) An authority
223	229		shall impose reasonable and nondiscriminatory fares, tolls,
224	230		charges, rents, and other compensation for the use of the public
225	231		transportation system sufficient to produce revenue, together with
226	232		grants received by the authority, in an amount adequate to:
227	233		(1) pay all expenses necessary to operate and maintain
228	234		the public transportation system;
229	235		(2) pay when due the principal of and interest on, and
230	236		sinking fund and reserve fund payments agreed to be made with
231	237		respect to, all bonds that are issued by the authority and payable
232	238		wholly or partly from the revenue; and
233	239		(3) fulfill the terms of any other agreement with the
234	240		holders of bonds described by Subdivision (2) or with a person
235	241		acting on behalf of the bondholders.
236	242		(b) It is intended by this chapter that the compensation
237	243		imposed under Subsection (a) not exceed the amounts necessary to
238	244		produce revenue sufficient to meet the obligations of the authority
239	245		under this chapter.
240	246		(c) Compensation for the use of the public transportation
241	247		system may be set according to a zone system or to another
242	248		classification that the authority determines to be reasonable.
243	249		(d) This section does not limit the state's power to
244	250		regulate fares, tolls, charges, or rents imposed by an authority or
245	251		other compensation authorized under this section. The state agrees
246	252		with holders of bonds issued under this chapter, however, not to
247	253		alter the power given to an authority under this section to impose
248	254		fares, tolls, charges, rents, and other compensation in amounts
249	255		sufficient to comply with Subsection (a), or to impair the rights
250	256		and remedies of an authority bondholder, or a person acting on
251	257		behalf of a bondholder, until the bonds, interest on the bonds,
252	258		interest on unpaid installments of interest, costs and expenses in
253	259		connection with an action or proceeding by or on behalf of a
254	260		bondholder, and other obligations of the authority in connection
255	261		with the bonds are discharged.
256	262		Sec. 463.062. ENFORCEMENT OF FARES AND OTHER CHARGES;
257	263		PENALTIES. (a) The executive committee by resolution may prohibit
258	264		the use of the public transportation system by a person without
259	265		payment of the appropriate fare for the use of the system and may
260	266		establish reasonable and appropriate methods to ensure that persons
261	267		using the public transportation system pay the appropriate fare for
262	268		that use.
263	269		(b) The executive committee by resolution may provide that a
264	270		fare for or charge for the use of the public transportation system
265	271		that is not paid incurs a reasonable administrative fee.
266	272		(c) An authority shall post signs designating each area in
267	273		which a person is prohibited from using the transportation system
268	274		without payment of the appropriate fare.
269	275		(d) A person commits an offense if the person or another for
270	276		whom the person is criminally responsible under Section 7.02, Penal
271	277		Code, uses the public transportation system without paying the
272	278		appropriate fare. An offense under this section is:
273	279		(1) a misdemeanor punishable by a fine not to exceed
274	280		$100; and
275	281		(2) not a crime of moral turpitude.
276	282		(e) If the person fails to provide proof that the person
277	283		paid the appropriate fare for the use of the public transportation
278	284		system and fails to pay any administrative fee assessed under
279	285		Subsection (b) on or before the 30th day after the date the
280	286		authority notifies the person that the person is required to pay the
281	287		amount of the fare and the administrative fee, it is prima facie
282	288		evidence that the person used the public transportation system
283	289		without paying the appropriate fare.
284	290		(f) The notice required by Subsection (e) may be included in
285	291		a citation issued to the person by a peace officer under Article
286	292		14.06, Code of Criminal Procedure, or by a fare enforcement officer
287	293		under Section 463.063, in connection with an offense relating to
288	294		the nonpayment of the appropriate fare for the use of the public
289	295		transportation system.
290	296		(g) It is an exception to the application of Subsection (d)
291	297		that on or before the 30th day after the date the authority notified
292	298		the person that the person is required to pay the amount of the fare
293	299		and any administrative fee assessed under Subsection (b), the
294	300		person:
295	301		(1) provided proof that the person paid the
296	302		appropriate fare at the time the person used the public
297	303		transportation system or at a later date or that the person was
298	304		exempt from payment; and
299	305		(2) paid the administrative fee assessed under
300	306		Subsection (b), if applicable.
301	307		(h) A justice court located in the territory of the
302	308		authority may enter into an agreement with the authority to try all
303	309		criminal cases that arise under Subsection (d). Notwithstanding
304	310		Articles 4.12 and 4.14, Code of Criminal Procedure, if a justice
305	311		court enters into an agreement with the authority:
306	312		(1) a criminal case that arises under Subsection (d)
307	313		must be tried in the justice court; and
308	314		(2) the justice court has exclusive jurisdiction in
309	315		all criminal cases that arise under Subsection (d).
310	316		Sec. 463.063. FARE ENFORCEMENT OFFICERS. (a) An authority
311	317		may employ or contract for persons to serve as fare enforcement
312	318		officers to enforce the payment of fares for use of the public
313	319		transportation system by:
314	320		(1) requesting and inspecting evidence showing
315	321		payment of the appropriate fare from a person using the public
316	322		transportation system; and
317	323		(2) issuing a citation to a person described by
318	324		Section 463.062(d).
319	325		(b) Before commencing duties as a fare enforcement officer,
320	326		a person must complete at least eight hours of training approved by
321	327		the authority that is appropriate to the duties required of a fare
322	328		enforcement officer.
323	329		(c) While performing duties, a fare enforcement officer
324	330		shall:
325	331		(1) wear a distinctive uniform, badge, or insignia
326	332		that identifies the person as a fare enforcement officer; and
327	333		(2) work under the direction of the authority's chief
328	334		executive officer.
329	335		(d) A fare enforcement officer may:
330	336		(1) request evidence showing payment of the
331	337		appropriate fare from passengers of the public transportation
332	338		system or evidence showing exemption from the payment requirement;
333	339		(2) request personal identification or other
334	340		documentation designated by the authority from a passenger who does
335	341		not produce evidence showing payment of the appropriate fare on
336	342		request by the officer;
337	343		(3) instruct a passenger to immediately leave the
338	344		public transportation system if the passenger does not possess
339	345		evidence showing payment or exemption from payment of the
340	346		appropriate fare; or
341	347		(4) file a complaint in the appropriate court that
342	348		charges the person with an offense under Section 463.062(d).
343	349		(e) A fare enforcement officer may not carry a weapon while
344	350		performing duties under this section unless the officer is a
345	351		certified peace officer.
346	352		(f) A fare enforcement officer who is not a certified peace
347	353		officer is not a peace officer and has no authority to enforce a
348	354		criminal law, except as provided by this section.
349	355		Sec. 463.064. ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANE
350	356		USAGE. (a) The executive committee by resolution may regulate or
351	357		prohibit improper entrance into, exit from, and vehicle occupancy
352	358		in high occupancy vehicle lanes operated, managed, or maintained by
353	359		the authority.
354	360		(b) The executive committee by resolution may establish
355	361		reasonable and appropriate methods to enforce regulations or
356	362		prohibitions established under Subsection (a).
357	363		Sec. 463.065. INSURANCE. (a) An authority may insure,
358	364		through purchased insurance policies or self-insurance programs,
359	365		or both, the legal liability of the authority and of its contractors
360	366		and subcontractors arising from the acquisition, construction, or
361	367		operation of the programs and facilities of the authority for:
362	368		(1) personal or property damage; and
363	369		(2) officers' and employees' liability.
364	370		(b) An authority may use contracts, rating plans, and risk
365	371		management programs designed to encourage accident prevention.
366	372		(c) In developing an insurance or self-insurance program,
367	373		an authority may consider the peculiar hazards, indemnity
368	374		standards, and past and prospective loss and expense experience of
369	375		the authority and of its contractors and subcontractors.
370	376		Sec. 463.066. TAX EXEMPTION. The property, revenue, and
371	377		income of an authority are exempt from state and local taxes.
372	378		Sec. 463.067. CONTINUATION OF EXISTING RAIL USE. For
373	379		purposes of ownership or transfer of ownership of an interest in
374	380		real property, a rail mass transit system line operating on
375	381		property previously used by a railroad, railway, street railway, or
376	382		interurban railway is a continuation of existing rail use.
377	383		Sec. 463.068. ELECTIONS. (a) In an election ordered by the
378	384		executive committee:
379	385		(1) the executive committee shall give notice of the
380	386		election by publication in a newspaper of general circulation in
381	387		the authority at least once each week for three consecutive weeks,
382	388		with the first publication occurring at least 21 days before the
383	389		date of election; and
384	390		(2) a resolution ordering the election and the
385	391		election notice must show, in addition to the requirements of the
386	392		Election Code, the hours of the election and polling places in
387	393		election precincts.
388	394		(b) Subsection (a) does not apply to an election under
389	395		Section 463.309.
390	396		(c) A copy of the notice of each election held under this
391	397		chapter shall be furnished to the Texas Transportation Commission
392	398		and the comptroller.
393	399		Sec. 463.069. ADDITIONAL FEE. (a) In addition to a toll or
394	400		other charge imposed under Section 367.011 or other law, an entity
395	401		that operates an international bridge may impose a fee for the use
396	402		of the bridge as follows:
397	403		(1) not more than $1 for passenger vehicles;
398	404		(2) not more than $2 for commercial motor vehicles;
399	405		and
400	406		(3) not more than 25 cents for pedestrians.
401	407		(b) Before a fee may be imposed under this section, the
402	408		entity must enter into a written agreement with an authority
403	409		relating to the imposition and disposition of the fee. The
404	410		agreement must provide:
405	411		(1) for collection of the fee by the entity and
406	412		remittance of the authority's portion of the fee to the authority
407	413		each month; and
408	414		(2) if more than one entity operates an international
409	415		bridge, for the division of the amount described by Subsection
410	416		(c)(1) among the entities.
411	417		(c) Of the fees collected under this section:
412	418		(1) 25 percent shall be retained by the entity for
413	419		transportation projects or complementary transportation services;
414	420		(2) 50 percent shall be used for a rail mass transit
415	421		system; and
416	422		(3) 25 percent shall be used for regional high
417	423		capacity transit.
418	424		(d) The percentage described by Subsection (c)(3) may be
419	425		retained by the entity if:
420	426		(1) the entity is a mass transit provider; and
421	427		(2) mass transit was provided in the municipality in
422	428		which the international bridge is located on or before January 1,
423	429		2019.
424	430		SUBCHAPTER C. MANAGEMENT OF AUTHORITY
425	431		Sec. 463.101. POWERS AND AUTHORITY OF EXECUTIVE COMMITTEE.
426	432		(a) The executive committee may:
427	433		(1) employ and prescribe the compensation for a chief
428	434		executive officer whom the committee may designate as the general
429	435		manager or the executive director;
430	436		(2) appoint auditors and attorneys and prescribe their
431	437		duties, compensation, and tenure;
432	438		(3) adopt a seal for the authority;
433	439		(4) set the fiscal year for the authority;
434	440		(5) establish a complete system of accounts for the
435	441		authority;
436	442		(6) designate by resolution an authorized
437	443		representative of the authority to, according to terms prescribed
438	444		by the executive committee:
439	445		(A) invest authority funds; and
440	446		(B) withdraw money from authority accounts for
441	447		investments; and
442	448		(7) designate by resolution an authorized
443	449		representative of the authority to supervise the substitution of
444	450		securities pledged to secure authority funds.
445	451		(b) The executive committee is the local designated
446	452		recipient of funds committed to the authority by the federal
447	453		government.
448	454		Sec. 463.102. INVESTMENTS. The executive committee shall
449	455		invest authority funds in any investment authorized for an entity
450	456		under Chapter 2256, Government Code.
451	457		Sec. 463.103. DEPOSITORY; DEPOSIT OF FUNDS. (a) The
452	458		executive committee shall designate one or more banks as
453	459		depositories for authority funds.
454	460		(b) An authority shall deposit all funds of the authority
455	461		that are not otherwise invested in one or more of the authority's
456	462		depository banks unless otherwise required by an order or
457	463		resolution authorizing the issuance of an authority bond or note or
458	464		other contractual undertaking.
459	465		(c) Funds in a depository, to the extent that those funds
460	466		are not insured by the Federal Deposit Insurance Corporation, shall
461	467		be secured in the manner provided by law for the security of county
462	468		funds.
463	469		Sec. 463.104. CHIEF EXECUTIVE OFFICER: DUTIES. (a) The
464	470		general manager or executive director, as designated under Section
465	471		463.101(a)(1), shall administer the daily operation of an
466	472		authority.
467	473		(b) In conformity with the policy of the executive
468	474		committee, the general manager or executive director may:
469	475		(1) employ persons to conduct the affairs of the
470	476		authority, including any operating or management company; and
471	477		(2) remove any employee.
472	478		(c) The general manager or executive director shall
473	479		prescribe the duties, tenure, and compensation of each person
474	480		employed.
475	481		Sec. 463.105. RULES. (a) The executive committee by
476	482		resolution may adopt rules for the:
477	483		(1) safe and efficient operation and maintenance of
478	484		the public transportation system;
479	485		(2) use of the public transportation system and the
480	486		authority's services by the public and the payment of fares, tolls,
481	487		and other charges; and
482	488		(3) regulation of privileges on property owned,
483	489		leased, or otherwise controlled by the authority.
484	490		(b) The authority shall encourage to the maximum extent
485	491		feasible the participation of private enterprise.
486	492		(c) A notice of each rule adopted by the executive committee
487	493		shall be published in a newspaper with general circulation in the
488	494		area in which the authority is located once each week for two
489	495		consecutive weeks after adoption of the rule. The notice must
490	496		contain a condensed statement of the substance of the rule and must
491	497		advise that a copy of the complete text of the rule is filed in the
492	498		principal office of the authority where the text may be read by any
493	499		person.
494	500		(d) A rule becomes effective 10 days after the date of the
495	501		second publication of the notice under this section.
496	502		Sec. 463.1055. PROCUREMENT RULES. (a) The executive
497	503		committee may adopt and enforce procurement procedures,
498	504		guidelines, and rules:
499	505		(1) defining the terms in and implementing Sections
500	506		463.106 and 463.107; or
501	507		(2) covering:
502	508		(A) the appointment of contracting officers;
503	509		(B) the solicitation for and award of contracts,
504	510		including the electronic transmission of bids and proposals and the
505	511		use of the reverse auction procedure, as defined by Section
506	512		2155.062, Government Code;
507	513		(C) the resolution of protests and contract
508	514		disputes;
509	515		(D) foreign currency transactions and
510	516		conversions and foreign exchange rate risk management; or
511	517		(E) other aspects of the procurement process for
512	518		domestic and international contracts.
513	519		(b) Sections 463.106 and 463.107 and the procedures,
514	520		guidelines, or rules adopted under this section confer no rights on
515	521		an actual or potential bidder, offeror, contractor, or other person
516	522		except as expressly stated in the procedures, guidelines, or rules.
517	523		(c) A procurement procedure, guideline, or rule covering
518	524		the electronic transmission of bids and proposals must provide:
519	525		(1) for the identification, security, and
520	526		confidentiality of an electronic bid or proposal;
521	527		(2) that an electronic bid or proposal is not required
522	528		to be sealed; and
523	529		(3) that an electronic bid or proposal remains
524	530		effectively unopened until the appropriate time.
525	531		Sec. 463.106. PURCHASES: COMPETITIVE BIDDING. (a) Except
526	532		as provided by Subsection (c) and as otherwise provided by this
527	533		chapter, an authority may not award a contract for construction,
528	534		services, or property, other than real property, except through the
529	535		solicitation of competitive sealed bids or proposals ensuring full
530	536		and open competition.
531	537		(b) The authority shall describe in a solicitation each
532	538		factor to be used to evaluate a bid or proposal and give the
533	539		factor's relative importance.
534	540		(c) The executive committee may authorize the negotiation
535	541		of a contract without competitive sealed bids or proposals if:
536	542		(1) the aggregate amount involved in the contract is
537	543		$50,000 or less;
538	544		(2) the contract is for construction for which not
539	545		more than one bid or proposal is received;
540	546		(3) the contract is for services or property for which
541	547		there is only one source or for which it is otherwise impracticable
542	548		to obtain competition;
543	549		(4) the contract is to respond to an emergency for
544	550		which the public exigency does not permit the delay incident to the
545	551		competitive process;
546	552		(5) the contract is for personal or professional
547	553		services or services for which competitive bidding is precluded by
548	554		law; or
549	555		(6) the contract, without regard to form and which may
550	556		include bonds, notes, loan agreements, or other obligations, is for
551	557		the purpose of borrowing money or is a part of a transaction
552	558		relating to the borrowing of money, including:
553	559		(A) a credit support agreement, such as a line or
554	560		letter of credit or other debt guaranty;
555	561		(B) a bond, note, debt sale or purchase, trustee,
556	562		paying agent, remarketing agent, indexing agent, or similar
557	563		agreement;
558	564		(C) an agreement with a securities dealer,
559	565		broker, or underwriter; and
560	566		(D) any other contract or agreement considered by
561	567		the executive committee to be appropriate or necessary in support
562	568		of the authority's financing activities.
563	569		Sec. 463.107. DURATION OF CONTRACTS. An authority may
564	570		contract for payment with debt obligations and for performance and
565	571		payments to extend longer than one fiscal year if the contract
566	572		provides for the discharge of the authority's contractual
567	573		obligations by any method, including:
568	574		(1) committing current year funds or cancellation
569	575		charges; and
570	576		(2) making the contract subject to the future
571	577		availability of funds.
572	578		Sec. 463.108. SECURITY. The executive committee may
573	579		establish a security force and provide for the employment of
574	580		security personnel.
575	581		Sec. 463.109. BUDGET RECOMMENDATIONS. The executive
576	582		committee shall make a proposed annual budget available to the
577	583		commissioners courts of the counties in the authority at least 30
578	584		days before the date of the adoption by the executive committee of
579	585		the final annual budget.
580	586		Sec. 463.110. FINANCIAL AUDITS. (a) The executive
581	587		committee of an authority shall have an annual audit of the affairs
582	588		of the authority prepared by an independent certified public
583	589		accountant or a firm of independent certified public accountants.
584	590		(b) The final audit report is open to public inspection.
585	591		SUBCHAPTER D. STATION OR TERMINAL COMPLEX SYSTEMS
586	592		Sec. 463.151. STATION OR TERMINAL COMPLEX: SYSTEM PLAN.
587	593		(a) An authority may not acquire an interest in real property for a
588	594		station or terminal complex unless the station or terminal complex
589	595		is included in the public transportation system in a comprehensive
590	596		service plan approved by a resolution of the executive committee. A
591	597		mass transit facility of an authority is not a station or terminal
592	598		complex under this subchapter unless the facility is included in
593	599		the authority's comprehensive service plan under this section.
594	600		(b) A station or terminal complex may not be included in a
595	601		public transportation system unless the executive committee first
596	602		finds that the station or complex:
597	603		(1) will encourage and provide for efficient and
598	604		economical public transportation;
599	605		(2) will facilitate access to public transportation
600	606		and provide for other public transportation purposes;
601	607		(3) will reduce vehicular congestion and air
602	608		pollution; and
603	609		(4) is reasonably essential to the successful
604	610		operation of the public transportation system.
605	611		(c) On making a finding under Subsection (b), the executive
606	612		committee may amend the authority's comprehensive service plan to
607	613		include a station or terminal complex.
608	614		Sec. 463.152. STATION OR TERMINAL COMPLEX: FACILITIES. A
609	615		station or terminal complex of an authority:
610	616		(1) must include adequate provisions for the transfer
611	617		of passengers among the various means of transportation available
612	618		to the complex; and
613	619		(2) may include provisions for residential,
614	620		institutional, recreational, commercial, and industrial
615	621		facilities.
616	622		Sec. 463.153. STATION OR TERMINAL COMPLEX: LOCATION. An
617	623		authority shall determine the location of a station or terminal
618	624		complex after notice and a hearing.
619	625		Sec. 463.1535. APPROVAL OF MUNICIPALITY. The location of a
620	626		station or terminal complex in a municipality or in the
621	627		extraterritorial jurisdiction of a municipality must be approved,
622	628		as to conformity with the comprehensive or general plan of the
623	629		municipality, by a motion, resolution, or ordinance adopted by the
624	630		governing body of the municipality.
625	631		Sec. 463.154. TRANSFER OF REAL PROPERTY IN STATION OR
626	632		TERMINAL COMPLEX. (a) An authority may transfer to any person by
627	633		any means, including sale or lease, an interest in real property in
628	634		a station or terminal complex and may contract with respect to it,
629	635		in accordance with the comprehensive service plan approved by the
630	636		executive committee, and subject to terms:
631	637		(1) the executive committee finds to be in the public
632	638		interest or necessary to carry out this section; and
633	639		(2) specified in the instrument transferring the title
634	640		or right of use.
635	641		(b) A transfer must be at the fair value of the interest
636	642		transferred considering the use designated for the real property in
637	643		the authority's comprehensive service plan.
638	644		SUBCHAPTER E. BONDS
639	645		Sec. 463.201. DEFINITION. In this subchapter, "bond"
640	646		includes a note.
641	647		Sec. 463.202. POWER TO ISSUE BONDS. (a) An authority may
642	648		issue bonds at any time and for any amounts it considers necessary
643	649		or appropriate for:
644	650		(1) the acquisition, construction, repair, equipping,
645	651		improvement, or extension of its public transportation system; or
646	652		(2) creating or funding self-insurance or retirement
647	653		or pension fund reserves.
648	654		(b) An authority may exercise the powers granted to the
649	655		governing body of an issuer in connection with the issuance of
650	656		obligations and the execution of credit agreements under Chapter
651	657		1371, Government Code.
652	658		(c) A bond that has a maturity longer than five years from
653	659		the date of issuance may not be issued by an authority until an
654	660		election has been held and the proposition proposing the issue has
655	661		been approved by a majority of the votes received on the issue.
656	662		(d) Subsection (c) does not apply to:
657	663		(1) refunding bonds;
658	664		(2) bonds described by Subsection (a)(2); or
659	665		(3) commercial paper notes having maturities of 270
660	666		days or less that are authorized to be issued and reissued from time
661	667		to time under a commercial paper program in a maximum principal
662	668		amount that the chief financial officer certifies, based on
663	669		reasonable estimates of pledged revenue, can be repaid in full
664	670		within five years after the date of authorization of the commercial
665	671		paper program, taking into consideration any other bonds or notes
666	672		having a prior or parity lien on the pledged revenue, regardless of
667	673		the final date of the commercial paper program.
668	674		(e) A commercial paper program described by Subsection
669	675		(d)(3) may not be continued beyond five years unless, before
670	676		issuing any note with a maturity exceeding five years from the date
671	677		of the initial authorization of the program or five years from the
672	678		date of any new certification, the chief financial officer provides
673	679		a new certification that the maximum principal amount of the
674	680		program, based on reasonable estimates of pledged revenue, can be
675	681		repaid in full within five years after the date of the most recent
676	682		new certification, taking into consideration any other bonds or
677	683		notes having a prior or parity lien on the pledged revenue.
678	684		Sec. 463.203. BOND TERMS. (a) An authority's bonds are
679	685		fully negotiable. An authority may make the bonds redeemable
680	686		before maturity at the price and subject to the terms that are
681	687		provided in the authority's resolution authorizing the bonds. The
682	688		authority's resolution authorizing the bonds may contain any other
683	689		terms the executive committee considers appropriate.
684	690		(b) A bond issued under this subchapter is not a debt or
685	691		pledge of the faith and credit of the state, a political subdivision
686	692		included in the boundaries of the authority, or any other political
687	693		subdivision of the state.
688	694		(c) Each bond issued by an authority under this subchapter
689	695		must contain on its face a statement substantially to the effect
690	696		that:
691	697		(1) the state, a political subdivision included in the
692	698		boundaries of the authority, or any other political subdivision of
693	699		the state is not obligated to pay the principal of or the interest
694	700		on the bond; and
695	701		(2) the faith and credit and taxing power of the state,
696	702		a political subdivision included in the boundaries of the
697	703		authority, or any other political subdivision of the state are not
698	704		pledged to the payment of the principal of or the interest on the
699	705		bond.
700	706		Sec. 463.204. SALE. An authority's bonds may be sold at a
701	707		public or private sale as determined by the executive committee to
702	708		be the more advantageous.
703	709		Sec. 463.205. APPROVAL; REGISTRATION. (a) An authority's
704	710		bonds and the records relating to their issuance shall be submitted
705	711		to the attorney general for examination before the bonds may be
706	712		delivered.
707	713		(b) If the attorney general finds that the bonds have been
708	714		issued in conformity with the constitution and this chapter and
709	715		that the bonds will be a binding obligation of the issuing
710	716		authority, the attorney general shall approve the bonds.
711	717		(c) After the bonds are approved by the attorney general,
712	718		the comptroller shall register the bonds.
713	719		Sec. 463.206. INCONTESTABILITY. Bonds are incontestable
714	720		after they are:
715	721		(1) approved by the attorney general;
716	722		(2) registered by the comptroller; and
717	723		(3) sold and delivered to the purchaser.
718	724		Sec. 463.207. SECURITY PLEDGED. (a) To secure the payment
719	725		of an authority's bonds, the authority may:
720	726		(1) pledge any part of the revenue of the public
721	727		transportation system;
722	728		(2) mortgage any part of the public transportation
723	729		system, including any part of the system subsequently acquired;
724	730		(3) pledge all or part of funds the federal government
725	731		has committed to the authority as grants in aid; and
726	732		(4) provide that a pledge of revenue described by
727	733		Subdivision (1) is a first or subordinate lien or charge against
728	734		that revenue.
729	735		(b) Under Subsection (a)(2), an authority may, subject to
730	736		the terms of the bond indenture or the resolution authorizing the
731	737		issuance of the bonds, encumber a separate item of the public
732	738		transportation system and acquire, use, hold, or contract for the
733	739		property by lease, chattel mortgage, or other conditional sale
734	740		including an equipment trust transaction.
735	741		(c) An authority may not issue bonds secured by ad valorem
736	742		tax revenue.
737	743		(d) An authority is not prohibited by this subchapter from
738	744		encumbering one or more public transportation systems to purchase,
739	745		construct, extend, or repair one or more other public
740	746		transportation systems of the authority.
741	747		(e) The authority may pledge funds described by Subsection
742	748		(a)(3):
743	749		(1) as the sole security for the bonds; or
744	750		(2) in addition to any other security described by
745	751		this section.
746	752		Sec. 463.208. USE OF REVENUE. Revenue in excess of amounts
747	753		pledged under Section 463.207(a)(1) shall be used to:
748	754		(1) pay the expenses of operation and maintenance of a
749	755		public transportation system, including salaries, labor,
750	756		materials, and repairs necessary to provide efficient service and
751	757		every other proper item of expense; and
752	758		(2) fund operating reserves.
753	759		Sec. 463.209. REFUNDING BONDS. An authority may issue
754	760		refunding bonds for the purposes and in the manner authorized by
755	761		general law, including Chapter 1207, Government Code.
756	762		Sec. 463.210. BONDS AS AUTHORIZED INVESTMENTS. (a) An
757	763		authority's bonds are authorized investments for:
758	764		(1) a bank;
759	765		(2) a savings bank;
760	766		(3) a trust company;
761	767		(4) a savings and loan association; and
762	768		(5) an insurance company.
763	769		(b) The bonds, when accompanied by all appurtenant,
764	770		unmatured coupons and to the extent of the lesser of their face
765	771		value or market value, are eligible to secure the deposit of public
766	772		funds of this state, a political subdivision of this state, and any
767	773		other political corporation of this state.
768	774		Sec. 463.211. EXCHANGE OF BONDS FOR EXISTING SYSTEM. An
769	775		authority's revenue bonds may be exchanged, instead of cash, for
770	776		the property of all or part of an existing public transportation
771	777		system to be acquired by the authority. If the property is owned by
772	778		a corporation that will dissolve simultaneously with the exchange,
773	779		the authority may acquire the stock of the corporation.
774	780		Sec. 463.212. TAX EXEMPTION. The interest on bonds issued
775	781		by an authority is exempt from state and local taxes.
776	782		SUBCHAPTER F. EXECUTIVE COMMITTEE
777	783		Sec. 463.251. COMPOSITION. (a) The executive committee of
778	784		an authority is the board of directors of the regional planning
779	785		commission established for the area of the authority under Chapter
780	786		391, Local Government Code.
781	787		(b) Service on the executive committee by a public officer
782	788		or employee is an additional duty of the office or employment.
783	789		Sec. 463.252. OFFICERS. (a) The officers elected by the
784	790		board of directors of the regional planning commission described by
785	791		Section 463.251(a) shall serve as the officers of the executive
786	792		committee.
787	793		(b) The executive committee may appoint, as necessary,
788	794		members or nonmembers as assistant secretaries.
789	795		(c) The secretary or assistant secretary shall:
790	796		(1) keep permanent records of each proceeding and
791	797		transaction of the authority; and
792	798		(2) perform other duties assigned by the executive
793	799		committee.
794	800		Sec. 463.253. CONFLICTS OF INTEREST. Members of the
795	801		executive committee and officers of the authority are subject to
796	802		Chapter 171, Local Government Code.
797	803		Sec. 463.254. MEETINGS. (a) The executive committee shall
798	804		hold at least one regular meeting each month to transact the
799	805		business of an authority.
800	806		(b) On written notice, the presiding officer may call
801	807		special meetings as necessary.
802	808		(c) The executive committee by resolution shall:
803	809		(1) set the time, place, and day of the regular
804	810		meetings; and
805	811		(2) adopt rules and bylaws as necessary to conduct
806	812		meetings.
807	813		Sec. 463.255. VOTING REQUIREMENTS. A majority of the
808	814		members of the executive committee constitutes a quorum, and when a
809	815		quorum is present, action may be taken by a majority vote of the
810	816		members present unless the bylaws require a larger number for a
811	817		particular action.
812	818		SUBCHAPTER G. CREATION OF AUTHORITIES
813	819		Sec. 463.301. CREATION OF AUTHORITY AUTHORIZED. The board
814	820		of directors of the regional planning commission established for
815	821		the area included in the boundaries of the counties to which this
816	822		chapter applies may initiate the process to create a regional
817	823		transit authority to provide public transportation services in the
818	824		boundaries of those counties.
819	825		Sec. 463.302. INITIATING ORDER OR RESOLUTION: CONTENTS.
820	826		To initiate the process of creating an authority, the board of
821	827		directors described by Section 463.301 must adopt a resolution or
822	828		order containing the designation of each time and place for holding
823	829		public hearings on the proposal to create the authority.
824	830		Sec. 463.303. NOTICE OF HEARING. (a) Notice of the time
825	831		and place of the public hearings on the creation of the authority
826	832		shall be published, beginning at least 30 days before the date of
827	833		the hearing, once a week for two consecutive weeks in a newspaper of
828	834		general circulation in each county.
829	835		(b) The board of directors described by Section 463.301
830	836		shall give a copy of the notice to the Texas Department of
831	837		Transportation and the comptroller.
832	838		Sec. 463.304. CONDUCT OF HEARING. (a) The board of
833	839		directors described by Section 463.301 creating an authority shall
834	840		conduct public hearings on the creation.
835	841		(b) Any person may appear at a hearing and offer evidence
836	842		on:
837	843		(1) the creation of the authority;
838	844		(2) the operation of a public transportation system;
839	845		(3) the public utility and public interest served in
840	846		the creation of an authority; or
841	847		(4) other facts bearing on the creation of an
842	848		authority.
843	849		(c) A hearing may be continued until completed.
844	850		Sec. 463.305. RESOLUTION OR ORDER. (a) After hearing the
845	851		evidence presented at the hearings, but not earlier than 75 days
846	852		after the date the process is initiated by the board of directors
847	853		described by Section 463.301, the board may adopt a resolution or
848	854		order:
849	855		(1) designating the name of the authority; and
850	856		(2) authorizing the appointment of the interim
851	857		executive committee.
852	858		(b) After the hearing, the results of the hearing shall be
853	859		sent to the Texas Department of Transportation and the comptroller.
854	860		Sec. 463.306. INTERIM EXECUTIVE COMMITTEE. (a) The
855	861		interim executive committee is composed as provided by Section
856	862		463.251 for an executive committee except that the interim
857	863		executive committee must include an additional member who is a
858	864		member of the board of directors of a commuter rail district
859	865		described by Chapter 174.
860	866		(b) The interim executive committee, after its
861	867		organization, shall develop a service plan.
862	868		(c) Service on the interim executive committee by a public
863	869		officer or employee is an additional duty of the office or
864	870		employment.
865	871		Sec. 463.307. APPROVAL OF SERVICE PLAN. Not later than the
866	872		45th day after the date the interim executive committee approves
867	873		the service plan, the commissioners court of each county creating
868	874		an authority must approve, by resolution or order, the service
869	875		plan.
870	876		Sec. 463.308. NOTICE OF INTENT TO CALL ELECTION. After
871	877		approval is received under Section 463.307, but not earlier than
872	878		the 61st day after the date the interim executive committee
873	879		approves a service plan, the interim executive committee shall
874	880		notify the commissioners court of each county included in the
875	881		boundaries of the authority of the interim executive committee's
876	882		intention to call a confirmation election.
877	883		Sec. 463.309. CONFIRMATION ELECTION. The interim executive
878	884		committee in calling the confirmation election shall submit to the
879	885		qualified voters of each county in the authority the following
880	886		proposition: "Shall the creation of (name of authority) be
881	887		confirmed?"
882	888		Sec. 463.310. CONDUCT OF ELECTION. The interim executive
883	889		committee shall canvass the returns and declare the results of the
884	890		election separately with respect to each county.
885	891		Sec. 463.311. RESULTS OF ELECTION; ORDER. (a) The
886	892		authority is confirmed if a majority of the votes received in each
887	893		county favor the proposition.
888	894		(b) If the authority continues, the interim executive
889	895		committee shall record the results in its minutes and adopt an
890	896		order:
891	897		(1) declaring that the creation of the authority is
892	898		confirmed;
893	899		(2) stating the date of the election;
894	900		(3) containing the proposition; and
895	901		(4) showing the number of votes cast for or against the
896	902		proposition in each county.
897	903		(c) A certified copy of the order shall be filed with the
898	904		Texas Department of Transportation and the comptroller.
899	905		(d) If the authority does not continue, the interim
900	906		executive committee shall enter an order declaring that the result
901	907		of votes cast at the election is that the authority ceases in its
902	908		entirety. The order shall be filed with the Texas Department of
903	909		Transportation and the comptroller, and the authority is dissolved.
904	910		Sec. 463.312. EFFECT OF CREATION ON COMMUTER RAIL DISTRICT.
905	911		On the creation of an authority the boundaries of which overlap the
906	912		territory of a commuter rail district described by Chapter 174, the
907	913		commuter rail district is dissolved, and all assets, including
908	914		property, and all liabilities, including debt and other
909	915		obligations, of the commuter rail district transfer to and are
910	916		assumed by the authority.
911	917		Sec. 463.313. COST OF ELECTION. The board of directors
912	918		described by Section 463.301 creating an authority shall pay the
913	919		cost of the confirmation election.
914	920		Sec. 463.314. EXPIRATION OF UNCONFIRMED AUTHORITY. An
915	921		authority that has not been confirmed expires on the third
916	922		anniversary of the effective date of a resolution or order
917	923		initiating the process to create the authority.
918	924		SECTION 2. Section 174.051, Transportation Code, is amended
919	925		by adding Subsection (c) to read as follows:
920	926		(c) Notwithstanding Subsections (a) and (b), a district may
921	927		not be created in the boundaries of a regional transit authority
922	928		under Chapter 463.
923	929		SECTION 3. Sections 463.058(c) and (g) and Section 463.059,
924	930		Transportation Code, as added by this Act, take effect only if this
925	931		Act receives a two-thirds vote of all the members elected to each
926	932		house.
927	933		SECTION 4. This Act takes effect immediately if it receives
928	934		a vote of two-thirds of all the members elected to each house, as
929	935		provided by Section 39, Article III, Texas Constitution. If this
930	936		Act does not receive the vote necessary for immediate effect, this
931	937		Act takes effect September 1, 2019.
932		-	______________________________ ______________________________
933		-	President of the Senate Speaker of the House
934		-	I certify that H.B. No. 71 was passed by the House on April 9,
935		-	2019, by the following vote: Yeas 108, Nays 37, 1 present, not
936		-	voting.
937		-	______________________________
938		-	Chief Clerk of the House
939		-	I certify that H.B. No. 71 was passed by the Senate on May 10,
940		-	2019, by the following vote: Yeas 21, Nays 10.
941		-	______________________________
942		-	Secretary of the Senate
943		-	APPROVED: _____________________
944		-	Date
945		-	_____________________
946		-	Governor
	938	+	* * * * *