Texas 2019 - 86th Regular

Texas Senate Bill SB1721 Compare Versions

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1	1	86R933 MTB-D
2	2	By: Lucio S.B. No. 1721
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 in 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) In this subsection, "telecommunications provider" has
183	183	the meaning assigned by Section 51.002, Utilities Code.
184	184	Notwithstanding Subsection (a), an authority may not relocate the
185	185	property of a telecommunications provider on behalf of the provider
186	186	without the provider's permission. An authority shall reimburse a
187	187	telecommunications provider for the cost of the relocation if
188	188	provided by this section or other law.
189	189	(g) Subsections (e) and (f) do not apply if the power of
190	190	eminent domain is exercised.
191	191	Sec. 463.059. EMINENT DOMAIN PROCEEDINGS. (a) An eminent
192	192	domain proceeding by an authority is initiated by the adoption by
193	193	the executive committee of a resolution, after notice and a
194	194	hearing, that:
195	195	(1) describes the property interest to be acquired by
196	196	the authority;
197	197	(2) declares the public necessity for and interest in
198	198	the acquisition; and
199	199	(3) states that the acquisition is necessary and
200	200	proper for the construction, extension, improvement, or
201	201	development of the public transportation system.
202	202	(b) A resolution adopted under this section is conclusive
203	203	evidence of the public necessity for the acquisition described in
204	204	the resolution and that the property interest is necessary for
205	205	public use.
206	206	(c) Except as otherwise provided by this chapter, Chapter
207	207	21, Property Code, applies to an eminent domain proceeding by an
208	208	authority.
209	209	Sec. 463.060. AGREEMENT WITH UTILITIES; CARRIERS. An
210	210	authority may agree with any other public or private utility,
211	211	communication system, common carrier, or transportation system
212	212	for:
213	213	(1) the joint use in the authority of the property of
214	214	the agreeing entities; or
215	215	(2) the establishment of through routes, joint fares,
216	216	or transfers of passengers.
217	217	Sec. 463.061. FARES AND OTHER CHARGES. (a) An authority
218	218	shall impose reasonable and nondiscriminatory fares, tolls,
219	219	charges, rents, and other compensation for the use of the public
220	220	transportation system sufficient to produce revenue, together with
221	221	grants received by the authority, in an amount adequate to:
222	222	(1) pay all expenses necessary to operate and maintain
223	223	the public transportation system;
224	224	(2) pay when due the principal of and interest on, and
225	225	sinking fund and reserve fund payments agreed to be made with
226	226	respect to, all bonds that are issued by the authority and payable
227	227	wholly or partly from the revenue; and
228	228	(3) fulfill the terms of any other agreement with the
229	229	holders of bonds described by Subdivision (2) or with a person
230	230	acting on behalf of the bondholders.
231	231	(b) It is intended by this chapter that the compensation
232	232	imposed under Subsection (a) not exceed the amounts necessary to
233	233	produce revenue sufficient to meet the obligations of the authority
234	234	under this chapter.
235	235	(c) Compensation for the use of the public transportation
236	236	system may be set according to a zone system or to another
237	237	classification that the authority determines to be reasonable.
238	238	(d) The state agrees with holders of bonds issued under this
239	239	chapter not to alter the power given to an authority under this
240	240	section to impose fares, tolls, charges, rents, and other
241	241	compensation in amounts sufficient to comply with Subsection (a),
242	242	or to impair the rights and remedies of an authority bondholder, or
243	243	a person acting on behalf of a bondholder, until the bonds, interest
244	244	on the bonds, interest on unpaid installments of interest, costs
245	245	and expenses in connection with an action or proceeding by or on
246	246	behalf of a bondholder, and other obligations of the authority in
247	247	connection with the bonds are discharged.
248	248	Sec. 463.062. ENFORCEMENT OF FARES AND OTHER CHARGES;
249	249	PENALTIES. (a) The executive committee by resolution may prohibit
250	250	the use of the public transportation system by a person without
251	251	payment of the appropriate fare for the use of the system and may
252	252	establish reasonable and appropriate methods to ensure that persons
253	253	using the public transportation system pay the appropriate fare for
254	254	that use.
255	255	(b) The executive committee by resolution may provide that a
256	256	fare for or charge for the use of the public transportation system
257	257	that is not paid incurs a reasonable administrative fee.
258	258	(c) An authority shall post signs designating each area in
259	259	which a person is prohibited from using the transportation system
260	260	without payment of the appropriate fare.
261	261	(d) A person commits an offense if the person or another for
262	262	whom the person is criminally responsible under Section 7.02, Penal
263	263	Code, uses the public transportation system without paying the
264	264	appropriate fare. An offense under this section is:
265	265	(1) a misdemeanor punishable by a fine not to exceed
266	266	$100; and
267	267	(2) not a crime of moral turpitude.
268	268	(e) If the person fails to provide proof that the person
269	269	paid the appropriate fare for the use of the public transportation
270	270	system and fails to pay any administrative fee assessed under
271	271	Subsection (b) on or before the 30th day after the date the
272	272	authority notifies the person that the person is required to pay the
273	273	amount of the fare and the administrative fee, it is prima facie
274	274	evidence that the person used the public transportation system
275	275	without paying the appropriate fare.
276	276	(f) The notice required by Subsection (e) may be included in
277	277	a citation issued to the person by a peace officer under Article
278	278	14.06, Code of Criminal Procedure, or by a fare enforcement officer
279	279	under Section 463.063, in connection with an offense relating to
280	280	the nonpayment of the appropriate fare for the use of the public
281	281	transportation system.
282	282	(g) It is an exception to the application of Subsection (d)
283	283	that on or before the 30th day after the date the authority notified
284	284	the person that the person is required to pay the amount of the fare
285	285	and any administrative fee assessed under Subsection (b), the
286	286	person:
287	287	(1) provided proof that the person paid the
288	288	appropriate fare at the time the person used the public
289	289	transportation system or at a later date or that the person was
290	290	exempt from payment; and
291	291	(2) paid the administrative fee assessed under
292	292	Subsection (b), if applicable.
293	293	(h) A justice court located in the territory of the
294	294	authority may enter into an agreement with the authority to try all
295	295	criminal cases that arise under Subsection (d). Notwithstanding
296	296	Articles 4.12 and 4.14, Code of Criminal Procedure, if a justice
297	297	court enters into an agreement with the authority:
298	298	(1) a criminal case that arises under Subsection (d)
299	299	must be tried in the justice court; and
300	300	(2) the justice court has exclusive jurisdiction in
301	301	all criminal cases that arise under Subsection (d).
302	302	Sec. 463.063. FARE ENFORCEMENT OFFICERS. (a) An authority
303	303	may employ or contract for persons to serve as fare enforcement
304	304	officers to enforce the payment of fares for use of the public
305	305	transportation system by:
306	306	(1) requesting and inspecting evidence showing
307	307	payment of the appropriate fare from a person using the public
308	308	transportation system; and
309	309	(2) issuing a citation to a person described by
310	310	Section 463.062(d).
311	311	(b) Before commencing duties as a fare enforcement officer,
312	312	a person must complete at least eight hours of training approved by
313	313	the authority that is appropriate to the duties required of a fare
314	314	enforcement officer.
315	315	(c) While performing duties, a fare enforcement officer
316	316	shall:
317	317	(1) wear a distinctive uniform, badge, or insignia
318	318	that identifies the person as a fare enforcement officer; and
319	319	(2) work under the direction of the authority's chief
320	320	executive officer.
321	321	(d) A fare enforcement officer may:
322	322	(1) request evidence showing payment of the
323	323	appropriate fare from passengers of the public transportation
324	324	system or evidence showing exemption from the payment requirement;
325	325	(2) request personal identification or other
326	326	documentation designated by the authority from a passenger who does
327	327	not produce evidence showing payment of the appropriate fare on
328	328	request by the officer;
329	329	(3) instruct a passenger to immediately leave the
330	330	public transportation system if the passenger does not possess
331	331	evidence showing payment or exemption from payment of the
332	332	appropriate fare; or
333	333	(4) file a complaint in the appropriate court that
334	334	charges the person with an offense under Section 463.062(d).
335	335	(e) A fare enforcement officer may not carry a weapon while
336	336	performing duties under this section unless the officer is a
337	337	certified peace officer.
338	338	(f) A fare enforcement officer who is not a certified peace
339	339	officer is not a peace officer and has no authority to enforce a
340	340	criminal law, except as provided by this section.
341	341	Sec. 463.064. ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANE
342	342	USAGE. (a) The executive committee by resolution may regulate or
343	343	prohibit improper entrance into, exit from, and vehicle occupancy
344	344	in high occupancy vehicle lanes operated, managed, or maintained by
345	345	the authority.
346	346	(b) The executive committee by resolution may establish
347	347	reasonable and appropriate methods to enforce regulations or
348	348	prohibitions established under Subsection (a).
349	349	Sec. 463.065. INSURANCE. (a) An authority may insure,
350	350	through purchased insurance policies or self-insurance programs,
351	351	or both, the legal liability of the authority and of its contractors
352	352	and subcontractors arising from the acquisition, construction, or
353	353	operation of the programs and facilities of the authority for:
354	354	(1) personal or property damage; and
355	355	(2) officers' and employees' liability.
356	356	(b) An authority may use contracts, rating plans, and risk
357	357	management programs designed to encourage accident prevention.
358	358	(c) In developing an insurance or self-insurance program,
359	359	an authority may consider the peculiar hazards, indemnity
360	360	standards, and past and prospective loss and expense experience of
361	361	the authority and of its contractors and subcontractors.
362	362	Sec. 463.066. TAX EXEMPTION. The property, revenue, and
363	363	income of an authority are exempt from state and local taxes.
364	364	Sec. 463.067. CONTINUATION OF EXISTING RAIL USE. For
365	365	purposes of ownership or transfer of ownership of an interest in
366	366	real property, a rail mass transit system line operating on
367	367	property previously used by a railroad, railway, street railway, or
368	368	interurban railway is a continuation of existing 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:
396	396	(1) for collection of the fee by the entity and
397	397	remittance of the authority's portion of the fee to the authority
398	398	each month; and
399	399	(2) if more than one entity operates an international
400	400	bridge, for the division of the amount described by Subsection
401	401	(c)(1) among the entities.
402	402	(c) Of the fees collected under this section:
403	403	(1) 25 percent shall be retained by the entity for
404	404	transportation projects or complementary transportation services;
405	405	(2) 50 percent shall be used for a rail mass transit
406	406	system; and
407	407	(3) 25 percent shall be used for regional high
408	408	capacity transit.
409	409	(d) The percentage described by Subsection (c)(3) may be
410	410	retained by the entity if:
411	411	(1) the entity is a mass transit provider; and
412	412	(2) mass transit was provided in the municipality in
413	413	which the international bridge is located on or before January 1,
414	414	2019.
415	415	SUBCHAPTER C. MANAGEMENT OF AUTHORITY
416	416	Sec. 463.101. POWERS AND AUTHORITY OF EXECUTIVE COMMITTEE.
417	417	(a) The executive committee may:
418	418	(1) employ and prescribe the compensation for a chief
419	419	executive officer whom the committee may designate as the general
420	420	manager or the executive director;
421	421	(2) appoint auditors and attorneys and prescribe their
422	422	duties, compensation, and tenure;
423	423	(3) adopt a seal for the authority;
424	424	(4) set the fiscal year for the authority;
425	425	(5) establish a complete system of accounts for the
426	426	authority;
427	427	(6) designate by resolution an authorized
428	428	representative of the authority to, according to terms prescribed
429	429	by the executive committee:
430	430	(A) invest authority funds; and
431	431	(B) withdraw money from authority accounts for
432	432	investments; and
433	433	(7) designate by resolution an authorized
434	434	representative of the authority to supervise the substitution of
435	435	securities pledged to secure authority funds.
436	436	(b) The executive committee is the local designated
437	437	recipient of funds committed to the authority by the federal
438	438	government.
439	439	Sec. 463.102. INVESTMENTS. The executive committee shall
440	440	invest authority funds in any investment authorized for an entity
441	441	under Chapter 2256, Government Code.
442	442	Sec. 463.103. DEPOSITORY; DEPOSIT OF FUNDS. (a) The
443	443	executive committee shall designate one or more banks as
444	444	depositories for authority funds.
445	445	(b) An authority shall deposit all funds of the authority
446	446	that are not otherwise invested in one or more of the authority's
447	447	depository banks unless otherwise required by an order or
448	448	resolution authorizing the issuance of an authority bond or note or
449	449	other contractual undertaking.
450	450	(c) Funds in a depository, to the extent that those funds
451	451	are not insured by the Federal Deposit Insurance Corporation, shall
452	452	be secured in the manner provided by law for the security of county
453	453	funds.
454	454	Sec. 463.104. CHIEF EXECUTIVE OFFICER: DUTIES. (a) The
455	455	general manager or executive director, as designated under Section
456	456	463.101(a)(1), shall administer the daily operation of an
457	457	authority.
458	458	(b) In conformity with the policy of the executive
459	459	committee, the general manager or executive director may:
460	460	(1) employ persons to conduct the affairs of the
461	461	authority, including any operating or management company; and
462	462	(2) remove any employee.
463	463	(c) The general manager or executive director shall
464	464	prescribe the duties, tenure, and compensation of each person
465	465	employed.
466	466	Sec. 463.105. RULES. (a) The executive committee by
467	467	resolution may adopt rules for the:
468	468	(1) safe and efficient operation and maintenance of
469	469	the public transportation system;
470	470	(2) use of the public transportation system and the
471	471	authority's services by the public and the payment of fares, tolls,
472	472	and other charges; and
473	473	(3) regulation of privileges on property owned,
474	474	leased, or otherwise controlled by the authority.
475	475	(b) The authority shall encourage to the maximum extent
476	476	feasible the participation of private enterprise.
477	477	(c) A notice of each rule adopted by the executive committee
478	478	shall be published in a newspaper with general circulation in the
479	479	area in which the authority is located once each week for two
480	480	consecutive weeks after adoption of the rule. The notice must
481	481	contain a condensed statement of the substance of the rule and must
482	482	advise that a copy of the complete text of the rule is filed in the
483	483	principal office of the authority where the text may be read by any
484	484	person.
485	485	(d) A rule becomes effective 10 days after the date of the
486	486	second publication of the notice under this section.
487	487	Sec. 463.106. PURCHASES: COMPETITIVE BIDDING. (a) Except
488	488	as provided by Subsection (c) and as otherwise provided by this
489	489	chapter, an authority may not award a contract for construction,
490	490	services, or property, other than real property, except through the
491	491	solicitation of competitive sealed bids or proposals ensuring full
492	492	and open competition.
493	493	(b) The authority shall describe in a solicitation each
494	494	factor to be used to evaluate a bid or proposal and give the
495	495	factor's relative importance.
496	496	(c) The executive committee may authorize the negotiation
497	497	of a contract without competitive sealed bids or proposals if:
498	498	(1) the aggregate amount involved in the contract is
499	499	less than the greater of:
500	500	(A) $50,000; or
501	501	(B) the amount of an expenditure under a contract
502	502	that would require a municipality to comply with Section
503	503	252.021(a), Local Government Code;
504	504	(2) the contract is for construction for which not
505	505	more than one bid or proposal is received;
506	506	(3) the contract is for services or property for which
507	507	there is only one source or for which it is otherwise impracticable
508	508	to obtain competition;
509	509	(4) the contract is to respond to an emergency for
510	510	which the public exigency does not permit the delay incident to the
511	511	competitive process;
512	512	(5) the contract is for personal or professional
513	513	services or services for which competitive bidding is precluded by
514	514	law;
515	515	(6) the contract, without regard to form and which may
516	516	include bonds, notes, loan agreements, or other obligations, is for
517	517	the purpose of borrowing money or is a part of a transaction
518	518	relating to the borrowing of money, including:
519	519	(A) a credit support agreement, such as a line or
520	520	letter of credit or other debt guaranty;
521	521	(B) a bond, note, debt sale or purchase, trustee,
522	522	paying agent, remarketing agent, indexing agent, or similar
523	523	agreement;
524	524	(C) an agreement with a securities dealer,
525	525	broker, or underwriter; and
526	526	(D) any other contract or agreement considered by
527	527	the executive committee to be appropriate or necessary in support
528	528	of the authority's financing activities;
529	529	(7) the contract is for work that is performed and paid
530	530	for by the day as the work progresses;
531	531	(8) the contract is for the lease or purchase of an
532	532	interest in land;
533	533	(9) the contract is for the purchase of personal
534	534	property sold:
535	535	(A) at an auction by a state licensed auctioneer;
536	536	(B) at a going out of business sale held in
537	537	compliance with Subchapter F, Chapter 17, Business & Commerce Code;
538	538	or
539	539	(C) by a political subdivision of this state, a
540	540	state agency, or an entity of the federal government;
541	541	(10) the contract is for services performed by persons
542	542	who are blind or have severe disabilities;
543	543	(11) the contract is for the purchase of electricity;
544	544	(12) the contract is one for an authority project and
545	545	awarded for alternate project delivery using the procedures under
546	546	Subchapters E, F, G, and I, Chapter 2269, Government Code; or
547	547	(13) the contract is for fare enforcement officer
548	548	services under Section 463.063.
549	549	(d) For the purposes of entering into a contract authorized
550	550	by Subsection (c)(12), an authority is considered a "governmental
551	551	entity" as described by Section 2269.002, Government Code.
552	552	Sec. 463.107. DURATION OF CONTRACTS. An authority may
553	553	contract for payment with debt obligations and for performance and
554	554	payments to extend longer than one fiscal year if the contract
555	555	provides for the discharge of the authority's contractual
556	556	obligations by any method, including:
557	557	(1) committing current year funds or cancellation
558	558	charges; and
559	559	(2) making the contract subject to the future
560	560	availability of funds.
561	561	Sec. 463.108. SECURITY. The executive committee may
562	562	establish a security force and provide for the employment of
563	563	security personnel.
564	564	Sec. 463.109. BUDGET RECOMMENDATIONS. The executive
565	565	committee shall make a proposed annual budget available to the
566	566	commissioners courts of the counties in the authority at least 30
567	567	days before the date of the adoption by the executive committee of
568	568	the final annual budget.
569	569	Sec. 463.110. FINANCIAL AUDITS. (a) The executive
570	570	committee of an authority shall have an annual audit of the affairs
571	571	of the authority prepared by an independent certified public
572	572	accountant or a firm of independent certified public accountants.
573	573	(b) The final audit report is open to public inspection.
574	574	SUBCHAPTER D. STATION OR TERMINAL COMPLEX SYSTEMS
575	575	Sec. 463.151. STATION OR TERMINAL COMPLEX: SYSTEM PLAN.
576	576	(a) An authority may not acquire an interest in real property for a
577	577	station or terminal complex unless the station or terminal complex
578	578	is included in the public transportation system in a comprehensive
579	579	service plan approved by a resolution of the executive committee. A
580	580	mass transit facility of an authority is not a station or terminal
581	581	complex under this subchapter unless the facility is included in
582	582	the authority's comprehensive service plan under this section.
583	583	(b) A station or terminal complex may not be included in a
584	584	public transportation system unless the executive committee first
585	585	finds that the station or complex:
586	586	(1) will encourage and provide for efficient and
587	587	economical public transportation;
588	588	(2) will facilitate access to public transportation
589	589	and provide for other public transportation purposes;
590	590	(3) will reduce vehicular congestion and air
591	591	pollution; and
592	592	(4) is reasonably essential to the successful
593	593	operation of the public transportation system.
594	594	(c) On making a finding under Subsection (b), the executive
595	595	committee may amend the authority's comprehensive service plan to
596	596	include a station or terminal complex.
597	597	Sec. 463.152. STATION OR TERMINAL COMPLEX: FACILITIES. A
598	598	station or terminal complex of an authority:
599	599	(1) must include adequate provisions for the transfer
600	600	of passengers among the various means of transportation available
601	601	to the complex; and
602	602	(2) may include provisions for residential,
603	603	institutional, recreational, commercial, and industrial
604	604	facilities.
605	605	Sec. 463.153. STATION OR TERMINAL COMPLEX: LOCATION. An
606	606	authority shall determine the location of a station or terminal
607	607	complex after notice and a hearing.
608	608	Sec. 463.154. TRANSFER OF REAL PROPERTY IN STATION OR
609	609	TERMINAL COMPLEX. (a) An authority may transfer to any person by
610	610	any means, including sale or lease, an interest in real property in
611	611	a station or terminal complex and may contract with respect to it,
612	612	in accordance with the comprehensive service plan approved by the
613	613	executive committee, and subject to terms:
614	614	(1) the executive committee finds to be in the public
615	615	interest or necessary to carry out this section; and
616	616	(2) specified in the instrument transferring the title
617	617	or right of use.
618	618	(b) A transfer must be at the fair value of the interest
619	619	transferred considering the use designated for the real property in
620	620	the authority's comprehensive service plan.
621	621	SUBCHAPTER E. BONDS
622	622	Sec. 463.201. DEFINITION. In this subchapter, "bond"
623	623	includes a note.
624	624	Sec. 463.202. POWER TO ISSUE BONDS. (a) An authority may
625	625	issue bonds at any time and for any amounts it considers necessary
626	626	or appropriate for:
627	627	(1) the acquisition, construction, repair, equipping,
628	628	improvement, or extension of its public transportation system; or
629	629	(2) creating or funding self-insurance or retirement
630	630	or pension fund reserves.
631	631	(b) An authority may exercise the powers granted to the
632	632	governing body of an issuer in connection with the issuance of
633	633	obligations and the execution of credit agreements under Chapter
634	634	1371, Government Code.
635	635	Sec. 463.203. BOND TERMS. (a) An authority's bonds are
636	636	fully negotiable. An authority may make the bonds redeemable
637	637	before maturity at the price and subject to the terms that are
638	638	provided in the authority's resolution authorizing the bonds. The
639	639	authority's resolution authorizing the bonds may contain any other
640	640	terms the executive committee considers appropriate.
641	641	(b) A bond issued under this subchapter is not a debt or
642	642	pledge of the faith and credit of the state, a political subdivision
643	643	included in the boundaries of the authority, or any other political
644	644	subdivision of the state.
645	645	(c) Each bond issued by an authority under this subchapter
646	646	must contain on its face a statement substantially to the effect
647	647	that:
648	648	(1) the state, a political subdivision included in the
649	649	boundaries of the authority, or any other political subdivision of
650	650	the state is not obligated to pay the principal of or the interest
651	651	on the bond; and
652	652	(2) the faith and credit and taxing power of the state,
653	653	a political subdivision included in the boundaries of the
654	654	authority, or any other political subdivision of the state are not
655	655	pledged to the payment of the principal of or the interest on the
656	656	bond.
657	657	Sec. 463.204. SALE. An authority's bonds may be sold at a
658	658	public or private sale as determined by the executive committee to
659	659	be the more advantageous.
660	660	Sec. 463.205. APPROVAL; REGISTRATION. (a) An authority's
661	661	bonds and the records relating to their issuance shall be submitted
662	662	to the attorney general for examination before the bonds may be
663	663	delivered.
664	664	(b) If the attorney general finds that the bonds have been
665	665	issued in conformity with the constitution and this chapter and
666	666	that the bonds will be a binding obligation of the issuing
667	667	authority, the attorney general shall approve the bonds.
668	668	(c) After the bonds are approved by the attorney general,
669	669	the comptroller shall register the bonds.
670	670	Sec. 463.206. INCONTESTABILITY. Bonds are incontestable
671	671	after they are:
672	672	(1) approved by the attorney general;
673	673	(2) registered by the comptroller; and
674	674	(3) sold and delivered to the purchaser.
675	675	Sec. 463.207. SECURITY PLEDGED. (a) To secure the payment
676	676	of an authority's bonds, the authority may:
677	677	(1) pledge any part of the revenue of the public
678	678	transportation system;
679	679	(2) mortgage any part of the public transportation
680	680	system, including any part of the system subsequently acquired;
681	681	(3) pledge all or part of funds the federal government
682	682	has committed to the authority as grants in aid; and
683	683	(4) provide that a pledge of revenue described by
684	684	Subdivision (1) is a first or subordinate lien or charge against
685	685	that revenue.
686	686	(b) Under Subsection (a)(2), an authority may, subject to
687	687	the terms of the bond indenture or the resolution authorizing the
688	688	issuance of the bonds, encumber a separate item of the public
689	689	transportation system and acquire, use, hold, or contract for the
690	690	property by lease, chattel mortgage, or other conditional sale
691	691	including an equipment trust transaction.
692	692	(c) An authority may not issue bonds secured by ad valorem
693	693	tax revenue.
694	694	(d) An authority is not prohibited by this subchapter from
695	695	encumbering one or more public transportation systems to purchase,
696	696	construct, extend, or repair one or more other public
697	697	transportation systems of the authority.
698	698	(e) The authority may pledge funds described by Subsection
699	699	(a)(3):
700	700	(1) as the sole security for the bonds; or
701	701	(2) in addition to any other security described by
702	702	this section.
703	703	Sec. 463.208. USE OF REVENUE. Revenue in excess of amounts
704	704	pledged under Section 463.207(a)(1) shall be used to:
705	705	(1) pay the expenses of operation and maintenance of a
706	706	public transportation system, including salaries, labor,
707	707	materials, and repairs necessary to provide efficient service and
708	708	every other proper item of expense; and
709	709	(2) fund operating reserves.
710	710	Sec. 463.209. REFUNDING BONDS. An authority may issue
711	711	refunding bonds for the purposes and in the manner authorized by
712	712	general law, including Chapter 1207, Government Code.
713	713	Sec. 463.210. BONDS AS AUTHORIZED INVESTMENTS. (a) An
714	714	authority's bonds are authorized investments for:
715	715	(1) a bank;
716	716	(2) a savings bank;
717	717	(3) a trust company;
718	718	(4) a savings and loan association; and
719	719	(5) an insurance company.
720	720	(b) The bonds, when accompanied by all appurtenant,
721	721	unmatured coupons and to the extent of the lesser of their face
722	722	value or market value, are eligible to secure the deposit of public
723	723	funds of this state, a political subdivision of this state, and any
724	724	other political corporation of this state.
725	725	Sec. 463.211. EXCHANGE OF BONDS FOR EXISTING SYSTEM. An
726	726	authority's revenue bonds may be exchanged, instead of cash, for
727	727	the property of all or part of an existing public transportation
728	728	system to be acquired by the authority. If the property is owned by
729	729	a corporation that will dissolve simultaneously with the exchange,
730	730	the authority may acquire the stock of the corporation.
731	731	Sec. 463.212. TAX EXEMPTION. The interest on bonds issued
732	732	by an authority is exempt from state and local taxes.
733	733	SUBCHAPTER F. EXECUTIVE COMMITTEE
734	734	Sec. 463.251. COMPOSITION. (a) The executive committee of
735	735	an authority is the board of directors of the regional planning
736	736	commission established for the area of the authority under Chapter
737	737	391, Local Government Code.
738	738	(b) Service on the executive committee by a public officer
739	739	or employee is an additional duty of the office or employment.
740	740	Sec. 463.252. OFFICERS. (a) The officers elected by the
741	741	board of directors of the regional planning commission described by
742	742	Section 463.251(a) shall serve as the officers of the executive
743	743	committee.
744	744	(b) The executive committee may appoint, as necessary,
745	745	members or nonmembers as assistant secretaries.
746	746	(c) The secretary or assistant secretary shall:
747	747	(1) keep permanent records of each proceeding and
748	748	transaction of the authority; and
749	749	(2) perform other duties assigned by the executive
750	750	committee.
751	751	Sec. 463.253. CONFLICTS OF INTEREST. Members of the
752	752	executive committee and officers of the authority are subject to
753	753	Chapter 171, Local Government Code.
754	754	Sec. 463.254. MEETINGS. (a) The executive committee shall
755	755	hold at least one regular meeting each month to transact the
756	756	business of an authority.
757	757	(b) On written notice, the presiding officer may call
758	758	special meetings as necessary.
759	759	(c) The executive committee by resolution shall:
760	760	(1) set the time, place, and day of the regular
761	761	meetings; and
762	762	(2) adopt rules and bylaws as necessary to conduct
763	763	meetings.
764	764	Sec. 463.255. VOTING REQUIREMENTS. A majority of the
765	765	members of the executive committee constitutes a quorum, and when a
766	766	quorum is present, action may be taken by a majority vote of the
767	767	members present unless the bylaws require a larger number for a
768	768	particular action.
769	769	SUBCHAPTER G. CREATION OF AUTHORITIES
770	770	Sec. 463.301. CREATION OF AUTHORITY AUTHORIZED. The board
771	771	of directors of the regional planning commission established for
772	772	the area included in the boundaries of the counties to which this
773	773	chapter applies may initiate the process to create a regional
774	774	transit authority to provide public transportation services in the
775	775	boundaries of those counties.
776	776	Sec. 463.302. INITIATING ORDER OR RESOLUTION: CONTENTS.
777	777	To initiate the process of creating an authority, the board of
778	778	directors described by Section 463.301 must adopt a resolution or
779	779	order containing the designation of each time and place for holding
780	780	public hearings on the proposal to create the authority.
781	781	Sec. 463.303. NOTICE OF HEARING. (a) Notice of the time
782	782	and place of the public hearings on the creation of the authority
783	783	shall be published, beginning at least 30 days before the date of
784	784	the hearing, once a week for two consecutive weeks in a newspaper of
785	785	general circulation in each county.
786	786	(b) The board of directors described by Section 463.301
787	787	shall give a copy of the notice to the Texas Department of
788	788	Transportation and the comptroller.
789	789	Sec. 463.304. CONDUCT OF HEARING. (a) The board of
790	790	directors described by Section 463.301 creating an authority shall
791	791	conduct public hearings on the creation.
792	792	(b) Any person may appear at a hearing and offer evidence
793	793	on:
794	794	(1) the creation of the authority;
795	795	(2) the operation of a public transportation system;
796	796	(3) the public utility and public interest served in
797	797	the creation of an authority; or
798	798	(4) other facts bearing on the creation of an
799	799	authority.
800	800	(c) A hearing may be continued until completed.
801	801	Sec. 463.305. RESOLUTION OR ORDER. (a) After hearing the
802	802	evidence presented at the hearings, but not earlier than 75 days
803	803	after the date the process is initiated by the board of directors
804	804	described by Section 463.301, the board may adopt a resolution or
805	805	order:
806	806	(1) designating the name of the authority; and
807	807	(2) authorizing the appointment of the interim
808	808	executive committee.
809	809	(b) After the hearing, the results of the hearing shall be
810	810	sent to the Texas Department of Transportation and the comptroller.
811	811	Sec. 463.306. INTERIM EXECUTIVE COMMITTEE. (a) The
812	812	interim executive committee is composed as provided by Section
813	813	463.251 for an executive committee except that the interim
814	814	executive committee must include an additional member who is a
815	815	member of the board of directors of a commuter rail district
816	816	described by Chapter 174.
817	817	(b) The interim executive committee, after its
818	818	organization, shall develop a service plan.
819	819	(c) Service on the interim executive committee by a public
820	820	officer or employee is an additional duty of the office or
821	821	employment.
822	822	Sec. 463.307. APPROVAL OF SERVICE PLAN. Not later than the
823	823	45th day after the date the interim executive committee approves
824	824	the service plan, the commissioners court of each county creating
825	825	an authority must approve, by resolution or order, the service
826	826	plan.
827	827	Sec. 463.308. NOTICE OF INTENT TO CALL ELECTION. After
828	828	approval is received under Section 463.307, but not earlier than
829	829	the 61st day after the date the interim executive committee
830	830	approves a service plan, the interim executive committee shall
831	831	notify the commissioners court of each county included in the
832	832	boundaries of the authority of the interim executive committee's
833	833	intention to call a confirmation election.
834	834	Sec. 463.309. CONFIRMATION ELECTION. The interim executive
835	835	committee in calling the confirmation election shall submit to the
836	836	qualified voters of each county in the authority the following
837	837	proposition: "Shall the creation of (name of authority) be
838	838	confirmed?"
839	839	Sec. 463.310. CONDUCT OF ELECTION. The interim executive
840	840	committee shall canvass the returns and declare the results of the
841	841	election separately with respect to each county.
842	842	Sec. 463.311. RESULTS OF ELECTION; ORDER. (a) The
843	843	authority is confirmed if a majority of the votes received in each
844	844	county favor the proposition.
845	845	(b) If the authority continues, the interim executive
846	846	committee shall record the results in its minutes and adopt an
847	847	order:
848	848	(1) declaring that the creation of the authority is
849	849	confirmed;
850	850	(2) stating the date of the election;
851	851	(3) containing the proposition; and
852	852	(4) showing the number of votes cast for or against the
853	853	proposition in each county.
854	854	(c) A certified copy of the order shall be filed with the
855	855	Texas Department of Transportation and the comptroller.
856	856	(d) If the authority does not continue, the interim
857	857	executive committee shall enter an order declaring that the result
858	858	of votes cast at the election is that the authority ceases in its
859	859	entirety. The order shall be filed with the Texas Department of
860	860	Transportation and the comptroller, and the authority is dissolved.
861	861	Sec. 463.312. EFFECT OF CREATION ON COMMUTER RAIL DISTRICT.
862	862	On the creation of an authority the boundaries of which overlap the
863	863	territory of a commuter rail district described by Chapter 174, the
864	864	commuter rail district is dissolved, and all assets, including
865	865	property, and all liabilities, including debt and other
866	866	obligations, of the commuter rail district transfer to and are
867	867	assumed by the authority.
868	868	Sec. 463.313. COST OF ELECTION. The board of directors
869	869	described by Section 463.301 creating an authority shall pay the
870	870	cost of the confirmation election.
871	871	Sec. 463.314. EXPIRATION OF UNCONFIRMED AUTHORITY. An
872	872	authority that has not been confirmed expires on the third
873	873	anniversary of the effective date of a resolution or order
874	874	initiating the process to create the authority.
875	875	SECTION 2. Section 174.051, Transportation Code, is amended
876	876	by adding Subsection (c) to read as follows:
877	877	(c) Notwithstanding Subsections (a) and (b), a district may
878	878	not be created in the boundaries of a regional transit authority
879	879	under Chapter 463.
880	880	SECTION 3. Sections 463.058(c) and (g) and Section 463.059,
881	881	Transportation Code, as added by this Act, take effect only if this
882	882	Act receives a two-thirds vote of all the members elected to each
883	883	house.
884	884	SECTION 4. This Act takes effect immediately if it receives
885	885	a vote of two-thirds of all the members elected to each house, as
886	886	provided by Section 39, Article III, Texas Constitution. If this
887	887	Act does not receive the vote necessary for immediate effect, this
888	888	Act takes effect September 1, 2019.