H.B. No. 2800
1-1 AN ACT
1-2 relating to the powers and duties of certain regional
1-3 transportation authorities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 6(b), (c), (f), (g), and (h), Chapter
1-6 683, Acts of the 66th Legislature, 1979 (Article 1118y, Vernon's
1-7 Texas Civil Statutes), are amended to read as follows:
1-8 (b) An elected officer of the state or a political
1-9 subdivision of the state who is not prohibited by the Texas
1-10 Constitution from serving on the board is eligible, as an
1-11 additional duty of office, to serve on the board. An elected
1-12 officer who serves as a member is not entitled to receive
1-13 compensation for serving as a member but is entitled to
1-14 reimbursement for reasonable expenses incurred in performing duties
1-15 as a member of the board <The commissioners court of the county of
1-16 the principal city shall appoint one member>.
1-17 (c) The <remaining> members of the subregional board shall
1-18 be apportioned according to the ratio which the population of each
1-19 incorporated city bears to the total population of the territory
1-20 included within the subregion. Any combination of cities may
1-21 aggregate their <aggregating a total> population to <of 60,000
1-22 shall> be entitled to one member on the <interim> subregional
1-23 board. A city entitled to one or more members that has a
2-1 population that would entitle it to a fraction of another member
2-2 may aggregate its population with another city to appoint another
2-3 member. Cities aggregating their population to make an appointment
2-4 shall agree on a method of making the appointment. To serve on the
2-5 board, a person must be a resident of the city making the
2-6 appointment. A city making more than one appointment shall, to the
2-7 greatest extent practicable, select persons who accurately reflect
2-8 the racial and ethnic composition of that city. A city may not
2-9 aggregate its population with another city for the purpose of
2-10 minimizing the representation on the board of a racial or ethnic
2-11 minority. <Following the confirmation election, any combination of
2-12 cities who have voted confirmation of the authority may aggregate a
2-13 population of at least 60,000 for the purpose of appointing one
2-14 member to the initial subregional board. In establishing the
2-15 interim subregional board, if the results of the 1980 federal
2-16 census are unavailable, the most recent population estimates of the
2-17 appropriate metropolitan planning organization will be used.>
2-18 (f) Every five years as of the first day of September
2-19 following the date the census data or population estimates become
2-20 available, or when a city or an unincorporated area withdraws from
2-21 or joins in the authority, the board shall be restructured pursuant
2-22 to Subsection <Subsections> (c) <and (h)> of this section, if
2-23 warranted by the withdrawal or addition of cities or unincorporated
2-24 areas, or by population changes or changes in combinations
2-25 established pursuant to Subsection (e) of this section.
3-1 (g) The members of the board <shall> serve staggered terms
3-2 of two years with eight terms beginning July 1 of odd-numbered
3-3 years and seven terms beginning July 1 of even-numbered years. The
3-4 <at the pleasure of the governing body of each appointing
3-5 governmental entity, except that the> governing body of a principal
3-6 city may not by rule, order, or ordinance limit the number of terms
3-7 that members of the board may serve. The term of a board member
3-8 does not end because of a reapportionment under Subsection (f) of
3-9 this section, and the board shall develop a plan for filling
3-10 vacancies following a reapportionment to ensure that each city
3-11 maintains the representation to which it is entitled. <The
3-12 governing body shall confirm its board appointment to begin terms
3-13 on the first day of September in every odd-numbered year.>
3-14 (h) The total number of members comprising the board is 15.
3-15 <shall be governed by the total population of the territory
3-16 included in the subregion. Specifically, the board size shall be
3-17 determined by the following formula:>
3-18 <Total Members>
3-19 <Total Population> <on Subregional>
3-20 þLin Subregionää þLBoardää
3-21 <Less than 1,000,000> <15>
3-22 <1,000,000 to 1,400,000> <21>
3-23 <1,400,000 plus> <25>
3-24 SECTION 2. Section 10, Chapter 683, Acts of the 66th
3-25 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
4-1 is amended by adding Subsections (v), (w), and (x) to read as
4-2 follows:
4-3 (v) An agreement made before May 1, 1993, between the
4-4 authority and cities included in the area of the authority for the
4-5 distribution of the authority's revenues is validated as of the
4-6 date the agreement was made. The agreement may not be held invalid
4-7 because it was not made in accordance with law. The authority may
4-8 enter one or more agreements on or after that date with any city
4-9 included in the area of the authority for the distribution of the
4-10 authority's revenues.
4-11 (w) The board of an authority in a subregion having a
4-12 principal city with a population in excess of 800,000 may create
4-13 committees for any purpose for which a vote of the board is not
4-14 required. The committee may consist of members of the subregional
4-15 board and members of the general public, but the number of public
4-16 members on a committee may not exceed the number of members of the
4-17 subregional board.
4-18 (x) The board of an authority in a subregion having a
4-19 principal city with a population in excess of 800,000 may not,
4-20 except by a two-thirds vote of the board:
4-21 (1) issue any debt allowed by law;
4-22 (2) enter a lease as lessee or financing agreement as
4-23 obligor if the lease or agreement is secured by the other assets of
4-24 the authority;
4-25 (3) effect a major change in a service plan as defined
5-1 by Section 10A of this Act;
5-2 (4) approve the financial plan for the authority; or
5-3 (5) enter an agreement under Subsection (v) of this
5-4 section on or after May 1, 1993.
5-5 SECTION 3. Section 15, Chapter 683, Acts of the 66th
5-6 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
5-7 is amended by adding Subsection (i) to read as follows:
5-8 (i) An authority in a subregion having a population in
5-9 excess of 800,000 may not enter a lease or financing agreement
5-10 secured wholly or partially by the assets of the authority if the
5-11 duration of the lease or financing agreement is longer than five
5-12 years unless the lease or agreement is approved by the voters of
5-13 the authority in the manner provided for the issuance of bonds and
5-14 notes under Subsection (h) of this section.
5-15 SECTION 4. Section 18(a), Chapter 683, Acts of the 66th
5-16 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
5-17 is amended to read as follows:
5-18 (a) The responsibility for the operation and control of the
5-19 properties belonging to an authority shall be vested in its
5-20 executive committee. The executive committee may:
5-21 (1) appoint and prescribe compensation for a chief
5-22 executive officer whom the board may designate as an executive
5-23 director or a general manager and who shall administer the daily
5-24 operations of the authority and employ persons, firms,
5-25 partnerships, or corporations deemed necessary by the executive
6-1 committee for the conduct of the affairs of the authority,
6-2 including but not limited to bookkeepers, engineers, financial
6-3 advisers, and operating or management companies and in accordance
6-4 with executive committee policy, prescribe the duties, tenure, and
6-5 compensation of each; all employees may be removed by the chief
6-6 executive officer in accordance with executive committee policy
6-7 <general manager>;
6-8 (2) appoint auditors and attorneys and prescribe the
6-9 duties, tenure, and compensation of each;
6-10 (3) become a subscriber under the Texas workers'
6-11 compensation act with any old-line legal-reserve insurance company
6-12 authorized to write policies in the State of Texas;
6-13 (4) adopt a seal for the authority;
6-14 (5) invest the funds of the authority in the following
6-15 securities and obligations, to-wit:
6-16 (A) direct and indirect obligations of the
6-17 United States of America and of its agencies and instrumentalities,
6-18 including treasury receipts evidencing ownership of future interest
6-19 and principal payments thereon. Agencies and instrumentalities
6-20 include, but are not limited to Federal Home Loan Banks, Federal
6-21 Farm Credit Banks, Federal Home Loan Mortgage Association, Federal
6-22 National Mortgage Association, Government National Mortgage
6-23 Association, Student Loan Marketing Association, and International
6-24 Bank for Reconstruction and Development;
6-25 (B) any obligations of any state, or the
7-1 agencies thereof, or of the counties, cities, and other political
7-2 subdivisions of any state, the payments of principal and interest
7-3 on which are payable from taxes or revenues, either or both, and
7-4 having a then current rating of no less than A or its equivalent by
7-5 a nationally recognized rating firm;
7-6 (C) direct repurchase agreements and reverse
7-7 repurchase agreements with defined termination dates secured by
7-8 obligations defined in Subdivisions (A) and (B) above such
7-9 agreements to be executed with banks or trust companies organized
7-10 under the laws of Texas, any national banking association, or any
7-11 government bond dealer reporting to and recognized as a primary
7-12 dealer by the Federal Reserve Bank of New York;
7-13 (D) the common trust funds of any bank and any
7-14 money market mutual funds that consist solely of assets described
7-15 in Subdivisions (A) and (B) above;
7-16 (E) certificates of deposit of state and
7-17 national banks guaranteed or insured by the Federal Deposit
7-18 Insurance Corporation or its successor or secured by obligations
7-19 described in Subdivisions (A) and (B) above with a market value of
7-20 no less than the principal amount of the certificates;
7-21 (F) commercial paper rated either A1 or P1 by a
7-22 nationally recognized rating firm;
7-23 (G) foreign currencies and currency-swap
7-24 agreements to the extent necessary to pay nondollar denominated
7-25 obligations; and
8-1 (H) such other investments as may be authorized,
8-2 from time to time, by resolution adopted by the executive committee
8-3 of the authority.
8-4 The executive committee by resolution may provide that an
8-5 authorized representative of the authority may invest and reinvest
8-6 the funds of the authority and provide for money to be withdrawn
8-7 from the appropriate accounts of the authority for investments on
8-8 such terms as the executive committee considers advisable. An
8-9 authority may by contract approved by the executive committee enter
8-10 into investment agreements pertaining to any of the foregoing, and
8-11 may, additionally, enter into interest-rate swap and similar
8-12 agreements with other parties upon such terms as the executive
8-13 committee may deem appropriate.
8-14 (6) fix the fiscal year for the authority;
8-15 (7) establish a complete system of accounts for the
8-16 authority and each year shall have prepared an audit of its affairs
8-17 by an independent certified public accountant or a firm of
8-18 independent certified public accountants which shall be open to
8-19 public inspection; and
8-20 (8) designate one or more banks to serve as the
8-21 depository for the funds of the authority.
8-22 SECTION 5. Section 20, Chapter 683, Acts of the 66th
8-23 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
8-24 is amended by adding Subsection (j) to read as follows:
8-25 (j) An authority in a subregion having a principal city with
9-1 a population in excess of 800,000 shall at least once every five
9-2 years evaluate each distinct transportation service the authority
9-3 provides that generates revenue, including light rail, bus, van,
9-4 taxi, and other public transportation services, and determine
9-5 whether the authority shall solicit competitive sealed bids from
9-6 other entities to provide these transportation services.
9-7 SECTION 6. (a) The terms of all members of a subregional
9-8 board created under Section 6, Chapter 683, Acts of the 66th
9-9 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
9-10 end on the effective date of this section. The governing body of
9-11 each municipality entitled to make an appointment under Section 6,
9-12 Chapter 683, Acts of the 66th Legislature, 1979 (Article 1118y,
9-13 Vernon's Texas Civil Statutes), as amended by this Act, shall make
9-14 the appointment as soon as possible after the effective date of
9-15 this section. Until two-thirds of the members of the subregional
9-16 board as reconstituted by this section have been appointed and have
9-17 qualified, the members serving on the effective date of this
9-18 section may continue to exercise the powers and perform the duties
9-19 of the subregional board.
9-20 (b) After the appointment of the initial board under this
9-21 Act, the members shall draw lots to determine their initial terms.
9-22 Eight members shall serve for a term expiring July 1, 1995. Seven
9-23 members shall serve for a term expiring July 1, 1994.
9-24 SECTION 7. (a) Except as provided by Subsection (b) of this
9-25 section, this Act takes effect immediately.
10-1 (b) Sections 1 and 6 of this Act take effect July 1, 1993.
10-2 SECTION 8. The importance of this legislation and the
10-3 crowded condition of the calendars in both houses create an
10-4 emergency and an imperative public necessity that the
10-5 constitutional rule requiring bills to be read on three several
10-6 days in each house be suspended, and this rule is hereby suspended,
10-7 and that this Act take effect and be in force according to its
10-8 terms, and it is so enacted.