1-1 By: Marchant, Cain (Senate Sponsor - Shapiro) H.B. No. 2800
1-2 (In the Senate - Received from the House May 3, 1993;
1-3 May 4, 1993, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 12, 1993, reported favorably by
1-5 the following vote: Yeas 9, Nays 0; May 12, 1993, sent to
1-6 printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 A BILL TO BE ENTITLED
1-21 AN ACT
1-22 relating to the powers and duties of certain regional
1-23 transportation authorities.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Sections 6(b), (c), (f), (g), and (h), Chapter
1-26 683, Acts of the 66th Legislature, 1979 (Article 1118y, Vernon's
1-27 Texas Civil Statutes), are amended to read as follows:
1-28 (b) An elected officer of the state or a political
1-29 subdivision of the state who is not prohibited by the Texas
1-30 Constitution from serving on the board is eligible, as an
1-31 additional duty of office, to serve on the board. An elected
1-32 officer who serves as a member is not entitled to receive
1-33 compensation for serving as a member but is entitled to
1-34 reimbursement for reasonable expenses incurred in performing duties
1-35 as a member of the board <The commissioners court of the county of
1-36 the principal city shall appoint one member>.
1-37 (c) The <remaining> members of the subregional board shall
1-38 be apportioned according to the ratio which the population of each
1-39 incorporated city bears to the total population of the territory
1-40 included within the subregion. Any combination of cities may
1-41 aggregate their <aggregating a total> population to <of 60,000
1-42 shall> be entitled to one member on the <interim> subregional
1-43 board. A city entitled to one or more members that has a
1-44 population that would entitle it to a fraction of another member
1-45 may aggregate its population with another city to appoint another
1-46 member. Cities aggregating their population to make an appointment
1-47 shall agree on a method of making the appointment. To serve on the
1-48 board, a person must be a resident of the city making the
1-49 appointment. A city making more than one appointment shall, to the
1-50 greatest extent practicable, select persons who accurately reflect
1-51 the racial and ethnic composition of that city. A city may not
1-52 aggregate its population with another city for the purpose of
1-53 minimizing the representation on the board of a racial or ethnic
1-54 minority. <Following the confirmation election, any combination of
1-55 cities who have voted confirmation of the authority may aggregate a
1-56 population of at least 60,000 for the purpose of appointing one
1-57 member to the initial subregional board. In establishing the
1-58 interim subregional board, if the results of the 1980 federal
1-59 census are unavailable, the most recent population estimates of the
1-60 appropriate metropolitan planning organization will be used.>
1-61 (f) Every five years as of the first day of September
1-62 following the date the census data or population estimates become
1-63 available, or when a city or an unincorporated area withdraws from
1-64 or joins in the authority, the board shall be restructured pursuant
1-65 to Subsection <Subsections> (c) <and (h)> of this section, if
1-66 warranted by the withdrawal or addition of cities or unincorporated
1-67 areas, or by population changes or changes in combinations
1-68 established pursuant to Subsection (e) of this section.
2-1 (g) The members of the board <shall> serve staggered terms
2-2 of two years with eight terms beginning July 1 of odd-numbered
2-3 years and seven terms beginning July 1 of even-numbered years. The
2-4 <at the pleasure of the governing body of each appointing
2-5 governmental entity, except that the> governing body of a principal
2-6 city may not by rule, order, or ordinance limit the number of terms
2-7 that members of the board may serve. The term of a board member
2-8 does not end because of a reapportionment under Subsection (f) of
2-9 this section, and the board shall develop a plan for filling
2-10 vacancies following a reapportionment to ensure that each city
2-11 maintains the representation to which it is entitled. <The
2-12 governing body shall confirm its board appointment to begin terms
2-13 on the first day of September in every odd-numbered year.>
2-14 (h) The total number of members comprising the board is 15.
2-15 <shall be governed by the total population of the territory
2-16 included in the subregion. Specifically, the board size shall be
2-17 determined by the following formula:>
2-18 <Total Members>
2-19 <Total Population> <on Subregional>
2-20 þLin Subregionää þLBoardää
2-21 <Less than 1,000,000> <15>
2-22 <1,000,000 to 1,400,000> <21>
2-23 <1,400,000 plus> <25>
2-24 SECTION 2. Section 10, Chapter 683, Acts of the 66th
2-25 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
2-26 is amended by adding Subsections (v), (w), and (x) to read as
2-27 follows:
2-28 (v) An agreement made before May 1, 1993, between the
2-29 authority and cities included in the area of the authority for the
2-30 distribution of the authority's revenues is validated as of the
2-31 date the agreement was made. The agreement may not be held invalid
2-32 because it was not made in accordance with law. The authority may
2-33 enter one or more agreements on or after that date with any city
2-34 included in the area of the authority for the distribution of the
2-35 authority's revenues.
2-36 (w) The board of an authority in a subregion having a
2-37 principal city with a population in excess of 800,000 may create
2-38 committees for any purpose for which a vote of the board is not
2-39 required. The committee may consist of members of the subregional
2-40 board and members of the general public, but the number of public
2-41 members on a committee may not exceed the number of members of the
2-42 subregional board.
2-43 (x) The board of an authority in a subregion having a
2-44 principal city with a population in excess of 800,000 may not,
2-45 except by a two-thirds vote of the board:
2-46 (1) issue any debt allowed by law;
2-47 (2) enter a lease as lessee or financing agreement as
2-48 obligor if the lease or agreement is secured by the other assets of
2-49 the authority;
2-50 (3) effect a major change in a service plan as defined
2-51 by Section 10A of this Act;
2-52 (4) approve the financial plan for the authority; or
2-53 (5) enter an agreement under Subsection (v) of this
2-54 section on or after May 1, 1993.
2-55 SECTION 3. Section 15, Chapter 683, Acts of the 66th
2-56 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
2-57 is amended by adding Subsection (i) to read as follows:
2-58 (i) An authority in a subregion having a population in
2-59 excess of 800,000 may not enter a lease or financing agreement
2-60 secured wholly or partially by the assets of the authority if the
2-61 duration of the lease or financing agreement is longer than five
2-62 years unless the lease or agreement is approved by the voters of
2-63 the authority in the manner provided for the issuance of bonds and
2-64 notes under Subsection (h) of this section.
2-65 SECTION 4. Section 18(a), Chapter 683, Acts of the 66th
2-66 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
2-67 is amended to read as follows:
2-68 (a) The responsibility for the operation and control of the
2-69 properties belonging to an authority shall be vested in its
2-70 executive committee. The executive committee may:
3-1 (1) appoint and prescribe compensation for a chief
3-2 executive officer whom the board may designate as an executive
3-3 director or a general manager and who shall administer the daily
3-4 operations of the authority and employ persons, firms,
3-5 partnerships, or corporations deemed necessary by the executive
3-6 committee for the conduct of the affairs of the authority,
3-7 including but not limited to bookkeepers, engineers, financial
3-8 advisers, and operating or management companies and in accordance
3-9 with executive committee policy, prescribe the duties, tenure, and
3-10 compensation of each; all employees may be removed by the chief
3-11 executive officer in accordance with executive committee policy
3-12 <general manager>;
3-13 (2) appoint auditors and attorneys and prescribe the
3-14 duties, tenure, and compensation of each;
3-15 (3) become a subscriber under the Texas workers'
3-16 compensation act with any old-line legal-reserve insurance company
3-17 authorized to write policies in the State of Texas;
3-18 (4) adopt a seal for the authority;
3-19 (5) invest the funds of the authority in the following
3-20 securities and obligations, to-wit:
3-21 (A) direct and indirect obligations of the
3-22 United States of America and of its agencies and instrumentalities,
3-23 including treasury receipts evidencing ownership of future interest
3-24 and principal payments thereon. Agencies and instrumentalities
3-25 include, but are not limited to Federal Home Loan Banks, Federal
3-26 Farm Credit Banks, Federal Home Loan Mortgage Association, Federal
3-27 National Mortgage Association, Government National Mortgage
3-28 Association, Student Loan Marketing Association, and International
3-29 Bank for Reconstruction and Development;
3-30 (B) any obligations of any state, or the
3-31 agencies thereof, or of the counties, cities, and other political
3-32 subdivisions of any state, the payments of principal and interest
3-33 on which are payable from taxes or revenues, either or both, and
3-34 having a then current rating of no less than A or its equivalent by
3-35 a nationally recognized rating firm;
3-36 (C) direct repurchase agreements and reverse
3-37 repurchase agreements with defined termination dates secured by
3-38 obligations defined in Subdivisions (A) and (B) above such
3-39 agreements to be executed with banks or trust companies organized
3-40 under the laws of Texas, any national banking association, or any
3-41 government bond dealer reporting to and recognized as a primary
3-42 dealer by the Federal Reserve Bank of New York;
3-43 (D) the common trust funds of any bank and any
3-44 money market mutual funds that consist solely of assets described
3-45 in Subdivisions (A) and (B) above;
3-46 (E) certificates of deposit of state and
3-47 national banks guaranteed or insured by the Federal Deposit
3-48 Insurance Corporation or its successor or secured by obligations
3-49 described in Subdivisions (A) and (B) above with a market value of
3-50 no less than the principal amount of the certificates;
3-51 (F) commercial paper rated either A1 or P1 by a
3-52 nationally recognized rating firm;
3-53 (G) foreign currencies and currency-swap
3-54 agreements to the extent necessary to pay nondollar denominated
3-55 obligations; and
3-56 (H) such other investments as may be authorized,
3-57 from time to time, by resolution adopted by the executive committee
3-58 of the authority.
3-59 The executive committee by resolution may provide that an
3-60 authorized representative of the authority may invest and reinvest
3-61 the funds of the authority and provide for money to be withdrawn
3-62 from the appropriate accounts of the authority for investments on
3-63 such terms as the executive committee considers advisable. An
3-64 authority may by contract approved by the executive committee enter
3-65 into investment agreements pertaining to any of the foregoing, and
3-66 may, additionally, enter into interest-rate swap and similar
3-67 agreements with other parties upon such terms as the executive
3-68 committee may deem appropriate.
3-69 (6) fix the fiscal year for the authority;
3-70 (7) establish a complete system of accounts for the
4-1 authority and each year shall have prepared an audit of its affairs
4-2 by an independent certified public accountant or a firm of
4-3 independent certified public accountants which shall be open to
4-4 public inspection; and
4-5 (8) designate one or more banks to serve as the
4-6 depository for the funds of the authority.
4-7 SECTION 5. Section 20, Chapter 683, Acts of the 66th
4-8 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
4-9 is amended by adding Subsection (j) to read as follows:
4-10 (j) An authority in a subregion having a principal city with
4-11 a population in excess of 800,000 shall at least once every five
4-12 years evaluate each distinct transportation service the authority
4-13 provides that generates revenue, including light rail, bus, van,
4-14 taxi, and other public transportation services, and determine
4-15 whether the authority shall solicit competitive sealed bids from
4-16 other entities to provide these transportation services.
4-17 SECTION 6. (a) The terms of all members of a subregional
4-18 board created under Section 6, Chapter 683, Acts of the 66th
4-19 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
4-20 end on the effective date of this section. The governing body of
4-21 each municipality entitled to make an appointment under Section 6,
4-22 Chapter 683, Acts of the 66th Legislature, 1979 (Article 1118y,
4-23 Vernon's Texas Civil Statutes), as amended by this Act, shall make
4-24 the appointment as soon as possible after the effective date of
4-25 this section. Until two-thirds of the members of the subregional
4-26 board as reconstituted by this section have been appointed and have
4-27 qualified, the members serving on the effective date of this
4-28 section may continue to exercise the powers and perform the duties
4-29 of the subregional board.
4-30 (b) After the appointment of the initial board under this
4-31 Act, the members shall draw lots to determine their initial terms.
4-32 Eight members shall serve for a term expiring July 1, 1995. Seven
4-33 members shall serve for a term expiring July 1, 1994.
4-34 SECTION 7. (a) Except as provided by Subsection (b) of this
4-35 section, this Act takes effect immediately.
4-36 (b) Sections 1 and 6 of this Act take effect July 1, 1993.
4-37 SECTION 8. The importance of this legislation and the
4-38 crowded condition of the calendars in both houses create an
4-39 emergency and an imperative public necessity that the
4-40 constitutional rule requiring bills to be read on three several
4-41 days in each house be suspended, and this rule is hereby suspended,
4-42 and that this Act take effect and be in force according to its
4-43 terms, and it is so enacted.
4-44 * * * * *
4-45 Austin,
4-46 Texas
4-47 May 12, 1993
4-48 Hon. Bob Bullock
4-49 President of the Senate
4-50 Sir:
4-51 We, your Committee on Intergovernmental Relations to which was
4-52 referred H.B. No. 2800, have had the same under consideration, and
4-53 I am instructed to report it back to the Senate with the
4-54 recommendation that it do pass and be printed.
4-55 Armbrister,
4-56 Chairman
4-57 * * * * *
4-58 WITNESSES
4-59 FOR AGAINST ON
4-60 ___________________________________________________________________
4-61 Name: James McCarley x
4-62 Representing: Ass. City Manager, Plano
4-63 City: Plano
4-64 -------------------------------------------------------------------
4-65 Name: Joan Douglas
4-66 Representing: City of Houston
4-67 City: Houston
4-68 -------------------------------------------------------------------
4-69 Name: WR Smith x
4-70 Representing: Houston
5-1 City: Houston
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