By:  Turner, et al.                                    S.B. No. 787
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the powers and duties of the Texas High-Speed Rail
    1-2  Authority.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subdivision (2), Section 1.02, State Purchasing
    1-5  and General Services Act (Article 601b, Vernon's Texas Civil
    1-6  Statutes), is amended to read as follows:
    1-7              (2)  "State agency" means:
    1-8                    (A)  any department, commission, board, office,
    1-9  or other agency in the executive branch of state government created
   1-10  by the constitution or a statute of this state<, except the Texas
   1-11  High-Speed Rail Authority>;
   1-12                    (B)  the Supreme Court of Texas, the Court of
   1-13  Criminal Appeals of Texas, a court of civil appeals, or the Texas
   1-14  Civil Judicial Council; or
   1-15                    (C)  a university system or an institution of
   1-16  higher education as defined in Section 61.003, Texas Education
   1-17  Code, as amended, other than a public junior college.
   1-18        SECTION 2.  Article 1, State Purchasing and General Services
   1-19  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   1-20  adding Section 1.05 to read as follows:
   1-21        Sec. 1.05.  AWARD OF FRANCHISE BY TEXAS HIGH-SPEED RAIL
   1-22  AUTHORITY.  The award of a franchise by the Texas High-Speed Rail
   1-23  Authority under the Texas High-Speed Rail Act (Article 6674v.2,
   1-24  Revised Statutes) and its subsequent amendments is exempt from the
    2-1  provisions of this Act.
    2-2        SECTION 3.  Subsection (a), Section 4, Texas High-Speed Rail
    2-3  Act (Article 6674v.2, Revised Statutes), is amended to read as
    2-4  follows:
    2-5        (a)(1)  The authority is administered by a board of directors
    2-6  composed of five <11> directors <who shall occupy, respectively,
    2-7  places on the board to be designated Places 1, 2, 3, 4, 5, 6, 7, 8,
    2-8  9, 10, and 11>.
    2-9              (2)  Place 1 shall be occupied by the <chairman of the
   2-10  State Highway and Public Transportation Commission or the chairman
   2-11  of the State Board of Transportation, whichever is applicable.
   2-12  This ex officio position is not a separate and distinct office but
   2-13  an additional duty imposed upon the chairman of the State Highway
   2-14  and Public Transportation Commission or State Board of
   2-15  Transportation.>
   2-16              <(3)  Place 2 shall be occupied by the chairman of the
   2-17  Texas Turnpike Authority.  This ex officio position is not a
   2-18  separate and distinct office but an additional duty imposed on the
   2-19  chairman of the Texas Turnpike Authority.>
   2-20              <(4)  Place 3 shall be occupied initially by the person
   2-21  who is the chairman of the board of directors or executive
   2-22  committee, as applicable, on June 16, 1989, of a metropolitan
   2-23  transit authority organized under the provisions of Chapter 141,
   2-24  Acts of the 63rd Legislature, Regular Session, 1973 (Article 1118x,
   2-25  Vernon's Texas Civil Statutes), containing a principal city with a
   2-26  population of 1.5 million or more according to the last preceding
   2-27  federal census.  The person initially occupying Place 3 shall serve
    3-1  until June 1, 1993.  Thereafter, or in the event of a vacancy,
    3-2  Place 3 shall be occupied by a person who is or has been a member
    3-3  of such a board or committee and who is appointed by the governor
    3-4  with the advice and consent of the senate.>
    3-5              <(5)  Place 4 shall be occupied initially by the person
    3-6  who is chairman of the board of directors or executive committee,
    3-7  as applicable, on June 16, 1989, of a regional transportation
    3-8  authority organized under the provisions of Chapter 683, Acts of
    3-9  the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
   3-10  Statutes), that contains a subregion with a principal city having a
   3-11  population of 800,000 or more according to the last preceding
   3-12  federal census.  The person initially occupying Place 4 in any case
   3-13  shall serve until the end of his term as a director of the
   3-14  authority as provided in Section 2 of this Act as originally
   3-15  enacted.  Thereafter, or in the event of a vacancy, Place 4 shall
   3-16  be occupied by a person who is or has been a member of such board
   3-17  or committee and who is appointed by the governor with the advice
   3-18  and consent of the senate.>
   3-19              <(6)  Place 5 shall be occupied by a person who is or
   3-20  has been a member of the executive committee, a subregional board
   3-21  of directors, or the board of directors of a regional
   3-22  transportation authority organized under the provisions of Chapter
   3-23  683, Acts of the 66th Legislature, 1979 (Article 1118y, Vernon's
   3-24  Texas Civil Statutes), that contains a subregion with a principal
   3-25  city having a population of less than 800,000 according to the last
   3-26  preceding federal census and who is appointed by the governor with
   3-27  the advice and consent of the senate.>
    4-1              <(7)  Place 6 shall be occupied by the> member of the
    4-2  Railroad Commission of Texas whose term expires in 1992 and the
    4-3  successor to that office.  This ex officio position is not a
    4-4  separate and distinct office but an additional duty imposed on the
    4-5  office of railroad commissioner.
    4-6              (3)  Place 2 <(8)  Places 7, 8, and 9 shall be occupied
    4-7  by persons appointed by the governor with the advice and consent of
    4-8  the senate.>
    4-9              <(9)  Place 10> shall be occupied by the member of the
   4-10  Railroad Commission of Texas whose term of office expires in 1994
   4-11  and the successor to that office.  This ex officio position is not
   4-12  a separate and distinct office but an additional duty imposed on
   4-13  the office of railroad commissioner.
   4-14              (4)  Place 3 <(10)  Place 11> shall be occupied by the
   4-15  member of the Railroad Commission of Texas whose term of office
   4-16  expires in 1996.  This ex officio position is not a separate and
   4-17  distinct office but an additional duty imposed on the office of
   4-18  railroad commissioner.
   4-19              (5)  Places 4 and 5 shall be occupied by persons
   4-20  serving on the board on June 1, 1993, whose terms would expire on
   4-21  June 1, 1997, except for the abolition of the authority as provided
   4-22  by Section 4.14, Chapter 7, Acts of the 72nd Legislature, 1st
   4-23  Called Session, 1991.
   4-24        SECTION 4.  Subsection (b), Section 6, Texas High-Speed Rail
   4-25  Act (Article 6674v.2, Revised Statutes), is amended to read as
   4-26  follows:
   4-27        (b)  The board may:
    5-1              (1)  accept donations, contributions, grants, or gifts
    5-2  from any source for any purpose; however, legislative
    5-3  appropriations or other state funds may be used only for planning
    5-4  but not for financing, acquisition, construction, maintenance, or
    5-5  operation of the high-speed rail facility;
    5-6              (2)  acquire by contract purchase, grant, purchase,
    5-7  gift, devise, lease, or contribution from any source and hold, use,
    5-8  sell, lease, or dispose of any property, including property of a
    5-9  franchisee;
   5-10              (3)  grant a franchise for the financing, construction,
   5-11  improvement, use, or operation of all or part of a high-speed rail
   5-12  facility in incorporated and unincorporated areas of the state;
   5-13              (4)  use, close, relocate, raise, reroute, impact,
   5-14  change the grade of, or alter the construction of a street, alley,
   5-15  highway, or road with the approval of the Texas <State> Department
   5-16  of <Highways and Public> Transportation and may also close,
   5-17  relocate, change the grade of, or alter the construction of a
   5-18  railroad, electric line, electric facility, telegraph and telephone
   5-19  property or facility, pipeline, pipeline facility, or other
   5-20  property, whether publicly or privately owned, as necessary or
   5-21  useful in the construction, reconstruction, repair, maintenance, or
   5-22  operation of a high-speed rail facility, at the expense of the
   5-23  authority which in all cases must be reimbursed by the franchisee
   5-24  or others pursuant to this Act;
   5-25              (5)  regulate outdoor advertising, signs, junkyards,
   5-26  and automobile graveyards located adjacent to a right-of-way of the
   5-27  authority in the same manner that the Texas <State Highway and
    6-1  Public> Transportation Commission regulates such uses and
    6-2  conditions along the main traveled way of the interstate or primary
    6-3  highway systems under Article IV, Section 1, Chapter 741, Acts of
    6-4  the 67th Legislature, Regular Session, 1981 (Article 4477-9a,
    6-5  Vernon's Texas Civil Statutes);
    6-6              (6)  employ and remove any person, firm, partnership,
    6-7  or corporation considered necessary by the board for the conduct of
    6-8  the affairs of the authority, including a general manager,
    6-9  bookkeepers, auditors, engineers, attorneys, financial advisors,
   6-10  and advisors;
   6-11              (7)  receive services from the state, the Railroad
   6-12  Commission of Texas, the Texas Department of Commerce, the Texas
   6-13  <State> Department of <Highways and Public> Transportation, the
   6-14  Texas Turnpike Authority, other state agency having statewide
   6-15  jurisdiction, or any county, municipal corporation, or other
   6-16  political subdivision of the state for the acquisition of a
   6-17  high-speed rail facility;
   6-18              (8)  adopt and implement rules and management policies
   6-19  <including those for the investment of public funds> necessary to
   6-20  implement this Act;
   6-21              (9)  exercise the power of eminent domain provided the
   6-22  cost thereof is paid by the franchisee; and
   6-23              (10)  in performing its duties under this Act, contract
   6-24  or cooperate with any person, corporation, or entity.
   6-25        SECTION 5.  Effective September 1, 1995, Subsection (b),
   6-26  Section 6, Texas High-Speed Rail Act (Article 6674v.2, Revised
   6-27  Statutes), as amended by Section 4.02, Chapter 7, Acts of the 72nd
    7-1  Legislature, 1st Called Session, 1991, is amended to read as
    7-2  follows:
    7-3        (b)  The Railroad Commission of Texas may:
    7-4              (1)  accept donations, contributions, grants, or gifts
    7-5  from any source for any purpose; however, legislative
    7-6  appropriations or other state funds may be used only for planning
    7-7  but not for financing, acquisition, construction, maintenance, or
    7-8  operation of the high-speed rail facility;
    7-9              (2)  acquire by contract purchase, grant, purchase,
   7-10  gift, devise, lease, or contribution from any source and hold, use,
   7-11  sell, lease, or dispose of any property, including property of a
   7-12  franchisee;
   7-13              (3)  grant a franchise for the financing, construction,
   7-14  improvement, use, or operation of all or part of a high-speed rail
   7-15  facility in incorporated and unincorporated areas of the state;
   7-16              (4)  use, close, relocate, raise, reroute, impact,
   7-17  change the grade of, or alter the construction of a street, alley,
   7-18  highway, or road with the approval of the Texas Department of
   7-19  Transportation and may also close, relocate, change the grade of,
   7-20  or alter the construction of a railroad, electric line, electric
   7-21  facility, telegraph and telephone property or facility, pipeline,
   7-22  pipeline facility, or other property, whether publicly or privately
   7-23  owned, as necessary or useful in the construction, reconstruction,
   7-24  repair, maintenance, or operation of a high-speed rail facility, at
   7-25  the expense of the authority which in all cases must be reimbursed
   7-26  by the franchisee or others pursuant to this Act;
   7-27              (5)  regulate outdoor advertising, signs, junkyards,
    8-1  and automobile graveyards located adjacent to a right-of-way of the
    8-2  authority in the same manner that the Texas Transportation
    8-3  Commission regulates such uses and conditions along the main
    8-4  traveled way of the interstate or primary highway systems under
    8-5  Article V, Section 1, Chapter 741, Acts of the 67th Legislature,
    8-6  Regular Session, 1981 (Article 4477-9a, Vernon's Texas Civil
    8-7  Statutes);
    8-8              (6)  employ and remove any person, firm, partnership,
    8-9  or corporation considered necessary by the board for the conduct of
   8-10  the affairs of the authority, including a general manager,
   8-11  bookkeepers, auditors, engineers, attorneys, financial advisors,
   8-12  and advisors;
   8-13              (7)  receive services from the state, the Texas
   8-14  Department of Commerce, the Texas Department of Transportation,
   8-15  other state agencies having statewide jurisdiction, or any county,
   8-16  municipal corporation, or other political subdivision of the state
   8-17  for the acquisition of a high-speed rail facility;
   8-18              (8)  adopt and implement rules and management policies
   8-19  <including those for the investment of public funds> necessary to
   8-20  implement this Act;
   8-21              (9)  exercise the power of eminent domain provided the
   8-22  cost thereof is paid by the franchisee; and
   8-23              (10)  in performing its duties under this Act, contract
   8-24  or cooperate with any person, corporation, or entity.
   8-25        SECTION 6.  Part I, Texas High-Speed Rail Act (Article
   8-26  6674v.2, Revised Statutes), is amended by adding Sections 6B and 6C
   8-27  to read as follows:
    9-1        Sec. 6B.  OUTSIDE COUNSEL FOR LEGAL SERVICES.  (a)  In
    9-2  performing its duties under this Act, the board may not enter a
    9-3  contract for legal services with an attorney, other than a
    9-4  full-time employee of the agency, without the approval of the
    9-5  attorney general.  If the attorney general denies approval of a
    9-6  contract under this subsection, the attorney general shall provide
    9-7  the board with legal services to administer this Act as the
    9-8  attorney general determines appropriate.
    9-9        (b)  For purposes of this section, the functions of a hearing
   9-10  examiner, administrative law judge, or other quasi-judicial officer
   9-11  are not considered legal services.
   9-12        Sec. 6C.  USE OF EXISTING RIGHT-OF-WAY.  The board shall, to
   9-13  the greatest extent practicable, make use of available existing
   9-14  highway or rail right-of-way for a high-speed rail facility.
   9-15        SECTION 7.  Effective September 1, 1995, Part I, Texas
   9-16  High-Speed Rail Act (Article 6674v.2, Revised Statutes), is amended
   9-17  by amending Sections 6B and 6C to read as follows:
   9-18        Sec. 6B.  OUTSIDE COUNSEL FOR LEGAL SERVICES.  (a)  In
   9-19  performing its duties under this Act, the commission <board> may
   9-20  not enter a contract for legal services with an attorney, other
   9-21  than a full-time employee of the agency, without the approval of
   9-22  the attorney general.  If the attorney general denies approval of a
   9-23  contract under this subsection, the attorney general shall provide
   9-24  the commission <board> with legal services to administer this Act
   9-25  as the attorney general determines appropriate.
   9-26        (b)  For purposes of this section, the functions of a hearing
   9-27  examiner, administrative law judge, or other quasi-judicial officer
   10-1  are not considered legal services.
   10-2        Sec. 6C.  USE OF EXISTING RIGHT-OF-WAY.  The commission
   10-3  <board> shall, to the greatest extent practicable, make use of
   10-4  available existing highway or rail right-of-way for a high-speed
   10-5  rail facility.
   10-6        SECTION 8.  Subsection (b), Section 18, Texas High-Speed Rail
   10-7  Act (Article 6674v.2, Revised Statutes), is amended to read as
   10-8  follows:
   10-9        (b)  The board shall:
  10-10              (1)  determine the fiscal year of the authority;
  10-11              (2)  establish an accounting system for the authority;
  10-12              (3)  have audits prepared of authority affairs by the
  10-13  state auditor or by an independent certified public accountant, as
  10-14  determined to be necessary by the state auditor; and
  10-15              (4)  <designate one or more banks to serve as a
  10-16  depository for authority funds; and>
  10-17              <(5)>  deposit all money received by the authority to
  10-18  the credit of a special fund in the state treasury to be known as
  10-19  the Texas high-speed rail fund <in a depository bank unless
  10-20  otherwise required by an order authorizing the issuance of
  10-21  authority bonds>.
  10-22        SECTION 9.  Effective September 1, 1995, Subsection (b),
  10-23  Section 18, Texas High-Speed Rail Act (Article 6674v.2, Revised
  10-24  Statutes), as amended by Section 4.09, Chapter 7, Acts of the 72nd
  10-25  Legislature, 1st Called Session, 1991, is amended to read as
  10-26  follows:
  10-27        (b)  The commission shall:
   11-1              (1)  have audits prepared of authority affairs by the
   11-2  state auditor or by an independent certified public accountant, as
   11-3  determined to be necessary by the state auditor; and
   11-4              (2)  <designate one or more banks to serve as a
   11-5  depository for authority funds; and>
   11-6              <(3)>  deposit all money received by the authority to
   11-7  the credit of a special fund in the state treasury to be known as
   11-8  the Texas high-speed rail fund <in a depository bank unless
   11-9  otherwise required by an order authorizing the issuance of
  11-10  authority bonds>.
  11-11        SECTION 10.  Subsection (a), Section 19, Texas High-Speed
  11-12  Rail Act (Article 6674v.2, Revised Statutes), is amended to read as
  11-13  follows:
  11-14        (a)  Before the beginning of each fiscal year and before the
  11-15  authority conducts business for that fiscal year, the board shall,
  11-16  after a public hearing, adopt an annual budget that specifies the
  11-17  major expenditures of the authority by type and amount.
  11-18        SECTION 11.  Effective September 1, 1995, Subsection (a),
  11-19  Section 19, Texas High-Speed Rail Act (Article 6674v.2, Revised
  11-20  Statutes), as amended by Section 4.10, Chapter 7, Acts of the 72nd
  11-21  Legislature, 1st Called Session, 1991, is amended to read as
  11-22  follows:
  11-23        (a)  Before the beginning of each fiscal year and before the
  11-24  authority conducts business for that fiscal year, the commission
  11-25  shall, after a public hearing, adopt an annual budget that
  11-26  specifies the major expenditures of the authority by type and
  11-27  amount.
   12-1        SECTION 12.  Section 24, Texas High-Speed Rail Act (Article
   12-2  6674v.2, Revised Statutes), is amended by adding Subsection (l) to
   12-3  read as follows:
   12-4        (l)  Not later than December 31, 1993, an entity holding a
   12-5  franchise under this Act on September 1, 1993, shall provide to the
   12-6  authority a map of the preferred route on which the entity intends
   12-7  to operate its high-speed rail facility.  The actual route of the
   12-8  high-speed rail facility may differ from the preferred route
   12-9  because of environmental impacts, safety considerations, technology
  12-10  requirements, economic consequences, or other factors that are
  12-11  unforeseeable by the franchisee at the time it submits the map of
  12-12  the preferred route.  If a franchise is awarded under this Act
  12-13  after September 1, 1993, the authority shall require the franchisee
  12-14  to submit a map of its preferred route within a reasonable time
  12-15  after the award of the franchise.  A franchisee is obligated to
  12-16  construct and operate a high-speed rail facility along a preferred
  12-17  route submitted under this subsection except as provided by this
  12-18  subsection.
  12-19        SECTION 13.  The following provisions of the Texas High-Speed
  12-20  Rail Act (Article 6674v.2, Revised Statutes) are repealed:
  12-21              (1)  Subsection (c), Section 18;
  12-22              (2)  Subsection (d), Section 18;
  12-23              (3)  Subsection (d), Section 18, as amended by Section
  12-24  4.09, Chapter 7, Acts of the 72nd Legislature, 1st Called Session,
  12-25  1991; and
  12-26              (4)  Section 20.
  12-27        SECTION 14.  The change in law made by Section 3 of this Act
   13-1  does not affect the transfer of the duties of the Texas High-Speed
   13-2  Rail Authority to the Railroad Commission of Texas and the
   13-3  abolition of the board of directors as provided by Section 4.14,
   13-4  Chapter 7, Acts of the 72nd Legislature, 1st Called Session, 1991.
   13-5        SECTION 15.  (a)  Except as provided by Subsection (b) of
   13-6  this section, this Act takes effect September 1, 1993.
   13-7        (b)  Sections 5, 7, 9, and 11 of this Act take effect
   13-8  September 1, 1995.
   13-9        SECTION 16.  The importance of this legislation and the
  13-10  crowded condition of the calendars in both houses create an
  13-11  emergency and an imperative public necessity that the
  13-12  constitutional rule requiring bills to be read on three several
  13-13  days in each house be suspended, and this rule is hereby suspended.