1-1 By: Sims S.B. No. 968
1-2 (In the Senate - Filed March 11, 1993; March 15, 1993, read
1-3 first time and referred to Committee on State Affairs;
1-4 April 19, 1993, reported favorably, as amended, by the following
1-5 vote: Yeas 10, Nays 0; April 19, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 COMMITTEE AMENDMENT NO. 1 By: Sibley
1-22 Amend S.B. No. 968 in SECTION 1, Section 5(e), page 5, line 68 by
1-23 inserting "subject to a grant previously secured or with the
1-24 consent of any municipality, county, or other political
1-25 subdivision" between "for those purposes" and "may use streets" to
1-26 read as follows:
1-27 (e) A district may plan, acquire, construct, complete,
1-28 develop, own, operate, and maintain rail facilities inside or
1-29 outside the district, and for those purposes subject to a grant
1-30 previously secured or with the consent of any municipality, county,
1-31 or other political subdivision may use streets, alleys, roads,
1-32 highways, and other public ways of any municipality, county, or
1-33 other political subdivision and may relocate, raise, reroute,
1-34 change the grade of, or alter, at the expense of the district, the
1-35 construction of any street, alley, highway, road, railroad,
1-36 electric lines and facilities, telegraph and telephone properties
1-37 and facilities, pipelines and facilities, conduits and facilities,
1-38 and other properties, whether publicly or privately owned, as
1-39 necessary or useful in the construction, reconstruction, repair,
1-40 maintenance, and operation of rail facilities. A district may
1-41 acquire by purchase, whenever it considers the purchase expedient,
1-42 any land, property rights, right-of-way, franchises, easements, and
1-43 other interests in land as it considers necessary for the
1-44 acquisition, construction, or operation of any rail facility on
1-45 such terms and at such price as agreed to between the district and
1-46 the owner and may take title in the name of the district. The
1-47 governing body of every municipality, county, other political
1-48 subdivision, or public agency is authorized without any form of
1-49 advertisement to make conveyance of title or rights and easements
1-50 to any property needed by the district to effect its purposes in
1-51 connection with the acquisition, construction, or operation of rail
1-52 facilities <a system within its boundaries, both inside and outside
1-53 the limits of incorporated cities, towns, and villages, and has the
1-54 right to use the streets, alleys, roads, highways, and other public
1-55 ways and to relocate, raise, lower, reroute, regulate, change the
1-56 grade of, and alter the construction of any street, alley, highway,
1-57 or road, any gas transmission or distribution pipes, pipelines,
1-58 mains, or other facility or property; any water, sanitary sewer, or
1-59 storm sewer pipes, pipelines, or other facility or property; any
1-60 electric lines, telegraph or telephone facility or property; any
1-61 cable television lines, cables, conduits and facilities, or other
1-62 property whether publicly or privately owned, in the construction,
1-63 reconstruction, repair, maintenance, or operation of the system. A
1-64 district shall pay the cost of any change made under this
1-65 subsection and is liable for any damage to property occurring
1-66 because of the change>.
1-67 COMMITTEE AMENDMENT NO. 2 By: Sibley
1-68 Amend S.B. No. 968 in SECTION 1, Section 5(n), by striking "system"
2-1 as it appears twice in the first sentence and substituting "rail
2-2 facilities" to read as follows:
2-3 (n) <(l)> A district may lease the rail facilities <system>
2-4 or any part to, or contract for the use or operation of the rail
2-5 facilities <system> or any part by, any operator.
2-6 COMMITTEE AMENDMENT NO. 3 By: Sibley
2-7 Amend S.B. No. 968 in SECTION 1, Section 5(n), in the last
2-8 sentence, by deleting "a lease or" and substituting "an" to read as
2-9 follows:
2-10 (n) <(l)> A district may lease the rail facilities or any
2-11 part to, or contract for the use or operation of the rail
2-12 facilities or any part by, any operator. A district shall
2-13 encourage to the maximum extent practicable the participation of
2-14 private enterprise in the operation of the system. The term of an
2-15 operating contract under this subsection may not exceed 20 years.
2-16 A BILL TO BE ENTITLED
2-17 AN ACT
2-18 relating to the creation, re-creation, administration, powers and
2-19 duties including the power to issue bonds and the power of eminent
2-20 domain, validation, and dissolution of rural rail transportation
2-21 districts.
2-22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
2-23 SECTION 1. Chapter 623, Acts of the 67th Legislature,
2-24 Regular Session, 1981 (Article 6550c, Vernon's Texas Civil
2-25 Statutes), is amended by amending Sections 1 through 6 and adding
2-26 Section 6A to read as follows:
2-27 Sec. 1. Findings. The legislature finds that:
2-28 (1) the state contains many rural areas that are
2-29 heavily dependent on agriculture for economic survival;
2-30 (2) transportation of agricultural and industrial
2-31 products is essential to the continued economic vitality of rural
2-32 areas;
2-33 (3) the rail transportation systems in some rural
2-34 areas are threatened by railroad bankruptcies and abandonment
2-35 proceedings that would cause the cessation of rail services to the
2-36 areas; <and>
2-37 (4) it is in the interest of all citizens of the state
2-38 that existing rail systems be maintained for the most efficient and
2-39 economical movement of essential agricultural products from the
2-40 areas of production to the local, national, and export markets;
2-41 (5) rural rail transportation districts are
2-42 appropriate political subdivisions to provide for the continued
2-43 operation of railroads, which are declared by Article X, Section 2,
2-44 of the Texas Constitution to be public highways;
2-45 (6) the creation, re-creation, financing, maintenance,
2-46 and operation of rural rail transportation districts and facilities
2-47 acquired by the districts under this Act will help develop,
2-48 maintain, and diversify the economy of the state, eliminate
2-49 unemployment or underemployment, foster the growth of enterprises
2-50 based on agriculture, and serve to develop and expand
2-51 transportation and commerce within the state under the authority
2-52 granted by Article III, Section 52-a, of the Texas Constitution;
2-53 and
2-54 (7) financing by rural rail transportation districts
2-55 for the purposes provided by this Act is a lawful and valid public
2-56 purpose.
2-57 Sec. 2. Definitions. In this Act:
2-58 (1) "Board" means the board of directors of a rural
2-59 rail transportation district <system>.
2-60 (2) "Bonds" means bonds; notes, including bond
2-61 anticipation notes, revenue anticipation notes, and grant
2-62 anticipation notes; warrants; certificates of obligation;
2-63 interest-bearing contracts; interest-bearing leases of property;
2-64 equipment trust certificates; commercial paper; and any obligation
2-65 issued to refund any type of bond.
2-66 (3) "Concurrent orders" means the orders adopted by
2-67 eligible counties that contain identical provisions regarding the
2-68 creation or re-creation of a district.
2-69 (4) "District" means a rural rail transportation
2-70 district created under this Act.
3-1 (5) "Earthworks and structures" includes the clearing
3-2 and grubbing of right-of-way; demolition of structures; relocation
3-3 of utilities, pipelines, and any other obstacles in right-of-way;
3-4 stripping and stockpiling; removal of subsoils for embankment or
3-5 spoil; borrow pits; dressing and seeding of slopes; construction of
3-6 culverts; road crossings; bridges; restoration of roadway; drainage
3-7 within a right-of-way or along road networks; and restoration of a
3-8 hydrologic system.
3-9 (6) "Eligible counties" means two or more counties
3-10 that meet the requirements of Sections 3(a) and (b) of this Act.
3-11 (7) "Operating contract" means a professional services
3-12 contract executed by a district and another person under which the
3-13 person agrees to provide:
3-14 (A) all or part of the rolling stock required
3-15 for operation as a common carrier over all or a part of the rail
3-16 facilities of the district; and
3-17 (B) all or part of the personnel required for
3-18 the operation of the rolling stock owned or leased by the district
3-19 or for the operation of the rail facilities of the district.
3-20 (8) "Maintenance and operating expenses" means all
3-21 expenses of operating and maintaining a district and its rail
3-22 facilities, including all compensation, labor, materials, repairs,
3-23 and extensions necessary, required, or convenient in the discretion
3-24 of the board to render efficient service or to maintain and operate
3-25 the district, and taxes or other amounts paid, payable, or to be
3-26 paid to the United States pursuant to Section 148(f) of the
3-27 Internal Revenue Code of 1986 (26 U.S.C. Section 148), or any
3-28 similar law.
3-29 (9) "Maintenance facility" includes a workshop, a
3-30 service, storage, security, or personnel facility, temporary or
3-31 transient lodging for district employees, and equipment for any
3-32 type of facility.
3-33 (10) "Person" has the meaning assigned by Section
3-34 311.005, Government Code.
3-35 (11) "Rail facilities" means any real, personal, or
3-36 mixed property, or any interest in that property that is determined
3-37 by the board to be necessary or convenient for the provision of a
3-38 rural rail transportation system and all property or interests
3-39 necessary or convenient for the acquiring, providing, constructing,
3-40 enlarging, remodeling, renovating, improving, furnishing, using, or
3-41 equipping of the system, including rights-of-way, earthworks and
3-42 structures, trackwork, train controls, stations, rolling stock, and
3-43 maintenance facilities.
3-44 (12) "Revenues" means all income, receipts, and
3-45 collections received by, to be received by, or pledged to the
3-46 district from or by any source, except a restricted gift or a grant
3-47 in aid of construction.
3-48 (13) "Right-of-way" means a right of passage over
3-49 property; a strip of land in length and width determined required,
3-50 necessary, or convenient by the board over, on, or under which
3-51 trackwork is or is to be constructed or acquired; or a right of
3-52 precedential passing.
3-53 (14) "Rolling stock" means locomotives, engines, rail
3-54 cars, repair construction cars, or other cars designed to operate
3-55 on trackwork.
3-56 (15) "Station" means a passenger or freight service
3-57 building, terminal, or station, ticketing facility, waiting area,
3-58 platform, concession, elevator, escalator, facility for handicapped
3-59 access, access road, parking facility for passengers, baggage
3-60 handling facility, local maintenance facility, and offices for
3-61 district purposes, together with any interest in real property
3-62 necessary or convenient for any of the listed items.
3-63 (16) "Trackwork" means track, track beds, track bed
3-64 preparation, ties, rail fasteners, slabs, rails, emergency
3-65 crossovers, setout tracks, storage track, and switches.
3-66 (17) "Train controls" includes signalling,
3-67 interlocking equipment, speed monitoring equipment, emergency
3-68 braking systems, central traffic control facilities, and
3-69 communication systems.
3-70 <(3) "System" means all real and personal property
4-1 held or used for rail transportation purposes, including land,
4-2 easements, rights-of-way, other interests in land, franchises,
4-3 stations, platforms, terminals, garages, shops, control houses,
4-4 other buildings and structures, rolling stock, tracks, signals,
4-5 other equipment, supplies, and other facilities necessary or
4-6 convenient for the use of or access to rail transportation.>
4-7 Sec. 3. CREATION, RE-CREATION, OR DISSOLUTION OF DISTRICT.
4-8 (a) The commissioners courts of two or more eligible counties
4-9 that, taken together, constitute a contiguous geographic area may
4-10 by order create or re-create a rural rail transportation district
4-11 consisting of the territory of the counties whose commissioners
4-12 courts adopt the order.
4-13 (b) <After approval by the board of directors of a district,
4-14 the commissioners court of an eligible county by order may include
4-15 the territory of that county in the district.>
4-16 <(c)> A county eligible to create or re-create <form or
4-17 join> a district is one in which is located a rail line that is in
4-18 the process of being or has been abandoned through a bankruptcy
4-19 court or Interstate Commerce Commission proceeding, or any line
4-20 carrying 3 million gross tons per mile per year or less.
4-21 (c) The commissioners courts of two or more eligible
4-22 counties that create a district or provide for the re-creation of a
4-23 district by the addition of one or more counties shall by
4-24 concurrent order at the time of creation or re-creation:
4-25 (1) declare the boundaries of the district as the
4-26 boundaries of the counties included;
4-27 (2) designate the name of the district; and
4-28 (3) designate the number of board members, which may
4-29 not be less than four, and the manner of their appointment.
4-30 (d) The commissioners courts of all counties included within
4-31 a district by order may provide for the dissolution of the district
4-32 if:
4-33 (1) the commissioners courts determine that the
4-34 dissolution will not impair an obligation of any contract of the
4-35 district; and
4-36 (2) the dissolution order will become effective only
4-37 on the creation or re-creation of another district in which each
4-38 county included within the dissolving district is included.
4-39 (e) A district created or re-created under this section
4-40 automatically assumes any obligation of a contract executed by the
4-41 district or a predecessor district and in force on the date of the
4-42 creation or re-creation unless the contract expressly expires on
4-43 the date of dissolution or re-creation of the district that
4-44 executed the contract.
4-45 Sec. 4. Board of Directors; Employees. (a) <Each
4-46 commissioners court that participates in the creation of or joins a
4-47 district shall appoint one person to be a member of the board of
4-48 directors of the district. Provided however, that if the district
4-49 shall be composed of three counties or less, then each
4-50 commissioners court shall appoint two directors to the board of
4-51 directors.> The board of directors is responsible for the
4-52 management, operation, and control of the district.
4-53 (b) To be eligible for appointment to the board, a person
4-54 must be a resident of the district. A board member serves for a
4-55 term of two years ending on the second anniversary of the latest
4-56 date a concurrent order was adopted creating or re-creating the
4-57 district. A vacancy on the board shall be filled for the remainder
4-58 of the term by the commissioners court that appointed the member
4-59 who vacated the position. A board member may be removed from
4-60 office for neglect of duty or malfeasance in office by the
4-61 commissioners court that appointed the member, after at least 10
4-62 days' written notice to the member and a hearing before the
4-63 commissioners court. At a hearing on the question of removal of a
4-64 board member, the board member is entitled to be heard in person or
4-65 through counsel.
4-66 (c) Members of the board shall select a president,
4-67 vice-president, treasurer, and secretary. The secretary is not
4-68 required to be a board member <their presiding officers>. The
4-69 board shall hold at least one regular meeting each month for the
4-70 purpose of transacting business of the district. The president
5-1 <presiding officer> may call special meetings of the board. A
5-2 majority of the members is a quorum.
5-3 (d) The board shall adopt rules for its proceedings and may
5-4 employ and compensate persons to carry out the powers and duties of
5-5 the district. The right to control and regulate the affairs of the
5-6 district is vested exclusively in the board except as specifically
5-7 otherwise provided by this Act.
5-8 (e) A board member or employee of a district may not be
5-9 pecuniarily interested, directly or indirectly, in any contract or
5-10 agreement to which the district is a party.
5-11 (f) Notice of a meeting of the board shall be posted at the
5-12 administrative office of the district and at the courthouse in the
5-13 county in which that office is located. In all other respects
5-14 Chapter 271, Acts of the 60th Legislature, Regular Session, 1967
5-15 (Article 6252-17, Vernon's Texas Civil Statutes), applies to
5-16 meetings of the board.
5-17 Sec. 5. POWERS AND DUTIES OF DISTRICT. (a) A rural rail
5-18 transportation district is a public body and a political
5-19 subdivision of the state exercising public and essential
5-20 governmental functions and having all the powers necessary or
5-21 convenient to carry out the purposes of this Act, including the
5-22 powers granted in this section. A district, in the exercise of
5-23 powers under this Act, is performing only governmental functions
5-24 and is a "governmental unit" within the meaning of Chapter 101,
5-25 Civil Practice and Remedies Code. A district is a "local
5-26 government" under Chapter 1084, Acts of the 70th Legislature,
5-27 Regular Session, 1987 (Article 715c, Vernon's Texas Civil
5-28 Statutes); an "issuer" under Chapter 503, Acts of the 54th
5-29 Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes),
5-30 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
5-31 (Article 717k-3, Vernon's Texas Civil Statutes), the Bond
5-32 Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
5-33 Statutes), Chapter 53, Acts of the 70th Legislature, 2nd Called
5-34 Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), and
5-35 Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
5-36 (Article 717q, Vernon's Texas Civil Statutes); and a "public
5-37 agency" under Chapter 3, Acts of the 61st Legislature, Regular
5-38 Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), and
5-39 Chapter 400, Acts of the 66th Legislature, 1979 (Article 717m-1,
5-40 Vernon's Texas Civil Statutes). The acquisition, improvement, or
5-41 repair of rail facilities by a district is an "eligible project"
5-42 under Chapter 656, Acts of the 68th Legislature, Regular Session,
5-43 1983 (Article 717q, Vernon's Texas Civil Statutes).
5-44 (b) A district has perpetual succession.
5-45 (c) A district may sue and be sued in all courts of
5-46 competent jurisdiction, may institute and prosecute suits without
5-47 giving security for costs, and may appeal from a judgment without
5-48 giving supersedeas or cost bond. An action at law or in equity
5-49 against the district shall be brought in the county in which the
5-50 principal office of the district is located, except that in eminent
5-51 domain proceedings suit shall be brought in the county in which the
5-52 land is located.
5-53 (d) A district may acquire by grant, purchase, gift, devise,
5-54 lease, or otherwise and may hold, use, sell, lease, or dispose of
5-55 real and personal property, licenses, patents, rights, and
5-56 interests necessary, convenient, or useful for the full exercise of
5-57 any of its powers under this Act.
5-58 (e) A district may plan, acquire, construct, complete,
5-59 develop, own, operate, and maintain rail facilities inside or
5-60 outside the district, and for those purposes may use streets,
5-61 alleys, roads, highways, and other public ways of any municipality,
5-62 county, or other political subdivision and may relocate, raise,
5-63 reroute, change the grade of, or alter, at the expense of the
5-64 district, the construction of any street, alley, highway, road,
5-65 railroad, electric lines and facilities, telegraph and telephone
5-66 properties and facilities, pipelines and facilities, conduits and
5-67 facilities, and other properties, whether publicly or privately
5-68 owned, as necessary or useful in the construction, reconstruction,
5-69 repair, maintenance, and operation of rail facilities. A district
5-70 may acquire by purchase, whenever it considers the purchase
6-1 expedient, any land, property rights, right-of-way, franchises,
6-2 easements, and other interests in land as it considers necessary
6-3 for the acquisition, construction, or operation of any rail
6-4 facility on such terms and at such price as agreed to between the
6-5 district and the owner and may take title in the name of the
6-6 district. The governing body of every municipality, county, other
6-7 political subdivision, or public agency is authorized without any
6-8 form of advertisement to make conveyance of title or rights and
6-9 easements to any property needed by the district to effect its
6-10 purposes in connection with the acquisition, construction, or
6-11 operation of rail facilities <a system within its boundaries, both
6-12 inside and outside the limits of incorporated cities, towns, and
6-13 villages, and has the right to use the streets, alleys, roads,
6-14 highways, and other public ways and to relocate, raise, lower,
6-15 reroute, regulate, change the grade of, and alter the construction
6-16 of any street, alley, highway, or road; any railroad track, bridge,
6-17 or other facility or property; any gas transmission or distribution
6-18 pipes, pipelines, mains, or other facility or property; any water,
6-19 sanitary sewer, or storm sewer pipes, pipelines, or other facility
6-20 or property; any electric lines, telegraph or telephone facility or
6-21 property; any cable television lines, cables, conduits, or other
6-22 facility or property; and pipelines and facilities, conduits and
6-23 facilities, or other property whether publicly or privately owned,
6-24 in the construction, reconstruction, repair, maintenance, or
6-25 operation of the system. A district shall pay the cost of any
6-26 change made under this subsection and is liable for any damage to
6-27 property occurring because of the change>.
6-28 (f) A district has the right of eminent domain to acquire
6-29 lands in fee simple and any interest less than fee simple in, on,
6-30 under, or above lands<, including, without limitation, easements,
6-31 rights-of-way, rights of use of airspace or subsurface space. The
6-32 right may not be exercised in a manner that would unduly interfere
6-33 with interstate commerce or unduly impair the neighborhood
6-34 character of property surrounding or adjacent to the property
6-35 sought to be condemned>. Eminent domain proceedings brought by a
6-36 district are governed by Title 52, Revised <Civil> Statutes <of
6-37 Texas, 1925>, except as it is inconsistent with this Act.
6-38 Proceedings for the exercise of the power of eminent domain are
6-39 commenced by the adoption by the board of a resolution declaring
6-40 the public necessity for the acquisition by the district of the
6-41 property or interest described in the resolution, and that the
6-42 acquisition is necessary and proper for the construction,
6-43 extension, improvement, or development of the system and is in the
6-44 public interest. The resolution of the district is conclusive
6-45 evidence of the public necessity of the proposed acquisition and
6-46 that the real or personal property or interest in property is
6-47 necessary for public use.
6-48 (g) A district may enter into agreements with any other
6-49 public utility, private utility, communication system, common
6-50 carrier, or transportation system for the joint use of its
6-51 facilities, installations, or properties within or outside the
6-52 district and establish through routes, joint fares, and, subject to
6-53 approval of any tariff-regulating body having jurisdiction,
6-54 divisions of tariffs.
6-55 (h) A district may adopt rules to govern the operation of
6-56 the district, its employees, the rail facilities, service provided
6-57 by the district, and any other necessary matter concerning its
6-58 purposes, including rules regarding health, safety, alcohol or
6-59 beverage service, food service, and telephone and utility services,
6-60 to protect the health, safety, and general welfare of the state.
6-61 (i) A district may enter into joint ownership agreements
6-62 with any person.
6-63 (j) A district shall establish and maintain rents or other
6-64 compensation for the use of the facilities of the system acquired,
6-65 constructed, operated, regulated, or maintained by the district
6-66 that are reasonable and nondiscriminatory and, together with grants
6-67 received by the district, are sufficient to produce revenues
6-68 adequate:
6-69 (1) to pay all expenses necessary to the operation and
6-70 maintenance of the properties and facilities of the district;
7-1 (2) to pay the interest on and principal of all bonds
7-2 issued by the district under this Act payable in whole or in part
7-3 from the revenues, as they become due and payable; and
7-4 (3) to fulfill the terms of any agreements made with
7-5 the holders of bonds or with any person in their behalf.
7-6 (k) <(i)> A district may make contracts, leases, and
7-7 agreements with, and accept grants and loans from the United States
7-8 of America, its departments and agencies, the state, its agencies,
7-9 and political subdivisions, and public or private corporations and
7-10 persons, and may generally perform all acts necessary for the full
7-11 exercise of the powers vested in it. A district may acquire
7-12 rolling stock or other property under conditional sales contracts,
7-13 leases, equipment trust certificates, or any other form of contract
7-14 or trust agreement. Any revenue bond indenture may provide
7-15 limitations on the exercise of the powers granted by this section,
7-16 and the limitations apply so long as any of the revenue bonds
7-17 issued pursuant to the indenture are outstanding and unpaid.
7-18 (l) <(j)> A district may sell, lease, convey, or otherwise
7-19 dispose of any of its rights, interests, or properties not needed
7-20 for or, in the case of leases, not inconsistent with the efficient
7-21 operation and maintenance of the system. It may, on adoption of an
7-22 order by the board, sell, lease, or otherwise dispose of, at any
7-23 time, any surplus materials or personal or real property not needed
7-24 for its requirements or for the purpose of carrying out its power
7-25 under this Act.
7-26 (m) <(k)> A district by resolution may adopt rules and
7-27 regulations governing the use, operation, and maintenance of the
7-28 system and shall determine all routings and change them whenever
7-29 the board considers it advisable.
7-30 (n) <(l)> A district may lease the system or any part to, or
7-31 contract for the use or operation of the system or any part by, any
7-32 operator. A district shall encourage to the maximum extent
7-33 practicable the participation of private enterprise in the
7-34 operation of the system. The term of a lease or operating contract
7-35 under this subsection may not exceed 20 years.
7-36 (o) <(m)> A district may contract with any county or other
7-37 political subdivision of the state for the district to provide rail
7-38 transportation services to any area outside the boundaries of the
7-39 district on such terms and conditions as may be agreed to by the
7-40 parties.
7-41 (p) Before beginning the operation of rail facilities the
7-42 board of a district shall adopt an annual operating budget
7-43 specifying the anticipated revenues and expenses of the district
7-44 for the remainder of the fiscal year, and the district shall adopt
7-45 an operating budget for each succeeding fiscal year. The fiscal
7-46 year of the district ends September 30 unless changed by the board
7-47 not more than once in any three-year period. The board shall hold
7-48 a public hearing before adopting each budget except the initial
7-49 budget. Notice of each hearing must be published at least seven
7-50 days before the date of the hearing in a newspaper of general
7-51 circulation in the district. A budget may be amended at any time
7-52 if notice of the proposed amendment is given in the notice of
7-53 meeting. An expenditure that is not budgeted may not be made.
7-54 (q) The board of a district shall by resolution name one or
7-55 more banks for the deposit of district funds. District funds are
7-56 public funds and may be invested in securities permitted by the
7-57 Public Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas
7-58 Civil Statutes). To the extent funds of the district are not
7-59 insured by the Federal Deposit Insurance Corporation or its
7-60 successor, they shall be collateralized in the manner provided for
7-61 county funds.
7-62 Sec. 6. Bonds and Notes. (a) A district may issue revenue
7-63 bonds and notes from time to time and in such amounts as its board
7-64 considers necessary or appropriate for the acquisition, purchase,
7-65 construction, reconstruction, repair, equipping, improvement, or
7-66 extension of its rail facilities <system>. All bonds and notes are
7-67 fully negotiable and may be made redeemable before maturity, at the
7-68 option of the issuing district, at such price or prices and under
7-69 such terms and conditions as may be fixed by the issuing district
7-70 in the resolution authorizing the bonds or notes, and may be sold
8-1 at public or private sale, as determined by the board.
8-2 (b) Before delivery, all bonds and notes authorized to be
8-3 issued, except notes issued to an agency of the federal or state
8-4 government, and the records relating to their issuance shall be
8-5 submitted to the attorney general for examination. If the attorney
8-6 general finds that they have been issued in accordance with the
8-7 constitution and this Act, and that they will be binding
8-8 obligations of the district issuing them, the attorney general
8-9 shall approve them, and they shall be registered by the state
8-10 comptroller of public accounts. After approval, registration, and
8-11 sale and delivery of the bonds to the purchaser, they are
8-12 incontestable.
8-13 (c) In order to secure the payment of the bonds or notes,
8-14 the district may encumber and pledge all or any part of the
8-15 revenues of its rail facilities <system>, may mortgage and encumber
8-16 all or any part of the properties of the rail facilities <system>,
8-17 and everything pertaining to them acquired or to be acquired, and
8-18 may prescribe the terms and provisions of the bonds and notes in
8-19 any manner not inconsistent with this Act. If not prohibited by
8-20 the resolution or indenture relating to outstanding bonds or notes,
8-21 any district may encumber separately any item or items of real
8-22 estate or personalty.
8-23 (d) All bonds and notes are legal and authorized investments
8-24 for banks, trust companies, savings and loan associations, and
8-25 insurance companies. The bonds and notes are eligible to secure
8-26 the deposit of public funds of the state, cities, towns, villages,
8-27 counties, school districts, or other political corporations or
8-28 subdivisions of the state. The bonds and notes are lawful and
8-29 sufficient security for the deposits to the extent of the bonds'
8-30 principal amount or market value, whichever is less<, when
8-31 accompanied by all unmatured coupons appurtenant to them>.
8-32 (e) Bonds payable solely from revenues may be issued by
8-33 resolution of the board.
8-34 Sec. 6A. ALTERNATIVE FINANCING. (a) A district may use the
8-35 procedures provided by Chapter 271, Local Government Code, to
8-36 finance rail facilities of the district, except to the extent of
8-37 conflict with this Act and except that the district may not levy or
8-38 collect ad valorem taxes.
8-39 (b) A district may issue nonnegotiable purchase money notes,
8-40 payable in installments and secured by the property being acquired
8-41 or constructed, to acquire or construct rail facilities. A
8-42 district may also secure the obligation of the notes by a pledge or
8-43 undertaking to issue bonds or bond anticipation notes. A district
8-44 may covenant with the purchaser of bond anticipation notes that the
8-45 proceeds of one or more particular series of bonds will be used for
8-46 the ultimate payment of the purchase money notes or bond
8-47 anticipation notes.
8-48 SECTION 2. All orders by the commissioners courts of
8-49 eligible counties, as defined by Chapter 623, Acts of the 67th
8-50 Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
8-51 Civil Statutes), as amended by this Act, that were adopted before
8-52 the effective date of this Act and have not been repealed, that
8-53 purported to create a rural rail transportation district under that
8-54 Act, that named the counties to be included in the district, and
8-55 that are not the subject of litigation as to their validity on the
8-56 effective date of this Act are validated, ratified, and confirmed
8-57 as if they were adopted in compliance with all applicable law.
8-58 SECTION 3. The board of each rural rail transportation
8-59 district that was created or re-created before the effective date
8-60 of this Act or is validated by this Act shall, not later than the
8-61 90th day after the effective date of this Act, file with the
8-62 Railroad Commission of Texas a certified copy of the orders
8-63 creating or re-creating the district.
8-64 SECTION 4. The importance of this legislation and the
8-65 crowded condition of the calendars in both houses create an
8-66 emergency and an imperative public necessity that the
8-67 constitutional rule requiring bills to be read on three several
8-68 days in each house be suspended, and this rule is hereby suspended,
8-69 and that this Act take effect and be in force from and after its
8-70 passage, and it is so enacted.
9-1 * * * * *
9-2 Austin,
9-3 Texas
9-4 April 19, 1993
9-5 Hon. Bob Bullock
9-6 President of the Senate
9-7 Sir:
9-8 We, your Committee on State Affairs to which was referred S.B. No.
9-9 968, have had the same under consideration, and I am instructed to
9-10 report it back to the Senate with the recommendation that it do
9-11 pass, as amended, and be printed.
9-12 Rosson,
9-13 Vice-Chairman
9-14 * * * * *
9-15 WITNESSES
9-16 FOR AGAINST ON
9-17 ___________________________________________________________________
9-18 Name: Tom C. Massey x
9-19 Representing: South Orient Railroad Co Ltd.
9-20 City: San Angelo
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