By Bosse H.B. No. 2229
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to creation of or participation in and operation of a
1-3 rural transit district by certain counties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The legislature finds that:
1-6 (1) the state contains many rural areas where citizens
1-7 are dependent on public transportation for health, employment,
1-8 social and other services;
1-9 (2) the public transportation systems in some rural
1-10 areas are heavily dependent on non-dedicated state and federal
1-11 funding sources for their continued existence; and
1-12 (3) mobility for all citizens, which must include
1-13 alternatives to the private passenger motor vehicle, is essential
1-14 to the continued growth and maintenance of vital services in rural
1-15 areas.
1-16 SECTION 2. In this Act, unless the context requires
1-17 otherwise:
1-18 (1) "Board" means the board of directors of a rural
1-19 transit district.
1-20 (2) "District" means a rural transit district created
1-21 under this Act.
1-22 (3) "Mass transit" means the transportation of
1-23 passengers and their hand-carried packages or baggage by any means
2-1 of surface, overhead, or underground transportation except aircraft
2-2 or taxicab.
2-3 (4) "Rural areas" means any area outside an urbanized
2-4 area, as designated by the United States Census Bureau.
2-5 (5) "System" means all real and personal property
2-6 owned or held, including property held in accordance with a
2-7 contract with the owner making the property subject to the control
2-8 of or regulation by the district, by the district for mass transit
2-9 purposes, including but not limited to land, interests in land,
2-10 buildings, structures, rights-of-way, easements, franchises, rail
2-11 lines, bus lines, mass transportation facilities, rapid transit
2-12 facilities, stations, platforms, terminals, rolling stock, garages,
2-13 shops, equipment and facilities (including vehicle parking areas
2-14 and facilities), control houses, signals, other equipment,
2-15 supplies, and other facilities necessary or convenient for the use
2-16 of or access to mass transit by persons or vehicles or for the
2-17 protection or environmental enhancement of mass transit.
2-18 SECTION 3. (a) The commissioners courts of two or more
2-19 eligible counties that, taken together, constitute a contiguous
2-20 geographic area may institute proceedings to create or re-create a
2-21 rural transit district in the manner described in this section.
2-22 (b) The commissioners courts shall by resolution fix a time
2-23 and a place for holding a public hearing on the question of
2-24 creating or re-creating a district. The resolution shall declare
2-25 the boundaries of the area proposed to be included in such
3-1 district, including the areas represented by contiguous counties
3-2 that have agreed to the creation or re-creation of the district.
3-3 (c) Notice of the time and place of such public hearing,
3-4 including a description of the area proposed to be included in such
3-5 district, shall be published once a week for two consecutive weeks
3-6 in a newspaper of general circulation in such county, the first
3-7 publication to be not less than 15 days prior to the date fixed for
3-8 such hearing. The commissioners courts shall furnish to the Texas
3-9 Department of Transportation or any successor agency a copy of the
3-10 notice.
3-11 (d) The commissioners court shall conduct said hearing at
3-12 the time and place specified in such notice, and may continue such
3-13 hearing from day to day and from time to time until completed. Any
3-14 interested person may appear and offer evidence for or against the
3-15 creation or re-creation of the proposed district, and may present
3-16 evidence as to whether or not the creation or re-creation of such
3-17 proposed district and the construction and operation of a mass
3-18 transit system in such area (1) would be of benefit to persons and
3-19 property situated within the boundaries of the proposed district,
3-20 (2) would be of public utility, and (3) would be in the public
3-21 interest, as well as any other facts bearing upon the creation or
3-22 re-creation of such a district and the construction and operation
3-23 of such system.
3-24 (e) If, after hearing the evidence adduced at such hearing,
3-25 the commissioners courts of the participating counties finds that
4-1 the creation or re-creation of such a district, and the operation
4-2 of such a system, would be of benefit to persons and property
4-3 situated within the boundaries of the proposed district, would be
4-4 of public utility, and would be in the public interest, such
4-5 commissioners courts shall adopt a resolution creating or
4-6 re-creating the district and prescribing the territory to be
4-7 included, but the actual territory included in the district is
4-8 subject to the results of the election provided for in this Act.
4-9 The resolution shall also designate the name of the district that,
4-10 when so created or re-created and confirmed at an election held for
4-11 that purpose, shall have and may exercise the powers authorized by
4-12 this Act.
4-13 (f) After the hearing, the results of the hearing and the
4-14 resolutions adopted by the creating entities shall be submitted to
4-15 the Texas Transportation Commission and the Comptroller of Public
4-16 Accounts.
4-17 (g) The commissioners court of all counties included within
4-18 a district by order may provide for the dissolution of the district
4-19 if the commissioners courts determine that the dissolution will not
4-20 impair an obligation of any contract of the district.
4-21 (h) A district created under this section automatically
4-22 assumes any obligation of contract executed by the district or a
4-23 predecessor district or component rural transit system(s) and in
4-24 force on the date of the creation or re-creation unless the
4-25 contract expressly expires on the date of dissolution or
5-1 re-creation of the district that executed the contract.
5-2 SECTION 4. (a) Each commissioners court that participates
5-3 in the creation of or joins a district shall appoint one person to
5-4 be a member of the board of directors of the district. Provided
5-5 however, that if the district shall be composed of three counties
5-6 or less, then each commissioners court shall appoint two directors
5-7 to the board of directors. If the district shall be composed of
5-8 ten counties or more, then the member counties shall alternate
5-9 board member appointments with half of the counties making the
5-10 original appointments and the other half making the next round of
5-11 appointments.
5-12 (b) The board is responsible for the management, operation
5-13 and control of the district.
5-14 (c) To be eligible for appointment to the board, a person
5-15 must be a resident of the county governed by the Commissioner's
5-16 Court that appoints that person and a qualified voter of the
5-17 district. A board member serves for a term of two years. A
5-18 vacancy on the board that occurs prior to the expiration of that
5-19 term shall be filled for the remainder of the term by the
5-20 commissioners court that appointed the member who vacated the
5-21 position. A board member may be removed from office for neglect of
5-22 duty or malfeasance in office by the commissioners court that
5-23 appointed the member, after at least 10 days' written notice to the
5-24 member and a hearing before the commissioners court. At a hearing
5-25 on the question of removal of a board member, the board member is
6-1 entitled to be heard in person or through counsel.
6-2 (d) Members of the board shall select their presiding
6-3 officers. The board shall hold at least one regular meeting each
6-4 month for the purpose of transacting business of the district. The
6-5 presiding officer may call special meetings of the board. A
6-6 majority of the members is a quorum.
6-7 (e) The board shall adopt rules for its proceedings and may
6-8 employ and compensate persons to carry out the powers and duties
6-9 of the district. The right to control and regulate the affairs of
6-10 the district is vested exclusively in the board except as
6-11 specifically otherwise provided by this Act.
6-12 (f) The board shall provide notice and hold its meetings
6-13 pursuant to Government Code, Section 551.001 et seq., except that
6-14 the board shall have notices of its meetings posted on a bulletin
6-15 board located at a place convenient to the public at its
6-16 administrative offices and a bulletin board located at a place
6-17 convenient to the public at the county courthouse of the member
6-18 counties.
6-19 (g) A board member or employee of a district may not be
6-20 pecuniarily interested, directly or indirectly, in any contract or
6-21 agreement to which the district is a party.
6-22 SECTION 5. (a) After the original board is organized, at
6-23 such time as it deems implementation of the district to be
6-24 feasible, it shall call an election to establish a source of
6-25 continuing revenue for mass transit in the form of an additional
7-1 local sales and use tax in an amount determined by the board as
7-2 provided by subsection (a) of Section 9 of this article.
7-3 (b) Before ordering an election, the board shall notify the
7-4 commissioners court of each county included within the initial
7-5 territory of the district of its intention to do so. Within 30
7-6 days after receipt of the notice, each commissioners court by
7-7 resolution shall create not more than five designated election
7-8 areas in the rural areas of the county. Each designated election
7-9 area's boundaries, to the extent practicable, shall coincide with
7-10 a boundary of a county voting precinct so that insofar as
7-11 practicable no county voting precinct is divided between two
7-12 different designated election areas. The total area of all
7-13 designated election areas shall include all the rural area within
7-14 the initial territory of the district.
7-15 (c) In addition to the provisions of this section, notice
7-16 and conduct of an election under this section must comply with
7-17 state election laws. Notice of the election must include a
7-18 description of the rate of any proposed tax. The board shall send
7-19 copies of the notice to the Texas Department of Transportation and
7-20 to the Comptroller.
7-21 (d) At an election under this section, the ballots shall be
7-22 prepared to provide for voting for or against the proposition and
7-23 shall state: "Shall the creation of (name of district) be
7-24 confirmed and shall the levy of the proposed local sales and use
7-25 tax at the rate of ____ (insert appropriate rate) percent be
8-1 authorized?"
8-2 (e) Immediately after the election, the presiding judge of
8-3 each election precinct shall return the results to the board, and
8-4 the board shall canvass the returns and declare the results by
8-5 county. In those counties where a majority of the votes cast is in
8-6 favor of the confirmation of the creation of the district and the
8-7 levy of the proposed tax, the district shall continue to exist and
8-8 be comprised of those counties. In those counties where a majority
8-9 of the votes cast is against the confirmation of the creation of
8-10 the district and the levy of the proposed tax, the district shall
8-11 cease to exist. If the votes cast are such that the district will
8-12 continue to exist, the board shall enter the results on its minutes
8-13 and adopt an order declaring that the creation of the district is
8-14 confirmed and describing the territory which comprises the
8-15 district. A certified copy of the order shall be filed with the
8-16 Texas Department of Transportation, and with the Comptroller of
8-17 Public Accounts, and in the deed records of each county in which
8-18 the district is located. The order shall include the date of the
8-19 election, the proposition voted on, the number of votes cast for
8-20 and against the proposition in each election unit, and the number
8-21 of votes by which the proposition was approved in each county in
8-22 which the district was approved.
8-23 (f) If the votes cast at the confirmation and tax election
8-24 are such that the district ceases to exist in its entirety, the
8-25 board shall enter an order so declaring and file a certified copy
9-1 of the order with the Texas Department of Transportation and with
9-2 the Comptroller of Public Accounts, and the district shall be
9-3 dissolved.
9-4 (g) The cost of the confirmation and tax election in each
9-5 county shall be paid by the participating county.
9-6 (h) If the election results in the confirmation of the
9-7 district, the district shall, within the limits confirmed, be
9-8 authorized to function in accordance with the terms of this Act,
9-9 and the board may levy and collect the proposed tax within those
9-10 limits.
9-11 (i) If the continued existence of a district is not
9-12 confirmed by election within three years after the effective date
9-13 of the resolution creating the district, the district ceases to
9-14 exist on the expiration of the three years. In addition, the
9-15 commissioners courts of the counties that have created a district
9-16 that has not been confirmed by election may, with the consent of
9-17 the board of the district, abolish the district at any time before
9-18 confirmation or expiration of the district under this section.
9-19 SECTION 6. Upon actual receipt by the Comptroller of Public
9-20 Accounts of notification of adoption of a local sales and use tax
9-21 containing the information required by subsection (e) of Section 5
9-22 of this Act, there shall elapse one whole calendar quarter prior to
9-23 the adoption of a local sales and use tax becoming effective.
9-24 Thereafter, the adoption shall be effective beginning on the first
9-25 day of the next calendar quarter following the elapsed calendar
10-1 quarter.
10-2 SECTION 7. (a) A rural transit district, when created and
10-3 confirmed, is a public body exercising public and essential
10-4 governmental functions and having all the powers necessary or
10-5 convenient to carry out the purposes of this Act, including the
10-6 powers granted in this section.
10-7 (b) A district has perpetual succession.
10-8 (c) A district may sue and be sued in all courts of
10-9 competent jurisdiction, may institute and prosecute suits without
10-10 giving security for costs, and may appeal from a judgment without
10-11 giving supersedeas or cost bond.
10-12 (d) A district may acquire by grant, purchase, gift, devise,
10-13 lease, or otherwise, and may hold, use, sell, lease or dispose of,
10-14 real and personal property of every kind and nature whatsoever, and
10-15 licenses, patents, rights and interests necessary, convenient or
10-16 useful for the full exercise of any of its powers pursuant to the
10-17 provisions of this Act. Before a district acquires an interest in
10-18 real property for more than $20,000, the board of the district
10-19 shall cause the property to be appraised by two appraisers working
10-20 independently of each other.
10-21 (e) A district shall have the power to acquire, construct,
10-22 complete, develop, own, operate and maintain a system or system
10-23 within its boundaries, and both within and without the boundaries
10-24 of incorporated cities, towns and villages and political
10-25 subdivisions, and for such purposes shall have the right to use the
11-1 streets, alleys, roads, highways and other public ways and to
11-2 relocate, raise, reroute, change the grade of, and alter the
11-3 construction of, any street, alley, highway, road, railroad,
11-4 electric lines and facilities, telegraph and telephone properties
11-5 and facilities, pipelines and facilities, conduits and facilities,
11-6 and other properties, whether publicly or privately owned, as
11-7 necessary or useful in the construction, reconstruction, repair,
11-8 maintenance and operation of the system, or to cause each and all
11-9 of said things to be done at the district's sole expense. The
11-10 district shall not proceed with any action to change, alter or
11-11 damage the property or facilities of the state, its municipal
11-12 corporations, agencies or political subdivisions or of owners
11-13 rendering public services, or which shall disrupt such services
11-14 being provided by others, or to otherwise inconvenience the owners
11-15 of such property or facilities, without having first obtained the
11-16 written consent of such owners. In the event the owners of such
11-17 property or facilities desire to handle any such relocation,
11-18 raising, change in the grade of, or alteration in the construction
11-19 of such property or facilities with their own forces, or to cause
11-20 the same to be done by contractors of their own choosing, the
11-21 district shall have the power to enter into agreements with such
11-22 owners providing for the necessary relocations, changes or
11-23 alterations of such property or facilities by the owners and/or
11-24 such contractors and the reimbursement by the district to such
11-25 owners of the costs incurred by such owners in making such
12-1 relocations, changes or alterations and/or causing the same to be
12-2 accomplished by such contractors.
12-3 (f) In the event the district, in exercising any of the
12-4 powers conferred by this Act, makes necessary the relocation,
12-5 adjustment, raising, lowering, rerouting or changing the grade of
12-6 or altering the construction of any street, alley, highway,
12-7 overpass, underpass, or road, any railroad track, bridge or other
12-8 facilities or properties, any electric lines, conduits or other
12-9 properties, any gas transmission or distribution pipes, pipelines,
12-10 mains or other facilities or properties, any cable television
12-11 lines, cables, conduits or other facilities or properties, or any
12-12 other pipelines and any facilities or properties relating thereto,
12-13 any and all such relocations, adjustments, raising, lowering,
12-14 rerouting or changing the grade or altering of construction shall
12-15 be accomplished at the sole cost and expense of the district, and
12-16 all damages which may be suffered by the owners of such property or
12-17 facilities shall be borne by the district.
12-18 (g) The district shall have the power to enter into
12-19 agreements with any other public utility, private utility,
12-20 communication system, common carrier, or transportation system for
12-21 the joint use of their respective facilities, installations and
12-22 properties of whatever kind and character within the district and
12-23 to establish through routes, joint fares or transfer of passengers.
12-24 (h) A district may enter into joint ownership agreements
12-25 with any person.
13-1 (i) A district shall establish and maintain rates, fares,
13-2 tolls, charges, rents or other compensation for the use of the
13-3 facilities of the system acquired, constructed, operated or
13-4 maintained by the district which shall be reasonable and
13-5 nondiscriminatory and which, together with receipts from taxes
13-6 collected by the district, shall be sufficient to produce revenues
13-7 adequate:
13-8 (1) to pay all expenses necessary to the operation and
13-9 maintenance of the properties and facilities of the district;
13-10 (2) to pay the interest on and principal of all bonds
13-11 issued by the district under this Act which are payable in whole or
13-12 in part from such revenues, when and as the same shall become due
13-13 and payable;
13-14 (3) to pay all sinking fund and reserve fund payments
13-15 agreed to be made in respect of any such bonds, and payable out of
13-16 such taxes and revenues, when and as the same shall become due and
13-17 payable; and
13-18 (4) to fulfill the terms of any agreements made with
13-19 the holders of such bonds or with any person in their behalf.
13-20 (j) It is the intention of this Act that taxes levied and
13-21 the rates, fares, tolls, charges, rents and other compensation for
13-22 the use of the facilities of the system shall not be in excess of
13-23 what may be necessary to fulfill the obligations imposed upon the
13-24 district by this Act. Nothing herein shall be construed as
13-25 depriving the State of Texas of its power to regulate and control
14-1 such taxes, rates, fares, tolls, charges, rents and other
14-2 compensation, provided that the State of Texas does hereby pledge
14-3 to and agree with the purchasers and successive holders of the
14-4 bonds issued hereunder that the state will not limit or alter the
14-5 powers hereby vested in the district to establish and collect such
14-6 taxes, rates, fares, tolls, charges, rents and other compensation
14-7 as will produce revenues sufficient to pay the items specified in
14-8 subsection (i) of this section, or in any way to impair the rights
14-9 or remedies of the holders of the bonds, or of any person in their
14-10 behalf, until the bonds, together with the interest thereon, with
14-11 interest on unpaid installments of interest, and all costs and
14-12 expenses in connection with any action or proceedings by or on
14-13 behalf of the bondholders and all other obligations of the district
14-14 in connection with such bonds, are fully met and discharged.
14-15 (k) The district may make contracts, leases, and agreements
14-16 with, and accept grants and loans from the United States of
14-17 America, its departments and agencies, the State of Texas, its
14-18 agencies, counties, municipalities and political subdivisions,
14-19 public or private corporations, including a nonprofit corporation
14-20 created under a resolution of the board, and other persons, and may
14-21 generally perform all acts necessary for the full exercise of the
14-22 powers vested in it. The district may acquire rolling stock or
14-23 other property under conditional sales contracts, leases, equipment
14-24 trust certificates, or any other form of contract or trust
14-25 agreement. Any revenue bond indenture may provide limitations upon
15-1 the exercise of the powers stated in this section and such
15-2 limitations shall apply so long as any of the revenue bonds issued
15-3 pursuant to such indenture are outstanding and unpaid.
15-4 (l) The district may sell, lease, convey or otherwise
15-5 dispose of any of its rights, interests or properties which are not
15-6 needed for, or, in the case of leases, which are not inconsistent
15-7 with, the efficient operation and maintenance of the system. It
15-8 may sell, lease, or otherwise dispose of, at any time, any surplus
15-9 materials or personal or real property not needed for its
15-10 requirements or for the purpose of carrying out its power under
15-11 this Act.
15-12 (m) The district shall by resolution make all rules and
15-13 regulations governing the use, operation and maintenance of the
15-14 system and shall determine all routings and change the same
15-15 whenever it is deemed advisable by the board.
15-16 (n) The district shall have the power to lease the system or
15-17 any part thereof to, or contract for the use or operation of the
15-18 system or any part thereof by, any operator; provided, however,
15-19 that a lease of the entire system shall be subject to the written
15-20 consent and approval of the commissioners courts of the member
15-21 counties.
15-22 (o) The acquisition of any land or interest therein pursuant
15-23 to this Act, the planning, acquisition, establishment, development,
15-24 construction, improvement, maintenance, equipment, operation,
15-25 regulation, protection, and policing of the district's system and
16-1 facilities, and the exercise of any other powers herein granted a
16-2 district, are hereby declared to be public and governmental
16-3 functions, exercised for a public purpose, and matters of public
16-4 necessity.
16-5 (p) The district may contract with any city, county, or
16-6 other political subdivision for the district to provide public
16-7 transportation services to any area outside the boundaries of the
16-8 district on such terms and conditions as may be agreed to by the
16-9 parties. Nothing in Subsections (g) or (k) of this section
16-10 pertaining to powers of the district creates or confers any
16-11 governmental immunity or limitation of liability on any entity or
16-12 person other than the district.
16-13 (q) The board of a district shall by resolution name one or
16-14 more banks for the deposit of district funds. District fund are
16-15 public funds and may be invested in securities permitted by the
16-16 Public Funds Investment Act of 1987 (Government Code, Chapter
16-17 2256). To the extent funds of the district are not insured by the
16-18 Federal Deposit Insurance Corporation or its successor, they shall
16-19 be collateralized in the manner provided for county funds.
16-20 SECTION 8. (a) A district may issue revenue bonds and notes
16-21 from time to time and in such amounts as the board considers
16-22 necessary or appropriate for the acquisition, purchase,
16-23 construction, reconstruction, repair, equipping, improvement, or
16-24 extension of the system. All bonds and notes are fully negotiable
16-25 and may be made redeemable before maturity, at the option of the
17-1 issuing district, at such price or prices and under such terms and
17-2 conditions as may be fixed by the issuing district in the
17-3 resolution authorizing the bonds or notes, and may be sold at
17-4 public or private sale, as the board determines.
17-5 (b) Before delivery, all bonds and notes to be issued and
17-6 the records relating to their issuance must be submitted to the
17-7 attorney general for examination. If the attorney general finds
17-8 that they have been issued in accordance with the constitution and
17-9 this Act and they will be binding obligations of the district
17-10 issuing them, the attorney general shall approve them, and the
17-11 comptroller shall register them. After approval, registration, and
17-12 sale and delivery of the bonds to the purchaser, they are
17-13 incontestable.
17-14 (c) In order to secure the payment of the bonds or notes,
17-15 the district may encumber and pledge all or any part of the revenue
17-16 realized from any tax the district is authorized to levy, and all
17-17 or any part of the revenues of the system, may mortgage and
17-18 encumber all or any part of the properties of the system, and
17-19 everything pertaining to them acquired or to be acquired, and may
17-20 prescribe the terms and provisions of the bonds and notes in any
17-21 manner not inconsistent with this Act. If not prohibited by the
17-22 resolution or indenture relating to outstanding bonds or notes, a
17-23 district may encumber separately an item or items of real estate or
17-24 personality, including motor buses, transit cars, other vehicles,
17-25 machinery, and other equipment of any nature and acquire, use,
18-1 hold, or contract for any property under any lease arrangement,
18-2 chattel mortgage, or conditional sale, including but not limited to
18-3 transactions commonly known as equipment trust transactions.
18-4 (d) Refunding bonds or notes may be issued for the purposes
18-5 and in the manner provided by Article 717k, Vernon's Texas Civil
18-6 Statutes, Article 717k-3, Vernon's Texas Civil Statutes, or other
18-7 law.
18-8 (e) Whenever the revenues of any system are encumbered under
18-9 this Act, the expenses of operation and maintenance, including all
18-10 salaries, labor, materials, and repairs necessary to render
18-11 efficient service, and every proper item of expense are a first
18-12 lien and charge against the revenues.
18-13 (f) All bonds and notes are legal and authorized investments
18-14 for banks, trust companies, savings and loan associations, and
18-15 insurance companies. The bonds and notes are eligible to secure
18-16 the deposit of public funds of the state, cities, towns, villages,
18-17 counties, school districts, or other political corporations or
18-18 subdivisions of the state. The bonds and notes are lawful and
18-19 sufficient security for the deposits to the extent of the bonds'
18-20 principal amount or market value, whichever is less, when
18-21 accompanied by all unmatured coupons appurtenant to them.
18-22 (g) Bonds payable solely from revenues may be issued by
18-23 resolution of the board. Bonds, except refunding bonds, payable
18-24 wholly or partially from taxes, may not be issued unless authorized
18-25 by a majority vote of the qualified voters of the district voting
19-1 in an election called and held for that purpose.
19-2 SECTION 9. (a) Subject to approval at a tax election in
19-3 accordance with this Act, the board may levy and collect a local
19-4 sales and use tax for financing of the system. The provisions of
19-5 Tax Code, Chapter 322, shall be applicable to the levy, imposition
19-6 and collection of such tax. The permissible rates for a local
19-7 sales and use tax levied under this Act are:
19-8 (1) three-eights of one percent; and
19-9 (2) one-half of one percent.
19-10 (b) The board by order may decrease the local sales and use
19-11 tax rate or may call an election to increase or decrease the local
19-12 sales and use tax rate.
19-13 (c) At the election, the ballots shall be prepared to
19-14 permit voting for or against the proposition: "The increase
19-15 (decrease) of the local sales and use tax rate of (name of
19-16 district) to (percentage)." The increase or decrease in the tax
19-17 rate is effective if it is approved by a majority of the votes
19-18 cast. A notice of the election and a certified copy of the order
19-19 canvassing the election results shall be sent to the Texas
19-20 Department of Transportation and the comptroller and filed in the
19-21 deed records of the member counties in the same manner as provided
19-22 for a tax election by Section 5 of this Act.
19-23 (d) An increase or decrease in the rate of a local sales and
19-24 use tax already levied takes effect on the first day of the next
19-25 calendar quarter after actual notification to the comptroller,
20-1 except that if the comptroller notifies the presiding officer of
20-2 the board in writing before the 11th day after the day of receipt
20-3 of the notification that he requires more time to implement
20-4 collection and reporting procedures, the comptroller may delay
20-5 implementation for one whole calendar quarter. Thereafter, the new
20-6 tax rate takes effect on the first day of the next calendar quarter
20-7 following the elapsed quarter.
20-8 (e) The board may not adopt a sales and use tax or increase
20-9 the rate of its sales and use tax under this section if as a result
20-10 of the adoption of the tax or the tax increase the combined rate of
20-11 all sales and use taxes imposed by the district and other political
20-12 subdivisions of this state having territory in the district would
20-13 exceed two percent at any location in the district.
20-14 (f) If the voters of a district approve the adoption of a
20-15 sales and use tax or the increase in the sales and use tax rate of
20-16 the district at an election held on the same election date on which
20-17 a municipality or county having territory in the district adopts a
20-18 sales and use tax or an additional sales and use tax and as a
20-19 result the combined rate of all sales and use taxes imposed by the
20-20 district and other political subdivisions of this state having
20-21 territory in the district would exceed two percent at any location
20-22 in the district, the election to adopt a sales and use tax or to
20-23 increase the rate of the district's sales and use tax has no
20-24 effect.
20-25 (g) Taxes collected under this section may be used only for
21-1 mass transit purposes.
21-2 SECTION 10. (a) Territory may be added to a district only
21-3 according to the provisions of this section.
21-4 (b) The commissioners court of a county which is contiguous
21-5 to an existing district may hold an election on the question of
21-6 whether the county shall be annexed to the district. If a majority
21-7 of the qualified voters in the county voting at the election votes
21-8 for annexation, the commissioners court shall certify the results
21-9 of the election to the board of the district, and the county shall
21-10 become a part of the district.
21-11 (c) If a district in which a local sales and use tax has
21-12 been imposed changes or alters its boundaries, the presiding
21-13 officer of the board shall forward to the comptroller of public
21-14 accounts by United States registered mail or certified mail a
21-15 certified copy of the order adding territory to the district or of
21-16 the order canvassing the returns and declaring the result of the
21-17 election. The order shall reflect the effective date of the tax
21-18 and shall be accompanied by a map of the district clearly showing
21-19 the territory added or detached. Upon receipt of the order and
21-20 map, the tax imposed by Section 9 of this Act shall be effective in
21-21 the added territory on the first day of the next succeeding
21-22 quarter. However, if the comptroller notifies the presiding
21-23 officer of the board in writing within 10 days after receipt of the
21-24 order and map that he requires more time, the comptroller shall be
21-25 entitled to delay implementation one whole calendar quarter.
22-1 Thereafter, the tax shall be effective in the added territory on
22-2 the first day of the next calendar quarter following the elapsed
22-3 quarter.
22-4 (d) Territory in which an election is held as provided in
22-5 subsection (b) of this section becomes a part of the district on
22-6 the 31st day after the election, if the voters approve the addition
22-7 as provided in subsection (b) and unless the board of the district
22-8 notifies the appropriate governing body in writing before that date
22-9 that the addition would create a fiscal hardship on the district.
22-10 SECTION 11. (a) The commissioners court of a county that is
22-11 included within the territory of a district may hold an election on
22-12 the question of whether the county shall withdraw from the
22-13 district. If a majority of the qualified voters in the county
22-14 voting on the question votes to withdraw from the district, the
22-15 commissioners court shall certify the results of the election to
22-16 the board of the district, and the county shall withdraw from the
22-17 district.
22-18 (b) The board shall enter the results on its minutes and
22-19 adopt an order declaring the withdrawal of the county. A certified
22-20 copy of the order shall be filed with the Texas Department of
22-21 Transportation or its successor and the comptroller of public
22-22 accounts and in the deed records of each county in which the
22-23 district is located. The order shall reflect the date of the
22-24 election, the proposition voted on, the total number of votes cast
22-25 for and against the proposition in each election unit, the number
23-1 of votes by which the proposition was approved in each election
23-2 unit and shall be accompanied by a map of the district clearly
23-3 showing the boundaries of the district.
23-4 (c) Upon actual receipt by the comptroller of public
23-5 accounts of notification of the withdrawal of a county, there shall
23-6 elapse one whole calendar quarter prior to the withdrawal becoming
23-7 effective. Thereafter, the withdrawal shall be effective beginning
23-8 on the first day of the next calendar quarter following the elapsed
23-9 calendar quarter.
23-10 SECTION 12. (a) At least once each year, the board of a
23-11 district shall have prepared a financial audit of the affairs of
23-12 the district by an independent certified public accountant or a
23-13 firm of independent certified public accountants.
23-14 (b) The report of an audit conducted under subsection (a) of
23-15 this section is a public record. The board of the district shall
23-16 deliver a copy of the report of an audit performed under this
23-17 section to the presiding officer of the commissioners court of each
23-18 county having territory in the district and to the state auditor.
23-19 The state auditor may file comments relating to the audit with the
23-20 Legislative Audit Committee and the board of the district. The
23-21 state auditor may examine any workpapers from the audit or audit
23-22 the financial transactions of the district if the state auditor
23-23 determines that an audit is necessary.
23-24 SECTION 13. (a) The board of a district shall contract with
23-25 a firm that is not associated with the transit system to conduct a
24-1 performance audit of the district. A contracting firm under this
24-2 section must have experience in reviewing the performance of
24-3 transit agencies. A performance audit is required to be conducted
24-4 under this section every four years.
24-5 (b) The purposes of a performance audit under this section
24-6 are to provide evaluative information necessary for the performance
24-7 of oversight functions by state and local officers and to provide
24-8 information to the district to assist in the making of changes to
24-9 improve the efficiency and effectiveness of district operations.
24-10 The board shall determine one or more subjects for a particular
24-11 audit from among the subjects of administration and management of
24-12 the district, transit operations, and system maintenance. Each of
24-13 those subjects must be examined at least once in every third
24-14 performance audit.
24-15 (c) Each performance audit must include, in addition to an
24-16 examination of subjects determined under Subsection (b) of this
24-17 section, an examination of the district's compliance with this Act
24-18 and other applicable state law and an examination of the following
24-19 performance indicators:
24-20 (1) operating cost per passenger;
24-21 (2) sales and use tax receipts per passenger;
24-22 (3) operating cost per revenue hour;
24-23 (4) operating cost per revenue mile;
24-24 (5) fare recovery rate;
24-25 (6) average vehicle occupancy;
25-1 (7) on-time performance;
25-2 (8) the number of accidents per 100,000 miles; and
25-3 (9) the number of total miles between mechanical road
25-4 calls.
25-5 (d) In this section:
25-6 (1) "Accidents" includes:
25-7 (A) all collisions that involve a revenue
25-8 vehicle of the district and that result in property damage, injury,
25-9 or death, other than collisions in which the revenue vehicle is
25-10 lawfully parked; and
25-11 (B) all incidents that result in the injury or
25-12 death of a person aboard, boarding, or alighting from a revenue
25-13 vehicle of the district.
25-14 (2) "Mechanical road call" means any interruption in
25-15 revenue service caused by equipment failure of a revenue vehicle
25-16 that requires assistance from someone other than the vehicle
25-17 operator before the vehicle can be operated normally.
25-18 (3) "Operating cost" means the district's costs of
25-19 providing public transit service, including the cost of purchased
25-20 transit service not performed by the district, but excluding the
25-21 costs of depreciation, amortization, capitalized charges, charter
25-22 bus operations, and coordination of carpool and vanpool activities.
25-23 (4) "Passenger fare revenue" means revenues provided
25-24 by passengers of revenue vehicles of the district or the sponsors
25-25 of those passengers and includes cash fares, passes, tokens,
26-1 tickets, and route guarantees. The term excludes charter revenues,
26-2 advertising income, interest income, and other operating income.
26-3 (5) "Passenger trips" means a total of all passenger
26-4 boardings, including transfers but excluding charter passengers and
26-5 carpool and vanpool passengers whose trips are only coordinated by
26-6 a district.
26-7 (6) "Revenue service" means the time a revenue vehicle
26-8 of a district is in operation to carry passengers other than
26-9 charter passengers.
26-10 (7) "Revenue vehicle" means a vehicle that is used to
26-11 carry paying passengers and that is operated directly by a district
26-12 or as a purchased service.
26-13 (8) "Revenue vehicle hours" means a total of scheduled
26-14 hours that revenue vehicles of a district are in revenue service.
26-15 (9) "Revenue vehicle miles" means a total of miles
26-16 traveled by revenue vehicles of a district while in revenue
26-17 service.
26-18 (e)(1) The operating cost per passenger is derived by
26-19 dividing annual operating cost by passenger trips during the same
26-20 period.
26-21 (2) The amount of sales and use tax receipts per
26-22 passenger is derived by dividing an annual amount of receipts by
26-23 the district from a local sales and use tax by passenger trips for
26-24 the same period.
26-25 (3) The operating cost per revenue hour is derived by
27-1 dividing annual operating cost by revenue vehicle hours for the
27-2 same period.
27-3 (4) The operating cost per revenue mile is derived by
27-4 dividing annual operating cost by revenue vehicle miles for the
27-5 same period.
27-6 (5) The fare recovery rate is derived by dividing
27-7 annual passenger fare revenue by operating cost for the same
27-8 period.
27-9 (6) The average vehicle occupancy is derived by
27-10 dividing annual passenger miles by revenue vehicle miles for the
27-11 same period. The number of annual passenger miles is derived by
27-12 multiplying annual passenger trips by the average distance ridden
27-13 by passengers during the same period.
27-14 (7) On-time performance is derived by determining an
27-15 annual percentage of revenue vehicle trips performed by revenue
27-16 vehicles of a district that depart from selected locations at a
27-17 time not earlier than the published departure time and not later
27-18 than five minutes after the published departure time. For
27-19 demand-response services, the scheduled passenger pick-up times
27-20 would be used in lieu of departure times.
27-21 (8) The number of accidents per 100,000 total miles is
27-22 derived by multiplying an annual total of accidents of revenue
27-23 vehicles of a district by 100,000 and dividing the result by the
27-24 total number of miles for all service directly operated by the
27-25 district for the same period, including charter service and
28-1 nonrevenue service.
28-2 (9) The number of miles between mechanical road calls
28-3 is derived by dividing an annual total number of miles for all
28-4 service directly operated by a district, including charter service
28-5 and nonrevenue service, by the total number of mechanical road
28-6 calls for revenue vehicles of the district for the same period.
28-7 (f) A district for which a performance audit is conducted
28-8 under this section shall prepare a written response to the report
28-9 of the performance audit. The response must include any proposals
28-10 for action, whether pending, adopted, or rejected, relating to
28-11 recommendations contained in the performance audit report.
28-12 (g) The district shall conduct a public hearing on each
28-13 performance audit report conducted under this section and the
28-14 district's written response to that report. The district shall
28-15 cause notice of the hearing to be published in a newspaper of
28-16 general circulation in the area included within the district at
28-17 least 14 days before the date of the hearing. The district also
28-18 shall make copies of the report and response available for public
28-19 inspection at offices of the district during normal business hours.
28-20 (h) A copy of each report of a performance audit conducted
28-21 under this section and the response of the district shall be
28-22 delivered by the district to the state auditor, the Texas
28-23 Department of Transportation, the presiding officer of the
28-24 commissioners court of each county having territory included within
28-25 the district, and each member of the state legislature whose
29-1 district includes territory within the rural transit district.
29-2 The copies shall be delivered before February 1 of every second
29-3 odd-numbered year.
29-4 SECTION 14. Any district established hereunder shall be
29-5 within the definition of "unit of government" as defined by the
29-6 Texas Tort Claims Act, (Civil Practice and Remedies Code, Chapter
29-7 101), and all operations of a district are deemed to be essential
29-8 governmental functions and not proprietary functions for all
29-9 purposes, including the application of the Texas Tort Claims Act.
29-10 SECTION 15. (a) Contracts for more than $15,000 for the
29-11 construction of improvements or the purchase of material,
29-12 machinery, equipment, supplies and all other property except real
29-13 property, shall be let on competitive bids after notice published
29-14 once a week for two consecutive weeks, the first publication to be
29-15 at least 15 days before the date fixed for receiving bids, in a
29-16 newspaper of general circulation in the area in which the district
29-17 is located. The board may adopt rules governing the taking of bids
29-18 and the awarding of such contracts and providing for the waiver of
29-19 this requirement in the event of emergency, in the event the needed
29-20 materials are available from only one source, in the event that,
29-21 except for construction of improvements on real property, in a
29-22 procurement requiring design by the supplier, competitive bidding
29-23 would not be appropriate and competitive negotiation, with
29-24 proposals solicited from an adequate number of qualified sources,
29-25 would permit reasonable competition consistent with the nature and
30-1 requirements of the procurement, or in the event that, except for
30-2 construction of improvements on real property, after solicitation
30-3 it is ascertained that there will be only one bidder. This
30-4 subsection does not apply to personal and professional services or
30-5 to the acquisition of existing transit systems.
30-6 (b) The board of a district may not let a contract (1) that
30-7 is not subject to competitive bidding requirements, (2) that is
30-8 for more than $15,000 and (3) that is for the purchase of real
30-9 property or for consulting or professional services, unless an
30-10 announcement that a contract is being considered is posted in a
30-11 prominent place in the principal office of the district for at
30-12 least two weeks before the contract is awarded. This subsection
30-13 does not apply to the acquisition of existing transit systems.
30-14 SECTION 16. The property, revenues and income of the
30-15 district and the interest on bonds and notes issued by the district
30-16 shall be exempt from all taxes levied or to be levied by the State
30-17 of Texas, its political subdivisions, counties or municipal
30-18 corporations.
30-19 SECTION 17. The importance of this legislation and the
30-20 crowded condition of the calendars in both houses create an
30-21 emergency and an imperative public necessity that the
30-22 constitutional rule requiring bills to be read on three several
30-23 days in each house be suspended, and this rule is hereby suspended,
30-24 and that this Act take effect and be in force from and after its
30-25 passage, and it is so enacted.