By Maxey H.B. No. 2388
75R163 DRH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of intermunicipal commuter rail districts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 13, Title 112, Revised Statutes, is
1-5 amended by adding Article 6550c-1 to read as follows:
1-6 Art. 6550c-1. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
1-7 Sec. 1. DEFINITIONS. In this article:
1-8 (1) "Commuter rail facility" means any property
1-9 necessary for the transportation of passengers and baggage between
1-10 points in a district. The term includes rolling stock,
1-11 locomotives, stations, parking areas, and rail lines.
1-12 (2) "Creating municipality" means a municipality
1-13 described by Section 2(a) of this article.
1-14 (3) "Department" means the Texas Department of
1-15 Transportation.
1-16 (4) "District" means an intermunicipal commuter rail
1-17 district created under this article.
1-18 (5) "System" means all of the commuter rail facilities
1-19 owned or operated on behalf of a district created under this
1-20 article.
1-21 Sec. 2. CREATION OF DISTRICT. (a) A district may be
1-22 created to provide commuter rail service between two
1-23 municipalities:
1-24 (1) each of which has a population of more than
2-1 450,000; and
2-2 (2) that are located not farther than 100 miles apart
2-3 as determined by the department.
2-4 (b) A district is created on passage of a resolution
2-5 favoring the creation of the district by the governing body of each
2-6 creating municipality and the governing body of each county in
2-7 which a creating municipality is located.
2-8 (c) The following political subdivisions may become a part
2-9 of a district created under Subsection (b) of this section with the
2-10 approval of the governing body of the political subdivision:
2-11 (1) a county located adjacent to a county in which a
2-12 creating municipality is located; and
2-13 (2) a municipality with a population of more than
2-14 18,000 located in a county described by Subdivision (1) of this
2-15 subsection.
2-16 (d) For purposes of this article, a municipality is located
2-17 in a county only if 90 percent or more of the population of the
2-18 municipality resides in that county according to the most recent
2-19 federal census.
2-20 Sec. 3. BOARD. (a) A district is governed by a board of
2-21 directors. The board is responsible for the management, operation,
2-22 and control of the district.
2-23 (b) The board is composed of the following members:
2-24 (1) two members appointed by the department;
2-25 (2) one member appointed by each political subdivision
2-26 that has become a part of the district under Section 2 of this
2-27 article;
3-1 (3) one member appointed by each creating municipality
3-2 to represent the regional planning organization of which the
3-3 municipality is a part;
3-4 (4) one member appointed by each creating municipality
3-5 to represent the business community of the municipality;
3-6 (5) one member appointed by each authority created
3-7 under Chapter 451, Transportation Code, that serves a creating
3-8 municipality;
3-9 (6) one member appointed by each county in which a
3-10 creating municipality is located to represent transportation
3-11 providers that provide service to rural areas in the county; and
3-12 (7) one member appointed by all other board members to
3-13 represent all municipalities in the district that do not otherwise
3-14 have representation on the board.
3-15 (c) A vacancy on the board is filled in the same manner as
3-16 the original appointment. Each member serves a term of two years.
3-17 (d) The members of the board shall elect one member as
3-18 presiding officer. The presiding officer may select another member
3-19 to preside in the absence of the presiding officer.
3-20 (e) The presiding officer shall call at least one meeting of
3-21 the board a year and may hold other meetings as the presiding
3-22 officer determines are appropriate.
3-23 (f) A member of the board is not entitled to compensation
3-24 for serving as a member but is entitled to reimbursement for
3-25 reasonable expenses incurred while serving as a member.
3-26 (g) The board shall adopt rules for its proceedings and may
3-27 employ and compensate persons to carry out the powers and duties of
4-1 the district.
4-2 (h) Chapter 171, Local Government Code, applies to a board
4-3 member of a district.
4-4 Sec. 4. POWERS AND DUTIES OF DISTRICT. (a) A district
4-5 created under this article is a public body and a political
4-6 subdivision of the state exercising public and essential
4-7 governmental functions and has all the powers necessary or
4-8 convenient to carry out the purposes of this article. A district,
4-9 in the exercise of powers under this article, is performing only
4-10 governmental functions and is a governmental unit within the
4-11 meaning of Chapter 101, Civil Practice and Remedies Code.
4-12 (b) A district has perpetual succession. A district is
4-13 subject every 12th year to review under Chapter 325, Government
4-14 Code (Texas Sunset Act), but is not abolished under that chapter.
4-15 (c) A district may sue and be sued in all courts of
4-16 competent jurisdiction, may institute and prosecute suits without
4-17 giving security for costs, and may appeal from a judgment without
4-18 giving supersedeas or cost bond. An action at law or in equity
4-19 against the district must be brought in the county in which the
4-20 principal office of the district is located, except that in eminent
4-21 domain proceedings, suit must be brought in the county in which the
4-22 land is located.
4-23 (d) A district may acquire by grant, purchase, gift, devise,
4-24 lease, or otherwise and may hold, use, sell, lease, or dispose of
4-25 real and personal property, licenses, patents, rights, and
4-26 interests necessary, convenient, or useful for the full exercise of
4-27 any of its powers under this article.
5-1 (e) A district may acquire, construct, develop, own,
5-2 operate, and maintain commuter rail facilities inside, or connect
5-3 political subdivisions in, the district. For these purposes and
5-4 with the consent of any municipality, county, or other political
5-5 subdivision, the district may use streets, alleys, roads, highways,
5-6 and other public ways of any municipality, county, or other
5-7 political subdivision and may relocate, raise, reroute, change the
5-8 grade of, or alter, at the expense of the district, the
5-9 construction of any street, alley, highway, road, railroad,
5-10 electric lines and facilities, telegraph and telephone properties
5-11 and facilities, pipelines and facilities, conduits and facilities,
5-12 and other properties, whether publicly or privately owned, as
5-13 necessary or useful in the construction, reconstruction, repair,
5-14 maintenance, and operation of commuter rail facilities. A district
5-15 may at its discretion acquire by purchase any interest in real
5-16 property for the acquisition, construction, or operation of any
5-17 commuter rail facility on terms and at a price as agreed to between
5-18 the district and the owner. The governing body of any
5-19 municipality, county, other political subdivision, or public agency
5-20 may make conveyance of title or rights and easements to any
5-21 property needed by the district to effect its purposes in
5-22 connection with the acquisition, construction, or operation of
5-23 commuter rail facilities.
5-24 (f) A district has the right of eminent domain to acquire
5-25 lands in fee simple and any interest less than fee simple in, on,
5-26 under, or above lands, including easements, rights-of-way, and
5-27 rights of use of airspace or subsurface space. The district shall,
6-1 to the extent possible, use existing rail or intermodal
6-2 transportation corridors for the alignment of its railroad.
6-3 Proceedings for the exercise of the power of eminent domain are
6-4 begun by the adoption by the board of a resolution declaring the
6-5 public necessity for the acquisition by the district of the
6-6 property or interest described in the resolution and that the
6-7 acquisition is necessary and proper for the construction,
6-8 extension, improvement, or development of commuter rail facilities
6-9 and is in the public interest. The resolution of the district is
6-10 conclusive evidence of the public necessity of the proposed
6-11 acquisition and that the real or personal property or interest in
6-12 property is necessary for public use.
6-13 (g) A district may make agreements with any other public
6-14 utility, private utility, communication system, common carrier, or
6-15 transportation system for the joint use of its facilities,
6-16 installations, or properties within or outside the district and
6-17 establish through routes, joint fares, and, subject to approval of
6-18 any tariff-regulating body having jurisdiction, divisions of
6-19 tariffs.
6-20 (h) A district may adopt rules to govern the operation of
6-21 the district, its employees, the commuter rail facilities, service
6-22 provided by the district, and any other necessary matter concerning
6-23 its purposes, including rules regarding health, safety, alcohol or
6-24 beverage service, food service, and telephone and utility services,
6-25 to protect the health, safety, and general welfare of residents of
6-26 the district.
6-27 (i) A district may make joint ownership agreements with any
7-1 person.
7-2 (j) A district shall establish and maintain rates or other
7-3 compensation for the use of the facilities of the system acquired,
7-4 constructed, operated, regulated, or maintained by the district
7-5 that is reasonable and nondiscriminatory and, together with grants
7-6 received by the district, is sufficient to produce revenues
7-7 adequate:
7-8 (1) to pay all expenses necessary to the operation and
7-9 maintenance of the properties and facilities of the district;
7-10 (2) to pay the interest on and principal of all bonds
7-11 issued by the district under this article and payable in whole or
7-12 in part from the revenues, as they become due and payable; and
7-13 (3) to fulfill the terms of any agreements made with
7-14 the holders of bonds or with any person in their behalf.
7-15 (k) A district may make contracts, leases, and agreements
7-16 with, and accept grants and loans from, the United States of
7-17 America, its departments and agencies, the state, its agencies and
7-18 political subdivisions, and public or private corporations and
7-19 persons, and may generally perform all acts necessary for the full
7-20 exercise of the powers vested in it. A district may acquire
7-21 rolling stock or other property under conditional sales contracts,
7-22 leases, equipment trust certificates, or any other form of contract
7-23 or trust agreement. Any revenue bond indenture may provide
7-24 limitations on the exercise of the powers granted by this section,
7-25 and the limitations apply so long as any of the revenue bonds
7-26 issued pursuant to the indenture are outstanding and unpaid.
7-27 (l) A district by resolution may adopt rules governing the
8-1 use, operation, and maintenance of the system and shall determine
8-2 all routings and change them when the board considers it advisable.
8-3 (m) A district may lease the commuter rail facilities or any
8-4 part to, or contract for the use or operation of the commuter rail
8-5 facilities or any part by, any operator. A district shall
8-6 encourage to the maximum extent practicable the participation of
8-7 private enterprise in the operation of commuter rail facilities.
8-8 The term of an operating contract under this subsection may not
8-9 exceed 20 years.
8-10 (n) A district may contract with any county or other
8-11 political subdivision of the state for the district to provide
8-12 commuter rail transportation services to any area outside the
8-13 boundaries of the district on such terms and conditions as the
8-14 parties agree to.
8-15 (o) Before beginning the operation of commuter rail
8-16 facilities, the board of a district shall adopt an annual operating
8-17 budget specifying the anticipated revenues and expenses of the
8-18 district for the remainder of the fiscal year, and the district
8-19 shall adopt an operating budget for each succeeding fiscal year.
8-20 The fiscal year of the district ends September 30 unless changed by
8-21 the board. The board shall hold a public hearing before adopting
8-22 each budget except the initial budget. Notice of each hearing must
8-23 be published at least seven days before the date of the hearing in
8-24 a newspaper of general circulation in the district. A budget may
8-25 be amended at any time if notice of the proposed amendment is given
8-26 in the notice of meeting. An expenditure that is not budgeted may
8-27 not be made.
9-1 (p) The board of a district shall by resolution name one or
9-2 more banks for the deposit of district funds. District funds are
9-3 public funds and may be invested in securities permitted by Chapter
9-4 2256, Government Code. To the extent funds of the district are not
9-5 insured by the Federal Deposit Insurance Corporation or its
9-6 successor, they shall be collateralized in the manner provided for
9-7 county funds.
9-8 Sec. 5. BONDS AND NOTES. (a) A district may issue revenue
9-9 bonds and notes from time to time and in such amounts as its board
9-10 considers necessary or appropriate for the acquisition, purchase,
9-11 construction, reconstruction, repair, equipping, improvement, or
9-12 extension of its commuter rail facilities. All bonds and notes are
9-13 fully negotiable and may be made redeemable before maturity, at the
9-14 option of the issuing district and at prices and under terms and
9-15 conditions the issuing district determines in the resolution
9-16 authorizing the bonds or notes, and may be sold at public or
9-17 private sale, as the board determines.
9-18 (b) A district shall submit all bonds and notes authorized
9-19 to be issued, except notes issued to an agency of the federal or
9-20 state government, and the records relating to their issuance to the
9-21 attorney general for examination before delivery. If the attorney
9-22 general determines that they have been issued in accordance with
9-23 the constitution and this article and that they will be binding
9-24 obligations of the district issuing them, the attorney general
9-25 shall approve them, and the comptroller shall register them. Bonds
9-26 and notes issued under this article are incontestable after
9-27 approval, registration, and sale and delivery of the bonds to the
10-1 purchaser.
10-2 (c) To secure the payment of the bonds or notes, the
10-3 district may encumber and pledge all or any part of the revenues of
10-4 its commuter rail facilities, may mortgage and encumber all or any
10-5 part of the properties of the commuter rail facilities and
10-6 everything pertaining to them acquired or to be acquired, and may
10-7 prescribe the terms and provisions of the bonds and notes in any
10-8 manner not inconsistent with this article. If not prohibited by
10-9 the resolution or indenture relating to outstanding bonds or notes,
10-10 a district may encumber separately any item of real estate or
10-11 personalty.
10-12 (d) All bonds and notes are legal and authorized investments
10-13 for banks, trust companies, savings and loan associations, and
10-14 insurance companies. The bonds and notes are eligible to secure
10-15 the deposit of public funds of the state, cities, towns, villages,
10-16 counties, school districts, or other political corporations or
10-17 subdivisions of the state. The bonds and notes are lawful and
10-18 sufficient security for the deposits to the extent of the principal
10-19 amount or market value of the bonds or notes, whichever is less.
10-20 Sec. 6. COMPETITIVE BIDS. A contract in the amount of more
10-21 than $15,000 for the construction of improvements or the purchase
10-22 of material, machinery, equipment, supplies, or any other property
10-23 except real property may be let only on competitive bids after
10-24 notice published, at least 15 days before the date set for
10-25 receiving bids, in a newspaper of general circulation in the
10-26 district. A board may adopt rules governing the taking of bids and
10-27 the awarding of contracts. This section does not apply to personal
11-1 or professional services or the acquisition of existing rail
11-2 transportation systems.
11-3 Sec. 7. EXEMPTION FROM TAXES. The property, revenues, and
11-4 income of a district and the interest on bonds and notes issued by
11-5 a district are exempt from all taxes levied by the state or a
11-6 political subdivision of the state.
11-7 SECTION 2. The importance of this legislation and the
11-8 crowded condition of the calendars in both houses create an
11-9 emergency and an imperative public necessity that the
11-10 constitutional rule requiring bills to be read on three several
11-11 days in each house be suspended, and this rule is hereby suspended,
11-12 and that this Act take effect and be in force from and after its
11-13 passage, and it is so enacted.