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.