By: Barrientos, et al. S.B. No. 657
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of intermunicipal commuter rail districts;
1-2 authorizing a tax; granting authority to issue bonds and power of
1-3 eminent domain.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 13, Title 112, Revised Statutes, is
1-6 amended by adding Article 6550c-1 to read as follows:
1-7 Art. 6550c-1. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Commission" means the Texas Transportation
1-10 Commission.
1-11 (2) "Commuter rail facility" means any property
1-12 necessary for the transportation of passengers and baggage between
1-13 points in a district. The term includes rolling stock,
1-14 locomotives, stations, parking areas, and rail lines.
1-15 (3) "Creating municipality" means a municipality
1-16 described by Section 2(a) of this article.
1-17 (4) "Department" means the Texas Department of
1-18 Transportation.
1-19 (5) "District" means an intermunicipal commuter rail
1-20 district created under this article.
1-21 (6) "System" means all of the commuter rail and
1-22 intermodal facilities leased or owned by or operated on behalf of a
1-23 district created under this article.
2-1 Sec. 2. CREATION OF DISTRICT. (a) A district may be
2-2 created to provide commuter rail service between two
2-3 municipalities:
2-4 (1) each of which has a population of more than
2-5 450,000; and
2-6 (2) that are located not farther than 100 miles apart
2-7 as determined by the department.
2-8 (b) A district is created on passage of a resolution
2-9 favoring the creation of the district by the governing body of each
2-10 creating municipality and the governing body of each county in
2-11 which a creating municipality is located.
2-12 (c) The following political subdivisions may become a part
2-13 of a district created under Subsection (b) of this section with the
2-14 approval of the governing body of the political subdivision:
2-15 (1) a county located adjacent to a county in which a
2-16 creating municipality is located; and
2-17 (2) a municipality with a population of more than
2-18 18,000 located in a county described by Subdivision (1) of this
2-19 subsection.
2-20 (d) For purposes of this article, a municipality is located
2-21 in a county only if 90 percent or more of the population of the
2-22 municipality resides in that county according to the most recent
2-23 federal census.
2-24 Sec. 3. BOARD. (a) A district is governed by a board of
2-25 directors. The board is responsible for the management, operation,
3-1 and control of the district.
3-2 (b) The board is composed of the following members:
3-3 (1) two public members appointed by the commission;
3-4 (2) one elected member of the governing body of each
3-5 political subdivision that has become a part of the district under
3-6 Section 2 of this article;
3-7 (3) one elected member appointed by the regional
3-8 planning organization of which a creating municipality is a part;
3-9 (4) one member appointed by each creating municipality
3-10 to represent the business community of the municipality;
3-11 (5) one member appointed by each authority created
3-12 under Chapter 451, Transportation Code, that serves a creating
3-13 municipality;
3-14 (6) one member appointed by each county in which a
3-15 creating municipality is located to represent transportation
3-16 providers that provide service to rural areas in the county; and
3-17 (7) one member appointed by all other board members to
3-18 represent all municipalities in the district that do not otherwise
3-19 have representation on the board and who shall be an elected
3-20 official of one of those municipalities.
3-21 (c) A vacancy on the board is filled in the same manner as
3-22 the original appointment. Each member serves a term of two years.
3-23 (d) The members of the board shall elect one member as
3-24 presiding officer. The presiding officer may select another member
3-25 to preside in the absence of the presiding officer.
4-1 (e) The presiding officer shall call at least one meeting of
4-2 the board a year and may hold other meetings as the presiding
4-3 officer determines are appropriate.
4-4 (f) A member of the board is not entitled to compensation
4-5 for serving as a member but is entitled to reimbursement for
4-6 reasonable expenses incurred while serving as a member.
4-7 (g) The board shall adopt rules for its proceedings and
4-8 appoint an executive committee and may employ and compensate
4-9 persons to carry out the powers and duties of the district.
4-10 (h) Chapter 171, Local Government Code, applies to a board
4-11 member of a district.
4-12 Sec. 4. POWERS AND DUTIES OF DISTRICT. (a) A district
4-13 created under this article is a public body and a political
4-14 subdivision of the state exercising public and essential
4-15 governmental functions and has all the powers necessary or
4-16 convenient to carry out the purposes of this article. A district,
4-17 in the exercise of powers under this article, is performing only
4-18 governmental functions and is a governmental unit within the
4-19 meaning of Chapter 101, Civil Practice and Remedies Code.
4-20 (b) A district is subject every 12th year to review under
4-21 Chapter 325, Government Code (Texas Sunset Act).
4-22 (c) A district may sue and be sued in all courts of
4-23 competent jurisdiction, may institute and prosecute suits without
4-24 giving security for costs, and may appeal from a judgment without
4-25 giving supersedeas or cost bond. An action at law or in equity
5-1 against the district must be brought in the county in which the
5-2 principal office of the district is located, except that in eminent
5-3 domain proceedings, suit must be brought in the county in which the
5-4 land is located.
5-5 (d) A district may acquire by grant, purchase, gift, devise,
5-6 lease, or otherwise and may hold, use, sell, lease, or dispose of
5-7 real and personal property, licenses, patents, rights, and
5-8 interests necessary, convenient, or useful for the full exercise of
5-9 any of its powers under this article.
5-10 (e) A district may acquire, construct, develop, own,
5-11 operate, and maintain intermodal and commuter rail facilities
5-12 inside, or connect political subdivisions in, the district. For
5-13 these purposes and with the consent of any municipality, county, or
5-14 other political subdivision, the district may use streets, alleys,
5-15 roads, highways, and other public ways of any municipality, county,
5-16 or other political subdivision and may relocate, raise, reroute,
5-17 change the grade of, or alter, at the expense of the district, the
5-18 construction of any street, alley, highway, road, railroad,
5-19 electric lines and facilities, telegraph and telephone properties
5-20 and facilities, pipelines and facilities, conduits and facilities,
5-21 and other properties, whether publicly or privately owned, as
5-22 necessary or useful in the construction, reconstruction, repair,
5-23 maintenance, and operation of the system. A district may not use
5-24 or alter a road or highway in the state highway system without the
5-25 permission of the commission. A district may at its discretion
6-1 acquire by purchase any interest in real property for the
6-2 acquisition, construction, or operation of any commuter rail
6-3 facility on terms and at a price as agreed to between the district
6-4 and the owner. The governing body of any municipality, county,
6-5 other political subdivision, or public agency may make conveyance
6-6 of title or rights and easements to any property needed by the
6-7 district to effect its purposes in connection with the acquisition,
6-8 construction, or operation of the system.
6-9 (f) A district has the right of eminent domain to acquire
6-10 lands in fee simple and any interest less than fee simple in, on,
6-11 under, or above lands, including easements, rights-of-way, and
6-12 rights of use of airspace or subsurface space. The power of
6-13 eminent domain under this section does not apply, however, to land
6-14 under the jurisdiction of the department or a metropolitan transit
6-15 authority or a rail line owned by a common carrier or municipality.
6-16 The district shall, to the extent possible, use existing rail or
6-17 intermodal transportation corridors for the alignment of its
6-18 system. Proceedings for the exercise of the power of eminent
6-19 domain are begun by the adoption by the board of a resolution
6-20 declaring the public necessity for the acquisition by the district
6-21 of the property or interest described in the resolution and that
6-22 the acquisition is necessary and proper for the construction,
6-23 extension, improvement, or development of commuter rail facilities
6-24 and is in the public interest. The resolution of the district is
6-25 conclusive evidence of the public necessity of the proposed
7-1 acquisition and that the real or personal property or interest in
7-2 property is necessary for public use.
7-3 (g) A district may make agreements with any other public
7-4 utility, private utility, communication system, common carrier,
7-5 state agency, or transportation system for the joint use of
7-6 facilities, installations, or properties within or outside the
7-7 district and establish through routes, joint fares, and, subject to
7-8 approval of any tariff-regulating body having jurisdiction,
7-9 divisions of tariffs.
7-10 (h) A district may adopt rules to govern the operation of
7-11 the district, its employees, the system, service provided by the
7-12 district, and any other necessary matter concerning its purposes,
7-13 including rules regarding health, safety, alcohol or beverage
7-14 service, food service, and telephone and utility services, to
7-15 protect the health, safety, and general welfare of residents of the
7-16 district.
7-17 (i) A district may make joint ownership agreements with any
7-18 person.
7-19 (j) A district shall establish and maintain rates or other
7-20 compensation for the use of the facilities of the system acquired,
7-21 constructed, operated, regulated, or maintained by the district
7-22 that is reasonable and nondiscriminatory and, together with grants
7-23 received by the district, is sufficient to produce revenues
7-24 adequate:
7-25 (1) to pay all expenses necessary to the operation and
8-1 maintenance of the properties and facilities of the district;
8-2 (2) to pay the interest on and principal of all bonds
8-3 issued by the district under this article and payable in whole or
8-4 in part from the revenues, as they become due and payable; and
8-5 (3) to fulfill the terms of any agreements made with
8-6 the holders of bonds or with any person in their behalf.
8-7 (k) A district may make contracts, leases, and agreements
8-8 with, and accept grants and loans from, the United States of
8-9 America, its departments and agencies, the state, its agencies and
8-10 political subdivisions, and public or private corporations and
8-11 persons and may generally perform all acts necessary for the full
8-12 exercise of the powers vested in it. The commission may enter an
8-13 interlocal agreement with a district under which a district may
8-14 exercise a power or duty of the commission for the development and
8-15 efficient operation of intermodal corridors in the district. A
8-16 district may acquire rolling stock or other property under
8-17 conditional sales contracts, leases, equipment trust certificates,
8-18 or any other form of contract or trust agreement. Any revenue bond
8-19 indenture may provide limitations on the exercise of the powers
8-20 granted by this section, and the limitations apply so long as any
8-21 of the revenue bonds issued pursuant to the indenture are
8-22 outstanding and unpaid.
8-23 (l) A district by resolution may adopt rules governing the
8-24 use, operation, and maintenance of the system and shall determine
8-25 all routings and change them when the board considers it advisable.
9-1 (m) A district may lease the commuter rail facilities or any
9-2 part to, or contract for the use or operation of the commuter rail
9-3 facilities or any part by, any operator. A district shall
9-4 encourage to the maximum extent practicable the participation of
9-5 private enterprise in the operation of commuter rail facilities.
9-6 The term of an operating contract under this subsection may not
9-7 exceed 20 years.
9-8 (n) A district may contract with any county or other
9-9 political subdivision of the state for the district to provide
9-10 commuter rail transportation services to any area outside the
9-11 boundaries of the district on such terms and conditions as the
9-12 parties agree to.
9-13 (o) A district may purchase an additional insured provision
9-14 to any liability insurance contract.
9-15 (p) Before beginning the operation of commuter rail
9-16 facilities, the board of a district shall adopt an annual operating
9-17 budget specifying the anticipated revenues and expenses of the
9-18 district for the remainder of the fiscal year, and the district
9-19 shall adopt an operating budget for each succeeding fiscal year.
9-20 The fiscal year of the district ends September 30 unless changed by
9-21 the board. The board shall hold a public hearing before adopting
9-22 each budget except the initial budget. Notice of each hearing must
9-23 be published at least seven days before the date of the hearing in
9-24 a newspaper of general circulation in the district. A budget may
9-25 be amended at any time if notice of the proposed amendment is given
10-1 in the notice of meeting. An expenditure that is not budgeted may
10-2 not be made.
10-3 (q) A district is eligible to participate in the Texas
10-4 County and District Retirement System.
10-5 (r) The board of a district shall by resolution name one or
10-6 more banks for the deposit of district funds. District funds are
10-7 public funds and may be invested in securities permitted by Chapter
10-8 2256, Government Code. To the extent funds of the district are not
10-9 insured by the Federal Deposit Insurance Corporation or its
10-10 successor, they shall be collateralized in the manner provided for
10-11 county funds.
10-12 Sec. 5. BONDS AND NOTES. (a) A district may issue revenue
10-13 bonds and notes from time to time and in such amounts as its board
10-14 considers necessary or appropriate for the acquisition, purchase,
10-15 construction, reconstruction, repair, equipping, improvement, or
10-16 extension of its commuter rail facilities. All bonds and notes are
10-17 fully negotiable and may be made redeemable before maturity, at the
10-18 option of the issuing district and at prices and under terms and
10-19 conditions the issuing district determines in the resolution
10-20 authorizing the bonds or notes, and may be sold at public or
10-21 private sale, as the board determines.
10-22 (b) A district shall submit all bonds and notes authorized
10-23 to be issued, except notes issued to an agency of the federal or
10-24 state government, and the records relating to their issuance to the
10-25 attorney general for examination before delivery. If the attorney
11-1 general determines that they have been issued in accordance with
11-2 the constitution and this article and that they will be binding
11-3 obligations of the district issuing them, the attorney general
11-4 shall approve them, and the comptroller shall register them. Bonds
11-5 and notes issued under this article are incontestable after
11-6 approval, registration, and sale and delivery of the bonds to the
11-7 purchaser.
11-8 (c) To secure the payment of the bonds or notes, the
11-9 district may encumber and pledge all or any part of the revenues of
11-10 its commuter rail facilities, may mortgage and encumber all or any
11-11 part of the properties of the commuter rail facilities and
11-12 everything pertaining to them acquired or to be acquired, and may
11-13 prescribe the terms and provisions of the bonds and notes in any
11-14 manner not inconsistent with this article. If not prohibited by
11-15 the resolution or indenture relating to outstanding bonds or notes,
11-16 a district may encumber separately any item of real estate or
11-17 personalty.
11-18 (d) All bonds and notes are legal and authorized investments
11-19 for banks, trust companies, savings and loan associations, and
11-20 insurance companies. The bonds and notes are eligible to secure
11-21 the deposit of public funds of the state, cities, towns, villages,
11-22 counties, school districts, or other political corporations or
11-23 subdivisions of the state. The bonds and notes are lawful and
11-24 sufficient security for the deposits to the extent of the principal
11-25 amount or market value of the bonds or notes, whichever is less.
12-1 Sec. 6. COMPETITIVE BIDS. A contract in the amount of more
12-2 than $15,000 for the construction of improvements or the purchase
12-3 of material, machinery, equipment, supplies, or any other property
12-4 except real property may be let only on competitive bids after
12-5 notice published, at least 15 days before the date set for
12-6 receiving bids, in a newspaper of general circulation in the
12-7 district. A board may adopt rules governing the taking of bids and
12-8 the awarding of contracts. This section does not apply to:
12-9 (1) personal or professional services;
12-10 (2) the acquisition of existing rail transportation
12-11 systems; or
12-12 (3) a contract with a common carrier to construct
12-13 lines and to operate commuter rail service on lines owned in whole
12-14 or in part by the carrier.
12-15 Sec. 7. EXEMPTION FROM TAXES. The property, material
12-16 purchases, revenues, and income of a district and the interest on
12-17 bonds and notes issued by a district are exempt from all taxes
12-18 levied by the state or a political subdivision of the state.
12-19 Sec. 8. TRANSPORTATION INFRASTRUCTURE. (a) This section
12-20 applies only to a local government which is a member of a district,
12-21 other than a school district, that is authorized to impose ad
12-22 valorem taxes on real property.
12-23 (b) A district may enter into an interlocal contract with a
12-24 local government member for the financing of transportation
12-25 infrastructure that is constructed or that is to be constructed in
13-1 the territory of the local government by the district.
13-2 (c) The agreement must include:
13-3 (1) the duration of the agreement;
13-4 (2) a description of each transportation
13-5 infrastructure project or proposed project;
13-6 (3) a map showing the location of each project; and
13-7 (4) an estimate of the cost of each project.
13-8 (d) The agreement may establish one or more transportation
13-9 infrastructure zones. The district and the local government may
13-10 agree that, at one or more specified times, the local government
13-11 will pay to the district an amount that is calculated on the basis
13-12 of increased ad valorem tax collections in a zone that are
13-13 attributable to increased values of property located in the zone
13-14 resulting from an infrastructure project. The amount may not
13-15 exceed an amount that is equal to 30 percent of the increase in ad
13-16 valorem tax collections for the specified period.
13-17 (e) Money received by the district under this section may be
13-18 used:
13-19 (1) to provide a local match for the acquisition of
13-20 right-of-way in the territory of the local government; or
13-21 (2) for design, construction, operation, or
13-22 maintenance of transportation facilities in the territory of the
13-23 local government.
13-24 Sec. 9. SALES AND USE TAXES. A district shall collect or
13-25 cause to be collected sales and use taxes on items sold on district
14-1 property. The sales and use tax shall be collected at the rate of
14-2 the highest combination of state and local sales and use taxes
14-3 imposed in any local governmental jurisdiction which is a member of
14-4 a district. After deducting the state share of sales and use
14-5 taxes, the comptroller shall remit to a district the local sales
14-6 and use tax collected on the district's property.
14-7 SECTION 2. The importance of this legislation and the
14-8 crowded condition of the calendars in both houses create an
14-9 emergency and an imperative public necessity that the
14-10 constitutional rule requiring bills to be read on three several
14-11 days in each house be suspended, and this rule is hereby suspended,
14-12 and that this Act take effect and be in force from and after its
14-13 passage, and it is so enacted.