1-1 AN ACT
1-2 relating to the creation, organization, and powers of a coordinated
1-3 county transportation authority; authorizing the imposition of a
1-4 tax, the issuance of bonds and notes, and the exercise of the power
1-5 of eminent domain.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Subtitle K, Title 6, Transportation Code, is
1-8 amended by adding Chapter 460 to read as follows:
1-9 CHAPTER 460. COORDINATED COUNTY TRANSPORTATION AUTHORITIES
1-10 SUBCHAPTER A. GENERAL PROVISIONS
1-11 Sec. 460.001. DEFINITIONS. In this chapter:
1-12 (1) "Authority" means a coordinated county
1-13 transportation authority created under this chapter.
1-14 (2) "Balance of the county" means that part of the
1-15 county that is outside the boundaries of a municipality with a
1-16 population of 12,000 or more.
1-17 (3) "Executive committee" means the governing body of
1-18 the authority.
1-19 (4) "Service plan" means an outline of the service
1-20 that would be provided by an authority.
1-21 Sec. 460.002. APPLICABILITY. This chapter applies only to a
1-22 county that is adjacent to a county with a population of more than
1-23 one million.
1-24 Sec. 460.003. INELIGIBILITY OF CERTAIN MUNICIPALITIES.
2-1 (a) A municipality that is a member of a subregion of a
2-2 transportation authority governed by a board described in
2-3 Subchapter O, Chapter 452, is not eligible to join or become a
2-4 member of an authority created under this chapter unless:
2-5 (1) the municipality holds a withdrawal election in
2-6 accordance with the requirements of Section 452.655 and a majority
2-7 of the voters at the election approve the withdrawal;
2-8 (2) the municipality has paid in full all amounts that
2-9 it is required to pay under Sections 452.659 and 452.660; and
2-10 (3) the comptroller has ceased under Section 452.658
2-11 to collect sales and use taxes within the municipality that were
2-12 levied and collected in the municipality for purposes of the
2-13 authority from which the municipality has withdrawn.
2-14 (b) A municipality that is not eligible under this section
2-15 for membership in an authority created under this chapter may not
2-16 be added to or join an authority under Section 460.302 or 460.303
2-17 until the municipality meets the requirements of this section.
2-18 (Sections 460.004-460.050 reserved for expansion
2-19 SUBCHAPTER B. CREATION OF AUTHORITY
2-20 Sec. 460.051. CREATION OF AUTHORITY. (a) The commissioners
2-21 court of a county may initiate the process to create an authority
2-22 to provide public transportation and transportation-related
2-23 services:
2-24 (1) on adoption of a resolution or order initiating
2-25 the process to create an authority; or
2-26 (2) on receipt of a petition requesting creation of an
2-27 authority signed by a number of registered voters of the county
3-1 equal to or greater than five percent of the votes cast in the
3-2 county in the most recent gubernatorial election.
3-3 (b) If a petition described by Subsection (a)(2) is received
3-4 by the commissioners court, the petition shall be verified by the
3-5 county clerk, consistent with Chapter 277, Election Code, and
3-6 returned to the commissioners court with a finding of verification.
3-7 Sec. 460.052. HEARING. (a) The commissioners court shall
3-8 hold a public hearing on creation of an authority not later than
3-9 the 60th day after the date the commissioners court:
3-10 (1) receives a petition described by Section
3-11 460.051(a)(2); or
3-12 (2) adopts a resolution or order to initiate the
3-13 process to create an authority.
3-14 (b) Notice of the time and place of the public hearing on
3-15 the creation of the authority shall be published, beginning at
3-16 least 30 days before the date of the hearing, once a week for two
3-17 consecutive weeks in a newspaper of general circulation in the
3-18 county.
3-19 (c) Each municipality in the county with a population of
3-20 12,000 or more shall be notified of the public hearing by notice
3-21 mailed to the governing body of the municipality.
3-22 (d) Any person may appear at a hearing and offer evidence
3-23 on:
3-24 (1) the creation of the authority;
3-25 (2) operation of the county transportation system;
3-26 (3) public interest served in the creation of the
3-27 authority; or
4-1 (4) other facts relating to the creation of the
4-2 authority.
4-3 (e) A hearing may be continued until completed.
4-4 Sec. 460.053. RESOLUTION OR ORDER. After the hearing, the
4-5 commissioners court may adopt a resolution or order:
4-6 (1) designating the name of the authority;
4-7 (2) stating that all land within the county shall be
4-8 part of the authority; and
4-9 (3) stating that the territory described in
4-10 Subdivision (2) is subject to the authority based on the results of
4-11 the confirmation election.
4-12 Sec. 460.054. MEMBERSHIP OF INTERIM EXECUTIVE COMMITTEE.
4-13 (a) After adopting a resolution or order under Section 460.053,
4-14 the commissioners court and certain municipalities, as provided by
4-15 this section, shall appoint an interim executive committee for the
4-16 authority.
4-17 (b) The interim executive committee is composed of:
4-18 (1) one member appointed by the governing body of each
4-19 municipality with a population of 12,000 or more that is located in
4-20 the county;
4-21 (2) three members appointed by the commissioners
4-22 court, two of whom must reside in the unincorporated area of the
4-23 county; and
4-24 (3) three members to be designated by the remaining
4-25 municipalities with a population of more than 500 but less than
4-26 12,000 located in the county.
4-27 (c) The members described by Subsection (b)(3) shall be
5-1 designated as follows:
5-2 (1) each municipality with a population of more than
5-3 500 but less than 12,000 located in the county shall nominate one
5-4 person using a nomination form sent to the governing body of the
5-5 municipality by mail;
5-6 (2) the county judge shall add the names on the
5-7 nomination forms that are received before the 31st day after the
5-8 date of the mailing of the nomination forms;
5-9 (3) each municipality with a population of more than
5-10 500 but less than 12,000 located in the county is entitled to cast
5-11 one vote;
5-12 (4) only ballots returned to the county judge on or
5-13 before a predetermined date shall be counted;
5-14 (5) the county judge shall designate the three persons
5-15 with the highest plurality vote as members of the executive
5-16 committee; and
5-17 (6) if three members are not designated by this
5-18 process, the county judge shall name the balance of the members of
5-19 the interim executive committee described by Subsection (b)(3).
5-20 Sec. 460.055. DUTIES OF INTERIM EXECUTIVE COMMITTEE.
5-21 (a) The interim executive committee shall elect three of its
5-22 members to serve as the chair, vice chair, and secretary.
5-23 (b) The interim executive committee shall develop a service
5-24 plan and determine a proposed tax not later than the 180th day
5-25 after the date of the interim executive committee's first meeting.
5-26 (c) The interim executive committee shall hold at least one
5-27 regular meeting a month for the purpose of developing a service
6-1 plan and determining a proposed tax rate.
6-2 (d) The interim executive committee shall consider the
6-3 following in developing the service plan:
6-4 (1) the regional transportation plan for the county
6-5 and major thoroughfare plan;
6-6 (2) actual and projected traffic counts of private
6-7 passenger vehicles and projected destinations of the vehicles;
6-8 (3) feasible alternative modes of public
6-9 transportation, including:
6-10 (A) a fixed guideway system;
6-11 (B) passenger commercial carriers;
6-12 (C) dedicated thoroughfare lanes;
6-13 (D) fixed skyway rail;
6-14 (E) high occupancy toll lanes;
6-15 (F) traffic management systems; and
6-16 (G) bus transit and associated lanes;
6-17 (4) the most efficient location of collection points
6-18 and transfer points;
6-19 (5) alternative routes linking access and discharge
6-20 points;
6-21 (6) alternative alignments using least populous areas
6-22 if right-of-way acquisition will be required for a transit route;
6-23 (7) estimates of capital expenditures for a functional
6-24 public transportation system;
6-25 (8) various forms of public transportation consistent
6-26 with use of transit routes, including for each form a determination
6-27 of:
7-1 (A) cost per passenger per mile;
7-2 (B) the capital expense of acquisition of the
7-3 public transportation system;
7-4 (C) costs associated with the acquisition,
7-5 improvement, or modification of the transit way; and
7-6 (D) maintenance and operating costs;
7-7 (9) administrative overhead costs separately from
7-8 other costs;
7-9 (10) load factors based on surveys, interviews, and
7-10 other reasonable quantification for the modes of transportation;
7-11 (11) a fare structure for the ridership of the public
7-12 transportation system by mode;
7-13 (12) a comparison of revenue from all sources,
7-14 including fares, fees, grants, and debt issuance, with estimated
7-15 costs and expenses;
7-16 (13) revenue minus expenses expressed numerically and
7-17 a per rider factor for each trip or segment of a trip;
7-18 (14) if the service plan contemplates joint use of
7-19 other transit systems or transfer to them, estimated dates of
7-20 access; and
7-21 (15) segments of the service plan separately if:
7-22 (A) some segments are more profitable than
7-23 others; or
7-24 (B) some segments show a smaller deficit than
7-25 others.
7-26 Sec. 460.056. APPROVAL OF SERVICE PLAN AND TAX RATE.
7-27 (a) On approval by the interim executive committee of the service
8-1 plan and tax rate, a copy of the plan and tax rate shall be
8-2 provided to the commissioners court and the governing body of each
8-3 municipality with a population of 12,000 or more located in the
8-4 county.
8-5 (b) Notice of the interim executive committee's approval of
8-6 the service plan and tax rate shall be published in a newspaper of
8-7 general circulation in the county and mailed to all governing
8-8 bodies of municipalities with a population of more than 500 located
8-9 in the county.
8-10 (c) Not later than the 60th day after the date the interim
8-11 executive committee approves the service plan and tax rate, the
8-12 governing body of a municipality with a population of 12,000 or
8-13 more may approve by resolution or order the service plan and tax
8-14 rate.
8-15 (d) A municipality with a population of 12,000 or more
8-16 located in the county that does not give its approval under
8-17 Subsection (c) may not participate in the service plan or the
8-18 confirmation election for the authority.
8-19 (e) The commissioners court may not order a confirmation
8-20 election in a municipality with a population of 12,000 or more in
8-21 which the governing body of the municipality does not approve the
8-22 service plan and tax rate.
8-23 Sec. 460.057. CONFIRMATION ELECTION. (a) The interim
8-24 executive committee shall notify the commissioners court of the
8-25 need to call a confirmation election.
8-26 (b) The commissioners court in ordering the confirmation
8-27 election shall submit to the qualified voters in the county the
9-1 following proposition:
9-2 "Shall the creation of (name of authority) be confirmed?"
9-3 (c) In addition to other information required by law, the
9-4 notice of the election must include:
9-5 (1) a brief description of the service plan; and
9-6 (2) a statement that an imposition of a tax to pay for
9-7 the service plan must be approved by the voters at a subsequent
9-8 election.
9-9 (d) The election must be held on a uniform election date.
9-10 Sec. 460.058. CONDUCT OF ELECTION. (a) A confirmation
9-11 election shall be conducted so that the votes are separately
9-12 tabulated and canvassed in order to show the results for:
9-13 (1) each municipality located in the county that
9-14 passed a resolution or order approving the service plan and tax
9-15 rate; and
9-16 (2) the qualified voters in the balance of the county.
9-17 (b) The interim executive committee shall canvass the
9-18 returns and declare the results of the election.
9-19 Sec. 460.059. RESULTS OF ELECTION. (a) If a majority of
9-20 votes received in the county favor the proposition, the authority
9-21 is confirmed, except that the authority does not include a
9-22 municipality with a population of 12,000 or more located in the
9-23 county in which a majority of the votes did not favor the
9-24 proposition.
9-25 (b) The authority ceases unless one or more municipalities
9-26 with a population of 12,000 or more votes in favor of the
9-27 proposition.
10-1 (c) If the authority is confirmed, the interim executive
10-2 committee shall record the results in its minutes and adopt an
10-3 order:
10-4 (1) declaring that the creation of the authority is
10-5 confirmed;
10-6 (2) stating the date of the election; and
10-7 (3) showing the number of votes cast for or against
10-8 the proposition in each municipality that passed a resolution or
10-9 order approving the service plan and tax rate and in the
10-10 unincorporated area of the county.
10-11 (d) On adoption of the order confirming the authority, the
10-12 interim executive committee becomes the executive committee of the
10-13 authority.
10-14 (e) A certified copy of the order shall be filed with the
10-15 Texas Department of Transportation and the comptroller of public
10-16 accounts.
10-17 Sec. 460.060. FAILURE TO CONFIRM AUTHORITY. (a) If the
10-18 authority ceases, the interim executive committee shall record the
10-19 results of the election in its minutes and adopt an order declaring
10-20 that the authority is dissolved.
10-21 (b) The county and each municipality that passed a
10-22 resolution or order approving the service plan and tax rate shall
10-23 share the expenses of the election proportionately based on the
10-24 population of the areas in which the election was conducted.
10-25 (c) An authority that has not been confirmed expires on the
10-26 third anniversary of the effective date of the resolution or order
10-27 initiating the process to create the authority.
11-1 (Sections 460.061-460.100 reserved for expansion
11-2 SUBCHAPTER C. POWERS OF AUTHORITY
11-3 Sec. 460.101. POWERS APPLICABLE TO CONFIRMED AUTHORITY.
11-4 This subchapter applies only to an authority that has been
11-5 confirmed.
11-6 Sec. 460.102. NATURE OF AUTHORITY. (a) An authority:
11-7 (1) is a governmental body and a corporate body;
11-8 (2) has perpetual succession; and
11-9 (3) exercises public and essential governmental
11-10 functions.
11-11 (b) An authority is a governmental unit under Chapter 101,
11-12 Civil Practice and Remedies Code, and the operations of the
11-13 authority are not proprietary functions for any purpose including
11-14 the application of Chapter 101, Civil Practice and Remedies Code.
11-15 Sec. 460.103. GENERAL POWERS OF AUTHORITY. (a) The
11-16 authority has any power necessary or convenient to carry out this
11-17 chapter or effect the purpose of this chapter.
11-18 (b) An authority may sue and be sued. An authority may not
11-19 be required to give security for costs in a suit brought or
11-20 prosecuted by the authority and may not be required to post a
11-21 supersedeas or cost bond in an appeal of a judgment.
11-22 (c) An authority may hold, use, sell, lease, dispose of, and
11-23 acquire, by any means, property and licenses, patents, rights and
11-24 other interests necessary, convenient, or useful to the exercise of
11-25 any power under this chapter.
11-26 (d) An authority may sell, lease, or dispose of in another
11-27 manner:
12-1 (1) any right, interest, or property of the authority
12-2 that is not necessary for the efficient operation and maintenance
12-3 of public transportation; or
12-4 (2) at any time, surplus materials or other property
12-5 that is not needed by the authority to carry out a power under this
12-6 chapter.
12-7 Sec. 460.104. POWER TO CONTRACT; GRANTS AND LOANS. (a) An
12-8 authority may contract with any person.
12-9 (b) An authority may accept a gift, grant, donation, or loan
12-10 from any person.
12-11 (c) An authority may enter into an agreement, including an
12-12 interlocal agreement, with a transportation or transit entity,
12-13 including a municipality, that is consistent with and beneficial to
12-14 the service plan approved by the authority.
12-15 Sec. 460.105. OPERATION OF PUBLIC TRANSPORTATION SYSTEM.
12-16 (a) An authority may:
12-17 (1) acquire, construct, develop, plan, own, operate,
12-18 and maintain a public transportation system in the territory of the
12-19 authority, including the territory of a political subdivision or
12-20 municipality partially located in the territory of the authority;
12-21 (2) contract with a municipality, county, or other
12-22 political subdivision for the authority to provide public
12-23 transportation services outside the authority;
12-24 (3) lease all or part of the public transportation to,
12-25 or contract for the operation of all or a part of the public
12-26 transportation system by, an operator; and
12-27 (4) contract with a political subdivision or
13-1 governmental entity to provide public transportation services
13-2 inside the authority consistent with rules and regulations
13-3 established by the authority, including capital, maintenance,
13-4 operation, and other costs specifically approved and audited by the
13-5 authority.
13-6 (b) An authority shall determine routes of the public
13-7 transportation system or approve routes submitted to the authority.
13-8 Sec. 460.106. AUTHORIZATION OF TAX LEVY. (a) An authority
13-9 may call an authorization election for a tax levy associated with
13-10 the service plan developed by the interim executive committee or a
13-11 tax rate that has been modified by action of the executive
13-12 committee at any time after the confirmation election that creates
13-13 the authority.
13-14 (b) The executive committee in ordering the authorization
13-15 election shall submit to the qualified voters in the county located
13-16 in an area participating in the authority the following
13-17 proposition:
13-18 "Shall the (name of authority) levy of a proposed tax, not to
13-19 exceed (rate), be authorized?"
13-20 (c) An election authorizing a tax levy shall be conducted in
13-21 the same manner as a confirmation election under Subchapter B.
13-22 (d) A service plan may be implemented in an area of the
13-23 county participating in the authority only if a majority of votes
13-24 received favor the authorization of a tax levy by the authority.
13-25 (e) An authority that does not authorize an initial tax levy
13-26 at an authorization election expires on the second anniversary of
13-27 the date the executive committee adopts an order declaring that the
14-1 creation of the authority is confirmed.
14-2 Sec. 460.107. ACQUISITION OF PROPERTY. (a) As necessary or
14-3 useful in the construction, repair, maintenance, or operation of a
14-4 public transportation system, an authority may use a public way,
14-5 including an alley.
14-6 (b) An authority may acquire by eminent domain any interest
14-7 in real property, including a fee simple interest and the use of
14-8 air or subsurface space, except the right of eminent domain may not
14-9 be exercised:
14-10 (1) in a municipality without the approval of the
14-11 proposed acquisition by the governing body of the municipality; or
14-12 (2) in an unincorporated area without the approval of
14-13 the proposed acquisition by the commissioners court of the county
14-14 in which the property to be condemned is located.
14-15 (c) If an authority, through the exercise of eminent domain,
14-16 makes any relocation necessary, the relocation costs shall be paid
14-17 by the authority.
14-18 (d) An eminent domain proceeding by an authority is
14-19 initiated by the adoption by the executive committee of a
14-20 resolution authorizing the exercise that:
14-21 (1) describes the property to be condemned;
14-22 (2) declares the public necessity for the acquisition;
14-23 and
14-24 (3) declares that the acquisition is necessary for the
14-25 construction, extension, improvement, or development of the public
14-26 transportation system.
14-27 (e) A resolution adopted under this section and approved by
15-1 the appropriate municipal governing body or commissioners court is
15-2 conclusive evidence of the public necessity for the acquisition
15-3 described in the resolution.
15-4 (f) Chapter 21, Property Code, applies to an eminent domain
15-5 proceeding by an authority.
15-6 Sec. 460.108. AGREEMENT WITH UTILITIES, CARRIERS. (a) An
15-7 authority may agree with any other public or private utility,
15-8 communication system, common carrier, or transportation system for:
15-9 (1) the joint use of the property or fixtures of the
15-10 agreeing entities; and
15-11 (2) the establishment of through routes, joint fares,
15-12 or transfers of passengers between the agreeing entities.
15-13 (b) If the exercise of a power granted to an authority under
15-14 this subchapter requires a public utility facility to be relocated,
15-15 adjusted, raised, lowered, rerouted, or changed as to grade or
15-16 construction, the authority shall take the required action at the
15-17 authority's expense.
15-18 (c) An authority may not impose an impact fee or assessment
15-19 on the property, equipment, or facilities of a utility.
15-20 Sec. 460.109. FARES AND USE FEES. (a) An authority shall
15-21 impose reasonable and nondiscriminatory fares, tolls, charges,
15-22 rents, and other forms of compensation for the use of the public
15-23 transportation system. The fares and other forms of compensation
15-24 shall be sufficient to produce revenue, together with tax revenue
15-25 and grants received by the authority, in an amount adequate to:
15-26 (1) pay annually the expenses necessary to operate and
15-27 maintain the public transportation system;
16-1 (2) pay as due the principal of and interest on, and
16-2 sinking fund or reserve fund payments agreed to be made with
16-3 respect to, all bonds that are issued by the authority and payable
16-4 in whole or part from the revenue; and
16-5 (3) fulfill the terms of any other agreement with the
16-6 holders of bonds issued by the authority.
16-7 (b) Fares for passenger transportation may be set according
16-8 to a zone system or by any other classification system that the
16-9 authority determines to be reasonable.
16-10 (c) This section does not limit the state's power to
16-11 regulate taxes imposed by an authority. The state agrees not to
16-12 alter the power granted to an authority under this section to
16-13 impose taxes, fares, tolls, charges, rents, and other compensation
16-14 sufficient to pay obligations incurred by the authority.
16-15 (d) The state agrees not to impair the rights and remedies
16-16 of an authority bondholder, or a person acting on behalf of a
16-17 bondholder, until the principal and interest on the bonds, the
16-18 interest on unpaid installments of interest, costs, and expenses in
16-19 connection with an action or proceeding by or on behalf of a
16-20 bondholder are discharged.
16-21 Sec. 460.110. INSURANCE. (a) An authority may insure,
16-22 through purchased insurance policies, self-insurance programs, or
16-23 both, the legal liability of the authority and of its contractors
16-24 and subcontractors arising from the acquisition, construction, or
16-25 operation of the programs and facilities of the authority for:
16-26 (1) personal or property damage; and
16-27 (2) officers' and employees' liability.
17-1 (b) An authority may use contracts, rating plans, and risk
17-2 management programs designed to encourage accident prevention.
17-3 (c) In developing an insurance or self-insurance program, an
17-4 authority may consider the peculiar hazards, indemnity standards,
17-5 and past and prospective loss and expense experience of the
17-6 authority and similar authorities and of its contractors and
17-7 subcontractors.
17-8 Sec. 460.111. TAX EXEMPTION. The property, revenue, and
17-9 income of an authority are exempt from state and local taxes.
17-10 Sec. 460.112. MASS TRANSIT RAIL SYSTEM; EXEMPTION. (a) An
17-11 authority that constructs or operates or contracts with another
17-12 entity to construct or operate a mass transit rail system is not
17-13 subject to any state law regulating or governing the design,
17-14 construction, or operation of a railroad, railway, street railway,
17-15 streetcar, or interurban railway.
17-16 (b) For purposes of ownership or transfer of ownership of an
17-17 interest in real property, a light rail mass transit system line
17-18 operating on property previously used by a railroad, railway,
17-19 street railway, or interurban railway is a continuation of existing
17-20 rail use.
17-21 (Sections 460.113-460.200 reserved for expansion
17-22 SUBCHAPTER D. PROVISIONS APPLICABLE TO EXECUTIVE COMMITTEE
17-23 Sec. 460.201. TERMS; VACANCY. (a) Each member of the
17-24 executive committee serves a term of two years.
17-25 (b) A member of the executive committee may not serve more
17-26 than three terms.
17-27 (c) A vacancy on the executive committee is filled in the
18-1 same manner as the original appointment to the interim executive
18-2 committee.
18-3 Sec. 460.202. ELIGIBILITY. To be eligible for appointment
18-4 to the executive committee, a person must have professional
18-5 experience in the field of transportation, business, government,
18-6 engineering, or law.
18-7 Sec. 460.203. CONFLICTS OF INTEREST. Members of the
18-8 executive committee and officers and employees of the authority are
18-9 subject to Chapter 171, Local Government Code.
18-10 Sec. 460.204. MEETINGS. (a) The executive committee shall
18-11 meet at least monthly to transact the business of an authority.
18-12 (b) The chair may call special meetings as necessary.
18-13 (c) The executive committee by resolution shall:
18-14 (1) set the time, place, and date of regular meetings;
18-15 and
18-16 (2) adopt rules and bylaws as necessary to conduct
18-17 meetings.
18-18 Sec. 460.205. QUORUM; VOTING REQUIREMENTS. (a) Five
18-19 members constitute a quorum of the executive committee.
18-20 (b) An action of the executive committee requires a vote of
18-21 a majority of the members present unless the bylaws require a
18-22 larger number for a specific action.
18-23 (Sections 460.206-460.300 reserved for expansion
18-24 SUBCHAPTER E. ADDITION OF TERRITORY
18-25 Sec. 460.301. ADDITION OF TERRITORY BY MUNICIPAL ANNEXATION.
18-26 When a municipality that is part of an authority annexes territory
18-27 that before the annexation is not part of the authority, the
19-1 annexed territory becomes part of the authority.
19-2 Sec. 460.302. ADDITION OF MUNICIPALITY BY ELECTION.
19-3 (a) The territory of a municipality that is not initially part of
19-4 an authority may be added to an authority if:
19-5 (1) any part of the municipality is located in the
19-6 territory of the authority;
19-7 (2) the governing body of the municipality orders an
19-8 election under this section on whether the territory of the
19-9 municipality should be added to the authority; and
19-10 (3) a majority of the votes received in the election
19-11 favor the measure.
19-12 (b) The governing body of the municipality shall certify to
19-13 the executive committee the result of an election in which the
19-14 addition is approved.
19-15 Sec. 460.303. JOINING AUTHORITY; CERTAIN AUTHORITIES.
19-16 (a) A municipality that has a population of more than 500,000 and
19-17 that is located in a county with a population of more than one
19-18 million may join a separate authority.
19-19 (b) If a municipality described by Subsection (a) joins an
19-20 authority created under this chapter and another separate authority
19-21 is subsequently established in the county in which the municipality
19-22 is located, the municipality may:
19-23 (1) remain in the authority that was created first;
19-24 (2) join the new authority in the county in which the
19-25 municipality is located; or
19-26 (3) participate with both authorities.
19-27 (c) A municipality that has requested, participated in, or
20-1 received a benefit of capital improvements made by an authority
20-2 shall on its transfer to a different authority or participation
20-3 with more than one authority continue to honor reimbursement
20-4 obligations resulting from the improvements.
20-5 Sec. 460.304. TAX IMPOSED IN ADDED TERRITORY. (a) A sales
20-6 and use tax imposed by an authority takes effect in territory added
20-7 to the authority under this subchapter on the first day of the
20-8 first calendar quarter that begins after the addition of the
20-9 territory.
20-10 (b) An authority shall send to the comptroller of public
20-11 accounts:
20-12 (1) a certified copy of an order adding the territory
20-13 or of an order canvassing the returns and declaring the results of
20-14 the election; and
20-15 (2) a map showing the territory added to the
20-16 authority.
20-17 (c) The order must include the effective date of the tax.
20-18 (Sections 460.305-460.400 reserved for expansion
20-19 SUBCHAPTER F. MANAGEMENT OF AUTHORITY
20-20 Sec. 460.401. MANAGEMENT OF AUTHORITY. The executive
20-21 committee is responsible for the management, operation, and control
20-22 of the authority and its properties.
20-23 Sec. 460.402. FINANCIAL AUDIT. (a) The executive committee
20-24 of an authority shall have an annual audit of the affairs of the
20-25 authority prepared by an independent certified public accountant.
20-26 (b) The audit is a public record as defined by Chapter 552,
20-27 Government Code.
21-1 (c) On receipt of the audit prescribed by Subsection (a),
21-2 the executive committee shall address on the record any
21-3 deficiencies noted in the report at a regular meeting of the
21-4 executive committee.
21-5 Sec. 460.403. BUDGET. The executive committee shall prepare
21-6 an annual budget.
21-7 Sec. 460.404. FUNDING. (a) An authority may request funds
21-8 for its operation from a municipality, the commissioners court, or
21-9 both a municipality and the commissioners court. The request shall
21-10 be accompanied by a budget.
21-11 (b) Funds appropriated to an authority are subject to audit.
21-12 (c) Federal funds or grants may be used to offset the
21-13 authority's annual cost of debt service.
21-14 Sec. 460.405. PROHIBITIONS. (a) An employee, agent, or
21-15 person receiving compensation from or on behalf of an authority may
21-16 not attempt to affect the outcome of proposed legislation.
21-17 (b) This section does not apply to:
21-18 (1) a contested administrative matter; or
21-19 (2) pending or reasonably anticipated litigation.
21-20 Sec. 460.406. PURCHASES: COMPETITIVE BIDDING. (a) Except
21-21 as provided by Subsection (c), an authority may not award a
21-22 contract for construction, services, or property, other than real
21-23 property, except through the solicitation of competitive sealed
21-24 bids or proposals ensuring full and open competition.
21-25 (b) The authority shall describe in a solicitation each
21-26 factor to be used to evaluate a bid or proposal and give the
21-27 factor's relative importance.
22-1 (c) The executive committee may authorize the negotiation of
22-2 a contract without competitive sealed bids or proposals if:
22-3 (1) the aggregate amount involved in the contract is
22-4 $25,000 or less;
22-5 (2) the contract is for construction for which not
22-6 more than one bid or proposal is received;
22-7 (3) the contract is for services or property for which
22-8 there is only one source or for which it is otherwise impracticable
22-9 to obtain competition;
22-10 (4) the contract is to respond to an emergency for
22-11 which the public exigency does not permit the delay incident to the
22-12 competitive process;
22-13 (5) the contract is for personal or professional
22-14 services or services for which competitive bidding is precluded by
22-15 law; or
22-16 (6) the contract, without regard to form and which may
22-17 include bonds, notes, loan agreements, or other obligations, is for
22-18 the purpose of borrowing money or is a part of a transaction
22-19 relating to the borrowing of money, including:
22-20 (A) a credit support agreement, such as a line
22-21 or letter of credit or other debt guaranty;
22-22 (B) a bond, note, debt sale or purchase,
22-23 trustee, paying agent, remarketing agent, indexing agent, or
22-24 similar agreement;
22-25 (C) an agreement with a securities dealer,
22-26 broker, or underwriter; and
22-27 (D) any other contract or agreement considered
23-1 by the executive committee to be appropriate or necessary in
23-2 support of the authority's financing activities.
23-3 (Sections 460.407-460.500 reserved for expansion
23-4 SUBCHAPTER G. BONDS AND NOTES
23-5 Sec. 460.501. DEFINITION. In this subchapter, "bond"
23-6 includes a note.
23-7 Sec. 460.502. POWER TO ISSUE BONDS. (a) An authority may
23-8 issue bonds at any time and for amounts the executive committee
23-9 determines are appropriate.
23-10 (b) The bonds may be issued as necessary for:
23-11 (1) the acquisition, construction, repair,
23-12 improvement, or extension of an authority's public transportation
23-13 system; or
23-14 (2) the creation or funding of self-insurance or
23-15 retirement or pension fund reserves.
23-16 (c) A bond issued by the authority must have 20-year even
23-17 principal and interest payback.
23-18 (d) A bond any portion of which is secured by a pledge of
23-19 sales and use tax revenues and that has a maturity of five years or
23-20 longer from the date of issuance may not be issued by an authority
23-21 until an election has been held and the proposition proposing the
23-22 issue has been approved by a majority of the votes received on the
23-23 issue in accordance with the provisions established for the
23-24 authorization of a tax levy under Subchapter C.
23-25 Sec. 460.503. BOND TERMS. The bonds of an authority are
23-26 fully negotiable. An authority may make the bonds redeemable
23-27 before maturity.
24-1 Sec. 460.504. SALE. An authority's bonds may be sold at a
24-2 public or private sale as determined by the executive committee to
24-3 be the more financially beneficial.
24-4 Sec. 460.505. INCONTESTABILITY. An authority's bonds are
24-5 incontestable after the bonds are:
24-6 (1) approved by the attorney general;
24-7 (2) registered by the comptroller of public accounts;
24-8 and
24-9 (3) sold to the purchaser.
24-10 Sec. 460.506. SECURITY PLEDGED. To secure the payment of an
24-11 authority's bonds, the authority may:
24-12 (1) pledge all or part of revenue realized from any
24-13 tax that is approved and levied;
24-14 (2) pledge any part of the revenue of the public
24-15 transportation system; or
24-16 (3) mortgage any part of the public transportation
24-17 system.
24-18 Sec. 460.507. REFUNDING BONDS. An authority may issue
24-19 refunding bonds at any time if the repayment savings from the
24-20 refunding bonds exceeds the cost of issuance.
24-21 Sec. 460.508. NOTES. (a) An authority may issue negotiable
24-22 notes payable from any of the authority's sources of revenue to pay
24-23 for any lawful expenditure, other than principal and interest on
24-24 the authority's debt.
24-25 (b) Notes issued by an authority shall be payable over a
24-26 period not to exceed five years from the date of issuance.
24-27 (c) The Texas Natural Resource Conservation Commission is
25-1 not required to approve notes issued under this section.
25-2 (d) An authority may not have outstanding notes in excess of
25-3 $1 million at any one time.
25-4 (Sections 460.509-460.550 reserved for expansion
25-5 SUBCHAPTER H. TAXATION
25-6 Sec. 460.551. SALES AND USE TAX. (a) The executive
25-7 committee may impose for an authority a sales and use tax at the
25-8 rate of:
25-9 (1) one-quarter of one percent;
25-10 (2) one-half of one percent;
25-11 (3) three-quarters of one percent; or
25-12 (4) one percent.
25-13 (b) The imposition of an authority's sales and use tax must
25-14 be approved at an election and may not be imposed in an area that
25-15 has not confirmed the authority.
25-16 (c) A sales and use tax may be imposed, as prescribed by
25-17 this section, by a municipality that participates in a
25-18 transportation or transit authority other than an authority created
25-19 under this chapter if:
25-20 (1) the combined rates of all sales and use taxes
25-21 imposed in the municipality does not exceed two percent; and
25-22 (2) the ballot of the authorization vote for the sales
25-23 and use tax reads:
25-24 "(Name of city) already imposes a sales and use tax for
25-25 participation in the transportation authority. The proposed sales
25-26 and use tax is solely for the benefit of, and will be dedicated to,
25-27 the county transportation authority."
26-1 (d) The authority shall impose a sales and use tax at a
26-2 minimum uniform rate as determined by the executive committee if
26-3 the tax is approved at an election in an area that has confirmed
26-4 the authority.
26-5 (e) A municipality with a population of 12,000 or more that
26-6 has confirmed the authority may impose a sales and use tax at a
26-7 rate higher than the minimum uniform rate established under
26-8 Subsection (d) on approval at an election if the authority will
26-9 provide the municipality a higher level of service.
26-10 Sec. 460.552. MAXIMUM TAX RATE IN AUTHORITY AREA. (a) An
26-11 authority may not adopt a sales and use tax rate, including a rate
26-12 increase, that when combined with the rates of all sales and use
26-13 taxes imposed by other political subdivisions having territory in
26-14 the authority exceeds two percent in any location in the authority.
26-15 (b) An increase in the tax rate to a higher rate must be
26-16 approved by a majority of the voters at a confirmation election.
26-17 Sec. 460.553. INITIAL SALES TAX: EFFECTIVE DATE. The
26-18 adoption of a sales and use tax takes effect on the first day of
26-19 the first calendar quarter after the confirmation election.
26-20 Sec. 460.554. RATE DECREASE. The executive committee by
26-21 order may direct the comptroller of public accounts to collect the
26-22 authority's sales and use tax at a rate that is lower than the rate
26-23 approved by the voters at the confirmation hearing if the executive
26-24 committee determines that it is in the best interest of the
26-25 authority.
26-26 SECTION 2. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3323 was passed by the House on May
4, 2001, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 3323 on May 25, 2001, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3323 was passed by the Senate, with
amendments, on May 23, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor