77R13082 E
By Solomons H.B. No. 3323
Substitute the following for H.B. No. 3323:
By Alexander C.S.H.B. No. 3323
A BILL TO BE ENTITLED
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) "Executive committee" means the governing body of
1-15 the authority.
1-16 (3) "Service plan" means an outline of the service
1-17 that would be provided by an authority.
1-18 Sec. 460.002. APPLICABILITY. This chapter applies only to a
1-19 county that:
1-20 (1) is adjacent to a county with a population of more
1-21 than one million; and
1-22 (2) does not contain a municipality that:
1-23 (A) has a population of one million or more; and
1-24 (B) is a member of a subregion of a
2-1 transportation authority governed by a board described in
2-2 Subchapter O, Chapter 452.
2-3 Sec. 460.003. INELIGIBILITY OF CERTAIN MUNICIPALITIES. (a)
2-4 A municipality that is a member of a subregion of a transportation
2-5 authority governed by a board described in Subchapter O, Chapter
2-6 452, is not eligible to join or become a member of an authority
2-7 created under this chapter unless:
2-8 (1) the municipality holds a withdrawal election in
2-9 accordance with the requirements of Section 452.655 and a majority
2-10 of the voters at the election approve the withdrawal;
2-11 (2) the municipality has paid in full all amounts that
2-12 it is required to pay under Sections 452.659 and 452.660; and
2-13 (3) the comptroller has ceased under Section 452.658
2-14 to collect sales and use taxes within the municipality that were
2-15 levied and collected in the municipality for purposes of the
2-16 authority from which the municipality has withdrawn.
2-17 (b) A municipality that is not eligible under this section
2-18 for membership in an authority created under this chapter may not
2-19 be added to or join an authority under Section 460.302 or 460.303
2-20 until the municipality meets the requirements of this section.
2-21 (Sections 460.004-460.050 reserved for expansion
2-22 SUBCHAPTER B. CREATION OF AUTHORITY
2-23 Sec. 460.051. CREATION OF AUTHORITY. (a) The commissioners
2-24 court of a county may initiate the process to create an authority
2-25 to provide public transportation and transportation-related
2-26 services:
2-27 (1) on adoption of a resolution or order initiating
3-1 the process to create an authority; or
3-2 (2) on receipt of a petition requesting creation of an
3-3 authority signed by a number of registered voters of the county
3-4 equal to or greater than five percent of the votes cast in the
3-5 county in the most recent gubernatorial election.
3-6 (b) If a petition described by Subsection (a)(2) is received
3-7 by the commissioners court, the petition shall be verified by the
3-8 county clerk, consistent with Chapter 277, Election Code, and
3-9 returned to the commissioners court with a finding of verification.
3-10 Sec. 460.052. HEARING. (a) The commissioners court shall
3-11 hold a public hearing on creation of an authority not later than
3-12 the 60th day after the date the commissioners court:
3-13 (1) receives a petition described by Section
3-14 460.051(a)(2); or
3-15 (2) adopts a resolution or order to initiate the
3-16 process to create an authority.
3-17 (b) Notice of the time and place of the public hearing on
3-18 the creation of the authority shall be published, beginning at
3-19 least 30 days before the date of the hearing, once a week for two
3-20 consecutive weeks in a newspaper of general circulation in the
3-21 county.
3-22 (c) Each municipality in the county with a population of
3-23 12,000 or more shall be notified of the public hearing by notice
3-24 mailed to the governing body of the municipality.
3-25 (d) Any person may appear at a hearing and offer evidence
3-26 on:
3-27 (1) the creation of the authority;
4-1 (2) operation of the county transportation system;
4-2 (3) public interest served in the creation of the
4-3 authority; or
4-4 (4) other facts relating to the creation of the
4-5 authority.
4-6 (e) A hearing may be continued until completed.
4-7 Sec. 460.053. RESOLUTION OR ORDER. After the hearing, the
4-8 commissioners court may adopt a resolution or order:
4-9 (1) designating the name of the authority;
4-10 (2) stating that all land within the county shall be
4-11 part of the authority; and
4-12 (3) stating that the territory described in
4-13 Subdivision (2) is subject to the authority based on the results of
4-14 the confirmation election.
4-15 Sec. 460.054. MEMBERSHIP OF INTERIM EXECUTIVE COMMITTEE. (a)
4-16 After adopting a resolution or order under Section 460.053, the
4-17 commissioners court and certain municipalities, as provided by this
4-18 section, shall appoint an interim executive committee for the
4-19 authority.
4-20 (b) The interim executive committee is composed of:
4-21 (1) one member appointed by the governing body of each
4-22 municipality with a population of 12,000 or more that is located in
4-23 the county;
4-24 (2) three members appointed by the commissioners
4-25 court, two of whom must reside in the unincorporated area of the
4-26 county; and
4-27 (3) three members to be designated by the remaining
5-1 municipalities with a population of more than 500 but less than
5-2 12,000 located in the county.
5-3 (c) The members described by Subsection (b)(3) shall be
5-4 designated as follows:
5-5 (1) each municipality with a population of more than
5-6 500 but less than 12,000 located in the county shall nominate one
5-7 person using a nomination form sent to the governing body of the
5-8 municipality by mail;
5-9 (2) the county judge shall add the names on the
5-10 nomination forms that are received before the 31st day after the
5-11 date of the mailing of the nomination forms;
5-12 (3) each municipality located in the county is
5-13 entitled to cast one vote;
5-14 (4) only ballots returned to the county judge on or
5-15 before a predetermined date shall be counted;
5-16 (5) the county judge shall designate the three persons
5-17 with the highest plurality vote as members of the executive
5-18 committee; and
5-19 (6) if three members are not designated by this
5-20 process, the county judge shall name the balance of the members of
5-21 the interim executive committee described by Subsection (b)(3).
5-22 Sec. 460.055. DUTIES OF INTERIM EXECUTIVE COMMITTEE. (a) The
5-23 interim executive committee shall elect three of its members to
5-24 serve as the chair, vice chair, and secretary.
5-25 (b) The interim executive committee shall develop a service
5-26 plan and determine a proposed tax not later than the 180th day
5-27 after the date of the interim executive committee's first meeting.
6-1 (c) The interim executive committee shall hold at least one
6-2 regular meeting a month for the purpose of developing a service
6-3 plan and determining a proposed tax rate.
6-4 (d) The interim executive committee shall consider the
6-5 following in developing the service plan:
6-6 (1) the regional transportation plan for the county;
6-7 (2) actual and projected traffic counts of private
6-8 passenger vehicles and projected destinations of the vehicles;
6-9 (3) feasible alternative modes of public
6-10 transportation, including:
6-11 (A) a fixed guideway system;
6-12 (B) passenger commercial carriers;
6-13 (C) dedicated thoroughfare lanes;
6-14 (D) fixed skyway rail;
6-15 (E) high occupancy toll lanes;
6-16 (F) traffic management systems; and
6-17 (G) bus transit and associated lanes;
6-18 (4) the most efficient location of collection points
6-19 and transfer points;
6-20 (5) alternative routes linking access and discharge
6-21 points;
6-22 (6) alternative alignments using least populous areas
6-23 if right-of-way acquisition will be required for a transit route;
6-24 (7) estimates of capital expenditures for a functional
6-25 public transportation system;
6-26 (8) various forms of public transportation consistent
6-27 with use of transit routes, including for each form a determination
7-1 of:
7-2 (A) cost per passenger per mile;
7-3 (B) the capital expense of acquisition of the
7-4 public transportation system;
7-5 (C) costs associated with the acquisition,
7-6 improvement, or modification of the transit way; and
7-7 (D) maintenance and operating costs;
7-8 (9) administrative overhead costs separately from
7-9 other costs;
7-10 (10) load factors based on surveys, interviews, and
7-11 other reasonable quantification for the modes of transportation;
7-12 (11) a fare structure for the ridership of the public
7-13 transportation system by mode;
7-14 (12) a comparison of revenue from all sources,
7-15 including fares, fees, grants, and debt issuance, with estimated
7-16 costs and expenses;
7-17 (13) revenue minus expenses expressed numerically and
7-18 a per rider factor for each trip or segment of a trip;
7-19 (14) if the service plan contemplates joint use of
7-20 other transit systems or transfer to them, estimated dates of
7-21 access; and
7-22 (15) segments of the service plan separately if:
7-23 (A) some segments are more profitable than
7-24 others; or
7-25 (B) some segments show a smaller deficit than
7-26 others.
7-27 Sec. 460.056. APPROVAL OF SERVICE PLAN AND TAX RATE. (a) On
8-1 approval by the interim executive committee of the service plan and
8-2 tax rate, a copy of the plan and tax rate shall be provided to the
8-3 commissioners court and the governing body of each municipality
8-4 with a population of 12,000 or more located in the 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 may approve by resolution or order
8-13 the service plan and tax rate.
8-14 (d) A municipality located in the county that does not give
8-15 its approval under Subsection (c) may not participate in the
8-16 service plan or the confirmation election for the authority.
8-17 (e) The commissioners court may not order a confirmation
8-18 election in a municipality in which the governing body of the
8-19 municipality does not approve the service plan and tax rate.
8-20 Sec. 460.057. CONFIRMATION ELECTION. (a) The interim
8-21 executive committee shall notify the commissioners court of the
8-22 need to call a confirmation election.
8-23 (b) The commissioners court in ordering the confirmation
8-24 election shall submit to the qualified voters in the county the
8-25 following proposition:
8-26 "Shall the creation of (name of authority) be confirmed?"
8-27 (c) In addition to other information required by law, the
9-1 notice of the election must include:
9-2 (1) a brief description of the service plan; and
9-3 (2) a statement that an imposition of a tax to pay for
9-4 the service plan must be approved by the voters at a subsequent
9-5 election.
9-6 (d) The election must be held on a uniform election date.
9-7 Sec. 460.058. CONDUCT OF ELECTION. (a) A confirmation
9-8 election shall be conducted so that the votes are separately
9-9 tabulated and canvassed in order to show the results for:
9-10 (1) each municipality located in the county that
9-11 passed a resolution or order approving the service plan and tax
9-12 rate; and
9-13 (2) the balance of the qualified voters in the county.
9-14 (b) The interim executive committee shall canvass the
9-15 returns and declare the results of the election.
9-16 Sec. 460.059. RESULTS OF ELECTION. (a) If a majority of
9-17 votes received in the county favor the proposition, the authority
9-18 is confirmed, except that the authority does not include a
9-19 municipality with a population of 12,000 or more located in the
9-20 county in which a majority of the votes did not favor the
9-21 proposition.
9-22 (b) The authority ceases if:
9-23 (1) a majority of the total votes cast in all
9-24 municipalities participating in the election do not favor the
9-25 proposition; or
9-26 (2) a majority of the votes in the unincorporated area
9-27 of the county do not favor the 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. This
11-4 subchapter applies only to an authority that has been confirmed.
11-5 Sec. 460.102. NATURE OF AUTHORITY. (a) An authority:
11-6 (1) is a governmental body and a corporate body;
11-7 (2) has perpetual succession; and
11-8 (3) exercises public and essential governmental
11-9 functions.
11-10 (b) An authority is a governmental unit under Chapter 101,
11-11 Civil Practice and Remedies Code, and the operations of the
11-12 authority are not proprietary functions for any purpose including
11-13 the application of Chapter 101, Civil Practice and Remedies Code.
11-14 Sec. 460.103. GENERAL POWERS OF AUTHORITY. (a) The
11-15 authority has any power necessary or convenient to carry out this
11-16 chapter or effect the purpose of this chapter.
11-17 (b) An authority may sue and be sued. An authority may not
11-18 be required to give security for costs in a suit brought or
11-19 prosecuted by the authority and may not be required to post a
11-20 supersedeas or cost bond in an appeal of a judgment.
11-21 (c) An authority may hold, use, sell, lease, dispose of, and
11-22 acquire, by any means, property and licenses, patents, rights and
11-23 other interests necessary, convenient, or useful to the exercise of
11-24 any power under this chapter.
11-25 (d) An authority may sell, lease, or dispose of in another
11-26 manner:
11-27 (1) any right, interest, or property of the authority
12-1 that is not necessary for the efficient operation and maintenance
12-2 of public transportation; or
12-3 (2) at any time, surplus materials or other property
12-4 that is not needed by the authority to carry out a power under this
12-5 chapter.
12-6 Sec. 460.104. POWER TO CONTRACT; GRANTS AND LOANS. (a) An
12-7 authority may contract with any person.
12-8 (b) An authority may accept a gift, grant, donation, or loan
12-9 from any person.
12-10 (c) An authority may enter into an agreement, including an
12-11 interlocal agreement, with a transportation or transit entity,
12-12 including a municipality, that is consistent with and beneficial to
12-13 the service plan approved by the authority.
12-14 Sec. 460.105. OPERATION OF PUBLIC TRANSPORTATION SYSTEM. (a)
12-15 An authority may:
12-16 (1) acquire, construct, develop, plan, own, operate,
12-17 and maintain a public transportation system in the territory of the
12-18 authority, including the territory of a political subdivision or
12-19 municipality partially located in the territory of the authority;
12-20 (2) contract with a municipality, county, or other
12-21 political subdivision for the authority to provide public
12-22 transportation services outside the authority;
12-23 (3) lease all or part of the public transportation to,
12-24 or contract for the operation of all or a part of the public
12-25 transportation system by, an operator; and
12-26 (4) contract with a political subdivision or
12-27 governmental entity to provide public transportation services
13-1 inside the authority consistent with rules and regulations
13-2 established by the authority, including capital, maintenance,
13-3 operation, and other costs specifically approved and audited by the
13-4 authority.
13-5 (b) An authority shall determine routes of the public
13-6 transportation system or approve routes submitted to the authority.
13-7 Sec. 460.106. AUTHORIZATION OF TAX LEVY. (a) An authority
13-8 may call an authorization election for a tax levy associated with
13-9 the service plan developed by the interim executive committee or a
13-10 tax rate that has been modified by action of the executive
13-11 committee at any time after the confirmation election that creates
13-12 the authority.
13-13 (b) The executive committee in ordering the authorization
13-14 election shall submit to the qualified voters in the county located
13-15 in an area participating in the authority the following
13-16 proposition:
13-17 "Shall the (name of authority) levy of a proposed tax, not to
13-18 exceed (rate), be authorized?"
13-19 (c) An election authorizing a tax levy shall be conducted in
13-20 the same manner as a confirmation election under Subchapter B.
13-21 (d) A service plan may be implemented in an area of the
13-22 county participating in the authority only if a majority of votes
13-23 received favor the authorization of a tax levy by the authority.
13-24 (e) An authority that does not authorize an initial tax levy
13-25 at an authorization election expires on the second anniversary of
13-26 the date the executive committee adopts an order declaring that the
13-27 creation of the authority is confirmed.
14-1 Sec. 460.107. ACQUISITION OF PROPERTY. (a) As necessary or
14-2 useful in the construction, repair, maintenance, or operation of a
14-3 public transportation system, an authority may use a public way,
14-4 including an alley.
14-5 (b) An authority may acquire by eminent domain any interest
14-6 in real property, including a fee simple interest and the use of
14-7 air or subsurface space, except the right of eminent domain may not
14-8 be exercised:
14-9 (1) in a municipality without the approval of the
14-10 proposed acquisition by the governing body of the municipality; or
14-11 (2) in an unincorporated area without the approval of
14-12 the proposed acquisition by the commissioners court of the county
14-13 in which the property to be condemned is located.
14-14 (c) If an authority, through the exercise of eminent domain,
14-15 makes any relocation necessary, the relocation costs shall be paid
14-16 by the authority.
14-17 (d) An eminent domain proceeding by an authority is
14-18 initiated by the adoption by the executive committee of a
14-19 resolution authorizing the exercise that:
14-20 (1) describes the property to be condemned;
14-21 (2) declares the public necessity for the acquisition;
14-22 and
14-23 (3) declares that the acquisition is necessary for the
14-24 construction, extension, improvement, or development of the public
14-25 transportation system.
14-26 (e) A resolution adopted under this section and approved by
14-27 the appropriate municipal governing body or commissioners court is
15-1 conclusive evidence of the public necessity for the acquisition
15-2 described in the resolution.
15-3 (f) Chapter 21, Property Code, applies to an eminent domain
15-4 proceeding by an authority.
15-5 Sec. 460.108. AGREEMENT WITH UTILITIES, CARRIERS. An
15-6 authority may agree with any other public or private utility,
15-7 communication system, common carrier, or transportation system for:
15-8 (1) the joint use of the property or fixtures of the
15-9 agreeing entities; and
15-10 (2) the establishment of through routes, joint fares,
15-11 or transfers of passengers between the agreeing entities.
15-12 Sec. 460.109. FARES AND USE FEES. (a) An authority shall
15-13 impose reasonable and nondiscriminatory fares, tolls, charges,
15-14 rents, and other forms of compensation for the use of the public
15-15 transportation system. The fares and other forms of compensation
15-16 shall be sufficient to produce revenue, together with tax revenue
15-17 and grants received by the authority, in an amount adequate to:
15-18 (1) pay annually the expenses necessary to operate and
15-19 maintain the public transportation system;
15-20 (2) pay as due the principal of and interest on, and
15-21 sinking fund or reserve fund payments agreed to be made with
15-22 respect to, all bonds that are issued by the authority and payable
15-23 in whole or part from the revenue; and
15-24 (3) fulfill the terms of any other agreement with the
15-25 holders of bonds issued by the authority.
15-26 (b) Fares for passenger transportation may be set according
15-27 to a zone system or by any other classification system that the
16-1 authority determines to be reasonable.
16-2 (c) This section does not limit the state's power to
16-3 regulate taxes imposed by an authority. The state agrees not to
16-4 alter the power granted to an authority under this section to
16-5 impose taxes, fares, tolls, charges, rents, and other compensation
16-6 sufficient to pay obligations incurred by the authority.
16-7 (d) The state agrees not to impair the rights and remedies
16-8 of an authority bondholder, or a person acting on behalf of a
16-9 bondholder, until the principal and interest on the bonds, the
16-10 interest on unpaid installments of interest, costs, and expenses in
16-11 connection with an action or proceeding by or on behalf of a
16-12 bondholder are discharged.
16-13 Sec. 460.110. INSURANCE. (a) An authority may insure,
16-14 through purchased insurance policies, self-insurance programs, or
16-15 both, the legal liability of the authority and of its contractors
16-16 and subcontractors arising from the acquisition, construction, or
16-17 operation of the programs and facilities of the authority for:
16-18 (1) personal or property damage; and
16-19 (2) officers' and employees' liability.
16-20 (b) An authority may use contracts, rating plans, and risk
16-21 management programs designed to encourage accident prevention.
16-22 (c) In developing an insurance or self-insurance program, an
16-23 authority may consider the peculiar hazards, indemnity standards,
16-24 and past and prospective loss and expense experience of the
16-25 authority and similar authorities and of its contractors and
16-26 subcontractors.
16-27 Sec. 460.111. TAX EXEMPTION. The property, revenue, and
17-1 income of an authority are exempt from state and local taxes.
17-2 Sec. 460.112. MASS TRANSIT RAIL SYSTEM; EXEMPTION. (a) An
17-3 authority that constructs or operates or contracts with another
17-4 entity to construct or operate a mass transit rail system is not
17-5 subject to any state law regulating or governing the design,
17-6 construction, or operation of a railroad, railway, street railway,
17-7 streetcar, or interurban railway.
17-8 (b) For purposes of ownership or transfer of ownership of an
17-9 interest in real property, a light rail mass transit system line
17-10 operating on property previously used by a railroad, railway,
17-11 street railway, or interurban railway is a continuation of existing
17-12 rail use.
17-13 (Sections 460.113-460.200 reserved for expansion
17-14 SUBCHAPTER D. PROVISIONS APPLICABLE TO EXECUTIVE COMMITTEE
17-15 Sec. 460.201. TERMS; VACANCY. (a) Each member of the
17-16 executive committee serves a term of two years.
17-17 (b) A member of the executive committee may not serve more
17-18 than three terms.
17-19 (c) A vacancy on the executive committee is filled in the
17-20 same manner as the original appointment to the interim executive
17-21 committee.
17-22 Sec. 460.202. ELIGIBILITY. To be eligible for appointment to
17-23 the executive committee, a person must have professional experience
17-24 in the field of transportation, business, government, engineering,
17-25 or law.
17-26 Sec. 460.203. CONFLICTS OF INTEREST. Members of the
17-27 executive committee and officers and employees of the authority are
18-1 subject to Chapter 171, Local Government Code.
18-2 Sec. 460.204. MEETINGS. (a) The executive committee shall
18-3 meet at least monthly to transact the business of an authority.
18-4 (b) The chair may call special meetings as necessary.
18-5 (c) The executive committee by resolution shall:
18-6 (1) set the time, place, and date of regular meetings;
18-7 and
18-8 (2) adopt rules and bylaws as necessary to conduct
18-9 meetings.
18-10 Sec. 460.205. QUORUM; VOTING REQUIREMENTS. (a) Five members
18-11 constitute a quorum of the executive committee.
18-12 (b) An action of the executive committee requires a vote of
18-13 a majority of the members present unless the bylaws require a
18-14 larger number for a specific action.
18-15 (Sections 460.206-460.300 reserved for expansion
18-16 SUBCHAPTER E. ADDITION OF TERRITORY
18-17 Sec. 460.301. ADDITION OF TERRITORY BY MUNICIPAL ANNEXATION.
18-18 When a municipality that is part of an authority annexes territory
18-19 that before the annexation is not part of the authority, the
18-20 annexed territory becomes part of the authority.
18-21 Sec. 460.302. ADDITION OF MUNICIPALITY BY ELECTION. (a) The
18-22 territory of a municipality that is not initially part of an
18-23 authority may be added to an authority if:
18-24 (1) any part of the municipality is located in the
18-25 territory of the authority;
18-26 (2) the governing body of the municipality orders an
18-27 election under this section on whether the territory of the
19-1 municipality should be added to the authority; and
19-2 (3) a majority of the votes received in the election
19-3 favor the measure.
19-4 (b) The governing body of the municipality shall certify to
19-5 the executive committee the result of an election in which the
19-6 addition is approved.
19-7 Sec. 460.303. JOINING AUTHORITY; CERTAIN AUTHORITIES. (a) A
19-8 municipality that has a population of more than 500,000 and that is
19-9 located in a county with a population of more than one million may
19-10 join a separate authority.
19-11 (b) If a municipality described by Subsection (a) joins an
19-12 authority created under this chapter and another separate authority
19-13 is subsequently established in the county in which the municipality
19-14 is located, the municipality may:
19-15 (1) remain in the authority that was created first;
19-16 (2) join the new authority in the county in which the
19-17 municipality is located; or
19-18 (3) participate with both authorities.
19-19 (c) A municipality that has requested, participated in, or
19-20 received a benefit of capital improvements made by an authority
19-21 shall on its transfer to a different authority or participation
19-22 with more than one authority continue to honor reimbursement
19-23 obligations resulting from the improvements.
19-24 Sec. 460.304. TAX IMPOSED IN ADDED TERRITORY. (a) A sales
19-25 and use tax imposed by an authority takes effect in territory added
19-26 to the authority under this subchapter on the first day of the
19-27 first calendar quarter that begins after the addition of the
20-1 territory.
20-2 (b) An authority shall send to the comptroller of public
20-3 accounts:
20-4 (1) a certified copy of an order adding the territory
20-5 or of an order canvassing the returns and declaring the results of
20-6 the election; and
20-7 (2) a map showing the territory added to the
20-8 authority.
20-9 (c) The order must include the effective date of the tax.
20-10 (Sections 460.305-460.400 reserved for expansion
20-11 SUBCHAPTER F. MANAGEMENT OF AUTHORITY
20-12 Sec. 460.401. MANAGEMENT OF AUTHORITY. The executive
20-13 committee is responsible for the management, operation, and control
20-14 of the authority and its properties.
20-15 Sec. 460.402. FINANCIAL AUDIT. (a) The executive committee
20-16 of an authority shall have an annual audit of the affairs of the
20-17 authority prepared by an independent certified public accountant.
20-18 (b) The audit is a public record as defined by Chapter 552,
20-19 Government Code.
20-20 (c) On receipt of the audit prescribed by Subsection (a),
20-21 the executive committee shall address on the record any
20-22 deficiencies noted in the report at a regular meeting of the
20-23 executive committee.
20-24 Sec. 460.403. BUDGET. The executive committee shall prepare
20-25 an annual budget.
20-26 Sec. 460.404. FUNDING. (a) An authority may request funds
20-27 for its operation from a municipality, the commissioners court, or
21-1 both a municipality and the commissioners court. The request shall
21-2 be accompanied by a budget.
21-3 (b) Funds appropriated to an authority are subject to audit.
21-4 (c) Federal funds or grants may be used to offset the
21-5 authority's annual cost of debt service.
21-6 Sec. 460.405. PROHIBITIONS. (a) An employee, agent, or
21-7 person receiving compensation from or on behalf of an authority may
21-8 not attempt to affect the outcome of proposed legislation.
21-9 (b) This section does not apply to:
21-10 (1) a contested administrative matter; or
21-11 (2) pending or reasonably anticipated litigation.
21-12 Sec. 460.406. PURCHASES: COMPETITIVE BIDDING. (a) Except as
21-13 provided by Subsection (c), an authority may not award a contract
21-14 for construction, services, or property, other than real property,
21-15 except through the solicitation of competitive sealed bids or
21-16 proposals ensuring full and open competition.
21-17 (b) The authority shall describe in a solicitation each
21-18 factor to be used to evaluate a bid or proposal and give the
21-19 factor's relative importance.
21-20 (c) The executive committee may authorize the negotiation of
21-21 a contract without competitive sealed bids or proposals if:
21-22 (1) the aggregate amount involved in the contract is
21-23 $25,000 or less;
21-24 (2) the contract is for construction for which not
21-25 more than one bid or proposal is received;
21-26 (3) the contract is for services or property for which
21-27 there is only one source or for which it is otherwise impracticable
22-1 to obtain competition;
22-2 (4) the contract is to respond to an emergency for
22-3 which the public exigency does not permit the delay incident to the
22-4 competitive process;
22-5 (5) the contract is for personal or professional
22-6 services or services for which competitive bidding is precluded by
22-7 law; or
22-8 (6) the contract, without regard to form and which may
22-9 include bonds, notes, loan agreements, or other obligations, is for
22-10 the purpose of borrowing money or is a part of a transaction
22-11 relating to the borrowing of money, including:
22-12 (A) a credit support agreement, such as a line
22-13 or letter of credit or other debt guaranty;
22-14 (B) a bond, note, debt sale or purchase,
22-15 trustee, paying agent, remarketing agent, indexing agent, or
22-16 similar agreement;
22-17 (C) an agreement with a securities dealer,
22-18 broker, or underwriter; and
22-19 (D) any other contract or agreement considered
22-20 by the executive committee to be appropriate or necessary in
22-21 support of the authority's financing activities.
22-22 (Sections 460.407-460.500 reserved for expansion
22-23 SUBCHAPTER G. BONDS AND NOTES
22-24 Sec. 460.501. DEFINITION. In this subchapter, "bond"
22-25 includes a note.
22-26 Sec. 460.502. POWER TO ISSUE BONDS. (a) An authority may
22-27 issue bonds at any time and for amounts the executive committee
23-1 determines are appropriate.
23-2 (b) The bonds may be issued as necessary for:
23-3 (1) the acquisition, construction, repair,
23-4 improvement, or extension of an authority's public transportation
23-5 system; or
23-6 (2) the creation or funding of self-insurance or
23-7 retirement or pension fund reserves.
23-8 (c) A bond issued by the authority must have 20-year even
23-9 principal and interest payback.
23-10 (d) A bond any portion of which is secured by a pledge of
23-11 sales and use tax revenues and that has a maturity of five years or
23-12 longer from the date of issuance may not be issued by an authority
23-13 until an election has been held and the proposition proposing the
23-14 issue has been approved by a majority of the votes received on the
23-15 issue in accordance with the provisions established for the
23-16 authorization of a tax levy under Subchapter C.
23-17 Sec. 460.503. BOND TERMS. The bonds of an authority are
23-18 fully negotiable. An authority may make the bonds redeemable before
23-19 maturity.
23-20 Sec. 460.504. SALE. An authority's bonds may be sold at a
23-21 public or private sale as determined by the executive committee to
23-22 be the more financially beneficial.
23-23 Sec. 460.505. INCONTESTABILITY. An authority's bonds are
23-24 incontestable after the bonds are:
23-25 (1) approved by the attorney general;
23-26 (2) registered by the comptroller of public accounts;
23-27 and
24-1 (3) sold to the purchaser.
24-2 Sec. 460.506. SECURITY PLEDGED. To secure the payment of an
24-3 authority's bonds, the authority may:
24-4 (1) pledge all or part of revenue realized from any
24-5 tax that is approved and levied;
24-6 (2) pledge any part of the revenue of the public
24-7 transportation system; or
24-8 (3) mortgage any part of the public transportation
24-9 system.
24-10 Sec. 460.507. REFUNDING BONDS. An authority may issue
24-11 refunding bonds at any time if the repayment savings from the
24-12 refunding bonds exceeds the cost of issuance.
24-13 Sec. 460.508. NOTES. (a) An authority may issue negotiable
24-14 notes payable from any of the authority's sources of revenue to pay
24-15 for any lawful expenditure, other than principal and interest on
24-16 the authority's debt.
24-17 (b) Notes issued by an authority shall be payable over a
24-18 period not to exceed five years from the date of issuance.
24-19 (c) The Texas Natural Resource Conservation Commission is
24-20 not required to approve notes issued under this section.
24-21 (d) An authority may not have outstanding notes in excess of
24-22 $1 million at any one time.
24-23 (Sections 460.509-460.550 reserved for expansion
24-24 SUBCHAPTER H. TAXATION
24-25 Sec. 460.551. SALES AND USE TAX. (a) The executive
24-26 committee may impose for an authority a sales and use tax at the
24-27 rate of:
25-1 (1) one-quarter of one percent;
25-2 (2) one-half of one percent;
25-3 (3) three-quarters of one percent; or
25-4 (4) one percent.
25-5 (b) The imposition of an authority's sales and use tax must
25-6 be approved at an election and may not be imposed in an area that
25-7 has not confirmed the authority.
25-8 (c) A sales and use tax may be imposed, as prescribed by
25-9 this section, by a municipality that participates in a
25-10 transportation or transit authority other than an authority created
25-11 under this chapter if:
25-12 (1) the combined rates of all sales and use taxes
25-13 imposed in the municipality does not exceed two percent; and
25-14 (2) the ballot of the authorization vote for the sales
25-15 and use tax reads:
25-16 "(Name of city) already imposes a sales and use tax for
25-17 participation in the transportation authority. The proposed sales
25-18 and use tax is solely for the benefit of, and will be dedicated to,
25-19 the county transportation authority."
25-20 Sec. 460.552. MAXIMUM TAX RATE IN AUTHORITY AREA. (a) An
25-21 authority may not adopt a sales and use tax rate, including a rate
25-22 increase, that when combined with the rates of all sales and use
25-23 taxes imposed by other political subdivisions having territory in
25-24 the authority exceeds two percent in any location in the authority.
25-25 (b) An increase in the tax rate to a higher rate must be
25-26 approved by a majority of the voters at a confirmation election.
25-27 Sec. 460.553. INITIAL SALES TAX: EFFECTIVE DATE. The
26-1 adoption of a sales and use tax takes effect on the first day of
26-2 the first calendar quarter after the confirmation election.
26-3 Sec. 460.554. RATE DECREASE. The executive committee by
26-4 order may direct the comptroller of public accounts to collect the
26-5 authority's sales and use tax at a rate that is lower than the rate
26-6 approved by the voters at the confirmation hearing if the executive
26-7 committee determines that it is in the best interest of the
26-8 authority.
26-9 SECTION 2. This Act takes effect September 1, 2001.