79R6202 MTB-F
By: Phillips H.B. No. 2138
A BILL TO BE ENTITLED
AN ACT
relating to the acquisition, construction, maintenance, operation,
and provision of toll facilities and a transit system by a regional
mobility authority, and the transfer to a regional mobility
authority of the toll facilities, transit system, and related
assets of a regional tollway authority or transit provider or of
certain counties; providing criminal penalties; authorizing a tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 284, Transportation Code,
is amended by adding Section 284.011 to read as follows:
Sec. 284.011. TRANSFER OF ASSETS. (a) A county, acting
through the commissioners court of the county, may submit a request
to the commission for authorization to create a regional mobility
authority under Chapter 370 and to transfer all projects under this
chapter to the regional mobility authority if:
(1) the creation of the regional mobility authority
and transfer of projects is not prohibited under the bond
proceedings applicable to the projects;
(2) adequate provision has been made for the
assumption by the regional mobility authority of all debts,
obligations, and liabilities of the county arising out of the
transferred projects; and
(3) the commissioners courts of any additional
counties to be part of the regional mobility authority have
approved the request.
(b) The county may submit to the commission a proposed
structure for the initial board of directors of the regional
mobility authority and a method for appointment to the board of
directors at the creation of the regional mobility authority.
Subsequent appointments to the board of directors are subject to
the requirements of Subchapter F, Chapter 370.
(c) After commission authorization, the county may transfer
each of its projects under this chapter to the regional mobility
authority to the extent authorized by the Texas Constitution if
property and contract rights in the projects and bonds issued for
the projects are not affected unfavorably.
(d) The commission shall adopt rules governing the creation
of a regional mobility authority and the transfer of projects under
this section.
SECTION 2. Chapter 366, Transportation Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. DISSOLUTION OF AUTHORITY
Sec. 366.036. DISSOLUTION OF AUTHORITY; TRANSFER OF ASSETS.
(a) An authority may submit a request to the commission for
authorization to dissolve the authority and to create a regional
mobility authority under Chapter 370 if:
(1) dissolution is not prohibited under the bond
proceedings applicable to the turnpike projects and systems owned
by the authority;
(2) adequate provision has been made for the
assumption of all debts, obligations, and liabilities of the
authority by the regional mobility authority; and
(3) the request has been approved by the commissioners
court of each county that is part of the authority.
(b) The authority may submit to the commission a proposed
structure for the initial board of directors of the regional
mobility authority and a method for appointment to the board of
directors at the creation of the regional mobility authority.
Subsequent appointments to the board of directors are subject to
the requirements of Subchapter F, Chapter 370.
(c) After commission authorization, the authority may
transfer each of its turnpike projects to the regional mobility
authority if property and contract rights in the projects and bonds
issued for the projects are not affected unfavorably.
(d) The commission shall adopt rules governing the creation
of a regional mobility authority and the transfer of turnpike
projects under this section.
SECTION 3. Section 370.003, Transportation Code, is amended
by amending Subdivision (14) and adding Subdivisions (16), (17),
(18), and (19) to read as follows:
(14) "Transportation project" means:
(A) a turnpike project;
(B) a system;
(C) a passenger or freight rail facility,
including:
(i) tracks;
(ii) a rail line;
(iii) switching, signaling, or other
operating equipment;
(iv) a depot;
(v) a locomotive;
(vi) rolling stock;
(vii) a maintenance facility; and
(viii) other real and personal property
associated with a rail operation;
(D) a roadway with a functional classification
greater than a local road or rural minor collector;
(E) a ferry;
(F) an airport;
(G) a pedestrian or bicycle facility;
(H) an intermodal hub;
(I) an automated conveyor belt for the movement
of freight;
(J) a border crossing inspection station;
(K) an air quality improvement initiative;
(L) a public utility facility; [and]
(M) a transit system; and
(N) if applicable, projects and programs listed
in the most recently approved state implementation plan for the
area covered by the authority, including an early action compact.
(16) "Mass transit" means the transportation of
passengers and hand-carried packages or baggage of a passenger by
any means of surface, overhead, or underground transportation,
other than an aircraft or taxicab.
(17) "Service area" means the county or counties in
which an authority or transit provider has established a transit
system.
(18) "Transit provider" means an entity that provides
mass transit for the public and that was created under Chapter 451,
452, 453, 454, 457, 458, or 460.
(19) "Transit system" means:
(A) property owned or held by an authority for
mass transit purposes; and
(B) facilities necessary, convenient, or useful
for:
(i) the use of or access to mass transit by
persons or vehicles; or
(ii) the protection or environmental
enhancement of mass transit.
SECTION 4. Section 370.033, Transportation Code, is amended
by amending Subsections (a), (k), and (m) and adding Subsection (o)
to read as follows:
(a) An authority, through its board, may:
(1) adopt rules for the regulation of its affairs and
the conduct of its business;
(2) adopt an official seal;
(3) study, evaluate, design, finance, acquire,
construct, maintain, repair, and operate transportation projects,
individually or as one or more systems, provided that a
transportation project that is subject to Subpart C, 23 C.F.R. Part
450, is:
(A) included in the plan approved by the
applicable metropolitan planning organization; and
(B) consistent with the statewide transportation
plan and the statewide transportation improvement program;
(4) acquire, hold, and dispose of property in the
exercise of its powers and the performance of its duties under this
chapter;
(5) enter into contracts or operating agreements with
a similar authority, another governmental entity, or an agency of
the United States, a state of the United States, the United Mexican
States, or a state of the United Mexican States;
(6) enter into contracts or agreements necessary or
incidental to its powers and duties under this chapter;
(7) cooperate and work directly with property owners
and governmental entities and officials to support an activity
required to promote or develop a transportation project;
(8) employ and set the compensation and benefits of
administrators, consulting engineers, attorneys, accountants,
construction and financial experts, superintendents, managers,
full-time and part-time employees, agents, consultants, and other
persons as the authority considers necessary or useful;
(9) notwithstanding Sections 221.003 and 222.031 and
subject to Subsections (j) and (m), apply for, directly or
indirectly receive and spend loans, gifts, grants, and other
contributions for any purpose of this chapter, including the
construction of a transportation project, and receive and spend
contributions of money, property, labor, or other things of value
from any source, including the United States, a state of the United
States, the United Mexican States, a state of the United Mexican
States, the commission, the department, a subdivision of this
state, or a governmental entity or private entity, to be used for
the purposes for which the grants, loans, or contributions are
made, and enter into any agreement necessary for the grants, loans,
or contributions;
(10) install, construct, or contract for the
construction of public utility facilities, including for transit
system purposes as provided by Sections 370.351(e) and (f), direct
the time and manner of construction of a public utility facility in,
on, along, over, or under a transportation project, or request the
removal or relocation of a public utility facility in, on, along,
over, or under a transportation project;
(11) organize a corporation under Chapter 431 for the
promotion and development of transportation projects;
(12) adopt and enforce rules not inconsistent with
this chapter for the use of any transportation project, including
tolls, fares, or other user fees, speed and weight limits, and
traffic and other public safety rules, provided that an authority
must consider the same factors that the Texas Turnpike Authority
division of the department must consider in altering a prima facie
speed limit under Section 545.354;
(13) enter into leases, operating agreements, service
agreements, licenses, franchises, and similar agreements with a
public or private party governing the party's use of all or any
portion of a transportation project and the rights and obligations
of the authority with respect to a transportation project;
(14) borrow money from or enter into a loan agreement
or other arrangement with the state infrastructure bank; and
(15) do all things necessary or appropriate to carry
out the powers and duties expressly granted or imposed by this
chapter.
(k) An authority may not directly provide water,
wastewater, natural gas, petroleum pipeline, electric
transmission, electric distribution, telecommunications,
information, or cable television services, except for transit
system purposes as provided by Sections 370.351(e) and (f).
(m) If an authority receives money from the general revenue
fund, the Texas Mobility Fund, or the state highway fund it may use
the money only to acquire, design, finance, construct, operate, or
maintain a turnpike project under Section 370.003(14)(A) or (D), or
a transit system under Section 370.351.
(o) An authority may not provide a transit system in a
service area where another transit provider has implemented taxing
authority unless the service is provided under a written agreement
with the transit provider or under Section 370.186.
SECTION 5. Section 370.170(a), Transportation Code, is
amended to read as follows:
(a) An authority may adopt rules for the authority's
approval of the installation, construction, relocation, and
removal of a public utility facility in, on, along, over, or under a
transportation project, and for transit system purposes as provided
by Sections 370.351(e) and (f).
SECTION 6. Sections 370.181(d) and (e), Transportation
Code, are amended to read as follows:
(d) An authority may not directly provide water,
wastewater, natural gas, petroleum pipeline, electric
transmission, electric distribution, telecommunications,
information, or cable television services, except for transit
system purposes as provided by Sections 370.351(e) and (f).
(e) Nothing in this chapter, or any contractual right
obtained under a contract with an authority authorized by this
chapter, except for transit system purposes as provided by Sections
370.351(e) and (f), supersedes or renders ineffective any provision
of another law applicable to the owner or operator of a public
utility facility, including any provision of the Utilities Code
regarding licensing, certification, and regulatory jurisdiction of
the Public Utility Commission of Texas or Railroad Commission of
Texas.
SECTION 7. Chapter 370, Transportation Code, is amended by
adding Subchapters I and J to read as follows:
SUBCHAPTER I. TRANSIT SYSTEMS
Sec. 370.351. TRANSIT SYSTEMS. (a) An authority may
construct, own, operate, and maintain a transit system.
(b) An authority shall determine each transit route,
including transit route changes.
(c) If an authority contracts with another entity to
construct, maintain, or operate electric buses operated by the
authority under this chapter, the electric bus system is not
subject to any state law regulating or governing the design,
construction, or operation of a railroad, railway, street railway,
street car, or interurban railway.
(d) For purposes of ownership or transfer of ownership of an
interest in real property, an electric bus system operating under
this chapter on property previously used by a railroad, railway,
street railway, or interurban railway is a continuation of an
existing rail use.
(e) If an authority establishes a transit system that
includes or is to include bus service propelled by electric power in
a service area all or part of which is served by the electric power
distribution systems of more than one electric utility company or
municipally owned electric utility system, the authority may:
(1) acquire, construct, own, operate, and maintain for
the sole purpose of powering its vehicles over its transportation
system, sources of electric power, including wholly owned or
partially owned generating facilities of any type and at any
location, fuel reserves, and supplies;
(2) in conjunction with owning a generating facility,
acquire, construct, own, operate, and maintain transmission and
distribution facilities needed to deliver power from the generating
facility to its transit system; and
(3) contract for the purchase of power and energy with
any supplier of power and energy that serves any part of the service
area for the sole purpose of supplying the power and energy
necessary to operate the authority's vehicles and equipment.
(f) The parties to a contract made under Subsection (e)(3)
may fulfill the terms of the contract notwithstanding any order or
rule of the Public Utility Commission of Texas with respect to
certification, except that any supply of power or energy by a
utility into the service area of another utility must be provided
over transmission or distribution lines owned by the authority.
(g) This chapter does not prohibit an authority,
municipality, or transit provider from providing any service that
complements a transit system, including providing parking garages,
special transportation for persons who are disabled or elderly, or
medical transportation services.
Sec. 370.352. PUBLIC HEARING ON FARE AND SERVICE CHANGES.
(a) In this section:
(1) "Service change" means any addition or deletion
resulting in the physical realignment of a transit route or a change
in the type or frequency of service provided in a specific,
regularly scheduled transit route.
(2) "Transit revenue vehicle mile" means one mile
traveled by a transit vehicle while the vehicle is available to
public passengers.
(3) "Transit route" means a route over which a transit
vehicle travels that is specifically labeled or numbered for the
purpose of picking up or discharging passengers at regularly
scheduled stops and intervals.
(4) "Transit route mile" means one mile along a
transit route regularly traveled by transit vehicles while
available to public passengers.
(b) Except as provided by Section 370.353, an authority
shall hold a public hearing on:
(1) a fare change;
(2) a service change involving:
(A) 25 percent or more of the number of transit
route miles of a transit route; or
(B) 25 percent or more of the number of transit
revenue vehicle miles of a transit route, computed daily, for the
day of the week for which the change is made; or
(3) the establishment of a new transit route.
(c) An authority shall hold the public hearing required by
Subsection (b) before the cumulative amount of service changes in a
fiscal year equals a percentage amount described in Subsection
(b)(2)(A) or (B).
Sec. 370.353. PUBLIC HEARING ON FARE AND SERVICE CHANGES:
EXCEPTIONS. (a) In this section, "experimental service change"
means an addition of service to an existing transit route or the
establishment of a new transit route.
(b) A public hearing under Section 370.352 is not required
for:
(1) a reduced or free promotional fare that is
instituted daily or periodically over a period of not more than 180
days;
(2) a headway adjustment of not more than five minutes
during peak-hour service and not more than 15 minutes during
non-peak-hour service;
(3) a standard seasonal variation unless the number,
timing, or type of the standard seasonal variation changes; or
(4) an emergency or experimental service change in
effect for 180 days or less.
(c) A hearing on an experimental service change in effect
for more than 180 days may be held before or while the experimental
service change is in effect and satisfies the requirement for a
public hearing if the hearing notice required by Section 370.354
states that the change may become permanent at the end of the
effective period. If a hearing is not held before or while the
experimental service change is in effect, the service that existed
before the change must be reinstituted at the end of the 180th day
after the change became effective and a public hearing must be held
in accordance with Section 370.352 before the experimental service
change may be continued.
Sec. 370.354. NOTICE OF HEARING ON FARE OR SERVICE CHANGE.
(a) After calling a public hearing required by Section 370.352, the
authority shall:
(1) at least 30 days before the date of the hearing,
publish notice of the hearing at least once in a newspaper of
general circulation in the territory of the authority; and
(2) post notice in each transit vehicle in service on
any transit route affected by the proposed change for at least two
weeks within 30 days before the date of the hearing.
(b) The notice must contain:
(1) a description of each proposed fare or service
change, as appropriate;
(2) the time and place of the hearing; and
(3) if the hearing is required under Section
370.352(c), a description of the latest proposed change and the
previous changes.
(c) The requirement for a public hearing under Section
370.352 is satisfied at a public hearing required by federal law if:
(1) the notice requirements of this section are met;
and
(2) the proposed fare or service change is addressed
at the meeting.
Sec. 370.355. CRIMINAL PENALTIES. (a) An authority by
resolution may prohibit the use of the transit system by a person
who fails to possess evidence showing that the appropriate fare for
the use of the system has been paid and may establish reasonable and
appropriate methods, including using peace officers under Section
370.181(c), to ensure that persons using the transit system pay the
appropriate fare for that use.
(b) An authority by resolution may provide that a fare for
or charge for the use of the transit system that is not paid incurs a
penalty, not to exceed $100.
(c) The authority shall post signs designating each area in
which a person is prohibited from using the transit system without
possession of evidence showing that the appropriate fare has been
paid.
(d) A person commits an offense if:
(1) the person or another for whom the person is
criminally responsible under Section 7.02, Penal Code, uses the
transit system and does not possess evidence showing that the
appropriate fare has been paid; and
(2) the person fails to pay the appropriate fare or
other charge for the use of the transit system and any penalty on
the fare on or before the 30th day after the date the authority
notifies the person that the person is required to pay the amount of
the fare or charge and the penalty.
(e) The notice required by Subsection (d)(2) may be included
in a citation issued to the person by a peace officer under Article
14.06, Code of Criminal Procedure, in connection with an offense
relating to the nonpayment of the appropriate fare or charge for the
use of the transit system.
(f) An offense under Subsection (d) is a Class C
misdemeanor.
(g) An offense under Subsection (d) is not a crime of moral
turpitude.
SUBCHAPTER J. ACQUIRING TRANSIT SYSTEMS
Sec. 370.361. TRANSFER OF TRANSIT SYSTEMS. (a) An
authority may request a transit provider to transfer the provider's
transit system to the authority if the board determines that the
traffic needs of the counties in which the authority operates could
be most efficiently and economically met by the transfer.
(b) If an authority makes a request under Subsection (a),
the governing body of the transit provider may authorize the
authority to solicit public comment. The authority shall conduct a
public hearing in each county in the transit provider's service
area if authorized by the governing body of the transit provider.
Notice of the hearing must be published in the Texas Register, one
or more newspapers of general circulation in the counties in the
transit provider's service area, and a newspaper, if any, published
in the counties of the requesting authority. The notice shall also
solicit written comments on the proposed transfer.
(c) A board may approve the acquisition of the transit
provider if the governing body of the transit provider approves
transfer of its operations to the authority and agrees to dissolve.
Before approving the acquisition, the board shall consider public
comments received under Subsection (b).
(d) If the transfer is approved under Subsection (c), the
governing body of the transit provider shall transfer to the
authority all property, funds, and employees of the transit
provider.
(e) The authority shall assume all debts or other
obligations of the transferred transit provider in connection with
the acquisition of property under Subsection (d).
(f) The authority shall continue to collect any existing
sales and use tax at a permissible rate that does not exceed the
rate approved by the voters who reside in the service area of the
transferred transit provider for use in that taxing area.
(g) Notwithstanding any other state law, the authority
shall continue to collect any state or federal funding for which the
transferred transit provider was eligible and receiving.
Sec. 370.362. SALES AND USE TAX. (a) If an authority
acquires a transit provider with taxing authority, the authority
may impose a sales and use tax at a permissible rate that does not
exceed the rate approved by the voters who reside in the service
area of the transit provider's transit system at an election under
this subchapter.
(b) The authority by resolution may:
(1) decrease the rate of the sales and use tax to a
permissible rate; or
(2) call an election for the increase or decrease of
the sales and use tax to a permissible rate.
(c) If an authority orders an election, the authority shall
publish notice of the election in a newspaper of general
circulation in the territory of the authority at least once each
week for three consecutive weeks, with the first publication
occurring at least 21 days before the date of the election.
(d) A resolution ordering an election and the election
notice required by Subsection (c) must show, in addition to the
requirements of the Election Code, the hours of the election and
polling places in election precincts.
(e) A copy of the election notice required by Subsection (c)
shall be furnished to the commission and the comptroller.
(f) The permissible rates for a sales and use tax imposed
under this subchapter are:
(1) one-quarter of one percent; or
(2) one-half of one percent.
(g) Chapter 322, Tax Code, applies to a sales and use tax
imposed under this subchapter.
Sec. 370.363. MAXIMUM TAX RATE. (a) An authority may not
adopt a sales and use tax rate, including a rate increase, that when
combined with the rates of all sales and use taxes imposed by all
political subdivisions of this state having territory in the
service area of the transferred transit system exceeds two percent
in any location in the service area.
(b) An election to approve a sales and use tax or increase
the rate of an authority's sales and use tax has no effect if:
(1) the voters in the service area approve the
authority's sales and use tax rate or rate increase at an election
held on the same day on which a municipality or county having
territory in the jurisdiction of the service area adopts a sales and
use tax or an additional sales and use tax; and
(2) the combined rates of all sales and use taxes
imposed by the authority and all political subdivisions of this
state would exceed two percent in any part of the territory in the
service area.
Sec. 370.364. ELECTION TO CHANGE TAX RATE. (a) At an
election ordered under Section 370.362(b)(2), the ballots shall be
printed to permit voting for or against the proposition: "The
increase (decrease) of the local sales and use tax rate for mass
transit to (percentage)."
(b) The increase or decrease in the tax rate becomes
effective only if it is approved by a majority of the votes cast.
(c) A notice of the election and a certified copy of the
order canvassing the election results shall be:
(1) sent to the commission and the comptroller; and
(2) filed in the deed records of the county.
Sec. 370.365. SALES TAX: EFFECTIVE DATES. (a) A sales and
use tax implemented under this subchapter takes effect on the first
day of the second calendar quarter that begins after the date the
comptroller receives a copy of the order required to be sent under
Section 370.364(c).
(b) An increase or decrease in the rate of a sales and use
tax implemented under this subchapter takes effect on:
(1) the first day of the first calendar quarter that
begins after the date the comptroller receives the notice provided
under Section 370.364(c); or
(2) the first day of the second calendar quarter that
begins after the date the comptroller receives the notice, if
within 10 days after the date of receipt of the notice the
comptroller gives written notice to the board that the comptroller
requires more time to implement tax collection and reporting
procedures.
SECTION 8. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.