By:  Hamric                                                       H.B. No. 2958


A BILL TO BE ENTITLED
AN ACT
relating to the creation of freight rail districts; granting authority to issue bonds or other similar obligations to create public debt; granting the power of eminent domain. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The legislature finds that: (1) certain areas of the state suffer from an outdated, uncoordinated, and inefficient system of freight rail lines that were originally constructed in rural, sparsely populated areas that have become part of urban or metropolitan areas; (2) the excessive number of rail lines in these areas and the associated at-grade crossings reduce mobility, unnecessarily increase automobile idling time, increase automobile emissions, increase the risk of automobile and train accidents, unnecessarily disrupt residential neighborhoods with freight rail traffic, and reduce the speed at which freight rail cargoes reach their destinations; (3) the ports and related private industry of this state, which are essential to the commerce and economic development of the entire state, have traditionally been and continue to be major generators of freight rail traffic, as a result of which ports must be participants in the coordination of freight rail traffic in areas in which the ports operate; and (4) a system of consolidated, improved freight rail lines will reduce pollution, improve safety, increase regional mobility, decrease transit times for freight rail cargoes, benefit the environment, and generally enhance economic development and the quality of life in affected areas. SECTION 2. Title 5, Transportation Code, is amended by adding Subtitle I to read as follows:
SUBTITLE I. SPECIAL DISTRICTS
CHAPTER 171. FREIGHT RAIL DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 171.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "Bonds," "rail facilities," and "revenues" have the meanings assigned by Chapter 623, Acts of the 67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes). (3) "District" means a freight rail district created under this chapter. (4) "Principal municipality" means the most populous municipality in the most populous county that created the district. Sec. 171.002. APPLICABILITY OF RURAL RAIL TRANSPORTATION DISTRICTS LAW. (a) Except as provided by this chapter, Chapter 623, Acts of the 67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes), applies to the district as if the district was created under that chapter. (b) For purposes of this chapter, an "eligible county" under Chapter 623, Acts of the 67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes), means a county that created the district.
[Sections 171.003-171.050 reserved for expansion]
SUBCHAPTER B. CREATION
Sec. 171.051. APPLICABILITY TO CERTAIN COUNTIES. A district may be created only in a county with a population of 3.3 million or more and counties adjacent to such a county. Sec. 171.052. CREATION BY COUNTIES AND MUNICIPALITIES. The governing bodies of one or more counties and a principal municipality may by concurrent order or orders and by concurrent ordinance create a district. A district must include: (a) a county with a population of 3.3 million or more; and (b) a principal municipality. Sec. 171.053. DISTRICT TERRITORY. The district consists of the territory of each county that created the district and the principal municipality, if located in more than one county.
[Sections 171.054-171.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 171.101. COMPOSITION OF BOARD. The concurrent order or orders and current ordinance creating the district must specify the number of directors for the district and who appoints the directors, except as otherwise provided in Sec. 171.103 and Sec. 171.104. Sec. 171.102. PRESIDING OFFICER. The concurrent order or orders and concurrent ordinance creating the district must specify who shall serve as presiding officer of the board. Sec. 171.103. NAVIGATION DISTRICT. If the most populous county in the district contains a countywide navigation district and the presiding officer of the navigation district is jointly appointed by the county and the principal municipality, one of the directors appointed by the most populous county in the district shall be the presiding officer of the navigation district. The common law doctrine of incompatibility does not apply to a director who serves under this section. Sec. 171.104. DEPARTMENT OF TRANSPORTATION The Texas Transportation Commission may appoint a representative to serve as an ex officio member of the board of the District. Sec. 171.105. CONFLICT OF INTEREST. Chapter 171, Local Government Code, governs conflicts of interest for directors.
[Sections 171.106-171.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
Sec. 171.151. GENERAL POWERS. A district may study, evaluate, design, finance acquire, construct, maintain, repair, and operate a system of consolidated, improved, freight rail lines and other transportation projects. Sec. 171.152. FREIGHT RAIL SYSTEM. (a) A district may plan, acquire, construct, complete, develop, finance, maintain, improve, own, and operate a new or existing system of freight rail facilities, including: (1) tracks; (2) rail lines; (3) switching, signaling, or other operating equipment; (4) a depot; (5) locomotives; (6) rolling stock; (7) maintenance facilities; and (8) any other property associated with freight rail operation. (b) A district may, for a freight rail system created or operated under this section, exercise the transportation project powers of a regional mobility authority under Chapter 370. Sec. 171.153. GENERAL CONTRACT POWERS. A district may contract with: (1) any county or municipality, including those that created the district; (2) a navigation district that includes all or part of a county or municipality that created the district; (3) a municipality that operates a port in a county that created the district; or (4) the state and any agency or political subdivision of the state. Sec. 171.154. CONTRACT FOR GOODS OR SERVICES. A district may contract with a county or any other political subdivision of this state for the district to provide goods or services to an area outside the boundaries of the district on any conditions agreed to by the parties. Sec. 171.155. EXERCISE OF POWERS IN OTHER COUNTIES. The commissioners court of a county that is not in the district may authorize the district to exercise its powers in the county.
[Sections 171.156-171.200 reserved for expansion]
SUBCHAPTER E. FINANCIAL PROVISIONS
Sec. 171.201. PLEDGE OF REVENUES. A district may secure and pledge revenues derived from any source to secure the payment of district bonds. Sec. 171.202. PURCHASE CONTRACTS. Subchapter C, Chapter 60, Water Code, as added by Chapter 307, Acts of the 78th Legislature, Regular Session, 2003, applies to the district as if the district were a navigation district under that subchapter. For the purposes of applying that subchapter to the district under this section, "commission" means the board. Sec. 171.203. AD VALOREM TAX PROHIBITED. A district may not impose an ad valorem tax.
[Sections 171.204-171.250 reserved for expansion]
SUBCHAPTER F. WITHDRAWAL; DISSOLUTION
Sec. 171.251. WITHDRAWAL. A county or municipality that created the district may petition the board for approval to withdraw from the district. The board may approve the petition only if: (1) the district has no outstanding bonds; or (2) the district has debt other than bonds and the board finds that the withdrawal of the county or municipality will not materially affect the ability of the district to repay the debt. Sec. 171.252. DISSOLUTION. In addition to the dissolution procedures provided by Chapter 623, Acts of the 67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes), the board may dissolve a district if: (1) all district liabilities have been paid or adequate provision has been made for the payment of all liabilities; (2) the district is not a party to any lawsuits or adequate provision has been made for the satisfaction of any judgment or order that may be entered against the district in a lawsuit to which the district is a party; and (3) the district has commitments from other governmental entities to assume jurisdiction of all district rail facilities.
[Sections 171.253-171.260 reserved for expansion]
SUBCHAPTER G. COMMUTER RAIL
Sec. 171.261. APPLICABILITY OF INTERMUNICIPAL COMMUTER RAIL DISTRICTS LAW. If the concurrent order or orders and concurrent ordinance creating the district expressly so provide, a district may exercise the powers of a district under Chapter 381, Acts of the 75th Legislature, Regular Session 1997 (Article 6550c-1, Vernon's Texas Civil Statutes), in addition to the other powers as provided in this chapter.
[Sections 171.262-171.270 reserved for expansion]
SECTION 3. 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.