By: Hill H.B. No. 3228
A BILL TO BE TITLED
AN ACT
relating to the creation, organization, management, powers and
duties, and development of service and financial plan for a
regional passenger rail district in metropolitan areas; providing
for elections; providing for a governing structure; authorizing
contracting with existing public transportation providers; making
provisions as to severability; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
The Transportation Code is amended by adding the following
sections:
Section 1. The legislature finds that:
(1) An increasing proportion of the state's population
is located in its rapidly expanding metropolitan areas;
(2) The concentration of population in such areas in
accompanied by a corresponding concentration of motor vehicles that
emit pollutants into the air and consume great quantities of
limited energy resources;
(3) Such concentration of motor vehicles places an
undue burden on existing streets, freeways, and other traffic ways,
resulting in serious vehicular traffic congestion that retards
mobility of persons and property and adversely affects the health
and welfare of the citizenry;
(4) Mobility for all citizens, which must include
alternatives to the private passenger motor vehicle, is essential
to the continued growth and maintenance of economic vitality of
these metropolitan areas; and
(5) There is a need for areas not in existing regional
public transportation systems to be served with rail transit and to
connect with existing systems in a seamless fashion.
Definitions
Sec. 2. In this article:
(1) "Regional rail district facility" means any
property necessary for the transportation of passengers and baggage
between points in a district. The term includes rolling stock,
locomotives, stations, parking areas, and rail lines
(2) "Authority" means a regional transportation
authority created under Chapter 452, or a coordinated county
transportation authority created under Chapter 460.
(3) "Creating entity" means a local government as
described by Section 2(a) of this article.
(4) "District" means a regional passenger rail
district created under this article.
(5) "District property" means all property the
district owns or leases under a long-term lease.
(6) "System" means all of the regional passenger rail
and intermodal facilities leased or owned by or operated on behalf
of a district created under this article.
Determination of Population
Sec. 3. In this Act, population of a county is determined by
the most recent federal census unless there has been no federal
census in the preceding five years, in which case the population is
the latest population estimate of the appropriate metropolitan
planning organization, provided however no population within an
existing Authority is counted.
Creation of District
Sec. 4. (a) A district may be created to provide regional
passenger rail service in an area composed of the territory of two
contiguous counties each of which contains a municipality having a
population of 550,000 or more, and in the counties contiguous to
those two counties. Counties with an existing coordinated county
transportation authority as created pursuant to Chapter 460 of the
Transportation Code shall not be eligible to participate in the
district. In counties with regional transportation authorities
created under Chapter 452 of the Transportation Code, only the
parts of the county outside the boundaries of the authorities will
be included.
(b) A district is created upon passage of a resolution
favoring the creation of the district by possible creating
commissioners courts. The district shall be created if one of the
commissioners courts with a regional transportation authority
adopts the resolution.
Interim Board of Directors
Sec. 5. (a) After adopting a resolution under Sec.3.(b),
the commissioners courts having passed resolutions shall appoint an
interim board of directors for the district.
(b) The interim board of directors is composed of:
(1) one member appointed by the governing body of each
participating county; and
(2) five members appointed by the commissioners court,
to be determined by the county's population proportionate to the
total population of the entire district population, counties may
combine aggregate population in order to get representation; and
(3) the interim board or executive committee chair, or
their designee, of authorities established under Chapter 452 or
Chapter 460 in the eligible district area are ex officio nonvoting
members of the board.
(4) all members appointed shall reside in the
district.
(c) A vacancy on the board is filled in the same manner as
the original appointment. Each member serves a term of two years.
Duties of the Interim Board of Directors
Sec. 6. (a) The interim board of directors shall elect three
of its members to serve as the chair, vice chair, and secretary.
(b) The district is governed by the interim board of
directors. The interim board is responsible for the management,
operation, and control of the district.
(c) The interim board shall develop a service plan for the
district not later than one year after the date of the interim
board's first meeting.
(d) The interim board shall hold at least one regular
meeting a month for the purpose of developing a service plan and
proposals for an election to confirm the district.
(e) The interim board may accept funding support for
activities prior to the confirmation election from the metropolitan
planning organization, any local governments, or any other public
or private source of funds.
(f) The presiding officer shall call the monthly board
meetings and may hold other meetings as the presiding officer
determines are appropriate.
(g) A member of the board is not entitled to compensation
for serving as a member but is entitled to reimbursement for
reasonable expenses incurred while serving as a member.
(h) The board shall adopt rules for its proceedings and may
employ and compensate persons to carry out the powers and duties of
the district
(i) Chapter 171, Local Government Code, applies to a board
member of a district.
Confirmation of the District
Sec. 7. (a) On the approval by the interim board of
directors of the service plan, including a general financial
approach for implementing the plan, a copy of the plan shall be
provided to the commissioners courts of counties participating in
the district.
(b) Notice of the interim board of director's approval of
the service plan shall be published in a newspaper of general
circulation in the participating counties.
(c) Not later than 120 days after the date the interim board
approves the service plan, the governing body of the participating
counties shall approve by resolution the service plan and indicate
the county's intent to participate in the confirmation election.
(d) The confirmation election will not be called in the
participating counties without concurrence of the respective
commissioners court.
(e) The district will exist and confirmed to include the
boundaries of counties where the majority of voters confirm the
general election. The district will cease to exist in counties that
do not have a majority of voters approving confirmation of the
district. For the district to be confirmed, the vote must be
affirmative in at least one county with a regional transportation
authority.
(f) Alternatively, the commissioners courts representing
all counties within the boundaries of the district may agree by
resolution of each to require that the vote be affirmative in all
counties in the district to be considered confirm and continue to
exist.
Confirmation Election
Sec. 8. (a) The interim board shall notify the
commissioners court of the need to call a confirmation election.
(b) The commissioners court in ordering the confirmation
election shall submit to the qualified voters in the county the
following proposition:
"Shall the creation of (name of district) be confirmed?"
(c) In addition to other information required by law, the
notice of the election must include:
(1) a brief description of the service plan; and
(2) a statement about the general financial approach
for implementing services described in the service plan that will
be detailed in a proposal to impose a financing mechanism that must
be approved by voters in a subsequent election.
(d) The election must be held on a uniform election date.
Conduct of Confirmation Election
Sec. 9. (a) A confirmation election shall be conducted so
that the votes are separately tabulated by county, or by entire area
voting, if so called for by the decision made in Sec. 6 (f) and
canvassed in order to show the results.
(b) The interim board shall canvass the returns and declare
the results of the election.
Results of Election
Sec. 10. (a) If a majority of votes voting in each county
favor the proposition, the district is confirmed in that county,
except that the district does not include any territory of
authorities created under Chapters of 452 or 460 of the
Transportation Code. Counties not having a majority of votes will
not be confirmed as part of the district and will the district will
cease in those counties.
(b) For an election held on a region-wide basis, if there is
not a majority of votes in the region the district will cease.
(c) If the authority is confirmed, the interim board shall
record the results in its minutes and adopt an order:
(1) declaring that the creation of the district is
confirmed;
(2) stating the date of the election; and
(3) showing the number of votes cast for or against the
proposition in each county that passed a resolution or order
approving the service plan.
(d) On adoption of the order confirming the authority, the
interim board becomes the board of the district.
(e) Notice of the election results shall be sent to the
existing public transit authorities contiguous to the district.
Failure to Confirm District
Sec. 11. (a) If the district ceases, the interim board shall
record the results of the election in its minutes and adopt an order
declaring that the authority is dissolved.
(b) The county that passed a resolution approving the
service plan shall share the expenses of the election
proportionately based on the population of the areas in which the
election was conducted, regardless of election results.
(c) A district that has not been confirmed expires on the
third anniversary of the effective date of the resolution or order
initiating the process to create the district.
Powers and Duties of District
Sec. 12. (a) A district created under this article is a
public body and a political subdivision of the state exercising
public and essential governmental functions and has all the powers
necessary or convenient to carry out the purposes of this article.
A district, in the exercise of powers under this article, is
performing only governmental functions and is a governmental unit
within the meaning of Chapter 101, Civil Practice and Remedies
Code.
(b) A district may sue and be sued in all courts of competent
jurisdiction, may institute and prosecute suits without giving
security for costs, and may appeal from a judgment without giving
supersedeas or cost bond. An action at law or in equity against the
district must be brought in the county with the greatest percentage
of population to the total population of the district, except that
in eminent domain proceedings, suit must be brought in the county in
which the land is located.
(c) A district may acquire by grant, purchase, gift, devise,
lease, or otherwise and may hold, use, sell, lease, or dispose of
real and personal property, licenses, patents, rights, and
interests necessary, convenient, or useful for the full exercise of
any of its powers under this article.
(d) A district may acquire, construct, develop, own,
operate, and maintain intermodal and regional passenger rail
facilities inside the district. For these purposes and with the
consent of any local governmental entity, the district may use
streets, alleys, roads, highways, and other public ways of any
municipality, county, or other political subdivision and may
relocate, raise, reroute, change the grade of, or alter, at the
expense of the district, the construction of any street, alley,
highway, road, railroad, electric lines and facilities, telegraph
and telephone properties and facilities, pipelines and facilities,
conduits and facilities, and other properties, whether publicly or
privately owned, as necessary or useful in the construction,
reconstruction, repair, maintenance, and operation of the system.
A district may not use or alter a road or highway in the state
highway system without the permission of the Texas Transportation
Commission or a railroad without permission of the railroad. A
district may, at its discretion, acquire by purchase any interest
in real property for the acquisition, construction, or operation of
any commuter rail facility on terms and at a price as agreed to
between the district and the owner. The governing body of any
municipality, county, other political subdivision, or public
agency may make conveyance of title or rights and easements to any
property needed by the district to effect its purposes in
connection with the acquisition, construction, or operation of the
system.
(e) A district has the right of eminent domain to acquire
lands in fee simple and any interest less than fee simple in, on,
under, or above lands, including easements, rights-of-way, and
rights of use of airspace or subsurface space. The power of eminent
domain under this section does not apply, however, to land under the
jurisdiction of the department or a metropolitan transit authority
or a rail line owned by a common carrier or municipality. The
district shall, to the extent possible, use existing rail or
intermodal transportation corridors for the alignment of its
system. Proceedings for the exercise of the power of eminent domain
are begun by the adoption by the board of a resolution declaring the
public necessity for the acquisition by the district of the
property or interest described in the resolution and that the
acquisition is necessary and proper for the construction,
extension, improvement, or development of regional passenger rail
facilities and is in the public interest. The resolution of the
district is conclusive evidence of the public necessity of the
proposed acquisition and that the real or personal property or
interest in property is necessary for public use.
(f) A district may make agreements with any other public
utility, private utility, communication system, common carrier,
state agency, or transportation system for the joint use of
facilities, installations, or properties within or outside the
district and establish through routes, joint fares, and, subject to
approval of any tariff-regulating body having jurisdiction,
divisions of tariffs.
(g) A district may adopt rules to govern the operation of
the district, its employees, the system, service provided by the
district, and any other necessary matter concerning its purposes,
including rules regarding health, safety, alcohol or beverage
service, food service, and telephone and utility services, to
protect the health, safety, and general welfare of residents of the
district.
(h) A district may make joint ownership agreements with any
person.
(i) A district shall establish and maintain rates or other
compensation for the use of the facilities of the system acquired,
constructed, operated, regulated, or maintained by the district
that is reasonable and nondiscriminatory and, together with grants
received by the district, is sufficient to produce revenues
adequate:
(1) to pay all expenses necessary to the operation and
maintenance of the properties and facilities of the district;
(2) to pay the interest on and principal of all bonds
issued by the district under this article and payable in whole or in
part from the revenues, as they become due and payable; and
(3) to fulfill the terms of any agreements made with
the holders of bonds or with any person in their behalf.
(j) A district may make contracts, leases, and agreements
with, and accept grants and loans from, the United States of
America, its departments and agencies, the state, its agencies and
political subdivisions, and public or private corporations and
persons and may generally perform all acts necessary for the full
exercise of the powers vested in it. The district may contract for
any or all of its activities with existing regional transportation
authorities or coordinated county transportation authorities. A
district may acquire rolling stock or other property under
conditional sales contracts, leases, equipment trust certificates,
or any other form of contract or trust agreement. Any revenue bond
indenture may provide limitations on the exercise of the powers
granted by this section, and the limitations apply so long as any of
the revenue bonds issued pursuant to the indenture are outstanding
and unpaid.
(l) A district by resolution may adopt rules governing the
use, operation, and maintenance of the system and shall determine
all routings and change them when the board considers it advisable.
(k) A district may lease the district rail facilities any
part to, or contract for the use or operation of the district rail
facilities or any part by, any operator. A district shall encourage
to the maximum extent practicable the participation of private
enterprise in the operation of district rail facilities. The term
of an operating contract under this subsection may not exceed 20
years.
(l) A district may contract with any county or other
political subdivision of the state for the district to provide
passenger rail transportation services to any area outside the
boundaries of the district on such terms and conditions as the
parties agree to.
(m) A district may purchase an additional insured provision
to any liability insurance contract.
(n) Before beginning the operation of district rail
facilities, the board of a district shall adopt an annual operating
budget specifying the anticipated revenues and expenses of the
district for the remainder of the fiscal year, and the district
shall adopt an operating budget for each succeeding fiscal year.
The fiscal year of the district ends September 30 unless changed by
the board. The board shall hold a public hearing before adopting
each budget except the initial budget. Notice of each hearing must
be published at least seven days before the date of the hearing in a
newspaper of general circulation in each county in the district. A
budget may be amended at any time if notice of the proposed
amendment is given in the notice of meeting. An expenditure that is
not budgeted may not be made.
(o) A district is eligible to participate in the Texas
County and District Retirement System.
(p) The board of a district shall by resolution name one or
more banks for the deposit of district funds. District funds are
public funds and may be invested in securities permitted by Chapter
2256, Government Code. To the extent funds of the district are not
insured by the Federal Deposit Insurance Corporation or its
successor, they shall be collateralized in the manner provided for
county funds.
Bonds and Notes
Sec. 13. (a) A district may issue revenue bonds and notes
from time to time and in such amounts as its board considers
necessary or appropriate for the acquisition, purchase,
construction, reconstruction, repair, equipping, improvement, or
extension of its commuter rail facilities. All bonds and notes are
fully negotiable and may be made redeemable before maturity, at the
option of the issuing district and at prices and under terms and
conditions the issuing district determines in the resolution
authorizing the bonds or notes, and may be sold at public or private
sale, as the board determines.
(b) A district shall submit all bonds and notes authorized
to be issued and the records relating to their issuance to the
attorney general for examination before delivery. If the attorney
general determines that they have been issued in accordance with
the constitution and this article and that they will be binding
obligations of the district issuing them, the attorney general
shall approve them, and the comptroller shall register them. Bonds
and notes issued under this article are incontestable after
approval, registration, and sale and delivery of the bonds to the
purchaser.
(c) To secure the payment of the bonds or notes, the
district may encumber and pledge all or any part of the revenues of
its district rail facilities, may mortgage and encumber all or any
part of the properties of the commuter rail facilities and
everything pertaining to them acquired or to be acquired, and may
prescribe the terms and provisions of the bonds and notes in any
manner not inconsistent with this article. If not prohibited by the
resolution or indenture relating to outstanding bonds or notes, a
district may encumber separately any item of real estate or
personalty.
(d) All bonds and notes are legal and authorized investments
for banks, trust companies, savings and loan associations, and
insurance companies. The bonds and notes are eligible to secure the
deposit of public funds of the state, cities, towns, villages,
counties, school districts, or other political corporations or
subdivisions of the state. The bonds and notes are lawful and
sufficient security for the deposits to the extent of the principal
amount or market value of the bonds or notes, whichever is less.
Competitive Bids
Sec. 14. A contract in the amount of more than $15,000 for
the construction of improvements or the purchase of material,
machinery, equipment, supplies, or any other property except real
property may be let only on competitive bids after notice
published, at least 15 days before the date set for receiving bids,
in a newspaper of general circulation in the district. A board may
adopt rules governing the taking of bids and the awarding of
contracts. This section does not apply to:
(1) personal or professional services;
(2) the acquisition of existing rail transportation
systems;
(3) a contract with a common carrier to construct
lines and to operate passenger rail service on lines owned in whole
or in part by the carrier; or
(4) an agreement with a private entity.
Exclusive Development Agreements
Sec. 15. (a) In this section, "exclusive development
agreement" means an agreement with a private entity that at a
minimum provides for the design and construction of a district rail
facility or system. The agreement may also provide for the
financing, acquisition, maintenance, or operation of a district
rail facility or system.
(b) A board may enter into an exclusive development
agreement with a private entity.
(c) The board may adopt rules governing agreements under
this section.
Exemption From Taxes
Sec. 16. The property, material purchases, revenues, and
income of a district and the interest on bonds and notes issued by a
district are exempt from all taxes levied by the state or a
political subdivision of the state.
Financial Plan and Sources of Funds
Sec. 17 (a) The district shall develop a financial plan,
including proposed sources of funding as allowed by state law. No
tax can be levied before the affirmation of voters in the district
as called by the district.
Liability
Sec. 18. (a) The district is created for the purpose of
providing public transportation as defined by Section 452.001,
Transportation Code, and is a governmental unit as that term is
defined by the Texas Tort Claims Act (Chapter 101, Civil Practice
and Remedies Code), and all operations of the entity are essential
governmental functions and not proprietary functions for all
purposes, including the application of the Texas Tort Claims Act.
If an independent contractor of the entity is performing a function
of the entity or of a regional transportation authority operating
under Chapter 452, Transportation Code, the contractor is liable
for damages only to the extent that the entity or authority would be
liable if the entity or authority itself were performing the
function.
Severability Clause
Sec. 19. If any word, phrase, clause, paragraph, sentence,
part, or provision of this Act or the application thereof to any
person or circumstance shall be held to be invalid or
unconstitutional, the remainder of the Act shall nevertheless be
valid, and the legislature hereby declares that this Act would have
been enacted without such invalid or unconstitutional word, phrase,
clause, paragraph, sentence, part, or provision. It is provided,
however, that the provisions of Subsection (b) of Section 4 of this
Act are not severable in whole or in part.
Declaring an Emergency
Sec. 20. The importance of this legislation and the crowed
condition of the calendars in both houses create an emergency and an
imperative public necessity that the constitutional rule requiring
bills to be read on three several days in each house be suspended,
and this rule is hereby suspended, and that this Act take effect and
be in force from and after its passage, and it is so enacted.