By: Brimer S.B. No. 1251
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. Subsection (a), Section 366.004, Transportation
Code, is amended to read as follows:
(a) The cost of acquisition, construction, improvement,
extension, or expansion of a turnpike project or system under this
chapter includes the cost of:
(1) the actual acquisition, construction,
improvement, extension, or expansion of the turnpike project or
system;
(2) the acquisition of real property, rights-of-way,
property rights, easements, and other interests in real property;
(3) machinery and equipment;
(4) interest payable before, during, and after
acquisition, construction, improvement, extension, or expansion as
provided in the bond proceedings;
(5) traffic estimates, revenue estimates, engineering
and legal services, plans, specifications, surveys, appraisals,
construction cost estimates, and other expenses necessary or
incidental to determining the feasibility of the construction,
improvement, extension, or expansion;
(6) necessary or incidental administrative, legal,
and other expenses;
(7) compliance with laws, regulations, and
administrative rulings;
(8) financing; [and]
(9) the assumption of debts, obligations, and
liabilities of an entity relating to a turnpike project or system
transferred to an authority by that entity; and
(10) expenses related to the initial operation of the
turnpike project or system.
SECTION 3. Section 366.033, Transportation Code, is amended
by adding Subsection (k) to read as follows:
(k) An authority, acting through its board, may agree with
another entity to acquire a turnpike project or system from that
entity, and to assume any debts, obligations, and liabilities of
the entity relating to a turnpike project or system transferred to
the authority.
SECTION 4. Subchapter B, Chapter 366, Transportation Code,
is amended by adding Section 366.036 to read as follows:
Sec. 366.036. TRANSFER OF TURNPIKE PROJECT OR SYSTEM.
(a) An authority may transfer any of its turnpike projects or
systems to one or more local governmental entities if:
(1) the authority has commitments from the governing
bodies of the local governmental entities to assume jurisdiction
over the transferred projects or systems;
(2) property and contract rights in the transferred
projects or systems and bonds issued for the projects or systems are
not affected unfavorably;
(3) the transfer is not prohibited under the bond
proceedings applicable to the transferred projects or systems;
(4) adequate provision has been made for the
assumption of all debts, obligations, and liabilities of the
authority relating to the transferred projects or systems by the
local governmental entities assuming jurisdiction over the
transferred projects or systems;
(5) the local governmental entities are authorized to
assume jurisdiction over the transferred projects or systems, and
to assume the debts, obligations, and liabilities of the authority
relating to the transferred projects or systems; and
(6) the transfer has been approved by the
commissioners court of each county that is part of the authority.
(b) An authority may transfer to one or more local
governmental entities any traffic estimates, revenue estimates,
plans, specifications, surveys, appraisals, and other work product
developed by the authority in determining the feasibility of the
construction, improvement, extension, or expansion of a turnpike
project or system, and the authority's rights and obligations under
any related agreements, if the requirements of Subsections (a)(1)
and (6) are met.
(c) A local governmental entity shall, using any lawfully
available funds, reimburse any expenditures made by an authority
from its feasibility study fund or otherwise to pay the costs of
work product transferred to the local governmental entity under
Subsection (b), and any other amounts expended under related
agreements transferred to the local governmental entity. The
reimbursement may be made over time, as determined by the local
governmental entity and the authority.
SECTION 5. Section 370.003, Transportation Code, is amended
by amending Subdivision (14) and adding Subdivisions (16) through
(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 6. Subsection (a), Section 370.004, Transportation
Code, is amended to read as follows:
(a) The cost of acquisition, construction, improvement,
extension, or expansion of a transportation project under this
chapter includes the cost of:
(1) the actual acquisition, construction,
improvement, extension, or expansion of the transportation
project;
(2) the acquisition of real property, rights-of-way,
property rights, easements, and other interests in real property;
(3) machinery and equipment;
(4) interest payable before, during, and for not more
than three years after acquisition, construction, improvement,
extension, or expansion as provided in the bond proceedings;
(5) traffic estimates, revenue estimates, engineering
and legal services, plans, specifications, surveys, appraisals,
construction cost estimates, and other expenses necessary or
incidental to determining the feasibility of the acquisition,
construction, improvement, extension, or expansion;
(6) necessary or incidental administrative, legal,
and other expenses;
(7) compliance with laws, regulations, and
administrative rulings, including any costs associated with
necessary environmental mitigation measures;
(8) financing; [and]
(9) the assumption of debts, obligations, and
liabilities of an entity relating to a transportation project
transferred to an authority by that entity; and
(10) expenses related to the initial operation of the
transportation project.
SECTION 7. Section 370.031, Transportation Code, is amended
by adding Subsection (c) to read as follows:
(c) A municipality that borders the United Mexican States
and has a population of 500,000 or more has the same authority as a
county to create and participate in an authority. A municipality
creating or participating in an authority has the same powers and
duties as a county participating in an authority, the governing
body of the municipality has the same powers and duties as the
commissioners court of a county participating in an authority, and
an elected member of the municipality's governing body has the same
powers and duties as a commissioner of a county that is
participating in an authority.
SECTION 8. Section 370.033, Transportation Code, is amended
by amending Subsection (m) and adding Subsections (o) and (p) to
read as follows:
(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) Except as provided in Subchapter J, an authority may not
provide mass transit services in the service area of another
transit provider that has taxing authority and has implemented it
anywhere in the service area unless the service is provided under a
written agreement with the transit provider or under Section
370.186.
(p) An authority, acting through its board, may agree with
another entity to acquire a transportation project or system from
that entity, and to assume any debts, obligations, and liabilities
of the entity relating to a transportation project or system
transferred to the authority.
SECTION 9. Subchapter B, Chapter 370, Transportation Code,
is amended by adding Section 370.039 to read as follows:
Sec. 370.039. TRANSFER OF TRANSPORTATION PROJECT OR SYSTEM.
(a) An authority may transfer any of its transportation projects
or systems to one or more governmental entities if:
(1) the authority has commitments from the governing
bodies of the governmental entities to assume jurisdiction over the
transferred projects or systems;
(2) property and contract rights in the transferred
projects or systems and bonds issued for the projects or systems are
not affected unfavorably;
(3) the transfer is not prohibited under the bond
proceedings applicable to the transferred projects or systems;
(4) adequate provision has been made for the
assumption of all debts, obligations, and liabilities of the
authority relating to the transferred projects or systems by the
governmental entities assuming jurisdiction over the transferred
projects or systems;
(5) the governmental entities are authorized to assume
jurisdiction over the transferred projects or systems, and to
assume the debts, obligations, and liabilities of the authority
relating to the transferred projects or systems; and
(6) the transfer has been approved by the
commissioners court of each county that is part of the authority.
(b) An authority may transfer to one or more governmental
entities any traffic estimates, revenue estimates, plans,
specifications, surveys, appraisals, and other work product
developed by the authority in determining the feasibility of the
construction, improvement, extension, or expansion of a
transportation project or system, and the authority's rights and
obligations under any related agreements, if the requirements of
Subsections (a)(1) and (6) are met.
(c) A governmental entity shall, using any lawfully
available funds, reimburse any expenditures made by an authority
from its feasibility study fund or otherwise to pay the costs of
work product transferred to the governmental entity under
Subsection (b), and any other amounts expended under related
agreements transferred to the governmental entity. The
reimbursement may be made over time, as determined by the
governmental entity and the authority.
SECTION 10. Section 370.186, Transportation Code, is
amended by amending Subsection (a) and adding Subsections (c) and
(d) to read as follows:
(a) Except as provided by Subsection (c), an [An] authority
may not construct, maintain, or operate a turnpike or toll project
in an area having a governmental entity established under Chapter
284 or 366 unless the governmental entity and the authority enter
into a written agreement specifying the terms and conditions under
which the project shall be undertaken. An authority may not
construct, maintain, or operate a transportation project that
another governmental entity has determined to be a project under
Chapter 451, 452, or 460 unless the governmental entity and the
authority enter into a written agreement specifying the terms and
conditions under which the project shall be undertaken.
(c) Subsection (a) does not apply to a turnpike or toll
project located in a county in which a regional tollway authority
has transferred under Section 366.036 or Section 366.172:
(1) all turnpike projects of the regional tollway
authority that are located in the county; and
(2) all work product developed by the regional tollway
authority in determining the feasibility of the construction,
improvement, extension, or expansion of a turnpike project to be
located in the county.
(d) An authority may not construct, maintain, or operate a
passenger rail facility within the boundaries of an intermunicipal
commuter rail district created under Article 6550c-1, Revised
Statutes, as those boundaries existed on September 1, 2005, unless
the district and the authority enter into a written agreement
specifying the terms and conditions under which the project will be
undertaken.
SECTION 11. 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) 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
nonpeak-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.
[Sections 370.356-370.360 reserved for expansion]
SUBCHAPTER J. ACQUIRING TRANSIT SYSTEMS
Sec. 370.361. TRANSFER OF TRANSIT SYSTEMS. (a) In this
section, "unit of election" means a political subdivision that
previously voted to join the service area of a transit provider.
(b) An authority may request in writing a transit provider
to transfer the provider's transit system and taxing authority 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.
(c) On receipt of a written request under Subsection (b),
the governing body of the transit provider may authorize the
authority to solicit public comment and conduct at least one public
hearing on the proposed transfer in each unit of election in the
transit provider's service area. Notice of a hearing must be
published in the Texas Register, one or more newspapers of general
circulation 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. The transit provider may participate fully with
the authority in conducting a public hearing.
(d) 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 dissolution of the
transit provider is approved in an election ordered under
Subsection (e). Before approving the acquisition, the board shall
consider public comments received under Subsection (c).
(e) After considering public comments received under
Subsection (c), the governing body of the transit provider may
order an election to dissolve the transit provider and transfer all
services, property, funds, assets, employees, debts, and
obligations to the authority. The governing body of the transit
provider shall submit to the qualified voters in the units of
election in the transit provider's service area a proposition that
reads substantially as follows: "Shall (name of transit provider)
be dissolved and its services, property, funds, assets, employees,
debts, and obligations be transferred to (name of regional mobility
authority)?"
(f) An election under Subsection (e) shall be conducted so
that votes are separately tabulated and canvassed in each
participating unit of election in the transit provider's service
area.
(g) The governing body of the transit provider shall canvass
the returns and declare the results of the election separately with
respect to each unit of election. If a majority of the votes
received in a unit of election are in favor of the proposition, the
proposition is approved in that unit of election. The transit
provider is dissolved and its services, property, funds, assets,
employees, debts, and obligations are transferred to the authority
only if the proposition is approved in every unit of election. If
the proposition is not approved in every unit of election, the
proposition does not pass and the transit provider is not
dissolved.
(h) A certified copy of the order or resolution recording
the results of the election shall be filed with the department, the
comptroller, and the governing body of each unit of election in the
transit provider's service area.
(i) The authority shall assume all debts or other
obligations of the transferred transit provider in connection with
the acquisition of property under Subsection (g). The authority
may not use revenue from sales and use tax collected under this
subchapter or other revenue of the transit system in a manner
inconsistent with any pledge of that revenue for the payment of any
outstanding bonds, unless provisions have been made for a full
discharge of the bonds.
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;
(2) one-half of one percent;
(3) three-quarters of one percent; or
(4) 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 12. Section 451.554, Transportation Code, is
amended to read as follows:
Sec. 451.554. BOARD APPROVAL OF ANNEXATION: EFFECTIVE
DATE. (a) The addition of territory annexed under Section
451.551, or approved under Section 451.552 or 451.553, does not
take effect if, before the effective date of the addition under
Subsection (b), the board of the authority gives written notice to
the governing body of the municipality that added new territory to
the authority by virtue of annexation, or to the governing body of
the municipality or the commissioners court of the county that held
the election, that the addition would create a financial hardship
on the authority because:
(1) the territory to be added is not contiguous to the
territory of the existing authority; or
(2) the addition of the territory would impair the
imposition of the sales and use tax authorized by this chapter.
(b) In the absence of a notice under Subsection (a), the
addition of territory takes effect on the 31st day after the date of
the:
(1) municipal ordinance, if annexed by a municipality
under Section 451.551; or
(2) election, if approved under Section 451.552 or
451.553 [takes effect on the 31st day after the date of the
election].
SECTION 13. Subsection (b), Section 370.161,
Transportation Code, is repealed.
SECTION 14. The changes in law made by this Act to Chapter
370, Transportation Code, apply to a regional mobility authority
created or participated in by a municipality described by
Subsection (c), Section 370.031, Transportation Code, as added by
this Act, or Subsection (b), Section 370.161, Transportation Code,
as it existed before the effective date of this Act, in the same
manner as they apply to any other entity that creates or
participates in a regional mobility authority.
SECTION 15. 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.