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AN ACT
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relating to the creation, administration, powers, duties, |
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operations, and financing of a commuter rail district; granting the |
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authority to issue bonds; granting the power of eminent domain. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 13, Title 112, Revised Statutes, is |
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amended by adding Article 6550c-3 to read as follows: |
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Art. 6550c-3. COMMUTER RAIL DISTRICTS |
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Sec. 1. DEFINITIONS. In this article: |
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(1) "Commission" means the Texas Transportation |
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Commission. |
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(2) "Commuter rail facility" means any property |
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necessary for the transportation of passengers and baggage between |
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points in a district. The term includes rolling stock, |
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locomotives, stations, parking areas, and rail lines. |
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(3) "Creating county" means a county described by |
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Section 2(b) of this article. |
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(4) "Department" means the Texas Department of |
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Transportation. |
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(5) "District" means a commuter rail district created |
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under this article. |
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(6) "District property" means all property the |
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district owns or leases under a long-term lease. |
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(7) "System" means all of the commuter rail and |
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intermodal facilities leased or owned by or operated on behalf of a |
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district. |
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Sec. 2. CREATION OF COMMUTER RAIL DISTRICT. (a) A commuter |
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rail district may be created to provide commuter rail service to |
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counties along the Texas-Mexico border. |
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(b) The commissioners court of a county may create a |
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commuter rail district on adoption of an order favoring the |
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creation. |
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Sec. 3. BOARD. (a) A district is governed by a board of |
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directors. The board is responsible for the management, operation, |
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and control of the district. |
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(b) The board is composed of five members. The county judge |
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appoints one member and each county commissioner appoints one |
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member. Each member serves a term of four years. The board may |
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provide for the staggering of the terms of its members. |
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(c) The members of the board shall elect one member as |
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presiding officer. The presiding officer may select another member |
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to preside in the absence of the presiding officer. |
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(d) The presiding officer shall call at least one meeting of |
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the board each year and may call other meetings as the presiding |
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officer determines are appropriate. |
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(e) A member of the board is not entitled to compensation |
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for serving as a member but is entitled to reimbursement for |
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reasonable expenses incurred while serving as a member. |
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(f) The board shall adopt rules for its proceedings and |
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appoint an executive committee. The board may employ and |
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compensate persons to carry out the powers and duties of the |
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district. |
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Sec. 4. POWERS AND DUTIES OF DISTRICT. (a) A district |
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created under this article is a public body and a political |
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subdivision of the state exercising public and essential |
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governmental functions and has all the powers necessary or |
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convenient to carry out the purposes of this article. A district, |
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in the exercise of powers under this article, is performing only |
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governmental functions and is a governmental unit within the |
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meaning of Chapter 101, Civil Practice and Remedies Code. |
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(b) A district may sue and be sued in all courts, may |
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institute and prosecute suits without giving security for costs, |
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and may appeal from a judgment without giving a supersedeas or cost |
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bond. An action at law or in equity against the district must be |
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brought in the county in which a principal office of the district is |
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located, except that in an eminent domain proceeding involving an |
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interest in land, suit must be brought in the county in which the |
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land is located. |
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(c) A district may acquire by grant, purchase, gift, devise, |
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lease, or otherwise and may hold, use, sell, lease, or dispose of |
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real and personal property, licenses, patents, rights, and |
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interests necessary, convenient, or useful for the full exercise of |
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its powers. |
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(d) A district may acquire, construct, develop, own, |
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operate, and maintain intermodal and commuter rail facilities to |
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connect political subdivisions in the district. For this purpose |
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and with the consent of a municipality, county, or other political |
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subdivision, the district may use streets, alleys, roads, highways, |
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and other public ways of the municipality, county, or other |
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political subdivision and may relocate, raise, reroute, change the |
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grade of, or alter, at the expense of the district, the construction |
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of any street, alley, highway, road, railroad, electric lines and |
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facilities, telegraph and telephone properties and facilities, |
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pipelines and facilities, conduits and facilities, and other |
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properties, whether publicly or privately owned, as necessary or |
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useful in the construction, reconstruction, repair, maintenance, |
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and operation of the system. A district may not use or alter a road |
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or highway that is part of the state highway system without the |
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permission of the commission or a railroad without permission of |
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the railroad. A district may acquire by purchase any interest in |
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real property for the acquisition, construction, or operation of a |
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commuter rail facility on terms and at a price as agreed to between |
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the district and the owner. The governing body of a municipality, |
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county, other political subdivision, or public agency may convey |
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title or rights and easements to any property needed by the district |
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to effect its purposes in connection with the acquisition, |
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construction, or operation of the system. |
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(e) A district has the right of eminent domain to acquire |
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real property in fee simple or an interest in real property less |
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than fee simple in, on, under, or above land, including an easement, |
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right-of-way, or right of use of airspace or subsurface space. The |
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power of eminent domain under this section does not apply to land |
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under the jurisdiction of the department or a rail line owned by a |
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common carrier or municipality. The district shall, to the extent |
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possible, use existing rail or intermodal transportation corridors |
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for the alignment of its system. A proceeding for the exercise of |
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the power of eminent domain is begun by the adoption by the board of |
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a resolution declaring the public necessity for the acquisition by |
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the district of the property or interest described in the |
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resolution and that the acquisition is necessary and proper for the |
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construction, extension, improvement, or development of commuter |
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rail facilities and is in the public interest. The resolution of |
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the district is conclusive evidence of the public necessity of the |
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proposed acquisition and that the real or personal property or |
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interest in property is necessary for public use. |
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(f) A district may make agreements with a public utility, |
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private utility, communication system, common carrier, state |
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agency, or transportation system for the joint use of facilities, |
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installations, or properties inside or outside the district and |
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establish through routes and joint fares. |
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(g) A district may adopt rules to govern the operation of |
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the district, its employees, the system, service provided by the |
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district, and any other necessary matter concerning its purposes, |
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including rules relating to health, safety, alcohol or beverage |
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service, food service, and telephone and utility services, to |
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protect the health, safety, and general welfare of residents of the |
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district and people who use the district's services. |
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(h) A district may enter into a joint ownership agreement |
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with any person. |
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(i) A district shall establish and maintain rates or other |
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compensation for the use of the facilities of the system acquired, |
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constructed, operated, regulated, or maintained by the district |
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that is reasonable and nondiscriminatory and, together with grants |
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received by the district, is sufficient to produce revenues |
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adequate: |
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(1) to pay all expenses necessary for the operation |
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and maintenance of the properties and facilities of the district; |
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(2) to pay the interest on and principal of bonds |
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issued by the district and payable in whole or in part from the |
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revenues, as they become due and payable; and |
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(3) to fulfill the terms of an agreement made with the |
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holders of bonds or with any person in their behalf. |
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(j) A district may make contracts, leases, and agreements |
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with, and accept grants and loans from, the United States of |
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America, its departments and agencies, this state, agencies and |
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political subdivisions of this state, and other persons and |
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entities and may perform any act necessary for the full exercise of |
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the powers vested in it. The commission may enter an interlocal |
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agreement with a district under which the district may exercise a |
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power or duty of the commission for the development and efficient |
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operation of an intermodal corridor in the district. A district may |
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acquire rolling stock or other property under conditional sales |
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contracts, leases, equipment trust certificates, or any other form |
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of contract or trust agreement. A revenue bond indenture may limit |
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the exercise of the powers granted by this section, and a limit |
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applies as long as the revenue bonds issued under the indenture are |
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outstanding and unpaid. |
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(k) A district by resolution may adopt rules governing the |
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use, operation, and maintenance of the system and may determine or |
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change a routing as the board considers advisable. |
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(l) A district may lease all or part of the commuter rail |
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facilities to, or contract for the use or operation of all or part |
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of the commuter rail facilities by, an operator. A district shall |
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encourage to the maximum extent practicable the participation of |
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private enterprise in the operation of commuter rail facilities. |
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The term of an operating contract under this subsection may not |
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exceed 20 years. |
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(m) A district may contract with a county or other political |
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subdivision of this state for the district to provide commuter rail |
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transportation services to an area outside the boundaries of the |
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district on such terms and conditions as the parties agree to. |
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(n) A district may purchase an additional insured provision |
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to any liability insurance contract. |
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(o) Before beginning the operation of commuter rail |
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facilities, the board shall adopt an annual operating budget |
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specifying the anticipated revenues and expenses of the district |
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for the remainder of the fiscal year. Each year the board shall |
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adopt an operating budget for the district. The fiscal year of the |
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district ends September 30 unless changed by the board. The board |
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shall hold a public hearing before adopting a budget other than the |
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initial budget. Notice of each hearing must be published at least |
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seven days before the date of the hearing in a newspaper of general |
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circulation in the district. A budget may be amended at any time if |
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notice of the proposed amendment is given in the notice of the |
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meeting at which the amendment will be considered. An expenditure |
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that is not budgeted may not be made. |
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(p) A district is eligible to participate in the Texas |
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County and District Retirement System. |
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(q) The board of a district shall by resolution name one or |
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more banks for the deposit of district funds. District funds are |
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public funds and may be invested in securities permitted by Chapter |
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2256, Government Code. To the extent funds of the district are not |
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insured by the Federal Deposit Insurance Corporation or its |
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successor, they shall be collateralized in the manner provided for |
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county funds. |
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Sec. 5. BONDS AND NOTES. (a) A district may issue revenue |
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bonds and notes in amounts as the board considers necessary or |
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appropriate for the acquisition, purchase, construction, |
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reconstruction, repair, equipping, improvement, or extension of |
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the district's commuter rail facilities. A bond or note is fully |
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negotiable and may be made redeemable before maturity, at the |
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option of the district and at the price and under the terms the |
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board determines in the resolution authorizing the bond or note and |
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may be sold at public or private sale, as the board determines. |
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(b) A district shall submit all bonds and notes and the |
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record of proceedings relating to their issuance to the attorney |
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general for examination before delivery. If the attorney general |
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determines that they have been issued in accordance with the |
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constitution and this article and that they will be binding |
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obligations of the district issuing them, the attorney general |
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shall approve them, and the comptroller shall register them. A bond |
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or note issued under this article is incontestable after approval, |
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registration, and sale and delivery of the bond or note to the |
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purchaser. |
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(c) To secure the payment of the bond or note, the district |
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may encumber and pledge all or any part of the revenues of its |
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commuter rail facilities, may mortgage and encumber all or part of |
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the property of the commuter rail facilities and everything |
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pertaining to them that is acquired or to be acquired, and may |
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prescribe the terms and provisions of the bond or note in any manner |
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not inconsistent with this article. If not prohibited by the |
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resolution or indenture relating to outstanding bonds or notes, a |
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district may encumber separately any item of real or personal |
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property. |
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(d) A bond or note is a legal and authorized investment for |
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banks, trust companies, savings and loan associations, and |
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insurance companies. The bond or note is eligible to secure the |
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deposit of public funds of this state or a municipality, county, |
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school district, or other political corporation or subdivision of |
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this state. The bond or note is lawful and sufficient security for |
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the deposits to the extent of the principal amount or market value |
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of the bond or note, whichever is less. |
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Sec. 6. COMPETITIVE BIDS. A contract in the amount of more |
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than $15,000 for the construction of improvements or the purchase |
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of material, machinery, equipment, supplies, or any other property |
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other than real property may be let only on competitive bids after |
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notice published, at least 15 days before the date set for receiving |
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bids, in a newspaper of general circulation in the district. The |
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board may adopt rules governing the taking of bids and the awarding |
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of contracts. This section does not apply to: |
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(1) personal or professional services; |
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(2) the acquisition of an existing rail transportation |
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system; or |
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(3) a contract with a common carrier to construct |
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lines or to operate commuter rail service on lines owned in whole or |
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in part by the carrier. |
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Sec. 7. EXEMPTION FROM TAXES. The property, material |
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purchases, revenues, and income of a district and the interest on a |
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bond or note issued by a district are exempt from all taxes imposed |
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by this state or a political subdivision of this state. |
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Sec. 8. TAXATION. (a) A district may impose any kind of tax |
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except an ad valorem property tax. |
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(b) A district may not impose a tax or increase the rate of |
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an existing tax unless a proposition proposing the imposition or |
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rate increase is approved by a majority of the votes received at an |
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election held for that purpose. |
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(c) Each new tax or rate increase must be expressed in a |
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separate proposition consisting of a brief statement of the nature |
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of the proposed tax. |
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(d) The notice of the election must contain a statement of |
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the base or rate of the proposed tax. |
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(e) The board, subject to Subsection (b) of this section, |
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may impose for an authority a sales and use tax at the rate of: |
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(1) one-quarter of one percent; |
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(2) one-half of one percent; |
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(3) three-quarters of one percent; or |
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(4) one percent. |
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(f) A district may not adopt a sales and use tax rate, |
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including a rate increase, that when combined with the rates of all |
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sales and use taxes imposed by other political subdivisions of the |
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state having territory in the district exceeds two percent in any |
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location in the district. |
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(g) The adoption of a district's sales and use tax takes |
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effect on the first day of the second calendar quarter beginning |
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after the election approving the tax. |
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Sec. 9. CERTAIN MUNICIPALITIES. A municipality located |
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within the district that wishes to be served by district commuter |
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rail facilities must pay for construction of a commuter rail |
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station. |
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SECTION 2. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2510 was passed by the House on May 8, |
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2007, by the following vote: Yeas 146, Nays 0, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2510 was passed by the Senate on May |
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25, 2007, by the following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |