81R14634 JD-F

By: McClendon H.B. No. 4335

A BILL TO BE ENTITLED

AN ACT

relating to the creation of and the powers of a comprehensive multimodal urban transportation authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 451, Transportation Code, is amended by adding Subchapter R to read as follows:

SUBCHAPTER R. URBAN TRANSPORTATION AUTHORITIES

Sec. 451.901. DEFINITIONS. (a) In this subchapter:

(1) "Advanced transportation district" means a district created or operating under Subchapter O.

(2) "Authority" means a rapid transit authority created or operating under this chapter.

(3) "Board" means the governing body of an urban transportation authority, except as otherwise provided by this subchapter.

(4) "Comprehensive advanced transportation" means the design, construction, extension, expansion, improvement, reconstruction, alteration, acquisition, financing, and maintenance of mass transit, light rail, commuter rail, intercity municipal rail, freight rail, fixed guideways, traffic management systems, bus ways, bus lanes, technologically advanced bus transit vehicles and systems, bus rapid transit vehicles and systems, passenger amenities, transit centers, stations, parking facilities and payment mechanisms, sidewalks, bicycle lanes, electronic transit-related information, fare collection and operating systems, high occupancy vehicle lanes, bridges, traffic signal prioritization and coordination systems, monitoring systems, tracks and rail line, switching and signaling equipment, operating equipment, depots, locomotives, rolling stock, maintenance facilities, other real and personal property associated with a rail operation and transit-oriented development, and other comprehensive advanced transportation facilities, equipment, operations, comprehensive transportation systems, and services, including planning, feasibility studies, operations, and professional and other services in connection with those facilities, equipment, operations, comprehensive transportation systems, and services.

(5) "Comprehensive mobility enhancement" means the design, construction, extension, expansion, improvement, reconstruction, alteration, acquisition, financing, and maintenance of:

(A) streets, roads, highways, high occupancy vehicle lanes, toll lanes, turnpike projects, pedestrian or bicycle facilities, bridges, grade separations, parking facilities and payment mechanisms, and infrastructure designed to improve mobility;

(B) traffic signal prioritization and street lighting;

(C) monitoring systems;

(D) other mobility enhancement facilities, equipment, systems, and services, including drainage improvements or drainage-related measures reasonable and necessary for the effective use of the transportation facility being constructed or maintained;

(E) an intermodal hub, air quality improvement initiative, and public utility facility; and

(F) a conveyance or acceptance of the exclusive rights to develop tolled infrastructure or other mobility-related assets, including concession fees.

(6) "Comprehensive transportation system" means a transportation project or a combination of transportation projects designated as a system by the board of an urban transportation authority.

(7) "Construction costs" means the costs of acquisition, construction, reconstruction, improvement, extension, or expansion of a transportation project under this subchapter. The term includes a construction cost as defined by Chapter 370.

(8) "Costs" means finance costs and construction costs.

(9) "Debt" means a bond, certificate, long-term or short-term note, commercial paper, loan, certificate of participation, agreement with a local government, or any other obligation with a variable or fixed interest rate authorized by this chapter or the constitution or another law of this state. The term includes a credit agreement issued under Chapter 1371, Government Code.

(10) "Finance costs" means any fee or expense associated with the financing of a transportation project, including any debt service requirement, capitalized interest, reserve fund requirement, professional or administrative cost, or other cost incurred by or relating to the issuance of debt under this subchapter relating to the design, construction, extension, expansion, improvement, reconstruction, alteration, financing, acquisition, or maintenance of a transportation project.

(11) "Regional mobility authority" means a regional mobility authority created or operating under Chapter 370.

(12) "Revenue" means revenue available to an urban transportation authority under this subchapter, including any source of taxes or revenue available under Chapter 370 or this chapter, including Subchapter O.

(13) "Transportation project" means a comprehensive advanced transportation project or a comprehensive mobility enhancement project.

(14) "Urban transportation authority" means an entity that has the powers of an authority, a regional mobility authority, and an advanced transportation district and is created under this subchapter.

(b) A word or phrase that is not defined in this subchapter but is defined in Subchapter O has the meaning in this subchapter that is assigned by that subchapter.

(c) A word or phrase that is not defined in this subchapter but is defined in Chapter 370 has the meaning in this subchapter that is assigned by that chapter.

Sec. 451.902. LIBERAL CONSTRUCTION. This subchapter shall be liberally construed to carry out its purposes. A provision of this subchapter that conflicts with Subchapter A or O or with Chapter 370 shall be construed to grant the broadest power.

Sec. 451.903. CREATION OF URBAN TRANSPORTATION AUTHORITY AUTHORIZED. (a) The governing body of an authority in which the principal municipality has a population of more than 700,000 and in the territory of which both an advanced transportation district and a regional mobility authority exist may approve and submit a petition to the governing bodies of the advanced transportation district and the regional mobility authority that seeks consent to the creation of an urban transportation authority under this subchapter.

(b) Creation of an urban transportation authority under this subchapter may occur if:

(1) the governing body of the principal municipality in the authority and the commissioners court of each county in which the authority is located and in which a sales and use tax is collected under this chapter consent to the creation of the urban transportation authority;

(2) the governing body of the regional mobility authority consents to the creation of the urban transportation authority;

(3) the commissioners court of each county in which the regional mobility authority is located consents to the creation of the urban transportation authority;

(4) the governing body of the advanced transportation district consents to the creation of the urban transportation authority; and

(5) the commissioners court of each county and the governing body of the principal municipality in which the advanced transportation district is located consent to the creation of the urban transportation authority.

(c) The petition of the authority and the consents described in Subsection (b) must:

(1) approve the transfer of the assets, liabilities, rights, and obligations of each entity to the urban transportation authority; or

(2) make adequate provision therefor by the applicable entity.

Sec. 451.904. EFFECT OF CREATION OF URBAN TRANSPORTATION AUTHORITY. (a) An urban transportation authority is created only after the occurrence of the actions required by Section 451.903. On the first day of the calendar month after the month in which the final action required by that section is taken, an urban transportation authority is considered to have been created. The urban transportation authority has the rights, powers, duties, and privileges granted to an authority under this chapter, to an urban transportation authority under this subchapter, to an advanced transportation district under Subchapter O, and to a regional mobility authority under Chapter 370, including the right to plan and develop transportation projects in any county in which the urban transportation authority is located.

(b) On the date the urban transportation authority is considered to have been created, the urban transportation authority becomes the successor entity to the authority, the advanced transportation district, and the regional mobility authority. On that date the authority, the advanced transportation district, and the regional mobility authority cease to exist.

(c) The urban transportation authority succeeds to and is obligated for all assets, liabilities, rights, and obligations not otherwise provided for of the authority, the advanced transportation district, and the regional mobility authority, on terms and conditions that, upon succession, are no less beneficial to employees than those extant immediately before the creation of the urban transportation authority, including continuation of all rights, privileges, and benefits such as pension rights and benefits, wages, and working conditions, afforded to employees under an existing agreement.

Sec. 451.905. POWERS. (a) An urban transportation authority has the powers necessary or convenient to implement this subchapter or to effect a purpose of this subchapter.

(b) An urban transportation authority through its board may plan, study, evaluate, design, finance, acquire, construct, maintain, repair, and operate a transportation project, individually or as one or more comprehensive transportation systems.

(c) An urban transportation authority has:

(1) all of the rights, powers, duties, and privileges granted to an authority by this chapter;

(2) all of the rights, powers, duties, and privileges granted to a regional mobility authority by Chapter 370; and

(3) all of the rights, powers, duties, and privileges granted to an advanced transportation district by Subchapter O.

(d) A right, power, duty, or privilege of an urban transportation authority described in Subsection (c) may be exercised independently or in combination to effect the purposes of this subchapter. Except as otherwise provided by this subchapter, in the event of a conflict, the most liberal provision applies.

(e) In the manner and to the extent that an authority is authorized by this chapter, an urban transportation authority may develop and operate a transit system, set fares and other charges, and develop stations or terminal complexes for the use of the transit system and related right-of-way.

(f) An urban transportation authority has any right, power, duty, or privilege granted by Chapter 370 to a regional mobility authority that relates to mass transit or a transit system and that is not in conflict with this subchapter.

(g) An urban transportation authority may impose any kind of tax or fee other than an ad valorem tax, including a sales and use tax. The applicable provisions of this chapter, including Subchapter O, and Chapter 370 apply to the imposition of a fee or tax by the urban transportation authority. If the legislature enacts provisions for local option transportation financing through a transportation finance authority or a centralized transportation finance entity, an urban transportation authority may serve as such an entity.

(h) An urban transportation authority may develop and operate a turnpike project. The turnpike project must be developed and operated under the provisions of Chapter 370, including any provision relating to the setting of toll rates.

(i) Unless otherwise provided by this subchapter, the board shall allocate the proceeds of the advanced transportation district sales and use tax in compliance with Subchapter O.

(j) Unless otherwise provided by this subchapter, an election relating to the sales and use tax or the boundaries of an advanced transportation district is governed by the provisions of Subchapter O relating to such an election of an advanced transportation district.

(k) An urban transportation authority may create a transportation corporation or local government corporation under Chapter 431.

(l) An urban transportation authority is a toll project entity and a local toll project entity to the same extent as a regional mobility authority under the provisions of this code.

(m) In its selection and prioritization of transportation projects, the board shall consider the geographic location of other transportation projects funded by this state or the United States so as to foster geographic equity in the planning and development of the projects.

Sec. 451.906. NATURE OF URBAN TRANSPORTATION AUTHORITY. (a) An urban transportation authority:

(1) is a body politic and corporate and a political subdivision of this state;

(2) has perpetual succession; and

(3) exercises public and essential governmental functions.

(b) The exercise of a right, power, or privilege granted by this subchapter is for a public purpose and is a matter of public necessity and is, in all respects, for the benefit of the people of the territory in which an urban transportation authority operates and of the people of this state, for the increase of their commerce and prosperity, and for the improvement of their health, living conditions, and public safety.

(c) An urban transportation authority is a governmental unit under Chapter 101, Civil Practice and Remedies Code. The operations of the metropolitan transit and mobility authority are not proprietary functions for any purpose.

(d) An urban transportation authority is:

(1) a public entity under Section 222.1045; and

(2) a governmental agency under Subchapter A, Chapter 271, Local Government Code.

(e) The property, revenue, and income of a metropolitan transit and mobility authority are exempt from state and local taxes.

Sec. 451.907. GOVERNANCE OF URBAN TRANSPORTATION AUTHORITY; INITIAL BOARD OF DIRECTORS. (a) An urban transportation authority is governed by a board of directors. The board consists of:

(1) five members appointed by the governing body of the principal municipality, with one member designated to represent the interests of the transportation disadvantaged;

(2) five members appointed by the commissioners courts of the county in which the urban transportation authority is located, or if the urban transportation authority is located in more than one county, jointly appointed by the commissioners courts of those counties;

(3) two members appointed by a panel composed of the mayors of the municipalities, other than the principal municipality, that are inside the boundaries of the authority and contribute sales and use tax revenue to the authority; and

(4) one member, who serves as presiding officer of the board, appointed by a majority of the members appointed under Subdivisions (1), (2), and (3).

(b) On the creation of the urban transportation authority, the initial board of the urban transportation authority shall be appointed from among the memberships of the governing body of the authority, the governing body of the advanced transportation district, and the governing body of the regional mobility authority, as extant immediately before the urban transportation authority was created.

(c) The board is responsible for the management, operation, and control of the urban transportation authority and the property of the urban transportation authority.

(d) A provision of this chapter that is applicable to the governing body of an authority and relates to vacancies, term limitations, residency requirements, compensation, surety bonds, nepotism, financial disclosure, indemnification, insurance, or removal, applies to the board.

(e) Board meetings and actions are governed by the provisions of this chapter that are applicable to the governing body of an authority. Those meetings and actions are not governed by Chapter 370.

(f) To be eligible to serve as a director, an individual:

(1) may be a representative of an entity that is also represented on a metropolitan planning organization in the region where the principal municipality is located; and

(2) may not be:

(A) an elected official;

(B) an officer or employee of the department;

(C) an employee of a county or a municipality, including the principal municipality, that contributes sales and use tax revenue to the urban transportation authority; or

(D) a person who owns an interest in real property that will be acquired for a transportation project, if it is known at the time of the person's proposed appointment that the property will be acquired for the transportation project.

Sec. 451.908. PUBLIC ACCESS. An urban transportation authority shall:

(1) make and implement policies that provide the public with a reasonable opportunity to appear before the board to speak on any issue under the jurisdiction of the urban transportation authority; and

(2) prepare and maintain a written plan that describes how an individual who does not speak English or who has a physical, mental, or developmental disability may be provided reasonable access to the urban transportation authority's programs.

Sec. 451.909. STRATEGIC PLANS AND ANNUAL REPORTS. (a) An urban transportation authority shall develop a strategic plan for its operations. Before December 31 of each even-numbered year, the urban transportation authority shall issue a plan that covers the succeeding five fiscal years of the urban transportation authority, beginning with the next odd-numbered fiscal year.

(b) Not later than March 31 of each year, an urban transportation authority shall file with each county in which the urban transportation authority is located, the principal municipality, and the panel composed of the mayors of the municipalities in the urban transportation authority that contribute sales and use tax revenue to the authority, a written report on the urban transportation authority's activities that includes a description of anticipated issuances of debt during the next fiscal year, a description of the financial condition of the urban transportation authority, schedules for the development of approved projects, and the status of the urban transportation authority's performance under the most recent strategic plan.

(c) Notwithstanding Subsection (b), a failure to identify a debt issuance or a change in a project development schedule in a written report does not prevent the issuance of the debt or the change in the project development schedule, including the commencement of the operation of a project.

Sec. 451.910. ESTABLISHMENT OF COMPREHENSIVE TRANSPORTATION SYSTEM. (a) If the board determines that the mobility needs of the county or counties in which the urban transportation authority operates and of the surrounding region could be most efficiently and economically met by jointly operating two or more transportation projects as one operational and financial enterprise, the board may create one or more comprehensive transportation systems composed of those transportation projects.

(b) The board may:

(1) create more than one comprehensive transportation system; and

(2) combine two or more comprehensive transportation systems into a single comprehensive transportation system.

(c) An urban transportation authority may finance, acquire, construct, cross-collateralize, and operate a comprehensive transportation system if the board determines that:

(1) the transportation projects could most efficiently and economically be acquired or constructed as part of the comprehensive transportation system; and

(2) the transportation projects will benefit the comprehensive transportation system.

Sec. 451.911. ISSUANCE OF DEBT. (a) An urban transportation authority, or an entity created by the urban transportation authority for the purposes of issuing debt, by resolution of the board or the governing body of the entity, as applicable, may authorize the issuance of debt payable solely from revenue.

(b) Debt, any portion of which is payable from taxes, may not be issued by an urban transportation authority unless the issuance is authorized by a majority of the votes cast at an election ordered and held for that purpose.

(c) Debt issued by an urban transportation authority is fully negotiable. An urban transportation authority may make the debt redeemable before maturity at the price and subject to the terms and conditions provided in the proceedings that authorized the issuance or in a related legal document.

(d) Debt issued by an urban transportation authority under this subchapter may be sold at a public or private sale as determined by the board to be most advantageous and may have a maturity of not longer than 50 years.

(e) Costs attributable to a transportation project that were incurred before the issuance of debt to finance the transportation project may be reimbursed from the proceeds of debt that is subsequently issued.

Sec. 451.912. TRANSPORTATION PROJECT FINANCING. (a) An urban transportation authority may exercise the powers of a regional mobility authority, an authority, and an advanced transportation district and may issue debt or enter into other agreements or financial arrangements to pay all or part of the costs of a transportation project or to refund any debt previously issued for a transportation project.

(b) The powers described in Subsection (a) are cumulative and may be exercised by an urban transportation authority independently or in combination to develop, finance, operate, and pay the costs of a transportation project. Subject to other provisions of this subchapter, the urban transportation authority may pledge any revenue available to the urban transportation authority under this subchapter, separately or in combination, for the payment of a debt, agreement, or financial arrangement described by Subsection (a).

(c) As authorized by Chapter 370 in connection with a regional mobility authority, the department may provide for or contribute to the payment of the costs of a financial or engineering and traffic feasibility study for a transportation project.

Sec. 451.913. SALES AND USE TAX. (a) When an authority that collects a sales and use tax becomes part of an urban transportation aurhority:

(1) the sales and use tax remains subject to the provisions of this chapter that relate to the sales and use tax of an authority; and

(2) any restriction, covenant, obligation, or pledge attributed to that sales and use tax remains in effect.

(b) When an advanced transportation district that collects a sales and use tax becomes part of an urban transportation authority:

(1) the sales and use tax remains subject to the provisions of Subchapter O that relate to the sales and use tax of an advanced transportation district; and

(2) any restriction, covenant, obligation, allocation, or pledge attributed to that sales and use tax remains in effect until the voters elect to increase, decrease, or otherwise alter the terms of the sales and use tax.

(c) The allocation of the proceeds of the sales and use tax adopted at the initial election of an advanced transportation district may not be altered unless a proposition for the reallocation is approved by a majority of the votes cast at an election ordered and held for that purpose under this subchapter.

(d) An urban transportation authority may order a subsequent advanced transportation district sales and use tax election to reallocate the proceeds of the tax or to increase or decrease the rate of the tax collected by the urban transportation authority. An election ordered under this section must be held for one or more transportation projects, the combined rate of all sales and use taxes imposed by the urban transportation authority and all other political subdivisions of this state may not exceed the statutory sales and use tax cap in any location in the urban transportation authority, and the proceeds of the sales and use tax under a subsequent election may be pledged only for:

(1) transportation project purposes as determined by the board, including debt service requirements, capitalized interest, reserve fund requirements, credit agreements, administrative costs, or other debt-related costs incurred by or relating to the issuance of obligations by the urban transportation authority relating to the purchase, design, construction, extension, expansion, improvement, reconstruction, alteration, financing, and maintenance of an advanced transportation facility, equipment, operations, a comprehensive transportation system, and services, including feasibility studies, operations, and professional or other services in connection with the facility, equipment, operations, system, or services;

(2) transportation project purposes in the territory of the urban transportation authority as determined by the governing bodies of each participating unit in proportion to the amount of sales and use tax proceeds that were collected in that participating unit; or

(3) as a local match for, or the local share of, a state or federal grant for transportation project purposes in the territory of the urban transportation authority or in connection with the transfer of money by the department or another entity of this state or the United States under an agreement with a county or municipality or a local government corporation created by a county or municipality under Chapter 431, for transportation project purposes in the territory of the urban transportation authority.

(e) At an election under this section, the ballot shall be prepared to permit voting for or against the proposition: "The imposition of a sales and use tax for comprehensive advanced transportation and comprehensive mobility enhancement in the (name of urban transportation authority), at the rate to be set by the governing body of the urban transportation authority."

(f) After a favorable subsequent election held under this subchapter, an allocation specified by Subchapter O ceases to be binding.

Sec. 451.914. USE OF FARE REVENUE. (a) All fare revenue generated by the mass transit operations of the urban transportation authority, other than fare revenue generated by a rail operation, must be dedicated exclusively to the support of mass transit operations.

(b) Fare revenue generated by a rail operation of the urban transportation authority may be used for any comprehensive advanced transportation or comprehensive mobility enhancement purpose.

Sec. 451.915. POWERS AND PROCEDURES OF URBAN TRANSPORTATION AUTHORITY IN ACQUIRING PROPERTY. An urban transportation authority has the same powers and may use the same procedures as a regional mobility authority operating under Chapter 370 in acquiring property.

Sec. 451.916. PUBLIC UTILITY FACILITIES. An urban transportation authority has the same powers and may use the same procedures as a regional mobility authority operating under Chapter 370 with regard to public utility facilities.

Sec. 451.917. TOLL COLLECTION AND VIOLATIONS. An urban transportation authority has the same powers and may use the same procedures as a regional mobility authority operating under Chapter 370 with regard to toll collections, transponders, enforcement, violations, and penalties.

Sec. 451.918. PROJECT DELIVERY. An urban transportation authority may procure, develop, finance, design, construct, maintain, or operate a transportation project using the rights, powers, duties, and privileges that are granted by Chapter 223, by Chapter 370 to a regional mobility authority, or by Subchapter H, Chapter 271, Local Government Code, including a right, power, duty, or privilege associated with:

(1) a construction manager agent;

(2) a construction manager-at-risk;

(3) use of design build;

(4) a pass-through agent; or

(5) a comprehensive development agreement.

Sec. 451.919. MUNICIPAL TRANSPORTATION REINVESTMENT ZONES. A municipality located in the territory served by an urban transportation authority may:

(1) designate a municipal transportation reinvestment zone under Section 222.106 to promote a transportation project under this subchapter; and

(2) use money deposited to the tax increment account for the reinvestment zone to pay the urban transportation authority for a portion of the costs of the transportation project.

SECTION 2. 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, 2009.