85R6441 MTB-D
 
  By: Martinez H.B. No. 1986
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of regional transit authorities; granting
  the power of eminent domain; providing authority to issue bonds and
  charge fees; creating a criminal offense.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle K, Title 6, Transportation Code, is
  amended by adding Chapter 463 to read as follows:
  CHAPTER 463. REGIONAL TRANSIT AUTHORITIES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 463.001.  DEFINITIONS. In this chapter:
               (1)  "Authority" means a regional transit authority
  created under this chapter.
               (2)  "Complementary transportation services" includes:
                     (A)  special transportation services for a person
  who is elderly or has a disability;
                     (B)  medical transportation services;
                     (C)  assistance in street modifications as
  necessary to accommodate the public transportation system;
                     (D)  construction of new general aviation
  facilities or renovation or purchase of existing facilities not
  served by certificated air carriers to relieve air traffic
  congestion at existing facilities; and
                     (E)  any other service that complements the public
  transportation system, including providing parking garages.
               (3)  "Executive committee" means the authority
  directors who serve as the governing body of the authority.
               (4)  "Mass transit system" means a system constructed
  by an authority for 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.  The term includes a rail system and services
  coordinated with a transit system operated by a municipality.
               (5)  "Public transportation system" means:
                     (A)  all property owned or held by an authority
  for public transportation service purposes;
                     (B)  real property, facilities, and equipment for
  the protection and environmental enhancement of all the facilities;
  and
                     (C)  property held:
                           (i)  in accordance with a contract with the
  owner making the property subject to the control of or regulation by
  the authority; and
                           (ii)  for public transportation service
  purposes.
               (6)  "Regional high capacity transit" means intercity
  transit service designed to transport more people than typical,
  local fixed-route bus service by using dedicated lanes or
  rights-of-way or by having transit priority, including queue jumps
  or traffic signal priority. The term includes bus rapid transit,
  light rail, commuter rail, streetcars, high occupancy toll lanes,
  or other fixed guideway operations.
               (7)  "Service plan" means an outline of the service
  that would be provided by the authority to counties if confirmed at
  an election.
         Sec. 463.002.  APPLICATION. This chapter applies to:
               (1)  a county that is contiguous to the Gulf of Mexico
  or a bay or inlet opening into the gulf and that borders the United
  Mexican States; and
               (2)  a county that borders a county described by
  Subdivision (1).
         Sec. 463.003.  MUNICIPALITIES MAY PROVIDE TRANSPORTATION
  SERVICES. This chapter does not prohibit a municipality from
  providing public transportation services.  An authority may
  coordinate the provision of services with the municipality and
  include the services provided by the municipality in the
  authority's service plan.
  SUBCHAPTER B. POWERS OF AUTHORITIES
         Sec. 463.051.  POWERS APPLICABLE TO CONFIRMED AUTHORITY.
  This subchapter applies only to an authority that has been
  confirmed.
         Sec. 463.052.  NATURE OF AUTHORITY. (a) An authority:
               (1)  is a public political entity and corporate body;
               (2)  has perpetual succession; and
               (3)  exercises public and essential governmental
  functions.
         (b)  The exercise of a power granted by this chapter,
  including a power relating to a station or terminal complex, is for
  a public purpose and is a matter of public necessity.
         (c)  An authority is a governmental unit under Chapter 101,
  Civil Practice and Remedies Code, and the operations of the
  authority are not proprietary functions for any purpose including
  the application of Chapter 101, Civil Practice and Remedies Code.
         Sec. 463.053.  RESPONSIBILITY FOR CONTROL OF AUTHORITY.
  Except as provided by Section 463.104, the executive committee is
  responsible for the management, operation, and control of an
  authority and its property.
         Sec. 463.054.  GENERAL POWERS OF AUTHORITY. (a) An
  authority has any power necessary or convenient to carry out this
  chapter or to effect a purpose of this chapter.
         (b)  An authority may sue and be sued. An authority may not
  be required to give security for costs in a suit brought or
  prosecuted by the authority and may not be required to give a
  supersedeas or cost bond in an appeal of a judgment.
         (c)  An authority may hold, use, sell, lease, dispose of, and
  acquire, by any means, property and licenses, patents, rights, and
  other interests necessary, convenient, or useful to the exercise of
  any power under this chapter.
         (d)  An authority may sell, lease, or dispose of in another
  manner:
               (1)  any right, interest, or property of the authority
  that is not needed for, or, if a lease, is inconsistent with, the
  efficient operation and maintenance of the public transportation
  system; or
               (2)  at any time, surplus materials or other property
  that is not needed for the requirements of the authority or for
  carrying out a power under this chapter.
         (e)  An authority may leverage funds with a municipality that
  provides public transportation services in the territory of the
  authority to finance a project.
         Sec. 463.055.  CONTRACTS; GRANTS AND LOANS. (a) An
  authority may contract with any person.
         (b)  An authority may accept a grant or loan from any person.
         (c)  An authority may enter one or more agreements with any
  municipality included in the territory of the authority for the
  distribution of the authority's revenues.
         (d)  An authority may enter into a contract with a private
  entity under Chapter 2267, Government Code.
         Sec. 463.056.  OPERATION OF PUBLIC TRANSPORTATION SYSTEM.
  (a) An authority may:
               (1)  acquire, construct, develop, plan, own, operate,
  and maintain a public transportation system in the territory of the
  authority, including the territory of a political subdivision;
               (2)  contract with a municipality, county, or other
  political subdivision for the authority to provide public
  transportation services outside the authority; and
               (3)  lease all or a part of the public transportation
  system to, or contract for the operation of all or a part of the
  public transportation system by, an operator.
         (b)  An authority, as the authority determines advisable,
  shall determine routes.
         (c)  The executive committee may submit a referendum for the
  approval of a power granted by Subsection (a) or (b).
         (d)  A private operator who contracts with an authority under
  this chapter is not a public entity for purposes of any law of this
  state except that an independent contractor of the authority that
  performs a function of the authority is liable for damages only to
  the extent that the authority would be liable if the authority
  itself were performing the function.
         Sec. 463.057.  ACQUISITION OF PROPERTY BY AGREEMENT. An
  authority may acquire rolling stock or other property under a
  contract or trust agreement, including a conditional sales
  contract, lease, and equipment trust certificate.
         Sec. 463.058.  USE AND ACQUISITION OF PROPERTY OF OTHERS.
  (a) For a purpose described by Section 463.056(a)(1) and as
  necessary or useful in the construction, repair, maintenance, or
  operation of the public transportation system, an authority may:
               (1)  use a public way, including an alley; and
               (2)  directly, or indirectly by another person,
  relocate or reroute the property of another person or alter the
  construction of the property of another person.
         (b)  For an act authorized by Subsection (a)(2), an authority
  may contract with the owner of the property to allow the owner to
  make the relocation, rerouting, or alteration by the owner's own
  means or through a contractor of the owner. The contract may
  provide for reimbursement of the owner for costs or payment to the
  contractor.
         (c)  Except as otherwise provided by this subsection, an
  authority may acquire by eminent domain any interest in real
  property, including a fee simple interest. The right of eminent
  domain may not be exercised in a manner that would authorize the
  authority to run an authority vehicle on a railroad track that is
  used to transport property.
         (d)  If an authority, through the exercise of a power under
  this chapter, makes necessary the relocation or rerouting of, or
  alteration of the construction of, a road, alley, overpass,
  underpass, railroad track, bridge, or associated property, an
  electric, telegraph, telephone, or television cable line, conduit,
  or associated property, or a water, sewer, gas, or other pipeline,
  or associated property, the relocation or rerouting or alteration
  of the construction must be accomplished at the sole cost and
  expense of the authority, and damages that are incurred by an owner
  of the property must be paid by the authority.
         (e)  An authority may not begin an activity authorized under
  Subsection (a) to alter or damage property of others, including
  this state or a political subdivision of this state, without having
  first received the written permission of the owner.
         (f)  Subsection (e) does not apply if the power of eminent
  domain is exercised.
         Sec. 463.059.  EMINENT DOMAIN PROCEEDINGS. (a) An eminent
  domain proceeding by an authority is initiated by the adoption by
  the executive committee of a resolution, after notice and a
  hearing, that:
               (1)  describes the property interest to be acquired by
  the authority;
               (2)  declares the public necessity for and interest in
  the acquisition; and
               (3)  states that the acquisition is necessary and
  proper for the construction, extension, improvement, or
  development of the public transportation system.
         (b)  A resolution adopted under this section is conclusive
  evidence of the public necessity for the acquisition described in
  the resolution and that the property interest is necessary for
  public use.
         (c)  Except as otherwise provided by this chapter, Chapter
  21, Property Code, applies to an eminent domain proceeding by an
  authority.
         Sec. 463.060.  AGREEMENT WITH UTILITIES; CARRIERS. An
  authority may agree with any other public or private utility,
  communication system, common carrier, or transportation system
  for:
               (1)  the joint use in the authority of the property of
  the agreeing entities; or
               (2)  the establishment of through routes, joint fares,
  or transfers of passengers.
         Sec. 463.061.  FARES AND OTHER CHARGES. (a) An authority
  shall impose reasonable and nondiscriminatory fares, tolls,
  charges, rents, and other compensation for the use of the public
  transportation system sufficient to produce revenue, together with
  grants received by the authority, in an amount adequate to:
               (1)  pay all expenses necessary to operate and maintain
  the public transportation system;
               (2)  pay when due the principal of and interest on, and
  sinking fund and reserve fund payments agreed to be made with
  respect to, all bonds that are issued by the authority and payable
  wholly or partly from the revenue; and
               (3)  fulfill the terms of any other agreement with the
  holders of bonds described by Subdivision (2) or with a person
  acting on behalf of the bondholders.
         (b)  It is intended by this chapter that the compensation
  imposed under Subsection (a) not exceed the amounts necessary to
  produce revenue sufficient to meet the obligations of the authority
  under this chapter.
         (c)  Compensation for the use of the public transportation
  system may be set according to a zone system or to another
  classification that the authority determines to be reasonable.
         (d)  The state agrees with holders of bonds issued under this
  chapter not to alter the power given to an authority under this
  section to impose fares, tolls, charges, rents, and other
  compensation in amounts sufficient to comply with Subsection (a),
  or to impair the rights and remedies of an authority bondholder, or
  a person acting on behalf of a bondholder, until the bonds, interest
  on the bonds, interest on unpaid installments of interest, costs
  and expenses in connection with an action or proceeding by or on
  behalf of a bondholder, and other obligations of the authority in
  connection with the bonds are discharged.
         Sec. 463.062.  ENFORCEMENT OF FARES AND OTHER CHARGES;
  PENALTIES. (a) An executive committee by resolution may prohibit
  the use of the public transportation system by a person without
  payment of the appropriate fare for the use of the system and may
  establish reasonable and appropriate methods to ensure that persons
  using the public transportation system pay the appropriate fare for
  that use.
         (b)  An executive committee by resolution may provide that a
  fare for or charge for the use of the public transportation system
  that is not paid incurs a reasonable administrative fee.
         (c)  An authority shall post signs designating each area in
  which a person is prohibited from using the transportation system
  without payment of the appropriate fare.
         (d)  A person commits an offense if the person or another for
  whom the person is criminally responsible under Section 7.02, Penal
  Code, uses the public transportation system without paying the
  appropriate fare.
         (e)  If the person fails to provide proof that the person
  paid the appropriate fare for the use of the public transportation
  system and fails to pay any administrative fee assessed under
  Subsection (b) 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 and the administrative fee, it is prima facie
  evidence that the person used the public transportation system
  without paying the appropriate fare.
         (f)  The notice required by Subsection (e) may be included in
  a citation issued to the person by a peace officer under Article
  14.06, Code of Criminal Procedure, or by a fare enforcement officer
  under Section 463.063, in connection with an offense relating to
  the nonpayment of the appropriate fare for the use of the public
  transportation system.
         (g)  It is an exception to the application of Subsection (d)
  that on or before the 30th day after the date the authority notified
  the person that the person is required to pay the amount of the fare
  and any administrative fee assessed under Subsection (b), the
  person:
               (1)  provided proof that the person paid the
  appropriate fare at the time the person used the transportation
  system or at a later date or that the person was exempt from
  payment; and
               (2)  paid the administrative fee assessed under
  Subsection (b), if applicable.
         (h)  An offense under Subsection (d) is:
               (1)  a misdemeanor punishable by a fine not to exceed
  $100; and
               (2)  not a crime of moral turpitude.
         (i)  A justice court located in the territory of the
  authority may enter into an agreement with the authority to try all
  criminal cases that arise under Subsection (d). Notwithstanding
  Articles 4.12 and 4.14, Code of Criminal Procedure, if a justice
  court enters into an agreement with the authority:
               (1)  a criminal case that arises under Subsection (d)
  must be tried in the justice court; and
               (2)  the justice court has exclusive jurisdiction in
  all criminal cases that arise under Subsection (d).
         Sec. 463.063.  FARE ENFORCEMENT OFFICERS. (a) An authority
  may employ or contract for persons to serve as fare enforcement
  officers to enforce the payment of fares for use of the public
  transportation system by:
               (1)  requesting and inspecting evidence showing
  payment of the appropriate fare from a person using the public
  transportation system; and
               (2)  issuing a citation to a person described by
  Section 463.062(d).
         (b)  Before commencing duties as a fare enforcement officer,
  a person must complete at least eight hours of training approved by
  the authority that is appropriate to the duties required of a fare
  enforcement officer.
         (c)  While performing duties, a fare enforcement officer
  shall:
               (1)  wear a distinctive uniform, badge, or insignia
  that identifies the person as a fare enforcement officer; and
               (2)  work under the direction of the authority's chief
  administrative officer.
         (d)  A fare enforcement officer may:
               (1)  request evidence showing payment of the
  appropriate fare from passengers of the public transportation
  system or evidence showing exemption from the payment requirement;
               (2)  request personal identification or other
  documentation designated by the authority from a passenger who does
  not produce evidence showing payment of the appropriate fare on
  request by the officer;
               (3)  instruct a passenger to immediately leave the
  public transportation system if the passenger does not possess
  evidence showing payment or exemption from payment of the
  appropriate fare; or
               (4)  file a complaint in the appropriate court that
  charges the person with an offense under Section 463.062(d).
         (e)  A fare enforcement officer may not carry a weapon while
  performing duties under this section unless the officer is a
  certified peace officer.
         (f)  A fare enforcement officer who is not a certified peace
  officer is not a peace officer and has no authority to enforce a
  criminal law, except as provided by this section.
         Sec. 463.064.  ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANE
  USAGE. (a) An executive committee by resolution may regulate or
  prohibit improper entrance into, exit from, and vehicle occupancy
  in high occupancy vehicle lanes operated, managed, or maintained by
  the authority.
         (b)  An executive committee by resolution may establish
  reasonable and appropriate methods to enforce regulations or
  prohibitions established under Subsection (a).
         Sec. 463.065.  INSURANCE. (a) An authority may insure,
  through purchased insurance policies or self-insurance programs,
  or both, the legal liability of the authority and of its contractors
  and subcontractors arising from the acquisition, construction, or
  operation of the programs and facilities of the authority for:
               (1)  personal or property damage; and
               (2)  officers' and employees' liability.
         (b)  An authority may use contracts, rating plans, and risk
  management programs designed to encourage accident prevention.
         (c)  In developing an insurance or self-insurance program,
  an authority may consider the peculiar hazards, indemnity
  standards, and past and prospective loss and expense experience of
  the authority and of its contractors and subcontractors.
         Sec. 463.066.  TAX EXEMPTION. The property, revenue, and
  income of an authority are exempt from state and local taxes.
         Sec. 463.067.  MASS TRANSIT SYSTEM: REGULATORY EXEMPTION.
  (a) An authority that constructs or operates or contracts with
  another entity to construct or operate a rail mass transit system is
  not subject to any state law regulating or governing the design,
  construction, or operation of a railroad, railway, street railway,
  streetcar, or interurban railway.
         (b)  For purposes of ownership or transfer of ownership of an
  interest in real property, a rail mass transit system line
  operating on property previously used by a railroad, railway,
  street railway, or interurban railway is a continuation of existing
  rail use.
         Sec. 463.068.  ELECTIONS. (a) In an election ordered by the
  executive committee:
               (1)  the executive committee shall give notice of the
  election by publication in a newspaper of general circulation in
  the authority at least once each week for three consecutive weeks,
  with the first publication occurring at least 21 days before the
  date of election; and
               (2)  a resolution ordering the election and the
  election notice must show, in addition to the requirements of the
  Election Code, the hours of the election and polling places in
  election precincts.
         (b)  Subsection (a) does not apply to an election under
  Section 463.309.
         (c)  A copy of the notice of each election held under this
  chapter shall be furnished to the Texas Transportation Commission
  and the comptroller.
         Sec. 463.069.  ADDITIONAL FEE.  (a)  In addition to a toll or
  other charge imposed under Section 367.011 or other law, an entity
  that operates an international bridge may impose a fee for the use
  of the bridge as follows:
               (1)  $1 for passenger vehicles;
               (2)  $2 for commercial motor vehicles; and
               (3)  25 cents for pedestrians.
         (b)  Before a fee may be imposed under this section, the
  entity must enter into a written agreement with an authority
  relating to the imposition and disposition of the fee. The
  agreement must provide for collection of the fee by the entity and
  remittance of the authority's portion of the fee to the authority
  each month.
         (c)  Of the fees collected under this section:
               (1)  25 percent shall be retained by the entity for
  transportation projects or complementary transportation services;
               (2)  50 percent shall be used for a rail mass transit
  system; and
               (3)  25 percent shall be used for regional high
  capacity transit.
         (d)  The percentage described by Subsection (c)(3) may be
  retained by the entity if:
               (1)  the entity is a mass transit provider; and
               (2)  mass transit was provided in the municipality in
  which the international bridge is located on or before January 1,
  2017.
  SUBCHAPTER C. MANAGEMENT OF AUTHORITY
         Sec. 463.101.  POWERS AND AUTHORITY OF EXECUTIVE COMMITTEE.
  (a) The executive committee may:
               (1)  employ and prescribe the compensation for a chief
  executive officer whom the committee may designate as the general
  manager or the executive director;
               (2)  appoint auditors and attorneys and prescribe their
  duties, compensation, and tenure;
               (3)  adopt a seal for the authority;
               (4)  set the fiscal year for the authority;
               (5)  establish a complete system of accounts for the
  authority;
               (6)  designate by resolution an authorized
  representative of the authority to, according to terms prescribed
  by the executive committee:
                     (A)  invest authority funds; and
                     (B)  withdraw money from authority accounts for
  investments; and
               (7)  designate by resolution an authorized
  representative of the authority to supervise the substitution of
  securities pledged to secure authority funds.
         (b)  The executive committee is the local designated
  recipient of funds committed to the authority by the federal
  government.
         Sec. 463.102.  INVESTMENTS. The executive committee shall
  invest authority funds in any investment authorized for an entity
  under Chapter 2256, Government Code.
         Sec. 463.103.  DEPOSITORY; DEPOSIT OF FUNDS. (a) The
  executive committee shall designate one or more banks as
  depositories for authority funds.
         (b)  All funds of an authority that are not otherwise
  invested shall be deposited in one or more of the authority's
  depository banks unless otherwise required by an order or
  resolution authorizing the issuance of an authority bond or note or
  other contractual undertaking.
         (c)  Funds in a depository, to the extent that those funds
  are not insured by the Federal Deposit Insurance Corporation, shall
  be secured in the manner provided by law for the security of county
  funds.
         Sec. 463.104.  CHIEF EXECUTIVE: DUTIES. (a) The general
  manager or executive director shall administer the daily operation
  of an authority.
         (b)  In conformity with the policy of the executive
  committee, the general manager or executive director may:
               (1)  employ persons to conduct the affairs of the
  authority, including any operating or management company; and
               (2)  remove any employee.
         (c)  The general manager or executive director shall
  prescribe the duties, tenure, and compensation of each person
  employed.
         Sec. 463.105.  RULES. (a) The executive committee by
  resolution may adopt rules for the:
               (1)  safe and efficient operation and maintenance of
  the public transportation system;
               (2)  use of the public transportation system and the
  authority's services by the public and the payment of fares, tolls,
  and other charges; and
               (3)  regulation of privileges on property owned,
  leased, or otherwise controlled by the authority.
         (b)  The authority shall encourage to the maximum extent
  feasible the participation of private enterprise.
         (c)  A notice of each rule adopted by the executive committee
  shall be published in a newspaper with general circulation in the
  area in which the authority is located once each week for two
  consecutive weeks after adoption of the rule. The notice must
  contain a condensed statement of the substance of the rule and must
  advise that a copy of the complete text of the rule is filed in the
  principal office of the authority where the text may be read by any
  person.
         (d)  A rule becomes effective 10 days after the date of the
  second publication of the notice under this section.
         Sec. 463.106.  PURCHASES: COMPETITIVE BIDDING. (a) Except
  as provided by Subsection (c) and as otherwise provided by this
  chapter, an authority may not award a contract for construction,
  services, or property, other than real property, except through the
  solicitation of competitive sealed bids or proposals ensuring full
  and open competition.
         (b)  The authority shall describe in a solicitation each
  factor to be used to evaluate a bid or proposal and give the
  factor's relative importance.
         (c)  The executive committee may authorize the negotiation
  of a contract without competitive sealed bids or proposals if:
               (1)  the aggregate amount involved in the contract is
  less than the greater of:
                     (A)  $50,000; or
                     (B)  the amount of an expenditure under a contract
  that would require a municipality to comply with Section
  252.021(a), Local Government Code;
               (2)  the contract is for construction for which not
  more than one bid or proposal is received;
               (3)  the contract is for services or property for which
  there is only one source or for which it is otherwise impracticable
  to obtain competition;
               (4)  the contract is to respond to an emergency for
  which the public exigency does not permit the delay incident to the
  competitive process;
               (5)  the contract is for personal or professional
  services or services for which competitive bidding is precluded by
  law;
               (6)  the contract, without regard to form and which may
  include bonds, notes, loan agreements, or other obligations, is for
  the purpose of borrowing money or is a part of a transaction
  relating to the borrowing of money, including:
                     (A)  a credit support agreement, such as a line or
  letter of credit or other debt guaranty;
                     (B)  a bond, note, debt sale or purchase, trustee,
  paying agent, remarketing agent, indexing agent, or similar
  agreement;
                     (C)  an agreement with a securities dealer,
  broker, or underwriter; and
                     (D)  any other contract or agreement considered by
  the executive committee to be appropriate or necessary in support
  of the authority's financing activities;
               (7)  the contract is for work that is performed and paid
  for by the day as the work progresses;
               (8)  the contract is for the lease or purchase of an
  interest in land;
               (9)  the contract is for the purchase of personal
  property sold:
                     (A)  at an auction by a state licensed auctioneer;
                     (B)  at a going out of business sale held in
  compliance with Subchapter F, Chapter 17, Business & Commerce Code;
  or
                     (C)  by a political subdivision of this state, a
  state agency, or an entity of the federal government;
               (10)  the contract is for services performed by persons
  who are blind or have severe disabilities;
               (11)  the contract is for the purchase of electricity;
               (12)  the contract is one for an authority project and
  awarded for alternate project delivery using the procedures under
  Subchapters E, F, G, and I, Chapter 2269, Government Code; or
               (13)  the contract is for fare enforcement officer
  services under Section 463.063.
         (d)  For the purposes of entering into a contract authorized
  by Subsection (c)(12), an authority is considered a "governmental
  entity" as described by Section 2269.002, Government Code.
         Sec. 463.107.  DURATION OF CONTRACTS. An authority may
  contract for payment with debt obligations and for performance and
  payments to extend longer than one fiscal year if the contract
  provides for the discharge of the authority's contractual
  obligations by any method, including:
               (1)  committing current year funds or cancellation
  charges; and
               (2)  making the contract subject to the future
  availability of funds.
         Sec. 463.108.  SECURITY. The executive committee may
  establish a security force and provide for the employment of
  security personnel.
         Sec. 463.109.  BUDGET RECOMMENDATIONS. The executive
  committee shall make a proposed annual budget available to the
  commissioners courts of the counties in the authority at least 30
  days before the date of the adoption by the executive committee of
  the final annual budget.
         Sec. 463.110.  FINANCIAL AUDITS. (a) The executive
  committee of an authority shall have an annual audit of the affairs
  of the authority prepared by an independent certified public
  accountant or a firm of independent certified public accountants.
         (b)  The final audit report is open to public inspection.
  SUBCHAPTER D. STATION OR TERMINAL COMPLEX SYSTEMS
         Sec. 463.151.  STATION OR TERMINAL COMPLEX: SYSTEM PLAN.
  (a) An authority may not acquire an interest in real property for a
  station or terminal complex unless the station or terminal complex
  is included in the public transportation system in a comprehensive
  service plan approved by a resolution of the executive committee. A
  mass transit facility of an authority is not a station or terminal
  complex under this subchapter unless the facility is included in
  the authority's comprehensive service plan under this section.
         (b)  A station or terminal complex may not be included in a
  public transportation system unless the executive committee first
  finds that the station or complex:
               (1)  will encourage and provide for efficient and
  economical public transportation;
               (2)  will facilitate access to public transportation
  and provide for other public transportation purposes;
               (3)  will reduce vehicular congestion and air
  pollution; and
               (4)  is reasonably essential to the successful
  operation of the public transportation system.
         (c)  On making a finding under Subsection (b), the executive
  committee may amend the authority's comprehensive service plan to
  include a station or terminal complex.
         Sec. 463.152.  STATION OR TERMINAL COMPLEX: FACILITIES. A
  station or terminal complex of an authority:
               (1)  must include adequate provisions for the transfer
  of passengers among the various means of transportation available
  to the complex; and
               (2)  may include provisions for residential,
  institutional, recreational, commercial, and industrial
  facilities.
         Sec. 463.153.  STATION OR TERMINAL COMPLEX: LOCATION. An
  authority shall determine the location of a station or terminal
  complex after notice and a hearing.
         Sec. 463.154.  TRANSFER OF REAL PROPERTY IN STATION OR
  TERMINAL COMPLEX. (a) An authority may transfer to any person by
  any means, including sale or lease, an interest in real property in
  a station or terminal complex and may contract with respect to it,
  in accordance with the comprehensive service plan approved by the
  executive committee, and subject to terms:
               (1)  the executive committee finds to be in the public
  interest or necessary to carry out this section; and
               (2)  specified in the instrument transferring the title
  or right of use.
         (b)  A transfer must be at the fair value of the interest
  transferred considering the use designated for the real property in
  the authority's comprehensive service plan.
  SUBCHAPTER E. BONDS
         Sec. 463.201.  DEFINITION. In this subchapter, "bond"
  includes a note.
         Sec. 463.202.  POWER TO ISSUE BONDS. An authority may issue
  bonds at any time and for any amounts it considers necessary or
  appropriate for:
               (1)  the acquisition, construction, repair, equipping,
  improvement, or extension of its public transportation system; or
               (2)  creating or funding self-insurance or retirement
  or pension fund reserves.
         Sec. 463.203.  BOND TERMS. An authority's bonds are fully
  negotiable. An authority may make the bonds redeemable before
  maturity at the price and subject to the terms and conditions that
  are provided in the authority's resolution authorizing the bonds.
         Sec. 463.204.  SALE. An authority's bonds may be sold at a
  public or private sale as determined by the executive committee to
  be the more advantageous.
         Sec. 463.205.  APPROVAL; REGISTRATION. (a) An authority's
  bonds and the records relating to their issuance shall be submitted
  to the attorney general for examination before the bonds may be
  delivered.
         (b)  If the attorney general finds that the bonds have been
  issued in conformity with the constitution and this chapter and
  that the bonds will be a binding obligation of the issuing
  authority, the attorney general shall approve the bonds.
         (c)  After the bonds are approved by the attorney general,
  the comptroller shall register the bonds.
         Sec. 463.206.  INCONTESTABILITY. Bonds are incontestable
  after they are:
               (1)  approved by the attorney general;
               (2)  registered by the comptroller; and
               (3)  sold and delivered to the purchaser.
         Sec. 463.207.  SECURITY PLEDGED. (a) To secure the payment
  of an authority's bonds, the authority may:
               (1)  pledge any part of the revenue of the public
  transportation system;
               (2)  mortgage any part of the public transportation
  system, including any part of the system subsequently acquired;
               (3)  pledge all or part of funds the federal government
  has committed to the authority as grants in aid; and
               (4)  provide that a pledge of revenue described by
  Subdivision (1) is a first lien or charge against that revenue.
         (b)  Under Subsection (a)(2) an authority may, subject to the
  terms of the bond indenture or the resolution authorizing the
  issuance of the bonds, encumber a separate item of the public
  transportation system and acquire, use, hold, or contract for the
  property by lease, chattel mortgage, or other conditional sale
  including an equipment trust transaction.
         (c)  An authority may not issue bonds secured by ad valorem
  tax revenue.
         (d)  An authority is not prohibited by this subchapter from
  encumbering one or more public transportation systems to purchase,
  construct, extend, or repair one or more other public
  transportation systems of the authority.
         (e)  The authority may pledge funds described by Subsection
  (a)(3):
               (1)  as the sole security for the bonds; or
               (2)  in addition to any other security described by
  this section.
         Sec. 463.208.  USE OF REVENUE. Revenue in excess of amounts
  pledged under Section 463.207(a)(1) shall be used to:
               (1)  pay the expenses of operation and maintenance of a
  public transportation system, including salaries, labor,
  materials, and repairs necessary to provide efficient service and
  every other proper item of expense; and
               (2)  fund operating reserves.
         Sec. 463.209.  REFUNDING BONDS. An authority may issue
  refunding bonds for the purposes and in the manner authorized by
  general law, including Chapter 1207, Government Code.
         Sec. 463.210.  BONDS AS AUTHORIZED INVESTMENTS. (a) An
  authority's bonds are authorized investments for:
               (1)  a bank;
               (2)  a savings bank;
               (3)  a trust company;
               (4)  a savings and loan association; and
               (5)  an insurance company.
         (b)  The bonds, when accompanied by all appurtenant,
  unmatured coupons and to the extent of the lesser of their face
  value or market value, are eligible to secure the deposit of public
  funds of this state, a political subdivision of this state, and any
  other political corporation of this state.
         Sec. 463.211.  EXCHANGE OF BONDS FOR EXISTING SYSTEM. An
  authority's revenue bonds may be exchanged, instead of cash, for
  the property of all or part of an existing public transportation
  system to be acquired by the authority. If the property is owned by
  a corporation that will dissolve simultaneously with the exchange,
  the authority may acquire the stock of the corporation.
         Sec. 463.212.  TAX EXEMPTION. The interest on bonds issued
  by an authority is exempt from state and local taxes.
  SUBCHAPTER F. EXECUTIVE COMMITTEE
         Sec. 463.251.  COMPOSITION. (a)  The executive committee of
  an authority is the board of directors of the regional planning
  commission established for the area of the authority under Chapter
  391, Local Government Code.
         (b)  Service on the executive committee by a public officer
  or employee is an additional duty of the office or employment.
         Sec. 463.252.  OFFICERS. (a)  The officers elected by the
  board of directors of the regional planning commission described by
  Section 463.251(a) shall serve as the officers of the executive
  committee.
         (b)  The executive committee may appoint, as necessary,
  members or nonmembers as assistant secretaries.
         (c)  The secretary or assistant secretary shall:
               (1)  keep permanent records of each proceeding and
  transaction of the authority; and
               (2)  perform other duties assigned by the executive
  committee.
         Sec. 463.253.  CONFLICTS OF INTEREST. Members of the
  executive committee and officers of the authority are subject to
  Chapter 171, Local Government Code.
         Sec. 463.254.  MEETINGS. (a) The executive committee shall
  hold at least one regular meeting each month to transact the
  business of an authority.
         (b)  On written notice, the presiding officer may call
  special meetings as necessary.
         (c)  The executive committee by resolution shall:
               (1)  set the time, place, and day of the regular
  meetings; and
               (2)  adopt rules and bylaws as necessary to conduct
  meetings.
         Sec. 463.255.  VOTING REQUIREMENTS. A majority of the
  members of the executive committee constitutes a quorum, and when a
  quorum is present, action may be taken by a majority vote of the
  members present unless the bylaws require a larger number for a
  particular action.
  SUBCHAPTER G. CREATION OF AUTHORITIES
         Sec. 463.301.  CREATION OF AUTHORITY AUTHORIZED. The board
  of directors of the regional planning commission established for
  the area included in the boundaries of the counties to which this
  chapter applies may initiate the process to create a regional
  transit authority to provide public transportation services within
  the boundaries of the counties.
         Sec. 463.302.  INITIATING ORDER OR RESOLUTION: CONTENTS.
  To initiate the process of creating an authority, the board of
  directors described by Section 463.301 must adopt a resolution or
  order containing the designation of each time and place for holding
  public hearings on the proposal to create the authority.
         Sec. 463.303.  NOTICE OF HEARING. (a) Notice of the time
  and place of the public hearings on the creation of the authority
  shall be published, beginning at least 30 days before the date of
  the hearing, once a week for two consecutive weeks in a newspaper of
  general circulation in each county.
         (b)  The board of directors described by Section 463.301
  shall give a copy of the notice to the Texas Transportation
  Commission and the comptroller.
         Sec. 463.304.  CONDUCT OF HEARING. (a) The board of
  directors described by Section 463.301 creating an authority shall
  conduct public hearings on the creation.
         (b)  Any person may appear at a hearing and offer evidence
  on:
               (1)  the creation of the authority;
               (2)  the operation of a public transportation system;
               (3)  the public utility and public interest served in
  the creation of an authority; or
               (4)  other facts bearing on the creation of an
  authority.
         (c)  A hearing may be continued until completed.
         Sec. 463.305.  RESOLUTION OR ORDER. (a) After hearing the
  evidence presented at the hearings, but not earlier than 75 days
  after the date the process is initiated by the board of directors
  described by Section 463.301, the board may adopt a resolution or
  order:
               (1)  designating the name of the authority; and
               (2)  authorizing the appointment of the interim
  executive committee.
         (b)  After the hearing, the results of the hearing shall be
  sent to the Texas Department of Transportation and the comptroller.
         Sec. 463.306.  INTERIM EXECUTIVE COMMITTEE. (a) The
  interim executive committee is composed as provided by Section
  463.251 for an executive committee except that the interim
  executive committee must include an additional member who is a
  member of the board of directors of a commuter rail district
  described by Chapter 174.
         (b)  The interim executive committee, after its
  organization, shall develop a service plan.
         (c)  Service on the interim executive committee by a public
  officer or employee is an additional duty of the office or
  employment.
         Sec. 463.307.  APPROVAL OF SERVICE PLAN. Not later than the
  45th day after the date the interim executive committee approves
  the service plan, the commissioners court of each county creating
  an authority must approve, by resolution or order, the service
  plan.
         Sec. 463.308.  NOTICE OF INTENT TO ORDER ELECTION. Not
  earlier than the 61st day after the date the interim executive
  committee approves a service plan, the interim executive committee
  shall notify the commissioners court of each county included in the
  boundaries of the authority of the interim executive committee's
  intention to call a confirmation election.
         Sec. 463.309.  CONFIRMATION ELECTION. The interim executive
  committee in ordering the confirmation election shall submit to the
  qualified voters of each county in the authority the following
  proposition: "Shall the creation of (name of authority) be
  confirmed?"
         Sec. 463.310.  CONDUCT OF ELECTION. The interim executive
  committee shall canvass the returns and declare the results of the
  election separately with respect to each county.
         Sec. 463.311.  RESULTS OF ELECTION; ORDER. (a)  The
  authority is confirmed if a majority of the votes received in each
  county favor the proposition.
         (b)  If the authority continues, the interim executive
  committee shall record the results in its minutes and adopt an
  order:
               (1)  declaring that the creation of the authority is
  confirmed;
               (2)  stating the date of the election;
               (3)  containing the proposition; and
               (4)  showing the number of votes cast for or against the
  proposition in each county.
         (c)  A certified copy of the order shall be filed with:
               (1)  the Texas Department of Transportation; and
               (2)  the comptroller.
         (d)  If the authority does not continue, the interim
  executive committee shall enter an order declaring that the result
  of votes cast at the election is that the authority ceases in its
  entirety. The order shall be filed with the Texas Department of
  Transportation and the comptroller, and the authority is dissolved.
         Sec. 463.312.  EFFECT OF CREATION. On the creation of an
  authority the boundaries of which overlap the territory of a
  commuter rail district described by Chapter 174, the commuter rail
  district is dissolved, and all assets, including property, and all
  liabilities, including debt and other obligations, of the commuter
  rail district transfer to and are assumed by the authority.
         Sec. 463.313.  COST OF ELECTION. The board of directors
  described by Section 463.301 creating an authority shall pay the
  cost of the confirmation election.
         Sec. 463.314.  EXPIRATION OF UNCONFIRMED AUTHORITY. An
  authority that has not been confirmed expires on the third
  anniversary of the effective date of a resolution or order
  initiating the process to create the authority.
         SECTION 2.  Section 174.051, Transportation Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  Notwithstanding Subsections (a) and (b), a district may
  not be created in the boundaries of a regional transit authority
  under Chapter 463.
         SECTION 3.  Sections 463.058(c) and (f) and Section 463.059,
  Transportation Code, as added by Section 1 of this Act, take effect
  only if this Act receives a two-thirds vote of all the members
  elected to each house.
         SECTION 4.  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, 2017.