Texas Vernon's Texas Civil Statutes - Article 6550c-1. Intermunicipal Commuter Rail Districts
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Art. 6550c-1. INTERMUNICIPAL COMMUTER RAIL DISTRICTS.
Definitions
Sec. 1. In this article:
(1) "Commission" means the Texas Transportation Commission.
(2) "Commuter rail facility" means any property necessary
for the transportation of passengers and baggage between points in
a district. The term includes rolling stock, locomotives,
stations, parking areas, and rail lines.
(3) "Creating municipality" means a municipality described
by Section 2(a) of this article.
(4) "Department" means the Texas Department of
Transportation.
(5) "District" means an intermunicipal commuter rail
district created under this article.
(6) "District property" means all property the district
owns or leases under a long-term lease.
(7) "System" means all of the commuter rail and intermodal
facilities leased or owned by or operated on behalf of a district
created under this article.
Creation of District
Sec. 2. (a) A district may be created to provide commuter rail
service between two municipalities:
(1) each of which has a population of more than 450,000; and
(2) that are located not farther than 100 miles apart as
determined by the department.
(b) A district is created on passage of a resolution
favoring the creation of the district by the governing body of each
creating municipality and the governing body of each county in
which a creating municipality is located.
(c) The following political subdivisions may become a part
of a district created under Subsection (b) of this section with the
approval of the governing body of the political subdivision:
(1) a county located adjacent to a county in which a
creating municipality is located; and
(2) a municipality with a population of more than 18,000
located in a county described by Subdivision (1) of this
subsection.
(d) For purposes of this article, a municipality is located
in a county only if 90 percent or more of the population of the
municipality resides in that county according to the most recent
federal census.
Board
Sec. 3. (a) A district is governed by a board of directors.
The board is responsible for the management, operation, and control
of the district.
(b) The board is composed of the following members:
(1) two public members appointed by the commission;
(2) one elected member of the governing body of each
political subdivision that has become a part of the district under
Section 2 of this article;
(3) one elected member appointed by the regional planning
organization of which a creating municipality is a part;
(4) one member appointed by each creating municipality to
represent the business community of the municipality;
(5) one member appointed by each authority created under
Chapter 451, Transportation Code, that serves a creating
municipality;
(6) one member appointed by each county in which a creating
municipality is located to represent transportation providers that
provide service to rural areas in the county; and
(7) one member appointed by all other board members to
represent all municipalities in the district that do not otherwise
have representation on the board and who shall be an elected
official of one of those municipalities.
(c) If a vacancy occurs on the board, a successor shall be
appointed or elected in the same manner as the original appointment
or election. Each member serves a staggered two-year term with as
near as possible to half of the members' terms expiring February 1
of each year. If one or more members are added to the board, the
board members other than the new members shall determine the
lengths of the new members' terms so that one-half, or as near
one-half as possible of the members serve terms expiring each year.
(d) The members of the board shall elect one member as
presiding officer. The presiding officer may select another member
to preside in the absence of the presiding officer.
(e) The presiding officer shall call at least one meeting of
the board a year and may hold other meetings as the presiding
officer determines are appropriate.
(f) A member of the board is not entitled to compensation
for serving as a member but is entitled to reimbursement for
reasonable expenses incurred while serving as a member.
(g) The board shall adopt rules for its proceedings and
appoint an executive committee and may employ and compensate
persons to carry out the powers and duties of the district.
(h) Chapter 171, Local Government Code, applies to a board
member of a district.
Board Meetings by Telephone or Videoconference
Sec. 3A. (a) Chapter 551, Government Code, does not prohibit
the board from holding an open or closed meeting by telephone
conference call or videoconference.
(b) A meeting held by telephone conference call or
videoconference need not have a quorum present at any one location.
(c) A telephone conference call or videoconference meeting
is subject to the notice requirements applicable to other meetings.
(d) The notice of a telephone conference call or
videoconference meeting must specify all locations of the meeting
where a member of the board will participate. The notice must also
specify the physical location from which the presiding officer of
the board will preside. All locations must be open to the public
during the open portion of the meeting.
(e) Each part of a telephone conference call meeting that is
required to be open to the public shall be audible to the public at
the location specified in the notice of the meeting as the location
of the meeting and shall be tape recorded. The tape recording shall
be made available to the public.
(f) Each part of a videoconference meeting that is required
to be open to the public shall:
(1) be visible and audible to the public at all locations
specified in the notice of the meeting as the locations of the
meeting; and
(2) have two-way audio and video communications with each
participant in the meeting during the entire meeting.
(g) Without regard to whether a member of the board is
participating in a meeting from a remote location by
videoconference call, the board may allow a member of the public to
testify at a meeting from a remote location by videoconference
call. The board shall designate the location for public
participation in the notice of the meeting.
Powers and Duties of District
Sec. 4. (a) A district created under this article is a public
body and a political subdivision of the state exercising public and
essential governmental functions and has all the powers necessary
or convenient to carry out the purposes of this article. A
district, in the exercise of powers under this article, is
performing only governmental functions and is a governmental unit
within the meaning of Chapter 101, Civil Practice and Remedies
Code.
(b) A district is subject every 12th year to review under
Chapter 325, Government Code (Texas Sunset Act).
(c) A district may sue and be sued in all courts of competent
jurisdiction, may institute and prosecute suits without giving
security for costs, and may appeal from a judgment without giving
supersedeas or cost bond. An action at law or in equity against the
district must be brought in the county in which a principal office
of the district is located, except that in eminent domain
proceedings, suit must be brought in the county in which the land is
located.
(d) A district may acquire by grant, purchase, gift, devise,
lease, or otherwise and may hold, use, sell, lease, or dispose of
real and personal property, licenses, patents, rights, and
interests necessary, convenient, or useful for the full exercise of
any of its powers under this article.
(e) A district may acquire, construct, develop, own,
operate, and maintain intermodal and commuter rail facilities
inside, or connect political subdivisions in, the district. For
these purposes and with the consent of any municipality, county, or
other political subdivision, the district may use streets, alleys,
roads, highways, and other public ways of any municipality, county,
or other political subdivision and may relocate, raise, reroute,
change the grade of, or alter, at the expense of the district, the
construction of any street, alley, highway, road, railroad,
electric lines and facilities, telegraph and telephone properties
and facilities, pipelines and facilities, conduits and facilities,
and other properties, whether publicly or privately owned, as
necessary or useful in the construction, reconstruction, repair,
maintenance, and operation of the system. A district may not use or
alter a road or highway in the state highway system without the
permission of the commission or a railroad without permission of
the railroad. A district may at its discretion acquire by purchase
any interest in real property for the acquisition, construction, or
operation of any commuter rail facility on terms and at a price as
agreed to between the district and the owner. The governing body of
any municipality, county, other political subdivision, or public
agency may make conveyance of title or rights and easements to any
property needed by the district to effect its purposes in
connection with the acquisition, construction, or operation of the
system.
(f) A district has the right of eminent domain to acquire
lands in fee simple and any interest less than fee simple in, on,
under, or above lands, including easements, rights-of-way, and
rights of use of airspace or subsurface space. The power of eminent
domain under this section does not apply, however, to land under the
jurisdiction of the department or a metropolitan transit authority
or a rail line owned by a common carrier or municipality. The
district shall, to the extent possible, use existing rail or
intermodal transportation corridors for the alignment of its
system. Proceedings for the exercise of the power of eminent domain
are begun by the adoption by the board of a resolution declaring the
public necessity for the acquisition by the district of the
property or interest described in the resolution and that the
acquisition is necessary and proper for the construction,
extension, improvement, or development of commuter rail facilities
and is in the public interest. The resolution of the district is
conclusive evidence of the public necessity of the proposed
acquisition and that the real or personal property or interest in
property is necessary for public use.
(g) A district may make agreements with any other public
utility, private utility, communication system, common carrier,
state agency, or transportation system for the joint use of
facilities, installations, or properties within or outside the
district and establish through routes, joint fares, and, subject to
approval of any tariff-regulating body having jurisdiction,
divisions of tariffs.
(h) A district may adopt rules to govern the operation of
the district, its employees, the system, service provided by the
district, and any other necessary matter concerning its purposes,
including rules regarding health, safety, alcohol or beverage
service, food service, and telephone and utility services, to
protect the health, safety, and general welfare of residents of the
district.
(i) A district may make joint ownership agreements with any
person.
(j) A district shall establish and maintain rates or other
compensation for the use of the facilities of the system acquired,
constructed, operated, regulated, or maintained by the district
that is reasonable and nondiscriminatory and, together with grants
received by the district, is sufficient to produce revenues
adequate:
(1) to pay all expenses necessary to the operation and
maintenance of the properties and facilities of the district;
(2) to pay the interest on and principal of all bonds issued
by the district under this article and payable in whole or in part
from the revenues, as they become due and payable; and
(3) to fulfill the terms of any agreements made with the
holders of bonds or with any person in their behalf.
(k) A district may make contracts, leases, and agreements
with, and accept grants and loans from, the United States of
America, its departments and agencies, the state, its agencies and
political subdivisions, and public or private corporations and
persons and may generally perform all acts necessary for the full
exercise of the powers vested in it. The commission may enter an
interlocal agreement with a district under which a district may
exercise a power or duty of the commission for the development and
efficient operation of intermodal corridors in the district. A
district may acquire rolling stock or other property under
conditional sales contracts, leases, equipment trust certificates,
or any other form of contract or trust agreement. Any revenue bond
indenture may provide limitations on the exercise of the powers
granted by this section, and the limitations apply so long as any of
the revenue bonds issued pursuant to the indenture are outstanding
and unpaid.
(l) A district by resolution may adopt rules governing the
use, operation, and maintenance of the system and shall determine
all routings and change them when the board considers it advisable.
(m) A district may lease the commuter rail facilities or any
part to, or contract for the use or operation of the commuter rail
facilities or any part by, any operator. A district shall encourage
to the maximum extent practicable the participation of private
enterprise in the operation of commuter rail facilities. The term
of an operating contract under this subsection may not exceed 20
years.
(n) A district may contract with any county or other
political subdivision of the state for the district to provide
commuter rail transportation services to any area outside the
boundaries of the district on such terms and conditions as the
parties agree to.
(o) A district may purchase an additional insured provision
to any liability insurance contract.
(p) Before beginning the operation of commuter rail
facilities, the board of a district shall adopt an annual operating
budget specifying the anticipated revenues and expenses of the
district for the remainder of the fiscal year, and the district
shall adopt an operating budget for each succeeding fiscal year.
The fiscal year of the district ends September 30 unless changed by
the board. The board shall hold a public hearing before adopting
each budget except the initial budget. Notice of each hearing must
be published at least seven days before the date of the hearing in a
newspaper of general circulation in the district. A budget may be
amended at any time if notice of the proposed amendment is given in
the notice of meeting. An expenditure that is not budgeted may not
be made.
(q) A district is eligible to participate in the Texas
County and District Retirement System.
(r) The board of a district shall by resolution name one or
more banks for the deposit of district funds. District funds are
public funds and may be invested in securities permitted by Chapter
2256, Government Code. To the extent funds of the district are not
insured by the Federal Deposit Insurance Corporation or its
successor, they shall be collateralized in the manner provided for
county funds.
Bonds and Notes
Sec. 5. (a) A district may issue revenue bonds and notes from
time to time and in such amounts as its board considers necessary or
appropriate for the acquisition, purchase, construction,
reconstruction, repair, equipping, improvement, or extension of
its commuter rail facilities. All bonds and notes are fully
negotiable and may be made redeemable before maturity, at the
option of the issuing district and at prices and under terms and
conditions the issuing district determines in the resolution
authorizing the bonds or notes, and may be sold at public or private
sale, as the board determines.
(b) A district shall submit all bonds and notes authorized
to be issued and the records relating to their issuance to the
attorney general for examination before delivery. If the attorney
general determines that they have been issued in accordance with
the constitution and this article and that they will be binding
obligations of the district issuing them, the attorney general
shall approve them, and the comptroller shall register them. Bonds
and notes issued under this article are incontestable after
approval, registration, and sale and delivery of the bonds to the
purchaser.
(c) To secure the payment of the bonds or notes, the
district may encumber and pledge all or any part of the revenues of
its commuter rail facilities, may mortgage and encumber all or any
part of the properties of the commuter rail facilities and
everything pertaining to them acquired or to be acquired, and may
prescribe the terms and provisions of the bonds and notes in any
manner not inconsistent with this article. If not prohibited by the
resolution or indenture relating to outstanding bonds or notes, a
district may encumber separately any item of real estate or
personalty.
(d) All bonds and notes are legal and authorized investments
for banks, trust companies, savings and loan associations, and
insurance companies. The bonds and notes are eligible to secure the
deposit of public funds of the state, cities, towns, villages,
counties, school districts, or other political corporations or
subdivisions of the state. The bonds and notes are lawful and
sufficient security for the deposits to the extent of the principal
amount or market value of the bonds or notes, whichever is less.
Competitive Bids
Sec. 6. A contract in the amount of more than $15,000 for the
construction of improvements or the purchase of material,
machinery, equipment, supplies, or any other property except real
property may be let only on competitive bids after notice
published, at least 15 days before the date set for receiving bids,
in a newspaper of general circulation in the district. A board may
adopt rules governing the taking of bids and the awarding of
contracts. This section does not apply to:
(1) personal or professional services;
(2) the acquisition of existing rail transportation
systems;
(3) a contract with a common carrier to construct lines and
to operate commuter rail service on lines owned in whole or in part
by the carrier; or
(4) an agreement with a private entity under Section 6A of
this Article.
Exclusive Development Agreements
Sec. 6A. (a) In this section, " exclusive development
agreement" means an agreement with a private entity that at a
minimum provides for the design and construction of a commuter rail
facility or system. The agreement may also provide for the
financing, acquisition, maintenance, or operation of a commuter
rail facility or system.
(b) A board may enter into an exclusive development
agreement with a private entity.
(c) The board may adopt rules governing agreements under
this section.
Exemption From Taxes
Sec. 7. The property, material purchases, revenues, and
income of a district and the interest on bonds and notes issued by a
district are exempt from all taxes levied by the state or a
political subdivision of the state.
Transportation Infrastructure
Sec. 8. (a) This section applies only to a local government
which is a member of a district, other than a school district, that
is authorized to impose ad valorem taxes on real property.
(b) A district may enter into an interlocal contract with a
local government member for the financing of transportation
infrastructure that is constructed or that is to be constructed in
the territory of the local government by the district.
(c) The agreement must include:
(1) the duration of the agreement;
(2) a description of each transportation infrastructure
project or proposed project;
(3) a map showing the location of each project; and
(4) an estimate of the cost of each project.
(d) The agreement may establish one or more transportation
infrastructure zones. The district and the local government may
agree that, at one or more specified times, the local government
will pay to the district an amount that is calculated on the basis
of increased ad valorem tax collections in a zone that are
attributable to increased values of property located in the zone
resulting from an infrastructure project. The amount may not
exceed an amount that is equal to 30 percent of the increase in ad
valorem tax collections for the specified period.
(e) Money received by the district under this section may be
used:
(1) to provide a local match for the acquisition of
right-of-way in the territory of the local government; or
(2) for design, construction, operation, or maintenance of
transportation facilities in the territory of the local government.
Sales and Use Taxes
Sec. 9. (a) A sales and use tax is imposed on items sold on
district property. The sales and use tax shall be imposed at the
rate of the highest combination of local sales and use taxes imposed
at the time of the district's creation in any local governmental
jurisdiction which is a member of a district. The comptroller shall
remit to a district the local sales and use tax collected on the
district's property. All other local sales and use taxes that would
otherwise be imposed on district property are preempted by the
imposition of this tax.
(b) The comptroller shall administer, collect, and enforce
a tax imposed under this Act. Chapter 321, Tax Code, governs the
computation, administration, governance, and use of the tax except
as inconsistent with this Act.
(c) The district shall notify the comptroller in writing by
United States registered or certified mail of the district's
creation and of its intent to impose the sales and use tax under
this Act. The district shall provide to the comptroller all
information required to implement the tax, including:
(1) an adequate map showing the property boundaries of the
district;
(2) a certified copy of the resolution of the district board
adopting the tax; and
(3) certified copies of the resolutions of the governing
bodies of the municipalities creating the district and of the
commissioners courts in the counties in which the municipalities
are located.
(d) Not later than the 30th day after the date the
comptroller receives the notice, map, and other information, the
comptroller shall inform the district whether the comptroller is
prepared to administer the tax.
(e) At the same time the district notifies the comptroller
under Subsection (c) of this section, the district shall notify
each affected local governmental jurisdiction of the district's
creation and provide each jurisdiction with an adequate map showing
the property boundaries of the district.
(f) Not later than the 30th day after the date the district
acquires additional territory, the district shall notify the
comptroller and each affected local governmental jurisdiction of
the acquisition. The district must include with each notification
an adequate map showing the new property boundaries of the district
and the date the additional territory was acquired. Not later than
the 30th day after the date the comptroller receives the notice
under this subsection, the comptroller shall inform the district
whether the comptroller is prepared to administer the tax in the
additional territory.
(g) A tax imposed under this Act or the repeal of a tax
abolished under this Act takes effect on the first day of the first
complete calendar quarter that occurs after the expiration of the
first complete calendar quarter that occurs after the date the
comptroller receives a notice of the action as required by this
section.
Added by Acts 1997, 75th Leg., ch. 381, Sec. 1, eff. Sept. 1, 1997.
Sec. 1(6) amended by and Sec. 1(7) added by Acts 2001, 77th Leg.,
ch. 1263, Sec. 82, eff. Sept. 1, 2001; Sec. 9 amended by Acts 2001,
77th Leg., ch. 1263, Sec. 83, eff. Sept. 1, 2001; Sec. 6 amended by
Acts 2003, 78th Leg., ch. 843, Sec. 1, eff. June 20, 2003; Sec. 6A
added by Acts 2003, 78th Leg., ch. 843, Sec. 2, eff. June 20, 2003;
Sec. 3(c) amended by Acts 2005, 79th Leg., ch. 73, Sec. 1, eff.
Sept. 1, 2005; Sec. 3A added by Acts 2005, 79th Leg., ch. 73, Sec.
2, eff. Sept. 1, 2005.
Article: 6547 6548 6548a 6549 6550 6550a1 6550c 6550c-1 6550d 6551 6552 6553 6554 6555 6556
Last modified: August 10, 2007
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