Texas Transportation Code Title 5, Chapter 172 - Rural Rail Transportation Districts

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 172.001 - Definitions
  In this chapter: (1) "Board" means a district's board of directors. (2) "Bonds" means: (A) bonds; (B) notes, including bond anticipation notes, revenue anticipation notes,...
• Texas Section 172.002 - Nature Of District
  (a) A district is a public body and a political subdivision of this state exercising public and essential governmental functions. (b) A district, in the...

SUBCHAPTER B CREATION

• Texas Section 172.003 - Findings
  The legislature finds that: (1) the state contains many rural areas that are heavily dependent on agriculture for economic survival; (2) transportation of agricultural and...
• Texas Section 172.051 - Applicability
  A county is eligible to create a district as provided by this chapter only if a rail line is located in the county that: (1)...
• Texas Section 172.052 - Creation Of District By More Than One County
  (a) The commissioners courts of two or more counties that are a contiguous area may by concurrent order: (1) create a district; or (2) provide...
• Texas Section 172.053 - Creation Of District By One County
  (a) The commissioners court of a county may by order create a district in that county to develop, finance, maintain, and operate a new rail...
• Texas Section 172.054 - Notice Of Creation
  (a) The board of each newly created district shall provide notice to the Texas Transportation Institute of the district's creation. (b) On being notified by...

SUBCHAPTER C BOARD OF DIRECTORS AND EMPLOYEES

• Texas Section 172.055 - Automatic Assumption Of Contractual Obligations After Creation By Certain Districts
  A district created or re-created under Section 172.052 automatically assumes any obligation of a contract executed by the district or a predecessor district that is...
• Texas Section 172.101 - Control Of District
  (a) The board is responsible for the management, operation, and control of the district. (b) The right to control and regulate district affairs is vested...
• Texas Section 172.102 - Terms
  (a) A director serves a two-year term. (b) An initial director serves a term ending on the second anniversary of the date: (1) the latest...
• Texas Section 172.103 - Qualifications For Office
  (a) To be eligible for appointment as a director, a person must be a resident of the county governed by the commissioners court that appoints...
• Texas Section 172.104 - Vacancy
  The commissioners court that appointed a director who vacates the position shall appoint a director for the unexpired term. Added by Acts 2009, 81st Leg.,...
• Texas Section 172.105 - Removal
  (a) The commissioners court that appointed a director may remove the director from office for neglect of duty or malfeasance in office after: (1) at...
• Texas Section 172.106 - Officers
  The board shall select a president, vice president, treasurer, and secretary. The secretary is not required to be a director. Added by Acts 2009, 81st...
• Texas Section 172.107 - Meetings; Notice
  (a) The board shall hold at least one regular meeting each month to conduct district business. (b) The president may call a special board meeting....
• Texas Section 172.108 - Rules For Proceedings
  The board shall adopt rules for its proceedings. Added by Acts 2009, 81st Leg., R.S., Ch. 85 (S.B. 1540), Sec. 2.04, eff. April 1, 2011.
• Texas Section 172.109 - Employees
  The board may employ and compensate persons to carry out the powers and duties of the district. Added by Acts 2009, 81st Leg., R.S., Ch....

SUBCHAPTER D GENERAL POWERS AND DUTIES

• Texas Section 172.110 - Pecuniary Interest In Certain Contracts Prohibited
  A district employee may not have a direct or indirect pecuniary interest in any contract or agreement to which the district is a party. Added...
• Texas Section 172.151 - General Powers Of District; Governmental Functions
  (a) A district has all powers necessary or convenient to carry out the purposes of this chapter. (b) A district may generally perform all acts...
• Texas Section 172.152 - Rules
  To protect the state's health, safety, and general welfare, a district may adopt rules to govern the operation of the district, its employees, the rail...
• Texas Section 172.153 - Agreements Generally
  A district may make contracts, leases, and agreements with the United States, this state and its agencies and political subdivisions, public or private corporations, and...
• Texas Section 172.154 - Agreements With Other Entities For Joint Use
  A district may: (1) enter into agreements with a public utility, private utility, communication system, common carrier, or transportation system for the joint use of...
• Texas Section 172.155 - Joint Ownership Agreements
  A district may enter into a joint ownership agreement with any person. Added by Acts 2009, 81st Leg., R.S., Ch. 85 (S.B. 1540), Sec. 2.04,...
• Texas Section 172.156 - Awarding Construction Or Purchase Contracts
  (a) 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...
• Texas Section 172.157 - Eminent Domain
  (a) A district may exercise the power of eminent domain to acquire: (1) land in fee simple; or (2) any interest less than fee simple...
• Texas Section 172.1571 - Restoration Of Certain Expired Eminent Domain Authority
  (a) This section applies only to a district: (1) whose authority to exercise the power of eminent domain under Section 172.157 expired under Section 2206.101(c),...
• Texas Section 172.158 - Disposition Of Surplus Property
  (a) A district may sell, lease, convey, or otherwise dispose of any right, interest, or property not needed for or, in the case of a...
• Texas Section 172.159 - Suits
  (a) A district may: (1) sue and be sued; (2) institute and prosecute suits without giving security for costs; and (3) appeal from a judgment...

SUBCHAPTER E POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF RAIL FACILITIES

• Texas Section 172.160 - Perpetual Succession
  A district has perpetual succession. Added by Acts 2009, 81st Leg., R.S., Ch. 85 (S.B. 1540), Sec. 2.04, eff. April 1, 2011.
• Texas Section 172.201 - General Authority Over Rail Facilities
  A district may plan, acquire, construct, complete, develop, own, operate, and maintain rail facilities inside or outside the district. Added by Acts 2009, 81st Leg.,...
• Texas Section 172.202 - Use And Alteration Of Property Of Another Political Subdivision
  For a purpose described by Section 172.201, as necessary or useful in the construction, reconstruction, repair, maintenance, and operation of rail facilities, and subject to...
• Texas Section 172.203 - Rules Governing System; Routings
  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...
• Texas Section 172.204 - Acquisition Of Property
  (a) A district may purchase, whenever the district considers the purchase expedient, land, property rights, right-of-way, franchises, easements, and other interests in land the district...
• Texas Section 172.205 - Powers Relating To District Property
  A district may acquire by grant, purchase, gift, devise, lease, or otherwise and may hold, use, sell, lease, or dispose of property, including a license,...
• Texas Section 172.206 - Acquisition Of Rolling Stock And Other Property
  A district may acquire rolling stock or other property, under a conditional sales contract, lease, equipment trust certificate, or other form of contract or trust...
• Texas Section 172.207 - Compensation For Use Of System Facilities
  (a) A district shall establish and maintain reasonable and nondiscriminatory rents or other compensation for the use of the facilities of the system acquired, constructed,...
• Texas Section 172.208 - Operation Or Use Contracts
  (a) A district may: (1) lease all or part of the rail facilities to any operator; or (2) contract for the use or operation of...
• Texas Section 172.209 - Rail Transportation Services Agreements With Other Political Subdivisions
  A district may contract with a county or other political subdivision of this state for the district to provide rail transportation services to an area...

SUBCHAPTER F FINANCIAL PROVISIONS

• Texas Section 172.210 - Abandonment Of Rail Line
  (a) A district may not abandon a district rail line for which state money has been loaned or granted unless the abandonment is approved by...
• Texas Section 172.251 - Fiscal Year
  (a) Unless the board changes the fiscal year, the district's fiscal year ends on September 30. (b) The board may not change the fiscal year...
• Texas Section 172.252 - Annual Budget
  (a) Before beginning the operation of rail facilities, the board shall adopt an annual operating budget specifying the district's anticipated revenue and expenses for the...
• Texas Section 172.253 - Grants And Loans
  A district may accept a grant or loan from the United States, this state and its agencies and political subdivisions, public or private corporations, and...
• Texas Section 172.254 - Depository
  (a) The board by resolution shall name one or more banks for the deposit of district funds. (b) District funds are public funds and may...
• Texas Section 172.255 - Applicability Of Public Property Financing Law; Prohibition On Ad Valorem Tax
  A district may use the procedures provided by Chapter 271, Local Government Code, to finance the district's rail facilities, except to the extent of a...
• Texas Section 172.256 - Nonnegotiable Purchase Money Notes; Bond Anticipation Notes
  (a) A district may: (1) issue nonnegotiable purchase money notes, payable in installments and secured by the property being acquired or constructed, to acquire or...

SUBCHAPTER G BONDS

• Texas Section 172.257 - Tax Exemption
  District property and revenue and the interest on bonds issued by the district are exempt from any tax imposed by this state or a political...
• Texas Section 172.301 - Revenue Bonds
  A district, by board resolution, may issue revenue bonds in amounts that the board considers necessary or appropriate for the acquisition, purchase, construction, reconstruction, repair,...
• Texas Section 172.302 - Security For Payment Of Bonds
  (a) To secure payment of district bonds, the district may: (1) encumber and pledge all or part of the revenue of its rail facilities; and...
• Texas Section 172.303 - Bonds As Authorized Investments And Security For Deposits Of Public Funds
  (a) District bonds are legal and authorized investments for: (1) a bank; (2) a trust company; (3) a savings and loan association; and (4) an...
• Texas Section 172.304 - Applicability Of Public Improvement Financing Law
  For purposes of Chapter 1371, Government Code: (1) a district is an issuer; and (2) the acquisition, improvement, or repair of rail facilities by a...
• Texas Section 172.305 - Limit On Power
  A revenue bond indenture may limit the exercise of the power granted by Section 172.002, 172.151, 172.152, 172.153, 172.154, 172.155, 172.157, 172.158, 172.159, 172.160, 172.201,...
• Texas Section 172.306 - Exemption From Review Of Notes By Attorney General
  District notes authorized to be issued to an agency of the federal or state government, and related records, are not required to be submitted to...

Last modified: September 28, 2016