VERNON'S TEXAS CIVIL STATUTES
CHAPTER 13. MISCELLANEOUS RAILROADS
Art. 6535. [6733] Eminent domain
All corporations chartered for the purpose of constructing,
acquiring, maintaining and operating lines of electric railway
between any cities and towns in this State for the transportation of
freight or passengers, or both, shall have the right of eminent
domain with all the rights and powers as fully as are conferred by
law upon steam railroad corporations, and shall have the right and
power to enter upon, condemn and appropriate the lands, rights of
way, easements and property of any person or corporation whomsoever
for the purpose of acquiring rights of way upon which to construct
and operate their lines of railways and sites for depots and power
plants.
Acts 1907, p. 23.
Art. 6536. [6734] Right of way
Such corporation shall have the right and power to lay out rights of
way for their railways not to exceed two hundred feet in width, and
to construct their railways and appurtenances thereon, and for the
purpose of cuttings and embankments to take as much more land as may
be necessary for the proper construction and security of their said
railways, and to cut down any standing trees or remove any other
structure that may be in danger of falling upon or obstructing such
railway, compensation being made therefor in accordance with law.
Such corporation may have such examination and survey of their
proposed railways made as may be necessary to the selection of the
most advantageous route, and for such purposes may enter upon the
lands or waters of any person or corporation subject to
responsibility for all damages that may be occasioned thereby.
Acts 1907, p. 23.
Art. 6537. [6735] Streams, streets, etc.
They may construct their railways along, across and over any stream
of water, water course, bay, navigable water, arm of the sea,
street, highway, steam railway, plank road, turnpike or canal which
the route of such railway shall touch, and erect and operate
bridges, trams, trestles, or causeways over, along or across any
such stream, water course, navigable water, bay, arm of the sea,
street, highway, plank road, turnpike, or canal. Such bridge or
other structure shall be so erected as to not unnecessarily or
unreasonably prevent the navigation of such stream, water course,
bay, arm of the sea or navigable water and nothing herein shall
authorize the construction of any such railway upon or across any
street, alley, square or property of any incorporated city or town
without the assent of said corporation of said city or town, and
before constructing an electric railway along and upon highways,
plank roads, turnpikes or canals, such interurban electric railway
company shall first obtain the consent of the lawful authorities
having the jurisdiction of the same.
Acts 1907, p. 23.
Art. 6538. [6737] Rights over other electric railway tracks, etc.
The right of condemnation herein given to interurban electric
railway companies shall include the power and authority to condemn
for their use and benefit, easements and rights of way to operate
interurban cars along and upon the track or tracks of any electric
street railway company owning, controlling or operating such track
or tracks upon any public street or alley in any town or city of this
State for the purpose hereinafter mentioned, subject to the
consent, authority and control of the governing body of such town or
city.
Acts 1907, p. 23.
Art. 6539. [6738] Proceedings to condemn
Any interurban electric railway company, seeking to avail itself of
the benefits of this chapter shall have the right to condemn an
easement along and upon the track or tracks of any electric street
railway company for the purpose only of securing an entrance into
and an outlet from a town or city upon a route to be designated by
the governing body of the city or town. In any proceeding to
condemn an easement or right of way for the purposes above
mentioned, the court, or the jury trying the case shall define and
fix the terms and conditions upon which such easement or right of
way shall be used. The court rendering such judgment shall be
authorized upon a subsequent application or applications by either
of the parties to the original proceedings, or any one claiming
through or under them, to review and reform the terms and conditions
of such grant and the provisions of such judgment, and the hearing
upon such application shall be in the nature of a retrial of said
cause with respect to the terms and conditions upon which said
easement shall be used; but the court shall not have power upon any
such rehearing to declare such easement forfeited or to impair the
exercise thereof, and no application for a rehearing shall be made
until two years after the final judgment on the last preceding
application.
Acts 1907, p. 23.
Art. 6540. [6739] "Interurban railway company"
An interurban electric railway company, within the meaning of this
chapter, is a corporation chartered under the laws of this State for
the purpose of conducting and operating an electric railway between
two cities or between two incorporated towns or between one city and
one incorporated town in this State; and the rights secured under
this chapter by any interurban company shall be inoperative and
void if the road to be constructed under the charter of said company
is not fully constructed from a city or incorporated town to some
other city or incorporated town within twelve months from the date
of the final judgment awarding to said company said easements and
right of way. Any interurban company availing itself of the
privileges conferred in this chapter is hereby prohibited from
receiving for transportation at any point on that portion of the
track or tracks so condemned, without the consent of the company
over whose track or tracks the easement is condemned, any freight or
passengers destined to a point or points between the termini of the
track or tracks so condemned; and a wilful violation by the company
of the provisions of this article shall operate to forfeit such
easements or rights of way.
Acts 1907, p. 23.
Art. 6541. [6740] To sell light and power
Interurban electric railway companies shall also have the right to
produce, supply and sell electric light and power to the public and
to municipalities.
Acts 1907, p. 23.
Art. 6541a. Extension of lines to supply light and power
Any corporation now or hereafter organized under the laws of this
state authorized to construct, acquire and operate electric or
other lines of railway within and between any cities or towns in
Texas and to acquire, hold and operate other public utilities in and
adjacent to the cities or towns within or through which such company
operates, may extend its electric light, power and gas lines, or
either of them, for the purpose of supplying light, power and gas,
or either of them, to the public residing beyond the territory
adjacent to the cities or towns within or through which it operates,
and for the purpose of so extending any such electric light, power
and gas lines, any such corporation shall have all the rights and
powers of extension now or hereafter possessed and enjoyed by
public service corporations engaged in supplying and selling
electric light, power and gas, or either of them as provided by law;
and the powers herein granted shall not repeal either expressly or
impliedly any of the anti-trust laws of the State of Texas.
Acts 1927, 40th Leg., p. 152, ch. 101, Sec. 1, eff. March 15, 1927.
Art. 6541b. Street and interurban railways abandoned permitted to
continue distribution of gas and electricity
That all private corporations which have heretofore been
incorporated and are now authorized by their charters and the
Statutes of this State to operate street and interurban railways
with power to distribute and sell gas and/or electricity to the
public and which have heretofore abandoned or discontinued or may
hereafter abandon or discontinue the operation of street and
interurban railways and motor buses substituted therefor are hereby
authorized to continue to distribute and sell electricity and/or
gas in accordance with their charters and the Statutes during the
unexpired period of their corporate charters just as though they
continued the operation of said street and interurban railways or
motor buses, or both.
Acts 1937, 45th Leg., p. 414, ch. 209, Sec. 1, eff. April 26, 1937.
Art. 6542. [6741] Provisions cumulative
No provision in this chapter shall be construed to have the effect
to confer the power of eminent domain, or any power herein
conferred, except that conferred in the preceding article, upon any
interurban railroad or interurban railroad company, or upon any
person, firm, association, or corporation or to add to the powers
already possessed by any such railroad or railroad company, person,
firm, association or corporation so as to enable or authorize it to
condemn any land or ground occupied by any portion of its line or
track, already constructed March 5, 1907, or to condemn any land or
ground for the purpose of changing the location of any track or line
already constructed at said date. Nothing in this article shall be
construed to take from any interurban railroad company, person,
firm, association or corporation, any power of eminent domain
already possessed by it.
Acts 1907, p. 23.
Art. 6543. Merger
Any corporation organized under the laws of this State authorized
to construct, acquire and operate electric or other interurban
lines of railway in this State, commonly known as interurban
railways, may acquire, lease or purchase the physical properties,
rights and franchise of any other railway corporation having and
possessing like power, or may lease or purchase physical
properties, rights and franchises of any suburban or street railway
corporation, the lines of whose railway are to be operated in
connection with the lines of the interurban railway, and may sell or
dispose of the physical properties, rights and franchise by such
corporation or person owning the same, to such corporation,
acquiring, leasing or purchasing same hereunder. Such acquisition
or purchase may be made upon such terms as may be agreed upon by the
respective boards of directors and authorized or approved by a
majority of the stockholders of such corporations, respectively.
Corporations owning and operating said street car railways before
making sale of its properties hereunder, shall obtain the consent
of the governing body of the city where such street car line may be
located; and, in cities and towns operating under any charter which
provides for the right of qualified voters to vote on the granting
or amending of franchise to street railways or interurban railways,
this right shall still exist. Any corporation authorized to
construct, acquire and operate electric or other interurban lines
of railway in this State, commonly known as interurban railways,
shall also have the power to make and enter into trackage or lease
contract with any corporation owning and operating street railways,
so as to procure continuous passage into or through such city or
town; provided, the governing body of the city or town shall
consent thereto; in such case, the owner of such street railways is
also authorized to enter into such trackage or lease contract. No
corporation named in this article shall ever be permitted to
acquire, own, control or operate any parallel or competing
interurban line. No such corporation shall be permitted to
purchase, lease, acquire, own or control, directly or indirectly,
the shares or certificates of stock or bonds, franchise or other
rights or the physical properties or any part thereof, of any other
corporation, if the same will violate any provision of the law
commonly known as the anti-trust law.
Acts 1st C.S. 1915, p. 31.
Art. 6544. [6742-45] Street railway fares
All persons or corporations owning or operating street railways in
or upon the public streets of any town or city of not less than forty
thousand inhabitants are required:
1. To carry children of the age of twelve years or less for one-half
the fare regularly collected for the transportation of adults.
This law shall not apply to street cars carrying children or
students to and from schools, colleges or other institutions of
learning situated at a distance of one mile or more beyond the
limits of the incorporated city or town from which said cars run.
2. To sell or provide for the sale of tickets in lots of twenty, each
good for one trip over the line or lines owned or operated by such
person or corporation, for one-half of the regular fare collected
for the transportation of adults, to students not more than
seventeen years of age in actual attendance upon any academic,
public or private school of grades not higher than the grades of the
public high schools situated within or adjacent to the town or city
in which such railway is located. Such tickets are required to be
sold only upon the presentation by the student desiring to purchase
them of the written certificate of the principal of the school which
he attends showing that he is not more than seventeen years old, is
in regular attendance upon such school and is within the grades
herein provided. Such tickets are not required to be sold to such
students and shall not be used except during the months when such
school is in actual session and such students shall be transported
at half fare only when they present such tickets.
3. To transport free of charge children of the age of five years or
less when attended by a passenger of above said age.
4. To accord to all passengers referred to in this article the same
rights as to the use of transfers issued by their own or other lines
as are or may be accorded to passengers paying full fare.
Acts 1903, p. 132.
Art. 6545. Street and suburban railways
All street and suburban railways engaged in the transportation of
freight within and near cities and towns, shall be subject to the
control of the Railroad Commission. No street railway company
shall be exempt from payment of assessments that may be legally
levied or charged against it for street improvements. Any
corporation heretofore or hereafter organized under the general
laws of this State, and which owns or operates with electric power
any street or suburban railway or belt line of railways within and
near cities and towns for the transportation of freight and
passengers within Texas shall be authorized to supply and sell
electric light and power to the public or municipalities, and to
acquire or otherwise provide the necessary appliances therefore
[therefor], and may, by proceeding in the manner provided by law,
amend its articles of incorporation so as to expressly include such
authority. When the Railroad Commission shall decide that any
corporation created under chapter one of this title for the purpose
of operating a local suburban railway not exceeding ten miles from
the corporate limits of any city or town in addition to such mileage
as it may have within the same, is not for any reason subject to the
control of said Commission in reference to the issuance of stocks
and bonds or either under the provisions of Chapter 50, Acts 1893,
after such decision of the Commission, said corporation shall have
the right to issue its stocks and bonds or either and also to
increase its stocks and bonds or either without the control of the
Commission and without complying with the Act aforesaid in
reference thereto, and when so issued said stocks and bonds shall in
all respects be valid and binding.
Acts 1897, p. 189; Acts 1903, pp. 29, 62; G.L. vol. 10, p. 1243.
Art. 6546. Freight interurbans
All electric, gas or gasoline, denatured alcohol or naphtha
interurban or motor railways incorporated as such, which shall
engage in transporting freight, shall be subject to the control of
the Railroad Commission. No such corporation shall ever be exempt
from the payment of assessments that may be legally levied or
assessed against it for street improvements. Such interurban
railways shall have the same right of eminent domain as are now
given by law to steam railroads, and may exercise such right for the
purpose of acquiring right of way upon which to construct their
railway lines, and sites for depots and power plants, and shall have
the same rights, powers and privileges as are now granted by law to
interurban electric railways companies. Any such interurban
company shall have the right and authority to acquire, hold and
operate other public utilities in and adjacent to the cities or
towns within or through which said company operates. No property
upon which is located a cemetery shall ever be condemned by any such
interurban railway, unless it shall affirmatively be shown, and so
found by the court trying such condemnation suit, that it is
necessary to take such property, and no other route is possible or
practicable.
Acts 1897, p. 188; Acts 1903, p. 204; Acts 1909, 2nd C.S., p. 396;
G.L., vol. 10, p. 1242; Acts 1917, p. 390.
Art. 6547. Plants and buildings
Any corporation heretofore organized under any law of this State,
and which now or may hereafter operate a line of electric, gas or
gasoline, denatured alcohol, or naphtha motor railway, within and
between any cities or towns in Texas, is authorized to own and
operate union depots and office buildings, and to acquire, hold and
operate electric light and power plants in and adjacent to cities or
towns within or through which said company operates. Such existing
corporation, or one heretofore organized under subdivision 68 of
Article 1302, may, by proceeding in the manner provided by law,
amend its charter so as to expressly include any or all powers
herein authorized.
[Acts 1897, p. 189; Acts 1903, pp. 29, 62; G.L. vol. 10, p. 1243;
Acts 1903, p. 204; Acts 1897, p. 188; Acts 1909, 2nd C.S., p. 396;
G.L., vol. 10, p. 1242; Acts 1917, p. 390.]
Art. 6548. Jitney lines
Any corporation authorized to operate a street or suburban railway
or interurban railway and to carry passengers for hire, is hereby
authorized subject in every case to the approval and consent of the
governing body of the city or town where said street, suburban or
interurban railway company is operated to substitute for such
railway automobile motor bus lines, in whole or in part, and to
maintain and operate motor buses for the purpose of carrying
passengers for hire on the public roads, streets, plazas, alleys,
and highways within the corporate limits of any incorporated cities
or towns, under such regulations as may be prescribed by any such
cities or towns, and on the public roads and highways within five
(5) miles of the corporate limits of any such incorporated cities or
towns, under such regulations, in territory outside of city limits,
as the Commissioners Court of the county may prescribe; and such
substitution of motor buses for street cars and street or
interurban railway and the discontinuance of such street or
interurban railways shall not in any way impair any of the corporate
powers of corporations heretofore incorporated as street or
interurban railways with respect to the operation of other public
utilities authorized by their charters and by statutes now in
force.
Provided, however, companies taking advantage of this Act shall
amend their charters and pay the fees provided by law for the filing
of such amendments; and, provided that this Act shall not affect
any case now pending in the courts; and, provided further that
nothing herein contained shall be so construed as to impair the
rights of any city under any franchise it may heretofore have
granted to the corporation in question, or its predecessor.
Acts 2nd C.S. 1923, p. 97.
Amended by Acts 1933, 43rd Leg., p. 48, ch. 22.
Art. 6548a. Certain street and interurban railway corporations
authorized to amend charters to include operation as motor carriers
Authority
Sec. 1. That private corporations heretofore incorporated for the
purpose of operating street or interurban railways, which said
private corporations have totally abandoned such operations prior
to January 1, 1934, may amend their charters so as to include as a
separate purpose of the corporation the acquiring, owning and
operating of motor vehicles and motor buses for transportation of
passengers for hire upon the public streets and public ways of
cities and towns and upon the public ways of the adjacent
unincorporated territory within five (5) miles from the limits of
such cities and towns, provided however, this limit shall not be
construed to prohibit any corporation conforming with this Act from
contracting for chartered passenger service beyond said five (5)
mile limit, under such reasonable regulations as may be legally
imposed from time to time by such cities and towns within the limits
thereof and the Commissioners' Courts of counties as now prescribed
by Article 6548.
Contiguous Cities or Towns
Sec. 2. If the boundary of one city or town is contiguous with the
boundary or boundaries of another city or town, or other cities or
towns, the authority granted under Section 1, hereof to operate
within five (5) miles thereof, shall be construed to include any
territory within five (5) miles of the limits of any such contiguous
city or town.
Regulatory Authority of Railroad Commission Not Affected
Sec. 3. Nothing in this Act shall be construed to deprive the
Railroad Commission of Texas, of its exclusive authority to
continue the regulation of buses and motor vehicles operating under
its jurisdiction; nor shall this Act relieve such operators of the
requirement to secure certificates or permits from the Railroad
Commission authorizing such operations.
Itemized Statement of Money and Property and Value of Property to be
Filed
Sec. 4. Provided before any such amendment may be filed with the
Secretary of State the Officers and Directors of any corporation
shall file an affidavit with the Secretary of State giving a
detailed itemized statement of what money and property is held or
owned by it and the actual cash market value of each such item of
property.
Acts 1937, 45th Leg., p. 675, ch. 337, eff. May 15, 1937.
Art. 6549. Terminal railways
Terminal railways shall have all the rights and powers conferred by
law upon railroads by Chapters 6 and 7 of this title, and when such
railway is adjacent to any inland navigable stream or water body, it
shall have the right and power to construct, erect, operate and
maintain all necessary and convenient facilities to accommodate and
expeditiously handle the exchange of freight and passenger traffic
with all steamship and other vessels and water craft using such
waterways; and shall have the right to issue bonds in excess of its
authorized capital stock under the direction of the Railroad
Commission of Texas, in accordance with the stock and bond law
regulating the issuance of stocks and bonds by railroads. Said
commission shall fix the values of the property, rights and
franchises of such railway company; and its stocks and bonds shall
not exceed the amount authorized by said Commission in which
jurisdiction over the issuance of the bonds herein authorized is
hereby vested. No such terminal company shall have the right to
charge any railroad company, steamship, vessel or water craft for
terminal facilities a greater amount than may be from time to time
designated and established by said Commission, which shall have
authority to establish and prescribe such rates and rules for the
operation of all such terminal companies as will prevent
discrimination by them against any common carrier with respect to
either charge or service. The provisions of Articles 6452, 6453 and
6454, shall apply to any and all orders, rulings, judgments and
decrees of said Commission made, entered or held under the
provisions of this law in respect to such terminal railway
companies.
Acts 1897, p. 188; G.L. vol. 10, p. 1242; Acts 1905, p. 211; Acts
1907, p. 300; Acts 1917, p. 134.
Art. 6550. Road to mines, etc.
Corporations created to build, maintain and operate a line of
railroads to mines, gins, quarries, manufacturing plants, and
mills, shall have the right to condemn land necessary for the right
of way for such road from and between such mines, gin, quarry,
manufacturing plant or mill and the nearest line of railroad,
provided, that no such corporation shall have said right of eminent
domain until it shall declare itself a public highway and common
carrier, thus placing said road under the control of the Railroad
Commission.
Acts 1897, p. 192; G.L. vol. 10, p. 1246.
Art. 6550a1. Aerial or tramways to mines
Every person, firm, corporation, limited partnership, joint stock
association or other association of any kind whatsoever, owning,
constructing, operating or managing any aerial or other kind of
tramway within this State between a mine, smelter or railway or
either, may hold and acquire by purchase or condemnation
rights-of-way, but in the exercise of such right shall be deemed to
be a common carrier, and shall be subject to the jurisdiction and
control of the Railroad Commission, and shall have the right and
power of eminent domain in the exercise of which he, it or they may
enter upon and condemn land, rights-of-way, easement and property
of any person or corporation necessary for the construction,
maintenance or operation of his, its, or their aerial or other kind
of tramway; such right of eminent domain for acquiring
rights-of-way provided for herein, shall be exercised in the manner
prescribed by law for condemning of land and acquiring
rights-of-way by railroad companies.
Acts 1927, 40th Leg., p. 379, ch. 256, Sec. 1, eff. March 31, 1927.
Art. 6550c. Rural rail transportation districts
Findings
Sec. 1. 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 industrial products is
essential to the continued economic vitality of rural areas;
(3) the rail transportation systems in some rural areas are
threatened by railroad bankruptcies and abandonment proceedings
that would cause the cessation of rail services to the areas;
(4) it is in the interest of all citizens of the state that existing
rail systems be maintained for the most efficient and economical
movement of essential agricultural products from the areas of
production to the local, national, and export markets;
(5) rural rail transportation districts are appropriate political
subdivisions to provide for the continued operation of railroads,
which are declared by Article X, Section 2, of the Texas
Constitution to be public highways;
(6) the creation, re-creation, financing, maintenance, and
operation of rural rail transportation districts and facilities
acquired by the districts under this Act will help develop,
maintain, and diversify the economy of the state, eliminate
unemployment or underemployment, foster the growth of enterprises
based on agriculture, and serve to develop and expand
transportation and commerce within the state under the authority
granted by Article III, Section 52-a, of the Texas Constitution;
and
(7) financing by rural rail transportation districts for the
purposes provided by this Act is a lawful and valid public purpose.
Definitions
Sec. 2. In this Act:
(1) "Board" means the board of directors of a rural rail
transportation district.
(2) "Bonds" means bonds; notes, including bond anticipation notes,
revenue anticipation notes, and grant anticipation notes;
warrants; certificates of obligation; interest-bearing
contracts; interest-bearing leases of property; equipment trust
certificates; commercial paper; and any obligation issued to
refund any type of bond.
(3) "Concurrent orders" means the orders adopted by eligible
counties that contain identical provisions regarding the creation
or re-creation of a district.
(4) "District" means a rural rail transportation district created
under this Act.
(5) "Earthworks and structures" includes the clearing and grubbing
of right-of-way; demolition of structures; relocation of
utilities, pipelines, and any other obstacles in right-of-way;
stripping and stockpiling; removal of subsoils for embankment or
spoil; borrow pits; dressing and seeding of slopes; construction
of culverts; road crossings; bridges; restoration of roadway;
drainage within a right-of-way or along road networks; and
restoration of a hydrologic system.
(6) "Eligible counties" means two or more counties that meet the
requirements of Sections 3(a) and (b) of this Act.
(7) "Operating contract" means a professional services contract
executed by a district and another person under which the person
agrees to provide:
(A) all or part of the rolling stock required for operation as a
common carrier over all or a part of the rail facilities of the
district; and
(B) all or part of the personnel required for the operation of the
rolling stock owned or leased by the district or for the operation
of the rail facilities of the district.
(8) "Maintenance and operating expenses" means all expenses of
operating and maintaining a district and its rail facilities,
including all compensation, labor, materials, repairs, and
extensions necessary, required, or convenient in the discretion of
the board to render efficient service or to maintain and operate the
district, and taxes or other amounts paid, payable, or to be paid to
the United States pursuant to Section 148(f) of the Internal
Revenue Code of 1986 (26 U.S.C. Section 148), or any similar law.
(9) "Maintenance facility" includes a workshop, a service, storage,
security, or personnel facility, temporary or transient lodging for
district employees, and equipment for any type of facility.
(10) "Person" has the meaning assigned by Section 311.005,
Government Code.
(11) "Rail facilities" means any real, personal, or mixed property,
or any interest in that property that is determined by the board to
be necessary or convenient for the provision of a rural rail
transportation system and all property or interests necessary or
convenient for the acquiring, providing, constructing, enlarging,
remodeling, renovating, improving, furnishing, using, or equipping
of the system, including rights-of-way, earthworks and structures,
trackwork, train controls, stations, rolling stock, and
maintenance facilities.
(12) "Revenues" means all income, receipts, and collections
received by, to be received by, or pledged to the district from or
by any source, except a restricted gift or a grant in aid of
construction.
(13) "Right-of-way" means a right of passage over property; a strip
of land in length and width determined required, necessary, or
convenient by the board over, on, or under which trackwork is or is
to be constructed or acquired; or a right of precedential passing.
(14) "Rolling stock" means locomotives, engines, rail cars, repair
construction cars, or other cars designed to operate on trackwork.
(15) "Station" means a passenger or freight service building,
terminal, or station, ticketing facility, waiting area, platform,
concession, elevator, escalator, facility for handicapped access,
access road, parking facility for passengers, baggage handling
facility, local maintenance facility, and offices for district
purposes, together with any interest in real property necessary or
convenient for any of the listed items.
(16) "Trackwork" means track, track beds, track bed preparation,
ties, rail fasteners, slabs, rails, emergency crossovers, setout
tracks, storage track, and switches.
(17) "Train controls" includes signalling, interlocking equipment,
speed monitoring equipment, emergency braking systems, central
traffic control facilities, and communication systems.
Creation, Re-Creation, or Dissolution of District Located in More
Than One County.
Sec. 3. (a) The commissioners courts of two or more eligible
counties that, taken together, constitute a contiguous geographic
area may by order create or re-create a rural rail transportation
district consisting of the territory of the counties whose
commissioners courts adopt the order.
(b) A county eligible to create or re-create a district is one in
which is located a rail line that is in the process of being or has
been abandoned through a bankruptcy court or Interstate Commerce
Commission proceeding, or any line carrying 3 million gross tons
per mile per year or less.
(c) The commissioners courts of two or more eligible counties that
create a district or provide for the re-creation of a district by
the addition of one or more counties shall by concurrent order at
the time of creation or re-creation:
(1) declare the boundaries of the district as the boundaries of the
counties included;
(2) designate the name of the district; and
(3) designate the number of board members, which may not be less
than four, and the manner of their appointment by a commissioners
court.
(d) The commissioners courts of all counties included within a
district by order may provide for the dissolution of the district
if:
(1) the commissioners courts determine that the dissolution will
not impair an obligation of any contract of the district; and
(2) the dissolution order will become effective only on the
creation or re-creation of another district in which each county
included within the dissolving district is included.
(e) A district created or re-created under this section
automatically assumes any obligation of a contract executed by the
district or a predecessor district and in force on the date of the
creation or re-creation unless the contract expressly expires on
the date of dissolution or re-creation of the district that
executed the contract.
(f) The board of directors of each newly created district shall
provide notice to the Texas Transportation Institute of the
creation of the district. On being notified by the board, the Texas
Transportation Institute shall make available to the board a guide
to the services and information that the institute provides.
Creation or Dissolution of District Located Wholly in One County
Sec. 3A. (a) In addition to eligible counties, the commissioners
court of a county that meets the requirements of Section 3(b) of
this Act by order may create a rural rail transportation district
for purposes of developing, financing, maintaining, and operating a
new rail system under this Act and for other purposes of this Act.
(b) The boundaries of a district created under this section are the
boundaries of the county in which the district is created.
(c) At the time the district is created, the commissioners court
shall:
(1) designate the name of the district; and
(2) appoint at least four residents of the county to serve as
directors of the district.
(d) A member of the board of directors serves for a two-year term.
An initial director serves for a term ending on the second
anniversary of the date on which the order creating the district was
adopted.
(e) Section 4 of this Act applies to a board member appointed under
this section.
(f) The commissioners court of the county by order may provide for
the dissolution of the district if:
(1) the commissioners court determines that the dissolution will
not impair an obligation of any contract of the district; and
(2) the dissolution order will become effective only on the
creation of another district under this Act that includes the
county and meets the requirements of Sections 3(a) and (b) of this
Act.
Board of Directors; Employees
Sec. 4. (a) The board of directors is responsible for the
management, operation, and control of the district.
(b) To be eligible for appointment to the board, a person must be a
resident of the county governed by the commissioners court that
appoints the person. A board member serves for a term of two years
ending on the second anniversary of the latest date a concurrent
order was adopted creating or re-creating the district. A vacancy
on the board shall be filled for the remainder of the term by the
commissioners court that appointed the member who vacated the
position. A board member may be removed from office for neglect of
duty or malfeasance in office by the commissioners court that
appointed the member, after at least 10 days' written notice to the
member and a hearing before the commissioners court. At a hearing
on the question of removal of a board member, the board member is
entitled to be heard in person or through counsel.
(c) Members of the board shall select a president, vice-president,
treasurer, and secretary. The secretary is not required to be a
board member. The board shall hold at least one regular meeting
each month for the purpose of transacting business of the district.
The president may call special meetings of the board. A majority of
the members is a quorum.
(d) The board shall adopt rules for its proceedings and may employ
and compensate persons to carry out the powers and duties of the
district. The right to control and regulate the affairs of the
district is vested exclusively in the board except as specifically
otherwise provided by this Act.
(e) A board member or employee of a district may not be pecuniarily
interested, directly or indirectly, in any contract or agreement to
which the district is a party.
(f) Notice of a meeting of the board shall be posted at the
administrative office of the district and at the courthouse in the
county in which that office is located. In all other respects
Chapter 271, Acts of the 60th Legislature, Regular Session, 1967
(Article 6252-17, Vernon's Texas Civil Statutes), applies to
meetings of the board.
(g) An elected officer of the state or a political subdivision of
the state who is not prohibited by the Texas Constitution from
serving on the board is eligible to serve on the board.
Powers and Duties of District
Sec. 5. (a) A rural rail transportation district is a public body
and a political subdivision of the state exercising public and
essential governmental functions and having all the powers
necessary or convenient to carry out the purposes of this Act,
including the powers granted in this section. A district, in the
exercise of powers under this Act, is performing only governmental
functions and is a "governmental unit" within the meaning of
Chapter 101, Civil Practice and Remedies Code. A district is a
"local government" under Chapter 1084, Acts of the 70th
Legislature, Regular Session, 1987 (Article 715c, Vernon's Texas
Civil Statutes); an "issuer" under Chapter 503, Acts of the 54th
Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes),
Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
(Article 717k-3, Vernon's Texas Civil Statutes), the Bond
Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
Statutes), Chapter 53, Acts of the 70th Legislature, 2nd Called
Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), and
Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
(Article 717q, Vernon's Texas Civil Statutes); and a "public
agency" under Chapter 3, Acts of the 61st Legislature, Regular
Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), and
Chapter 400, Acts of the 66th Legislature, 1979 (Article 717m-1,
Vernon's Texas Civil Statutes). The acquisition, improvement, or
repair of rail facilities by a district is an "eligible project"
under Chapter 656, Acts of the 68th Legislature, Regular Session,
1983 (Article 717q, Vernon's Texas Civil Statutes).
(b) A district has perpetual succession.
(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 shall be brought in the county in which the principal
office of the district is located, except that in eminent domain
proceedings suit shall 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 Act.
(e) A district may plan, acquire, construct, complete, develop,
own, operate, and maintain rail facilities inside or outside the
district, and for those purposes subject to a grant previously
secured or with the consent of any municipality, county, or other
political subdivision 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 rail facilities. A district may acquire by
purchase, whenever it considers the purchase expedient, any land,
property rights, right-of-way, franchises, easements, and other
interests in land as it considers necessary for the acquisition,
construction, or operation of any rail facility on such terms and at
such price as agreed to between the district and the owner and may
take title in the name of the district. The governing body of every
municipality, county, other political subdivision, or public
agency is authorized without any form of advertisement to 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 rail facilities.
(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, without limitation, easements,
rights-of-way, rights of use of airspace or subsurface space. The
right may not be exercised in a manner that would unduly interfere
with interstate commerce. Eminent domain proceedings brought by a
district are governed by Title 52, Revised Statutes, except as it is
inconsistent with this Act. Proceedings for the exercise of the
power of eminent domain are commenced 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 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 enter into agreements with any other public
utility, private utility, communication system, common carrier, or
transportation system for the joint use of its 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 rail facilities, 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 the state.
(i) A district may enter into joint ownership agreements with any
person.
(j) A district shall establish and maintain rents or other
compensation for the use of the facilities of the system acquired,
constructed, operated, regulated, or maintained by the district
that are reasonable and nondiscriminatory and, together with grants
received by the district, are 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 Act 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. 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 may sell, lease, convey, or otherwise dispose of any
of its rights, interests, or properties not needed for or, in the
case of leases, not inconsistent with the efficient operation and
maintenance of the system. It may, on adoption of an order by the
board, sell, lease, or otherwise dispose of, at any time, any
surplus materials or personal or real property not needed for its
requirements or for the purpose of carrying out its power under this
Act.
(m) A district by resolution may adopt rules and regulations
governing the use, operation, and maintenance of the system and
shall determine all routings and change them whenever the board
considers it advisable.
(n) A district may lease the rail facilities or any part to, or
contract for the use or operation of the 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 rail facilities. The term of an operating contract
under this subsection may not exceed 20 years.
(o) A district may contract with any county or other political
subdivision of the state for the district to provide rail
transportation services to any area outside the boundaries of the
district on such terms and conditions as may be agreed to by the
parties.
(p) Before beginning the operation of 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 not more than once in
any three-year period. 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) 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 the Public
Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil
Statutes). 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.
(r) A district may not abandon a rail line of the district with
respect to which state funds have been loaned or granted unless the
abandonment is approved by the Texas Transportation Commission as
being consistent with the policies of this Act. The commission by
rule shall adopt procedures for applying for and obtaining approval
under this subsection.
Bonds and Notes
Sec. 6. (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 rail facilities. All bonds and notes are fully negotiable and
may be made redeemable before maturity, at the option of the issuing
district, at such price or prices and under such terms and
conditions as may be fixed by the issuing district in the resolution
authorizing the bonds or notes, and may be sold at public or private
sale, as determined by the board.
(b) Before delivery, all bonds and notes authorized to be issued,
except notes issued to an agency of the federal or state government,
and the records relating to their issuance shall be submitted to the
attorney general for examination. If the attorney general finds
that they have been issued in accordance with the constitution and
this Act, and that they will be binding obligations of the district
issuing them, the attorney general shall approve them, and they
shall be registered by the state comptroller of public accounts.
After approval, registration, and sale and delivery of the bonds to
the purchaser, they are incontestable.
(c) In order to secure the payment of the bonds or notes, the
district may encumber and pledge all or any part of the revenues of
its rail facilities, may mortgage and encumber all or any part of
the properties of the 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 Act. If not prohibited by the resolution or indenture
relating to outstanding bonds or notes, any district may encumber
separately any item or items 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 bonds'
principal amount or market value, whichever is less.
(e) Bonds payable solely from revenues may be issued by resolution
of the board.
Alternative Financing
Sec. 6A. (a) A district may use the procedures provided by Chapter
271, Local Government Code, to finance rail facilities of the
district, except to the extent of conflict with this Act and except
that the district may not levy or collect ad valorem taxes.
(b) A district may issue nonnegotiable purchase money notes,
payable in installments and secured by the property being acquired
or constructed, to acquire or construct rail facilities. A
district may also secure the obligation of the notes by a pledge or
undertaking to issue bonds or bond anticipation notes. A district
may covenant with the purchaser of bond anticipation notes that the
proceeds of one or more particular series of bonds will be used for
the ultimate payment of the purchase money notes or bond
anticipation notes.
Competitive Bids
Sec. 7. 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 only be let 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 personal or professional
services or the acquisition of existing rail transportation
systems.
Exemptions From Taxes
Sec. 8. The property, 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.
Effect on Other Law
Sec. 9. The powers and duties provided by this Act are in addition
to the powers and duties provided by other law for counties
regarding rail transportation.
Acts 1981, 67th Leg., p. 2434, ch. 623, eff. June 15, 1981. Secs. 1
to 6 amended by and Sec. 6A added by Acts 1993, 73rd Leg., ch. 332,
Sec. 1, eff. Aug. 30, 1993; Sec. 7 amended by Acts 1993, 73rd Leg.,
ch. 757, Sec. 35, eff. Sept. 1, 1993; Sec. 3 head amended by Acts
1997, 75th Leg., ch. 1105, Sec. 2, eff. June 19, 1997; Sec. 3(f)
added by Acts 1997, 75th Leg., ch. 580, Sec. 2, eff. Sept. 1, 1997;
Sec. 3A added by Acts 1997, 75th Leg., ch. 1105, Sec. 1, eff. June
19, 1997; Sec. 4(g) added by Acts 1997, 75th Leg., ch. 580, Sec. 1,
eff. Sept. 1, 1997; Sec. 5(r) added by Acts 2001, 77th Leg., ch.
1244, Sec. 3, eff. Sept. 1, 2001.
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) A vacancy on the board is filled in the same manner as the
original appointment. Each member serves a term of two years.
(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.
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.
Art. 6550d. Liability: public transportation entities
A transportation entity created under this title for the purpose of
providing public transportation as defined by Section 452.001,
Transportation Code, is a governmental unit as that term is defined
by the Texas Tort Claims Act (Chapter 101, Civil Practice and
Remedies Code), and all operations of the entity are essential
governmental functions and not proprietary functions for all
purposes, including the application of the Texas Tort Claims Act.
If an independent contractor of the entity is performing a function
of the entity or of a regional transportation authority operating
under Chapter 452, Transportation Code, the contractor is liable
for damages only to the extent that the entity or authority would be
liable if the entity or authority itself were performing the
function.
Added by Acts 1995, 74th Leg., ch. 165, Sec. 16, eff. Sept. 1, 1995.
