TRANSPORTATION CODE
CHAPTER 317. ELIMINATION OF GRADE-LEVEL STREET CROSSINGS BY
RAILROAD LINES IN MUNICIPALITIES WITH POPULATION OF MORE THAN
100,000
SUBCHAPTER A. GENERAL PROVISIONS
§ 317.001. APPLICABILITY OF CHAPTER. This chapter
applies only to a municipality with a population of more than
100,000.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.002. DEFINITION. In this chapter, "facility"
means property that the governing body of a municipality considers
necessary for the elimination of a grade-level crossing by a
railroad line from a street of the municipality or for the
relocation of a railroad line within the municipality, including:
(1) land;
(2) a right-of-way;
(3) an elevated structure;
(4) a grade separation;
(5) an underpass or overpass;
(6) a passenger station, depot, or other building;
(7) an interchange yard;
(8) a railroad track; and
(9) any other improvement.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.003. AUTHORITY REGARDING FACILITIES. (a) To
decrease hazards to life or property, promote public safety or
convenience, improve traffic conditions, or encourage the orderly
development of the municipality, a municipality may acquire,
construct, improve, enlarge, extend, maintain, repair, or replace a
facility.
(b) Activities authorized by Subsection (a) include:
(1) removing and relocating railroad tracks, a utility
line or pipe, or another improvement;
(2) removing or demolishing a building or another
improvement;
(3) paying for damage to other property in connection
with an activity described by that subsection; or
(4) improving a street in connection with an activity
described by that subsection.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.004. APPLICABILITY OF OTHER LAW. Except to the
extent that it conflicts or is inconsistent with this chapter,
Subchapter B, Chapter 1502, Government Code, applies to revenue
bonds issued under this chapter, and a municipality to which this
chapter applies has, with respect to a revenue bond issued under
this chapter, each power granted by that subchapter.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.005. CONFLICT OR INCONSISTENCY WITH MUNICIPAL
CHARTER. To the extent of a conflict or inconsistency between this
chapter and a municipal charter, this chapter controls.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.006. AGREEMENTS. (a) In this section,
"agreement" includes a contract, lease, conveyance, contract of
sale, or lease-purchase contract.
(b) The governing body of a municipality may enter into an
agreement with any person with respect to a facility, including an
agreement in connection with or incidental to the acquisition,
financing, construction, or operation of a facility, if the
governing body:
(1) considers the agreement necessary or convenient to
implement this chapter; and
(2) authorizes the agreement by ordinance or
resolution.
(c) The mayor or other presiding officer of the municipality
must execute the agreement, and the municipal secretary or clerk
must attest to the agreement.
(d) An agreement entered into by a municipality under this
chapter is binding on the municipality and its governing body.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.007. EMINENT DOMAIN. (a) A municipality may
exercise the power of eminent domain to acquire the fee simple title
to, an easement in, or a right-of-way over or through any property,
including water or land under water, that the governing body of the
municipality determines necessary to accomplish a purpose provided
by Section 317.003.
(b) A municipality may not condemn property under
Subsection (a) if the property is used for cemetery purposes.
(c) A municipality shall pay adequate compensation to the
owner of property that is taken, damaged, or destroyed in the
accomplishment of a purpose provided by Section 317.003.
(d) A municipality may pay compensation and damages
adjudicated in a condemnation proceeding or damage to the property
of a person in the accomplishment of a purpose provided by Section
317.003 from:
(1) the proceeds of tax or revenue bonds issued under
this chapter; or
(2) other available municipal money.
(e) Chapter 21, Property Code, governs the procedure for the
exercise of the power of eminent domain under this section.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
SUBCHAPTER B. MANAGEMENT AND CONTROL OF FACILITIES; BOARD OF
TRUSTEES
§ 317.051. DEFINITION. In this subchapter, "board"
means a board of trustees established under Section 317.052.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.052. MANAGEMENT AND CONTROL BY GOVERNING BODY OR
BOARD. An ordinance authorizing the issuance of revenue bonds
under this chapter may provide that while the principal of or
interest on the bonds is outstanding, and regardless of whether the
facility is encumbered under Section 317.112, management and
control of the facility is vested in:
(1) the governing body of the municipality; or
(2) the board of trustees named in the ordinance.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.053. COMPOSITION OF BOARD. A board may consist of
not more than seven members, one of whom must be a member of the
governing body of the municipality.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.054. ORGANIZATION AND DUTIES OF BOARD. (a) An
ordinance under Section 317.052 that vests management and control
of a facility in a board must:
(1) specify the board members' compensation, which may
not exceed five percent of the gross revenue of the facility;
(2) specify the members' terms of office;
(3) specify the members' powers and duties and the
manner of exercising those powers and duties;
(4) provide for the election or appointment of the
members' successors; and
(5) specify any other matter relating to the members'
organization and duties.
(b) On any matter not covered by the ordinance, the board is
governed by the laws and rules governing the governing body of the
municipality to the extent applicable.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
SUBCHAPTER C. BONDS
§ 317.101. DEFINITION. In this subchapter, "net
revenue" means the gross revenue derived from the operation or use
of a facility the net revenue of which is pledged to the payment of a
bond less the reasonable expenses of maintaining and operating the
facility, including necessary repair and insurance of the facility.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.102. AUTHORITY TO ISSUE BONDS. The governing body
of a municipality by ordinance may issue tax bonds, revenue bonds,
or both to provide money for a facility.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.103. ELECTION. (a) Tax bonds, other than
refunding bonds, may be issued only if authorized by a majority of
the qualified voters voting at an election held under Chapter 1251,
Government Code.
(b) The governing body of a municipality may:
(1) submit a proposition for the issuance of revenue
bonds at an election held in the manner provided by Subsection (a)
for tax bonds; or
(2) issue revenue bonds without an election.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.104. MATURITY. A bond issued under this chapter
must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.105. SIGNATURES. A bond issued under this chapter
must be signed by the mayor or presiding officer of the municipality
and countersigned by the municipal secretary or clerk.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.106. SALE OF BONDS. A municipality may sell bonds
issued under this chapter at a public or private sale under terms
determined by the governing body to be the most advantageous and
reasonably obtainable.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.107. CONTENTS OF ORDINANCE AUTHORIZING ISSUANCE OF
REVENUE BONDS. (a) The ordinance of the governing body of the
municipality authorizing the issuance of revenue bonds and the
related proceedings may:
(1) provide for the flow of funds and the
establishment and maintenance of an interest and sinking fund,
reserve fund, or other fund;
(2) specify a depository for the money; and
(3) contain any additional covenant, as considered
appropriate, with respect to the bonds, the pledged revenue, and
the operation and maintenance of each facility the net revenue of
which is pledged, including provisions for:
(A) the lease of a facility; and
(B) the use or pledge of money derived from that
lease.
(b) The ordinance or related proceeding may:
(1) prohibit the further issuance of bonds or other
obligations payable from pledged revenue; or
(2) reserve the right to issue additional bonds to be
secured by a pledge of and payable from the net revenue on a parity
with, or subordinate to, the lien and pledge in support of the bonds
being issued, subject to any condition provided by the ordinance or
related proceeding.
(c) The ordinance or related proceeding may contain any
other provision or covenant determined by the governing body.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.108. ADOPTION AND EXECUTION OF DOCUMENTS. The
governing body of a municipality may adopt and have executed any
other proceeding or instrument necessary or convenient in the
issuance of revenue bonds.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.109. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
REVENUE BONDS. (a) If revenue bonds issued under this chapter
state that they are secured in whole or in part by a pledge of the
proceeds from a contract between the municipality and another
person, a copy of the contract and of the proceedings authorizing
the contract must be submitted to the attorney general with the bond
record.
(b) The approval by the attorney general of the bonds is
approval of the contract.
(c) After approval, the contract is incontestable except
for forgery or fraud.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.110. SECURITY FOR AND PAYMENT OF BONDS PAYABLE
FROM REVENUE. (a) Revenue bonds may be secured by a pledge of and
paid from:
(1) the net revenue derived from the operation or use
of all or a designated part of a facility then in existence or to be
improved, constructed, or acquired;
(2) the revenue, proceeds, or payments that will
accrue to or be received by the municipality under a lease-purchase
contract or contract of sale relating to a facility; or
(3) a combination of those sources.
(b) While the principal of or interest on bonds is
outstanding, the municipality shall:
(1) impose and collect charges in an amount sufficient
to pay:
(A) maintenance and operation expenses of the
facility the net revenue of which is pledged;
(B) the interest on the bonds as it accrues; and
(C) the principal of the bonds as the bonds
mature; and
(2) make any other payment prescribed by the ordinance
or other proceeding authorizing or relating to the issuance of the
bonds.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.111. USE OF CERTAIN PROCEEDS. From the proceeds
of bonds issued under this chapter, the governing body of a
municipality may appropriate or set aside:
(1) an amount for the payment of interest expected to
accrue while a facility is under construction;
(2) an amount necessary to pay all expenses incurred
and to be incurred in the issuance, sale, and delivery of the bonds;
and
(3) in the case of revenue bonds, an amount required by
the ordinance authorizing the issuance of the bonds to be deposited
to the credit of a reserve fund or other fund specified by the
ordinance.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.112. ENCUMBRANCE AS ADDITIONAL SECURITY. (a) As
additional security for the payment of revenue bonds issued under
this chapter, the governing body of a municipality may have
executed in favor of the bondholders an indenture or deed of trust
that encumbers all or part of a facility the net revenue of which is
pledged to the payment of the bonds, including the land on which the
facility is located.
(b) An indenture or deed of trust entered into under this
section:
(1) may contain terms considered proper by the
governing body;
(2) may provide for a grant, to any purchaser at a
foreclosure sale, of a franchise to operate the facility for a term
not to exceed 40 years from the date of the purchase, subject to all
laws regulating same then in force; and
(3) is enforceable in the manner provided under the
laws of this state for the enforcement of other encumbrances.
(c) Under a sale ordered under the provisions of an
encumbrance entered into under this section, the purchaser and the
purchaser's successors or assigns are vested with:
(1) a permit or franchise to maintain the facility
that conforms to the provisions stipulated in the indenture or deed
of trust;
(2) powers and privileges similar to those of the
municipality in the operation of the facility; and
(3) the right to remove all or part of the facility for
diversion to other purposes.
(d) The laws of this state other than this chapter do not
apply to the authorization or execution of an encumbrance entered
into under this chapter or to the granting of a franchise under this
chapter.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
SUBCHAPTER D. REFUNDING BONDS
§ 317.151. APPLICABILITY OF LAW RELATING TO ORIGINAL
BONDS. The provisions of this chapter relating to original bonds
apply to refunding bonds issued under this chapter to the extent the
provisions can be made to apply.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.152. AUTHORITY TO ISSUE TAX REFUNDING
BONDS. (a) The governing body of a municipality by ordinance may
issue tax bonds under this chapter to refund outstanding original
or refunding bonds issued by the municipality under this chapter
and the accrued interest on those bonds.
(b) Refunding bonds issued under this section may be issued
to refund tax bonds of more than one series or issue.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.153. AUTHORITY TO ISSUE REVENUE REFUNDING
BONDS. The governing body of a municipality by ordinance may issue
revenue bonds under this chapter to refund outstanding original or
refunding revenue bonds issued by the municipality under this
chapter and the accrued interest on those bonds.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.154. TERMS OF ISSUANCE OF REVENUE REFUNDING
BONDS. (a) Revenue refunding bonds may:
(1) be combined with new or original revenue bonds
into one series or issue;
(2) be issued to refund bonds of more than one series
or issue;
(3) combine the pledges securing the bonds to be
refunded to secure the revenue refunding bonds; or
(4) be secured by a pledge of other or additional net
revenue.
(b) Revenue refunding bonds may bear interest at a rate
higher than that of the bonds to be refunded.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.155. REGISTRATION OF REFUNDING BONDS BY
COMPTROLLER. (a) Except as provided by Subsection (b), the
comptroller shall register refunding bonds on surrender and
cancellation of the bonds to be refunded.
(b) The comptroller shall register refunding bonds without
the surrender and cancellation of the bonds to be refunded if the
ordinance authorizing the issuance of the refunding bonds requires
that the bonds be sold and the proceeds from the sale be deposited
where the bonds to be refunded are payable.
(c) Refunding bonds to which Subsection (b) applies may be
issued in an amount sufficient to pay the principal of and interest
on the bonds to be refunded to the option or maturity date of the
bonds.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
§ 317.156. ESCROW AGREEMENT. (a) The proceeds from
revenue refunding bonds that are deposited as provided by Section
317.155(b) shall be held under an escrow agreement so that the
proceeds will be available to pay the principal of and interest on
the bonds to be refunded as each becomes due.
(b) The escrow agreement may provide that the proceeds may,
until needed to pay principal and interest, be invested in direct
obligations of the United States.
(c) Interest earned on an investment described by
Subsection (b) shall be considered revenue of the facility.
Added by Acts 1999, 76th Leg., ch. 227, § 24, eff. Sept. 1, 1999.
