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S.B. No. 1540

S.B. No. 1540

AN ACT

relating to a nonsubstantive revision of statutes relating to
railroads; including conforming amendments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. GENERAL MATTERS
SECTION 1.01. PURPOSE OF ACT. (a) This Act is enacted as a
part of the state’s continuing statutory revision program under
Section 323.007, Government Code. The program contemplates a
topic-by-topic revision of the state’s general and permanent
statute law without substantive change.
(b) Consistent with the objectives of the statutory
revision program, the purpose of this Act is to make the law
encompassed by this Act more accessible and understandable by:
(1) rearranging the statutes into a more logical
order;
(2) employing a format and numbering system designed
to facilitate citation of the law and to accommodate future
expansion of the law;
(3) eliminating repealed, duplicative, expired, and
executed provisions; and
(4) restating the law in modern American English to
the greatest extent possible.
ARTICLE 2. TRANSFER OF PROVISIONS FROM TITLE 112, REVISED
STATUTES, TO TRANSPORTATION CODE
SECTION 2.01. Subtitle A, Title 5, Transportation Code, is
redesignated as Subtitle B, Title 5, Transportation Code, and the
subtitle heading is amended to read as follows:
SUBTITLE B [A]. STATE RAIL FACILITIES [TEXAS DEPARTMENT OF
TRANSPORTATION]
SECTION 2.02. Title 5, Transportation Code, is amended by
adding a new Subtitle A to read as follows:
SUBTITLE A. GENERAL PROVISIONS
CHAPTER 81. GENERAL PROVISIONS
Sec. 81.001. DEFINITIONS
Sec. 81.002. APPLICABILITY
SUBTITLE A. GENERAL PROVISIONS
CHAPTER 81. GENERAL PROVISIONS
Sec. 81.001. DEFINITIONS. In this title:
(1) “Commission” means the Texas Transportation
Commission.
(2) “Department” means the Texas Department of
Transportation. (New.)
Sec. 81.002. APPLICABILITY. In this title, a reference to a
railroad company includes:
(1) a railroad incorporated before September 1, 2007,
under former Title 112, Revised Statutes; or
(2) any other legal entity operating a railroad,
including an entity organized under the Texas Business Corporation
Act or the Texas Corporation Law provisions of the Business
Organizations Code. (V.A.C.S. Art. 6259a.)
SECTION 2.03. Title 5, Transportation Code, is amended by
adding Subtitles C and D to read as follows:
SUBTITLE C. RAILROADS GENERALLY
CHAPTER 111. REGULATION BY TEXAS DEPARTMENT OF TRANSPORTATION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 111.001. DEFINITION OF PERSON
Sec. 111.002. POWER AND AUTHORITY
Sec. 111.003. TRANSFER OF RAILROAD AUTHORITY
Sec. 111.004. REFERENCE TO RAILROAD COMMISSION
[Sections 111.005-111.050 reserved for expansion]
SUBCHAPTER B. REGULATION OF RAILROADS BY DEPARTMENT
Sec. 111.051. INSPECTION OF BOOKS AND PAPERS; PENALTY
Sec. 111.052. INFORMATION SOLICITED BY DEPARTMENT
Sec. 111.053. REFUSAL TO ANSWER BY RAILROAD COMPANY
OFFICER OR EMPLOYEE; CRIMINAL PENALTY
Sec. 111.054. REFUSAL TO ANSWER BY RAILROAD COMPANY;
PENALTY
Sec. 111.055. WITNESSES
Sec. 111.056. DEPOSITIONS
Sec. 111.057. PENALTY NOT OTHERWISE PROVIDED
Sec. 111.058. SUITS FOR PENALTY
[Sections 111.059-111.100 reserved for expansion]
SUBCHAPTER C. DEPARTMENT SAFETY REGULATION
Sec. 111.101. IMPLEMENTATION OF FEDERAL SAFETY LAWS;
FEES
Sec. 111.102. HAZARDOUS MATERIALS INSPECTIONS
SUBTITLE C. RAILROADS GENERALLY
CHAPTER 111. REGULATION BY TEXAS DEPARTMENT OF TRANSPORTATION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 111.001. DEFINITION OF PERSON. In this chapter:
(1) “person” includes a corporation, as provided by
Section 312.011, Government Code; and
(2) the definition of “person” assigned by Section
311.005, Government Code, does not apply. (New.)
Sec. 111.002. POWER AND AUTHORITY. To the extent not
preempted by federal law, the department:
(1) has power and authority over:
(A) railroads, including suburban, belt, and
terminal railroads;
(B) public wharves, docks, piers, elevators,
warehouses, sheds, tracks, and other property used in connection
with railroads; and
(C) persons, associations, and private or
municipal corporations that own or operate a railroad, or a wharf,
dock, pier, elevator, warehouse, shed, track, or other property
used in connection with a railroad; and
(2) shall govern and regulate those railroads,
persons, associations, and corporations and prevent abuses in the
conduct of their business. (V.A.C.S. Art. 6445, Subsec. (a).)
Sec. 111.003. TRANSFER OF RAILROAD AUTHORITY. On October
1, 2005, all powers and duties of the Railroad Commission of Texas
that related primarily to railroads and the regulation of railroads
and that existed on that date were transferred to the department, as
provided by Chapter 281, Acts of the 79th Legislature, Regular
Session, 2005. (V.A.C.S. Art. 6445, Subsec. (b).)
Sec. 111.004. REFERENCE TO RAILROAD COMMISSION. Any
reference in law to the Railroad Commission of Texas that relates
primarily to railroads and the regulation of railroads means the
department. (V.A.C.S. Art. 6445, Subsec. (c).)
[Sections 111.005-111.050 reserved for expansion]
SUBCHAPTER B. REGULATION OF RAILROADS BY DEPARTMENT
Sec. 111.051. INSPECTION OF BOOKS AND PAPERS; PENALTY.
(a) A member of the commission or a person authorized in writing by
a member of the commission under the hand and seal of the department
may at any time:
(1) inspect the books and papers of a railroad
company; and
(2) examine under oath a railroad company officer,
agent, or employee in relation to the business and affairs of the
company.
(b) A railroad company that refuses to permit an examination
of the company’s books and papers under Subsection (a) is liable to
the state, for each violation, for a penalty of not less than $125
or more than $500 for each day the company fails or refuses to
permit the examination.
(c) An officer, agent, or employee of a railroad company who
possesses or controls any book or paper of the company commits an
offense if, after proper demand, the officer, agent, or employee
fails or refuses to exhibit, to any member of the commission or any
person authorized to investigate, the book or paper. An offense
under this subsection is a misdemeanor punishable by a fine of not
less than $125 or more than $500. (V.A.C.S. Arts. 6464, 6465,
6559i-1.)
Sec. 111.052. INFORMATION SOLICITED BY DEPARTMENT.
(a) The department shall as often as necessary provide each
railroad company a questionnaire designed to elicit all information
concerning the railroad.
(b) A railroad company receiving a questionnaire under
Subsection (a) shall properly fill out the questionnaire and answer
each question fully and correctly. A railroad company that is
unable to answer a question shall give satisfactory reason for the
inability to answer.
(c) A railroad company shall return the completed
questionnaire, sworn to by the proper officer of the company, to the
department not later than the 30th day after the date the company
received the questionnaire. (V.A.C.S. Art. 6467.)
Sec. 111.053. REFUSAL TO ANSWER BY RAILROAD COMPANY OFFICER
OR EMPLOYEE; CRIMINAL PENALTY. (a) An officer or employee of a
railroad company commits an offense if the officer or employee:
(1) fails or refuses to fill out and return a
questionnaire to the department as required by law;
(2) fails or refuses to answer any question in a
questionnaire;
(3) gives a false answer to any question in a
questionnaire if the answer to the question is within the officer’s
or employee’s knowledge; or
(4) evades the answer to any question in a
questionnaire.
(b) An offense under this section is a misdemeanor
punishable by a fine of $500 for each day that the officer or
employee violates this section after the date the questionnaire is
due to the department. (V.A.C.S. Art. 6559i-2.)
Sec. 111.054. REFUSAL TO ANSWER BY RAILROAD COMPANY;
PENALTY. (a) A railroad company is liable to the state for a
penalty of $500 if:
(1) an officer or employee of the company:
(A) fails or refuses to fill out and return a
questionnaire under Section 111.052;
(B) fails or refuses to answer a question in a
questionnaire under Section 111.052;
(C) gives a false answer to a question in a
questionnaire under Section 111.052 and the fact inquired of is
within the officer’s or employee’s knowledge; or
(D) evades the answer to such a question in a
questionnaire under Section 111.052; and
(2) it appears that the officer or employee acted in
obedience to the company’s direction, permission, or request in the
officer’s or employee’s failure, refusal, or evasion.
(b) The department may prescribe a system of bookkeeping to
be observed by each railroad company that receives a questionnaire
under Section 111.052, under the penalties of Subsection (a).
(V.A.C.S. Art. 6468.)
Sec. 111.055. WITNESSES. (a) This section applies only to
the extent that it does not conflict with Chapter 2001, Government
Code.
(b) In an examination or investigation under this chapter,
the department may compel the attendance of witnesses and may issue
subpoenas for witnesses in accordance with rules prescribed by the
department. The officer to whom process is directed shall serve it.
(c) A witness who appears before the department by order of
the department at a place outside the county where the witness
resides is entitled to receive for the witness’s attendance:
(1) $1 for each day; and
(2) three cents for each mile the witness travels, by
the nearest practical route, in going to and returning from that
place.
(d) On the presentation of proper vouchers, sworn to by the
witness and approved by the department, the comptroller shall pay
the witness the amount to which the witness is entitled.
(e) A witness is not entitled to fees or mileage if, when
summoned at the request of a railroad, the witness:
(1) is directly or indirectly interested in the
railroad;
(2) is in any way interested in stock, a bond, a
mortgage, or a security, or the earnings of the railroad; or
(3) was an officer, agent, or employee of the
railroad.
(f) A witness furnished with free transportation may not
receive pay for the distance the witness travels on the free
transportation.
(g) The department may issue an attachment as in civil cases
for a witness who fails or refuses to obey a subpoena and may compel
the witness to appear before the department and testify on a matter
as the department requires.
(h) If a witness, after being summoned, fails or refuses to
attend or to answer a question asked of the witness that the witness
would be required to answer if in court, the department may fine and
imprison the witness for contempt in the same manner that a judge of
the district court might do under similar circumstances.
(i) The claim that testimony might tend to incriminate the
person giving the testimony does not excuse a witness from
testifying, but the evidence or testimony may not be used against
the witness in a criminal trial. (New; V.A.C.S. Art. 6471.)
Sec. 111.056. DEPOSITIONS. (a) The department may in its
discretion issue process to take the testimony of a witness by a
written or oral deposition instead of compelling the personal
attendance of the witness.
(b) An officer executing process issued under a provision of
this subtitle or Subtitle D may charge a fee as determined by the
department, not to exceed fees prescribed by law for similar
services. (V.A.C.S. Art. 6472.)
Sec. 111.057. PENALTY NOT OTHERWISE PROVIDED. A railway
company doing business in this state is liable to the state for a
penalty of not more than $5,000 each time the railway company:
(1) violates any provision of this subtitle or
Subtitle D or fails or refuses to perform any duty imposed upon it
for which a penalty has not been provided by law; or
(2) fails, neglects, or refuses to obey any
requirement, order, judgment, or decree of the department.
(V.A.C.S. Art. 6476.)
Sec. 111.058. SUITS FOR PENALTY. (a) For a penalty
provided under this chapter that is recoverable by the state, the
attorney general, or an attorney acting under the direction of the
attorney general, may bring suit in the name of the state in:
(1) Travis County; or
(2) any county in or through which the railroad runs.
(b) The attorney bringing a suit under this section is
entitled to receive:
(1) a fee to be paid by the state of $50 for each
penalty recovered and collected by the attorney; and
(2) 10 percent of the amount collected.
(c) In all suits arising under this chapter or Section
112.003, the rules of evidence shall be the same as in ordinary
civil actions, except as otherwise provided by this chapter.
(V.A.C.S. Art. 6477 (part).)
[Sections 111.059-111.100 reserved for expansion]
SUBCHAPTER C. DEPARTMENT SAFETY REGULATION
Sec. 111.101. IMPLEMENTATION OF FEDERAL SAFETY LAWS; FEES.
(a) The department may perform any act, adopt any rules, and issue
any orders as permitted by the Federal Railroad Safety Act of 1970,
originally codified as 45 U.S.C. Sections 421, 431 et seq. and
recodified in 1994 as 49 U.S.C. Sections 20101-20117, 20131,
20133-20141, 20143, 21301, 21302, 21304, 21311, 24902, and 24905
and Sections 4(b)(1), (i), and (t) of Pub. L. No. 103-272.
(b) The department by rule shall:
(1) adopt reasonable fees to be assessed annually
against railroads operating within the state; and
(2) establish the method by which the fees are
calculated and assessed.
(c) The total amount of fees estimated to be collected by
rules adopted by the department under this section may not exceed
the amount estimated by the department to be necessary to recover
the costs of administering the department’s rail safety program.
(d) In adopting a fee structure, the department may consider
the gross ton miles for railroad operations within this state for
each railroad operating in the state to provide for the equitable
allocation among railroads of the cost of administering the
department’s rail safety program.
(e) A fee collected under this section shall be deposited to
the credit of the general revenue fund to be used for the rail
safety program. (V.A.C.S. Art. 6448a.)
Sec. 111.102. HAZARDOUS MATERIALS INSPECTIONS. (a) The
department may enter private property on which a railroad facility
that is connected to but not a part of a general railroad system of
transportation is located at a reasonable time and in a reasonable
manner to perform an inspection, investigation, or surveillance of
facilities, equipment, records, and operations relating to the
packaging, loading, or transportation of hazardous materials to
determine whether the railroad facility complies with the
applicable safety requirements of this chapter or a rule adopted
under this chapter.
(b) In performing an inspection under this section, the
department may not require a railroad facility owner or operator to
alter or cease rail operations.
(c) Any inspection, investigation, or surveillance
performed on the site of a manufacturing facility shall be
performed in compliance with the safety rules of the facility,
including a rule regarding security clearance at the front gate if
appropriate. (V.A.C.S. Art. 6448b.)
CHAPTER 112. POWERS AND DUTIES OF RAILROADS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 112.001. DEFINITION OF PERSON
Sec. 112.002. GENERAL RIGHTS OF RAILROADS
Sec. 112.003. DAMAGES
[Sections 112.004-112.050 reserved for expansion]
SUBCHAPTER B. ACQUISITION AND USE OF PROPERTY BY RAILROAD OR OF RAILROAD
RAILROAD
Sec. 112.051. ENTRY ONTO PRIVATE PROPERTY
Sec. 112.052. ACQUISITION OF PROPERTY FOR CHANGE,

LINE
Sec. 112.053. CONDEMNATION OF PROPERTY: WHEN RAILROAD
COMPANY AND OWNER DISAGREE
Sec. 112.054. CONDEMNATION OF PROPERTY: CERTAIN
TERMINAL SWITCHING RAILROADS
Sec. 112.055. RIGHT-OF-WAY ACQUIRED BY CONDEMNATION
Sec. 112.056. CONDEMNATION OF PROPERTY FOR CERTAIN
ROADS
Sec. 112.057. CONSTRUCTION ON OR NEAR CERTAIN
WATERWAYS OR ROADS
Sec. 112.058. INTERSECTION OF RAIL LINE AND ROAD OR
STREET
Sec. 112.059. CROSSINGS OF PUBLIC ROADS
Sec. 112.060. CONVERSION OF PROPERTY IN CUSTODY OF
RAILROAD COMPANY
Sec. 112.061. SUIT INVOLVING RAILROAD COMPANY PROPERTY
Sec. 112.062. RAILROAD COMPANY PROPERTY SUBJECT TO EXECUTION;
CHARACTERIZATION OF ROLLING STOCK
[Sections 112.063-112.100 reserved for expansion]
SUBCHAPTER C. SAFETY
Sec. 112.101. CATTLE GUARDS
Sec. 112.102. LIABILITY FOR DEATH OR INJURY TO STOCK
Sec. 112.103. DUTY TO STOP AND RENDER AID; OFFENSE
[Sections 112.104-112.150 reserved for expansion]
SUBCHAPTER D. LIABILITY FOR INJURIES TO EMPLOYEES
Sec. 112.151. APPLICABILITY OF SUBCHAPTER
Sec. 112.152. LIABILITY GENERALLY FOR INJURY TO OR
DEATH OF EMPLOYEE
Sec. 112.153. CONTRIBUTORY NEGLIGENCE
Sec. 112.154. ASSUMED RISK
Sec. 112.155. CERTAIN PROVISIONS VOID
Sec. 112.156. LIABILITY OFFSET
Sec. 112.157. CONSTRUCTION OF CERTAIN SECTIONS
Sec. 112.158. INJURY TO FELLOW SERVANT
CHAPTER 112. POWERS AND DUTIES OF RAILROADS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 112.001. DEFINITION OF PERSON. In this chapter:
(1) “person” includes a corporation, as provided by
Section 312.011, Government Code; and
(2) the definition of “person” assigned by Section
311.005, Government Code, does not apply. (New.)
Sec. 112.002. GENERAL RIGHTS OF RAILROADS. (a) A railroad
company has the right to succession.
(b) A railroad company may:
(1) sue, be sued, plead, and be impleaded in its
corporate name;
(2) have and use a seal and alter the seal at will;
(3) receive and convey persons and property on its
railway by any mechanical power, including the use of steam;
(4) regulate the time and manner in which, and the
compensation for which, passengers and property are transported,
subject to the provisions of law;
(5) exercise the power of eminent domain for the
purposes prescribed by this subtitle or Subtitle D;
(6) purchase, hold, and use all property as necessary
for the construction and use of its railway, stations, and other
accommodations necessary to accomplish company objectives, and
convey that property when no longer required for railway use; and
(7) take, hold, and use property granted to the
company to aid in the construction and use of its railway, and
convey that property in a manner consistent with the terms of the
grant when the property is no longer required for railway use.
(V.A.C.S. Art. 6341.)
Sec. 112.003. DAMAGES. A railroad subject to this subtitle
or Subtitle D is liable to a person, firm, or corporation injured
for the damages resulting from:
(1) a prohibited or unlawful act or thing that the
railroad does or causes or permits to be done; or
(2) failure of the railroad to perform an act the
railroad is required to perform under this subtitle or Subtitle D.
(V.A.C.S. Art. 6475.)
[Sections 112.004-112.050 reserved for expansion]
SUBCHAPTER B. ACQUISITION AND USE OF PROPERTY BY RAILROAD OR OF
RAILROAD
Sec. 112.051. ENTRY ONTO PRIVATE PROPERTY. (a) A railroad
company is entitled to make an examination and survey for the
company’s proposed railway, to be performed as necessary to select
the most advantageous route for the proposed railway, and, subject
to Subsection (c), may enter on the lands or waters of any person or
corporation for that purpose.
(b) A railroad company is responsible for any damages
arising from an examination or survey under this section.
(c) Except for the purposes of performing a lineal survey, a
railroad company may not enter on private real property for the
purpose of condemning the property or any material on the property
for any purpose until the company agrees with and pays the owner of
the property all damages that may be caused to the owner’s property
by the condemnation of the property and by the construction of the
company’s road. (V.A.C.S. Arts. 6318, 6337.)
Sec. 112.052. ACQUISITION OF PROPERTY FOR CHANGE,
RELOCATION, OR ABANDONMENT OF RAILROAD LINE. (a) Subject to
Subsection (b), a railroad company or a receiver of a railroad that
changes, relocates, or abandons a line of railroad in this state may
acquire by condemnation or otherwise land for:
(1) right-of-way;
(2) depot grounds;
(3) shops;
(4) roundhouses;
(5) water supply sites;
(6) sidings;
(7) switches;
(8) spurs; or
(9) any other purpose connected with or necessary to
the building or operating of the line of railroad, as changed,
relocated, or abandoned.
(b) Property acquired under this section must be declared
for and charged with public use. (V.A.C.S. Art. 6351.)
Sec. 112.053. CONDEMNATION OF PROPERTY: WHEN RAILROAD
COMPANY AND OWNER DISAGREE. (a) A railroad company may acquire
property by condemnation if the company cannot agree with the owner
for the purchase of the property and the property is required for
any of the following purposes:
(1) the incorporation of the railroad;
(2) the transaction of company business;
(3) depots, station buildings, and machine and repair
shops;
(4) the construction of reservoirs for the water
supply;
(5) the right-of-way, or new or additional
right-of-way;
(6) a change or relocation;
(7) a roadbed;
(8) the shortening of a line;
(9) the reduction of grades;
(10) the double tracking of the railroad or the
construction and operation of tracks; or
(11) any other purpose connected with or necessary to
the building, operating, or running of the railroad.
(b) A railroad company may not, under this section, condemn
property that is located more than two miles from the company’s
right-of-way. (V.A.C.S. Art. 6336.)
Sec. 112.054. CONDEMNATION OF PROPERTY: CERTAIN TERMINAL
SWITCHING RAILROADS. (a) This section applies only to the
condemnation of property for a terminal switching railroad that:
(1) handles fewer than 10,000 but more than 3,000
carloads a year; and
(2) operates in a single county that:
(A) has a population of 110,000 or more;
(B) is not adjacent to the Texas border; and
(C) does not contain a portion of a national
forest.
(b) The power to condemn property given to a railroad
company under this subtitle or Subtitle D, including Section
112.052 or 112.053, does not apply to any property used for or
designated under local zoning regulations for residential use
unless the use of the condemned property is authorized under or in
conformity with local zoning or development regulations. (V.A.C.S.
Art. 6336a.)
Sec. 112.055. RIGHT-OF-WAY ACQUIRED BY CONDEMNATION.
(a) A right-of-way that a railway company in this state acquires
by condemnation does not include a fee simple estate in public or
private land.
(b) A right-of-way that a railway company acquires by
condemnation is not lost on forfeiture or expiration of the railway
company’s charter. The right-of-way remains subject to an
extension of the charter or the grant of a new charter, and a new
condemnation of the way is not required. (V.A.C.S. Art. 6339.)
Sec. 112.056. CONDEMNATION OF PROPERTY FOR CERTAIN ROADS.
(a) Subject to Subsection (b), a corporation created to build,
maintain, and operate a line of railroads to a mine, gin, quarry,
manufacturing plant, or mill may acquire by condemnation land
necessary for the right-of-way for a road connecting the mine, gin,
quarry, manufacturing plant, or mill to the nearest line of
railroad.
(b) The corporation may condemn property under this section
only if the corporation declares itself a common carrier and its
railroads public highways, placing the road under the control of
the department. (V.A.C.S. Art. 6550.)
Sec. 112.057. CONSTRUCTION ON OR NEAR CERTAIN WATERWAYS OR
ROADS. (a) A railroad company may construct the company’s road
across, along, or on any stream of water, water course, street,
highway, turnpike, or canal where the route of the company’s
railway intersects or touches the stream, water course, street,
highway, turnpike, or canal.
(b) The railroad company shall:
(1) restore the stream, water course, street, highway,
turnpike, or canal to its former state or to a state in which its
usefulness is not unnecessarily impaired; and
(2) keep the crossing in repair. (V.A.C.S. Art.
6320.)
Sec. 112.058. INTERSECTION OF RAIL LINE AND ROAD OR STREET.
Sections 112.051, 112.053, 112.054, 112.055, 112.057, 112.059, and
112.061 do not affect a law that requires a railroad company to
provide a proper crossing at each intersection of a road or street.
(V.A.C.S. Art. 6326.)
Sec. 112.059. CROSSINGS OF PUBLIC ROADS. (a) Each
railroad company in this state shall place and keep the portion of
the company’s roadbed and right-of-way over or across which a
public county road runs in proper condition for the use of the
traveling public.
(b) A railroad company is liable for a penalty of $10 for
each week the company does not comply with the requirements of this
section if:
(1) the overseer of a public road gives written notice
to the company’s person responsible for maintaining the area where
the work is needed; and
(2) the company fails to complete the work or repairs
within 30 days after the date written notice is given under
Subdivision (1).
(c) A county attorney, on the making of an affidavit of the
facts by any person, shall immediately institute a suit against the
railroad company to recover the penalty provided by this section. A
county attorney’s wilful failure or refusal to comply with this
subsection is sufficient cause for the county attorney to be
removed from office unless it is evident that the suit could not
have been maintained.
(d) A proceeding under this section shall be conducted in
the name of the county and in the same manner as a proceeding in a
civil suit.
(e) A county attorney is entitled to a fee of $10, taxed as
costs, for each suit maintained by the county attorney under this
section. If two or more penalties are sought in the same suit only
one fee may be recovered under this subsection.
(f) If the county is cast in the suit, the county may not be
charged costs.
(g) A penalty collected under this section shall be
deposited in the road and bridge fund of the county in which the
suit is brought. (V.A.C.S. Art. 6327.)
Sec. 112.060. CONVERSION OF PROPERTY IN CUSTODY OF RAILROAD
COMPANY. (a) A railroad company in this state or a receiver of a
railroad company in this state may not confiscate or otherwise
convert to the company’s or receiver’s own use, in whole or in
substantial part, a carload shipment of any article or commodity of
freight traffic received by the company or receiver for
transportation and delivery without the express consent of the
owner or consignee of the shipment.
(b) An act of an agent, officer, or employee of a railroad
company or receiver under this section that is within the apparent
scope of the agent’s, officer’s, or employee’s duties or authority
with respect to the confiscation or conversion is considered to be
an act of the company or receiver.
(c) This section does not apply to a conversion of freight
that has been damaged or intermingled with other freight in wrecks,
or to refused or unclaimed freight, that the railroad is unable to
deliver.
(d) In addition to all other remedies or penalties that may
be provided by law, a railroad company or receiver that violates
this section is subject to:
(1) a penalty in favor of the state of not less than
$125 or more than $500; and
(2) an additional penalty in favor of the owner or
consignee of the converted shipment equal to twice the amount of the
purchase price of the converted shipment. (V.A.C.S. Arts. 6366,
6367.)
Sec. 112.061. SUIT INVOLVING RAILROAD COMPANY PROPERTY.
(a) If a railroad company is sued for property occupied by the
company for railroad purposes or for damages to property occupied
by the company for railroad purposes, the court in which the suit is
pending may determine all matters in dispute between the parties,
including the condemnation of the property, on petition or cross
bill by the defendant requesting that remedy.
(b) A plea for condemnation under Subsection (a) is
considered an admission of the plaintiff’s title to the property.
(V.A.C.S. Art. 6338.)
Sec. 112.062. RAILROAD COMPANY PROPERTY SUBJECT TO
EXECUTION; CHARACTERIZATION OF ROLLING STOCK. (a) All or any part
of a railroad company’s real and personal property is subject to
execution and sale in the same manner as the property of
individuals.
(b) No portion of a railroad company’s real or personal
property is exempt from execution and sale.
(c) The rolling stock and all other movable property
belonging to a railroad company is considered personal property.
(V.A.C.S. Art. 6420.)
[Sections 112.063-112.100 reserved for expansion]
SUBCHAPTER C. SAFETY
Sec. 112.101. CATTLE GUARDS. (a) A railroad company whose
railroad passes through a field or enclosure shall construct and
keep in good repair a good and sufficient cattle guard or stop at
each location the railroad enters the field or enclosure.
(b) If a field or enclosure through which a railway passes
is enlarged or extended, or the owner of any land over which a
railway runs clears and opens a field so as to include the track of a
railway, the railroad company shall construct and keep in repair
good and sufficient cattle guards or stops at the borders of the
extended enclosures or fields or the new fields.
(c) A cattle guard or stop required by this section shall be
constructed and kept in repair to protect the fields and enclosures
from the depredations of stock of any kind.
(d) If a railroad company fails to construct and keep in
repair a cattle guard or stop required by this section, the owner of
the enclosure or field may:
(1) have the required cattle guards or stops
constructed at the proper places and kept in repair; and
(2) recover from the company the costs of constructing
or repairing the required cattle guards or stops, unless it is shown
that the enlargement or extension was made capriciously and with
intent to harass and molest the company.
(e) A railroad company that neglects to construct or keep in
repair a proper cattle guard or stop as required by this section is
liable to a party injured by the neglect for all damages that may
result from the neglect. The injured party may seek to recover the
damages by filing suit. (V.A.C.S. Art. 6400.)
Sec. 112.102. LIABILITY FOR DEATH OR INJURY TO STOCK.
(a) Subject to Subsection (b), a railroad company is liable to the
owner for the value of all stock killed or injured by the company’s
locomotives and cars operating over the company’s railways,
regardless of whether the county or subdivision of a county in which
the death or injury occurs has, under Subchapter B or D, Chapter
143, Agriculture Code, prohibited certain animals from running at
large.
(b) A railroad company that fences its railway is liable
only for injury to stock that results from a want of ordinary care.
(V.A.C.S. Art. 6402.)
Sec. 112.103. DUTY TO STOP AND RENDER AID; OFFENSE. (a) In
this section, “operator” means the person assigned by a railroad
company to be responsible for the operation of a train.
(b) An operator who is involved, while operating a
locomotive, in an accident resulting in injury to or death of a
person or damage to a vehicle that is driven or attended by a person
shall immediately stop the locomotive at the scene of the accident.
(c) The operator shall render to a person injured in the
accident reasonable assistance, including transporting, or the
making of arrangements for transporting, the person to a physician,
surgeon, or hospital for medical or surgical treatment if it is
apparent that treatment is necessary or if the injured person
requests transportation.
(d) A person who violates this section commits an offense.
An offense under this subsection is a Class C misdemeanor.
(V.A.C.S. Art. 6419b; New.)
[Sections 112.104-112.150 reserved for expansion]
SUBCHAPTER D. LIABILITY FOR INJURIES TO EMPLOYEES
Sec. 112.151. APPLICABILITY OF SUBCHAPTER.
Notwithstanding any other law, this subchapter does not apply to
the portion of a person’s, receiver’s, or corporation’s operations
that:
(1) consists solely of the fabrication, manufacture,
repair, or storage of rail rolling stock; or
(2) uses rail cars solely as a part of its own internal
manufacturing or production process. (V.A.C.S. Art. 6432A.)
Sec. 112.152. LIABILITY GENERALLY FOR INJURY TO OR DEATH OF
EMPLOYEE. (a) A corporation, receiver, or other person operating
a railroad in this state is liable for damages to a person who,
while employed by the railroad operator, is injured as a result of:
(1) the negligence of an officer, agent, or employee
of the railroad operator; or
(2) any defect or insufficiency due to the railroad
operator’s negligence in its cars, engines, appliances, machinery,
track, roadbed, works, boats, wharves, or other equipment.
(b) If an employee dies as a result of the negligence,
defect, or insufficiency described by Subsection (a), the railroad
operator is liable to the employee’s personal representative for
the benefit of the employee’s surviving spouse and children and the
employee’s parents or, if the employee is not survived by a spouse,
child, or parent, to the employee’s next of kin who is dependent on
the employee.
(c) Damages recovered under Subsection (b) are not liable
for the debts of the deceased and shall be divided among the persons
entitled to the benefit of the action who are living, in shares the
fact finder considers proper.
(d) An action under Subsection (b) may be brought without
administration by all parties entitled to damages under that
subsection, or by any one or more of those parties, for the benefit
of all of those parties. If all parties entitled to recover are not
before the court, the action may proceed for the benefit of the
parties who are before the court. (V.A.C.S. Art. 6439.)
Sec. 112.153. CONTRIBUTORY NEGLIGENCE. (a) In an action
under Section 112.152, the employee’s contributory negligence is
not a bar to recovery but the fact finder shall reduce the
employee’s damages in proportion to the amount of contributory
negligence attributable to the employee.
(b) An employee may not be found contributorily negligent in
a case in which the railroad operator’s violation of a statute
enacted for the safety of employees contributed to the employee’s
injury or death. (V.A.C.S. Art. 6440.)
Sec. 112.154. ASSUMED RISK. (a) The plea of assumed risk
is not available as a bar to recovery of damages in a suit brought in
a court in this state against a corporation, receiver, or other
person operating a railroad, interurban railway, or street railway
in this state for the recovery of damages for the death of or
personal injury to an employee caused by the wrong or negligence of
the railroad or railway operator. An employee assumes the ordinary
risk incident to the employee’s employment but does not assume the
risk resulting from any negligence of the employee’s employer,
regardless of whether the negligence is known to the employee.
(b) If in a suit described by Subsection (a) it is alleged
and proven that the deceased or injured employee was negligent in
continuing in the service of the railroad or railway operator in
view of the risk, dangers, and hazards of which the employee knew or
must necessarily have known, in the ordinary performance of the
employee’s duties, that fact does not bar the employee’s recovery,
but is considered contributory negligence. If contributory
negligence described by this subsection proximately caused or
contributed to the cause of the death or injury, the damages
recoverable by the employee or the employee’s heirs or
representatives shall be reduced only in proportion to the amount
of negligence attributable to the employee.
(c) An employee of a railway company who is injured while
engaged in the operation of a train in this state that is propelled
by two or more engines is not considered to have assumed the risk of
that injury if the injury is a result of the operation of two or more
engines on the train rather than one.
(d) In an action against a railroad operator under Section
112.152, an employee may not be held to have assumed the risk of the
employee’s employment in a case in which the railroad operator’s
violation of a statute enacted for the safety of employees
contributed to the employee’s injury or death. (V.A.C.S. Arts.
6437, 6438, 6441.)
Sec. 112.155. CERTAIN PROVISIONS VOID. A provision of a
contract, rule, or device the purpose of which is to exempt a
railroad operator from liability under Section 112.152 is void to
the extent of the purported exemption. (V.A.C.S. Art. 6442
(part).)
Sec. 112.156. LIABILITY OFFSET. In an action against a
railroad operator under Section 112.152, the railroad operator may
offset the railroad operator’s liability by the amount of the
railroad operator’s contribution or payment to any insurance,
relief benefit, or indemnity from which benefits have been paid to
the injured employee or another person entitled to the benefits as a
result of the injury or death that is the subject of the action.
(V.A.C.S. Art. 6442 (part).)
Sec. 112.157. CONSTRUCTION OF CERTAIN SECTIONS.
(a) Sections 112.152, 112.153, 112.154(d), 112.155, and 112.156
do not:
(1) limit the duty or liability of a railroad operator
or impair the rights of an employee under the Revised Statutes of
1925; or
(2) affect a right of action under another law of this
state.
(b) Except as provided by Section 112.151, a section listed
in Subsection (a) controls over any other provision of the Revised
Statutes of 1925 with which it conflicts. (V.A.C.S. Art. 6443.)
Sec. 112.158. INJURY TO FELLOW SERVANT. (a) This section
applies only to a corporation, receiver, or other person that
controls or operates a railroad or street railway the line of which
is located wholly or partly in this state.
(b) An entity described by Subsection (a) is liable for
damages sustained by an employee of the entity while the employee is
engaged in the work of operating the cars, locomotives, or trains of
the entity as a result of the negligence of any other employee of
the entity, regardless of whether the negligent employee and the
employee who sustained the damages are considered fellow servants.
(c) Persons who are engaged in the common service of an
entity described by Subsection (a) are considered fellow servants
only if the persons are:
(1) employed in the same grade of employment;
(2) doing the same character of work or service; and
(3) working together at the same time and place and at
the same piece of work for a common purpose.
(d) A person engaged in the service of an entity described
by Subsection (a) is considered a vice principal of that entity if
the person is entrusted by the entity with the authority of
superintendence, control, or command of the other employees of the
entity, with the authority to direct any other employee in the
performance of any duty of the employee.
(e) A vice principal of an entity described by Subsection
(a) is not considered a fellow servant with other employees of the
entity.
(f) A contract between an employer and employee that limits
the employer’s liability under this section in the event of the
death of or injury to the employee or setting damages that may be
recovered under this section is not valid or binding.
(g) This section does not impair or diminish the defense of
contributory negligence if the injury of the employee is
proximately caused by the employee’s own contributory negligence.
(V.A.C.S. Arts. 6432, 6433, 6434, 6435, 6436.)
[Chapters 113-130 reserved for expansion]
SUBTITLE D. MISCELLANEOUS RAILROADS
CHAPTER 131. MISCELLANEOUS RAILWAYS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 131.001. DEFINITION OF PERSON
[Sections 131.002-131.010 reserved for expansion]
SUBCHAPTER B. ELECTRIC RAILWAYS
Sec. 131.011. DEFINITION
Sec. 131.012. EMINENT DOMAIN
Sec. 131.013. RIGHT-OF-WAY
Sec. 131.014. CONSTRUCTION OF RAILWAY ALONG OR OVER
WATERWAY OR INFRASTRUCTURE
Sec. 131.015. USE OF ELECTRIC STREET RAILWAY TRACKS
Sec. 131.016. TIME REQUIRED FOR CONSTRUCTION
Sec. 131.017. USE OF CONDEMNED TRACK
[Sections 131.018-131.030 reserved for expansion]
SUBCHAPTER C. MERGER OF INTERURBAN RAILWAY
Sec. 131.031. DEFINITION
Sec. 131.032. ACQUISITION OF RAILWAY PROPERTY
AUTHORIZED
Sec. 131.033. MUNICIPAL CONSENT REQUIRED
Sec. 131.034. USE OF STREET RAILWAYS
Sec. 131.035. LIMITATION ON ACQUISITION
[Sections 131.036-131.060 reserved for expansion]
SUBCHAPTER D. PROVISION OF UTILITIES
Sec. 131.061. INTERURBAN ELECTRIC RAILWAYS
Sec. 131.062. SUPPLY AND SALE OF ELECTRICITY BY
STREET, SUBURBAN, OR BELT LINE RAILWAY
[Sections 131.063-131.100 reserved for expansion]
SUBCHAPTER E. REDUCED STREET RAILWAY FARES
Sec. 131.101. APPLICABILITY
Sec. 131.102. CHILDREN YOUNGER THAN 13 YEARS OF AGE
Sec. 131.103. STUDENTS
Sec. 131.104. CHILDREN YOUNGER THAN SIX YEARS OF AGE
Sec. 131.105. TRANSFER RIGHTS
[Sections 131.106-131.900 reserved for expansion]
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
Sec. 131.901. STREET AND SUBURBAN RAILWAYS
Sec. 131.902. FREIGHT INTERURBAN RAILWAYS
Sec. 131.903. BUILDINGS AND OTHER FACILITIES: CERTAIN
RAILWAYS
Sec. 131.904. MOTOR BUS LINES
SUBTITLE D. MISCELLANEOUS RAILROADS
CHAPTER 131. MISCELLANEOUS RAILWAYS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 131.001. DEFINITION OF PERSON. In this chapter:
(1) “person” includes a corporation, as provided by
Section 312.011, Government Code; and
(2) the definition of “person” assigned by Section
311.005, Government Code, does not apply. (New.)
[Sections 131.002-131.010 reserved for expansion]
SUBCHAPTER B. ELECTRIC RAILWAYS
Sec. 131.011. DEFINITION. In this subchapter, “interurban
electric railway company” means a corporation chartered under the
laws of this state to conduct and operate an electric railway
between two municipalities in this state. (V.A.C.S. Art. 6540
(part).)
Sec. 131.012. EMINENT DOMAIN. A corporation chartered for
the purpose of constructing, acquiring, maintaining, or operating
lines of electric railway between municipalities in this state for
the transportation of freight, passengers, or both freight and
passengers may:
(1) exercise the power of eminent domain with all the
rights and powers granted by law to a railroad company; and
(2) enter, condemn, and appropriate land,
right-of-way, easements, or other property of any person or
corporation to acquire:
(A) right-of-way on which to construct and
operate lines of railway for the acquiring corporation; or
(B) sites for depots or power plants. (V.A.C.S.
Art. 6535.)
Sec. 131.013. RIGHT-OF-WAY. (a) A corporation described
by Section 131.012 may:
(1) lay out right-of-way not to exceed 200 feet in
width for its railways;
(2) construct its railways and appurtenances on that
right-of-way; and
(3) with compensation being made in accordance with
law:
(A) take for the purpose of cuttings and
embankments additional land necessary for the proper construction
and security of its railways; and
(B) cut down any tree or remove any structure
that may be in danger of falling on or obstructing its railway.
(b) The corporation may:
(1) have an examination and survey of its proposed
railway made as necessary to select the most advantageous route;
and
(2) for the purposes of Subdivision (1), enter on the
land or water of any person or corporation, subject to
responsibility for all damages that may be caused by the entrance,
examination, or survey. (V.A.C.S. Art. 6536.)
Sec. 131.014. CONSTRUCTION OF RAILWAY ALONG OR OVER
WATERWAY OR INFRASTRUCTURE. (a) A corporation described by
Section 131.012 may construct its railway along, across, or over
any stream, water course, bay, navigable water, arm of the sea,
street, highway, steam railway, turnpike, or canal located in the
route of its electric railway.
(b) The corporation may erect and operate a bridge, tram,
trestle, or causeway, over, along, or across any stream, water
course, bay, navigable water, arm of the sea, street, highway,
turnpike, or canal described by Subsection (a).
(c) A bridge or other structure described by Subsection (b)
may not be erected so as to unnecessarily or unreasonably prevent
the navigation of the stream, water course, bay, arm of the sea, or
navigable water.
(d) This section does not authorize the construction of an
electric railway on or across a street, alley, square, or property
of a municipality without the consent of the governing body of the
municipality.
(e) Before constructing an electric railway along or on a
highway, turnpike, or canal, an interurban electric railway company
must obtain the consent of the authority having jurisdiction over
the highway, turnpike, or canal. (V.A.C.S. Art. 6537.)
Sec. 131.015. USE OF ELECTRIC STREET RAILWAY TRACKS.
(a) An interurban electric railway company’s power of eminent
domain under this subchapter includes the power to condemn for its
use and benefit easements and right-of-way to operate interurban
cars along and on the track of an electric street railway company
owning, controlling, or operating track on any public street or
alley in a municipality for a purpose described by Subsection (b),
subject to the consent, authority, and control of the governing
body of the municipality.
(b) Condemnation under Subsection (a) may be used only to
secure an entrance into and an outlet from a municipality on a route
designated by the governing body of the municipality.
(c) In a proceeding to condemn an easement or right-of-way
under this section, the court or the jury trying the case shall
define and establish the terms on which the easement or
right-of-way may be used.
(d) A court rendering a judgment in a proceeding under this
section may review and reform the terms of a grant and the
provisions of the judgment on a subsequent application by a party to
the original proceeding or a person claiming through or under a
party to the original proceeding.
(e) The hearing on an application brought under Subsection
(d) is in the nature of a retrial of the proceeding with respect to
the terms on which the easement may be used except that the court
may not declare the easement forfeited or impair the exercise of the
easement.
(f) An application under Subsection (d) may not be made
before the second anniversary of the date of the final judgment on
the most recent application. (V.A.C.S. Arts. 6538, 6539.)
Sec. 131.016. TIME REQUIRED FOR CONSTRUCTION. The rights
secured under this chapter by an interurban electric railway
company are void unless the road to be constructed under the charter
of the company is fully constructed from one municipality to
another within 12 months of the date of the final judgment awarding
the company an easement or right-of-way under Section 131.015.
(V.A.C.S. Art. 6540 (part).)
Sec. 131.017. USE OF CONDEMNED TRACK. (a) Unless the
company whose track is condemned under this subchapter consents, an
interurban electric railway company exercising the powers granted
under this chapter may not receive for transportation freight or
passengers at any location on the condemned track destined to
another location on the condemned track.
(b) A company that wilfully violates Subsection (a)
forfeits the easement or right-of-way used to provide the
transportation. (V.A.C.S. Art. 6540 (part).)
[Sections 131.018-131.030 reserved for expansion]
SUBCHAPTER C. MERGER OF INTERURBAN RAILWAY
Sec. 131.031. DEFINITION. In this subchapter, “interurban
railway” means an electric or other interurban line of railway in
this state. (V.A.C.S. Art. 6543 (part).)
Sec. 131.032. ACQUISITION OF RAILWAY PROPERTY AUTHORIZED.
(a) A corporation organized under the laws of this state that is
authorized to construct, acquire, and operate an interurban railway
may:
(1) acquire, lease, or purchase the physical property,
rights, and franchise of any other railway corporation with similar
powers; or
(2) lease or purchase physical property, rights, and
franchises of any suburban or street railway corporation the
railway lines of which are to be operated in connection with the
interurban railway.
(b) The owner of physical property or a right or franchise
described by Subsection (a)(1) or (2) may sell or dispose of the
property, right, or franchise to the corporation making an
acquisition, lease, or purchase under Subsection (a).
(c) An acquisition or purchase under this section may be on
the terms:
(1) agreed to by the board of directors of each
corporation; and
(2) authorized or approved by a majority of the
stockholders of each corporation. (V.A.C.S. Art. 6543 (part).)
Sec. 131.033. MUNICIPAL CONSENT REQUIRED. (a) Before
selling property under this subchapter, a corporation that owns or
operates a street car railway must obtain the consent of the
governing body of the municipality in which the street car line is
located.
(b) This subchapter does not affect a charter provision of a
municipality that provides for the right of qualified voters of the
municipality to vote on the granting or amending of franchise to a
street or interurban railway. (V.A.C.S. Art. 6543 (part).)
Sec. 131.034. USE OF STREET RAILWAYS. A corporation
authorized to construct, acquire, and operate an interurban railway
and a corporation owning and operating a street railway may enter
into a trackage or lease contract to allow for continuous passage
into or through a municipality, subject to the consent of the
governing body of the municipality. (V.A.C.S. Art. 6543 (part).)
Sec. 131.035. LIMITATION ON ACQUISITION. A corporation
described by this subchapter may not:
(1) acquire, own, control, or operate a parallel or
competing interurban line; or
(2) purchase, lease, acquire, own, or control,
directly or indirectly, the shares or certificates of stock or
bonds, a franchise or other right, or the physical property or any
part of the property, of any corporation in violation of the law
commonly known as the antitrust law. (V.A.C.S. Art. 6543 (part).)
[Sections 131.036-131.060 reserved for expansion]
SUBCHAPTER D. PROVISION OF UTILITIES
Sec. 131.061. INTERURBAN ELECTRIC RAILWAYS. An interurban
electric railway company, as defined by Section 131.011, is
entitled to produce, supply, and sell electric light and power to
the public and to municipalities. (V.A.C.S. Art. 6541.)
Sec. 131.062. SUPPLY AND SALE OF ELECTRICITY BY STREET,
SUBURBAN, OR BELT LINE RAILWAY. A corporation organized under the
general laws of this state that owns or operates with electric power
any street or suburban railway or belt line of railways in and near
a municipality for the transportation of freight and passengers
within this state may:
(1) supply and sell electric light and power to the
public or a municipality;
(2) acquire or otherwise provide appliances necessary
for an activity authorized by Subdivision (1); and
(3) in the manner provided by law, amend its articles
of incorporation to expressly include the authority under this
section. (V.A.C.S. Art. 6545 (part).)
[Sections 131.063-131.100 reserved for expansion]
SUBCHAPTER E. REDUCED STREET RAILWAY FARES
Sec. 131.101. APPLICABILITY. This subchapter applies only
to a person or corporation owning or operating a street railway in
or on the public streets of a municipality with a population of
40,000 or more. (V.A.C.S. Art. 6544 (part).)
Sec. 131.102. CHILDREN YOUNGER THAN 13 YEARS OF AGE.
(a) The owner or operator of a street railway shall transport a
child younger than 13 years of age for half the fare regularly
collected for the transportation of an adult.
(b) This section does not apply to the transportation of a
child to or from a school or other institution of learning located
one mile or more outside the corporate limits of the municipality in
which the street car operates. (V.A.C.S. Art. 6544 (part).)
Sec. 131.103. STUDENTS. (a) The owner or operator of a
street railway shall sell or provide for the sale of tickets for
half of the regular fare collected for the transportation of adults
to students younger than 18 years of age who attend academic,
public, or private school in a grade not higher than the highest
grade of the public high schools located in or adjacent to the
municipality in which the railway is located.
(b) Tickets under this section must be sold in lots of 20,
with each ticket valid for one trip over the railway lines.
(c) Tickets under this section are not required to be sold
unless the student making the purchase presents the written
certificate of the principal of the school the student attends
stating that the student:
(1) is younger than 18 years of age; and
(2) is in regular attendance at a school in a grade
that qualifies under Subsection (a).
(d) Tickets under this section are not required to be sold
and may not be used except during the months when a school
qualifying under Subsection (a) is in session.
(e) A student described by Subsection (a) shall be
transported at half fare only when the student presents a ticket
issued under this section. (V.A.C.S. Art. 6544 (part).)
Sec. 131.104. CHILDREN YOUNGER THAN SIX YEARS OF AGE. The
owner or operator of a street railway shall transport free of charge
a child younger than six years of age when attended by a passenger
who is at least six years of age. (V.A.C.S. Art. 6544 (part).)
Sec. 131.105. TRANSFER RIGHTS. The owner or operator of a
street railway shall offer a passenger paying a reduced fare or no
fare under this subchapter the same rights as to the use of
transfers issued by the owner or operator’s line or other lines as
offered to a passenger paying full fare. (V.A.C.S. Art. 6544
(part).)
[Sections 131.106-131.900 reserved for expansion]
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
Sec. 131.901. STREET AND SUBURBAN RAILWAYS. (a) Street
and suburban railways engaged in the transportation of freight in
and near a municipality are subject to the control of the
department.
(b) A street railway company is not exempt from payment of
assessments that may be imposed against it for street improvements.
(V.A.C.S. Art. 6545 (part).)
Sec. 131.902. FREIGHT INTERURBAN RAILWAYS. (a) An entity
incorporated as an electric, gas or gasoline, denatured alcohol, or
naphtha interurban or motor railway that engages in transporting
freight is subject to the control of the department.
(b) A corporation described by Subsection (a) is not exempt
from payment of assessments that may be imposed against it for
street improvements.
(c) An interurban railway described by Subsection (a):
(1) may exercise the same power of eminent domain as
given by law to railroads;
(2) may exercise the power of eminent domain to
acquire right-of-way on which to construct its railway lines and
sites for depots and power plants;
(3) has the same rights, powers, and privileges as
granted by law to an interurban electric railway company; and
(4) may acquire, hold, and operate other public
utilities in and adjacent to a municipality in or through which the
company operates.
(d) An interurban railway company described by Subsection
(a) may not condemn property on which is located a cemetery unless
it is affirmatively shown, and found by the court trying the
condemnation suit, that:
(1) it is necessary to take the property; and
(2) no other route is possible or practicable.
(V.A.C.S. Art. 6546.)
Sec. 131.903. BUILDINGS AND OTHER FACILITIES: CERTAIN
RAILWAYS. A corporation organized before September 1, 1925, under
any law of this state, that operates a line of electric, gas or
gasoline, denatured alcohol, or naphtha motor railway in and
between municipalities in this state, may:
(1) own and operate union depots and office buildings;
and
(2) acquire, hold, and operate electric light and
power plants in and adjacent to a municipality in or through which
the railway operates. (V.A.C.S. Art. 6547 (part).)
Sec. 131.904. MOTOR BUS LINES. (a) This section applies
only to a corporation authorized to operate a street or suburban
railway or an interurban railway and to carry passengers for hire.
(b) Subject to the approval of the governing body of the
municipality in which the corporation operates its railway, the
corporation may:
(1) substitute, wholly or partly, motor bus lines for
its railway; and
(2) maintain and operate automobile motor buses to
carry passengers for hire on:
(A) public roads, streets, plazas, alleys, and
highways within the corporate limits of a municipality under
regulations prescribed by the municipality; and
(B) public roads and highways that are located
outside the corporate limits of that municipality but within five
miles of the corporate limits, under regulations prescribed by the
commissioners court of the county.
(c) The substitution of motor buses or the discontinuance of
a railway under this section does not impair any corporate power of
a corporation incorporated before August 30, 1933, as a street or
interurban railway with respect to the operation of other public
utilities authorized by a corporate charter or statute in effect on
August 30, 1933.
(d) A corporation acting under this section must amend its
charter and pay any fee provided by law for the filing of the
amendment.
(e) This section may not be construed to impair the rights
of a municipality under a franchise granted to a corporation or its
predecessor before August 30, 1933. (V.A.C.S. Art. 6548 (part).)
SECTION 2.04. Subtitle I, Title 5, Transportation Code, is
amended by adding Chapters 172, 173, and 174 to read as follows:
CHAPTER 172. RURAL RAIL TRANSPORTATION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 172.001. DEFINITIONS
Sec. 172.002. NATURE OF DISTRICT
Sec. 172.003. FINDINGS
[Sections 172.004-172.050 reserved for expansion]
SUBCHAPTER B. CREATION
Sec. 172.051. APPLICABILITY
Sec. 172.052. CREATION OF DISTRICT BY MORE THAN ONE
COUNTY
Sec. 172.053. CREATION OF DISTRICT BY ONE COUNTY
Sec. 172.054. NOTICE OF CREATION
Sec. 172.055. AUTOMATIC ASSUMPTION OF CONTRACTUAL

DISTRICTS
[Sections 172.056-172.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
Sec. 172.101. CONTROL OF DISTRICT
Sec. 172.102. TERMS
Sec. 172.103. QUALIFICATIONS FOR OFFICE
Sec. 172.104. VACANCY
Sec. 172.105. REMOVAL
Sec. 172.106. OFFICERS
Sec. 172.107. MEETINGS; NOTICE
Sec. 172.108. RULES FOR PROCEEDINGS
Sec. 172.109. EMPLOYEES
Sec. 172.110. PECUNIARY INTEREST IN CERTAIN CONTRACTS
PROHIBITED
[Sections 172.111-172.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 172.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
FUNCTIONS
Sec. 172.152. RULES
Sec. 172.153. AGREEMENTS GENERALLY
Sec. 172.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
USE
Sec. 172.155. JOINT OWNERSHIP AGREEMENTS
Sec. 172.156. AWARDING CONSTRUCTION OR PURCHASE
CONTRACTS
Sec. 172.157. EMINENT DOMAIN
Sec. 172.158. DISPOSITION OF SURPLUS PROPERTY
Sec. 172.159. SUITS
Sec. 172.160. PERPETUAL SUCCESSION
[Sections 172.161-172.200 reserved for expansion]
SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
Sec. 172.201. GENERAL AUTHORITY OVER RAIL FACILITIES
Sec. 172.202. USE AND ALTERATION OF PROPERTY OF
ANOTHER POLITICAL SUBDIVISION
Sec. 172.203. RULES GOVERNING SYSTEM; ROUTINGS
Sec. 172.204. ACQUISITION OF PROPERTY
Sec. 172.205. POWERS RELATING TO DISTRICT PROPERTY
Sec. 172.206. ACQUISITION OF ROLLING STOCK AND OTHER
PROPERTY
Sec. 172.207. COMPENSATION FOR USE OF SYSTEM FACILITIES
Sec. 172.208. OPERATION OR USE CONTRACTS
Sec. 172.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
WITH OTHER POLITICAL SUBDIVISIONS
Sec. 172.210. ABANDONMENT OF RAIL LINE
[Sections 172.211-172.250 reserved for expansion]
SUBCHAPTER F. FINANCIAL PROVISIONS
Sec. 172.251. FISCAL YEAR
Sec. 172.252. ANNUAL BUDGET
Sec. 172.253. GRANTS AND LOANS
Sec. 172.254. DEPOSITORY
Sec. 172.255. APPLICABILITY OF PUBLIC PROPERTY
FINANCING LAW; PROHIBITION ON AD VALOREM TAX
Sec. 172.256. NONNEGOTIABLE PURCHASE MONEY NOTES; BOND
ANTICIPATION NOTES
Sec. 172.257. TAX EXEMPTION
[Sections 172.258-172.300 reserved for expansion]
SUBCHAPTER G. BONDS
Sec. 172.301. REVENUE BONDS
Sec. 172.302. SECURITY FOR PAYMENT OF BONDS
Sec. 172.303. BONDS AS AUTHORIZED INVESTMENTS
AND SECURITY FOR DEPOSITS OF PUBLIC FUNDS
Sec. 172.304. APPLICABILITY OF PUBLIC IMPROVEMENT
FINANCING LAW
Sec. 172.305. LIMIT ON POWER
Sec. 172.306. EXEMPTION FROM REVIEW OF NOTES BY
ATTORNEY GENERAL
CHAPTER 172. RURAL RAIL TRANSPORTATION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 172.001. DEFINITIONS. In this chapter:
(1) “Board” means a district’s board of directors.
(2) “Bonds” means:
(A) bonds;
(B) notes, including bond anticipation notes,
revenue anticipation notes, and grant anticipation notes;
(C) warrants;
(D) certificates of obligation;
(E) interest-bearing contracts;
(F) interest-bearing leases of property;
(G) equipment trust certificates;
(H) commercial paper; and
(I) any obligation issued to refund any type of
bond.
(3) “Director” means a board member.
(4) “District” means a rural rail transportation
district created under this chapter or under Chapter 623, Acts of
the 67th Legislature, Regular Session, 1981 (Article 6550c,
Vernon’s Texas Civil Statutes), as that chapter existed before
April 1, 2011.
(5) “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.
(6) “Maintenance and operating expenses” means all
expenses of operating and maintaining a district and its rail
facilities, including:
(A) all compensation, labor, materials, repairs,
and extensions necessary, required, or convenient in the board’s
discretion to render efficient service or to maintain and operate
the district; and
(B) taxes or other amounts paid, payable, or to
be paid to the United States under Section 148(f), Internal Revenue
Code of 1986, or any similar law.
(7) “Rail facilities” means:
(A) property, or an interest in that property,
that the board determines is necessary or convenient to provide a
rural rail transportation system; and
(B) property or an interest necessary or
convenient to acquire, provide, construct, enlarge, remodel,
renovate, improve, furnish, use, or equip the system, including:
(i) a right-of-way;
(ii) an earthwork or structure, including
clearing and grubbing of right-of-way, demolition of a structure,
relocation of utilities, a pipeline, or any other obstacle in a
right-of-way, stripping and stockpiling, removal of subsoil for
embankment or spoil, a borrow pit, dressing and seeding of a slope,
construction of a culvert, a road crossing, a bridge, restoration
of a roadway, drainage within a right-of-way or along a road
network, and restoration of a hydrologic system;
(iii) trackwork;
(iv) a train control, including signalling,
interlocking equipment, speed monitoring equipment, an emergency
braking system, a central traffic control facility, and a
communication system;
(v) a passenger or freight service
building, terminal, or station, a ticketing facility, a waiting
area, a platform, a concession, an elevator, an escalator, a
facility for handicapped access, an access road, a parking facility
for passengers, a baggage handling facility, a local maintenance
facility, and offices for district purposes and includes an
interest in real property necessary or convenient for an item
listed under this subparagraph;
(vi) rolling stock; and
(vii) a maintenance facility.
(8) “Revenue” means the 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.
(9) “Right-of-way” means:
(A) a right of passage over property;
(B) 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
(C) a right of precedential passing.
(10) “Rolling stock” means a locomotive, an engine, a
rail car, a repair construction car, or another car designed to
operate on trackwork.
(11) “Trackwork” means track, a track bed, track bed
preparation, a tie, a rail fastener, a slab, a rail, an emergency
crossover, a setout track, storage track, and a switch. (V.A.C.S.
Art. 6550c, Secs. 2(1), (2), (4), (5), (8), (9), (11), (12), (13),
(14), (15), (16), (17); New.)
Sec. 172.002. NATURE OF DISTRICT. (a) A district is a
public body and a political subdivision of this state exercising
public and essential governmental functions.
(b) A district, in the exercise of powers under this
chapter, is performing only governmental functions and is a
governmental unit under Chapter 101, Civil Practice and Remedies
Code. (V.A.C.S. Art. 6550c, Sec. 5(a) (part).)
Sec. 172.003. FINDINGS. The legislature finds that:
(1) the state contains many rural areas that are
heavily dependent on agriculture for economic survival;
(2) transportation of agricultural and 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 Section 2, Article X,
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 chapter 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 Section 52-a, Article III, Texas Constitution; and
(7) financing by rural rail transportation districts
for the purposes provided by this chapter is a lawful and valid
public purpose. (V.A.C.S. Art. 6550c, Sec. 1.)
[Sections 172.004-172.050 reserved for expansion]
SUBCHAPTER B. CREATION
Sec. 172.051. APPLICABILITY. A county is eligible to
create a district as provided by this chapter only if a rail line is
located in the county that:
(1) is being or has been abandoned through a
bankruptcy court or Surface Transportation Board proceeding; or
(2) carries three million gross tons per mile per year
or less. (V.A.C.S. Art. 6550c, Secs. 2(6) (part), 3(b), 3A(a)
(part).)
Sec. 172.052. CREATION OF DISTRICT BY MORE THAN ONE COUNTY.
(a) The commissioners courts of two or more counties that are a
contiguous area may by concurrent order:
(1) create a district; or
(2) provide for the re-creation of a district by the
addition of one or more counties.
(b) The district consists of the territory of each county
whose commissioners court adopts the concurrent order.
(c) Each concurrent order must:
(1) contain identical provisions for creation or
re-creation;
(2) be adopted at the time of the creation or
re-creation;
(3) declare the boundaries of the district as the
boundaries of the counties included;
(4) designate the district’s name; and
(5) designate the number of directors, which may not
be less than four, and the manner of the directors’ appointment by a
commissioners court.
(d) The commissioners court of each county included in a
district by order may provide for the district’s dissolution if
each commissioners court determines that the dissolution will not
impair an obligation of any contract of the district. The
dissolution order is effective only on the creation or re-creation
of another district in which each county included in the dissolving
district is included. (V.A.C.S. Art. 6550c, Secs. 2(3), (6)
(part), 3(a), (c), (d).)
Sec. 172.053. CREATION OF DISTRICT BY ONE COUNTY. (a) The
commissioners court of a county may by order create a district in
that county to develop, finance, maintain, and operate a new rail
system under this chapter and for other purposes of this chapter.
(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 district’s name; and
(2) appoint at least four residents of the county to
serve as directors.
(d) The commissioners court of the county by order may
provide for the district’s dissolution if the commissioners court
determines that the dissolution will not impair an obligation of
any contract of the district. The dissolution order is effective
only on the creation of another district in which the county is
included. (V.A.C.S. Art. 6550c, Secs. 3A(a) (part), (b), (c),
(f).)
Sec. 172.054. NOTICE OF CREATION. (a) The board of each
newly created district shall provide notice to the Texas
Transportation Institute of the district’s creation.
(b) On being notified by the board, the Texas Transportation
Institute shall make available to the board a guide to the services
and information that the institute provides. (V.A.C.S. Art. 6550c,
Sec. 3(f).)
Sec. 172.055. AUTOMATIC ASSUMPTION OF CONTRACTUAL
OBLIGATIONS AFTER CREATION BY CERTAIN DISTRICTS. A district
created or re-created under Section 172.052 automatically assumes
any obligation of a contract executed by the district or a
predecessor district that is 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. (V.A.C.S. Art. 6550c, Sec. 3(e).)
[Sections 172.056-172.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
Sec. 172.101. CONTROL OF DISTRICT. (a) The board is
responsible for the management, operation, and control of the
district.
(b) The right to control and regulate district affairs is
vested exclusively in the board except as specifically otherwise
provided by this chapter. (V.A.C.S. Art. 6550c, Secs. 4(a), (d)
(part).)
Sec. 172.102. TERMS. (a) A director serves a two-year
term.
(b) An initial director serves a term ending on the second
anniversary of the date:
(1) the latest concurrent order creating or
re-creating the district under Section 172.052 was adopted; or
(2) an order creating the district under Section
172.053 was adopted. (V.A.C.S. Art. 6550c, Secs. 3A(d), 4(b)
(part).)
Sec. 172.103. QUALIFICATIONS FOR OFFICE. (a) To be
eligible for appointment as a director, a person must be a resident
of the county governed by the commissioners court that appoints the
person.
(b) An elected officer of this state or a political
subdivision of this state who is not prohibited by the Texas
Constitution from serving on the board is eligible to serve on the
board. (V.A.C.S. Art. 6550c, Secs. 3A(c) (part), (e), 4(b) (part),
(g).)
Sec. 172.104. VACANCY. The commissioners court that
appointed a director who vacates the position shall appoint a
director for the unexpired term. (V.A.C.S. Art. 6550c, Secs.
3A(e), 4(b) (part).)
Sec. 172.105. REMOVAL. (a) The commissioners court that
appointed a director may remove the director from office for
neglect of duty or malfeasance in office after:
(1) at least 10 days’ written notice to the director;
and
(2) a hearing before the commissioners court.
(b) At the hearing on the question of removal of a director,
the director is entitled to be heard in person or through counsel.
(V.A.C.S. Art. 6550c, Secs. 3A(e), 4(b) (part).)
Sec. 172.106. OFFICERS. The board shall select a
president, vice president, treasurer, and secretary. The secretary
is not required to be a director. (V.A.C.S. Art. 6550c, Secs.
3A(e), 4(c) (part).)
Sec. 172.107. MEETINGS; NOTICE. (a) The board shall hold
at least one regular meeting each month to conduct district
business.
(b) The president may call a special board meeting.
(c) Chapter 551, Government Code, applies to board
meetings, except that notice of a board meeting shall be posted at
the administrative office of the district and at the courthouse in
the county in which that office is located. (V.A.C.S. Art. 6550c,
Secs. 3A(e), 4(c) (part), (f).)
Sec. 172.108. RULES FOR PROCEEDINGS. The board shall adopt
rules for its proceedings. (V.A.C.S. Art. 6550c, Sec. 4(d)
(part).)
Sec. 172.109. EMPLOYEES. The board may employ and
compensate persons to carry out the powers and duties of the
district. (V.A.C.S. Art. 6550c, Sec. 4(d) (part).)
Sec. 172.110. PECUNIARY INTEREST IN CERTAIN CONTRACTS
PROHIBITED. A district employee may not have a direct or indirect
pecuniary interest in any contract or agreement to which the
district is a party. (V.A.C.S. Art. 6550c, Sec. 4(e).)
[Sections 172.111-172.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 172.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
FUNCTIONS. (a) A district has all powers necessary or convenient
to carry out the purposes of this chapter.
(b) A district may generally perform all acts necessary for
the full exercise of the district’s powers. (V.A.C.S. Art. 6550c,
Secs. 5(a) (part), (k) (part).)
Sec. 172.152. RULES. To protect the state’s health,
safety, and general welfare, a district may adopt rules to govern
the operation of the district, its employees, the rail 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, or telephone or utility
service. (V.A.C.S. Art. 6550c, Sec. 5(h).)
Sec. 172.153. AGREEMENTS GENERALLY. A district may make
contracts, leases, and agreements with the United States, this
state and its agencies and political subdivisions, public or
private corporations, and any other person. (V.A.C.S. Art. 6550c,
Sec. 5(k) (part).)
Sec. 172.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
A district may:
(1) enter into agreements with a public utility,
private utility, communication system, common carrier, or
transportation system for the joint use of its facilities,
installations, or property inside or outside the district; and
(2) establish:
(A) through routes;
(B) joint fares; and
(C) divisions of tariffs, subject to approval of
a tariff-regulating body that has jurisdiction. (V.A.C.S. Art.
6550c, Sec. 5(g).)
Sec. 172.155. JOINT OWNERSHIP AGREEMENTS. A district may
enter into a joint ownership agreement with any person. (V.A.C.S.
Art. 6550c, Sec. 5(i).)
Sec. 172.156. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
(a) A contract in the amount of more than $15,000 for the
construction of improvements or the purchase of material,
machinery, equipment, supplies, or any other property except real
property may be awarded only through competitive bidding after
notice is published in a newspaper of general circulation in the
district at least 15 days before the date set for receiving bids.
(b) A board may adopt rules governing the taking of bids and
the awarding of contracts.
(c) This section does not apply to:
(1) personal or professional services; or
(2) the acquisition of an existing rail transportation
system. (V.A.C.S. Art. 6550c, Sec. 7.)
Sec. 172.157. EMINENT DOMAIN. (a) A district may exercise
the power of eminent domain to acquire:
(1) land in fee simple; or
(2) any interest less than fee simple in, on, under, or
above land, including an easement, right-of-way, or right of use of
airspace or subsurface space.
(b) A district may not exercise the power of eminent domain
in a manner that would unduly interfere with interstate commerce.
(c) An eminent domain proceeding brought by a district is
governed by Chapter 21, Property Code, except to the extent
inconsistent with this chapter.
(d) An eminent domain proceeding is begun by the board’s
adoption of a resolution declaring that the district’s acquisition
of the property or interest described in the resolution:
(1) is a public necessity; and
(2) is necessary and proper for the construction,
extension, improvement, or development of rail facilities and is in
the public interest.
(e) The resolution is conclusive evidence of the public
necessity of the proposed acquisition and that the real property or
interest in property is necessary for public use. (V.A.C.S.
Art. 6550c, Sec. 5(f).)
Sec. 172.158. DISPOSITION OF SURPLUS PROPERTY. (a) A
district may sell, lease, convey, or otherwise dispose of any
right, interest, or property not needed for or, in the case of a
lease, not inconsistent with the efficient operation and
maintenance of the system.
(b) A district may, on adoption of an order by the board,
sell, lease, or otherwise dispose of surplus property not needed
for district requirements or to carry out district powers under
this chapter. (V.A.C.S. Art. 6550c, Sec. 5(l).)
Sec. 172.159. SUITS. (a) A district may:
(1) sue and be sued;
(2) institute and prosecute suits without giving
security for costs; and
(3) appeal from a judgment without giving a
supersedeas or cost bond.
(b) An action at law or in equity against the district must
be brought in the county in which the principal office of the
district is located, except that a suit in eminent domain must be
brought in the county in which the land is located. (V.A.C.S. Art.
6550c, Sec. 5(c).)
Sec. 172.160. PERPETUAL SUCCESSION. A district has
perpetual succession. (V.A.C.S. Art. 6550c, Sec. 5(b).)
[Sections 172.161-172.200 reserved for expansion]
SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
CONSTRUCTION, AND OPERATION OF RAIL FACILITIES
Sec. 172.201. GENERAL AUTHORITY OVER RAIL FACILITIES. A
district may plan, acquire, construct, complete, develop, own,
operate, and maintain rail facilities inside or outside the
district. (V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
Sec. 172.202. USE AND ALTERATION OF PROPERTY OF ANOTHER
POLITICAL SUBDIVISION. For a purpose described by Section 172.201,
as necessary or useful in the construction, reconstruction, repair,
maintenance, and operation of rail facilities, and subject to a
grant previously secured or with the consent of a municipality,
county, or other political subdivision, a district may:
(1) use streets, alleys, roads, highways, and other
public ways of the political subdivision; and
(2) relocate, raise, reroute, change the grade of, or
alter, at the district’s expense, the construction of a publicly
owned or privately owned street, alley, highway, road, railroad,
electric line or facility, telegraph or telephone property or
facility, pipeline or facility, conduit or facility, and other
property. (V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
Sec. 172.203. RULES GOVERNING SYSTEM; ROUTINGS. A district
by resolution may adopt rules governing the use, operation, and
maintenance of the system and shall determine all routings and
change them when the board considers it advisable. (V.A.C.S. Art.
6550c, Sec. 5(m).)
Sec. 172.204. ACQUISITION OF PROPERTY. (a) A district may
purchase, whenever the district considers the purchase expedient,
land, property rights, right-of-way, franchises, easements, and
other interests in land the district considers necessary to
acquire, construct, or operate a rail facility on terms and at a
price to which the district and the owner agree.
(b) The district may take title to the land or interest in
the district’s name.
(c) The governing body of a municipality, a county, any
other political subdivision, or a public agency may convey without
advertisement the title or the rights and easements to property
needed by the district for its purposes in connection with the
acquisition, construction, or operation of rail facilities.
(V.A.C.S. Art. 6550c, Sec. 5(e) (part).)
Sec. 172.205. POWERS RELATING TO DISTRICT PROPERTY. A
district may acquire by grant, purchase, gift, devise, lease, or
otherwise and may hold, use, sell, lease, or dispose of property,
including a license, a patent, a right, or an interest, necessary,
convenient, or useful for the full exercise of its powers under this
chapter. (V.A.C.S. Art. 6550c, Sec. 5(d).)
Sec. 172.206. ACQUISITION OF ROLLING STOCK AND OTHER
PROPERTY. A district may acquire rolling stock or other property,
under a conditional sales contract, lease, equipment trust
certificate, or other form of contract or trust agreement.
(V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
Sec. 172.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
(a) A district shall establish and maintain reasonable and
nondiscriminatory rents or other compensation for the use of the
facilities of the system acquired, constructed, operated,
regulated, or maintained by the district.
(b) Together with grants received by the district, the rents
or other compensation must be sufficient to produce revenue
adequate to:
(1) pay all expenses necessary for the operation and
maintenance of the district’s property and facilities;
(2) pay the principal of and interest on all bonds
issued by the district payable wholly or partly from the revenue, as
they become due and payable; and
(3) fulfill the terms of agreements made with the
holders of bonds or with any person on their behalf. (V.A.C.S.
Art. 6550c, Sec. 5(j).)
Sec. 172.208. OPERATION OR USE CONTRACTS. (a) A district
may:
(1) lease all or part of the rail facilities to any
operator; or
(2) contract for the use or operation of all or part of
the rail facilities by any operator.
(b) To the maximum extent practicable, the district shall
encourage the participation of private enterprise in the operation
of rail facilities.
(c) The term of an operating contract under this section may
not exceed 20 years. In this subsection, “operating contract”
means a professional services contract executed by a district and
another person under which the person agrees to provide all or part
of the:
(1) rolling stock required for operation as a common
carrier over all or a part of the rail facilities of the district;
and
(2) 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. (V.A.C.S. Art. 6550c,
Secs. 2(7), 5(n).)
Sec. 172.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
OTHER POLITICAL SUBDIVISIONS. A district may contract with a
county or other political subdivision of this state for the
district to provide rail transportation services to an area outside
the district on terms to which the parties agree. (V.A.C.S. Art.
6550c, Sec. 5(o).)
Sec. 172.210. ABANDONMENT OF RAIL LINE. (a) A district
may not abandon a district rail line for which state money has been
loaned or granted unless the abandonment is approved by the
commission as being consistent with the policies of this chapter.
(b) The commission by rule shall adopt procedures for
applying for and obtaining approval for abandonment under this
section. (V.A.C.S. Art. 6550c, Sec. 5(r).)
[Sections 172.211-172.250 reserved for expansion]
SUBCHAPTER F. FINANCIAL PROVISIONS
Sec. 172.251. FISCAL YEAR. (a) Unless the board changes
the fiscal year, the district’s fiscal year ends on September 30.
(b) The board may not change the fiscal year more than once
in a three-year period. (V.A.C.S. Art. 6550c, Sec. 5(p) (part).)
Sec. 172.252. ANNUAL BUDGET. (a) Before beginning the
operation of rail facilities, the board shall adopt an annual
operating budget specifying the district’s anticipated revenue and
expenses for the remainder of the fiscal year. The district shall
adopt an operating budget for each succeeding fiscal year.
(b) The board must hold a public hearing before adopting
each budget except the initial budget. Notice of the hearing must
be published at least seven days before the date of the hearing in a
newspaper of general circulation in the district.
(c) A budget may be amended at any time if notice of the
proposed amendment is given in the notice of meeting.
(d) An expenditure that is not budgeted may not be made.
(V.A.C.S. Art. 6550c, Sec. 5(p) (part).)
Sec. 172.253. GRANTS AND LOANS. A district may accept a
grant or loan from the United States, this state and its agencies
and political subdivisions, public or private corporations, and any
other person. (V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
Sec. 172.254. DEPOSITORY. (a) The board by resolution
shall name one or more banks for the deposit of district funds.
(b) District funds are public funds and may be invested in
securities permitted by Chapter 2256, Government Code.
(c) To the extent district funds are not insured by the
Federal Deposit Insurance Corporation or its successor, the funds
shall be collateralized in the manner provided for county funds.
(V.A.C.S. Art. 6550c, Sec. 5(q).)
Sec. 172.255. APPLICABILITY OF PUBLIC PROPERTY FINANCING
LAW; PROHIBITION ON AD VALOREM TAX. A district may use the
procedures provided by Chapter 271, Local Government Code, to
finance the district’s rail facilities, except to the extent of a
conflict with this chapter, and except that the district may not
impose an ad valorem tax. (V.A.C.S. Art. 6550c, Sec. 6A(a).)
Sec. 172.256. NONNEGOTIABLE PURCHASE MONEY NOTES; BOND
ANTICIPATION NOTES. (a) A district may:
(1) issue nonnegotiable purchase money notes, payable
in installments and secured by the property being acquired or
constructed, to acquire or construct rail facilities; or
(2) secure the obligation of the notes by a pledge or
by issuing bonds, including bond anticipation notes.
(b) 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. (V.A.C.S.
Art. 6550c, Sec. 6A(b).)
Sec. 172.257. TAX EXEMPTION. District property and revenue
and the interest on bonds issued by the district are exempt from any
tax imposed by this state or a political subdivision of this state.
(V.A.C.S. Art. 6550c, Sec. 8.)
[Sections 172.258-172.300 reserved for expansion]
SUBCHAPTER G. BONDS
Sec. 172.301. REVENUE BONDS. A district, by board
resolution, may issue revenue bonds in amounts that the board
considers necessary or appropriate for the acquisition, purchase,
construction, reconstruction, repair, equipping, improvement, or
extension of its rail facilities. (V.A.C.S. Art. 6550c, Secs. 6(a)
(part), (e).)
Sec. 172.302. SECURITY FOR PAYMENT OF BONDS. (a) To
secure payment of district bonds, the district may:
(1) encumber and pledge all or part of the revenue of
its rail facilities; and
(2) encumber all or part of the property of the rail
facilities and everything pertaining to them acquired or to be
acquired.
(b) Unless prohibited by the resolution or indenture
relating to outstanding bonds, a district may encumber separately
any item of property. (V.A.C.S. Art. 6550c, Sec. 6(c) (part).)
Sec. 172.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds are legal and
authorized investments for:
(1) a bank;
(2) a trust company;
(3) a savings and loan association; and
(4) an insurance company.
(b) The bonds are:
(1) eligible to secure the deposit of public funds of
this state or a municipality, a county, a school district, or any
other political corporation or subdivision of this state; and
(2) lawful and sufficient security for the deposit to
the extent of the principal amount or market value of the bonds,
whichever is less. (V.A.C.S. Art. 6550c, Sec. 6(d).)
Sec. 172.304. APPLICABILITY OF PUBLIC IMPROVEMENT
FINANCING LAW. For purposes of Chapter 1371, Government Code:
(1) a district is an issuer; and
(2) the acquisition, improvement, or repair of rail
facilities by a district is an eligible project. (V.A.C.S. Art.
6550c, Sec. 5(a) (part).)
Sec. 172.305. LIMIT ON POWER. A revenue bond indenture may
limit the exercise of the power granted by Section 172.002,
172.151, 172.152, 172.153, 172.154, 172.155, 172.157, 172.158,
172.159, 172.160, 172.201, 172.202, 172.203, 172.204, 172.205,
172.206, 172.207, 172.208, 172.209, 172.210, 172.251, 172.252,
172.253, 172.254, or 172.304. The limitation applies while any of
the revenue bonds issued under the indenture are outstanding and
unpaid. (V.A.C.S. Art. 6550c, Sec. 5(k) (part).)
Sec. 172.306. EXEMPTION FROM REVIEW OF NOTES BY ATTORNEY
GENERAL. District notes authorized to be issued to an agency of the
federal or state government, and related records, are not required
to be submitted to the attorney general for examination under
Chapter 1202, Government Code. (V.A.C.S. Art. 6550c, Sec. 6(b)
(part).)
CHAPTER 173. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 173.001. DEFINITION OF PERSON
Sec. 173.002. DEFINITIONS
Sec. 173.003. LOCATION OF MUNICIPALITY IN COUNTY
Sec. 173.004. NATURE OF DISTRICT
Sec. 173.005. SUNSET PROVISION
[Sections 173.006-173.050 reserved for expansion]
SUBCHAPTER B. CREATION
Sec. 173.051. CREATION OF DISTRICT
Sec. 173.052. ADDITION OF POLITICAL SUBDIVISION TO
DISTRICT
[Sections 173.053-173.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
Sec. 173.101. CONTROL OF DISTRICT
Sec. 173.102. COMPOSITION OF BOARD; TERMS
Sec. 173.103. VACANCY
Sec. 173.104. PRESIDING OFFICER
Sec. 173.105. MEETINGS
Sec. 173.106. BOARD MEETINGS BY TELEPHONE OR
VIDEOCONFERENCE
Sec. 173.107. RULES FOR PROCEEDINGS
Sec. 173.108. COMPENSATION; REIMBURSEMENT
Sec. 173.109. EMPLOYEES
Sec. 173.110. EXECUTIVE COMMITTEE
Sec. 173.111. RETIREMENT BENEFITS
[Sections 173.112-173.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 173.151. GENERAL POWERS OF DISTRICT
Sec. 173.152. RULES
Sec. 173.153. AGREEMENTS GENERALLY
Sec. 173.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
USE
Sec. 173.155. JOINT OWNERSHIP AGREEMENTS
Sec. 173.156. EXCLUSIVE DEVELOPMENT AGREEMENTS
Sec. 173.157. INTERLOCAL AGREEMENTS WITH COMMISSION
Sec. 173.158. AWARDING CONSTRUCTION OR PURCHASE
CONTRACTS
Sec. 173.159. EMINENT DOMAIN
Sec. 173.160. SUITS
[Sections 173.161-173.200 reserved for expansion]
SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
Sec. 173.201. GENERAL AUTHORITY OVER COMMUTER RAIL
FACILITIES
Sec. 173.202. POWERS RELATING TO DISTRICT PROPERTY
Sec. 173.203. USE AND ALTERATION OF PROPERTY OF
ANOTHER POLITICAL SUBDIVISION
Sec. 173.204. RULES GOVERNING SYSTEM AND ROUTINGS
Sec. 173.205. ACQUISITION OF PROPERTY
Sec. 173.206. ACQUISITION OF ROLLING STOCK AND OTHER
PROPERTY
Sec. 173.207. COMPENSATION FOR USE OF SYSTEM
FACILITIES
Sec. 173.208. OPERATION OR USE CONTRACTS
Sec. 173.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
WITH OTHER POLITICAL SUBDIVISIONS
[Sections 173.210-173.250 reserved for expansion]
SUBCHAPTER F. FINANCIAL PROVISIONS
Sec. 173.251. FISCAL YEAR
Sec. 173.252. ANNUAL BUDGET
Sec. 173.253. GRANTS AND LOANS
Sec. 173.254. DEPOSITORY
Sec. 173.255. PURCHASE OF ADDITIONAL INSURED
PROVISIONS
Sec. 173.256. FINANCING OF CERTAIN TRANSPORTATION
INFRASTRUCTURE
Sec. 173.257. TAX EXEMPTION
[Sections 173.258-173.300 reserved for expansion]
SUBCHAPTER G. BONDS
Sec. 173.301. REVENUE BONDS
Sec. 173.302. SECURITY FOR PAYMENT OF BONDS
Sec. 173.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY FOR
DEPOSITS OF PUBLIC FUNDS
Sec. 173.304. LIMIT ON POWER
[Sections 173.305-173.350 reserved for expansion]
SUBCHAPTER H. SALES AND USE TAXES
Sec. 173.351. TAX AUTHORIZED
Sec. 173.352. TAX RATE
Sec. 173.353. PREEMPTION OF OTHER SALES AND USE TAXES
Sec. 173.354. APPLICABILITY OF TAX CODE
Sec. 173.355. NOTICE TO COMPTROLLER
Sec. 173.356. NOTICE TO LOCAL GOVERNMENTS
Sec. 173.357. ACQUISITION OF ADDITIONAL TERRITORY
SUBJECT TO TAX
Sec. 173.358. DUTY OF COMPTROLLER
Sec. 173.359. EFFECTIVE DATE OF TAX
CHAPTER 173. INTERMUNICIPAL COMMUTER RAIL DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 173.001. DEFINITION OF PERSON. In this chapter:
(1) “person” includes a corporation, as provided by
Section 312.011, Government Code; and
(2) the definition of “person” assigned by Section
311.005, Government Code, does not apply. (New.)
Sec. 173.002. DEFINITIONS. In this chapter:
(1) “Board” means a district’s board of directors.
(2) “Commuter rail facility” means any property
necessary for the transportation of passengers and baggage between
locations in a district. The term includes rolling stock,
locomotives, stations, parking areas, and rail lines.
(3) “Creating municipality” means a municipality
described by Section 173.051(a).
(4) “Director” means a board member.
(5) “District” means an intermunicipal commuter rail
district created under this chapter or under Article 6550c-1,
Revised Statutes, as that article existed before April 1, 2011.
(6) “District property” means 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. (V.A.C.S. Art. 6550c-1, Secs. 1(2), (3), (5), (6), (7);
New.)
Sec. 173.003. LOCATION OF MUNICIPALITY IN COUNTY. For
purposes of this chapter, a municipality is located in a county only
if 90 percent or more of the population of the municipality resides
in that county. (V.A.C.S. Art. 6550c-1, Sec. 2(d).)
Sec. 173.004. NATURE OF DISTRICT. (a) A district is a
public body and a political subdivision of this state exercising
public and essential governmental functions.
(b) A district, in the exercise of powers under this
chapter, is performing only governmental functions and is a
governmental unit under Chapter 101, Civil Practice and Remedies
Code. (V.A.C.S. Art. 6550c-1, Sec. 4(a) (part).)
Sec. 173.005. SUNSET PROVISION. A district is subject
every 12th year to review under Chapter 325, Government Code (Texas
Sunset Act). (V.A.C.S. Art. 6550c-1, Sec. 4(b).)
[Sections 173.006-173.050 reserved for expansion]
SUBCHAPTER B. CREATION
Sec. 173.051. CREATION OF DISTRICT. (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) The creating municipalities and the counties in which
the creating municipalities are located may create a district on
passage of a resolution favoring creation by the governing body of
each municipality or county. (V.A.C.S. Art. 6550c-1, Secs. 2(a),
(b).)
Sec. 173.052. ADDITION OF POLITICAL SUBDIVISION TO
DISTRICT. The following political subdivisions may become a part
of a district with the approval of the governing body of the
political subdivision:
(1) a county located adjacent to the 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). (V.A.C.S.
Art. 6550c-1, Sec. 2(c).)
[Sections 173.053-173.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
Sec. 173.101. CONTROL OF DISTRICT. A district is governed
by a board of directors. The board is responsible for the
management, operation, and control of the district. (V.A.C.S. Art.
6550c-1, Sec. 3(a).)
Sec. 173.102. COMPOSITION OF BOARD; TERMS. (a) The board
is composed of:
(1) two public directors 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
Subchapter B;
(3) one elected director appointed by the regional
planning organization of which a creating municipality is a part;
(4) one director appointed by each creating
municipality to represent the business community of the
municipality;
(5) one director appointed by each authority created
under Chapter 451 that serves a creating municipality;
(6) one director 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 director appointed by all other directors to
represent all municipalities in the district that do not otherwise
have representation on the board who is an elected official of one
of those municipalities.
(b) Each director serves a staggered two-year term, with as
near as possible to half of the directors’ terms expiring February 1
of each year. If one or more directors are added to the board, the
directors other than the new directors shall determine the lengths
of the new directors’ terms so that one-half, or as near one-half as
possible, of the directors serve terms expiring each year.
(V.A.C.S. Art. 6550c-1, Secs. 3(b), (c) (part).)
Sec. 173.103. VACANCY. A vacancy on the board shall be
filled in the same manner as the original appointment or election.
(V.A.C.S. Art. 6550c-1, Sec. 3(c) (part).)
Sec. 173.104. PRESIDING OFFICER. (a) The directors shall
elect one member as presiding officer.
(b) The presiding officer may select another director to
preside in the absence of the presiding officer. (V.A.C.S. Art.
6550c-1, Sec. 3(d).)
Sec. 173.105. MEETINGS. The presiding officer shall call
at least one meeting of the board each year and may hold other
meetings as the presiding officer determines are appropriate.
(V.A.C.S. Art. 6550c-1, Sec. 3(e).)
Sec. 173.106. BOARD MEETINGS BY TELEPHONE OR
VIDEOCONFERENCE. (a) Chapter 551, Government Code, does not
prohibit the board from holding an open or closed meeting by
telephone conference call or videoconference.
(b) A meeting held by telephone conference call or
videoconference need not have a quorum present at any one location.
(c) A telephone conference call or videoconference meeting
is subject to the notice requirements applicable to other meetings.
(d) The notice of a telephone conference call or
videoconference meeting must specify each location of the meeting
where a director will participate and the physical location where
the presiding officer of the board will preside. Each of those
locations must be open to the public during the open portion of the
meeting.
(e) Each part of a telephone conference call meeting that is
required to be open to the public must be audible to the public at
each meeting location specified in the notice of the meeting and
shall be tape recorded. The district shall make the tape recording
available to the public.
(f) Each part of a videoconference meeting that is required
to be open to the public must:
(1) be visible and audible to the public at each
meeting location specified in the notice of the meeting; and
(2) have two-way audio and video communications with
each participant in the meeting during the entire meeting.
(g) Without regard to whether a director is participating in
a meeting from a remote location by videoconference call, the board
may allow a member of the public to testify at a meeting from a
remote location by videoconference call. The board shall designate
the location for public participation in the notice of the meeting.
(V.A.C.S. Art. 6550c-1, Sec. 3A.)
Sec. 173.107. RULES FOR PROCEEDINGS. The board shall adopt
rules for its proceedings. (V.A.C.S. Art. 6550c-1, Sec. 3(g)
(part).)
Sec. 173.108. COMPENSATION; REIMBURSEMENT. A director is
not entitled to compensation for serving as a director but is
entitled to reimbursement for reasonable expenses incurred while
serving as a director. (V.A.C.S. Art. 6550c-1, Sec. 3(f).)
Sec. 173.109. EMPLOYEES. The board may employ and
compensate persons to carry out the powers and duties of the
district. (V.A.C.S. Art. 6550c-1, Sec. 3(g) (part).)
Sec. 173.110. EXECUTIVE COMMITTEE. The board shall appoint
an executive committee. (V.A.C.S. Art. 6550c-1, Sec. 3(g) (part).)
Sec. 173.111. RETIREMENT BENEFITS. A district is eligible
to participate in the Texas County and District Retirement System.
(V.A.C.S. Art. 6550c-1, Sec. 4(q).)
[Sections 173.112-173.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 173.151. GENERAL POWERS OF DISTRICT. (a) A district
has all the powers necessary or convenient to carry out the purposes
of this chapter.
(b) A district may generally perform all acts necessary for
the full exercise of the district’s powers. (V.A.C.S. Art.
6550c-1, Secs. 4(a) (part), (k) (part).)
Sec. 173.152. RULES. To protect district residents’
health, safety, and general welfare, 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, or telephone or utility
service. (V.A.C.S. Art. 6550c-1, Sec. 4(h).)
Sec. 173.153. AGREEMENTS GENERALLY. A district may make
contracts, leases, and agreements with the United States, this
state and its agencies and political subdivisions, public or
private corporations, and any other person. (V.A.C.S. Art.
6550c-1, Sec. 4(k) (part).)
Sec. 173.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
A district may:
(1) make agreements with a public utility, private
utility, communication system, common carrier, state agency, or
transportation system for the joint use of facilities,
installations, or property inside or outside the district; and
(2) establish:
(A) through routes;
(B) joint fares; and
(C) divisions of tariffs, subject to approval of
a tariff-regulating body that has jurisdiction. (V.A.C.S. Art.
6550c-1, Sec. 4(g).)
Sec. 173.155. JOINT OWNERSHIP AGREEMENTS. A district may
make a joint ownership agreement with any person. (V.A.C.S. Art.
6550c-1, Sec. 4(i).)
Sec. 173.156. EXCLUSIVE DEVELOPMENT AGREEMENTS. (a) A
board may enter into an exclusive development agreement with a
private entity.
(b) The exclusive development agreement:
(1) at a minimum must provide for the design and
construction of a commuter rail facility or system; and
(2) may provide for the financing, acquisition,
maintenance, or operation of a commuter rail facility or system.
(c) The board may adopt rules governing an agreement under
this section. (V.A.C.S. Art. 6550c-1, Sec. 6A.)
Sec. 173.157. INTERLOCAL AGREEMENTS WITH COMMISSION. The
commission may enter into an interlocal agreement with a district
under which the district may exercise a power or duty of the
commission for the development and efficient operation of
intermodal corridors in the district. (V.A.C.S. Art. 6550c-1, Sec.
4(k) (part).)
Sec. 173.158. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
(a) A contract in the amount of more than $15,000 for the
construction of improvements or the purchase of material,
machinery, equipment, supplies, or any other property except real
property may be awarded only through competitive bidding after
notice is published in a newspaper of general circulation in the
district at least 15 days before the date set for receiving bids.
(b) A board may adopt rules governing the taking of bids and
the awarding of contracts.
(c) This section does not apply to:
(1) personal or professional services;
(2) the acquisition of an existing rail transportation
system;
(3) a contract with a common carrier to construct
lines and to operate commuter rail service on lines wholly or partly
owned by the carrier; or
(4) an agreement with a private entity under Section
173.156. (V.A.C.S. Art. 6550c-1, Sec. 6.)
Sec. 173.159. EMINENT DOMAIN. (a) A district may exercise
the power of eminent domain to acquire:
(1) land in fee simple; or
(2) any interest less than fee simple in, on, under, or
above land, including an easement, right-of-way, or right of use of
airspace or subsurface space.
(b) The power of eminent domain under this section does not
apply to:
(1) land under the jurisdiction of the department or a
metropolitan transit authority; or
(2) a rail line owned by a common carrier or
municipality.
(c) To the extent possible, the district shall use existing
rail or intermodal transportation corridors for the alignment of
its system.
(d) An eminent domain proceeding is begun by the board’s
adoption of a resolution declaring that the district’s acquisition
of the property or interest described in the resolution:
(1) is a public necessity; and
(2) is necessary and proper for the construction,
extension, improvement, or development of commuter rail facilities
and is in the public interest.
(e) The resolution is conclusive evidence of the public
necessity of the proposed acquisition and that the real property or
interest in property is necessary for public use. (V.A.C.S. Art.
6550c-1, Sec. 4(f).)
Sec. 173.160. SUITS. (a) A district may:
(1) sue and be sued;
(2) institute and prosecute suits without giving
security for costs; and
(3) appeal from a judgment without giving a
supersedeas or cost bond.
(b) 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 a suit in eminent domain must be brought in
the county in which the land is located. (V.A.C.S. Art. 6550c-1,
Sec. 4(c).)
[Sections 173.161-173.200 reserved for expansion]
SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
Sec. 173.201. GENERAL AUTHORITY OVER COMMUTER RAIL
FACILITIES. A district may acquire, construct, develop, own,
operate, and maintain intermodal and commuter rail facilities
inside, or connect political subdivisions in, the district.
(V.A.C.S. Art. 6550c-1, Sec. 4(e) (part).)
Sec. 173.202. POWERS RELATING TO DISTRICT PROPERTY. A
district may acquire by grant, purchase, gift, devise, lease, or
otherwise and may hold, use, sell, lease, or dispose of property,
including a license, a patent, a right, or an interest, necessary,
convenient, or useful for the full exercise of its powers under this
chapter. (V.A.C.S. Art. 6550c-1, Sec. 4(d).)
Sec. 173.203. USE AND ALTERATION OF PROPERTY OF ANOTHER
POLITICAL SUBDIVISION. (a) For a purpose described by Section
173.201, as necessary or useful in the construction,
reconstruction, repair, maintenance, and operation of the system,
and with the consent of a municipality, county, or other political
subdivision, a district may:
(1) use streets, alleys, roads, highways, and other
public ways of the political subdivision; and
(2) relocate, raise, reroute, change the grade of, or
alter, at the district’s expense, the construction of a publicly
owned or privately owned street, alley, highway, road, railroad,
electric line or facility, telegraph or telephone property or
facility, pipeline or facility, conduit or facility, and other
property.
(b) A district may not use or alter:
(1) a road or highway in the state highway system
without the permission of the commission; or
(2) a railroad without permission of the railroad.
(V.A.C.S. Art. 6550c-1, Sec. 4(e) (part).)
Sec. 173.204. RULES GOVERNING SYSTEM AND ROUTINGS. A
district by resolution may adopt rules governing the use,
operation, and maintenance of the system and shall determine all
routings and change them when the board considers it advisable.
(V.A.C.S. Art. 6550c-1, Sec. 4(l).)
Sec. 173.205. ACQUISITION OF PROPERTY. (a) A district may
purchase any interest in real property to acquire, construct, or
operate a commuter rail facility on terms and at a price to which
the district and the owner agree.
(b) The governing body of a municipality, a county, any
other political subdivision, or a public agency may convey the
title or the rights and easements to property needed by the district
for its purposes in connection with the acquisition, construction,
or operation of the system. (V.A.C.S. Art. 6550c-1, Sec. 4(e)
(part).)
Sec. 173.206. ACQUISITION OF ROLLING STOCK AND OTHER
PROPERTY. A district may acquire rolling stock or other property
under a conditional sales contract, lease, equipment trust
certificate, or other form of contract or trust agreement.
(V.A.C.S. Art. 6550c-1, Sec. 4(k) (part).)
Sec. 173.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
(a) A district shall establish and maintain reasonable and
nondiscriminatory rates or other compensation for the use of the
facilities of the system acquired, constructed, operated,
regulated, or maintained by the district.
(b) Together with grants received by the district, the rates
or other compensation must be sufficient to produce revenue
adequate to:
(1) pay all expenses necessary for the operation and
maintenance of the district’s property and facilities;
(2) pay the principal of and interest on all bonds
issued by the district under this chapter payable wholly or partly
from the revenue, as they become due and payable; and
(3) fulfill the terms of agreements made with the
holders of bonds or with any person on their behalf. (V.A.C.S. Art.
6550c-1, Sec. 4(j).)
Sec. 173.208. OPERATION OR USE CONTRACTS. (a) A district
may:
(1) lease all or part of the commuter rail facilities
to any operator; or
(2) contract for the use or operation of all or part of
the commuter rail facilities by any operator.
(b) To the maximum extent practicable, the district shall
encourage the participation of private enterprise in the operation
of commuter rail facilities.
(c) The term of an operating contract under this section may
not exceed 20 years. (V.A.C.S. Art. 6550c-1, Sec. 4(m).)
Sec. 173.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
OTHER POLITICAL SUBDIVISIONS. A district may contract with a
county or other political subdivision of this state for the
district to provide commuter rail transportation services to an
area outside the district on terms to which the parties agree.
(V.A.C.S. Art. 6550c-1, Sec. 4(n).)
[Sections 173.210-173.250 reserved for expansion]
SUBCHAPTER F. FINANCIAL PROVISIONS
Sec. 173.251. FISCAL YEAR. Unless the board changes the
fiscal year, the district’s fiscal year ends on September 30.
(V.A.C.S. Art. 6550c-1, Sec. 4(p) (part).)
Sec. 173.252. ANNUAL BUDGET. (a) Before beginning the
operation of commuter rail facilities, the board shall adopt an
annual operating budget specifying the district’s anticipated
revenue and expenses for the remainder of the fiscal year. The
district shall adopt an operating budget for each succeeding fiscal
year.
(b) The board must hold a public hearing before adopting
each budget except the initial budget. Notice of the hearing must
be published at least seven days before the date of the hearing in a
newspaper of general circulation in the district.
(c) A budget may be amended at any time if notice of the
proposed amendment is given in the notice of meeting.
(d) An expenditure that is not budgeted may not be made.
(V.A.C.S. Art. 6550c-1, Sec. 4(p) (part).)
Sec. 173.253. GRANTS AND LOANS. A district may accept
grants and loans from the United States, this state and its agencies
and political subdivisions, public or private corporations, and
other persons. (V.A.C.S. Art. 6550c-1, Sec. 4(k) (part).)
Sec. 173.254. DEPOSITORY. (a) The board by resolution
shall name one or more banks for the deposit of district funds.
(b) District funds are public funds and may be invested in
securities permitted by Chapter 2256, Government Code.
(c) To the extent district funds are not insured by the
Federal Deposit Insurance Corporation or its successor, the funds
shall be collateralized in the manner provided for county funds.
(V.A.C.S. Art. 6550c-1, Sec. 4(r).)
Sec. 173.255. PURCHASE OF ADDITIONAL INSURED PROVISIONS. A
district may purchase an additional insured provision to any
liability insurance contract. (V.A.C.S. Art. 6550c-1, Sec. 4(o).)
Sec. 173.256. FINANCING OF CERTAIN TRANSPORTATION
INFRASTRUCTURE. (a) This section applies only to a local
government, other than a school district, that is a member of a
district and 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. (V.A.C.S. Art. 6550c-1, Sec. 8.)
Sec. 173.257. TAX EXEMPTION. District property, material
purchases, revenue, and income and the interest on bonds and notes
issued by the district are exempt from any tax imposed by this state
or a political subdivision of this state. (V.A.C.S. Art. 6550c-1,
Sec. 7.)
[Sections 173.258-173.300 reserved for expansion]
SUBCHAPTER G. BONDS
Sec. 173.301. REVENUE BONDS. A district may issue revenue
bonds and notes in amounts that the board considers necessary or
appropriate for the acquisition, purchase, construction,
reconstruction, repair, equipping, improvement, or extension of
its commuter rail facilities. (V.A.C.S. Art. 6550c-1, Sec. 5(a)
(part).)
Sec. 173.302. SECURITY FOR PAYMENT OF BONDS. (a) To
secure payment of district bonds or notes, the district may:
(1) encumber and pledge all or part of the revenue of
its commuter rail facilities; and
(2) encumber all or part of the property of the
commuter rail facilities and everything pertaining to them acquired
or to be acquired.
(b) Unless prohibited by the resolution or indenture
relating to outstanding bonds or notes, a district may encumber
separately any item of property. (V.A.C.S. Art. 6550c-1, Sec. 5(c)
(part).)
Sec. 173.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds and notes are
legal and authorized investments for:
(1) a bank;
(2) a trust company;
(3) a savings and loan association; and
(4) an insurance company.
(b) The bonds and notes are:
(1) eligible to secure the deposit of public funds of
this state or a municipality, a county, a school district, or any
other political corporation or subdivision of this state; and
(2) lawful and sufficient security for the deposit to
the extent of the principal amount or market value of the bonds or
notes, whichever is less. (V.A.C.S. Art. 6550c-1, Sec. 5(d).)
Sec. 173.304. LIMIT ON POWER. (a) A revenue bond
indenture may limit the exercise of a power granted by Section
173.004, 173.005, 173.111, 173.151, 173.152, 173.153, 173.154,
173.155, 173.157, 173.159, 173.160, 173.201, 173.202, 173.203,
173.204, 173.205, 173.206, 173.207, 173.208, 173.209, 173.251,
173.252, 173.253, 173.254, or 173.255.
(b) The limitation applies while any of the revenue bonds
issued under the indenture are outstanding and unpaid. (V.A.C.S.
Art. 6550c-1, Sec. 4(k) (part).)
[Sections 173.305-173.350 reserved for expansion]
SUBCHAPTER H. SALES AND USE TAXES
Sec. 173.351. TAX AUTHORIZED. A sales and use tax is
imposed on items sold on district property. (V.A.C.S. Art.
6550c-1, Sec. 9(a) (part).)
Sec. 173.352. TAX RATE. 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 that is part of the district.
(V.A.C.S. Art. 6550c-1, Sec. 9(a) (part).)
Sec. 173.353. PREEMPTION OF OTHER SALES AND USE TAXES. The
tax imposed under this subchapter preempts all other local sales
and use taxes that would otherwise be imposed on district property.
(V.A.C.S. Art. 6550c-1, Sec. 9(a) (part).)
Sec. 173.354. APPLICABILITY OF TAX CODE. Chapter 321, Tax
Code, governs the computation, administration, governance, and use
of the tax except as inconsistent with this chapter. (V.A.C.S. Art.
6550c-1, Sec. 9(b) (part).)
Sec. 173.355. NOTICE TO COMPTROLLER. (a) 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 chapter.
(b) 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 board
adopting the tax; and
(3) certified copies of the resolutions of the
governing bodies of the creating municipalities and of the
commissioners courts of the counties in which the municipalities
are located.
(c) 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. (V.A.C.S. Art. 6550c-1, Secs.
9(c), (d).)
Sec. 173.356. NOTICE TO LOCAL GOVERNMENTS. At the same time
the district notifies the comptroller under Section 173.355, the
district shall:
(1) notify each affected local governmental
jurisdiction of the district’s creation; and
(2) provide each jurisdiction with an adequate map
showing the property boundaries of the district. (V.A.C.S. Art.
6550c-1, Sec. 9(e).)
Sec. 173.357. ACQUISITION OF ADDITIONAL TERRITORY SUBJECT
TO TAX. (a) Not later than the 30th day after the date a district
acquires additional territory, the district shall notify the
comptroller and each affected local governmental jurisdiction of
the acquisition.
(b) The district must include with each notification:
(1) an adequate map showing the new property
boundaries of the district; and
(2) the date the additional territory was acquired.
(c) Not later than the 30th day after the date the
comptroller receives the notice under this section, the comptroller
shall inform the district whether the comptroller is prepared to
administer the tax in the additional territory. (V.A.C.S. Art.
6550c-1, Sec. 9(f).)
Sec. 173.358. DUTY OF COMPTROLLER. The comptroller shall:
(1) administer, collect, and enforce a tax imposed
under this chapter; and
(2) remit to a district the tax collected on the
district’s property. (V.A.C.S. Art. 6550c-1, Secs. 9(a) (part),
(b) (part).)
Sec. 173.359. EFFECTIVE DATE OF TAX. A tax imposed under
this chapter or the repeal of a tax imposed under this chapter takes
effect on the first day of the first calendar quarter that begins
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 subchapter. (V.A.C.S. Art. 6550c-1,
Sec. 9(g).)
CHAPTER 174. COMMUTER RAIL DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 174.001. DEFINITION OF PERSON
Sec. 174.002. DEFINITIONS
Sec. 174.003. NATURE OF DISTRICT
Sec. 174.004. REQUIREMENT FOR SERVICE TO
MUNICIPALITIES IN DISTRICT
[Sections 174.005-174.050 reserved for expansion]
SUBCHAPTER B. CREATION
Sec. 174.051. CREATION OF DISTRICT
[Sections 174.052-174.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
Sec. 174.101. CONTROL OF DISTRICT
Sec. 174.102. COMPOSITION OF BOARD; TERMS
Sec. 174.103. PRESIDING OFFICER
Sec. 174.104. MEETINGS
Sec. 174.105. RULES FOR PROCEEDINGS
Sec. 174.106. COMPENSATION; REIMBURSEMENT
Sec. 174.107. EMPLOYEES
Sec. 174.108. EXECUTIVE COMMITTEE
Sec. 174.109. RETIREMENT BENEFITS
[Sections 174.110-174.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 174.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
FUNCTIONS
Sec. 174.152. RULES
Sec. 174.153. AGREEMENTS GENERALLY
Sec. 174.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT
USE
Sec. 174.155. JOINT OWNERSHIP AGREEMENTS
Sec. 174.156. INTERLOCAL AGREEMENTS WITH COMMISSION
Sec. 174.157. AWARDING CONSTRUCTION OR PURCHASE
CONTRACTS
Sec. 174.158. EMINENT DOMAIN
Sec. 174.159. SUITS
[Sections 174.160-174.200 reserved for expansion]
SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION, CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
Sec. 174.201. GENERAL AUTHORITY OVER COMMUTER RAIL
FACILITIES
Sec. 174.202. POWERS RELATING TO DISTRICT PROPERTY
Sec. 174.203. USE AND ALTERATION OF PROPERTY OF
ANOTHER POLITICAL SUBDIVISION
Sec. 174.204. RULES GOVERNING SYSTEM AND ROUTINGS
Sec. 174.205. ACQUISITION OF PROPERTY
Sec. 174.206. ACQUISITION OF ROLLING STOCK AND OTHER
PROPERTY
Sec. 174.207. COMPENSATION FOR USE OF SYSTEM
FACILITIES
Sec. 174.208. OPERATION OR USE CONTRACTS
Sec. 174.209. RAIL TRANSPORTATION SERVICES AGREEMENTS
WITH OTHER POLITICAL SUBDIVISIONS
[Sections 174.210-174.250 reserved for expansion]
SUBCHAPTER F. FINANCIAL PROVISIONS
Sec. 174.251. FISCAL YEAR
Sec. 174.252. ANNUAL BUDGET
Sec. 174.253. GRANTS AND LOANS
Sec. 174.254. DEPOSITORY
Sec. 174.255. PURCHASE OF ADDITIONAL INSURED
PROVISIONS
Sec. 174.256. TAX EXEMPTION
[Sections 174.257-174.300 reserved for expansion]
SUBCHAPTER G. BONDS
Sec. 174.301. REVENUE BONDS
Sec. 174.302. SECURITY FOR PAYMENT OF BONDS
Sec. 174.303. BONDS AS AUTHORIZED INVESTMENTS AND
SECURITY FOR DEPOSITS OF PUBLIC FUNDS
Sec. 174.304. LIMIT ON POWER
[Sections 174.305-174.350 reserved for expansion]
SUBCHAPTER H. TAXES
Sec. 174.351. TAX AUTHORIZED
Sec. 174.352. IMPOSITION OF TAX
Sec. 174.353. TAX RATE
Sec. 174.354. EFFECTIVE DATE OF TAX
CHAPTER 174. COMMUTER RAIL DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 174.001. DEFINITION OF PERSON. In this chapter:
(1) “person” includes a corporation, as provided by
Section 312.011, Government Code; and
(2) the definition of “person” assigned by Section
311.005, Government Code, does not apply. (New.)
Sec. 174.002. DEFINITIONS. In this chapter:
(1) “Board” means a district’s board of directors.
(2) “Commuter rail facility” means any property
necessary for the transportation of passengers and baggage between
locations in a district. The term includes rolling stock,
locomotives, stations, parking areas, and rail lines.
(3) “Director” means a board member.
(4) “District” means a commuter rail district created
under this chapter or under Article 6550c-3, Revised Statutes, as
that article existed before April 1, 2011.
(5) “System” means all of the commuter rail and
intermodal facilities leased or owned by or operated on behalf of a
district. (V.A.C.S. Art. 6550c-3, Secs. 1(2), (5), (7); New.)
Sec. 174.003. NATURE OF DISTRICT. (a) A district is a
public body and a political subdivision of this state exercising
public and essential governmental functions.
(b) A district, in the exercise of powers under this
chapter, is performing only governmental functions and is a
governmental unit under Chapter 101, Civil Practice and Remedies
Code. (V.A.C.S. Art. 6550c-3, Sec. 4(a) (part).)
Sec. 174.004. REQUIREMENT FOR SERVICE TO MUNICIPALITIES IN
DISTRICT. A municipality located in a district that wishes to be
served by commuter rail facilities of the district must pay for
construction of a commuter rail station. (V.A.C.S. Art. 6550c-3,
Sec. 9.)
[Sections 174.005-174.050 reserved for expansion]
SUBCHAPTER B. CREATION
Sec. 174.051. CREATION OF DISTRICT. (a) A district may be
created to provide commuter rail service to counties along the
Texas-Mexico border.
(b) The commissioners court of a county may create a
commuter rail district on adoption of an order favoring the
creation. (V.A.C.S. Art. 6550c-3, Sec. 2.)
[Sections 174.052-174.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS AND EMPLOYEES
Sec. 174.101. CONTROL OF DISTRICT. A district is governed
by a board of directors. The board is responsible for the
management, operation, and control of the district. (V.A.C.S. Art.
6550c-3, Sec. 3(a).)
Sec. 174.102. COMPOSITION OF BOARD; TERMS. (a) The board
is composed of five directors appointed as follows:
(1) one director appointed by the county judge; and
(2) one director appointed by each county
commissioner.
(b) Each director serves a four-year term. The board may
provide for the staggering of the terms of its directors. (V.A.C.S.
Art. 6550c-3, Sec. 3(b).)
Sec. 174.103. PRESIDING OFFICER. (a) The directors shall
elect one director as presiding officer.
(b) The presiding officer may select another director to
preside in the absence of the presiding officer. (V.A.C.S. Art.
6550c-3, Sec. 3(c).)
Sec. 174.104. MEETINGS. The presiding officer shall call
at least one meeting of the board each year and may call other
meetings as the presiding officer determines are appropriate.
(V.A.C.S. Art. 6550c-3, Sec. 3(d).)
Sec. 174.105. RULES FOR PROCEEDINGS. The board shall adopt
rules for its proceedings. (V.A.C.S. Art. 6550c-3, Sec. 3(f)
(part).)
Sec. 174.106. COMPENSATION; REIMBURSEMENT. A director is
not entitled to compensation for serving as a director but is
entitled to reimbursement for reasonable expenses incurred while
serving as a director. (V.A.C.S. Art. 6550c-3, Sec. 3(e).)
Sec. 174.107. EMPLOYEES. The board may employ and
compensate persons to carry out the powers and duties of the
district. (V.A.C.S. Art. 6550c-3, Sec. 3(f) (part).)
Sec. 174.108. EXECUTIVE COMMITTEE. The board shall appoint
an executive committee. (V.A.C.S. Art. 6550c-3, Sec. 3(f) (part).)
Sec. 174.109. RETIREMENT BENEFITS. A district is eligible
to participate in the Texas County and District Retirement System.
(V.A.C.S. Art. 6550c-3, Sec. 4(p).)
[Sections 174.110-174.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 174.151. GENERAL POWERS OF DISTRICT; GOVERNMENTAL
FUNCTIONS. (a) A district has all the powers necessary or
convenient to carry out the purposes of this chapter.
(b) A district may perform any act necessary for the full
exercise of the district’s powers. (V.A.C.S. Art. 6550c-3, Secs.
4(a) (part), (j) (part).)
Sec. 174.152. RULES. To protect the health, safety, and
general welfare of district residents and people who use district
services, 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, or telephone or utility service. (V.A.C.S.
Art. 6550c-3, Sec. 4(g).)
Sec. 174.153. AGREEMENTS GENERALLY. A district may make
contracts, leases, and agreements with the United States, this
state and its agencies and political subdivisions, and other
persons and entities. (V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
Sec. 174.154. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
A district may:
(1) make agreements with a public utility, private
utility, communication system, common carrier, state agency, or
transportation system for the joint use of facilities,
installations, or property inside or outside the district; and
(2) establish:
(A) through routes; and
(B) joint fares. (V.A.C.S. Art. 6550c-3, Sec.
4(f).)
Sec. 174.155. JOINT OWNERSHIP AGREEMENTS. A district may
enter into a joint ownership agreement with any person. (V.A.C.S.
Art. 6550c-3, Sec. 4(h).)
Sec. 174.156. INTERLOCAL AGREEMENTS WITH COMMISSION. The
commission may enter into an interlocal agreement with the district
under which the district may exercise a power or duty of the
commission for the development and efficient operation of an
intermodal corridor in the district. (V.A.C.S. Art. 6550c-3, Sec.
4(j) (part).)
Sec. 174.157. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
(a) A contract in the amount of more than $15,000 for the
construction of improvements or the purchase of material,
machinery, equipment, supplies, or any other property except real
property may be awarded only through competitive bidding after
notice is published in a newspaper of general circulation in the
district at least 15 days before the date set for receiving bids.
(b) The board may adopt rules governing the taking of bids
and the awarding of contracts.
(c) This section does not apply to:
(1) personal or professional services;
(2) the acquisition of an existing rail transportation
system; or
(3) a contract with a common carrier to construct
lines or to operate commuter rail service on lines wholly or partly
owned by the carrier. (V.A.C.S. Art. 6550c-3, Sec. 6.)
Sec. 174.158. EMINENT DOMAIN. (a) A district may exercise
the power of eminent domain to acquire:
(1) real property in fee simple; or
(2) an interest in real property less than fee simple
in, on, under, or above land, including an easement, right-of-way,
or right of use of airspace or subsurface space.
(b) The power of eminent domain under this section does not
apply to:
(1) land under the jurisdiction of the department; or
(2) a rail line owned by a common carrier or
municipality.
(c) To the extent possible, the district shall use existing
rail or intermodal transportation corridors for the alignment of
its system.
(d) An eminent domain proceeding is begun by the board’s
adoption of a resolution declaring that the district’s acquisition
of the property or interest described in the resolution:
(1) is a public necessity; and
(2) is necessary and proper for the construction,
extension, improvement, or development of commuter rail facilities
and is in the public interest.
(e) The resolution is conclusive evidence of the public
necessity of the proposed acquisition and that the real property or
interest in property is necessary for public use. (V.A.C.S. Art.
6550c-3, Sec. 4(e).)
Sec. 174.159. SUITS. (a) A district may:
(1) sue and be sued;
(2) institute and prosecute suits without giving
security for costs; and
(3) appeal from a judgment without giving a
supersedeas or cost bond.
(b) 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 a suit in eminent domain involving an
interest in land must be brought in the county in which the land is
located. (V.A.C.S. Art. 6550c-3, Sec. 4(b).)
[Sections 174.160-174.200 reserved for expansion]
SUBCHAPTER E. POWERS AND DUTIES RELATING TO ACQUISITION,
CONSTRUCTION, AND OPERATION OF COMMUTER RAIL FACILITIES
Sec. 174.201. GENERAL AUTHORITY OVER COMMUTER RAIL
FACILITIES. A district may acquire, construct, develop, own,
operate, and maintain intermodal and commuter rail facilities to
connect political subdivisions in the district. (V.A.C.S. Art.
6550c-3, Sec. 4(d) (part).)
Sec. 174.202. POWERS RELATING TO DISTRICT PROPERTY. A
district may acquire by grant, purchase, gift, devise, lease, or
otherwise and may hold, use, sell, lease, or dispose of property,
including a license, a patent, a right, or an interest, necessary,
convenient, or useful for the full exercise of its powers.
(V.A.C.S. Art. 6550c-3, Sec. 4(c).)
Sec. 174.203. USE AND ALTERATION OF PROPERTY OF ANOTHER
POLITICAL SUBDIVISION. (a) For a purpose described by Section
174.201, as necessary or useful in the construction,
reconstruction, repair, maintenance, and operation of the system,
and with the consent of a municipality, county, or other political
subdivision, a district may:
(1) use streets, alleys, roads, highways, and other
public ways of the political subdivision; and
(2) relocate, raise, reroute, change the grade of, or
alter, at the district’s expense, the construction of a publicly
owned or privately owned street, alley, highway, road, railroad,
electric line or facility, telegraph or telephone property or
facility, pipeline or facility, conduit or facility, and other
property.
(b) A district may not use or alter:
(1) a road or highway in the state highway system
without the permission of the commission; or
(2) a railroad without permission of the railroad.
(V.A.C.S. Art. 6550c-3, Sec. 4(d) (part).)
Sec. 174.204. RULES GOVERNING SYSTEM AND ROUTINGS. A
district by resolution may adopt rules governing the use,
operation, and maintenance of the system and may determine or
change a routing as the board considers advisable. (V.A.C.S. Art.
6550c-3, Sec. 4(k).)
Sec. 174.205. ACQUISITION OF PROPERTY. (a) A district may
purchase any interest in real property to acquire, construct, or
operate a commuter rail facility on terms and at a price to which
the district and the owner agree.
(b) The governing body of a municipality, a county, any
other political subdivision, or a public agency may convey the
title or the rights and easements to property needed by the district
for its purposes in connection with the acquisition, construction,
or operation of the system. (V.A.C.S. Art. 6550c-3, Sec. 4(d)
(part).)
Sec. 174.206. ACQUISITION OF ROLLING STOCK AND OTHER
PROPERTY. A district may acquire rolling stock or other property
under a conditional sales contract, lease, equipment trust
certificate, or other form of contract or trust agreement.
(V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
Sec. 174.207. COMPENSATION FOR USE OF SYSTEM FACILITIES.
(a) A district shall establish and maintain reasonable and
nondiscriminatory rates or other compensation for the use of the
facilities of the system acquired, constructed, operated,
regulated, or maintained by the district.
(b) Together with grants received by the district, the rates
or other compensation must be sufficient to produce revenue
adequate to:
(1) pay all expenses necessary for the operation and
maintenance of the district’s property and facilities;
(2) pay the principal of and interest on bonds issued
by the district payable wholly or partly from the revenue, as they
become due and payable; and
(3) fulfill the terms of agreements made with the
holders of bonds or with any person on their behalf. (V.A.C.S.
Art. 6550c-3, Sec. 4(i).)
Sec. 174.208. OPERATION OR USE CONTRACTS. (a) A district
may:
(1) lease all or part of the commuter rail facilities
to an operator; or
(2) contract for the use or operation of all or part of
the commuter rail facilities by an operator.
(b) To the maximum extent practicable, the district shall
encourage the participation of private enterprise in the operation
of commuter rail facilities.
(c) The term of an operating contract under this section may
not exceed 20 years. (V.A.C.S. Art. 6550c-3, Sec. 4(l).)
Sec. 174.209. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
OTHER POLITICAL SUBDIVISIONS. A district may contract with a
county or other political subdivision of this state for the
district to provide commuter rail transportation services to an
area outside the district on terms to which the parties agree.
(V.A.C.S. Art. 6550c-3, Sec. 4(m).)
[Sections 174.210-174.250 reserved for expansion]
SUBCHAPTER F. FINANCIAL PROVISIONS
Sec. 174.251. FISCAL YEAR. Unless the board changes the
fiscal year, the district’s fiscal year ends on September 30.
(V.A.C.S. Art. 6550c-3, Sec. 4(o) (part).)
Sec. 174.252. ANNUAL BUDGET. (a) Before beginning the
operation of commuter rail facilities, the board shall adopt an
annual operating budget specifying the district’s anticipated
revenue and expenses for the remainder of the fiscal year. The
district shall adopt an operating budget for each succeeding fiscal
year.
(b) The board must hold a public hearing before adopting
each budget except the initial budget. Notice of the hearing must
be published at least seven days before the date of the hearing in a
newspaper of general circulation in the district.
(c) A budget may be amended at any time if notice of the
proposed amendment is given in the notice of the meeting at which
the amendment will be considered.
(d) An expenditure that is not budgeted may not be made.
(V.A.C.S. Art. 6550c-3, Sec. 4(o) (part).)
Sec. 174.253. GRANTS AND LOANS. A district may accept
grants and loans from the United States, this state and its agencies
and political subdivisions, and other persons and entities.
(V.A.C.S. Art. 6550c-3, Sec. 4(j) (part).)
Sec. 174.254. DEPOSITORY. (a) The board by resolution
shall name one or more banks for the deposit of district funds.
(b) District funds are public funds and may be invested in
securities permitted by Chapter 2256, Government Code.
(c) To the extent district funds are not insured by the
Federal Deposit Insurance Corporation or its successor, the funds
shall be collateralized in the manner provided for county funds.
(V.A.C.S. Art. 6550c-3, Sec. 4(q).)
Sec. 174.255. PURCHASE OF ADDITIONAL INSURED PROVISIONS. A
district may purchase an additional insured provision to any
liability insurance contract. (V.A.C.S. Art. 6550c-3, Sec. 4(n).)
Sec. 174.256. TAX EXEMPTION. District property, material
purchases, revenue, and income and the interest on a bond or note
issued by a district are exempt from any tax imposed by this state
or a political subdivision of this state. (V.A.C.S. Art. 6550c-3,
Sec. 7.)
[Sections 174.257-174.300 reserved for expansion]
SUBCHAPTER G. BONDS
Sec. 174.301. REVENUE BONDS. A district may issue revenue
bonds and notes in amounts that the board considers necessary or
appropriate for the acquisition, purchase, construction,
reconstruction, repair, equipping, improvement, or extension of
its commuter rail facilities. (V.A.C.S. Art. 6550c-3, Sec. 5(a)
(part).)
Sec. 174.302. SECURITY FOR PAYMENT OF BONDS. (a) To
secure payment of district bonds or notes, the district may:
(1) encumber and pledge all or part of the revenue of
its commuter rail facilities; and
(2) encumber all or part of the property of the
commuter rail facilities and everything pertaining to them that is
acquired or to be acquired.
(b) Unless prohibited by the resolution or indenture
relating to outstanding bonds or notes, a district may encumber
separately any item of property. (V.A.C.S. Art. 6550c-3, Sec. 5(c)
(part).)
Sec. 174.303. BONDS AS AUTHORIZED INVESTMENTS AND SECURITY
FOR DEPOSITS OF PUBLIC FUNDS. (a) District bonds and notes are
legal and authorized investments for:
(1) a bank;
(2) a trust company;
(3) a savings and loan association; and
(4) an insurance company.
(b) The bonds and notes are:
(1) eligible to secure the deposit of public funds of
this state or a municipality, a county, a school district, or any
other political corporation or subdivision of this state; and
(2) lawful and sufficient security for the deposit to
the extent of the principal amount or market value of the bonds or
notes, whichever is less. (V.A.C.S. Art. 6550c-3, Sec. 5(d).)
Sec. 174.304. LIMIT ON POWER. (a) A revenue bond
indenture may limit the exercise of the power granted by Section
174.003, 174.109, 174.151, 174.152, 174.153, 174.154, 174.155,
174.156, 174.158, 174.159, 174.201, 174.202, 174.203, 174.204,
174.205, 174.206, 174.207, 174.208, 174.209, 174.251, 174.252,
174.253, 174.254, or 174.255.
(b) A limit applies while any of the revenue bonds issued
under the indenture are outstanding and unpaid. (V.A.C.S. Art.
6550c-3, Sec. 4(j) (part).)
[Sections 174.305-174.350 reserved for expansion]
SUBCHAPTER H. TAXES
Sec. 174.351. TAX AUTHORIZED. A district may impose any
kind of tax except an ad valorem property tax. (V.A.C.S. Art.
6550c-3, Sec. 8(a).)
Sec. 174.352. IMPOSITION OF TAX. (a) A district may not
impose a tax or increase the rate of an existing tax unless a
proposition proposing the imposition or rate increase is approved
by a majority of the votes received at an election held for that
purpose.
(b) Each new tax or rate increase must be expressed in a
separate proposition consisting of a brief statement of the nature
of the proposed tax.
(c) The notice of the election must contain a statement of
the base or rate of the proposed tax. (V.A.C.S. Art. 6550c-3, Secs.
8(b), (c), (d).)
Sec. 174.353. TAX RATE. (a) The board, subject to Section
174.352(a), may impose for a district a sales and use tax at the
rate of:
(1) one-quarter of one percent;
(2) one-half of one percent;
(3) three-quarters of one percent; or
(4) one percent.
(b) A district may not adopt a sales and use tax rate,
including a rate increase, that when combined with the rates of all
sales and use taxes imposed by other political subdivisions of this
state having territory in the district exceeds two percent in any
location in the district. (V.A.C.S. Art. 6550c-3, Secs. 8(e),
(f).)
Sec. 174.354. EFFECTIVE DATE OF TAX. A district’s sales and
use tax takes effect on the first day of the second calendar quarter
beginning after the election approving the tax. (V.A.C.S. Art.
6550c-3, Sec. 8(g).)
SECTION 2.05. Subchapter B, Chapter 452, Transportation
Code, is amended by adding Section 452.0561 to read as follows:
Sec. 452.0561. LIABILITY OF TRANSPORTATION ENTITY
PROVIDING PUBLIC TRANSPORTATION. (a) This section applies only to
a transportation entity created under:
(1) Subtitle C or D of Title 5 or Chapter 172, 173, or
174; or
(2) former Title 112, Revised Statutes.
(b) A transportation entity created for the purpose of
providing public transportation is a governmental unit under
Chapter 101, Civil Practice and Remedies Code, and the operations
of the entity are essential governmental functions and not
proprietary functions for any purpose, including the application of
Chapter 101, Civil Practice and Remedies Code.
(c) An independent contractor of a transportation entity
performing a function of the entity or an authority 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. (V.A.C.S. Art. 6550d.)
SECTION 2.06. Chapter 471, Transportation Code, is amended
by adding Section 471.009 to read as follows:
Sec. 471.009. ENHANCED PAVEMENT MARKING VISIBILITY AT
CERTAIN GRADE CROSSINGS. (a) In this section:
(1) “Grade crossing” and “reflecting material” have
the meanings assigned by Section 471.004.
(2) “Pavement markings” means markings applied or
attached to the surface of a roadway to regulate, warn, or guide
traffic.
(3) “Stop bar” means the marking that is applied or
attached to the surface of a roadway on either side of a grade
crossing and that indicates that a vehicle must stop at the grade
crossing.
(b) A county or municipality shall use standards developed
by the department in applying pavement markings or a stop bar at a
grade crossing if the cost of the markings or stop bar is paid
either entirely or partly from state or federal funds. In
developing its standards, the department shall follow the standards
in the Manual on Uniform Traffic Control Devices issued by the
United States Department of Transportation Federal Highway
Administration and, where appropriate, require the use of
reflecting materials. (V.A.C.S. Art. 6370c.)
SECTION 2.07. Title 66, Revised Statutes, is amended by
adding Article 4015g to read as follows:
Art. 4015g. SUITS FOR PENALTY. (a) A suit brought under
this title for recovery of penalties may be brought in any county in
which:
(1) a violation of this title is committed;
(2) the company or receiver has an agent or
representative; or
(3) the principal office of the company is located, or
in which a receiver resides.
(b) Of money collected from a penalty in this title:
(1) half, less the commission and expenses allowed by
law, shall be deposited in the state treasury; and
(2) the remainder shall be paid into the jury fund of
the county in which the suit may be maintained. (V.A.C.S. Art. 6477
(part).)
ARTICLE 3. TRANSFER OF PROVISIONS FROM TITLE 112, REVISED
STATUTES, TO NATURAL RESOURCES CODE
SECTION 3.01. Subchapter A, Chapter 81, Natural Resources
Code, is amended by adding Section 81.002 to read as follows:
Sec. 81.002. DEFINITION OF PERSON FOR CERTAIN PROVISIONS.
In this chapter:
(1) “person” includes a corporation, as provided by
Section 312.011, Government Code; and
(2) the definition of “person” assigned by Section
311.005, Government Code, does not apply. (New.)
SECTION 3.02. Subchapter B, Chapter 81, Natural Resources
Code, is amended by adding Sections 81.01001 through 81.01016 and
81.0165 to read as follows:
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
Sec. 81.01001. SUNSET PROVISION
Sec. 81.01002. CHAIRMAN
Sec. 81.01003. QUALIFICATIONS FOR OFFICE
Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE,

INTEREST
Sec. 81.01005. NAME AND SEAL
Sec. 81.01006. PROCEDURAL RULES
Sec. 81.01007. SUPPLIES
Sec. 81.01008. SESSIONS
Sec. 81.01009. RECORDS RESEARCH FEE
Sec. 81.01010. FEE FOR COPIES
Sec. 81.01011. METHOD OF MAKING PAYMENTS TO COMMISSION
Sec. 81.01012. GIFTS, GRANTS, AND DONATIONS
Sec. 81.01013. CONFLICT OF INTEREST
Sec. 81.01014. EQUAL EMPLOYMENT OPPORTUNITY
Sec. 81.01015. EMPLOYEE INCENTIVE PROGRAM
Sec. 81.01016. SEPARATION OF RESPONSIBILITIES
Sec. 81.0165. SALARY OF SECRETARY
Sec. 81.01001. SUNSET PROVISION. The Railroad Commission
of Texas is subject to Chapter 325, Government Code (Texas Sunset
Act). Unless continued in existence as provided by that chapter,
the commission is abolished September 1, 2013. (V.A.C.S. Art.
6445a.)
Sec. 81.01002. CHAIRMAN. The commissioners shall elect one
commissioner as the chairman. (V.A.C.S. Art. 6447 (part).)
Sec. 81.01003. QUALIFICATIONS FOR OFFICE. A commissioner
must be:
(1) a qualified voter under the constitution and laws;
and
(2) at least 25 years of age. (V.A.C.S. Art. 6447
(part).)
Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF
CONDUCT, AND CONFLICT OF INTEREST. A commissioner is subject to the
provisions of Chapter 572, Government Code, that apply to elected
officers, including the requirements governing personal financial
statements, standards of conduct, and conflicts of interest.
(V.A.C.S. Art. 6447 (part).)
Sec. 81.01005. NAME AND SEAL. (a) The commissioners are
known collectively as the “Railroad Commission of Texas.”
(b) The seal of the commission contains a star of five
points with the words “Railroad Commission of Texas” engraved on
it. (V.A.C.S. Art. 6447 (part).)
Sec. 81.01006. PROCEDURAL RULES. The commissioners may
adopt all rules necessary for the commission’s government and
proceedings. (V.A.C.S. Art. 6447 (part).)
Sec. 81.01007. SUPPLIES. The commissioners shall be
furnished necessary furniture, stationery, supplies, and expenses,
to be paid for on the order of the governor. (V.A.C.S. Art. 6447
(part).)
Sec. 81.01008. SESSIONS. The commission may hold sessions
at any place in this state when considered necessary. (V.A.C.S.
Art. 6447 (part).)
Sec. 81.01009. RECORDS RESEARCH FEE. The commission shall
charge a person who requests an examination or search of commission
records $5 for each half hour or fraction of a half hour that a
commission employee spends in the examination or search unless the
person requesting the search represents this state or a county.
(V.A.C.S. Art. 6447j.)
Sec. 81.01010. FEE FOR COPIES. (a) The commission may
charge a fee for copies of papers provided by the commission to a
person other than a department of this state.
(b) The fee for a copy of a paper, document, or record in the
commission’s office, including the certificate and seal to be
applied by the secretary, is 15 cents for each 100 words.
(c) This section does not authorize the commission to charge
a person a fee for a tariff sheet for the person’s own use if the
tariff sheet is in effect.
(d) The fees charged and collected under this section shall
be accounted for by the secretary of the commission and paid into
the treasury as provided by Chapter 603, Government Code.
(V.A.C.S. Art. 3922.)
Sec. 81.01011. METHOD OF MAKING PAYMENTS TO COMMISSION.
(a) The commission may authorize payment, as prescribed by the
commission, of a regulatory fee, fine, penalty, or charge for goods
and services by means of an electronic payment method or a credit
card issued by a financial institution chartered by a state or the
United States or issued by a nationally recognized credit
organization approved by the commission. A payment by the
authorized method may be made in person, by telephone, or through
the Internet.
(b) The commission may require a person who makes a payment
to the commission by means of an electronic payment method or credit
card to pay a discount or service charge in an amount reasonable and
necessary to reimburse the commission for the costs involved in
processing the payment.
(c) The commission may adopt rules as necessary to implement
this section. (V.A.C.S. Art. 6447n.)
Sec. 81.01012. GIFTS, GRANTS, AND DONATIONS. (a) In this
section, “contested case” has the meaning assigned by Section
2001.003, Government Code.
(b) The commission may apply for, request, solicit,
contract for, receive, accept, and administer gifts, grants, and
donations of money or other assistance from any source to carry out
any commission purpose or power.
(c) The commission may not, under Subsection (b), accept a
gift or donation of money or of property from a party in a contested
case during the period from the inception of the contested case
until the 30th day after the date a final order is signed in the
contested case. (V.A.C.S. Art. 6447i.)
Sec. 81.01013. CONFLICT OF INTEREST. (a) In this section,
“Texas trade association” means a cooperative and voluntarily
joined association of business or professional competitors in this
state designed to assist its members and its industry or profession
in dealing with mutual business or professional problems and in
promoting their common interest.
(b) A person may not be an employee of the commission
employed in a “bona fide executive, administrative, or professional
capacity,” as that phrase is used for purposes of establishing an
exemption to the overtime provisions of the federal Fair Labor
Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in a business or industry
regulated by the commission; or
(2) the person’s spouse is an officer, manager, or paid
consultant of a Texas trade association in a business or industry
regulated by the commission.
(c) A person who is required to register as a lobbyist under
Chapter 305, Government Code, may not act as the general counsel to
the commission.
(d) The commission shall provide to commissioners and to
agency employees, as often as necessary, information regarding the
requirements for office or employment under this chapter, including
information regarding a person’s responsibilities under applicable
laws relating to standards of conduct for state officers or
employees. (V.A.C.S. Art. 6447c.)
Sec. 81.01014. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
commission shall prepare and maintain a written policy statement
that implements a program of equal employment opportunity to ensure
that all personnel decisions are made without regard to race,
color, disability, sex, religion, age, or national origin.
(b) The policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, training, and promotion of
personnel, that show the intent of the commission to avoid the
unlawful employment practices described by Chapter 21, Labor Code;
and
(2) an analysis of the extent to which the composition
of the commission’s personnel is in accordance with state and
federal law and a description of reasonable methods to achieve
compliance with state and federal law.
(c) The policy statement must:
(1) be updated annually;
(2) be reviewed by the Texas Workforce Commission
civil rights division for compliance with Subsection (b); and
(3) be filed with the governor’s office. (V.A.C.S.
Art. 6447b.)
Sec. 81.01015. EMPLOYEE INCENTIVE PROGRAM. The commission
shall provide to commission employees information and training on
the benefits and methods of participation in the state employee
incentive program. (V.A.C.S. Art. 6447m.)
Sec. 81.01016. SEPARATION OF RESPONSIBILITIES. The
commission shall develop and implement policies that clearly
separate the policy-making responsibilities of the commissioners
and the management responsibilities of the staff of the commission.
(V.A.C.S. Art. 6447k.)
Sec. 81.0165. SALARY OF SECRETARY. The salary of the
secretary of the commission shall be the amount appropriated for
that purpose by the legislature. (V.A.C.S. Art. 6447a.)
SECTION 3.03. Subchapter C, Chapter 81, Natural Resources
Code, is amended by adding Sections 81.0591, 81.0592, 81.062,
81.063, and 81.064 to read as follows:
SUBCHAPTER C. JURISDICTION, POWERS, AND DUTIES
Sec. 81.0591. COMPLAINTS
Sec. 81.0592. CONSUMER INTEREST INFORMATION
Sec. 81.062. PUBLIC PARTICIPATION
Sec. 81.063. ISSUANCE, SUSPENSION, OR REVOCATION OF
LICENSE, PERMIT, OR CERTIFICATE
Sec. 81.064. POWERS OF COMMISSIONER OR DESIGNATED
EMPLOYEE IN CASES BEFORE COMMISSION
Sec. 81.0591. COMPLAINTS. (a) The commission shall
maintain a file on each written complaint filed with the
commission. The file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the
commission;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed,
if the commission closed the file without taking action other than
to investigate the complaint.
(b) The commission shall provide to the person filing the
complaint and to each person who is a subject of the complaint a
copy of the commission’s policies and procedures relating to
complaint investigation and resolution.
(c) The commission, at least quarterly until final
disposition of the complaint, shall notify the person filing the
complaint and each person who is a subject of the complaint of the
status of the investigation unless the notice would jeopardize an
undercover investigation. (V.A.C.S. Art. 6447h.)
Sec. 81.0592. CONSUMER INTEREST INFORMATION. (a) The
commission shall prepare information of consumer interest
describing the regulatory functions of the commission and the
procedures by which consumer complaints are filed with and resolved
by the commission.
(b) The commission shall make the information available to
the public and appropriate state agencies. (V.A.C.S. Art. 6447g.)
Sec. 81.062. PUBLIC PARTICIPATION. The commission shall
develop and implement policies that provide the public with a
reasonable opportunity to appear before the commission and to speak
on any issue under the jurisdiction of the commission. (V.A.C.S.
Art. 6447l.)
Sec. 81.063. ISSUANCE, SUSPENSION, OR REVOCATION OF
LICENSE, PERMIT, OR CERTIFICATE. (a) If the commission proposes
to suspend or revoke a person’s license, permit, or certificate of
public convenience and necessity, the person is entitled to a
hearing before the commission.
(b) The commission may not:
(1) refuse to issue a license, permit, or certificate
to a person because of the person’s race, religion, color, sex, or
national origin; or
(2) revoke or suspend the license, permit, or
certificate of a person because of the person’s race, religion,
color, sex, or national origin. (V.A.C.S. Arts. 6447f(a), (c).)
Sec. 81.064. POWERS OF COMMISSIONER OR DESIGNATED EMPLOYEE
IN CASES BEFORE COMMISSION. (a) In a case before the commission, a
commissioner, or an authorized commission employee, designated by
the commission for that purpose, in the same manner as if the entire
commission were present, may:
(1) hold a hearing;
(2) conduct an investigation;
(3) make a record of a hearing or investigation for the
use and benefit of the commission;
(4) administer an oath;
(5) certify to an official act; and
(6) compel the attendance of a witness and the
production of papers, books, accounts, and other pertinent
documents and testimony.
(b) The record of a hearing or investigation made under this
section that is certified to by the commissioner or employee has the
same effect as if made before the commission. The commission shall
determine a case in which the record is made under this section in
the same manner as if the record had been made before the
commission.
(c) The commission may punish for contempt a person who:
(1) refuses to comply with this section; or
(2) obstructs or attempts to obstruct a proceeding
under this section. (V.A.C.S. Art. 6519a (part).)
SECTION 3.04. Subchapter D, Chapter 81, Natural Resources
Code, is amended by adding Section 81.093 to read as follows:
Sec. 81.093. DEPOSITIONS. (a) In a matter pending for
hearing before the commission or a division of the commission, the
commission or an interested party may produce the testimony of a
witness by written or oral deposition instead of compelling the
personal attendance of the witness. For that purpose, the
commission may issue a commission or other process necessary to
take a deposition.
(b) The deposition shall be taken, to the extent applicable
and to the greatest extent possible, in accordance with the
provisions of the Texas Rules of Civil Procedure relating to
written and oral depositions. (V.A.C.S. Art. 6472a.)
ARTICLE 4. CONFORMING AMENDMENTS
SECTION 4.01. Section 101.0817, Government Code, is amended
to read as follows:
Sec. 101.0817. STATUTORY COUNTY COURT FEES AND COSTS UNDER
OTHER LAWS. The clerk of a statutory county court shall collect
a fee of $10 under Section 112.059, Transportation Code [Article
6327, Vernon’s Texas Civil Statutes], for a county attorney in a
suit regarding a railroad company’s failure to keep roadbed and
right-of-way in proper condition.
SECTION 4.02. Subsection (c), Section 91.004,
Transportation Code, is amended to read as follows:
(c) Subsection (b) does not apply to money appropriated or
allocated:
(1) to a transit authority described by Chapter 451, a
transportation authority described by Chapter 452 or 460, or a
transit department described by Chapter 453; or
(2) for use by:
(A) a port authority or navigation district
created or operating under Section 52, Article III, or Section 59,
Article XVI, Texas Constitution; or
(B) a district created under Chapter 172 of this
code or Chapter 623, Acts of the 67th Legislature, Regular Session,
1981 (former Article 6550c, Vernon’s Texas Civil Statutes).
SECTION 4.03. Subdivisions (2), (4), and (5), Section
171.001, Transportation Code, are amended to read as follows:
(2) “Bonds” has the meaning assigned by Section
172.001 [Chapter 623, Acts of the 67th Legislature, Regular
Session, 1981 (Article 6550c, Vernon’s Texas Civil Statutes)].
(4) “Rail facilities” has the meaning assigned by
Section 172.001 [Chapter 623, Acts of the 67th Legislature, Regular
Session, 1981 (Article 6550c, Vernon’s Texas Civil Statutes)],
except that the term includes property and interests necessary or
convenient for the provision of a nonrural rail transportation
system.
(5) “Revenue” [“Revenues”] has the meaning assigned by
Section 172.001 [Chapter 623, Acts of the 67th Legislature, Regular
Session, 1981 (Article 6550c, Vernon’s Texas Civil Statutes)].
SECTION 4.04. Section 171.002, Transportation Code, is
amended to read as follows:
Sec. 171.002. APPLICABILITY OF RURAL RAIL TRANSPORTATION
DISTRICTS LAW. (a) Except as provided by this chapter, the
provisions of Chapter 172 other than Section 172.003 [Sections 2-9,
Chapter 623, Acts of the 67th Legislature, Regular Session, 1981
(Article 6550c, Vernon’s Texas Civil Statutes),] apply to a
district as if the district were created under that chapter.
(b) For purposes of applying Chapter 172 [623, Acts of the
67th Legislature, Regular Session, 1981 (Article 6550c, Vernon’s
Texas Civil Statutes),] to a district created under this chapter, a
reference to “rail facilities” in Chapter 172 [Chapter 623] means
“rail facilities” as defined by Section 171.001.
(c) For purposes of applying Chapter 172 [623, Acts of the
67th Legislature, Regular Session, 1981 (Article 6550c, Vernon’s
Texas Civil Statutes),] to a district created under this chapter, a
reference in Chapter 172 [Chapter 623] to “eligible county” means a
county that created the district.
SECTION 4.05. Section 171.053, Transportation Code, is
amended to read as follows:
Sec. 171.053. INTERMUNICIPAL COMMUTER RAIL DISTRICT
POWERS. The governing bodies of the county or counties and of the
most populous municipality in the most populous county may provide
that the district may exercise the powers of an intermunicipal
commuter rail district created under Chapter 173 or former Article
6550c-1, Revised Statutes, by specifying in the concurrent order or
ordinance creating the district that those powers may be exercised
by the district.
SECTION 4.06. Section 171.154, Transportation Code, is
amended to read as follows:
Sec. 171.154. INTERMUNICIPAL COMMUTER RAIL POWERS.
(a) The district may exercise the powers of an intermunicipal
commuter rail district created under Chapter 173 or former Article
6550c-1, Revised Statutes, only if the concurrent order or
ordinance creating the district specifies that the district may
exercise those powers. The order or ordinance may not grant the
district the power to impose a tax.
(b) In the event of a conflict between this chapter and a
power granted by Chapter 173 [Article 6550c-1, Revised Statutes],
this chapter controls. In the event of a conflict between Chapter
173 [Article 6550c-1] and Chapter 172 [Chapter 623, Acts of the 67th
Legislature, Regular Session, 1981 (Article 6550c, Vernon’s Texas
Civil Statutes)], Chapter 172 [Article 6550c] controls over Chapter
173 [Article 6550c-1].
SECTION 4.07. Section 171.251, Transportation Code, is
amended to read as follows:
Sec. 171.251. PLEDGE OF REVENUE [REVENUES]. A district may
secure and pledge revenue [revenues] derived from any source to
secure the payment of district bonds.
SECTION 4.08. Section 171.302, Transportation Code, is
amended to read as follows:
Sec. 171.302. DISSOLUTION. In addition to the dissolution
procedures provided by Chapter 172 [Chapter 623, Acts of the 67th
Legislature, Regular Session, 1981 (Article 6550c, Vernon’s Texas
Civil Statutes)], the board may dissolve a district if:
(1) all district liabilities have been paid or
adequate provision has been made for the payment of all
liabilities;
(2) the district is not a party to any lawsuits or
adequate provision has been made for the satisfaction of any
judgment or order that may be entered against the district in a
lawsuit to which the district is a party; and
(3) the district has commitments from other
governmental entities to assume jurisdiction of all district rail
facilities.
SECTION 4.09. Subsection (d), Section 370.186,
Transportation Code, is amended to read as follows:
(d) An authority may not construct, maintain, or operate a
passenger rail facility within the boundaries of an intermunicipal
commuter rail district created under former Article 6550c-1,
Vernon’s Texas Civil Statutes, as those boundaries existed on
September 1, 2005, unless the district and the authority enter into
a written agreement specifying the terms and conditions under which
the project will be undertaken.
SECTION 4.10. Subsection (d), Section 452.056,
Transportation Code, is amended to read as follows:
(d) A private operator who contracts with an authority under
this chapter is not a public entity for purposes of any law of this
state except that an independent contractor of the authority that,
on or after June 14, 1989, performs a function of the authority or
an entity described by Section 452.0561 [under Title 112, Revised
Statutes,] that is created to provide transportation services is
liable for damages only to the extent that the authority or entity
would be liable if the authority or entity itself were performing
the function and only for a cause of action that accrues on or after
that date.
SECTION 4.11. Subsection (b), Section 25.07, Tax Code, as
amended by Chapters 609, 885, and 1169, Acts of the 80th
Legislature, Regular Session, 2007, is reenacted and amended to
read as follows:
(b) Except as provided by Sections 11.11(b) and (c), a
leasehold or other possessory interest in exempt property may not
be listed if:
(1) the property is permanent university fund land;
(2) the property is county public school fund
agricultural land;
(3) the property is a part of a public transportation
facility owned by a municipality or county and:
(A) is an airport passenger terminal building or
a building used primarily for maintenance of aircraft or other
aircraft services, for aircraft equipment storage, or for air
cargo;
(B) is an airport fueling system facility;
(C) is in a foreign-trade zone:
(i) that has been granted to a joint airport
board under Subchapter C, Chapter 681, Business & Commerce Code;
(ii) the area of which in the portion of the
zone located in the airport operated by the joint airport board does
not exceed 2,500 acres; and
(iii) that is established and operating
pursuant to federal law; or
(D)(i) is in a foreign trade zone established
pursuant to federal law after June 1, 1991, that [which] operates
pursuant to federal law;
(ii) is contiguous to or has access via a
taxiway to an airport located in two counties, one of which has a
population of 500,000 or more according to the federal decennial
census most recently preceding the establishment of the foreign
trade zone; and
(iii) is owned, directly or through a
corporation organized under the Development Corporation Act
(Subtitle C1, Title 12, Local Government Code), by the same
municipality that [which] owns the airport;
(4) the interest is in a part of:
(A) a park, market, fairground, or similar public
facility that is owned by a municipality; or
(B) a convention center, visitor center, sports
facility with permanent seating, concert hall, arena, or stadium
that is owned by a municipality as such leasehold or possessory
interest serves a governmental, municipal, or public purpose or
function when the facility is open to the public, regardless of
whether a fee is charged for admission;
(5) the interest involves only the right to use the
property for grazing or other agricultural purposes; [or]
(6) the property is:
(A) owned by a municipality, a public port, or a
navigation district created or operating under Section 59, Article
XVI, Texas Constitution, or under a statute enacted under Section
59, Article XVI, Texas Constitution; and
(B) used as an aid or facility incidental to or
useful in the operation or development of a port or waterway or in
aid of navigation-related commerce; or
(7) [(8)] the property is part of a rail facility
owned by a rural rail transportation district [created or]
operating under Chapter 172, Transportation Code [623, Acts of the
67th Legislature, Regular Session, 1981 (Article 6550c, Vernon’s
Texas Civil Statutes)].
ARTICLE 5. REPEALER
SECTION 5.01. (a) The following provisions are repealed:
(1) Title 112, Revised Statutes;
(2) Article 3922, Revised Statutes;
(3) Chapter 480 (H.B. 1656), Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6370c, Vernon’s Texas
Civil Statutes);
(4) Section 1, Chapter 140 (H.B. 525), Acts of the 40th
Legislature, Regular Session, 1927 (Article 6447a, Vernon’s Texas
Civil Statutes);
(5) Section 1, Chapter 43 (H.B. 105), Acts of the 41st
Legislature, 5th Called Session, 1930 (Article 6472a, Vernon’s
Texas Civil Statutes);
(6) Section 1, Chapter 262 (S.B. 125), Acts of the 41st
Legislature, Regular Session, 1929 (Article 6519a, Vernon’s Texas
Civil Statutes);
(7) Section 8, Chapter 65 (S.B. 389), Acts of the 67th
Legislature, Regular Session, 1981 (Article 6519c, Vernon’s Texas
Civil Statutes); and
(8) Chapter 623 (H.B. 1822), Acts of the 67th
Legislature, Regular Session, 1981 (Article 6550c, Vernon’s Texas
Civil Statutes).
(b) The repeal of Title 112, Revised Statutes, by this Act
does not affect the validity of statutes that were not added to
Title 112, Revised Statutes, by the legislature, but were
unofficially printed in that title by any publisher of the Texas
statutes, except as those articles are specifically repealed in
Subsection (a) of this section.
ARTICLE 6. LEGISLATIVE INTENT; EFFECTIVE DATE
SECTION 6.01. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
This Act is enacted under Section 43, Article III, Texas
Constitution. No substantive change in law is intended by this Act.
SECTION 6.02. EFFECTIVE DATE. This Act takes effect April
1, 2011.

______________________________ ______________________________
President of the Senate Speaker of the House

I hereby certify that S.B. No. 1540 passed the Senate on
April 23, 2009, by the following vote: Yeas 30, Nays 0.

______________________________
Secretary of the Senate

I hereby certify that S.B. No. 1540 passed the House on
May 11, 2009, by the following vote: Yeas 147, Nays 0, two
present not voting.

______________________________
Chief Clerk of the House

Approved:

______________________________
Date

______________________________
Governor

Property Tax Protection Program™ Benefits

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