By: Martinez, Guerra (Senate Sponsor - Lucio) H.B. No. 1986          (In the Senate - Received from the House May 8, 2017;   May 10, 2017, read first time and referred to Committee on   Transportation; May 23, 2017, reported favorably by the following   vote:  Yeas 7, Nays 2; May 23, 2017, sent to printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to the creation of regional transit authorities; granting   the power of eminent domain; providing authority to issue bonds and   charge fees; creating a criminal offense.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle K, Title 6, Transportation Code, is   amended by adding Chapter 463 to read as follows:   CHAPTER 463. REGIONAL TRANSIT AUTHORITIES   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 463.001.  DEFINITIONS. In this chapter:                (1)  "Authority" means a regional transit authority   created under this chapter.                (2)  "Complementary transportation services" includes:                      (A)  special transportation services for a person   who is elderly or has a disability;                      (B)  medical transportation services;                      (C)  assistance in street modifications as   necessary to accommodate the public transportation system;                      (D)  construction of new general aviation   facilities or renovation or purchase of existing facilities not   served by certificated air carriers to relieve air traffic   congestion at existing facilities; and                      (E)  any other service that complements the public   transportation system, including providing parking garages.                (3)  "Executive committee" means the authority   directors who serve as the governing body of the authority.                (4)  "Mass transit system" means a system constructed   by an authority for the transportation of passengers and   hand-carried packages or baggage of a passenger by any means of   surface, overhead, or underground transportation, other than an   aircraft or taxicab.  The term includes a rail system and services   coordinated with a transit system operated by a municipality.                (5)  "Public transportation system" means:                      (A)  all property owned or held by an authority   for public transportation service purposes;                      (B)  real property, facilities, and equipment for   the protection and environmental enhancement of all the facilities;   and                      (C)  property held:                            (i)  in accordance with a contract with the   owner making the property subject to the control of or regulation by   the authority; and                            (ii)  for public transportation service   purposes.                (6)  "Regional high capacity transit" means intercity   transit service designed to transport more people than typical,   local fixed-route bus service by using dedicated lanes or   rights-of-way or by having transit priority, including queue jumps   or traffic signal priority. The term includes bus rapid transit,   light rail, commuter rail, streetcars, high occupancy toll lanes,   or other fixed guideway operations.                (7)  "Service plan" means an outline of the service   that would be provided by the authority to counties if confirmed at   an election.          Sec. 463.002.  APPLICATION. This chapter applies to:                (1)  a county that is contiguous to the Gulf of Mexico   or a bay or inlet opening into the gulf and that borders the United   Mexican States; and                (2)  a county that borders a county described by   Subdivision (1).          Sec. 463.003.  MUNICIPALITIES MAY PROVIDE TRANSPORTATION   SERVICES. This chapter does not prohibit a municipality from   providing public transportation services.  An authority may   coordinate the provision of services with the municipality and   include the services provided by the municipality in the   authority's service plan.   SUBCHAPTER B. POWERS OF AUTHORITIES          Sec. 463.051.  POWERS APPLICABLE TO CONFIRMED AUTHORITY.   This subchapter applies only to an authority that has been   confirmed.          Sec. 463.052.  NATURE OF AUTHORITY. (a) An authority:                (1)  is a public political entity and corporate body;                (2)  has perpetual succession; and                (3)  exercises public and essential governmental   functions.          (b)  The exercise of a power granted by this chapter,   including a power relating to a station or terminal complex, is for   a public purpose and is a matter of public necessity.          (c)  An authority is a governmental unit under Chapter 101,   Civil Practice and Remedies Code, and the operations of the   authority are not proprietary functions for any purpose including   the application of Chapter 101, Civil Practice and Remedies Code.          Sec. 463.053.  RESPONSIBILITY FOR CONTROL OF AUTHORITY.   Except as provided by Section 463.104, the executive committee is   responsible for the management, operation, and control of an   authority and its property.          Sec. 463.054.  GENERAL POWERS OF AUTHORITY. (a) An   authority has any power necessary or convenient to carry out this   chapter or to effect a purpose of this chapter.          (b)  An authority may sue and be sued. An authority may not   be required to give security for costs in a suit brought or   prosecuted by the authority and may not be required to give a   supersedeas or cost bond in an appeal of a judgment.          (c)  An authority may hold, use, sell, lease, dispose of, and   acquire, by any means, property and licenses, patents, rights, and   other interests necessary, convenient, or useful to the exercise of   any power under this chapter.          (d)  An authority may sell, lease, or dispose of in another   manner:                (1)  any right, interest, or property of the authority   that is not needed for, or, if a lease, is inconsistent with, the   efficient operation and maintenance of the public transportation   system; or                (2)  at any time, surplus materials or other property   that is not needed for the requirements of the authority or for   carrying out a power under this chapter.          (e)  An authority may leverage funds with a municipality that   provides public transportation services in the territory of the   authority to finance a project.          Sec. 463.055.  CONTRACTS; GRANTS AND LOANS. (a) An   authority may contract with any person.          (b)  An authority may accept a grant or loan from any person.          (c)  An authority may enter one or more agreements with any   municipality included in the territory of the authority for the   distribution of the authority's revenues.          (d)  An authority may enter into a contract with a private   entity under Chapter 2267, Government Code.          Sec. 463.056.  OPERATION OF PUBLIC TRANSPORTATION SYSTEM.   (a) An authority may:                (1)  acquire, construct, develop, plan, own, operate,   and maintain a public transportation system in the territory of the   authority, including the territory of a political subdivision;                (2)  contract with a municipality, county, or other   political subdivision for the authority to provide public   transportation services outside the authority; and                (3)  lease all or a part of the public transportation   system to, or contract for the operation of all or a part of the   public transportation system by, an operator.          (b)  An authority, as the authority determines advisable,   shall determine routes.          (c)  The executive committee may submit a referendum for the   approval of a power granted by Subsection (a) or (b).          (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   performs a function of the authority is liable for damages only to   the extent that the authority would be liable if the authority   itself were performing the function.          Sec. 463.057.  ACQUISITION OF PROPERTY BY AGREEMENT. An   authority may acquire rolling stock or other property under a   contract or trust agreement, including a conditional sales   contract, lease, and equipment trust certificate.          Sec. 463.058.  USE AND ACQUISITION OF PROPERTY OF OTHERS.   (a) For a purpose described by Section 463.056(a)(1) and as   necessary or useful in the construction, repair, maintenance, or   operation of the public transportation system, an authority may:                (1)  use a public way, including an alley; and                (2)  directly, or indirectly by another person,   relocate or reroute the property of another person or alter the   construction of the property of another person.          (b)  For an act authorized by Subsection (a)(2), an authority   may contract with the owner of the property to allow the owner to   make the relocation, rerouting, or alteration by the owner's own   means or through a contractor of the owner. The contract may   provide for reimbursement of the owner for costs or payment to the   contractor.          (b-1)  In this subsection, "telecommunications provider" has   the meaning assigned by Section 51.002, Utilities Code.   Notwithstanding Subsection (b), an authority may not relocate the   property of a telecommunications provider on behalf of the provider   without the provider's permission. An authority shall reimburse a   telecommunications provider for the cost of the relocation if   otherwise provided by law.          (c)  Except as otherwise provided by this subsection, an   authority may acquire by eminent domain any interest in real   property, including a fee simple interest. The right of eminent   domain may not be exercised in a manner that would authorize the   authority to run an authority vehicle on a railroad track that is   used to transport property.          (d)  If an authority, through the exercise of a power under   this chapter, makes necessary the relocation or rerouting of, or   alteration of the construction of, a road, alley, overpass,   underpass, railroad track, bridge, or associated property, an   electric, telegraph, telephone, or television cable line, conduit,   or associated property, or a water, sewer, gas, or other pipeline,   or associated property, the relocation or rerouting or alteration   of the construction must be accomplished at the sole cost and   expense of the authority, and damages that are incurred by an owner   of the property must be paid by the authority.          (e)  An authority may not begin an activity authorized under   Subsection (a) to alter or damage property of others, including   this state or a political subdivision of this state, without having   first received the written permission of the owner.          (f)  Subsection (e) does not apply if the power of eminent   domain is exercised.          Sec. 463.059.  EMINENT DOMAIN PROCEEDINGS. (a) An eminent   domain proceeding by an authority is initiated by the adoption by   the executive committee of a resolution, after notice and a   hearing, that:                (1)  describes the property interest to be acquired by   the authority;                (2)  declares the public necessity for and interest in   the acquisition; and                (3)  states that the acquisition is necessary and   proper for the construction, extension, improvement, or   development of the public transportation system.          (b)  A resolution adopted under this section is conclusive   evidence of the public necessity for the acquisition described in   the resolution and that the property interest is necessary for   public use.          (c)  Except as otherwise provided by this chapter, Chapter   21, Property Code, applies to an eminent domain proceeding by an   authority.          Sec. 463.060.  AGREEMENT WITH UTILITIES; CARRIERS. An   authority may agree with any other public or private utility,   communication system, common carrier, or transportation system   for:                (1)  the joint use in the authority of the property of   the agreeing entities; or                (2)  the establishment of through routes, joint fares,   or transfers of passengers.          Sec. 463.061.  FARES AND OTHER CHARGES. (a) An authority   shall impose reasonable and nondiscriminatory fares, tolls,   charges, rents, and other compensation for the use of the public   transportation system sufficient to produce revenue, together with   grants received by the authority, in an amount adequate to:                (1)  pay all expenses necessary to operate and maintain   the public transportation system;                (2)  pay when due the principal of and interest on, and   sinking fund and reserve fund payments agreed to be made with   respect to, all bonds that are issued by the authority and payable   wholly or partly from the revenue; and                (3)  fulfill the terms of any other agreement with the   holders of bonds described by Subdivision (2) or with a person   acting on behalf of the bondholders.          (b)  It is intended by this chapter that the compensation   imposed under Subsection (a) not exceed the amounts necessary to   produce revenue sufficient to meet the obligations of the authority   under this chapter.          (c)  Compensation for the use of the public transportation   system may be set according to a zone system or to another   classification that the authority determines to be reasonable.          (d)  The state agrees with holders of bonds issued under this   chapter not to alter the power given to an authority under this   section to impose fares, tolls, charges, rents, and other   compensation in amounts sufficient to comply with Subsection (a),   or to impair the rights and remedies of an authority bondholder, or   a person acting on behalf of a bondholder, until the bonds, interest   on the bonds, interest on unpaid installments of interest, costs   and expenses in connection with an action or proceeding by or on   behalf of a bondholder, and other obligations of the authority in   connection with the bonds are discharged.          Sec. 463.062.  ENFORCEMENT OF FARES AND OTHER CHARGES;   PENALTIES. (a) An executive committee by resolution may prohibit   the use of the public transportation system by a person without   payment of the appropriate fare for the use of the system and may   establish reasonable and appropriate methods to ensure that persons   using the public transportation system pay the appropriate fare for   that use.          (b)  An executive committee by resolution may provide that a   fare for or charge for the use of the public transportation system   that is not paid incurs a reasonable administrative fee.          (c)  An authority shall post signs designating each area in   which a person is prohibited from using the transportation system   without payment of the appropriate fare.          (d)  A person commits an offense if the person or another for   whom the person is criminally responsible under Section 7.02, Penal   Code, uses the public transportation system without paying the   appropriate fare.          (e)  If the person fails to provide proof that the person   paid the appropriate fare for the use of the public transportation   system and fails to pay any administrative fee assessed under   Subsection (b) on or before the 30th day after the date the   authority notifies the person that the person is required to pay the   amount of the fare and the administrative fee, it is prima facie   evidence that the person used the public transportation system   without paying the appropriate fare.          (f)  The notice required by Subsection (e) may be included in   a citation issued to the person by a peace officer under Article   14.06, Code of Criminal Procedure, or by a fare enforcement officer   under Section 463.063, in connection with an offense relating to   the nonpayment of the appropriate fare for the use of the public   transportation system.          (g)  It is an exception to the application of Subsection (d)   that on or before the 30th day after the date the authority notified   the person that the person is required to pay the amount of the fare   and any administrative fee assessed under Subsection (b), the   person:                (1)  provided proof that the person paid the   appropriate fare at the time the person used the transportation   system or at a later date or that the person was exempt from   payment; and                (2)  paid the administrative fee assessed under   Subsection (b), if applicable.          (h)  An offense under Subsection (d) is:                (1)  a misdemeanor punishable by a fine not to exceed   $100; and                (2)  not a crime of moral turpitude.          (i)  A justice court located in the territory of the   authority may enter into an agreement with the authority to try all   criminal cases that arise under Subsection (d). Notwithstanding   Articles 4.12 and 4.14, Code of Criminal Procedure, if a justice   court enters into an agreement with the authority:                (1)  a criminal case that arises under Subsection (d)   must be tried in the justice court; and                (2)  the justice court has exclusive jurisdiction in   all criminal cases that arise under Subsection (d).          Sec. 463.063.  FARE ENFORCEMENT OFFICERS. (a) An authority   may employ or contract for persons to serve as fare enforcement   officers to enforce the payment of fares for use of the public   transportation system by:                (1)  requesting and inspecting evidence showing   payment of the appropriate fare from a person using the public   transportation system; and                (2)  issuing a citation to a person described by   Section 463.062(d).          (b)  Before commencing duties as a fare enforcement officer,   a person must complete at least eight hours of training approved by   the authority that is appropriate to the duties required of a fare   enforcement officer.          (c)  While performing duties, a fare enforcement officer   shall:                (1)  wear a distinctive uniform, badge, or insignia   that identifies the person as a fare enforcement officer; and                (2)  work under the direction of the authority's chief   administrative officer.          (d)  A fare enforcement officer may:                (1)  request evidence showing payment of the   appropriate fare from passengers of the public transportation   system or evidence showing exemption from the payment requirement;                (2)  request personal identification or other   documentation designated by the authority from a passenger who does   not produce evidence showing payment of the appropriate fare on   request by the officer;                (3)  instruct a passenger to immediately leave the   public transportation system if the passenger does not possess   evidence showing payment or exemption from payment of the   appropriate fare; or                (4)  file a complaint in the appropriate court that   charges the person with an offense under Section 463.062(d).          (e)  A fare enforcement officer may not carry a weapon while   performing duties under this section unless the officer is a   certified peace officer.          (f)  A fare enforcement officer who is not a certified peace   officer is not a peace officer and has no authority to enforce a   criminal law, except as provided by this section.          Sec. 463.064.  ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANE   USAGE. (a) An executive committee by resolution may regulate or   prohibit improper entrance into, exit from, and vehicle occupancy   in high occupancy vehicle lanes operated, managed, or maintained by   the authority.          (b)  An executive committee by resolution may establish   reasonable and appropriate methods to enforce regulations or   prohibitions established under Subsection (a).          Sec. 463.065.  INSURANCE. (a) An authority may insure,   through purchased insurance policies or self-insurance programs,   or both, the legal liability of the authority and of its contractors   and subcontractors arising from the acquisition, construction, or   operation of the programs and facilities of the authority for:                (1)  personal or property damage; and                (2)  officers' and employees' liability.          (b)  An authority may use contracts, rating plans, and risk   management programs designed to encourage accident prevention.          (c)  In developing an insurance or self-insurance program,   an authority may consider the peculiar hazards, indemnity   standards, and past and prospective loss and expense experience of   the authority and of its contractors and subcontractors.          Sec. 463.066.  TAX EXEMPTION. The property, revenue, and   income of an authority are exempt from state and local taxes.          Sec. 463.067.  CONTINUATION OF EXISTING RAIL USE.  For   purposes of ownership or transfer of ownership of an interest in   real property, a rail mass transit system line operating on   property previously used by a railroad, railway, street railway, or   interurban railway is a continuation of existing rail use.          Sec. 463.068.  ELECTIONS. (a) In an election ordered by the   executive committee:                (1)  the executive committee shall give notice of the   election by publication in a newspaper of general circulation in   the authority at least once each week for three consecutive weeks,   with the first publication occurring at least 21 days before the   date of election; and                (2)  a resolution ordering the election and the   election notice must show, in addition to the requirements of the   Election Code, the hours of the election and polling places in   election precincts.          (b)  Subsection (a) does not apply to an election under   Section 463.309.          (c)  A copy of the notice of each election held under this   chapter shall be furnished to the Texas Transportation Commission   and the comptroller.          Sec. 463.069.  ADDITIONAL FEE.  (a)  In addition to a toll or   other charge imposed under Section 367.011 or other law, an entity   that operates an international bridge may impose a fee for the use   of the bridge as follows:                (1)  $1 for passenger vehicles;                (2)  $2 for commercial motor vehicles; and                (3)  25 cents for pedestrians.          (b)  Before a fee may be imposed under this section, the   entity must enter into a written agreement with an authority   relating to the imposition and disposition of the fee. The   agreement must provide:                (1)  for collection of the fee by the entity and   remittance of the authority's portion of the fee to the authority   each month; and                (2)  if more than one entity operates an international   bridge, for the division of the amount described by Subsection   (c)(1) among the entities.          (c)  Of the fees collected under this section:                (1)  25 percent shall be retained by the entity for   transportation projects or complementary transportation services;                (2)  50 percent shall be used for a rail mass transit   system; and                (3)  25 percent shall be used for regional high   capacity transit.          (d)  The percentage described by Subsection (c)(3) may be   retained by the entity if:                (1)  the entity is a mass transit provider; and                (2)  mass transit was provided in the municipality in   which the international bridge is located on or before January 1,   2017.   SUBCHAPTER C. MANAGEMENT OF AUTHORITY          Sec. 463.101.  POWERS AND AUTHORITY OF EXECUTIVE COMMITTEE.   (a) The executive committee may:                (1)  employ and prescribe the compensation for a chief   executive officer whom the committee may designate as the general   manager or the executive director;                (2)  appoint auditors and attorneys and prescribe their   duties, compensation, and tenure;                (3)  adopt a seal for the authority;                (4)  set the fiscal year for the authority;                (5)  establish a complete system of accounts for the   authority;                (6)  designate by resolution an authorized   representative of the authority to, according to terms prescribed   by the executive committee:                      (A)  invest authority funds; and                      (B)  withdraw money from authority accounts for   investments; and                (7)  designate by resolution an authorized   representative of the authority to supervise the substitution of   securities pledged to secure authority funds.          (b)  The executive committee is the local designated   recipient of funds committed to the authority by the federal   government.          Sec. 463.102.  INVESTMENTS. The executive committee shall   invest authority funds in any investment authorized for an entity   under Chapter 2256, Government Code.          Sec. 463.103.  DEPOSITORY; DEPOSIT OF FUNDS. (a) The   executive committee shall designate one or more banks as   depositories for authority funds.          (b)  All funds of an authority that are not otherwise   invested shall be deposited in one or more of the authority's   depository banks unless otherwise required by an order or   resolution authorizing the issuance of an authority bond or note or   other contractual undertaking.          (c)  Funds in a depository, to the extent that those funds   are not insured by the Federal Deposit Insurance Corporation, shall   be secured in the manner provided by law for the security of county   funds.          Sec. 463.104.  CHIEF EXECUTIVE: DUTIES. (a) The general   manager or executive director shall administer the daily operation   of an authority.          (b)  In conformity with the policy of the executive   committee, the general manager or executive director may:                (1)  employ persons to conduct the affairs of the   authority, including any operating or management company; and                (2)  remove any employee.          (c)  The general manager or executive director shall   prescribe the duties, tenure, and compensation of each person   employed.          Sec. 463.105.  RULES. (a) The executive committee by   resolution may adopt rules for the:                (1)  safe and efficient operation and maintenance of   the public transportation system;                (2)  use of the public transportation system and the   authority's services by the public and the payment of fares, tolls,   and other charges; and                (3)  regulation of privileges on property owned,   leased, or otherwise controlled by the authority.          (b)  The authority shall encourage to the maximum extent   feasible the participation of private enterprise.          (c)  A notice of each rule adopted by the executive committee   shall be published in a newspaper with general circulation in the   area in which the authority is located once each week for two   consecutive weeks after adoption of the rule. The notice must   contain a condensed statement of the substance of the rule and must   advise that a copy of the complete text of the rule is filed in the   principal office of the authority where the text may be read by any   person.          (d)  A rule becomes effective 10 days after the date of the   second publication of the notice under this section.          Sec. 463.106.  PURCHASES: COMPETITIVE BIDDING. (a) Except   as provided by Subsection (c) and as otherwise provided by this   chapter, an authority may not award a contract for construction,   services, or property, other than real property, except through the   solicitation of competitive sealed bids or proposals ensuring full   and open competition.          (b)  The authority shall describe in a solicitation each   factor to be used to evaluate a bid or proposal and give the   factor's relative importance.          (c)  The executive committee may authorize the negotiation   of a contract without competitive sealed bids or proposals if:                (1)  the aggregate amount involved in the contract is   less than the greater of:                      (A)  $50,000; or                      (B)  the amount of an expenditure under a contract   that would require a municipality to comply with Section   252.021(a), Local Government Code;                (2)  the contract is for construction for which not   more than one bid or proposal is received;                (3)  the contract is for services or property for which   there is only one source or for which it is otherwise impracticable   to obtain competition;                (4)  the contract is to respond to an emergency for   which the public exigency does not permit the delay incident to the   competitive process;                (5)  the contract is for personal or professional   services or services for which competitive bidding is precluded by   law;                (6)  the contract, without regard to form and which may   include bonds, notes, loan agreements, or other obligations, is for   the purpose of borrowing money or is a part of a transaction   relating to the borrowing of money, including:                      (A)  a credit support agreement, such as a line or   letter of credit or other debt guaranty;                      (B)  a bond, note, debt sale or purchase, trustee,   paying agent, remarketing agent, indexing agent, or similar   agreement;                      (C)  an agreement with a securities dealer,   broker, or underwriter; and                      (D)  any other contract or agreement considered by   the executive committee to be appropriate or necessary in support   of the authority's financing activities;                (7)  the contract is for work that is performed and paid   for by the day as the work progresses;                (8)  the contract is for the lease or purchase of an   interest in land;                (9)  the contract is for the purchase of personal   property sold:                      (A)  at an auction by a state licensed auctioneer;                      (B)  at a going out of business sale held in   compliance with Subchapter F, Chapter 17, Business & Commerce Code;   or                      (C)  by a political subdivision of this state, a   state agency, or an entity of the federal government;                (10)  the contract is for services performed by persons   who are blind or have severe disabilities;                (11)  the contract is for the purchase of electricity;                (12)  the contract is one for an authority project and   awarded for alternate project delivery using the procedures under   Subchapters E, F, G, and I, Chapter 2269, Government Code; or                (13)  the contract is for fare enforcement officer   services under Section 463.063.          (d)  For the purposes of entering into a contract authorized   by Subsection (c)(12), an authority is considered a "governmental   entity" as described by Section 2269.002, Government Code.          Sec. 463.107.  DURATION OF CONTRACTS. An authority may   contract for payment with debt obligations and for performance and   payments to extend longer than one fiscal year if the contract   provides for the discharge of the authority's contractual   obligations by any method, including:                (1)  committing current year funds or cancellation   charges; and                (2)  making the contract subject to the future   availability of funds.          Sec. 463.108.  SECURITY. The executive committee may   establish a security force and provide for the employment of   security personnel.          Sec. 463.109.  BUDGET RECOMMENDATIONS. The executive   committee shall make a proposed annual budget available to the   commissioners courts of the counties in the authority at least 30   days before the date of the adoption by the executive committee of   the final annual budget.          Sec. 463.110.  FINANCIAL AUDITS. (a) The executive   committee of an authority shall have an annual audit of the affairs   of the authority prepared by an independent certified public   accountant or a firm of independent certified public accountants.          (b)  The final audit report is open to public inspection.   SUBCHAPTER D. STATION OR TERMINAL COMPLEX SYSTEMS          Sec. 463.151.  STATION OR TERMINAL COMPLEX: SYSTEM PLAN.   (a) An authority may not acquire an interest in real property for a   station or terminal complex unless the station or terminal complex   is included in the public transportation system in a comprehensive   service plan approved by a resolution of the executive committee. A   mass transit facility of an authority is not a station or terminal   complex under this subchapter unless the facility is included in   the authority's comprehensive service plan under this section.          (b)  A station or terminal complex may not be included in a   public transportation system unless the executive committee first   finds that the station or complex:                (1)  will encourage and provide for efficient and   economical public transportation;                (2)  will facilitate access to public transportation   and provide for other public transportation purposes;                (3)  will reduce vehicular congestion and air   pollution; and                (4)  is reasonably essential to the successful   operation of the public transportation system.          (c)  On making a finding under Subsection (b), the executive   committee may amend the authority's comprehensive service plan to   include a station or terminal complex.          Sec. 463.152.  STATION OR TERMINAL COMPLEX: FACILITIES. A   station or terminal complex of an authority:                (1)  must include adequate provisions for the transfer   of passengers among the various means of transportation available   to the complex; and                (2)  may include provisions for residential,   institutional, recreational, commercial, and industrial   facilities.          Sec. 463.153.  STATION OR TERMINAL COMPLEX: LOCATION. An   authority shall determine the location of a station or terminal   complex after notice and a hearing.          Sec. 463.154.  TRANSFER OF REAL PROPERTY IN STATION OR   TERMINAL COMPLEX. (a) An authority may transfer to any person by   any means, including sale or lease, an interest in real property in   a station or terminal complex and may contract with respect to it,   in accordance with the comprehensive service plan approved by the   executive committee, and subject to terms:                (1)  the executive committee finds to be in the public   interest or necessary to carry out this section; and                (2)  specified in the instrument transferring the title   or right of use.          (b)  A transfer must be at the fair value of the interest   transferred considering the use designated for the real property in   the authority's comprehensive service plan.   SUBCHAPTER E. BONDS          Sec. 463.201.  DEFINITION. In this subchapter, "bond"   includes a note.          Sec. 463.202.  POWER TO ISSUE BONDS. (a) An authority may   issue bonds at any time and for any amounts it considers necessary   or appropriate for:                (1)  the acquisition, construction, repair, equipping,   improvement, or extension of its public transportation system; or                (2)  creating or funding self-insurance or retirement   or pension fund reserves.          (b)  An authority may exercise the powers granted to the   governing body of an issuer in connection with the issuance of   obligations and the execution of credit agreements under Chapter   1371, Government Code.          Sec. 463.203.  BOND TERMS. (a) An authority's bonds are   fully negotiable. An authority may make the bonds redeemable   before maturity at the price and subject to the terms and conditions   that are provided in the authority's resolution authorizing the   bonds. The authority's resolution authorizing the bonds may   contain any other terms the executive committee considers   appropriate.          (b)  A bond issued under this subchapter is not a debt or   pledge of the faith and credit of the state, a political subdivision   included in the boundaries of the authority, or any other political   subdivision of the state.          (c)  Each bond issued by an authority under this subchapter   must contain on its face a statement substantially to the effect   that:                (1)  the state, a political subdivision included in the   boundaries of the authority, or any other political subdivision of   the state is not obligated to pay the principal of or the interest   on the bond; and                (2)  the faith and credit and taxing power of the state,   a political subdivision included in the boundaries of the   authority, or any other political subdivision of the state are not   pledged to the payment of the principal of or the interest on the   bond.          Sec. 463.204.  SALE. An authority's bonds may be sold at a   public or private sale as determined by the executive committee to   be the more advantageous.          Sec. 463.205.  APPROVAL; REGISTRATION. (a) An authority's   bonds and the records relating to their issuance shall be submitted   to the attorney general for examination before the bonds may be   delivered.          (b)  If the attorney general finds that the bonds have been   issued in conformity with the constitution and this chapter and   that the bonds will be a binding obligation of the issuing   authority, the attorney general shall approve the bonds.          (c)  After the bonds are approved by the attorney general,   the comptroller shall register the bonds.          Sec. 463.206.  INCONTESTABILITY. Bonds are incontestable   after they are:                (1)  approved by the attorney general;                (2)  registered by the comptroller; and                (3)  sold and delivered to the purchaser.          Sec. 463.207.  SECURITY PLEDGED. (a) To secure the payment   of an authority's bonds, the authority may:                (1)  pledge any part of the revenue of the public   transportation system;                (2)  mortgage any part of the public transportation   system, including any part of the system subsequently acquired;                (3)  pledge all or part of funds the federal government   has committed to the authority as grants in aid; and                (4)  provide that a pledge of revenue described by   Subdivision (1) is a first or subordinate lien or charge against   that revenue.          (b)  Under Subsection (a)(2) an authority may, subject to the   terms of the bond indenture or the resolution authorizing the   issuance of the bonds, encumber a separate item of the public   transportation system and acquire, use, hold, or contract for the   property by lease, chattel mortgage, or other conditional sale   including an equipment trust transaction.          (c)  An authority may not issue bonds secured by ad valorem   tax revenue.          (d)  An authority is not prohibited by this subchapter from   encumbering one or more public transportation systems to purchase,   construct, extend, or repair one or more other public   transportation systems of the authority.          (e)  The authority may pledge funds described by Subsection   (a)(3):                (1)  as the sole security for the bonds; or                (2)  in addition to any other security described by   this section.          Sec. 463.208.  USE OF REVENUE. Revenue in excess of amounts   pledged under Section 463.207(a)(1) shall be used to:                (1)  pay the expenses of operation and maintenance of a   public transportation system, including salaries, labor,   materials, and repairs necessary to provide efficient service and   every other proper item of expense; and                (2)  fund operating reserves.          Sec. 463.209.  REFUNDING BONDS. An authority may issue   refunding bonds for the purposes and in the manner authorized by   general law, including Chapter 1207, Government Code.          Sec. 463.210.  BONDS AS AUTHORIZED INVESTMENTS. (a) An   authority's bonds are authorized investments for:                (1)  a bank;                (2)  a savings bank;                (3)  a trust company;                (4)  a savings and loan association; and                (5)  an insurance company.          (b)  The bonds, when accompanied by all appurtenant,   unmatured coupons and to the extent of the lesser of their face   value or market value, are eligible to secure the deposit of public   funds of this state, a political subdivision of this state, and any   other political corporation of this state.          Sec. 463.211.  EXCHANGE OF BONDS FOR EXISTING SYSTEM. An   authority's revenue bonds may be exchanged, instead of cash, for   the property of all or part of an existing public transportation   system to be acquired by the authority. If the property is owned by   a corporation that will dissolve simultaneously with the exchange,   the authority may acquire the stock of the corporation.          Sec. 463.212.  TAX EXEMPTION. The interest on bonds issued   by an authority is exempt from state and local taxes.   SUBCHAPTER F. EXECUTIVE COMMITTEE          Sec. 463.251.  COMPOSITION. (a)  The executive committee of   an authority is the board of directors of the regional planning   commission established for the area of the authority under Chapter   391, Local Government Code.          (b)  Service on the executive committee by a public officer   or employee is an additional duty of the office or employment.          Sec. 463.252.  OFFICERS. (a)  The officers elected by the   board of directors of the regional planning commission described by   Section 463.251(a) shall serve as the officers of the executive   committee.          (b)  The executive committee may appoint, as necessary,   members or nonmembers as assistant secretaries.          (c)  The secretary or assistant secretary shall:                (1)  keep permanent records of each proceeding and   transaction of the authority; and                (2)  perform other duties assigned by the executive   committee.          Sec. 463.253.  CONFLICTS OF INTEREST. Members of the   executive committee and officers of the authority are subject to   Chapter 171, Local Government Code.          Sec. 463.254.  MEETINGS. (a) The executive committee shall   hold at least one regular meeting each month to transact the   business of an authority.          (b)  On written notice, the presiding officer may call   special meetings as necessary.          (c)  The executive committee by resolution shall:                (1)  set the time, place, and day of the regular   meetings; and                (2)  adopt rules and bylaws as necessary to conduct   meetings.          Sec. 463.255.  VOTING REQUIREMENTS. A majority of the   members of the executive committee constitutes a quorum, and when a   quorum is present, action may be taken by a majority vote of the   members present unless the bylaws require a larger number for a   particular action.   SUBCHAPTER G. CREATION OF AUTHORITIES          Sec. 463.301.  CREATION OF AUTHORITY AUTHORIZED. The board   of directors of the regional planning commission established for   the area included in the boundaries of the counties to which this   chapter applies may initiate the process to create a regional   transit authority to provide public transportation services within   the boundaries of the counties.          Sec. 463.302.  INITIATING ORDER OR RESOLUTION: CONTENTS.   To initiate the process of creating an authority, the board of   directors described by Section 463.301 must adopt a resolution or   order containing the designation of each time and place for holding   public hearings on the proposal to create the authority.          Sec. 463.303.  NOTICE OF HEARING. (a) Notice of the time   and place of the public hearings on the creation of the authority   shall be published, beginning at least 30 days before the date of   the hearing, once a week for two consecutive weeks in a newspaper of   general circulation in each county.          (b)  The board of directors described by Section 463.301   shall give a copy of the notice to the Texas Transportation   Commission and the comptroller.          Sec. 463.304.  CONDUCT OF HEARING. (a) The board of   directors described by Section 463.301 creating an authority shall   conduct public hearings on the creation.          (b)  Any person may appear at a hearing and offer evidence   on:                (1)  the creation of the authority;                (2)  the operation of a public transportation system;                (3)  the public utility and public interest served in   the creation of an authority; or                (4)  other facts bearing on the creation of an   authority.          (c)  A hearing may be continued until completed.          Sec. 463.305.  RESOLUTION OR ORDER. (a) After hearing the   evidence presented at the hearings, but not earlier than 75 days   after the date the process is initiated by the board of directors   described by Section 463.301, the board may adopt a resolution or   order:                (1)  designating the name of the authority; and                (2)  authorizing the appointment of the interim   executive committee.          (b)  After the hearing, the results of the hearing shall be   sent to the Texas Department of Transportation and the comptroller.          Sec. 463.306.  INTERIM EXECUTIVE COMMITTEE. (a) The   interim executive committee is composed as provided by Section   463.251 for an executive committee except that the interim   executive committee must include an additional member who is a   member of the board of directors of a commuter rail district   described by Chapter 174.          (b)  The interim executive committee, after its   organization, shall develop a service plan.          (c)  Service on the interim executive committee by a public   officer or employee is an additional duty of the office or   employment.          Sec. 463.307.  APPROVAL OF SERVICE PLAN. Not later than the   45th day after the date the interim executive committee approves   the service plan, the commissioners court of each county creating   an authority must approve, by resolution or order, the service   plan.          Sec. 463.308.  NOTICE OF INTENT TO ORDER ELECTION. Not   earlier than the 61st day after the date the interim executive   committee approves a service plan, the interim executive committee   shall notify the commissioners court of each county included in the   boundaries of the authority of the interim executive committee's   intention to call a confirmation election.          Sec. 463.309.  CONFIRMATION ELECTION. The interim executive   committee in ordering the confirmation election shall submit to the   qualified voters of each county in the authority the following   proposition: "Shall the creation of (name of authority) be   confirmed?"          Sec. 463.310.  CONDUCT OF ELECTION. The interim executive   committee shall canvass the returns and declare the results of the   election separately with respect to each county.          Sec. 463.311.  RESULTS OF ELECTION; ORDER. (a)  The   authority is confirmed if a majority of the votes received in each   county favor the proposition.          (b)  If the authority continues, the interim executive   committee shall record the results in its minutes and adopt an   order:                (1)  declaring that the creation of the authority is   confirmed;                (2)  stating the date of the election;                (3)  containing the proposition; and                (4)  showing the number of votes cast for or against the   proposition in each county.          (c)  A certified copy of the order shall be filed with:                (1)  the Texas Department of Transportation; and                (2)  the comptroller.          (d)  If the authority does not continue, the interim   executive committee shall enter an order declaring that the result   of votes cast at the election is that the authority ceases in its   entirety. The order shall be filed with the Texas Department of   Transportation and the comptroller, and the authority is dissolved.          Sec. 463.312.  EFFECT OF CREATION. On the creation of an   authority the boundaries of which overlap the territory of a   commuter rail district described by Chapter 174, the commuter rail   district is dissolved, and all assets, including property, and all   liabilities, including debt and other obligations, of the commuter   rail district transfer to and are assumed by the authority.          Sec. 463.313.  COST OF ELECTION. The board of directors   described by Section 463.301 creating an authority shall pay the   cost of the confirmation election.          Sec. 463.314.  EXPIRATION OF UNCONFIRMED AUTHORITY. An   authority that has not been confirmed expires on the third   anniversary of the effective date of a resolution or order   initiating the process to create the authority.          SECTION 2.  Section 174.051, Transportation Code, is amended   by adding Subsection (c) to read as follows:          (c)  Notwithstanding Subsections (a) and (b), a district may   not be created in the boundaries of a regional transit authority   under Chapter 463.          SECTION 3.  Sections 463.058(c) and (f) and Section 463.059,   Transportation Code, as added by this Act, take effect only if this   Act receives a two-thirds vote of all the members elected to each   house.          SECTION 4.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2017.     * * * * *