CHAPTER 4501. TEXAS STATE RAILROAD AUTHORITY

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE D. PARKS AND RECREATION

CHAPTER 4501. TEXAS STATE RAILROAD AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 4501.001. DEFINITIONS. In this chapter:

(1) "Authority" means the Texas State Railroad Authority.

(2) "Board" means the authority's board of directors.

(3) "Director" means a board member.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.002. CREATION AND NATURE OF AUTHORITY. The Texas

State Railroad Authority is a special district created under

Section 59, Article XVI, Texas Constitution, for the development

of parks and recreational facilities.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.003. PURPOSES OF AUTHORITY. (a) The authority is

created to:

(1) purchase, own, hold, lease, and otherwise acquire facilities

or other property to operate and maintain the Texas State

Railroad;

(2) continue and improve the operation of the Texas State

Railroad as a public recreational, historical, and cultural

resource;

(3) operate concessions, museums, campgrounds, and other

facilities associated with the Texas State Railroad; and

(4) enhance, augment, and improve the historical, educational,

and cultural benefits offered by the Texas State Railroad.

(b) The creation of the authority is necessary to promote,

develop, encourage, and maintain employment, commerce,

transportation, tourism, recreation, the arts, entertainment,

economic development, and public welfare in Anderson and Cherokee

Counties.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

authority is created to serve a public use and benefit.

(b) All residents of this state will benefit from the works and

projects provided by the authority.

(c) The creation of the authority is in the public interest and

is essential to:

(1) further the public purposes of development and

diversification of the economy of the state;

(2) eliminate unemployment and underemployment; and

(3) develop and expand commerce, tourism, recreation, historical

awareness, education, and the arts.

(d) The authority will:

(1) promote the health, safety, and general welfare of

residents, employers, employees, visitors, and consumers in

Anderson and Cherokee Counties;

(2) preserve, maintain, and enhance the Texas State Railroad;

and

(3) preserve, maintain, and enhance the economic health and

vitality of Anderson and Cherokee Counties.

(e) The authority may not act as the agent or instrumentality of

any private interest, even though the authority will incidentally

benefit many private interests in addition to the paramount

public interest.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.005. GENERAL WATER DISTRICT LAW NOT APPLICABLE.

Chapter 49, Water Code, does not apply to the authority.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 4501.051. GOVERNING BODY; TERMS. (a) The authority is

governed by a board of seven voting directors appointed under

Section 4501.053, with three directors appointed by the City of

Palestine, three directors appointed by the City of Rusk, and one

director appointed by the other directors.

(b) Voting directors serve staggered three-year terms, with:

(1) as near as possible to one-third of the terms of directors

appointed by each city or other political subdivision expiring

September 1 of each year; and

(2) the term of the director appointed by the other directors

expiring October 1 of each third year.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.052. ELIGIBILITY. (a) To be qualified to serve as a

director, a person must be at least 21 years of age.

(b) A voting director may not serve more than three consecutive

terms.

(c) At least two of the three directors appointed by:

(1) the City of Palestine must reside in Anderson County; and

(2) the City of Rusk must reside in Cherokee County.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.053. APPOINTMENT OF DIRECTORS. (a) Not later than

August 31 of each year, by majority vote:

(1) the city council of the City of Palestine shall appoint as a

voting director one person proposed by the mayor of Palestine;

and

(2) the city council of the City of Rusk shall appoint as a

voting director one person proposed by the mayor of Rusk.

(b) Not later than September 30 of every third year, by majority

vote, the directors appointed under Subsection (a) shall appoint

a seventh director.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.054. NONVOTING DIRECTORS. (a) The following persons

serve as nonvoting directors:

(1) the mayor of the City of Palestine or a member of the city

council of the City of Palestine designated by the mayor; and

(2) the mayor of the City of Rusk or a member of the city

council of the City of Rusk designated by the mayor.

(b) A nonvoting director is not counted in determining the board

quorum.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.055. VACANCIES. A board vacancy is filled in the same

manner as the original appointment.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.056. VOTING AUTHORITY OF PRESIDENT. The board

president is a voting director but may vote only to break a tie.

All other voting directors are entitled to one vote on any issue

before the board.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.057. OFFICERS. (a) Each year, the board shall elect

from among the voting directors officers for the authority,

including a president, a vice president, a secretary, and a

treasurer.

(b) The president and the vice president may not be directors

appointed by the same city.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 4501.101. GENERAL POWERS. The authority has the powers

necessary to accomplish any authority purpose, including the

purposes specified in Section 4501.003.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.102. CONTRACT TO MANAGE OR OPERATE AUTHORITY PROPERTY.

The authority may contract with any person to manage or operate

all or part of authority property.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.103. COMPETITIVE BIDDING. (a) Except as provided by

Subsection (b), the competitive bidding requirements for a

municipality under Chapter 252, Local Government Code, apply to

the authority.

(b) A contract with a private person under Section 4501.102 or

4501.104(2) is exempt from the competitive bidding requirements

of Chapter 252, Local Government Code, or any other statute if

the contract:

(1) is entered into before the effective date of the Act

creating this chapter;

(2) is conditioned on the passage of the Act creating this

chapter; and

(3) is assigned by a party to the contract after the effective

date of the Act creating this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.104. GENERAL PROPERTY POWERS. The authority may:

(1) acquire, own, lease, operate, construct, maintain, repair,

improve, or extend improvements, equipment, or any other property

necessary to accomplish an authority purpose; or

(2) lease or otherwise convey authority property to private

parties for an authority purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.105. CONDITIONAL TRANSFER OF PROPERTY. (a) A

conveyance of authority property, including a lease, to a private

operator or any other person must be conditioned on an obligation

that the property must be used as provided by this section.

(b) The conveyance must provide that ownership of authority

property automatically reverts to the Parks and Wildlife

Department if the authority or a private operator:

(1) does not use the property:

(A) to support the operations of the Texas State Railroad; or

(B) in a manner that primarily promotes a state public interest;

or

(2) converts the Texas State Railroad to a static display.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.106. SURPLUS PROPERTY. The authority, with the

consent of the Parks and Wildlife Department, may dispose of

surplus property, including by exchanging the surplus property

with another person for other property, to improve the quality

and usefulness of property used by the authority.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.107. DISPOSITION OF PUBLIC PARKS AND RECREATIONAL

LANDS; EXEMPTION FROM APPLICABILITY OF OTHER LAW. Chapter 253,

Local Government Code, and Chapter 26, Parks and Wildlife Code,

do not apply to the use, transfer, or other disposition of

property by any method:

(1) to the authority by any person; or

(2) by the authority to any person.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.108. NONPROFIT CORPORATION. (a) The board by

resolution may authorize the creation of a nonprofit corporation

to assist the authority in implementing a project or providing a

service authorized by this chapter.

(b) The nonprofit corporation may implement any project and

provide any service authorized by this chapter.

(c) The board shall appoint the board of directors of the

nonprofit corporation.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.109. AUTHORITY TO SUE AND BE SUED; IMMUNITY. (a) The

authority may sue and be sued in this state.

(b) This section does not waive any governmental immunity that

would otherwise apply to the authority.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 4501.151. AD VALOREM TAXES PROHIBITED. The authority may

not impose an ad valorem tax.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.152. GRANTS; DONATIONS. The authority may accept

grants and donations, including property, for any authority

purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

Sec. 4501.153. GRANTS FROM OTHER TAXING AUTHORITY; CONTRACT.

(a) A taxing authority in Anderson or Cherokee County may by

contract grant to the authority:

(1) sales tax revenue received from a sale made on property

owned, controlled, or leased by the authority or by a person with

whom the authority contracts under Section 4501.102; or

(2) local hotel occupancy tax revenue received from a hotel

located within one mile of a place where the Texas State Railroad

loads or unloads passengers.

(b) The grant must serve a public purpose of the taxing

authority making the grant.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.

SUBCHAPTER E. DISSOLUTION

Sec. 4501.201. DISSOLUTION OF AUTHORITY; OUTSTANDING DEBT. (a)

The board may dissolve the authority regardless of whether the

authority has debt.

(b) If the authority has debt when it is dissolved, the

authority shall remain in existence solely for the purpose of

discharging its debts. The dissolution is effective when all

debts have been discharged.

Added by Acts 2007, 80th Leg., R.S., Ch.

568, Sec. 1, eff. June 16, 2007.