CHAPTER 460. COORDINATED COUNTY TRANSPORTATION AUTHORITIES
TRANSPORTATION CODE
TITLE 6. ROADWAYS
SUBTITLE K. MASS TRANSPORTATION
CHAPTER 460. COORDINATED COUNTY TRANSPORTATION AUTHORITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 460.001. DEFINITIONS. In this chapter:
(1) "Authority" means a coordinated county transportation
authority created under this chapter.
(2) "Balance of the county" means that part of the county that
is outside the boundaries of a municipality with a population of
12,000 or more.
(3) "Board of directors " means the governing body of the
authority.
(4) "Service plan" means an outline of the service that would be
provided by an authority.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 1, eff.
Sept. 1, 2003.
Sec. 460.002. APPLICABILITY. This chapter applies only to a
county that is adjacent to a county with a population of more
than one million.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.003. INELIGIBILITY OF CERTAIN MUNICIPALITIES. (a) A
municipality that is a member of a subregion of a transportation
authority governed by a board described in Subchapter O, Chapter
452, is not eligible to join or become a member of an authority
created under this chapter unless:
(1) the municipality holds a withdrawal election in accordance
with the requirements of Section 452.655 and a majority of the
voters at the election approve the withdrawal;
(2) the municipality has paid in full all amounts that it is
required to pay under Sections 452.659 and 452.660; and
(3) the comptroller has ceased under Section 452.658 to collect
sales and use taxes within the municipality that were levied and
collected in the municipality for purposes of the authority from
which the municipality has withdrawn.
(b) A municipality that is not eligible under this section for
membership in an authority created under this chapter may not be
added to or join an authority under Section 460.302 or 460.303
until the municipality meets the requirements of this section.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.004. REFERENCE. A reference in this chapter to the
executive committee means the board of directors.
Added by Acts 2003, 78th Leg., ch. 306, Sec. 2, eff. Sept. 1,
2003.
SUBCHAPTER B. CREATION OF AUTHORITY
Sec. 460.051. CREATION OF AUTHORITY. (a) The commissioners
court of a county may initiate the process to create an authority
to provide public transportation and transportation-related
services:
(1) on adoption of a resolution or order initiating the process
to create an authority; or
(2) on receipt of a petition requesting creation of an authority
signed by a number of registered voters of the county equal to or
greater than five percent of the votes cast in the county in the
most recent gubernatorial election.
(b) If a petition described by Subsection (a)(2) is received by
the commissioners court, the petition shall be verified by the
county clerk, consistent with Chapter 277, Election Code, and
returned to the commissioners court with a finding of
verification.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.052. HEARING. (a) The commissioners court shall hold
a public hearing on creation of an authority not later than the
60th day after the date the commissioners court:
(1) receives a petition described by Section 460.051(a)(2); or
(2) adopts a resolution or order to initiate the process to
create an authority.
(b) Notice of the time and place of the public hearing 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 the
county.
(c) Each municipality in the county with a population of 12,000
or more shall be notified of the public hearing by notice mailed
to the governing body of the municipality.
(d) Any person may appear at a hearing and offer evidence on:
(1) the creation of the authority;
(2) operation of the county transportation system;
(3) public interest served in the creation of the authority; or
(4) other facts relating to the creation of the authority.
(e) A hearing may be continued until completed.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.053. RESOLUTION OR ORDER. After the hearing, the
commissioners court may adopt a resolution or order:
(1) designating the name of the authority;
(2) stating that all land within the county shall be part of the
authority; and
(3) stating that the territory described in Subdivision (2) is
subject to the authority based on the results of the confirmation
election.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.054. MEMBERSHIP OF INTERIM EXECUTIVE COMMITTEE. (a)
After adopting a resolution or order under Section 460.053, the
commissioners court and certain municipalities, as provided by
this section, shall appoint an interim executive committee for
the authority.
(b) The interim executive committee is composed of:
(1) one member appointed by the governing body of each
municipality with a population of 12,000 or more that is located
in the county;
(2) three members appointed by the commissioners court, two of
whom must reside in the unincorporated area of the county; and
(3) three members to be designated by the remaining
municipalities with a population of more than 500 but less than
12,000 located in the county.
(c) The members described by Subsection (b)(3) shall be
designated as follows:
(1) each municipality with a population of more than 500 but
less than 12,000 located in the county shall nominate one person
using a nomination form sent to the governing body of the
municipality by mail;
(2) the county judge shall add the names on the nomination forms
that are received before the 31st day after the date of the
mailing of the nomination forms;
(3) each municipality with a population of more than 500 but
less than 12,000 located in the county is entitled to cast one
vote;
(4) only ballots returned to the county judge on or before a
predetermined date shall be counted;
(5) the county judge shall designate the three persons with the
highest plurality vote as members of the interim executive
committee; and
(6) if three members are not designated by this process, the
county judge shall name the balance of the members of the interim
executive committee described by Subsection (b)(3).
(d) The county judge may fill a vacancy in a position described
by Subsection (b)(3) by naming a person nominated under
Subsection (c) for the unexpired term.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2005, 79th Leg., Ch.
991, Sec. 2, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 1, eff. September 1, 2007.
Sec. 460.055. DUTIES OF INTERIM EXECUTIVE COMMITTEE. (a) The
interim executive committee shall elect three of its members to
serve as the chair, vice chair, and secretary.
(b) The interim executive committee shall develop a service plan
and determine a proposed tax not later than the 180th day after
the date of the interim executive committee's first meeting.
(c) The interim executive committee shall hold at least one
regular meeting a month for the purpose of developing a service
plan and determining a proposed tax rate.
(d) The interim executive committee shall consider the following
in developing the service plan:
(1) the regional transportation plan for the county and major
thoroughfare plan;
(2) actual and projected traffic counts of private passenger
vehicles and projected destinations of the vehicles;
(3) feasible alternative modes of public transportation,
including:
(A) a fixed guideway system;
(B) passenger commercial carriers;
(C) dedicated thoroughfare lanes;
(D) fixed skyway rail;
(E) high occupancy toll lanes;
(F) traffic management systems; and
(G) bus transit and associated lanes;
(4) the most efficient location of collection points and
transfer points;
(5) alternative routes linking access and discharge points;
(6) alternative alignments using least populous areas if
right-of-way acquisition will be required for a transit route;
(7) estimates of capital expenditures for a functional public
transportation system;
(8) various forms of public transportation consistent with use
of transit routes, including for each form a determination of:
(A) cost per passenger per mile;
(B) the capital expense of acquisition of the public
transportation system;
(C) costs associated with the acquisition, improvement, or
modification of the transit way; and
(D) maintenance and operating costs;
(9) administrative overhead costs separately from other costs;
(10) load factors based on surveys, interviews, and other
reasonable quantification for the modes of transportation;
(11) a fare structure for the ridership of the public
transportation system by mode;
(12) a comparison of revenue from all sources, including fares,
fees, grants, and debt issuance, with estimated costs and
expenses;
(13) revenue minus expenses expressed numerically and a per
rider factor for each trip or segment of a trip;
(14) if the service plan contemplates joint use of other transit
systems or transfer to them, estimated dates of access; and
(15) segments of the service plan separately if:
(A) some segments are more profitable than others; or
(B) some segments show a smaller deficit than others.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.056. APPROVAL OF SERVICE PLAN AND TAX RATE. (a) On
approval by the interim executive committee of the service plan
and tax rate, a copy of the plan and tax rate shall be provided
to the commissioners court and the governing body of each
municipality with a population of 12,000 or more located in the
county.
(b) Notice of the interim executive committee's approval of the
service plan and tax rate shall be published in a newspaper of
general circulation in the county and mailed to all governing
bodies of municipalities with a population of more than 500
located in the county.
(c) Not later than the 60th day after the date the interim
executive committee approves the service plan and tax rate, the
governing body of a municipality with a population of 12,000 or
more may approve by resolution or order the service plan and tax
rate.
(d) A municipality with a population of 12,000 or more located
in the county that does not give its approval under Subsection
(c) may not participate in the service plan or the confirmation
election for the authority.
(e) The commissioners court may not order a confirmation
election in a municipality with a population of 12,000 or more in
which the governing body of the municipality does not approve the
service plan and tax rate.
(f) The board of directors of a confirmed authority may by rule
create a procedure by which a municipality described by
Subsection (d) may become a participating member of an authority.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 4, eff.
Sept. 1, 2003.
Sec. 460.057. CONFIRMATION ELECTION. (a) The interim executive
committee shall notify the commissioners court of the need to
call a confirmation election.
(b) The commissioners court in ordering the confirmation
election shall submit to the qualified voters in the county the
following proposition:
"Shall the creation of (name of authority) be confirmed?"
(c) In addition to other information required by law, the notice
of the election must include:
(1) a brief description of the service plan; and
(2) a statement that an imposition of a tax to pay for the
service plan must be approved by the voters at a subsequent
election.
(d) The election must be held on a uniform election date.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.058. CONDUCT OF ELECTION. (a) A confirmation election
shall be conducted so that the votes are separately tabulated and
canvassed in order to show the results for:
(1) each municipality located in the county that passed a
resolution or order approving the service plan and tax rate; and
(2) the qualified voters in the balance of the county.
(b) The interim executive committee shall canvass the returns
and declare the results of the election.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.059. RESULTS OF ELECTION. (a) If a majority of votes
received in the county favor the proposition, the authority is
confirmed, except that the authority does not include a
municipality with a population of 12,000 or more located in the
county in which a majority of the votes did not favor the
proposition.
(b) The authority ceases unless one or more municipalities with
a population of 12,000 or more votes in favor of the proposition.
(c) If the authority is confirmed, 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; and
(3) showing the number of votes cast for or against the
proposition in each municipality that passed a resolution or
order approving the service plan and tax rate and in the
unincorporated area of the county.
(d) On adoption of the order confirming the authority, the
interim executive committee becomes the board of directors of the
authority.
(e) A certified copy of the order shall be filed with the Texas
Department of Transportation and the comptroller of public
accounts.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 2, eff. September 1, 2007.
Sec. 460.060. FAILURE TO CONFIRM AUTHORITY. (a) If the
authority ceases, the interim executive committee shall record
the results of the election in its minutes and adopt an order
declaring that the authority is dissolved.
(b) The county and each municipality that passed a resolution or
order approving the service plan and tax rate shall share the
expenses of the election proportionately based on the population
of the areas in which the election was conducted.
(c) An authority that has not been confirmed expires on the
third anniversary of the effective date of the resolution or
order initiating the process to create the authority.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
SUBCHAPTER C. POWERS OF AUTHORITY
Sec. 460.101. POWERS APPLICABLE TO CONFIRMED AUTHORITY. This
subchapter applies only to an authority that has been confirmed.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.102. NATURE OF AUTHORITY. (a) An authority:
(1) is a governmental body and a corporate body;
(2) has perpetual succession; and
(3) exercises public and essential governmental functions.
(b) 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.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.103. GENERAL POWERS OF AUTHORITY. (a) The authority
has any power necessary or convenient to carry out this chapter
or effect the 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 post 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 necessary for the efficient operation and maintenance of
public transportation; or
(2) at any time, surplus materials or other property that is not
needed by the authority to carry out a power under this chapter.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.104. POWER TO CONTRACT; GRANTS AND LOANS. (a) An
authority may contract with any person.
(b) An authority may accept a gift, grant, donation, or loan
from any person.
(c) An authority may enter into an agreement, including an
interlocal agreement, with a transportation or transit entity,
including a municipality, that is consistent with and beneficial
to the service plan approved by the authority.
(d) An authority may acquire rolling stock or other real or
personal property under a contract or trust agreement, including
a conditional sales contract, a lease, a lease-purchase
agreement, or an equipment trust.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 3, eff. September 1, 2007.
Sec. 460.105. 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 or
municipality partially located in the territory of the authority;
(2) contract with a municipality, county, or other political
subdivision for the authority to provide public transportation
services outside the authority;
(3) lease all or part of the public transportation to, or
contract for the operation of all or a part of the public
transportation system by, an operator;
(4) contract with a political subdivision or governmental entity
to provide public transportation services inside the authority
consistent with rules and regulations established by the
authority, including capital, maintenance, operation, and other
costs specifically approved and audited by the authority; and
(5) acquire, construct, develop, plan, own, operate, maintain,
or manage a public transportation system or project not located
in the territory of the authority if the system or project
provides a service, benefit, or convenience to the people in the
territory of the authority.
(b) An authority shall determine routes of the public
transportation system or approve routes submitted to the
authority.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2005, 79th Leg., Ch.
991, Sec. 3, eff. September 1, 2005.
Sec. 460.106. AUTHORIZATION OF TAX LEVY. (a) An authority may
call an authorization election for a tax levy associated with the
service plan developed by the interim executive committee or a
tax rate that has been modified by action of the authority at any
time after the confirmation election that creates the authority.
(b) The authority in ordering the authorization election shall
submit to the qualified voters in the county located in an area
participating in the authority the following proposition:
"Shall the (name of authority) levy of a proposed tax, not to
exceed (rate), be authorized?"
(c) An election authorizing a tax levy shall be conducted in the
same manner as a confirmation election under Subchapter B.
(d) A service plan may be implemented in an area of the county
participating in the authority only if a majority of votes
received favor the authorization of a tax levy by the authority.
(e) An authority that does not authorize an initial tax levy at
an authorization election expires on the second anniversary of
the date the executive committee adopts an order declaring that
the creation of the authority is confirmed.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 4, eff. September 1, 2007.
Sec. 460.107. ACQUISITION OF PROPERTY. (a) As necessary or
useful in the construction, repair, maintenance, or operation of
a public transportation system, an authority may use a public
way, including an alley.
(b) An authority may acquire by eminent domain any interest in
real property, including a fee simple interest and the use of air
or subsurface space, except the right of eminent domain may not
be exercised:
(1) in a municipality without the approval of the proposed
acquisition by the governing body of the municipality; or
(2) in an unincorporated area without the approval of the
proposed acquisition by the commissioners court of the county in
which the property to be condemned is located.
(c) If an authority, through the exercise of eminent domain,
makes any relocation necessary, the relocation costs shall be
paid by the authority.
(d) An eminent domain proceeding by an authority is initiated by
the adoption by the executive committee of a resolution
authorizing the exercise that:
(1) describes the property to be condemned;
(2) declares the public necessity for the acquisition; and
(3) declares that the acquisition is necessary for the
construction, extension, improvement, or development of the
public transportation system.
(e) A resolution adopted under this section and approved by the
appropriate municipal governing body or commissioners court is
conclusive evidence of the public necessity for the acquisition
described in the resolution.
(f) Chapter 21, Property Code, applies to an eminent domain
proceeding by an authority.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.108. AGREEMENT WITH UTILITIES, CARRIERS. (a) An
authority may agree with any other public or private utility,
communication system, common carrier, or transportation system
for:
(1) the joint use of the property or fixtures of the agreeing
entities; and
(2) the establishment of through routes, joint fares, or
transfers of passengers between the agreeing entities.
(b) If the exercise of a power granted to an authority under
this subchapter requires a public utility facility to be
relocated, adjusted, raised, lowered, rerouted, or changed as to
grade or construction, the authority shall take the required
action at the authority's expense.
(c) An authority may not impose an impact fee or assessment on
the property, equipment, or facilities of a utility.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.109. FARES AND USE FEES. (a) An authority shall
impose reasonable and nondiscriminatory fares, tolls, charges,
rents, and other forms of compensation for the use of the public
transportation system. The fares and other forms of compensation
shall be sufficient to produce revenue, together with tax revenue
and grants received by the authority, in an amount adequate to:
(1) pay annually the expenses necessary to operate and maintain
the public transportation system;
(2) pay as due the principal of and interest on, and sinking
fund or reserve fund payments agreed to be made with respect to,
all bonds that are issued by the authority and payable in whole
or part from the revenue; and
(3) fulfill the terms of any other agreement with the holders of
bonds issued by the authority.
(b) Fares for passenger transportation may be set according to a
zone system or by any other classification system that the
authority determines to be reasonable.
(c) This section does not limit the state's power to regulate
taxes imposed by an authority. The state agrees not to alter the
power granted to an authority under this section to impose taxes,
fares, tolls, charges, rents, and other compensation sufficient
to pay obligations incurred by the authority.
(d) The state agrees not to impair the rights and remedies of an
authority bondholder, or a person acting on behalf of a
bondholder, until the principal and interest on the bonds, the
interest on unpaid installments of interest, costs, and expenses
in connection with an action or proceeding by or on behalf of a
bondholder are discharged.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.110. INSURANCE. (a) An authority may insure, through
purchased insurance policies, 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 similar authorities and of its contractors and
subcontractors.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.111. TAX EXEMPTION. The property, revenue, and income
of an authority are exempt from state and local taxes.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.112. MASS TRANSIT RAIL SYSTEM; EXEMPTION. (a) An
authority that constructs or operates or contracts with another
entity to construct or operate a mass transit rail system is not
subject to any state law regulating or governing the design,
construction, or operation of a railroad, railway, street
railway, streetcar, or interurban railway.
(b) For purposes of ownership or transfer of ownership of an
interest in real property, a light 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.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
SUBCHAPTER D. PROVISIONS APPLICABLE TO BOARD OF DIRECTORS
Sec. 460.201. TERMS; VACANCY. (a) Each member of the board of
directors serves a term of two years.
(b) Repealed by Acts 2007, 80th Leg., R.S., Ch. 326, Sec. 22,
eff. September 1, 2007.
(c) Except as provided by Section 460.2015, a vacancy on the
board of directors is filled in the same manner as the original
appointment to the interim executive committee.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 5, eff.
Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
991, Sec. 4, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 6, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 22, eff. September 1, 2007.
Sec. 460.2015. MEMBERSHIP OF BOARD OF DIRECTORS. (a) The board
of directors of an authority confirmed under Subchapter B may
increase the population amount stated by Section 460.054(b)(1) in
increments of up to 5,000. If the board increases that
population amount, the board shall also increase each population
amount stated by Sections 460.054(b)(3) and 460.054(c) by the
same amount.
(b) The board of directors may act under Subsection (a) only
once a year.
(c) A municipality that has appointed a member to the board of
directors under Section 460.054(b)(1) before the effective date
of an increase under Subsection (a) may continue to appoint a
member to the board of directors.
Added by Acts 2005, 79th Leg., Ch.
991, Sec. 5, eff. September 1, 2005.
Sec. 460.202. ELIGIBILITY. To be eligible for appointment to
the board of directors, a person must have professional
experience in the field of transportation, business, government,
engineering, or law.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 7, eff. September 1, 2007.
Sec. 460.203. CONFLICTS OF INTEREST. Members of the board of
directors and officers and employees of the authority are subject
to Chapter 171, Local Government Code.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 8, eff. September 1, 2007.
Sec. 460.204. MEETINGS. (a) The board of directors shall meet
at least monthly to transact the business of an authority.
(b) The chair may call special meetings as necessary.
(c) The board of directors by resolution shall:
(1) set the time, place, and date of regular meetings; and
(2) adopt rules and bylaws as necessary to conduct meetings.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 9, eff. September 1, 2007.
Sec. 460.205. QUORUM; VOTING REQUIREMENTS. (a) Five members
constitute a quorum of the board of directors.
(b) An action of the board of directors requires a vote of a
majority of the members present unless the bylaws require a
larger number for a specific action.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 10, eff. September 1, 2007.
Sec. 460.206. RULES. The board of directors may adopt rules
relating to the creation of a vacancy on the board by the absence
of a board member at the board meetings, staggering the terms of
up to one-half of the board of directors, and providing for
alternates.
Added by Acts 2003, 78th Leg., ch. 306, Sec. 6, eff. Sept. 1,
2003.
SUBCHAPTER E. ADDITION OF TERRITORY
Sec. 460.301. ADDITION OF TERRITORY BY MUNICIPAL ANNEXATION.
When a municipality that is part of an authority annexes
territory that before the annexation is not part of the
authority, the annexed territory becomes part of the authority.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.302. ADDITION OF MUNICIPALITY BY ELECTION. (a) The
territory of a municipality that is not initially part of an
authority may be added to an authority if:
(1) any part of the municipality is located in the territory of
the authority;
(2) the governing body of the municipality requests in writing
that the authority call an election under this section on whether
the territory of the municipality should be added to the
authority, the authority calls the election, and submits to the
qualified voters of the municipality the following proposition:
"Shall the (name of authority) levy of a proposed tax, not to
exceed (rate), be authorized?"; and
(3) a majority of the votes received in the election favor the
measure.
(b) The governing body of the authority shall canvass the
returns, declare the result, and notify the comptroller and the
department.
(c) If approval by a municipality would cause the tax in a
municipality that has imposed a dedicated or special-purpose
sales and use tax to exceed the limit imposed under Section
460.552(a), the governing body of the municipality may request in
writing that an authority call an election under this section on
whether the territory of the municipality should be added with a
combined ballot proposition to lower or repeal any dedicated or
special-purpose sales and use tax. A combined ballot proposition
under this subsection:
(1) shall contain substantially the same language, if any,
required by law for the lowering, repealing, raising, or adopting
of each tax as appropriate; and
(2) that receives a negative vote shall have no effect on either
the sales tax to be lowered or repealed by the proposition or the
sales tax to be raised or adopted by the proposition.
(c-1) This section shall not be construed to change the
substantive law of any sales tax, including the allowed maximum
rate or combined rate of local sales taxes.
(d) At any time after the date of an election approving the
addition of a municipality under this section, the authority and
the governing body of the municipality may enter into an
interlocal agreement that provides for the eventual admission of
the municipality to the territory of the authority and for the
payment of proportional capital recovery fees as determined by
the authority. The authority is not required to provide
transportation services to the municipality until any capital
recovery fees provided for in the agreement are paid to the
authority.
(e) A sales and use tax imposed by an authority takes effect in
a municipality added to the authority under this section on the
first day after the expiration of the first complete calendar
quarter that begins after the date the comptroller receives a
certified copy of an order adopted by the authority relating to
the addition of the municipality or other notice of the addition
of the municipality, accompanied by a map of the authority
clearly showing the territory added.
(f) In this section, "dedicated or special-purpose sales and use
tax" means a tax referred to or described by:
(1) Chapter 504 or 505, Local Government Code;
(2) Section 379A.081, Local Government Code;
(3) Section 363.055, Local Government Code; or
(4) Section 327.003, Tax Code.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 11, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 23.005, eff. September 1, 2009.
Sec. 460.303. JOINING AUTHORITY; CERTAIN AUTHORITIES. (a) A
municipality that has a population of more than 500,000 and that
is located in a county with a population of more than one million
may join a separate authority.
(b) If a municipality described by Subsection (a) joins an
authority created under this chapter and another separate
authority is subsequently established in the county in which the
municipality is located, the municipality may:
(1) remain in the authority that was created first;
(2) join the new authority in the county in which the
municipality is located; or
(3) participate with both authorities.
(c) A municipality that has requested, participated in, or
received a benefit of capital improvements made by an authority
shall on its transfer to a different authority or participation
with more than one authority continue to honor reimbursement
obligations resulting from the improvements.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.304. TAX IMPOSED IN ADDED TERRITORY. (a) Except as
provided by Section 460.302(e), a sales and use tax imposed by an
authority takes effect in territory added to the authority under
this subchapter on the first day of the first calendar quarter
that begins after the addition of the territory.
(b) An authority shall send to the comptroller of public
accounts:
(1) a certified copy of an order adding the territory or of an
order canvassing the returns and declaring the results of the
election; and
(2) a map showing the territory added to the authority.
(c) The order must include the effective date of the tax.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 12, eff. September 1, 2007.
SUBCHAPTER F. MANAGEMENT OF AUTHORITY
Sec. 460.401. MANAGEMENT OF AUTHORITY. The board of directors
is responsible for the management, operation, and control of the
authority and its properties.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 13, eff. September 1, 2007.
Sec. 460.402. FINANCIAL AUDIT. (a) The authority shall have an
annual audit of the affairs of the authority prepared by an
independent certified public accountant.
(b) The audit is a public record as defined by Chapter 552,
Government Code.
(c) On receipt of the audit prescribed by Subsection (a), the
board of directors shall address on the record any deficiencies
noted in the report at a regular meeting of the board of
directors.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 14, eff. September 1, 2007.
Sec. 460.403. BUDGET. The board of directors shall prepare an
annual budget.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 15, eff. September 1, 2007.
Sec. 460.404. FUNDING. (a) An authority may request funds for
its operation from a municipality, the commissioners court, or
both a municipality and the commissioners court. The request
shall be accompanied by a budget.
(b) Funds appropriated to an authority are subject to audit.
(c) Federal funds or grants may be used to offset the
authority's annual cost of debt service.
(d) An authority may accept gifts, grants, donations, receipts,
or funds from any source to carry out its powers and duties under
this chapter.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 7, eff.
Sept. 1, 2003.
Sec. 460.405. PROHIBITIONS. (a) Federal funds and appropriated
state funds may not be spent by or on behalf of an authority to
influence or affect the award or outcome of a state or federal
contract, loan, or cooperative agreement.
(b) This section does not apply to:
(1) a contested administrative matter; or
(2) pending or reasonably anticipated litigation.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2005, 79th Leg., Ch.
991, Sec. 6, eff. September 1, 2005.
Sec. 460.406. PURCHASES: COMPETITIVE BIDDING. (a) Except as
provided by Subsection (c), 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 board of directors may authorize the negotiation of a
contract without competitive sealed bids or proposals if:
(1) the aggregate amount involved in the contract is $25,000 or
less;
(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 board of
directors 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 purchase of land or a right-of-way;
(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 blind or severely
disabled persons;
(11) the contract is for the purchase of electricity; or
(12) the contract is one awarded for alternate project delivery
under Sections 271.117-271.119, Local Government Code.
(d) For the purposes of entering into a contract authorized by
Subsection (c)(12), an authority is considered a "governmental
entity" as defined by Section 271.111, Local Government Code.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 16, eff. September 1, 2007.
SUBCHAPTER G. BONDS AND NOTES
Sec. 460.501. DEFINITION. In this subchapter, "bond" includes a
note.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.502. POWER TO ISSUE BONDS. (a) An authority may issue
bonds at any time and for amounts the executive committee
determines are appropriate.
(b) The bonds may be issued as necessary for:
(1) the acquisition, construction, repair, improvement, or
extension of an authority's public transportation system; or
(2) the creation or funding of self-insurance or retirement or
pension fund reserves.
(c) A bond issued by the authority may have a maturity of up to
30 years from the date of issuance.
(d) A bond any portion of which is secured by a pledge of sales
and use tax revenues and that has a maturity of five years or
longer from the date of issuance may not be issued by an
authority until an election has been held in the municipalities
in which the authority has been authorized to impose a sales and
use tax and the proposition proposing the issue has been approved
by a majority of the votes received on the issue.
(e) Subsection (d) does not apply to the issuance of refunding
bonds or bonds described by Subsection (b)(2).
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 8, eff.
Sept. 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
557, Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
928, Sec. 1, eff. September 1, 2009.
Sec. 460.503. BOND TERMS. The bonds of an authority are fully
negotiable. An authority may make the bonds redeemable before
maturity. The terms and conditions of authority bonds are subject
to rules adopted by the board of directors.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 9, eff.
Sept. 1, 2003.
Sec. 460.504. SALE. An authority's bonds may be sold at a
public or private sale as determined by the board of directors to
be the more financially beneficial.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 17, eff. September 1, 2007.
Sec. 460.505. INCONTESTABILITY. An authority's bonds are
incontestable after the bonds are:
(1) approved by the attorney general;
(2) registered by the comptroller of public accounts; and
(3) sold to the purchaser.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.506. SECURITY PLEDGED. To secure the payment of an
authority's bonds, the authority may:
(1) pledge all or part of revenue realized from any tax that is
approved and levied;
(2) pledge any part of the revenue of the public transportation
system;
(3) mortgage any part of the public transportation system
regardless of when acquired; or
(4) pledge government grants, contractual revenue, or lease
revenue.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 10, eff.
Sept. 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
557, Sec. 2, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
928, Sec. 2, eff. September 1, 2009.
Sec. 460.507. REFUNDING BONDS. An authority may issue refunding
bonds at any time.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 11, eff.
Sept. 1, 2003.
Sec. 460.508. NOTES. (a) An authority may issue negotiable
notes payable from any of the authority's sources of revenue to
pay for any lawful expenditure, other than principal and interest
on the authority's debt.
(b) Notes issued by an authority shall be payable over a period
not to exceed five years from the date of issuance.
(c) The Texas Commission on Environmental Quality is not
required to approve notes issued under this section.
(d) An authority may not have outstanding notes in excess of $10
million at any one time.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 12, eff.
Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 18, eff. September 1, 2007.
Sec. 460.509. OBLIGATIONS AND CREDIT AGREEMENTS. An authority
may issue obligations and enter into credit agreements under
Chapter 1371, Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
557, Sec. 3, eff. September 1, 2009.
Added by Acts 2009, 81st Leg., R.S., Ch.
928, Sec. 3, eff. September 1, 2009.
SUBCHAPTER H. TAXATION
Sec. 460.551. SALES AND USE TAX. (a) The board of directors
may impose for an authority a sales and use tax at the rate of:
(1) one-quarter of one percent;
(2) three-eighths of one percent;
(3) one-half of one percent;
(4) five-eighths of one percent;
(5) three-quarters of one percent;
(6) seven-eighths of one percent; or
(7) one percent.
(b) The imposition of an authority's sales and use tax must be
approved at an election conducted in the manner provided by this
chapter and may not be imposed in an area that has not confirmed
the authority.
(c) A sales and use tax may be imposed, as prescribed by this
section, by a municipality that participates in a transportation
or transit authority other than an authority created under this
chapter if:
(1) the combined rates of all sales and use taxes imposed in the
municipality does not exceed two percent; and
(2) the ballot of the authorization vote for the sales and use
tax reads:
"(Name of city) already imposes a sales and use tax for
participation in the (name of transportation or transit
authority). The proposed sales and use tax is solely for the
benefit of, and will be dedicated to, the (name of authority
created under this chapter)."
(d) The authority shall impose a sales and use tax at a minimum
uniform rate as determined by the board of directors if the tax
is approved at an election in an area that has confirmed the
authority.
(e) A municipality with a population of 12,000 or more that has
confirmed the authority may impose a sales and use tax at a rate
higher than the minimum uniform rate established under Subsection
(d) on approval at an election if the authority will provide the
municipality a higher level of service.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 306, Sec. 3, eff.
Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 19, eff. September 1, 2007.
Sec. 460.552. MAXIMUM TAX RATE IN AUTHORITY AREA. (a) An
authority 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 having
territory in the authority exceeds two percent in any location in
the authority.
(b) An increase in the tax rate to a higher rate must be
approved by a majority of the voters at a confirmation election.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.553. INITIAL SALES TAX: EFFECTIVE DATE. The adoption
of a sales and use tax takes effect on the first day of the first
calendar quarter after the confirmation election.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Sec. 460.554. RATE DECREASE. The board of directors by order
may direct the comptroller of public accounts to collect the
authority's sales and use tax at a rate that is lower than the
rate approved by the voters at the confirmation hearing if the
board of directors determines that it is in the best interest of
the authority.
Added by Acts 2001, 77th Leg., ch. 1186, Sec. 1, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 20, eff. September 1, 2007.