CHAPTER 171. FREIGHT RAIL DISTRICTS

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Texas > Transportation-code > Title-5-railroads > Chapter-171-freight-rail-districts

TRANSPORTATION CODE

TITLE 5. RAILROADS

SUBTITLE I. SPECIAL DISTRICTS

CHAPTER 171. FREIGHT RAIL DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 171.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

Text of subdivision effective until April 01, 2011

(2) "Bonds" has the meaning assigned by Chapter 623, Acts of the

67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's

Texas Civil Statutes).

Text of subdivision effective on April 01, 2011

(2) "Bonds" has the meaning assigned by Section 172.001.

(3) "District" means a freight rail district created under this

chapter.

Text of subdivision effective until April 01, 2011

(4) "Rail facilities" has the meaning assigned by Chapter 623,

Acts of the 67th Legislature, Regular Session, 1981 (Article

6550c, Vernon's Texas Civil Statutes), except that the term

includes property and interests necessary or convenient for the

provision of a nonrural rail transportation system.

Text of subdivision effective on April 01, 2011

(4) "Rail facilities" has the meaning assigned by Section

172.001, except that the term includes property and interests

necessary or convenient for the provision of a nonrural rail

transportation system.

Text of subdivision effective until April 01, 2011

(5) "Revenues" has the meaning assigned by Chapter 623, Acts of

the 67th Legislature, Regular Session, 1981 (Article 6550c,

Vernon's Texas Civil Statutes).

Text of subdivision effective on April 01, 2011

(5) "Revenue" has the meaning assigned by Section 172.001.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.03, eff. April 1, 2011.

Text of section effective until April 01, 2011

Sec. 171.002. APPLICABILITY OF RURAL RAIL TRANSPORTATION

DISTRICTS LAW. (a) Except as provided by this chapter, Sections

2-9, Chapter 623, Acts of the 67th Legislature, Regular Session,

1981 (Article 6550c, Vernon's Texas Civil Statutes), apply to a

district as if the district were created under that chapter.

(b) For purposes of applying Chapter 623, Acts of the 67th

Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas

Civil Statutes), to a district created under this chapter, a

reference to "rail facilities" in Chapter 623 means "rail

facilities" as defined by Section 171.001.

Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas

Civil Statutes), to a district created under this chapter, a

reference in Chapter 623 to "eligible county" means a county that

created the district.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.04, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 171.002. APPLICABILITY OF RURAL RAIL TRANSPORTATION

DISTRICTS LAW. (a) Except as provided by this chapter, the

provisions of Chapter 172 other than Section 172.003 apply to a

district as if the district were created under that chapter.

(b) For purposes of applying Chapter 172 to a district created

under this chapter, a reference to "rail facilities" in Chapter

172 means "rail facilities" as defined by Section 171.001.

under this chapter, a reference in Chapter 172 to "eligible

county" means a county that created the district.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.04, eff. April 1, 2011.

SUBCHAPTER B. CREATION

Sec. 171.051. APPLICABILITY TO CERTAIN COUNTIES. A district may

be created only in a county with a population of 3.3 million or

more and counties adjacent to such a county.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.052. CREATION BY COUNTIES AND MUNICIPALITIES. (a) The

governing body of one or more counties and the most populous

municipality in the most populous county may by concurrent order

or ordinance create a district. At the time of creation, a

district must include:

(1) a county with a population of 3.3 million or more; and

(2) that municipality.

(b) The order or ordinance creating the district:

(1) must specify:

(A) the number of district directors and who appoints the

directors; and

(B) the method of selecting the board's presiding officer; and

(2) may specify terms and conditions that are not expressly

inconsistent with this chapter.

countywide navigation district and the presiding officer of the

navigation district is jointly appointed by that county and the

most populous municipality in that county, the order or ordinance

creating the district must specify that:

(1) the presiding officer of the navigation district is a

director of the freight rail district; and

(2) at least one director must be jointly appointed by the

mayors of the municipalities in the district, except for the

mayor of the most populous municipality in the most populous

county.

(d) The common law doctrine of incompatibility does not apply to

a director serving under Subsection (c)(1) with regard to the

director's service for the freight rail district or for the

navigation district.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Text of section as amended by Acts 2009, 81st Leg., R.S., Ch.

33, Sec. 1

For text of section as amended by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.05, see other Sec. 171.053.

Text of section effective until April 01, 2011

Sec. 171.053. INTERMUNICIPAL COMMUTER RAIL DISTRICT POWERS. The

governing bodies of the county or counties and of the most

populous municipality in the most populous county may provide

that the district may exercise the powers of an intermunicipal

commuter rail district created under Article 6550c-1, Revised

Statutes, including the powers related to a commuter rail

facility and other types of passenger rail services, including

intercity rail services, by specifying in the concurrent order or

ordinance creating the district that those powers may be

exercised by the district.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

33, Sec. 1, eff. September 1, 2009.

Text of section as amended by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.05

For text of section as amended by Acts 2009, 81st Leg., R.S., Ch.

33, Sec. 1, see other Sec. 171.053.

Text of section effective on April 01, 2011

Sec. 171.053. INTERMUNICIPAL COMMUTER RAIL DISTRICT POWERS. The

governing bodies of the county or counties and of the most

populous municipality in the most populous county may provide

that the district may exercise the powers of an intermunicipal

commuter rail district created under Chapter 173 or former

Article 6550c-1, Revised Statutes, including the powers related

to a commuter rail facility and other types of passenger rail

services, including intercity rail services, by specifying in the

concurrent order or ordinance creating the district that those

powers may be exercised by the district.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

33, Sec. 1, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.05, eff. April 1, 2011.

Sec. 171.054. DISTRICT TERRITORY. The district consists of the

territory of each county that created the district and the

territory of the most populous municipality in the most populous

county if that municipality's territory is located in more than

one county.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 171.101. COMPOSITION OF BOARD; PRESIDING OFFICER. The

board consists of directors, including a presiding officer, as

provided in the order or ordinance creating the district under

Section 171.052(b).

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.102. EX OFFICIO NONVOTING DIRECTOR; TEXAS

TRANSPORTATION COMMISSION. The Texas Transportation Commission

may appoint to the board a representative to serve as a nonvoting

ex officio director.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.103. CONFLICT OF INTEREST. Chapter 171, Local

Government Code, governs conflicts of interest for directors.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 171.151. REGIONAL MOBILITY AUTHORITY POWERS. A district

may exercise the transportation project powers of a regional

mobility authority under Chapter 370 for a transportation project

that is a freight rail facility.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.152. GENERAL CONTRACT POWERS. A district may contract

with any person, including:

(1) a county or municipality, including a county or municipality

that created the district;

(2) this state or any political subdivision of this state;

(3) the United States; or

(4) a railroad.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.153. EXERCISE OF POWERS IN OTHER COUNTIES. The

commissioners court of a county that is not in the district may

authorize the district to exercise its powers in that county if

that county is adjacent to a county that is in the district.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Text of section effective until April 01, 2011

Sec. 171.154. INTERMUNICIPAL COMMUTER RAIL POWERS. (a) The

district may exercise the powers of an intermunicipal commuter

rail district created under Article 6550c-1, Revised Statutes,

only if the concurrent order or ordinance creating the district

specifies that the district may exercise those powers. The order

or ordinance may not grant the district the power to impose a

tax.

(b) In the event of a conflict between this chapter and a power

granted by Article 6550c-1, Revised Statutes, this chapter

controls. In the event of a conflict between Article 6550c-1 and

Chapter 623, Acts of the 67th Legislature, Regular Session, 1981

(Article 6550c, Vernon's Texas Civil Statutes), Article 6550c

controls over Article 6550c-1.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.06, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 171.154. INTERMUNICIPAL COMMUTER RAIL POWERS. (a) The

district may exercise the powers of an intermunicipal commuter

rail district created under Chapter 173 or former Article

6550c-1, Revised Statutes, only if the concurrent order or

ordinance creating the district specifies that the district may

exercise those powers. The order or ordinance may not grant the

district the power to impose a tax.

(b) In the event of a conflict between this chapter and a power

granted by Chapter 173, this chapter controls. In the event of a

conflict between Chapter 173 and Chapter 172, Chapter 172

controls over Chapter 173.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.06, eff. April 1, 2011.

Sec. 171.155. MUNICIPAL LIMIT ON DISTRICT'S POWER OF EMINENT

DOMAIN. If the property to be condemned is located in the

corporate limits of one or more municipalities, the district may

exercise the power of eminent domain to condemn the property only

if each municipality in which the property is located consents to

the exercise of that power.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

SUBCHAPTER E. RELATIONSHIP BETWEEN DISTRICT AND AFFECTED

RAILROADS

Sec. 171.201. AGREEMENT WITH RAILROAD. (a) Before a district

may undertake a freight or commuter rail project that materially

affects the tracks, facilities, or other property of a railroad

that owns track in the district, the district and railroad must

enter into a written agreement regarding the scope, operational

impact, financing, and other elements of the project. The

district may not undertake the project unless the district and

the railroad agree on these terms.

(b) The agreement may include provisions for the railroad's

financial participation in the project according to the benefits

the railroad derives from the project.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.202. PRESERVATION OF REGULATORY STRUCTURE AND OWNERSHIP

RIGHTS. A district project may be conducted only in a manner

that preserves the existing rail industry regulatory structure

and railroad ownership rights.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.203. COMPETITIVE RELATIONSHIPS. The district may not

undertake a project that changes the existing competitive

relationships between and among railroads.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.204. SERVICE TO CUSTOMERS. The district may not

undertake a project that negatively affects a railroad's present

or future ability to provide consistent service to its customers.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.205. USE OF DISTRICT RAIL FACILITIES. This chapter

does not prohibit the district from authorizing multiple freight

railroads to operate on district rail facilities.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.206. LIMITATION ON EMINENT DOMAIN. The power of

eminent domain may not be exercised under this chapter to condemn

a right-of-way owned by a railroad.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.207. EXCEPTION; GRADE SEPARATION PROJECTS. This

subchapter does not apply to a rail-roadway or rail-rail grade

separation project.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

SUBCHAPTER F. FINANCIAL PROVISIONS

Text of section effective until April 01, 2011

Sec. 171.251. PLEDGE OF REVENUES. A district may secure and

pledge revenues derived from any source to secure the payment of

district bonds.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.07, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 171.251. PLEDGE OF REVENUE. A district may secure and

pledge revenue derived from any source to secure the payment of

district bonds.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.07, eff. April 1, 2011.

Sec. 171.252. PURCHASE CONTRACTS. Subchapter O, Chapter 60,

Water Code, as added by Chapter 307, Acts of the 78th

Legislature, Regular Session, 2003, applies to the district as if

the district were a navigation district under that subchapter.

For the purposes of applying that subchapter to the district

under this section, "commission" means the board.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.253. AD VALOREM AND SALES AND USE TAXES PROHIBITED. A

district may not impose an ad valorem tax or a sales and use tax.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.254. FEES CHARGED TO RAILROADS. (a) A district may

not impose a fee or other charge on a railroad unless the

railroad agrees to the fee or other charge.

(b) This section does not prohibit a railroad from voluntarily

contributing to the cost of rail facilities or prohibit the

district from charging for the use of a rail facility by a

railroad or other person.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.255. PORT TERMINAL RAILROAD ASSOCIATION RAIL

FACILITIES. The district may not spend money, including money

from state or federal grants, to purchase a rail facility

operated by a port terminal railroad.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Sec. 171.256. LOCAL GOVERNMENT FINANCING. (a) Section 8(d),

Article 6550c-1, Revised Statutes, relating to the limit on

payments made by a local government does not apply to a district

to which Section 171.053 applies.

(b) A district to which Section 171.053 applies may use money

paid to the district by a local government outside the territory

of the local government if the money is used for a public purpose

of the local government.

paid to the district by a local government to secure the payment

of a district debt.

Added by Acts 2009, 81st Leg., R.S., Ch.

33, Sec. 2, eff. September 1, 2009.

SUBCHAPTER G. WITHDRAWAL; DISSOLUTION

Sec. 171.301. WITHDRAWAL. (a) A county or municipality that

created the district may petition the board for approval to

withdraw from the district. The board may approve the petition

only if:

(1) the district has no outstanding bonds; or

(2) the district has debt other than bonds and the board finds

that the withdrawal of the county or municipality will not

materially affect the ability of the district to repay the debt.

(b) If the board approves the petition, the county or

municipality that withdrew from the district is not entitled to

appoint directors to the board. The remaining counties or

municipality by concurrent order or ordinance shall allocate

among themselves the authority of the withdrawing county or

municipality to appoint directors to the board.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Text of section effective until April 01, 2011

Sec. 171.302. DISSOLUTION. In addition to the dissolution

procedures provided by Chapter 623, Acts of the 67th Legislature,

Regular Session, 1981 (Article 6550c, Vernon's Texas Civil

Statutes), the board may dissolve a district if:

(1) all district liabilities have been paid or adequate

provision has been made for the payment of all liabilities;

(2) the district is not a party to any lawsuits or adequate

provision has been made for the satisfaction of any judgment or

order that may be entered against the district in a lawsuit to

which the district is a party; and

(3) the district has commitments from other governmental

entities to assume jurisdiction of all district rail facilities.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.08, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 171.302. DISSOLUTION. In addition to the dissolution

procedures provided by Chapter 172, the board may dissolve a

district if:

(1) all district liabilities have been paid or adequate

provision has been made for the payment of all liabilities;

(2) the district is not a party to any lawsuits or adequate

provision has been made for the satisfaction of any judgment or

order that may be entered against the district in a lawsuit to

which the district is a party; and

(3) the district has commitments from other governmental

entities to assume jurisdiction of all district rail facilities.

Added by Acts 2005, 79th Leg., Ch.

756, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 4.08, eff. April 1, 2011.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!