CHAPTER 13. MISCELLANEOUS RAILROADS

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VERNON'S CIVIL STATUTES

TITLE 112. RAILROADS

CHAPTER 13. MISCELLANEOUS RAILROADS

Text of article effective until April 01, 2011

Art. 6535. EMINENT DOMAIN. All corporations chartered for the

purpose of constructing, acquiring, maintaining and operating

lines of electric railway between any cities and towns in this

State for the transportation of freight or passengers, or both,

shall have the right of eminent domain with all the rights and

powers as fully as are conferred by law upon steam railroad

corporations, and shall have the right and power to enter upon,

condemn and appropriate the lands, rights of way, easements and

property of any person or corporation whomsoever for the purpose

of acquiring rights of way upon which to construct and operate

their lines of railways and sites for depots and power plants.

Acts 1907, p. 23.

Text of article effective until April 01, 2011

Art. 6536. RIGHT OF WAY. Such corporation shall have the right

and power to lay out rights of way for their railways not to

exceed two hundred feet in width, and to construct their railways

and appurtenances thereon, and for the purpose of cuttings and

embankments to take as much more land as may be necessary for the

proper construction and security of their said railways, and to

cut down any standing trees or remove any other structure that

may be in danger of falling upon or obstructing such railway,

compensation being made therefor in accordance with law. Such

corporation may have such examination and survey of their

proposed railways made as may be necessary to the selection of

the most advantageous route, and for such purposes may enter upon

the lands or waters of any person or corporation subject to

responsibility for all damages that may be occasioned thereby.

Acts 1907, p. 23.

Text of article effective until April 01, 2011

Art. 6537. STREAMS, STREETS, ETC. They may construct their

railways along, across and over any stream of water, water

course, bay, navigable water, arm of the sea, street, highway,

steam railway, plank road, turnpike or canal which the route of

such railway shall touch, and erect and operate bridges, trams,

trestles, or causeways over, along or across any such stream,

water course, navigable water, bay, arm of the sea, street,

highway, plank road, turnpike, or canal. Such bridge or other

structure shall be so erected as to not unnecessarily or

unreasonably prevent the navigation of such stream, water course,

bay, arm of the sea or navigable water and nothing herein shall

authorize the construction of any such railway upon or across any

street, alley, square or property of any incorporated city or

town without the assent of said corporation of said city or town,

and before constructing an electric railway along and upon

highways, plank roads, turnpikes or canals, such interurban

electric railway company shall first obtain the consent of the

lawful authorities having the jurisdiction of the same.

Acts 1907, p. 23.

Text of article effective until April 01, 2011

Art. 6538. RIGHTS OVER OTHER ELECTRIC RAILWAY TRACKS, ETC. The

right of condemnation herein given to interurban electric railway

companies shall include the power and authority to condemn for

their use and benefit, easements and rights of way to operate

interurban cars along and upon the track or tracks of any

electric street railway company owning, controlling or operating

such track or tracks upon any public street or alley in any town

or city of this State for the purpose hereinafter mentioned,

subject to the consent, authority and control of the governing

body of such town or city.

Acts 1907, p. 23.

Text of article effective until April 01, 2011

Art. 6539. PROCEEDINGS TO CONDEMN. Any interurban electric

railway company, seeking to avail itself of the benefits of this

chapter shall have the right to condemn an easement along and

upon the track or tracks of any electric street railway company

for the purpose only of securing an entrance into and an outlet

from a town or city upon a route to be designated by the

governing body of the city or town. In any proceeding to condemn

an easement or right of way for the purposes above mentioned, the

court, or the jury trying the case shall define and fix the terms

and conditions upon which such easement or right of way shall be

used. The court rendering such judgment shall be authorized upon

a subsequent application or applications by either of the parties

to the original proceedings, or any one claiming through or under

them, to review and reform the terms and conditions of such grant

and the provisions of such judgment, and the hearing upon such

application shall be in the nature of a retrial of said cause

with respect to the terms and conditions upon which said easement

shall be used; but the court shall not have power upon any such

rehearing to declare such easement forfeited or to impair the

exercise thereof, and no application for a rehearing shall be

made until two years after the final judgment on the last

preceding application.

Acts 1907, p. 23.

Text of article effective until April 01, 2011

Art. 6540. "INTERURBAN RAILWAY COMPANY". An interurban electric

railway company, within the meaning of this chapter, is a

corporation chartered under the laws of this State for the

purpose of conducting and operating an electric railway between

two cities or between two incorporated towns or between one city

and one incorporated town in this State; and the rights secured

under this chapter by any interurban company shall be inoperative

and void if the road to be constructed under the charter of said

company is not fully constructed from a city or incorporated town

to some other city or incorporated town within twelve months from

the date of the final judgment awarding to said company said

easements and right of way. Any interurban company availing

itself of the privileges conferred in this chapter is hereby

prohibited from receiving for transportation at any point on that

portion of the track or tracks so condemned, without the consent

of the company over whose track or tracks the easement is

condemned, any freight or passengers destined to a point or

points between the termini of the track or tracks so condemned;

and a wilful violation by the company of the provisions of this

article shall operate to forfeit such easements or rights of way.

Acts 1907, p. 23.

Text of article effective until April 01, 2011

Art. 6541. TO SELL LIGHT AND POWER. Interurban electric railway

companies shall also have the right to produce, supply and sell

electric light and power to the public and to municipalities.

Acts 1907, p. 23.

Art. 6541a. EXTENSION OF LINES TO SUPPLY LIGHT AND POWER. Any

corporation now or hereafter organized under the laws of this

state authorized to construct, acquire and operate electric or

other lines of railway within and between any cities or towns in

Texas and to acquire, hold and operate other public utilities in

and adjacent to the cities or towns within or through which such

company operates, may extend its electric light, power and gas

lines, or either of them, for the purpose of supplying light,

power and gas, or either of them, to the public residing beyond

the territory adjacent to the cities or towns within or through

which it operates, and for the purpose of so extending any such

electric light, power and gas lines, any such corporation shall

have all the rights and powers of extension now or hereafter

possessed and enjoyed by public service corporations engaged in

supplying and selling electric light, power and gas, or either of

them as provided by law; and the powers herein granted shall not

repeal either expressly or impliedly any of the anti-trust laws

of the State of Texas.

Acts 1927, 40th Leg., p. 152, ch. 101, Sec. 1, eff. March 15,

1927.

Art. 6541b. STREET AND INTERURBAN RAILWAYS ABANDONED PERMITTED TO

CONTINUE DISTRIBUTION OF GAS AND ELECTRICITY. That all private

corporations which have heretofore been incorporated and are now

authorized by their charters and the Statutes of this State to

operate street and interurban railways with power to distribute

and sell gas and/or electricity to the public and which have

heretofore abandoned or discontinued or may hereafter abandon or

discontinue the operation of street and interurban railways and

motor buses substituted therefor are hereby authorized to

continue to distribute and sell electricity and/or gas in

accordance with their charters and the Statutes during the

unexpired period of their corporate charters just as though they

continued the operation of said street and interurban railways or

motor buses, or both.

Acts 1937, 45th Leg., p. 414, ch. 209, Sec. 1, eff. April 26,

1937.

Text of article effective until April 01, 2011

Art. 6542. PROVISIONS CUMULATIVE. No provision in this chapter

shall be construed to have the effect to confer the power of

eminent domain, or any power herein conferred, except that

conferred in the preceding article, upon any interurban railroad

or interurban railroad company, or upon any person, firm,

association, or corporation or to add to the powers already

possessed by any such railroad or railroad company, person, firm,

association or corporation so as to enable or authorize it to

condemn any land or ground occupied by any portion of its line or

track, already constructed March 5, 1907, or to condemn any land

or ground for the purpose of changing the location of any track

or line already constructed at said date. Nothing in this article

shall be construed to take from any interurban railroad company,

person, firm, association or corporation, any power of eminent

domain already possessed by it.

Acts 1907, p. 23.

Text of article effective until April 01, 2011

Art. 6543. MERGER. Any corporation organized under the laws of

this State authorized to construct, acquire and operate electric

or other interurban lines of railway in this State, commonly

known as interurban railways, may acquire, lease or purchase the

physical properties, rights and franchise of any other railway

corporation having and possessing like power, or may lease or

purchase physical properties, rights and franchises of any

suburban or street railway corporation, the lines of whose

railway are to be operated in connection with the lines of the

interurban railway, and may sell or dispose of the physical

properties, rights and franchise by such corporation or person

owning the same, to such corporation, acquiring, leasing or

purchasing same hereunder. Such acquisition or purchase may be

made upon such terms as may be agreed upon by the respective

boards of directors and authorized or approved by a majority of

the stockholders of such corporations, respectively. Corporations

owning and operating said street car railways before making sale

of its properties hereunder, shall obtain the consent of the

governing body of the city where such street car line may be

located; and, in cities and towns operating under any charter

which provides for the right of qualified voters to vote on the

granting or amending of franchise to street railways or

interurban railways, this right shall still exist. Any

corporation authorized to construct, acquire and operate electric

or other interurban lines of railway in this State, commonly

known as interurban railways, shall also have the power to make

and enter into trackage or lease contract with any corporation

owning and operating street railways, so as to procure continuous

passage into or through such city or town; provided, the

governing body of the city or town shall consent thereto; in such

case, the owner of such street railways is also authorized to

enter into such trackage or lease contract. No corporation named

in this article shall ever be permitted to acquire, own, control

or operate any parallel or competing interurban line. No such

corporation shall be permitted to purchase, lease, acquire, own

or control, directly or indirectly, the shares or certificates of

stock or bonds, franchise or other rights or the physical

properties or any part thereof, of any other corporation, if the

same will violate any provision of the law commonly known as the

anti-trust law.

Acts 1st C.S. 1915, p. 31.

Text of article effective until April 01, 2011

Art. 6544. STREET RAILWAY FARES. All persons or corporations

owning or operating street railways in or upon the public streets

of any town or city of not less than forty thousand inhabitants

are required:

1. To carry children of the age of twelve years or less for

one-half the fare regularly collected for the transportation of

adults. This law shall not apply to street cars carrying children

or students to and from schools, colleges or other institutions

of learning situated at a distance of one mile or more beyond the

limits of the incorporated city or town from which said cars run.

2. To sell or provide for the sale of tickets in lots of twenty,

each good for one trip over the line or lines owned or operated

by such person or corporation, for one-half of the regular fare

collected for the transportation of adults, to students not more

than seventeen years of age in actual attendance upon any

academic, public or private school of grades not higher than the

grades of the public high schools situated within or adjacent to

the town or city in which such railway is located. Such tickets

are required to be sold only upon the presentation by the student

desiring to purchase them of the written certificate of the

principal of the school which he attends showing that he is not

more than seventeen years old, is in regular attendance upon such

school and is within the grades herein provided. Such tickets are

not required to be sold to such students and shall not be used

except during the months when such school is in actual session

and such students shall be transported at half fare only when

they present such tickets.

3. To transport free of charge children of the age of five years

or less when attended by a passenger of above said age.

4. To accord to all passengers referred to in this article the

same rights as to the use of transfers issued by their own or

other lines as are or may be accorded to passengers paying full

fare.

Acts 1903, p. 132.

Text of article effective until April 01, 2011

Art. 6545. STREET AND SUBURBAN RAILWAYS. All street and suburban

railways engaged in the transportation of freight within and near

cities and towns, shall be subject to the control of the Railroad

Commission. No street railway company shall be exempt from

payment of assessments that may be legally levied or charged

against it for street improvements. Any corporation heretofore or

hereafter organized under the general laws of this State, and

which owns or operates with electric power any street or suburban

railway or belt line of railways within and near cities and towns

for the transportation of freight and passengers within Texas

shall be authorized to supply and sell electric light and power

to the public or municipalities, and to acquire or otherwise

provide the necessary appliances therefore [therefor], and may,

by proceeding in the manner provided by law, amend its articles

of incorporation so as to expressly include such authority. When

the Railroad Commission shall decide that any corporation created

under chapter one of this title for the purpose of operating a

local suburban railway not exceeding ten miles from the corporate

limits of any city or town in addition to such mileage as it may

have within the same, is not for any reason subject to the

control of said Commission in reference to the issuance of stocks

and bonds or either under the provisions of Chapter 50, Acts

1893, after such decision of the Commission, said corporation

shall have the right to issue its stocks and bonds or either and

also to increase its stocks and bonds or either without the

control of the Commission and without complying with the Act

aforesaid in reference thereto, and when so issued said stocks

and bonds shall in all respects be valid and binding.

Acts 1897, p. 189; Acts 1903, pp. 29, 62; G.L. vol. 10, p. 1243.

Text of article effective until April 01, 2011

Art. 6546. FREIGHT INTERURBANS. All electric, gas or gasoline,

denatured alcohol or naphtha interurban or motor railways

incorporated as such, which shall engage in transporting freight,

shall be subject to the control of the Railroad Commission. No

such corporation shall ever be exempt from the payment of

assessments that may be legally levied or assessed against it for

street improvements. Such interurban railways shall have the same

right of eminent domain as are now given by law to steam

railroads, and may exercise such right for the purpose of

acquiring right of way upon which to construct their railway

lines, and sites for depots and power plants, and shall have the

same rights, powers and privileges as are now granted by law to

interurban electric railways companies. Any such interurban

company shall have the right and authority to acquire, hold and

operate other public utilities in and adjacent to the cities or

towns within or through which said company operates. No property

upon which is located a cemetery shall ever be condemned by any

such interurban railway, unless it shall affirmatively be shown,

and so found by the court trying such condemnation suit, that it

is necessary to take such property, and no other route is

possible or practicable.

Acts 1897, p. 188; Acts 1903, p. 204; Acts 1909, 2nd C.S., p.

396; G.L., vol. 10, p. 1242; Acts 1917, p. 390.

Text of article effective until April 01, 2011

Art. 6547. PLANTS AND BUILDINGS. Any corporation heretofore

organized under any law of this State, and which now or may

hereafter operate a line of electric, gas or gasoline, denatured

alcohol, or naphtha motor railway, within and between any cities

or towns in Texas, is authorized to own and operate union depots

and office buildings, and to acquire, hold and operate electric

light and power plants in and adjacent to cities or towns within

or through which said company operates. Such existing

corporation, or one heretofore organized under subdivision 68 of

Article 1302, may, by proceeding in the manner provided by law,

amend its charter so as to expressly include any or all powers

herein authorized.

[Acts 1897, p. 189; Acts 1903, pp. 29, 62; G.L. vol. 10, p. 1243;

Acts 1903, p. 204; Acts 1897, p. 188; Acts 1909, 2nd C.S., p.

396; G.L., vol. 10, p. 1242; Acts 1917, p. 390.]

Text of article effective until April 01, 2011

Art. 6548. JITNEY LINES. Any corporation authorized to operate a

street or suburban railway or interurban railway and to carry

passengers for hire, is hereby authorized subject in every case

to the approval and consent of the governing body of the city or

town where said street, suburban or interurban railway company is

operated to substitute for such railway automobile motor bus

lines, in whole or in part, and to maintain and operate motor

buses for the purpose of carrying passengers for hire on the

public roads, streets, plazas, alleys, and highways within the

corporate limits of any incorporated cities or towns, under such

regulations as may be prescribed by any such cities or towns, and

on the public roads and highways within five (5) miles of the

corporate limits of any such incorporated cities or towns, under

such regulations, in territory outside of city limits, as the

Commissioners Court of the county may prescribe; and such

substitution of motor buses for street cars and street or

interurban railway and the discontinuance of such street or

interurban railways shall not in any way impair any of the

corporate powers of corporations heretofore incorporated as

street or interurban railways with respect to the operation of

other public utilities authorized by their charters and by

statutes now in force.

Provided, however, companies taking advantage of this Act shall

amend their charters and pay the fees provided by law for the

filing of such amendments; and, provided that this Act shall not

affect any case now pending in the courts; and, provided further

that nothing herein contained shall be so construed as to impair

the rights of any city under any franchise it may heretofore have

granted to the corporation in question, or its predecessor.

Acts 2nd C.S. 1923, p. 97.

Amended by Acts 1933, 43rd Leg., p. 48, ch. 22.

Art. 6548a. CERTAIN STREET AND INTERURBAN RAILWAY CORPORATIONS

AUTHORIZED TO AMEND CHARTERS TO INCLUDE OPERATION AS MOTOR

CARRIERS.

Authority

Sec. 1. That private corporations heretofore incorporated for the

purpose of operating street or interurban railways, which said

private corporations have totally abandoned such operations prior

to January 1, 1934, may amend their charters so as to include as

a separate purpose of the corporation the acquiring, owning and

operating of motor vehicles and motor buses for transportation of

passengers for hire upon the public streets and public ways of

cities and towns and upon the public ways of the adjacent

unincorporated territory within five (5) miles from the limits of

such cities and towns, provided however, this limit shall not be

construed to prohibit any corporation conforming with this Act

from contracting for chartered passenger service beyond said five

(5) mile limit, under such reasonable regulations as may be

legally imposed from time to time by such cities and towns within

the limits thereof and the Commissioners' Courts of counties as

now prescribed by Article 6548.

Contiguous Cities or Towns

Sec. 2. If the boundary of one city or town is contiguous with

the boundary or boundaries of another city or town, or other

cities or towns, the authority granted under Section 1, hereof to

operate within five (5) miles thereof, shall be construed to

include any territory within five (5) miles of the limits of any

such contiguous city or town.

Regulatory Authority of Railroad Commission Not Affected

Sec. 3. Nothing in this Act shall be construed to deprive the

Railroad Commission of Texas, of its exclusive authority to

continue the regulation of buses and motor vehicles operating

under its jurisdiction; nor shall this Act relieve such operators

of the requirement to secure certificates or permits from the

Railroad Commission authorizing such operations.

Itemized Statement of Money and Property and Value of Property to

be Filed

Sec. 4. Provided before any such amendment may be filed with the

Secretary of State the Officers and Directors of any corporation

shall file an affidavit with the Secretary of State giving a

detailed itemized statement of what money and property is held or

owned by it and the actual cash market value of each such item of

property.

Acts 1937, 45th Leg., p. 675, ch. 337, eff. May 15, 1937.

Text of article effective until April 01, 2011

Art. 6550. ROAD TO MINES, ETC. Corporations created to build,

maintain and operate a line of railroads to mines, gins,

quarries, manufacturing plants, and mills, shall have the right

to condemn land necessary for the right of way for such road from

and between such mines, gin, quarry, manufacturing plant or mill

and the nearest line of railroad, provided, that no such

corporation shall have said right of eminent domain until it

shall declare itself a public highway and common carrier, thus

placing said road under the control of the Railroad Commission.

Acts 1897, p. 192; G.L. vol. 10, p. 1246.

Art. 6550a1. AERIAL OR TRAMWAYS TO MINES. Every person, firm,

corporation, limited partnership, joint stock association or

other association of any kind whatsoever, owning, constructing,

operating or managing any aerial or other kind of tramway within

this State between a mine, smelter or railway or either, may hold

and acquire by purchase or condemnation rights-of-way, but in the

exercise of such right shall be deemed to be a common carrier,

and shall be subject to the jurisdiction and control of the

Railroad Commission, and shall have the right and power of

eminent domain in the exercise of which he, it or they may enter

upon and condemn land, rights-of-way, easement and property of

any person or corporation necessary for the construction,

maintenance or operation of his, its, or their aerial or other

kind of tramway; such right of eminent domain for acquiring

rights-of-way provided for herein, shall be exercised in the

manner prescribed by law for condemning of land and acquiring

rights-of-way by railroad companies.

Acts 1927, 40th Leg., p. 379, ch. 256, Sec. 1, eff. March 31,

1927.

Text of article effective until April 01, 2011

Art. 6550c. RURAL RAIL TRANSPORTATION DISTRICTS.

Findings

Sec. 1. The legislature finds that:

(1) the state contains many rural areas that are heavily

dependent on agriculture for economic survival;

(2) transportation of agricultural and industrial products is

essential to the continued economic vitality of rural areas;

(3) the rail transportation systems in some rural areas are

threatened by railroad bankruptcies and abandonment proceedings

that would cause the cessation of rail services to the areas;

(4) it is in the interest of all citizens of the state that

existing rail systems be maintained for the most efficient and

economical movement of essential agricultural products from the

areas of production to the local, national, and export markets;

(5) rural rail transportation districts are appropriate political

subdivisions to provide for the continued operation of railroads,

which are declared by Article X, Section 2, of the Texas

Constitution to be public highways;

(6) the creation, re-creation, financing, maintenance, and

operation of rural rail transportation districts and facilities

acquired by the districts under this Act will help develop,

maintain, and diversify the economy of the state, eliminate

unemployment or underemployment, foster the growth of enterprises

based on agriculture, and serve to develop and expand

transportation and commerce within the state under the authority

granted by Article III, Section 52-a, of the Texas Constitution;

and

(7) financing by rural rail transportation districts for the

purposes provided by this Act is a lawful and valid public

purpose.

Definitions

Sec. 2. In this Act:

(1) "Board" means the board of directors of a rural rail

transportation district.

(2) "Bonds" means bonds; notes, including bond anticipation

notes, revenue anticipation notes, and grant anticipation notes;

warrants; certificates of obligation; interest-bearing contracts;

interest-bearing leases of property; equipment trust

certificates; commercial paper; and any obligation issued to

refund any type of bond.

(3) "Concurrent orders" means the orders adopted by eligible

counties that contain identical provisions regarding the creation

or re-creation of a district.

(4) "District" means a rural rail transportation district created

under this Act.

(5) "Earthworks and structures" includes the clearing and

grubbing of right-of-way; demolition of structures; relocation of

utilities, pipelines, and any other obstacles in right-of-way;

stripping and stockpiling; removal of subsoils for embankment or

spoil; borrow pits; dressing and seeding of slopes; construction

of culverts; road crossings; bridges; restoration of roadway;

drainage within a right-of-way or along road networks; and

restoration of a hydrologic system.

(6) "Eligible counties" means two or more counties that meet the

requirements of Sections 3(a) and (b) of this Act.

(7) "Operating contract" means a professional services contract

executed by a district and another person under which the person

agrees to provide:

(A) all or part of the rolling stock required for operation as a

common carrier over all or a part of the rail facilities of the

district; and

(B) all or part of the personnel required for the operation of

the rolling stock owned or leased by the district or for the

operation of the rail facilities of the district.

(8) "Maintenance and operating expenses" means all expenses of

operating and maintaining a district and its rail facilities,

including all compensation, labor, materials, repairs, and

extensions necessary, required, or convenient in the discretion

of the board to render efficient service or to maintain and

operate the district, and taxes or other amounts paid, payable,

or to be paid to the United States pursuant to Section 148(f) of

the Internal Revenue Code of 1986 (26 U.S.C. Section 148), or any

similar law.

(9) "Maintenance facility" includes a workshop, a service,

storage, security, or personnel facility, temporary or transient

lodging for district employees, and equipment for any type of

facility.

(10) "Person" has the meaning assigned by Section 311.005,

Government Code.

(11) "Rail facilities" means any real, personal, or mixed

property, or any interest in that property that is determined by

the board to be necessary or convenient for the provision of a

rural rail transportation system and all property or interests

necessary or convenient for the acquiring, providing,

constructing, enlarging, remodeling, renovating, improving,

furnishing, using, or equipping of the system, including

rights-of-way, earthworks and structures, trackwork, train

controls, stations, rolling stock, and maintenance facilities.

(12) "Revenues" means all income, receipts, and collections

received by, to be received by, or pledged to the district from

or by any source, except a restricted gift or a grant in aid of

construction.

(13) "Right-of-way" means a right of passage over property; a

strip of land in length and width determined required, necessary,

or convenient by the board over, on, or under which trackwork is

or is to be constructed or acquired; or a right of precedential

passing.

(14) "Rolling stock" means locomotives, engines, rail cars,

repair construction cars, or other cars designed to operate on

trackwork.

(15) "Station" means a passenger or freight service building,

terminal, or station, ticketing facility, waiting area, platform,

concession, elevator, escalator, facility for handicapped access,

access road, parking facility for passengers, baggage handling

facility, local maintenance facility, and offices for district

purposes, together with any interest in real property necessary

or convenient for any of the listed items.

(16) "Trackwork" means track, track beds, track bed preparation,

ties, rail fasteners, slabs, rails, emergency crossovers, setout

tracks, storage track, and switches.

(17) "Train controls" includes signalling, interlocking

equipment, speed monitoring equipment, emergency braking systems,

central traffic control facilities, and communication systems.

Creation, Re-Creation, or Dissolution of District Located in More

Than One County.

Sec. 3. (a) The commissioners courts of two or more eligible

counties that, taken together, constitute a contiguous geographic

area may by order create or re-create a rural rail transportation

district consisting of the territory of the counties whose

commissioners courts adopt the order.

(b) A county eligible to create or re-create a district is one in

which is located a rail line that is in the process of being or

has been abandoned through a bankruptcy court or Interstate

Commerce Commission proceeding, or any line carrying 3 million

gross tons per mile per year or less.

that create a district or provide for the re-creation of a

district by the addition of one or more counties shall by

concurrent order at the time of creation or re-creation:

(1) declare the boundaries of the district as the boundaries of

the counties included;

(2) designate the name of the district; and

(3) designate the number of board members, which may not be less

than four, and the manner of their appointment by a commissioners

court.

(d) The commissioners courts of all counties included within a

district by order may provide for the dissolution of the district

if:

(1) the commissioners courts determine that the dissolution will

not impair an obligation of any contract of the district; and

(2) the dissolution order will become effective only on the

creation or re-creation of another district in which each county

included within the dissolving district is included.

(e) A district created or re-created under this section

automatically assumes any obligation of a contract executed by

the district or a predecessor district and in force on the date

of the creation or re-creation unless the contract expressly

expires on the date of dissolution or re-creation of the district

that executed the contract.

(f) The board of directors of each newly created district shall

provide notice to the Texas Transportation Institute of the

creation of the district. On being notified by the board, the

Texas Transportation Institute shall make available to the board

a guide to the services and information that the institute

provides.

Creation or Dissolution of District Located Wholly in One County

Sec. 3A. (a) In addition to eligible counties, the commissioners

court of a county that meets the requirements of Section 3(b) of

this Act by order may create a rural rail transportation district

for purposes of developing, financing, maintaining, and operating

a new rail system under this Act and for other purposes of this

Act.

(b) The boundaries of a district created under this section are

the boundaries of the county in which the district is created.

shall:

(1) designate the name of the district; and

(2) appoint at least four residents of the county to serve as

directors of the district.

(d) A member of the board of directors serves for a two-year

term. An initial director serves for a term ending on the second

anniversary of the date on which the order creating the district

was adopted.

(e) Section 4 of this Act applies to a board member appointed

under this section.

(f) The commissioners court of the county by order may provide

for the dissolution of the district if:

(1) the commissioners court determines that the dissolution will

not impair an obligation of any contract of the district; and

(2) the dissolution order will become effective only on the

creation of another district under this Act that includes the

county and meets the requirements of Sections 3(a) and (b) of

this Act.

Board of Directors; Employees

Sec. 4. (a) The board of directors is responsible for the

management, operation, and control of the district.

(b) To be eligible for appointment to the board, a person must be

a resident of the county governed by the commissioners court that

appoints the person. A board member serves for a term of two

years ending on the second anniversary of the latest date a

concurrent order was adopted creating or re-creating the

district. A vacancy on the board shall be filled for the

remainder of the term by the commissioners court that appointed

the member who vacated the position. A board member may be

removed from office for neglect of duty or malfeasance in office

by the commissioners court that appointed the member, after at

least 10 days' written notice to the member and a hearing before

the commissioners court. At a hearing on the question of removal

of a board member, the board member is entitled to be heard in

person or through counsel.

vice-president, treasurer, and secretary. The secretary is not

required to be a board member. The board shall hold at least one

regular meeting each month for the purpose of transacting

business of the district. The president may call special meetings

of the board. A majority of the members is a quorum.

(d) The board shall adopt rules for its proceedings and may

employ and compensate persons to carry out the powers and duties

of the district. The right to control and regulate the affairs of

the district is vested exclusively in the board except as

specifically otherwise provided by this Act.

(e) A board member or employee of a district may not be

pecuniarily interested, directly or indirectly, in any contract

or agreement to which the district is a party.

(f) Notice of a meeting of the board shall be posted at the

administrative office of the district and at the courthouse in

the county in which that office is located. In all other respects

Chapter 271, Acts of the 60th Legislature, Regular Session, 1967

(Article 6252-17, Vernon's Texas Civil Statutes), applies to

meetings of the board.

(g) An elected officer of the state or a political subdivision of

the state who is not prohibited by the Texas Constitution from

serving on the board is eligible to serve on the board.

Powers and Duties of District

Sec. 5. (a) A rural rail transportation district is a public body

and a political subdivision of the state exercising public and

essential governmental functions and having all the powers

necessary or convenient to carry out the purposes of this Act,

including the powers granted in this section. A district, in the

exercise of powers under this Act, is performing only

governmental functions and is a "governmental unit" within the

meaning of Chapter 101, Civil Practice and Remedies Code. A

district is a "local government" under Chapter 1084, Acts of the

70th Legislature, Regular Session, 1987 (Article 715c, Vernon's

Texas Civil Statutes); an "issuer" under Chapter 503, Acts of the

54th Legislature, 1955 (Article 717k, Vernon's Texas Civil

Statutes), Chapter 784, Acts of the 61st Legislature, Regular

Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes),

the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas

Civil Statutes), Chapter 53, Acts of the 70th Legislature, 2nd

Called Session, 1987 (Article 717k-8, Vernon's Texas Civil

Statutes), and Chapter 656, Acts of the 68th Legislature, Regular

Session, 1983 (Article 717q, Vernon's Texas Civil Statutes); and

a "public agency" under Chapter 3, Acts of the 61st Legislature,

Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil

Statutes), and Chapter 400, Acts of the 66th Legislature, 1979

(Article 717m-1, Vernon's Texas Civil Statutes). The acquisition,

improvement, or repair of rail facilities by a district is an

"eligible project" under Chapter 656, Acts of the 68th

Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas

Civil Statutes).

(b) A district has perpetual succession.

jurisdiction, may institute and prosecute suits without giving

security for costs, and may appeal from a judgment without giving

supersedeas or cost bond. An action at law or in equity against

the district shall be brought in the county in which the

principal office of the district is located, except that in

eminent domain proceedings suit shall be brought in the county in

which the land is located.

(d) A district may acquire by grant, purchase, gift, devise,

lease, or otherwise and may hold, use, sell, lease, or dispose of

real and personal property, licenses, patents, rights, and

interests necessary, convenient, or useful for the full exercise

of any of its powers under this Act.

(e) A district may plan, acquire, construct, complete, develop,

own, operate, and maintain rail facilities inside or outside the

district, and for those purposes subject to a grant previously

secured or with the consent of any municipality, county, or other

political subdivision may use streets, alleys, roads, highways,

and other public ways of any municipality, county, or other

political subdivision and may relocate, raise, reroute, change

the grade of, or alter, at the expense of the district, the

construction of any street, alley, highway, road, railroad,

electric lines and facilities, telegraph and telephone properties

and facilities, pipelines and facilities, conduits and

facilities, and other properties, whether publicly or privately

owned, as necessary or useful in the construction,

reconstruction, repair, maintenance, and operation of rail

facilities. A district may acquire by purchase, whenever it

considers the purchase expedient, any land, property rights,

right-of-way, franchises, easements, and other interests in land

as it considers necessary for the acquisition, construction, or

operation of any rail facility on such terms and at such price as

agreed to between the district and the owner and may take title

in the name of the district. The governing body of every

municipality, county, other political subdivision, or public

agency is authorized without any form of advertisement to make

conveyance of title or rights and easements to any property

needed by the district to effect its purposes in connection with

the acquisition, construction, or operation of rail facilities.

(f) A district has the right of eminent domain to acquire lands

in fee simple and any interest less than fee simple in, on,

under, or above lands, including, without limitation, easements,

rights-of-way, rights of use of airspace or subsurface space. The

right may not be exercised in a manner that would unduly

interfere with interstate commerce. Eminent domain proceedings

brought by a district are governed by Title 52, Revised Statutes,

except as it is inconsistent with this Act. Proceedings for the

exercise of the power of eminent domain are commenced by the

adoption by the board of a resolution declaring the public

necessity for the acquisition by the district of the property or

interest described in the resolution, and that the acquisition is

necessary and proper for the construction, extension,

improvement, or development of rail facilities and is in the

public interest. The resolution of the district is conclusive

evidence of the public necessity of the proposed acquisition and

that the real or personal property or interest in property is

necessary for public use.

(g) A district may enter into agreements with any other public

utility, private utility, communication system, common carrier,

or transportation system for the joint use of its facilities,

installations, or properties within or outside the district and

establish through routes, joint fares, and, subject to approval

of any tariff-regulating body having jurisdiction, divisions of

tariffs.

(h) A district may adopt rules to govern the operation of the

district, its employees, the rail facilities, service provided by

the district, and any other necessary matter concerning its

purposes, including rules regarding health, safety, alcohol or

beverage service, food service, and telephone and utility

services, to protect the health, safety, and general welfare of

the state.

(i) A district may enter into joint ownership agreements with any

person.

(j) A district shall establish and maintain rents or other

compensation for the use of the facilities of the system

acquired, constructed, operated, regulated, or maintained by the

district that are reasonable and nondiscriminatory and, together

with grants received by the district, are sufficient to produce

revenues adequate:

(1) to pay all expenses necessary to the operation and

maintenance of the properties and facilities of the district;

(2) to pay the interest on and principal of all bonds issued by

the district under this Act payable in whole or in part from the

revenues, as they become due and payable; and

(3) to fulfill the terms of any agreements made with the holders

of bonds or with any person in their behalf.

(k) A district may make contracts, leases, and agreements with,

and accept grants and loans from the United States of America,

its departments and agencies, the state, its agencies, and

political subdivisions, and public or private corporations and

persons, and may generally perform all acts necessary for the

full exercise of the powers vested in it. A district may acquire

rolling stock or other property under conditional sales

contracts, leases, equipment trust certificates, or any other

form of contract or trust agreement. Any revenue bond indenture

may provide limitations on the exercise of the powers granted by

this section, and the limitations apply so long as any of the

revenue bonds issued pursuant to the indenture are outstanding

and unpaid.

(l) A district may sell, lease, convey, or otherwise dispose of

any of its rights, interests, or properties not needed for or, in

the case of leases, not inconsistent with the efficient operation

and maintenance of the system. It may, on adoption of an order by

the board, sell, lease, or otherwise dispose of, at any time, any

surplus materials or personal or real property not needed for its

requirements or for the purpose of carrying out its power under

this Act.

(m) A district by resolution may adopt rules and regulations

governing the use, operation, and maintenance of the system and

shall determine all routings and change them whenever the board

considers it advisable.

(n) A district may lease the rail facilities or any part to, or

contract for the use or operation of the rail facilities or any

part by, any operator. A district shall encourage to the maximum

extent practicable the participation of private enterprise in the

operation of rail facilities. The term of an operating contract

under this subsection may not exceed 20 years.

(o) A district may contract with any county or other political

subdivision of the state for the district to provide rail

transportation services to any area outside the boundaries of the

district on such terms and conditions as may be agreed to by the

parties.

(p) Before beginning the operation of rail facilities the board

of a district shall adopt an annual operating budget specifying

the anticipated revenues and expenses of the district for the

remainder of the fiscal year, and the district shall adopt an

operating budget for each succeeding fiscal year. The fiscal year

of the district ends September 30 unless changed by the board not

more than once in any three-year period. The board shall hold a

public hearing before adopting each budget except the initial

budget. Notice of each hearing must be published at least seven

days before the date of the hearing in a newspaper of general

circulation in the district. A budget may be amended at any time

if notice of the proposed amendment is given in the notice of

meeting. An expenditure that is not budgeted may not be made.

(q) The board of a district shall by resolution name one or more

banks for the deposit of district funds. District funds are

public funds and may be invested in securities permitted by the

Public Funds Investment Act of 1987 (Article 842a-2, Vernon's

Texas Civil Statutes). To the extent funds of the district are

not insured by the Federal Deposit Insurance Corporation or its

successor, they shall be collateralized in the manner provided

for county funds.

(r) A district may not abandon a rail line of the district with

respect to which state funds have been loaned or granted unless

the abandonment is approved by the Texas Transportation

Commission as being consistent with the policies of this Act. The

commission by rule shall adopt procedures for applying for and

obtaining approval under this subsection.

Bonds and Notes

Sec. 6. (a) A district may issue revenue bonds and notes from

time to time and in such amounts as its board considers necessary

or appropriate for the acquisition, purchase, construction,

reconstruction, repair, equipping, improvement, or extension of

its rail facilities. All bonds and notes are fully negotiable and

may be made redeemable before maturity, at the option of the

issuing district, at such price or prices and under such terms

and conditions as may be fixed by the issuing district in the

resolution authorizing the bonds or notes, and may be sold at

public or private sale, as determined by the board.

(b) Before delivery, all bonds and notes authorized to be issued,

except notes issued to an agency of the federal or state

government, and the records relating to their issuance shall be

submitted to the attorney general for examination. If the

attorney general finds that they have been issued in accordance

with the constitution and this Act, and that they will be binding

obligations of the district issuing them, the attorney general

shall approve them, and they shall be registered by the state

comptroller of public accounts. After approval, registration, and

sale and delivery of the bonds to the purchaser, they are

incontestable.

district may encumber and pledge all or any part of the revenues

of its rail facilities, may mortgage and encumber all or any part

of the properties of the rail facilities, and everything

pertaining to them acquired or to be acquired, and may prescribe

the terms and provisions of the bonds and notes in any manner not

inconsistent with this Act. If not prohibited by the resolution

or indenture relating to outstanding bonds or notes, any district

may encumber separately any item or items of real estate or

personalty.

(d) All bonds and notes are legal and authorized investments for

banks, trust companies, savings and loan associations, and

insurance companies. The bonds and notes are eligible to secure

the deposit of public funds of the state, cities, towns,

villages, counties, school districts, or other political

corporations or subdivisions of the state. The bonds and notes

are lawful and sufficient security for the deposits to the extent

of the bonds' principal amount or market value, whichever is

less.

(e) Bonds payable solely from revenues may be issued by

resolution of the board.

Alternative Financing

Sec. 6A. (a) A district may use the procedures provided by

Chapter 271, Local Government Code, to finance rail facilities of

the district, except to the extent of conflict with this Act and

except that the district may not levy or collect ad valorem

taxes.

(b) A district may issue nonnegotiable purchase money notes,

payable in installments and secured by the property being

acquired or constructed, to acquire or construct rail facilities.

A district may also secure the obligation of the notes by a

pledge or undertaking to issue bonds or bond anticipation notes.

A district may covenant with the purchaser of bond anticipation

notes that the proceeds of one or more particular series of bonds

will be used for the ultimate payment of the purchase money notes

or bond anticipation notes.

Competitive Bids

Sec. 7. A contract in the amount of more than $15,000 for the

construction of improvements or the purchase of material,

machinery, equipment, supplies, or any other property except real

property may only be let on competitive bids after notice

published, at least 15 days before the date set for receiving

bids, in a newspaper of general circulation in the district. A

board may adopt rules governing the taking of bids and the

awarding of contracts. This section does not apply to personal or

professional services or the acquisition of existing rail

transportation systems.

Exemptions From Taxes

Sec. 8. The property, revenues, and income of a district and the

interest on bonds and notes issued by a district are exempt from

all taxes levied by the state or a political subdivision of the

state.

Effect on Other Law

Sec. 9. The powers and duties provided by this Act are in

addition to the powers and duties provided by other law for

counties regarding rail transportation.

Acts 1981, 67th Leg., p. 2434, ch. 623, eff. June 15, 1981. Secs.

1 to 6 amended by and Sec. 6A added by Acts 1993, 73rd Leg., ch.

332, Sec. 1, eff. Aug. 30, 1993; Sec. 7 amended by Acts 1993,

73rd Leg., ch. 757, Sec. 35, eff. Sept. 1, 1993; Sec. 3 head

amended by Acts 1997, 75th Leg., ch. 1105, Sec. 2, eff. June 19,

1997; Sec. 3(f) added by Acts 1997, 75th Leg., ch. 580, Sec. 2,

eff. Sept. 1, 1997; Sec. 3A added by Acts 1997, 75th Leg., ch.

1105, Sec. 1, eff. June 19, 1997; Sec. 4(g) added by Acts 1997,

75th Leg., ch. 580, Sec. 1, eff. Sept. 1, 1997; Sec. 5(r) added

by Acts 2001, 77th Leg., ch. 1244, Sec. 3, eff. Sept. 1, 2001.

Text of article effective until April 01, 2011

Art. 6550c-1. INTERMUNICIPAL COMMUTER RAIL DISTRICTS.

Definitions

Sec. 1. In this article:

(1) "Commission" means the Texas Transportation Commission.

(2) "Commuter rail facility" means any property necessary for the

transportation of passengers and baggage between points in a

district. The term includes rolling stock, locomotives, stations,

parking areas, and rail lines.

(3) "Creating municipality" means a municipality described by

Section 2(a) of this article.

(4) "Department" means the Texas Department of Transportation.

(5) "District" means an intermunicipal commuter rail district

created under this article.

(6) "District property" means all property the district owns or

leases under a long-term lease.

(7) "System" means all of the commuter rail and intermodal

facilities leased or owned by or operated on behalf of a district

created under this article.

Creation of District

Sec. 2. (a) A district may be created to provide commuter rail

service between two municipalities:

(1) each of which has a population of more than 450,000; and

(2) that are located not farther than 100 miles apart as

determined by the department.

(b) A district is created on passage of a resolution favoring the

creation of the district by the governing body of each creating

municipality and the governing body of each county in which a

creating municipality is located.

entities may become a part of a district created under Subsection

(b) of this section with the approval of the governing body of

the political subdivision or public entity:

(1) a county located adjacent to a county in which a creating

municipality is located;

(2) a municipality with a population of more than 18,000 located

in a county described by Subdivision (1) of this subsection; and

(3) a public entity located in a county that has become a part

of the district.

(d) For purposes of this article, a municipality is located in a

county only if 90 percent or more of the population of the

municipality resides in that county according to the most recent

federal census.

Board

Sec. 3. (a) A district is governed by a board of directors. The

board is responsible for the management, operation, and control

of the district.

(b) The board is composed of the following members:

(1) two public members appointed by the commission;

(2) one elected member of the governing body of each political

subdivision that has become a part of the district under Section

2 of this article;

(3) one elected member appointed by the regional planning

organization of which a creating municipality is a part;

(4) one member appointed by each creating municipality to

represent the business community of the municipality;

(5) one member appointed by each authority created under Chapter

451, Transportation Code, that serves a creating municipality;

(6) one member appointed by each county in which a creating

municipality is located to represent transportation providers

that provide service to rural areas in the county;

(7) one member appointed by each public entity that has become a

part of the district under Section 2 of this article; and

(8) one member appointed by all other board members to represent

all municipalities in the district that do not otherwise have

representation on the board and who shall be an elected official

of one of those municipalities.

appointed or elected in the same manner as the original

appointment or election. Each member serves a staggered two-year

term with as near as possible to half of the members' terms

expiring February 1 of each year. If one or more members are

added to the board, the board members other than the new members

shall determine the lengths of the new members' terms so that

one-half, or as near one-half as possible of the members serve

terms expiring each year.

(d) The members of the board shall elect one member as presiding

officer. The presiding officer may select another member to

preside in the absence of the presiding officer.

(e) The presiding officer shall call at least one meeting of the

board a year and may hold other meetings as the presiding officer

determines are appropriate.

(f) A member of the board is not entitled to compensation for

serving as a member but is entitled to reimbursement for

reasonable expenses incurred while serving as a member.

(g) The board shall adopt rules for its proceedings and appoint

an executive committee and may employ and compensate persons to

carry out the powers and duties of the district.

(h) Chapter 171, Local Government Code, applies to a board member

of a district.

(i) The board shall adopt a name for the district and may by

resolution change the name of the district.

Sec. 3A. BOARD MEETINGS BY TELEPHONE OR VIDEOCONFERENCE. (a)

Chapter 551, Government Code, does not prohibit the board from

holding an open or closed meeting by telephone conference call or

videoconference.

(b) A meeting held by telephone conference call or

videoconference need not have a quorum present at any one

location.

subject to the notice requirements applicable to other meetings.

(d) The notice of a telephone conference call or videoconference

meeting must specify all locations of the meeting where a member

of the board will participate. The notice must also specify the

physical location from which the presiding officer of the board

will preside. All locations must be open to the public during

the open portion of the meeting.

(e) Each part of a telephone conference call meeting that is

required to be open to the public shall be audible to the public

at the location specified in the notice of the meeting as the

location of the meeting and shall be tape recorded. The tape

recording shall be made available to the public.

(f) Each part of a videoconference meeting that is required to

be open to the public shall:

(1) be visible and audible to the public at all locations

specified in the notice of the meeting as the locations of the

meeting; and

(2) have two-way audio and video communications with each

participant in the meeting during the entire meeting.

(g) Without regard to whether a member of the board is

participating in a meeting from a remote location by

videoconference call, the board may allow a member of the public

to testify at a meeting from a remote location by videoconference

call. The board shall designate the location for public

participation in the notice of the meeting.

Powers and Duties of District

Sec. 4. (a) A district created under this article is a public

body and a political subdivision of the state exercising public

and essential governmental functions and has all the powers

necessary or convenient to carry out the purposes of this

article. A district, in the exercise of powers under this

article, is performing only governmental functions and is a

governmental unit within the meaning of Chapter 101, Civil

Practice and Remedies Code.

(b) A district is subject every 12th year to review under Chapter

325, Government Code (Texas Sunset Act).

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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