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  S.B. No. 1659
 
 
 
 
AN ACT
  relating to the transfer of the Texas State Railroad to, and the
  creation of, the Texas State Railroad Authority.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 4, Special District Local Laws Code, is
  amended by adding Subtitle D to read as follows:
  SUBTITLE D. PARKS AND RECREATION
  CHAPTER 4501.  TEXAS STATE RAILROAD AUTHORITY
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 4501.001.  DEFINITIONS. In this chapter:
               (1)  "Authority" means the Texas State Railroad
  Authority.
               (2)  "Board" means the authority's board of directors.
               (3)  "Director" means a board member.
         Sec. 4501.002.  CREATION AND NATURE OF AUTHORITY. The Texas
  State Railroad Authority is a special district created under
  Section 59, Article XVI, Texas Constitution, for the development of
  parks and recreational facilities.
         Sec. 4501.003.  PURPOSES OF AUTHORITY. (a)  The authority
  is created to:
               (1)  purchase, own, hold, lease, and otherwise acquire
  facilities or other property to operate and maintain the Texas
  State Railroad;
               (2)  continue and improve the operation of the Texas
  State Railroad as a public recreational, historical, and cultural
  resource;
               (3)  operate concessions, museums, campgrounds, and
  other facilities associated with the Texas State Railroad; and
               (4)  enhance, augment, and improve the historical,
  educational, and cultural benefits offered by the Texas State
  Railroad.
         (b)  The creation of the authority is necessary to promote,
  develop, encourage, and maintain employment, commerce,
  transportation, tourism, recreation, the arts, entertainment,
  economic development, and public welfare in Anderson and Cherokee
  Counties.
         Sec. 4501.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
  (a)  The authority is created to serve a public use and benefit.
         (b)  All residents of this state will benefit from the works
  and projects provided by the authority.
         (c)  The creation of the authority is in the public interest
  and is essential to:
               (1)  further the public purposes of development and
  diversification of the economy of the state;
               (2)  eliminate unemployment and underemployment; and
               (3)  develop and expand commerce, tourism, recreation,
  historical awareness, education, and the arts.
         (d)  The authority will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, employees, visitors, and consumers in
  Anderson and Cherokee Counties;
               (2)  preserve, maintain, and enhance the Texas State
  Railroad; and
               (3)  preserve, maintain, and enhance the economic
  health and vitality of Anderson and Cherokee Counties.
         (e)  The authority may not act as the agent or
  instrumentality of any private interest, even though the authority
  will incidentally benefit many private interests in addition to the
  paramount public interest.
         Sec. 4501.005.  GENERAL WATER DISTRICT LAW NOT APPLICABLE.
  Chapter 49, Water Code, does not apply to the authority.
  [Sections 4501.006-4501.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 4501.051.  GOVERNING BODY; TERMS. (a)  The authority
  is governed by a board of seven voting directors appointed under
  Section 4501.053, with three directors appointed by the City of
  Palestine, three directors appointed by the City of Rusk, and one
  director appointed by the other directors.
         (b)  Voting directors serve staggered three-year terms,
  with:
               (1)  as near as possible to one-third of the terms of
  directors appointed by each city or other political subdivision
  expiring September 1 of each year; and
               (2)  the term of the director appointed by the other
  directors expiring October 1 of each third year.
         Sec. 4501.052.  ELIGIBILITY. (a)  To be qualified to serve
  as a director, a person must be at least 21 years of age.
         (b)  A voting director may not serve more than three
  consecutive terms.
         (c)  At least two of the three directors appointed by:
               (1)  the City of Palestine must reside in Anderson
  County; and
               (2)  the City of Rusk must reside in Cherokee County.
         Sec. 4501.053.  APPOINTMENT OF DIRECTORS. (a)  Not later
  than August 31 of each year, by majority vote:
               (1)  the city council of the City of Palestine shall
  appoint as a voting director one person proposed by the mayor of
  Palestine; and
               (2)  the city council of the City of Rusk shall appoint
  as a voting director one person proposed by the mayor of Rusk.
         (b)  Not later than September 30 of every third year, by
  majority vote, the directors appointed under Subsection (a) shall
  appoint a seventh director.
         Sec. 4501.054.  NONVOTING DIRECTORS. (a)  The following
  persons serve as nonvoting directors:
               (1)  the mayor of the City of Palestine or a member of
  the city council of the City of Palestine designated by the mayor;
  and
               (2)  the mayor of the City of Rusk or a member of the
  city council of the City of Rusk designated by the mayor.
         (b)  A nonvoting director is not counted in determining the
  board quorum.
         Sec. 4501.055.  VACANCIES. A board vacancy is filled in the
  same manner as the original appointment.
         Sec. 4501.056.  VOTING AUTHORITY OF PRESIDENT. The board
  president is a voting director but may vote only to break a tie. All
  other voting directors are entitled to one vote on any issue before
  the board.
         Sec. 4501.057.  OFFICERS. (a)  Each year, the board shall
  elect from among the voting directors officers for the authority,
  including a president, a vice president, a secretary, and a
  treasurer.
         (b)  The president and the vice president may not be
  directors appointed by the same city.
  [Sections 4501.058-4501.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 4501.101.  GENERAL POWERS. The authority has the
  powers necessary to accomplish any authority purpose, including the
  purposes specified in Section 4501.003.
         Sec. 4501.102.  CONTRACT TO MANAGE OR OPERATE AUTHORITY
  PROPERTY. The authority may contract with any person to manage or
  operate all or part of authority property.
         Sec. 4501.103.  COMPETITIVE BIDDING. (a)  Except as
  provided by Subsection (b), the competitive bidding requirements
  for a municipality under Chapter 252, Local Government Code, apply
  to the authority.
         (b)  A contract with a private person under Section 4501.102
  or 4501.104(2) is exempt from the competitive bidding requirements
  of Chapter 252, Local Government Code, or any other statute if the
  contract:
               (1)  is entered into before the effective date of the
  Act creating this chapter;
               (2)  is conditioned on the passage of the Act creating
  this chapter; and
               (3)  is assigned by a party to the contract after the
  effective date of the Act creating this chapter.
         Sec. 4501.104.  GENERAL PROPERTY POWERS. The authority may:
               (1)  acquire, own, lease, operate, construct,
  maintain, repair, improve, or extend improvements, equipment, or
  any other property necessary to accomplish an authority purpose; or
               (2)  lease or otherwise convey authority property to
  private parties for an authority purpose.
         Sec. 4501.105.  CONDITIONAL TRANSFER OF PROPERTY. (a)  A
  conveyance of authority property, including a lease, to a private
  operator or any other person must be conditioned on an obligation
  that the property must be used as provided by this section.
         (b)  The conveyance must provide that ownership of authority
  property automatically reverts to the Parks and Wildlife Department
  if the authority or a private operator:
               (1)  does not use the property:
                     (A)  to support the operations of the Texas State
  Railroad; or
                     (B)  in a manner that primarily promotes a state
  public interest; or
               (2)  converts the Texas State Railroad to a static
  display.
         Sec. 4501.106.  SURPLUS PROPERTY. The authority, with the
  consent of the Parks and Wildlife Department, may dispose of
  surplus property, including by exchanging the surplus property with
  another person for other property, to improve the quality and
  usefulness of property used by the authority.
         Sec. 4501.107.  DISPOSITION OF PUBLIC PARKS AND RECREATIONAL
  LANDS; EXEMPTION FROM APPLICABILITY OF OTHER LAW. Chapter 253,
  Local Government Code, and Chapter 26, Parks and Wildlife Code, do
  not apply to the use, transfer, or other disposition of property by
  any method:
               (1)  to the authority by any person; or
               (2)  by the authority to any person.
         Sec. 4501.108.  NONPROFIT CORPORATION. (a)  The board by
  resolution may authorize the creation of a nonprofit corporation to
  assist the authority in implementing a project or providing a
  service authorized by this chapter.
         (b)  The nonprofit corporation may implement any project and
  provide any service authorized by this chapter.
         (c)  The board shall appoint the board of directors of the
  nonprofit corporation.
         Sec. 4501.109.  AUTHORITY TO SUE AND BE SUED; IMMUNITY.
  (a)  The authority may sue and be sued in this state.
         (b)  This section does not waive any governmental immunity
  that would otherwise apply to the authority.
  [Sections 4501.110-4501.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 4501.151.  AD VALOREM TAXES PROHIBITED. The authority
  may not impose an ad valorem tax.
         Sec. 4501.152.  GRANTS; DONATIONS. The authority may accept
  grants and donations, including property, for any authority
  purpose.
         Sec. 4501.153.  GRANTS FROM OTHER TAXING AUTHORITY;
  CONTRACT.  (a)  A taxing authority in Anderson or Cherokee County
  may by contract grant to the authority:
               (1)  sales tax revenue received from a sale made on
  property owned, controlled, or leased by the authority or by a
  person with whom the authority contracts under Section 4501.102; or
               (2)  local hotel occupancy tax revenue received from a
  hotel located within one mile of a place where the Texas State
  Railroad loads or unloads passengers.
         (b)  The grant must serve a public purpose of the taxing
  authority making the grant.
  [Sections 4501.154-4501.200 reserved for expansion]
  SUBCHAPTER E. DISSOLUTION
         Sec. 4501.201.  DISSOLUTION OF AUTHORITY; OUTSTANDING DEBT.
  (a)  The board may dissolve the authority regardless of whether the
  authority has debt.
         (b)  If the authority has debt when it is dissolved, the
  authority shall remain in existence solely for the purpose of
  discharging its debts.  The dissolution is effective when all debts
  have been discharged.
         SECTION 2.  Section 22.182, Parks and Wildlife Code, is
  repealed.
         SECTION 3.  (a)  Not later than September 1, 2007:
               (1)  the city council of the City of Palestine shall
  appoint three voting directors from three persons proposed by the
  mayor of Palestine to serve as directors under Subchapter B,
  Chapter 4501, Special District Local Laws Code, as added by this
  Act; and
               (2)  the city council of the City of Rusk shall appoint
  three voting directors from three persons proposed by the mayor of
  Rusk to serve as directors under Subchapter B, Chapter 4501,
  Special District Local Laws Code, as added by this Act.
         (b)  After the directors have been appointed under this
  section, the directors representing each city shall draw lots to
  determine which director from each city serves a term expiring:
               (1)  September 1, 2008;
               (2)  September 1, 2009; and
               (3)  September 1, 2010.
         (c)  Not later than September 30, 2007, the directors
  appointed under Subsection (a) of this section shall meet in open
  session and appoint a seventh director.  The seventh director shall
  serve a term expiring October 1, 2010.
         SECTION 4.  (a)  Not earlier than September 1, 2007, and on
  execution of the requirements of Section 5 of this Act, the
  following are transferred to the Texas State Railroad Authority:
               (1)  the property described by Section 5 of this Act;
               (2)  all obligations and liabilities of the Parks and
  Wildlife Department relating to the Texas State Railroad; and
               (3)  all files and other records of the Parks and
  Wildlife Department kept by the department regarding the Texas
  State Railroad.
         (b)  Before September 1, 2007, the Parks and Wildlife
  Department may agree with the Texas State Railroad Authority to
  transfer any property of the Parks and Wildlife Department to the
  Texas State Railroad Authority to implement the transfer required
  by this Act.
         (c)  In the period beginning on the effective date of this
  Act and ending on execution of the requirements of Section 5 of this
  Act, the Parks and Wildlife Department shall continue to perform
  functions and activities under Section 22.182, Parks and Wildlife
  Code, as if that section had not been repealed by this Act, and the
  former law is continued in effect for that purpose.
         SECTION 5.  (a)  Not later than October 1, 2007, the Parks
  and Wildlife Department shall transfer to the Texas State Railroad
  Authority, for the consideration described by Subsection (b) of
  this section, the property described by Subsection (d) of this
  section.
         (b)  Consideration for the transfer authorized by Subsection
  (a) of this section is an agreement between the parties that
  requires the Texas State Railroad Authority to use the property in a
  manner that primarily promotes a state public purpose. If the Texas
  State Railroad Authority does not use the property transferred
  under this Act in a manner that primarily promotes a state public
  interest, ownership of the property automatically reverts to the
  Parks and Wildlife Department.
         (c)  The Parks and Wildlife Department shall transfer the
  property by an appropriate instrument of transfer. The instrument
  of transfer must include a provision that:
               (1)  requires the Texas State Railroad Authority to use
  the property in a manner that primarily promotes a state public
  purpose;
               (2)  indicates that ownership of the property
  automatically reverts to the Parks and Wildlife Department if the
  Texas State Railroad Authority fails to use the property in that
  manner;
               (3)  authorizes the Texas State Railroad Authority to
  transfer the property to a private operator under conditions as
  provided by Section 4501.105, Special District Local Laws Code, as
  added by this Act;
               (4)  authorizes the Texas State Railroad Authority,
  with the consent of the Parks and Wildlife Department, to dispose of
  surplus property as provided by Section 4501.106, Special District
  Local Laws Code, as added by this Act; and
               (5)  transfers the right-of-way and trackage of the
  Texas State Railroad by a 99-year lease or a similar instrument
  under which fee ownership is retained by the State of Texas.
         (d)  The property to which Subsection (a) of this section
  refers is all real and personal property associated with the Texas
  State Railroad owned by the State of Texas, including:
               (1)  the right-of-way and trackage of the Texas State
  Railroad;
               (2)  all trains and other property used to operate the
  Texas State Railroad; and
               (3)  all equipment or other property of the Parks and
  Wildlife Department used for the administration of or related to
  the Texas State Railroad.
         SECTION 6.  The legislature finds that:
               (1)  proper and legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished by
  the constitution and laws of this state, including the governor,
  who has submitted the notice and Act to the Texas Commission on
  Environmental Quality;
               (2)  the Texas Commission on Environmental Quality has
  filed its recommendations relating to this Act with the governor,
  lieutenant governor, and speaker of the house of representatives
  within the required time;
               (3)  the general law relating to consent by political
  subdivisions to the creation of districts with conservation,
  reclamation, and road powers and the inclusion of land in those
  districts has been complied with; and
               (4)  all requirements of the constitution and laws of
  this state and the rules and procedures of the legislature with
  respect to the notice, introduction, and passage of this Act have
  been fulfilled and accomplished.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1659 passed the Senate on
  April 26, 2007, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 15, 2007, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1659 passed the House, with
  amendment, on May 10, 2007, by the following vote: Yeas 135,
  Nays 3, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor