2005 Texas Local Government Code CHAPTER 431. MUNICIPAL AUTHORITY RELATING TO PARKING

LOCAL GOVERNMENT CODE

TITLE 14. PARKING AND TRANSPORTATION

SUBTITLE A. MUNICIPAL PARKING PROVISIONS

CHAPTER 431. MUNICIPAL AUTHORITY RELATING TO PARKING

SUBCHAPTER A. GENERAL PROVISIONS


	§ 431.001. PARKING ON PRIVATE PROPERTY.  A municipality 
by ordinance may regulate the parking of motor vehicles on private 
property and may enforce the ordinance in the same manner that it 
enforces ordinances regulating parking in public no-parking zones, 
including the impoundment of offending vehicles.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    

SUBCHAPTER B. MUNICIPAL PARKING AUTHORITIES


	§ 431.021. DEFINITIONS.  In this chapter:                                   
		(1)  "Authority" means a parking authority created 
under this subchapter.   
		(2)  "Board" means the governing body of an authority.                        
		(3)  "Bond" means a note, bond, or other evidence of 
indebtedness or obligation issued by an authority.
		(4)  "Construction" includes acquisition.                                     
		(5)  "Deed of trust" means a deed of trust, indenture, 
or other similar agreement.
		(6)  "Federal agency" means the United States, the 
president of the United States, or a department, corporate agency, 
or instrumentality of the United States.
		(7)  "Improvement" includes extension and enlargement.                        
		(8)  "Parking facility" means a public lot, garage, 
parking terminal, or other structure or accommodation for the 
parking of motor vehicles off the street or highway, and includes 
equipment, entrances, exits, fencing, and other accessories 
necessary for safety and convenience in the parking of vehicles.
		(9)  "Project" means a structure, facility, or 
undertaking of an authority. 

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.022. CREATION OF AUTHORITY.  (a) The governing body 
of a municipality by ordinance may create an authority, which shall 
be called "City of (name of municipality) Parking Authority."
	(b)  A notice, including the text of the ordinance creating 
the authority, a synopsis of the articles of incorporation of the 
authority, and a reference to this subchapter, must be published 
once weekly for four consecutive weeks in a newspaper of general 
circulation in the municipality.  The municipality shall file the 
ordinance with the secretary of state within 10 days after the date 
of the passage of the ordinance.
	(c)  The ordinance takes effect 60 days after the date of its 
last publication unless a protest petition has been filed with the 
clerk of the municipality.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.023. PROTEST PETITION.  (a) A protest petition must 
object to the adoption of the ordinance creating an authority and 
request that the ordinance be submitted to the voters of the 
municipality.  It must be signed by a number of registered voters of 
the municipality equal to at least 10 percent of the number of votes 
cast at the most recent general municipal election.
	(b)  If a petition is filed, the municipality must determine 
whether the petition is valid within 10 days after the date of 
filing.
	(c)  The governing body of the municipality shall call an 
election to submit the ordinance to a vote on the next uniform 
election date authorized by Chapter 41, Election Code, that occurs 
more than 30 days after the date the municipality verifies the 
petition is valid.
	(d)  If a majority of the votes cast at the election are in 
favor of the ordinance, it takes effect on the certification of the 
results.  If a majority of the votes cast are against the ordinance, 
it does not take effect.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.024. COMPOSITION OF BOARD.  (a) The powers of an 
authority are exercised by a board composed of five members who must 
be residents of the municipality.
	(b)  The presiding officer of the governing body of the 
municipality shall appoint the members of the board for two-year 
staggered terms.
	(c)  The terms of two members shall expire on July 1 of each 
even-numbered year and the terms of three members shall expire on 
July 1 of each odd-numbered year.
	(d)  The board members shall select from among themselves a 
chairman, a vice-chairman, and other officers as they determine.
	(e)  A vacancy that occurs more than 60 days before the 
expiration date of a term shall be promptly filled for the unexpired 
term by appointment by the presiding officer of the governing body 
of the municipality.
	(f)  A board member may be removed for cause following a 
hearing.  Removal is by order of the presiding officer of the 
governing body of the municipality, with the concurrence of 
two-thirds of the members of the governing body of the 
municipality.
	(g)  An appointment must be confirmed by the governing body 
of the municipality.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.025. COMPENSATION AND LIABILITY.  (a) A board 
member may not receive compensation for services as a member but is 
entitled to payment for the necessary expenses incurred in the 
discharge of duties as a member.
	(b)  A board member is not liable personally on the bonds of 
an authority, and the rights of creditors are solely against the 
authority.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.026. POWERS OF BOARD.  (a) The board manages the 
property and business of the authority.
	(b)  The board may adopt bylaws and rules governing the 
manner in which the business of the authority is conducted.
	(c)  The board may employ a secretary, an executive director, 
legal staff, technical experts, and other agents and employees that 
it requires.  It may determine the qualifications and fix the 
compensation of those persons.
	(d)  The board may delegate to an agent or employee powers as 
it considers necessary to carry out the purposes of this 
subchapter, and the agent or employee is subject to the supervision 
and control of the board.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.027. POWERS OF AN AUTHORITY.  (a) An authority may:                   
		(1)  construct, improve, maintain, repair, or operate a 
project;            
		(2)  conduct research necessary for efficient 
operation of a parking facility;
		(3)  establish a permanent coordinated system of 
parking facilities;        
		(4)  plan, design, locate, hold, construct, improve, 
maintain, operate, own, or lease land and facilities for the 
parking of vehicles;
		(5)  sue and be sued, implead and be impleaded, and 
complain and defend in court;
		(6)  adopt, use, and alter a corporate seal;                                  
		(7)  acquire, purchase, hold, lease as lessee, or use a 
franchise, property, or an interest in property, as necessary or 
desirable for carrying out the purpose of this subchapter;
		(8)  sell, lease as lessor, exchange, transfer, or 
dispose of property or an interest in property;
		(9)  contract and execute instruments necessary or 
convenient to carry on its business;
		(10)  borrow money, accept a grant, and enter into a 
contract, lease, or other transaction with a federal agency, the 
state, a municipality, a corporation, or another authority;
		(11)  exercise the power of eminent domain;                                   
		(12)  pledge, hypothecate, or otherwise encumber the 
revenue or receipts of the authority as security for the 
obligations of the authority;
		(13)  enter into a contract of group insurance for the 
benefit of its employees and set up a retirement or pension fund for 
the employees;
		(14)  on consent of the municipality, use an appointed 
officer, agent, employee, and facility of the municipality and pay 
the municipality for the use;
		(15)  dedicate its real property to the public purposes 
for a street or highway;
		(16)  invest that part of the proceeds received from 
the sale of bonds or other funds that the authority considers 
available in direct obligations of the United States;  and
		(17)  act as necessary to accomplish its purpose, the 
promotion of its business, and its general welfare.
	(b)  An authority may not pledge the credit or taxing power 
of the state or a political subdivision of the state.  The 
obligations of an authority are not the obligations of the state or 
a political subdivision of the state.  The state or a political 
subdivision of the state is not liable for the payment of the 
principal of or interest on the obligations.
	(c)  An authority may not sell goods or provide services 
other than those necessary for the parking of vehicles in a facility 
of the authority.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.028. CHARGES FOR USE OF FACILITY.  (a) An authority 
may collect charges for the use of its facility at reasonable rates 
determined by the authority for the purpose of paying the expenses 
and obligations of the authority.
	(b)  A person questioning the reasonableness of a rate or 
charge of the authority may bring suit against the authority in a 
district court in the county in which the project is located.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.029. FINANCING;  BONDS.  (a) In addition to bonds 
provided for by this subchapter, an authority, subject to the 
specific authorization and approval of the municipality creating 
it, may finance the creation and establishment of parking 
facilities by one or more of the following methods:
		(1)  parking fees or special charges derived from the 
use of parking facilities;
		(2)  general fund appropriation;                                              
		(3)  parking meter revenue;  and                                              
		(4)  a gift, bequest, devise, or grant-in-aid.                                
	(b)  A municipality establishing an authority under this 
subchapter, on a two-thirds vote of its governing body, may pay to 
the authority money necessary to:
		(1)  acquire all or part of the land on which the 
authority intends to erect a parking facility;
		(2)  construct all or part of a parking facility;                             
		(3)  pay operating expenses of the authority and debt 
service on outstanding bonds of the authority;  or
		(4)  make payments into a reserve fund for the payment 
of the principal of and interest on indebtedness of the authority, 
as may be provided by a resolution of the authority authorizing the 
issuance of revenue bonds or a trust indenture securing revenue 
bonds.
	(c)  A municipality, to provide funds for use under 
Subsection (b) of this section, may issue general obligation bonds, 
secured by the faith and credit of the municipality, payable from 
unlimited ad valorem taxes on all of the real estate in the 
municipality subject to taxation, and may levy those taxes in an 
unlimited rate or amount.
	(d)  A municipality may guarantee revenue bonds of the 
authority issued under this subchapter by pledging its full faith 
and credit to the payment of the principal of and interest on the 
revenue bonds.  The aggregate amount of general obligation bonds 
issued by a municipality under this subsection, the indebtedness 
guaranteed, and the taxes levied are in addition to, and not subject 
to the limitations of, the statutory debt or tax limitation of the 
municipality.  The municipality may fund the guarantee by levying 
an ad valorem tax on real estate subject to taxation, not to exceed 
a rate of one-hundredth of one percent, or may use other money of 
the municipality available for this purpose.
	(e)  An agreement by a municipality to guarantee the revenue 
bonds of the authority, to maintain a reserve fund, or to pay debt 
service or operating expenses of the authority may be included in a 
contract with holders of revenue bonds of the authority and may be 
pledged by the authority to the payment of the revenue bonds.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.030. REVENUE BONDS.  (a) An authority by resolution 
may issue revenue bonds to finance a parking facility, the 
acquisition, construction, reconstruction, and repair of property 
related to the facility, and the necessary expenses of financing 
the facility and its operations.
	(b)  The total principal amount of the revenue bonds 
outstanding at one time may not exceed $20 million.
	(c)  As provided by the board before the issuance of revenue 
bonds, the bonds:
		(1)  must be dated, must bear interest at a rate, and 
must mature at a time not to exceed 25 years from the date of their 
issuance and not to extend beyond the existence of the authority;  
and
		(2)  may be made redeemable before maturity at a 
particular price and under particular terms.
	(d)  The board shall determine the form of the revenue bonds, 
including interest coupons, if any, and the manner of execution of 
the bonds.  The board shall fix the denomination of the bonds and 
the place of payment of principal and interest, which may be at a 
bank or trust company in the state.
	(e)  The revenue bonds are negotiable instruments under 
state law and may be sold in the manner and for the price determined 
to be in the best interests of the municipality.
	(f)  The revenue bonds are not a pledge of the faith and 
credit of a municipality or the state but are payable only from 
revenues under this subchapter.  The face of the bonds must state 
this.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.031. RESOLUTION AUTHORIZING ISSUANCE OF REVENUE 
BONDS.  (a) A resolution authorizing issuance of revenue bonds must 
pledge the revenues to be received from the parking facility for 
which the bonds are issued.  The resolution may pledge parking meter 
revenues for this purpose and may provide for mortgaging the 
parking facility as additional security.  The resolution may 
contain other provisions for protecting and enforcing the rights 
and remedies of a bondholder as permitted by this subchapter and may 
contain a limitation on the issuance of additional revenue bonds as 
the board considers proper.
	(b)  An expense incurred in carrying out the provisions of 
the resolution may be treated as a part of the cost of operation of 
the facility.
	(c)  The resolution may contain provisions, which if in the 
resolution must be included as part of the contract with a 
bondholder, relating to:
		(1)  the construction, improvement, operation, 
maintenance, and repair of a project and to the authority's duties 
regarding those actions;
		(2)  limitations on the purpose for which the proceeds 
of the revenue bonds or of a loan or grant from a federal agency may 
be used;
		(3)  the rate of a toll and other charge for use of a 
facility of the authority or a service provided by the authority;
		(4)  the setting aside, regulation, and disposition of 
a reserve or sinking fund;  and
		(5)  any other agreement with the bondholder.                                 

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.032. DEED OF TRUST.  An authority may enter into a 
deed of trust as security for revenue bonds and may assign and 
pledge all or part of the revenues or receipts of the authority 
under the agreement.  The deed of trust may contain provisions 
relating to:
		(1)  the construction, improvement, operation, 
maintenance, and repair of a project and to the authority's duties 
regarding those actions;
		(2)  the application and safeguarding of funds under 
the control of the authority;
		(3)  the rights and remedies of the trustee and 
bondholders, including a restriction on a right of action of 
bondholders;  and
		(4)  terms of the revenue bonds or the resolution 
authorizing their issuance.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.033. PLEDGED CONTRACT.  (a) A contract between the 
municipality and an authority may be pledged by the authority to 
secure its bonds.  A pledged contract may not be modified except as 
provided by the terms of the pledge.  The governing body of the 
municipality may authorize the contract without further 
authorization.
	(b)  A payment required by the municipality under the 
contract may be made even if the payment is not provided for in the 
budget of the municipality, but the payment shall be included in 
subsequent budgets of the municipality.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.034. RIGHTS AND REMEDIES OF BONDHOLDER.  (a) The 
rights and remedies of a bondholder under this section are in 
addition to any rights and remedies lawfully granted to the 
bondholder by a resolution providing for the issuance of bonds or by 
a deed of trust under which bonds are issued.
	(b)  If an authority fails to pay the principal of or 
interest on a bond on or before the 60th day after the date payment 
is due, violates this chapter, or breaches another agreement with a 
bondholder, the holders of 25 percent of the aggregate principal 
amount of the bonds outstanding may appoint a trustee to represent 
the bondholders.  To appoint a trustee, the bondholders must file in 
the office of the recorder of deeds of the county in which the 
authority is located an instrument that is proved or acknowledged 
in the same manner as required by law for a deed to be recorded.
	(c)  The trustee appointed under this section or a trustee 
under a deed of trust under this subchapter may, and on written 
request of the holders of 25 percent of the aggregate principal 
amount of the bonds outstanding, unless provided otherwise by the 
deed of trust, shall, in the trustee's own name:
		(1)  bring an action to enforce the rights of the 
bondholders;              
		(2)  bring suit on the bonds;                                                 
		(3)  require the authority to account as if it were the 
trustee of an express trust for the bondholders;  or
		(4)  sue to enjoin violations of law or the rights of 
the bondholders.      
	(d)  By notice in writing to the authority the trustee may 
declare bonds due and payable.  If the authority cures all defaults, 
the trustee, with the consent of the holders of 25 percent of the 
aggregate principal amount of the bonds then outstanding, unless 
provided otherwise by the deed of trust, may rescind the 
declaration.
	(e)  A district court in the county in which the authority is 
located has jurisdiction of an action by the trustee.  A trustee 
appointed or acting under a deed of trust is entitled to the 
appointment of a receiver, who may enter and take possession of all 
or part of the facilities of the authority and the revenues or 
receipts that may be applicable to the payment of the bonds in 
default, and who may operate and maintain the facilities and 
collect and receive rent and other revenues of the facilities.  The 
receiver shall deposit the money in a separate account and apply it 
in the manner the court directs.  In an action by the trustee, any 
fees, attorney's fees, and expenses of the trustee and the receiver 
and the costs and disbursements allowed by the court are a first 
charge on the revenues and receipts from the facilities of the 
authority that are applicable to the payment of the bonds in 
default.  The trustee may exercise the powers necessary or 
appropriate for carrying out the trustee's functions under this 
section or incident to the general representation of the 
bondholders in the enforcement and protection of their rights.
	(f)  This subchapter does not authorize a bondholder or a 
receiver or trustee appointed under this subchapter to sell, 
assign, mortgage, or otherwise dispose of the assets of the 
authority.  A receiver may only operate and maintain the facilities 
of the authority as the court directs.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.035. BONDS EXEMPT FROM TAXATION.  Revenue bonds 
issued under this subchapter, transfer of the bonds, income from 
the bonds, and a profit made on the sale of the bonds are free from 
taxation by the state or a subdivision of the state.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.036. ELIGIBILITY FOR INVESTMENT.  (a) A bond is a 
security in which a public officer or body of the state or a 
municipality or municipal subdivision, insurance company, bank, 
trust company, savings and loan association, or investment company 
may invest.
	(b)  A bond is not eligible for the investment of funds of a 
trust, estate, or guardianship under the control of an individual 
fiduciary.
	(c)  A bond may be deposited with a public officer or body of 
the state or a municipality or municipal subdivision for any 
purpose for which a bond of the state may be deposited.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.037. MONEY.  Money of an authority shall be paid to 
the treasurer of the authority who shall deposit it in a separate 
account in a bank or trust company.  The money may be paid out on the 
warrant or other order of the chairman of the authority or of 
another person designated by the authority.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.038. EXAMINATION OF ACCOUNTS.  (a) At least once a 
year, the authority shall have a certified public accountant 
conduct an audit of its books, accounts, and other records.  A copy 
of the audit shall be delivered to the municipality creating the 
authority.
	(b)  If the authority fails to make the required audit, an 
auditor or accountant designated by the municipality may examine, 
at the expense of the authority, the accounts and books of the 
authority, including its receipts, disbursements, contracts, 
leases, sinking funds, investments, and other matters relating to 
its finances, operation, and affairs.
	(c)  The attorney general may examine the books, accounts, 
and other records of an authority.
	(d)  A concise financial statement shall be published 
annually in a newspaper of general circulation in the municipality 
in which the principal office of the authority is located.  If the 
publication is not made by the authority, the municipality shall 
publish the statement at the expense of the authority.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.039. CONVEYANCE OF PROPERTY.  (a) The municipality, 
by resolution or an instrument authorized by a resolution, may 
convey property to an authority for use in a project.
	(b)  The legal title to real property conveyed remains with 
the municipality, but the authority may, until it ceases to exist, 
use the property.
	(c)  Legal title to personal property conveyed passes to the 
authority.      

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.040. ACQUISITION OF REAL PROPERTY.  (a) The 
municipality may acquire real property for a project or for 
building or improving a road leading to a project.
	(b)  The municipality may close a road as is necessary or 
convenient for the purposes of this subchapter.
	(c)  An authority may, at its own expense, acquire real 
property for a project in the name of the municipality by purchase 
or condemnation under the laws relating to the condemnation of land 
by the municipality.  The authority may, until it ceases to exist, 
use the property.
	(d)  If an authority determines that real property is no 
longer required for a project, and the property was acquired at the 
expense of the municipality, the authority may give the use of the 
property to the municipality.  If the property was acquired at the 
expense of the authority, the authority may sell, lease, or 
otherwise dispose of the property and may use the proceeds for the 
purposes of this subchapter.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.041. TAX-EXEMPT STATUS.  Unless otherwise 
specifically provided by statute or in the ordinance or resolution 
creating an authority, property of an authority is exempt from 
taxation.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.042. CONTRACTS.  An authority shall let a contract 
in the manner, to the extent practicable, provided by law for 
contracts of the municipality, except that if the estimated expense 
of a contract does not exceed $5,000, the contract may be entered 
into without public bidding.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.043. NOTICE OF CLAIM.  (a) In an action against an 
authority for damages, injury to property, or personal injury or 
death, a person making a claim shall notify the authority of the 
claim, reasonably describing the damage or injury and stating the 
time, manner, and place of the incident from which the claim arose.  
The notice must be given within six months after the date of the 
incident.
	(b)  Notice need not be given if an authority has actual 
notice of the damage or injury.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 431.044. DURATION.  (a) An authority ceases to exist 25 
years after the date it is created, except that the municipality 
that created the authority may extend its existence for not more 
than 10 years by filing a certified ordinance with the secretary of 
state.
	(b)  An authority continues to exist until its liabilities 
and bonds issued by its board or by the municipality on its behalf 
have been paid.
	(c)  When an authority ceases to exist, its rights and 
property pass to the municipality.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.