(a) An authority may:
(1) acquire, construct, develop, own, operate, and maintain a transit authority system in the territory of the authority, including the territory of a political subdivision;
(2) contract with a municipality, county, or other political subdivision for the authority to provide public transportation services outside the authority; and
(3) lease all or a part of the transit authority system to, or contract for the operation of all or a part of the transit authority system by, an operator.
(b) An authority may not lease the entire transit authority system under Subsection (a)(3) without the written approval of the governing body of the principal municipality of the authority.
(c) An authority created by an alternate municipality and an authority in which the principal municipality has a population of more than 1.9 million may contract for service outside each of their respective territories to provide access between the two authorities.
(d) An authority, as the authority determines advisable, shall determine routes.
Official text of the Texas Transportation Code as published by the Texas Legislative Council.