73R10561 DRH-D
          By Ellis, Leedom, et al.                               S.B. No. 242
          Substitute the following for S.B. No. 242:
          By Bosse                                           C.S.S.B. No. 242
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the transfer of Texas Turnpike Authority projects to a
    1-3  county or local government corporation and to the administration of
    1-4  those projects.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Chapter 410, Acts of the 53rd Legislature,
    1-7  Regular Session, 1953 (Article 6674v, Vernon's Texas Civil
    1-8  Statutes), is amended by adding Sections 12c and 12d to read as
    1-9  follows:
   1-10        Sec. 12c.  TRANSFER OF TURNPIKE PROJECT.  (a)  This section
   1-11  applies to a county, or a local government corporation serving a
   1-12  county, with a population of more than 1.5 million, according to
   1-13  the most recent federal decennial census, as to which the
   1-14  Authority, the Texas Transportation Commission, and the governor
   1-15  approve the transfer of a Turnpike Project as being in the best
   1-16  interests of the state and the county.
   1-17        (b)  The Authority may lease, sell, or otherwise convey a
   1-18  Turnpike Project to a county or a local government corporation
   1-19  created under the Texas Transportation Corporation Act (Article
   1-20  1528l, Vernon's Texas Civil Statutes).  A county or a local
   1-21  government corporation may lease, buy, or otherwise receive a
   1-22  Turnpike Project.
   1-23        (c)  An agreement to lease, sell, or convey a Turnpike
   1-24  Project under Subsection (b) of this section must provide for the
    2-1  discharge and final payment or redemption of all of the Authority's
    2-2  outstanding bonded indebtedness issued for the Turnpike Project
    2-3  being leased, sold, or conveyed.
    2-4        (d)  A Turnpike Project that is leased, sold, or conveyed
    2-5  under Subsection (b) of this section is not eligible to become a
    2-6  part of the state highway system until all obligations, including
    2-7  refunding obligations, that are payable from or secured by revenues
    2-8  of the Turnpike Project or the system of pooled projects of which
    2-9  the Turnpike Project is a part, are discharged and finally paid or
   2-10  redeemed.
   2-11        (e)  An agreement for the lease, sale, or conveyance of a
   2-12  Turnpike Project under this section shall be submitted to the
   2-13  attorney general for approval as a part of the records of
   2-14  proceedings relating to the issuance of bonds of the county or
   2-15  local government corporation.  If the attorney general determines
   2-16  that the agreement is in accordance with law, the attorney general
   2-17  shall approve the agreement and deliver to the Texas Transportation
   2-18  Commission a copy of the legal opinion of the attorney general
   2-19  stating that approval.
   2-20        Sec. 12d.  SUCCESSOR AGENCY TO AUTHORITY.  The following are
   2-21  considered successor agencies to the Texas Turnpike Authority for
   2-22  purposes of Article III, Section 52-b, of the Texas Constitution:
   2-23              (1)  a county or local government corporation that
   2-24  leases, buys, or receives a Turnpike Project under Section 12c of
   2-25  this Act; and
   2-26              (2)  a county, or a local government corporation
   2-27  serving a county, with a population of more than 1.5 million,
    3-1  according to the most recent federal decennial census, that
    3-2  constructs a toll road, toll bridge, or Turnpike Project.
    3-3        SECTION 2.  Section 20b, Chapter 410, Acts of the 53rd
    3-4  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
    3-5  Civil Statutes), is amended to read as follows:
    3-6        Sec. 20b.  Use of surplus revenues.  (a)  Except as provided
    3-7  by Subsection (b) of this section, the <The> Board may use or
    3-8  pledge the surplus revenues of a turnpike project for the payment
    3-9  of costs, including the principal of or interest on bonds, of
   3-10  another turnpike project other than a project financed under
   3-11  Section 20a of this Act under terms, conditions, or pledges made by
   3-12  resolution of the Board.  However, the Board may not take an action
   3-13  under this section that violates, impairs, or is inconsistent with
   3-14  the provisions of a bond resolution, trust agreement, or indenture
   3-15  governing the use of the surplus revenues.
   3-16        (b)  Except as provided by Subsection (c) of this section,
   3-17  the surplus revenues generated by a Turnpike Project that is under
   3-18  construction or operated by the Authority on January 1, 1993, may
   3-19  not be used for a purpose other than:
   3-20              (1)  the costs associated with the construction,
   3-21  expansion, or maintenance of the project generating the revenues;
   3-22  or
   3-23              (2)  transfers to the Texas Turnpike Authority
   3-24  Feasibility Study fund.
   3-25        (c)  The Board may use revenues from a project described by
   3-26  Subsection (b) of this section for a purpose authorized by this Act
   3-27  other than the purposes described by that subsection if:
    4-1              (1)  the Authority obtains permission of the
    4-2  commissioners court of each county in which the project is located;
    4-3  or
    4-4              (2)  an agreement between the Authority and a county or
    4-5  local government corporation created by the county for the lease,
    4-6  sale, or other conveyance of the Turnpike Project permits the
    4-7  revenue to be used for other purposes.
    4-8        SECTION 3.  Sections 7 and 7(a), Chapter 304, Acts of the
    4-9  50th Legislature, Regular Session, 1947 (Article 6795b-1, Vernon's
   4-10  Texas Civil Statutes), are amended to read as follows:
   4-11        Sec. 7.  Except as provided by Article 6674v-6, Revised
   4-12  Statutes, the powers herein granted may be carried out by such
   4-13  counties or local government corporations created in such counties
   4-14  under the Texas Transportation Corporation Act (Article 1528l,
   4-15  Vernon's Texas Civil Statutes), and the projects may be acquired,
   4-16  constructed, improved, maintained, <and> operated, and pooled and
   4-17  tolls and charges fixed and maintained without the consent,
   4-18  approval, supervision or regulation of any commission, department,
   4-19  bureau, agency, or officer of the State of Texas, provided,
   4-20  however, that nothing in Article 6672, Revised Statutes, or this
   4-21  Section shall be construed to prevent the Texas <State Highway and
   4-22  Public> Transportation Commission from operating and maintaining
   4-23  the project or contributing to the cost of <such> acquisition,
   4-24  construction, improvement, pooling, operation, and maintenance
   4-25  under such provisions as may be agreed to by the county or local
   4-26  government corporation and the Texas Department of Transportation
   4-27  which are not inconsistent with the rights of bondholders or the
    5-1  rights of any agency, person, firm or corporation then operating
    5-2  the project under lease or contract with the county or local
    5-3  government corporation.  The Texas <State Highway and Public>
    5-4  Transportation Commission shall have authority without further
    5-5  legislative enactment to make such provision for and contributions
    5-6  toward acquisition, construction, improvement, pooling, operation,
    5-7  and maintenance of the project as it may see fit, and to lease the
    5-8  project under such terms not inconsistent with the provisions of
    5-9  the bond resolution or trust indenture as may be agreed upon with
   5-10  the county or local government corporation, and to declare the
   5-11  project or any part thereof to be a part of the State Highway
   5-12  System and to operate the project or such part thereof as a part of
   5-13  the State Highway System, provided, however, that such declaration
   5-14  may be made and such operation undertaken only to the extent that
   5-15  property and contract rights in the project and in the bonds are
   5-16  not unfavorably affected thereby.  When all of the bonds and
   5-17  interest thereon that are payable from or secured by revenues of
   5-18  the project shall have been paid, or a sufficient amount for the
   5-19  payment of all bonds and the interest thereon to maturity shall
   5-20  have been set aside in a trust fund for the benefit of the
   5-21  bondholders and shall continue to be held for that purpose, the
   5-22  project shall become a part of the State Highway System and shall
   5-23  be maintained by the Texas <State Highway and Public>
   5-24  Transportation Commission, free of tolls.
   5-25        Sec. 7(a).  The county is hereby authorized to accept from
   5-26  the United States Government or any of its departments or agencies
   5-27  or from the State of Texas or any of its departments or agencies,
    6-1  any contributions or assistance available from such source or
    6-2  sources in connection with the acquisition, construction,
    6-3  improvement, maintenance, pooling, and operation of such project
    6-4  and to enter into agreements with one or any of them in reference
    6-5  to the acquisition, construction, improvement, maintenance,
    6-6  pooling, and operation of the project.
    6-7        SECTION 4.  Section 4A, Texas Transportation Corporation Act
    6-8  (Article 1528l, Vernon's Texas Civil Statutes), is amended by
    6-9  adding Subsections (g), (h), and (i) to read as follows:
   6-10        (g)  The governing body of a local government may assume for
   6-11  the local government the powers and duties of a local government
   6-12  corporation that has been created by the local government.  A local
   6-13  government that assumes the powers and duties of a local government
   6-14  corporation also assumes all of the assets and liabilities of the
   6-15  corporation.  The powers, duties, assets, and liabilities of a
   6-16  local government corporation created by more than one local
   6-17  government may be assumed by a local government only if each
   6-18  creating local government so agrees.
   6-19        (h)  A local government corporation is a governmental unit
   6-20  within the meaning of Section 101.001(2), Civil Practice and
   6-21  Remedies Code, and the operations of a local government corporation
   6-22  are governmental and not proprietary functions.
   6-23        (i)  The local government that creates a local government
   6-24  corporation may establish and enforce traffic and other public
   6-25  safety rules on a toll road, toll bridge, or turnpike of the
   6-26  corporation.  If more than one local government creates a local
   6-27  government corporation, the local governments may jointly establish
    7-1  and enforce traffic and other public safety rules.
    7-2        SECTION 5.  Subsections (a) and (b), Article 6674v-6, Revised
    7-3  Statutes, are amended to read as follows:
    7-4        (a)  A governmental or private entity, other than a county
    7-5  with a population of more than 1.5 <2.4> million, according to the
    7-6  most recent federal census, and other than a local government
    7-7  corporation created by a county with a population of more than 1.5
    7-8  million, according to the most recent federal census, under the
    7-9  Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
   7-10  Civil Statutes), may not begin construction of a toll road, toll
   7-11  bridge, or turnpike without the approval of the Texas <State
   7-12  Highway and Public> Transportation Commission if the toll road,
   7-13  toll bridge, or turnpike is to become a part of the state highway
   7-14  system.  When deciding whether to approve a proposed toll road,
   7-15  toll bridge, or turnpike project, the commission shall consider:
   7-16              (1)  the feasibility of effectively integrating the
   7-17  toll road, toll bridge, or turnpike into the state highway system;
   7-18  and
   7-19              (2)  the ability of the Texas <State> Department of
   7-20  <Highways and Public> Transportation to construct any connecting
   7-21  roads necessary for the toll road, toll bridge, or turnpike to
   7-22  generate sufficient revenue to pay the debt incurred for its
   7-23  construction.
   7-24        (b)  Any bonds of a county, municipality, or political
   7-25  subdivision (other than a county with a population greater than 1.5
   7-26  million, <2,100,000> according to the most recent <preceding>
   7-27  federal census, or a local government corporation created under the
    8-1  Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
    8-2  Civil Statutes), in such a county) or any nonprofit corporation
    8-3  acting on behalf of a county, municipality, or political
    8-4  subdivision, payable in whole or in part from revenues derived from
    8-5  the ownership or operation of a toll road, toll bridge, or turnpike
    8-6  must be reviewed by the Texas <State Highway and Public>
    8-7  Transportation Commission.
    8-8        SECTION 6.  (a)  This section applies to:
    8-9              (1)  a local government corporation created under the
   8-10  Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
   8-11  Civil Statutes) serving a county with a population of more than 2.4
   8-12  million, according to the most recent federal decennial census; and
   8-13              (2)  a county with a population of more than 2.4
   8-14  million, according to the most recent federal decennial census,
   8-15  operating under Chapter 304, Acts of the 50th Legislature, Regular
   8-16  Session, 1947 (Article 6795b-1, Vernon's Texas Civil Statutes).
   8-17        (b)  A local government corporation or county shall set goals
   8-18  for the awarding of contracts to disadvantaged businesses for each
   8-19  project it operates, maintains, or constructs that are consistent
   8-20  with federal requirements on federal money used in highway
   8-21  construction and maintenance and the goals adopted by the Texas
   8-22  Department of Transportation under Article 6669c, Revised Statutes.
   8-23  The goals must apply to any contract awarded that is associated
   8-24  with a project, including contracts for construction, the issuance
   8-25  of bonds, and the use of professional services.
   8-26        (c)  For purposes of this section, "disadvantaged business"
   8-27  has the meaning assigned by Section 351.1035(a), Local Government
    9-1  Code.
    9-2        SECTION 7.  The importance of this legislation and the
    9-3  crowded condition of the calendars in both houses create an
    9-4  emergency and an imperative public necessity that the
    9-5  constitutional rule requiring bills to be read on three several
    9-6  days in each house be suspended, and this rule is hereby suspended,
    9-7  and that this Act take effect and be in force from and after its
    9-8  passage, and it is so enacted.