S.B. No. 1360
                                        AN ACT
    1-1  relating to the operation and management of the Texas Turnpike
    1-2  Authority; providing penalties.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4                               ARTICLE 1
    1-5        SECTION 1.01.  Section 1, Chapter 410, Acts of the 53rd
    1-6  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
    1-7  Civil Statutes), is amended to read as follows:
    1-8        Sec. 1.  Construction, Maintenance and Operation Authorized.
    1-9  To facilitate vehicular traffic throughout the State, to promote
   1-10  the agricultural and industrial development of the State, to assist
   1-11  in effecting traffic safety, to provide for the construction of
   1-12  modern expressways, to provide better connections between highways
   1-13  of the State of Texas and the highway system of adjoining states,
   1-14  including states of the United States and the United Mexican
   1-15  States, including cooperation between states, the Texas Turnpike
   1-16  Authority, hereinafter created, is hereby authorized and empowered
   1-17  to construct, maintain, repair and operate Turnpike Projects (as
   1-18  hereinafter defined), and to issue turnpike bonds of the Texas
   1-19  Turnpike Authority, payable solely from the revenues of such
   1-20  projects.
   1-21        SECTION 1.02.  Section 5, Chapter 410, Acts of the 53rd
   1-22  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   1-23  Civil Statutes), is amended to read as follows:
    2-1        Sec. 5.  General grant of powers and duties imposed.  The
    2-2  Authority is hereby authorized, empowered, and it shall be its
    2-3  duty:
    2-4              (a)  To adopt bylaws for the regulation of its affairs
    2-5  and the conduct of its business;
    2-6              (b)  To adopt an official seal and alter the same at
    2-7  pleasure;
    2-8              (c)  To sue and be sued in its own name, plead and be
    2-9  impleaded; provided, however, that any and all actions at law or in
   2-10  equity against the Authority shall be brought in the county where
   2-11  the cause of action arises, and if land is involved, including
   2-12  condemnation proceedings, suit shall be brought in the county where
   2-13  the land is situated;
   2-14              (d)  To construct, maintain, repair and operate
   2-15  Turnpike Projects as hereinabove defined at such locations within
   2-16  the State as may be determined by the Authority subject to approval
   2-17  as to location by the Texas <State Highway and Public>
   2-18  Transportation Commission; provided that the Authority shall have
   2-19  no power to fix, charge, or collect tolls for transit over any
   2-20  existing free public Highway unless the Texas Transportation
   2-21  Commission determines that it is necessary to transfer a public
   2-22  highway to the Authority to accomplish needed enlargements,
   2-23  improvements, or extensions to the highway; if the commission
   2-24  determines the transfer necessary, the highway may be enlarged,
   2-25  improved, or extended by the Authority as a Turnpike Project;
    3-1              (e)  To issue turnpike revenue bonds of the Authority
    3-2  payable solely from revenues, including tolls pledged to such
    3-3  bonds, except as otherwise authorized by this Act, for the purpose
    3-4  of paying all or any part of the cost of a Turnpike Project;
    3-5  turnpike bonds shall be issued for each separate project;
    3-6              (f)  To fix, revise, and adjust from time to time tolls
    3-7  for transit over each separate Turnpike Project;
    3-8              (g)  To acquire, hold, and dispose of real and personal
    3-9  property in the exercise of its powers and the performance of its
   3-10  duties under this Act;
   3-11              (h)  To acquire in the name of the Authority by
   3-12  purchase or otherwise, on such terms and conditions and in such
   3-13  manner as it may deem proper, or by the exercise of the right of
   3-14  condemnation in the manner hereinafter provided, such public or
   3-15  private lands, including public parks, playgrounds or reservations,
   3-16  or parts thereof or rights therein, right-of-ways, property rights,
   3-17  easements and interests, as it may deem necessary for carrying out
   3-18  the provisions of this Act; provided, however, that except for
   3-19  parks and playgrounds and except for any property which may have
   3-20  been theretofore acquired under restrictions and limitations
   3-21  requiring payment of compensation, no compensation shall be paid
   3-22  for public lands, parkways or reservations so taken; and that all
   3-23  public property damaged in carrying out the powers granted by this
   3-24  Act, shall be restored or repaired and placed in its original
   3-25  condition as nearly as practicable; provided further, that the
    4-1  governing body having charge of any such public property is hereby
    4-2  authorized to give its consent to the use of any such property for
    4-3  a Turnpike Project; provided, further, that all property or
    4-4  interest so acquired shall be described in such a manner so as to
    4-5  locate the boundary line of same with reference to lot and block
    4-6  lines and corners of all existing and recorded subdivision
    4-7  properties and to locate the boundary line of other property with
    4-8  reference to survey lines and corners;
    4-9              (i)  To designate the location, and establish, limit
   4-10  and control such points of ingress to and egress from, each
   4-11  Turnpike Project as may be necessary or desirable in the judgment
   4-12  of the Authority and the Texas <State> Department of <Highways and
   4-13  Public> Transportation to insure the proper operation and
   4-14  maintenance of such Project, and to prohibit entrance to such
   4-15  Project from any point or points not so designated; in all cases
   4-16  where county or other public roads are affected or severed, the
   4-17  Authority is hereby empowered and required to move and replace the
   4-18  same, with equal or better facilities; and all expenses and
   4-19  resulting damages, if any, shall be paid by the Authority;
   4-20              (j)  To make and enter into contracts and operating
   4-21  agreements with similar authorities or agencies of other states,
   4-22  including states in Mexico; to make and enter into all contracts
   4-23  and agreements necessary or incidental to the performance of its
   4-24  duties and the execution of its powers under this Act; and to
   4-25  employ consulting engineers, attorneys, accountants, construction
    5-1  and financial experts, superintendents, managers and such other
    5-2  employees and agents as may be necessary in its judgments, and to
    5-3  fix their compensation; provided, that all such expenses shall be
    5-4  payable solely from the proceeds of turnpike revenue bonds issued
    5-5  under the provisions of this Act or from revenues; and provided
    5-6  further that no compensation for employees of Authority shall
    5-7  exceed the salary schedule of the Texas <State> Department of
    5-8  <Highways and Public> Transportation for comparable positions and
    5-9  services;
   5-10              (k)  To receive and accept grants for or in aid of the
   5-11  construction of any Turnpike Project, and to receive and accept aid
   5-12  or contributions from any source, of either money, property, labor
   5-13  or other things of value, to be held, used and applied only for the
   5-14  purposes for which such grants and contributions may be made;
   5-15              (l)  To make and enforce rules and regulations not
   5-16  inconsistent with the provision of this Act for use of any such
   5-17  Project;
   5-18              (m)  All contracts of the Authority for the
   5-19  construction, improvement, repair, or maintenance of any turnpike
   5-20  project shall, in so far as applicable, be made and awarded under
   5-21  the same conditions, terms, requirements, and provisions as are now
   5-22  provided for with respect to contracts of the Texas <State>
   5-23  Department of <Highways and Public> Transportation in Sections 8
   5-24  and 9 of Chapter 186, pages 457, 458, Acts, Thirty-ninth
   5-25  Legislature, 1925 and Sections 10 and 13 of Chapter 186, page 458,
    6-1  Acts, Thirty-ninth Legislature, 1925, codified as Articles 6674h,
    6-2  6674i, 6674j, and 6674m, Vernon's Civil Statutes, and in the making
    6-3  and awarding of such contracts the Authority shall, in so far as
    6-4  applicable, be under the same duties and responsibilities with
    6-5  respect thereto as are now imposed upon the Texas <State>
    6-6  Department of <Highways and Public> Transportation by the terms and
    6-7  provisions of the Statutes herein enumerated; it is hereby declared
    6-8  to be the intention of the Legislature that the provision of this
    6-9  paragraph shall be mandatory;
   6-10              (n)  To do all acts and things necessary or appropriate
   6-11  to carry out the powers expressly granted in this Act;
   6-12              (o)  To develop and implement policies that provide the
   6-13  public with a reasonable opportunity to appear before the Board to
   6-14  speak on any issue under the jurisdiction of the Authority; and
   6-15              (p)  To prepare and maintain a written plan that
   6-16  describes how a person who does not speak English or who has a
   6-17  physical, mental, or developmental disability may be provided
   6-18  reasonable access to the Authority's programs.
   6-19              (q)  The Texas Department of Transportation may provide
   6-20  for the expenditure of money for the cost of a Turnpike Project.
   6-21  If money from the state highway fund is spent under this
   6-22  subsection, the fund shall be repaid from tolls or other turnpike
   6-23  revenue.
   6-24              (r)  The Board may hold an open or closed meeting by
   6-25  telephone conference call.  The telephone conference call meeting
    7-1  is subject to the notice requirements applicable to other meetings
    7-2  of the Board.  The notice of the telephone conference call meeting
    7-3  must specify as the location of the meeting the conference room of
    7-4  the authority.  Each part of the telephone conference call meeting
    7-5  that is required to be open to the public shall be audible to the
    7-6  public at the location specified in the notice and shall be
    7-7  tape-recorded or documented by written minutes.  On conclusion of
    7-8  the meeting, the tape recording or the written minutes of the
    7-9  meeting shall be made available to the public.
   7-10        SECTION 1.03.  Subsections (b) and (e),  Section 9, Chapter
   7-11  410, Acts of the 53rd Legislature, Regular Session, 1953 (Article
   7-12  6674v, Vernon's Texas Civil Statutes), are amended to read as
   7-13  follows:
   7-14        (b)  The principal of, <and the> interest on, and any
   7-15  redemption premium on such bonds shall be payable solely from the
   7-16  funds herein or otherwise provided by law for such payment and from
   7-17  the revenues of the particular project for which such bonds were
   7-18  issued.  The bonds of each issue shall be dated, shall bear
   7-19  interest at such rate or rates authorized by law, shall mature at
   7-20  such time or times, not exceeding forty (40) years from their date
   7-21  or dates, as may be determined by the Authority, and may be made
   7-22  redeemable before maturity, at such price or prices and under such
   7-23  terms and conditions as may be fixed by the Authority in the
   7-24  proceeding authorizing the issuance of the bonds.
   7-25        (e)  The proceeds of the bonds of each issue shall be used
    8-1  solely for the payment of the cost of the Turnpike Project for
    8-2  which such bonds shall have been issued, and shall be disbursed in
    8-3  such manner and under such restrictions, if any, as the Authority
    8-4  may provide in the resolution authorizing the issuance of such
    8-5  bonds or in the trust agreement hereinafter mentioned securing the
    8-6  same.  If the proceeds of the bonds of any issue, by error of
    8-7  estimates or otherwise, shall be less than such cost, additional
    8-8  bonds may in like manner be issued to provide the amount of such
    8-9  deficit, and, unless otherwise provided in the resolution
   8-10  authorizing the issuance of such bonds or in the trust agreement
   8-11  securing the same, shall be deemed to be on a parity with <of the
   8-12  same issue> and shall be entitled to payment from the same fund
   8-13  without preference or priority of the bonds first issued.  If the
   8-14  proceeds of the bonds of any issue shall exceed the cost of the
   8-15  Turnpike Project for which the same shall have been issued, the
   8-16  surplus shall be deposited to the credit of the sinking fund for
   8-17  such bonds.
   8-18        SECTION 1.04.  Section 10, Chapter 410, Acts of the 53rd
   8-19  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   8-20  Civil Statutes), is amended to read as follows:
   8-21        Sec. 10.  Turnpike Revenue Refunding Bonds.  The Authority is
   8-22  hereby authorized to provide by resolution for the issuance of
   8-23  turnpike revenue refunding bonds of the Authority for the purpose
   8-24  of refunding any bonds then outstanding, issued on account of a
   8-25  Project, which shall have been issued under the provisions of this
    9-1  Act, including the payment of any redemption premium thereon and
    9-2  any interest accrued or to accrue to the date of redemption of such
    9-3  bonds, and, if deemed advisable by the Authority, for the
    9-4  additional purpose of constructing improvements, extensions or
    9-5  enlargements to the Turnpike Project in connection with which the
    9-6  bonds to be refunded shall have been issued.  The issuance of such
    9-7  bonds, the maturities and other details thereof, the rights of the
    9-8  holders thereof, and the rights, duties and obligations of the
    9-9  Authority in respect of the same, shall be governed by the
   9-10  provisions of this Act in so far as the same may be applicable.
   9-11  Within the discretion of the Authority the refunding bonds may be
   9-12  issued in exchange for outstanding bonds or may be sold and the
   9-13  proceeds used for the purpose of paying or providing for the
   9-14  payment of the <redeeming> outstanding bonds.
   9-15        SECTION 1.05.  Subsection (c), Section 11, Chapter 410, Acts
   9-16  of the 53rd Legislature, Regular Session, 1953 (Article 6674v,
   9-17  Vernon's Texas Civil Statutes), is amended to read as follows:
   9-18        (c)  No trust agreement shall evidence a pledge of the
   9-19  revenues of any Project to any other purpose than (i) for the
   9-20  payment of the cost of maintaining, repairing and operating the
   9-21  Turnpike Project; (ii) for the payment of the principal of, <and>
   9-22  interest on, and any redemption premium on such bonds as the same
   9-23  shall become due and payable; (iii) to create and maintain reserves
   9-24  for such purposes, as prescribed in Section 12 hereof and (iv) as
   9-25  otherwise provided by law.  However, surplus revenues may be used
   10-1  for another Turnpike Project as authorized by Section 20b of this
   10-2  Act.
   10-3        SECTION 1.06.  Subsection (a), Section 12, Chapter 410, Acts
   10-4  of the 53rd Legislature, Regular Session, 1953 (Article 6674v,
   10-5  Vernon's Texas Civil Statutes), is amended to read as follows:
   10-6        (a)  The Authority is hereby authorized to fix, revise,
   10-7  charge and collect tolls for the use of each Turnpike Project and
   10-8  the different parts or sections thereof, and to contract with any
   10-9  person, partnership, association or corporation desiring the use of
  10-10  any part thereof, or may lease or sell any part thereof, including
  10-11  the right-of-way adjoining the paved portion, for placing thereon
  10-12  gas stations, garages, stores, hotels, restaurants, or for any
  10-13  other purpose including for tracks for railroad or railway use or
  10-14  for use by telephone, telecommunication <telegraph>, electric light
  10-15  or power lines and to fix the terms, conditions, rents and rates of
  10-16  charges for such use or the terms and conditions of such lease or
  10-17  sale.
  10-18        SECTION 1.07.  Subsection (d), Section 12e, Chapter 410, Acts
  10-19  of the 53rd Legislature, Regular Session, 1953 (Article 6674v,
  10-20  Vernon's Texas Civil Statutes), is amended to read as follows:
  10-21        (d)  The Authority may use the revolving fund to:
  10-22              (1)  finance the construction, maintenance, or
  10-23  operation of Turnpike Projects authorized by this Act;
  10-24              (2)  provide matching amounts necessary for federal
  10-25  grants or other types of participatory funding;
   11-1              (3)  provide credit enhancement for bonds issued to
   11-2  construct, expand, or improve Turnpike Projects;
   11-3              (4)  provide security for, or payment of, future or
   11-4  existing debt for construction, operation, or maintenance of
   11-5  Turnpike Projects;
   11-6              (5)  borrow money and issue promissory notes or other
   11-7  indebtedness payable out of the revolving fund for any purpose
   11-8  authorized by this Act; and
   11-9              (6)  provide for any other reasonable purpose that
  11-10  assists in the financings <financing> of the Authority as
  11-11  authorized by this Act.
  11-12        SECTION 1.08.  The heading to Section 20a, Chapter 410, Acts
  11-13  of the 53rd Legislature, Regular Session, 1953 (Article 6674v,
  11-14  Vernon's Texas Civil Statutes), is amended to read as follows:
  11-15        Sec. 20a.  <PRIVATE> PARTICIPATION IN PROJECTS.
  11-16        SECTION 1.09.  Section 20a, Chapter 410, Acts of the 53rd
  11-17  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
  11-18  Civil Statutes), is amended by amending Subsections (a), (b), and
  11-19  (g) and by adding Subsection (h) to read as follows:
  11-20        (a)  The Authority may enter into agreements with public and
  11-21  private entities, including toll road corporations, to permit them,
  11-22  independently or jointly with the Authority, to construct, to
  11-23  maintain, to repair, and to operate turnpike projects;<,> and the
  11-24  Authority may authorize the investment of public and private funds,
  11-25  including debt and equity participation, as a means for financing
   12-1  all or any of the above functions.
   12-2        (b)  In the construction, maintenance, repair, and operation
   12-3  of any new turnpike project and the extension and expansion of any
   12-4  existing turnpike project by invested private funding, or by both
   12-5  public and private source funding, the Authority may utilize
   12-6  exclusive development agreements with private entities in which the
   12-7  Authority shall have broad latitude to negotiate the terms and
   12-8  conditions for the methods and types of financing and in which it
   12-9  may combine and negotiate any or all professional and consulting
  12-10  services, construction, operation, and maintenance of such turnpike
  12-11  projects.
  12-12        (g)  The Authority also may enter agreements with other
  12-13  governmental agencies and entities, including, but not limited to,
  12-14  Federal agencies, State agencies of this and other states, the
  12-15  United Mexican States and states of the United Mexican States
  12-16  <including states in Mexico>, political subdivisions, and
  12-17  municipalities, independently or jointly with private entities to
  12-18  provide services, to study feasibility of projects, to finance, to
  12-19  construct, to operate, and to maintain turnpike projects pursuant
  12-20  to the other terms hereof.
  12-21        (h)  The Authority may participate in and designate board
  12-22  members to serve as representatives on boards, commissions, or
  12-23  public bodies, the purposes of which are to promote the development
  12-24  of joint toll facilities in this state, between this and other
  12-25  states of the United States, or between this state and the United
   13-1  Mexican States or states of the United Mexican States.  A fee or
   13-2  expense associated with Authority participation under this
   13-3  subsection may be reimbursed from money in the Texas Turnpike
   13-4  Authority feasibility study fund.
   13-5        SECTION 1.10.  Section 21, Chapter 410, Acts of the 53rd
   13-6  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   13-7  Civil Statutes), is amended to read as follows:
   13-8        Sec. 21.  MISCELLANEOUS.  (a)  Each Turnpike Project when
   13-9  constructed and opened to traffic shall be maintained and kept in
  13-10  good condition and repair by the Authority.  Each such project
  13-11  shall also be policed and operated by such force of police,
  13-12  toll-takers, and other operating employees as the Authority may in
  13-13  its discretion employ.  Within its discretion the Authority may
  13-14  make arrangements with the Department of Public Safety for the
  13-15  services of police officers of that Agency.
  13-16        (b)  All private property damaged or destroyed in carrying
  13-17  out the powers granted by this Act shall be restored or repaired
  13-18  and placed in its original condition as nearly as practicable or
  13-19  adequate compensation made therefor out of funds provided under the
  13-20  authority of this Act.
  13-21        (c)  All counties, cities, villages, and other political
  13-22  subdivisions and all public agencies and commissions of the State
  13-23  of Texas, notwithstanding any contrary provision of law, are hereby
  13-24  authorized and empowered to lease, lend, grant, or convey to the
  13-25  Authority at its request, upon such terms and conditions as the
   14-1  proper authorities of such counties, cities, villages, other
   14-2  political subdivisions, or public agencies and commissions of the
   14-3  State may deem reasonable and fair and without the necessity for
   14-4  any advertisement, order of court, or other action or formality,
   14-5  other than the regular and formal action of the authorities
   14-6  concerned, any real property which may be necessary or appropriate
   14-7  to the effectuation of the authorized purposes of the Authority,
   14-8  including highways and other real property already devoted to
   14-9  public use.
  14-10        (d)  An action by the Authority may be evidenced in any legal
  14-11  manner, including a resolution adopted by its Board of Directors.
  14-12        (e)  Any member, agent, or employee of the Authority who
  14-13  contracts with the Authority or is interested, either directly or
  14-14  indirectly, in any contract with the Authority or in the sale of
  14-15  any property, either real or personal, to the Authority, shall be
  14-16  punished by a fine of not more than One Thousand Dollars ($1,000).
  14-17        (f)  Any motor vehicle which is not a police or emergency
  14-18  vehicle, driven or towed through a toll collection facility, shall
  14-19  pay the proper toll <person who uses any turnpike project and fails
  14-20  or refuses to pay the toll provided therefor, shall be punished by
  14-21  a fine of not more than One Hundred Dollars ($100) and in addition
  14-22  thereto the Authority shall have a lien upon the vehicle driven by
  14-23  such person for the amount of such toll and may take and retain
  14-24  possession thereof, until the amount of such toll and all charges
  14-25  in connection therewith shall have been paid>.
   15-1        (g)  In the event of nonpayment of the proper toll, on
   15-2  issuance of a proper notice of nonpayment, the registered owner of
   15-3  the nonpaying vehicle shall be legally bound to pay both the proper
   15-4  toll and an administrative fee.  The Authority is hereby authorized
   15-5  to fix, revise, charge, and collect the administrative fee, so as
   15-6  to recover the cost of collecting the unpaid toll, not to exceed
   15-7  one hundred dollars ($100).  The notice of nonpayment to the
   15-8  registered owner shall be sent by first class mail not later than
   15-9  30 days after the alleged failure to pay and shall require payment
  15-10  not sooner than 30 days from the date the notice was mailed.  The
  15-11  registered owner shall pay a separate toll and administrative fee
  15-12  for each event of nonpayment.
  15-13        (h)  If the registered owner of the vehicle fails to pay the
  15-14  proper toll and administrative fee within the time specified by the
  15-15  notice of nonpayment issued pursuant to Subsection (g) of this
  15-16  section, the registered owner shall be cited as for other traffic
  15-17  violations for the nonpayment, and the owner shall be legally bound
  15-18  to pay a fine, not to exceed two hundred fifty dollars ($250), for
  15-19  each event of nonpayment.  Neither the legal obligation to pay nor
  15-20  the actual payment of the fine shall affect the legal duty of the
  15-21  owner for any other fine or penalty prescribed by law.  In the
  15-22  prosecution of a violation under this subsection, proof, as
  15-23  evidenced by video or other recording, that the vehicle passed
  15-24  through a toll collection facility without payment of the proper
  15-25  toll, together with proof that the defendant was the registered
   16-1  owner of the vehicle when the failure to pay occurred, establishes
   16-2  the nonpayment of the registered owner.  The court of the local
   16-3  jurisdiction in which the violation occurred is authorized to
   16-4  assess and to collect the fine, in addition to any court costs,
   16-5  provided that the court must also collect the proper toll and
   16-6  administrative fee and forward the toll and fee to the Authority.
   16-7        (i)  It is a defense to nonpayment under Subsections (f)
   16-8  through (h) and (j) of this section that the motor vehicle in
   16-9  question was stolen before the failure to pay the proper toll
  16-10  occurred and was not recovered by the time of the failure to pay,
  16-11  provided the theft was reported to the appropriate law enforcement
  16-12  authority before the earlier of (1) the occurrence of the failure
  16-13  to pay; or (2) eight hours after the discovery of the theft.
  16-14        (j)  A registered owner who is a lessor of a vehicle
  16-15  concerning which a notice of nonpayment was issued pursuant to
  16-16  Subsection (g) of this section shall not be legally bound in
  16-17  connection with that notice of nonpayment provided that, not later
  16-18  than 30 days from the date the notice of nonpayment is mailed, the
  16-19  registered owner provides to the Authority a copy of the rental,
  16-20  lease, or other contract document covering the vehicle on the date
  16-21  of the nonpayment, with the name and address of the lessee clearly
  16-22  legible.  Failure to provide such information within the time
  16-23  period prescribed shall render the lessor legally bound as the
  16-24  registered owner.  If the lessor provides the required information
  16-25  within the time period prescribed, the lessee of the vehicle on the
   17-1  date of the violation shall be deemed to be the owner of the
   17-2  vehicle for purposes of this section and shall be subject to
   17-3  prosecution for failure to pay the proper toll as if the lessee
   17-4  were the registered owner, provided that the Authority sends a
   17-5  notice of nonpayment to the lessee by first class mail within 30
   17-6  days after the date of receipt of the required information from the
   17-7  lessor.
   17-8        (k)  For purposes of this section, a "transponder" means a
   17-9  device, placed on or within an automobile, that is capable of
  17-10  transmitting information used to assess or to collect tolls.  A
  17-11  transponder is "insufficiently funded" when there are no remaining
  17-12  funds in the account in connection with which the transponder was
  17-13  issued.  Any law enforcement officer of the Department of Public
  17-14  Safety of the State of Texas has the authority to seize a stolen or
  17-15  insufficiently funded transponder and to return it to the
  17-16  Authority, provided that an insufficiently funded transponder shall
  17-17  not be seized sooner than 30 days after the date the Authority has
  17-18  sent a notice of delinquency to the holder of the account.
  17-19        (l)  The Authority shall cause an audit of its books and
  17-20  accounts to be made at least once in each year by certified public
  17-21  accountants and the cost thereof may be treated as a part of the
  17-22  cost of construction or of operation of the Turnpike Project.
  17-23        SECTION 1.11.  Section 27, Chapter 410, Acts of the 53rd
  17-24  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
  17-25  Civil Statutes), is amended to read as follows:
   18-1        Sec. 27.  Project Pooling Within the Same County.
   18-2  Notwithstanding any conflicting provisions in this Act and
   18-3  superseding the same where in conflict with this section, the
   18-4  authority is hereby authorized and empowered, but only as to
   18-5  projects located wholly or partly in a planning region of a council
   18-6  of governments created under Chapter 391, Local Government Code,
   18-7  <within the same county> and subject to all the provisions of this
   18-8  section:
   18-9              (a)  To determine after a public hearing, subject to
  18-10  prior approval by the Texas <State Highway and Public>
  18-11  Transportation Commission and a resolution approving the same duly
  18-12  passed by the county commissioners court of the county where the
  18-13  projects are located, that any two or more projects now or
  18-14  hereafter constructed or determined to be constructed by the
  18-15  authority in the same county shall be pooled and designated as a
  18-16  "pooled project."  Any existing project or projects may be pooled
  18-17  in whole or in part with any new project or projects or parts
  18-18  thereof.  Upon designation such "pooled project" shall become a
  18-19  "project" or "turnpike project" as defined in Section 4(c) of this
  18-20  Act and as used in other sections of this Act.  No project may be
  18-21  pooled more than once.  Consistent with the trust indenture
  18-22  regarding securing bonds of that project, the resolution of the
  18-23  county commissioners court shall set a date certain when each of
  18-24  the projects being authorized to be pooled shall become toll free.
  18-25              (b)  Subject to the terms of this Act and subject to
   19-1  the terms of any trust agreement securing the payment of any
   19-2  turnpike revenue bonds, the authority is authorized to provide by
   19-3  resolution from time to time for the issuance of turnpike revenue
   19-4  bonds of the authority for the purpose of paying all or any part of
   19-5  the cost of any pooled project or the cost of any part of such
   19-6  pooled project and to pledge revenues of such pooled project or any
   19-7  part thereof.
   19-8              (c)  Subject to the terms of any trust agreement
   19-9  securing the payment of any turnpike revenue bonds, the authority
  19-10  is authorized to issue by resolution turnpike revenue refunding
  19-11  bonds of the authority for the purpose of refunding any bonds then
  19-12  outstanding, issued on account of any pooled project or any part of
  19-13  any pooled project issued under the provisions of this Act,
  19-14  including the payment of any redemption premium thereon and any
  19-15  interest accrued or to accrue to the date of redemption of such
  19-16  bonds and, if deemed advisable by the authority, for the additional
  19-17  purpose of constructing improvements, extensions, and enlargements
  19-18  to the pooled project or to any part of any pooled project in
  19-19  connection with which or in connection with any part of which bonds
  19-20  to be refunded shall have been issued.  Revenues of all or any part
  19-21  of such pooled project may be pledged to the payment of such
  19-22  refunding and improvement bonds.  Such improvements, extensions, or
  19-23  enlargements are not restricted to and need not be constructed on
  19-24  any particular part of a pooled project in connection with which
  19-25  bonds to be refunded may have been issued but may be constructed in
   20-1  whole or in part on other parts of the pooled project not covered
   20-2  by the bonds to be refunded.  The issuance of such bonds, the
   20-3  maturities and other details thereof, the rights of the holders
   20-4  thereof, and the rights, duties, and obligations of the authority
   20-5  in respect of the same shall be governed by the provisions of this
   20-6  Act insofar as the same may be applicable.  Within the discretion
   20-7  of the authority, the refunding bonds may be issued in exchange for
   20-8  outstanding bonds or may be sold and the proceeds used for the
   20-9  purpose of redeeming outstanding bonds.
  20-10        Whether bonds be refunded or not, the authority may, subject
  20-11  to the terms of any trust agreement securing the payment of any
  20-12  turnpike revenue bonds, issue from time to time by resolution,
  20-13  bonds, of parity or otherwise, for the purpose of paying the cost
  20-14  of all or any part of any pooled project or for the purpose of
  20-15  constructing improvements, extensions, or enlargements to all or
  20-16  any part of any pooled project and to pledge revenues of all or any
  20-17  part of such pooled project to the payment thereof.
  20-18                               ARTICLE 2
  20-19        SECTION 2.01.  Subsection (c), Section 361.031,
  20-20  Transportation Code, is amended to read as follows:
  20-21        (c)  The exercise by the authority of the powers conferred by
  20-22  this chapter in the construction, operation, and maintenance of a
  20-23  turnpike project is:
  20-24              (1)  in all respects for the benefit of the people of
  20-25  this state, for the increase of their commerce and prosperity, and
   21-1  for the improvement of their health and living conditions; and
   21-2              (2)  an essential governmental function of the state.
   21-3        SECTION 2.02.  Section 361.032, Transportation Code, is
   21-4  amended by adding Subsections (h) and (i) to read as follows:
   21-5        (h)  A majority of the board is a quorum, and the vote of a
   21-6  majority shall be necessary for any action taken by the board.
   21-7        (i)  A vacancy in the membership of the board does not impair
   21-8  the right of a quorum to exercise a right or perform a duty of the
   21-9  board.
  21-10        SECTION 2.03.  Subchapter B, Chapter 361, Transportation
  21-11  Code, is amended by adding Section 361.0485 to read as follows:
  21-12        Sec. 361.0485.  BOARD MEETING BY TELEPHONE CONFERENCE CALL.
  21-13  (a)  The board may hold an open or closed meeting by telephone
  21-14  conference call.
  21-15        (b)  The telephone conference call meeting is subject to the
  21-16  notice requirements applicable to other meetings of the board.
  21-17        (c)  The notice of the telephone conference call meeting must
  21-18  specify as the location of the meeting the conference room of the
  21-19  authority.
  21-20        (d)  Each part of the telephone conference call meeting that
  21-21  is required to be open to the public shall be audible to the public
  21-22  at the location specified in the notice and shall be tape-recorded
  21-23  or documented by written minutes.  On conclusion of the meeting,
  21-24  the tape recording or the written minutes of the meeting shall be
  21-25  made available to the public.
   22-1        SECTION 2.04.  Section 361.101, Transportation Code, is
   22-2  amended to read as follows:
   22-3        Sec. 361.101.  DETERMINATION OF TURNPIKE PROJECTS.  The
   22-4  authority may:
   22-5              (1)  construct, maintain, repair, and operate a
   22-6  turnpike project to:
   22-7                    (A)  facilitate vehicular traffic throughout this
   22-8  state;
   22-9                    (B)  promote the agricultural and industrial
  22-10  development of this state;
  22-11                    (C)  effect traffic safety; or
  22-12                    (D)  improve connections between highways of this
  22-13  state, <and of> adjoining states, and the United Mexican States;
  22-14  and
  22-15              (2)  at any time determine to undertake a turnpike
  22-16  project, except that the commission must approve the location of
  22-17  the project before final designation.
  22-18        SECTION 2.05.  Subsection (e), Section 361.171,
  22-19  Transportation Code, is amended to read as follows:
  22-20        (e)  If the proceeds of a bond issue are less than the
  22-21  turnpike project cost, additional bonds may in like manner be
  22-22  issued to provide the amount of the deficit.  Unless otherwise
  22-23  provided in the resolution authorizing the issuance of the bonds or
  22-24  in the trust agreement securing the bonds, the additional bonds are
  22-25  on a parity with <of the same issue> and are payable from the same
   23-1  fund without preference or priority of the bonds first issued.
   23-2        SECTION 2.06.  Subsection (a), Section 361.173,
   23-3  Transportation Code, is amended to read as follows:
   23-4        (a)  The principal of, <and> interest on, and any redemption
   23-5  premium on bonds issued by the authority are payable solely from:
   23-6              (1)  the money authorized for their payment under this
   23-7  chapter or other law; and
   23-8              (2)  the revenue of the turnpike project for which the
   23-9  bonds were issued, including tolls pledged to pay the bonds.
  23-10        SECTION 2.07.  Subsection (c), Section 361.175,
  23-11  Transportation Code, is amended to read as follows:
  23-12        (c)  The authority may:
  23-13              (1)  issue refunding bonds in exchange for outstanding
  23-14  bonds; or
  23-15              (2)  sell refunding bonds and use the proceeds to pay
  23-16  or provide for the payment of the <redeem> outstanding bonds.
  23-17        SECTION 2.08.  Subsection (c), Section 361.176,
  23-18  Transportation Code, is amended to read as follows:
  23-19        (c)  A trust agreement may not evidence a pledge of the
  23-20  revenue of a turnpike project except:
  23-21              (1)  to pay the cost of maintaining, repairing, and
  23-22  operating the project;
  23-23              (2)  to pay the principal of, <and> interest on, and
  23-24  any redemption premium on the bonds as they become due and payable;
  23-25              (3)  to create and maintain reserves for the purposes
   24-1  described by Subdivisions (1) and (2), as prescribed by Section
   24-2  361.179; and
   24-3              (4)  as otherwise provided by law.
   24-4        SECTION 2.09.  Subsection (a), Section 361.179,
   24-5  Transportation Code, is amended to read as follows:
   24-6        (a)  The authority may:
   24-7              (1)  impose tolls for the use of each turnpike project
   24-8  and the different parts or sections of each turnpike project; and
   24-9              (2)  contract with a person for the use of part of a
  24-10  turnpike project or lease or sell part of a turnpike project,
  24-11  including the right-of-way adjoining the paved portion, for any
  24-12  purpose, including placing on the adjoining right-of-way a gas
  24-13  station, garage, store, hotel, restaurant, railroad tracks,
  24-14  telephone line, telecommunication <telegraph> line, and electric
  24-15  line, and set the terms for the use, lease, or sale.
  24-16        SECTION 2.10.  Section 361.180, Transportation Code, is
  24-17  amended to read as follows:
  24-18        Sec. 361.180.  PROHIBITION ON TOLLS ON EXISTING FREE
  24-19  HIGHWAYS.  The authority may <not> impose a toll for transit over
  24-20  an existing free public highway only if such highway is transferred
  24-21  to the authority by the commission under Section 362.0041.
  24-22        SECTION 2.11.  Subsection (c), Section 361.184,
  24-23  Transportation Code, is amended to read as follows:
  24-24        (c)  The authority may use money in the project revolving
  24-25  fund to:
   25-1              (1)  finance the construction, maintenance, or
   25-2  operation of a turnpike project;
   25-3              (2)  provide matching money necessary for a federal
   25-4  grant or other type of participatory funding;
   25-5              (3)  provide credit enhancement for bonds issued to
   25-6  construct, expand, or improve a turnpike project;
   25-7              (4)  provide security for or payment of future or
   25-8  existing debt for construction, operation, or maintenance of a
   25-9  turnpike project;
  25-10              (5)  borrow money and issue promissory notes or other
  25-11  indebtedness payable out of the fund for any purpose authorized by
  25-12  this chapter; and
  25-13              (6)  provide for any other reasonable purpose that
  25-14  assists in the financings <financing> of the authority as
  25-15  authorized by this chapter.
  25-16        SECTION 2.12.  The heading to Section 361.187, Transportation
  25-17  Code, is amended to read as follows:
  25-18        Sec. 361.187.  EXEMPTION FROM TAXATION OR ASSESSMENT.
  25-19        SECTION 2.13.  Subsection (a), Section 361.187,
  25-20  Transportation Code, is amended to read as follows:
  25-21        (a)  The authority is exempt from taxation of or assessments
  25-22  on:
  25-23              (1)  a turnpike project;
  25-24              (2)  property the authority acquires or uses under this
  25-25  chapter; or
   26-1              (3)  income from property described by Subdivision (1)
   26-2  or (2).
   26-3        SECTION 2.14.  Subchapter E, Chapter 361, Transportation
   26-4  Code, is amended by adding Section 361.191 to read as follows:
   26-5        Sec. 361.191.  EXPENDITURE OF MONEY AUTHORIZED BY DEPARTMENT
   26-6  OF TRANSPORTATION.  (a)  The Texas Department of Transportation may
   26-7  provide for the expenditure of money for the cost of a turnpike
   26-8  project.
   26-9        (b)  If money from the state highway fund is spent under this
  26-10  section, the fund shall be repaid from tolls or other turnpike
  26-11  revenue.
  26-12        SECTION 2.15.  Subchapter G, Chapter 361, Transportation
  26-13  Code, is amended by amending Section 361.252 and adding Sections
  26-14  361.253, 361.254, and 361.255 to read as follows:
  26-15        Sec. 361.252.  FAILURE OR REFUSAL TO PAY TOLL.  Any motor
  26-16  vehicle that is not a police or emergency vehicle, driven or towed
  26-17  through a toll collection facility, shall pay the proper toll.
  26-18  <(a)  A person who uses a turnpike project and fails or refuses to
  26-19  pay a toll provided for using the project is liable for a fine not
  26-20  to exceed $100.>
  26-21        <(b)  The authority has a lien on the vehicle driven by the
  26-22  person for the amount of the toll and may take and retain the
  26-23  vehicle until the toll and related charges have been paid.>
  26-24        Sec. 361.253.  ADMINISTRATIVE FEE; NOTICE.  (a)  In the event
  26-25  of nonpayment of the proper toll, on issuance of a proper notice of
   27-1  nonpayment, the registered owner of the nonpaying vehicle is
   27-2  legally bound to pay both the proper toll and an administrative
   27-3  fee.
   27-4        (b)  The authority may fix, revise, charge, and collect the
   27-5  administrative fee, so as to recover the cost of collecting the
   27-6  unpaid toll, not to exceed $100.  The notice of nonpayment to the
   27-7  registered owner shall be sent by first class mail not later than
   27-8  30 days after the date of the alleged failure to pay and may
   27-9  require payment not sooner than 30 days from the date the notice
  27-10  was mailed.  The registered owner shall pay a separate toll and
  27-11  administrative fee for each event of nonpayment.
  27-12        (c)  If the registered owner of the vehicle fails to pay the
  27-13  proper toll and administrative fee within the time specified by the
  27-14  notice of nonpayment issued under this section, the registered
  27-15  owner shall be cited as for other traffic violations for the
  27-16  nonpayment, and the owner is legally bound to pay a fine, not to
  27-17  exceed $250, for each event of nonpayment.   Neither the legal
  27-18  obligation to pay nor the actual payment of the fine shall affect
  27-19  the legal duty of the owner for any other fine or penalty
  27-20  prescribed by law.
  27-21        Sec. 361.254.  PROSECUTIONS.  (a)  In the prosecution of a
  27-22  violation under Section 361.252 or 361.253, proof that the vehicle
  27-23  passed through a toll collection facility without payment of the
  27-24  proper toll, together with proof that the defendant was the
  27-25  registered owner of the vehicle when the failure to pay occurred,
   28-1  establishes the nonpayment of the registered owner.
   28-2        (b)  The court of the local jurisdiction in which the
   28-3  violation occurred may assess and collect the fine, in addition to
   28-4  any court costs.  The court shall also collect the proper toll and
   28-5  administrative fee and forward the toll and fee to the authority.
   28-6        (c)  It is a defense to nonpayment under Section 361.252 or
   28-7  361.253 that the motor vehicle in question was stolen before the
   28-8  failure to pay the proper toll occurred and was not recovered by
   28-9  the time of the failure to pay, but only if the theft was reported
  28-10  to the appropriate law enforcement authority before the earlier of:
  28-11              (1)  the occurrence of the failure to pay; or
  28-12              (2)  eight hours after the discovery of the theft.
  28-13        (d)  A registered owner who is a lessor of a vehicle
  28-14  concerning which a notice of nonpayment was issued under Section
  28-15  361.253 is not liable in connection with that notice of nonpayment
  28-16  if, not later than 30 days after the date the notice of nonpayment
  28-17  is mailed, the registered owner provides to the authority a copy of
  28-18  the rental, lease, or other contract document covering the vehicle
  28-19  on the date of the nonpayment, with the name and address of the
  28-20  lessee clearly legible.  Failure to provide this information within
  28-21  the period prescribed renders the lessor liable as the registered
  28-22  owner.  If the lessor provides the required information within the
  28-23  period prescribed, the lessee of the vehicle on the date of the
  28-24  violation is considered to be the owner of the vehicle for purposes
  28-25  of this section and is subject to prosecution for failure to pay
   29-1  the proper toll as if the lessee were the registered owner, if the
   29-2  authority sends a notice of nonpayment to the lessee by first class
   29-3  mail within 30 days after the date of receipt of the required
   29-4  information from the lessor.
   29-5        Sec. 361.255.  USE AND RETURN OF TRANSPONDERS.  (a)  For
   29-6  purposes of this section, a "transponder" means a device, placed on
   29-7  or within an automobile, that is capable of transmitting
   29-8  information used to assess or to collect tolls.  A transponder is
   29-9  "insufficiently funded" when there are no remaining funds in the
  29-10  account in connection with which the transponder was issued.
  29-11        (b)  Any law enforcement officer of the Department of Public
  29-12  Safety of the State of Texas has the authority to seize a stolen or
  29-13  insufficiently funded transponder and to return it to the
  29-14  authority, except that an insufficiently funded transponder may not
  29-15  be seized sooner than 30 days after the date the authority has sent
  29-16  a notice of delinquency to the holder of the account.
  29-17        SECTION 2.16.  The heading to Subchapter I, Chapter 361,
  29-18  Transportation Code, is amended to read as follows:
  29-19      SUBCHAPTER I.  <PRIVATE> PARTICIPATION IN TURNPIKE PROJECTS
  29-20        SECTION 2.17.  Section 361.301, Transportation Code, is
  29-21  amended to read as follows:
  29-22        Sec. 361.301.  AGREEMENTS WITH PUBLIC OR PRIVATE ENTITIES TO
  29-23  CONSTRUCT, MAINTAIN, REPAIR, AND OPERATE TURNPIKE PROJECTS.
  29-24  (a)  The authority may enter into an agreement with a public or
  29-25  private entity, including a toll road corporation, to permit the
   30-1  entity, independently or jointly with the authority, to construct,
   30-2  maintain, repair, and operate turnpike projects.
   30-3        (b)  The authority may authorize the investment of public and
   30-4  private money, including debt and equity participation, to finance
   30-5  a function described by this section.
   30-6        SECTION 2.18.  Section 361.302, Transportation Code, is
   30-7  amended to read as follows:
   30-8        Sec. 361.302.  EXCLUSIVE DEVELOPMENT AGREEMENTS WITH PUBLIC
   30-9  OR PRIVATE ENTITIES.  The authority may use an exclusive
  30-10  development agreement with a private entity to construct, maintain,
  30-11  repair, operate, extend, or expand a turnpike project by invested
  30-12  private funding or by public and private funding.  The authority:
  30-13              (1)  has broad discretion to negotiate the terms of
  30-14  financing; and
  30-15              (2)  may negotiate provisions relating to professional
  30-16  and consulting services with regard to the turnpike project and to
  30-17  the construction, maintenance, and operation of the project,
  30-18  including provisions for combining those services.
  30-19        SECTION 2.19.  Section 361.307, Transportation Code, is
  30-20  amended to read as follows:
  30-21        Sec. 361.307.  AGREEMENTS WITH PRIVATE ENTITIES AND OTHER
  30-22  GOVERNMENTAL AGENCIES.  The authority and a private entity jointly
  30-23  may enter into an agreement with another governmental agency or
  30-24  entity, including a federal agency, an agency of this or another
  30-25  state, including the United Mexican States or a state of the United
   31-1  Mexican States, or a political subdivision, to independently or
   31-2  jointly provide services, to study the feasibility of a turnpike
   31-3  project, or to finance, construct, operate, and maintain a turnpike
   31-4  project.
   31-5        SECTION 2.20.  Subchapter I, Chapter 361, Transportation
   31-6  Code, is amended by adding Section 361.308 to read as follows:
   31-7        Sec. 361.308.  PARTICIPATION ON CERTAIN OTHER BOARDS,
   31-8  COMMISSIONS, OR PUBLIC BODIES.  (a)  The authority may participate
   31-9  in and designate board members to serve as representatives on
  31-10  boards, commissions, or public bodies, the purposes of which are to
  31-11  promote the development of joint toll facilities in this state,
  31-12  between this and other states of the United States, or between this
  31-13  state and the United Mexican States or states of the United Mexican
  31-14  States.
  31-15        (b)  A fee or expense associated with authority participation
  31-16  under this section may be reimbursed from money in the Texas
  31-17  Turnpike Authority feasibility study fund.
  31-18        SECTION 2.21.  Section 361.331, Transportation Code, is
  31-19  amended by amending Subsection (a) and adding Subsection (e) to
  31-20  read as follows:
  31-21        (a)  The authority may designate two or more turnpike
  31-22  projects that are wholly or partly located in a planning region of
  31-23  a council of governments <the same county> as a pooled turnpike
  31-24  project after:
  31-25              (1)  conducting a public hearing;
   32-1              (2)  obtaining the approval of the commission; and
   32-2              (3)  obtaining a resolution adopted by the
   32-3  commissioners court of the county that:
   32-4                    (A)  approves the action; and
   32-5                    (B)  specifies the date the pooled project
   32-6  becomes toll free.
   32-7        (e)  In this section, "council of governments" means a
   32-8  council of governments created under Chapter 391, Local Government
   32-9  Code.
  32-10        SECTION 2.22.  Subdivisions (1) and (4), Section 362.001,
  32-11  Transportation Code, are amended to read as follows:
  32-12              (1)  "Authority" means the Texas Turnpike Authority and
  32-13  includes the entity that succeeds to the principal functions of the
  32-14  authority or to whom by law the powers of the authority are given
  32-15  <or its successor>.
  32-16              (4)  "Local governmental entity" means a political
  32-17  subdivision of the state, including a municipality or a county, a
  32-18  political subdivision of a county, a group of adjoining counties, a
  32-19  defined district, or a nonprofit corporation, including a
  32-20  transportation corporation created under Chapter 431.
  32-21        SECTION 2.23.  Section 362.003, Transportation Code, is
  32-22  amended to read as follows:
  32-23        Sec. 362.003.  APPLICABILITY OF OTHER LAW; CONFLICTS.
  32-24  (a)  This chapter is cumulative of all laws affecting the issuance
  32-25  of bonds by local governmental entities, particularly, but not by
   33-1  way of limitation, provisions of Chapter 503, Acts of the 54th
   33-2  Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes),
   33-3  the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas
   33-4  Civil Statutes), and Chapter 656, Acts of the 68th Legislature,
   33-5  Regular Session, 1983 (Article 717q, Vernon's Texas Civil
   33-6  Statutes), are applicable to and apply to all bonds issued to this
   33-7  chapter, regardless of any classification of any such local
   33-8  governmental entities thereunder; provided, however, in the event
   33-9  of any conflict between such laws and this chapter, the provisions
  33-10  of this chapter prevail.  <Bonds issued by a local governmental
  33-11  entity under this subchapter are subject to all laws affecting the
  33-12  issuance of bonds by a local governmental entity, including Chapter
  33-13  656, Acts of the 68th Legislature, Regular Session, 1983 (Article
  33-14  717q, Vernon's Texas Civil Statutes).>
  33-15        (b)  This chapter is cumulative of all laws affecting the
  33-16  commission, the department, and the local governmental entities,
  33-17  except that in the event any other law conflicts with this chapter,
  33-18  the provisions of this chapter prevail. <Bonds issued by the
  33-19  authority under this subchapter are subject to all laws affecting
  33-20  the issuance of bonds by the authority.>
  33-21        (c)  This chapter is cumulative of all laws affecting the
  33-22  authority, and the authority is authorized to enter into all
  33-23  agreements necessary or convenient to effectuate the purposes of
  33-24  this chapter.  Particularly, but not by way of limitation, the
  33-25  provisions of Chapter 410, Acts of the 53rd Legislature, Regular
   34-1  Session, 1953 (Article 6674v, Vernon's Texas Civil Statutes),
   34-2  Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k,
   34-3  Vernon's Texas Civil Statutes), the Bond Procedures Act of 1981
   34-4  (Article 717k-6, Vernon's Texas Civil Statutes), and Chapter 656,
   34-5  Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
   34-6  Vernon's Texas Civil Statutes), are applicable to the bonds issued
   34-7  by the authority under this chapter <subchapter prevails to the
   34-8  extent of any conflict between this subchapter and another law
   34-9  affecting the commission, the department, or a local governmental
  34-10  entity>.
  34-11        SECTION 2.24.  Section 362.004, Transportation Code, is
  34-12  amended by amending Subsection (c) and by adding Subsections (e)
  34-13  and (f) to read as follows:
  34-14        (c)  An agreement under this section may:
  34-15              (1)  be payable from any money lawfully available to
  34-16  the department;
  34-17              (2)  be subject to legislative appropriation if the
  34-18  intended source of payment requires legislative appropriation;
  34-19              (3)  specify the length of time the turnpike project
  34-20  will remain a toll facility;
  34-21              (4)  specify the use of the revenue from the project;
  34-22  <and>
  34-23              (5)  provide for the use of revenue from any turnpike
  34-24  project for a turnpike project that is an extension of the original
  34-25  project or is part of an integrated system of turnpike projects; or
   35-1              (6)  provide for the expenditure of money from any
   35-2  source for the cost of a turnpike project.
   35-3        (e)  If money from the state highway fund is spent under an
   35-4  agreement under this section, the authority shall repay the fund
   35-5  from tolls or other turnpike revenue.
   35-6        (f)  If the commission finds that the state highway system,
   35-7  the state's transportation needs, and overall mobility of the
   35-8  traveling public will be enhanced, the commission may enter into an
   35-9  agreement with the authority providing for the advance of funds to
  35-10  the authority to be used for any purpose of the revolving fund
  35-11  established and administered by the authority under Section
  35-12  361.184, provided that any money advanced out of the state highway
  35-13  fund shall be repaid to the fund from tolls or other turnpike
  35-14  revenue.
  35-15        SECTION 2.25.  Subchapter A, Chapter 362, Transportation
  35-16  Code, is amended by adding Section 362.0041 to read as follows:
  35-17        Sec. 362.0041.  ACQUISITION OF PROJECTS.  (a)  If the
  35-18  commission finds that the conversion of a segment of the free state
  35-19  highway system to a toll facility is the most feasible and economic
  35-20  means to accomplish necessary expansion improvements, or extensions
  35-21  to the state highway system, that segment may, on approval of the
  35-22  governor, be transferred by order of the commission to the
  35-23  authority.  The authority may receive such segment of highway,
  35-24  thereafter to be owned, operated, and maintained as a turnpike
  35-25  project under Chapter 361.
   36-1        (b)  The authority shall reimburse the commission for the
   36-2  cost of the transferred highway, unless the commission finds that
   36-3  the transfer will result in substantial net benefits to the state,
   36-4  the department, and the traveling public that exceed that cost.
   36-5  The cost shall include the total dollar amount expended by the
   36-6  department for the original construction of the highway, including
   36-7  all costs associated with the preliminary engineering and design
   36-8  engineering for plans, specifications, and estimates, the
   36-9  acquisition of necessary right-of-way, and actual construction of
  36-10  the highway and all necessary appurtenant facilities.
  36-11        (c)  The commission shall, coincident with the transfer,
  36-12  remove the segment of highway from the designated state highway
  36-13  system and shall subsequently have no liability, responsibility, or
  36-14  duty for the maintenance or operation of the highway.
  36-15        (d)  Prior to transferring a segment of the state highway
  36-16  system under this section, the commission shall conduct a public
  36-17  hearing for the purpose of receiving comments from interested
  36-18  persons concerning the proposed transfer.  Notice of the hearing
  36-19  shall be published in the Texas Register, one or more newspapers of
  36-20  general circulation, and a newspaper, if any, published in the
  36-21  county or counties in which the involved highway is located.
  36-22        (e)  The commission shall adopt rules implementing this
  36-23  section, such rules to include criteria and guidelines for the
  36-24  approval of a transfer of a highway.
  36-25        SECTION 2.26.  Section 362.007, Transportation Code, is
   37-1  amended to read as follows:
   37-2        Sec. 362.007.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL
   37-3  GOVERNMENTAL ENTITIES.  (a)  Under authority of Section 52, Article
   37-4  III, Texas Constitution, a local governmental entity other than a
   37-5  nonprofit corporation may, upon the required vote of the qualified
   37-6  voters, in addition to all other debts, issue bonds or enter into
   37-7  and make payments under agreements with the authority, not to
   37-8  exceed 40 years in term, in any amount not to exceed one-fourth of
   37-9  the assessed valuation of real property within the local
  37-10  governmental entity, except that the total indebtedness of any
  37-11  municipality shall never exceed the limits imposed by other
  37-12  provisions of the constitution, and levy and collect taxes to pay
  37-13  the interest thereon and provide a sinking fund for the redemption
  37-14  thereof, for the purposes of construction, maintenance, and
  37-15  operation of turnpike projects of the authority, or in aid thereof
  37-16  <Subsection (b), Section 52, Article III, Texas Constitution, a
  37-17  local governmental entity other than a nonprofit corporation may:>
  37-18              <(1)  agree with the authority to issue bonds and to
  37-19  make payments to aid in the construction, maintenance, or operation
  37-20  of a turnpike project of the authority; and>
  37-21              <(2)  impose taxes to pay the interest on bonds issued
  37-22  under Subdivision (1)>.
  37-23        (b)  In addition to Subsection (a), a local governmental
  37-24  entity may, within any applicable constitutional limitations, agree
  37-25  with the authority to issue bonds or enter into and make payments
   38-1  under an agreement to construct, maintain, or operate any portion
   38-2  of a turnpike project of the authority.
   38-3        (c)  To make payments under an agreement under Subsection (b)
   38-4  or pay the interest on bonds issued under Subsection (b) and to
   38-5  provide a sinking fund for the bonds or the contract, a local
   38-6  governmental entity may:
   38-7              (1)  pledge revenue from any available source,
   38-8  including annual appropriations;
   38-9              (2)  levy and collect <impose> taxes; or <and>
  38-10              (3)  provide for a combination of Subdivisions (1) and
  38-11  (2) <sinking fund>.
  38-12        (d)  The term of an agreement under this section may not
  38-13  exceed 40 years.
  38-14        (e)  Any <An> election required to permit action under this
  38-15  subchapter must be held in conformance with Chapter 1, Title 22,
  38-16  Revised Statutes, or other law applicable to the local governmental
  38-17  entity.
  38-18                               ARTICLE 3
  38-19        SECTION 3.01.  This Act takes effect September 1, 1995.
  38-20        SECTION 3.02.  (a)  Article 1 of this Act takes effect only
  38-21  if S.B. No. 971, 74th Legislature, Regular Session, 1995, does not
  38-22  become law.  If S.B. No. 971 becomes law, Article 1 of this Act has
  38-23  no effect.
  38-24        (b)  Article 2 of this Act takes effect only if S.B. No. 971,
  38-25  74th Legislature, Regular Session, 1995, becomes law.  If S.B. No.
   39-1  971, 74th Legislature, Regular Session, 1995, does not become law,
   39-2  Article 2 of this Act has no effect.
   39-3        SECTION 3.03.  The importance of this legislation and the
   39-4  crowded condition of the calendars in both houses create an
   39-5  emergency and an imperative public necessity that the
   39-6  constitutional rule requiring bills to be read on three several
   39-7  days in each house be suspended, and this rule is hereby suspended.