74R12624 E
          By Cain                                               S.B. No. 1360
          Substitute the following for S.B. No. 1360:
          By Clemons                                        C.S.S.B. No. 1360
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the operation and management of the Texas Turnpike
    1-3  Authority; providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5                               ARTICLE 1
    1-6        SECTION 1.01.  Section 1, Chapter 410, Acts of the 53rd
    1-7  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
    1-8  Civil Statutes), is amended to read as follows:
    1-9        Sec. 1.  Construction, Maintenance and Operation Authorized.
   1-10  To facilitate vehicular traffic throughout the State, to promote
   1-11  the agricultural and industrial development of the State, to assist
   1-12  in effecting traffic safety, to provide for the construction of
   1-13  modern expressways, to provide better connections between highways
   1-14  of the State of Texas and the highway system of adjoining states,
   1-15  including states of the United States and the United Mexican
   1-16  States, including cooperation between states, the Texas Turnpike
   1-17  Authority, hereinafter created, is hereby authorized and empowered
   1-18  to construct, maintain, repair and operate Turnpike Projects (as
   1-19  hereinafter defined), and to issue turnpike bonds of the Texas
   1-20  Turnpike Authority, payable solely from the revenues of such
   1-21  projects.
   1-22        SECTION 1.02.  Section 5, Chapter 410, Acts of the 53rd
   1-23  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   1-24  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;
   2-26              (e)  To issue turnpike revenue bonds of the Authority
   2-27  payable solely from revenues, including tolls pledged to such
    3-1  bonds, except as otherwise authorized by this Act, for the purpose
    3-2  of paying all or any part of the cost of a Turnpike Project;
    3-3  turnpike bonds shall be issued for each separate project;
    3-4              (f)  To fix, revise, and adjust from time to time tolls
    3-5  for transit over each separate Turnpike Project;
    3-6              (g)  To acquire, hold, and dispose of real and personal
    3-7  property in the exercise of its powers and the performance of its
    3-8  duties under this Act;
    3-9              (h)  To acquire in the name of the Authority by
   3-10  purchase or otherwise, on such terms and conditions and in such
   3-11  manner as it may deem proper, or by the exercise of the right of
   3-12  condemnation in the manner hereinafter provided, such public or
   3-13  private lands, including public parks, playgrounds or reservations,
   3-14  or parts thereof or rights therein, right-of-ways, property rights,
   3-15  easements and interests, as it may deem necessary for carrying out
   3-16  the provisions of this Act; provided, however, that except for
   3-17  parks and playgrounds and except for any property which may have
   3-18  been theretofore acquired under restrictions and limitations
   3-19  requiring payment of compensation, no compensation shall be paid
   3-20  for public lands, parkways or reservations so taken; and that all
   3-21  public property damaged in carrying out the powers granted by this
   3-22  Act, shall be restored or repaired and placed in its original
   3-23  condition as nearly as practicable; provided further, that the
   3-24  governing body having charge of any such public property is hereby
   3-25  authorized to give its consent to the use of any such property for
   3-26  a Turnpike Project; provided, further, that all property or
   3-27  interest so acquired shall be described in such a manner so as to
    4-1  locate the boundary line of same with reference to lot and block
    4-2  lines and corners of all existing and recorded subdivision
    4-3  properties and to locate the boundary line of other property with
    4-4  reference to survey lines and corners;
    4-5              (i)  To designate the location, and establish, limit
    4-6  and control such points of ingress to and egress from, each
    4-7  Turnpike Project as may be necessary or desirable in the judgment
    4-8  of the Authority and the Texas <State> Department of <Highways and
    4-9  Public> Transportation to insure the proper operation and
   4-10  maintenance of such Project, and to prohibit entrance to such
   4-11  Project from any point or points not so designated; in all cases
   4-12  where county or other public roads are affected or severed, the
   4-13  Authority is hereby empowered and required to move and replace the
   4-14  same, with equal or better facilities; and all expenses and
   4-15  resulting damages, if any, shall be paid by the Authority;
   4-16              (j)  To make and enter into contracts and operating
   4-17  agreements with similar authorities or agencies of other states,
   4-18  including states in Mexico; to make and enter into all contracts
   4-19  and agreements necessary or incidental to the performance of its
   4-20  duties and the execution of its powers under this Act; and to
   4-21  employ consulting engineers, attorneys, accountants, construction
   4-22  and financial experts, superintendents, managers and such other
   4-23  employees and agents as may be necessary in its judgments, and to
   4-24  fix their compensation; provided, that all such expenses shall be
   4-25  payable solely from the proceeds of turnpike revenue bonds issued
   4-26  under the provisions of this Act or from revenues; and provided
   4-27  further that no compensation for employees of Authority shall
    5-1  exceed the salary schedule of the Texas <State> Department of
    5-2  <Highways and Public> Transportation for comparable positions and
    5-3  services;
    5-4              (k)  To receive and accept grants for or in aid of the
    5-5  construction of any Turnpike Project, and to receive and accept aid
    5-6  or contributions from any source, of either money, property, labor
    5-7  or other things of value, to be held, used and applied only for the
    5-8  purposes for which such grants and contributions may be made;
    5-9              (l)  To make and enforce rules and regulations not
   5-10  inconsistent with the provision of this Act for use of any such
   5-11  Project;
   5-12              (m)  All contracts of the Authority for the
   5-13  construction, improvement, repair, or maintenance of any turnpike
   5-14  project shall, in so far as applicable, be made and awarded under
   5-15  the same conditions, terms, requirements, and provisions as are now
   5-16  provided for with respect to contracts of the Texas <State>
   5-17  Department of <Highways and Public> Transportation in Sections 8
   5-18  and 9 of Chapter 186, pages 457, 458, Acts, Thirty-ninth
   5-19  Legislature, 1925 and Sections 10 and 13 of Chapter 186, page 458,
   5-20  Acts, Thirty-ninth Legislature, 1925, codified as Articles 6674h,
   5-21  6674i, 6674j, and 6674m, Vernon's Civil Statutes, and in the making
   5-22  and awarding of such contracts the Authority shall, in so far as
   5-23  applicable, be under the same duties and responsibilities with
   5-24  respect thereto as are now imposed upon the Texas <State>
   5-25  Department of <Highways and Public> Transportation by the terms and
   5-26  provisions of the Statutes herein enumerated; it is hereby declared
   5-27  to be the intention of the Legislature that the provision of this
    6-1  paragraph shall be mandatory;
    6-2              (n)  To do all acts and things necessary or appropriate
    6-3  to carry out the powers expressly granted in this Act;
    6-4              (o)  To develop and implement policies that provide the
    6-5  public with a reasonable opportunity to appear before the Board to
    6-6  speak on any issue under the jurisdiction of the Authority; and
    6-7              (p)  To prepare and maintain a written plan that
    6-8  describes how a person who does not speak English or who has a
    6-9  physical, mental, or developmental disability may be provided
   6-10  reasonable access to the Authority's programs.
   6-11              (q)  The Texas Department of Transportation may provide
   6-12  for the expenditure of money from any source for the cost of a
   6-13  Turnpike Project.  If money from the state highway fund is spent
   6-14  under this subsection, the fund shall be repaid from tolls or other
   6-15  turnpike revenue.
   6-16              (r)  The Board may hold an open or closed meeting by
   6-17  telephone conference call.  The telephone conference call meeting
   6-18  is subject to the notice requirements applicable to other meetings
   6-19  of the Board.  The notice of the telephone conference call meeting
   6-20  must specify as the location of the meeting the conference room of
   6-21  the authority.  Each part of the telephone conference call meeting
   6-22  that is required to be open to the public shall be audible to the
   6-23  public at the location specified in the notice and shall be
   6-24  tape-recorded or documented by written minutes.  On conclusion of
   6-25  the meeting, the tape recording or the written minutes of the
   6-26  meeting shall be made available to the public.
   6-27        SECTION 1.03.  Sections 9(b) and (e), Chapter 410, Acts of
    7-1  the 53rd Legislature, Regular Session, 1953 (Article 6674v,
    7-2  Vernon's Texas Civil Statutes), are amended to read as follows:
    7-3        (b)  The principal of, <and the> interest on, and any
    7-4  redemption premium on such bonds shall be payable solely from the
    7-5  funds herein or otherwise provided by law for such payment and from
    7-6  the revenues of the particular project for which such bonds were
    7-7  issued.  The bonds of each issue shall be dated, shall bear
    7-8  interest at such rate or rates authorized by law, shall mature at
    7-9  such time or times, not exceeding forty (40) years from their date
   7-10  or dates, as may be determined by the Authority, and may be made
   7-11  redeemable before maturity, at such price or prices and under such
   7-12  terms and conditions as may be fixed by the Authority in the
   7-13  proceeding authorizing the issuance of the bonds.
   7-14        (e)  The proceeds of the bonds of each issue shall be used
   7-15  solely for the payment of the cost of the Turnpike Project for
   7-16  which such bonds shall have been issued, and shall be disbursed in
   7-17  such manner and under such restrictions, if any, as the Authority
   7-18  may provide in the resolution authorizing the issuance of such
   7-19  bonds or in the trust agreement hereinafter mentioned securing the
   7-20  same.  If the proceeds of the bonds of any issue, by error of
   7-21  estimates or otherwise, shall be less than such cost, additional
   7-22  bonds may in like manner be issued to provide the amount of such
   7-23  deficit, and, unless otherwise provided in the resolution
   7-24  authorizing the issuance of such bonds or in the trust agreement
   7-25  securing the same, shall be deemed to be on a parity with <of the
   7-26  same issue> and shall be entitled to payment from the same fund
   7-27  without preference or priority of the bonds first issued.  If the
    8-1  proceeds of the bonds of any issue shall exceed the cost of the
    8-2  Turnpike Project for which the same shall have been issued, the
    8-3  surplus shall be deposited to the credit of the sinking fund for
    8-4  such bonds.
    8-5        SECTION 1.04.  Section 10, Chapter 410, Acts of the 53rd
    8-6  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
    8-7  Civil Statutes), is amended to read as follows:
    8-8        Sec. 10.  Turnpike Revenue Refunding Bonds.  The Authority is
    8-9  hereby authorized to provide by resolution for the issuance of
   8-10  turnpike revenue refunding bonds of the Authority for the purpose
   8-11  of refunding any bonds then outstanding, issued on account of a
   8-12  Project, which shall have been issued under the provisions of this
   8-13  Act, including the payment of any redemption premium thereon and
   8-14  any interest accrued or to accrue to the date of redemption of such
   8-15  bonds, and, if deemed advisable by the Authority, for the
   8-16  additional purpose of constructing improvements, extensions or
   8-17  enlargements to the Turnpike Project in connection with which the
   8-18  bonds to be refunded shall have been issued.  The issuance of such
   8-19  bonds, the maturities and other details thereof, the rights of the
   8-20  holders thereof, and the rights, duties and obligations of the
   8-21  Authority in respect of the same, shall be governed by the
   8-22  provisions of this Act in so far as the same may be applicable.
   8-23  Within the discretion of the Authority the refunding bonds may be
   8-24  issued in exchange for outstanding bonds or may be sold and the
   8-25  proceeds used for the purpose of paying or providing for the
   8-26  payment of the <redeeming> outstanding bonds.
   8-27        SECTION 1.05.  Section 11(c), Chapter 410, Acts of the 53rd
    9-1  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
    9-2  Civil Statutes), is amended to read as follows:
    9-3        (c)  No trust agreement shall evidence a pledge of the
    9-4  revenues of any Project to any other purpose than (i) for the
    9-5  payment of the cost of maintaining, repairing and operating the
    9-6  Turnpike Project; (ii) for the payment of the principal of, <and>
    9-7  interest on, and any redemption premium on such bonds as the same
    9-8  shall become due and payable; (iii) to create and maintain reserves
    9-9  for such purposes, as prescribed in Section 12 hereof and (iv) as
   9-10  otherwise provided by law.  However, surplus revenues may be used
   9-11  for another Turnpike Project as authorized by Section 20b of this
   9-12  Act.
   9-13        SECTION 1.06.  Section 12(a), Chapter 410, Acts of the 53rd
   9-14  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   9-15  Civil Statutes), is amended to read as follows:
   9-16        (a)  The Authority is hereby authorized to fix, revise,
   9-17  charge and collect tolls for the use of each Turnpike Project and
   9-18  the different parts or sections thereof, and to contract with any
   9-19  person, partnership, association or corporation desiring the use of
   9-20  any part thereof, or may lease or sell any part thereof, including
   9-21  the right-of-way adjoining the paved portion, for placing thereon
   9-22  gas stations, garages, stores, hotels, restaurants, or for any
   9-23  other purpose including for tracks for railroad or railway use or
   9-24  for use by telephone, telecommunication <telegraph>, electric light
   9-25  or power lines and to fix the terms, conditions, rents and rates of
   9-26  charges for such use or the terms and conditions of such lease or
   9-27  sale.
   10-1        SECTION 1.07.  Section 12e(d), Chapter 410, Acts of the 53rd
   10-2  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   10-3  Civil Statutes), is amended to read as follows:
   10-4        (d)  The Authority may use the revolving fund to:
   10-5              (1)  finance the construction, maintenance, or
   10-6  operation of Turnpike Projects authorized by this Act;
   10-7              (2)  provide matching amounts necessary for federal
   10-8  grants or other types of participatory funding;
   10-9              (3)  provide credit enhancement for bonds issued to
  10-10  construct, expand, or improve Turnpike Projects;
  10-11              (4)  provide security for, or payment of, future or
  10-12  existing debt for construction, operation, or maintenance of
  10-13  Turnpike Projects;
  10-14              (5)  borrow money and issue promissory notes or other
  10-15  indebtedness payable out of the revolving fund for any purpose
  10-16  authorized by this Act; and
  10-17              (6)  provide for any other reasonable purpose that
  10-18  assists in the financings <financing> of the Authority as
  10-19  authorized by this Act.
  10-20        SECTION 1.08.  The heading to Section 20a, Chapter 410, Acts
  10-21  of the 53rd Legislature, Regular Session, 1953 (Article 6674v,
  10-22  Vernon's Texas Civil Statutes), is amended to read as follows:
  10-23        Sec. 20a.  <PRIVATE> PARTICIPATION IN PROJECTS.
  10-24        SECTION 1.09.  Section 20a, Chapter 410, Acts of the 53rd
  10-25  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
  10-26  Civil Statutes), is amended by amending Subsections (a), (b), and
  10-27  (g) and adding Subsection (h) to read as follows:
   11-1        (a)  The Authority may enter into agreements with public and
   11-2  private entities, including toll road corporations, to permit them,
   11-3  independently or jointly with the Authority, to construct, to
   11-4  maintain, to repair, and to operate turnpike projects;<,> and the
   11-5  Authority may authorize the investment of public and private funds,
   11-6  including debt and equity participation, as a means for financing
   11-7  all or any of the above functions.
   11-8        (b)  In the construction, maintenance, repair, and operation
   11-9  of any new turnpike project and the extension and expansion of any
  11-10  existing turnpike project by invested private funding, or by both
  11-11  public and private source funding, the Authority may utilize
  11-12  exclusive development agreements with private entities in which the
  11-13  Authority shall have broad latitude to negotiate the terms and
  11-14  conditions for the methods and types of financing and in which it
  11-15  may combine and negotiate any or all professional and consulting
  11-16  services, construction, operation, and maintenance of such turnpike
  11-17  projects.
  11-18        (g)  The Authority also may enter agreements with other
  11-19  governmental agencies and entities, including, but not limited to,
  11-20  Federal agencies, State agencies of this and other states, the
  11-21  United Mexican States and states of the United Mexican States
  11-22  <including states in Mexico>, political subdivisions, and
  11-23  municipalities, independently or jointly with private entities to
  11-24  provide services, to study feasibility of projects, to finance, to
  11-25  construct, to operate, and to maintain turnpike projects pursuant
  11-26  to the other terms hereof.
  11-27        (h)  The Authority may participate in and designate board
   12-1  members to serve as representatives on boards, commissions, or
   12-2  public bodies, the purposes of which are to promote the development
   12-3  of joint toll facilities in this state, between this and other
   12-4  states of the United States, or between this state and the United
   12-5  Mexican States or states of the United Mexican States.  A fee or
   12-6  expense associated with Authority participation under this
   12-7  subsection may be reimbursed from money in the Texas Turnpike
   12-8  Authority feasibility study fund.
   12-9        SECTION 1.10.  Section 21, Chapter 410, Acts of the 53rd
  12-10  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
  12-11  Civil Statutes), is amended to read as follows:
  12-12        Sec. 21.  MISCELLANEOUS.  (a)  Each Turnpike Project when
  12-13  constructed and opened to traffic shall be maintained and kept in
  12-14  good condition and repair by the Authority.  Each such project
  12-15  shall also be policed and operated by such force of police,
  12-16  toll-takers, and other operating employees as the Authority may in
  12-17  its discretion employ.  Within its discretion the Authority may
  12-18  make arrangements with the Department of Public Safety for the
  12-19  services of police officers of that Agency.
  12-20        (b)  All private property damaged or destroyed in carrying
  12-21  out the powers granted by this Act shall be restored or repaired
  12-22  and placed in its original condition as nearly as practicable or
  12-23  adequate compensation made therefor out of funds provided under the
  12-24  authority of this Act.
  12-25        (c)  All counties, cities, villages, and other political
  12-26  subdivisions and all public agencies and commissions of the State
  12-27  of Texas, notwithstanding any contrary provision of law, are hereby
   13-1  authorized and empowered to lease, lend, grant, or convey to the
   13-2  Authority at its request, upon such terms and conditions as the
   13-3  proper authorities of such counties, cities, villages, other
   13-4  political subdivisions, or public agencies and commissions of the
   13-5  State may deem reasonable and fair and without the necessity for
   13-6  any advertisement, order of court, or other action or formality,
   13-7  other than the regular and formal action of the authorities
   13-8  concerned, any real property which may be necessary or appropriate
   13-9  to the effectuation of the authorized purposes of the Authority,
  13-10  including highways and other real property already devoted to
  13-11  public use.
  13-12        (d)  An action by the Authority may be evidenced in any legal
  13-13  manner, including a resolution adopted by its Board of Directors.
  13-14        (e)  Any member, agent, or employee of the Authority who
  13-15  contracts with the Authority or is interested, either directly or
  13-16  indirectly, in any contract with the Authority or in the sale of
  13-17  any property, either real or personal, to the Authority, shall be
  13-18  punished by a fine of not more than One Thousand Dollars ($1,000).
  13-19        (f)  Any motor vehicle which is not a police or emergency
  13-20  vehicle, driven or towed through a toll collection facility, shall
  13-21  pay the proper toll.  The Authority may use such technology,
  13-22  including automatic vehicle and vehicle license tag identification
  13-23  photography and video surveillance, as it deems necessary to aid in
  13-24  the collection of tolls and enforcement of toll violations by
  13-25  producing recorded images of vehicles driven or towed through toll
  13-26  collection facilities.  All recorded images produced using such
  13-27  devices are for the exclusive use of the Authority in discharging
   14-1  its duties under this section and may not be available to the
   14-2  public or used in any court except as provided in this section
   14-3  <person who uses any turnpike project and fails or refuses to pay
   14-4  the toll provided therefor, shall be punished by a fine of not more
   14-5  than One Hundred Dollars ($100) and in addition thereto the
   14-6  Authority shall have a lien upon the vehicle driven by such person
   14-7  for the amount of such toll and may take and retain possession
   14-8  thereof, until the amount of such toll and all charges in
   14-9  connection therewith shall have been paid>.
  14-10        (g)  In the event of nonpayment of the proper toll, as
  14-11  evidenced by video or other recording made pursuant to Subsection
  14-12  (f) of this section, and on issuance of a proper notice of
  14-13  nonpayment, the registered owner of the nonpaying vehicle shall be
  14-14  legally bound to pay both the proper toll and an administrative
  14-15  fee.  The Authority is hereby authorized to fix, revise, charge,
  14-16  and collect the administrative fee, so as to recover the cost of
  14-17  collecting the unpaid toll, not to exceed one hundred dollars
  14-18  ($100).  The notice of nonpayment to the registered owner shall be
  14-19  sent by first-class mail not later than 30 days after the alleged
  14-20  failure to pay and shall require payment not sooner than 30 days
  14-21  from the date the notice was mailed.  The registered owner shall
  14-22  pay a separate toll and administrative fee for each event of
  14-23  nonpayment.
  14-24        (h)  If the registered owner of the vehicle fails to pay the
  14-25  proper toll and administrative fee within the time specified by the
  14-26  notice of nonpayment issued pursuant to Subsection (g) of this
  14-27  section, the registered owner shall be cited as for other traffic
   15-1  violations for the nonpayment, and the owner shall be legally bound
   15-2  to pay a fine, not to exceed two hundred fifty dollars ($250), for
   15-3  each event of nonpayment.  Neither the legal obligation to pay nor
   15-4  the actual payment of the fine shall affect the legal duty of the
   15-5  owner for any other fine or penalty prescribed by law.  In the
   15-6  prosecution of a violation under this subsection, proof, as
   15-7  evidenced by video or other recording, that the vehicle passed
   15-8  through a toll collection facility without payment of the proper
   15-9  toll, together with proof that the defendant was the registered
  15-10  owner of the vehicle when the failure to pay occurred, establishes
  15-11  the nonpayment of the registered owner.  The court of the local
  15-12  jurisdiction in which the violation occurred is authorized to
  15-13  assess and to collect the fine, in addition to any court costs,
  15-14  provided that the court must also collect the proper toll and
  15-15  administrative fee and forward the toll and fee to the Authority.
  15-16        (i)  It is a defense to nonpayment under Subsections (f)
  15-17  through (h) and (j) of this section that the motor vehicle in
  15-18  question was stolen before the failure to pay the proper toll
  15-19  occurred and was not recovered by the time of the failure to pay,
  15-20  provided the theft was reported to the appropriate law enforcement
  15-21  authority before the earlier of (1) the occurrence of the failure
  15-22  to pay; or (2) eight hours after the discovery of the theft.
  15-23        (j)  A registered owner who is a lessor of a vehicle
  15-24  concerning which a notice of nonpayment was issued pursuant to
  15-25  Subsection (g) of this section shall not be legally bound in
  15-26  connection with that notice of nonpayment provided that, not later
  15-27  than 30 days from the date the notice of nonpayment is mailed, the
   16-1  registered owner provides to the Authority a copy of the rental,
   16-2  lease, or other contract document covering the vehicle on the date
   16-3  of the nonpayment, with the name and address of the lessee clearly
   16-4  legible.  Failure to provide such information within the time
   16-5  period prescribed shall render the lessor legally bound as the
   16-6  registered owner.  If the lessor provides the required information
   16-7  within the time period prescribed, the lessee of the vehicle on the
   16-8  date of the violation shall be deemed to be the owner of the
   16-9  vehicle for purposes of this section and shall be subject to
  16-10  prosecution for failure to pay the proper toll as if the lessee
  16-11  were the registered owner, provided that the Authority sends a
  16-12  notice of nonpayment to the lessee by first-class mail within 30
  16-13  days after the date of receipt of the required information from the
  16-14  lessor.
  16-15        (k)  For purposes of this section, a "transponder" means a
  16-16  device, placed on or within an automobile, that is capable of
  16-17  transmitting information used to assess or to collect tolls.  A
  16-18  transponder is "insufficiently funded" when there are no remaining
  16-19  funds in the account in connection with which the transponder was
  16-20  issued.  Any law enforcement officer of the Department of Public
  16-21  Safety of the State of Texas has the authority to seize a stolen or
  16-22  insufficiently funded transponder and to return it to the
  16-23  Authority, provided that an insufficiently funded transponder shall
  16-24  not be seized sooner than 30 days after the date the Authority has
  16-25  sent a notice of delinquency to the holder of the account.
  16-26        (l)  The Authority shall cause an audit of its books and
  16-27  accounts to be made at least once in each year by certified public
   17-1  accountants and the cost thereof may be treated as a part of the
   17-2  cost of construction or of operation of the Turnpike Project.
   17-3        SECTION 1.11.  Section 27, Chapter 410, Acts of the 53rd
   17-4  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   17-5  Civil Statutes), is amended to read as follows:
   17-6        Sec. 27.  Project Pooling Within the Same County.
   17-7  Notwithstanding any conflicting provisions in this Act and
   17-8  superseding the same where in conflict with this section, the
   17-9  authority is hereby authorized and empowered, but only as to
  17-10  projects located wholly or partly in a planning region of a council
  17-11  of governments created under Chapter 391, Local Government Code,
  17-12  <within the same county> and subject to all the provisions of this
  17-13  section:
  17-14              (a)  To determine after a public hearing, subject to
  17-15  prior approval by the Texas <State Highway and Public>
  17-16  Transportation Commission and a resolution approving the same duly
  17-17  passed by the county commissioners court of the county where the
  17-18  projects are located, that any two or more projects now or
  17-19  hereafter constructed or determined to be constructed by the
  17-20  authority in the same county shall be pooled and designated as a
  17-21  "pooled project."  Any existing project or projects may be pooled
  17-22  in whole or in part with any new project or projects or parts
  17-23  thereof.  Upon designation such "pooled project" shall become a
  17-24  "project" or "turnpike project" as defined in Section 4(c) of this
  17-25  Act and as used in other sections of this Act.  No project may be
  17-26  pooled more than once.  Consistent with the trust indenture
  17-27  regarding securing bonds of that project, the resolution of the
   18-1  county commissioners court shall set a date certain when each of
   18-2  the projects being authorized to be pooled shall become toll free.
   18-3              (b)  Subject to the terms of this Act and subject to
   18-4  the terms of any trust agreement securing the payment of any
   18-5  turnpike revenue bonds, the authority is authorized to provide by
   18-6  resolution from time to time for the issuance of turnpike revenue
   18-7  bonds of the authority for the purpose of paying all or any part of
   18-8  the cost of any pooled project or the cost of any part of such
   18-9  pooled project and to pledge revenues of such pooled project or any
  18-10  part thereof.
  18-11              (c)  Subject to the terms of any trust agreement
  18-12  securing the payment of any turnpike revenue bonds, the authority
  18-13  is authorized to issue by resolution turnpike revenue refunding
  18-14  bonds of the authority for the purpose of refunding any bonds then
  18-15  outstanding, issued on account of any pooled project or any part of
  18-16  any pooled project issued under the provisions of this Act,
  18-17  including the payment of any redemption premium thereon and any
  18-18  interest accrued or to accrue to the date of redemption of such
  18-19  bonds and, if deemed advisable by the authority, for the additional
  18-20  purpose of constructing improvements, extensions, and enlargements
  18-21  to the pooled project or to any part of any pooled project in
  18-22  connection with which or in connection with any part of which bonds
  18-23  to be refunded shall have been issued.  Revenues of all or any part
  18-24  of such pooled project may be pledged to the payment of such
  18-25  refunding and improvement bonds.  Such improvements, extensions, or
  18-26  enlargements are not restricted to and need not be constructed on
  18-27  any particular part of a pooled project in connection with which
   19-1  bonds to be refunded may have been issued but may be constructed in
   19-2  whole or in part on other parts of the pooled project not covered
   19-3  by the bonds to be refunded.  The issuance of such bonds, the
   19-4  maturities and other details thereof, the rights of the holders
   19-5  thereof, and the rights, duties, and obligations of the authority
   19-6  in respect of the same shall be governed by the provisions of this
   19-7  Act insofar as the same may be applicable.  Within the discretion
   19-8  of the authority, the refunding bonds may be issued in exchange for
   19-9  outstanding bonds or may be sold and the proceeds used for the
  19-10  purpose of redeeming outstanding bonds.
  19-11        Whether bonds be refunded or not, the authority may, subject
  19-12  to the terms of any trust agreement securing the payment of any
  19-13  turnpike revenue bonds, issue from time to time by resolution,
  19-14  bonds, of parity or otherwise, for the purpose of paying the cost
  19-15  of all or any part of any pooled project or for the purpose of
  19-16  constructing improvements, extensions, or enlargements to all or
  19-17  any part of any pooled project and to pledge revenues of all or any
  19-18  part of such pooled project to the payment thereof.
  19-19                               ARTICLE 2
  19-20        SECTION 2.01.  Section 361.031(c), Transportation Code, is
  19-21  amended to read as follows:
  19-22        (c)  The exercise by the authority of the powers conferred by
  19-23  this chapter in the construction, operation, and maintenance of a
  19-24  turnpike project is:
  19-25              (1)  in all respects for the benefit of the people of
  19-26  this state, for the increase of their commerce and prosperity, and
  19-27  for the improvement of their health and living conditions; and
   20-1              (2)  an essential governmental function of the state.
   20-2        SECTION 2.02.  Section 361.032, Transportation Code, is
   20-3  amended by adding Subsections (h) and (i) to read as follows:
   20-4        (h)  A majority of the board is a quorum, and the vote of a
   20-5  majority shall be necessary for any action taken by the board.
   20-6        (i)  A vacancy in the membership of the board does not impair
   20-7  the right of a quorum to exercise a right or perform a duty of the
   20-8  board.
   20-9        SECTION 2.03.  Subchapter B, Chapter 361, Transportation
  20-10  Code, is amended by adding Section 361.0485 to read as follows:
  20-11        Sec. 361.0485.  BOARD MEETING BY TELEPHONE CONFERENCE CALL.
  20-12  (a)  The board may hold an open or closed meeting by telephone
  20-13  conference call.
  20-14        (b)  The telephone conference call meeting is subject to the
  20-15  notice requirements applicable to other meetings of the board.
  20-16        (c)  The notice of the telephone conference call meeting must
  20-17  specify as the location of the meeting the conference room of the
  20-18  authority.
  20-19        (d)  Each part of the telephone conference call meeting that
  20-20  is required to be open to the public shall be audible to the public
  20-21  at the location specified in the notice and shall be tape-recorded
  20-22  or documented by written minutes.  On conclusion of the meeting,
  20-23  the tape recording or the written minutes of the meeting shall be
  20-24  made available to the public.
  20-25        SECTION 2.04.  Section 361.101, Transportation Code, is
  20-26  amended to read as follows:
  20-27        Sec. 361.101.  DETERMINATION OF TURNPIKE PROJECTS.  The
   21-1  authority may:
   21-2              (1)  construct, maintain, repair, and operate a
   21-3  turnpike project to:
   21-4                    (A)  facilitate vehicular traffic throughout this
   21-5  state;
   21-6                    (B)  promote the agricultural and industrial
   21-7  development of this state;
   21-8                    (C)  effect traffic safety; or
   21-9                    (D)  improve connections between highways of this
  21-10  state, <and of> adjoining states, and the United Mexican States;
  21-11  and
  21-12              (2)  at any time determine to undertake a turnpike
  21-13  project, except that the commission must approve the location of
  21-14  the project before final designation.
  21-15        SECTION 2.05.  Section 361.171(e), Transportation Code, is
  21-16  amended to read as follows:
  21-17        (e)  If the proceeds of a bond issue are less than the
  21-18  turnpike project cost, additional bonds may in like manner be
  21-19  issued to provide the amount of the deficit.  Unless otherwise
  21-20  provided in the resolution authorizing the issuance of the bonds or
  21-21  in the trust agreement securing the bonds, the additional bonds are
  21-22  on a parity with <of the same issue> and are payable from the same
  21-23  fund without preference or priority of the bonds first issued.
  21-24        SECTION 2.06.  Section 361.173(a), Transportation Code, is
  21-25  amended to read as follows:
  21-26        (a)  The principal of, <and> interest on, and any redemption
  21-27  premium on bonds issued by the authority are payable solely from:
   22-1              (1)  the money authorized for their payment under this
   22-2  chapter or other law; and
   22-3              (2)  the revenue of the turnpike project for which the
   22-4  bonds were issued, including tolls pledged to pay the bonds.
   22-5        SECTION 2.07.  Section 361.175(c), Transportation Code, is
   22-6  amended to read as follows:
   22-7        (c)  The authority may:
   22-8              (1)  issue refunding bonds in exchange for outstanding
   22-9  bonds; or
  22-10              (2)  sell refunding bonds and use the proceeds to pay
  22-11  or provide for the payment of the <redeem> outstanding bonds.
  22-12        SECTION 2.08.  Section 361.176(c), Transportation Code, is
  22-13  amended to read as follows:
  22-14        (c)  A trust agreement may not evidence a pledge of the
  22-15  revenue of a turnpike project except:
  22-16              (1)  to pay the cost of maintaining, repairing, and
  22-17  operating the project;
  22-18              (2)  to pay the principal of, <and> interest on, and
  22-19  any redemption premium on the bonds as they become due and payable;
  22-20              (3)  to create and maintain reserves for the purposes
  22-21  described by Subdivisions (1) and (2), as prescribed by Section
  22-22  361.179; and
  22-23              (4)  as otherwise provided by law.
  22-24        SECTION 2.09.  Section 361.179(a), Transportation Code, is
  22-25  amended to read as follows:
  22-26        (a)  The authority may:
  22-27              (1)  impose tolls for the use of each turnpike project
   23-1  and the different parts or sections of each turnpike project; and
   23-2              (2)  contract with a person for the use of part of a
   23-3  turnpike project or lease or sell part of a turnpike project,
   23-4  including the right-of-way adjoining the paved portion, for any
   23-5  purpose, including placing on the adjoining right-of-way a gas
   23-6  station, garage, store, hotel, restaurant, railroad tracks,
   23-7  telephone line, telecommunication <telegraph> line, and electric
   23-8  line, and set the terms for the use, lease, or sale.
   23-9        SECTION 2.10.  Section 361.180, Transportation Code, is
  23-10  amended to read as follows:
  23-11        Sec. 361.180.  PROHIBITION ON TOLLS ON EXISTING FREE
  23-12  HIGHWAYS.  The authority may <not> impose a toll for transit over
  23-13  an existing free public highway only if such highway is transferred
  23-14  to the authority by the commission under Section 362.0041.
  23-15        SECTION 2.11.  Section 361.184(c), Transportation Code, is
  23-16  amended to read as follows:
  23-17        (c)  The authority may use money in the project revolving
  23-18  fund to:
  23-19              (1)  finance the construction, maintenance, or
  23-20  operation of a turnpike project;
  23-21              (2)  provide matching money necessary for a federal
  23-22  grant or other type of participatory funding;
  23-23              (3)  provide credit enhancement for bonds issued to
  23-24  construct, expand, or improve a turnpike project;
  23-25              (4)  provide security for or payment of future or
  23-26  existing debt for construction, operation, or maintenance of a
  23-27  turnpike project;
   24-1              (5)  borrow money and issue promissory notes or other
   24-2  indebtedness payable out of the fund for any purpose authorized by
   24-3  this chapter; and
   24-4              (6)  provide for any other reasonable purpose that
   24-5  assists in the financings <financing> of the authority as
   24-6  authorized by this chapter.
   24-7        SECTION 2.12.  The heading to Section 361.187, Transportation
   24-8  Code, is amended to read as follows:
   24-9        Sec. 361.187.  EXEMPTION FROM TAXATION OR ASSESSMENT.
  24-10        SECTION 2.13.  Section 361.187(a), Transportation Code, is
  24-11  amended to read as follows:
  24-12        (a)  The authority is exempt from taxation of or assessments
  24-13  on:
  24-14              (1)  a turnpike project;
  24-15              (2)  property the authority acquires or uses under this
  24-16  chapter; or
  24-17              (3)  income from property described by Subdivision (1)
  24-18  or (2).
  24-19        SECTION 2.14.  Subchapter E, Chapter 361, Transportation
  24-20  Code, is amended by adding Section 361.191 to read as follows:
  24-21        Sec. 361.191.  EXPENDITURE OF MONEY AUTHORIZED BY DEPARTMENT
  24-22  OF TRANSPORTATION.  (a)  The Texas Department of Transportation may
  24-23  provide for the expenditure of money from any source for the cost
  24-24  of a turnpike project.
  24-25        (b)  If money from the state highway fund is spent under this
  24-26  section, the fund shall be repaid from tolls or other turnpike
  24-27  revenue.
   25-1        SECTION 2.15.  Subchapter G, Chapter 361, Transportation
   25-2  Code, is amended by amending Section 361.252 and adding Sections
   25-3  361.253-361.255 to read as follows:
   25-4        Sec. 361.252.  FAILURE OR REFUSAL TO PAY TOLL; IDENTIFICATION
   25-5  AND SURVEILLANCE.  (a)  Any motor vehicle that is not a police or
   25-6  emergency vehicle, driven or towed through a toll collection
   25-7  facility, shall pay the proper toll.  <A person who uses a turnpike
   25-8  project and fails or refuses to pay a toll provided for using the
   25-9  project is liable for a fine not to exceed $100.>
  25-10        (b)  The authority may use the technology, including
  25-11  automatic vehicle and vehicle license tag identification
  25-12  photography and video surveillance, as it considers necessary to
  25-13  aid in the collection of tolls and enforcement of toll violations
  25-14  by producing recorded images of vehicles driven or towed  through
  25-15  toll collection facilities <The authority has a lien on the vehicle
  25-16  driven by the person for the amount of the toll and may take and
  25-17  retain the vehicle until the toll and related charges have been
  25-18  paid>.
  25-19        (c)  All recorded images produced using the devices are for
  25-20  the exclusive use of the authority in discharging its duties under
  25-21  this section and may not be available to the public or used in any
  25-22  court except as provided in this subchapter.
  25-23        Sec. 361.253.  ADMINISTRATIVE FEE; NOTICE.  (a)  In the event
  25-24  of nonpayment of the proper toll, as evidenced by video or other
  25-25  recording made under Section 361.252, and on issuance of a proper
  25-26  notice of nonpayment, the registered owner of the nonpaying vehicle
  25-27  is legally bound to pay both the proper toll and an administrative
   26-1  fee.
   26-2        (b)  The authority may fix, revise, charge, and collect the
   26-3  administrative fee, so as to recover the cost of collecting the
   26-4  unpaid toll, not to exceed $100.  The notice of nonpayment to the
   26-5  registered owner shall be sent by first-class mail not later than
   26-6  30 days after the date of the alleged failure to pay and may
   26-7  require payment not sooner than 30 days from the date the notice
   26-8  was mailed.  The registered owner shall pay a separate toll and
   26-9  administrative fee for each event of nonpayment.
  26-10        (c)  If the registered owner of the vehicle fails to pay the
  26-11  proper toll and administrative fee within the time specified by the
  26-12  notice of nonpayment issued under this section, the registered
  26-13  owner shall be cited as for other traffic violations for the
  26-14  nonpayment, and the owner is legally bound to pay a fine, not to
  26-15  exceed $250, for each event of nonpayment.   Neither the legal
  26-16  obligation to pay nor the actual payment of the fine shall affect
  26-17  the legal duty of the owner for any other fine or penalty
  26-18  prescribed by law.
  26-19        Sec. 361.254.  PROSECUTIONS.  (a)  In the prosecution of a
  26-20  violation under Section 361.252 or 361.253, proof, as evidenced by
  26-21  video or other recording, that the vehicle passed through a toll
  26-22  collection facility without payment of the proper toll, together
  26-23  with proof that the defendant was the registered owner of the
  26-24  vehicle when the failure to pay occurred, establishes the
  26-25  nonpayment of the registered owner.
  26-26        (b)  The court of the local jurisdiction in which the
  26-27  violation occurred may assess and collect the fine, in addition to
   27-1  any court costs.  The court shall also collect the proper toll and
   27-2  administrative fee and forward the toll and fee to the authority.
   27-3        (c)  It is a defense to nonpayment under Section 361.252 or
   27-4  361.253 that the motor vehicle in question was stolen before the
   27-5  failure to pay the proper toll occurred and was not recovered by
   27-6  the time of the failure to pay, but only if the theft was reported
   27-7  to the appropriate law enforcement authority before the earlier of:
   27-8              (1)  the occurrence of the failure to pay; or
   27-9              (2)  eight hours after the discovery of the theft.
  27-10        (d)  A registered owner who is a lessor of a vehicle
  27-11  concerning which a notice of nonpayment was issued under Section
  27-12  361.253 is not liable in connection with that notice of nonpayment
  27-13  if, not later than 30 days after the date the notice of nonpayment
  27-14  is mailed, the registered owner provides to the authority a copy of
  27-15  the rental, lease, or other contract document covering the vehicle
  27-16  on the date of the nonpayment, with the name and address of the
  27-17  lessee clearly legible.  Failure to provide this information within
  27-18  the period prescribed renders the lessor liable as the registered
  27-19  owner.  If the lessor provides the required information within the
  27-20  period prescribed, the lessee of the vehicle on the date of the
  27-21  violation is considered to be the owner of the vehicle for purposes
  27-22  of this section and is subject to prosecution for failure to pay
  27-23  the proper toll as if the lessee were the registered owner, if the
  27-24  authority sends a notice of nonpayment to the lessee by first-class
  27-25  mail within 30 days after the date of receipt of the required
  27-26  information from the lessor.
  27-27        Sec. 361.255.  USE AND RETURN OF TRANSPONDERS.  (a)  For
   28-1  purposes of this section, a "transponder" means a device, placed on
   28-2  or within an automobile, that is capable of transmitting
   28-3  information used to assess or to collect tolls.  A transponder is
   28-4  "insufficiently funded" when there are no remaining funds in the
   28-5  account in connection with which the transponder was issued.
   28-6        (b)  Any law enforcement officer of the Department of Public
   28-7  Safety of the State of Texas has the authority to seize a stolen or
   28-8  insufficiently funded transponder and to return it to the
   28-9  authority, except that an insufficiently funded transponder may not
  28-10  be seized sooner than 30 days after the date the authority has sent
  28-11  a notice of delinquency to the holder of the account.
  28-12        SECTION 2.16.  The heading to Subchapter I, Chapter 361,
  28-13  Transportation Code, is amended to read as follows:
  28-14      SUBCHAPTER I.  <PRIVATE> PARTICIPATION IN TURNPIKE PROJECTS
  28-15        SECTION 2.17.  Section 361.301, Transportation Code, is
  28-16  amended to read as follows:
  28-17        Sec. 361.301.  AGREEMENTS WITH PUBLIC OR PRIVATE ENTITIES TO
  28-18  CONSTRUCT, MAINTAIN, REPAIR, AND OPERATE TURNPIKE PROJECTS.  (a)
  28-19  The authority may enter into an agreement with a public or private
  28-20  entity, including a toll road corporation, to permit the entity,
  28-21  independently or jointly with the authority, to construct,
  28-22  maintain, repair, and operate turnpike projects.
  28-23        (b)  The authority may authorize the investment of public and
  28-24  private money, including debt and equity participation, to finance
  28-25  a function described by this section.
  28-26        SECTION 2.18.  Section 361.302, Transportation Code, is
  28-27  amended to read as follows:
   29-1        Sec. 361.302.  EXCLUSIVE DEVELOPMENT AGREEMENTS WITH PUBLIC
   29-2  OR PRIVATE ENTITIES.  The authority may use an exclusive
   29-3  development agreement with a private entity to construct, maintain,
   29-4  repair, operate, extend, or expand a turnpike project by invested
   29-5  private funding or by public and private funding.  The authority:
   29-6              (1)  has broad discretion to negotiate the terms of
   29-7  financing; and
   29-8              (2)  may negotiate provisions relating to professional
   29-9  and consulting services with regard to the turnpike project and to
  29-10  the construction, maintenance, and operation of the project,
  29-11  including provisions for combining those services.
  29-12        SECTION 2.19.  Section 361.307, Transportation Code, is
  29-13  amended to read as follows:
  29-14        Sec. 361.307.  AGREEMENTS WITH PRIVATE ENTITIES AND OTHER
  29-15  GOVERNMENTAL AGENCIES.  The authority and a private entity jointly
  29-16  may enter into an agreement with another governmental agency or
  29-17  entity, including a federal agency, an agency of this or another
  29-18  state, including the United Mexican States or a state of the United
  29-19  Mexican States, or a political subdivision, to independently or
  29-20  jointly provide services, to study the feasibility of a turnpike
  29-21  project, or to finance, construct, operate, and maintain a turnpike
  29-22  project.
  29-23        SECTION 2.20.  Subchapter I, Chapter 361, Transportation
  29-24  Code, is amended by adding Section 361.308 to read as follows:
  29-25        Sec. 361.308.  PARTICIPATION ON CERTAIN OTHER BOARDS,
  29-26  COMMISSIONS, OR PUBLIC BODIES.  (a)  The authority may participate
  29-27  in and designate board members to serve as representatives on
   30-1  boards, commissions, or public bodies, the purposes of which are to
   30-2  promote the development of joint toll facilities in this state,
   30-3  between this and other states of the United States, or between this
   30-4  state and the United Mexican States or states of the United Mexican
   30-5  States.
   30-6        (b)  A fee or expense associated with authority participation
   30-7  under this section may be reimbursed from money in the Texas
   30-8  Turnpike Authority feasibility study fund.
   30-9        SECTION 2.21.  Section 361.331, Transportation Code, is
  30-10  amended by amending Subsection (a) and adding Subsection (e) to
  30-11  read as follows:
  30-12        (a)  The authority may designate two or more turnpike
  30-13  projects that are wholly or partly located in a planning region of
  30-14  a council of governments <the same county> as a pooled turnpike
  30-15  project after:
  30-16              (1)  conducting a public hearing;
  30-17              (2)  obtaining the approval of the commission; and
  30-18              (3)  obtaining a resolution adopted by the
  30-19  commissioners court of the county that:
  30-20                    (A)  approves the action; and
  30-21                    (B)  specifies the date the pooled project
  30-22  becomes toll free.
  30-23        (e)  In this section, "council of governments" means a
  30-24  council of governments created under Chapter 391, Local Government
  30-25  Code.
  30-26        SECTION 2.22.  Sections 362.001(1) and (4), Transportation
  30-27  Code, are amended to read as follows:
   31-1              (1)  "Authority" means the Texas Turnpike Authority and
   31-2  includes the entity that succeeds to the principal functions of the
   31-3  authority or to whom by law the powers of the authority are given
   31-4  <or its successor>.
   31-5              (4)  "Local governmental entity" means a political
   31-6  subdivision of the state, including a municipality or a county, a
   31-7  political subdivision of a county, a group of adjoining counties, a
   31-8  defined district, or a nonprofit corporation, including a
   31-9  transportation corporation created under Chapter 431.
  31-10        SECTION 2.23.  Section 362.003, Transportation Code, is
  31-11  amended to read as follows:
  31-12        Sec. 362.003.  APPLICABILITY OF OTHER LAW; CONFLICTS.  (a)
  31-13  This chapter is cumulative of all laws affecting the issuance of
  31-14  bonds by local governmental entities, particularly, but not by way
  31-15  of limitation, provisions of Chapter 503, Acts of the 54th
  31-16  Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
  31-17  Civil Statutes), the Bond Procedures Act of 1981 (Article 717k-6,
  31-18  Vernon's Texas Civil Statutes), and Chapter 656, Acts of the 68th
  31-19  Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
  31-20  Civil Statutes), are applicable to and apply to all bonds issued to
  31-21  this chapter, regardless of any classification of any such local
  31-22  governmental entities thereunder; provided, however, in the event
  31-23  of any conflict between such laws and this chapter, the provisions
  31-24  of this chapter prevail.  <Bonds issued by a local governmental
  31-25  entity under this subchapter are subject to all laws affecting the
  31-26  issuance of bonds by a local governmental entity, including Chapter
  31-27  656, Acts of the 68th Legislature, Regular Session, 1983 (Article
   32-1  717q, Vernon's Texas Civil Statutes).>
   32-2        (b)  This chapter is cumulative of all laws affecting the
   32-3  commission, the department, and the local governmental entities,
   32-4  except that in the event any other law conflicts with this chapter,
   32-5  the provisions of this chapter prevail.  <Bonds issued by the
   32-6  authority under this subchapter are subject to all laws affecting
   32-7  the issuance of bonds by the authority.>
   32-8        (c)  This  chapter is cumulative of all laws affecting the
   32-9  authority, and the authority is authorized to enter into all
  32-10  agreements necessary or convenient to effectuate the purposes of
  32-11  this chapter.  Particularly, but not by way of limitation, the
  32-12  provisions of Chapter 410, Acts of the 53rd Legislature, Regular
  32-13  Session, 1953 (Article 6674v, Vernon's Texas Civil Statutes),
  32-14  Chapter 503, Acts of the 54th Legislature, Regular Session, 1955
  32-15  (Article 717k, Vernon's Texas Civil Statutes), the Bond Procedures
  32-16  Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes), and
  32-17  Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
  32-18  (Article 717q, Vernon's Texas Civil Statutes), are applicable to
  32-19  the bonds issued by the authority under this chapter <subchapter
  32-20  prevails to the extent of any conflict between this subchapter and
  32-21  another law affecting the commission, the department, or a local
  32-22  governmental entity>.
  32-23        SECTION 2.24.  Section 362.004, Transportation Code, is
  32-24  amended by amending Subsection (c) and adding Subsections (e) and
  32-25  (f) to read as follows:
  32-26        (c)  An agreement under this section may:
  32-27              (1)  be payable from any money lawfully available to
   33-1  the department;
   33-2              (2)  be subject to legislative appropriation if the
   33-3  intended source of payment requires legislative appropriation;
   33-4              (3)  specify the length of time the turnpike project
   33-5  will remain a toll facility;
   33-6              (4)  specify the use of the revenue from the project;
   33-7  <and>
   33-8              (5)  provide for the use of revenue from any turnpike
   33-9  project for a turnpike project that is an extension of the original
  33-10  project or is part of an integrated system of turnpike projects; or
  33-11              (6)  provide for the expenditure of money from any
  33-12  source for the cost of a turnpike project.
  33-13        (e)  If money from the state highway fund is spent under an
  33-14  agreement under this section, the authority shall repay the fund
  33-15  from tolls or other turnpike revenue.
  33-16        (f)  If the commission finds that the state highway system,
  33-17  the state's transportation needs, and overall mobility of the
  33-18  traveling public will be enhanced, the commission may enter into an
  33-19  agreement with the authority providing for the advance of funds to
  33-20  the authority to be used for any purpose of the revolving fund
  33-21  established and administered by the authority under Section
  33-22  361.184, provided that any money advanced out of the state highway
  33-23  fund shall be repaid to the fund from tolls or other turnpike
  33-24  revenue.
  33-25        SECTION 2.25.  Subchapter A, Chapter 362, Transportation
  33-26  Code, is amended by adding Section 362.0041 to read as follows:
  33-27        Sec. 362.0041.  ACQUISITION OF PROJECTS.  (a)  If the
   34-1  commission finds that the conversion of a segment of the free state
   34-2  highway system to a toll facility is the most feasible and economic
   34-3  means to accomplish necessary expansion improvements, or extensions
   34-4  to the state highway system, that segment may, upon approval of the
   34-5  governor, be transferred by order of the commission to the
   34-6  authority.  The authority may receive such segment of highway,
   34-7  thereafter to be owned, operated, and maintained as a turnpike
   34-8  project under Chapter 361.
   34-9        (b)  The authority shall reimburse the commission for the
  34-10  cost of the transferred highway, unless the commission finds that
  34-11  the transfer will result in substantial net benefits to the state,
  34-12  the department, and the traveling public that exceed that cost.
  34-13  The cost shall include the total dollar amount expended by the
  34-14  department for the original construction of the highway, including
  34-15  all costs associated with the preliminary engineering and design
  34-16  engineering for plans, specifications, and estimates, the
  34-17  acquisition of necessary right-of-way, and actual construction of
  34-18  the highway and all necessary appurtenant facilities.
  34-19        (c)  The commission shall, coincident with the transfer,
  34-20  remove the segment of highway from the designated state highway
  34-21  system and shall subsequently have no liability, responsibility, or
  34-22  duty for the maintenance or operation of the highway.
  34-23        (d)  Prior to transferring a segment of the state highway
  34-24  system under this section, the commission shall conduct a public
  34-25  hearing for the purpose of receiving comments from interested
  34-26  persons concerning the proposed transfer.  Notice of the hearing
  34-27  shall be published in the Texas Register, one or more newspapers of
   35-1  general circulation, and a newspaper, if any, published in the
   35-2  county or counties in which the involved highway is located.
   35-3        (e)  The commission shall adopt rules implementing this
   35-4  section, such rules to include criteria and guidelines for the
   35-5  approval of a transfer of a highway.
   35-6        SECTION 2.26.  Section 362.007, Transportation Code, is
   35-7  amended to read as follows:
   35-8        Sec. 362.007.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL
   35-9  GOVERNMENTAL ENTITIES.  (a)  Under authority of Section 52, Article
  35-10  III, Texas Constitution, a local governmental entity  other than a
  35-11  nonprofit corporation may, upon the required vote of the qualified
  35-12  voters, in addition to all other debts, issue bonds or enter into
  35-13  and make payments under agreements with the authority, not to
  35-14  exceed 40 years in term, in any amount not to exceed one-fourth of
  35-15  the assessed valuation of real property within the local
  35-16  governmental entity, except that the total indebtedness of any
  35-17  municipality shall never exceed the limits imposed by other
  35-18  provisions of the constitution, and levy and collect taxes to pay
  35-19  the interest thereon and provide a sinking fund for the redemption
  35-20  thereof, for the purposes of construction, maintenance, and
  35-21  operation of turnpike projects of the authority, or in aid thereof
  35-22  <Subsection (b), Section 52, Article III, Texas Constitution, a
  35-23  local governmental entity other than a nonprofit corporation may:>
  35-24              <(1)  agree with the authority to issue bonds and to
  35-25  make payments to aid in the construction, maintenance, or operation
  35-26  of a turnpike project of the authority; and>
  35-27              <(2)  impose taxes to pay the interest on bonds issued
   36-1  under Subdivision (1)>.
   36-2        (b)  In addition to Subsection (a), a local governmental
   36-3  entity may, within any applicable constitutional limitations, agree
   36-4  with the authority to issue bonds or enter into and make payments
   36-5  under an agreement to construct, maintain, or operate any portion
   36-6  of a turnpike project of the authority.
   36-7        (c)  To make payments under an agreement under Subsection (b)
   36-8  or pay the interest on bonds issued under Subsection (b) and to
   36-9  provide a sinking fund for the bonds or the contract, a local
  36-10  governmental entity may:
  36-11              (1)  pledge revenue from any available source,
  36-12  including annual appropriations;
  36-13              (2)  levy and collect <impose> taxes; or <and>
  36-14              (3)  provide for a combination of Subdivisions (1) and
  36-15  (2) <sinking fund>.
  36-16        (d)  The term of an agreement under this section may not
  36-17  exceed 40 years.
  36-18        (e)  Any <An> election required to permit action under this
  36-19  subchapter must be held in conformance with Chapter 1, Title 22,
  36-20  Revised Statutes, or other law applicable to the local governmental
  36-21  entity.
  36-22                               ARTICLE 3
  36-23        SECTION 3.01.  This Act takes effect September 1, 1995.
  36-24        SECTION 3.02.  (a)  Article 1 of this Act takes effect only
  36-25  if S.B. No. 971, 74th Legislature, Regular Session, 1995, does not
  36-26  become law.  If S.B. No. 971 becomes law, Article 1 of this Act has
  36-27  no effect.
   37-1        (b)  Article 2 of this Act takes effect only if S.B. No. 971,
   37-2  74th Legislature, Regular Session, 1995, becomes law.  If S.B. No.
   37-3  971, 74th Legislature, Regular Session, 1995, does not become law,
   37-4  Article 2 of this Act has no effect.
   37-5        SECTION 3.03.  The importance of this legislation and the
   37-6  crowded condition of the calendars in both houses create an
   37-7  emergency and an imperative public necessity that the
   37-8  constitutional rule requiring bills to be read on three several
   37-9  days in each house be suspended, and this rule is hereby suspended.