1-1        By:  Cain                                       S.B. No. 1360
    1-2        (In the Senate - Filed March 10, 1995; March 20, 1995, read
    1-3  first time and referred to Committee on State Affairs;
    1-4  April 12, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 13, Nays 0; April 12, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 1360                    By:  Cain
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the operation and management of the Texas Turnpike
   1-11  Authority.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Section 5, Chapter 410, Acts of the 53rd
   1-14  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   1-15  Civil Statutes), is amended by adding Subsections (q) and (r) to
   1-16  read as follows:
   1-17        (q)  The Texas Department of Transportation is authorized to
   1-18  expend money, from any source available, for the costs of Turnpike
   1-19  Projects, provided that any money expended out of the state highway
   1-20  fund shall be repaid to the fund from tolls or other turnpike
   1-21  revenue.
   1-22        (r)  The Authority may hold an open or closed meeting by
   1-23  telephone conference call using the following procedures:  the
   1-24  telephone conference call meeting must satisfy the notice
   1-25  requirements applicable to other meetings; the notice of the
   1-26  telephone conference call meeting must specify as the location of
   1-27  the meeting the Authority's conference room in its offices; and
   1-28  each part of the telephone conference call meeting that is required
   1-29  to be open to the public shall be audible to the public at the
   1-30  location specified, shall be either tape-recorded or documented by
   1-31  written minutes, and, on conclusion of the meeting, shall be made
   1-32  available to the public in the form of a tape recording or written
   1-33  minutes.
   1-34        SECTION 2.  Section 20a, Chapter 410, Acts of the 53rd
   1-35  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   1-36  Civil Statutes), is amended to read as follows:
   1-37        Sec. 20a.  <PRIVATE> PARTICIPATION IN PROJECTS.  (a)  The
   1-38  Authority may enter into agreements with public and private
   1-39  entities, including toll road corporations, to permit them,
   1-40  independently or jointly with the Authority, to construct, to
   1-41  maintain, to repair, and to operate turnpike projects;<,> and the
   1-42  Authority may authorize the investment of public and private funds,
   1-43  including debt and equity participation, as a means for financing
   1-44  all or any of the above functions.
   1-45        (b)  In the construction, maintenance, repair, and operation
   1-46  of any new turnpike project and the extension and expansion of any
   1-47  existing turnpike project by invested private funding, or by both
   1-48  public and private source funding, the Authority may utilize
   1-49  exclusive development agreements with private entities in which the
   1-50  Authority shall have broad latitude to negotiate the terms and
   1-51  conditions for the methods and types of financing and in which it
   1-52  may combine and negotiate any or all professional and consulting
   1-53  services, construction, operation, and maintenance of such turnpike
   1-54  projects.
   1-55        (c)  Every turnpike project which is the subject of a
   1-56  development agreement with a private entity at all times shall be,
   1-57  and all the facilities acquired or constructed thereon shall be,
   1-58  public property and shall belong to the Authority.  However, the
   1-59  Authority may enter into agreements which include provisions for
   1-60  the leases of rights-of-way, for the granting of easements and for
   1-61  the issuance of franchises, licenses, permits, or any lawful uses
   1-62  to enable a private entity to construct, to operate, and to
   1-63  maintain turnpike projects and those which supplement a turnpike
   1-64  project.  At the termination of any such agreements, the turnpike
   1-65  project and all facilities shall be in a state of proper
   1-66  maintenance as determined by the Authority and returned to the
   1-67  Authority in satisfactory condition at no further cost.
   1-68        (d)  The Authority shall not incur any financial obligations
    2-1  for a private entity which constructs, maintains or operates a
    2-2  turnpike project; and neither the State, the Authority, nor any
    2-3  political subdivision of the State shall be liable for any
    2-4  financial or other obligations of any turnpike project solely
    2-5  because of its being, constructed, financed, or operated in whole
    2-6  or in part by a private entity.
    2-7        (e)  The Authority will be responsible for negotiating in
    2-8  every turnpike project where private entities are participants, the
    2-9  terms and conditions of private participation which will include:
   2-10              (1)  methods of determining applicable costs, profit,
   2-11  and project distribution between all private equity investors and
   2-12  the Authority;
   2-13              (2)  reasonable methods for determining and classifying
   2-14  toll rates;
   2-15              (3)  acceptable safety and policing standards; and
   2-16              (4)  all other professional, consultant, construction,
   2-17  operation and maintenance standards, expenses, and costs
   2-18  applicable.
   2-19        (f)  The Authority will establish, administratively, the
   2-20  rules, procedures, and guidelines which will govern the negotiating
   2-21  process with the intention of promoting fairness, of obtaining
   2-22  numbers of private participants in turnpike projects, and of
   2-23  promoting confidence among such participants.  The rules concerning
   2-24  the negotiations shall contain criteria for qualifications of the
   2-25  participants and for the award of the contracts; and the Authority
   2-26  shall maintain updated procedures concerning participation in
   2-27  negotiations for all such projects.  Agreements are to be upon
   2-28  terms determined in the exclusive judgment of the Authority.  The
   2-29  Authority shall include the Attorney General, or his designee, in
   2-30  the negotiations with private participants.
   2-31        (g)  The Authority also may enter agreements with other
   2-32  governmental agencies and entities, including, but not limited to,
   2-33  Federal agencies, State agencies of this and other states, the
   2-34  United Mexican States and <including> states of the United Mexican
   2-35  States <in Mexico>, political subdivisions, and municipalities,
   2-36  independently or jointly with private entities to provide services,
   2-37  to study feasibility of projects, to finance, to construct, to
   2-38  operate, and to maintain turnpike projects pursuant to the other
   2-39  terms hereof.
   2-40        (h)  The Authority is authorized to participate in and may
   2-41  designate board members to serve as representatives on boards,
   2-42  commissions, or public bodies, the purposes of which are to promote
   2-43  the development of joint toll facilities within this State, between
   2-44  this and other states, or between this State and the United Mexican
   2-45  States or states of the United Mexican States.  All fees and
   2-46  expenses associated with Authority participation may be reimbursed
   2-47  from the Texas Turnpike Authority Feasibility Study Fund.
   2-48        SECTION 3.  Section 21, Chapter 410, Acts of the 53rd
   2-49  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   2-50  Civil Statutes), is amended to read as follows:
   2-51        Sec. 21.  MISCELLANEOUS.  (a)  Each Turnpike Project when
   2-52  constructed and opened to traffic shall be maintained and kept in
   2-53  good condition and repair by the Authority.  Each such project
   2-54  shall also be policed and operated by such force of police,
   2-55  toll-takers, and other operating employees as the Authority may in
   2-56  its discretion employ.  Within its discretion the Authority may
   2-57  make arrangements with the Department of Public Safety for the
   2-58  services of police officers of that Agency.
   2-59        (b)  All private property damaged or destroyed in carrying
   2-60  out the powers granted by this Act shall be restored or repaired
   2-61  and placed in its original condition as nearly as practicable or
   2-62  adequate compensation made therefor out of funds provided under the
   2-63  authority of this Act.
   2-64        (c)  All counties, cities, villages, and other political
   2-65  subdivisions and all public agencies and commissions of the State
   2-66  of Texas, notwithstanding any contrary provision of law, are hereby
   2-67  authorized and empowered to lease, lend, grant, or convey to the
   2-68  Authority at its request, upon such terms and conditions as the
   2-69  proper authorities of such counties, cities, villages, other
   2-70  political subdivisions, or public agencies and commissions of the
    3-1  State may deem reasonable and fair and without the necessity for
    3-2  any advertisement, order of court, or other action or formality,
    3-3  other than the regular and formal action of the authorities
    3-4  concerned, any real property which may be necessary or appropriate
    3-5  to the effectuation of the authorized purposes of the Authority,
    3-6  including highways and other real property already devoted to
    3-7  public use.
    3-8        (d)  An action by the Authority may be evidenced in any legal
    3-9  manner, including a resolution adopted by its Board of Directors.
   3-10        (e)  Any member, agent, or employee of the Authority who
   3-11  contracts with the Authority or is interested, either directly or
   3-12  indirectly, in any contract with the Authority or in the sale of
   3-13  any property, either real or personal, to the Authority, shall be
   3-14  punished by a fine of not more than One Thousand Dollars ($1,000).
   3-15        (f)  Any motor vehicle which is not a police or emergency
   3-16  vehicle, driven or towed through a toll collection facility, shall
   3-17  pay the proper toll.  The Authority may use such technology,
   3-18  including automatic vehicle and vehicle license tag identification
   3-19  photography and video surveillance, as it deems necessary to aid in
   3-20  the collection of tolls and enforcement of toll violations by
   3-21  producing recorded images of vehicles driven or towed through toll
   3-22  collection facilities.  All recorded images produced using such
   3-23  devices are for the exclusive use of the Authority in discharging
   3-24  its duties under this section and may not be available to the
   3-25  public or used in any court except as provided in this section
   3-26  <person who uses any turnpike project and fails or refuses to pay
   3-27  the toll provided therefor, shall be punished by a fine of not more
   3-28  than One Hundred Dollars ($100) and in addition thereto the
   3-29  Authority shall have a lien upon the vehicle driven by such person
   3-30  for the amount of such toll and may take and retain possession
   3-31  thereof, until the amount of such toll and all charges in
   3-32  connection therewith shall have been paid>.
   3-33        (g)  In the event of nonpayment of the proper toll, as
   3-34  evidenced by video or other recording made pursuant to Subsection
   3-35  (f) of this section, and on issuance of a proper notice of
   3-36  nonpayment, the registered owner of the nonpaying vehicle shall be
   3-37  legally bound to pay both the proper toll and an administrative
   3-38  fee.  The Authority is hereby authorized to fix, revise, charge,
   3-39  and collect the administrative fee, so as to recover the cost of
   3-40  collecting the unpaid toll, not to exceed one hundred dollars
   3-41  ($100).  The notice of nonpayment to the registered owner shall be
   3-42  sent by first class mail no later than 30 days after the alleged
   3-43  failure to pay and shall require payment no sooner than 30 days
   3-44  from the date the notice was mailed.  The registered owner shall
   3-45  pay a separate toll and administrative fee for each event of
   3-46  nonpayment.
   3-47        (h)  If the registered owner of the vehicle fails to pay the
   3-48  proper toll and administrative fee within the time specified by the
   3-49  notice of nonpayment issued pursuant to Subsection (g) of this
   3-50  section, the registered owner shall be cited as for other traffic
   3-51  violations for the nonpayment, and the owner shall be legally bound
   3-52  to pay a fine, not to exceed two hundred fifty dollars ($250), for
   3-53  each event of nonpayment.  Neither the legal obligation to pay nor
   3-54  the actual payment of the fine shall affect the legal duty of the
   3-55  owner for any other fine or penalty prescribed by law.  In the
   3-56  prosecution of a violation under this subsection, proof, as
   3-57  evidenced by video or other recording, that the vehicle passed
   3-58  through a toll collection facility without payment of the proper
   3-59  toll, together with proof that the defendant was the registered
   3-60  owner of the vehicle when the failure to pay occurred, establishes
   3-61  the nonpayment of the registered owner.  The court of the local
   3-62  jurisdiction in which the violation occurred is authorized to
   3-63  assess and to collect the fine, in addition to any court costs,
   3-64  provided that the court must also collect the proper toll and
   3-65  administrative fee and forward the toll and fee to the Authority.
   3-66        (i)  It is a defense to nonpayment under Subsections (f)
   3-67  through (j) of this section that the motor vehicle in question was
   3-68  stolen before the failure to pay the proper toll occurred and was
   3-69  not recovered by the time of the failure to pay, provided the theft
   3-70  was reported to the appropriate law enforcement authority before
    4-1  the earlier of (1) the occurrence of the failure to pay; or (2)
    4-2  eight hours after the discovery of the theft.
    4-3        (j)  A registered owner who is a lessor of a vehicle
    4-4  concerning which a notice of nonpayment was issued pursuant to
    4-5  Subsection (g) of this section shall not be legally bound in
    4-6  connection with that notice of nonpayment provided that, no later
    4-7  than 30 days from the date the notice of nonpayment is mailed, the
    4-8  registered owner provides to the Authority a copy of the rental,
    4-9  lease, or other contract document covering the vehicle on the date
   4-10  of the nonpayment, with the name and address of the lessee clearly
   4-11  legible.  Failure to provide such information within the time
   4-12  period prescribed shall render the lessor legally bound as the
   4-13  registered owner.  If the lessor provides the required information
   4-14  within the time period prescribed, the lessee of the vehicle on the
   4-15  date of the violation shall be deemed to be the owner of the
   4-16  vehicle for purposes of this section and shall be subject to
   4-17  prosecution for failure to pay the proper toll as if the lessee
   4-18  were the registered owner, provided that the Authority sends a
   4-19  notice of nonpayment to the lessee by first class mail within 30
   4-20  days of receiving the required information from the lessor.
   4-21        (k)  For purposes of this section, a "transponder" means a
   4-22  device, placed on or within an automobile, that is capable of
   4-23  transmitting information used to assess or to collect tolls.  A
   4-24  transponder is "insufficiently funded" when there are no remaining
   4-25  funds in the account in connection with which the transponder was
   4-26  issued.  Any law enforcement officer of the Department of Public
   4-27  Safety of the State of Texas has the authority to seize a stolen or
   4-28  insufficiently funded transponder and to return it to the
   4-29  Authority, provided that an insufficiently funded transponder shall
   4-30  not be seized sooner than 30 days after the Authority has sent a
   4-31  notice of delinquency to the holder of the account.
   4-32        (l)  The Authority shall cause an audit of its books and
   4-33  accounts to be made at least once in each year by certified public
   4-34  accountants, and the cost thereof may be treated as a part of the
   4-35  cost of construction or of operation of the Turnpike Project.  <The
   4-36  Authority shall cause an audit of its books and accounts to be made
   4-37  at least once in each year by certified public accountants and the
   4-38  cost thereof may be treated as a part of the cost of construction
   4-39  or of operation of the Turnpike Project.>
   4-40        SECTION 4.  This Act takes effect September 1, 1995.
   4-41        SECTION 5.  The importance of this legislation and the
   4-42  crowded condition of the calendars in both houses create an
   4-43  emergency and an imperative public necessity that the
   4-44  constitutional rule requiring bills to be read on three several
   4-45  days in each house be suspended, and this rule is hereby suspended,
   4-46  and that this Act take effect and be in force from and after
   4-47  passage, and it is so enacted.
   4-48                               * * * * *