TWT C.S.S.B. 370 75(R) BILL ANALYSIS TRANSPORTATION C.S.S.B. 370 By: Armbrister, Sibley (Bosse, Gray, Alexander) 5-9-97 Committee Report (Substituted) BACKGROUND The Texas Department of Transportation (TxDOT) was created in 1991 by the 72nd Legislature, as a result of the consolidation of the State Department of Highways and Public Transportation with the Texas Department of Aviation and the Texas Motor Vehicle Commission. In 1991, the Legislature also declared its intention to merge the Texas Turnpike Authority (TTA) with TxDOT in 1997. TxDOT is responsible for planning and developing transportation systems incorporating roadways, mass transit, aviation, railroads, and water navigation. TxDOT also regulates manufacturers and dealers of motor vehicles through the Motor Vehicle Board. TxDOT carries out its programs and functions through six main divisions: Transportation Planning and Development, Field Operations, Multimodal Transportation, Administrative Services, Human Resource Management, and Motorist Services. To carry out these programs, TxDOT had a budget of approximately $3 billion and 14,179 employees for fiscal year 1996. TTA is responsible for planning, financing, building, operating, and maintaining a system of toll roads, bridges, and tunnels in partnership with TxDOT. Currently, the agency operates the Dallas North Tollway and the Mountain Creek Lake Bridge in Dallas and has started construction on a tunnel under the Addison Airport and on the President George Bush Turnpike. To carry out these responsibilities, TTA had a budget of approximately $14,334,020 and 235 employees for fiscal year 1996, but did not receive an appropriation. Tollroad construction is paid from bond proceeds and TxDOT loans, and the cost of maintaining and operating the roads is paid from tolls. Both TxDOT and TTA are subject to the Sunset Act and will be abolished September 1, 1997 unless continued by the Legislature. As a result of its review of these agencies, the Sunset Advisory Commission recommended continuing TxDOT, consolidating the function of TTA within TxDOT as a separate independent division, authorizing the creation of a regional turnpike authority, and several statutory modifications that are contained in this legislation. PURPOSE The purpose of this bill is to continue TxDOT for a 12-year period, consolidate TTA within TxDOT, make statutory modifications recommended by the Sunset Advisory Commission, and make several other statutory modifications. The modifications proposed by this bill: -establish a successor agency to TTA as an independent division of TxDOT; -authorize creation of Regional Tollway Authorities (RTA) and specifically, an RTA formed by Collin, Dallas, Denton and Tarrant counties; -authorize TxDOT's use of infrastructure banks and revenue bonds to take full advantage of federal highway funding flexibility; -require the department to distribute federal funds in a manner consistent with federal formulas; -provide relief from local matching funds requirements for highway projects; -specify the conditions under which telecommunication providers may use state highway system improvements; -authorize the department to enter into interlocal agreements to use revenues from increased ad valorem tax collections due to enhanced property values; -authorize the implementation of congestion mitigation programs; -improve highway project administration and contractor timeliness; -remove obstacles to automating TxDOT's contract bidding system and the electronic issuance of licenses; -specify the level at which the department will utilize private sector engineeringrelated services; -require the department to conduct a study on the multimodal use of the state highway system; -include transportation needs of health and human service clients in TxDOT's public transportation planning efforts; -outsource TxDOT vehicle maintenance if cost effective; -authorize a pilot project for a floral mosaic living logo program; -require the commission to erect and maintain major agricultural interest signs; and -provide for other changes. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly granted to the Transportation Commission in the following sections: SECTION 1.15 - Section 201.932(a) and Section 201.934, Transportation Code, SECTION 1.16 - Section 202.060(a), Transportation Code, SECTION 1.20 Section 202.097, Transportation Code, SECTION 1.21 - Section 222.077(d), Transportation Code, SECTION 1.24 - Section 224.156(b) and Section 224.159, Transportation Code, SECTION 1.29 Section 623.074(d), Transportation Code, SECTION 2.01- Section 391.065(c), Transportation Code, SECTION 2.04 - Section 391.097(f) and Section 391.098(a), Transportation Code, SECTION 4.03 Section 8(g), Article 6675c, SECTION 5.01 - Section 1.02(c), Article 6687-1a, SECTION 6.01 Section 4(d), Article 6687-9a, Vehicle Storage Facility Act, SECTION 7.24 - Section 362.0041(c), Transportation Code, SECTION 7.25 - Section 366.031(b) and 366.035(e), Transportation Code. Rulemaking authority is also expressly granted to the Texas Turnpike Authority division of the Texas Department of Transportation in SECTION 7.08 - Section 361.042(a) and (b), Transportation Code. Rulemaking authority is also expressly granted to the Motor Vehicle Board in SECTION 3.09 - Section 4.01B(a), Article 4413(36), Texas Motor Vehicle Commission Code. Rulemaking authority is expressly granted to Regional Toll Authorities in the following sections: SECTION 7.25 - Section 366.033, Section 366.035(f), Section 366.171(a), and Section 366.185(b), Transportation Code, SECTION 8.01 - transitional provision (e). In addition, under the general rulemaking authority already granted to the policymaking bodies, rules may be developed to implement other new provisions found in this bill. SECTION BY SECTION ANALYSIS SECTION 1.01. Amends Section 201.204, Transportation Code. Updates TxDOT's Sunset date to September 1, 2009, which provides for the usual 12-year review. SECTION 1.02. Amends Section 201.051(d), Transportation Code. Updates standard language developed by the Sunset Commission. Prohibits appointment as a Transportation Commission member if the person or the person's spouse is registered, certified, or licensed by TxDOT. SECTION 1.03. Amends Section 201.057(c), Transportation Code. Updates standard language developed by the Sunset Commission regarding grounds for commission member removal. Specifies that if the potential ground for removal relates to the commissioner of transportation, the director shall notify another member of the commission, who will notify the governor and the attorney general. SECTION 1.04. Amends Subchapter B, Chapter 201, Transportation Code, by adding Section 201.059(a)-(c). Adds standard language developed by the Sunset Commission. Requires a person appointed to the Transportation Commission to complete at least one course of training to be eligible to take office. SECTION 1.05. Amends Section 201.102, Transportation Code. Updates standard language developed by the Sunset Commission that requires the Transportation Commission to clearly separate its policymaking responsibilities from the management responsibilities of the director and staff of the department. SECTION 1.06. Amends Section 201.107(b), Transportation Code. Updates standard language developed by the Sunset Commission that requires the commission to prepare an annual financial report that meets the reporting requirements in the General Appropriations Act. SECTION 1.07. Amends Section 201.203, Transportation Code. Specifies that the department's statewide headquarters is located in Austin. Deletes language specifying that all department records shall be kept at the statewide headquarters. SECTION 1.08. Amends Subchapter D, Chapter 201, Transportation Code, by adding Section 201.206. Specifies that the department may accept a donation or contribution, in any form, from any source. Donations or contributions may take the form of realty, personalty, money, materials, or services. SECTION 1.09. Amends Section 201.402(a)-(b), Transportation Code. Updates standard language developed by the Sunset Commission that requires the director or a designee to develop an equal employment policy that is annually updated, reviewed by the Texas Commission on Human Rights, and filed with the Governor's Office. Replaces "guidelines" with "laws, rules, and regulations, and instructions directly adopted under those laws, rules, or regulations". SECTION 1.10. Amends Section 201.404(a)-(b), Transportation Code. (a) Updates standard language developed by the Sunset Commission that requires the director or a designee to develop an intra-agency career ladder program that addresses mobility and advancement opportunities for employees within TxDOT and requires intra-agency postings of all job openings concurrently with any public posting. (b) Updates standard language developed by the Sunset Commission that requires the director or a designee to develop a system of annual performance evaluations based on documented employee performance upon which merit salary increases must be based. SECTION 1.11. Amends Subchapter I, Chapter 201, Transportation Code, by adding Section 201.705(a)-(e). (a)-(b) Requires that TxDOT conduct a two-year pilot project in at least three of its districts to determine whether outsourcing its vehicle maintenance would be cost-effective. (c) Requires savings from the pilot project to be deposited to the state infrastructure bank account. (d)-(e) Requires the department to report to the legislature the results of the pilot project and any recommendations on the continuation or expansion of the pilot by January 1, 2001. Specifies that this section expires January 1, 2001. SECTION 1.12. Amends Section 201.801, Transportation Code, by amending Subsection (c) and adding Subsection (e). Updates standard language developed by the Sunset Commission that requires TxDOT to collect and maintain information about all complaints filed with the agency. SECTION 1.13. Amends Section 201.802, Transportation Code, by amending Subsection (b) and adding Subsection (c). Updates standard language developed by the Sunset Commission that requires the agency to comply with state and federal program and facility accessibility laws. SECTION 1.14. Amends Subchapter K, Chapter 201, Transportation Code, by adding Section 201.905(a)-(c). (a) Requires the department to conduct a comprehensive analysis of the multimodal use of roads and highways in the state highway system. (b) Requires the department to use the analysis described in subsection (a) to conduct a campaign to help increase public awareness of traffic safety concerns. (c) Requires the department to initiate continuing community involvement sessions to assist state agencies, local decision-makers, interest groups, and the general public improve the state's transportation system to include all transportation modes. SECTION 1.15. Amends Chapter 201, Transportation Code, by adding Subchapter L, Sections 201.931 - 201.934. Section 201.931. Provides definitions for "digital signature" and "license" to be used in the electronic issuance of licenses. Section 201.932(a)-(b). Authorizes the commission, through rule, to provide for the filing of a license application, and the issuance of a license, electronically. Section 201.933(a)-(b). Specifies the use, authenticity, reliability, and receipt of a digital signature. Section 201.934. Authorizes the commission to adopt rules regarding the payment of a license fee for a license issued electronically. SECTION 1.16. Amends Subchapter C, Chapter 202, Transportation Code, by adding Section 202.060(a)-(d). (a) Authorizes the commission to adopt rules implementing a pilot project for the leasing of state highway right-of-way for floral mosaic living logos. (b) Specifies rules that must be adopted regarding the pilot project for floral mosaic living logos, including lease terms, faithful performance, public safety, and other matters as may be necessary. (c) Prohibits a living logo under this program from containing a message, symbol, or trademark that resembles an official traffic-control device. (d) Specifies that this section only applies to state highway right-of-way in a county with a population of 500,000 or more. SECTION 1.17. Amends Subchapter B, Chapter 222, Transportation Code, by adding Section 222.034(a) and (b). Requires the commission to distribute federal funds in a manner consistent with federal criteria used for determining federal aid for the state. Allows the commission to vary the distribution of federal funds if it issues a ruling or minute order justifying the variance. SECTION 1.18. Amends Subchapter B, Chapter 222, Transportation Code, by adding Section 222.053(a)-(e). (a) Defines "economically disadvantaged county" for the purposes of local match requirements for state highway funds. (b) Authorizes the commission to require or accept matching or local funds from a political subdivision of the state to make the most efficient use of state highway funding. (c) Requires the commission to adjust local matching funds required from an economically disadvantaged county based on the ability to pay. Prevents the commission from considering the lack of local incentives beyond the required minimum. (d) Authorizes the commission, when making an adjustment of the minimum match, to use in-kind resources to help a political subdivision meet federal requirements. (e) Requires the commission to annually report to the governor, lieutenant governor, and speaker on the ability of economically disadvantaged counties to compete for highway funding. SECTION 1.19. Amends Section 202.052(c), Transportation Code. Specifies that the department may receive the fair market value for leasing a highway asset in the form of cash, services, property, or a combination of these forms. SECTION 1.20. Amends Chapter 202, Transportation Code, by adding Subchapter E, Sections 202.091 - 202.097. Section 202.091. Defines the term "telecommunications". Section 202.092. Prohibits a telecommunications provider from using improvements to the state highway system without a lease or an agreement with the department. Section 202.093(a)-(b). Authorizes the department to enter an agreement for compensation with telecommunication providers to use state highway system improvements, including medians, conduits, or structures owned by the department. Section 202.094(a)-(e). Requires the department to enter telecommunication provider agreements through sealed competitive bids. Requires the department to provide each bidder with equal opportunity for discussion and revision of their proposals. Specifies that all submitted proposals must be open to public review after an award is made. Requires that the contract file contain the basis on which the award was made. Section 202.095(a)-(b). Specifies that the State Purchasing and General Services Act does not apply to this subchapter. In addition, specifies that a telecommunications provider may use the unimproved portion of state highway right-of-way, to the extent authorized by current law. Section 202.096 Specifies that revenues resulting from any telecommunication agreements must be deposited to the state highway fund. Section 202.097. Provides rulemaking authority for the commission for this subchapter. SECTION 1.21. Amends Chapter 222, Transportation Code, by adding Subchapter D, Sections 222.071 - 222.078. Section 222.071. Provides definitions, including "Bank", "Construction", "Federal act", "Federal-aid highway", "Qualified project", and "Secondary funds". This Subchapter authorizes state infrastructure banks (SIBs). Provides that the construction of a federal-aid highway or a transit project, as defined by federal law, would be a qualified project for state infrastructure bank purposes. Specifies that to be a qualified project for the purpose of receiving secondary funds, which includes funds generated from the repayment of a loan, investment income, or funds in excess of the federally required amount, a project must be eligible for assistance under Title 23 or Title 49, United States Code. Section 222.072(a)-(b). Provides that the state infrastructure bank is an account in the state highway fund that is administered by the Transportation Commission. Authorizes Federal funds received through the federal act as defined by Section 222.071, required matching state funds, proceeds from revenue bonds issued under Section 222.075, money saved as a result of contracting with a private entity for vehicle maintenance, and secondary funds to be deposited in the bank and used only for the purposes described in this subchapter. Section 222.073. Requires that the Transportation Commission use SIB funds to encourage public and private investment in transportation facilities, including multimodal facilities, and to develop financing techniques to expand the availability of funding for transportation projects, reduce state costs, maximize private and local participation in financing projects, and improve the efficiency of the state transportation system. Section 222.074(a)-(b). (a) Authorizes the commission to use SIB money to provide financial assistance to a public or private entity for a qualified project to extend credit by direct loan, provide credit enhancements, subsidize interest rates, provide security for bonds, or use other approved methods of leveraging money. (b) Requires financial assistance to a qualified private entity be limited to projects that provide transportation services or facilities that provide a demonstrated public benefit or that are constructed or operated in cooperation with a state agency or political subdivision of the state. Section 222.075(a)-(j). (a)-(d) Authorizes the commission to issue revenue bonds for the purpose of providing money for the SIB. Specifies which state laws regarding the issuance of bonds apply to revenue bonds issued by the commission under this section. Specifies that the revenue bonds are obligations of the commission and payable only from income and receipts of the bank. (e)-(h) Specifies that revenue bonds issued under this section do not constitute a debt of the state or a pledge of the faith and credit of the state. Specifies the form and content required for revenue bonds. (i) Requires proceedings relating to revenue bonds issued under this section to be submitted to the attorney general for examination and approval. Requires, upon approval, that the revenue bonds be registered by the comptroller. (j) Requires that proceeds from the sale of revenue bonds be deposited to the bank and invested in a manner similar to other funds in the bank. Section 222.076. Provides that the SIB shall consist of at least two separate subaccounts, a highway subaccount and a transit subaccount. Section 222.077(a)-(d). (a) Requires that any funds disbursed through the SIB must be repaid on terms determined by the commission and consistent with the federal act. (b) Provides that repayment of a loan and investment earnings from a subaccount must be deposited to that same subaccount. Provides that investment earnings are available for use in providing financial assistance and must be invested in United States Treasury securities, bank deposits, or other approved financing instruments. (c)-(d) Requires that the commission administer the bank in compliance with the federal act, and federal guidelines and regulations. Specifies that the commission shall implement this subchapter by rule and establish eligibility criteria for application for SIB funds. Section 222.078(a)-(b). Requires TxDOT, by January 1, 2001, to submit a report to the legislature on the status of SIB projects and the use of the bank. Specifies that this reporting section expires January 1, 2001. SECTION 1.22. Amends Subchapter A, Chapter 223, Transportation Code, by adding Sections 223.012 and 223.013. Section 223.012. Requires TxDOT to develop a liquidated damages schedule that accurately reflects the costs of project completion delays, including administrative and travel delays. Also requires TxDOT to review contractor bidding capacity to make sure contractors meet quality and timeliness standards established by the Transportation Commission. Section 223.013(a)-(d). Requires TxDOT to establish an electronic bidding system for highway construction and maintenance contracts. Specifies that the system must permit an electronically submitted bid, including signatures and guaranty check verifications. Exempts electronically submitted bids from the requirement that a bid must be opened at a public hearing, and instead provides that the electronic bid must be publicly posted within 48 hours of opening. Authorizes TxDOT to recover costs of manually processing bids that have not been submitted electronically after the electronic bidding system has been established. SECTION 1.23. Amends Section 223.041(a)-(d), Transportation Code. (a) Requires the department to use private sector engineering-related services to assist in accomplishing activities related to providing transportation projects. Defines engineering-related activities. Specifies that this Section applies to engineering-related services for highway improvements, right-of-way acquisition, and aviation improvements. Deletes language that required TxDOT to achieve a balance between the use of department employees and private contractors for preliminary and construction engineering if costs are equivalent. (b) Requires the level of expenditures to be paid to private sector providers of engineeringrelated services to be indexed to the amount set by rider in the General Appropriations Act, 75th Legislature, and expressed as a percentage of the total funds appropriated to the strategy related to the planning, design, and management of highways. Also, deletes language requiring the state auditor to determine which costs should be considered in assessing whether in-house and contracted costs are equivalent. (c) Requires the department, beginning in fiscal year 2000, to increase its expenditures to private sector providers of engineering-related services by at least one percentage point per year until it reaches a level of thirty-five percent of funds appropriated to the strategy related to the planning, design, and management of highways by the 75th Legislature at its regular session in 1997. (d) Reletters subsection. SECTION 1.24. Amends Chapter 224, Transportation Code, by adding Subchapter F, Sections 224.151 - 224.159. Section 224.151. Provides definitions for "congestion", "congestion mitigation", "high occupancy vehicle", "high occupancy vehicle lane", "motor vehicle", and "transportation corporation". Section 224.152(a)-(b). Specifies that the intent of this subchapter is to conserve fuel, decrease traffic congestion, improve air quality, develop innovative techniques to finance transportation projects, and enhance the use of existing highways and facilities. Section 224.153(a)-(b). Authorizes the commission or transportation corporation to enter into projects for the purpose of congestion mitigation, including high occupancy vehicle lanes. Authorizes the commission to spend or allocate any available funds for the purpose of congestion mitigation. Section 224.154(a)-(e). (a)-(b) Authorizes the commission, by order, to authorize the department, a regional tollway authority, transit authority, or a transportation corporation to charge a toll for the use of one or more lanes of a state highway, including a high occupancy lane, for the purpose of congestion mitigation. Authorizes the commission to set the amount of toll charges and requires that tolls be imposed in a reasonable and nondiscriminatory manner. (c) Specifies that the department, regional tollway authority, transit authority, or a transportation corporation, with whom the commission has an agreement under this section, is a successor agency for the purposes of Section 52-b, Article III, Texas Constitution. (d)-(e) Provides that certain revenue and administrative fees resulting from a congestion mitigation facility are to be deposited in the state highway fund and used only for projects for the improvement of the state highway system. Revenues or administrative fees assessed by an entity under contract with the commission shall be allocated through terms of the agreement. Section 224.155. Requires any motor vehicle, other than a police or emergency vehicle, that is driven or towed through a toll collection facility, to pay the proper toll. Section 224.156(a)-(c). Provides that the registered owner of a nonpaying vehicle is legally bound to pay the proper toll and an administrative fee in the event of nonpayment. Authorizes the commission by rule, and a transportation corporation by order, to respectively fix an administrative fee, not to exceed $100, to recover the cost of collecting an unpaid toll. Requires a notice of nonpayment be provided to the registered owner. Requires a separate toll and administrative fee for each event of nonpayment. Section 224.157(a)-(d). (a) Establishes certain proof required for the defense in the nonpayment of a proper toll from a registered owner of a vehicle. Authorizes the court of the local jurisdiction in which the violation occurred to assess and collect the fine, in addition to any court costs. (b) Requires the court to collect the proper toll and administrative fee and forward the toll and fee to the appropriate entity. (c) Specifies that theft of the vehicle in question is a defense for the nonpayment of a toll. (d) Provides that a registered owner who is a lessor of a vehicle involved in the nonpayment of a toll is not liable if certain conditions are met. Provides that failure to provide specified information within the period prescribed renders the lessor liable as the registered owner. Provides that the lessee of the vehicle on the date of the violation is considered to be the owner of the vehicle for the purposes of this subchapter and is subject to prosecution for failure to pay the proper toll. Section 224.158(a)-(b). Defines transponder as a device capable of transmitting information used to assess or collect tolls. Authorizes an officer of the Department of Public Safety to seize a stolen or insufficiently funded transponder. Section 224.159. Requires the commission to adopt rules and prescribe forms to administer this subchapter. SECTION 1.25. Amends Section 431.073(a)-(c), Transportation Code. Authorizes transportation corporations in counties of 500,000 or more to engage in congestion mitigation projects. Specifies that a corporation created by the state has the rights, powers, privileges, authority, and functions given the department to construct, improve, operate, and maintain high occupancy lanes and charge a toll on these lanes. SECTION 1.26. Amends Section 224.033(a)-(b), Transportation Code. Authorizes the commission to enter into an agreement with a county commissioners court for improvements to the state highway system. Deletes a provision authorizing a commissioners court to contract with the department. SECTION 1.27. Amends Section 251.014(a)-(b), Transportation Code. Authorizes the commission to enter into an agreement, rather than a contract with the department, with a county commissioners court for improvements to a segment of the state highway system. SECTION 1.28. Amends Chapter 455, Transportation Code, by adding Section 455.0015. Requires TxDOT to consider and include the transportation needs of health and human service agency clients when it performs public transportation planning and funding. SECTION 1.29. Amends Section 623.074, Transportation Code, by adding Subsection (d). Authorizes the department, by rule, to allow an application to move heavy equipment to be submitted electronically with a digital signature. SECTION 1.30. Specifies that the department must compete a study of alternative transportation routes from the mainland to South Padre Island by April 30, 1998. Requires the department to report to the Legislature on plans to implement the study recommendations no later than December 31, 1998. SECTION 1.31. Amends Section 201.109(b), Transportation Code. Requires the commission to develop a cost-benefit analysis to determine the appropriate use of local materials for roadways versus the use of materials that are blended or transported from other sources. SECTION 1.32. Amends Subchapter C, Chapter 791, Government Code, by adding Section 791.031(a)-(e). Authorizes the department to enter into interlocal agreements with local governments, except for school districts, to establish transportation infrastructure zones within the territory of the local government where no state or federal highway is located. Authorizes the department to receive financial assistance from the local government to construct transportation infrastructure projects. The financial assistance may come from increased ad valorem tax collections due to enhanced property values in the zone resulting from an infrastructure project. The amount is limited to no more than thirty percent of the increase in ad valorem collections. SECTION 1.33. Requires the commission to use funds authorized by minute order 106760 to conduct a study on the practicality of implementing a statewide noise abatement program. ARTICLE 2: OUTDOOR ADVERTISING SECTION 2.01. Amends Section 391.065, Transportation Code, by adding Subsection (c). Adds standard language developed by the Sunset Commission. Prevents the Transportation Commission from adopting rules that restrict competitive bidding or advertising for outdoor advertisers except to prohibit false, misleading or deceptive practices. Specifies that this section only applies to rules relating to the occupation of outdoor advertiser. SECTION 2.02. Amends Section 391.062, Transportation Code, by adding Subsection (c). Adds standard language developed by the Sunset Commission. Establishes a method for license renewal for outdoor advertisers. SECTION 2.03. Amends Section 391.066(a), Transportation Code. Updates standard language developed by the Sunset Commission that authorizes a full range of penalties, such as reprimand, suspension or revocation, for violations of state laws or agency rules. Specifically, provides for the probation of an outdoor advertiser's license and provides that TxDOT may require the license holder to report regularly to the Transportation Commission on any matter that is the basis of the probation. SECTION 2.04. Amends Subchapter D, Chapter 391, Transportation Code, by adding Sections 391.097 and 391.098. Section 391.097(a)-(f). (a) Defines "eligible rural highway" and "major agricultural interest", as it relates to this section. (b)-(c) Requires the commission to enter into one or more contracts to erect and maintain major agricultural interest signs along eligible rural highways. Requires that a contract under this section must provide for the assessment of fees to be paid to a contractor by a commercial establishment of a major agricultural interest with a portion of the fees going to the department to pay for the costs of administering the program. (d) Specifies that the agricultural interest must be within five miles of an intersection of an eligible rural highway to have its name displayed on a major agricultural interest sign. (e) Specifies the composition of a major agricultural sign. (f) Requires the commission to regulate the content, composition, placement, erection, and maintenance of major agricultural interest signs on eligible rural highways and adopt rules necessary to administer and enforce this section. Section 391.098(a)-(c). (a) Requires the commission to authorize the director to grant variances on a case-by-case basis for specific logo, major agricultural interest, and major shopping area guide signs. Authorizes the commission to adopt rules prescribing the conditions or guidelines the director should or must consider in granting a variance. (b)-(c) Specifies conditions under which the director may grant a variance, including to promote traffic safety, improve traffic flow, improve visibility, or those set through rule by the commission. Specifies that the director may not grant a variance regarding supports, content, or composition of signs. SECTION 2.05. Amends Section 394.003, Transportation Code, by adding Subsection (c). Exempts a directional sign for a small business, as defined by Section 2006.001, Government Code, from this chapter if the sign is on private property and has a surface area that is 50 square feet or less. SECTION 2.06. Amends Section 394.021(b), Transportation Code. Specifies under which conditions the commission may issue a permit for an off-premise sign. ARTICLE 3: TEXAS MOTOR VEHICLE COMMISSION CODE SECTION 3.01. Amends Section 2.02A, Texas Motor Vehicle Commission Code (Article 4413(36), Vernon's Civil Statutes). Updates standard language developed by the Sunset Advisory Commission that requires appointments to the Motor Vehicle Board be made without regard to race, color, disability, sex, religion, age or national origin. SECTION 3.02. Amends Subchapter B, Texas Motor Vehicle Commission Code, (Article 4413(36), V.T.C.S.), by adding Section 2.03A(a)-(c). Adds standard language developed by the Sunset Commission. Requires a person appointed to the Motor Vehicle Board to complete at least one course of training to be eligible to take office. SECTION 3.03. Amends Section 2.08(b), Texas Motor Vehicle Commission Code, (Article 4413(36), V.T.C.S.). Updates standard language developed by the Sunset Commission that requires the Motor Vehicle Board to comply with the open meetings and administrative procedures laws. SECTION 3.04. Amends Section 2.08A(c), Texas Motor Vehicle Commission Code, (Article 4413(36), V.T.C.S.). Updates standard language developed by the Sunset Commission that defines the grounds for removing a Motor Vehicle Board member and requires notification of the board's presiding officer, the Governor, and the Attorney General if knowledge that a potential ground for removal exists. SECTION 3.05. Amends Section 2.09(e), Texas Motor Vehicle Commission Code, (Article 4413(36), V.T.C.S.). Updates standard language developed by the Sunset Commission that requires the Motor Vehicle Board to clearly separate its policymaking responsibilities from the management responsibilities of the director of the Motor Vehicle Division in TxDOT and staff. SECTION 3.06. Amends Section 2.10(b), Texas Motor Vehicle Commission Code, (Article 4413(36), V.T.C.S.). Updates standard language developed by the Sunset Commission that requires the Motor Vehicle Board to prepare an annual financial report that meets the reporting requirements in the General Appropriations Act. SECTION 3.07. Amends Section 2.12(a)-(c), Texas Motor Vehicle Commission Code, (Article 4413(36), V.T.C.S.). Updates standard language developed by the Sunset Commission that requires the Motor Vehicle Board to collect and maintain information about all complaints filed with the board. Reletters subsections. SECTION 3.08. Amends Section 2.13(a), (b), and (d), Texas Motor Vehicle Commission Code, (Article 4413(36), V.T.C.S.). (a) Updates standard language developed by the Sunset Commission that requires the director of the Motor Vehicle Division in TxDOT or a designee to develop an intra-agency career ladder program that addresses mobility and advancement opportunities for employees and that requires intra-agency postings of job openings concurrently with any public posting. (b) Updates standard language developed by the Sunset Commission that requires the director of the Motor Vehicle Division or a designee to develop a system of annual performance evaluations based on documented employee performance upon which merit salary increases must be based. (d) Updates standard language developed by the Sunset Commission that requires the director of the Motor Vehicle Division or a designee to develop an equal employment policy that is annually updated, reviewed by the Texas Commission on Human Rights, and filed with the Governor's Office. Replaces "guidelines" with "laws, rules, and regulations, and instructions directly adopted under those laws, rules, or regulations". SECTION 3.09. Amends Section 4.01B(a)-(c), Texas Motor Vehicle Commission Code, (Article 4413(36), V.T.C.S.). Adds standard language developed by the Sunset Commission. Authorizes the Motor Vehicle Board to adopt a staggered license renewal system. Reletters subsections. ARTICLE 4: MOTOR CARRIERS SECTION 4.01. Amends Section 3(i), Article 6675c, Revised Statutes. Adds standard language developed by the Sunset Commission. Establishes a method for motor carrier registration renewal. SECTION 4.02. Amends Section 7, Article 6675c, Revised Statutes, by amending Subsections (a)(d) and adding Subsection (e). Updates standard language developed by the Sunset Commission that requires the Transportation Commission to use a full range of penalties, such as reprimand, suspension or revocation, for violations of state laws or agency rules relating to motor carrier registrations. Specifically, authorizes the commission to place a motor carrier whose license is suspended on probation. Also makes conforming changes related to the new authority to place a motor carrier on probation. SECTION 4.03. Amends Section 8, Article 6675c, Revised Statutes, by adding Subsection (g). Adds standard language developed by the Sunset Commission. Prevents the Transportation Commission from adopting rules that restrict competitive bidding or advertising by a motor carrier except to prohibit false, misleading or deceptive practices. ARTICLE 5: SALVAGE VEHICLE DEALERS SECTION 5.01. Amends Section 1.02, Article 6687-1a, Revised Statutes, by adding Subsection (c). Adds standard language developed by the Sunset Commission. Prevents the Transportation Commission from adopting rules that restrict competitive bidding or advertising by a salvage vehicle dealer except to prohibit false, misleading or deceptive practices. SECTION 5.02. Amends Section 2.07, Article 6687-1a, Revised Statutes, by amending Subsection (b) and by adding Subsections (c)-(f). Updates standard language developed by the Sunset Commission that establishes a method for salvage vehicle dealer license renewal and a time-frame and penalty structure for delinquent renewals. SECTION 5.03. Amends Section 4.01(b), Article 6687-1a, Revised Statutes. Updates standard language developed by the Sunset Commission that entitles salvage vehicle dealer licensees to a hearing conducted by the State Office of Administrative Hearings before any sanction may be taken against their license. Specifies that a rule adopted under this subsection may not conflict with a rule adopted by the State Office of Administrative Hearings. ARTICLE 6: VEHICLE STORAGE FACILITY ACT SECTION 6.01. Amends Section 4, Vehicle Storage Facility Act (Article 6687-9a, Revised Statutes), by adding Subsection (d). Adds standard language developed by the Sunset Commission. Prevents the Transportation Commission from adopting rules that restrict competitive bidding or advertising by vehicle storage facility licensees except to prohibit false, misleading or deceptive practices. SECTION 6.02. Amends Section 9(a), Vehicle Storage Facility Act (Article 6687-9a, Revised Statutes). Adds standard language developed by the Sunset Commission. Establishes a method for vehicle storage facility license renewal. SECTION 6.03. Amends Section 10, Vehicle Storage Facility Act (Article 6687-9a, Revised Statutes), by adding Subsections (e) and (f). (e) Updates standard language developed by the Sunset Commission that requires the Transportation Commission to use a full range of penalties, such as reprimand, suspension or revocation, for violations of state laws or agency rules by vehicle storage facility licensees. Specifically, authorizes the Transportation Commission to require a probationer to report regularly about any matter that was the basis for the probation. (f) Updates standard language developed by the Sunset Commission that entitles vehicle storage facility licensees to a hearing conducted by the State Office of Administrative Hearings before any sanction may be taken against their license. ARTICLE 7: TURNPIKES SECTION 7.01. Amends Chapter 222, Transportation Code, by adding Subchapter E, Sections 222.101 - 222.103. Section 222.101. Permits the department to spend funds from any source on the construction, maintenance, and operation of toll facilities. Section 222.102. Permits the department to temporarily impose a toll on a nontoll segment of the state highway system to recover costs of a preventative maintenance or rehabilitation project if the commission determines the roadway segment is subject to heavy traffic. Section 222.103 (a)-(b). Permits the department to participate in a private or public tollway project, on terms established by the commission. Requires the transportation commission to find that a toll facility by a private entity fills a demonstrated public need before the department may participate in its cost. Recognizes that an entity that participates in a project with the department is a successor agency to the Texas Turnpike Authority (TTA) for the purposes of Section 52-b, Article III, Texas Constitution. Article III, Section 52-b allows TxDOT to expend money from any source for the costs of turnpikes of TTA or its successor as long as the funds are repaid. SECTION 7.02. Amends Section 362.055, Transportation Code. Exempts a regional tollway authority (RTA) from a requirement to obtain approval of a proposed project from the commission. The existing statute in section 361.101 requires TTA to obtain the commission's approval of the location of all TTA projects before final designation. SECTION 7.03. Amends Section 361.001. Changes the definition of the Texas Turnpike Authority to the Texas Turnpike Authority division of the Texas Department of Transportation and defines the division as the "Authority". Deletes the definition of "highway". Changes the definition of "turnpike project" to include toll projects constructed, maintained or operated as part of the state highway system. Also defines "regional tollway authority" (or "RTA") as an entity created under Chapter 366, Transportation Code. Renumbers subsections. SECTION 7.04. Amends Section 361.031, Transportation Code. Makes TTA a division of TxDOT. The division has the toll authority granted to it under Chapters 361, 362, and Subchapter E of Chapter 222 regarding temporary tolls and cost participation in toll projects. All powers granted to the division to study, design, construct, operate, expand, enlarge, and extend a turnpike project as part of the state highway system shall be exercised by the department acting by and through the authority. Grants the division the authority to procure services from within or outside of the department. Permits the comptroller to assign the authority a separate agency number. Renumbers subsections. SECTION 7.05. Amends Sections 361.032(a), Transportation Code. Reduces the number of directors on the turnpike division's board from 12 to seven, with six members appointed by the governor and the chair of the commission or member of the commission designated by the chair serving as an ex officio member. SECTION 7.06. Amends Section 361.033(a), Transportation Code. Updates standard language developed by the Sunset Commission which prohibits turnpike division board members or their spouses from being employed by a business that is regulated by the commission, department, or authority, or has a financial interest in the activities of the commission, department, or authority. SECTION 7.07. Amends Subchapter B, Chapter 361, Transportation Code, by adding Section 361.0335. Adds standard language developed by the Sunset Commission. Requires the Turnpike Authority Board within the department to receive training before being eligible to take office as a member. SECTION 7.08 Amends Section 361.042(a)-(b), Transportation Code. (a) Expands the powers and duties formerly assigned to TTA and now assigned to the turnpike board and division. Requires the turnpike board to study and develop turnpike projects on its own initiative or at the request of the commission. Authorizes the turnpike board to adopt rules and employ, with the concurrence of the commission, an administrative head and who serves at the pleasure of the turnpike division board. (b) Requires the approval of the governor and the commission before the division may enter into contracts with similar authorities or agencies of another state. Also, authorizes the turnpike division to employ attorneys to defend it in legal actions regarding its activities despite provisions in the Government Code that require state agencies to receive the attorney general's approval for contracts for outside counsel unless authorized by other law. SECTION 7.09. Amends Section 361.055, Transportation Code. Designates the department, municipalities and public and private entities authorized to receive funds from the department for turnpike projects as successor agencies to TTA under the Texas Constitution. Specifies that a private entity may be considered a successor agency if the department determines that its use fills a demonstrated public need. SECTION 7.10. Amends Section 361.132(a)-(c), Transportation Code, and adds Subsections (d)-(f). Replaces authority with board to reflect change from TTA to turnpike division at TxDOT. Adds expansion, enlargement, extension, or improvement to the list of purposes for which the division may acquire property. Adds reservation rights in real property to the list of real property that the turnpike division may acquire. Specifies the purposes for which the division may acquire property, such as to protect or drain a turnpike project, construct a roadside park or mitigate an adverse environmental effect of a turnpike project. Requires the division to comply with TxDOT's relocation assistance procedures for persons displaced by a turnpike project. SECTION 7.11. Amends Section 361.135(a)-(e), Transportation Code. Requires the turnpike division board to have the concurrence of the commission before it may acquire or condemn property. In addition to existing reasons, the turnpike division board, with the concurrence of the commission, may condemn property it determines is necessary for access, approach, and interchange roads. SECTION 7.12. Amends Section 361.136(b)-(c), Transportation Code. Deletes provision that requires TTA to provide and maintain a passageway over or under a turnpike project for the owner of severed real property in excess of 80 acres. Also deletes the provision that requires TTA to sell and dispose of all severed property within two years. Reletters subsection. SECTION 7.13. Amends Section 361.137(b), Transportation Code. Prohibits the TxDOT turnpike division from filing a declaration of taking before the 91st day after the date the condemnation petition has been filed. Under current law, TTA may file the declaration of taking at the same time or after the condemnation petition, but may not file the declaration after the special commissioners have made an award in the condemnation proceeding. SECTION 7.14. Amends Subchapter D, Chapter 361, Transportation Code, by adding Section 361.142. Specifies that covenants and restrictions on property obtained by the turnpike division are not binding and do not impair the ability to use the property for turnpike purposes. Beneficiaries of these covenants and restrictions may not enjoin the division or RTA from using the property but also are not prevented from seeking damages under the Constitution resulting from a taking of the property. SECTION 7.15. Amends Section 361.180, Transportation Code. Authorizes the commission to impose a toll on a free public highway if the highway has been converted to a toll facility under existing law or new provisions for recovering costs on nontoll segments by temporarily imposing a toll. SECTION 7.16. Amends Section 361.184(b), Transportation Code. Permits the turnpike board to transfer or direct the turnpike division to transfer funds, including advances from state highway fund if they are repaid as required by the constitution. SECTION 7.17. Amends Section 361.189, Transportation Code. Permits the commission, instead of the turnpike board, to authorize the use of surplus revenue to pay the costs of another turnpike project or a toll-free project and to prescribe the terms for the use of the revenue. Deletes an exception that allows TTA to use surplus revenue on prohibited projects with the approval of the county commissioners court for each county a project is located in or when there was an agreement between TTA and a county that permitted the revenue to be used for another purpose. SECTION 7.18. Amends Section 361.232, Transportation Code, by adding Subsection (e). Exempts any highway converted from the state highway system to a turnpike project from the requirements that a turnpike project may not be undertaken to substitute for an existing highway. SECTION 7.19. Amends Section 361.237, Transportation Code. Defines a turnpike project as a public road subject to all applicable laws regarding the regulation and control of traffic and deletes language requiring TTA to police turnpike projects and authorizing TTA to arrange for police services with the Department of Public Safety. SECTION 7.20. Amends Section 361.238(a)-(b), Transportation Code, and deletes Subsections (c)(d). Specifies that a turnpike project becomes toll-free when either the bonds are paid off or firm banking and financial arrangements have been made for the final payment of the bonds. In addition, even if these two conditions are met, the commission may continue to charge a toll sufficient to pay the costs of maintaining the facility. Deletes language stating the a turnpike project becomes part of the state highway system and is operated toll-free when bonds are paid off but only if the project is in good repair to the satisfaction of the commission. Also deletes language relating to the transfer of existing funds for maintenance and relating to the sale of non-roadway facilities. SECTION 7.21. Amends Subchapter H, Chapter 361, Transportation Code, by adding Municipality and Regional Tollway Authority to the heading. SECTION 7.22. Amends Sections 361.281, 361.282, and 361.285, Transportation Code. Section 361.281. Makes a conforming change to add a municipality with a population of more than 120,000 that is on the Mexican border and also to add RTAs, to the list of entities that may receive the transfer of a turnpike project. Section 361.282(a)-(b). Adds municipalities and RTAs to the list of eligible local governments that can lease or buy a project of the turnpike division, upon approval of the turnpike division, the commission, the governor and the entity receiving the project. Section 361.285(a)-(b). Requires the attorney general to approve the agreement relating to the issuance of bonds for a turnpike project of a municipality or an RTA that is leased, sold, or conveyed. SECTION 7.23. Amends Section 361.331(a), Transportation Code. Updates a reference to a metropolitan planning organization in an existing provision authorizing pooled projects. Deletes provision for county approval of pooled projects. SECTION 7.24. Amends Section 362.0041(a)-(c), Transportation Code. Authorizes the commission to convert a free state highway to a turnpike project of the turnpike division if it is the most feasible and economic way to accomplish necessary improvement. Deletes language that required the governor's approval for such a conversion. Requires the commission to conduct a public hearing before any state highway is converted into a turnpike project and to set rules for the conversion of a highway. Deletes language requiring the TTA to reimburse the commission for the cost of the highway, unless the commission finds that the transfer will result in substantial net benefits to the state, department and traveling public. Also deletes language requiring the commission to remove the transferred highway from the state highway system. Reletters Subsection. SECTION 7.25. Amends Subtitle G, Title 6, Transportation Code, by adding Chapter 366, Subchapters A-G, regarding Regional Tollway Authorities. Subchapter A. General Provisions Section 366.001. Specifies that Chapter 366 is titled the Regional Tollway Authority Act. Section 366.002(a) and (b). States that the purposes of the chapter are to expand and to improve transportation in the state, create regional tollway authorities to secure rights-of-way for urgently needed transportation systems, to plan, design, construct and operate these systems, and to reduce the financial burdens and demands on the commission. Section 366.003. Defines authority as RTA and board as board of directors of an RTA. Other definitions include bond terminology, highway, local government entity, and turnpike system. (The definition of turnpike project is more expansive than the definition of turnpike project for TTA under section 361.001(5). The expanded definition includes service stations, hotel, motels, restaurants, parking areas or structures, and rest stops as part of the definition of improvement or expansion of a turnpike project.) Section 366.004 (a)-(b). Defines acceptable construction costs for RTA projects. (These costs parallel the language in TTA's statute in section 361.004 providing acceptable costs for TTA turnpike projects.) Subchapter B. Creation and Powers of Regional Tollway Authorities Section 366.031(a)-(d). Permits two or more counties to create an RTA, subject to commission approval, if one of the counties has a population of at least 300,000. Commission approval is not required if one of the counties has a population of 1.5 million or more. A county may seek to be included in an RTA if it is contiguous to a county that created the RTA. The commission must adopt rules to implement these provisions by March 1, 1998. Section 366.032(a)-(f). Establishes RTAs as political subdivisions of the state and specifies that the exercise of an RTA's powers is an essential governmental function of the state. Specifies that RTAs are subject to Sunset review but that they are not abolished under the Sunset Act. An RTA created before January 1, 2000 is subject to Sunset review in 2003 and subsequently in the year that TxDOT is under the review. An RTA created on or after January 1, 2000 is reviewed at the time that TxDOT is under the review. Section 366.033(a)-(j). Provides for the general powers of RTAs. RTAs may adopt rules and take actions necessary or appropriate to carry out the powers of the chapter. RTAs may acquire property, enter into contracts, employ and compensate administrators, receive loans and grants, install and relocate utilities, adopt and enforce rules, enter into leases and operating agreements, and enter into a contract with a local governmental entity or the department to operate a turnpike project. Rules adopted by an RTA are subject the administrative procedure act and provisions for declaratory judgment in determining the validity or applicability of a rule, except that action may be brought only in a district court of a county located in the RTA. RTAs must adopt a drug and alcohol policy for RTA employees and may adopt policies for testing employees suspected of being in violation of its drug and alcohol policy. RTAs must adopt written procedures governing its procurement of goods and services, consistent with general laws applicable to the authority. (These provisions parallel language providing general powers for TTA in its existing statute under section 361.042 except that the TTA language does not require for a drug and alcohol policy.) Section 366.034(a)-(b). Allows RTAs to operate two or more turnpike projects as a turnpike system, as long as the revenue of a system is accounted for separately and is not commingled with a project that is not part of a system. Section 366.035(a)-(f). Provides for the conversion of a segment of the state highway system to a toll project. A segment of the free state highway system, located within a county served by an RTA, may be transferred to an RTA, after a public hearing, subject to approval by the governor and the RTA. The RTA shall reimburse the commission for the highway, unless the commission determines that the transfer will result in substantial net benefits to the state. (These provisions parallel the existing language in section 362.0041 providing for a conversion of a state highway to a toll facility operated by TTA, except that the TTA statute does not provide for reducing the cost of reimbursement to the state by the cost to expand or improve the highway.) Subchapter C. Feasibility of Regional Turnpike Projects Section 366.071(a)-(c). Permits RTAs to pay the expenses of studying the cost and feasibility of a proposed turnpike project with legally available revenue derived from an existing turnpike project or system, borrowing money, issuing bonds, or pledging future revenue from an existing turnpike. Money spent to study the feasibility of a future turnpike project must be reimbursed to the system it came from. Only surplus funds of one turnpike project may be used to study the feasibility of another turnpike project or system. (This language parallels TTA's existing statute under section 361.181, regarding TTA's expenses for studying the feasibility of turnpike projects, except that the TTA statute does not specify that only surplus funds from one project may be used to study the feasibility of another project.) Section 366.072(a)-(e). Permits RTAs to maintain a feasibility study fund and to transfer surplus revenue into the fund. Money in this fund may be used only to study the feasibility of issuing bonds for the acquisition and construction of a proposed turnpike project, financing the expansion of existing projects, or private financing of a turnpike project. (These provisions parallel the language in TTA's existing statute under section 361.182, requiring TTA to maintain a feasibility study fund, except that RTAs are not required to receive prior authorization from the commission to undertake a feasibility study.) Section 366.073(a)-(b). Permits municipalities, counties, local governments and private groups or a combination of these entities to pay all or part of the expenses of preparing bonds or studying a proposed project. If RTAs agree, they can pay back the funds advanced to it by a municipality, county, local government or private group without interest from the proceeds of the sale of bonds or toll revenue. (This section parallels TTA's existing statute under section 361.183, which allows other entities to pay for feasibility studies for TTA projects, except that TTA's statute does not provide for reimbursement without interest.) Subchapter D. Turnpike Financing Section 366.111(a)-(h). Describes the terms and uses of turnpike revenue bonds. Bonds may be used to pay all or part of the cost of a turnpike project or system or to refund any bonds previously issued. Section 366.111(e), allows RTAs to issue additional bonds on parity or subordinate to existing bonds. Section 366.111(g) states that bonds are a security under Chapter 8, Business and Commerce Code and section 366.111(h) affirms that bonds and income from the bonds are exempt from taxation. (This section parallels TTA's existing statute under section 361.171, with differences. Section 361.171 specifies that each TTA project shall be financed and built by a separate bond issue and that bond proceeds may not be divided between two or more projects.) Section 366.112(a)-(c). Grants RTAs authority to issue interim bonds. Section 366.113(a)-(c). Specifies that the principal and interest of bonds issued by an RTA are not a debt of the state or of a county, and are payable solely from a turnpike's revenue, agreement with the commission or a local government, or money derived from any other source available to RTAs. (Section 366.113(b) contains the same language as section 361.173(b) in the existing TTA statute.) Section 366.114 (a)-(b). Specifies that a lien on or a pledge of revenue from a turnpike project or system is enforceable at the time of payment for and delivery of the bond. Section 366.115 (a)-(e). Permits bonds issued under this chapter to be secured by a bond indenture. The indenture may pledge or assign the tolls and other revenue to be received but may not convey or mortgage any part of a turnpike project. The bond indenture may set forth the rights and remedies of the bondholders and the trustee and contain provisions for the security of the bondholders, including covenants. Permits an RTA's bond indentures to contain covenants establishing the RTA's duties relating to improvement and expansion of turnpike projects. Permits the covenants to prescribe events that constitute default, when the bonds may be declared due, and the rights, powers, liabilities or duties that arise on the breach of an authority's duties. Finally, states that an owner or trustee of a bond may enforce the owner's rights against the issuing authority, its employees, the authority's board, and is entitled to require the authority and board to impose and collect tolls sufficient to carry out any agreement and apply for and obtain the appointment of a receiver for the turnpike project or system. (This section parallels sections 361.176 and 361.177 of the existing TTA statute with some technical differences.) Section 366.116(a)-(d). Requires the attorney general to approve all bonds and bond proceedings before they become valid and enforceable. Section 366.117 (a)-(b). Allows a bank or trust company that acts as depository of bond proceeds or of revenue, to furnish indemnifying bonds, or to pledge securities that an authority requires. Bonds issued, under this section, by an RTA may secure the deposit of public money. Section 366.118. Applies all laws affecting the issuance of bonds by local entities to RTAs. To the extent of any conflict between those laws and this chapter, the provisions of chapter 366 prevail. Subchapter E. Acquisition, Construction, and Operation of Turnpike Projects Section 366.161. Allows RTAs to construct or extend turnpike projects in counties that belong to the RTA or a county with a continuation of an RTA turnpike project or system. Section 366.162(a)-(b). Allows RTAs to construct a turnpike project on right of way that it acquires or is provided by the commission. (RTAs would have the same powers as the commission in acquiring property, except as it is specifically limited by law, as provided for TTA under its existing statute in section 361.131.) Section 366.163(a)-(e). Allows RTAs to acquire real and other property as necessary or convenient for constructing, operating, maintaining, and expanding a turnpike project and specifies the types of property and rights that RTAs may acquire. RTAs may acquire real property by purchase and condemnation. In addition, covenants and restrictions on property obtained by RTAs are not binding and do not impair the ability to use the property turnpike purposes. Beneficiaries of these covenants and restrictions may not enjoin the division or RTA from using the property, but also are not prevented from seeking damages under the Constitution resulting from a taking of the property. An RTA must still meet its obligation under state law to compensate the state for acquiring or using property owned by or on behalf of the state. (This provision parallels the language in 361.132 of the existing TTA statute giving TTA the power to acquire real property as necessary for constructing and operating a turnpike project, except that the types of real property that TTA may acquire differs from the RTA language. In addition, the existing TTA statute does not provide for eliminating covenants and restrictions on property that TTA obtains.) Section 366.164(a)-(c). Allows RTAs to enter real property that is necessary and useful in connection with a turnpike project to conduct a survey or other examination. An entry by an RTA is not a trespass or an entry under a pending condemnation proceeding. Also, the RTA must pay for actual damages that result from an activity for which the property was entered. (This provision parallels section 361.233 of the existing TTA statute allowing TTA to enter property.) Section 366.165(a)-(d). Allows RTAs to acquire real property through condemnation under the same laws of condemnation of property for public use and specifies guidelines for RTAs' use of these condemnation powers, including the authority to mitigate an environmental effect that directly results from the construction, operation or maintenance of a turnpike project. An RTA may build supplemental facilities only on property that it purchases. The acquisition of commission property is a conversion of a state highway, subject to the requirements of such a conversion. (This provision parallels section 361.135 of the existing TTA statute authorizing TTA to acquire real property through condemnation.) Section 366.166(a)-(h). Establishes procedures for RTAs to file a declaration of taking and lists the elements that such a declaration must include. RTAs may not file a declaration of taking until the 91st day after the date the condemnation petition has been filed or after the special commissioners have made an award in the condemnation proceeding. RTAs filing a declaration of taking must either deposit funds with the court or post a bond to cover the value of the property and any damages to the remaining property, as of the filing date. (These provisions parallel section 361.137 of the existing TTA statute establishing TTA's procedures for filing a declaration of taking, except that the TTA language does not delay the filing of a declaration of taking by 90 days and it does not specifically provide for posting a bond to cover the value of property and it specifies that the date of the declaration is the date of taking for purposes of determining damages for the property owner.) In addition, property owners in an RTA condemnation proceeding may draw on deposits held by the court under the same terms as in special commissioners' awards in condemnation proceedings. Property owners have 20 days to respond to a condemnation petition and notice of declaration of taking to have the condemnation petition placed on the court's docket. Section 366.167(a)-(c). Requires RTAs to serve a copy of a declaration of taking on each person with an interest in the condemned property immediately after filing the declaration. RTAs may take possession of the property on the same terms as if a commissioners hearing had been conducted. RTAs may not take possession of a homestead for 31 days after serving the declaration of taking. An owner or tenant who refuses to give up property is subject to forcible entry and detainer. (This provision parallels section 361.138 of the existing TTA statute regarding taking possession of condemned property by TTA, except that the TTA language does not contain the reference to a commissioners hearing.) Section 366.168(a)-(b). Requires RTAs to pay owners for the value of the property and any damages to the remaining property if a turnpike project severs the owner's real property. RTAs may negotiate for the purchase and may sell and dispose of any severed real property that the RTA determines is not necessary or useful. (These provisions parallel section 361.136 of the existing TTA statute regarding the severance of an owner's real property by TTA, except that TTA is required to sell and dispose of severed real property within two years after the date of acquisition. In addition, the RTA language does not include the TTA requirement to maintain a passageway for the owner of severed real property under certain circumstances.) Section 366.169(a)-(e). Allows RTAs to use real property owned by the state or local government that the RTA considers necessary for turnpike projects and allows the state or local government to consent to the use of property for a turnpike project. Except as provided for converting state highways to toll projects, the state or local government may convey property, including highways, as necessary or convenient for turnpike purposes and may do so under normal action necessary for a conveyance, grant, or lease. The School Land Board retains the power to lease state-owned lands adjoining a turnpike project for oil, gas, or other minerals. An RTA must still meet its obligation under state law to compensate the state for acquiring or using property owned by or on behalf of the state, and its use of state property is subject to covenants and restrictions affecting the property. (These provisions parallel the sections 361.133 and 361.235 of TTA's existing statute providing for TTA's acquisition of rights in public real property and use of state real property.) Section 366.170(a)-(c). Prohibits RTAs from paying for public real property taken, except for state highways that are converted to toll projects and except for parks and playgrounds and state property which requires payment to the state for its use or acquisition. In addition, public property damaged by an authority must be restored or repaired. RTAs have full easements and rights of way through state or local government land as necessary to build and operate turnpike projects, except that they must still meet their obligation under other state law to compensate the state for the use or acquisition of an easement or right of way on state property. Also, an RTA's use of state property is subject to covenants and restrictions affecting the property. (This provision parallels TTA's existing statute in section 361.141 regarding compensation for and restoration of public property by TTA. In addition, TTA's statute also does not provide for full easements or rights of way through government land.) Section 366.171(a)-(g). Allows RTAs to adopt rules regarding public utility facilities involved in turnpike projects and requires utility owners or operators to relocate or remove utility facilities with costs paid by the RTA. RTAs may reduce the costs of utility relocation or removal if the relocation does not occur in timely fashion as agreed to by the utility and the RTA. In addition, if the utility does not relocate in a timely fashion, RTAs may relocate utilities at the utility owners expense. The same laws that govern electric, telecommunications, and gas corporations along county and public roads and waters also apply to their activities along a turnpike project or system built by an RTA. (These provisions parallel TTA's existing statute in section 361.234 which provides for the relocation of utility facilities for TTA projects, except that the TTA statute does not provide for reducing the costs of utility relocation if the relocation is not timely. In addition, TTA's statute contains language not applied to RTAs allowing utility owners and their successors to use and operate a facility in the new location on the same terms for as long as they had in the former location.) Section 366.172(a)-(b). Allows RTAs to convey a turnpike project to TxDOT, county, or local government corporation and requires an agreement to provide for the discharge and final payment of the authority's outstanding bonded indebtedness. An agreement to convey a turnpike project may not be prohibited under the bond proceedings for the project. (These provisions parallel sections 361.282 and 361.283 in TTA's existing statute allowing TTA to convey a turnpike project to a county or local government corporation subject to approval of TTA, the commission, and the governor.) Section 366.173(a)-(g). Specifies ways RTAs may collect revenue, including the imposition of tolls on its turnpikes, contract for the use of part of a turnpike project, or the sale or lease of a turnpike project, including the right of way along a turnpike, for purposes such as the location of a gas station, garage, or store. Tolls must be set to pay for upkeep of the turnpike project and to retire bonds issued for the turnpike project and are not subject to regulation by any state agency or local government. Tolls and other revenue must be set aside in a sinking fund to be used to pay principal and interest on bonds and other uses, subject to bond proceedings. Revenues from one turnpike project of an authority may be used to pay costs of other turnpike projects of the authority, as permitted under the bond proceedings. RTAs may not use turnpike revenue for any purpose that is not related to a turnpike project. (These provisions parallel section 361.173 in TTA's existing statute specifying sources of revenue for TTA, except that TTA's statute prohibits the use of revenue from one project to pay the cost of another without the approval of the county commissioners of each county in which the project is located. In addition, TTA's statute contains a provision not applied to RTAs requiring money in the sinking fund to be applied to the redemption of bonds at the applicable redemption price if this money is not timely used to purchase bonds for cancellation.) Section 366.174(a)-(d). Allows RTAs to maintain a revolving fund to be held in trust by a banking institution chosen by the authority. Money may be transferred into a revolving fund from any permissible source, including money from turnpike projects, money received by an authority that is not otherwise committed, advances authorized in the constitution, and grants or loans from the United States, another state, other political subdivision, or foreign governmental entity. The revolving fund may be used to finance turnpike projects, provide matching funds, provide credit enhancements for turnpike bonds, and other uses. Money spent from the revolving fund on a turnpike project must be reimbursed from funds generated by that same turnpike. (These provisions parallel TTA's existing statute in section 361.184 allowing TTA to maintain a revolving fund.) Section 366.175. Allows RTA's board to authorize the use surplus revenue of a turnpike project to pay the costs of another turnpike project, as long as the authority does not violate a bond resolution, trust agreement, or indenture governing the use of the surplus revenue. (This provision parallels TTA's existing statute in section 361.189 regarding the use of surplus revenue by TTA, except that surplus revenue from a TTA project under construction or in operation on January 1, 1993 (Dallas North Tollway and Mountain Creek Lake Bridge) may only be used for costs of construction, expansion, or maintenance or for transfers to TTA's feasibility fund. Surplus revenue from these projects may not be used for another project without the approval of the county commissioners of each county in which they are operated.) Section 366.176(a)-(b). Exempts RTAs from taxation on turnpike projects, authority property, or income from property and from fees associated with the development of turnpike projects. (This provision parallels TTA's existing statute in section 361.187 exempting TTA from taxation on turnpike projects, property, or income, except that the TTA statute does include the exemption from fees associated with turnpike development.) Section 366.177(a)-(c). Allows RTAs to impose a toll for transit over an existing free road or public highway transferred to the authority. RTAs may construct a grade separation where a turnpike project intersects a railroad or highway, paying the cost of any such construction. If feasible, RTAs must provide access for properties that had abutted a public road taken for a turnpike project and must pay damages for a denial of access to the road. (Section 361.232 in TTA's existing statute contains language regarding the effect of turnpike projects by TTA on existing roads that differs from the provisions for RTAs.) Section 366.178(a)-(i). Establishes the requirement for motor vehicles other than police or emergency vehicles to pay proper tolls. Persons who fail to pay the toll are liable for a fine up to $250 and an administrative fee of up to $100 to cover the authority's cost of collecting the toll. The owner of nonpaying vehicle must pay the toll and the administrative fee. Proof that the vehicle passed through a toll facility without paying the toll and proof of ownership of the vehicle establishes nonpayment by a registered owner. The court with jurisdiction over the violation assesses court costs in addition to fines and collects and forwards the toll and administrative fee to the RTA. It is a defense to nonpayment of a toll for motor vehicles that were reported stolen before the occurrence of the failure to pay or within eight hours of the discovery of the theft. Lessees of vehicles in violation are to be held responsible for nonpayment of tolls instead of the registered owners of leased vehicles. (These provisions parallel sections 361.252 to 361.254 of TTA's existing statute which provide for the assessment and collection of a $100 administrative fee and a $250 fine for failure to pay tolls on a TTA facility.) Section 366.179(a)-(b). Defines transponder and provides for the their use in assessing or collecting tolls by RTAs and provides for the seizure of stolen or insufficiently funded transponders. (This provision parallels section 361.255 of the existing TTA statute regarding the use and seizure of transponders for TTA toll facilities.) Section 366.180(a)-(c). Allows RTAs to designate a turnpike as a controlled-access roadway and allows RTAs to control access to its turnpike projects to and from nearby property or roadways and by types of vehicles. The denial of access to or from the state highway system is subject to approval by the commission. Section 366.181. Allows RTAs to promote the use of turnpike projects through advertising and marketing. Section 366.182(a)-(d). Requires RTAs to police and operate turnpike projects through toll takers and other RTA employees. RTAs may enter into agreements to develop turnpike projects and may contract with state or local governments for peace officers. (These provisions parallel TTA's existing statute in section 361.237 regarding the policing and operation of TTA projects.) Section 366.183. Requires an annual audit of RTAs with costs of the audit treated as part of the cost of constructing or operating a turnpike project. (Section 361.054 in TTA's existing statute contains the same requirement for TTA.) Section 366.184(a)-(b). Requires RTAs to set goals for awarding contracts to disadvantaged businesses and to try to identify disadvantaged businesses that may provide materials or services to RTAs and give those businesses access to the authority's bidding process. (TTA's existing statute in section 361.050 contains the same requirement for TTA.) Section 366.185(a)-(b). Requires RTA contracts involving public funds for the construction and maintenance of turnpike projects to be by competitive bid in which the contract is awarded to the lowest responsible bidder according to criteria and rules developed by the RTA. Subchapter F. Governance. Section 366.251(a)-(j). Provides for governance of an RTA authority by a board of directors with the commissioners court of each county in the authority appointing one director and the governor appointing three directors. Two of the governor's appointees must reside in a county that is in the RTA and the remaining governor appointee must reside in a county that is adjacent to a county in the RTA. Directors serve two-year terms, except that one group of directors on the initial board serve one-year terms. Directors must meet residency and other requirements for the appointment of board members. The directors must elect from among their members a presiding officer and an assistant and must select a board secretary and treasurer who do not need to be board members. A majority of directors serving on the board is a quorum and a majority vote of members attending a meeting is needed for board action. Section 366.252(a)-(c). Adds standard language developed by the Sunset Commission. Prohibits appointment to the board of an RTA if the person or the person's spouse is a licensee, conducts business with the authority, or otherwise has financial ties to the authority other than compensation for acquisition of turnpike right of way. Prohibits appointment to an RTA board if the person or person's spouse is an officer or employee of a related trade association or is a registered lobbyist. Also, defines Texas trade association. (Section 361.033 of TTA's existing statute contains the same provisions.) Section 366.253(a)-(c). Requires each member of an RTA's board of directors to execute a surety bond for $25,000 and the board secretary and treasurer to execute a bond for $50,000. Provides for the RTA to pay the expense of the bonds. (TTA's existing statute in section 361.034 contains the same surety bond requirements for TTA board members, except that the TTA statute requires approval of the bond by the governor.) Section 366.254(a)-(c). Adds standard language developed by the Sunset Commission. Defines grounds for removing a member of the board of directors and requires notification of the board's presiding officer who notifies the person who made the appointment that a potential ground for removal exists. Affirms that an action of the board is valid even if it is taken when a ground for removal exists for one of the board members. (TTA's existing statute in section 361.035 contains the same provisions for TTA's board with differences to account for its appointment by the governor.) Section 366.255. Specifies that RTA directors may be reimbursed for actual expenses incurred in performing their duties, but that they are not entitled to additional compensation. (TTA's existing statute in section 361.036 contains the same provisions for TTA.) Section 366.256. Specifies that an RTA's actions are the actions of its board and may be evidenced in any legal manner. Section 366.257. Adds standard language developed by the Sunset Commission. Requires RTAs to give the public reasonable opportunity to appear before the board regarding issues under the authority's jurisdiction. Requires RTAs to develop a plan that describes how persons who do not speak English or who have a disability may be provided reasonable access to programs. (TTA's existing statute in section 361.051 contains the same provision.). Section 366.258(a)-(d). Allows RTAs to indemnify directors, officers and former officers for costs incurred in connection with a claim against them in their official capacity. A court may assess indemnity against the RTAs if they do not fully indemnify, only if the court determines that the director or officer is not guilty of negligence or misconduct. Section 366.259(a)-(d). Requires RTAs to insure officers and employees from liability resulting from the use of equipment in developing turnpike projects. The form of the policy must be approved by the commissioner of insurance. The purchase of liability insurance is not a waiver of immunity of the RTA or counties from liability for torts or negligence of an officer or employee. Defines equipment. Section 366.260(a)-(c). Prohibits RTA directors and employees from having a contractual or financial interest in the RTA, other than the sale of right-of-way to the RTA. Makes violators subject to a civil penalty of up to $1,000. (Section 361.041 of TTA's existing statute contains the same provision, except that it does not specifically exclude right-of-way sales.) Section 366.261(a)-(c). Requires RTAs to prepare a five-year strategic plan each evennumbered year providing information determined by the commissioners courts of the counties in the RTA. In addition, RTAs must file an annual report with the commissioners court of each county in the RTA, and representatives of the RTA board and the administrative head must appear before a commissioners court at the court's invitation to present the report. The annual report must include a description of turnpike revenue bond issuances expected in the next year, the RTA's financial condition, project schedules, and the RTA's performance under its most recent strategic plan. Also, RTAs must give notice to county commissioners of each county in the RTA 90 days before the issuance of revenue bonds. (Section 361.048(c) of TTA's existing statute requires TTA to report annually to the governor, legislature, and Legislative Budget Board and provides other language not applied to RTAs.) Section 366.262(a)-(d). Allows an RTA's board of directors, committees, and staff to conduct meetings by telephone conference call, subject to the same notice requirements as other meetings. The public must have access to these meetings and tape recordings and written minutes of these meetings. (Section 361.0485 of TTA's existing statute provides the same authority for the TTA board to conduct meetings by telephone conference call, but does not include references to meetings of board committees or TTA's staff.) Subchapter G. Aid for Regional Turnpike Projects Section 366.301(a)-(d). Allows TxDOT to help pay costs for developing turnpike projects through an agreement with an authority and allows the use of federal funds for this purpose. TxDOT may use its own or other personnel, including consulting engineers, to conduct feasibility studies. Any cost incurred by TxDOT or the authority is part of the cost of the turnpike project. State highway funds must be repaid from revenues of the turnpike project on which the state highway funds were expended. Section 366.302(a)-(e). Allows RTAs to enter into agreements with public or private entities, including the United States and Mexico and other states of the U.S. or Mexico to develop turnpike projects. RTAs may allow investment of public and private money, including debt and equity participation, to finance these functions. RTAs may not incur a financial obligation on behalf of a private entity that constructs turnpikes. RTAs may negotiate provisions in a development agreement, including the design, financing, construction, operation, and maintenance and other professional and consulting services relating to a turnpike project according to RTA standards. In addition, RTAs and a county in an RTA are not liable for any financial obligation of a turnpike project because of the participation of a private entity. (These provisions parallel several sections of the existing TTA statute. Sections 361.301 and 361.307 contain the provisions for TTA to enter into agreements for the development of turnpike projects with differences from the RTA language in the specific types of activities that may be pursued through these agreements. Section 361.305 requires TTA to negotiate the terms of a development agreement with a private entity, but lists negotiating provisions that differ from those listed for RTAs. TTA's statute also allows TTA to invest the money to finance these functions. Section 361.304 contains the same provisions prohibiting TTA from incurring financial obligation on behalf of a private entity and eliminating any financial liability from a turnpike project.) Section 366.303(a)-(e). Allows a local governmental entity, other than a nonprofit corporation, to issue bonds or agree with an RTA to issue bonds or make payments to develop a turnpike project. The local entity may use revenue from any available source and to collect taxes to pay interest on bonds and to provide a sinking fund for the redemption of the bonds. The term of any agreement between an authority and local government entity may not exceed 40 years. Section 366.304. Allows RTAs to enter into any agreement necessary and convenient to achieve their purposes. SECTION 7.26. Adds Section 411.132(a)-(b), Government Code. Authorizes RTAs to have access to criminal history record information maintained by the Department of Public Safety regarding RTA employees and applicants for employment. The language also provides for the confidentiality of this information. SECTION 7.27 (a)-(f). Provides for the establishment of the North Texas Tollway Authority (NTTA) as a regional toll authority consisting of Collin, Dallas, Denton, and Tarrant counties with the power to extend turnpike projects and to expand its jurisdiction only to specified counties that are adjacent to the counties that comprise NTTA. The membership of the initial board of directors of NTTA is three members appointed by the governor, one member appointed from each of the counties of NTTA, and two members who are county judges of two of the counties of NTTA. Of the governor's appointees, two must be from a county of the authority and one must be from either Parker, Ellis, or Johnson County. The county judge members of the initial board serve a one-year term, and at the end of their term, their seats are not refilled, reducing the board from nine to seven members. Three members are appointed to one-year terms, with their successors appointed to staggered, two-year terms. The terms of the initial directors of NTTA begin on September 1, 1997. SECTION 7.28. Repeals the following sections in the existing statute for the Texas Turnpike Authority: Section 361.003 providing a separate sunset date for TTA; Section 361.038 providing standard sunset language regarding conflicts of interest for TTA employees; Section 361.039 providing career ladders and merit pay for TTA employees; Section 361.040 requiring TTA to develop a policy for equal employment opportunities; Section 361.041 prohibiting contracts by a TTA director or employee; Section 361.044 allowing TTA to sue and be sued; Section 361.045 specifying the TTA expenses that may or may not be incurred; Section 361.047 regarding travel expenses for TTA employees; Section 361.048 requiring filing minutes, budgets, and reports with the legislature and governor; Section 361.139 requiring relocation assistance for displaced property owners; Section 361.190 specifying the type of expenses the commission can incur involving turnpike projects; Section 361.284 regarding the eligibility of a turnpike project to become part of the state highway system; and Section 361.331(e) defining "Council of Government" because its authority is being elsewhere replaced by metropolitan planning organizations. ARTICLE 8: TRANSITION, EFFECTIVE DATE, AND EMERGENCY SECTION 8.01 (a)-(e). Abolishes the Texas Turnpike Authority and establishes the Texas Turnpike Authority division of TxDOT. The North Texas Tollway Authority takes possession of all assets, including all facilities, funds and investments related to a project currently controlled by TTA. NTTA also assumes all obligations of TTA and the rules adopted by TTA relating to the operation of its projects remain in effect as a rule of NTTA until superseded by an action by NTTA. TTA employees may decide whether to become an employee of NTTA or the turnpike division within TxDOT. SECTION 8.02 (a)-(b). Requires NTTA to pay the turnpike division of TxDOT $10 million no later than December 31, 1997 as consideration for the transfer of properties from TTA. NTTA must hire an independent auditor to audit its records to identify NTTA funds that belong to the TxDOT turnpike division and must transfer all funds identified as belonging to the TxDOT by December 31, 1998. SECTION 8.03. Provides that NTTA is a successor agency to TTA under the state Constitution and that any agreement between TTA and any federal, state, or local governmental entity relating to an asset, right, or obligation transferred to NTTA is binding as a successor to TTA. Provides that TxDOT is a successor to TTA concerning all assets, rights, other property, duties, and obligations not transferred to NTTA. SECTION 8.04. Specifies that the changes in qualifications for members of the Transportation Commission and the Motor Vehicle Commission apply only to members appointed on or after September 1, 1997. The changes to members' qualifications do not prevent a person who serves before September 1, 1997 from being reappointed if that person meets the qualifications effective on that date. SECTION 8.05 (a)-(b). Provides for staggering the terms for the six initial members of the board of directors for the turnpike division within TxDOT appointed by the governor. Also, provides for the current board of directors of TTA to serve as the board for this division until a majority of members of the new board have been appointed and qualified for office. SECTION 8.06. Establishes the effective date of the Act as September 1, 1997. SECTION 8.07. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE 1.Deletes language that would allow the department to provide additional relocation assistance to transferred employees. The language would have authorized assistance up to $15,000 for 25 employees per year. 2.Changes language requiring the department to use savings from the vehicle maintenance privatization pilot project, and other appropriated funds, for county road assistance of at least $20 million annually and redirects the savings from the pilot project to the state infrastructure bank. (Page 6, Line 19 and Page 17, Line 18) 3.Adds language requiring revenue bonds issued by the transportation commission through the state infrastructure bank to be reviewed by the Texas Bond Review Board. (Page 19, Line 23) 4.Deletes language requiring the department to install, operate, and maintain an emergency call box system for the state highway system. Language in the engrossed version would have established an Emergency Telephone Call Box System Advisory Committee, authorized the assessment of a $1 fee on motor vehicle insurance policies, and applied the Sunset Act to the call box program. 5.Adds language requiring the department to conduct a sound wall barrier study to determine the practicality of implementing a statewide noise abatement program. Directs the department to use funds already allocated for this purpose by a transportation commission minute order. (Page 37, Line 10) 6.Changes language authorizing the transportation commission to adopt rules to implement a floral mosaic living logo pilot program by specifying rules that must be adopted by the transportation commission regulating the program. In addition, specifies that the pilot program is limited to counties with a population of 500,000 or greater. (Page 11, Line 2) 7.Adds language requiring the transportation commission to enter into contracts to erect and maintain major agricultural interest signs at appropriate locations along rural highways. Requires the transportation commission to authorize the director to grant variances on a caseby-case basis and specifies conditions under which the director may grant a variance. Exempts a small business from the regulation of outdoor signs on rural roads if the business sign meets certain conditions. Specifies when the department may issue a permit for an offpremise sign. (Page 39, Line 2 thru Page 41, Line 26) 8.Adds language specifying that the transportation commission must determine that a roadway segment has heavy passenger and commercial traffic for the department to charge a toll on a nontoll segment of the state highway system for maintenance costs. (Page 55, Line 12) 9.Adds language requiring the transportation commission and the department to find that a toll facility by a private entity must fill a demonstrated public need before the department may participate in its cost and before the private entity may be considered a successor agency to TTA under the constitution. (Page 55, Line 18 and Page 63, Line 15) 10.Adds a reference to require the new powers granted the department under Subchapter E of Chapter 222, specifically temporary tolls and cost participation in toll projects, be undertaken by the turnpike division within the department. (Page 57, Line 19) 11.Adds standard language developed by the Sunset Commission. Requires the Turnpike Authority Board members within the department to receive training before being eligible to take office. (Page 60, Line 1 thru Page 61, Line 1) 12.Deletes language specifying the level of compensation for the administrative head of the turnpike authority. (Page 61, after Line 12) 13.Deletes language that would allow the turnpike division and RTAs to condemn property necessary for supplemental facilities and reinstates existing language of the TTA statute that authorizes the construction of supplemental facilities only on real property that is purchased. (Page 66, Line 26 and Page 100, Line 14) 14.Prohibits the TxDOT turnpike division and RTAs from filing a declaration of taking before the 91st day after the date the condemnation petition has been filed. Under current law, TTA may file the declaration of taking at the same time or after the condemnation petition, but may not file the declaration after the special commissioners have made an award in the condemnation proceeding. (Page 68, Line 8 and Page 101, Line 1) 15.Adds language to make it clear that advances from the state highway fund to the turnpike division within the department are to be repaid as required under the constitution. (Page 69, Line 19) 16.Changes language authorizing two or more counties to create an RTA, subject to commission approval, if one of the counties has a population of at least 300,000, deleting references to counties bordering Mexico or the Gulf of Mexico. Commission approval is still not required if one of the counties has a population of 1.5 million or more. (Page 80, Line 13) 17.Specifies that RTAs are subject to Sunset review but that they are not abolished under the Sunset Act. An RTA created before January 1, 2000 is subject to Sunset review in 2003 and subsequently in the year that TxDOT is under review. An RTA created on or after January 1, 2000 is reviewed at the time that TxDOT is under review. (Page 81, Line 15) 18.Specifies that rules adopted by an RTA are subject the administrative procedure act (APA) and APA provisions for declaratory judgment in determining the validity or applicability of a rule, except that action may be brought only in a district court of a county located in the RTA. (Page 83, Line 23) 19.Adds language to allow an RTA to contract with the department to operate a turnpike project on behalf of the department. (Page 84, Line 16) 20.Adds language to the general powers of RTAs to require RTAs to adopt written procedures governing its procurement of goods and services, consistent with general laws applicable to the authority. (Page 85, Line 9) 21.Deletes language that would have authorized RTAs to build turnpike projects in counties that do not have a continuation of an RTA turnpike project or system if the commissioners court of that county and the commission approve the project. 22.Deletes language that would have authorized RTAs to acquire public or private real and other property for the "design" and "financing" of turnpike projects. 23.Adds language specifying that RTA must still meet its obligation under state law to compensate the state for acquiring or using property owned by or on behalf of the state despite a provision in the bill that covenants and restrictions on property obtained by RTAs are not binding and do not impair the ability to use the property for turnpike purposes. (Page 99, Line 6) 24.Adds language to require an RTA to pay for actual damages that result when it enters property in connection with a turnpike project. (Page 99, Line 16) 25.Adds language to allow an RTA to condemn property to mitigate an environmental effect that directly results from the construction, operation, or maintenance of a turnpike project under its authority or condemn property to restore public or private property that is damaged or destroyed. (Page 100, Line 6) 26.Adds language specifying that, despite the authority for RTAs to acquire and have easements across state land, the RTA must meet its obligation under other state law to compensate the state for the use or acquisition of state property, easement, or right of way. In addition, the RTA's use of state property is subject to covenants and restrictions affecting the property. (Page 104, Line 24 thru Page 105, Line 2 and Page 105, Line 20) 27.Adds language to allow RTAs to pay for state property which requires payment to the state for its use or acquisition. This change would expand the exceptions from the prohibition against RTAs paying for public real property taken beyond state highways that are converted to toll projects and parks and playgrounds as listed in the engrossed version. (Page 105, Line 9) 28.Adds language to specify that a utility relocation must occur in a manner that does not "unreasonably" impede the development of the turnpike project. In addition, includes damages incurred by the utility to its facilities as part of the cost of the utility relocation that an RTA must pay. (Page 106, Lines 11 and 17) 29.Changes language for an RTA to specify the time limit for a utility relocation to make it a limit agreed to by the owner of the utility and an RTA. In addition, the utility owner and an RTA may not unreasonably withhold approval for an agreement. (Page 106, Line 25 thru Page 107, Line 1) 30.Adds language to specify that the same laws that govern gas utilities along public highways, roads, and waters also apply to gas utility activities along a turnpike project or system built by an RTA. (Page 107, Line 16) 31.Adds language to require the North Texas Tollway Authority (NTTA) to pay the turnpike division within the department $10 million no later than December 31, 1997 as consideration for the transfer of properties from TTA. The engrossed version required NTTA to pay the department an amount agreed to by the authority and the department for assets transferred no later than October 1, 1997. In addition, the substitute requires NTTA to hire an independent auditor to audit its records to identify NTTA funds that belong to the TxDOT turnpike division and must transfer all funds identified as belonging to the department by December 31, 1998. (Page 133, Lines 5 and 16)