By Marchant H.B. No. 3335
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation of the Texas Turnpike Authority, a
1-3 state agency; the authorization of the establishment of regional
1-4 tollway authorities; and the transfer of certain assets and
1-5 liabilities of the Texas Turnpike Authority to the North Texas
1-6 Tollway Authority, a regional tollway authority.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1.01. Section 361.003, Transportation Code, is
1-9 amended to read as follows:
1-10 Sec. 361.003. Sunset Provision. The Texas Turnpike
1-11 Authority is subject to Chapter 325, Government Code (Texas Sunset
1-12 Act). Unless continued in existence as provided by that chapter,
1-13 the authority is abolished and this chapter expires September 1,
1-14 [1997] 2009.
1-15 SECTION 1.02. Section 361.001, Transportation Code, is
1-16 amended by adding the following new subdivisions (5), (6), and (7):
1-17 (5) "Commission" means the Texas Transportation
1-18 Commission.
1-19 (6) "Department" means the Texas Department of
1-20 Transportation.
1-21 (7) "Regional tollway authority" means a regional
1-22 tollway authority created under Chapter 366, Transportation Code.
2-1 SECTION 1.03. Section 361.055, Transportation Code, is
2-2 amended to read as follows:
2-3 Sec. 361.055. Successor Agency to Authority. The following
2-4 are considered successor agencies to the Texas Turnpike Authority
2-5 for purposes of Article III, Section 52-b, Texas Constitution:
2-6 (1) a county, local government corporation, or
2-7 municipality that leases, buys, operates, or otherwise receives a
2-8 [Turnpike Project] turnpike project under [Section 12c of this Act]
2-9 Subchapter H; [and]
2-10 (2) a county, a local government corporation serving a
2-11 county, or an adjacent county in a joint turnpike authority with a
2-12 county whose population is more than 1.5 million that constructs a
2-13 toll road, toll bridge, or [Turnpike Project.] turnpike project;
2-14 (3) a regional tollway authority;
2-15 (4) a public or private entity authorized by the
2-16 commission to receive funds from the department for the
2-17 construction, maintenance, or operation of toll projects.
2-18 SECTION 1.04. The title of Subchapter H of Chapter 361 is
2-19 amended to read as follows:
2-20 SUBCHAPTER H. TRANSFER OF TURNPIKE PROJECT TO
2-21 COUNTY [OR], LOCAL GOVERNMENT CORPORATION,
2-22 MUNICIPALITY, OR REGIONAL TOLLWAY AUTHORITY
2-23 SECTION 1.05. Section 361.281, Transportation Code, is
2-24 amended to read as follows:
2-25 Sec. 361.281. Applicability of Subchapter. (a) This
2-26 section applies only to:
2-27 (1) a county, or a local government corporation
3-1 serving a county, or an adjacent county in a joint turnpike
3-2 authority with a county whose population is more than 1.5 million,
3-3 or a regional tollway authority as to which the [Authority]
3-4 authority, the [Texas Transportation Commission] commission, and
3-5 the governor approve the transfer of a [Turnpike Project] turnpike
3-6 project as being in the best interests of the state and the
3-7 affected county or counties; and
3-8 (2) a municipality with a population of more than
3-9 120,000 that is adjacent to the United Mexican States if the
3-10 [Authority] authority, the [Texas Transportation Commission]
3-11 commission, and the governor approve the transfer of a [Turnpike
3-12 Project] turnpike project as being in the best interests of the
3-13 state and the municipality.
3-14 (b) The [Authority] authority may lease, sell, or otherwise
3-15 convey a [Turnpike Project] turnpike project to a county, local
3-16 government corporation created under the [Texas Transportation
3-17 Corporation Act (Article 1528l, Vernon's Texas Civil Statutes)]
3-18 Chapter 431, [or] municipality, or regional tollway authority. A
3-19 county, local government corporation, [or] municipality, or
3-20 regional tollway authority may lease, buy, or otherwise receive a
3-21 [Turnpike Project] turnpike project.
3-22 SECTION 1.06. Section 362.055, Transportation Code, is
3-23 amended to read as follows:
3-24 Sec. 362.055. EXCEPTION. This subchapter does not apply to:
3-25 (1) a county that has a population of more than 1.5
3-26 million;
3-27 (2) a local government corporation created under
4-1 Chapter 431 by a county that has a population of more than 1.5
4-2 million; or
4-3 (3) a regional tollway authority created under Chapter
4-4 366.
4-5 SECTION 2.01. The following provisions are added to the
4-6 Texas Transportation Code as Chapter 366:
4-7 CHAPTER 366. REGIONAL TOLLWAY AUTHORITIES
4-8 SUBCHAPTER A. GENERAL PROVISIONS, APPLICABILITY, AND DEFINITIONS
4-9 Sec. 366.001. SHORT TITLE. This chapter may be cited as the
4-10 Regional Tollway Authority Act.
4-11 Sec. 366.002. PURPOSES; LIBERAL CONSTRUCTION. (a) The
4-12 purposes of this chapter are:
4-13 (1) the expansion and improvement of transportation
4-14 facilities and systems in this state;
4-15 (2) the creation of regional tollway authorities to
4-16 secure and acquire rights-of-way for urgently needed transportation
4-17 systems and to plan, design, construct, operate, expand, extend,
4-18 and modify those systems; and
4-19 (3) the reduction of burdens and demands on the
4-20 limited funds available to the commission and an increase in the
4-21 effectiveness and efficiency of the commission.
4-22 (b) This chapter shall be liberally construed to effect its
4-23 purposes.
4-24 Sec. 366.003. DEFINITIONS. In this chapter:
4-25 (a) "Authority" means a regional tollway authority organized
4-26 under this chapter.
4-27 (b) "Board" means the board of directors of an authority
5-1 organized under this chapter.
5-2 (c) "Bond" means and includes all bonds, certificates,
5-3 notes, and other obligations of an authority authorized by this
5-4 chapter or any other statute or the Texas Constitution.
5-5 (d) "Bond indenture" means an indenture of trust or trust
5-6 agreement entered into between an authority and a corporate trustee
5-7 securing the payment of bonds.
5-8 (e) "Bond proceedings" means a bond resolution and any bond
5-9 indenture authorized by the bond resolution, any credit agreement
5-10 entered into in connection with such bonds or the payments to be
5-11 made thereunder, and any other agreement between an authority and
5-12 another person providing security for the payment of such bonds.
5-13 (f) "Bond resolution" means an order or resolution of an
5-14 authority's board authorizing the issuance of bonds.
5-15 (g) "Bondholder" means the owner of bonds and includes the
5-16 trustee acting on behalf of a bondholder pursuant to the terms of a
5-17 bond indenture.
5-18 (h) "Commission" means the Texas Transportation Commission.
5-19 (i) "Constituent county" means, with respect to an
5-20 authority, a county whose territory is included within that
5-21 authority's jurisdiction under Section 366.031;
5-22 (j) "Cost" means those costs included under Section 366.004.
5-23 (k) "Credit agreement" means a credit agreement, as defined
5-24 by and authorized by Article 717q, Vernon's Texas Civil Statutes,
5-25 entered into by an authority in connection with the issuance or
5-26 payment of bonds.
5-27 (l) "Department" means the Texas Department of
6-1 Transportation.
6-2 (m) "Highway" means a road, highway, farm-to-market road, or
6-3 street under the supervision of the state or a political
6-4 subdivision of the state.
6-5 (n) "Interim bond" means a temporary bond, with or without
6-6 coupons, that may be converted to a definitive bond.
6-7 (o) "Local governmental entity" means a political
6-8 subdivision of the state, including a municipality or a county, a
6-9 political subdivision of a county, a group of adjoining counties, a
6-10 district organized or operating under Section 52, Article III or
6-11 Section 59, Article XVI of the Texas Constitution, a nonprofit
6-12 corporation, including a transportation corporation created under
6-13 Chapter 431 of the Texas Transportation Code.
6-14 (p) "Revenues" means the tolls, rents, and other funds
6-15 received by an authority from the ownership or operation of a
6-16 turnpike project.
6-17 (q) "System" means a turnpike project or any combination of
6-18 turnpike projects designated as a system by the board pursuant to
6-19 Section 366.034.
6-20 (r) "Turnpike project" means a highway of any number of
6-21 lanes, with or without grade separations, owned or operated by an
6-22 authority under this chapter and any improvement, extension, or
6-23 expansion to that highway, and includes:
6-24 (1) an improvement to relieve traffic congestion and
6-25 promote safety;
6-26 (2) a bridge, tunnel, overpass, underpass,
6-27 interchange, service road, ramp, entrance plaza, approach, or toll
7-1 house;
7-2 (3) an administration, storage, or other building the
7-3 authority considers necessary to operate the turnpike project;
7-4 (4) a service station, hotel, motel, restaurant,
7-5 parking area or structure, rest stop, park, and other improvement
7-6 or amenity an authority considers necessary, useful, or beneficial
7-7 for the operation of a turnpike project; and
7-8 (5) property rights, easements, and interests an
7-9 authority acquires to construct or operate the turnpike project.
7-10 Sec. 366.004. CONSTRUCTION COSTS DEFINED. (a) The cost of
7-11 acquisition, construction, improvement, extension, or expansion of
7-12 a turnpike project or system under this chapter includes the cost
7-13 of:
7-14 (1) the actual acquisition, construction, improvement,
7-15 extension, or expansion of the turnpike project or system;
7-16 (2) the acquisition of real property, rights-of-way,
7-17 property rights, easements, and other interests in real property;
7-18 (3) machinery and equipment;
7-19 (4) interest payable before, during, and after
7-20 acquisition, construction, improvement, extension, or expansion as
7-21 provided in the bond proceedings;
7-22 (5) traffic estimates, revenue estimates, engineering
7-23 and legal services, plans, specifications, surveys, appraisals,
7-24 construction cost estimates, and other expenses necessary or
7-25 incident to determining the feasibility of the construction,
7-26 improvement, extension, or expansion;
7-27 (6) necessary or incidental administrative, legal, and
8-1 other expenses;
8-2 (7) compliance with laws, regulations, and
8-3 administrative rulings;
8-4 (8) financing; and
8-5 (9) expenses related to the initial operation of the
8-6 turnpike project or system.
8-7 (b) Costs attributable to a turnpike project or system and
8-8 incurred prior to the issuance of bonds to finance the turnpike
8-9 project or system may be reimbursed from the proceeds of sale of
8-10 the bonds.
8-11 (Sections 366.005 to 366.030 reserved for expansion
8-12 SUBCHAPTER B. CREATION AND POWERS OF REGIONAL TOLLWAY AUTHORITIES
8-13 Sec. 366.031. CREATION AND EXPANSION OF A REGIONAL TOLLWAY
8-14 AUTHORITY. (a) Two or more counties, acting through their
8-15 respective commissioners courts and without state approval,
8-16 supervision, or regulation, may by orders passed by each
8-17 commissioners court create a regional tollway authority authorized
8-18 under this chapter, provided that:
8-19 (1) one of the counties must have a population of not
8-20 less than 1,500,000; and
8-21 (2) each of such counties must be adjacent to at least
8-22 one other constituent county of the authority being created.
8-23 (b) A county, acting through its commissioners court and
8-24 without state approval, supervision, or regulation may by
8-25 resolution propose to an established authority that said county's
8-26 territory be included within the jurisdiction of that authority;
8-27 provided, that such county must either (1) be adjacent to at least
9-1 one constituent county of the authority receiving such a proposal,
9-2 or (2) have a turnpike project of that authority situated in or
9-3 planned for such county. Upon approval by the board of an
9-4 authority receiving such a proposal, the proposing county shall be
9-5 deemed to be within the jurisdiction of that authority.
9-6 Sec. 366.032. NATURE OF A REGIONAL TOLLWAY AUTHORITY. (a)
9-7 An authority created under this chapter is a body politic and
9-8 corporate and a political subdivision of the State of Texas.
9-9 (b) An authority is a governmental unit as that term is used
9-10 in Chapter 101, Civil Practice and Remedies Code.
9-11 (c) The exercise by an authority of the powers conferred by
9-12 this chapter in the acquisition, design, financing, construction,
9-13 operation, and maintenance of a turnpike project or system is:
9-14 (1) in all respects for the benefit of the people of
9-15 the counties in which an authority operates and of the people of
9-16 this state, for the increase of their commerce and prosperity, and
9-17 for the improvement of their health and living conditions and
9-18 public safety; and
9-19 (2) an essential governmental function of the state.
9-20 (d) The operations of an authority are governmental, not
9-21 proprietary, functions.
9-22 Sec. 366.033. GENERAL POWERS. (a) To promote the purposes
9-23 of this chapter, an authority, acting through its board, without
9-24 state approval, supervision, or regulation, may:
9-25 (1) adopt by-laws for the regulation of its affairs
9-26 and the conduct of its business;
9-27 (2) adopt an official seal;
10-1 (3) study, evaluate, design, acquire, construct,
10-2 maintain, repair, and operate turnpike projects, individually or as
10-3 one or more systems;
10-4 (4) acquire, hold, and dispose of property in the
10-5 exercise of its powers and the performance of its duties under this
10-6 chapter, provided that no property comprising a part of a turnpike
10-7 project or a system shall be subject to condemnation or eminent
10-8 domain by any person or governmental entity;
10-9 (5) enter into contracts or operating agreements with
10-10 similar authorities or agencies of the United States, a state of
10-11 the United States, the United Mexican States, or a state of the
10-12 United Mexican States;
10-13 (6) enter into contracts or agreements necessary or
10-14 incidental to its duties and powers under this chapter;
10-15 (7) cooperate and work directly with property owners,
10-16 governmental agencies and officials to support an activity required
10-17 to promote and/or develop a turnpike project or system;
10-18 (8) employ and set the compensation of administrators,
10-19 consulting engineers, attorneys, accountants, construction and
10-20 financial experts, superintendents, managers, full-time and
10-21 part-time employees, agents, consultants, and such other persons as
10-22 the authority considers necessary or useful;
10-23 (9) receive loans, gifts, grants, and other
10-24 contributions for the construction of a turnpike project or system
10-25 and receive contributions of money, property, labor, or other
10-26 things of value from any source (including, without limitation, the
10-27 United States, a state of the United States, the United Mexican
11-1 States, a state of the United Mexican States, the commission, the
11-2 department, the Texas Turnpike Authority, any subdivision of the
11-3 state, or any other local governmental entity or any private party)
11-4 to be used for the purposes for which the grants or contributions
11-5 are made, and enter into any agreement necessary therefor;
11-6 (10) install, construct, maintain, repair, renew,
11-7 relocate, and remove public utility facilities in, on, along, over,
11-8 or under a turnpike project;
11-9 (11) organize a corporation under Chapter 431,
11-10 Transportation Code, for the promotion and development of turnpike
11-11 projects and systems;
11-12 (12) adopt and enforce rules not inconsistent with
11-13 this chapter for the use of any turnpike project or system,
11-14 including traffic and other public safety rules;
11-15 (13) enter into leases, operating agreements, service
11-16 agreements, licenses, franchises, and similar agreements with
11-17 public or private parties governing such parties' use of all or any
11-18 portion of a turnpike project and the rights and obligations of the
11-19 authority with respect thereto; and
11-20 (14) do all things necessary or appropriate to carry
11-21 out the powers expressly granted by this chapter.
11-22 (b) An authority may, if requested by the commission or the
11-23 Texas Turnpike Authority, perform any function not specified by
11-24 this chapter to promote and/or develop turnpike projects and
11-25 systems in this state.
11-26 (c) An authority may sue and be sued and plead and be
11-27 impleaded in its own name.
12-1 (d) An authority may rent, lease, franchise, license, or
12-2 otherwise make portions of its properties available for use by
12-3 others in furtherance of its powers under this chapter by
12-4 increasing the feasibility or the revenues of a turnpike project or
12-5 system.
12-6 (e) An authority and any local governmental entity may enter
12-7 into a contract pursuant to which the authority will operate a
12-8 turnpike project or system on behalf of the local governmental
12-9 entity. The payments to be made to an authority under such a
12-10 contract shall constitute operating expenses of the facility or
12-11 system that is to be operated under such contract, and any such
12-12 contract may extend for the number of years the parties specify
12-13 therein.
12-14 Sec. 366.034. ESTABLISHMENT OF TURNPIKE SYSTEMS. (a) If an
12-15 authority determines that the traffic needs of the counties in
12-16 which it operates and the traffic needs of the surrounding region
12-17 could be most efficiently and economically met by jointly operating
12-18 two or more turnpike projects as one operational and financial
12-19 enterprise, it may create a system comprised of those turnpike
12-20 projects. An authority may create more than one system and may
12-21 combine two or more systems into one system. An authority may
12-22 thereafter finance, acquire, construct, and operate additional
12-23 turnpike projects as additions to and expansions of a system if the
12-24 authority determines that the turnpike project could most
12-25 efficiently and economically be acquired and constructed if it was
12-26 a part of the system and that the addition will benefit the system.
12-27 (b) The revenues of a system shall be accounted for
13-1 separately and shall not be commingled with the revenue of a
13-2 turnpike project which is not a part of the system or with the
13-3 revenue or another system.
13-4 Sec. 366.035. CONVERSION OF STATE HIGHWAY SYSTEM PROJECTS.
13-5 (a) If the commission finds that the most feasible and economic
13-6 means to accomplish necessary expansion, improvements, or
13-7 extensions to the state highway system is the conversion to a
13-8 turnpike project of a segment of the free state highway system,
13-9 then any segment located in any constituent county of an authority
13-10 or in county in which an authority operates a turnpike project or
13-11 in any county adjacent to any such counties may, upon approval of
13-12 the governor and the affected authority, be transferred by order of
13-13 the commission to that authority. An authority may receive such
13-14 segment of highway, thereafter to be owned, operated, and
13-15 maintained as a turnpike project or system or a part of a turnpike
13-16 project or system under this chapter.
13-17 (b) The authority shall reimburse the commission for the
13-18 cost of the transferred highway, unless the commission finds that
13-19 the transfer will result in substantial net benefits to the state,
13-20 the department, and the traveling public that exceed that cost.
13-21 The cost shall include the total dollar amount expended by the
13-22 department for the original construction of the highway, including
13-23 all costs associated with the preliminary engineering and design
13-24 engineering for plans, specifications, and estimates, the
13-25 acquisition of necessary right-of-way, and actual construction of
13-26 the highway and all necessary appurtenant facilities. Costs
13-27 anticipated to be expended to expand, improve, or extend the
14-1 highway shall be deducted from the costs to be reimbursed to the
14-2 commission.
14-3 (c) The commission shall, coincident with the transfer,
14-4 remove the segment of highway from the designated state highway
14-5 system and shall subsequently have no liability, responsibility, or
14-6 duty for the maintenance or operation of the highway.
14-7 (d) Before transferring a segment of the state highway
14-8 system under this section, the commission shall conduct a public
14-9 hearing for the purpose of receiving comments from interested
14-10 persons concerning the proposed transfer. Notice of the hearing
14-11 shall be published in the Texas Register, one or more newspapers of
14-12 general circulation, and a newspaper, if any, published in the
14-13 constituent counties of the applicable authority.
14-14 (e) The commission shall adopt rules implementing this
14-15 section, such rules to include criteria and guidelines for the
14-16 approval of a transfer of a highway.
14-17 (f) An authority shall adopt rules providing criteria and
14-18 guidelines for approving the acceptance of a highway under this
14-19 section.
14-20 (Sections 366.036 to 366.070 reserved for expansion
14-21 SUBCHAPTER C. FEASIBILITY OF REGIONAL TURNPIKE PROJECTS
14-22 Sec. 366.071. EXPENDITURES FOR FEASIBILITY STUDIES. (a)
14-23 Notwithstanding any other provision of this chapter, an authority
14-24 may pay the expenses of studying the cost and feasibility and any
14-25 other expenses relating to the preparation and issuance of bonds
14-26 for a proposed turnpike project or system by:
14-27 (1) using lawfully available revenue derived from an
15-1 existing turnpike project or system;
15-2 (2) borrowing money and issuing bonds or entering into
15-3 a loan agreement payable out of lawfully available revenue
15-4 anticipated to be derived from the operation of an existing
15-5 turnpike project or system; and
15-6 (3) pledging to the payment of such bonds or loan
15-7 agreements lawfully available revenue anticipated to be derived
15-8 from the operation of an existing turnpike project or system or
15-9 revenue lawfully available to the authority from another source.
15-10 (b) Money spent under this section for the proposed turnpike
15-11 project or system shall be reimbursed to the turnpike project or
15-12 system from which the money was spent from the proceeds of bonds
15-13 issued for the acquisition and construction of the proposed
15-14 turnpike project or system.
15-15 (c) The use of any funds of a turnpike project or system to
15-16 study the feasibility of another turnpike project or system or used
15-17 to repay any funds used for that purpose shall not constitute an
15-18 operating expense of the turnpike project or system producing the
15-19 revenues and shall only be paid from the surplus funds of such
15-20 turnpike project or system.
15-21 Sec. 366.072. FEASIBILITY STUDY FUND. (a) An authority may
15-22 maintain a feasibility study fund. The fund is a revolving fund
15-23 held in trust by a banking institution chosen by the authority and
15-24 shall be kept separate from the money for any turnpike project or
15-25 system.
15-26 (b) An authority may transfer an amount from a surplus fund
15-27 established for a turnpike project or system to the authority's
16-1 feasibility study fund if the remainder of the surplus fund is not
16-2 less than any minimum amount required by the bond proceedings to be
16-3 retained for that turnpike project or system.
16-4 (c) Money in the feasibility study fund shall be used to pay
16-5 the expenses of studying the cost and feasibility and any other
16-6 expenses relating to:
16-7 (1) the preparation and issuance of bonds for the
16-8 acquisition and construction of a proposed turnpike project or
16-9 system;
16-10 (2) the financing of the improvement, extension, or
16-11 expansion of an existing turnpike project or system; and
16-12 (3) private participation, as authorized by applicable
16-13 law, in the financing of a proposed turnpike project or system, the
16-14 refinancing of an existing turnpike project or system, or the
16-15 improvement, extension, or expansion of a turnpike project or
16-16 system.
16-17 (d) Money spent under Subsection (c) for a proposed turnpike
16-18 project or system shall be reimbursed from the proceeds of turnpike
16-19 revenue bonds issued for, or other proceeds that may be used for,
16-20 the acquisition, construction, improvement, extension, expansion,
16-21 or operation of said turnpike project or system.
16-22 (e) For a purpose described by Subsection (c), an authority
16-23 may borrow money and issue promissory notes or other
16-24 interest-bearing evidences of indebtedness payable out of its
16-25 feasibility study fund, pledging money in the fund or to be placed
16-26 in the fund.
16-27 Sec. 366.073. FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,
17-1 OTHER LOCAL GOVERNMENTAL ENTITY, OR PRIVATE GROUP. (a) One or
17-2 more municipalities, counties, or local governmental entities, or a
17-3 combination of municipalities, counties, and local governmental
17-4 entities, or a private group or combination of individuals in this
17-5 state may pay all or part of the expenses of studying the cost and
17-6 feasibility and any other expenses relating to:
17-7 (1) the preparation and issuance of bonds for the
17-8 acquisition and construction of a proposed turnpike project or
17-9 system by an authority;
17-10 (2) the improvement, extension, or expansion of an
17-11 authority's existing turnpike project or system; or
17-12 (3) the use of private participation under applicable
17-13 law in connection with the acquisition, construction, improvement,
17-14 expansion, extension, maintenance, repair, and/or operation of a
17-15 turnpike project or system by an authority.
17-16 (b) Money spent under Subsection (a) for an authority's
17-17 proposed turnpike project or system is reimbursable without
17-18 interest and with the consent of the authority to the person paying
17-19 the expenses described in Subsection (a) out of the proceeds from
17-20 turnpike revenue bonds issued for or other proceeds that may be
17-21 used for the acquisition, construction, improvement, extension,
17-22 expansion, or operation of the turnpike project or system.
17-23 (Sections 366.074 to 366.110 reserved for expansion
17-24 SUBCHAPTER D. TURNPIKE FINANCING
17-25 Sec. 366.111. TURNPIKE REVENUE BONDS. (a) An authority, by
17-26 adoption of a bond resolution, may authorize the issuance of bonds
17-27 to pay all or part of the cost of a turnpike project or a system or
18-1 to refund any bonds previously issued for such turnpike project or
18-2 system or for a turnpike project or system which will become a part
18-3 of another system.
18-4 (b) The bonds of each issue shall have the following terms
18-5 or characteristics as determined in the bond resolution:
18-6 (1) be dated;
18-7 (2) bear interest at the rate or rates and from the
18-8 dates, as authorized by law, or bear no interest;
18-9 (3) mature at the time or times, not exceeding 40
18-10 years from their date or dates; and
18-11 (4) be made redeemable before maturity, at the price
18-12 or prices and under the terms set forth in the bond resolution.
18-13 (c) An authority may sell the bonds at public or private
18-14 sale, in the manner, and for the price, it determines to be in the
18-15 best interest of the authority.
18-16 (d) The proceeds of each bond issue shall be disbursed in
18-17 the manner and under the restrictions, if any, the authority
18-18 provides in the bond resolution.
18-19 (e) Additional bonds may in like manner be issued to pay the
18-20 costs of a turnpike project or system. Unless otherwise provided
18-21 in the bond resolution, the additional bonds shall be on a parity,
18-22 without preference or priority, with bonds previously issued and
18-23 payable from the revenues of such turnpike project or system. In
18-24 addition, an authority may issue bonds for a turnpike project or
18-25 system secured by a lien on the revenues of the turnpike project or
18-26 system subordinate to the lien on such revenues securing other
18-27 bonds issued for such turnpike project or system.
19-1 (f) If the proceeds of a bond issue exceed the cost of the
19-2 turnpike project or system for which the bonds were issued, the
19-3 surplus shall be segregated from the other funds of the authority
19-4 and used only for the purposes specified in the bond resolution.
19-5 (g) Bonds issued and delivered under this chapter and
19-6 interest coupons on the bonds are a security under Chapter 8,
19-7 Business & Commerce Code.
19-8 (h) Bonds issued under this chapter and income from the
19-9 bonds, including any profit made on the sale or transfer of the
19-10 bonds, are exempt from taxation in this state.
19-11 Sec. 366.112. INTERIM BONDS. (a) An authority may, before
19-12 issuing definitive bonds, issue interim bonds, with or without
19-13 coupons, exchangeable for definitive bonds.
19-14 (b) The interim bonds may be authorized and issued in
19-15 accordance with this chapter, without regard to the requirements,
19-16 restrictions, or procedural provisions contained in any other law.
19-17 (c) A bond resolution authorizing interim bonds may provide
19-18 that the interim bonds shall recite that the bonds are issued under
19-19 this chapter. The recital is conclusive evidence of the validity
19-20 and the regularity of the bonds' issuance.
19-21 Sec. 366.113. PAYMENT OF BONDS; STATE AND COUNTY CREDIT NOT
19-22 PLEDGED. (a) The principal of, interest on, and any redemption
19-23 premium on bonds issued by an authority are payable solely from:
19-24 (1) the revenue of the turnpike project or system for
19-25 which the bonds were issued, including tolls pledged to pay the
19-26 bonds;
19-27 (2) payments made under an agreement with the
20-1 commission or a local governmental entity as provided by Subchapter
20-2 G of this chapter;
20-3 (3) money derived from any other source available to
20-4 the authority, other than money derived from a turnpike project
20-5 that is not part of the same system or money derived from a
20-6 different system, except to the extent that the surplus revenues of
20-7 a turnpike project or system have been pledged for such purpose;
20-8 (4) amounts received under a credit agreement relating
20-9 to the turnpike project or system for which the bonds were issued.
20-10 (b) Bonds issued under this chapter do not constitute a debt
20-11 of the state or any of the constituent counties of an authority or
20-12 a pledge of the faith and credit of the state or any of such
20-13 counties. Each bond must contain on its face a statement to the
20-14 effect that the state, the authority, and the constituent counties
20-15 of the authority, are not obligated to pay the bond or the interest
20-16 on the bond from a source other than the amount pledged to pay the
20-17 bond and the interest on the bond, and neither the faith and credit
20-18 and taxing power of the state nor the faith and credit and taxing
20-19 power of the constituent counties of the authority are pledged to
20-20 the payment of the principal of or interest on the bond.
20-21 (c) An authority may not incur financial obligations that
20-22 cannot be paid from revenue derived from owning or operating the
20-23 authority's turnpike projects and systems or from other revenue
20-24 provided by law.
20-25 Sec. 366.114. EFFECT OF LIEN. (a) A lien on or a pledge of
20-26 revenue from a turnpike project or system under this chapter or on
20-27 a reserve, replacement, or other fund established in connection
21-1 with a bond issued under this chapter:
21-2 (1) is enforceable at the time of payment for and
21-3 delivery of the bond;
21-4 (2) applies to an item on hand or subsequently
21-5 received;
21-6 (3) applies without physical delivery of an item or
21-7 other act; and
21-8 (4) is enforceable against any person having any
21-9 claim, in tort, contract, or other remedy, against the applicable
21-10 authority without regard to whether the person has notice of the
21-11 lien or pledge.
21-12 (b) A bond resolution is not required to be recorded except
21-13 in the regular records of the authority.
21-14 Sec. 366.115. BOND INDENTURE. (a) Bonds issued under this
21-15 chapter may be secured by a bond indenture between the authority
21-16 and a corporate trustee that is a trust company or a bank that has
21-17 the powers of a trust company.
21-18 (b) A bond indenture may pledge or assign the tolls and
21-19 other revenue to be received but may not convey or mortgage any
21-20 part of a turnpike project or system.
21-21 (c) A bond indenture may:
21-22 (1) set forth the rights and remedies of the
21-23 bondholders and the trustee;
21-24 (2) restrict the individual right of action by
21-25 bondholders as is customary in trust agreements or indentures of
21-26 trust securing corporate bonds and debentures; and
21-27 (3) contain provisions the authority determines
22-1 reasonable and proper for the security of the bondholders,
22-2 including covenants:
22-3 (A) establishing the authority's duties relating
22-4 to:
22-5 (i) the acquisition of property;
22-6 (ii) the construction, maintenance,
22-7 operation, and repair of, and insurance for, a turnpike project or
22-8 system; and
22-9 (iii) custody, safeguarding, and
22-10 application of money;
22-11 (B) prescribing events that constitute default;
22-12 (C) prescribing terms on which any or all of the
22-13 bonds become or may be declared due before maturity; and
22-14 (D) relating to the rights, powers, liabilities,
22-15 or duties that arise on the breach of an authority's duty.
22-16 (d) The expenses incurred in carrying out a trust agreement
22-17 may be treated as part of the cost of operating the turnpike
22-18 project.
22-19 (e) In addition to all other rights by mandamus or other
22-20 court proceeding, an owner or trustee of a bond issued under this
22-21 chapter may enforce the owner's rights against an issuing
22-22 authority, that authority's employees, its board, or an agent or
22-23 employee of its board and is entitled to:
22-24 (1) require the authority and the board to impose and
22-25 collect tolls, charges, and other revenues sufficient to carry out
22-26 any agreement contained in the bond proceedings; and
22-27 (2) apply for and obtain the appointment of a receiver
23-1 for the turnpike project or system.
23-2 Sec. 366.116. APPROVAL OF BONDS BY ATTORNEY GENERAL. (a)
23-3 An authority shall submit to the attorney general for examination a
23-4 transcript of proceedings relating to bonds authorized under this
23-5 chapter. The transcript shall include the bond proceedings and any
23-6 contract securing or providing revenues for the payment of the
23-7 bonds.
23-8 (b) If the attorney general finds that the bonds, including
23-9 the bond proceedings and any supporting contract, are authorized by
23-10 law, the attorney general shall approve them and deliver to the
23-11 comptroller a copy of the legal opinion of the attorney general
23-12 stating that approval and the record of proceedings relating to the
23-13 authorization of the bonds.
23-14 (c) On receipt of the legal opinion of the attorney general
23-15 and the record of proceedings relating to the authorization of the
23-16 bonds, the comptroller shall register the record of proceedings.
23-17 (d) After approval by the attorney general, the bonds, the
23-18 bond proceedings, and any supporting contract are valid,
23-19 enforceable, and incontestable in any court or other forum for any
23-20 reason and are binding obligations according to their terms for all
23-21 purposes.
23-22 Sec. 366.117. FURNISHING OF INDEMNIFYING BONDS OR PLEDGE OF
23-23 SECURITIES.
23-24 (1) A bank or trust company incorporated under the
23-25 laws of this state that acts as depository of the proceeds of bonds
23-26 or of revenue may furnish indemnifying bonds or pledge securities
23-27 that an authority requires.
24-1 (2) Bonds of an authority may secure the deposit of
24-2 public funds of the state or a political subdivision of the state
24-3 to the extent of the lesser of the face value of the bonds or their
24-4 market value.
24-5 Sec. 366.118. APPLICABILITY OF OTHER LAW; CONFLICTS. All
24-6 laws affecting the issuance of bonds by local governmental
24-7 entities, including Chapter 656, Acts of the 68th Legislature,
24-8 Regular Session, 1983, as amended (Article 717q, Vernon's Texas
24-9 Civil Statutes), Chapter 3, Acts of the 61st Legislature, Regular
24-10 Session, 1969, as amended (Article 717k-2, Vernon's Texas Civil
24-11 Statutes), Chapter 845, Acts of the 67th Legislature, Regular
24-12 Session, 1981, as amended (Article 717k-6, Vernon's Texas Civil
24-13 Statutes), and Chapter 53, Acts of the 70th Legislature, 2nd Called
24-14 Session, 1987, as amended (Article 717k-8, Vernon's Texas Civil
24-15 Statutes) are applicable to and apply to all bonds issued pursuant
24-16 to this chapter; provided, however, in the event of any conflict
24-17 between such laws and this chapter, the provisions of this chapter
24-18 prevail.
24-19 (Sections 366.119 to 366.160 reserved for expansion
24-20 SUBCHAPTER E. ACQUISITION, CONSTRUCTION, AND OPERATION OF
24-21 TURNPIKE PROJECTS
24-22 Sec. 366.161. TURNPIKE PROJECTS EXTENDING INTO OTHER
24-23 COUNTIES. An authority may acquire, construct, operate, maintain,
24-24 expand or extend a turnpike project in:
24-25 (1) a constituent county;
24-26 (2) a county in which the authority operates or is
24-27 constructing a turnpike project, provided the turnpike project in
25-1 the affected county is a continuation of the authority's turnpike
25-2 project or system extending from an adjacent county; or
25-3 (3) a county in which the authority operates or is
25-4 constructing a turnpike project that is not a continuation of the
25-5 authority's turnpike project or system, provided the commissioners
25-6 court of such county and the commission have approved the project.
25-7 Sec. 366.162. POWERS AND PROCEDURES OF AUTHORITY IN
25-8 ACQUIRING PROPERTY. (a) An authority may construct or improve a
25-9 turnpike project on real property, including a right-of-way
25-10 acquired by the authority or provided to the authority for that
25-11 purpose by the commission, the Texas Turnpike Authority, a
25-12 political subdivision of this state, or any other local
25-13 governmental entity.
25-14 (b) Except as otherwise provided by this chapter, an
25-15 authority has the same powers and may use the same procedures as
25-16 the commission in acquiring property.
25-17 Sec. 366.163. ACQUISITION OF PROPERTY. (a) An authority
25-18 may acquire in the name of the authority public or private real and
25-19 other property it determines necessary or convenient for the
25-20 design, financing, construction, operation, maintenance, expansion,
25-21 or extension of a turnpike project or for otherwise carrying out
25-22 this chapter.
25-23 (b) The property an authority may acquire under this
25-24 subchapter includes all or any portion of, and rights in and to,
25-25 the following:
25-26 (1) public or private land, streets, alleys,
25-27 rights-of-way, parks, playgrounds, and reservations;
26-1 (2) franchises;
26-2 (3) easements;
26-3 (4) licenses; and
26-4 (5) other interests in real and other property.
26-5 (c) An authority may acquire the real property by any
26-6 method, including purchase and condemnation. An authority may
26-7 purchase public or private real property on the terms and at the
26-8 price the authority and the property owner consider reasonable.
26-9 (d) Property acquired in any manner by an authority shall be
26-10 acquired free and clear of all covenants, conditions, restrictions,
26-11 and limitations, and the beneficiaries thereof shall not be
26-12 entitled to enforce such covenants, conditions, restrictions, and
26-13 limitations against the authority.
26-14 Sec. 366.164. RIGHT OF ENTRY. (a) To acquire property
26-15 useful in connection with a turnpike project, an authority may
26-16 enter on any real property, water, or premises to make a survey,
26-17 geotechnical evaluation, sounding, or examination.
26-18 (b) An entry under Subdivision (1) is not:
26-19 (1) a trespass; or
26-20 (2) an entry under a pending condemnation proceeding.
26-21 Sec. 366.165. CONDEMNATION OF REAL PROPERTY. (a) Subject
26-22 to Subsection (c), an authority may acquire public or private real
26-23 property in the name of the authority by the exercise of the power
26-24 of condemnation under the laws applicable to the exercise of that
26-25 power on property for public use if:
26-26 (1) the authority and the property owner cannot agree
26-27 on a reasonable price for the property; or
27-1 (2) the property owner is legally incapacitated,
27-2 absent, unknown, or unable to convey title.
27-3 (b) An authority may condemn real property that the
27-4 authority determines is:
27-5 (1) necessary or appropriate to construct or to
27-6 efficiently operate a turnpike project;
27-7 (2) necessary to restore public or private property
27-8 damaged or destroyed;
27-9 (3) necessary for access, approach, and interchange
27-10 roads;
27-11 (4) necessary for supplemental facilities of the
27-12 authority;
27-13 (5) necessary to provide proper drainage and ground
27-14 slope for a turnpike project; or
27-15 (6) necessary otherwise to carry out this chapter.
27-16 (c) An authority's acquisition of any real or other property
27-17 of the commission under this section or any other section of this
27-18 chapter, or an authority's relocation, rerouting, disruption, or
27-19 alteration of any facility of the commission shall be deemed a
27-20 conversion of a state highway under Section 366.035 and shall be
27-21 subject to all requirements and approvals required with respect to
27-22 a conversion under that section.
27-23 Sec. 366.166. DECLARATION OF TAKING. (a) An authority may
27-24 file a declaration of taking with the clerk of the court:
27-25 (1) in which the authority files a condemnation
27-26 petition under Chapter 21, Property Code; or
27-27 (2) to which the case is assigned.
28-1 (b) An authority may file the declaration of taking
28-2 concurrently with or subsequent to the petition, but may not file
28-3 the declaration after the special commissioners have made an award
28-4 in the condemnation proceeding.
28-5 (c) The declaration of taking must include:
28-6 (1) a specific reference to the legislative authority
28-7 for the condemnation;
28-8 (2) a description and plot plan of the real property
28-9 to be condemned, including the following information if applicable:
28-10 (A) the municipality in which the property is
28-11 located;
28-12 (B) the street address of the property; and
28-13 (C) the lot and block number of the property;
28-14 (3) a statement of the property interest to be
28-15 condemned;
28-16 (4) the name and address of each property owner that
28-17 the authority can obtain after reasonable investigation and a
28-18 description of the owner's interest in the property; and
28-19 (5) a statement that immediate possession of all or
28-20 part of the property to be condemned is necessary for the timely
28-21 construction of a turnpike project.
28-22 (d) A deposit to the registry of the court of an amount
28-23 equal to the appraised fair market value, as determined by the
28-24 authority, of the property to be condemned and any damages to the
28-25 remainder thereof must accompany the declaration of taking.
28-26 (e) In lieu of the deposit under (d), at its option, the
28-27 authority may, concurrently with the declaration of a taking,
29-1 tender in favor of the owner of the subject property a bond or
29-2 other security in an amount sufficient to secure the owner for the
29-3 value of the property taken and damages to remaining property,
29-4 provided the authority obtains the court's approval.
29-5 (f) The date on which the declaration is filed is the date
29-6 of taking for the purpose of assessing the value of the property
29-7 taken and damages to any remaining property to which an owner is
29-8 entitled.
29-9 (g) An owner may draw upon the deposit held by the court
29-10 under (d) above on the same terms and conditions as are applicable
29-11 under state law to a property owner's withdrawal of a
29-12 commissioners' award deposited under Section 21.021(a)(1), Property
29-13 Code.
29-14 (h) A property owner that is a defendant in an eminent
29-15 domain action filed by an authority under this chapter shall have
29-16 twenty (20) days from the date of service of process of both a
29-17 condemnation petition and a notice of declaration of taking to give
29-18 notice to the court in which such action is pending of the
29-19 defendant's desire to have the condemnation petition placed on the
29-20 court's docket in the same manner as other cases pending in such
29-21 court. Upon receipt of timely notice from the defendant, the court
29-22 in which the eminent domain action is pending shall place the case
29-23 on its docket in the same manner as other cases pending in such
29-24 court.
29-25 Sec. 366.167. POSSESSION OF PROPERTY. (a) Immediately on
29-26 the filing of a declaration of taking, an authority shall serve a
29-27 copy of the declaration on each person possessing an interest in
30-1 the condemned property by a method prescribed by Section 21.016(d),
30-2 Property Code. The authority shall file evidence of the service
30-3 with the clerk of the court. On filing of that evidence, the
30-4 authority may take possession of the property on the same terms as
30-5 if a commissioners hearing had been conducted, pending the
30-6 litigation.
30-7 (b) If the condemned property is a homestead or a portion of
30-8 a homestead as defined by Section 41.002, Property Code, an
30-9 authority may not take possession sooner than the 31st day after
30-10 the date of service under Subsection (a).
30-11 (c) A property owner or tenant who refuses to vacate the
30-12 property or yield possession is subject to forcible entry and
30-13 detainer under Chapter 24, Property Code.
30-14 Sec. 366.168. SEVERANCE OF REAL PROPERTY. (a) If an
30-15 authority's turnpike project severs a property owner's real
30-16 property, the authority shall pay:
30-17 (1) the value of the property acquired; and
30-18 (2) the damages, if any, to the remainder of the
30-19 owner's property caused by the severance, including damages caused
30-20 by the inaccessibility of one tract from the other.
30-21 (b) At its option, an authority may negotiate for and
30-22 purchase the severed real property or any part of the severed real
30-23 property if the authority and the property owner agree on terms for
30-24 the purchase. An authority may sell and dispose of severed real
30-25 property that it determines is not necessary or useful to the
30-26 authority. Severed property shall be appraised before being
30-27 offered for sale by an authority.
31-1 Sec. 366.169. ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY.
31-2 (a) An authority may use real property, including submerged land,
31-3 streets, alleys, and easements, owned by the state or a local
31-4 governmental entity that the authority considers necessary for the
31-5 construction or operation of a turnpike project.
31-6 (b) The state or a local governmental entity having charge
31-7 of public real property may consent to the use of the property for
31-8 a turnpike project.
31-9 (c) Except as provided in Section 366.035 respect to
31-10 conversion of a segment of the state highway system to a toll
31-11 facility, the state or a local governmental entity may without
31-12 advertising, court order, or other action or formality other than
31-13 the regular and formal action of the state authority or local
31-14 governmental entity concerned, convey, grant, lend, or lease to an
31-15 authority real property, including highways and other real property
31-16 already devoted to public use, and also including rights or
31-17 easements in real property, that may be necessary, convenient, or
31-18 appropriate to accomplish the authority's purposes, including,
31-19 without limitation, the construction or operation of a turnpike
31-20 project.
31-21 (d) This section does not deprive the School Land Board of
31-22 the authority to execute leases for the development of oil, gas,
31-23 and other minerals on state-owned real property adjoining a
31-24 turnpike project or in tidewater limits. The leases may provide
31-25 for directional drilling from the adjoining property or tidewater
31-26 area.
31-27 Sec. 366.170. COMPENSATION FOR AND RESTORATION OF PUBLIC
32-1 PROPERTY. (a) Except as provided in Section 366.035 and Section
32-2 366.165(c) with respect to a conversion of a segment of the state
32-3 highway system, an authority shall not pay compensation for public
32-4 real property, parkways, streets, highways, alleys, or reservations
32-5 it takes, except for parks and playgrounds, or as otherwise
32-6 provided in this chapter.
32-7 (b) Public property damaged in the carrying out of powers
32-8 granted by this chapter shall be restored or repaired and placed in
32-9 its original condition as nearly as practicable.
32-10 (c) An authority has full easements and rights-of-way
32-11 through, across, under, and over any property owned by the state or
32-12 any local governmental that are necessary or convenient to
32-13 construct, acquire, or efficiently operate a turnpike project or
32-14 system under this chapter.
32-15 Sec. 366.171. PUBLIC UTILITY FACILITIES. (a) An authority
32-16 may adopt rules for the installation, construction, operation,
32-17 maintenance, repair, renewal, relocation, and removal of a public
32-18 utility facility in, on, along, over, or under a turnpike project.
32-19 (b) If an authority determines it is necessary that a public
32-20 utility facility located in, on, along, over, or under a turnpike
32-21 project be relocated in the turnpike project, removed from the
32-22 turnpike project, or carried along or across the turnpike project
32-23 by grade separation, the owner or operator of the utility facility
32-24 shall relocate or remove the facility in accordance with the
32-25 requirements of the authority and in a manner that does not impede
32-26 the design, financing, construction, operation, or maintenance of
32-27 the turnpike project. The authority, as a part of the cost of the
33-1 turnpike project or the cost of operating the turnpike project,
33-2 shall pay the cost of the relocation, removal, or grade separation,
33-3 including the cost of:
33-4 (1) installing the facility in a new location or
33-5 locations;
33-6 (2) interests in real property, and other rights
33-7 acquired to accomplish the relocation or removal; and
33-8 (3) maintenance of grade separation structures.
33-9 (c) The authority may reduce the total costs to be paid by
33-10 the authority under this Subsection (b) by 10 percent for each
33-11 30-day period or portion of a 30-day period by which the relocation
33-12 exceeds the limit specified by the authority. If an owner or
33-13 operator of a public utility facility cannot or will not timely
33-14 remove or relocate same as required under Subsection (b), the
33-15 authority may do so at the expense of the public utility. If the
33-16 authority determines that a delay in relocation is the result of
33-17 circumstances beyond the control of the utility, full costs shall
33-18 be paid by the authority.
33-19 (d) Notwithstanding anything in this chapter to the
33-20 contrary, Chapter 228, Acts of the 51st Legislature, Regular
33-21 Session, 1949 (Article 1436a, Vernon's Texas Civil Statutes),
33-22 applies to the erection, construction, maintenance, and operation
33-23 of lines and poles owned by a corporation described by Section 1 of
33-24 that Act over, under, across, on, and along a turnpike project or
33-25 system constructed by an authority. An authority has the powers
33-26 and duties delegated to the commissioners court by Chapter 228,
33-27 Acts of the 51st Legislature, Regular Session, 1949 (Article 1436a,
34-1 Vernon's Texas Civil Statutes) and an authority shall have
34-2 exclusive jurisdiction and control of utilities located in its
34-3 rights-of-way.
34-4 (e) Notwithstanding anything in this chapter to the
34-5 contrary, the laws of this state applicable to the use of public
34-6 roads, streets, and waters of this state by a telephone and
34-7 telegraph corporation apply to the erection, construction,
34-8 maintenance, location, and operation of a line, pole, or other
34-9 fixture by a telephone and telegraph corporation over, under,
34-10 across, on, and along a turnpike project or system constructed by
34-11 an authority under this chapter.
34-12 (f) In this section "public utility facility" means a track,
34-13 pipe, main, conduit, cable, wire, tower, pole, or other item of
34-14 plant, equipment or an appliance of a public utility or other
34-15 person.
34-16 Sec. 366.172. AWARDING OF CONTRACTS. All contracts proposed
34-17 to be made by an authority that require the expenditure of public
34-18 monies for the construction or maintenance of a turnpike project
34-19 shall be let by competitive bid, wherein the contract is awarded to
34-20 the lowest responsible bidder that complies with the authority's
34-21 criteria regarding the work, materials, and other matters covered
34-22 by the contract. The authority shall promulgate rules governing
34-23 procedures for the bidding, proposing, and/or awarding of such
34-24 contracts and other contracts let by the authority.
34-25 Sec. 366.173. LEASE, SALE, OR CONVEYANCE OF TURNPIKE
34-26 PROJECT. (a) An authority may lease, sell, or convey in another
34-27 manner a turnpike project to the department, the Texas Turnpike
35-1 Authority, a county or a local government corporation created under
35-2 Chapter 431.
35-3 (b) An agreement to lease, sell, or convey a turnpike
35-4 project under this section must provide for the discharge and final
35-5 payment or redemption of the authority's outstanding bonded
35-6 indebtedness for the turnpike project and must not be prohibited
35-7 under the bond proceedings applicable to the system, if any, of
35-8 which the turnpike project is a part.
35-9 Sec. 366.174. REVENUE. (a) An authority may:
35-10 (1) impose tolls for the use of each of its turnpike
35-11 projects and systems and the different parts or sections of each of
35-12 its turnpike projects and systems; and
35-13 (2) contract with a person for the use of part of a
35-14 turnpike project or system or lease or sell part of a turnpike
35-15 project or system, including the right-of-way adjoining the paved
35-16 portion, for any purpose, including placing on the adjoining
35-17 right-of-way a gas station, garage, store, hotel, restaurant,
35-18 parking facility, railroad track, billboard, livestock pasturage,
35-19 telephone line or facility, telecommunication line or facility,
35-20 data transmission line or facility, and electric line or facility,
35-21 under terms set by and agreeable to the authority.
35-22 (b) Tolls shall be set so that the aggregate of tolls from
35-23 an authority's turnpike project or system, together with other
35-24 revenues of the turnpike project or system:
35-25 (1) provides a fund sufficient to pay:
35-26 (A) the cost of maintaining, repairing, and
35-27 operating the turnpike project or system; and
36-1 (B) the principal of and interest on the bonds
36-2 issued for the turnpike project or system as those bonds become due
36-3 and payable; and
36-4 (2) creates reserves for the purposes listed under
36-5 Subsection (b)(1) above.
36-6 (c) Tolls are not subject to supervision or regulation by
36-7 any state agency or other local governmental entity.
36-8 (d) Tolls and other revenue derived from the turnpike
36-9 project or system for which bonds were issued, except the part
36-10 necessary to pay the cost of maintenance, repair, and operation and
36-11 to provide reserves for those costs as may be provided in the bond
36-12 proceedings, shall be set aside at regular intervals as may be
36-13 provided in the bond resolution or trust agreement in a sinking
36-14 fund that is pledged to and charged with the payment of:
36-15 (1) interest on the bonds as it becomes due;
36-16 (2) principal of the bonds as it becomes due;
36-17 (3) necessary charges of paying agents for paying
36-18 principal and interest; and
36-19 (4) the redemption price or the purchase price of
36-20 bonds retired by call or purchase as provided by the bond
36-21 proceedings.
36-22 (e) Use and disposition of money to the credit of the
36-23 sinking fund are subject to the bond proceedings.
36-24 (f) To the extent permitted under the applicable bond
36-25 proceedings, revenues from one turnpike project of an authority may
36-26 be used to pay the cost of other turnpike projects of the
36-27 authority.
37-1 (g) An authority may not utilize revenues from its turnpike
37-2 projects in any manner not permitted under this chapter, and no
37-3 revenues shall be applied to any purpose or to pay any cost that is
37-4 unrelated to, or not reasonably anticipated to be for the benefit
37-5 of, an authority's turnpike projects.
37-6 Sec. 366.175. AUTHORITY REVOLVING FUND. (a) An authority
37-7 may maintain a revolving fund to be held in trust by a banking
37-8 institution chosen by the authority separate from any other funds
37-9 and administered by the authority's board.
37-10 (b) An authority may transfer into its revolving fund money
37-11 from any permissible source, including:
37-12 (1) money from a turnpike project so long as the
37-13 transfer from that turnpike project does not diminish the funds
37-14 available for such project or the system, if any, of which it is a
37-15 part, to an amount less than any minimum required to be retained by
37-16 the bond proceedings pertaining to such project or system;
37-17 (2) money received by the authority from any source
37-18 and not otherwise committed, including funds from the transfer of a
37-19 turnpike project or sale of authority assets;
37-20 (3) advances authorized under Section 52-b, Article
37-21 III, Texas Constitution; and
37-22 (4) contributions, loans, grants, or assistance from
37-23 the United States, another state, a political subdivision of this
37-24 state, a foreign governmental entity, including, without
37-25 limitation, the United Mexican States or a state of the United
37-26 Mexican States, a local governmental entity, any private
37-27 enterprise, or any person.
38-1 (c) The authority may use money in the revolving fund to:
38-2 (1) finance the acquisition, construction,
38-3 maintenance, or operation of a turnpike project or system,
38-4 including the extension, expansion, or improvement thereof;
38-5 (2) provide matching funds required in connection with
38-6 any federal, state, local, or private aid, grant, or other funding,
38-7 including aid or funding by or with public-private partnerships;
38-8 (3) provide credit enhancement either directly or
38-9 indirectly for bonds issued to acquire, construct, extend, expand,
38-10 or improve a turnpike project or system;
38-11 (4) provide security for or payment of future or
38-12 existing debt for the design, acquisition, construction, operation,
38-13 maintenance, extension, expansion, or improvement of a turnpike
38-14 project or system;
38-15 (5) borrow money and issue promissory notes or other
38-16 indebtedness payable out of the revolving fund for any purpose
38-17 authorized by this chapter; and
38-18 (6) provide for any other reasonable purpose that
38-19 assists in the financings of an authority as authorized by this
38-20 chapter.
38-21 (d) Money spent or advanced from the revolving fund for a
38-22 turnpike project or system shall be reimbursed from the funds of
38-23 that turnpike project or system and there shall be a reasonable
38-24 expectation of such repayment at the time of authorization.
38-25 Sec. 366.176. USE OF SURPLUS REVENUE. The board of an
38-26 authority may by resolution authorize the use of surplus revenue of
38-27 a turnpike project or system to pay the costs of another turnpike
39-1 project or system other than a project financed under Subchapter G.
39-2 The board may in the resolution prescribe terms for the use of the
39-3 revenue, including the pledge of the revenue, but may not take an
39-4 action under this section that violates, impairs, or is
39-5 inconsistent with a bond resolution, trust agreement, or indenture
39-6 governing the use of the surplus revenue.
39-7 Sec. 366.177. EXEMPTION FROM TAXATION OR ASSESSMENT. (a)
39-8 An authority is exempt from taxation of or assessments on:
39-9 (1) a turnpike project or system;
39-10 (2) property the authority acquires or uses under this
39-11 chapter; or
39-12 (3) income from property described by Subsection
39-13 (a)(1) or (b)(2).
39-14 (b) An authority is exempt from payment of development fees,
39-15 utility connection fees, assessments, and service fees imposed or
39-16 assessed by a county, municipality, road and utility district,
39-17 river authority, any other state or local governmental entity, or
39-18 any property owners' or homeowners' association.
39-19 Sec. 366.178. ACTIONS AFFECTING EXISTING ROADS. (a) An
39-20 authority may impose a toll for transit over an existing free road,
39-21 street, or public highway transferred to the authority under this
39-22 chapter.
39-23 (b) An authority may construct a grade separation at an
39-24 intersection of a turnpike project with a railroad or highway and
39-25 change the line or grade of a highway to accommodate it to the
39-26 design of a grade separation. Such action affecting a segment of
39-27 the state highway system may only be accomplished by agreement with
40-1 the department. The authority shall pay the cost of a grade
40-2 separation and any damage incurred in changing a line or grade of a
40-3 railroad or highway as part of the cost of the turnpike project.
40-4 (c) If feasible, an authority shall provide access to
40-5 properties previously abutting a county or other public road that
40-6 is taken for a turnpike project and shall pay abutting property
40-7 owners the expenses or any resulting damages for a denial of access
40-8 to a county or other public road.
40-9 Sec. 366.179. FAILURE OR REFUSAL TO PAY TOLL. (a) Any
40-10 motor vehicle that is not a police or emergency vehicle, either
40-11 driven or towed through a toll collection facility, shall pay the
40-12 proper toll.
40-13 (b) A person who uses a turnpike project and fails or
40-14 refuses to pay a toll provided for using the project is liable for
40-15 a fine not to exceed $250, plus administrative fees incurred in
40-16 connection with such violation.
40-17 (c) In the event of nonpayment of the proper toll:
40-18 (1) on issuance of a notice of nonpayment, the
40-19 registered owner of the nonpaying vehicle is legally bound to pay
40-20 both the proper toll and an administrative fee;
40-21 (2) an authority may fix, revise, charge, and collect
40-22 an administrative fee, so as to recover the cost of collecting the
40-23 unpaid toll, not to exceed $100. The notice of nonpayment to the
40-24 registered owner shall be sent by first class mail and may require
40-25 payment of the proper toll as well as the administrative fee not
40-26 sooner than 30 days from the date the notice was mailed. The
40-27 registered owner shall pay a separate toll and administrative fee
41-1 for each event of nonpayment.
41-2 (3) an authority has a lien on the vehicle driven by
41-3 the person for the amount of the toll and may take and retain the
41-4 vehicle until the proper toll and applicable administrative fee
41-5 have been paid.
41-6 (d) If the registered owner of the vehicle fails to pay the
41-7 proper toll and administrative fee within the time specified by the
41-8 notice of nonpayment issued under this section, the registered
41-9 owner shall be cited as for other traffic violations for the
41-10 nonpayment by a peace officer of the authority or as otherwise
41-11 provided by law, and the owner is legally bound to pay a fine, not
41-12 to exceed $250, for each event of nonpayment. Neither the legal
41-13 obligation to pay nor the actual payment of the fine shall affect
41-14 the legal duty of the owner for any other fine or penalty
41-15 prescribed by law.
41-16 (e) In the prosecution of a violation hereunder:
41-17 (1) proof that the vehicle passed through the toll
41-18 collection facility without payment of the proper toll, which proof
41-19 may be by testimony of a peace officer or authority employee, video
41-20 surveillance, or any other reasonable evidence, together with proof
41-21 that the defendant was the registered owner or the driver of the
41-22 vehicle when the failure to pay occurred, establishes the
41-23 nonpayment of the registered owner.
41-24 (2) The court of the local jurisdiction in which the
41-25 violation occurred may assess and collect the fine, in addition to
41-26 any court costs. The court shall also collect the proper toll and
41-27 administrative fee and forward the toll and fee to the authority.
42-1 (3) It is a defense to nonpayment under this section
42-2 that the motor vehicle in question was stolen before the failure to
42-3 pay the proper toll occurred and was not recovered by the time of
42-4 the failure to pay, but only if the theft was reported to the
42-5 appropriate law enforcement authority before the earlier of:
42-6 (A) the occurrence of the failure to pay; or
42-7 (B) eight hours after the discovery of the
42-8 theft.
42-9 (f) A registered owner who is a lessor of a vehicle
42-10 concerning which a notice of nonpayment has been issued is not
42-11 liable in connection with that notice of nonpayment if, not later
42-12 than 30 days after the date the notice of nonpayment is mailed, the
42-13 registered owner provides to the authority a copy of the rental,
42-14 lease, or other contract document covering the vehicle on the date
42-15 of the nonpayment, with the correct name and proper address of the
42-16 lessee clearly legible. Failure to provide this information within
42-17 the period prescribed renders the lessor liable as the registered
42-18 owner. If the lessor provides the required information within the
42-19 period prescribed, the lessee of the vehicle on the date of the
42-20 violation is considered to be the owner of the vehicle for purposes
42-21 of this section and is subject to prosecution for failure to pay
42-22 the proper toll as if the lessee were the registered owner, if the
42-23 authority sends a notice of nonpayment to the lessee by first class
42-24 mail within 30 days after the date of receipt of the required
42-25 information from the lessor.
42-26 Sec. 366.180. USE AND RETURN OF TRANSPONDERS. (a) For
42-27 purposes of this section, a "transponder" means a device, placed on
43-1 or within an automobile, that is capable of transmitting or
43-2 receiving information used to assess or to collect tolls. A
43-3 transponder is "insufficiently funded" when there are no remaining
43-4 funds in the account in connection with which the transponder was
43-5 issued.
43-6 (b) Any law enforcement or peace officer of the Department
43-7 of Public Safety of the State of Texas or any peace officer of an
43-8 authority has the authority to seize a stolen or insufficiently
43-9 funded transponder and to return it to the authority that issued
43-10 the transponder, except that an insufficiently funded transponder
43-11 may not be seized sooner than 30 days after the date that authority
43-12 has sent a notice of delinquency to the holder of the account.
43-13 Sec. 366.181. CONTROLLED ACCESS TO TURNPIKE PROJECTS. (a)
43-14 Subject to Subsection (c), an authority may designate any of its
43-15 turnpike projects or any portions thereof as controlled-access toll
43-16 roads.
43-17 (b) An authority by order may:
43-18 (1) prohibit use of or access to or from its turnpike
43-19 projects by a motor vehicle, bicycle, or other vehicle or by
43-20 pedestrians;
43-21 (2) subject to Subsection (c), deny access to or from:
43-22 (A) its turnpike projects;
43-23 (B) real property adjacent to its turnpike
43-24 projects; or
43-25 (C) a street, road, alley, highway, or other
43-26 public or private way intersecting its turnpike projects;
43-27 (3) designate locations on its turnpike projects at
44-1 which access to or from the toll road is permitted;
44-2 (4) control, restrict, and determine the type and
44-3 extent of access permitted at a designated location of access to
44-4 the turnpike projects; or
44-5 (5) erect appropriate protective devices to preserve
44-6 the utility, integrity, and use of its turnpike projects.
44-7 (c) Denial of access to or from a segment of the state
44-8 highway system is subject to prior approval by the commission.
44-9 Sec. 366.182. PROMOTION OF TOLL ROADS. An authority may
44-10 promote the use of its turnpike projects by appropriate means,
44-11 including advertising or marketing as the authority finds
44-12 appropriate.
44-13 Sec. 366.183. OPERATION OF TURNPIKE PROJECT; PEACE OFFICERS.
44-14 (a) An authority shall police and operate its turnpike projects
44-15 through a force of police, peace officers, toll-takers, and other
44-16 employees of the authority or through services contracted for under
44-17 Subsections (b) or (c).
44-18 (b) An authority may enter into agreements with one or more
44-19 governmental entities or private persons or entities under which
44-20 such entities or persons shall provide, on terms and conditions
44-21 approved by the authority, personnel and services to design,
44-22 construct, operate, maintain, expand, enlarge, or extend the
44-23 authority's turnpike projects.
44-24 (c) An authority may arrange with the Department of Public
44-25 Safety or any other state or local government entity for the
44-26 services of peace officers of that agency.
44-27 (d) An authority may employ and commission a force of peace
45-1 officers of the authority. A peace officer commissioned by the
45-2 authority under this subsection holds office at the will of the
45-3 authority. A person may not be commissioned as a peace officer
45-4 under this subsection unless the person meets all standards for
45-5 licensing as a peace officer by the Commission on Law Enforcement
45-6 Officer Standards and Education.
45-7 Sec. 366.184. AUDIT. An authority shall have a certified
45-8 public accountant audit the authority's books and accounts at least
45-9 annually. The cost of the audit may be treated as part of the cost
45-10 of construction or operation of a turnpike project.
45-11 Sec. 366.185. DISADVANTAGED BUSINESSES. (a) Consistent
45-12 with general law, an authority shall:
45-13 (1) set goals for the awarding of contracts to
45-14 disadvantaged businesses and attempt to meet the goals;
45-15 (2) attempt to identify disadvantaged businesses that
45-16 provide or have the potential to provide supplies, materials,
45-17 equipment, or services to the authority; and
45-18 (3) give disadvantaged businesses full access to the
45-19 authority's contract bidding process, inform the businesses about
45-20 the process, offer the businesses assistance concerning the
45-21 process, and identify barriers to the businesses' participation in
45-22 the process.
45-23 (b) This section does not exempt an authority from
45-24 competitive bidding requirements provided by other law.
45-25 (Sections 366.186 to 366.250 reserved for expansion
45-26 SUBCHAPTER F. GOVERNANCE
45-27 Sec. 366.251. BOARD OF AUTHORITY. (a) An authority shall
46-1 be governed by a board of directors.
46-2 (b) The commissioners court of each constituent county of
46-3 the authority shall appoint one director to serve on the board of
46-4 an authority, and the governor shall appoint three directors to the
46-5 board of an authority.
46-6 (c) Directors shall be divided into three groups or classes;
46-7 to the greatest degree possible, each class shall contain an equal
46-8 number of directors. Directors shall serve terms of six years,
46-9 except that one class of directors of the initial board of an
46-10 authority shall serve for a term of two years, and another class of
46-11 directors of the initial board of an authority shall serve a term
46-12 of four years. Thereafter, the successors to the directors of all
46-13 classes shall serve for a term of six years.
46-14 (d) Two directors appointed by the governor must have
46-15 resided in the authority's constituent counties for at least one
46-16 year before appointment to the board. The third director appointed
46-17 by the governor must have resided in a county adjacent to a
46-18 constituent county for at least one year before that person's
46-19 appointment to the board. Each director appointed by a
46-20 commissioners court shall have resided in the county from which the
46-21 person is appointed for at least one year before the person's
46-22 appointment.
46-23 (e) All appointments to the board shall be made without
46-24 regard to race, color, disability, sex, religion, age, or national
46-25 origin.
46-26 (f) No elected official shall be eligible to serve as a
46-27 director while such official holds office.
47-1 (g) At any time, the commissioners court of a constituent
47-2 county may by resolution remove from the board the director
47-3 appointed by that commissioners court. Removal of a director under
47-4 this subsection need not be based on grounds specified in another
47-5 section of this chapter, including, but not limited to, Section
47-6 366.254 of this chapter.
47-7 (h) The governor shall promptly fill any vacancy in an
47-8 unexpired term of a director appointed by the governor, and the
47-9 commissioners court of the county in question shall promptly fill
47-10 any vacancy in an unexpired term of the director from that county.
47-11 (i) Each director has equal status and may vote.
47-12 (j) The board of an authority shall select one director as
47-13 the presiding officer of the board to serve in that capacity until
47-14 such person's term as a director expires. The board shall elect
47-15 one director as assistant presiding officer and shall elect a
47-16 secretary and treasurer who need not be a director.
47-17 (k) A majority of board is a quorum, and the vote of a
47-18 majority shall be necessary for any action taken by the board. If
47-19 there exists one or more vacancies on the board, the majority of
47-20 directors then serving on the board shall constitute a quorum.
47-21 (l) One or more vacancies in the membership of the board
47-22 does not impair the right of a quorum to exercise a right or
47-23 perform a duty of the board.
47-24 (m) The legislature may prescribe the qualifications and
47-25 terms of service of the board of an authority established directly
47-26 by an act of the legislature.
47-27 Sec. 366.252. CONFLICT OF INTEREST. (a) A person is not
48-1 eligible to serve on the board of an authority if the person or the
48-2 person's spouse:
48-3 (1) is registered, certified, or licensed by an
48-4 occupational regulatory agency in the field of toll road
48-5 construction, maintenance, or operation;
48-6 (2) is employed by or participates in the management
48-7 of a business entity or other organization regulated by the
48-8 authority or receiving funds from the authority;
48-9 (3) owns or controls, directly or indirectly, more
48-10 than a 10 percent interest in a business entity or other
48-11 organization regulated by or receiving funds from the authority,
48-12 other than compensation for acquisition of turnpike right-of-way;
48-13 (4) uses or receives a substantial amount of tangible
48-14 goods, services, or funds from the authority, other than
48-15 compensation or reimbursement authorized by law for board
48-16 membership, attendance, or expenses, or for compensation for
48-17 acquisition of turnpike right-of-way;
48-18 (5) is an officer, employee, or paid consultant of a
48-19 Texas trade association in the field of road construction,
48-20 maintenance, or operation; or
48-21 (6) is required to register as a lobbyist under
48-22 Chapter 305, Government Code, because of the person's activities
48-23 for compensation on behalf of a profession related to the operation
48-24 of the authority.
48-25 (b) In this section, "Texas trade association" means a
48-26 nonprofit, cooperative, and voluntarily joined association of
48-27 business or professional competitors in this state designed to
49-1 assist its members and its industry or profession in dealing with
49-2 mutual business or professional problems and in promoting their
49-3 common interests.
49-4 (c) A person may not act as the general counsel to an
49-5 authority if the person is required to register as a lobbyist under
49-6 Chapter 305, Government Code, because of the person's activities
49-7 for compensation on behalf of a profession related to the operation
49-8 of the authority.
49-9 Sec. 366.253. SURETY BONDS OF DIRECTORS AND SECRETARY AND
49-10 TREASURER. (a) Before beginning his or her term, each director
49-11 shall execute a surety bond in the amount of $25,000, and the
49-12 secretary and treasurer shall execute a surety bond in the amount
49-13 of $50,000.
49-14 (b) Each surety bond must be:
49-15 (1) conditioned on the faithful performance of the
49-16 duties of office;
49-17 (2) executed by a surety company authorized to
49-18 transact business in this state; and
49-19 (3) filed in the secretary of state's office.
49-20 (c) The authority shall pay the expense of the bonds.
49-21 Sec. 366.254. REMOVAL OF DIRECTOR. (a) It shall be grounds
49-22 for removal of a director from the board of an authority if the
49-23 director:
49-24 (1) did not have at the time of appointment, or does
49-25 not maintain during service on the board, the qualifications
49-26 required by Section 366.251;
49-27 (2) whether at the time of appointment or at any time
50-1 during the director's term, is ineligible under Section 366.252 to
50-2 serve as a director;
50-3 (3) cannot discharge the director's duties for a
50-4 substantial part of the term for which the director is appointed
50-5 because of illness or disability; or
50-6 (4) is absent from more than half of the regularly
50-7 scheduled board meetings that the director is eligible to attend
50-8 during a calendar year unless the absence is excused by majority
50-9 vote of the board.
50-10 (b) The validity of an action of the board is not affected
50-11 by the fact that it is taken when a ground for removal of a
50-12 director exists.
50-13 (c) If the administrative head of the authority has
50-14 knowledge that a potential ground for removal exists, that person
50-15 shall notify the presiding officer of the board of the ground. The
50-16 presiding officer shall then notify the governor, in the case of a
50-17 director appointed by the governor, or the commissioners court that
50-18 appointed such director, as applicable, that a potential ground for
50-19 removal exists.
50-20 Sec. 366.255. COMPENSATION OF DIRECTOR. Each director shall
50-21 be reimbursed for the director's actual expenses necessarily
50-22 incurred in the performance of the director's duties. A director
50-23 is not entitled to any additional compensation for the director's
50-24 services.
50-25 Sec. 366.256. EVIDENCE OF AUTHORITY ACTIONS. Actions of an
50-26 authority shall be the actions of its board and may be evidenced in
50-27 any legal manner, including a board resolution.
51-1 Sec. 366.257. PUBLIC ACCESS. An authority shall:
51-2 (a) make and implement policies that provide the public with
51-3 a reasonable opportunity to appear before the board to speak on any
51-4 issue under the jurisdiction of the authority; and
51-5 (b) prepare and maintain a written plan that describes how
51-6 an individual who does not speak English or who has a physical,
51-7 mental, or developmental disability may be provided reasonable
51-8 access to the authority's programs.
51-9 Sec. 366.258. INDEMNIFICATION. (a) An authority may
51-10 indemnify one or more of its directors or officers for necessary
51-11 expenses and costs, including attorneys' fees, incurred by the
51-12 directors or officers in connection with any claim asserted against
51-13 the directors or officers in a court action or otherwise for
51-14 negligence or misconduct in their respective capacities as
51-15 directors or officers.
51-16 (b) If an authority does not fully indemnify a director or
51-17 officer as provided by Subsection (a), the court in a proceeding in
51-18 which any claim against the director or officer is asserted or any
51-19 court with jurisdiction of an action instituted by the director or
51-20 officer on a claim for indemnity may assess indemnity against the
51-21 authority, its receiver, or trustee for the amount paid by the
51-22 director or officer, including attorneys' fees, to pay any judgment
51-23 or settlement of the claim necessarily incurred by the director or
51-24 officer in connection with the claim in an amount the court
51-25 considers reasonable and equitable only if the court finds that, in
51-26 connection with the claim, the director or officer is not guilty of
51-27 negligence or misconduct.
52-1 (c) A court may not assess indemnity under Subsection (b)
52-2 for an amount paid by the director or officer to the authority.
52-3 (d) In this section, "director or officer" includes a former
52-4 director or officer.
52-5 Sec. 366.259. PURCHASE OF LIABILITY INSURANCE. (a) An
52-6 authority shall insure its officers and employees from liability
52-7 arising from the use, operation, or maintenance of equipment that
52-8 is used or may be used in connection with the laying out,
52-9 construction, or maintenance of the authority's turnpike projects.
52-10 (b) Insurance coverage under this section must be provided
52-11 by the purchase of a policy of liability insurance from a reliable
52-12 insurance company authorized to do business in this state. The
52-13 form of the policy must be approved by the commissioner of
52-14 insurance.
52-15 (c) This section is not a waiver of immunity of the
52-16 authority or its constituent counties from liability for the torts
52-17 or negligence of an officer or employee of an authority.
52-18 (d) In this section, "equipment" includes an automobile,
52-19 motor truck, trailer, aircraft, motor grader, roller, tractor,
52-20 tractor power mower, and other power equipment.
52-21 Sec. 366.260. CERTAIN CONTRACTS AND SALES PROHIBITED. (a)
52-22 A director, agent, or employee of an authority may not:
52-23 (1) contract with the authority; or
52-24 (2) be directly or indirectly interested in:
52-25 (A) a contract with the authority; or
52-26 (B) the sale of property to the authority.
52-27 (b) A person who violates Subsection (a) is liable for a
53-1 fine not to exceed $1,000.
53-2 (c) Subsection (a) does not apply to the sale of turnpike
53-3 right-of-way to an authority.
53-4 Sec. 366.261. ANNUAL REPORTS AND STRATEGIC PLANS. (a) Each
53-5 authority shall make a strategic plan for its operations. A
53-6 majority of the commissioners courts of the constituent counties of
53-7 the authority shall, by concurrent resolution, determine the types
53-8 of information required to be included in each authority's
53-9 strategic plan. Each even-numbered year, each authority shall
53-10 issue a plan covering five fiscal years beginning with the next
53-11 odd-numbered fiscal year.
53-12 (b) Not later than March 31 of each year, the authority
53-13 shall file with the commissioners court of each of the authority's
53-14 constituent counties an annual report on the authority's activities
53-15 describing all turnpike revenue bond issuances anticipated for the
53-16 coming year, the authority's financial condition, all project
53-17 schedules, and the status of the authority's performance under the
53-18 most recent strategic plan. At the invitation of the commissioners
53-19 courts of the authority's constituent counties, members of the
53-20 board and the executive director of an authority shall appear
53-21 before the commissioners courts of the authority's constituent
53-22 counties to present the annual report and to report on the
53-23 strategic plan.
53-24 (c) Any issuance or anticipated issuance of turnpike revenue
53-25 bonds by the authority shall be identified in the most recent
53-26 strategic plan or annual report filed in accordance with this
53-27 section and, if not, notice shall be given to the commissioners
54-1 courts of each of the authority's constituent counties at least 90
54-2 days prior to any turnpike revenue bond issuance not previously
54-3 identified in said plan or report.
54-4 Sec. 366.262. MEETINGS BY TELEPHONE CONFERENCE CALL. (a)
54-5 Chapter 551, Government Code, does not prohibit any open or closed
54-6 meeting of the board, a committee of the board, or the staff (or
54-7 any combination of the foregoing) of an authority being held by
54-8 telephone conference call.
54-9 (b) A telephone conference call meeting is subject to the
54-10 notice requirements applicable to other meetings.
54-11 (c) Notice of a telephone conference call meeting that by
54-12 law must be open to the public must specify as the location of the
54-13 meeting the conference room of the authority or other facility
54-14 within a constituent county that is accessible to the public.
54-15 (d) Each part of the telephone conference call meeting that
54-16 by law must be open to the public shall be audible to the public at
54-17 the location specified in the notice and shall be tape-recorded or
54-18 documented by written minutes. On conclusion of the meeting, the
54-19 tape recording or the written minutes of the meeting shall be made
54-20 available to the public.
54-21 (Sections 366.263 to 366.300 reserved for expansion
54-22 SUBCHAPTER G. AID FOR REGIONAL TURNPIKE PROJECTS
54-23 Sec. 366.301. DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS.
54-24 (a) To the extent permitted by the Texas Constitution, the
54-25 department may agree with an authority to provide for or contribute
54-26 to the payment of costs of financial, engineering and traffic
54-27 feasibility studies, design, financing, acquisition, construction,
55-1 operation, or maintenance of a turnpike project or system on terms
55-2 agreed upon by the commission or department, as applicable, and the
55-3 authority, so long as the agreement is not inconsistent with the
55-4 rights of the bondholders and/or persons operating the turnpike
55-5 project under a lease or other contract.
55-6 (b) The department may use its engineering and other
55-7 personnel, including consulting engineers and traffic engineers, to
55-8 conduct feasibility studies under Subsection (a);
55-9 (c) An obligation or expense incurred by the commission or
55-10 department under this section is a part of the cost of the turnpike
55-11 project with respect to which such obligation or expense was
55-12 incurred. If money from the state highway fund is spent under this
55-13 section, the fund shall be repaid from tolls or other revenue of
55-14 the turnpike project or system on which the state highway fund
55-15 moneys were expended.
55-16 (d) The commission or department may use federal funds for
55-17 any purpose described by this chapter.
55-18 Sec. 366.302. AGREEMENTS WITH PUBLIC OR PRIVATE ENTITIES TO
55-19 CONSTRUCT, MAINTAIN, REPAIR, AND OPERATE TURNPIKE PROJECTS. (a)
55-20 An authority may enter into an agreement with a public or private
55-21 entity, including a toll road corporation, the United States, a
55-22 state of the United States, the United Mexican States, a state of
55-23 the United Mexican States, a local governmental entity, or another
55-24 political subdivision, to permit the entity, jointly with the
55-25 authority, to study the feasibility of a turnpike project or system
55-26 or to acquire, design, finance, construct, maintain, repair,
55-27 operate, extend, or expand a turnpike project or system. An
56-1 authority shall have broad discretion to negotiate provisions in a
56-2 development agreement with a private entity, including, without
56-3 limitation, provisions relating to the design, financing,
56-4 construction, maintenance, and operation of a turnpike project or
56-5 system in accordance with standards promulgated by the authority
56-6 and provisions relating to professional and consulting services to
56-7 be rendered in accordance with standards promulgated by the
56-8 authority in connection with a turnpike project or system.
56-9 (b) An authority may not incur a financial obligation on
56-10 behalf of, or otherwise guarantee obligations of, a private entity
56-11 that constructs, maintains, or operates a turnpike project or
56-12 system. Neither an authority nor an authority's constituent
56-13 counties shall be liable for any financial or other obligations of
56-14 a turnpike project solely because a private entity constructs,
56-15 finances, or operates any part of a turnpike project or system.
56-16 (c) An authority may authorize the investment of public and
56-17 private money, including debt and equity participation, to finance
56-18 a function described by this section.
56-19 Sec. 366.303. AGREEMENTS BETWEEN AUTHORITY AND LOCAL
56-20 GOVERNMENTAL ENTITIES. (a) Under authority of Section 52, Article
56-21 III, Texas Constitution, a local governmental entity other than a
56-22 nonprofit corporation may, upon the required vote of the qualified
56-23 voters, in addition to all other debts, issue bonds or enter into
56-24 and make payments under agreements with an authority, not to exceed
56-25 40 years in term, in any amount not to exceed one-fourth of the
56-26 assessed valuation of real property within the local governmental
56-27 entity, except that the total indebtedness of any municipality
57-1 shall never exceed the limits imposed by other provisions of the
57-2 Texas Constitution, and levy and collect taxes to pay the interest
57-3 thereon and provide a sinking fund for the redemption thereof, for
57-4 the purposes of acquisition, construction, maintenance, and
57-5 operation of turnpike projects or systems of an authority, or in
57-6 aid thereof.
57-7 (b) In addition to Subsection (a), a local governmental
57-8 entity may, within any applicable constitutional limitations, agree
57-9 with an authority to issue bonds or enter into and make payments
57-10 under an agreement to acquire, construct, maintain, or operate any
57-11 portion of a turnpike project or system of that authority.
57-12 (c) To make payments under an agreement under Subsection (b)
57-13 or pay the interest on bonds issued under Subsection (b) and to
57-14 provide a sinking fund for the bonds or the contract, a local
57-15 governmental entity may:
57-16 (1) pledge revenue from any available source,
57-17 including annual appropriations;
57-18 (2) levy and collect taxes; or
57-19 (3) provide for a combination of Subdivisions (1) and
57-20 (2).
57-21 (d) The term of an agreement under this section may not
57-22 exceed 40 years.
57-23 (e) Any election required to permit action under this
57-24 subchapter must be held in conformance with Chapter 1, Title 22,
57-25 Revised Statutes, or other law applicable to the local governmental
57-26 entity.
57-27 Sec. 366.304. ADDITIONAL AGREEMENTS OF AUTHORITY. An
58-1 authority may enter into any agreement necessary or convenient to
58-2 achieve the purposes of this subchapter.
58-3 SECTION 2.02. Article 2.12, Code of Criminal Procedure, is
58-4 amended by adding the following as Subdivision 30:
58-5 (30) an officer commissioned as a peace officer by a
58-6 regional tollway authority under Subchapter E of Chapter 366,
58-7 Transportation Code.
58-8 SECTION 3.01. Upon the effective date of this act, the North
58-9 Texas Tollway Authority (hereinafter referred to as the "NTTA") is
58-10 hereby established as a regional tollway authority under Chapter
58-11 366, Transportation Code. The NTTA shall have as its jurisdiction
58-12 all territory within Collin, Dallas, Denton, and Tarrant Counties.
58-13 The operations of the NTTA may extend to other counties pursuant to
58-14 and in compliance with Section 366.161, Transportation Code, and
58-15 the jurisdiction of the NTTA may be expanded to include other
58-16 counties pursuant to and in compliance with Section 366.031,
58-17 Transportation Code. As of the date of this act, the following
58-18 counties meet the geographical qualifications for inclusion within
58-19 the jurisdiction of the NTTA, subject to satisfaction of all other
58-20 requirements of Section 366.031: Cooke, Ellis, Fannin, Grayson,
58-21 Hunt, Johnson, Kaufman, Parker, Rockwall, and Wise.
58-22 SECTION 3.02. Upon the effective date of this act, (a) the
58-23 NTTA shall succeed to all assets, rights, and obligations of the
58-24 Texas Turnpike Authority, an agency of the State of Texas
58-25 (hereinafter referred to as the "TTA"), located in said counties,
58-26 including all assets, rights, and obligations that relate to the
58-27 Dallas North Tollway System (including the Dallas North Tollway,
59-1 the Addison Airport Toll Tunnel, and the President George Bush
59-2 Turnpike), the Mountain Creek Lake Bridge, all existing and
59-3 proposed extensions to said projects, the TTA administration
59-4 building, all other facilities, improvements, and leaseholds, all
59-5 funds, accounts, and investments related to any of such assets and
59-6 their operations, and all other assets, properties, and interests
59-7 in property of the TTA located in said counties, and (b) the NTTA
59-8 shall assume and become liable for all duties and obligations of
59-9 the TTA related to the assets, rights, properties, and facilities
59-10 of the TTA located in those counties, including all contracts, all
59-11 bonds secured by the revenues of any of the assets in said
59-12 counties, and all other obligations of every nature related to the
59-13 properties and interests in property transferred to the NTTA
59-14 pursuant to this section. The NTTA shall be obligated to comply
59-15 with all such assumed obligations to the same extent as the TTA.
59-16 All employees of the TTA may elect to become employees of the
59-17 either the TTA or NTTA on the effective date of this act, subject
59-18 to the employment openings and requirements of the TTA and the
59-19 NTTA, respectively.
59-20 SECTION 3.03. As consideration for the transfer of the TTA's
59-21 rights and assets described in Section 3.02, the NTTA shall pay
59-22 $10,000,000 to the TTA, in accordance with a schedule acceptable to
59-23 those parties. Provided, however, that if any scheduled payment
59-24 would cause the NTTA to fail to comply with any bond resolutions,
59-25 bond indenture, credit agreement, or any other agreement assumed by
59-26 the NTTA under Section 3.02, then such payment shall be postponed,
59-27 or paid in smaller and additional installments, as necessary to
60-1 ensure the NTTA's compliance with all such agreements.
60-2 SECTION 3.04. The initial board of directors of the NTTA
60-3 shall be composed of nine directors. Three initial directors
60-4 shall be appointed by the governor, four initial directors shall be
60-5 appointed by the commissioners courts of the constituent counties
60-6 of the NTTA, and the county judges of two of the constituent
60-7 counties of the NTTA shall serve as initial directors. All of the
60-8 initial directors and all of their successors shall meet the
60-9 residence and other qualifications required under Chapter 366,
60-10 Subchapter F, Transportation Code. The terms of the initial
60-11 directors shall commence on September 1, 1997. The county judges
60-12 serving as initial directors shall each serve a one-year term. At
60-13 the expiration of their terms, the seats held by the county judges
60-14 shall not be refilled, and the number of directors composing the
60-15 board shall be reduced to seven. One of the directors appointed to
60-16 the initial board by the governor shall serve a two-year term.
60-17 Each successor to that director shall be appointed by the governor
60-18 for a six-year term, in accordance with Section 366.251,
60-19 Transportation Code. The two directors appointed to the initial
60-20 board by the commissioners courts of the counties whose county
60-21 judges serve as initial directors shall each serve a two-year term.
60-22 Each successor to those directors shall be appointed by their
60-23 respective commissioners courts for a six-year term, in accordance
60-24 with Section 366.251, Transportation Code. Two other directors on
60-25 the initial board shall each serve a four-year term, and their
60-26 respective successors shall be appointed as provided in Section
60-27 366.251, Transportation Code, to six-year terms. The remaining
61-1 initial directors shall each be appointed for a six-year term in
61-2 accordance with Section 366.251, Transportation Code.
61-3 SECTION 3.05. The NTTA is hereby declared to be a
61-4 "successor" and a "successor agency" to the TTA for all purposes,
61-5 including for the purposes of Article III, Section 52-b of the
61-6 Texas Constitution, with respect to all assets, rights, and
61-7 obligations of the TTA transferred to the NTTA and regarding its
61-8 operations authorized under this act and by Chapter 366,
61-9 Transportation Code. Any existing agreement by and between the TTA
61-10 and the state, the Texas Highway Commission, the Texas Department
61-11 of Transportation, the Federal Highway Administration, the United
61-12 States Department of Transportation, any other federal or state
61-13 governmental entity, or any local governmental entity pertaining to
61-14 an asset, right, or obligation transferred to the NTTA under this
61-15 act, shall bind, benefit, and be fully enforceable by and against
61-16 the NTTA as successor to the TTA.
61-17 SECTION 4. EFFECTIVE DATE. This Act takes effect September
61-18 1, 1997.
61-19 SECTION 5. EMERGENCY. The importance of this legislation
61-20 and the crowded condition of the calendars in both houses create an
61-21 emergency and an imperative public necessity that the
61-22 constitutional rule requiring bills to be read on three several
61-23 days in each house be suspended, and this rule is hereby suspended.