By Sibley                                        S.B. No. 369

      75R9167 DRH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the abolition of the Texas Turnpike Authority and the

 1-3     transfer of its functions to the Texas Department of Transportation

 1-4     and newly created regional tollway authorities.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Chapter 222, Transportation Code, is amended by

 1-7     adding Subchapter D to read as follows:

 1-8                        SUBCHAPTER D. TOLL FACILITIES

 1-9           Sec. 222.071.  EXPENDITURE OF MONEY.  The department may

1-10     spend money from any source for the construction, maintenance, and

1-11     operation of toll facilities.

1-12           Sec. 222.072.  TEMPORARY TOLL PROJECTS.  The department may

1-13     recover the cost of a preventative maintenance or rehabilitation

1-14     project on a nontoll segment of the state highway system by

1-15     temporarily imposing a toll charge.

1-16           Sec. 222.073.  COST PARTICIPATION.  (a)  The department may

1-17     participate in the cost of the construction, maintenance, or

1-18     operation of a toll facility of a public or private entity on terms

1-19     and conditions established by the commission, including

1-20     requirements for repayment.

1-21           (b)  An entity receiving cost participation from the

1-22     department under this section is a successor agency to the Texas

1-23     Turnpike Authority for the purposes of Section 52-b, Article III,

1-24     Texas Constitution.

 2-1           SECTION 2.  Section 362.055, Transportation Code, is amended

 2-2     to read as follows:

 2-3           Sec. 362.055.  EXCEPTION.  This subchapter does not apply to:

 2-4                 (1)  a county that has a population of more than 1.5

 2-5     million; [or]

 2-6                 (2)  a local government corporation created under

 2-7     Chapter 431 by a county that has a population of more than 1.5

 2-8     million; or

 2-9                 (3)  a regional tollway authority created under Chapter

2-10     366.

2-11           SECTION 3.  Section 361.001, Transportation Code, is amended

2-12     to read as follows:

2-13           Sec. 361.001.  DEFINITIONS.  In this chapter:

2-14                 (1)  "Authority" means the Texas Turnpike Authority

2-15     division of the Texas Department of Transportation [and includes

2-16     the entity that succeeds to the principal functions of the

2-17     authority or to whom by law the powers of the authority are given].

2-18                 (2)  "Board" means the board of directors of the

2-19     authority.

2-20                 (3)  ["Highway" means a road, highway, farm-to-market

2-21     road, or street under the supervision of the state or a political

2-22     subdivision of the state.]

2-23                 [(4)]  "Owner" includes a person having title to or an

2-24     interest in any property, rights, easements, and interests

2-25     authorized to be acquired under this chapter.

2-26                 (4) [(5)]  "Turnpike project" means a toll [an express]

2-27     highway constructed, maintained, or operated under this chapter as

 3-1     part of the state highway system and any improvement, extension, or

 3-2     expansion to the highway and includes:

 3-3                       (A)  a facility to relieve traffic congestion and

 3-4     promote safety;

 3-5                       (B)  a bridge, tunnel, overpass, underpass,

 3-6     interchange, entrance plaza, approach, toll house, or service

 3-7     station;

 3-8                       (C)  an administration, storage, or other

 3-9     building the authority considers necessary to operate the project;

3-10     and

3-11                       (D)  property rights, easements, and interests

3-12     the authority acquires to construct or operate the project.

3-13                 (5)  "Regional tollway authority" means a regional

3-14     tollway authority created under Chapter 366, Transportation Code.

3-15           SECTION 4.  Section 361.031, Transportation Code, is amended

3-16     to read as follows:

3-17           Sec. 361.031.  TEXAS TURNPIKE AUTHORITY.  (a)  The Texas

3-18     Turnpike Authority is a division of the Texas Department of

3-19     Transportation that has full authority to exercise all powers

3-20     granted to it under this chapter.  Powers granted to the department

3-21     under this chapter and Chapter 362 to study, design, construct,

3-22     operate, expand, enlarge, or extend a turnpike project as a part of

3-23     the state highway system shall be exercised by the department

3-24     acting by and through the authority [state agency].

3-25           (b)  The authority may perform, procure from other divisions

3-26     of the department with the consent of the department, or procure

3-27     from outside service providers any portion of the services the

 4-1     authority requires for:

 4-2                 (1)  right-of-way acquisition;

 4-3                 (2)  roadway finance, design, and construction;

 4-4                 (3)  environmental affairs; or

 4-5                 (4)  legal services.

 4-6           (c)  With the approval of the commission, the authority may

 4-7     perform, procure from other divisions of the department with the

 4-8     consent of the department, or procure from outside service

 4-9     providers any portion of the services the authority requires for

4-10     roadway maintenance or traffic operations.

4-11           (d)  To perform its functions under this chapter, the

4-12     authority may use the facilities and personnel of the department in

4-13     the same manner as other divisions of the department.

4-14           (e)  If the comptroller assigns numbers to state agencies for

4-15     accounting purposes, the comptroller shall assign a separate agency

4-16     number to the authority [The authority shall locate offices in

4-17     Austin, Texas, on or before September 1, 1997].

4-18           (f) [(c)]  The exercise by the authority of the powers

4-19     conferred by this chapter in the construction, operation, and

4-20     maintenance of a turnpike project is:

4-21                 (1)  in all respects for the benefit of the people of

4-22     this state, for the increase of their commerce and prosperity, and

4-23     for the improvement of their health and living conditions and

4-24     public safety; and

4-25                 (2)  an essential governmental function of the state.

4-26           SECTION 5.  Sections 361.032(a), (b), (c), (e), and (g),

4-27     Transportation Code, are amended to read as follows:

 5-1           (a)  The board is composed of six [12] directors appointed by

 5-2     the commission.  [The governor, with the  advice and consent of the

 5-3     senate, shall appoint nine directors who represent the public. Each

 5-4     commission member serves as an ex officio board member.]

 5-5           (b)  Directors [Appointed directors] serve terms of six years

 5-6     with the terms of one-third of those directors expiring on February

 5-7     15 of each odd-numbered year.

 5-8           (c)  Each [appointed] director must have resided in this

 5-9     state and in the county from which the person is appointed for at

5-10     least one year before the person's appointment.

5-11           (e)  The commission [governor] shall promptly fill vacancies

5-12     in unexpired terms.

5-13           (g)  The commission [governor] shall designate one director

5-14     as the presiding officer of the board to serve in that capacity at

5-15     the pleasure of the commission [governor].  The board shall elect

5-16     one director as assistant presiding officer and shall elect a

5-17     secretary and treasurer who need not be a director.

5-18           SECTION 6.  Section 361.033, Transportation Code, is amended

5-19     to read as follows:

5-20           Sec. 361.033.  CONFLICT OF INTEREST.  (a)  A person is not

5-21     eligible for appointment to the board if the person or the person's

5-22     spouse:

5-23                 (1)  is registered, certified, or licensed by an

5-24     occupational regulatory agency in the field of toll road

5-25     construction, maintenance, or operation;

5-26                 (2)  is employed by or participates in the management

5-27     of a business entity or other organization regulated by the

 6-1     commission, department, or authority or receiving funds from the

 6-2     commission, department, or authority;

 6-3                 (3)  owns or controls, directly or indirectly, more

 6-4     than a 10 percent interest in a business entity or other

 6-5     organization regulated by or receiving funds from the commission,

 6-6     department, or authority, other than compensation for acquisition

 6-7     of turnpike  right-of-way; or

 6-8                 (4)  uses or receives a substantial amount of tangible

 6-9     goods, services, or funds from the commission, department, or

6-10     authority, other than compensation or reimbursement authorized by

6-11     law for board membership, attendance, or expenses or compensation

6-12     for acquisition of turnpike right-of-way.

6-13           (b)  An officer, employee, or paid consultant of a Texas

6-14     trade association in the field of road construction, maintenance,

6-15     or operation may not be a [an appointed] director.

6-16           (c)  The spouse of an officer, manager, or paid consultant of

6-17     a Texas trade association in the field of road construction,

6-18     maintenance, or operation may not be a [an appointed] director.

6-19           (d)  A person may not serve as a [an appointed] director or

6-20     act as the general counsel  to the authority if the person is

6-21     required to register as a lobbyist under Chapter 305, Government

6-22     Code, because of the person's activities for compensation on behalf

6-23     of a profession related to the operation of the commission,

6-24     department, or authority.

6-25           (e)  In this section, "Texas trade association" means a

6-26     nonprofit, cooperative, and voluntarily joined association of

6-27     business or professional competitors in this state designed to

 7-1     assist its members and its industry or profession in dealing with

 7-2     mutual business or professional problems and in promoting their

 7-3     common interests.

 7-4           SECTION 7.  Section 361.035, Transportation Code, is amended

 7-5     to read as follows:

 7-6           Sec. 361.035.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

 7-7     removal of a [an appointed] director from the board if the

 7-8     director:

 7-9                 (1)  does not have at the time of appointment or does

7-10     not maintain during service on the board the qualifications

7-11     required by Section 361.032 or 361.033(a);

7-12                 (2)  violates a prohibition established by Section

7-13     361.033(b), (c), or (d);

7-14                 (3)  cannot discharge the director's duties for a

7-15     substantial part of the term for which the director is appointed

7-16     because of illness or disability; or

7-17                 (4)  is absent from more than half of the regularly

7-18     scheduled board meetings that the director is eligible to attend

7-19     during a calendar year unless the absence is excused by majority

7-20     vote of the board.

7-21           (b)  The validity of an action of the board is not affected

7-22     by the fact that it is taken when a ground for removal of a

7-23     director exists.

7-24           (c)  If the administrative head of the authority has

7-25     knowledge that a potential ground for removal exists, that

7-26     individual shall notify the presiding officer of the board of the

7-27     ground.  The presiding officer shall then notify the commission

 8-1     [governor] that a potential ground for removal exists.

 8-2           SECTION 8.  Section 361.042, Transportation Code, is amended

 8-3     to read as follows:

 8-4           Sec. 361.042.  GENERAL POWERS AND DUTIES.  (a)  The authority

 8-5     shall:

 8-6                 (1)  on its own initiative or at the request of the

 8-7     commission, consider, study, plan, and develop turnpike projects

 8-8     under this chapter;

 8-9                 (2)  adopt rules [bylaws] for the regulation of its

8-10     affairs and the conduct of its business;

8-11                 (3)  with the concurrence of the commission, employ an

8-12     administrative head, who serves at the pleasure of the board and

8-13     who must be compensated on a level not lower than the level on

8-14     which a deputy executive director of the department is compensated;

8-15     and

8-16                 (4)  undertake such other duties as are delegated to it

8-17     by the commission.

8-18           (b)  The authority may:

8-19                 (1) [(2)  adopt an official seal;]

8-20                 [(3)]  construct, maintain, repair, and operate

8-21     turnpike projects in this state;

8-22                 (2) [(4)]  acquire, hold, and dispose of property in

8-23     the exercise of its powers and the performance of its duties under

8-24     this chapter;

8-25                 (3)  with the approval of the governor and the

8-26     commission, [(5)] enter into contracts or operating agreements with

8-27     similar authorities or agencies of another state, including a state

 9-1     of the United Mexican States;

 9-2                 (4) [(6)]  enter into contracts or agreements necessary

 9-3     or incidental to its  duties and powers under this chapter;

 9-4                 (5) [(7)]  employ consulting engineers, attorneys,

 9-5     accountants, construction and financial experts, superintendents,

 9-6     managers, and other  employees and agents the authority considers

 9-7     necessary and set their compensation;

 9-8                 (6) [(8)]  receive grants for the construction of a

 9-9     turnpike project and receive contributions of money, property,

9-10     labor, or other things of value from any source to be used for the

9-11     purposes for which the grants or contributions are made;

9-12                 (7) [(9)]  adopt and enforce rules, if the commission

9-13     concurs, not inconsistent with this chapter for the use of any

9-14     turnpike project; and

9-15                 (8) [(10)]  do all things necessary or appropriate to

9-16     carry out the powers expressly granted by this chapter.

9-17           SECTION 9.  Section 361.055, Transportation Code, is amended

9-18     to read as follows:

9-19           Sec. 361.055.  SUCCESSOR AGENCY TO AUTHORITY.  The following

9-20     are considered successor agencies to the Texas Turnpike Authority

9-21     [authority] for purposes of Section 52-b, Article III, Texas

9-22     Constitution:

9-23                 (1)  a county, municipality, or local government

9-24     corporation that leases, buys, operates, or otherwise receives a

9-25     turnpike project under Subchapter H;

9-26                 (2)  a county with a population of more than 1.5

9-27     million that constructs a toll road, toll bridge, or turnpike

 10-1    project;

 10-2                (3)  a local government corporation serving a county

 10-3    with a population of more than 1.5 million that constructs a toll

 10-4    road, toll bridge, or turnpike project; [and]

 10-5                (4)  an adjacent county in a joint turnpike authority

 10-6    with a county with a population of more than 1.5 million that

 10-7    constructs a toll road, toll bridge, or turnpike project;

 10-8                (5)  the department; and

 10-9                (6)  a public or private entity authorized to receive

10-10    funds from the department for the construction, maintenance, or

10-11    operation of toll projects.

10-12          SECTION 10.  Section 361.132, Transportation Code, is amended

10-13    to read as follows:

10-14          Sec. 361.132.  ACQUISITION OF PROPERTY.  (a)  The board

10-15    [authority] may acquire, in the name of the state, [authority]

10-16    public or private real property it determines necessary or

10-17    convenient for the construction, expansion, enlargement, extension,

10-18    improvement, or operation of a turnpike project or for otherwise

10-19    carrying out this chapter.

10-20          (b)  The real property the authority may acquire under this

10-21    subchapter includes:

10-22                (1)  public parks, playgrounds, or reservations;

10-23                (2)  parts of or rights in public parks, playgrounds,

10-24    or reservations;

10-25                (3)  rights-of-way;

10-26                (4)  property rights, including:

10-27                      (A)  a right of ingress or egress; and

 11-1                      (B)  a reservation right in real property that

 11-2    restricts or prohibits for not more than seven years the:

 11-3                            (i)  addition of a new improvement on the

 11-4    real property;

 11-5                            (ii)  addition to or modification of an

 11-6    existing improvement on the real property; or

 11-7                            (iii)  subdivision of the real property;

 11-8                (5)  franchises;

 11-9                (6)  easements; and

11-10                (7)  other interests in real property.

11-11          (c)  The board [authority] may acquire the real property by

11-12    any method, including purchase and condemnation.  The board

11-13    [authority] may purchase public or private real property on the

11-14    terms  and at the price the board [authority] and the owner

11-15    consider reasonable.

11-16          (d)  Property necessary or convenient for the construction or

11-17    operation of a turnpike project under Subsection (a) includes an

11-18    interest in real  property, a property right, or materials that the

11-19    authority determines are necessary or convenient to:

11-20                (1)  protect a turnpike project;

11-21                (2)  drain a turnpike project;

11-22                (3)  divert a stream, river, or other watercourse from

11-23    the right-of-way of a turnpike project;

11-24                (4)  store materials or equipment used in the

11-25    construction or maintenance of a turnpike project;

11-26                (5)  construct or operate a warehouse or other facility

11-27    used in connection with the construction, maintenance, or operation

 12-1    of a turnpike project;

 12-2                (6)  lay out, construct, or maintain a roadside park;

 12-3                (7)  lay out, construct, or maintain a parking lot that

 12-4    will contribute to the maximum use of a turnpike project with the

 12-5    least possible congestion;

 12-6                (8)  mitigate an adverse environmental effect that

 12-7    directly results from the construction or maintenance of a turnpike

 12-8    project; or

 12-9                (9)  accomplish any other purpose related to the

12-10    location, construction, improvement, maintenance, beautification,

12-11    preservation, or operation of a turnpike project.

12-12          (e)  The authority shall comply with all relocation

12-13    assistance procedures applicable to the department in connection

12-14    with any displacement of owners or tenants as a consequence of the

12-15    authority's acquisition of real property under this chapter.

12-16          (f)  The authority may acquire timber, earth, stone, gravel,

12-17    or other materials as necessary to carry out a purpose under this

12-18    chapter.

12-19          SECTION 11.  Section 361.135, Transportation Code, is amended

12-20    to read as follows:

12-21          Sec. 361.135.  CONDEMNATION OF REAL PROPERTY.  (a)  The

12-22    board, with the concurrence of the commission, [authority] may

12-23    acquire public or private real property in the name of the state

12-24    [authority] by the exercise of the power of condemnation under the

12-25    laws applicable to the exercise of that power on property for

12-26    public use if:

12-27                (1)  the authority and the owner cannot agree on a

 13-1    reasonable price for the property; or

 13-2                (2)  the owner is legally incapacitated, absent,

 13-3    unknown, or unable to convey title.

 13-4          (b)  The board, with the concurrence of the commission, [To

 13-5    the extent provided by  Subsection (c), the authority] may condemn

 13-6    real property that the authority determines is:

 13-7                (1)  necessary or appropriate to construct or to

 13-8    efficiently operate a turnpike project;

 13-9                (2)  necessary to restore public or private property

13-10    damaged or destroyed; [or]

13-11                (3)  necessary for access, approach, and interchange

13-12    roads;

13-13                (4)  necessary for supplemental facilities of the

13-14    authority; or

13-15                (5)  necessary otherwise to carry out this chapter.

13-16          (c)  [The authority may condemn real property  necessary for

13-17    access, approach, and interchange roads but may not condemn

13-18    property:]

13-19                [(1)  that is unnecessary for road and right-of-way

13-20    purposes; or]

13-21                [(2)  that is for a supplemental facility for another

13-22    purpose.]

13-23          [(d)  The authority may construct a supplemental facility

13-24    only on real property the authority purchases.]

13-25          [(e)]  The court having jurisdiction of a condemnation

13-26    proceeding may:

13-27                (1)  make orders as are just to the authority and the

 14-1    owners of the real property; and

 14-2                (2)  require an undertaking or other security to secure

 14-3    the owners against any loss or damage by reason of the board's

 14-4    [authority's] failure to accept and pay for the real property.

 14-5          (d) [(f)]  An undertaking or security under Subsection (c)(2)

 14-6    [(e)(2)] or an act or obligation of the authority or the board does

 14-7    not impose any  liability on the state, [or] the authority, or the

 14-8    board except liability  that may be paid from the money authorized

 14-9    by this chapter.

14-10          SECTION 12.  Section 361.136, Transportation Code, is amended

14-11    to read as follows:

14-12          Sec. 361.136.  SEVERANCE OF REAL PROPERTY.  (a)  If a

14-13    turnpike project severs an owner's real property, the authority

14-14    shall pay:

14-15                (1)  the value of the property acquired; and

14-16                (2)  the damages to the remainder of the owner's

14-17    property caused by the severance, including damages caused by the

14-18    inaccessibility of one tract from the other.

14-19          (b)  [The authority shall provide and maintain  without

14-20    charge a passageway over or under the turnpike project for the

14-21    owner of the severed real property and the owner's employees and

14-22    representatives.  The authority is not required to furnish a

14-23    passageway if the owner waives the requirement or the original

14-24    tract involved is less than 80 acres.]

14-25          [(c)]  The authority may negotiate for and purchase the

14-26    severed real property or either part of the severed real property

14-27    if the authority and the owner agree on terms for the purchase.

 15-1    [The authority shall sell and dispose of severed real property

 15-2    within two years after the date of acquisition.]

 15-3          SECTION 13.  Section 361.180, Transportation Code, is amended

 15-4    to read as follows:

 15-5          Sec. 361.180.  TOLLS ON CONVERTED HIGHWAYS [PROHIBITION ON

 15-6    TOLLS ON EXISTING FREE HIGHWAYS].  If converted to a toll facility

 15-7    under Section 222.072 or 362.0041, the commission [The authority]

 15-8    may impose a toll for transit over an existing free public highway

 15-9    [only if such  highway is transferred to the authority by the

15-10    commission under Section 222.0041].

15-11          SECTION 14.  Section 361.184(b), Transportation Code, is

15-12    amended to read as follows:

15-13          (b)  The board [authority] may  transfer, or direct the

15-14    authority to transfer, into the project revolving fund money from

15-15    any permissible source, including:

15-16                (1)  money from a surplus fund established for a

15-17    turnpike project if the remainder of the surplus fund is not less

15-18    than any minimum amount required by the trust agreement to be

15-19    retained for that project;

15-20                (2)  money received under Subchapter I or from a

15-21    transfer of a turnpike project under Subchapter H;

15-22                (3)  advances from the state highway fund [department

15-23    authorized under Section 52-b, Article III, Texas Constitution];

15-24    and

15-25                (4)  contributions or assistance from the United

15-26    States, another state, a political subdivision of this state, the

15-27    United Mexican States, or a political subdivision of the United

 16-1    Mexican States.

 16-2          SECTION 15.  Section 361.189, Transportation Code, is amended

 16-3    to read as follows:

 16-4          Sec. 361.189.  USE OF SURPLUS REVENUE.  [(a)]  The commission

 16-5    [board] by resolution may authorize the use of surplus revenue of a

 16-6    turnpike  project to pay the costs of another turnpike project,

 16-7    other than a project financed under Subchapter I, or a toll-free

 16-8    project.  The commission [board] may in the resolution prescribe

 16-9    terms for the use of the revenue, including the pledge of the

16-10    revenue, but may not take an action under this section that[:]

16-11                [(1)  violates Subsection (b); or]

16-12                [(2)]  violates, impairs, or is inconsistent with a

16-13    bond resolution, trust agreement, or indenture governing the use of

16-14    the surplus revenue.

16-15          [(b)  Except as provided by Subsection (c), the surplus

16-16    revenue of a turnpike project that was  under construction or

16-17    operated by the authority on January 1, 1993, may be used only for:]

16-18                [(1)  the costs associated with the construction,

16-19    expansion, or maintenance of the project producing the revenue; and]

16-20                [(2)  transfers to the Texas Turnpike Authority

16-21    feasibility study fund.]

16-22          [(c)  The board may use revenue from a turnpike project

16-23    described by Subsection (b) for a purpose authorized by this

16-24    chapter other than a purpose described by that subsection if:]

16-25                [(1)  the authority obtains the permission of the

16-26    commissioners court of each county in which the project is located;

16-27    or]

 17-1                [(2)  an agreement between the authority and a county

 17-2    or local government corporation created by the county for the

 17-3    lease, sale, or other conveyance of the project permits the revenue

 17-4    to be used for another purpose.]

 17-5          SECTION 16.  Section 361.232, Transportation Code, is amended

 17-6    by adding Subsection (e) to read as  follows:

 17-7          (e)  This section does not apply to the conversion of any

 17-8    highway that is a part of the state highway system to a turnpike

 17-9    project.

17-10          SECTION 17.  Section 361.237, Transportation Code, is amended

17-11    to read as follows:

17-12          Sec. 361.237.  OPERATION OF TURNPIKE PROJECT.  A turnpike

17-13    project is a public road subject to all laws applicable to the

17-14    regulation and control of traffic [(a) The authority shall police

17-15    and operate a turnpike project through a force of police,

17-16    toll-takers, and other employees of the authority.]

17-17          [(b)  The authority may arrange with the Department of Public

17-18    Safety for the services of officers of that agency].

17-19          SECTION 18.  Section 361.238, Transportation Code, is amended

17-20    to read as follows:

17-21          Sec. 361.238.  PAYMENT OF BOND INDEBTEDNESS; CESSATION OR

17-22    CONTINUATION OF TOLLS[; TRANSFER OF PROJECT TO COMMISSION].  (a)

17-23    Except as provided by Subsection (b), a  [A] turnpike project [that

17-24    is in good condition and repair to the satisfaction of the

17-25    commission] becomes a toll-free [part of the state] highway

17-26    [system] when:

17-27                (1)  the bonds issued under this chapter for the

 18-1    project and the interest on the bonds are paid; or

 18-2                (2)  firm banking and financial arrangements have been

 18-3    made for the discharge and final payment or redemption of the bonds

 18-4    in accordance with Section 7A, Chapter 503, Acts of the 54th

 18-5    Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes) [a

 18-6    sufficient amount to pay the bonds and the interest on the bonds to

 18-7    maturity or to redeem the bonds has been set aside in trust for the

 18-8    benefit of the bondholders].

 18-9          (b)  If the conditions of Subsections (a)(1) and (2) are met,

18-10    the commission may continue to charge a toll sufficient to pay the

18-11    costs of maintaining the facility.  [The Authority shall continue

18-12    to operate as a toll facility a turnpike project that the

18-13    commission determines is not in a state of repair so as to justify

18-14    its acceptance as part of the state highway system.  The authority

18-15    shall continue the tolls then in effect or revise the tolls to

18-16    provide money sufficient to assure payment of the expenses of

18-17    maintenance and operation and the making of repairs and

18-18    replacements as necessary to meet the minimum requirements of the

18-19    commission within the shortest practicable time.]

18-20          [(c)  The commission shall maintain a turnpike project it

18-21    accepts free of tolls.  The authority shall deliver to the

18-22    commission at the time of acceptance any money remaining to the

18-23    credit of the project after retirement of the bonds issued for the

18-24    project.  The commission shall deposit the money in a fund to be

18-25    used to maintain the project facilities.  The commission shall

18-26    administer the fund in accordance with commission rules.]

18-27          [(d)  Not later than the first anniversary of the date the

 19-1    commission accepts a turnpike project, the department shall

 19-2    advertise for public sale each installation on the project other

 19-3    than the road bed and highway sections and shall solicit sealed

 19-4    bids for those installations.  The department may reject any or all

 19-5    bids but shall dispose of the properties not later than the second

 19-6    anniversary of the date the commission accepts title to the

 19-7    project.]

 19-8          SECTION 19.  The heading of Subchapter H, Chapter 361,

 19-9    Transportation Code, is amended to read as follows:

19-10              SUBCHAPTER H.  TRANSFER OF TURNPIKE PROJECT TO

19-11           COUNTY, MUNICIPALITY, REGIONAL TOLLWAY AUTHORITY, OR

19-12                       LOCAL GOVERNMENT CORPORATION

19-13          SECTION 20.  Sections 361.281, 361.282, and 361.285,

19-14    Transportation Code, are amended to read as follows:

19-15          Sec. 361.281.  APPLICABILITY OF SUBCHAPTER.  This subchapter

19-16    applies only to:

19-17                (1)  a county with a population of more than 1.5

19-18    million;

19-19                (2)  a local government corporation serving a county

19-20    with a population of more than 1.5 million; [or]

19-21                (3)  an adjacent county in a joint turnpike authority

19-22    with a county with a population of more than 1.5 million;

19-23                (4)  a municipality with a population of more than

19-24    120,000 that is adjacent to the United Mexican States; or

19-25                (5)  a regional tollway authority created under Chapter

19-26    366.

19-27          Sec. 361.282.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

 20-1    PROJECT.  (a)  The authority may lease, sell, or convey in another

 20-2    manner a turnpike project to a county, municipality, regional

 20-3    tollway authority, or a local government corporation created under

 20-4    Chapter 431.

 20-5          (b)  The authority, the commission, and the governor must

 20-6    approve the transfer of the turnpike project as being in the best

 20-7    interests of the state and the entity receiving the turnpike

 20-8    project [county].

 20-9          Sec. 361.285.  APPROVAL OF AGREEMENT BY ATTORNEY GENERAL.

20-10    (a)  An agreement for the lease, sale, or conveyance of a turnpike

20-11    project under this subchapter shall be submitted to the attorney

20-12    general for approval as part of the records of proceedings relating

20-13    to the issuance of bonds of the county, municipality, regional

20-14    tollway  authority, or local government corporation.

20-15          (b)  If the attorney general determines that the agreement is

20-16    in accordance with law, the attorney general shall approve the

20-17    agreement and deliver to the commission a copy of the legal opinion

20-18    of the attorney general stating that approval.

20-19          SECTION 21.  Section 361.331(a), Transportation Code, is

20-20    amended to read as follows:

20-21          (a)  The authority may designate two or more turnpike

20-22    projects that are wholly or partly  located in a metropolitan

20-23    planning organization [planning region of a council of governments]

20-24    as a pooled turnpike project after:

20-25                (1)  conducting a public hearing; and

20-26                (2)  obtaining the approval of the commission[; and]

20-27                [(3)  obtaining a resolution adopted by the

 21-1    commissioners court of the county that:]

 21-2                      [(A)  approves the action; and]

 21-3                      [(B)  specifies the date the pooled project

 21-4    becomes toll free].

 21-5          SECTION 22.  Section 362.0041, Transportation Code, is

 21-6    amended to read as follows:

 21-7          Sec. 362.0041.  CONVERSION [ACQUISITION] OF PROJECTS.  (a)

 21-8    If the commission finds that the conversion of a segment of the

 21-9    free state highway system to a toll facility is the most feasible

21-10    and economic means to accomplish necessary expansion improvements,

21-11    or extensions to the state highway system, that segment may[, on

21-12    approval of the governor,] be converted [transferred] by order of

21-13    the commission to [the authority.  The authority may receive such

21-14    segment of highway, thereafter to be owned, operated, and

21-15    maintained as] a turnpike project under  Chapter 361.

21-16          (b)  [The authority shall reimburse the commission for the

21-17    cost of the transferred highway, unless the commission finds that

21-18    the transfer will result in substantial net benefits to the state,

21-19    the department, and the traveling public that exceed that cost.

21-20    The cost shall include the total dollar amount expended by the

21-21    department for the original construction of the highway, including

21-22    all costs associated with the preliminary engineering and design

21-23    engineering for plans, specifications, and estimates, the

21-24    acquisition of necessary right-of-way, and actual construction of

21-25    the highway and all necessary appurtenant facilities.]

21-26          [(c)  The commission shall, coincident with the transfer,

21-27    remove the segment of highway from the designated state highway

 22-1    system and shall subsequently have no liability, responsibility, or

 22-2    duty for the maintenance or operation of the highway.]

 22-3          [(d)]  Prior to converting [transferring] a segment of the

 22-4    state highway system  under this section, the commission shall

 22-5    conduct a public hearing for the purpose of receiving comments from

 22-6    interested persons concerning the proposed transfer.  Notice of the

 22-7    hearing shall be published in the Texas Register, one or more

 22-8    newspapers of general circulation, and a newspaper, if any,

 22-9    published in the county or counties in which the involved highway

22-10    is located.

22-11          (c) [(e)]  The commission shall adopt rules implementing this

22-12    section, such rules to include criteria and guidelines for the

22-13    approval of a conversion [transfer] of a  highway.

22-14          SECTION 23.  Subtitle G, Title 6, Transportation Code, is

22-15    amended by adding Chapter 366 to  read as follows:

22-16                CHAPTER 366.  REGIONAL TOLLWAY AUTHORITIES

22-17                     SUBCHAPTER A.  GENERAL PROVISIONS

22-18          Sec. 366.001.  SHORT TITLE.  This chapter may be cited as the

22-19    Regional Tollway  Authority Act.

22-20          Sec. 366.002.  PURPOSES; LIBERAL CONSTRUCTION.  (a)  The

22-21    purposes of this chapter are:

22-22                (1)  the expansion and improvement of transportation

22-23    facilities and systems in this state;

22-24                (2)  the creation of regional tollway authorities to

22-25    secure and acquire rights-of-way for urgently needed transportation

22-26    systems and to plan, design, construct, operate, expand, extend,

22-27    and modify those systems; and

 23-1                (3)  the reduction of burdens and demands on the

 23-2    limited money available to the commission and an increase in the

 23-3    effectiveness and efficiency of the commission.

 23-4          (b)  This chapter shall be liberally construed to effect its

 23-5    purposes.

 23-6          Sec. 366.003.  DEFINITIONS.  In this chapter:

 23-7                (1)  "Authority" means a regional tollway authority

 23-8    organized under this chapter.

 23-9                (2)  "Board" means the board of directors of an

23-10    authority organized under this chapter.

23-11                (3)  "Bond" means all bonds, certificates, notes, and

23-12    other obligations of an authority authorized by this chapter, any

23-13    other statute, or the Texas Constitution.

23-14                (4)  "Bond proceedings" means a bond resolution and any

23-15    bond indenture authorized by the bond resolution, any credit

23-16    agreement entered into in connection with the bonds or the payments

23-17    to be made under the agreement, and any other agreement between an

23-18    authority and another person providing security for the payment of

23-19    bonds.

23-20                (5)  "Bond resolution" means an order or resolution of

23-21    an authority's board authorizing the issuance of bonds.

23-22                (6)  "Bondholder" includes a trustee acting on behalf

23-23    of an owner of bonds under the terms of a bond indenture.

23-24                (7)  "Highway" means a road, highway, farm-to-market

23-25    road, or street under the supervision of the state or a political

23-26    subdivision of the state.

23-27                (8)  "Local governmental entity" means a political

 24-1    subdivision of the state, including a municipality or a county, a

 24-2    political subdivision of a county, a group of adjoining counties, a

 24-3    district organized or operating under Section 52, Article III, or

 24-4    Section 59, Article XVI, Texas Constitution, or a nonprofit

 24-5    corporation, including a transportation corporation created under

 24-6    Chapter 431.

 24-7                (9)  "Revenue" means the tolls, rents, and other money

 24-8    received by an authority from the ownership or operation of a

 24-9    turnpike project.

24-10                (10)  "System" means a turnpike project or any

24-11    combination of turnpike projects designated as a system by the

24-12    board under  Section 366.034.

24-13                (11)  "Turnpike project" means a highway of any number

24-14    of lanes, with or without grade separations, owned or operated by

24-15    an authority under this chapter and any improvement, extension, or

24-16    expansion to that highway, including:

24-17                      (A)  an improvement to relieve traffic congestion

24-18    and promote safety;

24-19                      (B)  a bridge, tunnel, overpass, underpass,

24-20    interchange, service road, ramp, entrance plaza, approach, or

24-21    tollhouse;

24-22                      (C)  an administration, storage, or other

24-23    building the authority considers necessary to operate the turnpike

24-24    project;

24-25                      (D)  a service station, hotel, motel, restaurant,

24-26    parking area or structure, rest stop, park, and other improvement

24-27    or amenity an authority considers necessary, useful, or beneficial

 25-1    for the operation of a turnpike project; and

 25-2                      (E)  property rights, easements, and interests an

 25-3    authority acquires to construct or operate the turnpike project.

 25-4          Sec. 366.004.  CONSTRUCTION COSTS DEFINED.  (a)  The cost of

 25-5    acquisition, construction, improvement,  extension, or expansion of

 25-6    a turnpike project or system under this chapter includes the cost

 25-7    of:

 25-8                (1)  the actual acquisition, construction, improvement,

 25-9    extension, or expansion of the turnpike project or system;

25-10                (2)  the acquisition of real property, rights-of-way,

25-11    property rights, easements, and other interests in real property;

25-12                (3)  machinery and equipment;

25-13                (4)  interest payable before, during, and after

25-14    acquisition, construction, improvement, extension, or expansion as

25-15    provided in the bond proceedings;

25-16                (5)  traffic estimates, revenue estimates, engineering

25-17    and legal services, plans, specifications, surveys, appraisals,

25-18    construction cost estimates, and other expenses necessary or

25-19    incidental to determining the feasibility of the construction,

25-20    improvement, extension, or expansion;

25-21                (6)  necessary or incidental administrative, legal, and

25-22    other expenses;

25-23                (7)  compliance with laws, regulations, and

25-24    administrative rulings;

25-25                (8)  financing; and

25-26                (9)  expenses related to the initial operation of the

25-27    turnpike project or system.

 26-1          (b)  Costs attributable to a turnpike project or system and

 26-2    incurred before the issuance of bonds to finance the turnpike

 26-3    project or system may be reimbursed from the proceeds of sale of

 26-4    the bonds.

 26-5             (Sections 366.005-366.030 reserved for expansion

 26-6    SUBCHAPTER B.  CREATION AND POWERS OF REGIONAL TOLLWAY AUTHORITIES

 26-7          Sec. 366.031.  CREATION AND EXPANSION OF A REGIONAL TOLLWAY

 26-8    AUTHORITY.  (a)  Two or more counties, acting through their

 26-9    respective commissioners courts, may by order passed by each

26-10    commissioners court create a regional tollway authority under this

26-11    chapter if:

26-12                (1)  one of the counties has a population of not less

26-13    than 1,500,000; and

26-14                (2)  the counties form a contiguous territory.

26-15          (b)  A commissioners court may by resolution petition an

26-16    established authority for inclusion in the authority if:

26-17                (1)  the county is contiguous to the authority; or

26-18                (2)  a turnpike project of the authority is situated in

26-19    or planned for the county.

26-20          (c)  On approval of the board of an authority receiving a

26-21    petition under Subsection (b), the county becomes part of the

26-22    authority.

26-23          Sec. 366.032.  NATURE OF REGIONAL TOLLWAY AUTHORITY.  (a)  An

26-24    authority created under this chapter  is a body politic and

26-25    corporate and a political subdivision of this state.

26-26          (b)  An authority is a governmental unit as that term is

26-27    defined in Chapter 101, Civil Practice and Remedies Code.

 27-1          (c)  The exercise by an authority of the powers conferred by

 27-2    this chapter in the acquisition, design, financing, construction,

 27-3    operation, and maintenance of a turnpike project or system is:

 27-4                (1)  in all respects for the benefit of the people of

 27-5    the counties in which an authority operates and of the people of

 27-6    this state, for the increase of their commerce and prosperity, and

 27-7    for the improvement of their health, living conditions, and public

 27-8    safety; and

 27-9                (2)  an essential governmental function of the state.

27-10          (d)  The operations of an authority are governmental, not

27-11    proprietary, functions.

27-12          Sec. 366.033.  GENERAL POWERS.  (a)  An authority, acting

27-13    through its board, may:

27-14                (1)  adopt rules for the regulation of its affairs and

27-15    the conduct of its business;

27-16                (2)  adopt an official seal;

27-17                (3)  study, evaluate, design, acquire, construct,

27-18    maintain, repair, and operate turnpike projects, individually or as

27-19    one or more systems;

27-20                (4)  acquire, hold, and dispose of property in the

27-21    exercise of its powers and the performance of its duties under this

27-22    chapter;

27-23                (5)  enter into contracts or operating agreements with

27-24    similar authorities or agencies of the United States, a state of

27-25    the United States, the United Mexican States, or a state of the

27-26    United Mexican States;

27-27                (6)  enter into contracts or agreements necessary or

 28-1    incidental to its duties and powers under this chapter;

 28-2                (7)  cooperate and work directly with property owners

 28-3    and governmental agencies and officials to support an activity

 28-4    required to promote or develop a turnpike project or system;

 28-5                (8)  employ and set the compensation of administrators,

 28-6    consulting engineers, attorneys, accountants, construction and

 28-7    financial experts, superintendents, managers, full-time and

 28-8    part-time employees, agents, consultants, and such other persons as

 28-9    the authority considers necessary or useful;

28-10                (9)  receive loans, gifts, grants, and other

28-11    contributions for the construction of a turnpike project or system

28-12    and receive contributions of money, property, labor, or other

28-13    things of value from any source, including the United States, a

28-14    state of the United States, the United Mexican States, a state of

28-15    the United Mexican States, the commission, the department, any

28-16    subdivision of the state, or any other local governmental or

28-17    private entity, to be used for the purposes for which the grants or

28-18    contributions are made, and enter into any agreement necessary for

28-19    the grants or contributions;

28-20                (10)  install, construct, maintain, repair, renew,

28-21    relocate, and remove public utility facilities in, on, along, over,

28-22    or under a turnpike project;

28-23                (11)  organize a corporation under Chapter 431 for the

28-24    promotion and development of turnpike projects and systems;

28-25                (12)  adopt and enforce rules not inconsistent with

28-26    this chapter for the use of any turnpike project or system,

28-27    including traffic and other public safety rules;

 29-1                (13)  enter into leases, operating agreements, service

 29-2    agreements, licenses, franchises, and similar agreements with

 29-3    public or private parties governing the parties' use of all or any

 29-4    portion of a turnpike project and the rights and obligations of the

 29-5    authority with respect to a turnpike project; and

 29-6                (14)  do all things necessary or appropriate to carry

 29-7    out the powers expressly granted by this chapter.

 29-8          (b)  Property comprising a part of a turnpike project or a

 29-9    system is not subject to condemnation or the power of eminent

29-10    domain by any person, including a governmental entity.

29-11          (c)  An authority may, if requested by the commission,

29-12    perform any function not specified by this chapter to promote or

29-13    develop turnpike projects and systems in this state.

29-14          (d)  An authority may sue and be sued and plead and be

29-15    impleaded in its own name.

29-16          (e)  An authority may rent, lease, franchise, license, or

29-17    otherwise make portions of its properties available for use by

29-18    others in furtherance of its powers under this chapter by

29-19    increasing the feasibility or the revenue of a turnpike project or

29-20    system.

29-21          (f)  An authority and any local governmental entity may enter

29-22    into a contract under which the authority will operate a turnpike

29-23    project or system on behalf of the local governmental entity.  The

29-24    payments to be made to an authority under the contract shall

29-25    constitute operating expenses of the facility or system that is to

29-26    be operated under the contract, and the contract may extend for a

29-27    number of years as the parties agree.

 30-1          Sec. 366.034.  ESTABLISHMENT OF TURNPIKE SYSTEMS.  (a)  If an

 30-2    authority determines that the traffic  needs of the counties in

 30-3    which it operates and the traffic needs of the surrounding region

 30-4    could be most efficiently and economically met by jointly operating

 30-5    two or more turnpike projects as one operational and financial

 30-6    enterprise, it may create a system comprised of those turnpike

 30-7    projects.  An authority may create more than one system and may

 30-8    combine two or more systems into one system.  An authority may

 30-9    finance, acquire, construct, and operate additional turnpike

30-10    projects as additions to and expansions of a system if the

30-11    authority determines that the turnpike project could most

30-12    efficiently and economically be acquired and constructed if it were

30-13    a part of the system and that the addition will benefit the system.

30-14          (b)  The revenue of a system shall be accounted for

30-15    separately and may not be commingled with the revenue of a turnpike

30-16    project that is not a part of the system or with the revenue of

30-17    another system.

30-18          Sec. 366.035.  CONVERSION OF STATE HIGHWAY SYSTEM PROJECTS.

30-19    (a)  If the commission determines that the  most feasible and

30-20    economic means to accomplish necessary expansion, improvements, or

30-21    extensions to the state highway system is the conversion to a

30-22    turnpike project of a segment of the free state highway system, any

30-23    segment located in a county of an authority or a county in which an

30-24    authority operates a turnpike project or in any county adjacent to

30-25    those counties may, on approval of the governor and the affected

30-26    authority, be transferred by order of the commission to that

30-27    authority.  An authority that receives the segment of highway may

 31-1    own, operate, and maintain the segment as a turnpike project or

 31-2    system or a part of a turnpike project or system under this

 31-3    chapter.

 31-4          (b)  An authority shall reimburse the commission for the cost

 31-5    of a transferred highway, unless the commission determines that the

 31-6    transfer will result in substantial net benefits to the state, the

 31-7    department, and the traveling public that exceed that cost.  The

 31-8    cost includes the total amount expended by the department for the

 31-9    original construction of the highway, including all costs

31-10    associated with the preliminary engineering and design engineering

31-11    for plans, specifications, and estimates, the acquisition of

31-12    necessary rights-of-way, and actual construction of the highway and

31-13    all necessary appurtenant facilities.  Costs anticipated to be

31-14    expended to expand, improve, or extend the highway shall be

31-15    deducted from the costs to be reimbursed to the commission.

31-16          (c)  The commission shall, at the time of a transfer, remove

31-17    the segment of highway from the state highway system.  After a

31-18    transfer the commission has no liability, responsibility, or duty

31-19    for the maintenance or operation of the highway.

31-20          (d)  Before transferring a segment of the state highway

31-21    system under this section, the commission shall conduct a public

31-22    hearing to receive comments from interested persons concerning the

31-23    proposed transfer.  Notice of the hearing must be published in the

31-24    Texas Register, one or more newspapers of general circulation in

31-25    the counties in which the segment is located, and a newspaper, if

31-26    any, published in the counties of the applicable authority.

31-27          (e)  The commission shall adopt rules implementing this

 32-1    section.  The rules shall include criteria and guidelines for the

 32-2    approval of a transfer of a highway.

 32-3          (f)  An authority shall adopt rules providing criteria and

 32-4    guidelines for approving the acceptance of a highway under this

 32-5    section.

 32-6             (Sections 366.036-366.070 reserved for expansion

 32-7          SUBCHAPTER C. FEASIBILITY OF REGIONAL TURNPIKE PROJECTS

 32-8          Sec. 366.071.  EXPENDITURES FOR FEASIBILITY STUDIES.  (a)  An

 32-9    authority may pay the expenses of studying the cost and

32-10    feasibility and any other expenses relating to the preparation and

32-11    issuance of bonds for a proposed turnpike project or system by:

32-12                (1)  using legally available revenue derived from an

32-13    existing turnpike project or system;

32-14                (2)  borrowing money and issuing bonds or entering into

32-15    a loan agreement payable out of legally available revenue

32-16    anticipated to be derived from the operation of an existing

32-17    turnpike project or system; or

32-18                (3)  pledging to the payment of the bonds or loan

32-19    agreements legally available revenue anticipated to be derived from

32-20    the operation of an existing turnpike project or system or revenue

32-21    legally available to the authority from another source.

32-22          (b)  Money spent under this section for a proposed turnpike

32-23    project or system must be reimbursed to the turnpike project or

32-24    system from which the money was spent from the proceeds of bonds

32-25    issued for the acquisition and construction of the proposed

32-26    turnpike project or system.

32-27          (c)  The use of any money of a turnpike project or system to

 33-1    study the feasibility of another turnpike project or system or used

 33-2    to repay any money used for that purpose does not constitute an

 33-3    operating expense of the turnpike project or system producing the

 33-4    revenue and may only be paid from the surplus money of the turnpike

 33-5    project or system.

 33-6          Sec. 366.072.  FEASIBILITY STUDY FUND.  (a)  An authority may

 33-7    maintain a feasibility study fund.  The  fund is a revolving fund

 33-8    held in trust by a banking institution chosen by the authority and

 33-9    shall be kept separate from the money for any turnpike project or

33-10    system.

33-11          (b)  An authority may transfer an amount from a surplus fund

33-12    established for a turnpike project or system to the authority's

33-13    feasibility study fund if the remainder of the surplus fund is not

33-14    less than any minimum amount required by the bond proceedings to be

33-15    retained for that turnpike project or system.

33-16          (c)  Money in the feasibility study fund may be used only to

33-17    pay the expenses of studying the cost and feasibility and any other

33-18    expenses relating to:

33-19                (1)  the preparation and issuance of bonds for the

33-20    acquisition and construction of a proposed turnpike project or

33-21    system;

33-22                (2)  the financing of the improvement, extension, or

33-23    expansion of an existing turnpike project or system; and

33-24                (3)  private participation, as authorized by law, in

33-25    the financing of a proposed turnpike project or system, the

33-26    refinancing of an existing turnpike project or system, or the

33-27    improvement, extension, or expansion of a turnpike project or

 34-1    system.

 34-2          (d)  Money spent under Subsection (c) for a proposed turnpike

 34-3    project or system must be reimbursed from the proceeds of turnpike

 34-4    revenue bonds issued for, or other proceeds that may be used for,

 34-5    the acquisition, construction, improvement, extension, expansion,

 34-6    or operation of the turnpike project or system.

 34-7          (e)  For a purpose described by Subsection (c), an authority

 34-8    may borrow money and issue promissory notes or other

 34-9    interest-bearing evidences of indebtedness payable out of its

34-10    feasibility study fund, pledging money in the fund or to be placed

34-11    in the fund.

34-12          Sec. 366.073.  FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,

34-13    OTHER LOCAL GOVERNMENTAL ENTITY, OR PRIVATE GROUP.  (a)  One or

34-14    more municipalities, counties, or local governmental entities, a

34-15    combination of municipalities, counties, and local governmental

34-16    entities, or a private group or combination of individuals in this

34-17    state may pay all or part of the expenses of studying the cost and

34-18    feasibility and any other expenses relating to:

34-19                (1)  the preparation and issuance of bonds for the

34-20    acquisition and construction of a proposed turnpike project or

34-21    system by an authority;

34-22                (2)  the improvement, extension, or expansion of an

34-23    authority's existing turnpike project or system; or

34-24                (3)  the use of private participation under applicable

34-25    law in connection with the acquisition, construction, improvement,

34-26    expansion, extension, maintenance, repair, or operation of a

34-27    turnpike project or system by an authority.

 35-1          (b)  Money spent under Subsection (a) for an authority's

 35-2    proposed turnpike project or system is reimbursable without

 35-3    interest and with the consent of the authority to the person paying

 35-4    the expenses described in Subsection (a) out of the proceeds from

 35-5    turnpike revenue bonds issued for or other proceeds that may be

 35-6    used for the acquisition, construction, improvement, extension,

 35-7    expansion, or operation of the turnpike project or system.

 35-8             (Sections 366.074-366.110 reserved for expansion

 35-9                     SUBCHAPTER D.  TURNPIKE FINANCING

35-10          Sec. 366.111.  TURNPIKE REVENUE BONDS.  (a)  An authority, by

35-11    adoption of a bond resolution, may authorize the issuance of bonds

35-12    to pay all or part of the cost of a turnpike project or system, to

35-13    refund any bonds previously issued for the turnpike project or

35-14    system, or to pay for all or part of the cost of a turnpike project

35-15    or system that will become a part of another system.

35-16          (b)  As determined in the bond resolution, the bonds of each

35-17    issue shall:

35-18                (1)  be dated;

35-19                (2)  bear interest at the rate or rates and beginning

35-20    on the dates, as authorized by law, or bear no interest;

35-21                (3)  mature at the time or times, not exceeding 40

35-22    years from their date or dates; and

35-23                (4)  be made redeemable before maturity at the price or

35-24    prices and under the terms provided by the bond resolution.

35-25          (c)  An authority may sell the bonds at public or private

35-26    sale in the manner and for the price it determines to be in the

35-27    best interest of the authority.

 36-1          (d)  The proceeds of each bond issue shall be disbursed in

 36-2    the manner and under the restrictions, if any, the authority

 36-3    provides in the bond resolution.

 36-4          (e)  Additional bonds may be issued in the same manner to pay

 36-5    the costs of a turnpike project or system.  Unless otherwise

 36-6    provided in the bond resolution, the additional bonds shall be on a

 36-7    parity, without preference or priority, with bonds previously

 36-8    issued and payable from the revenue of the turnpike project or

 36-9    system.  In addition, an authority may issue bonds for a turnpike

36-10    project or system secured by a lien on the revenue of the turnpike

36-11    project or system subordinate to the lien on the revenue securing

36-12    other bonds issued for the turnpike project or system.

36-13          (f)  If the proceeds of a bond issue exceed the cost of the

36-14    turnpike project or system for which the bonds were issued, the

36-15    surplus shall be segregated from the other money of the authority

36-16    and used only for the purposes specified in the bond resolution.

36-17          (g)  Bonds issued and delivered under this chapter and

36-18    interest coupons on the bonds are a security under Chapter 8,

36-19    Business & Commerce Code.

36-20          (h)  Bonds issued under this chapter and income from the

36-21    bonds, including any profit made on the sale or transfer of the

36-22    bonds, are exempt from taxation in this state.

36-23          Sec. 366.112.  INTERIM BONDS.  (a)  An authority may, before

36-24    issuing definitive bonds, issue interim bonds, with or  without

36-25    coupons, exchangeable for definitive bonds.

36-26          (b)  The interim bonds may be authorized and issued in

36-27    accordance with this chapter, without regard to the requirements,

 37-1    restrictions, or procedural provisions contained in any other law.

 37-2          (c)  A bond resolution authorizing interim bonds may provide

 37-3    that the interim bonds recite that the bonds are issued under this

 37-4    chapter.  The recital is conclusive evidence of the validity and

 37-5    the regularity of the bonds' issuance.

 37-6          Sec. 366.113.  PAYMENT OF BONDS; STATE AND COUNTY CREDIT NOT

 37-7    PLEDGED.  (a)  The principal of, interest on, and any redemption

 37-8    premium on bonds issued by an authority are payable solely from:

 37-9                (1)  the revenue of the turnpike project or system for

37-10    which the bonds are issued, including tolls pledged to pay the

37-11    bonds;

37-12                (2)  payments made under an agreement with the

37-13    commission or a local governmental entity as provided by Subchapter

37-14    G;

37-15                (3)  money derived from any other source available to

37-16    the authority, other than money derived from a turnpike project

37-17    that is not part of the same system or money derived from a

37-18    different system, except to the extent that the surplus revenue of

37-19    a turnpike project or system has been pledged for that purpose; and

37-20                (4)  amounts received under a credit agreement relating

37-21    to the turnpike project or system for which the bonds are issued.

37-22          (b)  Bonds issued under this chapter do not constitute a debt

37-23    of the state or any of the counties of an authority or a pledge of

37-24    the faith and credit of the state or any of the counties.  Each

37-25    bond must contain on its face a statement to the effect that the

37-26    state, the authority, and the counties of the authority are not

37-27    obligated to pay the bond or the interest on the bond from a source

 38-1    other than the amount pledged to pay the bond and the interest on

 38-2    the bond, and neither the faith and credit and taxing power of the

 38-3    state or the counties of the authority are pledged to the payment

 38-4    of the principal of or interest on the bond.

 38-5          (c)  An authority may not incur financial obligations that

 38-6    cannot be paid from revenue derived from owning or operating the

 38-7    authority's turnpike projects and systems or from other revenue

 38-8    provided by law.

 38-9          Sec. 366.114.  EFFECT OF LIEN.  (a)  A lien on or a pledge of

38-10    revenue from a turnpike project or system under this chapter or on

38-11    a reserve, replacement, or other fund established in connection

38-12    with a bond issued under this chapter:

38-13                (1)  is enforceable at the time of payment for and

38-14    delivery of the bond;

38-15                (2)  applies to an item on hand or subsequently

38-16    received;

38-17                (3)  applies without physical delivery of an item or

38-18    other act; and

38-19                (4)  is enforceable against any person having any

38-20    claim, in tort, contract, or other remedy, against the applicable

38-21    authority without regard to whether the person has notice of the

38-22    lien or pledge.

38-23          (b)  A bond resolution is not required to be recorded except

38-24    in the regular records of the authority.

38-25          Sec. 366.115.  BOND INDENTURE.  (a)  Bonds issued under this

38-26    chapter may be secured by a bond  indenture between the authority

38-27    and a corporate trustee that is a trust company or a bank that has

 39-1    the powers of a trust company.

 39-2          (b)  A bond indenture may pledge or assign the tolls and

 39-3    other revenue to be received but may not convey or mortgage any

 39-4    part of a turnpike project or system.

 39-5          (c)  A bond indenture may:

 39-6                (1)  set forth the rights and remedies of the

 39-7    bondholders and the trustee;

 39-8                (2)  restrict the individual right of action by

 39-9    bondholders as is customary in trust agreements or indentures of

39-10    trust securing corporate bonds and debentures; and

39-11                (3)  contain provisions the authority determines

39-12    reasonable and proper for the security of the bondholders,

39-13    including covenants:

39-14                      (A)  establishing the authority's duties relating

39-15    to:

39-16                            (i)  the acquisition of property;

39-17                            (ii)  the construction, maintenance,

39-18    operation, and repair of and insurance for a turnpike project or

39-19    system; and

39-20                            (iii)  custody, safeguarding, and

39-21    application of money;

39-22                      (B)  prescribing events that constitute default;

39-23                      (C)  prescribing terms on which any or all of the

39-24    bonds become or may be declared due before maturity; and

39-25                      (D)  relating to the rights, powers, liabilities,

39-26    or duties that arise on the breach of an authority's duty.

39-27          (d)  The expenses incurred in carrying out a trust agreement

 40-1    may be treated as part of the cost of operating the turnpike

 40-2    project.

 40-3          (e)  In addition to all other rights by mandamus or other

 40-4    court proceeding, an owner or trustee of a bond issued under this

 40-5    chapter may enforce the owner's rights against an issuing

 40-6    authority, the authority's employees, the authority's board, or an

 40-7    agent or employee of the authority's board and is entitled to:

 40-8                (1)  require the authority and the board to impose and

 40-9    collect tolls, charges, and other revenue sufficient to carry out

40-10    any agreement contained in the bond proceedings; and

40-11                (2)  apply for and obtain the appointment of a receiver

40-12    for the turnpike project or system.

40-13          Sec. 366.116.  APPROVAL OF BONDS BY ATTORNEY GENERAL.

40-14    (a)  An authority shall submit to the  attorney general for

40-15    examination a transcript of proceedings relating to bonds

40-16    authorized under this chapter.  The transcript shall include the

40-17    bond proceedings and any contract securing or providing revenue for

40-18    the payment of the bonds.

40-19          (b)  If the attorney general determines that the bonds, the

40-20    bond proceedings, and any supporting contract are authorized by

40-21    law, the attorney general shall approve the bonds and deliver to

40-22    the comptroller:

40-23                (1)  a copy of the legal opinion of the attorney

40-24    general stating the approval; and

40-25                (2)  the record of proceedings relating to the

40-26    authorization of the bonds.

40-27          (c)  On receipt of the legal opinion of the attorney general

 41-1    and the record of proceedings relating to the authorization of the

 41-2    bonds, the comptroller shall register the record of proceedings.

 41-3          (d)  After approval by the attorney general, the bonds, the

 41-4    bond proceedings, and any supporting contract are valid,

 41-5    enforceable, and incontestable in any court or other forum for any

 41-6    reason and are binding obligations according to their terms for all

 41-7    purposes.

 41-8          Sec. 366.117.  FURNISHING OF INDEMNIFYING BONDS OR PLEDGES OF

 41-9    SECURITIES.  (a)  A bank or trust company incorporated under the

41-10    laws of this state that acts as depository of the proceeds of bonds

41-11    or of revenue may furnish indemnifying bonds or pledge securities

41-12    that an authority requires.

41-13          (b)  Bonds of an authority may secure the deposit of public

41-14    money of the state or a political subdivision of the state to the

41-15    extent of the lesser of the face value of the bonds or their market

41-16    value.

41-17          Sec. 366.118.  APPLICABILITY OF OTHER LAW; CONFLICTS.  All

41-18    laws affecting the issuance of bonds by local governmental

41-19    entities, including Chapter 656, Acts of the 68th Legislature,

41-20    Regular Session, 1983 (Article 717q, Vernon's Texas Civil

41-21    Statutes), Chapter 3, Acts of the 61st Legislature, Regular

41-22    Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), the

41-23    Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil

41-24    Statutes), and Chapter 53, Acts of the 70th Legislature, 2nd Called

41-25    Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes),

41-26    apply to bonds issued under this chapter.  To the extent of a

41-27    conflict between those laws and this chapter, the provisions of

 42-1    this chapter prevail.

 42-2             (Sections 366.119-366.160 reserved for expansion

 42-3          SUBCHAPTER E.  ACQUISITION, CONSTRUCTION, AND OPERATION

 42-4                           OF TURNPIKE PROJECTS

 42-5          Sec. 366.161.  TURNPIKE PROJECTS EXTENDING INTO OTHER

 42-6    COUNTIES.  An authority may acquire, construct, operate, maintain,

 42-7    expand, or extend a turnpike project in:

 42-8                (1)  a county that is a part of the authority;

 42-9                (2)  a county in which the authority operates or is

42-10    constructing a turnpike project if the turnpike project in the

42-11    affected county is a continuation of the authority's turnpike

42-12    project or system extending from an adjacent county; or

42-13                (3)  a county in which the authority operates or is

42-14    constructing a turnpike project that is not a continuation of the

42-15    authority's turnpike project or system if the commissioners court

42-16    of the county and the commission have approved the project.

42-17          Sec. 366.162.  POWERS AND PROCEDURES OF AUTHORITY IN

42-18    ACQUIRING PROPERTY.  (a)  An authority may construct or improve a

42-19    turnpike project on real property, including a right-of-way

42-20    acquired by the authority or provided to the authority for that

42-21    purpose by the commission, a political subdivision of this state,

42-22    or any other local governmental entity.

42-23          (b)  Except as provided by this chapter, an authority has the

42-24    same powers and may use the same procedures as the commission in

42-25    acquiring property.

42-26          Sec. 366.163.  ACQUISITION OF PROPERTY.  (a)  An authority

42-27    may acquire in the name of the authority  public or private real

 43-1    and other property it determines necessary or convenient for the

 43-2    design, financing, construction, operation, maintenance, expansion,

 43-3    or extension of a turnpike project or for otherwise carrying out

 43-4    this chapter.

 43-5          (b)  The property an authority may acquire under this

 43-6    subchapter includes all or any portion of, and rights in and to:

 43-7                (1)  public or private land, streets, alleys,

 43-8    rights-of-way, parks, playgrounds, and reservations;

 43-9                (2)  franchises;

43-10                (3)  easements;

43-11                (4)  licenses; and

43-12                (5)  other interests in real and other property.

43-13          (c)  An authority may acquire real property by any method,

43-14    including purchase and condemnation.  An authority may purchase

43-15    public or private real property on the terms and at the price the

43-16    authority and the property owner consider reasonable.

43-17          Sec. 366.164.  RIGHT OF ENTRY.  (a)  To acquire property

43-18    necessary or useful in connection with a turnpike project, an

43-19    authority may enter any real property, water, or premises to make a

43-20    survey, geotechnical evaluation, sounding, or examination.

43-21          (b)  An entry under Subsection (a) is not:

43-22                (1)  a trespass; or

43-23                (2)  an entry under a pending condemnation proceeding.

43-24          Sec. 366.165.  CONDEMNATION OF REAL PROPERTY.  (a)  Subject

43-25    to Subsection (c), an authority may  acquire public or private real

43-26    property in the name of the authority by the exercise of the power

43-27    of condemnation under the laws applicable to the exercise of that

 44-1    power on property for public use if:

 44-2                (1)  the authority and the property owner cannot agree

 44-3    on a reasonable price for the property; or

 44-4                (2)  the property owner is legally incapacitated,

 44-5    absent, unknown, or unable to convey title.

 44-6          (b)  An authority may condemn real property that the

 44-7    authority determines is:

 44-8                (1)  necessary or appropriate to construct or to

 44-9    efficiently operate a turnpike project;

44-10                (2)  necessary to restore public or private property

44-11    damaged or destroyed;

44-12                (3)  necessary for access, approach, and interchange

44-13    roads;

44-14                (4)  necessary for supplemental facilities of the

44-15    authority;

44-16                (5)  necessary to provide proper drainage and ground

44-17    slope for a turnpike project; or

44-18                (6)  necessary otherwise to implement this chapter.

44-19          (c)  An authority's acquisition of any real or other property

44-20    of the commission under this section or any other section of this

44-21    chapter, or an authority's relocation, rerouting, disruption, or

44-22    alteration of any facility of the commission is considered a

44-23    conversion of a state highway under Section 366.035 and is subject

44-24    to all requirements and approvals of a conversion under that

44-25    section.

44-26          Sec. 366.166.  DECLARATION OF TAKING.  (a)  An authority may

44-27    file a declaration of taking with the  clerk of the court:

 45-1                (1)  in which the authority files a condemnation

 45-2    petition under Chapter 21, Property Code; or

 45-3                (2)  to which the case is assigned.

 45-4          (b)  An authority may file the declaration of taking

 45-5    concurrently with or subsequent to the petition, but may not file

 45-6    the declaration after the special commissioners have made an award

 45-7    in the condemnation proceeding.

 45-8          (c)  The declaration of taking must include:

 45-9                (1)  a specific reference to the legislative authority

45-10    for the condemnation;

45-11                (2)  a description and plot plan of the real property

45-12    to be condemned, including the following information if applicable:

45-13                      (A)  the municipality in which the property is

45-14    located;

45-15                      (B)  the street address of the property; and

45-16                      (C)  the lot and block number of the property;

45-17                (3)  a statement of the property interest to be

45-18    condemned;

45-19                (4)  the name and address of each property owner that

45-20    the authority can obtain after reasonable investigation and a

45-21    description of the owner's interest in the property; and

45-22                (5)  a statement that immediate possession of all or

45-23    part of the property to be condemned is necessary for the timely

45-24    construction of a turnpike project.

45-25          (d)  A deposit to the registry of the court of an amount

45-26    equal to the appraised fair market value, as determined by the

45-27    authority, of the property to be condemned and any damages to the

 46-1    remainder must accompany the declaration of taking.

 46-2          (e)  Instead of the deposit under Subsection (d), at its

 46-3    option, the authority may, concurrently with the declaration of a

 46-4    taking, tender in favor of the owner of the subject property a bond

 46-5    or other security in an amount sufficient to secure the owner for

 46-6    the value of the property taken and damages to remaining property,

 46-7    if the authority obtains the court's approval.

 46-8          (f)  The date on which the declaration is filed is the date

 46-9    of taking for the purpose of assessing the value of the property

46-10    taken and damages to any remaining property to which an owner is

46-11    entitled.

46-12          (g)  An owner may draw upon the deposit held by the court

46-13    under Subsection (d) on the same terms and conditions as are

46-14    applicable under state law to a property owner's withdrawal of a

46-15    commissioners' award deposited under Section 21.021(a)(1), Property

46-16    Code.

46-17          (h)  A property owner that is a defendant in an eminent

46-18    domain action filed by an authority under this chapter has 20 days

46-19    after the date of service of process of both a condemnation

46-20    petition and a notice of declaration of taking to give notice to

46-21    the court in which the action is pending of the defendant's desire

46-22    to have the condemnation petition placed on the court's docket in

46-23    the same manner as other cases pending in the court.  On receipt of

46-24    timely notice from the defendant, the court in which the eminent

46-25    domain action is pending shall place the case on its docket in the

46-26    same manner as other cases pending in the court.

46-27          Sec. 366.167.  POSSESSION OF PROPERTY.  (a)  Immediately on

 47-1    the filing of a declaration of taking, an authority shall serve a

 47-2    copy of the declaration on each person possessing an interest in

 47-3    the condemned property by a method prescribed by Section 21.016(d),

 47-4    Property Code.  The authority shall file evidence of the service

 47-5    with the clerk of the court.  On filing of that evidence, the

 47-6    authority may take possession of the property on the same terms as

 47-7    if a commissioners hearing had been conducted, pending the

 47-8    litigation.

 47-9          (b)  If the condemned property is a homestead or a portion of

47-10    a homestead as defined by Section 41.002, Property Code, an

47-11    authority may not take possession before the 31st day after the

47-12    date of service under Subsection (a).

47-13          (c)  A property owner or tenant who refuses to vacate the

47-14    property or yield possession is subject to forcible entry and

47-15    detainer under Chapter 24, Property Code.

47-16          Sec. 366.168.  SEVERANCE OF REAL PROPERTY.  (a)  If an

47-17    authority's turnpike project severs a  property owner's real

47-18    property, the authority shall pay:

47-19                (1)  the value of the property acquired; and

47-20                (2)  the damages, if any, to the remainder of the

47-21    owner's property caused by the severance, including damages caused

47-22    by the inaccessibility of one tract from the other.

47-23          (b)  At its option, an authority may negotiate for and

47-24    purchase the severed real property or any part of the severed real

47-25    property if the authority and the property owner agree on terms for

47-26    the purchase.  An authority may sell and dispose of severed real

47-27    property that it determines is not necessary or useful to the

 48-1    authority.  Severed property must be appraised before being offered

 48-2    for sale by an authority.

 48-3          Sec. 366.169.  ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY.

 48-4    (a)  An authority may use real property, including submerged land,

 48-5    streets, alleys, and easements, owned by the state or a local

 48-6    governmental entity that the authority considers necessary for the

 48-7    construction or operation of a turnpike project.

 48-8          (b)  The state or a local governmental entity having charge

 48-9    of public real property may consent to the use of the property for

48-10    a turnpike project.

48-11          (c)  Except as provided by Section 366.035, the state or a

48-12    local governmental entity may convey, grant, or lease to an

48-13    authority real property, including highways and other real property

48-14    already devoted to public use and rights or easements in real

48-15    property, that may be necessary or convenient to accomplish the

48-16    authority's purposes, including the construction or operation of a

48-17    turnpike project.

48-18          (d)  This section does not deprive the School Land Board of

48-19    the power to execute leases for the development of oil, gas, and

48-20    other minerals on state-owned real property adjoining a turnpike

48-21    project or in tidewater limits.  The leases may provide for

48-22    directional drilling from the adjoining property or tidewater area.

48-23          Sec. 366.170.  COMPENSATION FOR AND RESTORATION OF PUBLIC

48-24    PROPERTY.  (a)  Except as provided by  Section 366.035 or Section

48-25    366.165(c), an authority may not pay compensation for public real

48-26    property, parkways, streets, highways, alleys, or reservations it

48-27    takes, except for parks and playgrounds or as provided by this

 49-1    chapter.

 49-2          (b)  Public property damaged in the exercise of powers

 49-3    granted by this chapter shall be restored or repaired and placed in

 49-4    its original condition as nearly as practicable.

 49-5          (c)  An authority has full easements and rights-of-way

 49-6    through, across, under, and over any property owned by the state or

 49-7    any local governmental entity that are necessary or convenient to

 49-8    construct, acquire, or efficiently operate a turnpike project or

 49-9    system under this chapter.

49-10          Sec. 366.171.  PUBLIC UTILITY FACILITIES.  (a)  An authority

49-11    may adopt rules for the installation,  construction, operation,

49-12    maintenance, repair, renewal, relocation, and removal of a public

49-13    utility facility in, on, along, over, or under a turnpike project.

49-14          (b)  If an authority determines it is necessary that a public

49-15    utility facility located in, on, along, over, or under a turnpike

49-16    project be relocated in the turnpike project, removed from the

49-17    turnpike project, or carried along or across the turnpike project

49-18    by grade separation, the owner or operator of the utility facility

49-19    shall relocate or remove the facility in accordance with the

49-20    requirements of the authority and in a manner that does not impede

49-21    the design, financing, construction, operation, or maintenance of

49-22    the turnpike project.  The authority, as a part of the cost of the

49-23    turnpike project or the cost of operating the turnpike project,

49-24    shall pay the cost of the relocation, removal, or grade separation,

49-25    including the cost of:

49-26                (1)  installation of the facility in a new location;

49-27                (2)  interests in real property and other rights

 50-1    acquired to accomplish the relocation or removal; and

 50-2                (3)  maintenance of grade separation structures.

 50-3          (c)  The authority may reduce the total costs to be paid by

 50-4    the authority under Subsection (b) by 10 percent for each 30-day

 50-5    period or portion of a 30-day period by which the relocation

 50-6    exceeds the limit specified by the authority.  If an owner or

 50-7    operator of a public utility facility does not timely remove or

 50-8    relocate as required under Subsection (b), the authority may do so

 50-9    at the expense of the public utility. If the authority determines

50-10    that a delay in relocation is the result of circumstances beyond

50-11    the control of the utility, full costs shall be paid by the

50-12    authority.

50-13          (d)  Chapter 228, Acts of the 51st Legislature, Regular

50-14    Session, 1949 (Article 1436a, Vernon's Texas Civil Statutes),

50-15    applies to the erection, construction, maintenance, and operation

50-16    of lines and poles owned by a corporation described by Section 1 of

50-17    that Act over, under, across, on, and along a turnpike project or

50-18    system constructed by an authority.  An authority has the powers

50-19    and duties delegated to the commissioners court by that Act, and an

50-20    authority has exclusive jurisdiction and control of utilities

50-21    located in its rights-of-way.

50-22          (e)  The laws of this state applicable to the use of public

50-23    roads, streets, and waters by a telephone and telegraph corporation

50-24    apply to the erection, construction, maintenance, location, and

50-25    operation of a line, pole, or other fixture by a telephone and

50-26    telegraph corporation over, under, across, on, and along a turnpike

50-27    project or system constructed by an authority under this chapter.

 51-1          (f)  In this section "public utility facility" means a track,

 51-2    pipe, main, conduit, cable, wire, tower, pole, or other item of

 51-3    plant or equipment or an appliance of a public utility or other

 51-4    person.

 51-5          Sec. 366.172.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

 51-6    PROJECT.  (a)  An authority may lease, sell, or convey in another

 51-7    manner a turnpike project to the department, a county, or a local

 51-8    government corporation created under Chapter 431.

 51-9          (b)  An agreement to lease, sell, or convey a turnpike

51-10    project under this section must provide for the discharge and final

51-11    payment or redemption of the authority's outstanding bonded

51-12    indebtedness for the turnpike project and may not be prohibited

51-13    under the bond proceedings applicable to the system, if any, of

51-14    which the turnpike project is a part.

51-15          Sec. 366.173.  REVENUE.  (a)  An authority may:

51-16                (1)  impose tolls for the use of each of its turnpike

51-17    projects and systems and the  different parts or sections of each

51-18    of its turnpike projects and systems; and

51-19                (2)  contract with a person for the use of part of a

51-20    turnpike project or system or lease or sell part of a turnpike

51-21    project or system, including the right-of-way adjoining the paved

51-22    portion, for any purpose, including placing on the adjoining

51-23    right-of-way a gas station, garage, store, hotel, restaurant,

51-24    parking facility, railroad track, billboard, livestock pasturage,

51-25    telephone line or facility, telecommunication line or facility,

51-26    data transmission line or facility, and electric line or facility,

51-27    under terms set by the authority.

 52-1          (b)  Tolls must be set so that the aggregate of tolls from an

 52-2    authority's turnpike project or system, together with other revenue

 52-3    of the turnpike project or system:

 52-4                (1)  provides revenue sufficient to pay:

 52-5                      (A)  the cost of maintaining, repairing, and

 52-6    operating the turnpike project or system; and

 52-7                      (B)  the principal of and interest on the bonds

 52-8    issued for the turnpike project or system as those bonds become due

 52-9    and payable; and

52-10                (2)  creates a reserve for a purpose listed under

52-11    Subdivision (1).

52-12          (c)  Tolls are not subject to supervision or regulation by

52-13    any state agency or other local governmental entity.

52-14          (d)  Tolls and other revenue derived from a turnpike project

52-15    or system for which bonds are issued, except the part necessary to

52-16    pay the cost of maintenance, repair, and operation and to provide

52-17    reserves for those costs as may be provided in the bond

52-18    proceedings, shall be set aside at regular intervals as may be

52-19    provided in the bond resolution or trust agreement in a sinking

52-20    fund that is pledged to and charged with the payment of:

52-21                (1)  interest on the bonds as it becomes due;

52-22                (2)  principal of the bonds as it becomes due;

52-23                (3)  necessary charges of paying agents for paying

52-24    principal and interest; and

52-25                (4)  the redemption price or the purchase price of

52-26    bonds retired by call or purchase as provided by the bond

52-27    proceedings.

 53-1          (e)  Use and disposition of money to the credit of the

 53-2    sinking fund is subject to the bond proceedings.

 53-3          (f)  To the extent permitted under the applicable bond

 53-4    proceedings, revenue from one turnpike project of an authority may

 53-5    be used to pay the cost of other turnpike projects of the

 53-6    authority.

 53-7          Sec. 366.174.  AUTHORITY REVOLVING FUND.  (a)  An authority

 53-8    may maintain a revolving fund to be held in trust by a banking

 53-9    institution chosen by the authority separate from any other funds

53-10    and administered by the authority's board.

53-11          (b)  An authority may transfer into its revolving fund money

53-12    from any permissible source, including:

53-13                (1)  money from a turnpike project if the transfer does

53-14    not diminish the money available for the project or the system to

53-15    less than an amount required to be retained by the bond proceedings

53-16    pertaining to the project or system;

53-17                (2)  money received by the authority from any source

53-18    and not otherwise committed, including money from the transfer of a

53-19    turnpike project or system or sale of authority assets;

53-20                (3)  advances authorized under Section 52-b, Article

53-21    III, Texas Constitution; and

53-22                (4)  contributions, loans, grants, or assistance from

53-23    the United States, another state, a political subdivision of this

53-24    state, a foreign governmental entity, including the United Mexican

53-25    States or a state of the United Mexican States, a local

53-26    governmental entity, any private enterprise, or any person.

53-27          (c)  The authority may use money in the revolving fund to:

 54-1                (1)  finance the acquisition, construction,

 54-2    maintenance, or operation of a turnpike project or system,

 54-3    including the extension, expansion, or improvement of a project or

 54-4    system;

 54-5                (2)  provide matching money required in connection with

 54-6    any federal, state, local, or private aid, grant, or other funding,

 54-7    including aid or funding by or with public-private partnerships;

 54-8                (3)  provide credit enhancement either directly or

 54-9    indirectly for bonds issued to acquire, construct, extend, expand,

54-10    or improve a turnpike project or system;

54-11                (4)  provide security for or payment of future or

54-12    existing debt for the design, acquisition, construction, operation,

54-13    maintenance, extension, expansion, or improvement of a turnpike

54-14    project or system;

54-15                (5)  borrow money and issue promissory notes or other

54-16    indebtedness payable out of the revolving fund for any purpose

54-17    authorized by this chapter; and

54-18                (6)  provide for any other reasonable purpose that

54-19    assists in the financing of an authority as authorized by this

54-20    chapter.

54-21          (d)  Money spent or advanced from the revolving fund for a

54-22    turnpike project or system must be reimbursed from the money of

54-23    that turnpike project or system, and there must be a reasonable

54-24    expectation of such repayment at the time of authorization.

54-25          Sec. 366.175.  USE OF SURPLUS REVENUE.  The board of an

54-26    authority may by resolution authorize the  use of surplus revenue

54-27    of a turnpike project or system to pay the costs of another

 55-1    turnpike project or system other than a project financed under

 55-2    Subchapter G.  The board may in the resolution prescribe terms for

 55-3    the use of the revenue, including the pledge of the revenue, but

 55-4    may not take an action under this section that violates, impairs,

 55-5    or is inconsistent with a bond resolution, trust agreement, or

 55-6    indenture governing the use of the surplus revenue.

 55-7          Sec. 366.176.  EXEMPTION FROM TAXATION OR ASSESSMENT.

 55-8    (a)  An authority is exempt from  taxation of or assessments on:

 55-9                (1)  a turnpike project or system;

55-10                (2)  property the authority acquires or uses under this

55-11    chapter; or

55-12                (3)  income from property described by Subdivision (1)

55-13    or (2).

55-14          (b)  An authority is exempt from payment of development fees,

55-15    utility connection fees, assessments, and service fees imposed or

55-16    assessed by a county, municipality, road and utility district,

55-17    river authority, any other state or local governmental entity, or

55-18    any property owners' or homeowners' association.

55-19          Sec. 366.177.  ACTIONS AFFECTING EXISTING ROADS.  (a)  An

55-20    authority may impose a toll for transit  over an existing free

55-21    road, street, or public highway transferred to the authority under

55-22    this chapter.

55-23          (b)  An authority may construct a grade separation at an

55-24    intersection of a turnpike project with a railroad or highway and

55-25    change the line or grade of a highway to accommodate the design of

55-26    the grade separation.  The action may not affect a segment of the

55-27    state highway system without the department's consent.  The

 56-1    authority shall pay the cost of a grade separation and any damage

 56-2    incurred in changing a line or grade of a railroad or highway as

 56-3    part of the cost of the turnpike project.

 56-4          (c)  If feasible, an authority shall provide access to

 56-5    properties previously abutting a county or other public road that

 56-6    is taken for a turnpike project and shall pay abutting property

 56-7    owners the expenses or any resulting damages for a denial of access

 56-8    to the road.

 56-9          Sec. 366.178.  FAILURE OR REFUSAL TO PAY TOLL.  (a)  A motor

56-10    vehicle other than a police or emergency vehicle that passes

56-11    through a toll collection facility, whether driven or towed, shall

56-12    pay the proper toll.

56-13          (b)  A person who fails or refuses to pay a toll provided for

56-14    the use of a project is liable for a fine not to exceed $250, plus

56-15    an administrative fee incurred in connection with the violation.

56-16          (c)  If a person fails to pay the proper toll:

56-17                (1)  on issuance of a notice of nonpayment, the

56-18    registered owner of the nonpaying vehicle shall pay both the proper

56-19    toll and the administrative fee;

56-20                (2)  an authority may charge an administrative fee of

56-21    not more than $100 to recover the cost of collecting the unpaid

56-22    toll; and

56-23                (3)  an authority has a lien on the vehicle driven by

56-24    the person for the amount of the toll and may take and retain  the

56-25    vehicle until the proper toll and applicable administrative fee

56-26    have been paid.

56-27          (d)  Notice of nonpayment under Subsection (c)(1) shall be

 57-1    sent by first-class mail and may not require payment of the proper

 57-2    toll and the administrative fee before the 30th day after the date

 57-3    the notice is mailed.  The registered owner shall pay a separate

 57-4    toll and administrative fee for each nonpayment.

 57-5          (e)  If the registered owner of the vehicle fails to pay the

 57-6    proper toll and administrative fee in the time specified by the

 57-7    notice, the owner shall be cited as for other traffic violations by

 57-8    a peace officer of the authority or as otherwise provided by law,

 57-9    and the owner shall pay a fine of not more than $250 for each

57-10    nonpayment.

57-11          (f)  In the prosecution of a violation for nonpayment, proof

57-12    that the vehicle passed through a toll collection facility without

57-13    payment of the proper toll together with proof that the defendant

57-14    was the registered owner or the driver of the vehicle when the

57-15    failure to pay occurred, establishes the nonpayment of the

57-16    registered owner.  The proof may be by testimony of a peace officer

57-17    or authority employee, video surveillance, or any other reasonable

57-18    evidence.

57-19          (g)  The court of the local jurisdiction in which the

57-20    violation occurs may assess and collect the fine in addition to any

57-21    court costs.  The court shall collect the proper toll and

57-22    administrative fee and forward the toll and fee to the authority.

57-23          (h)  A registered owner who is the lessor of a vehicle for

57-24    which a notice of nonpayment has been issued is not liable if, not

57-25    later than the 30th day after the date the notice of nonpayment is

57-26    mailed, the registered owner provides to the authority a copy of

57-27    the lease agreement covering the vehicle on the date of the

 58-1    nonpayment.  The name and address of the lessee must be clearly

 58-2    legible. If the lessor timely provides the required information,

 58-3    the lessee of the vehicle on the date of the violation is

 58-4    considered to be the owner of the vehicle for purposes of this

 58-5    section.  The lessee is subject to prosecution for failure to pay

 58-6    the proper toll if the authority sends a notice of nonpayment to

 58-7    the lessee by first-class mail not later than the 30th day after

 58-8    the date of the receipt of the information from the lessor.

 58-9          Sec. 366.179.  USE AND RETURN OF TRANSPONDERS.  (a)  For

58-10    purposes of this section, a transponder is  a device placed on or

58-11    within an automobile that is capable of transmitting or receiving

58-12    information used to assess or collect tolls.  A transponder is

58-13    insufficiently funded if there is no money in the account for which

58-14    the transponder was issued.

58-15          (b)  Any law enforcement or peace officer of the Department

58-16    of Public Safety or any peace officer of an authority may seize a

58-17    stolen or insufficiently funded transponder and return it to the

58-18    authority that issued the transponder.  An insufficiently funded

58-19    transponder may not be seized before the 30th day after the date

58-20    that an authority has sent a notice of delinquency to the holder of

58-21    the account.

58-22          Sec. 366.180.  CONTROLLED ACCESS TO TURNPIKE PROJECTS.

58-23    (a)  An authority may designate a turnpike  project or a portion of

58-24    a project as a controlled-access toll road.

58-25          (b)  An authority by order may:

58-26                (1)  prohibit the use of or access to or from a

58-27    turnpike project by a motor vehicle, bicycle, other vehicle, or a

 59-1    pedestrian;

 59-2                (2)  deny access to or from:

 59-3                      (A)  its turnpike projects;

 59-4                      (B)  real property adjacent to its turnpike

 59-5    projects; or

 59-6                      (C)  a street, road, alley, highway, or other

 59-7    public or private way intersecting its turnpike projects;

 59-8                (3)  designate locations on its turnpike projects at

 59-9    which access to or from the toll road is permitted;

59-10                (4)  control, restrict, and determine the type and

59-11    extent of access permitted at a designated location of access to

59-12    the turnpike projects; or

59-13                (5)  erect appropriate protective devices to preserve

59-14    the utility, integrity, and use of its turnpike projects.

59-15          (c)  Denial of access to or from a segment of the state

59-16    highway system is subject to the approval of the commission.

59-17          Sec. 366.181.  PROMOTION OF TOLL ROADS.  An authority may

59-18    promote the use of its turnpike projects  by appropriate means,

59-19    including advertising or marketing as the authority determines

59-20    appropriate.

59-21          Sec. 366.182.  OPERATION OF TURNPIKE PROJECT; PEACE OFFICERS.

59-22    (a)  An authority shall police and  operate its turnpike projects

59-23    through a force of police, peace officers, toll-takers, and other

59-24    employees of the authority or through services contracted under

59-25    Subsection (b) or (c).

59-26          (b)  An authority may enter into an agreement with one or

59-27    more persons to provide, on terms and conditions approved by the

 60-1    authority, personnel and services to design, construct, operate,

 60-2    maintain, expand, enlarge, or extend the authority's turnpike

 60-3    projects.

 60-4          (c)  An authority may contract with any state or local

 60-5    government entity for the services of peace officers of that

 60-6    agency.

 60-7          (d)  An authority may employ and commission a force of peace

 60-8    officers.  A peace officer commissioned by the authority under this

 60-9    subsection holds office at the will of the authority.  A person may

60-10    not be commissioned as a peace officer under this subsection unless

60-11    the person meets all standards for licensing by the Commission on

60-12    Law Enforcement Officer Standards and Education.

60-13          Sec. 366.183.  AUDIT.  An authority shall have a certified

60-14    public accountant audit the authority's books and accounts at least

60-15    annually.  The cost of the audit may be treated as part of the cost

60-16    of construction or operation of a turnpike project.

60-17          Sec. 366.184.  DISADVANTAGED BUSINESSES.  (a)  Consistent

60-18    with general law, an authority shall:

60-19                (1)  set goals for the award of competitive contracts

60-20    to disadvantaged businesses;

60-21                (2)  attempt to identify disadvantaged businesses that

60-22    provide or may provide supplies, materials, equipment, or services

60-23    to the authority; and

60-24                (3)  give disadvantaged businesses full access to the

60-25    authority's contract bidding process, inform the businesses about

60-26    the process, offer the businesses assistance concerning the

60-27    process, and identify barriers to the businesses' participation in

 61-1    the process.

 61-2          (b)  This section does not exempt an authority from

 61-3    competitive bidding requirements provided by other law.

 61-4             (Sections 366.185-366.250 reserved for expansion

 61-5                         SUBCHAPTER F.  GOVERNANCE

 61-6          Sec. 366.251.  BOARD OF DIRECTORS.  (a)  An authority is

 61-7    governed by a board of directors.

 61-8          (b)  The commissioners court of each county of the authority

 61-9    shall appoint one director to serve on the board.  The governor

61-10    shall appoint three directors to serve on the board.

61-11          (c)  Directors shall be divided into two groups.  To the

61-12    greatest degree possible, each group shall contain an equal number

61-13    of directors.  Directors shall serve terms of two years, except

61-14    that one group of directors of the initial board of an authority

61-15    shall serve for a term of one year.

61-16          (d)  Each director appointed by the governor must have

61-17    resided in a county of the authority for at least one year before

61-18    the person's appointment. Each director appointed by a

61-19    commissioners court must have resided in that county for at least

61-20    one year before the person's appointment.

61-21          (e)  All appointments to the board shall be made without

61-22    regard to race, color, disability, sex, religion, age, or national

61-23    origin.

61-24          (f)  An elected official is not eligible to serve as a

61-25    director.

61-26          (g)  A vacancy in a position shall be filled promptly by the

61-27    entity that made the appointment.

 62-1          (h)  Each director has equal status and may vote.

 62-2          (i)  The board of an authority shall select one director as

 62-3    the presiding officer of the board to serve in that capacity until

 62-4    the person's term as a director expires. The board shall elect one

 62-5    director as assistant presiding officer.  The board shall select a

 62-6    secretary and treasurer, neither of whom need be a director.

 62-7          (j)  The vote of a majority attending a board meeting is

 62-8    necessary for any action taken by the board.  If a vacancy exists

 62-9    on a board, the majority of directors serving on the board is a

62-10    quorum.

62-11          Sec. 366.252.  CONFLICT OF INTEREST.  (a)  A person is not

62-12    eligible to serve on the board of an  authority if the person or

62-13    the person's spouse:

62-14                (1)  is registered, certified, or licensed by an

62-15    occupational regulatory agency in the field of toll road

62-16    construction, maintenance, or operation;

62-17                (2)  is employed by or participates in the management

62-18    of a business entity or other organization regulated by the

62-19    authority or receiving money from the authority;

62-20                (3)  owns or controls, directly or indirectly, more

62-21    than a 10 percent interest in a business entity or other

62-22    organization regulated by or receiving money from the authority,

62-23    other than compensation for acquisition of turnpike right-of-way;

62-24                (4)  uses or receives a substantial amount of tangible

62-25    goods, services, or money from the authority, other than

62-26    compensation or reimbursement authorized by law for board

62-27    membership, attendance, or expenses, or for compensation for

 63-1    acquisition of turnpike right-of-way;

 63-2                (5)  is an officer, employee, or paid consultant of a

 63-3    Texas trade association in the field of road construction,

 63-4    maintenance, or operation; or

 63-5                (6)  is required to register as a lobbyist under

 63-6    Chapter 305, Government Code, because of the person's activities

 63-7    for compensation on behalf of a profession related to the operation

 63-8    of the authority.

 63-9          (b)  A person may not act as the general counsel to an

63-10    authority if the person is required to register as a lobbyist under

63-11    Chapter 305, Government Code, because of the person's activities

63-12    for compensation on behalf of a profession related to the operation

63-13    of the authority.

63-14          (c)  In this section, "Texas trade association" means a

63-15    nonprofit, cooperative, and voluntarily joined association of

63-16    business or professional competitors in this state designed to

63-17    assist its members and its industry or profession in dealing with

63-18    mutual business or professional problems and in promoting their

63-19    common interests.

63-20          Sec. 366.253.  SURETY BONDS.  (a)  Before beginning a term,

63-21    each director shall execute a surety bond in the amount of $25,000,

63-22    and the secretary and treasurer shall execute a surety bond in the

63-23    amount of $50,000.

63-24          (b)  Each surety bond must be:

63-25                (1)  conditioned on the faithful performance of the

63-26    duties of office;

63-27                (2)  executed by a surety company authorized to

 64-1    transact business in this state; and

 64-2                (3)  filed with the secretary of state's office.

 64-3          (c)  The authority shall pay the expense of the bonds.

 64-4          Sec. 366.254.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

 64-5    removal of a director from the board if  the director:

 64-6                (1)  did not have at the time of appointment the

 64-7    qualifications required by Section 366.251(d);

 64-8                (2)  whether at the time of appointment or at any time

 64-9    during the director's term, is ineligible under Section 366.251(f)

64-10    or 366.252 to serve as a director;

64-11                (3)  cannot discharge the director's duties for a

64-12    substantial part of the term for which the director is appointed

64-13    because of illness or disability; or

64-14                (4)  is absent from more than half of the regularly

64-15    scheduled board meetings that the director is eligible to attend

64-16    during a calendar year unless the absence is excused by majority

64-17    vote of the board.

64-18          (b)  The validity of an action of the board is not affected

64-19    by the fact that it is taken when a ground for removal of a

64-20    director exists.

64-21          (c)  If the administrative head of the authority has

64-22    knowledge that a potential ground for removal exists, that person

64-23    shall notify the presiding officer of the board of the ground.  The

64-24    presiding officer shall then notify the person that appointed the

64-25    director  that a potential ground for removal exists.

64-26          Sec. 366.255.  COMPENSATION OF DIRECTOR.  Each director is

64-27    entitled to reimbursement for the  director's actual expenses

 65-1    necessarily incurred in the performance of the director's duties.

 65-2    A director is not entitled to any additional compensation for the

 65-3    director's services.

 65-4          Sec. 366.256.  EVIDENCE OF AUTHORITY ACTIONS.  Actions of an

 65-5    authority are the actions of its board  and may be evidenced in any

 65-6    legal manner, including a board resolution.

 65-7          Sec. 366.257.  PUBLIC ACCESS.  An authority shall:

 65-8                (1)  make and implement policies that provide the

 65-9    public with a reasonable opportunity to appear before the board to

65-10    speak on any issue under the jurisdiction of the authority; and

65-11                (2)  prepare and maintain a written plan that describes

65-12    how an individual who does not speak English or who has a physical,

65-13    mental, or developmental disability may be provided reasonable

65-14    access to the authority's programs.

65-15          Sec. 366.258.  INDEMNIFICATION.  (a)  An authority may

65-16    indemnify one or more of its directors or  officers for necessary

65-17    expenses and costs, including attorney's fees, incurred by the

65-18    directors or officers in connection with any claim asserted against

65-19    the directors or officers in their respective capacities as

65-20    directors or officers.

65-21          (b)  If an authority does not fully indemnify a director or

65-22    officer as provided by Subsection (a), the court in a proceeding in

65-23    which any claim against the director or officer is asserted or any

65-24    court with jurisdiction of an action instituted by the director or

65-25    officer on a claim for indemnity may assess indemnity against the

65-26    authority, its receiver, or trustee only if the court finds that,

65-27    in connection with the claim, the director or officer is not guilty

 66-1    of negligence or misconduct.

 66-2          (c)  A court may not assess indemnity under Subsection (b)

 66-3    for an amount paid by the director or officer to the authority.

 66-4          (d)  This section applies to a former director or officer of

 66-5    the authority.

 66-6          Sec. 366.259.  PURCHASE OF LIABILITY INSURANCE.  (a)  An

 66-7    authority shall insure its officers and  employees from liability

 66-8    arising from the use, operation, or maintenance of equipment that

 66-9    is used or may be used in connection with the laying out,

66-10    construction, or maintenance of the authority's turnpike projects.

66-11          (b)  Insurance coverage under this section must be provided

66-12    by the purchase of a policy of liability insurance from a reliable

66-13    insurance company authorized to do business in this state.  The

66-14    form of the policy must be approved by the commissioner of

66-15    insurance.

66-16          (c)  This section is not a waiver of immunity of the

66-17    authority or the counties in an authority from liability for the

66-18    torts or negligence of an officer or employee of an authority.

66-19          (d)  In this section, "equipment" includes an automobile,

66-20    motor truck, trailer, aircraft, motor grader, roller, tractor,

66-21    tractor power mower, and other power equipment.

66-22          Sec. 366.260.  CERTAIN CONTRACTS AND SALES PROHIBITED.

66-23    (a)  A director, agent, or employee  of an authority may not:

66-24                (1)  contract with the authority; or

66-25                (2)  be directly or indirectly interested in:

66-26                      (A)  a contract with the authority; or

66-27                      (B)  the sale of property to the authority.

 67-1          (b)  A person who violates Subsection (a) is liable for a

 67-2    civil penalty to the authority not to exceed $1,000.

 67-3          (c)  Subsection (a) does not apply to the sale of turnpike

 67-4    right-of-way to an authority.

 67-5          Sec. 366.261.  ANNUAL REPORTS.  Not later than March 31 of

 67-6    each year, the directors and the  administrative head of an

 67-7    authority shall file with the commissioners court of each county of

 67-8    the  authority a written report on the authority's activities.  At

 67-9    the invitation of a commissioners court of a county in the

67-10    authority, the board and the administrative head of an authority

67-11    shall appear before the commissioners court to present the report

67-12    and receive questions and comments.

67-13          Sec. 366.262.  MEETINGS BY TELEPHONE CONFERENCE CALL.

67-14    (a)  Chapter 551, Government Code, does not prohibit any open or

67-15    closed meeting of the board, a committee of the board, or the

67-16    staff, or any combination of the board or staff, from being held by

67-17    telephone conference call.

67-18          (b)  A telephone conference call meeting is subject to the

67-19    notice requirements applicable to other meetings.

67-20          (c)  Notice of a telephone conference call meeting that by

67-21    law must be open to the public must specify the location of the

67-22    meeting.  The location must be a conference room of the authority

67-23    or other facility in a county of the authority that is accessible

67-24    to the public.

67-25          (d)  Each part of the telephone conference call meeting that

67-26    by law must be open to the public shall be audible to the public at

67-27    the location specified in the notice and shall be tape-recorded or

 68-1    documented by written minutes.  On conclusion of the meeting, the

 68-2    tape recording or the written minutes of the meeting shall be made

 68-3    available to the public.

 68-4             (Sections 366.263-366.300 reserved for expansion

 68-5             SUBCHAPTER G.  AID FOR REGIONAL TURNPIKE PROJECTS

 68-6          Sec. 366.301.  DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS.

 68-7    (a)  To the extent permitted by the Texas Constitution, the

 68-8    department may agree with an authority to provide for or contribute

 68-9    to the payment of costs of financial or engineering and traffic

68-10    feasibility studies and the design, financing, acquisition,

68-11    construction, operation, or maintenance of a turnpike project or

68-12    system on terms agreed on by the commission or department, as

68-13    applicable, and the authority.  The agreement may not be

68-14    inconsistent with the rights of the bondholders or persons

68-15    operating the turnpike project under a lease or other contract.

68-16          (b)  The department may use its engineering and other

68-17    personnel, including consulting engineers and traffic engineers, to

68-18    conduct feasibility studies under Subsection (a).

68-19          (c)  An obligation or expense incurred by the commission or

68-20    department under this section is a part of the cost of the turnpike

68-21    project for which the obligation or expense was incurred.  Money

68-22    from the state highway fund spent under this section must be repaid

68-23    from tolls or other revenue of the turnpike project or system on

68-24    which the money from the state highway fund was expended.

68-25          (d)  The commission or department may use federal money for

68-26    any purpose described by this chapter.

68-27          Sec. 366.302.  AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE

 69-1    TURNPIKE PROJECTS.  (a)  An authority  may enter into an agreement

 69-2    with a public or private entity, including a toll road corporation,

 69-3    the United States, a state of the United States, the United Mexican

 69-4    States, a state of the United Mexican States, a local governmental

 69-5    entity, or another political subdivision, to permit the entity,

 69-6    jointly with the authority, to study the feasibility of a turnpike

 69-7    project or system or to acquire, design, finance, construct,

 69-8    maintain, repair, operate, extend, or expand a turnpike project or

 69-9    system.

69-10          (b)  An authority has broad discretion to negotiate

69-11    provisions in a development agreement with a private entity.  The

69-12    provisions may include provisions relating to:

69-13                (1)  the design, financing, construction, maintenance,

69-14    and operation of a turnpike project or system in accordance with

69-15    standards adopted by the authority; and

69-16                (2)  professional and consulting services to be

69-17    rendered under standards adopted by the authority in connection

69-18    with a turnpike project or system.

69-19          (c)  An authority may not incur a financial obligation on

69-20    behalf of, or otherwise guarantee the obligations of, a private

69-21    entity that constructs, maintains, or operates a turnpike project

69-22    or system.

69-23          (d)  An authority or a county in an authority is not liable

69-24    for any financial or other obligation of a turnpike project solely

69-25    because a private entity constructs, finances, or operates any part

69-26    of a turnpike project or system.

69-27          (e)  An authority may authorize the investment of public and

 70-1    private money, including debt and equity participation, to finance

 70-2    a function described by this section.

 70-3          Sec. 366.303.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL

 70-4    GOVERNMENTAL ENTITIES.  (a)  A local governmental entity other than

 70-5    a nonprofit corporation may, consistent with the Texas

 70-6    Constitution, issue bonds or enter into and make payments under

 70-7    agreements with an authority to acquire, construct, maintain, or

 70-8    operate a turnpike project or system.  The entity may levy and

 70-9    collect taxes to pay the interest on the bonds and to provide a

70-10    sinking fund for the redemption of the bonds.

70-11          (b)  In addition to the powers provided by Subsection (a), a

70-12    local governmental entity may, within any applicable constitutional

70-13    limitations, agree with an authority to issue bonds or enter into

70-14    and make payments under an agreement to acquire, construct,

70-15    maintain, or operate any portion of a turnpike project or system of

70-16    that authority.

70-17          (c)  To make payments under an agreement under Subsection

70-18    (b), to pay the interest on bonds issued under Subsection (b), or

70-19    to provide a sinking fund for the bonds or the contract, a local

70-20    governmental entity may:

70-21                (1)  pledge revenue from any available source,

70-22    including annual appropriations;

70-23                (2)  levy and collect taxes; or

70-24                (3)  provide for a combination of Subdivisions (1) and

70-25    (2).

70-26          (d)  The term of an agreement under this section may not

70-27    exceed 40 years.

 71-1          (e)  Any election required to permit action under this

 71-2    subchapter must be held in conformity with Chapter 1, Title 22,

 71-3    Revised Statutes, or other law applicable to the local governmental

 71-4    entity.

 71-5          Sec. 366.304.  ADDITIONAL AGREEMENTS OF AUTHORITY.  An

 71-6    authority may enter into any agreement  necessary or convenient to

 71-7    achieve the purposes of this subchapter.

 71-8          SECTION 24.  Article 2.12, Code of Criminal Procedure, as

 71-9    amended by Chapters 621 and 729, Acts of the 74th Legislature,

71-10    Regular Session, 1995, is amended to read as follows:

71-11          Art. 2.12.  WHO ARE PEACE OFFICERS.  The following are peace

71-12    officers:

71-13                (1)  sheriffs and their deputies;

71-14                (2)  constables and deputy constables;

71-15                (3)  marshals or police officers of an incorporated

71-16    city, town, or village;

71-17                (4)  rangers and officers commissioned by the Public

71-18    Safety Commission and the Director of the Department of Public

71-19    Safety;

71-20                (5)  investigators of the district attorneys', criminal

71-21    district attorneys', and county attorneys' offices;

71-22                (6)  law enforcement agents of the Texas Alcoholic

71-23    Beverage Commission;

71-24                (7)  each member of an arson investigating unit

71-25    commissioned by a city, a county, or the state;

71-26                (8)  officers commissioned under Section 37.081,

71-27    Education Code, or Subchapter E, Chapter 51, Education Code;

 72-1                (9)  officers commissioned by the General Services

 72-2    Commission;

 72-3                (10)  law enforcement officers commissioned by the

 72-4    Parks and Wildlife Commission;

 72-5                (11)  airport police officers commissioned by a city

 72-6    with a population of more than one million, according to the most

 72-7    recent federal census, that operates an airport that serves

 72-8    commercial air carriers;

 72-9                (12)  airport security personnel commissioned as peace

72-10    officers by the governing body of any political subdivision of this

72-11    state, other than a city described by Subdivision (11), that

72-12    operates an airport that serves commercial air carriers;

72-13                (13)  municipal park and recreational patrolmen and

72-14    security officers;

72-15                (14)  security officers commissioned as peace officers

72-16    by the State Treasurer;

72-17                (15)  officers commissioned by a water control and

72-18    improvement district under Section 51.132, Water Code;

72-19                (16)  officers commissioned by a board of trustees

72-20    under Chapter 341, Acts of the 57th Legislature, Regular Session,

72-21    1961 (Article 1187f, Vernon's Texas Civil Statutes);

72-22                (17)  investigators commissioned by the Texas State

72-23    Board of Medical Examiners;

72-24                (18)  officers commissioned by the board of managers of

72-25    the Dallas County Hospital District, the Tarrant County Hospital

72-26    District, or the Bexar County Hospital District under Section

72-27    281.057, Health and Safety Code;

 73-1                (19)  county park rangers commissioned under Subchapter

 73-2    E, Chapter 351, Local Government Code;

 73-3                (20)  investigators employed by the Texas Racing

 73-4    Commission;

 73-5                (21)  officers commissioned by the State Board of

 73-6    Pharmacy;

 73-7                (22)  officers commissioned by the governing body of a

 73-8    metropolitan rapid transit authority under Chapter 451 or 452,

 73-9    Transportation Code [Section 13, Chapter 141, Acts of the 63rd

73-10    Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas

73-11    Civil Statutes), or by a regional transportation authority under

73-12    Section 10, Chapter 683, Acts of the 66th Legislature, Regular

73-13    Session, 1979 (Article 1118y, Vernon's Texas Civil Statutes)];

73-14                (23)  [officers commissioned under the Texas High-Speed

73-15    Rail Act (Article 6674v.2, Revised Statutes);]

73-16                [(24)]  investigators commissioned by the attorney

73-17    general under Section 402.009, Government Code;

73-18                (24) [(25)]  security officers and investigators

73-19    commissioned as peace officers  under Chapter 466, Government Code;

73-20                (25) [(26)]  an officer employed by the Texas

73-21    Department of Health under Section  431.2471, Health and Safety

73-22    Code;

73-23                (26) [(27)]  officers appointed by an appellate court

73-24    under Subchapter F, Chapter  53, Government Code;

73-25                (27) [(28)]  officers commissioned by the state fire

73-26    marshal under Chapter 417,  Government Code; [and]

73-27                (28) [(29)]  an investigator commissioned by the

 74-1    commissioner of insurance under Article 1.10D, Insurance Code;[.]

 74-2                (29)  apprehension specialists commissioned by the

 74-3    Texas Youth Commission as officers under Section 61.0931, Human

 74-4    Resources Code; and

 74-5                (30)  an officer commissioned as a peace officer by a

 74-6    regional tollway authority under Subchapter E, Chapter 366,

 74-7    Transportation Code.

 74-8          SECTION 25.  (a)  Notwithstanding Section 366.031,

 74-9    Transportation Code, as added by this Act, the North Texas Tollway

74-10    Authority is established as a regional  tollway authority under

74-11    Chapter 366, Transportation Code, as added by this Act.

74-12          (b)  The North Texas Tollway Authority consists of all

74-13    territory in Collin, Dallas, Denton, and Tarrant counties. The

74-14    operations of the authority may extend to other counties as

74-15    permitted under Section 366.161, Transportation Code, as added by

74-16    this Act, and the jurisdiction of the authority may be expanded to

74-17    include other counties under Section 366.031, Transportation Code,

74-18    as added by this Act.

74-19          (c)  The initial board of directors of the North Texas

74-20    Tollway Authority is composed  of nine directors as follows:

74-21                (1)  three directors appointed by the governor;

74-22                (2)  one director appointed by the commissioners court

74-23    of each county in the authority; and

74-24                (3)  the county judges of two of the counties of the

74-25    authority.

74-26          (d)  The terms of the initial directors of the North Texas

74-27    Tollway Authority begin on September 1, 1997.  The county judges

 75-1    serving as initial directors shall each serve a one-year term.  At

 75-2    the expiration of that term, the seats held by the county judges

 75-3    are not refilled, and the number of directors composing the board

 75-4    is reduced to seven.

 75-5          (e)  One of the directors of the North Texas Tollway

 75-6    Authority appointed to the initial board by the governor serves a

 75-7    one-year term.  Each successor to that director shall be appointed

 75-8    by the governor for a two-year term.

 75-9          (f)  The two directors appointed to the initial board of the

75-10    North Texas Tollway Authority by the commissioners courts of the

75-11    counties whose county judges serve as initial directors each serve

75-12    a one-year term.  Each successor to those directors shall be

75-13    appointed for a two-year term. The remaining initial directors

75-14    serve two-year terms.

75-15          SECTION 26.  Sections 361.003, 361.038, 361.039, 361.040,

75-16    361.041,  361.044, 361.045, 361.047, 361.048, 361.139, 361.190,

75-17    361.284, and 361.331(e), Transportation Code, are repealed.

75-18          SECTION 27.  (a)  The Texas Turnpike Authority is abolished

75-19    and the Texas Turnpike Authority division of the Texas Department

75-20    of Transportation is created on the effective date of this Act.

75-21    Except as provided by Subsections (b) and (c) of this section, all

75-22    assets, rights, and obligations of the Texas Turnpike Authority are

75-23    transferred to the division.

75-24          (b)  The North Texas Tollway Authority shall succeed to all

75-25    assets, rights, and other property of the Texas Turnpike Authority

75-26    located in Collin, Dallas, Denton, or Tarrant County, including all

75-27    assets and rights that relate to the Dallas North Tollway, the

 76-1    Addison Airport Toll Tunnel, the President George Bush Turnpike,

 76-2    and the Mountain Creek Lake Bridge.

 76-3          (c)  The North Texas Tollway Authority shall assume and

 76-4    become liable for all duties and obligations of the Texas Turnpike

 76-5    Authority related to the assets, rights, and properties transferred

 76-6    under Subsection (b) of this section, including contracts and bonds

 76-7    secured by the revenues of the assets.  The North Texas Tollway

 76-8    Authority is obligated to comply with all the assumed obligations

 76-9    to the same extent as the Texas Turnpike Authority.

76-10          (d)  An employee of the Texas Turnpike Authority may elect to

76-11    become an employee of either the Texas Turnpike Authority division

76-12    of the Texas Department of Transportation or the North Texas

76-13    Tollway Authority on the effective date of this Act, subject to the

76-14    employment openings and requirements of those agencies.

76-15          (e)  A rule or regulation adopted by the Texas Turnpike

76-16    Authority relating to the operation of a turnpike in Collin,

76-17    Dallas, Denton, or Tarrant County before the effective date of this

76-18    Act that is not inconsistent with this Act remains in effect as a

76-19    rule or regulation of the North Texas Tollway Authority until

76-20    superseded by action of that agency.

76-21          SECTION 28.  As additional consideration for the transfer of

76-22    the properties described in Section  27(b) of this Act, the North

76-23    Texas Tollway Authority shall pay to the Texas Department of

76-24    Transportation an amount to be agreed on by the authority and the

76-25    department not later than October 1, 1997.  In determining the

76-26    amount, the authority and the department shall ensure that

76-27    following the payment, the authority is in compliance with all bond

 77-1    resolutions, bond indentures, credit agreements, and all other

 77-2    agreements assumed by the authority and that reserves held by the

 77-3    authority as required under or in connection with the resolutions,

 77-4    indentures, credit agreements, and other agreements shall be

 77-5    maintained at a level consistent with the Texas Turnpike

 77-6    Authority's historical practices.

 77-7          SECTION 29.  The North Texas Tollway Authority is a successor

 77-8    agency to the Texas Turnpike  Authority for all purposes, including

 77-9    for the purpose of Section 52-b, Article III, Texas Constitution,

77-10    concerning all assets, rights, other property, duties, and

77-11    obligations transferred to the authority under Section 27(b) of

77-12    this Act.  Any existing agreement by and between the Texas Turnpike

77-13    Authority  and the state, the Texas Transportation Commission, the

77-14    Texas Department of Transportation, the Federal Highway

77-15    Administration, the United States Department of Transportation, any

77-16    other federal or state governmental entity, or any local

77-17    governmental entity that pertains to an asset, right, or obligation

77-18    transferred to the North Texas Turnpike Authority under this Act is

77-19    binding on, benefits, and is fully enforceable by and against the

77-20    North Texas Turnpike Authority as successor to the Texas Turnpike

77-21    Authority.

77-22          SECTION 30.  In addition to the substantive changes made by

77-23    this Act, this Act conforms Chapter 361, Transportation Code, to

77-24    the changes made by Sections 1 and 2, Chapter 148, Acts of the 74th

77-25    Legislature, 1995.  To the extent of any conflict between this Act

77-26    and another Act of the 75th Legislature relating to nonsubstantive

77-27    changes in enacted codes, this Act prevails.

 78-1          SECTION 31.  This Act takes effect September 1, 1997.

 78-2          SECTION 32.  The importance of this legislation and the

 78-3    crowded condition of the calendars in both houses create an

 78-4    emergency and an imperative public necessity that the

 78-5    constitutional rule requiring bills to be read on three several

 78-6    days in each house be suspended, and this rule is hereby suspended.