1-1     By:  Sibley, Armbrister, Shapiro                       S.B. No. 369

 1-2           (In the Senate - Filed March 13, 1997; March 17, 1997, read

 1-3     first time and referred to Committee on International Relations,

 1-4     Trade, and Technology; April 16, 1997, reported adversely, with

 1-5     favorable Committee Substitute by the following vote:  Yeas 9, Nays

 1-6     0; April 16, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 369                  By:  Ratliff

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the abolition of the Texas Turnpike Authority and the

1-11     transfer of its functions to the Texas Department of Transportation

1-12     and newly created regional tollway authorities; authorizing the

1-13     issuance of bonds and the imposition of taxes; granting the power

1-14     of eminent domain; and providing a civil penalty.

1-15           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-16           SECTION 1.  Chapter 222, Transportation Code, is amended by

1-17     adding Subchapter E to read as follows:

1-18                       SUBCHAPTER E.  TOLL FACILITIES

1-19           Sec. 222.101.  EXPENDITURE OF MONEY.  The department may

1-20     spend money from any source for the construction, maintenance, and

1-21     operation of toll facilities.

1-22           Sec. 222.102.  TEMPORARY TOLL PROJECTS.  The department may

1-23     recover the cost of a preventative maintenance or rehabilitation

1-24     project on a nontoll segment of the state highway system by

1-25     temporarily imposing a toll charge.

1-26           Sec. 222.103.  COST PARTICIPATION.  (a)  The department may

1-27     participate in the cost of the construction, maintenance, or

1-28     operation of a toll facility of a public or private entity on terms

1-29     and conditions established by the commission, including

1-30     requirements for repayment.

1-31           (b)  An entity receiving cost participation from the

1-32     department under this section is a successor agency to the Texas

1-33     Turnpike Authority for the purposes of Section 52-b, Article III,

1-34     Texas Constitution.

1-35           SECTION 2.  Section 362.055, Transportation Code, is amended

1-36     to read as follows:

1-37           Sec. 362.055.  EXCEPTION.  This subchapter does not apply to:

1-38                 (1)  a county that has a population of more than 1.5

1-39     million; [or]

1-40                 (2)  a local government corporation created under

1-41     Chapter 431 by a county that has a population of more than 1.5

1-42     million; or

1-43                 (3)  a regional tollway authority created under Chapter

1-44     366.

1-45           SECTION 3.  Section 361.001, Transportation Code, is amended

1-46     to read as follows:

1-47           Sec. 361.001.  DEFINITIONS.  In this chapter:

1-48                 (1)  "Authority" means the Texas Turnpike Authority

1-49     division of the Texas Department of Transportation [and includes

1-50     the entity that succeeds to the principal functions of the

1-51     authority or to whom by law the powers of the authority are given].

1-52                 (2)  "Board" means the board of directors of the

1-53     authority.

1-54                 (3)  ["Highway" means a road, highway, farm-to-market

1-55     road, or street under the supervision of the state or a political

1-56     subdivision of the state.]

1-57                 [(4)]  "Owner" includes a person having title to or an

1-58     interest in any property, rights, easements, and interests

1-59     authorized to be acquired under this chapter.

1-60                 (4) [(5)]  "Turnpike project" means a toll [an express]

1-61     highway constructed, maintained, or operated under this chapter as

1-62     part of the state highway system and any improvement, extension, or

1-63     expansion to the highway and includes:

1-64                       (A)  a facility to relieve traffic congestion and

 2-1     promote safety;

 2-2                       (B)  a bridge, tunnel, overpass, underpass,

 2-3     interchange, entrance plaza, approach, toll house, or service

 2-4     station;

 2-5                       (C)  an administration, storage, or other

 2-6     building the authority considers necessary to operate the project;

 2-7     and

 2-8                       (D)  property rights, easements, and interests

 2-9     the authority acquires to construct or operate the project.

2-10                 (5)  "Regional tollway authority" means a regional

2-11     tollway authority created under Chapter 366.

2-12           SECTION 4.  Section 361.031, Transportation Code, is amended

2-13     to read as follows:

2-14           Sec. 361.031.  TEXAS TURNPIKE AUTHORITY.  (a)  The Texas

2-15     Turnpike Authority is a division of the Texas Department of

2-16     Transportation that has full authority to exercise all powers

2-17     granted to it under this chapter.  Powers granted to the department

2-18     under this chapter and Chapter 362 to study, design, construct,

2-19     operate, expand, enlarge, or extend a turnpike project as a part of

2-20     the state highway system shall be exercised by the department

2-21     acting by and through the authority [state agency].

2-22           (b)  The authority may perform, procure from other divisions

2-23     of the department with the consent of the department, or procure

2-24     from outside service providers any portion of the services the

2-25     authority requires for:

2-26                 (1)  right-of-way acquisition;

2-27                 (2)  roadway finance, design, and construction;

2-28                 (3)  environmental affairs; or

2-29                 (4)  legal services.

2-30           (c)  With the approval of the commission, the authority may

2-31     perform, procure from other divisions of the department with the

2-32     consent of the department, or procure from outside service

2-33     providers any portion of the services the authority requires for

2-34     roadway maintenance or traffic operations.

2-35           (d)  To perform its functions under this chapter, the

2-36     authority may use the facilities and personnel of the department in

2-37     the same manner as other divisions of the department.

2-38           (e)  If the comptroller assigns numbers to state agencies for

2-39     accounting purposes, the comptroller shall assign a separate agency

2-40     number to the authority [shall locate offices in Austin, Texas, on

2-41     or before September 1, 1997].

2-42           (f) [(c)]  The exercise by the authority of the powers

2-43     conferred by this chapter in the construction, operation, and

2-44     maintenance of a turnpike project is:

2-45                 (1)  in all respects for the benefit of the people of

2-46     this state, for the increase of their commerce and prosperity, and

2-47     for the improvement of their health and living conditions and

2-48     public safety; and

2-49                 (2)  an essential governmental function of the state.

2-50           SECTION 5.  Subsections (a), (b), (c), (e), and (g), Section

2-51     361.032, Transportation Code, are amended to read as follows:

2-52           (a)  The board is composed of six [12] directors appointed by

2-53     the commission.  [The governor, with the advice and consent of the

2-54     senate, shall appoint nine directors who represent the public.

2-55     Each commission member serves as an ex officio board member.]

2-56           (b)  Directors [Appointed directors] serve terms of six years

2-57     with the terms of one-third of those directors expiring on February

2-58     15 of each odd-numbered year.

2-59           (c)  Each [appointed] director must have resided in this

2-60     state and in the county from which the person is appointed for at

2-61     least one year before the person's appointment.

2-62           (e)  The commission [governor] shall promptly fill vacancies

2-63     in unexpired terms.

2-64           (g)  The commission [governor] shall designate one director

2-65     as the presiding officer of the board to serve in that capacity at

2-66     the pleasure of the commission [governor].  The board shall elect

2-67     one director as assistant presiding officer and shall elect a

2-68     secretary and treasurer who need not be a director.

2-69           SECTION 6.  Section 361.033, Transportation Code, is amended

 3-1     to read as follows:

 3-2           Sec. 361.033.  CONFLICT OF INTEREST.  (a)  A person is not

 3-3     eligible for appointment to the board if the person or the person's

 3-4     spouse:

 3-5                 (1)  is registered, certified, or licensed by an

 3-6     occupational regulatory agency in the field of toll road

 3-7     construction, maintenance, or operation;

 3-8                 (2)  is employed by or participates in the management

 3-9     of a business entity or other organization regulated by the

3-10     commission, department, or authority or receiving funds from the

3-11     commission, department, or authority;

3-12                 (3)  owns or controls, directly or indirectly, more

3-13     than a 10 percent interest in a business entity or other

3-14     organization regulated by or receiving funds from the commission,

3-15     department, or authority, other than compensation for acquisition

3-16     of turnpike right-of-way; or

3-17                 (4)  uses or receives a substantial amount of tangible

3-18     goods, services, or funds from the commission, department, or

3-19     authority, other than compensation or reimbursement authorized by

3-20     law for board membership, attendance, or expenses or compensation

3-21     for acquisition of turnpike right-of-way.

3-22           (b)  An officer, employee, or paid consultant of a Texas

3-23     trade association in the field of road construction, maintenance,

3-24     or operation may not be a [an appointed] director.

3-25           (c)  The spouse of an officer, manager, or paid consultant of

3-26     a Texas trade association in the field of road construction,

3-27     maintenance, or operation may not be a [an appointed] director.

3-28           (d)  A person may not serve as a [an appointed] director or

3-29     act as the general counsel to the authority if the person is

3-30     required to register as a lobbyist under Chapter 305, Government

3-31     Code, because of the person's activities for compensation on behalf

3-32     of a profession related to the operation of the commission,

3-33     department, or authority.

3-34           (e)  In this section, "Texas trade association" means a

3-35     nonprofit, cooperative, and voluntarily joined association of

3-36     business or professional competitors in this state designed to

3-37     assist its members and its industry or profession in dealing with

3-38     mutual business or professional problems and in promoting their

3-39     common interests.

3-40           SECTION 7.  Section 361.035, Transportation Code, is amended

3-41     to read as follows:

3-42           Sec. 361.035.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

3-43     removal of a [an appointed] director from the board if the

3-44     director:

3-45                 (1)  does not have at the time of appointment or does

3-46     not maintain during service on the board the qualifications

3-47     required by Section 361.032 or 361.033(a);

3-48                 (2)  violates a prohibition established by Section

3-49     361.033(b), (c), or (d);

3-50                 (3)  cannot discharge the director's duties for a

3-51     substantial part of the term for which the director is appointed

3-52     because of illness or disability; or

3-53                 (4)  is absent from more than half of the regularly

3-54     scheduled board meetings that the director is eligible to attend

3-55     during a calendar year unless the absence is excused by majority

3-56     vote of the board.

3-57           (b)  The validity of an action of the board is not affected

3-58     by the fact that it is taken when a ground for removal of a

3-59     director exists.

3-60           (c)  If the administrative head of the authority has

3-61     knowledge that a potential ground for removal exists, that

3-62     individual shall notify the presiding officer of the board of the

3-63     ground.  The presiding officer shall then notify the commission

3-64     [governor] that a potential ground for removal exists.

3-65           SECTION 8.  Section 361.042, Transportation Code, is amended

3-66     to read as follows:

3-67           Sec. 361.042.  GENERAL POWERS AND DUTIES.  (a)  The board

3-68     [authority] shall:

3-69                 (1)  on its own initiative or at the request of the

 4-1     commission, consider, study, plan, and develop turnpike projects

 4-2     under this chapter;

 4-3                 (2)  adopt rules [bylaws] for the regulation of its

 4-4     affairs and the conduct of its business;

 4-5                 (3)  with the concurrence of the commission, employ an

 4-6     administrative head, who serves at the pleasure of the board and

 4-7     who must be compensated on a level not lower than the level on

 4-8     which a deputy executive director of the department is compensated;

 4-9     and

4-10                 (4)  undertake such other duties as are delegated to it

4-11     by the commission.

4-12           (b)  The authority may:

4-13                 (1) [(2)  adopt an official seal;]

4-14                 [(3)]  construct, maintain, repair, and operate

4-15     turnpike projects in this state;

4-16                 (2) [(4)]  acquire, hold, and dispose of property in

4-17     the exercise of its powers and the performance of its duties under

4-18     this chapter;

4-19                 (3)  with the approval of the governor and the

4-20     commission, [(5)] enter into contracts or operating agreements with

4-21     similar authorities or agencies of another state, including a state

4-22     of the United Mexican States;

4-23                 (4) [(6)]  enter into contracts or agreements necessary

4-24     or incidental to its duties and powers under this chapter;

4-25                 (5) [(7)]  employ consulting engineers, [attorneys,]

4-26     accountants, construction and financial experts, superintendents,

4-27     managers, and other employees and agents the authority considers

4-28     necessary and set their compensation;

4-29                 (6)  employ attorneys to advance or defend legal

4-30     actions pertaining to the division's activities, notwithstanding

4-31     any other law to the contrary, including Section 402.0212,

4-32     Government Code;

4-33                 (7) [(8)]  receive grants for the construction of a

4-34     turnpike project and receive contributions of money, property,

4-35     labor, or other things of value from any source to be used for the

4-36     purposes for which the grants or contributions are made;

4-37                 (8) [(9)]  adopt and enforce rules, if the commission

4-38     concurs, not inconsistent with this chapter for the use of any

4-39     turnpike project; and

4-40                 (9) [(10)]  do all things necessary or appropriate to

4-41     carry out the powers expressly granted by this chapter.

4-42           SECTION 9.  Section 361.055, Transportation Code, is amended

4-43     to read as follows:

4-44           Sec. 361.055.  SUCCESSOR AGENCY TO AUTHORITY.  The following

4-45     are considered successor agencies to the Texas Turnpike Authority

4-46     [authority] for purposes of Section 52-b, Article III, Texas

4-47     Constitution:

4-48                 (1)  a county, municipality, or local government

4-49     corporation that leases, buys, operates, or otherwise receives a

4-50     turnpike project under Subchapter H;

4-51                 (2)  a county with a population of more than 1.5

4-52     million that constructs a toll road, toll bridge, or turnpike

4-53     project;

4-54                 (3)  a local government corporation serving a county

4-55     with a population of more than 1.5 million that constructs a toll

4-56     road, toll bridge, or turnpike project; [and]

4-57                 (4)  an adjacent county in a joint turnpike authority

4-58     with a county with a population of more than 1.5 million that

4-59     constructs a toll road, toll bridge, or turnpike project;

4-60                 (5)  the department; and

4-61                 (6)  a public or private entity authorized to receive

4-62     funds from the department for the construction, maintenance, or

4-63     operation of toll projects.

4-64           SECTION 10.  Section 361.132, Transportation Code, is amended

4-65     to read as follows:

4-66           Sec. 361.132.  ACQUISITION OF PROPERTY.  (a)  The board

4-67     [authority] may acquire, in the name of the state, [authority]

4-68     public or private real property it determines necessary or

4-69     convenient for the construction, expansion, enlargement, extension,

 5-1     improvement, or operation of a turnpike project or for otherwise

 5-2     carrying out this chapter.

 5-3           (b)  The real property the authority may acquire under this

 5-4     subchapter includes:

 5-5                 (1)  public parks, playgrounds, or reservations;

 5-6                 (2)  parts of or rights in public parks, playgrounds,

 5-7     or reservations;

 5-8                 (3)  rights-of-way;

 5-9                 (4)  property rights, including:

5-10                       (A)  a right of ingress or egress; and

5-11                       (B)  a reservation right in real property that

5-12     restricts or prohibits for not more than seven years the:

5-13                             (i)  addition of a new improvement on the

5-14     real property;

5-15                             (ii)  addition to or modification of an

5-16     existing improvement on the real property; or

5-17                             (iii)  subdivision of the real property;

5-18                 (5)  franchises;

5-19                 (6)  easements; and

5-20                 (7)  other interests in real property.

5-21           (c)  The board [authority] may acquire the real property by

5-22     any method, including purchase and condemnation.  The board

5-23     [authority] may purchase public or private real property on the

5-24     terms and at the price the board [authority] and the owner consider

5-25     reasonable.

5-26           (d)  Property necessary or convenient for the construction or

5-27     operation of a turnpike project under Subsection (a) includes an

5-28     interest in real property, a property right, or materials that the

5-29     authority determines are necessary or convenient to:

5-30                 (1)  protect a turnpike project;

5-31                 (2)  drain a turnpike project;

5-32                 (3)  divert a stream, river, or other watercourse from

5-33     the right-of-way of a turnpike project;

5-34                 (4)  store materials or equipment used in the

5-35     construction or maintenance of a turnpike project;

5-36                 (5)  construct or operate a warehouse or other facility

5-37     used in connection with the construction, maintenance, or operation

5-38     of a turnpike project;

5-39                 (6)  lay out, construct, or maintain a roadside park;

5-40                 (7)  lay out, construct, or maintain a parking lot that

5-41     will contribute to the maximum use of a turnpike project with the

5-42     least possible congestion;

5-43                 (8)  mitigate an adverse environmental effect that

5-44     directly results from the construction or maintenance of a turnpike

5-45     project; or

5-46                 (9)  accomplish any other purpose related to the

5-47     location, construction, improvement, maintenance, beautification,

5-48     preservation, or operation of a turnpike project.

5-49           (e)  The authority shall comply with all relocation

5-50     assistance procedures applicable to the department in connection

5-51     with any displacement of owners or tenants as a consequence of the

5-52     authority's acquisition of real property under this chapter.

5-53           (f)  The authority may acquire timber, earth, stone, gravel,

5-54     or other materials as necessary to carry out a purpose under this

5-55     chapter.

5-56           SECTION 11.  Section 361.135, Transportation Code, is amended

5-57     to read as follows:

5-58           Sec. 361.135.  CONDEMNATION OF REAL PROPERTY.  (a)  The

5-59     board, with the concurrence of the commission, [authority] may

5-60     acquire public or private real property in the name of the state

5-61     [authority] by the exercise of the power of condemnation under the

5-62     laws applicable to the exercise of that power on property for

5-63     public use if:

5-64                 (1)  the authority and the owner cannot agree on a

5-65     reasonable price for the property; or

5-66                 (2)  the owner is legally incapacitated, absent,

5-67     unknown, or unable to convey title.

5-68           (b)  The board, with the concurrence of the commission, [To

5-69     the extent provided by Subsection (c), the authority] may condemn

 6-1     real property that the authority determines is:

 6-2                 (1)  necessary or appropriate to construct or to

 6-3     efficiently operate a turnpike project;

 6-4                 (2)  necessary to restore public or private property

 6-5     damaged or destroyed; [or]

 6-6                 (3)  necessary for access, approach, and interchange

 6-7     roads;

 6-8                 (4)  necessary for supplemental facilities of the

 6-9     authority; or

6-10                 (5)  necessary otherwise to carry out this chapter.

6-11           (c)  [The authority may condemn real property necessary for

6-12     access, approach, and interchange roads but may not condemn

6-13     property:]

6-14                 [(1)  that is unnecessary for road and right-of-way

6-15     purposes; or]

6-16                 [(2)  that is for a supplemental facility for another

6-17     purpose.]

6-18           [(d)  The authority may construct a supplemental facility

6-19     only on real property the authority purchases.]

6-20           [(e)]  The court having jurisdiction of a condemnation

6-21     proceeding may:

6-22                 (1)  make orders as are just to the authority and the

6-23     owners of the real property; and

6-24                 (2)  require an undertaking or other security to secure

6-25     the owners against any loss or damage by reason of the board's

6-26     [authority's] failure to accept and pay for the real property.

6-27           (d) [(f)]  An undertaking or security under Subsection (c)(2)

6-28     [(e)(2)] or an act or obligation of the authority or the board does

6-29     not impose any liability on the state, [or] the authority, or the

6-30     board except liability that may be paid from the money authorized

6-31     by this chapter.

6-32           SECTION 12.  Section 361.136, Transportation Code, is amended

6-33     to read as follows:

6-34           Sec. 361.136.  SEVERANCE OF REAL PROPERTY.  (a)  If a

6-35     turnpike project severs an owner's real property, the authority

6-36     shall pay:

6-37                 (1)  the value of the property acquired; and

6-38                 (2)  the damages to the remainder of the owner's

6-39     property caused by the severance, including damages caused by the

6-40     inaccessibility of one tract from the other.

6-41           (b)  [The authority shall provide and maintain without charge

6-42     a passageway over or under the turnpike project for the owner of

6-43     the severed real property and the owner's employees and

6-44     representatives.  The authority is not required to furnish a

6-45     passageway if the owner waives the requirement or the original

6-46     tract involved is less than 80 acres.]

6-47           [(c)]  The authority may negotiate for and purchase the

6-48     severed real property or either part of the severed real property

6-49     if the authority and the owner agree on terms for the purchase.

6-50     [The authority shall sell and dispose of severed real property

6-51     within two years after the date of acquisition.]

6-52           SECTION 13.  Subchapter D, Chapter 361, Transportation Code,

6-53     is amended by adding Section 361.142 to read as follows:

6-54           Sec. 361.142.  COVENANTS, CONDITIONS, RESTRICTIONS, OR

6-55     LIMITATIONS.  Covenants, conditions, restrictions, or limitations

6-56     affecting property acquired in any manner by the authority are not

6-57     binding against the authority and do not impair the authority's

6-58     ability to use the property for a purpose authorized by this

6-59     chapter.  The beneficiaries of the covenants, conditions,

6-60     restrictions, or limitations are not entitled to enjoin the

6-61     authority from using the property for a purpose authorized under

6-62     this chapter, but this section does not affect the right of a

6-63     person to seek damages to the person's property under Section 17,

6-64     Article I, Texas Constitution.

6-65           SECTION 14.  Section 361.180, Transportation Code, is amended

6-66     to read as follows:

6-67           Sec. 361.180.  TOLLS ON CONVERTED HIGHWAYS [PROHIBITION ON

6-68     TOLLS ON EXISTING FREE HIGHWAYS].  If converted to a toll facility

6-69     under Section 222.102 or 362.0041, the commission [The authority]

 7-1     may impose a toll for transit over an existing free public highway

 7-2     [only if such highway is transferred to the authority by the

 7-3     commission under Section 362.0041].

 7-4           SECTION 15.  Subsection (b), Section 361.184, Transportation

 7-5     Code, is amended to read as follows:

 7-6           (b)  The board [authority] may transfer, or direct the

 7-7     authority to transfer, into the project revolving fund money from

 7-8     any permissible source, including:

 7-9                 (1)  money from a surplus fund established for a

7-10     turnpike project if the remainder of the surplus fund is not less

7-11     than any minimum amount required by the trust agreement to be

7-12     retained for that project;

7-13                 (2)  money received under Subchapter I or from a

7-14     transfer of a turnpike project under Subchapter H;

7-15                 (3)  advances from the state highway fund [department

7-16     authorized under Section 52-b, Article III, Texas Constitution];

7-17     and

7-18                 (4)  contributions or assistance from the United

7-19     States, another state, a political subdivision of this state, the

7-20     United Mexican States, or a political subdivision of the United

7-21     Mexican States.

7-22           SECTION 16.  Section 361.189, Transportation Code, is amended

7-23     to read as follows:

7-24           Sec. 361.189.  USE OF SURPLUS REVENUE.  [(a)]  The commission

7-25     [board] by resolution may authorize the use of surplus revenue of a

7-26     turnpike project to pay the costs of another turnpike project,

7-27     other than a project financed under Subchapter I, or a toll-free

7-28     project.  The commission [board] may in the resolution prescribe

7-29     terms for the use of the revenue, including the pledge of the

7-30     revenue, but may not take an action under this section that[:]

7-31                 [(1)  violates Subsection (b); or]

7-32                 [(2)]  violates, impairs, or is inconsistent with a

7-33     bond resolution, trust agreement, or indenture governing the use of

7-34     the surplus revenue.

7-35           [(b)  Except as provided by Subsection (c), the surplus

7-36     revenue of a turnpike project that was under construction or

7-37     operated by the authority on January 1, 1993, may be used only for:]

7-38                 [(1)  the costs associated with the construction,

7-39     expansion, or maintenance of the project producing the revenue; and]

7-40                 [(2)  transfers to the Texas Turnpike Authority

7-41     feasibility study fund.]

7-42           [(c)  The board may use revenue from a turnpike project

7-43     described by Subsection (b) for a purpose authorized by this

7-44     chapter other than a purpose described by that subsection if:]

7-45                 [(1)  the authority obtains the permission of the

7-46     commissioners court of each county in which the project is located;

7-47     or]

7-48                 [(2)  an agreement between the authority and a county

7-49     or local government corporation created by the county for the

7-50     lease, sale, or other conveyance of the project permits the revenue

7-51     to be used for another purpose.]

7-52           SECTION 17.  Section 361.232, Transportation Code, is amended

7-53     by adding Subsection (e) to read as follows:

7-54           (e)  This section does not apply to the conversion of any

7-55     highway that is a part of the state highway system to a turnpike

7-56     project.

7-57           SECTION 18.  Section 361.237, Transportation Code, is amended

7-58     to read as follows:

7-59           Sec. 361.237.  OPERATION OF TURNPIKE PROJECT.  A turnpike

7-60     project is a public road subject to all laws applicable to the

7-61     regulation and control of traffic [(a)  The authority shall police

7-62     and operate a turnpike project through a force of police,

7-63     toll-takers, and other employees of the authority.]

7-64           [(b)  The authority may arrange with the Department of Public

7-65     Safety for the services of officers of that agency].

7-66           SECTION 19.  Section 361.238, Transportation Code, is amended

7-67     to read as follows:

7-68           Sec. 361.238.  PAYMENT OF BOND INDEBTEDNESS; CESSATION OR

7-69     CONTINUATION OF TOLLS[; TRANSFER OF PROJECT TO COMMISSION].

 8-1     (a)  Except as provided by Subsection (b), a [A] turnpike project

 8-2     [that is in good condition and repair to the satisfaction of the

 8-3     commission] becomes a toll-free [part of the state] highway

 8-4     [system] when:

 8-5                 (1)  the bonds issued under this chapter for the

 8-6     project and the interest on the bonds are paid; or

 8-7                 (2)  firm banking and financial arrangements have been

 8-8     made for the discharge and final payment or redemption of the bonds

 8-9     in accordance with Section 7A, Chapter 503, Acts of the 54th

8-10     Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes) [a

8-11     sufficient amount to pay the bonds and the interest on the bonds to

8-12     maturity or to redeem the bonds has been set aside in trust for the

8-13     benefit of the bondholders].

8-14           (b)  If the conditions of Subsections (a)(1) and (2) are met,

8-15     the commission may continue to charge a toll sufficient to pay the

8-16     costs of maintaining the facility.  [The authority shall continue

8-17     to operate as a toll facility a turnpike project that the

8-18     commission determines is not in a state of repair so as to justify

8-19     its acceptance as part of the state highway system.  The authority

8-20     shall continue the tolls then in effect or revise the tolls to

8-21     provide money sufficient to assure payment of the expenses of

8-22     maintenance and operation and the making of repairs and

8-23     replacements as necessary to meet the minimum requirements of the

8-24     commission within the shortest practicable time.]

8-25           [(c)  The commission shall maintain a turnpike project it

8-26     accepts free of tolls.  The authority shall deliver to the

8-27     commission at the time of acceptance any money remaining to the

8-28     credit of the project after retirement of the bonds issued for the

8-29     project.  The commission shall deposit the money in a fund to be

8-30     used to maintain the project facilities.  The commission shall

8-31     administer the fund in accordance with commission rules.]

8-32           [(d)  Not later than the first anniversary of the date the

8-33     commission accepts a turnpike project, the department shall

8-34     advertise for public sale each installation on the project other

8-35     than the road bed and highway sections and shall solicit sealed

8-36     bids for those installations.  The department may reject any or all

8-37     bids but shall dispose of the properties not later than the second

8-38     anniversary of the date the commission accepts title to the

8-39     project.]

8-40           SECTION 20.  The heading of Subchapter H, Chapter 361,

8-41     Transportation Code, is amended to read as follows:

8-42               SUBCHAPTER H.  TRANSFER OF TURNPIKE PROJECT TO

8-43            COUNTY, MUNICIPALITY, REGIONAL TOLLWAY AUTHORITY, OR

8-44                        LOCAL GOVERNMENT CORPORATION

8-45           SECTION 21.  Sections 361.281, 361.282, and 361.285,

8-46     Transportation Code, are amended to read as follows:

8-47           Sec. 361.281.  APPLICABILITY OF SUBCHAPTER.  This subchapter

8-48     applies only to:

8-49                 (1)  a county with a population of more than 1.5

8-50     million;

8-51                 (2)  a local government corporation serving a county

8-52     with a population of more than 1.5 million; [or]

8-53                 (3)  an adjacent county in a joint turnpike authority

8-54     with a county with a population of more than 1.5 million;

8-55                 (4)  a municipality with a population of more than

8-56     120,000 that is adjacent to the United Mexican States; or

8-57                 (5)  a regional tollway authority created under Chapter

8-58     366.

8-59           Sec. 361.282.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

8-60     PROJECT.  (a)  The authority may lease, sell, or convey in another

8-61     manner a turnpike project to a county, municipality, regional

8-62     tollway authority, or a local government corporation created under

8-63     Chapter 431.

8-64           (b)  The authority, the commission, and the governor must

8-65     approve the transfer of the turnpike project as being in the best

8-66     interests of the state and the entity receiving the turnpike

8-67     project [county].

8-68           Sec. 361.285.  APPROVAL OF AGREEMENT BY ATTORNEY GENERAL.

8-69     (a)  An agreement for the lease, sale, or conveyance of a turnpike

 9-1     project under this subchapter shall be submitted to the attorney

 9-2     general for approval as part of the records of proceedings relating

 9-3     to the issuance of bonds of the county, municipality, regional

 9-4     tollway authority, or local government corporation.

 9-5           (b)  If the attorney general determines that the agreement is

 9-6     in accordance with law, the attorney general shall approve the

 9-7     agreement and deliver to the commission a copy of the legal opinion

 9-8     of the attorney general stating that approval.

 9-9           SECTION 22.  Subsection (a), Section 361.331, Transportation

9-10     Code, is amended to read as follows:

9-11           (a)  The authority may designate two or more turnpike

9-12     projects that are wholly or partly located in a metropolitan

9-13     planning organization [region of a council of governments] as a

9-14     pooled turnpike project after:

9-15                 (1)  conducting a public hearing; and

9-16                 (2)  obtaining the approval of the commission[; and]

9-17                 [(3)  obtaining a resolution adopted by the

9-18     commissioners court of the county that:]

9-19                       [(A)  approves the action; and]

9-20                       [(B)  specifies the date the pooled project

9-21     becomes toll free].

9-22           SECTION 23.  Section 362.0041, Transportation Code, is

9-23     amended to read as follows:

9-24           Sec. 362.0041.  CONVERSION [ACQUISITION] OF PROJECTS.

9-25     (a)  If the commission finds that the conversion of a segment of

9-26     the free state highway system to a toll facility is the most

9-27     feasible and economic means to accomplish necessary expansion

9-28     improvements, or extensions to the state highway system, that

9-29     segment may[, on approval of the governor,] be converted

9-30     [transferred] by order of the commission to [the authority.  The

9-31     authority may receive such segment of highway, thereafter to be

9-32     owned, operated, and maintained as] a turnpike project under

9-33     Chapter 361.

9-34           (b)  [The authority shall reimburse the commission for the

9-35     cost of the transferred highway, unless the commission finds that

9-36     the transfer will result in substantial net benefits to the state,

9-37     the department, and the traveling public that exceed that cost.

9-38     The cost shall include the total dollar amount expended by the

9-39     department for the original construction of the highway, including

9-40     all costs associated with the preliminary engineering and design

9-41     engineering for plans, specifications, and estimates, the

9-42     acquisition of necessary right-of-way, and actual construction of

9-43     the highway and all necessary appurtenant facilities.]

9-44           [(c)  The commission shall, coincident with the transfer,

9-45     remove the segment of highway from the designated state highway

9-46     system and shall subsequently have no liability, responsibility, or

9-47     duty for the maintenance or operation of the highway.]

9-48           [(d)]  Prior to converting [transferring] a segment of the

9-49     state highway system under this section, the commission shall

9-50     conduct a public hearing for the purpose of receiving comments from

9-51     interested persons concerning the proposed transfer.  Notice of the

9-52     hearing shall be published in the Texas Register, one or more

9-53     newspapers of general circulation, and a newspaper, if any,

9-54     published in the county or counties in which the involved highway

9-55     is located.

9-56           (c) [(e)]  The commission shall adopt rules implementing this

9-57     section, such rules to include criteria and guidelines for the

9-58     approval of a conversion [transfer] of a highway.

9-59           SECTION 24.  Subtitle G, Title 6, Transportation Code, is

9-60     amended by adding Chapter 366 to read as follows:

9-61                 CHAPTER 366.  REGIONAL TOLLWAY AUTHORITIES

9-62                      SUBCHAPTER A.  GENERAL PROVISIONS

9-63           Sec. 366.001.  SHORT TITLE.  This chapter may be cited as the

9-64     Regional Tollway Authority Act.

9-65           Sec. 366.002.  PURPOSES; LIBERAL CONSTRUCTION.  (a)  The

9-66     purposes of this chapter are:

9-67                 (1)  the expansion and improvement of transportation

9-68     facilities and systems in this state;

9-69                 (2)  the creation of regional tollway authorities to

 10-1    secure and acquire rights-of-way for urgently needed transportation

 10-2    systems and to plan, design, construct, operate, expand, extend,

 10-3    and modify those systems; and

 10-4                (3)  the reduction of burdens and demands on the

 10-5    limited money available to the commission and an increase in the

 10-6    effectiveness and efficiency of the commission.

 10-7          (b)  This chapter shall be liberally construed to effect its

 10-8    purposes.

 10-9          Sec. 366.003.  DEFINITIONS.  In this chapter:

10-10                (1)  "Authority" means a regional tollway authority

10-11    organized under this chapter.

10-12                (2)  "Board" means the board of directors of an

10-13    authority organized under this chapter.

10-14                (3)  "Bond" means all bonds, certificates, notes, and

10-15    other obligations of an authority authorized by this chapter, any

10-16    other statute, or the Texas Constitution.

10-17                (4)  "Bond proceedings" means a bond resolution and any

10-18    bond indenture authorized by the bond resolution, any credit

10-19    agreement entered into in connection with the bonds or the payments

10-20    to be made under the agreement, and any other agreement between an

10-21    authority and another person providing security for the payment of

10-22    bonds.

10-23                (5)  "Bond resolution" means an order or resolution of

10-24    an authority's board authorizing the issuance of bonds.

10-25                (6)  "Bondholder" means the owner of bonds and includes

10-26    a trustee acting on behalf of an owner of bonds under the terms of

10-27    a bond indenture.

10-28                (7)  "Highway" means a road, highway, farm-to-market

10-29    road, or street under the supervision of the state or a political

10-30    subdivision of the state.

10-31                (8)  "Local governmental entity" means a political

10-32    subdivision of the state, including a municipality or a county, a

10-33    political subdivision of a county, a group of adjoining counties, a

10-34    district organized or operating under Section 52, Article III, or

10-35    Section 59, Article XVI, Texas Constitution, or a nonprofit

10-36    corporation, including a transportation corporation created under

10-37    Chapter 431.

10-38                (9)  "Revenue" means the tolls, rents, and other money

10-39    received by an authority from the ownership or operation of a

10-40    turnpike project.

10-41                (10)  "System" means a turnpike project or any

10-42    combination of turnpike projects designated as a system by the

10-43    board under Section 366.034.

10-44                (11)  "Turnpike project" means a highway of any number

10-45    of lanes, with or without grade separations, owned or operated by

10-46    an authority under this chapter and any improvement, extension, or

10-47    expansion to that highway, including:

10-48                      (A)  an improvement to relieve traffic congestion

10-49    and promote safety;

10-50                      (B)  a bridge, tunnel, overpass, underpass,

10-51    interchange, service road, ramp, entrance plaza, approach, or

10-52    tollhouse;

10-53                      (C)  an administration, storage, or other

10-54    building the authority considers necessary to operate the turnpike

10-55    project;

10-56                      (D)  a service station, hotel, motel, restaurant,

10-57    parking area or structure, rest stop, park, and other improvement

10-58    or amenity the authority considers necessary, useful, or beneficial

10-59    for the operation of a turnpike project; and

10-60                      (E)  property rights, easements, and interests

10-61    the authority acquires to construct or operate the turnpike

10-62    project.

10-63          Sec. 366.004.  CONSTRUCTION COSTS DEFINED.  (a)  The cost of

10-64    acquisition, construction, improvement, extension, or expansion of

10-65    a turnpike project or system under this chapter includes the cost

10-66    of:

10-67                (1)  the actual acquisition, construction, improvement,

10-68    extension, or expansion of the turnpike project or system;

10-69                (2)  the acquisition of real property, rights-of-way,

 11-1    property rights, easements, and other interests in real property;

 11-2                (3)  machinery and equipment;

 11-3                (4)  interest payable before, during, and after

 11-4    acquisition, construction, improvement, extension, or expansion as

 11-5    provided in the bond proceedings;

 11-6                (5)  traffic estimates, revenue estimates, engineering

 11-7    and legal services, plans, specifications, surveys, appraisals,

 11-8    construction cost estimates, and other expenses necessary or

 11-9    incidental to determining the feasibility of the construction,

11-10    improvement, extension, or expansion;

11-11                (6)  necessary or incidental administrative, legal, and

11-12    other expenses;

11-13                (7)  compliance with laws, regulations, and

11-14    administrative rulings;

11-15                (8)  financing; and

11-16                (9)  expenses related to the initial operation of the

11-17    turnpike project or system.

11-18          (b)  Costs attributable to a turnpike project or system and

11-19    incurred before the issuance of bonds to finance the turnpike

11-20    project or system may be reimbursed from the proceeds of sale of

11-21    the bonds.

11-22             (Sections 366.005-366.030 reserved for expansion

11-23              SUBCHAPTER B.  CREATION AND POWERS OF REGIONAL

11-24                            TOLLWAY AUTHORITIES

11-25          Sec. 366.031.  CREATION AND EXPANSION OF A REGIONAL TOLLWAY

11-26    AUTHORITY.  (a)  Two or more counties, acting through their

11-27    respective commissioners courts, may by order passed by each

11-28    commissioners court create a regional tollway authority under this

11-29    chapter if:

11-30                (1)  one of the counties has a population of not less

11-31    than 500,000;

11-32                (2)  the counties form a contiguous territory; and

11-33                (3)  the commission approves the creation.

11-34          (b)  For an authority created under Subsection (a), the

11-35    authority is automatically approved 180 days after it is created by

11-36    order of the respective commissioners courts, unless the commission

11-37    disapproves prior to the 180th day.

11-38          (c)  A commissioners court may by resolution petition an

11-39    established authority for inclusion in the authority if the county

11-40    is contiguous to a county that initially created the authority.

11-41          (d)  On approval of the board of an authority receiving a

11-42    petition under Subsection (c), the county becomes part of the

11-43    authority.

11-44          Sec. 366.032.  NATURE OF REGIONAL TOLLWAY AUTHORITY.  (a)  An

11-45    authority created under this chapter is a body politic and

11-46    corporate and a political subdivision of this state.

11-47          (b)  An authority is a governmental unit as that term is

11-48    defined in Chapter 101, Civil Practice and Remedies Code.

11-49          (c)  The exercise by an authority of the powers conferred by

11-50    this chapter in the acquisition, design, financing, construction,

11-51    operation, and maintenance of a turnpike project or system is:

11-52                (1)  in all respects for the benefit of the people of

11-53    the counties in which an authority operates and of the people of

11-54    this state, for the increase of their commerce and prosperity, and

11-55    for the improvement of their health, living conditions, and public

11-56    safety; and

11-57                (2)  an essential governmental function of the state.

11-58          (d)  The operations of an authority are governmental, not

11-59    proprietary, functions.

11-60          Sec. 366.033.  GENERAL POWERS.  (a)  An authority, acting

11-61    through its board, without state approval, supervision, or

11-62    regulation, may:

11-63                (1)  adopt rules for the regulation of its affairs and

11-64    the conduct of its business;

11-65                (2)  adopt an official seal;

11-66                (3)  study, evaluate, design, acquire, construct,

11-67    maintain, repair, and operate turnpike projects, individually or as

11-68    one or more systems;

11-69                (4)  acquire, hold, and dispose of property in the

 12-1    exercise of its powers and the performance of its duties under this

 12-2    chapter;

 12-3                (5)  enter into contracts or operating agreements with

 12-4    similar authorities or agencies of the United States, a state of

 12-5    the United States, the United Mexican States, or a state of the

 12-6    United Mexican States;

 12-7                (6)  enter into contracts or agreements necessary or

 12-8    incidental to its duties and powers under this chapter;

 12-9                (7)  cooperate and work directly with property owners

12-10    and governmental agencies and officials to support an activity

12-11    required to promote or develop a turnpike project or system;

12-12                (8)  employ and set the compensation of administrators,

12-13    consulting engineers, attorneys, accountants, construction and

12-14    financial experts, superintendents, managers, full-time and

12-15    part-time employees, agents, consultants, and such other persons as

12-16    the authority considers necessary or useful;

12-17                (9)  receive loans, gifts, grants, and other

12-18    contributions for the construction of a turnpike project or system

12-19    and receive contributions of money, property, labor, or other

12-20    things of value from any source, including the United States, a

12-21    state of the United States, the United Mexican States, a state of

12-22    the United Mexican States, the commission, the department, any

12-23    subdivision of the state, or any other local governmental or

12-24    private entity, to be used for the purposes for which the grants or

12-25    contributions are made, and enter into any agreement necessary for

12-26    the grants or contributions;

12-27                (10)  install, construct, maintain, repair, renew,

12-28    relocate, and remove public utility facilities in, on, along, over,

12-29    or under a turnpike project;

12-30                (11)  organize a corporation under Chapter 431 for the

12-31    promotion and development of turnpike projects and systems;

12-32                (12)  adopt and enforce rules not inconsistent with

12-33    this chapter for the use of any turnpike project or system,

12-34    including traffic and other public safety rules;

12-35                (13)  enter into leases, operating agreements, service

12-36    agreements, licenses, franchises, and similar agreements with

12-37    public or private parties governing the parties' use of all or any

12-38    portion of a turnpike project and the rights and obligations of the

12-39    authority with respect to a turnpike project; and

12-40                (14)  do all things necessary or appropriate to carry

12-41    out the powers expressly granted by this chapter.

12-42          (b)  Property comprising a part of a turnpike project or a

12-43    system is not subject to condemnation or the power of eminent

12-44    domain by any person, including a governmental entity.

12-45          (c)  An authority may, if requested by the commission,

12-46    perform any function not specified by this chapter to promote or

12-47    develop turnpike projects and systems in this state.

12-48          (d)  An authority may sue and be sued and plead and be

12-49    impleaded in its own name.

12-50          (e)  An authority may rent, lease, franchise, license, or

12-51    otherwise make portions of its properties available for use by

12-52    others in furtherance of its powers under this chapter by

12-53    increasing the feasibility or the revenue of a turnpike project or

12-54    system.

12-55          (f)  An authority and any local governmental entity may enter

12-56    into a contract under which the authority will operate a turnpike

12-57    project or system on behalf of the local governmental entity.  The

12-58    payments to be made to an authority under the contract shall

12-59    constitute operating expenses of the facility or system that is to

12-60    be operated under the contract, and the contract may extend for a

12-61    number of years as the parties agree.

12-62          (g)  An authority shall adopt a written drug and alcohol

12-63    policy restricting the use of controlled substances by employees of

12-64    the authority, prohibiting the consumption of alcoholic beverages

12-65    by employees while on duty, and prohibiting employees from working

12-66    for the authority while under the influence of controlled

12-67    substances or alcohol.  An authority may adopt policies regarding

12-68    the testing of employees suspected of being in violation of the

12-69    authority's drug and alcohol policy.  The policy shall provide

 13-1    that, unless required by court order or permitted by the person who

 13-2    is the subject of the testing, the authority shall keep the results

 13-3    of the test confidential.

 13-4          Sec. 366.034.  ESTABLISHMENT OF TURNPIKE SYSTEMS.  (a)  If an

 13-5    authority determines that the traffic needs of the counties in

 13-6    which it operates and the traffic needs of the surrounding region

 13-7    could be most efficiently and economically met by jointly operating

 13-8    two or more turnpike projects as one operational and financial

 13-9    enterprise, it may create a system comprised of those turnpike

13-10    projects.  An authority may create more than one system and may

13-11    combine two or more systems into one system.  An authority may

13-12    finance, acquire, construct, and operate additional turnpike

13-13    projects as additions to and expansions of a system if the

13-14    authority determines that the turnpike project could most

13-15    efficiently and economically be acquired and constructed if it were

13-16    a part of the system and that the addition will benefit the system.

13-17          (b)  The revenue of a system shall be accounted for

13-18    separately and may not be commingled with the revenue of a turnpike

13-19    project that is not a part of the system or with the revenue of

13-20    another system.

13-21          Sec. 366.035.  CONVERSION OF STATE HIGHWAY SYSTEM PROJECTS.

13-22    (a)  If the commission determines that the most feasible and

13-23    economic means to accomplish necessary expansion, improvements, or

13-24    extensions to the state highway system is the conversion to a

13-25    turnpike project of a segment of the free state highway system, any

13-26    segment located in a county of an authority or a county in which an

13-27    authority operates a turnpike project or in any county adjacent to

13-28    those counties may, on approval of the governor and the affected

13-29    authority, be transferred by order of the commission to that

13-30    authority.  An authority that receives the segment of highway may

13-31    own, operate, and maintain the segment as a turnpike project or

13-32    system or a part of a turnpike project or system under this

13-33    chapter.

13-34          (b)  An authority shall reimburse the commission for the cost

13-35    of a transferred highway, unless the commission determines that the

13-36    transfer will result in substantial net benefits to the state, the

13-37    department, and the traveling public that exceed that cost.  The

13-38    cost includes the total amount expended by the department for the

13-39    original construction of the highway, including all costs

13-40    associated with the preliminary engineering and design engineering

13-41    for plans, specifications, and estimates, the acquisition of

13-42    necessary rights-of-way, and actual construction of the highway and

13-43    all necessary appurtenant facilities.  Costs anticipated to be

13-44    expended to expand, improve, or extend the highway shall be

13-45    deducted from the costs to be reimbursed to the commission.

13-46          (c)  The commission shall, at the time of a transfer, remove

13-47    the segment of highway from the state highway system.  After a

13-48    transfer the commission has no liability, responsibility, or duty

13-49    for the maintenance or operation of the highway.

13-50          (d)  Before transferring a segment of the state highway

13-51    system under this section, the commission shall conduct a public

13-52    hearing to receive comments from interested persons concerning the

13-53    proposed transfer.  Notice of the hearing must be published in the

13-54    Texas Register, one or more newspapers of general circulation in

13-55    the counties in which the segment is located, and a newspaper, if

13-56    any, published in the counties of the applicable authority.

13-57          (e)  The commission shall adopt rules implementing this

13-58    section.  The rules shall include criteria and guidelines for the

13-59    approval of a transfer of a highway.

13-60          (f)  An authority shall adopt rules providing criteria and

13-61    guidelines for approving the acceptance of a highway under this

13-62    section.

13-63             (Sections 366.036-366.070 reserved for expansion

13-64         SUBCHAPTER C.  FEASIBILITY OF REGIONAL TURNPIKE PROJECTS

13-65          Sec. 366.071.  EXPENDITURES FOR FEASIBILITY STUDIES.  (a)  An

13-66    authority may pay the expenses of studying the cost and feasibility

13-67    and any other expenses relating to the preparation and issuance of

13-68    bonds for a proposed turnpike project or system by:

13-69                (1)  using legally available revenue derived from an

 14-1    existing turnpike project or system;

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

 14-3    a loan agreement payable out of legally available revenue

 14-4    anticipated to be derived from the operation of an existing

 14-5    turnpike project or system; or

 14-6                (3)  pledging to the payment of the bonds or loan

 14-7    agreements legally available revenue anticipated to be derived from

 14-8    the operation of an existing turnpike project or system or revenue

 14-9    legally available to the authority from another source.

14-10          (b)  Money spent under this section for a proposed turnpike

14-11    project or system must be reimbursed to the turnpike project or

14-12    system from which the money was spent from the proceeds of bonds

14-13    issued for the acquisition and construction of the proposed

14-14    turnpike project or system.

14-15          (c)  The use of any money of a turnpike project or system to

14-16    study the feasibility of another turnpike project or system or used

14-17    to repay any money used for that purpose does not constitute an

14-18    operating expense of the turnpike project or system producing the

14-19    revenue and may only be paid from the surplus money of the turnpike

14-20    project or system.

14-21          Sec. 366.072.  FEASIBILITY STUDY FUND.  (a)  An authority may

14-22    maintain a feasibility study fund.  The fund is a revolving fund

14-23    held in trust by a banking institution chosen by the authority and

14-24    shall be kept separate from the money for any turnpike project or

14-25    system.

14-26          (b)  An authority may transfer an amount from a surplus fund

14-27    established for a turnpike project or system to the authority's

14-28    feasibility study fund if the remainder of the surplus fund is not

14-29    less than any minimum amount required by the bond proceedings to be

14-30    retained for that turnpike project or system.

14-31          (c)  Money in the feasibility study fund may be used only to

14-32    pay the expenses of studying the cost and feasibility and any other

14-33    expenses relating to:

14-34                (1)  the preparation and issuance of bonds for the

14-35    acquisition and construction of a proposed turnpike project or

14-36    system;

14-37                (2)  the financing of the improvement, extension, or

14-38    expansion of an existing turnpike project or system; and

14-39                (3)  private participation, as authorized by law, in

14-40    the financing of a proposed turnpike project or system, the

14-41    refinancing of an existing turnpike project or system, or the

14-42    improvement, extension, or expansion of a turnpike project or

14-43    system.

14-44          (d)  Money spent under Subsection (c) for a proposed turnpike

14-45    project or system must be reimbursed from the proceeds of turnpike

14-46    revenue bonds issued for, or other proceeds that may be used for,

14-47    the acquisition, construction, improvement, extension, expansion,

14-48    or operation of the turnpike project or system.

14-49          (e)  For a purpose described by Subsection (c), an authority

14-50    may borrow money and issue promissory notes or other

14-51    interest-bearing evidences of indebtedness payable out of its

14-52    feasibility study fund, pledging money in the fund or to be placed

14-53    in the fund.

14-54          Sec. 366.073.  FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,

14-55    OTHER LOCAL GOVERNMENTAL ENTITY, OR PRIVATE GROUP.  (a)  One or

14-56    more municipalities, counties, or local governmental entities, a

14-57    combination of municipalities, counties, and local governmental

14-58    entities, or a private group or combination of individuals in this

14-59    state may pay all or part of the expenses of studying the cost and

14-60    feasibility and any other expenses relating to:

14-61                (1)  the preparation and issuance of bonds for the

14-62    acquisition and construction of a proposed turnpike project or

14-63    system by an authority;

14-64                (2)  the improvement, extension, or expansion of an

14-65    authority's existing turnpike project or system; or

14-66                (3)  the use of private participation under applicable

14-67    law in connection with the acquisition, construction, improvement,

14-68    expansion, extension, maintenance, repair, or operation of a

14-69    turnpike project or system by an authority.

 15-1          (b)  Money spent under Subsection (a) for an authority's

 15-2    proposed turnpike project or system is reimbursable without

 15-3    interest and with the consent of the authority to the person paying

 15-4    the expenses described in Subsection (a) out of the proceeds from

 15-5    turnpike revenue bonds issued for or other proceeds that may be

 15-6    used for the acquisition, construction, improvement, extension,

 15-7    expansion, or operation of the turnpike project or system.

 15-8             (Sections 366.074-366.110 reserved for expansion

 15-9                     SUBCHAPTER D.  TURNPIKE FINANCING

15-10          Sec. 366.111.  TURNPIKE REVENUE BONDS.  (a)  An authority, by

15-11    adoption of a bond resolution, may authorize the issuance of bonds

15-12    to pay all or part of the cost of a turnpike project or system, to

15-13    refund any bonds previously issued for the turnpike project or

15-14    system, or to pay for all or part of the cost of a turnpike project

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

15-16          (b)  As determined in the bond resolution, the bonds of each

15-17    issue shall:

15-18                (1)  be dated;

15-19                (2)  bear interest at the rate or rates and beginning

15-20    on the dates, as authorized by law, or bear no interest;

15-21                (3)  mature at the time or times, not exceeding 40

15-22    years from their date or dates; and

15-23                (4)  be made redeemable before maturity at the price or

15-24    prices and under the terms provided by the bond resolution.

15-25          (c)  An authority may sell the bonds at public or private

15-26    sale in the manner and for the price it determines to be in the

15-27    best interest of the authority.

15-28          (d)  The proceeds of each bond issue shall be disbursed in

15-29    the manner and under the restrictions, if any, the authority

15-30    provides in the bond resolution.

15-31          (e)  Additional bonds may be issued in the same manner to pay

15-32    the costs of a turnpike project or system.  Unless otherwise

15-33    provided in the bond resolution, the additional bonds shall be on a

15-34    parity, without preference or priority, with bonds previously

15-35    issued and payable from the revenue of the turnpike project or

15-36    system.  In addition, an authority may issue bonds for a turnpike

15-37    project or system secured by a lien on the revenue of the turnpike

15-38    project or system subordinate to the lien on the revenue securing

15-39    other bonds issued for the turnpike project or system.

15-40          (f)  If the proceeds of a bond issue exceed the cost of the

15-41    turnpike project or system for which the bonds were issued, the

15-42    surplus shall be segregated from the other money of the authority

15-43    and used only for the purposes specified in the bond resolution.

15-44          (g)  Bonds issued and delivered under this chapter and

15-45    interest coupons on the bonds are a security under Chapter 8,

15-46    Business & Commerce Code.

15-47          (h)  Bonds issued under this chapter and income from the

15-48    bonds, including any profit made on the sale or transfer of the

15-49    bonds, are exempt from taxation in this state.

15-50          Sec. 366.112.  INTERIM BONDS.  (a)  An authority may, before

15-51    issuing definitive bonds, issue interim bonds, with or without

15-52    coupons, exchangeable for definitive bonds.

15-53          (b)  The interim bonds may be authorized and issued in

15-54    accordance with this chapter, without regard to the requirements,

15-55    restrictions, or procedural provisions contained in any other law.

15-56          (c)  A bond resolution authorizing interim bonds may provide

15-57    that the interim bonds recite that the bonds are issued under this

15-58    chapter.  The recital is conclusive evidence of the validity and

15-59    the regularity of the bonds' issuance.

15-60          Sec. 366.113.  PAYMENT OF BONDS; STATE AND COUNTY CREDIT NOT

15-61    PLEDGED.  (a)  The principal of, interest on, and any redemption

15-62    premium on bonds issued by an authority are payable solely from:

15-63                (1)  the revenue of the turnpike project or system for

15-64    which the bonds are issued, including tolls pledged to pay the

15-65    bonds;

15-66                (2)  payments made under an agreement with the

15-67    commission or a local governmental entity as provided by Subchapter

15-68    G;

15-69                (3)  money derived from any other source available to

 16-1    the authority, other than money derived from a turnpike project

 16-2    that is not part of the same system or money derived from a

 16-3    different system, except to the extent that the surplus revenue of

 16-4    a turnpike project or system has been pledged for that purpose; and

 16-5                (4)  amounts received under a credit agreement relating

 16-6    to the turnpike project or system for which the bonds are issued.

 16-7          (b)  Bonds issued under this chapter do not constitute a debt

 16-8    of the state or any of the counties of an authority or a pledge of

 16-9    the faith and credit of the state or any of the counties.  Each

16-10    bond must contain on its face a statement to the effect that the

16-11    state, the authority, and the counties of the authority are not

16-12    obligated to pay the bond or the interest on the bond from a source

16-13    other than the amount pledged to pay the bond and the interest on

16-14    the bond, and neither the faith and credit and taxing power of the

16-15    state or the counties of the authority are pledged to the payment

16-16    of the principal of or interest on the bond.

16-17          (c)  An authority may not incur financial obligations that

16-18    cannot be paid from revenue derived from owning or operating the

16-19    authority's turnpike projects and systems or from other revenue

16-20    provided by law.

16-21          Sec. 366.114.  EFFECT OF LIEN.  (a)  A lien on or a pledge of

16-22    revenue from a turnpike project or system under this chapter or on

16-23    a reserve, replacement, or other fund established in connection

16-24    with a bond issued under this chapter:

16-25                (1)  is enforceable at the time of payment for and

16-26    delivery of the bond;

16-27                (2)  applies to an item on hand or subsequently

16-28    received;

16-29                (3)  applies without physical delivery of an item or

16-30    other act; and

16-31                (4)  is enforceable against any person having any

16-32    claim, in tort, contract, or other remedy, against the applicable

16-33    authority without regard to whether the person has notice of the

16-34    lien or pledge.

16-35          (b)  A bond resolution is not required to be recorded except

16-36    in the regular records of the authority.

16-37          Sec. 366.115.  BOND INDENTURE.  (a)  Bonds issued under this

16-38    chapter may be secured by a bond indenture between the authority

16-39    and a corporate trustee that is a trust company or a bank that has

16-40    the powers of a trust company.

16-41          (b)  A bond indenture may pledge or assign the tolls and

16-42    other revenue to be received but may not convey or mortgage any

16-43    part of a turnpike project or system.

16-44          (c)  A bond indenture may:

16-45                (1)  set forth the rights and remedies of the

16-46    bondholders and the trustee;

16-47                (2)  restrict the individual right of action by

16-48    bondholders as is customary in trust agreements or indentures of

16-49    trust securing corporate bonds and debentures; and

16-50                (3)  contain provisions the authority determines

16-51    reasonable and proper for the security of the bondholders,

16-52    including covenants:

16-53                      (A)  establishing the authority's duties relating

16-54    to:

16-55                            (i)  the acquisition of property;

16-56                            (ii)  the construction, maintenance,

16-57    operation, and repair of and insurance for a turnpike project or

16-58    system; and

16-59                            (iii)  custody, safeguarding, and

16-60    application of money;

16-61                      (B)  prescribing events that constitute default;

16-62                      (C)  prescribing terms on which any or all of the

16-63    bonds become or may be declared due before maturity; and

16-64                      (D)  relating to the rights, powers, liabilities,

16-65    or duties that arise on the breach of an authority's duty.

16-66          (d)  The expenses incurred in carrying out a trust agreement

16-67    may be treated as part of the cost of operating the turnpike

16-68    project.

16-69          (e)  In addition to all other rights by mandamus or other

 17-1    court proceeding, an owner or trustee of a bond issued under this

 17-2    chapter may enforce the owner's rights against an issuing

 17-3    authority, the authority's employees, the authority's board, or an

 17-4    agent or employee of the authority's board and is entitled to:

 17-5                (1)  require the authority and the board to impose and

 17-6    collect tolls, charges, and other revenue sufficient to carry out

 17-7    any agreement contained in the bond proceedings; and

 17-8                (2)  apply for and obtain the appointment of a receiver

 17-9    for the turnpike project or system.

17-10          Sec. 366.116.  APPROVAL OF BONDS BY ATTORNEY GENERAL.

17-11    (a)  An authority shall submit to the attorney general for

17-12    examination a transcript of proceedings relating to bonds

17-13    authorized under this chapter.  The transcript shall include the

17-14    bond proceedings and any contract securing or providing revenue for

17-15    the payment of the bonds.

17-16          (b)  If the attorney general determines that the bonds, the

17-17    bond proceedings, and any supporting contract are authorized by

17-18    law, the attorney general shall approve the bonds and deliver to

17-19    the comptroller:

17-20                (1)  a copy of the legal opinion of the attorney

17-21    general stating the approval; and

17-22                (2)  the record of proceedings relating to the

17-23    authorization of the bonds.

17-24          (c)  On receipt of the legal opinion of the attorney general

17-25    and the record of proceedings relating to the authorization of the

17-26    bonds, the comptroller shall register the record of proceedings.

17-27          (d)  After approval by the attorney general, the bonds, the

17-28    bond proceedings, and any supporting contract are valid,

17-29    enforceable, and incontestable in any court or other forum for any

17-30    reason and are binding obligations according to their terms for all

17-31    purposes.

17-32          Sec. 366.117.  FURNISHING OF INDEMNIFYING BONDS OR PLEDGES OF

17-33    SECURITIES.  (a)  A bank or trust company incorporated under the

17-34    laws of this state that acts as depository of the proceeds of bonds

17-35    or of revenue may furnish indemnifying bonds or pledge securities

17-36    that an authority requires.

17-37          (b)  Bonds of an authority may secure the deposit of public

17-38    money of the state or a political subdivision of the state to the

17-39    extent of the lesser of the face value of the bonds or their market

17-40    value.

17-41          Sec. 366.118.  APPLICABILITY OF OTHER LAW; CONFLICTS.  All

17-42    laws affecting the issuance of bonds by local governmental

17-43    entities, including Chapter 656, Acts of the 68th Legislature,

17-44    Regular Session, 1983 (Article 717q, Vernon's Texas Civil

17-45    Statutes), Chapter 3, Acts of the 61st Legislature, Regular

17-46    Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), the

17-47    Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil

17-48    Statutes), and Chapter 53, Acts of the 70th Legislature, 2nd Called

17-49    Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes),

17-50    apply to bonds issued under this chapter.  To the extent of a

17-51    conflict between those laws and this chapter, the provisions of

17-52    this chapter prevail.

17-53             (Sections 366.119-366.160 reserved for expansion

17-54          SUBCHAPTER E.  ACQUISITION, CONSTRUCTION, AND OPERATION

17-55                           OF TURNPIKE PROJECTS

17-56          Sec. 366.161.  TURNPIKE PROJECTS EXTENDING INTO OTHER

17-57    COUNTIES.  An authority may acquire, construct, operate, maintain,

17-58    expand, or extend a turnpike project in:

17-59                (1)  a county that is a part of the authority;

17-60                (2)  a county in which the authority operates or is

17-61    constructing a turnpike project if the turnpike project in the

17-62    affected county is a continuation of the authority's turnpike

17-63    project or system extending from an adjacent county; or

17-64                (3)  a county in which the authority operates or is

17-65    constructing a turnpike project that is not a continuation of the

17-66    authority's turnpike project or system if the commissioners court

17-67    of the county and the commission have approved the project.

17-68          Sec. 366.162.  POWERS AND PROCEDURES OF AUTHORITY IN

17-69    ACQUIRING PROPERTY.  (a)  An authority may construct or improve a

 18-1    turnpike project on real property, including a right-of-way

 18-2    acquired by the authority or provided to the authority for that

 18-3    purpose by the commission, a political subdivision of this state,

 18-4    or any other local governmental entity.

 18-5          (b)  Except as provided by this chapter, an authority has the

 18-6    same powers and may use the same procedures as the commission in

 18-7    acquiring property.

 18-8          Sec. 366.163.  ACQUISITION OF PROPERTY.  (a)  An authority

 18-9    may acquire in the name of the authority public or private real and

18-10    other property it determines necessary or convenient for the

18-11    design, financing, construction, operation, maintenance, expansion,

18-12    or extension of a turnpike project or for otherwise carrying out

18-13    this chapter.

18-14          (b)  The property an authority may acquire under this

18-15    subchapter includes all or any portion of, and rights in and to:

18-16                (1)  public or private land, streets, alleys,

18-17    rights-of-way, parks, playgrounds, and reservations;

18-18                (2)  franchises;

18-19                (3)  easements;

18-20                (4)  licenses; and

18-21                (5)  other interests in real and other property.

18-22          (c)  An authority may acquire real property by any method,

18-23    including purchase and condemnation.  An authority may purchase

18-24    public or private real property on the terms and at the price the

18-25    authority and the property owner consider reasonable.

18-26          (d)  Covenants, conditions, restrictions, or limitations

18-27    affecting property acquired in any manner by the authority are not

18-28    binding against the authority and do not impair the authority's

18-29    ability to use the property for a purpose authorized by this

18-30    chapter.  The beneficiaries of the covenants, conditions,

18-31    restrictions, or limitations are not entitled to enjoin the

18-32    authority from using the property for a purpose authorized under

18-33    this chapter, but this section does not affect the right of a

18-34    person to seek damages to the person's property under Section 17,

18-35    Article I, Texas Constitution.

18-36          Sec. 366.164.  RIGHT OF ENTRY.  (a)  To acquire property

18-37    necessary or useful in connection with a turnpike project, an

18-38    authority may enter any real property, water, or premises to make a

18-39    survey, geotechnical evaluation, sounding, or examination.

18-40          (b)  An entry under Subsection (a) is not:

18-41                (1)  a trespass; or

18-42                (2)  an entry under a pending condemnation proceeding.

18-43          Sec. 366.165.  CONDEMNATION OF REAL PROPERTY.  (a)  Subject

18-44    to Subsection (c), an authority may acquire public or private real

18-45    property in the name of the authority by the exercise of the power

18-46    of condemnation under the laws applicable to the exercise of that

18-47    power on property for public use if:

18-48                (1)  the authority and the property owner cannot agree

18-49    on a reasonable price for the property; or

18-50                (2)  the property owner is legally incapacitated,

18-51    absent, unknown, or unable to convey title.

18-52          (b)  An authority may condemn real property that the

18-53    authority determines is:

18-54                (1)  necessary or appropriate to construct or to

18-55    efficiently operate a turnpike project;

18-56                (2)  necessary to restore public or private property

18-57    damaged or destroyed;

18-58                (3)  necessary for access, approach, and interchange

18-59    roads;

18-60                (4)  necessary for supplemental facilities of the

18-61    authority;

18-62                (5)  necessary to provide proper drainage and ground

18-63    slope for a turnpike project; or

18-64                (6)  necessary otherwise to implement this chapter.

18-65          (c)  An authority's acquisition of any real or other property

18-66    of the commission under this section or any other section of this

18-67    chapter, or an authority's relocation, rerouting, disruption, or

18-68    alteration of any facility of the commission is considered a

18-69    conversion of a state highway under Section 366.035 and is subject

 19-1    to all requirements and approvals of a conversion under that

 19-2    section.

 19-3          Sec. 366.166.  DECLARATION OF TAKING.  (a)  An authority may

 19-4    file a declaration of taking with the clerk of the court:

 19-5                (1)  in which the authority files a condemnation

 19-6    petition under Chapter 21, Property Code; or

 19-7                (2)  to which the case is assigned.

 19-8          (b)  An authority may file the declaration of taking

 19-9    concurrently with or subsequent to the petition but may not file

19-10    the declaration after the special commissioners have made an award

19-11    in the condemnation proceeding.

19-12          (c)  The declaration of taking must include:

19-13                (1)  a specific reference to the legislative authority

19-14    for the condemnation;

19-15                (2)  a description and plot plan of the real property

19-16    to be condemned, including the following information if applicable:

19-17                      (A)  the municipality in which the property is

19-18    located;

19-19                      (B)  the street address of the property; and

19-20                      (C)  the lot and block number of the property;

19-21                (3)  a statement of the property interest to be

19-22    condemned;

19-23                (4)  the name and address of each property owner that

19-24    the authority can obtain after reasonable investigation and a

19-25    description of the owner's interest in the property; and

19-26                (5)  a statement that immediate possession of all or

19-27    part of the property to be condemned is necessary for the timely

19-28    construction of a turnpike project.

19-29          (d)  A deposit to the registry of the court of an amount

19-30    equal to the appraised fair market value, as determined by the

19-31    authority, of the property to be condemned and any damages to the

19-32    remainder must accompany the declaration of taking.

19-33          (e)  Instead of the deposit under Subsection (d), at its

19-34    option, the authority may, concurrently with the declaration of a

19-35    taking, tender in favor of the owner of the subject property a bond

19-36    or other security in an amount sufficient to secure the owner for

19-37    the value of the property taken and damages to remaining property,

19-38    if the authority obtains the court's approval.

19-39          (f)  The date on which the declaration is filed is the date

19-40    of taking for the purpose of assessing the value of the property

19-41    taken and damages to any remaining property to which an owner is

19-42    entitled.

19-43          (g)  An owner may draw upon the deposit held by the court

19-44    under Subsection (d) on the same terms and conditions as are

19-45    applicable under state law to a property owner's withdrawal of a

19-46    commissioners' award deposited under Section 21.021(a)(1), Property

19-47    Code.

19-48          (h)  A property owner that is a defendant in an eminent

19-49    domain action filed by an authority under this chapter has 20 days

19-50    after the date of service of process of both a condemnation

19-51    petition and a notice of declaration of taking to give notice to

19-52    the court in which the action is pending of the defendant's desire

19-53    to have the condemnation petition placed on the court's docket in

19-54    the same manner as other cases pending in the court.  On receipt of

19-55    timely notice from the defendant, the court in which the eminent

19-56    domain action is pending shall place the case on its docket in the

19-57    same manner as other cases pending in the court.

19-58          Sec. 366.167.  POSSESSION OF PROPERTY.  (a)  Immediately on

19-59    the filing of a declaration of taking, an authority shall serve a

19-60    copy of the declaration on each person possessing an interest in

19-61    the condemned property by a method prescribed by Section 21.016(d),

19-62    Property Code.  The authority shall file evidence of the service

19-63    with the clerk of the court.  On filing of that evidence, the

19-64    authority may take possession of the property on the same terms as

19-65    if a commissioners hearing had been conducted, pending the

19-66    litigation.

19-67          (b)  If the condemned property is a homestead or a portion of

19-68    a homestead as defined by Section 41.002, Property Code, an

19-69    authority may not take possession before the 31st day after the

 20-1    date of service under Subsection (a).

 20-2          (c)  A property owner or tenant who refuses to vacate the

 20-3    property or yield possession is subject to forcible entry and

 20-4    detainer under Chapter 24, Property Code.

 20-5          Sec. 366.168.  SEVERANCE OF REAL PROPERTY.  (a)  If an

 20-6    authority's turnpike project severs a property owner's real

 20-7    property, the authority shall pay:

 20-8                (1)  the value of the property acquired; and

 20-9                (2)  the damages, if any, to the remainder of the

20-10    owner's property caused by the severance, including damages caused

20-11    by the inaccessibility of one tract from the other.

20-12          (b)  At its option, an authority may negotiate for and

20-13    purchase the severed real property or any part of the severed real

20-14    property if the authority and the property owner agree on terms for

20-15    the purchase.  An authority may sell and dispose of severed real

20-16    property that it determines is not necessary or useful to the

20-17    authority.  Severed property must be appraised before being offered

20-18    for sale by an authority.

20-19          Sec. 366.169.  ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY.

20-20    (a)  An authority may use real property, including submerged land,

20-21    streets, alleys, and easements, owned by the state or a local

20-22    governmental entity that the authority considers necessary for the

20-23    construction or operation of a turnpike project.

20-24          (b)  The state or a local governmental entity having charge

20-25    of public real property may consent to the use of the property for

20-26    a turnpike project.

20-27          (c)  Except as provided by Section 366.035, the state or a

20-28    local governmental entity may convey, grant, or lease to an

20-29    authority real property, including highways and other real property

20-30    already devoted to public use and rights or easements in real

20-31    property, that may be necessary or convenient to accomplish the

20-32    authority's purposes, including the construction or operation of a

20-33    turnpike project.  A conveyance, grant, or lease under this section

20-34    may be made without advertising, court order, or other action other

20-35    than the normal action of the state or local governmental entity

20-36    necessary for a conveyance, grant, or lease.

20-37          (d)  This section does not deprive the School Land Board of

20-38    the power to execute leases for the development of oil, gas, and

20-39    other minerals on state-owned real property adjoining a turnpike

20-40    project or in tidewater limits.  The leases may provide for

20-41    directional drilling from the adjoining property or tidewater area.

20-42          Sec. 366.170.  COMPENSATION FOR AND RESTORATION OF PUBLIC

20-43    PROPERTY.  (a)  Except as provided by Section 366.035 or Section

20-44    366.165(c), an authority may not pay compensation for public real

20-45    property, parkways, streets, highways, alleys, or reservations it

20-46    takes, except for parks and playgrounds or as provided by this

20-47    chapter.

20-48          (b)  Public property damaged in the exercise of powers

20-49    granted by this chapter shall be restored or repaired and placed in

20-50    its original condition as nearly as practicable.

20-51          (c)  An authority has full easements and rights-of-way

20-52    through, across, under, and over any property owned by the state or

20-53    any local governmental entity that are necessary or convenient to

20-54    construct, acquire, or efficiently operate a turnpike project or

20-55    system under this chapter.

20-56          Sec. 366.171.  PUBLIC UTILITY FACILITIES.  (a)  An authority

20-57    may adopt rules for the installation, construction, operation,

20-58    maintenance, repair, renewal, relocation, and removal of a public

20-59    utility facility in, on, along, over, or under a turnpike project.

20-60          (b)  If an authority determines it is necessary that a public

20-61    utility facility located in, on, along, over, or under a turnpike

20-62    project be relocated in the turnpike project, removed from the

20-63    turnpike project, or carried along or across the turnpike project

20-64    by grade separation, the owner or operator of the utility facility

20-65    shall relocate or remove the facility in accordance with the

20-66    requirements of the authority and in a manner that does not impede

20-67    the design, financing, construction, operation, or maintenance of

20-68    the turnpike project.  The authority, as a part of the cost of the

20-69    turnpike project or the cost of operating the turnpike project,

 21-1    shall pay the cost of the relocation, removal, or grade separation,

 21-2    including the cost of:

 21-3                (1)  installation of the facility in a new location;

 21-4                (2)  interests in real property and other rights

 21-5    acquired to accomplish the relocation or removal; and

 21-6                (3)  maintenance of grade separation structures.

 21-7          (c)  The authority may reduce the total costs to be paid by

 21-8    the authority under Subsection (b) by 10 percent for each 30-day

 21-9    period or portion of a 30-day period by which the relocation

21-10    exceeds the limit specified by the authority.  If an owner or

21-11    operator of a public utility facility does not timely remove or

21-12    relocate as required under Subsection (b), the authority may do so

21-13    at the expense of the public utility.  If the authority determines

21-14    that a delay in relocation is the result of circumstances beyond

21-15    the control of the utility, full costs shall be paid by the

21-16    authority.

21-17          (d)  Chapter 228, Acts of the 51st Legislature, Regular

21-18    Session, 1949 (Article 1436a, Vernon's Texas Civil Statutes),

21-19    applies to the erection, construction, maintenance, and operation

21-20    of lines and poles owned by a corporation described by Section 1 of

21-21    that Act over, under, across, on, and along a turnpike project or

21-22    system constructed by an authority.  An authority has the powers

21-23    and duties delegated to the commissioners court by that Act, and an

21-24    authority has exclusive jurisdiction and control of utilities

21-25    located in its rights-of-way.

21-26          (e)  The laws of this state applicable to the use of public

21-27    roads, streets, and waters by a telephone and telegraph corporation

21-28    apply to the erection, construction, maintenance, location, and

21-29    operation of a line, pole, or other fixture by a telephone and

21-30    telegraph corporation over, under, across, on, and along a turnpike

21-31    project or system constructed by an authority under this chapter.

21-32          (f)  In this section "public utility facility" means a track,

21-33    pipe, main, conduit, cable, wire, tower, pole, or other item of

21-34    plant or equipment or an appliance of a public utility or other

21-35    person.

21-36          Sec. 366.172.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

21-37    PROJECT.  (a)  An authority may lease, sell, or convey in another

21-38    manner a turnpike project to the department, a county, or a local

21-39    government corporation created under Chapter 431.

21-40          (b)  An agreement to lease, sell, or convey a turnpike

21-41    project under this section must provide for the discharge and final

21-42    payment or redemption of the authority's outstanding bonded

21-43    indebtedness for the turnpike project and must not be prohibited

21-44    under the bond proceedings applicable to the system, if any, of

21-45    which the turnpike project is a part.

21-46          Sec. 366.173.  REVENUE.  (a)  An authority may:

21-47                (1)  impose tolls for the use of each of its turnpike

21-48    projects and systems and the different parts or sections of each of

21-49    its turnpike projects and systems; and

21-50                (2)  contract with a person for the use of part of a

21-51    turnpike project or system or lease or sell part of a turnpike

21-52    project or system, including the right-of-way adjoining the paved

21-53    portion, for any purpose, including placing on the adjoining

21-54    right-of-way a gas station, garage, store, hotel, restaurant,

21-55    parking facility, railroad track, billboard, livestock pasturage,

21-56    telephone line or facility, telecommunication line or facility,

21-57    data transmission line or facility, and electric line or facility,

21-58    under terms set by the authority.

21-59          (b)  Tolls must be set so that the aggregate of tolls from an

21-60    authority's turnpike project or system, together with other revenue

21-61    of the turnpike project or system:

21-62                (1)  provides revenue sufficient to pay:

21-63                      (A)  the cost of maintaining, repairing, and

21-64    operating the turnpike project or system; and

21-65                      (B)  the principal of and interest on the bonds

21-66    issued for the turnpike project or system as those bonds become due

21-67    and payable; and

21-68                (2)  creates reserves for a purpose listed under

21-69    Subdivision (1).

 22-1          (c)  Tolls are not subject to supervision or regulation by

 22-2    any state agency or other local governmental entity.

 22-3          (d)  Tolls and other revenue derived from a turnpike project

 22-4    or system for which bonds are issued, except the part necessary to

 22-5    pay the cost of maintenance, repair, and operation and to provide

 22-6    reserves for those costs as may be provided in the bond

 22-7    proceedings, shall be set aside at regular intervals as may be

 22-8    provided in the bond resolution or trust agreement in a sinking

 22-9    fund that is pledged to and charged with the payment of:

22-10                (1)  interest on the bonds as it becomes due;

22-11                (2)  principal of the bonds as it becomes due;

22-12                (3)  necessary charges of paying agents for paying

22-13    principal and interest; and

22-14                (4)  the redemption price or the purchase price of

22-15    bonds retired by call or purchase as provided by the bond

22-16    proceedings.

22-17          (e)  Use and disposition of money to the credit of the

22-18    sinking fund is subject to the bond proceedings.

22-19          (f)  To the extent permitted under the applicable bond

22-20    proceedings, revenue from one turnpike project of an authority may

22-21    be used to pay the cost of other turnpike projects of the

22-22    authority.

22-23          (g)  An authority may not use revenue from its turnpike

22-24    projects in a manner not authorized by this chapter.  Revenue

22-25    generated from a turnpike project may not be applied for a purpose

22-26    or to pay a cost other than a cost or purpose that is reasonably

22-27    related to or anticipated for a turnpike project.

22-28          Sec. 366.174.  AUTHORITY REVOLVING FUND.  (a)  An authority

22-29    may maintain a revolving fund to be held in trust by a banking

22-30    institution chosen by the authority separate from any other funds

22-31    and administered by the authority's board.

22-32          (b)  An authority may transfer into its revolving fund money

22-33    from any permissible source, including:

22-34                (1)  money from a turnpike project if the transfer does

22-35    not diminish the money available for the project or the system, if

22-36    any, of which it is a part to less than an amount required to be

22-37    retained by the bond proceedings pertaining to the project or

22-38    system;

22-39                (2)  money received by the authority from any source

22-40    and not otherwise committed, including money from the transfer of a

22-41    turnpike project or system or sale of authority assets;

22-42                (3)  advances authorized under Section 52-b, Article

22-43    III, Texas Constitution; and

22-44                (4)  contributions, loans, grants, or assistance from

22-45    the United States, another state, a political subdivision of this

22-46    state, a foreign governmental entity, including the United Mexican

22-47    States or a state of the United Mexican States, a local

22-48    governmental entity, any private enterprise, or any person.

22-49          (c)  The authority may use money in the revolving fund to:

22-50                (1)  finance the acquisition, construction,

22-51    maintenance, or operation of a turnpike project or system,

22-52    including the extension, expansion, or improvement of a project or

22-53    system;

22-54                (2)  provide matching money required in connection with

22-55    any federal, state, local, or private aid, grant, or other funding,

22-56    including aid or funding by or with public-private partnerships;

22-57                (3)  provide credit enhancement either directly or

22-58    indirectly for bonds issued to acquire, construct, extend, expand,

22-59    or improve a turnpike project or system;

22-60                (4)  provide security for or payment of future or

22-61    existing debt for the design, acquisition, construction, operation,

22-62    maintenance, extension, expansion, or improvement of a turnpike

22-63    project or system;

22-64                (5)  borrow money and issue promissory notes or other

22-65    indebtedness payable out of the revolving fund for any purpose

22-66    authorized by this chapter; and

22-67                (6)  provide for any other reasonable purpose that

22-68    assists in the financing of an authority as authorized by this

22-69    chapter.

 23-1          (d)  Money spent or advanced from the revolving fund for a

 23-2    turnpike project or system must be reimbursed from the money of

 23-3    that turnpike project or system, and there must be a reasonable

 23-4    expectation of such repayment at the time of authorization.

 23-5          Sec. 366.175.  USE OF SURPLUS REVENUE.  The board of an

 23-6    authority may by resolution authorize the use of surplus revenue of

 23-7    a turnpike project or system to pay the costs of another turnpike

 23-8    project or system other than a project financed under Subchapter G.

 23-9    The board may in the resolution prescribe terms for the use of the

23-10    revenue, including the pledge of the revenue, but may not take an

23-11    action under this section that violates, impairs, or is

23-12    inconsistent with a bond resolution, trust agreement, or indenture

23-13    governing the use of the surplus revenue.

23-14          Sec. 366.176.  EXEMPTION FROM TAXATION OR ASSESSMENT.

23-15    (a)  An authority is exempt from taxation of or assessments on:

23-16                (1)  a turnpike project or system;

23-17                (2)  property the authority acquires or uses under this

23-18    chapter; or

23-19                (3)  income from property described by Subdivision (1)

23-20    or (2).

23-21          (b)  An authority is exempt from payment of development fees,

23-22    utility connection fees, assessments, and service fees imposed or

23-23    assessed by a county, municipality, road and utility district,

23-24    river authority, any other state or local governmental entity, or

23-25    any property owners' or homeowners' association.

23-26          Sec. 366.177.  ACTIONS AFFECTING EXISTING ROADS.  (a)  An

23-27    authority may impose a toll for transit over an existing free road,

23-28    street, or public highway transferred to the authority under this

23-29    chapter.

23-30          (b)  An authority may construct a grade separation at an

23-31    intersection of a turnpike project with a railroad or highway and

23-32    change the line or grade of a highway to accommodate the design of

23-33    the grade separation.  The action may not affect a segment of the

23-34    state highway system without the department's consent.  The

23-35    authority shall pay the cost of a grade separation and any damage

23-36    incurred in changing a line or grade of a railroad or highway as

23-37    part of the cost of the turnpike project.

23-38          (c)  If feasible, an authority shall provide access to

23-39    properties previously abutting a county or other public road that

23-40    is taken for a turnpike project and shall pay abutting property

23-41    owners the expenses or any resulting damages for a denial of access

23-42    to the road.

23-43          Sec. 366.178.  FAILURE OR REFUSAL TO PAY TOLL.  (a)  A motor

23-44    vehicle other than a police or emergency vehicle that passes

23-45    through a toll collection facility, whether driven or towed, shall

23-46    pay the proper toll.

23-47          (b)  A person who fails or refuses to pay a toll provided for

23-48    the use of a project is liable for a fine not to exceed $250, plus

23-49    an administrative fee incurred in connection with the violation.

23-50          (c)  If a person fails to pay the proper toll:

23-51                (1)  on issuance of a notice of nonpayment, the

23-52    registered owner of the nonpaying vehicle shall pay both the proper

23-53    toll and the administrative fee; and

23-54                (2)  an authority may charge an administrative fee of

23-55    not more than $100 to recover the cost of collecting the unpaid

23-56    toll.

23-57          (d)  Notice of nonpayment under Subsection (c)(1) shall be

23-58    sent by first-class mail and may not require payment of the proper

23-59    toll and the administrative fee before the 30th day after the date

23-60    the notice is mailed.  The registered owner shall pay a separate

23-61    toll and administrative fee for each nonpayment.

23-62          (e)  If the registered owner of the vehicle fails to pay the

23-63    proper toll and administrative fee in the time specified by the

23-64    notice, the owner shall be cited as for other traffic violations as

23-65    provided by law, and the owner shall pay a fine of not more than

23-66    $250 for each nonpayment.

23-67          (f)  In the prosecution of a violation for nonpayment, proof

23-68    that the vehicle passed through a toll collection facility without

23-69    payment of the proper toll together with proof that the defendant

 24-1    was the registered owner or the driver of the vehicle when the

 24-2    failure to pay occurred, establishes the nonpayment of the

 24-3    registered owner.  The proof may be by testimony of a peace officer

 24-4    or authority employee, video surveillance, or any other reasonable

 24-5    evidence.

 24-6          (g)  The court of the local jurisdiction in which the

 24-7    violation occurs may assess and collect the fine in addition to any

 24-8    court costs.  The court shall collect the proper toll and

 24-9    administrative fee and forward the toll and fee to the authority.

24-10          (h)  It is a defense to nonpayment under this section that

24-11    the motor vehicle in question was stolen before the failure to pay

24-12    the proper toll occurred and was not recovered by the time of the

24-13    failure to pay, but only if the theft was reported to the

24-14    appropriate law enforcement authority before the earlier of:

24-15                (1)  the occurrence of the failure to pay; or

24-16                (2)  eight hours after the discovery of the theft.

24-17          (i)  A registered owner who is the lessor of a vehicle for

24-18    which a notice of nonpayment has been issued is not liable if, not

24-19    later than the 30th day after the date the notice of nonpayment is

24-20    mailed, the registered owner provides to the authority a copy of

24-21    the lease agreement covering the vehicle on the date of the

24-22    nonpayment.  The name and address of the lessee must be clearly

24-23    legible.  If the lessor timely provides the required information,

24-24    the lessee of the vehicle on the date of the violation is

24-25    considered to be the owner of the vehicle for purposes of this

24-26    section.  The lessee is subject to prosecution for failure to pay

24-27    the proper toll if the authority sends a notice of nonpayment to

24-28    the lessee by first-class mail not later than the 30th day after

24-29    the date of the receipt of the information from the lessor.

24-30          Sec. 366.179.  USE AND RETURN OF TRANSPONDERS.  (a)  For

24-31    purposes of this section, a transponder is a device placed on or

24-32    within an automobile that is capable of transmitting or receiving

24-33    information used to assess or collect tolls.  A transponder is

24-34    insufficiently funded if there is no money in the account for which

24-35    the transponder was issued.

24-36          (b)  Any law enforcement or peace officer of the Department

24-37    of Public Safety may seize a stolen or insufficiently funded

24-38    transponder and return it to the authority that issued the

24-39    transponder.  An insufficiently funded transponder may not be

24-40    seized before the 30th day after the date that an authority has

24-41    sent a notice of delinquency to the holder of the account.

24-42          Sec. 366.180.  CONTROLLED ACCESS TO TURNPIKE PROJECTS.

24-43    (a)  An authority may designate a turnpike project or a portion of

24-44    a project as a controlled-access toll road.

24-45          (b)  An authority by order may:

24-46                (1)  prohibit the use of or access to or from a

24-47    turnpike project by a motor vehicle, bicycle, other vehicle, or a

24-48    pedestrian;

24-49                (2)  deny access to or from:

24-50                      (A)  its turnpike projects;

24-51                      (B)  real property adjacent to its turnpike

24-52    projects; or

24-53                      (C)  a street, road, alley, highway, or other

24-54    public or private way intersecting its turnpike projects;

24-55                (3)  designate locations on its turnpike projects at

24-56    which access to or from the toll road is permitted;

24-57                (4)  control, restrict, and determine the type and

24-58    extent of access permitted at a designated location of access to

24-59    the turnpike projects; or

24-60                (5)  erect appropriate protective devices to preserve

24-61    the utility, integrity, and use of its turnpike projects.

24-62          (c)  Denial of access to or from a segment of the state

24-63    highway system is subject to the approval of the commission.

24-64          Sec. 366.181.  PROMOTION OF TOLL ROADS.  An authority may

24-65    promote the use of its turnpike projects by appropriate means,

24-66    including advertising or marketing as the authority determines

24-67    appropriate.

24-68          Sec. 366.182.  OPERATION OF TURNPIKE PROJECT; PEACE OFFICERS.

24-69    (a)  An authority shall operate its turnpike projects through a

 25-1    force of toll-takers and other employees of the authority or

 25-2    through services contracted under Subsection (b) or (c).

 25-3          (b)  An authority may enter into an agreement with one or

 25-4    more persons to provide, on terms and conditions approved by the

 25-5    authority, personnel and services to design, construct, operate,

 25-6    maintain, expand, enlarge, or extend the authority's turnpike

 25-7    projects.

 25-8          (c)  An authority may contract with any state or local

 25-9    government entity for the services of peace officers of that

25-10    agency.

25-11          Sec. 366.183.  AUDIT.  An authority shall have a certified

25-12    public accountant audit the authority's books and accounts at least

25-13    annually.  The cost of the audit may be treated as part of the cost

25-14    of construction or operation of a turnpike project.

25-15          Sec. 366.184.  DISADVANTAGED BUSINESSES.  (a)  Consistent

25-16    with general law, an authority shall:

25-17                (1)  set goals for the award of contracts to

25-18    disadvantaged businesses and attempt to meet the goals;

25-19                (2)  attempt to identify disadvantaged businesses that

25-20    provide or have the potential to provide supplies, materials,

25-21    equipment, or services to the authority; and

25-22                (3)  give disadvantaged businesses full access to the

25-23    authority's contract bidding process, inform the businesses about

25-24    the process, offer the businesses assistance concerning the

25-25    process, and identify barriers to the businesses' participation in

25-26    the process.

25-27          (b)  This section does not exempt an authority from

25-28    competitive bidding requirements provided by other law.

25-29          Sec. 366.185.  COMPETITIVE BIDDING.  (a)  A contract made by

25-30    an authority that requires the expenditures of public funds for the

25-31    construction or maintenance of a turnpike project must be let by a

25-32    competitive bidding procedure in which the contract is awarded to

25-33    the lowest responsible bidder that complies with the authority's

25-34    criteria.

25-35          (b)  The authority shall adopt rules governing the award of

25-36    contracts through competitive bidding.

25-37             (Sections 366.186-366.250 reserved for expansion

25-38                         SUBCHAPTER F.  GOVERNANCE

25-39          Sec. 366.251.  BOARD OF DIRECTORS.  (a)  An authority is

25-40    governed by a board of directors.

25-41          (b)  The commissioners court of each county of the authority

25-42    shall appoint one director to serve on the board.  The governor

25-43    shall appoint three directors to serve on the board.

25-44          (c)  Directors shall be divided into two groups.  To the

25-45    greatest degree possible, each group shall contain an equal number

25-46    of directors.  Directors shall serve terms of two years, except

25-47    that one group of directors of the initial board of an authority

25-48    shall serve for a term of one year.

25-49          (d)  Two directors appointed by the governor must have

25-50    resided in a county of the authority for at least one year before

25-51    the person's appointment.  One director appointed by the governor

25-52    must have resided in Parker County, Ellis County, or Johnson County

25-53    for at least one year before the person's appointment.  Each

25-54    director appointed by a commissioners court must have resided in

25-55    that county for at least one year before the person's appointment.

25-56          (e)  All appointments to the board shall be made without

25-57    regard to race, color, disability, sex, religion, age, or national

25-58    origin.

25-59          (f)  An elected official is not eligible to serve as a

25-60    director.

25-61          (g)  A vacancy in a position shall be filled promptly by the

25-62    entity that made the appointment.

25-63          (h)  Each director has equal status and may vote.

25-64          (i)  The board of an authority shall select one director as

25-65    the presiding officer of the board to serve in that capacity until

25-66    the person's term as a director expires.  The board shall elect one

25-67    director as assistant presiding officer.  The board shall select a

25-68    secretary and treasurer, neither of whom need be a director.

25-69          (j)  The vote of a majority attending a board meeting is

 26-1    necessary for any action taken by the board.  If a vacancy exists

 26-2    on a board, the majority of directors serving on the board is a

 26-3    quorum.

 26-4          Sec. 366.252.  CONFLICT OF INTEREST.  (a)  A person is not

 26-5    eligible to serve on the board of an authority if the person or the

 26-6    person's spouse:

 26-7                (1)  is registered, certified, or licensed by an

 26-8    occupational regulatory agency in the field of toll road

 26-9    construction, maintenance, or operation;

26-10                (2)  is employed by or participates in the management

26-11    of a business entity or other organization regulated by the

26-12    authority or receiving money from the authority;

26-13                (3)  owns or controls, directly or indirectly, more

26-14    than a 10 percent interest in a business entity or other

26-15    organization regulated by or receiving money from the authority,

26-16    other than compensation for acquisition of turnpike right-of-way;

26-17                (4)  uses or receives a substantial amount of tangible

26-18    goods, services, or money from the authority, other than

26-19    compensation or reimbursement authorized by law for board

26-20    membership, attendance, or expenses, or for compensation for

26-21    acquisition of turnpike right-of-way;

26-22                (5)  is an officer, employee, or paid consultant of a

26-23    Texas trade association in the field of road construction,

26-24    maintenance, or operation; or

26-25                (6)  is required to register as a lobbyist under

26-26    Chapter 305, Government Code, because of the person's activities

26-27    for compensation on behalf of a profession related to the operation

26-28    of the authority.

26-29          (b)  A person may not act as the general counsel to an

26-30    authority if the person is required to register as a lobbyist under

26-31    Chapter 305, Government Code, because of the person's activities

26-32    for compensation on behalf of a profession related to the operation

26-33    of the authority.

26-34          (c)  In this section, "Texas trade association" means a

26-35    nonprofit, cooperative, and voluntarily joined association of

26-36    business or professional competitors in this state designed to

26-37    assist its members and its industry or profession in dealing with

26-38    mutual business or professional problems and in promoting their

26-39    common interests.

26-40          Sec. 366.253.  SURETY BONDS.  (a)  Before beginning a term,

26-41    each director shall execute a surety bond in the amount of $25,000,

26-42    and the secretary and treasurer shall execute a surety bond in the

26-43    amount of $50,000.

26-44          (b)  Each surety bond must be:

26-45                (1)  conditioned on the faithful performance of the

26-46    duties of office;

26-47                (2)  executed by a surety company authorized to

26-48    transact business in this state; and

26-49                (3)  filed with the secretary of state's office.

26-50          (c)  The authority shall pay the expense of the bonds.

26-51          Sec. 366.254.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

26-52    removal of a director from the board if the director:

26-53                (1)  did not have at the time of appointment the

26-54    qualifications required by Section 366.251(d);

26-55                (2)  whether at the time of appointment or at any time

26-56    during the director's term, is ineligible under Section 366.251(f)

26-57    or 366.252 to serve as a director;

26-58                (3)  cannot discharge the director's duties for a

26-59    substantial part of the term for which the director is appointed

26-60    because of illness or disability; or

26-61                (4)  is absent from more than half of the regularly

26-62    scheduled board meetings that the director is eligible to attend

26-63    during a calendar year unless the absence is excused by majority

26-64    vote of the board.

26-65          (b)  The validity of an action of the board is not affected

26-66    by the fact that it is taken when a ground for removal of a

26-67    director exists.

26-68          (c)  If the administrative head of the authority has

26-69    knowledge that a potential ground for removal exists, that person

 27-1    shall notify the presiding officer of the board of the ground.  The

 27-2    presiding officer shall then notify the person that appointed the

 27-3    director that a potential ground for removal exists.

 27-4          Sec. 366.255.  COMPENSATION OF DIRECTOR.  Each director is

 27-5    entitled to reimbursement for the director's actual expenses

 27-6    necessarily incurred in the performance of the director's duties.

 27-7    A director is not entitled to any additional compensation for the

 27-8    director's services.

 27-9          Sec. 366.256.  EVIDENCE OF AUTHORITY ACTIONS.  Actions of an

27-10    authority are the actions of its board and may be evidenced in any

27-11    legal manner, including a board resolution.

27-12          Sec. 366.257.  PUBLIC ACCESS.  An authority shall:

27-13                (1)  make and implement policies that provide the

27-14    public with a reasonable opportunity to appear before the board to

27-15    speak on any issue under the jurisdiction of the authority; and

27-16                (2)  prepare and maintain a written plan that describes

27-17    how an individual who does not speak English or who has a physical,

27-18    mental, or developmental disability may be provided reasonable

27-19    access to the authority's programs.

27-20          Sec. 366.258.  INDEMNIFICATION.  (a)  An authority may

27-21    indemnify one or more of its directors or officers for necessary

27-22    expenses and costs, including attorney's fees, incurred by the

27-23    directors or officers in connection with any claim asserted against

27-24    the directors or officers in their respective capacities as

27-25    directors or officers.

27-26          (b)  If an authority does not fully indemnify a director or

27-27    officer as provided by Subsection (a), the court in a proceeding in

27-28    which any claim against the director or officer is asserted or any

27-29    court with jurisdiction of an action instituted by the director or

27-30    officer on a claim for indemnity may assess indemnity against the

27-31    authority, its receiver, or trustee only if the court finds that,

27-32    in connection with the claim, the director or officer is not guilty

27-33    of negligence or misconduct.

27-34          (c)  A court may not assess indemnity under Subsection (b)

27-35    for an amount paid by the director or officer to the authority.

27-36          (d)  This section applies to a current or former director or

27-37    officer of the authority.

27-38          Sec. 366.259.  PURCHASE OF LIABILITY INSURANCE.  (a)  An

27-39    authority shall insure its officers and employees from liability

27-40    arising from the use, operation, or maintenance of equipment that

27-41    is used or may be used in connection with the laying out,

27-42    construction, or maintenance of the authority's turnpike projects.

27-43          (b)  Insurance coverage under this section must be provided

27-44    by the purchase of a policy of liability insurance from a reliable

27-45    insurance company authorized to do business in this state.  The

27-46    form of the policy must be approved by the commissioner of

27-47    insurance.

27-48          (c)  This section is not a waiver of immunity of the

27-49    authority or the counties in an authority from liability for the

27-50    torts or negligence of an officer or employee of an authority.

27-51          (d)  In this section, "equipment" includes an automobile,

27-52    motor truck, trailer, aircraft, motor grader, roller, tractor,

27-53    tractor power mower, and other power equipment.

27-54          Sec. 366.260.  CERTAIN CONTRACTS AND SALES PROHIBITED.

27-55    (a)  A director, agent, or employee of an authority may not:

27-56                (1)  contract with the authority; or

27-57                (2)  be directly or indirectly interested in:

27-58                      (A)  a contract with the authority; or

27-59                      (B)  the sale of property to the authority.

27-60          (b)  A person who violates Subsection (a) is liable for a

27-61    civil penalty to the authority not to exceed $1,000.

27-62          (c)  Subsection (a) does not apply to the sale of turnpike

27-63    right-of-way to an authority.

27-64          Sec. 366.261.  STRATEGIC PLANS AND ANNUAL REPORTS.  (a)  An

27-65    authority shall make a strategic plan for its operations.  A

27-66    majority of the commissioners courts of the counties composing the

27-67    authority shall by concurrent resolution determine the types of

27-68    information required to be included in the strategic plan.  Each

27-69    even-numbered year, an authority shall issue a plan covering the

 28-1    next five fiscal years, beginning with the next odd-numbered fiscal

 28-2    year.

 28-3          (b)  Not later than March 31 of each year, an authority shall

 28-4    file with the commissioners court of each county of the authority a

 28-5    written report on the authority's activities describing all

 28-6    turnpike revenue bond issuances anticipated for the coming year,

 28-7    the financial condition of the authority, all project schedules,

 28-8    and the status of the authority's performance under the most recent

 28-9    strategic plan.  At the invitation of a commissioners court of a

28-10    county in the authority, the board and the administrative head of

28-11    an authority shall appear before the commissioners court to present

28-12    the report and receive questions and comments.

28-13          (c)  The authority shall give notice to the commissioners

28-14    court of each county of the authority not later than the 90th day

28-15    before the date of issuance of revenue bonds.

28-16          Sec. 366.262.  MEETINGS BY TELEPHONE CONFERENCE CALL.

28-17    (a)  Chapter 551, Government Code, does not prohibit any open or

28-18    closed meeting of the board, a committee of the board, or the

28-19    staff, or any combination of the board or staff, from being held by

28-20    telephone conference call.

28-21          (b)  A telephone conference call meeting is subject to the

28-22    notice requirements applicable to other meetings.

28-23          (c)  Notice of a telephone conference call meeting that by

28-24    law must be open to the public must specify the location of the

28-25    meeting.  The location must be a conference room of the authority

28-26    or other facility in a county of the authority that is accessible

28-27    to the public.

28-28          (d)  Each part of the telephone conference call meeting that

28-29    by law must be open to the public shall be audible to the public at

28-30    the location specified in the notice and shall be tape-recorded or

28-31    documented by written minutes.  On conclusion of the meeting, the

28-32    tape recording or the written minutes of the meeting shall be made

28-33    available to the public.

28-34             (Sections 366.263-366.300 reserved for expansion

28-35             SUBCHAPTER G.  AID FOR REGIONAL TURNPIKE PROJECTS

28-36          Sec. 366.301.  DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS.

28-37    (a)  To the extent permitted by the Texas Constitution, the

28-38    department may agree with an authority to provide for or contribute

28-39    to the payment of costs of financial or engineering and traffic

28-40    feasibility studies and the design, financing, acquisition,

28-41    construction, operation, or maintenance of a turnpike project or

28-42    system on terms agreed on by the commission or department, as

28-43    applicable, and the authority.  The agreement may not be

28-44    inconsistent with the rights of the bondholders or persons

28-45    operating the turnpike project under a lease or other contract.

28-46          (b)  The department may use its engineering and other

28-47    personnel, including consulting engineers and traffic engineers, to

28-48    conduct feasibility studies under Subsection (a).

28-49          (c)  An obligation or expense incurred by the commission or

28-50    department under this section is a part of the cost of the turnpike

28-51    project for which the obligation or expense was incurred.  Money

28-52    from the state highway fund spent under this section must be repaid

28-53    from tolls or other revenue of the turnpike project or system on

28-54    which the money from the state highway fund was expended.

28-55          (d)  The commission or department may use federal money for

28-56    any purpose described by this chapter.

28-57          Sec. 366.302.  AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE

28-58    TURNPIKE PROJECTS.  (a)  An authority may enter into an agreement

28-59    with a public or private entity, including a toll road corporation,

28-60    the United States, a state of the United States, the United Mexican

28-61    States, a state of the United Mexican States, a local governmental

28-62    entity, or another political subdivision, to permit the entity,

28-63    jointly with the authority, to study the feasibility of a turnpike

28-64    project or system or to acquire, design, finance, construct,

28-65    maintain, repair, operate, extend, or expand a turnpike project or

28-66    system.

28-67          (b)  An authority has broad discretion to negotiate

28-68    provisions in a development agreement with a private entity.  The

28-69    provisions may include provisions relating to:

 29-1                (1)  the design, financing, construction, maintenance,

 29-2    and operation of a turnpike project or system in accordance with

 29-3    standards adopted by the authority; and

 29-4                (2)  professional and consulting services to be

 29-5    rendered under standards adopted by the authority in connection

 29-6    with a turnpike project or system.

 29-7          (c)  An authority may not incur a financial obligation on

 29-8    behalf of, or otherwise guarantee the obligations of, a private

 29-9    entity that constructs, maintains, or operates a turnpike project

29-10    or system.

29-11          (d)  An authority or a county in an authority is not liable

29-12    for any financial or other obligation of a turnpike project solely

29-13    because a private entity constructs, finances, or operates any part

29-14    of a turnpike project or system.

29-15          (e)  An authority may authorize the investment of public and

29-16    private money, including debt and equity participation, to finance

29-17    a function described by this section.

29-18          Sec. 366.303.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL

29-19    GOVERNMENTAL ENTITIES.  (a)  A local governmental entity other than

29-20    a nonprofit corporation may, consistent with the Texas

29-21    Constitution, issue bonds or enter into and make payments under

29-22    agreements with an authority to acquire, construct, maintain, or

29-23    operate a turnpike project or system.  The entity may levy and

29-24    collect taxes to pay the interest on the bonds and to provide a

29-25    sinking fund for the redemption of the bonds.

29-26          (b)  In addition to the powers provided by Subsection (a), a

29-27    local governmental entity may, within any applicable constitutional

29-28    limitations, agree with an authority to issue bonds or enter into

29-29    and make payments under an agreement to acquire, construct,

29-30    maintain, or operate any portion of a turnpike project or system of

29-31    that authority.

29-32          (c)  To make payments under an agreement under Subsection

29-33    (b), to pay the interest on bonds issued under Subsection (b), or

29-34    to provide a sinking fund for the bonds or the contract, a local

29-35    governmental entity may:

29-36                (1)  pledge revenue from any available source,

29-37    including annual appropriations;

29-38                (2)  levy and collect taxes; or

29-39                (3)  provide for a combination of Subdivisions (1) and

29-40    (2).

29-41          (d)  The term of an agreement under this section may not

29-42    exceed 40 years.

29-43          (e)  Any election required to permit action under this

29-44    subchapter must be held in conformity with Chapter 1, Title 22,

29-45    Revised Statutes, or other law applicable to the local governmental

29-46    entity.

29-47          Sec. 366.304.  ADDITIONAL AGREEMENTS OF AUTHORITY.  An

29-48    authority may enter into any agreement necessary or convenient to

29-49    achieve the purposes of this subchapter.

29-50          SECTION 25.  Subchapter F, Chapter 411, Government Code, is

29-51    amended by adding Section 411.132 to read as follows:

29-52          Sec. 411.132.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

29-53    REGIONAL TOLLWAY AUTHORITIES.  (a)  A regional tollway authority

29-54    governed by Chapter 366, Transportation Code, is entitled to obtain

29-55    from the department criminal history record information maintained

29-56    by the department that pertains to a person who is:

29-57                (1)  employed by the regional tollway authority; or

29-58                (2)  an applicant for employment with the regional

29-59    tollway authority.

29-60          (b)  Criminal history record information obtained under

29-61    Subsection (a) may not be released or disclosed to any person

29-62    except in a criminal proceeding, in a hearing conducted by the

29-63    regional tollway authority, on court order, or with the consent of

29-64    the person who is the subject of the criminal history record

29-65    information.

29-66          SECTION 26.  (a)  Notwithstanding Section 366.031,

29-67    Transportation Code, as added by this Act, the North Texas Tollway

29-68    Authority is established as a regional tollway authority under

29-69    Chapter 366, Transportation Code, as added by this Act.

 30-1          (b)  The North Texas Tollway Authority consists of all

 30-2    territory in Collin, Dallas, Denton, and Tarrant counties.  The

 30-3    operations of the authority may extend to other counties as

 30-4    permitted under Section 366.161, Transportation Code, as added by

 30-5    this Act, and the jurisdiction of the authority may be expanded to

 30-6    include other counties under Section 366.031, Transportation Code,

 30-7    as added by this Act.  As of the effective date of this Act, Cooke,

 30-8    Ellis, Fannin, Grayson, Hunt, Johnson, Kaufman, Parker, Rockwall,

 30-9    and Wise counties are the only counties that meet the geographical

30-10    qualifications for future inclusion in the North Texas Tollway

30-11    Authority.

30-12          (c)  Notwithstanding Section 366.251, Transportation Code, as

30-13    added by this Act, the initial board of directors of the North

30-14    Texas Tollway Authority is composed  of nine directors as follows:

30-15                (1)  three directors appointed by the governor;

30-16                (2)  one director appointed by the commissioners court

30-17    of each county in the authority; and

30-18                (3)  the county judges of two of the counties of the

30-19    authority, as agreed by a majority of the county judges of the

30-20    authority.

30-21          (d)  The terms of the initial directors of the North Texas

30-22    Tollway Authority begin on September 1, 1997.  The county judges

30-23    serving as initial directors shall each serve a one-year term.  At

30-24    the expiration of that term, the seats held by the county judges

30-25    are not refilled, and the number of directors composing the board

30-26    is reduced to seven but may be increased if additional counties

30-27    join the authority.

30-28          (e)  One of the directors of the North Texas Tollway

30-29    Authority appointed to the initial board by the governor serves a

30-30    one-year term.  Each successor to that director shall be appointed

30-31    by the governor for a two-year term.

30-32          (f)  The two directors appointed to the initial board of the

30-33    North Texas Tollway Authority by the commissioners courts of the

30-34    counties whose county judges serve as initial directors each serve

30-35    a one-year term.  Each successor to those directors shall be

30-36    appointed for a two-year term.  The remaining initial directors

30-37    serve two-year terms.

30-38          SECTION 27.  Sections 361.003, 361.038, 361.039, 361.040,

30-39    361.041, 361.044, 361.045, 361.047, 361.048, 361.139, 361.190, and

30-40    361.284, and Subsection (e), Section 361.331, Transportation Code,

30-41    are repealed.

30-42          SECTION 28.  (a)  The Texas Turnpike Authority is abolished

30-43    and the Texas Turnpike Authority division of the Texas Department

30-44    of Transportation is created on the effective date of this Act.

30-45    Except as provided by Subsections (b) and (c) of this section, all

30-46    assets, rights, and obligations of the Texas Turnpike Authority are

30-47    transferred to the division.

30-48          (b)  The North Texas Tollway Authority shall succeed to all

30-49    assets, rights, and other property of the Texas Turnpike Authority

30-50    located in Collin, Dallas, Denton, or Tarrant County, including all

30-51    assets and rights that relate to the Dallas North Tollway, the

30-52    Addison Airport Toll Tunnel, the President George Bush Turnpike,

30-53    the Mountain Creek Lake Bridge, all existing and proposed

30-54    extensions to those projects, the Texas Turnpike Authority

30-55    administration building, and all other facilities, improvements,

30-56    leaseholds, funds, accounts, and investments related to a project

30-57    listed in this subsection.

30-58          (c)  The North Texas Tollway Authority shall assume and

30-59    become liable for all duties and obligations of the Texas Turnpike

30-60    Authority related to the assets, rights, and properties transferred

30-61    under Subsection (b) of this section, including contracts and bonds

30-62    secured by the revenues of the assets.  The North Texas Tollway

30-63    Authority is obligated to comply with all the assumed obligations

30-64    to the same extent as the Texas Turnpike Authority.

30-65          (d)  An employee of the Texas Turnpike Authority may elect to

30-66    become an employee of either the Texas Turnpike Authority division

30-67    of the Texas Department of Transportation or the North Texas

30-68    Tollway Authority on the effective date of this Act, subject to the

30-69    employment openings and requirements of those entities.

 31-1          (e)  A rule or regulation adopted by the Texas Turnpike

 31-2    Authority relating to the operation of a turnpike in Collin,

 31-3    Dallas, Denton, or Tarrant County before the effective date of this

 31-4    Act that is not inconsistent with this Act remains in effect as a

 31-5    rule or regulation of the North Texas Tollway Authority until

 31-6    superseded by action of that entity.

 31-7          SECTION 29.  As additional consideration for the transfer of

 31-8    the properties described in Subsection (b) of Section 28 of this

 31-9    Act, the North Texas Tollway Authority shall pay to the Texas

31-10    Department of Transportation an amount to be agreed on by the

31-11    authority and the department not later than October 1, 1997.  In

31-12    determining the amount, the authority and the department shall

31-13    ensure that following the payment, the authority is in compliance

31-14    with all bond resolutions, bond indentures, credit agreements, and

31-15    all other agreements assumed by the authority and that reserves

31-16    held by the authority as required under or in connection with the

31-17    resolutions, indentures, credit agreements, and other agreements

31-18    shall be maintained at a level consistent with the Texas Turnpike

31-19    Authority's historical practices.

31-20          SECTION 30.  The North Texas Tollway Authority is a successor

31-21    agency to the Texas Turnpike Authority for all purposes, including

31-22    for the purpose of Section 52-b, Article III, Texas Constitution,

31-23    concerning all assets, rights, other property, duties, and

31-24    obligations transferred to the authority under Subsection (b) of

31-25    Section 28 of this Act.  The Texas Department of Transportation is

31-26    a successor to the Texas Turnpike Authority for all purposes

31-27    concerning assets, rights, other property, duties, and obligations

31-28    not transferred to the North Texas Tollway Authority under

31-29    Subsection (b) of Section 28 of this Act.  Any existing agreement

31-30    by and between the Texas Turnpike Authority and the state, the

31-31    Texas Transportation Commission, the Texas Department of

31-32    Transportation, the Federal Highway Administration, the United

31-33    States Department of Transportation, any other federal or state

31-34    governmental entity, or any local governmental entity that pertains

31-35    to an asset, right, or obligation transferred to the North Texas

31-36    Tollway Authority under this Act is binding on, benefits, and is

31-37    fully enforceable by and against the North Texas Tollway Authority

31-38    as successor to the Texas Turnpike Authority.

31-39          SECTION 31.  In addition to the substantive changes made by

31-40    this Act, this Act conforms Chapter 361, Transportation Code, to

31-41    the changes made by Sections 1 and 2, Chapter 148, Acts of the 74th

31-42    Legislature, 1995.  To the extent of any conflict between this Act

31-43    and another Act of the 75th Legislature relating to nonsubstantive

31-44    changes in enacted codes, this Act prevails.

31-45          SECTION 32.  This Act takes effect September 1, 1997.

31-46          SECTION 33.  The importance of this legislation and the

31-47    crowded condition of the calendars in both houses create an

31-48    emergency and an imperative public necessity that the

31-49    constitutional rule requiring bills to be read on three several

31-50    days in each house be suspended, and this rule is hereby suspended.

31-51                                 * * * * *