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 * * * * *