By:  Armbrister, Sibley                                S.B. No. 370

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the continuation and functions of the Texas Department

 1-2     of Transportation, the abolition of the Texas Turnpike Authority,

 1-3     and the creation of regional tollway authorities; authorizing the

 1-4     issuance of bonds and the imposition of taxes; granting the power

 1-5     of eminent domain; and providing civil penalties.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7             ARTICLE 1.  TEXAS TRANSPORTATION COMMISSION; TEXAS

 1-8                        DEPARTMENT OF TRANSPORTATION

 1-9           SECTION 1.01.  Section 201.204, Transportation Code, is

1-10     amended to read as follows:

1-11           Sec. 201.204.  SUNSET PROVISION.  The Texas Department of

1-12     Transportation is subject to Chapter 325, Government Code (Texas

1-13     Sunset Act).  Unless continued in existence as provided by that

1-14     chapter, the department is abolished September 1, 2009 [1997].

1-15           SECTION 1.02.  Subsection (d), Section 201.051,

1-16     Transportation Code, is amended to read as follows:

1-17           (d)  Except as provided by Subsection (e), a person is not

1-18     eligible for appointment as a member of the commission if the

1-19     person or the person's spouse:

1-20                 (1)  is employed by or participates in the management

1-21     of a business entity or other organization that is regulated by or

1-22     receives funds from the department;

1-23                 (2)  directly or indirectly owns or controls more than

 2-1     10 percent interest in a business entity or other organization that

 2-2     is regulated by or receives funds from the department; [or]

 2-3                 (3)  uses or receives a substantial amount of tangible

 2-4     goods, services, or funds from the department, other than

 2-5     compensation or reimbursement authorized by law for commission

 2-6     membership, attendance, or expenses; or

 2-7                 (4)  is registered, certified, or licensed by the

 2-8     department.

 2-9           SECTION 1.03.  Subsection (c), Section 201.057,

2-10     Transportation Code, is amended to read as follows:

2-11           (c)  If the director knows that a potential ground for

2-12     removal exists, the director shall notify the commissioner of

2-13     transportation of the ground, and the commissioner shall notify the

2-14     governor and the attorney general that a potential ground for

2-15     removal exists.  If the potential ground for removal relates to the

2-16     commissioner of transportation, the director shall notify another

2-17     member of the commission, who shall notify the governor and the

2-18     attorney general that a potential ground for removal exists.

2-19           SECTION 1.04.  Subchapter B, Chapter 201, Transportation

2-20     Code, is amended by adding Section 201.059 to read as follows:

2-21           Sec. 201.059.  TRAINING ON DEPARTMENT AND CERTAIN LAWS

2-22     RELATING TO DEPARTMENT.  (a)  To be eligible to take office as a

2-23     member of the commission, a person appointed to the commission must

2-24     complete at least one course of a training program that complies

2-25     with this section.

 3-1           (b)  The training program must provide information to the

 3-2     person regarding:

 3-3                 (1)  this subchapter;

 3-4                 (2)  the programs operated by the department;

 3-5                 (3)  the role and functions of the department;

 3-6                 (4)  the rules of the department with an emphasis on

 3-7     the rules that relate to disciplinary and investigatory authority;

 3-8                 (5)  the current budget for the department;

 3-9                 (6)  the results of the most recent formal audit of the

3-10     department;

3-11                 (7)  the requirements of the:

3-12                       (A)  open meetings law, Chapter 551, Government

3-13     Code;

3-14                       (B)  open records law, Chapter 552, Government

3-15     Code; and

3-16                       (C)  administrative procedure law, Chapter 2001,

3-17     Government Code;

3-18                 (8)  the requirements of the conflict of interest laws

3-19     and other laws relating to public officials; and

3-20                 (9)  any applicable ethics policies adopted by the

3-21     commission or the Texas Ethics Commission.

3-22           (c)  A person appointed to the commission is entitled to

3-23     reimbursement for travel expenses incurred in attending the

3-24     training program, as provided by the General Appropriations Act and

3-25     as if the person were a member of the commission.

 4-1           SECTION 1.05.  Section 201.102, Transportation Code, is

 4-2     amended to read as follows:

 4-3           Sec. 201.102.  SEPARATION [DEFINITION] OF RESPONSIBILITIES.

 4-4     The commission shall develop and implement policies that clearly

 4-5     separate the policy-making [define the respective] responsibilities

 4-6     of the commission and the management responsibilities of the

 4-7     director and staff of the department.

 4-8           SECTION 1.06.  Subsection (b), Section 201.107,

 4-9     Transportation Code, is amended to read as follows:

4-10           (b)  The commission shall file annually with the governor and

4-11     the presiding officer of each house of the legislature a complete

4-12     and detailed written report accounting for all funds received and

4-13     disbursed by the department during the preceding fiscal year.  The

4-14     report must comply with each reporting requirement applicable to

4-15     financial reporting [be in the form and filed in the time] provided

4-16     by the General Appropriations Act.

4-17           SECTION 1.07.  Section 201.203, Transportation Code, is

4-18     amended to read as follows:

4-19           Sec. 201.203.  DEPARTMENT OFFICE[; RECORDS].  The department

4-20     shall have its statewide headquarters office in Austin.  [The

4-21     department shall keep all of its records in that office.]

4-22           SECTION 1.08.  Subchapter D, Chapter 201, Transportation

4-23     Code, is amended by adding Section 201.206 to read as follows:

4-24           Sec. 201.206.  DONATIONS AND CONTRIBUTIONS.  For the purpose

4-25     of carrying out its functions and duties, the department may

 5-1     accept, from any source, a donation or contribution in any form,

 5-2     including realty, personalty, money, materials, or services.

 5-3           SECTION 1.09.  Subsections (a) and (b), Section 201.402,

 5-4     Transportation Code, are amended to read as follows:

 5-5           (a)  The director or the director's designee shall prepare

 5-6     and maintain a written policy statement to ensure implementation of

 5-7     a program of equal employment opportunity under which all personnel

 5-8     transactions are made without regard to race, color, disability,

 5-9     sex, religion, age, or national origin.  The policy statement must

5-10     include:

5-11                 (1)  personnel policies, including policies relating to

5-12     recruitment, evaluation, selection, appointment, training, and

5-13     promotion of personnel that comply with Chapter 21, Labor Code;

5-14                 (2)  a comprehensive analysis of the department work

5-15     force that meets federal and state guidelines;

5-16                 (3)  procedures by which a determination can be made of

5-17     significant underuse in the department work force of all persons

5-18     for whom federal or state guidelines encourage a more equitable

5-19     balance; and

5-20                 (4)  reasonable methods to appropriately address the

5-21     areas of significant underuse.

5-22           (b)  A policy statement prepared under Subsection (a) must

5-23     cover an annual period, be updated at least annually, be reviewed

5-24     by the Texas Commission on Human Rights for compliance with

5-25     Subsection (a)(1), and be filed with the governor's office.

 6-1           SECTION 1.10.  Subsections (a) and (b), Section 201.404,

 6-2     Transportation Code, are amended to read as follows:

 6-3           (a)  The director or the director's designee shall develop an

 6-4     intra-agency career ladder program that addresses opportunities for

 6-5     mobility and advancement for employees in the department [covering

 6-6     all full-time classified and exempt positions].  The program shall

 6-7     require intra-agency posting of all [nonentry] positions

 6-8     concurrently with any public posting.

 6-9           (b)  The director or the director's designee shall develop a

6-10     system of annual performance evaluations that are based on

6-11     documented employee performance.  All merit pay for department

6-12     employees must be based on the system established under this

6-13     subsection.

6-14           SECTION 1.11.  Subchapter F, Chapter 201, Transportation

6-15     Code, is amended by adding Section 201.406 to read as follows:

6-16           Sec. 201.406.  RELOCATION ASSISTANCE.  (a)  In addition to

6-17     authority granted by other law, the department may reimburse

6-18     transferred employees for expenses or costs related to selling

6-19     existing housing and purchasing and financing comparable

6-20     replacement housing if the director determines that the transfer

6-21     will enhance the department's ability to accomplish its goals and

6-22     missions.

6-23           (b)  For purposes of this section, the following expenses or

6-24     costs related to the selling of existing housing and the leasing,

6-25     purchasing, and financing of comparable replacement housing are

 7-1     reimbursable:

 7-2                 (1)  any commissions and fees due to a broker or real

 7-3     estate agent;

 7-4                 (2)  costs incurred as a purchaser to obtain a home

 7-5     loan, including loan application fees, credit report fees, and

 7-6     mortgage points;

 7-7                 (3)  origination fees, title insurance, recording fees,

 7-8     and all other closing costs required to be paid by the employee;

 7-9                 (4)  fees or charges, other than refundable deposits,

7-10     necessary to establish telephone, gas, and electric service; and

7-11                 (5)  travel expenses incurred while looking for a new

7-12     residence, reimbursed at the standard mileage rate, for travel to

7-13     and from the new designated headquarters.

7-14           (c)  Under this section, the department may not:

7-15                 (1)  provide reimbursement for more than 25 employees

7-16     per fiscal year;

7-17                 (2)  pay a sum of more than $15,000 to any employee;

7-18                 (3)  purchase or pay any part of the purchase price of

7-19     any employee's home;

7-20                 (4)  provide reimbursement for the purchase or

7-21     financing of a house if the employee did not own and occupy

7-22     existing housing at the time of transfer; or

7-23                 (5)  provide reimbursement when the distance between

7-24     the two designated headquarters of a transferred employee is less

7-25     than 25 miles.

 8-1           (d)  The department may pay the reasonable, necessary, and

 8-2     resulting costs of moving the household goods and effects of a

 8-3     transferred employee if:

 8-4                 (1)  the director determines that the transfer will

 8-5     enhance the department's ability to accomplish its goals and

 8-6     missions; and

 8-7                 (2)  the distance between the two designated

 8-8     headquarters of a transferred employee is at least 25 miles.

 8-9           SECTION 1.12.  Subchapter I, Chapter 201, Transportation

8-10     Code, is amended by adding Section 201.705 to read as follows:

8-11           Sec. 201.705.  PILOT PROJECT ON VEHICLE MAINTENANCE

8-12     OUTSOURCING.  (a)  The department shall conduct a two-year pilot

8-13     project to determine whether contracting with a private entity for

8-14     maintenance and repair services of all department vehicles would be

8-15     cost effective.

8-16           (b)  The study must be implemented in at least three of the

8-17     department's districts.  The districts in which the study is

8-18     implemented must vary in geography and population.

8-19           (c)  From any cost savings resulting from the pilot project

8-20     and from funds appropriated, the department shall assist counties

8-21     with materials to repair or maintain county roads.  The department

8-22     shall:

8-23                 (1)  ensure that the total value of assistance is at

8-24     least $20 million a year;

8-25                 (2)  make maximum usage of surplus materials on hand;

 9-1                 (3)  develop rules and procedures in order to implement

 9-2     this section and to provide for the distribution of these funds,

 9-3     with preference given to counties with an above average number of

 9-4     overweight trucks receiving weight tolerance permits, based on the

 9-5     previous year's permit totals; and

 9-6                 (4)  undertake cooperative and joint procurement of

 9-7     road materials with the counties under General Services Commission

 9-8     procedures.

 9-9           (d)  Not later than January 1, 2001, the department shall

9-10     submit a report to the legislature on the results of the pilot

9-11     program and any recommendations on the continuation or expansion of

9-12     the pilot program.

9-13           (e)  This section expires January 1, 2001.

9-14           SECTION 1.13.  Section 201.801, Transportation Code, is

9-15     amended by amending Subsection (c) and adding Subsection (e) to

9-16     read as follows:

9-17           (c)  The department shall:

9-18                 (1)  keep an information file about each written

9-19     complaint filed with the department that the department has the

9-20     authority to resolve; and

9-21                 (2)  provide the person who filed the complaint, and

9-22     each person or entity that is the subject of the complaint,

9-23     information about the department's policies and procedures relating

9-24     to complaint investigation and resolution.

9-25           (e)  With regard to each complaint filed with the department,

 10-1    the department shall keep the following information:

 10-2                (1)  the date the complaint is filed;

 10-3                (2)  the name of the person filing the complaint;

 10-4                (3)  the subject matter of the complaint;

 10-5                (4)  a record of each person contacted in relation to

 10-6    the complaint;

 10-7                (5)  a summary of the results of the review or

 10-8    investigation of the complaint; and

 10-9                (6)  if the department takes no action on the

10-10    complaint, an explanation of the reasons that no action was taken.

10-11          SECTION 1.14.  Section 201.802, Transportation Code, is

10-12    amended by amending Subsection (b) and adding Subsection (c) to

10-13    read as follows:

10-14          (b)  The director [department] shall prepare and maintain a

10-15    written plan that describes the manner in which a person who does

10-16    not speak English or who has a physical, mental, or developmental

10-17    disability is provided reasonable access to the department's

10-18    programs.

10-19          (c)  The department shall comply with each applicable law of

10-20    the United States or this state that relates to program or facility

10-21    accessibility.

10-22          SECTION 1.15.  Subchapter K, Chapter 201, Transportation

10-23    Code, is amended by adding Section 201.905 to read as follows:

10-24          Sec. 201.905.  MULTIMODAL ROAD USE.   (a)  The department

10-25    shall conduct a comprehensive analysis of the multimodal use of

 11-1    roads and highways in the state highway system.  The analysis shall

 11-2    include the collection of data on users' concerns about road

 11-3    conditions and actual and potential use patterns of roads or

 11-4    highways.

 11-5          (b)  After the analysis required by Subsection (a) is

 11-6    completed, the department shall initiate and coordinate a campaign

 11-7    to help increase public awareness of traffic safety issues.

 11-8          (c)  The department shall initiate a program of continuing

 11-9    community involvement sessions to help other state agencies, local

11-10    decision-makers, interest groups, and the general public improve

11-11    the state's comprehensive transportation system to include all

11-12    modes of transportation.

11-13          SECTION 1.16.  Chapter 201, Transportation Code, is amended

11-14    by adding Subchapter L to read as follows:

11-15              SUBCHAPTER L.  ELECTRONIC ISSUANCE OF LICENSES

11-16          Sec. 201.931.  DEFINITIONS.  In this section:

11-17                (1)  "Digital signature" means an electronic identifier

11-18    intended by the person using it to have the same force and effect

11-19    as the use of a manual signature.

11-20                (2)  "License" includes:

11-21                      (A)  a permit issued by the department that

11-22    authorizes the operation of a vehicle and its load or a combination

11-23    of vehicles and load exceeding size or weight limitations;

11-24                      (B)  motor carrier registration issued under

11-25    Article 6675c, Revised Statutes;

 12-1                      (C)  a vehicle storage facility license issued

 12-2    under Article 6687-9a, Revised Statutes;

 12-3                      (D)  a license or permit for outdoor advertising

 12-4    issued under Chapter 391 or 394;

 12-5                      (E)  a salvage motor vehicle dealer and agent

 12-6    license issued under Article 6687-1a, Revised Statutes;

 12-7                      (F)  specially designated or specialized license

 12-8    plates issued under Subchapters E and F, Chapter 502; and

 12-9                      (G)  an apportioned registration issued according

12-10    to the International Registration Plan under Section 502.054.

12-11          Sec. 201.932.  APPLICATION FOR AND ISSUANCE OF LICENSE.

12-12    (a)  The commission  may by rule provide for the filing of a

12-13    license application and the issuance of a license by electronic

12-14    means.

12-15          (b)  The commission may limit applicant eligibility under

12-16    Subsection (a) if the rules include reasonable eligibility

12-17    criteria.

12-18          Sec. 201.933.  DIGITAL SIGNATURE.  (a)  A license application

12-19    received by the department is considered signed if a digital

12-20    signature is transmitted with the application and intended by the

12-21    applicant to authenticate the license in accordance with Subsection

12-22    (b).

12-23          (b)  The department may only accept a digital signature used

12-24    to authenticate a license application under procedures that:

12-25                (1)  comply with any applicable rules of another state

 13-1    agency having jurisdiction over department use or acceptance of a

 13-2    digital signature; and

 13-3                (2)  provide for consideration of factors that may

 13-4    affect a digital signature's reliability, including whether a

 13-5    digital signature is:

 13-6                      (A)  unique to the person using it;

 13-7                      (B)  capable of independent verification;

 13-8                      (C)  under the sole control of the person using

 13-9    it; and

13-10                      (D)  transmitted in a manner that will make it

13-11    infeasible to change the data in the communication or digital

13-12    signature without invalidating the digital signature.

13-13          Sec. 201.934.  PAYMENT OF FEES.  The commission may adopt

13-14    rules regarding the method of payment of a fee for a license issued

13-15    under this subchapter.  The rules may authorize the use of

13-16    electronic funds transfer or a valid credit card issued by a

13-17    financial institution chartered by a state or the federal

13-18    government or by a nationally recognized credit organization

13-19    approved by the department.  The rules may require the payment of a

13-20    discount or service charge for a credit card payment in addition to

13-21    the fee.

13-22          SECTION 1.17.  Subchapter B, Chapter 222, Transportation

13-23    Code, is amended by adding Section 222.034 to read as follows:

13-24          Sec. 222.034.  DISTRIBUTION OF FEDERAL FUNDS.  (a)  Federal

13-25    aid for transportation purposes that is administered by the

 14-1    commission shall be distributed to the various parts of the state

 14-2    for a funding cycle through the selection of highway projects in

 14-3    the state in a manner that is consistent with federal formulas that

 14-4    determine the amount of federal aid for transportation purposes

 14-5    received by the state.  A distribution under this subsection does

 14-6    not include deductions made for the state infrastructure bank or

 14-7    other federal funds reallocated by the federal government.

 14-8          (b)  The commission may vary from the distribution procedure

 14-9    provided by Subsection (a) if it issues a ruling or minute order

14-10    identifying the variance and providing a particular justification

14-11    for the variance.

14-12          SECTION 1.18.  Subchapter C, Chapter 222, Transportation

14-13    Code, is amended by adding Section 222.053 to read as follows:

14-14          Sec. 222.053.  RELIEF FROM LOCAL MATCHING FUNDS REQUIREMENT.

14-15    (a)  In this section, "economically disadvantaged county" means a

14-16    county that has, in comparison to other counties in the state:

14-17                (1)  below average per capita taxable property value;

14-18                (2)  below average per capita income; and

14-19                (3)  above average unemployment.

14-20          (b)  Except as provided by Subsection (c), the commission may

14-21    require, request, or accept from a political subdivision matching

14-22    or other local funds, rights-of-way, utility adjustments,

14-23    additional participation, planning, documents, or any other local

14-24    incentives to make the most efficient use of its highway funding.

14-25          (c)  In evaluating a proposal to construct, maintain, or

 15-1    extend a highway or for another type of highway project in a

 15-2    political subdivision that consists of all or a portion of an

 15-3    economically disadvantaged county, the commission:

 15-4                (1)  may not consider the absence or value of local

 15-5    incentives provided under Subsection (b) or the value of a benefit

 15-6    received by the state in an agreement under Section 791.031,

 15-7    Government Code, beyond the minimum required local matching funds;

 15-8    and

 15-9                (2)  shall adjust the minimum local matching funds

15-10    requirement after evaluating the political subdivision's effort and

15-11    ability to meet the requirement.

15-12          (d)  In making an adjustment under Subsection (c)(2), the

15-13    commission may use its in-kind resources and any other available

15-14    resources to help satisfy a federal requirement.

15-15          (e)  The commission shall report annually to the governor,

15-16    the lieutenant governor, and the speaker of the house of

15-17    representatives on the use of matching funds and local incentives

15-18    and the ability of the commission to ensure that political

15-19    subdivisions located in economically disadvantaged counties have

15-20    equal ability to compete for highway funding with political

15-21    subdivisions in counties that are not economically disadvantaged.

15-22          SECTION 1.19.  Subsection (c), Section 202.052,

15-23    Transportation Code, is amended to read as follows:

15-24          (c)  The department shall charge not less than fair market

15-25    value for the highway asset, payable in cash, services, tangible or

 16-1    intangible property, or any combination of cash, services, or

 16-2    property.

 16-3          SECTION 1.20.  Chapter 202, Transportation Code, is amended

 16-4    by adding Subchapter E to read as follows:

 16-5               SUBCHAPTER E.  TELECOMMUNICATIONS FACILITIES

 16-6          Sec. 202.091.  DEFINITION.  In this subchapter,

 16-7    "telecommunications" means any transmission, emission, or reception

 16-8    of signs, signals, writings, images, or sounds of intelligence of

 16-9    any nature by wire, radio, optical, or other electromagnetic

16-10    systems.

16-11          Sec. 202.092.  USE OF DEPARTMENT FACILITIES.  Notwithstanding

16-12    any other law, a telecommunications provider may not place or

16-13    maintain its facilities or otherwise use improvements, including

16-14    structures, medians, conduits, or telecommunications equipment or

16-15    lines, constructed or installed by the state as components of the

16-16    state highway system except by a lease under Section 202.052 or an

16-17    agreement under Section 202.093.

16-18          Sec. 202.093.  AGREEMENT.  (a)  Notwithstanding any other

16-19    law, the department may enter into an agreement with a

16-20    telecommunications provider allowing the provider, for the

16-21    provider's commercial purposes, to:

16-22                (1)  place the provider's telecommunications facilities

16-23    within the median of a divided state highway; or

16-24                (2)  place lines within or otherwise use

16-25    telecommunications facilities owned or installed by the state in or

 17-1    on the improved portion of a state highway, including a median,

 17-2    structures, equipment, conduits, or any other component of the

 17-3    highway facilities constructed or owned by the department.

 17-4          (b)  An agreement entered into under Subsection (a) may

 17-5    provide for compensation between the department and the

 17-6    telecommunications provider in the form of cash or the shared use

 17-7    of facilities.

 17-8          Sec. 202.094.  COMPETITIVE SEALED PROPOSAL.  (a)  Before

 17-9    entering into an agreement with a telecommunications provider under

17-10    this subchapter, the department shall follow a procedure using

17-11    competitive sealed proposals.

17-12          (b)  The department shall solicit proposals by a request for

17-13    proposals and shall publish notice of the request in at least two

17-14    newspapers of general circulation and in the Texas Register.

17-15          (c)  The proposals shall be opened so as to avoid disclosure

17-16    of contents to competing offerors during the process of

17-17    negotiation.  After a contract is awarded, all proposals that have

17-18    been submitted shall be open for public inspection subject to

17-19    Subchapter C, Chapter 552, Government Code.

17-20          (d)  The department may discuss an acceptable or potentially

17-21    acceptable proposal with an offeror to assess the offeror's ability

17-22    to meet the solicitation requirements.  After the submission of a

17-23    proposal but before making an award, the department may permit the

17-24    offeror to revise the proposal in order to obtain the best final

17-25    offer.  The department may not disclose any information derived

 18-1    from proposals submitted from competing offerors in conducting

 18-2    discussions under this section.  The department shall provide each

 18-3    offeror with an equal opportunity for discussion and revision of

 18-4    proposals.

 18-5          (e)  The department shall make a written award of a contract

 18-6    to the offeror whose proposal is the most advantageous to the

 18-7    state, considering price and the evaluation factors in the request

 18-8    for proposals, except that if the department finds that none of the

 18-9    offers is acceptable, it shall refuse all offers.  The contract

18-10    file must state in writing the basis on which the award is made.

18-11          Sec. 202.095.  APPLICABILITY.  (a)  Subtitle D, Title 10,

18-12    Government Code, does not apply to a procurement under this

18-13    subchapter.

18-14          (b)  This subchapter does not limit a telecommunications

18-15    provider from placing lines or facilities in the unimproved portion

18-16    of state highway right-of-way to the extent authorized by

18-17    applicable law.

18-18          Sec. 202.096.  REVENUE.  The department shall deposit in the

18-19    state highway fund any revenue received under this subchapter.

18-20          Sec. 202.097.  RULEMAKING.  The commission shall adopt rules

18-21    for the implementation of this subchapter.

18-22          SECTION 1.21.  Chapter 222, Transportation Code, is amended

18-23    by adding Subchapter D to read as follows:

18-24                 SUBCHAPTER D.  STATE INFRASTRUCTURE BANK

18-25          Sec. 222.071.  DEFINITIONS.  In this subchapter:

 19-1                (1)  "Bank" means the state infrastructure bank

 19-2    account.

 19-3                (2)  "Construction" has the meaning assigned by 23

 19-4    U.S.C. Section 101.

 19-5                (3)  "Federal act" means Section 350 of the National

 19-6    Highway System Designation Act of 1995 (Pub. L. No. 104-59).

 19-7                (4)  "Federal-aid highway" has the meaning assigned by

 19-8    23 U.S.C. Section 101.

 19-9                (5)  "Qualified project" includes:

19-10                      (A)  the construction of a federal-aid highway;

19-11                      (B)  a transit project under 49 U.S.C. Sections

19-12    5307, 5309, and 5311; or

19-13                      (C)  for the expenditure of secondary funds, a

19-14    project eligible for assistance under Title 23 or Title 49, United

19-15    States Code.

19-16                (6)  "Secondary funds" includes:

19-17                      (A)  the repayment of a loan or other assistance

19-18    that is provided with money deposited to the credit of the bank;

19-19    and

19-20                      (B)  investment income generated by secondary

19-21    funds deposited to the credit of the bank.

19-22          Sec. 222.072.  STATE INFRASTRUCTURE BANK.  (a)  The state

19-23    infrastructure bank is an account in the state highway fund.  The

19-24    bank is administered by the commission.

19-25          (b)  Federal funds received by the state under the federal

 20-1    act, matching state funds in an amount required by that act,

 20-2    proceeds from bonds issued under Section 222.075, and secondary

 20-3    funds may be deposited into the bank and used only for the purposes

 20-4    described in this subchapter.

 20-5          Sec. 222.073.  PURPOSES OF INFRASTRUCTURE BANK.  The

 20-6    commission shall use money deposited in the bank to:

 20-7                (1)  encourage public and private investment in

 20-8    transportation facilities, including facilities that contribute to

 20-9    the multimodal and intermodal transportation capabilities of the

20-10    state; and

20-11                (2)  develop financing techniques designed to:

20-12                      (A)  expand the availability of funding for

20-13    transportation projects and to reduce direct state costs;

20-14                      (B)  maximize private and local participation in

20-15    financing projects; and

20-16                      (C)  improve the efficiency of the state

20-17    transportation system.

20-18          Sec. 222.074.  FORM OF ASSISTANCE.  (a)  To further a purpose

20-19    described by Section 222.073, the commission may use money

20-20    deposited to the credit of the bank to provide financial assistance

20-21    to a public or private entity for a qualified project to:

20-22                (1)  extend credit by direct loan;

20-23                (2)  provide credit enhancements;

20-24                (3)  serve as a capital reserve for bond or debt

20-25    instrument financing;

 21-1                (4)  subsidize interest rates;

 21-2                (5)  insure the issuance of a letter of credit or

 21-3    credit instrument;

 21-4                (6)  finance a purchase or lease agreement in

 21-5    connection with a transit project;

 21-6                (7)  provide security for bonds and other debt

 21-7    instruments; or

 21-8                (8)  provide methods of leveraging money that have been

 21-9    approved by the United States secretary of transportation and

21-10    relate to the project for which the assistance is provided.

21-11          (b)  Financial assistance to a private entity under

21-12    Subsection (a) shall be limited to a qualified project that:

21-13                (1)  provides transportation services or facilities for

21-14    use by the general public; or

21-15                (2)  is constructed or operated in cooperation with a

21-16    state agency or political subdivision in accordance with an

21-17    agreement between that agency or political subdivision and the

21-18    private entity.

21-19          Sec. 222.075.  REVENUE BONDS.  (a)  The commission may issue

21-20    revenue bonds for the purpose of providing money for the bank.

21-21          (b)  Except as provided by Subsection (c), the commission may

21-22    issue revenue bonds or revenue refunding bonds under this section

21-23    without complying with any other law applicable to the issuance of

21-24    bonds.

21-25          (c)  Notwithstanding any other provision of this section, the

 22-1    following laws apply to bonds issued by the commission:

 22-2                (1)  Chapter 503, Acts of the 54th Legislature, 1955

 22-3    (Article 717k, Vernon's Texas Civil Statutes);

 22-4                (2)  Chapter 3, Acts of the 61st Legislature, Regular

 22-5    Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes);

 22-6                (3)  the Bond Procedures Act of 1981 (Article 717k-6,

 22-7    Vernon's Texas Civil Statutes);

 22-8                (4)  Article 3, Chapter 53, Acts of the 70th

 22-9    Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's

22-10    Texas Civil Statutes); and

22-11                (5)  Chapter 656, Acts of the 68th Legislature, Regular

22-12    Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).

22-13          (d)  The revenue bonds are special obligations of the

22-14    commission payable only from income and receipts of the bank as the

22-15    commission may designate.  The income and receipts include

22-16    principal of and interest paid and to be paid on acquired

22-17    obligations, other designated obligations held by the bank, or

22-18    income from accounts created within the bank.

22-19          (e)  The revenue bonds do not constitute a debt of the state

22-20    or a pledge of the faith and credit of the state.

22-21          (f)  The commission may require participants to make charges,

22-22    levy taxes, or otherwise provide for sufficient money to pay

22-23    acquired obligations.

22-24          (g)  Revenue bonds issued under this section shall be

22-25    authorized by order of the commission and shall have the form and

 23-1    characteristics and bear the designations as are provided in the

 23-2    order.

 23-3          (h)  Revenue bonds shall:

 23-4                (1)  be dated;

 23-5                (2)  bear interest at the rate or rates authorized by

 23-6    law;

 23-7                (3)  mature at the time or times, serially, as term,

 23-8    revenue bonds, or otherwise not more than 50 years after their

 23-9    dates;

23-10                (4)  be called before stated maturity on the terms and

23-11    at the prices, be in the denominations, be in the form, either

23-12    coupon or registered, carry registration privileges as to principal

23-13    only or as to both principal and interest and as to successive

23-14    exchange of coupon for registered bonds or one denomination for

23-15    bonds of other denominations, and successive exchange of registered

23-16    revenue bonds for coupon revenue bonds, be executed in the manner,

23-17    and be payable at the place or places inside or outside the state,

23-18    as provided in the order;

23-19                (5)  be issued in temporary or permanent form;

23-20                (6)  be issued in one or more installments and from

23-21    time to time as required and sold at a price or prices and under

23-22    terms determined by the commission to be the most advantageous

23-23    reasonably obtainable; and

23-24                (7)  be issued on a parity with and be secured in the

23-25    manner as other revenue bonds authorized to be issued by this

 24-1    section or be issued without parity and secured differently from

 24-2    other revenue bonds.

 24-3          (i)  All proceedings relating to the issuance of revenue

 24-4    bonds issued under this section shall be submitted to the attorney

 24-5    general for examination.  On determining that the revenue bonds

 24-6    have been authorized in accordance with law, the attorney general

 24-7    shall approve the revenue bonds, and the revenue bonds shall be

 24-8    registered by the comptroller.  After the approval and

 24-9    registration, the revenue bonds are incontestable in any court or

24-10    other forum for any reason and are valid and binding obligations in

24-11    accordance with their terms for all purposes.

24-12          (j)  The proceeds received from the sale of revenue bonds

24-13    shall be deposited in the bank and invested in the manner provided

24-14    for other funds deposited under this subchapter.

24-15          Sec. 222.076.  SEPARATE SUBACCOUNTS.  The bank shall consist

24-16    of at least two separate subaccounts, a highway subaccount and a

24-17    transit subaccount.

24-18          Sec. 222.077.  REPAYMENT TERMS; DEPOSIT OF REPAYMENTS;

24-19    INVESTMENT INCOME.  (a)  Any funds disbursed through the state

24-20    infrastructure bank must be repaid on terms determined by the

24-21    commission that comply with the federal act.

24-22          (b)  Notwithstanding any other law to the contrary:

24-23                (1)  the repayment of a loan or other assistance

24-24    provided with money deposited to the credit of a subaccount in the

24-25    bank shall be deposited in that subaccount; and

 25-1                (2)  investment income generated by money deposited to

 25-2    the credit of a subaccount in the bank shall be:

 25-3                      (A)  credited to that subaccount;

 25-4                      (B)  available for use in providing financial

 25-5    assistance under this subchapter; and

 25-6                      (C)  invested in United States Treasury

 25-7    securities, bank deposits, or other financing instruments approved

 25-8    by the United States secretary of transportation to earn interest

 25-9    and enhance the financing of projects assisted by the bank.

25-10          (c)  The commission shall administer the bank in compliance

25-11    with the federal act and any applicable federal regulation or

25-12    guideline.

25-13          (d)  The commission by rule shall:

25-14                (1)  implement this subchapter; and

25-15                (2)  establish eligibility criteria for an entity

25-16    applying for financial assistance from the bank.

25-17          Sec. 222.078.  REPORT TO LEGISLATURE.  (a)  Not later than

25-18    January 1, 2001, the department shall submit a report to the

25-19    legislature on the status of projects funded by the state

25-20    infrastructure bank and the use of the bank.  The report must

25-21    include information about:

25-22                (1)  the financial and operational status of projects

25-23    assisted by the bank;

25-24                (2)  the financial condition of the bank, including

25-25    fund balances;

 26-1                (3)  the cumulative value of investments made; and

 26-2                (4)  the extent to which projects assisted by the bank

 26-3    have aided the state in meeting the state's transportation needs.

 26-4          (b)  This section expires January 1, 2001.

 26-5          SECTION 1.22.  Subchapter A, Chapter 223, Transportation

 26-6    Code, is amended by adding Sections 223.012 and 223.013 to read as

 26-7    follows:

 26-8          Sec. 223.012.  CONTRACTOR PERFORMANCE.  The department shall:

 26-9                (1)  develop a schedule for liquidated damages that

26-10    accurately reflects the costs associated with project completion

26-11    delays, including administrative and travel delays; and

26-12                (2)  review contractor bidding capacity to ensure that

26-13    contractors meet each quality and timeliness standard established

26-14    by the commission.

26-15          Sec. 223.013.  ELECTRONIC BIDDING SYSTEM.  (a)  The

26-16    department may establish an electronic bidding system for highway

26-17    construction and maintenance contracts.

26-18          (b)  The system must permit a qualified vendor to

26-19    electronically submit a bid, including any contract, signature, or

26-20    verification of a guaranty check by a financial institution.

26-21          (c)  That part of Section 223.004(a) requiring a bid to be

26-22    opened at a public hearing of the commission does not apply to an

26-23    electronically submitted bid.  A copy of each electronically

26-24    submitted bid shall be publicly posted within 48 hours after bids

26-25    are opened.

 27-1          (d)  After the electronic bidding system is established, the

 27-2    department shall take the actions necessary to recover the

 27-3    department's costs of manually processing bids from a person who

 27-4    does not submit an electronic bid.

 27-5          SECTION 1.23.  Section 223.041, Transportation Code, is

 27-6    amended to read as follows:

 27-7          Sec. 223.041.  ENGINEERING AND DESIGN CONTRACTS.  (a)  The

 27-8    department shall use private sector engineering-related services to

 27-9    assist in accomplishing its activities in providing transportation

27-10    projects.  For the purpose of this section, engineering-related

27-11    services means engineering, land surveying, environmental,

27-12    transportation feasibility and financial, architectural, real

27-13    estate appraisal, and materials laboratory services.  These

27-14    engineering-related services are for highway improvements,

27-15    right-of-way acquisition, and aviation improvements [department's

27-16    policy regarding the regular use of private sector professional

27-17    services for preliminary and construction engineering and

27-18    engineering design shall achieve a balance between the use of

27-19    department employees and the use of private contractors if the

27-20    costs are equivalent].

27-21          (b)  The department, in setting the level of expenditures in

27-22    these engineering-related activities that will be paid to the

27-23    private sector providers, shall index the level of expenditures

27-24    from the amount set by rider in the General Appropriations Act,

27-25    75th Legislature, Regular Session, 1997, expressed as a percentage

 28-1    of the total funds appropriated in Strategy A.1.1.

 28-2    Plan/Design/Manage [office of the state auditor shall determine

 28-3    relevant costs to be considered under Subsection (a)].

 28-4          (c)  Beginning in fiscal year 2000, the department shall

 28-5    increase its expenditures to private sector providers for

 28-6    engineering-related services at least one percentage point per year

 28-7    until the expenditure level in all strategies paid to private

 28-8    sector providers for all department engineering-related services

 28-9    for transportation projects reaches a goal of 35 percent of funds

28-10    appropriated in Strategy A.1.1. Plan/Design/Manage of the General

28-11    Appropriations Act, 75th Legislature, Regular Session, 1997.

28-12          (d)  The commission may provide for hearings at which private

28-13    sector complaints relating to the selection process are heard.

28-14          SECTION 1.24.  Chapter 224, Transportation Code, is amended

28-15    by adding Subchapter F to read as follows:

28-16       SUBCHAPTER F.  CONGESTION MITIGATION PROJECTS AND FACILITIES

28-17          Sec. 224.151.  DEFINITIONS.  In this subchapter:

28-18                (1)  "Congestion" means the level at which

28-19    transportation system performance is no longer acceptable because

28-20    of traffic interference.  The level of acceptable system

28-21    performance may vary by type of transportation facility, geographic

28-22    location, or time of day.

28-23                (2)  "Congestion mitigation" means projects and

28-24    facilities used to reduce congestion to promote the use of carpools

28-25    and vanpools, improve air quality, conserve fuel, and enhance the

 29-1    use of existing highways and facilities on the state highway

 29-2    system.

 29-3                (3)  "High occupancy vehicle" means a bus or other

 29-4    motorized passenger vehicle such as a carpool or vanpool vehicle

 29-5    used for ridesharing purposes and occupied by a specified minimum

 29-6    number of persons.

 29-7                (4)  "High occupancy vehicle lane" means one or more

 29-8    lanes of a highway or an entire highway where high occupancy

 29-9    vehicles, trucks, or emergency vehicles in any combination are

29-10    given at all times, or at regularly scheduled times, a priority or

29-11    preference over some or all other vehicles moving in the general

29-12    stream of all highway traffic.

29-13                (5)  "Motor vehicle" has the meaning assigned by

29-14    Section 522.003.

29-15                (6)  "Transportation corporation" means a

29-16    transportation corporation created by the state under Chapter 431.

29-17          Sec. 224.152.  PURPOSE.  (a)  Subject to the availability of

29-18    state and federal funds, it is the intent of the legislature to

29-19    further the purposes of the United States Congress as expressed in

29-20    23 U.S.C. Sections 134, 135, 146, and 149 and in Section 1012(b) of

29-21    Pub. L. No. 102-240 to conserve fuel, decrease traffic congestion

29-22    during rush hours, improve air quality, develop innovative

29-23    techniques to finance transportation projects, and enhance the use

29-24    of existing highways and facilities.

29-25          (b)  The legislature declares that it is necessary, to

 30-1    further the purposes described by Subsection (a), to provide for

 30-2    the participation of the commission and the department in projects

 30-3    and facilities for the purpose of congestion mitigation.

 30-4          Sec. 224.153.  HIGH OCCUPANCY VEHICLE LANES AUTHORIZED.

 30-5    (a)  The commission may designate and the department or a

 30-6    transportation corporation may design, construct, operate, or

 30-7    maintain one or more lanes on a multi-lane highway facility as

 30-8    dedicated high occupancy vehicle lanes on the state highway system.

 30-9          (b)  The commission may spend or allocate any available funds

30-10    to:

30-11                (1)  designate highway lanes as preferential carpool or

30-12    high occupancy vehicle lanes and create facilities to relieve

30-13    traffic congestion; or

30-14                (2)  make any other designation of a dedicated high

30-15    occupancy vehicle lane on the state highway system.

30-16          Sec. 224.154.  CONGESTION MITIGATION.  (a)  Notwithstanding

30-17    any law of this state relating to charging tolls on existing free

30-18    public highways, the commission may by order authorize the

30-19    department or a transportation corporation to charge a toll for the

30-20    use of one or more lanes of a state highway facility, including a

30-21    high occupancy vehicle lane, for the purposes of congestion

30-22    mitigation.  The commission may enter into an agreement with a

30-23    regional tollway authority described in Chapter 366, or a transit

30-24    authority described in Chapter 451, 452, or 453, to charge a toll

30-25    for the use of one or more lanes of a state highway facility under

 31-1    this subsection.

 31-2          (b)  The commission may by order set the amount of toll

 31-3    charges.  Any toll charges shall be imposed in a reasonable and

 31-4    nondiscriminatory manner.

 31-5          (c)  For purposes of congestion mitigation projects and

 31-6    facilities under this subchapter, the department, a transportation

 31-7    corporation, and a regional tollway authority or a transit

 31-8    authority with whom the commission has an agreement under this

 31-9    section are successor agencies to the Texas Turnpike Authority for

31-10    purposes of Section 52-b, Article III, Texas Constitution.

31-11          (d)  Revenue generated from toll charges and administrative

31-12    fees assessed by the department in connection with a congestion

31-13    mitigation facility shall be deposited in the state highway fund

31-14    and may be used only for projects for the improvement of the state

31-15    highway system.  Revenue generated from toll charges and

31-16    administrative fees assessed by an entity with whom the commission

31-17    contracts under this section shall be allocated as required by the

31-18    terms of the agreement.

31-19          (e)  The powers granted by this section are subject to the

31-20    restrictions of 23 U.S.C. Section 129.

31-21          Sec. 224.155.  FAILURE OR REFUSAL TO PAY TOLL CHARGES.  Any

31-22    motor vehicle other than a police or emergency vehicle that is

31-23    driven or towed through a toll collection facility shall pay the

31-24    proper toll.

31-25          Sec. 224.156.  ADMINISTRATIVE FEE; NOTICE.  (a)  In the event

 32-1    of nonpayment of the proper toll, on issuance of proper notice of

 32-2    nonpayment, the registered owner of the nonpaying vehicle is

 32-3    legally bound to pay both the proper toll and an administrative

 32-4    fee.

 32-5          (b)  The commission by rule and a transportation corporation

 32-6    by order of its board of directors may respectively fix an

 32-7    administrative fee, not to exceed $100, to recover the cost of

 32-8    collecting an unpaid toll.  The notice of nonpayment to the

 32-9    registered owner shall be sent by the department by first-class

32-10    mail not later than 30 days after the date of the alleged failure

32-11    to pay and may require payment not sooner than 30 days after the

32-12    date the notice was mailed.  The registered owner shall pay a

32-13    separate toll and administrative fee for each event of nonpayment.

32-14          (c)  If the registered owner of the vehicle fails to pay the

32-15    proper toll and administrative fee within the time specified by the

32-16    notice of nonpayment issued under this section, the registered

32-17    owner shall be cited as for other traffic violations for the

32-18    nonpayment, and the owner is legally bound to pay a fine, not to

32-19    exceed $250, for each event of nonpayment.  Neither the legal

32-20    obligation to pay nor the actual payment of the fine affects the

32-21    legal duty of the owner for any other fine or penalty prescribed by

32-22    law.

32-23          Sec. 224.157.  PROSECUTIONS.  (a)  In the prosecution of a

32-24    violation under Sections 224.155 and 224.156, proof that the

32-25    vehicle passed through a toll collection facility without payment

 33-1    of the proper toll, together with proof that the defendant was the

 33-2    registered owner of the vehicle when the failure to pay occurred,

 33-3    establishes the nonpayment of the registered owner.

 33-4          (b)  The court of the local jurisdiction in which the

 33-5    violation occurred may assess and collect the fine in addition to

 33-6    any court costs.  The court shall also collect the proper toll and

 33-7    administrative fee and forward the toll and fee to the department

 33-8    or to the transportation corporation.

 33-9          (c)  It is a defense to nonpayment under Section 224.155 or

33-10    224.156 that the motor vehicle in question was stolen before the

33-11    failure to pay the proper toll occurred and was not recovered by

33-12    the time of the failure to pay, but only if the theft was reported

33-13    to the appropriate law enforcement authority before the earlier of:

33-14                (1)  the occurrence of the failure to pay; or

33-15                (2)  eight hours after discovery of the theft.

33-16          (d)  A registered owner who is a lessor of a vehicle

33-17    concerning which a notice of nonpayment was issued under Section

33-18    224.156 is not liable in connection with that notice of nonpayment

33-19    if, not later than 30 days after the date the notice of nonpayment

33-20    is mailed, the registered owner provides to the department or the

33-21    transportation corporation a copy of the rental, lease, or other

33-22    contract document covering the vehicle on the date of the

33-23    nonpayment, with the name and address of the lessee clearly

33-24    legible.  Failure to provide this information within the period

33-25    prescribed renders the lessor liable as the registered owner.  If

 34-1    the lessor provides the required information within the period

 34-2    prescribed, the lessee of the vehicle on the date of the violation

 34-3    is considered to be the owner of the vehicle for purposes of this

 34-4    subchapter and is subject to prosecution for failure to pay the

 34-5    proper toll as if the lessee were the registered owner, if the

 34-6    department or the transportation corporation sends a notice of

 34-7    nonpayment to the lessee by first-class mail within 30 days after

 34-8    the date of receipt of the required information from the lessor.

 34-9          Sec. 224.158.  USE AND RETURN OF TRANSPONDERS.  (a)  For

34-10    purposes of this section, a "transponder" means a device, placed on

34-11    or within a motor vehicle, that is capable of transmitting

34-12    information used to assess or collect tolls.  A transponder is

34-13    "insufficiently funded" when there are no remaining funds in the

34-14    account in connection with which the transponder was issued.

34-15          (b)  Any law enforcement officer of the Department of Public

34-16    Safety has the authority to seize a stolen or insufficiently funded

34-17    transponder and to return it to the department or the

34-18    transportation corporation, except that an insufficiently funded

34-19    transponder may not be seized sooner than 30 days after the date

34-20    the department or the transportation corporation has sent a notice

34-21    of delinquency to the holder of the account.

34-22          Sec. 224.159.  ADOPTION OF RULES; PRESCRIBE FORMS.  The

34-23    commission shall adopt rules and prescribe forms to administer this

34-24    subchapter.

34-25          SECTION 1.25.  Section 431.073, Transportation Code, is

 35-1    amended to read as follows:

 35-2          Sec. 431.073.  PROJECT IN COUNTY OF 500,000 [1.5 MILLION] OR

 35-3    MORE OR ADJACENT COUNTY.  (a)  This section applies only to a

 35-4    corporation [in existence on August 31, 1991,] that was created by

 35-5    the state or one or more counties or municipalities to implement a

 35-6    transportation project in:

 35-7                (1)  a county with a population of 500,000 [1.5

 35-8    million] or more; or

 35-9                (2)  a county adjacent to a county described by

35-10    Subdivision (1).

35-11          (b)  If approved and authorized by the commission, a

35-12    corporation created by the state has the rights, powers,

35-13    privileges, authority, and functions given the department under

35-14    this title to:

35-15                (1)  construct, improve, operate, and maintain high

35-16    occupancy vehicle lanes; and

35-17                (2)  charge a toll for the use of one or more high

35-18    occupancy vehicle lanes for the purpose of congestion mitigation.

35-19          (c)  A corporation in existence on August 31, 1991, has the

35-20    powers, rights, and privileges of a corporation created under

35-21    Chapter 11, Title 32, Revised Statutes, as that law existed on

35-22    August 31, 1991, except that the required right-of-way of any

35-23    highway, road, street, or turnpike may be of the width required or

35-24    approved by the commission or each governing body creating the

35-25    corporation.

 36-1          SECTION 1.26.  Section 224.033, Transportation Code, is

 36-2    amended to read as follows:

 36-3          Sec. 224.033.  COUNTY IMPROVEMENT OF STATE SYSTEM.  (a)  The

 36-4    commission may enter into an agreement with the commissioners court

 36-5    of a county [may contract with the department] for the improvement

 36-6    by the county of the state highway system.

 36-7          (b)  In this section, "improvement" means construction,

 36-8    reconstruction, maintenance, and the making of a necessary plan or

 36-9    survey before beginning construction, reconstruction, or

36-10    maintenance and includes a project or activity[:]

36-11                [(1)]  appurtenant to a state highway and including

36-12    drainage facilities, surveying, traffic counts, driveways,

36-13    landscaping, signs, lights, or guardrails[; or]

36-14                [(2)  involving maintenance of a state highway and

36-15    appurtenant facilities].

36-16          SECTION 1.27.  Section 251.014, Transportation Code, is

36-17    amended to read as follows:

36-18          Sec. 251.014.  COUNTY IMPROVEMENT OF STATE HIGHWAY.  (a)  The

36-19    commissioners court of a county may enter into an agreement

36-20    [contract] with the commission [department] for the county to carry

36-21    out a project or activity for the improvement of a segment of the

36-22    state highway system.

36-23          (b)  In this section, "improvement" means construction,

36-24    reconstruction, maintenance, and the making of a necessary plan or

36-25    survey before beginning construction, reconstruction, or

 37-1    maintenance and includes a [if the] project or activity[:]

 37-2                [(1)  is] appurtenant to a state highway, including

 37-3    surveying, making a traffic count, or landscaping or an activity

 37-4    relating to a drainage facility, driveway, sign, light, or

 37-5    guardrail[; or]

 37-6                [(2)  involves maintenance of a state highway or

 37-7    appurtenant facility].

 37-8          SECTION 1.28.  Chapter 455, Transportation Code, is amended

 37-9    by adding Section 455.0015 to read as follows:

37-10          Sec. 455.0015.  TRANSPORTATION NEEDS OF CLIENTS OF HEALTH AND

37-11    HUMAN SERVICES AGENCIES.  In performing its public transportation

37-12    planning and funding activities, the department shall consider and

37-13    include the transportation needs of those persons who are clients

37-14    of the health and human services agencies of this state.

37-15          SECTION 1.29.  Section 623.074, Transportation Code, is

37-16    amended by adding Subsection (d) to read as follows:

37-17          (d)  The department may by rule authorize an applicant to

37-18    submit an application electronically.  An electronically submitted

37-19    application shall be considered signed if a digital signature is

37-20    transmitted with the application and intended by the applicant to

37-21    authenticate the application.  For purposes of this subsection,

37-22    "digital signature" means an electronic identifier intended by the

37-23    person using it to have the same force and effect as the use of a

37-24    manual signature.

37-25          SECTION 1.30.  (a)  Not later than April 30, 1998, the Texas

 38-1    Department of Transportation shall complete a study of alternative

 38-2    routes for a second transportation link from the mainland to South

 38-3    Padre Island that would:

 38-4                (1)  provide an alternative for emergency ingress or

 38-5    egress for permanent residents and daily and overnight visitors;

 38-6                (2)  better disperse the traffic on the island to

 38-7    reduce congestion at the southern end of the island;

 38-8                (3)  reduce the travel time and cost by providing a

 38-9    more direct route to the island from upper Rio Grande Valley

38-10    locations and provide relief to traffic congestion in

38-11    municipalities along existing highway routes; and

38-12                (4)  give priority to environmentally friendly

38-13    alternative options, such as a light-rail highway combination, that

38-14    could be anchored at the Valley International Airport and the South

38-15    Padre Convention Center or at other logical destinations.

38-16          (b)  The Texas Department of Transportation shall, not later

38-17    than December 31, 1998, report to the legislature on the

38-18    department's plans to implement the recommendations of the study

38-19    described by Subsection (a) of this section.

38-20          SECTION 1.31.  Subsection (b), Section 201.109,

38-21    Transportation Code, is amended to read as follows:

38-22          (b)  In carrying out this section, the commission shall

38-23    provide for:

38-24                (1)  maximizing the generation of revenue from existing

38-25    assets of the department, including real estate;

 39-1                (2)  increasing the role of the private sector and

 39-2    public-private projects in the leasing of real estate and other

 39-3    assets in the development of highway projects;

 39-4                (3)  setting and attempting to meet annual revenue

 39-5    enhancement goals;

 39-6                (4)  reporting on the progress in meeting revenue

 39-7    enhancement goals in the department's annual report; [and]

 39-8                (5)  contracting for an independent audit of the

 39-9    department's management and business operations in 2001 and each

39-10    12th year after 2001; and

39-11                (5)  developing cost-benefit analysis between the use

39-12    of local materials previously incorporated into roadways versus use

39-13    of materials blended or transported from other sources.

39-14          SECTION 1.32.  Subchapter C, Chapter 791, Government Code, is

39-15    amended by adding Section 791.031 to read as follows:

39-16          Sec. 791.031.  TRANSPORTATION INFRASTRUCTURE.  This section

39-17    applies only to a local government, other than a school district,

39-18    that is authorized to impose ad valorem taxes on real property.

39-19          (b)  The Texas Department of Transportation may enter into an

39-20    interlocal contract with a local government for the financing of

39-21    transportation infrastructure that is constructed or that is to be

39-22    constructed in the territory of the local government by the

39-23    department in a corridor of land on which no existing state or

39-24    federal highway is located.

39-25          (c)  The agreement must include:

 40-1                (1)  the duration of the agreement, which may not

 40-2    exceed 12 years;

 40-3                (2)  a description of each transportation

 40-4    infrastructure project or proposed project;

 40-5                (3)  a map showing the location of each project and

 40-6    property included in the contract; and

 40-7                (4)  an estimate of the cost of each project.

 40-8          (d)  The agreement may establish one or more transportation

 40-9    infrastructure zones.  The Texas Department of Transportation and

40-10    the local government may agree that at one or more specified times,

40-11    the local government will pay to the Texas Department of

40-12    Transportation an amount that is calculated on the basis of

40-13    increased ad valorem tax collections in a zone that are

40-14    attributable to increased values of property located in the zone

40-15    resulting from an infrastructure project.  The amount may not

40-16    exceed an amount that is equal to 30 percent of the increase in ad

40-17    valorem tax collections for the specified period.

40-18          (e)  Money received by the Texas Department of Transportation

40-19    under this section may be used:

40-20                (1)  to provide a local match for the acquisition of

40-21    right-of-way in the territory of the local government; or

40-22                (2)  for design, construction, operation, or

40-23    maintenance of transportation facilities in the territory of the

40-24    local government.

40-25          SECTION 1.33.  Subtitle B, Title 6, Transportation Code, is

 41-1    amended by adding Chapter 226 to read as follows:

 41-2                     CHAPTER 226.  EMERGENCY CALL BOX SYSTEM

 41-3          Sec. 226.001.  DEFINITION.  In this chapter, "emergency

 41-4    response service" means:

 41-5                (1)  firefighting, law enforcement, or emergency

 41-6    medical services that are provided by a public agency; or

 41-7                (2)  motorist assistance services.

 41-8          Sec. 226.002.  APPLICABILITY; LIMITATION ON EXPENDITURES.

 41-9    This chapter does not:

41-10                (1)  apply to a segment of a highway that the

41-11    commission has designated as a farm-to-market or ranch-to-market

41-12    road; or

41-13                (2)  authorize the department to make an expenditure of

41-14    money for the implementation, operation, or maintenance of the

41-15    emergency telephone call box system under this chapter that exceeds

41-16    the amount of money deposited to the credit of the state highway

41-17    fund under Section 226.009.

41-18          Sec. 226.003.  INSTALLATION, OPERATION, AND MAINTENANCE OF

41-19    CALL BOX SYSTEM.  (a)  The department shall provide for the

41-20    installment, operation, and maintenance of a system of emergency

41-21    telephone call boxes along those highways in this state that are

41-22    part of the designated state highway system.

41-23          (b)  The system must:

41-24                (1)  be designed to enable users of those highways to

41-25    request emergency and nonemergency response services; and

 42-1                (2)  include:

 42-2                      (A)  wired or wireless telecommunications

 42-3    services; and

 42-4                      (B)  one or more motorist assistant answering

 42-5    centers; and

 42-6                (3)  be capable of performing compatible Intelligent

 42-7    Transportation Systems (ITS) functions.

 42-8          (c)  To minimize call processing loads in public safety

 42-9    answering points established under Chapter 771 or 772, Health and

42-10    Safety Code, the department shall, to the extent practical,

42-11    contract with a private entity to perform the functions of a

42-12    motorist assistance answering center under Subsection (b)(2)(B).

42-13          Sec. 226.004.  LOCATION OF AND DISTANCE BETWEEN CALL BOXES.

42-14    The location of the emergency call boxes shall be determined by the

42-15    department in accordance with the design specifications of the

42-16    system.

42-17          Sec. 226.005.  EMERGENCY TELEPHONE CALL BOX SYSTEM ADVISORY

42-18    COMMITTEE.  (a)  There is created an emergency telephone call box

42-19    system advisory committee.  The committee is composed of the

42-20    executive officers, or the representatives of the executive

42-21    officers, of:

42-22                (1)  the department;

42-23                (2)  the Advisory Commission on State Emergency

42-24    Communications;

42-25                (3)  the General Services Commission;

 43-1                (4)  the Texas Department of Health; and

 43-2                (5)  the Department of Public Safety.

 43-3          (b)  Except for the authority provided by Section 226.006,

 43-4    the committee shall:

 43-5                (1)  advise and assist in:

 43-6                      (A)  the design, operation, and maintenance of

 43-7    the system; and

 43-8                      (B)  the development of specifications for each

 43-9    contract to be awarded under this chapter.

43-10          Sec. 226.006.  OVERSIGHT BY ADVISORY COMMISSION ON STATE

43-11    EMERGENCY COMMUNICATIONS.  (a)  The Advisory Commission on State

43-12    Emergency Communications shall:

43-13                (1)  provide technical and management oversight to

43-14    support the proper routing of a call made to an emergency response

43-15    services provider from an emergency telephone call box and any

43-16    emergency response to that call; and

43-17                (2)  coordinate the operation and maintenance of the

43-18    emergency response system through local councils of governments and

43-19    9-1-1 districts.

43-20          (b)  If the advisory commission establishes standards for

43-21    system performance, the standards must be applicable throughout the

43-22    state.

43-23          Sec. 226.007.  CONTRACTS FOR IMPLEMENTATION AND INSTALLATION

43-24    OF CALL BOX SYSTEM.  (a)  The department shall:

43-25                (1)  award one or more contracts to implement the

 44-1    system not later than June 1, 1998;

 44-2                (2)  require that installation of the system begin not

 44-3    later than September 1, 1998; and

 44-4                (3)  implement the system in each area of the state

 44-5    that has cellular telephone coverage.

 44-6          (b)  A contract awarded under this chapter shall be awarded

 44-7    by the department in the manner provided by Chapter 223.

 44-8          (c)  The department may solicit proposals for and enter into

 44-9    one or more lease-purchase agreements under this chapter.

44-10          Sec. 226.008.  INTERGOVERNMENTAL COOPERATION.  (a)  The

44-11    Advisory Commission on State Emergency Communications, agencies of

44-12    this state, and each county and municipality in this state shall

44-13    cooperate in the design, establishment, operation, and maintenance

44-14    of the emergency telephone call box system.

44-15          (b)  Local government authorities shall support statewide

44-16    public relations efforts with local media.

44-17          Sec. 226.009.  FEE; OTHER REVENUE.  (a)  In this section,

44-18    "insurer" and "motor vehicle years of insurance" have the meanings

44-19    assigned those terms by Section 10(a), Article 4413(37), Revised

44-20    Statutes.

44-21          (b)  Not later than March 1 of each year, each insurer shall

44-22    pay to the comptroller a fee in an amount equal to $1 multiplied by

44-23    the total number of motor vehicle years of insurance for insurance

44-24    policies delivered, issued for delivery, or renewed by the insurer

44-25    during the preceding calendar year.

 45-1          (c)  The fee imposed by this section is in addition to any

 45-2    other fee or tax imposed by law on an insurer.

 45-3          (d)  The fee imposed by this section shall not be reflected

 45-4    as an additional line item on the insured's invoice.

 45-5          (e)  The comptroller shall notify the Texas Department of

 45-6    Insurance of each insurer that fails to pay the fee imposed by this

 45-7    section.  The department of insurance may revoke the certificate of

 45-8    authority of an insurer who fails to pay the fee.

 45-9          (f)  Each fee under this section that is received by the

45-10    comptroller shall be deposited to the credit of a separate account

45-11    in the state highway fund.  Money in the account, including any

45-12    interest accrued, may be used only for the purpose of implementing,

45-13    operating, maintaining, upgrading, or administering the emergency

45-14    telephone call box system established under this chapter.

45-15          (g)  If the department, the emergency telephone call box

45-16    system advisory committee, the Advisory Commission on State

45-17    Emergency Communications, or another agency or department of this

45-18    state derives any revenue from the operation or maintenance of the

45-19    emergency telephone call box system, the revenue must be sent to

45-20    the comptroller for deposit in the separate account as provided by

45-21    Subsection (f).

45-22          (h)  Section 403.095, Government Code, does not apply to

45-23    money deposited to the credit of the state highway fund under this

45-24    section.

45-25          Sec. 226.010.  ANNUAL REPORTS.  (a)  Not later than November

 46-1    1 of each year, the department shall file with the lieutenant

 46-2    governor, the speaker of the house of representatives, and the

 46-3    Legislative Budget Board a report on the activities under this

 46-4    chapter during the preceding fiscal year.

 46-5          (b)  The report may include the department's recommendations

 46-6    for action by the legislature.

 46-7          Sec. 226.011.  APPLICATION OF SUNSET ACT.  The emergency

 46-8    telephone call box system and the provisions of this chapter are

 46-9    subject to Chapter 325, Government Code (Texas Sunset Act).  Unless

46-10    continued in existence as provided by that chapter, the advisory

46-11    committee is abolished and this chapter expires on September 1,

46-12    2007.

46-13                      ARTICLE 2.  OUTDOOR ADVERTISING

46-14          SECTION 2.01.  Section 391.065, Transportation Code, is

46-15    amended by adding Subsection (c) to read as follows:

46-16          (c)  The commission may not adopt a rule under this chapter

46-17    that restricts competitive bidding or advertising by the holder of

46-18    a license issued under this chapter other than a rule to prohibit

46-19    false, misleading, or deceptive practices.  The limitation provided

46-20    by this section applies only to rules relating to the occupation of

46-21    outdoor advertiser and does not affect the commission's power to

46-22    regulate the orderly and effective display of outdoor advertising

46-23    under this chapter.  A rule to prohibit false, misleading, or

46-24    deceptive practices may not:

46-25                (1)  restrict the use of:

 47-1                      (A)  any legal medium for an advertisement;

 47-2                      (B)  the license holder's advertisement under a

 47-3    trade name; or

 47-4                      (C)  the license holder's personal appearance or

 47-5    voice in an advertisement, if the license holder is an individual;

 47-6    or

 47-7                (2)  relate to the size or duration of an advertisement

 47-8    by the license holder.

 47-9          SECTION 2.02.  Section 391.062, Transportation Code, is

47-10    amended by adding Subsection (c) to read as follows:

47-11          (c)  At least 30 days before the date on which a person's

47-12    license expires, the commission shall notify the person of the

47-13    impending expiration.  The notice must be in writing and sent to

47-14    the person's last known address according to the records of the

47-15    commission.

47-16          SECTION 2.03.  Subsection (a), Section 391.066,

47-17    Transportation Code, is amended to read as follows:

47-18          (a)  The commission may revoke or suspend a license issued

47-19    under this subchapter or place on probation a license holder whose

47-20    license is suspended if the license holder violates this chapter or

47-21    a rule adopted under this chapter.  If the suspension of the

47-22    license is probated, the department may require the license holder

47-23    to report regularly to the commission on any matter that is the

47-24    basis of the probation.

47-25          SECTION 2.04.  Subchapter B, Chapter 391, Transportation

 48-1    Code, is amended by adding Section 391.037 to read as follows:

 48-2          Sec. 391.037.  LIVING LOGOS PROGRAM.  The Commission may

 48-3    adopt rules to implement a floral mosaic living logo program for

 48-4    display within the public right-of-way.  Such rules shall prescribe

 48-5    the scope and size of the displays, determine lease rates and terms

 48-6    for the location of each display, set a bond for faithful

 48-7    performance, and provide for the public safety.  The commission may

 48-8    implement a pilot program as part of the rulemaking process.  This

 48-9    program may be incorporated into the current Adopt-A-Highway

48-10    program.

48-11              ARTICLE 3.  TEXAS MOTOR VEHICLE COMMISSION CODE

48-12          SECTION 3.01.  Section 2.02A, Texas Motor Vehicle Commission

48-13    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

48-14    to read as follows:

48-15          Sec. 2.02A.  APPOINTMENTS.  Appointments to the Commission

48-16    shall be made without [with due] regard to [for] the race, color,

48-17    disability, sex, religion, or [ethnicity, gender, and] national

48-18    origin of the appointees.

48-19          SECTION 3.02.  Subchapter B, Texas Motor Vehicle Commission

48-20    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

48-21    by adding Section 2.03A to read as follows:

48-22          Sec. 2.03A.  TRAINING ON DEPARTMENT AND CERTAIN LAWS RELATING

48-23    TO DEPARTMENT.  (a)  To be eligible to take office as a member of

48-24    the Commission, a person appointed to the Commission must complete

48-25    at least one course of a training program that complies with this

 49-1    section.

 49-2          (b)  The training program must provide information to the

 49-3    person regarding:

 49-4                (1)  this Act;

 49-5                (2)  the programs operated by the department;

 49-6                (3)  the role and functions of the department;

 49-7                (4)  the rules of the department with an emphasis on

 49-8    the rules that relate to disciplinary and investigatory authority;

 49-9                (5)  the current budget for the department;

49-10                (6)  the results of the most recent formal audit of the

49-11    department;

49-12                (7)  the requirements of the:

49-13                      (A)  open meetings law, Chapter 551, Government

49-14    Code;

49-15                      (B)  open records law, Chapter 552, Government

49-16    Code; and

49-17                      (C)  administrative procedure law, Chapter 2001,

49-18    Government Code;

49-19                (8)  the requirements of the conflict of interest laws

49-20    and other laws relating to public officials; and

49-21                (9)  any applicable ethics policies adopted by the

49-22    Commission or the Texas Ethics Commission.

49-23          (c)  A person appointed to the Commission is entitled to

49-24    reimbursement for travel expenses incurred in attending the

49-25    training program, as provided by the General Appropriations Act and

 50-1    as if the person were a member of the Commission.

 50-2          SECTION 3.03.  Subsection (b), Section 2.08, Texas Motor

 50-3    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

 50-4    Statutes), is amended to read as follows:

 50-5          (b)  The Commission is subject to Chapters 551 and 2001,

 50-6    Government Code [the open meetings law, Chapter 271, Acts of the

 50-7    60th Legislature, Regular Session, 1967, as amended (Article

 50-8    6252-17, Vernon's Texas Civil Statutes)].

 50-9          SECTION 3.04.  Subsection (c), Section 2.08A, Texas Motor

50-10    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

50-11    Statutes), is amended to read as follows:

50-12          (c)  If the Executive Director has knowledge that a potential

50-13    ground for removal exists, the Executive Director shall notify the

50-14    Chairman of the Commission of the ground.  The Chairman shall then

50-15    notify the Governor and the Attorney General that a potential

50-16    ground for removal exists.  If the potential ground for removal

50-17    relates to the Chairman of the Commission, the Executive Director

50-18    shall notify the Vice-chairman of the Commission, who shall notify

50-19    the Governor and the Attorney General that a potential ground for

50-20    removal exists.

50-21          SECTION 3.05.  Subsection (e), Section 2.09, Texas Motor

50-22    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

50-23    Statutes), is amended to read as follows:

50-24          (e)  The Executive Director shall appoint and employ such

50-25    Commission staff as are necessary to carry out the duties and

 51-1    functions of the Executive Director and the Commission under this

 51-2    Act.  The Commission shall develop and implement policies that

 51-3    clearly separate the policy-making [define the respective]

 51-4    responsibilities of the Commission and the management

 51-5    responsibilities of the Executive Director and staff of the

 51-6    Commission.

 51-7          SECTION 3.06.  Subsection (b), Section 2.10, Texas Motor

 51-8    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

 51-9    Statutes), is amended to read as follows:

51-10          (b)  The Commission shall file annually with the Governor and

51-11    the presiding officer of each house of the legislature a complete

51-12    and detailed written report accounting for all funds received and

51-13    disbursed by the Commission during the preceding fiscal year.  The

51-14    annual report must comply with each reporting requirement

51-15    applicable to financial reporting [be in the form and reported in

51-16    the time] provided by the General Appropriations Act.

51-17          SECTION 3.07.  Section 2.12, Texas Motor Vehicle Commission

51-18    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

51-19    to read as follows:

51-20          Sec. 2.12.  COMPLAINTS.  (a)  The Commission shall:

51-21                (1)  keep an information file about each complaint

51-22    filed with the Commission that the Commission has authority to

51-23    resolve; and

51-24                (2)  provide the person who filed the complaint, and

51-25    each person or entity that is the subject of the complaint,

 52-1    information about the Commission's policies and procedures relating

 52-2    to complaint investigation and resolution.

 52-3          (b)  If a written complaint is filed with the Commission that

 52-4    the Commission has authority to resolve, the Commission, at least

 52-5    quarterly and until final disposition of the complaint, shall

 52-6    notify the parties to the complaint of the status of the complaint

 52-7    unless the notice would jeopardize an ongoing Commission

 52-8    investigation.

 52-9          (c)  With regard to each complaint filed with the Commission,

52-10    the Commission shall keep the following information:

52-11                (1)  the date the complaint is filed;

52-12                (2)  the name of the person filing the complaint;

52-13                (3)  the subject matter of the complaint;

52-14                (4)  a record of each person contacted in relation to

52-15    the complaint;

52-16                (5)  a summary of the results of the review or

52-17    investigation of the complaint; and

52-18                (6)  if the Commission takes no action on the

52-19    complaint, an explanation of the reasons that no action was taken.

52-20          SECTION 3.08.  Subsections (a), (b), and (d), Section 2.13,

52-21    Texas Motor Vehicle Commission Code (Article 4413(36), Vernon's

52-22    Texas Civil Statutes), are amended to read as follows:

52-23          (a)  The Executive Director or his designee shall develop an

52-24    intraagency career ladder program that addresses opportunities for

52-25    mobility and advancement of employees in the Commission.  The

 53-1    program shall require intraagency postings of all [nonentry level]

 53-2    positions concurrently with any public posting.

 53-3          (b)  The Executive Director or his designee shall develop a

 53-4    system of annual performance evaluations that are based on

 53-5    documented employee performance.  All merit pay for Commission

 53-6    employees must be based on the system established under this

 53-7    subsection.

 53-8          (d)  The Executive Director or his designee shall prepare and

 53-9    maintain a written policy statement to assure implementation of a

53-10    program of equal employment opportunity under which all personnel

53-11    transactions are made without regard to race, color, disability

53-12    [handicap], sex, religion, age, or national origin.  The policy

53-13    statement must include:

53-14                (1)  personnel policies, including policies relating to

53-15    recruitment, evaluation, selection, appointment, training, and

53-16    promotion of personnel that comply with Chapter 21, Labor Code;

53-17                (2)  a comprehensive analysis of the Commission work

53-18    force that meets federal and state guidelines;

53-19                (3)  procedures by which a determination can be made of

53-20    significant underuse in the Commission work force of all persons

53-21    for whom federal or state guidelines encourage a more equitable

53-22    balance; and

53-23                (4)  reasonable methods to appropriately address those

53-24    areas of significant underuse.

53-25          A policy statement prepared under this subsection must cover

 54-1    an annual period, be updated at least annually, be reviewed by the

 54-2    Texas Commission on Human Rights for compliance with Subdivision

 54-3    (1) of this subsection, and be filed with the Governor's office.

 54-4          The Governor's office shall deliver a biennial report to the

 54-5    legislature based on the information received under this

 54-6    subsection.  The report may be made separately or as a part of

 54-7    other biennial reports made to the legislature.

 54-8          SECTION 3.09.  Section 4.01B, Texas Motor Vehicle Commission

 54-9    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

54-10    to read as follows:

54-11          Sec. 4.01B.  [NOTICE OF] LICENSE EXPIRATION.  (a)  The

54-12    Commission by rule may implement a system under which licenses

54-13    expire on various dates during the year.

54-14          (b)  The Commission shall notify each person licensed under

54-15    this Act of the date of license expiration and the amount of the

54-16    fee required for license renewal.  The notice shall be mailed at

54-17    least thirty days before the date of license expiration.

54-18          (c)  For a year in which a license expiration date is

54-19    changed, the fee for the license shall be prorated so that the

54-20    holder of the license pays only that portion of the license fee

54-21    that is allocable to the number of months during which the license

54-22    is valid.  On renewal of the license on the new expiration date,

54-23    the entire license renewal fee is payable.

54-24                        ARTICLE 4.  MOTOR CARRIERS

54-25          SECTION 4.01.  Subsection (i), Section 3, Article 6675c,

 55-1    Revised Statutes, is amended to read as follows:

 55-2          (i)  A registration issued under this article is valid for

 55-3    one year.  The department may adopt a system under which

 55-4    registrations expire at different times during the year.  At least

 55-5    30 days before the date on which a motor carrier's registration

 55-6    expires, the department shall notify the carrier of the impending

 55-7    expiration.  The notice must be in writing and sent to the motor

 55-8    carrier's last known address according to the records of the

 55-9    department.  A motor carrier may renew a registration under this

55-10    article by:

55-11                (1)  supplementing the application with any new

55-12    information required under Subsection (g) of this section;

55-13                (2)  paying a $10 fee for each vehicle requiring

55-14    registration the carrier operates; and

55-15                (3)  showing the department evidence of continuing

55-16    insurance or financial responsibility in an amount at least equal

55-17    to the amount set by the department under Section 4(a) of this

55-18    article.

55-19          SECTION 4.02.  Section 7, Article 6675c, Revised Statutes, is

55-20    amended to read as follows:

55-21          Sec. 7.  Suspension and revocation of registration.  (a)  The

55-22    department may suspend or revoke a registration issued under this

55-23    article or place on probation a motor carrier whose registration is

55-24    suspended if:

55-25                (1)  a motor carrier fails to maintain insurance as

 56-1    required by Section 4(a) or (b) of this article;

 56-2                (2)  a motor carrier fails to keep proof of insurance

 56-3    in the cab of each vehicle as required by Section 4(e) of this

 56-4    article;

 56-5                (3)  a motor carrier fails to register a vehicle

 56-6    requiring registration; or

 56-7                (4)  a motor carrier knowingly provides false

 56-8    information on any form filed with the department under this

 56-9    section.

56-10          (b)  The Department of Public Safety may request that the

56-11    department suspend or revoke a registration issued under this

56-12    article or place on probation a motor carrier whose registration is

56-13    suspended if a motor carrier:

56-14                (1)  has an unsatisfactory safety rating under 49

56-15    C.F.R. Part 385; or

56-16                (2)  has multiple violations of a provision of Article

56-17    6675d, Revised Statutes, a rule adopted under that article, or the

56-18    Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's

56-19    Texas Civil Statutes).

56-20          (c)  Except as provided by Subsection (d) of this section, a

56-21    suspension or revocation or the imposition of probation made under

56-22    Subsection (a) or (b) of this section is a contested case under

56-23    Chapter 2001, Government Code.

56-24          (d)  The department may suspend or revoke a registration

56-25    issued under this article or place on probation a motor carrier

 57-1    whose registration is suspended without a hearing under Chapter

 57-2    2001, Government Code, if:

 57-3                (1)  the department provides notice to the motor

 57-4    carrier of:

 57-5                      (A)  the proposed suspension or revocation; and

 57-6                      (B)  the right of the carrier to request a

 57-7    hearing under Chapter 2001, Government Code; and

 57-8                (2)  the motor carrier fails to provide the department

 57-9    with a written request for a hearing within 10 days after the date

57-10    the carrier receives the notice described in Subdivision (1) of

57-11    this subsection.

57-12          (e)  If the suspension of a motor carrier's registration is

57-13    probated, the department may require the carrier to report

57-14    regularly to the department on any matter that is the basis of the

57-15    probation.

57-16          SECTION 4.03.  Section 8, Article 6675c, Revised Statutes, is

57-17    amended by adding Subsection (g) to read as follows:

57-18          (g)  The department may not by rule restrict competitive

57-19    bidding or advertising by a motor carrier except to prohibit false,

57-20    misleading, or deceptive practices.  A rule to prohibit false,

57-21    misleading, or deceptive practices may not:

57-22                (1)  restrict the use of:

57-23                      (A)  any medium for an advertisement;

57-24                      (B)  the motor carrier's advertisement under a

57-25    trade name; or

 58-1                      (C)  the motor carrier's personal appearance or

 58-2    voice in an advertisement, if the motor carrier is an individual;

 58-3    or

 58-4                (2)  relate to the size or duration of an advertisement

 58-5    by the motor carrier.

 58-6                    ARTICLE 5.  SALVAGE VEHICLE DEALERS

 58-7          SECTION 5.01.  Section 1.02, Article 6687-1a, Revised

 58-8    Statutes, is amended by adding Subsection (c) to read as follows:

 58-9          (c)  The commission may not adopt a rule under this article

58-10    that restricts competitive bidding or advertising by a person who

58-11    holds a license issued under this article other than a rule to

58-12    prohibit false, misleading, or deceptive practices.  A rule to

58-13    prohibit false, misleading, or deceptive practices may not:

58-14                (1)  restrict the use of:

58-15                      (A)  any medium for an advertisement;

58-16                      (B)  the license holder's advertisement under a

58-17    trade name; or

58-18                      (C)  the license holder's personal appearance or

58-19    voice in an advertisement, if the license holder is an individual;

58-20    or

58-21                (2)  relate to the size or duration of an advertisement

58-22    by the license holder.

58-23          SECTION 5.02.  Section 2.07, Article 6687-1a, Revised

58-24    Statutes, is amended to read as follows:

58-25          Sec. 2.07.  License Renewal.  (a)  A license issued under

 59-1    this article expires on the first anniversary of the date of

 59-2    issuance and may be renewed annually on or before the expiration

 59-3    date on payment of the required renewal fee.

 59-4          (b)  A person who is otherwise eligible to renew a license

 59-5    may renew an unexpired license by paying to the department before

 59-6    the expiration date of the license the required renewal fee.  A

 59-7    person whose license has expired may not engage in the activities

 59-8    that require a license until the license has been renewed under the

 59-9    provisions of this section.

59-10          (c)  If a person's license has been expired for 90 days or

59-11    less, the person may renew the license by paying to the department

59-12    one and one-half times the required renewal fee.

59-13          (d)  If a person's license has been expired for longer than

59-14    90 days but less than one year, the person may renew the license by

59-15    paying to the department two times the required renewal fee.

59-16          (e)  If a person's license has been expired for one year or

59-17    longer, the person may not renew the license.  The person may

59-18    obtain a new license by complying with the requirements and

59-19    procedures for obtaining an original license.  If the person was

59-20    licensed in this state, moved to another state, and has been doing

59-21    business in the other state for the two years preceding

59-22    application, the person may renew an expired license.  The person

59-23    must pay to the department a fee that is equal to two times the

59-24    required renewal fee for the license.

59-25          (f)  At least 30 days before the date on which a person's

 60-1    license expires, the department shall notify the person of the

 60-2    impending expiration.  The notice must be in writing and sent to

 60-3    the person's last known address according to the records of the

 60-4    department.  [If a license holder fails to renew the license before

 60-5    its expiration date, the license holder may renew the license on

 60-6    payment of the renewal fee and a late fee set by the commission.

 60-7    If the license is not renewed before the first anniversary of the

 60-8    date on which the license expired, the license holder must apply

 60-9    for a new license in the same manner as an applicant for an initial

60-10    license.]

60-11          SECTION 5.03.  Subsection (b), Section 4.01, Article 6687-1a,

60-12    Revised Statutes, is amended to read as follows:

60-13          (b)  The commission shall adopt rules establishing the

60-14    grounds for the denial, suspension, revocation, or reinstatement of

60-15    a license and establishing procedures for disciplinary actions.  A

60-16    rule adopted under this subsection may not conflict with a rule

60-17    adopted by the State Office of Administrative Hearings.

60-18                 ARTICLE 6.  VEHICLE STORAGE FACILITY ACT

60-19          SECTION 6.01.  Section 4, Vehicle Storage Facility Act

60-20    (Article 6687-9a, Revised Statutes), is amended by adding

60-21    Subsection (d) to read as follows:

60-22          (d)  The commission may not adopt a rule under this Act that

60-23    restricts competitive bidding or advertising by a person who holds

60-24    a license issued under this Act other than a rule to prohibit

60-25    false, misleading, or deceptive practices.  A rule to prohibit

 61-1    false, misleading, or deceptive practices may not:

 61-2                (1)  restrict the use of:

 61-3                      (A)  any medium for an advertisement;

 61-4                      (B)  the license holder's advertisement under a

 61-5    trade name; or

 61-6                      (C)  the license holder's personal appearance or

 61-7    voice in an advertisement, if the license holder is an individual;

 61-8    or

 61-9                (2)  relate to the size or duration of an advertisement

61-10    by the license holder.

61-11          SECTION 6.02.  Subsection (a), Section 9, Vehicle Storage

61-12    Facility Act (Article 6687-9a, Revised Statutes), is amended to

61-13    read as follows:

61-14          (a)  A license issued under this article is valid for the

61-15    period set by the commission.  At least 30 days before the date on

61-16    which a person's license expires, the commission shall notify the

61-17    person of the impending expiration.  The notice must be in writing

61-18    and sent to the person's last known address according to the

61-19    records of the commission.

61-20          SECTION 6.03.  Section 10, Vehicle Storage Facility Act

61-21    (Article 6687-9a, Revised Statutes), is amended by adding

61-22    Subsections (e) and (f) to read as follows:

61-23          (e)  If the commission places a person on probation under

61-24    this section, the commission may require the person to report

61-25    regularly to the commission on any matter that is the basis of the

 62-1    probation.

 62-2          (f)  If the commission proposes to take an action under

 62-3    Subsection (a) or (b) of this section, the person is entitled to a

 62-4    hearing conducted by the State Office of Administrative Hearings.

 62-5    Proceedings for a disciplinary action are governed by the

 62-6    administrative procedure law, Chapter 2001, Government Code.  Rules

 62-7    of practice adopted by the commission under Section 2001.004,

 62-8    Government Code, applicable to the proceedings for a disciplinary

 62-9    action may not conflict with rules adopted by the State Office of

62-10    Administrative Hearings.

62-11                           ARTICLE 7.  TURNPIKES

62-12          SECTION 7.01.  Chapter 222, Transportation Code, is amended

62-13    by adding Subchapter E to read as follows:

62-14                      SUBCHAPTER E.  TOLL FACILITIES

62-15          Sec. 222.101.  EXPENDITURE OF MONEY.  The department may

62-16    spend money from any source for the construction, maintenance, and

62-17    operation of toll facilities.

62-18          Sec. 222.102.  TEMPORARY TOLL PROJECTS.  The department may

62-19    recover the cost of a preventative maintenance or rehabilitation

62-20    project on a nontoll segment of the state highway system by

62-21    temporarily imposing a toll charge.

62-22          Sec. 222.103.  COST PARTICIPATION.  (a)  The department may

62-23    participate in the cost of the construction, maintenance, or

62-24    operation of a toll facility of a public or private entity on terms

62-25    and conditions established by the commission, including

 63-1    requirements for repayment.

 63-2          (b)  An entity receiving cost participation from the

 63-3    department under this section is a successor agency to the Texas

 63-4    Turnpike Authority for the purposes of Section 52-b, Article III,

 63-5    Texas Constitution.

 63-6          SECTION 7.02.  Section 362.055, Transportation Code, is

 63-7    amended to read as follows:

 63-8          Sec. 362.055.  EXCEPTION.  This subchapter does not apply to:

 63-9                (1)  a county that has a population of more than 1.5

63-10    million; [or]

63-11                (2)  a local government corporation created under

63-12    Chapter 431 by a county that has a population of more than 1.5

63-13    million; or

63-14                (3)  a regional tollway authority created under Chapter

63-15    366.

63-16          SECTION 7.03.  Section 361.001, Transportation Code, is

63-17    amended to read as follows:

63-18          Sec. 361.001.  DEFINITIONS.  In this chapter:

63-19                (1)  "Authority" means the Texas Turnpike Authority

63-20    division of the Texas Department of Transportation [and includes

63-21    the entity that succeeds to the principal functions of the

63-22    authority or to whom by law the powers of the authority are given].

63-23                (2)  "Board" means the board of directors of the

63-24    authority.

63-25                (3)  ["Highway" means a road, highway, farm-to-market

 64-1    road, or street under the supervision of the state or a political

 64-2    subdivision of the state.]

 64-3                [(4)]  "Owner" includes a person having title to or an

 64-4    interest in any property, rights, easements, and interests

 64-5    authorized to be acquired under this chapter.

 64-6                (4) [(5)]  "Turnpike project" means a toll [an express]

 64-7    highway constructed, maintained, or operated under this chapter as

 64-8    part of the state highway system and any improvement, extension, or

 64-9    expansion to the highway and includes:

64-10                      (A)  a facility to relieve traffic congestion and

64-11    promote safety;

64-12                      (B)  a bridge, tunnel, overpass, underpass,

64-13    interchange, entrance plaza, approach, toll house, or service

64-14    station;

64-15                      (C)  an administration, storage, or other

64-16    building the authority considers necessary to operate the project;

64-17    and

64-18                      (D)  property rights, easements, and interests

64-19    the authority acquires to construct or operate the project.

64-20                (5)  "Regional tollway authority" means a regional

64-21    tollway authority created under Chapter 366.

64-22          SECTION 7.04.  Section 361.031, Transportation Code, is

64-23    amended to read as follows:

64-24          Sec. 361.031.  TEXAS TURNPIKE AUTHORITY.  (a)  The Texas

64-25    Turnpike Authority is a division of the Texas Department of

 65-1    Transportation that has full authority to exercise all powers

 65-2    granted to it under this chapter.  Powers granted to the department

 65-3    under this chapter and Chapter 362 to study, design, construct,

 65-4    operate, expand, enlarge, or extend a turnpike project as a part of

 65-5    the state highway system shall be exercised by the department

 65-6    acting by and through the authority [state agency].

 65-7          (b)  The authority may perform, procure from other divisions

 65-8    of the department with the consent of the department, or procure

 65-9    from outside service providers any portion of the services the

65-10    authority requires for:

65-11                (1)  right-of-way acquisition;

65-12                (2)  roadway finance, design, and construction;

65-13                (3)  environmental affairs; or

65-14                (4)  legal services.

65-15          (c)  With the approval of the commission, the authority may

65-16    perform, procure from other divisions of the department with the

65-17    consent of the department, or procure from outside service

65-18    providers any portion of the services the authority requires for

65-19    roadway maintenance or traffic operations.

65-20          (d)  To perform its functions under this chapter, the

65-21    authority may use the facilities and personnel of the department in

65-22    the same manner as other divisions of the department.

65-23          (e)  If the comptroller assigns numbers to state agencies for

65-24    accounting purposes, the comptroller shall assign a separate agency

65-25    number to the authority [The authority shall locate offices in

 66-1    Austin, Texas, on or before September 1, 1997].

 66-2          (f) [(c)]  The exercise by the authority of the powers

 66-3    conferred by this chapter in the construction, operation, and

 66-4    maintenance of a turnpike project is:

 66-5                (1)  in all respects for the benefit of the people of

 66-6    this state, for the increase of their commerce and prosperity, and

 66-7    for the improvement of their health and living conditions and

 66-8    public safety; and

 66-9                (2)  an essential governmental function of the state.

66-10          SECTION 7.05.  Subsection (a), Section 361.032,

66-11    Transportation Code, is amended to read as follows:

66-12          (a)  The board is composed of seven [12] directors.  The

66-13    governor, with the advice and consent of the senate, shall appoint

66-14    six [nine] directors who represent the public.  The chair of the

66-15    [Each] commission or a member of the commission designated by the

66-16    chair serves as an ex officio board member.

66-17          SECTION 7.06.  Subsection (a), Section 361.033,

66-18    Transportation Code, is amended to read as follows:

66-19          (a)  A person is not eligible for appointment to the board if

66-20    the person or the person's spouse:

66-21                (1)  is registered, certified, or licensed by an

66-22    occupational regulatory agency in the field of toll road

66-23    construction, maintenance, or operation;

66-24                (2)  is employed by or participates in the management

66-25    of a business entity or other organization regulated by the

 67-1    commission, department, or authority or receiving funds from the

 67-2    commission, department, or authority;

 67-3                (3)  owns or controls, directly or indirectly, more

 67-4    than a 10 percent interest in a business entity or other

 67-5    organization regulated by or receiving funds from the commission,

 67-6    department, or authority, other than compensation for acquisition

 67-7    of turnpike right-of-way; or

 67-8                (4)  uses or receives a substantial amount of tangible

 67-9    goods, services, or funds from the commission, department, or

67-10    authority, other than compensation or reimbursement authorized by

67-11    law for board membership, attendance, or expenses or compensation

67-12    for acquisition of turnpike right-of-way.

67-13          SECTION 7.07.  Section 361.042, Transportation Code, is

67-14    amended to read as follows:

67-15          Sec. 361.042.  GENERAL POWERS AND DUTIES.  (a)  The board

67-16    [authority] shall:

67-17                (1)  on its own initiative or at the request of the

67-18    commission, consider, study, plan, and develop turnpike projects

67-19    under this chapter;

67-20                (2)  adopt rules [bylaws] for the regulation of its

67-21    affairs and the conduct of its business;

67-22                (3)  with the concurrence of the commission, employ an

67-23    administrative head, who serves at the pleasure of the board and

67-24    who must be compensated on a level not lower than the level on

67-25    which a deputy executive director of the department is compensated;

 68-1    and

 68-2                (4)  undertake such other duties as are delegated to it

 68-3    by the commission.

 68-4          (b)  The authority may:

 68-5                (1) [(2)  adopt an official seal;]

 68-6                [(3)]  construct, maintain, repair, and operate

 68-7    turnpike projects in this state;

 68-8                (2) [(4)]  acquire, hold, and dispose of property in

 68-9    the exercise of its powers and the performance of its duties under

68-10    this chapter;

68-11                (3)  with the approval of the governor and the

68-12    commission, [(5)] enter into contracts or operating agreements with

68-13    similar authorities or agencies of another state, including a state

68-14    of the United Mexican States;

68-15                (4) [(6)]  enter into contracts or agreements necessary

68-16    or incidental to its duties and powers under this chapter;

68-17                (5) [(7)]  employ consulting engineers, [attorneys,]

68-18    accountants, construction and financial experts, superintendents,

68-19    managers, and other employees and agents the authority considers

68-20    necessary and set their compensation;

68-21                (6)  employ attorneys to advance or defend legal

68-22    actions pertaining to the division's activities, notwithstanding

68-23    any other law to the contrary, including Section 402.0212,

68-24    Government Code;

68-25                (7) [(8)]  receive grants for the construction of a

 69-1    turnpike project and receive contributions of money, property,

 69-2    labor, or other things of value from any source to be used for the

 69-3    purposes for which the grants or contributions are made;

 69-4                (8) [(9)]  adopt and enforce rules, if the commission

 69-5    concurs, not inconsistent with this chapter for the use of any

 69-6    turnpike project; and

 69-7                (9) [(10)]  do all things necessary or appropriate to

 69-8    carry out the powers expressly granted by this chapter.

 69-9          SECTION 7.08.  Section 361.055, Transportation Code, is

69-10    amended to read as follows:

69-11          Sec. 361.055.  SUCCESSOR AGENCY TO AUTHORITY.  The following

69-12    are considered successor agencies to the Texas Turnpike Authority

69-13    [authority] for purposes of Section 52-b, Article III, Texas

69-14    Constitution:

69-15                (1)  a county, municipality, or local government

69-16    corporation that leases, buys, operates, or otherwise receives a

69-17    turnpike project under Subchapter H;

69-18                (2)  a county with a population of more than 1.5

69-19    million that constructs a toll road, toll bridge, or turnpike

69-20    project;

69-21                (3)  a local government corporation serving a county

69-22    with a population of more than 1.5 million that constructs a toll

69-23    road, toll bridge, or turnpike project; [and]

69-24                (4)  an adjacent county in a joint turnpike authority

69-25    with a county with a population of more than 1.5 million that

 70-1    constructs a toll road, toll bridge, or turnpike project;

 70-2                (5)  the department; and

 70-3                (6)  a public or private entity authorized to receive

 70-4    funds from the department for the construction, maintenance, or

 70-5    operation of toll projects.

 70-6          SECTION 7.09.  Section 361.132, Transportation Code, is

 70-7    amended to read as follows:

 70-8          Sec. 361.132.  ACQUISITION OF PROPERTY.  (a)  The board

 70-9    [authority] may acquire, in the name of the state, [authority]

70-10    public or private real property it determines necessary or

70-11    convenient for the construction, expansion, enlargement, extension,

70-12    improvement, or operation of a turnpike project or for otherwise

70-13    carrying out this chapter.

70-14          (b)  The real property the authority may acquire under this

70-15    subchapter includes:

70-16                (1)  public parks, playgrounds, or reservations;

70-17                (2)  parts of or rights in public parks, playgrounds,

70-18    or reservations;

70-19                (3)  rights-of-way;

70-20                (4)  property rights, including:

70-21                      (A)  a right of ingress or egress; and

70-22                      (B)  a reservation right in real property that

70-23    restricts or prohibits for not more than seven years the:

70-24                            (i)  addition of a new improvement on the

70-25    real property;

 71-1                            (ii)  addition to or modification of an

 71-2    existing improvement on the real property; or

 71-3                            (iii)  subdivision of the real property;

 71-4                (5)  franchises;

 71-5                (6)  easements; and

 71-6                (7)  other interests in real property.

 71-7          (c)  The board [authority] may acquire the real property by

 71-8    any method, including purchase and condemnation.  The board

 71-9    [authority] may purchase public or private real property on the

71-10    terms and at the price the board [authority] and the owner consider

71-11    reasonable.

71-12          (d)  Property necessary or convenient for the construction or

71-13    operation of a turnpike project under Subsection (a) includes an

71-14    interest in real property, a property right, or materials that the

71-15    authority determines are necessary or convenient to:

71-16                (1)  protect a turnpike project;

71-17                (2)  drain a turnpike project;

71-18                (3)  divert a stream, river, or other watercourse from

71-19    the right-of-way of a turnpike project;

71-20                (4)  store materials or equipment used in the

71-21    construction or maintenance of a turnpike project;

71-22                (5)  construct or operate a warehouse or other facility

71-23    used in connection with the construction, maintenance, or operation

71-24    of a turnpike project;

71-25                (6)  lay out, construct, or maintain a roadside park;

 72-1                (7)  lay out, construct, or maintain a parking lot that

 72-2    will contribute to the maximum use of a turnpike project with the

 72-3    least possible congestion;

 72-4                (8)  mitigate an adverse environmental effect that

 72-5    directly results from the construction or maintenance of a turnpike

 72-6    project; or

 72-7                (9)  accomplish any other purpose related to the

 72-8    location, construction, improvement, maintenance, beautification,

 72-9    preservation, or operation of a turnpike project.

72-10          (e)  The authority shall comply with all relocation

72-11    assistance procedures applicable to the department in connection

72-12    with any displacement of owners or tenants as a consequence of the

72-13    authority's acquisition of real property under this chapter.

72-14          (f)  The authority may acquire timber, earth, stone, gravel,

72-15    or other materials as necessary to carry out a purpose under this

72-16    chapter.

72-17          SECTION 7.10.  Section 361.135, Transportation Code, is

72-18    amended to read as follows:

72-19          Sec. 361.135.  CONDEMNATION OF REAL PROPERTY.  (a)  The

72-20    board, with the concurrence of the commission, [authority] may

72-21    acquire public or private real property in the name of the state

72-22    [authority] by the exercise of the power of condemnation under the

72-23    laws applicable to the exercise of that power on property for

72-24    public use if:

72-25                (1)  the authority and the owner cannot agree on a

 73-1    reasonable price for the property; or

 73-2                (2)  the owner is legally incapacitated, absent,

 73-3    unknown, or unable to convey title.

 73-4          (b)  The board, with the concurrence of the commission, [To

 73-5    the extent provided by Subsection (c), the authority] may condemn

 73-6    real property that the authority determines is:

 73-7                (1)  necessary or appropriate to construct or to

 73-8    efficiently operate a turnpike project;

 73-9                (2)  necessary to restore public or private property

73-10    damaged or destroyed; [or]

73-11                (3)  necessary for access, approach, and interchange

73-12    roads;

73-13                (4)  necessary for supplemental facilities of the

73-14    authority; or

73-15                (5)  necessary otherwise to carry out this chapter.

73-16          (c)  [The authority may condemn real property necessary for

73-17    access, approach, and interchange roads but may not condemn

73-18    property:]

73-19                [(1)  that is unnecessary for road and right-of-way

73-20    purposes; or]

73-21                [(2)  that is for a supplemental facility for another

73-22    purpose.]

73-23          [(d)  The authority may construct a supplemental facility

73-24    only on real property the authority purchases.]

73-25          [(e)]  The court having jurisdiction of a condemnation

 74-1    proceeding may:

 74-2                (1)  make orders as are just to the authority and the

 74-3    owners of the real property; and

 74-4                (2)  require an undertaking or other security to secure

 74-5    the owners against any loss or damage by reason of the board's

 74-6    [authority's] failure to accept and pay for the real property.

 74-7          (d) [(f)]  An undertaking or security under Subsection (c)(2)

 74-8    [(e)(2)] or an act or obligation of the authority or the board does

 74-9    not impose any liability on the state, [or] the authority, or the

74-10    board except liability that may be paid from the money authorized

74-11    by this chapter.

74-12          SECTION 7.11.  Section 361.136, Transportation Code, is

74-13    amended to read as follows:

74-14          Sec. 361.136.  SEVERANCE OF REAL PROPERTY.  (a)  If a

74-15    turnpike project severs an owner's real property, the authority

74-16    shall pay:

74-17                (1)  the value of the property acquired; and

74-18                (2)  the damages to the remainder of the owner's

74-19    property caused by the severance, including damages caused by the

74-20    inaccessibility of one tract from the other.

74-21          (b)  [The authority shall provide and maintain without charge

74-22    a passageway over or under the turnpike project for the owner of

74-23    the severed real property and the owner's employees and

74-24    representatives.  The authority is not required to furnish a

74-25    passageway if the owner waives the requirement or the original

 75-1    tract involved is less than 80 acres.]

 75-2          [(c)]  The authority may negotiate for and purchase the

 75-3    severed real property or either part of the severed real property

 75-4    if the authority and the owner agree on terms for the purchase.

 75-5    [The authority shall sell and dispose of severed real property

 75-6    within two years after the date of acquisition.]

 75-7          SECTION 7.12.  Subchapter D, Chapter 361, Transportation

 75-8    Code, is amended by adding Section 361.142 to read as follows:

 75-9          Sec. 361.142.  COVENANTS, CONDITIONS, RESTRICTIONS, OR

75-10    LIMITATIONS.  Covenants, conditions, restrictions, or limitations

75-11    affecting property acquired in any manner by the authority are not

75-12    binding against the authority and do not impair the authority's

75-13    ability to use the property for a purpose authorized by this

75-14    chapter.  The beneficiaries of the covenants, conditions,

75-15    restrictions, or limitations are not entitled to enjoin the

75-16    authority from using the property for a purpose authorized under

75-17    this chapter, but this section does not affect the right of a

75-18    person to seek damages to the person's property under Section 17,

75-19    Article I, Texas Constitution.

75-20          SECTION 7.13.  Section 361.180, Transportation Code, is

75-21    amended to read as follows:

75-22          Sec. 361.180.  TOLLS ON CONVERTED HIGHWAYS [PROHIBITION ON

75-23    TOLLS ON EXISTING FREE HIGHWAYS].  If converted to a toll facility

75-24    under Section 222.102 or 362.0041, the commission [The authority]

75-25    may impose a toll for transit over an existing free public highway

 76-1    [only if such highway is transferred to the authority by the

 76-2    commission under Section 362.0041].

 76-3          SECTION 7.14.  Subsection (b), Section 361.184,

 76-4    Transportation Code, is amended to read as follows:

 76-5          (b)  The board [authority] may transfer, or direct the

 76-6    authority to transfer, into the project revolving fund money from

 76-7    any permissible source, including:

 76-8                (1)  money from a surplus fund established for a

 76-9    turnpike project if the remainder of the surplus fund is not less

76-10    than any minimum amount required by the trust agreement to be

76-11    retained for that project;

76-12                (2)  money received under Subchapter I or from a

76-13    transfer of a turnpike project under Subchapter H;

76-14                (3)  advances from the state highway fund [department

76-15    authorized under Section 52-b, Article III, Texas Constitution];

76-16    and

76-17                (4)  contributions or assistance from the United

76-18    States, another state, a political subdivision of this state, the

76-19    United Mexican States, or a political subdivision of the United

76-20    Mexican States.

76-21          SECTION 7.15.  Section 361.189, Transportation Code, is

76-22    amended to read as follows:

76-23          Sec. 361.189.  USE OF SURPLUS REVENUE.  [(a)]  The commission

76-24    [board] by resolution may authorize the use of surplus revenue of a

76-25    turnpike project to pay the costs of another turnpike project,

 77-1    other than a project financed under Subchapter I, or a toll-free

 77-2    project.  The commission [board] may in the resolution prescribe

 77-3    terms for the use of the revenue, including the pledge of the

 77-4    revenue, but may not take an action under this section that[:]

 77-5                [(1)  violates Subsection (b); or]

 77-6                [(2)]  violates, impairs, or is inconsistent with a

 77-7    bond resolution, trust agreement, or indenture governing the use of

 77-8    the surplus revenue.

 77-9          [(b)  Except as provided by Subsection (c), the surplus

77-10    revenue of a turnpike project that was under construction or

77-11    operated by the authority on January 1, 1993, may be used only for:]

77-12                [(1)  the costs associated with the construction,

77-13    expansion, or maintenance of the project producing the revenue; and]

77-14                [(2)  transfers to the Texas Turnpike Authority

77-15    feasibility study fund.]

77-16          [(c)  The board may use revenue from a turnpike project

77-17    described by Subsection (b) for a purpose authorized by this

77-18    chapter other than a purpose described by that subsection if:]

77-19                [(1)  the authority obtains the permission of the

77-20    commissioners court of each county in which the project is located;

77-21    or]

77-22                [(2)  an agreement between the authority and a county

77-23    or local government corporation created by the county for the

77-24    lease, sale, or other conveyance of the project permits the revenue

77-25    to be used for another purpose.]

 78-1          SECTION 7.16.  Section 361.232, Transportation Code, is

 78-2    amended by adding Subsection (e) to read as follows:

 78-3          (e)  This section does not apply to the conversion of any

 78-4    highway that is a part of the state highway system to a turnpike

 78-5    project.

 78-6          SECTION 7.17.  Section 361.237, Transportation Code, is

 78-7    amended to read as follows:

 78-8          Sec. 361.237.  OPERATION OF TURNPIKE PROJECT.  A turnpike

 78-9    project is a public road subject to all laws applicable to the

78-10    regulation and control of traffic [(a)  The authority shall police

78-11    and operate a turnpike project through a force of police,

78-12    toll-takers, and other employees of the authority.]

78-13          [(b)  The authority may arrange with the Department of Public

78-14    Safety for the services of officers of that agency].

78-15          SECTION 7.18.  Section 361.238, Transportation Code, is

78-16    amended to read as follows:

78-17          Sec. 361.238.  PAYMENT OF BOND INDEBTEDNESS; CESSATION OR

78-18    CONTINUATION OF TOLLS[; TRANSFER OF PROJECT TO COMMISSION].

78-19    (a)  Except as provided by Subsection (b), a [A] turnpike project

78-20    [that is in good condition and repair to the satisfaction of the

78-21    commission] becomes a toll-free [part of the state] highway

78-22    [system] when:

78-23                (1)  the bonds issued under this chapter for the

78-24    project and the interest on the bonds are paid; or

78-25                (2)  firm banking and financial arrangements have been

 79-1    made for the discharge and final payment or redemption of the bonds

 79-2    in accordance with Section 7A, Chapter 503, Acts of the 54th

 79-3    Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes) [a

 79-4    sufficient amount to pay the bonds and the interest on the bonds to

 79-5    maturity or to redeem the bonds has been set aside in trust for the

 79-6    benefit of the bondholders].

 79-7          (b)  If the conditions of Subsections (a)(1) and (2) are met,

 79-8    the commission may continue to charge a toll sufficient to pay the

 79-9    costs of maintaining the facility.  [The authority shall continue

79-10    to operate as a toll facility a turnpike project that the

79-11    commission determines is not in a state of repair so as to justify

79-12    its acceptance as part of the state highway system.  The authority

79-13    shall continue the tolls then in effect or revise the tolls to

79-14    provide money sufficient to assure payment of the expenses of

79-15    maintenance and operation and the making of repairs and

79-16    replacements as necessary to meet the minimum requirements of the

79-17    commission within the shortest practicable time.]

79-18          [(c)  The commission shall maintain a turnpike project it

79-19    accepts free of tolls.  The authority shall deliver to the

79-20    commission at the time of acceptance any money remaining to the

79-21    credit of the project after retirement of the bonds issued for the

79-22    project.  The commission shall deposit the money in a fund to be

79-23    used to maintain the project facilities.  The commission shall

79-24    administer the fund in accordance with commission rules.]

79-25          [(d)  Not later than the first anniversary of the date the

 80-1    commission accepts a turnpike project, the department shall

 80-2    advertise for public sale each installation on the project other

 80-3    than the road bed and highway sections and shall solicit sealed

 80-4    bids for those installations.  The department may reject any or all

 80-5    bids but shall dispose of the properties not later than the second

 80-6    anniversary of the date the commission accepts title to the

 80-7    project.]

 80-8          SECTION 7.19.  The heading of Subchapter H, Chapter 361,

 80-9    Transportation Code, is amended to read as follows:

80-10              SUBCHAPTER H.  TRANSFER OF TURNPIKE PROJECT TO

80-11           COUNTY, MUNICIPALITY, REGIONAL TOLLWAY AUTHORITY, OR

80-12                       LOCAL GOVERNMENT CORPORATION

80-13          SECTION 7.20.  Sections 361.281, 361.282, and 361.285,

80-14    Transportation Code, are amended to read as follows:

80-15          Sec. 361.281.  APPLICABILITY OF SUBCHAPTER.  This subchapter

80-16    applies only to:

80-17                (1)  a county with a population of more than 1.5

80-18    million;

80-19                (2)  a local government corporation serving a county

80-20    with a population of more than 1.5 million; [or]

80-21                (3)  an adjacent county in a joint turnpike authority

80-22    with a county with a population of more than 1.5 million;

80-23                (4)  a municipality with a population of more than

80-24    120,000 that is adjacent to the United Mexican States; or

80-25                (5)  a regional tollway authority created under Chapter

 81-1    366.

 81-2          Sec. 361.282.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

 81-3    PROJECT.  (a)  The authority may lease, sell, or convey in another

 81-4    manner a turnpike project to a county, municipality, regional

 81-5    tollway authority, or a local government corporation created under

 81-6    Chapter 431.

 81-7          (b)  The authority, the commission, and the governor must

 81-8    approve the transfer of the turnpike project as being in the best

 81-9    interests of the state and the entity receiving the turnpike

81-10    project [county].

81-11          Sec. 361.285.  APPROVAL OF AGREEMENT BY ATTORNEY GENERAL.

81-12    (a)  An agreement for the lease, sale, or conveyance of a turnpike

81-13    project under this subchapter shall be submitted to the attorney

81-14    general for approval as part of the records of proceedings relating

81-15    to the issuance of bonds of the county, municipality, regional

81-16    tollway authority, or local government corporation.

81-17          (b)  If the attorney general determines that the agreement is

81-18    in accordance with law, the attorney general shall approve the

81-19    agreement and deliver to the commission a copy of the legal opinion

81-20    of the attorney general stating that approval.

81-21          SECTION 7.21.  Subsection (a), Section 361.331,

81-22    Transportation Code, is amended to read as follows:

81-23          (a)  The authority may designate two or more turnpike

81-24    projects that are wholly or partly located in a metropolitan

81-25    planning organization [planning region of a council of governments]

 82-1    as a pooled turnpike project after:

 82-2                (1)  conducting a public hearing; and

 82-3                (2)  obtaining the approval of the commission[; and]

 82-4                [(3)  obtaining a resolution adopted by the

 82-5    commissioners court of the county that:]

 82-6                      [(A)  approves the action; and]

 82-7                      [(B)  specifies the date the pooled project

 82-8    becomes toll free].

 82-9          SECTION 7.22.  Section 362.0041, Transportation Code, is

82-10    amended to read as follows:

82-11          Sec. 362.0041.  CONVERSION [ACQUISITION] OF PROJECTS.

82-12    (a)  If the commission finds that the conversion of a segment of

82-13    the free state highway system to a toll facility is the most

82-14    feasible and economic means to accomplish necessary expansion

82-15    improvements, or extensions to the state highway system, that

82-16    segment may[, on approval of the governor,] be converted

82-17    [transferred] by order of the commission to [the authority.  The

82-18    authority may receive such segment of highway, thereafter to be

82-19    owned, operated, and maintained as] a turnpike project under

82-20    Chapter 361.

82-21          (b)  [The authority shall reimburse the commission for the

82-22    cost of the transferred highway, unless the commission finds that

82-23    the transfer will result in substantial net benefits to the state,

82-24    the department, and the traveling public that exceed that cost.

82-25    The cost shall include the total dollar amount expended by the

 83-1    department for the original construction of the highway, including

 83-2    all costs associated with the preliminary engineering and design

 83-3    engineering for plans, specifications, and estimates, the

 83-4    acquisition of necessary right-of-way, and actual construction of

 83-5    the highway and all necessary appurtenant facilities.]

 83-6          [(c)  The commission shall, coincident with the transfer,

 83-7    remove the segment of highway from the designated state highway

 83-8    system and shall subsequently have no liability, responsibility, or

 83-9    duty for the maintenance or operation of the highway.]

83-10          [(d)]  Prior to converting [transferring] a segment of the

83-11    state highway system under this section, the commission shall

83-12    conduct a public hearing for the purpose of receiving comments from

83-13    interested persons concerning the proposed transfer.  Notice of the

83-14    hearing shall be published in the Texas Register, one or more

83-15    newspapers of general circulation, and a newspaper, if any,

83-16    published in the county or counties in which the involved highway

83-17    is located.

83-18          (c) [(e)]  The commission shall adopt rules implementing this

83-19    section, such rules to include criteria and guidelines for the

83-20    approval of a conversion [transfer] of a highway.

83-21          SECTION 7.23.  Subtitle G, Title 6, Transportation Code, is

83-22    amended by adding Chapter 366 to read as follows:

83-23                CHAPTER 366.  REGIONAL TOLLWAY AUTHORITIES

83-24                     SUBCHAPTER A.  GENERAL PROVISIONS

83-25          Sec. 366.001.  SHORT TITLE.  This chapter may be cited as the

 84-1    Regional Tollway Authority Act.

 84-2          Sec. 366.002.  PURPOSES; LIBERAL CONSTRUCTION.  (a)  The

 84-3    purposes of this chapter are:

 84-4                (1)  the expansion and improvement of transportation

 84-5    facilities and systems in this state;

 84-6                (2)  the creation of regional tollway authorities to

 84-7    secure and acquire rights-of-way for urgently needed transportation

 84-8    systems and to plan, design, construct, operate, expand, extend,

 84-9    and modify those systems; and

84-10                (3)  the reduction of burdens and demands on the

84-11    limited money available to the commission and an increase in the

84-12    effectiveness and efficiency of the commission.

84-13          (b)  This chapter shall be liberally construed to effect its

84-14    purposes.

84-15          Sec. 366.003.  DEFINITIONS.  In this chapter:

84-16                (1)  "Authority" means a regional tollway authority

84-17    organized under this chapter.

84-18                (2)  "Board" means the board of directors of an

84-19    authority organized under this chapter.

84-20                (3)  "Bond" means all bonds, certificates, notes, and

84-21    other obligations of an authority authorized by this chapter, any

84-22    other statute, or the Texas Constitution.

84-23                (4)  "Bond proceedings" means a bond resolution and any

84-24    bond indenture authorized by the bond resolution, any credit

84-25    agreement entered into in connection with the bonds or the payments

 85-1    to be made under the agreement, and any other agreement between an

 85-2    authority and another person providing security for the payment of

 85-3    bonds.

 85-4                (5)  "Bond resolution" means an order or resolution of

 85-5    an authority's board authorizing the issuance of bonds.

 85-6                (6)  "Bondholder" means the owner of bonds and includes

 85-7    a trustee acting on behalf of an owner of bonds under the terms of

 85-8    a bond indenture.

 85-9                (7)  "Highway" means a road, highway, farm-to-market

85-10    road, or street under the supervision of the state or a political

85-11    subdivision of the state.

85-12                (8)  "Local governmental entity" means a political

85-13    subdivision of the state, including a municipality or a county, a

85-14    political subdivision of a county, a group of adjoining counties, a

85-15    district organized or operating under Section 52, Article III, or

85-16    Section 59, Article XVI, Texas Constitution, or a nonprofit

85-17    corporation, including a transportation corporation created under

85-18    Chapter 431.

85-19                (9)  "Revenue" means the tolls, rents, and other money

85-20    received by an authority from the ownership or operation of a

85-21    turnpike project.

85-22                (10)  "System" means a turnpike project or any

85-23    combination of turnpike projects designated as a system by the

85-24    board under Section 366.034.

85-25                (11)  "Turnpike project" means a highway of any number

 86-1    of lanes, with or without grade separations, owned or operated by

 86-2    an authority under this chapter and any improvement, extension, or

 86-3    expansion to that highway, including:

 86-4                      (A)  an improvement to relieve traffic congestion

 86-5    and promote safety;

 86-6                      (B)  a bridge, tunnel, overpass, underpass,

 86-7    interchange, service road, ramp, entrance plaza, approach, or

 86-8    tollhouse;

 86-9                      (C)  an administration, storage, or other

86-10    building the authority considers necessary to operate the turnpike

86-11    project;

86-12                      (D)  a service station, hotel, motel, restaurant,

86-13    parking area or structure, rest stop, park, and other improvement

86-14    or amenity the authority considers necessary, useful, or beneficial

86-15    for the operation of a turnpike project; and

86-16                      (E)  property rights, easements, and interests

86-17    the authority acquires to construct or operate the turnpike

86-18    project.

86-19          Sec. 366.004.  CONSTRUCTION COSTS DEFINED.  (a)  The cost of

86-20    acquisition, construction, improvement, extension, or expansion of

86-21    a turnpike project or system under this chapter includes the cost

86-22    of:

86-23                (1)  the actual acquisition, construction, improvement,

86-24    extension, or expansion of the turnpike project or system;

86-25                (2)  the acquisition of real property, rights-of-way,

 87-1    property rights, easements, and other interests in real property;

 87-2                (3)  machinery and equipment;

 87-3                (4)  interest payable before, during, and after

 87-4    acquisition, construction, improvement, extension, or expansion as

 87-5    provided in the bond proceedings;

 87-6                (5)  traffic estimates, revenue estimates, engineering

 87-7    and legal services, plans, specifications, surveys, appraisals,

 87-8    construction cost estimates, and other expenses necessary or

 87-9    incidental to determining the feasibility of the construction,

87-10    improvement, extension, or expansion;

87-11                (6)  necessary or incidental administrative, legal, and

87-12    other expenses;

87-13                (7)  compliance with laws, regulations, and

87-14    administrative rulings;

87-15                (8)  financing; and

87-16                (9)  expenses related to the initial operation of the

87-17    turnpike project or system.

87-18          (b)  Costs attributable to a turnpike project or system and

87-19    incurred before the issuance of bonds to finance the turnpike

87-20    project or system may be reimbursed from the proceeds of sale of

87-21    the bonds.

87-22             (Sections 366.005-366.030 reserved for expansion

87-23              SUBCHAPTER B.  CREATION AND POWERS OF REGIONAL

87-24                            TOLLWAY AUTHORITIES

87-25          Sec. 366.031.  CREATION AND EXPANSION OF A REGIONAL TOLLWAY

 88-1    AUTHORITY.  (a)  Two or more counties, acting through their

 88-2    respective commissioners courts, may by order passed by each

 88-3    commissioners court create a regional tollway authority under this

 88-4    chapter if:

 88-5                (1)  one of the counties has a population of not less

 88-6    than 500,000, except that for a county bordering the Gulf of Mexico

 88-7    or a bay or inlet opening into the gulf or for a county bordering

 88-8    the United Mexican States the population may be not less than

 88-9    300,000;

88-10                (2)  the counties form a contiguous territory; and

88-11                (3)  unless one of the counties has a population of 1.5

88-12    million or more, the commission approves the creation.

88-13          (b)  The commission shall adopt rules to implement the

88-14    provisions of this section by March 1, 1998.

88-15          (c)  A commissioners court may by resolution petition an

88-16    established authority for inclusion in the authority if the county

88-17    is contiguous to a county that initially created the authority.

88-18          (d)  On approval of the board of an authority receiving a

88-19    petition under Subsection (c), the county becomes part of the

88-20    authority.

88-21          Sec. 366.032.  NATURE OF REGIONAL TOLLWAY AUTHORITY.  (a)  An

88-22    authority created under this chapter is a body politic and

88-23    corporate and a political subdivision of this state.

88-24          (b)  An authority is a governmental unit as that term is

88-25    defined in Chapter 101, Civil Practice and Remedies Code.

 89-1          (c)  The exercise by an authority of the powers conferred by

 89-2    this chapter in the acquisition, design, financing, construction,

 89-3    operation, and maintenance of a turnpike project or system is:

 89-4                (1)  in all respects for the benefit of the people of

 89-5    the counties in which an authority operates and of the people of

 89-6    this state, for the increase of their commerce and prosperity, and

 89-7    for the improvement of their health, living conditions, and public

 89-8    safety; and

 89-9                (2)  an essential governmental function of the state.

89-10          (d)  The operations of an authority are governmental, not

89-11    proprietary, functions.

89-12          Sec. 366.033.  GENERAL POWERS.  (a)  An authority, acting

89-13    through its board, without state approval, supervision, or

89-14    regulation, may:

89-15                (1)  adopt rules for the regulation of its affairs and

89-16    the conduct of its business;

89-17                (2)  adopt an official seal;

89-18                (3)  study, evaluate, design, acquire, construct,

89-19    maintain, repair, and operate turnpike projects, individually or as

89-20    one or more systems;

89-21                (4)  acquire, hold, and dispose of property in the

89-22    exercise of its powers and the performance of its duties under this

89-23    chapter;

89-24                (5)  enter into contracts or operating agreements with

89-25    similar authorities or agencies of the United States, a state of

 90-1    the United States, the United Mexican States, or a state of the

 90-2    United Mexican States;

 90-3                (6)  enter into contracts or agreements necessary or

 90-4    incidental to its duties and powers under this chapter;

 90-5                (7)  cooperate and work directly with property owners

 90-6    and governmental agencies and officials to support an activity

 90-7    required to promote or develop a turnpike project or system;

 90-8                (8)  employ and set the compensation of administrators,

 90-9    consulting engineers, attorneys, accountants, construction and

90-10    financial experts, superintendents, managers, full-time and

90-11    part-time employees, agents, consultants, and such other persons as

90-12    the authority considers necessary or useful;

90-13                (9)  receive loans, gifts, grants, and other

90-14    contributions for the construction of a turnpike project or system

90-15    and receive contributions of money, property, labor, or other

90-16    things of value from any source, including the United States, a

90-17    state of the United States, the United Mexican States, a state of

90-18    the United Mexican States, the commission, the department, any

90-19    subdivision of the state, or any other local governmental or

90-20    private entity, to be used for the purposes for which the grants or

90-21    contributions are made, and enter into any agreement necessary for

90-22    the grants or contributions;

90-23                (10)  install, construct, maintain, repair, renew,

90-24    relocate, and remove public utility facilities in, on, along, over,

90-25    or under a turnpike project;

 91-1                (11)  organize a corporation under Chapter 431 for the

 91-2    promotion and development of turnpike projects and systems;

 91-3                (12)  adopt and enforce rules not inconsistent with

 91-4    this chapter for the use of any turnpike project or system,

 91-5    including traffic and other public safety rules;

 91-6                (13)  enter into leases, operating agreements, service

 91-7    agreements, licenses, franchises, and similar agreements with

 91-8    public or private parties governing the parties' use of all or any

 91-9    portion of a turnpike project and the rights and obligations of the

91-10    authority with respect to a turnpike project; and

91-11                (14)  do all things necessary or appropriate to carry

91-12    out the powers expressly granted by this chapter.

91-13          (b)  Property comprising a part of a turnpike project or a

91-14    system is not subject to condemnation or the power of eminent

91-15    domain by any person, including a governmental entity.

91-16          (c)  An authority may, if requested by the commission,

91-17    perform any function not specified by this chapter to promote or

91-18    develop turnpike projects and systems in this state.

91-19          (d)  An authority may sue and be sued and plead and be

91-20    impleaded in its own name.

91-21          (e)  An authority may rent, lease, franchise, license, or

91-22    otherwise make portions of its properties available for use by

91-23    others in furtherance of its powers under this chapter by

91-24    increasing the feasibility or the revenue of a turnpike project or

91-25    system.

 92-1          (f)  An authority and any local governmental entity may enter

 92-2    into a contract under which the authority will operate a turnpike

 92-3    project or system on behalf of the local governmental entity.  The

 92-4    payments to be made to an authority under the contract shall

 92-5    constitute operating expenses of the facility or system that is to

 92-6    be operated under the contract, and the contract may extend for a

 92-7    number of years as the parties agree.

 92-8          (g)  An authority shall adopt a written drug and alcohol

 92-9    policy restricting the use of controlled substances by employees of

92-10    the authority, prohibiting the consumption of alcoholic beverages

92-11    by employees while on duty, and prohibiting employees from working

92-12    for the authority while under the influence of controlled

92-13    substances or alcohol.  An authority may adopt policies regarding

92-14    the testing of employees suspected of being in violation of the

92-15    authority's drug and alcohol policy.  The policy shall provide

92-16    that, unless required by court order or permitted by the person who

92-17    is the subject of the testing, the authority shall keep the results

92-18    of the test confidential.

92-19          Sec. 366.034.  ESTABLISHMENT OF TURNPIKE SYSTEMS.  (a)  If an

92-20    authority determines that the traffic needs of the counties in

92-21    which it operates and the traffic needs of the surrounding region

92-22    could be most efficiently and economically met by jointly operating

92-23    two or more turnpike projects as one operational and financial

92-24    enterprise, it may create a system comprised of those turnpike

92-25    projects.  An authority may create more than one system and may

 93-1    combine two or more systems into one system.  An authority may

 93-2    finance, acquire, construct, and operate additional turnpike

 93-3    projects as additions to and expansions of a system if the

 93-4    authority determines that the turnpike project could most

 93-5    efficiently and economically be acquired and constructed if it were

 93-6    a part of the system and that the addition will benefit the system.

 93-7          (b)  The revenue of a system shall be accounted for

 93-8    separately and may not be commingled with the revenue of a turnpike

 93-9    project that is not a part of the system or with the revenue of

93-10    another system.

93-11          Sec. 366.035.  CONVERSION OF STATE HIGHWAY SYSTEM PROJECTS.

93-12    (a)  If the commission determines that the most feasible and

93-13    economic means to accomplish necessary expansion, improvements, or

93-14    extensions to the state highway system is the conversion to a

93-15    turnpike project of a segment of the free state highway system, any

93-16    segment located in a county of an authority or a county in which an

93-17    authority operates a turnpike project or in any county adjacent to

93-18    those counties may, on approval of the governor and the affected

93-19    authority, be transferred by order of the commission to that

93-20    authority.  An authority that receives the segment of highway may

93-21    own, operate, and maintain the segment as a turnpike project or

93-22    system or a part of a turnpike project or system under this

93-23    chapter.

93-24          (b)  An authority shall reimburse the commission for the cost

93-25    of a transferred highway, unless the commission determines that the

 94-1    transfer will result in substantial net benefits to the state, the

 94-2    department, and the traveling public that exceed that cost.  The

 94-3    cost includes the total amount expended by the department for the

 94-4    original construction of the highway, including all costs

 94-5    associated with the preliminary engineering and design engineering

 94-6    for plans, specifications, and estimates, the acquisition of

 94-7    necessary rights-of-way, and actual construction of the highway and

 94-8    all necessary appurtenant facilities.  Costs anticipated to be

 94-9    expended to expand, improve, or extend the highway shall be

94-10    deducted from the costs to be reimbursed to the commission.

94-11          (c)  The commission shall, at the time of a transfer, remove

94-12    the segment of highway from the state highway system.  After a

94-13    transfer the commission has no liability, responsibility, or duty

94-14    for the maintenance or operation of the highway.

94-15          (d)  Before transferring a segment of the state highway

94-16    system under this section, the commission shall conduct a public

94-17    hearing to receive comments from interested persons concerning the

94-18    proposed transfer.  Notice of the hearing must be published in the

94-19    Texas Register, one or more newspapers of general circulation in

94-20    the counties in which the segment is located, and a newspaper, if

94-21    any, published in the counties of the applicable authority.

94-22          (e)  The commission shall adopt rules implementing this

94-23    section.  The rules shall include criteria and guidelines for the

94-24    approval of a transfer of a highway.

94-25          (f)  An authority shall adopt rules providing criteria and

 95-1    guidelines for approving the acceptance of a highway under this

 95-2    section.

 95-3             (Sections 366.036-366.070 reserved for expansion

 95-4         SUBCHAPTER C.  FEASIBILITY OF REGIONAL TURNPIKE PROJECTS

 95-5          Sec. 366.071.  EXPENDITURES FOR FEASIBILITY STUDIES.  (a)  An

 95-6    authority may pay the expenses of studying the cost and feasibility

 95-7    and any other expenses relating to the preparation and issuance of

 95-8    bonds for a proposed turnpike project or system by:

 95-9                (1)  using legally available revenue derived from an

95-10    existing turnpike project or system;

95-11                (2)  borrowing money and issuing bonds or entering into

95-12    a loan agreement payable out of legally available revenue

95-13    anticipated to be derived from the operation of an existing

95-14    turnpike project or system; or

95-15                (3)  pledging to the payment of the bonds or loan

95-16    agreements legally available revenue anticipated to be derived from

95-17    the operation of an existing turnpike project or system or revenue

95-18    legally available to the authority from another source.

95-19          (b)  Money spent under this section for a proposed turnpike

95-20    project or system must be reimbursed to the turnpike project or

95-21    system from which the money was spent from the proceeds of bonds

95-22    issued for the acquisition and construction of the proposed

95-23    turnpike project or system.

95-24          (c)  The use of any money of a turnpike project or system to

95-25    study the feasibility of another turnpike project or system or used

 96-1    to repay any money used for that purpose does not constitute an

 96-2    operating expense of the turnpike project or system producing the

 96-3    revenue and may only be paid from the surplus money of the turnpike

 96-4    project or system.

 96-5          Sec. 366.072.  FEASIBILITY STUDY FUND.  (a)  An authority may

 96-6    maintain a feasibility study fund.  The fund is a revolving fund

 96-7    held in trust by a banking institution chosen by the authority and

 96-8    shall be kept separate from the money for any turnpike project or

 96-9    system.

96-10          (b)  An authority may transfer an amount from a surplus fund

96-11    established for a turnpike project or system to the authority's

96-12    feasibility study fund if the remainder of the surplus fund is not

96-13    less than any minimum amount required by the bond proceedings to be

96-14    retained for that turnpike project or system.

96-15          (c)  Money in the feasibility study fund may be used only to

96-16    pay the expenses of studying the cost and feasibility and any other

96-17    expenses relating to:

96-18                (1)  the preparation and issuance of bonds for the

96-19    acquisition and construction of a proposed turnpike project or

96-20    system;

96-21                (2)  the financing of the improvement, extension, or

96-22    expansion of an existing turnpike project or system; and

96-23                (3)  private participation, as authorized by law, in

96-24    the financing of a proposed turnpike project or system, the

96-25    refinancing of an existing turnpike project or system, or the

 97-1    improvement, extension, or expansion of a turnpike project or

 97-2    system.

 97-3          (d)  Money spent under Subsection (c) for a proposed turnpike

 97-4    project or system must be reimbursed from the proceeds of turnpike

 97-5    revenue bonds issued for, or other proceeds that may be used for,

 97-6    the acquisition, construction, improvement, extension, expansion,

 97-7    or operation of the turnpike project or system.

 97-8          (e)  For a purpose described by Subsection (c), an authority

 97-9    may borrow money and issue promissory notes or other

97-10    interest-bearing evidences of indebtedness payable out of its

97-11    feasibility study fund, pledging money in the fund or to be placed

97-12    in the fund.

97-13          Sec. 366.073.  FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,

97-14    OTHER LOCAL GOVERNMENTAL ENTITY, OR PRIVATE GROUP.  (a)  One or

97-15    more municipalities, counties, or local governmental entities, a

97-16    combination of municipalities, counties, and local governmental

97-17    entities, or a private group or combination of individuals in this

97-18    state may pay all or part of the expenses of studying the cost and

97-19    feasibility and any other expenses relating to:

97-20                (1)  the preparation and issuance of bonds for the

97-21    acquisition and construction of a proposed turnpike project or

97-22    system by an authority;

97-23                (2)  the improvement, extension, or expansion of an

97-24    authority's existing turnpike project or system; or

97-25                (3)  the use of private participation under applicable

 98-1    law in connection with the acquisition, construction, improvement,

 98-2    expansion, extension, maintenance, repair, or operation of a

 98-3    turnpike project or system by an authority.

 98-4          (b)  Money spent under Subsection (a) for an authority's

 98-5    proposed turnpike project or system is reimbursable without

 98-6    interest and with the consent of the authority to the person paying

 98-7    the expenses described in Subsection (a) out of the proceeds from

 98-8    turnpike revenue bonds issued for or other proceeds that may be

 98-9    used for the acquisition, construction, improvement, extension,

98-10    expansion, or operation of the turnpike project or system.

98-11             (Sections 366.074-366.110 reserved for expansion

98-12                     SUBCHAPTER D.  TURNPIKE FINANCING

98-13          Sec. 366.111.  TURNPIKE REVENUE BONDS.  (a)  An authority, by

98-14    adoption of a bond resolution, may authorize the issuance of bonds

98-15    to pay all or part of the cost of a turnpike project or system, to

98-16    refund any bonds previously issued for the turnpike project or

98-17    system, or to pay for all or part of the cost of a turnpike project

98-18    or system that will become a part of another system.

98-19          (b)  As determined in the bond resolution, the bonds of each

98-20    issue shall:

98-21                (1)  be dated;

98-22                (2)  bear interest at the rate or rates and beginning

98-23    on the dates, as authorized by law, or bear no interest;

98-24                (3)  mature at the time or times, not exceeding 40

98-25    years from their date or dates; and

 99-1                (4)  be made redeemable before maturity at the price or

 99-2    prices and under the terms provided by the bond resolution.

 99-3          (c)  An authority may sell the bonds at public or private

 99-4    sale in the manner and for the price it determines to be in the

 99-5    best interest of the authority.

 99-6          (d)  The proceeds of each bond issue shall be disbursed in

 99-7    the manner and under the restrictions, if any, the authority

 99-8    provides in the bond resolution.

 99-9          (e)  Additional bonds may be issued in the same manner to pay

99-10    the costs of a turnpike project or system.  Unless otherwise

99-11    provided in the bond resolution, the additional bonds shall be on a

99-12    parity, without preference or priority, with bonds previously

99-13    issued and payable from the revenue of the turnpike project or

99-14    system.  In addition, an authority may issue bonds for a turnpike

99-15    project or system secured by a lien on the revenue of the turnpike

99-16    project or system subordinate to the lien on the revenue securing

99-17    other bonds issued for the turnpike project or system.

99-18          (f)  If the proceeds of a bond issue exceed the cost of the

99-19    turnpike project or system for which the bonds were issued, the

99-20    surplus shall be segregated from the other money of the authority

99-21    and used only for the purposes specified in the bond resolution.

99-22          (g)  Bonds issued and delivered under this chapter and

99-23    interest coupons on the bonds are a security under Chapter 8,

99-24    Business & Commerce Code.

99-25          (h)  Bonds issued under this chapter and income from the

 100-1   bonds, including any profit made on the sale or transfer of the

 100-2   bonds, are exempt from taxation in this state.

 100-3         Sec. 366.112.  INTERIM BONDS.  (a)  An authority may, before

 100-4   issuing definitive bonds, issue interim bonds, with or without

 100-5   coupons, exchangeable for definitive bonds.

 100-6         (b)  The interim bonds may be authorized and issued in

 100-7   accordance with this chapter, without regard to the requirements,

 100-8   restrictions, or procedural provisions contained in any other law.

 100-9         (c)  A bond resolution authorizing interim bonds may provide

100-10   that the interim bonds recite that the bonds are issued under this

100-11   chapter.  The recital is conclusive evidence of the validity and

100-12   the regularity of the bonds' issuance.

100-13         Sec. 366.113.  PAYMENT OF BONDS; STATE AND COUNTY CREDIT NOT

100-14   PLEDGED.  (a)  The principal of, interest on, and any redemption

100-15   premium on bonds issued by an authority are payable solely from:

100-16               (1)  the revenue of the turnpike project or system for

100-17   which the bonds are issued, including tolls pledged to pay the

100-18   bonds;

100-19               (2)  payments made under an agreement with the

100-20   commission or a local governmental entity as provided by Subchapter

100-21   G;

100-22               (3)  money derived from any other source available to

100-23   the authority, other than money derived from a turnpike project

100-24   that is not part of the same system or money derived from a

100-25   different system, except to the extent that the surplus revenue of

 101-1   a turnpike project or system has been pledged for that purpose; and

 101-2               (4)  amounts received under a credit agreement relating

 101-3   to the turnpike project or system for which the bonds are issued.

 101-4         (b)  Bonds issued under this chapter do not constitute a debt

 101-5   of the state or any of the counties of an authority or a pledge of

 101-6   the faith and credit of the state or any of the counties.  Each

 101-7   bond must contain on its face a statement to the effect that the

 101-8   state, the authority, and the counties of the authority are not

 101-9   obligated to pay the bond or the interest on the bond from a source

101-10   other than the amount pledged to pay the bond and the interest on

101-11   the bond, and neither the faith and credit and taxing power of the

101-12   state or the counties of the authority are pledged to the payment

101-13   of the principal of or interest on the bond.

101-14         (c)  An authority may not incur financial obligations that

101-15   cannot be paid from revenue derived from owning or operating the

101-16   authority's turnpike projects and systems or from other revenue

101-17   provided by law.

101-18         Sec. 366.114.  EFFECT OF LIEN.  (a)  A lien on or a pledge of

101-19   revenue from a turnpike project or system under this chapter or on

101-20   a reserve, replacement, or other fund established in connection

101-21   with a bond issued under this chapter:

101-22               (1)  is enforceable at the time of payment for and

101-23   delivery of the bond;

101-24               (2)  applies to an item on hand or subsequently

101-25   received;

 102-1               (3)  applies without physical delivery of an item or

 102-2   other act; and

 102-3               (4)  is enforceable against any person having any

 102-4   claim, in tort, contract, or other remedy, against the applicable

 102-5   authority without regard to whether the person has notice of the

 102-6   lien or pledge.

 102-7         (b)  A bond resolution is not required to be recorded except

 102-8   in the regular records of the authority.

 102-9         Sec. 366.115.  BOND INDENTURE.  (a)  Bonds issued under this

102-10   chapter may be secured by a bond indenture between the authority

102-11   and a corporate trustee that is a trust company or a bank that has

102-12   the powers of a trust company.

102-13         (b)  A bond indenture may pledge or assign the tolls and

102-14   other revenue to be received but may not convey or mortgage any

102-15   part of a turnpike project or system.

102-16         (c)  A bond indenture may:

102-17               (1)  set forth the rights and remedies of the

102-18   bondholders and the trustee;

102-19               (2)  restrict the individual right of action by

102-20   bondholders as is customary in trust agreements or indentures of

102-21   trust securing corporate bonds and debentures; and

102-22               (3)  contain provisions the authority determines

102-23   reasonable and proper for the security of the bondholders,

102-24   including covenants:

102-25                     (A)  establishing the authority's duties relating

 103-1   to:

 103-2                           (i)  the acquisition of property;

 103-3                           (ii)  the construction, maintenance,

 103-4   operation, and repair of and insurance for a turnpike project or

 103-5   system; and

 103-6                           (iii)  custody, safeguarding, and

 103-7   application of money;

 103-8                     (B)  prescribing events that constitute default;

 103-9                     (C)  prescribing terms on which any or all of the

103-10   bonds become or may be declared due before maturity; and

103-11                     (D)  relating to the rights, powers, liabilities,

103-12   or duties that arise on the breach of an authority's duty.

103-13         (d)  The expenses incurred in carrying out a trust agreement

103-14   may be treated as part of the cost of operating the turnpike

103-15   project.

103-16         (e)  In addition to all other rights by mandamus or other

103-17   court proceeding, an owner or trustee of a bond issued under this

103-18   chapter may enforce the owner's rights against an issuing

103-19   authority, the authority's employees, the authority's board, or an

103-20   agent or employee of the authority's board and is entitled to:

103-21               (1)  require the authority and the board to impose and

103-22   collect tolls, charges, and other revenue sufficient to carry out

103-23   any agreement contained in the bond proceedings; and

103-24               (2)  apply for and obtain the appointment of a receiver

103-25   for the turnpike project or system.

 104-1         Sec. 366.116.  APPROVAL OF BONDS BY ATTORNEY GENERAL.

 104-2   (a)  An authority shall submit to the attorney general for

 104-3   examination a transcript of proceedings relating to bonds

 104-4   authorized under this chapter.  The transcript shall include the

 104-5   bond proceedings and any contract securing or providing revenue for

 104-6   the payment of the bonds.

 104-7         (b)  If the attorney general determines that the bonds, the

 104-8   bond proceedings, and any supporting contract are authorized by

 104-9   law, the attorney general shall approve the bonds and deliver to

104-10   the comptroller:

104-11               (1)  a copy of the legal opinion of the attorney

104-12   general stating the approval; and

104-13               (2)  the record of proceedings relating to the

104-14   authorization of the bonds.

104-15         (c)  On receipt of the legal opinion of the attorney general

104-16   and the record of proceedings relating to the authorization of the

104-17   bonds, the comptroller shall register the record of proceedings.

104-18         (d)  After approval by the attorney general, the bonds, the

104-19   bond proceedings, and any supporting contract are valid,

104-20   enforceable, and incontestable in any court or other forum for any

104-21   reason and are binding obligations according to their terms for all

104-22   purposes.

104-23         Sec. 366.117.  FURNISHING OF INDEMNIFYING BONDS OR PLEDGES OF

104-24   SECURITIES.  (a)  A bank or trust company incorporated under the

104-25   laws of this state that acts as depository of the proceeds of bonds

 105-1   or of revenue may furnish indemnifying bonds or pledge securities

 105-2   that an authority requires.

 105-3         (b)  Bonds of an authority may secure the deposit of public

 105-4   money of the state or a political subdivision of the state to the

 105-5   extent of the lesser of the face value of the bonds or their market

 105-6   value.

 105-7         Sec. 366.118.  APPLICABILITY OF OTHER LAW; CONFLICTS.  All

 105-8   laws affecting the issuance of bonds by local governmental

 105-9   entities, including Chapter 656, Acts of the 68th Legislature,

105-10   Regular Session, 1983 (Article 717q, Vernon's Texas Civil

105-11   Statutes), Chapter 3, Acts of the 61st Legislature, Regular

105-12   Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), the

105-13   Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil

105-14   Statutes), and Chapter 53, Acts of the 70th Legislature, 2nd Called

105-15   Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes),

105-16   apply to bonds issued under this chapter.  To the extent of a

105-17   conflict between those laws and this chapter, the provisions of

105-18   this chapter prevail.

105-19            (Sections 366.119-366.160 reserved for expansion

105-20         SUBCHAPTER E.  ACQUISITION, CONSTRUCTION, AND OPERATION

105-21                          OF TURNPIKE PROJECTS

105-22         Sec. 366.161.  TURNPIKE PROJECTS EXTENDING INTO OTHER

105-23   COUNTIES.  An authority may acquire, construct, operate, maintain,

105-24   expand, or extend a turnpike project in:

105-25               (1)  a county that is a part of the authority;

 106-1               (2)  a county in which the authority operates or is

 106-2   constructing a turnpike project if the turnpike project in the

 106-3   affected county is a continuation of the authority's turnpike

 106-4   project or system extending from an adjacent county; or

 106-5               (3)  a county in which the authority operates or is

 106-6   constructing a turnpike project that is not a continuation of the

 106-7   authority's turnpike project or system if the commissioners court

 106-8   of the county and the commission have approved the project.

 106-9         Sec. 366.162.  POWERS AND PROCEDURES OF AUTHORITY IN

106-10   ACQUIRING PROPERTY.  (a)  An authority may construct or improve a

106-11   turnpike project on real property, including a right-of-way

106-12   acquired by the authority or provided to the authority for that

106-13   purpose by the commission, a political subdivision of this state,

106-14   or any other local governmental entity.

106-15         (b)  Except as provided by this chapter, an authority has the

106-16   same powers and may use the same procedures as the commission in

106-17   acquiring property.

106-18         Sec. 366.163.  ACQUISITION OF PROPERTY.  (a)  An authority

106-19   may acquire in the name of the authority public or private real and

106-20   other property it determines necessary or convenient for the

106-21   design, financing, construction, operation, maintenance, expansion,

106-22   or extension of a turnpike project or for otherwise carrying out

106-23   this chapter.

106-24         (b)  The property an authority may acquire under this

106-25   subchapter includes all or any portion of, and rights in and to:

 107-1               (1)  public or private land, streets, alleys,

 107-2   rights-of-way, parks, playgrounds, and reservations;

 107-3               (2)  franchises;

 107-4               (3)  easements;

 107-5               (4)  licenses; and

 107-6               (5)  other interests in real and other property.

 107-7         (c)  An authority may acquire real property by any method,

 107-8   including purchase and condemnation.  An authority may purchase

 107-9   public or private real property on the terms and at the price the

107-10   authority and the property owner consider reasonable.

107-11         (d)  Covenants, conditions, restrictions, or limitations

107-12   affecting property acquired in any manner by the authority are not

107-13   binding against the authority and do not impair the authority's

107-14   ability to use the property for a purpose authorized by this

107-15   chapter.  The beneficiaries of the covenants, conditions,

107-16   restrictions, or limitations are not entitled to enjoin the

107-17   authority from using the property for a purpose authorized under

107-18   this chapter, but this section does not affect the right of a

107-19   person to seek damages to the person's property under Section 17,

107-20   Article I, Texas Constitution.

107-21         Sec. 366.164.  RIGHT OF ENTRY.  (a)  To acquire property

107-22   necessary or useful in connection with a turnpike project, an

107-23   authority may enter any real property, water, or premises to make a

107-24   survey, geotechnical evaluation, sounding, or examination.

107-25         (b)  An entry under Subsection (a) is not:

 108-1               (1)  a trespass; or

 108-2               (2)  an entry under a pending condemnation proceeding.

 108-3         Sec. 366.165.  CONDEMNATION OF REAL PROPERTY.  (a)  Subject

 108-4   to Subsection (c), an authority may acquire public or private real

 108-5   property in the name of the authority by the exercise of the power

 108-6   of condemnation under the laws applicable to the exercise of that

 108-7   power on property for public use if:

 108-8               (1)  the authority and the property owner cannot agree

 108-9   on a reasonable price for the property; or

108-10               (2)  the property owner is legally incapacitated,

108-11   absent, unknown, or unable to convey title.

108-12         (b)  An authority may condemn real property that the

108-13   authority determines is:

108-14               (1)  necessary or appropriate to construct or to

108-15   efficiently operate a turnpike project;

108-16               (2)  necessary to restore public or private property

108-17   damaged or destroyed;

108-18               (3)  necessary for access, approach, and interchange

108-19   roads;

108-20               (4)  necessary for supplemental facilities of the

108-21   authority;

108-22               (5)  necessary to provide proper drainage and ground

108-23   slope for a turnpike project; or

108-24               (6)  necessary otherwise to implement this chapter.

108-25         (c)  An authority's acquisition of any real or other property

 109-1   of the commission under this section or any other section of this

 109-2   chapter, or an authority's relocation, rerouting, disruption, or

 109-3   alteration of any facility of the commission is considered a

 109-4   conversion of a state highway under Section 366.035 and is subject

 109-5   to all requirements and approvals of a conversion under that

 109-6   section.

 109-7         Sec. 366.166.  DECLARATION OF TAKING.  (a)  An authority may

 109-8   file a declaration of taking with the clerk of the court:

 109-9               (1)  in which the authority files a condemnation

109-10   petition under Chapter 21, Property Code; or

109-11               (2)  to which the case is assigned.

109-12         (b)  An authority may file the declaration of taking

109-13   concurrently with or subsequent to the petition, but may not file

109-14   the declaration after the special commissioners have made an award

109-15   in the condemnation proceeding.

109-16         (c)  The declaration of taking must include:

109-17               (1)  a specific reference to the legislative authority

109-18   for the condemnation;

109-19               (2)  a description and plot plan of the real property

109-20   to be condemned, including the following information if applicable:

109-21                     (A)  the municipality in which the property is

109-22   located;

109-23                     (B)  the street address of the property; and

109-24                     (C)  the lot and block number of the property;

109-25               (3)  a statement of the property interest to be

 110-1   condemned;

 110-2               (4)  the name and address of each property owner that

 110-3   the authority can obtain after reasonable investigation and a

 110-4   description of the owner's interest in the property; and

 110-5               (5)  a statement that immediate possession of all or

 110-6   part of the property to be condemned is necessary for the timely

 110-7   construction of a turnpike project.

 110-8         (d)  A deposit to the registry of the court of an amount

 110-9   equal to the appraised fair market value, as determined by the

110-10   authority, of the property to be condemned and any damages to the

110-11   remainder must accompany the declaration of taking.

110-12         (e)  Instead of the deposit under Subsection (d), at its

110-13   option, the authority may, concurrently with the declaration of a

110-14   taking, tender in favor of the owner of the subject property a bond

110-15   or other security in an amount sufficient to secure the owner for

110-16   the value of the property taken and damages to remaining property,

110-17   if the authority obtains the court's approval.

110-18         (f)  The date on which the declaration is filed is the date

110-19   of taking for the purpose of assessing the value of the property

110-20   taken and damages to any remaining property to which an owner is

110-21   entitled.

110-22         (g)  An owner may draw upon the deposit held by the court

110-23   under Subsection (d) on the same terms and conditions as are

110-24   applicable under state law to a property owner's withdrawal of a

110-25   commissioners' award deposited under Section 21.021(a)(1), Property

 111-1   Code.

 111-2         (h)  A property owner that is a defendant in an eminent

 111-3   domain action filed by an authority under this chapter has 20 days

 111-4   after the date of service of process of both a condemnation

 111-5   petition and a notice of declaration of taking to give notice to

 111-6   the court in which the action is pending of the defendant's desire

 111-7   to have the condemnation petition placed on the court's docket in

 111-8   the same manner as other cases pending in the court.  On receipt of

 111-9   timely notice from the defendant, the court in which the eminent

111-10   domain action is pending shall place the case on its docket in the

111-11   same manner as other cases pending in the court.

111-12         Sec. 366.167.  POSSESSION OF PROPERTY.  (a)  Immediately on

111-13   the filing of a declaration of taking, an authority shall serve a

111-14   copy of the declaration on each person possessing an interest in

111-15   the condemned property by a method prescribed by Section 21.016(d),

111-16   Property Code.  The authority shall file evidence of the service

111-17   with the clerk of the court.  On filing of that evidence, the

111-18   authority may take possession of the property on the same terms as

111-19   if a commissioners hearing had been conducted, pending the

111-20   litigation.

111-21         (b)  If the condemned property is a homestead or a portion of

111-22   a homestead as defined by Section 41.002, Property Code, an

111-23   authority may not take possession before the 31st day after the

111-24   date of service under Subsection (a).

111-25         (c)  A property owner or tenant who refuses to vacate the

 112-1   property or yield possession is subject to forcible entry and

 112-2   detainer under Chapter 24, Property Code.

 112-3         Sec. 366.168.  SEVERANCE OF REAL PROPERTY.  (a)  If an

 112-4   authority's turnpike project severs a property owner's real

 112-5   property, the authority shall pay:

 112-6               (1)  the value of the property acquired; and

 112-7               (2)  the damages, if any, to the remainder of the

 112-8   owner's property caused by the severance, including damages caused

 112-9   by the inaccessibility of one tract from the other.

112-10         (b)  At its option, an authority may negotiate for and

112-11   purchase the severed real property or any part of the severed real

112-12   property if the authority and the property owner agree on terms for

112-13   the purchase.  An authority may sell and dispose of severed real

112-14   property that it determines is not necessary or useful to the

112-15   authority.  Severed property must be appraised before being offered

112-16   for sale by an authority.

112-17         Sec. 366.169.  ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY.

112-18   (a)  An authority may use real property, including submerged land,

112-19   streets, alleys, and easements, owned by the state or a local

112-20   governmental entity that the authority considers necessary for the

112-21   construction or operation of a turnpike project.

112-22         (b)  The state or a local governmental entity having charge

112-23   of public real property may consent to the use of the property for

112-24   a turnpike project.

112-25         (c)  Except as provided by Section 366.035, the state or a

 113-1   local governmental entity may convey, grant, or lease to an

 113-2   authority real property, including highways and other real property

 113-3   already devoted to public use and rights or easements in real

 113-4   property, that may be necessary or convenient to accomplish the

 113-5   authority's purposes, including the construction or operation of a

 113-6   turnpike project.  A conveyance, grant, or lease under this section

 113-7   may be made without advertising, court order, or other action other

 113-8   than the normal action of the state or local governmental entity

 113-9   necessary for a conveyance, grant, or lease.

113-10         (d)  This section does not deprive the School Land Board of

113-11   the power to execute leases for the development of oil, gas, and

113-12   other minerals on state-owned real property adjoining a turnpike

113-13   project or in tidewater limits.  The leases may provide for

113-14   directional drilling from the adjoining property or tidewater area.

113-15         Sec. 366.170.  COMPENSATION FOR AND RESTORATION OF PUBLIC

113-16   PROPERTY.  (a)  Except as provided by Section 366.035 or Section

113-17   366.165(c), an authority may not pay compensation for public real

113-18   property, parkways, streets, highways, alleys, or reservations it

113-19   takes, except for parks and playgrounds or as provided by this

113-20   chapter.

113-21         (b)  Public property damaged in the exercise of powers

113-22   granted by this chapter shall be restored or repaired and placed in

113-23   its original condition as nearly as practicable.

113-24         (c)  An authority has full easements and rights-of-way

113-25   through, across, under, and over any property owned by the state or

 114-1   any local governmental entity that are necessary or convenient to

 114-2   construct, acquire, or efficiently operate a turnpike project or

 114-3   system under this chapter.

 114-4         Sec. 366.171.  PUBLIC UTILITY FACILITIES.  (a)  An authority

 114-5   may adopt rules for the installation, construction, operation,

 114-6   maintenance, repair, renewal, relocation, and removal of a public

 114-7   utility facility in, on, along, over, or under a turnpike project.

 114-8         (b)  If an authority determines it is necessary that a public

 114-9   utility facility located in, on, along, over, or under a turnpike

114-10   project be relocated in the turnpike project, removed from the

114-11   turnpike project, or carried along or across the turnpike project

114-12   by grade separation, the owner or operator of the utility facility

114-13   shall relocate or remove the facility in accordance with the

114-14   requirements of the authority and in a manner that does not impede

114-15   the design, financing, construction, operation, or maintenance of

114-16   the turnpike project.  The authority, as a part of the cost of the

114-17   turnpike project or the cost of operating the turnpike project,

114-18   shall pay the cost of the relocation, removal, or grade separation,

114-19   including the cost of:

114-20               (1)  installation of the facility in a new location;

114-21               (2)  interests in real property and other rights

114-22   acquired to accomplish the relocation or removal; and

114-23               (3)  maintenance of grade separation structures.

114-24         (c)  The authority may reduce the total costs to be paid by

114-25   the authority under Subsection (b) by 10 percent for each 30-day

 115-1   period or portion of a 30-day period by which the relocation

 115-2   exceeds the limit specified by the authority.  If an owner or

 115-3   operator of a public utility facility does not timely remove or

 115-4   relocate as required under Subsection (b), the authority may do so

 115-5   at the expense of the public utility.  If the authority determines

 115-6   that a delay in relocation is the result of circumstances beyond

 115-7   the control of the utility, full costs shall be paid by the

 115-8   authority.

 115-9         (d)  Chapter 228, Acts of the 51st Legislature, Regular

115-10   Session, 1949 (Article 1436a, Vernon's Texas Civil Statutes),

115-11   applies to the erection, construction, maintenance, and operation

115-12   of lines and poles owned by a corporation described by Section 1 of

115-13   that Act over, under, across, on, and along a turnpike project or

115-14   system constructed by an authority.  An authority has the powers

115-15   and duties delegated to the commissioners court by that Act, and an

115-16   authority has exclusive jurisdiction and control of utilities

115-17   located in its rights-of-way.

115-18         (e)  The laws of this state applicable to the use of public

115-19   roads, streets, and waters by a telephone and telegraph corporation

115-20   apply to the erection, construction, maintenance, location, and

115-21   operation of a line, pole, or other fixture by a telephone and

115-22   telegraph corporation over, under, across, on, and along a turnpike

115-23   project or system constructed by an authority under this chapter.

115-24         (f)  In this section "public utility facility" means a track,

115-25   pipe, main, conduit, cable, wire, tower, pole, or other item of

 116-1   plant or equipment or an appliance of a public utility or other

 116-2   person.

 116-3         Sec. 366.172.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

 116-4   PROJECT.  (a)  An authority may lease, sell, or convey in another

 116-5   manner a turnpike project to the department, a county, or a local

 116-6   government corporation created under Chapter 431.

 116-7         (b)  An agreement to lease, sell, or convey a turnpike

 116-8   project under this section must provide for the discharge and final

 116-9   payment or redemption of the authority's outstanding bonded

116-10   indebtedness for the turnpike project and must not be prohibited

116-11   under the bond proceedings applicable to the system, if any, of

116-12   which the turnpike project is a part.

116-13         Sec. 366.173.  REVENUE.  (a)  An authority may:

116-14               (1)  impose tolls for the use of each of its turnpike

116-15   projects and systems and the different parts or sections of each of

116-16   its turnpike projects and systems; and

116-17               (2)  contract with a person for the use of part of a

116-18   turnpike project or system or lease or sell part of a turnpike

116-19   project or system, including the right-of-way adjoining the paved

116-20   portion, for any purpose, including placing on the adjoining

116-21   right-of-way a gas station, garage, store, hotel, restaurant,

116-22   parking facility, railroad track, billboard, livestock pasturage,

116-23   telephone line or facility, telecommunication line or facility,

116-24   data transmission line or facility, and electric line or facility,

116-25   under terms set by the authority.

 117-1         (b)  Tolls must be set so that the aggregate of tolls from an

 117-2   authority's turnpike project or system, together with other revenue

 117-3   of the turnpike project or system:

 117-4               (1)  provides revenue sufficient to pay:

 117-5                     (A)  the cost of maintaining, repairing, and

 117-6   operating the turnpike project or system; and

 117-7                     (B)  the principal of and interest on the bonds

 117-8   issued for the turnpike project or system as those bonds become due

 117-9   and payable; and

117-10               (2)  creates reserves for a purpose listed under

117-11   Subdivision (1).

117-12         (c)  Tolls are not subject to supervision or regulation by

117-13   any state agency or other local governmental entity.

117-14         (d)  Tolls and other revenue derived from a turnpike project

117-15   or system for which bonds are issued, except the part necessary to

117-16   pay the cost of maintenance, repair, and operation and to provide

117-17   reserves for those costs as may be provided in the bond

117-18   proceedings, shall be set aside at regular intervals as may be

117-19   provided in the bond resolution or trust agreement in a sinking

117-20   fund that is pledged to and charged with the payment of:

117-21               (1)  interest on the bonds as it becomes due;

117-22               (2)  principal of the bonds as it becomes due;

117-23               (3)  necessary charges of paying agents for paying

117-24   principal and interest; and

117-25               (4)  the redemption price or the purchase price of

 118-1   bonds retired by call or purchase as provided by the bond

 118-2   proceedings.

 118-3         (e)  Use and disposition of money to the credit of the

 118-4   sinking fund is subject to the bond proceedings.

 118-5         (f)  To the extent permitted under the applicable bond

 118-6   proceedings, revenue from one turnpike project of an authority may

 118-7   be used to pay the cost of other turnpike projects of the

 118-8   authority.

 118-9         (g)  An authority may not use revenue from its turnpike

118-10   projects in a manner not authorized by this chapter.  Revenue

118-11   generated from a turnpike project may not be applied for a purpose

118-12   or to pay a cost other than a cost or purpose that is reasonably

118-13   related to or anticipated for a turnpike project.

118-14         Sec. 366.174.  AUTHORITY REVOLVING FUND.  (a)  An authority

118-15   may maintain a revolving fund to be held in trust by a banking

118-16   institution chosen by the authority separate from any other funds

118-17   and administered by the authority's board.

118-18         (b)  An authority may transfer into its revolving fund money

118-19   from any permissible source, including:

118-20               (1)  money from a turnpike project if the transfer does

118-21   not diminish the money available for the project or the system, if

118-22   any, of which it is a part to less than an amount required to be

118-23   retained by the bond proceedings pertaining to the project or

118-24   system;

118-25               (2)  money received by the authority from any source

 119-1   and not otherwise committed, including money from the transfer of a

 119-2   turnpike project or system or sale of authority assets;

 119-3               (3)  advances authorized under Section 52-b, Article

 119-4   III, Texas Constitution; and

 119-5               (4)  contributions, loans, grants, or assistance from

 119-6   the United States, another state, a political subdivision of this

 119-7   state, a foreign governmental entity, including the United Mexican

 119-8   States or a state of the United Mexican States, a local

 119-9   governmental entity, any private enterprise, or any person.

119-10         (c)  The authority may use money in the revolving fund to:

119-11               (1)  finance the acquisition, construction,

119-12   maintenance, or operation of a turnpike project or system,

119-13   including the extension, expansion, or improvement of a project or

119-14   system;

119-15               (2)  provide matching money required in connection with

119-16   any federal, state, local, or private aid, grant, or other funding,

119-17   including aid or funding by or with public-private partnerships;

119-18               (3)  provide credit enhancement either directly or

119-19   indirectly for bonds issued to acquire, construct, extend, expand,

119-20   or improve a turnpike project or system;

119-21               (4)  provide security for or payment of future or

119-22   existing debt for the design, acquisition, construction, operation,

119-23   maintenance, extension, expansion, or improvement of a turnpike

119-24   project or system;

119-25               (5)  borrow money and issue promissory notes or other

 120-1   indebtedness payable out of the revolving fund for any purpose

 120-2   authorized by this chapter; and

 120-3               (6)  provide for any other reasonable purpose that

 120-4   assists in the financing of an authority as authorized by this

 120-5   chapter.

 120-6         (d)  Money spent or advanced from the revolving fund for a

 120-7   turnpike project or system must be reimbursed from the money of

 120-8   that turnpike project or system, and there must be a reasonable

 120-9   expectation of such repayment at the time of authorization.

120-10         Sec. 366.175.  USE OF SURPLUS REVENUE.  The board of an

120-11   authority may by resolution authorize the use of surplus revenue of

120-12   a turnpike project or system to pay the costs of another turnpike

120-13   project or system other than a project financed under Subchapter G.

120-14   The board may in the resolution prescribe terms for the use of the

120-15   revenue, including the pledge of the revenue, but may not take an

120-16   action under this section that violates, impairs, or is

120-17   inconsistent with a bond resolution, trust agreement, or indenture

120-18   governing the use of the surplus revenue.

120-19         Sec. 366.176.  EXEMPTION FROM TAXATION OR ASSESSMENT.

120-20   (a)  An authority is exempt from taxation of or assessments on:

120-21               (1)  a turnpike project or system;

120-22               (2)  property the authority acquires or uses under this

120-23   chapter; or

120-24               (3)  income from property described by Subdivision (1)

120-25   or (2).

 121-1         (b)  An authority is exempt from payment of development fees,

 121-2   utility connection fees, assessments, and service fees imposed or

 121-3   assessed by a county, municipality, road and utility district,

 121-4   river authority, any other state or local governmental entity, or

 121-5   any property owners' or homeowners' association.

 121-6         Sec. 366.177.  ACTIONS AFFECTING EXISTING ROADS.  (a)  An

 121-7   authority may impose a toll for transit over an existing free road,

 121-8   street, or public highway transferred to the authority under this

 121-9   chapter.

121-10         (b)  An authority may construct a grade separation at an

121-11   intersection of a turnpike project with a railroad or highway and

121-12   change the line or grade of a highway to accommodate the design of

121-13   the grade separation.  The action may not affect a segment of the

121-14   state highway system without the department's consent.  The

121-15   authority shall pay the cost of a grade separation and any damage

121-16   incurred in changing a line or grade of a railroad or highway as

121-17   part of the cost of the turnpike project.

121-18         (c)  If feasible, an authority shall provide access to

121-19   properties previously abutting a county or other public road that

121-20   is taken for a turnpike project and shall pay abutting property

121-21   owners the expenses or any resulting damages for a denial of access

121-22   to the road.

121-23         Sec. 366.178.  FAILURE OR REFUSAL TO PAY TOLL.  (a)  A motor

121-24   vehicle other than a police or emergency vehicle that passes

121-25   through a toll collection facility, whether driven or towed, shall

 122-1   pay the proper toll.

 122-2         (b)  A person who fails or refuses to pay a toll provided for

 122-3   the use of a project is liable for a fine not to exceed $250, plus

 122-4   an administrative fee incurred in connection with the violation.

 122-5         (c)  If a person fails to pay the proper toll:

 122-6               (1)  on issuance of a notice of nonpayment, the

 122-7   registered owner of the nonpaying vehicle shall pay both the proper

 122-8   toll and the administrative fee; and

 122-9               (2)  an authority may charge an administrative fee of

122-10   not more than $100 to recover the cost of collecting the unpaid

122-11   toll.

122-12         (d)  Notice of nonpayment under Subsection (c)(1) shall be

122-13   sent by first-class mail and may not require payment of the proper

122-14   toll and the administrative fee before the 30th day after the date

122-15   the notice is mailed.  The registered owner shall pay a separate

122-16   toll and administrative fee for each nonpayment.

122-17         (e)  If the registered owner of the vehicle fails to pay the

122-18   proper toll and administrative fee in the time specified by the

122-19   notice, the owner shall be cited as for other traffic violations as

122-20   provided by law, and the owner shall pay a fine of not more than

122-21   $250 for each nonpayment.

122-22         (f)  In the prosecution of a violation for nonpayment, proof

122-23   that the vehicle passed through a toll collection facility without

122-24   payment of the proper toll together with proof that the defendant

122-25   was the registered owner or the driver of the vehicle when the

 123-1   failure to pay occurred, establishes the nonpayment of the

 123-2   registered owner.  The proof may be by testimony of a peace officer

 123-3   or authority employee, video surveillance, or any other reasonable

 123-4   evidence.

 123-5         (g)  The court of the local jurisdiction in which the

 123-6   violation occurs may assess and collect the fine in addition to any

 123-7   court costs.  The court shall collect the proper toll and

 123-8   administrative fee and forward the toll and fee to the authority.

 123-9         (h)  It is a defense to nonpayment under this section that

123-10   the motor vehicle in question was stolen before the failure to pay

123-11   the proper toll occurred and was not recovered by the time of the

123-12   failure to pay, but only if the theft was reported to the

123-13   appropriate law enforcement authority before the earlier of:

123-14               (1)  the occurrence of the failure to pay; or

123-15               (2)  eight hours after the discovery of the theft.

123-16         (i)  A registered owner who is the lessor of a vehicle for

123-17   which a notice of nonpayment has been issued is not liable if, not

123-18   later than the 30th day after the date the notice of nonpayment is

123-19   mailed, the registered owner provides to the authority a copy of

123-20   the lease agreement covering the vehicle on the date of the

123-21   nonpayment.  The name and address of the lessee must be clearly

123-22   legible.  If the lessor timely provides the required information,

123-23   the lessee of the vehicle on the date of the violation is

123-24   considered to be the owner of the vehicle for purposes of this

123-25   section.  The lessee is subject to prosecution for failure to pay

 124-1   the proper toll if the authority sends a notice of nonpayment to

 124-2   the lessee by first-class mail not later than the 30th day after

 124-3   the date of the receipt of the information from the lessor.

 124-4         Sec. 366.179.  USE AND RETURN OF TRANSPONDERS.  (a)  For

 124-5   purposes of this section, a transponder is a device placed on or

 124-6   within an automobile that is capable of transmitting or receiving

 124-7   information used to assess or collect tolls.  A transponder is

 124-8   insufficiently funded if there is no money in the account for which

 124-9   the transponder was issued.

124-10         (b)  Any law enforcement or peace officer of the Department

124-11   of Public Safety may seize a stolen or insufficiently funded

124-12   transponder and return it to the authority that issued the

124-13   transponder.  An insufficiently funded transponder may not be

124-14   seized before the 30th day after the date that an authority has

124-15   sent a notice of delinquency to the holder of the account.

124-16         Sec. 366.180.  CONTROLLED ACCESS TO TURNPIKE PROJECTS.

124-17   (a)  An authority may designate a turnpike project or a portion of

124-18   a project as a controlled-access toll road.

124-19         (b)  An authority by order may:

124-20               (1)  prohibit the use of or access to or from a

124-21   turnpike project by a motor vehicle, bicycle, other vehicle, or a

124-22   pedestrian;

124-23               (2)  deny access to or from:

124-24                     (A)  its turnpike projects;

124-25                     (B)  real property adjacent to its turnpike

 125-1   projects; or

 125-2                     (C)  a street, road, alley, highway, or other

 125-3   public or private way intersecting its turnpike projects;

 125-4               (3)  designate locations on its turnpike projects at

 125-5   which access to or from the toll road is permitted;

 125-6               (4)  control, restrict, and determine the type and

 125-7   extent of access permitted at a designated location of access to

 125-8   the turnpike projects; or

 125-9               (5)  erect appropriate protective devices to preserve

125-10   the utility, integrity, and use of its turnpike projects.

125-11         (c)  Denial of access to or from a segment of the state

125-12   highway system is subject to the approval of the commission.

125-13         Sec. 366.181.  PROMOTION OF TOLL ROADS.  An authority may

125-14   promote the use of its turnpike projects by appropriate means,

125-15   including advertising or marketing as the authority determines

125-16   appropriate.

125-17         Sec. 366.182.  OPERATION OF TURNPIKE PROJECT; PEACE OFFICERS.

125-18   (a)  An authority shall operate its turnpike projects through a

125-19   force of toll-takers and other employees of the authority or

125-20   through services contracted under Subsection (b) or (c).

125-21         (b)  An authority may enter into an agreement with one or

125-22   more persons to provide, on terms and conditions approved by the

125-23   authority, personnel and services to design, construct, operate,

125-24   maintain, expand, enlarge, or extend the authority's turnpike

125-25   projects.

 126-1         (c)  An authority may contract with any state or local

 126-2   governmental entity for the services of peace officers of that

 126-3   agency.

 126-4         Sec. 366.183.  AUDIT.  An authority shall have a certified

 126-5   public accountant audit the authority's books and accounts at least

 126-6   annually.  The cost of the audit may be treated as part of the cost

 126-7   of construction or operation of a turnpike project.

 126-8         Sec. 366.184.  DISADVANTAGED BUSINESSES.  (a)  Consistent

 126-9   with general law, an authority shall:

126-10               (1)  set goals for the award of contracts to

126-11   disadvantaged businesses and attempt to meet the goals;

126-12               (2)  attempt to identify disadvantaged businesses that

126-13   provide or have the potential to provide supplies, materials,

126-14   equipment, or services to the authority; and

126-15               (3)  give disadvantaged businesses full access to the

126-16   authority's contract bidding process, inform the businesses about

126-17   the process, offer the businesses assistance concerning the

126-18   process, and identify barriers to the businesses' participation in

126-19   the process.

126-20         (b)  This section does not exempt an authority from

126-21   competitive bidding requirements provided by other law.

126-22         Sec. 366.185.  COMPETITIVE BIDDING.  (a)  A contract made by

126-23   an authority that requires the expenditures of public funds for the

126-24   construction or maintenance of a turnpike project must be let by a

126-25   competitive bidding procedure in which the contract is awarded to

 127-1   the lowest responsible bidder that complies with the authority's

 127-2   criteria.

 127-3         (b)  The authority shall adopt rules governing the award of

 127-4   contracts through competitive bidding.

 127-5            (Sections 366.186-366.250 reserved for expansion

 127-6                        SUBCHAPTER F.  GOVERNANCE

 127-7         Sec. 366.251.  BOARD OF DIRECTORS.  (a)  An authority is

 127-8   governed by a board of directors.

 127-9         (b)  The commissioners court of each county of the authority

127-10   shall appoint one director to serve on the board.  The governor

127-11   shall appoint three directors to serve on the board.

127-12         (c)  Directors shall be divided into two groups.  To the

127-13   greatest degree possible, each group shall contain an equal number

127-14   of directors.  Directors shall serve terms of two years, except

127-15   that one group of directors of the initial board of an authority

127-16   shall serve for a term of one year.

127-17         (d)  Two directors appointed by the governor must have

127-18   resided in a county of the authority for at least one year before

127-19   the person's appointment.  One director appointed by the governor

127-20   must have resided in a county adjacent to a county of the authority

127-21   for at least one year before the person's appointment.  Each

127-22   director appointed by a commissioners court must have resided in

127-23   that county for at least one year before the person's appointment.

127-24         (e)  All appointments to the board shall be made without

127-25   regard to race, color, disability, sex, religion, age, or national

 128-1   origin.

 128-2         (f)  An elected official is not eligible to serve as a

 128-3   director.

 128-4         (g)  A vacancy in a position shall be filled promptly by the

 128-5   entity that made the appointment.

 128-6         (h)  Each director has equal status and may vote.

 128-7         (i)  The board of an authority shall select one director as

 128-8   the presiding officer of the board to serve in that capacity until

 128-9   the person's term as a director expires.  The board shall elect one

128-10   director as assistant presiding officer.  The board shall select a

128-11   secretary and treasurer, neither of whom need be a director.

128-12         (j)  The vote of a majority attending a board meeting is

128-13   necessary for any action taken by the board.  If a vacancy exists

128-14   on a board, the majority of directors serving on the board is a

128-15   quorum.

128-16         Sec. 366.252.  CONFLICT OF INTEREST.  (a)  A person is not

128-17   eligible to serve on the board of an authority if the person or the

128-18   person's spouse:

128-19               (1)  is registered, certified, or licensed by an

128-20   occupational regulatory agency in the field of toll road

128-21   construction, maintenance, or operation;

128-22               (2)  is employed by or participates in the management

128-23   of a business entity or other organization regulated by the

128-24   authority or receiving money from the authority;

128-25               (3)  owns or controls, directly or indirectly, more

 129-1   than a 10 percent interest in a business entity or other

 129-2   organization regulated by or receiving money from the authority,

 129-3   other than compensation for acquisition of turnpike right-of-way;

 129-4               (4)  uses or receives a substantial amount of tangible

 129-5   goods, services, or money from the authority, other than

 129-6   compensation or reimbursement authorized by law for board

 129-7   membership, attendance, or expenses, or for compensation for

 129-8   acquisition of turnpike right-of-way;

 129-9               (5)  is an officer, employee, or paid consultant of a

129-10   Texas trade association in the field of road construction,

129-11   maintenance, or operation; or

129-12               (6)  is required to register as a lobbyist under

129-13   Chapter 305, Government Code, because of the person's activities

129-14   for compensation on behalf of a profession related to the operation

129-15   of the authority.

129-16         (b)  A person may not act as the general counsel to an

129-17   authority if the person is required to register as a lobbyist under

129-18   Chapter 305, Government Code, because of the person's activities

129-19   for compensation on behalf of a profession related to the operation

129-20   of the authority.

129-21         (c)  In this section, "Texas trade association" means a

129-22   nonprofit, cooperative, and voluntarily joined association of

129-23   business or professional competitors in this state designed to

129-24   assist its members and its industry or profession in dealing with

129-25   mutual business or professional problems and in promoting their

 130-1   common interests.

 130-2         Sec. 366.253.  SURETY BONDS.  (a)  Before beginning a term,

 130-3   each director shall execute a surety bond in the amount of $25,000,

 130-4   and the secretary and treasurer shall execute a surety bond in the

 130-5   amount of $50,000.

 130-6         (b)  Each surety bond must be:

 130-7               (1)  conditioned on the faithful performance of the

 130-8   duties of office;

 130-9               (2)  executed by a surety company authorized to

130-10   transact business in this state; and

130-11               (3)  filed with the secretary of state's office.

130-12         (c)  The authority shall pay the expense of the bonds.

130-13         Sec. 366.254.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

130-14   removal of a director from the board if the director:

130-15               (1)  did not have at the time of appointment the

130-16   qualifications required by Section 366.251(d);

130-17               (2)  whether at the time of appointment or at any time

130-18   during the director's term, is ineligible under Section 366.251(f)

130-19   or 366.252 to serve as a director;

130-20               (3)  cannot discharge the director's duties for a

130-21   substantial part of the term for which the director is appointed

130-22   because of illness or disability; or

130-23               (4)  is absent from more than half of the regularly

130-24   scheduled board meetings that the director is eligible to attend

130-25   during a calendar year unless the absence is excused by majority

 131-1   vote of the board.

 131-2         (b)  The validity of an action of the board is not affected

 131-3   by the fact that it is taken when a ground for removal of a

 131-4   director exists.

 131-5         (c)  If the administrative head of the authority has

 131-6   knowledge that a potential ground for removal exists, that person

 131-7   shall notify the presiding officer of the board of the ground.  The

 131-8   presiding officer shall then notify the person that appointed the

 131-9   director that a potential ground for removal exists.

131-10         Sec. 366.255.  COMPENSATION OF DIRECTOR.  Each director is

131-11   entitled to reimbursement for the director's actual expenses

131-12   necessarily incurred in the performance of the director's duties.

131-13   A director is not entitled to any additional compensation for the

131-14   director's services.

131-15         Sec. 366.256.  EVIDENCE OF AUTHORITY ACTIONS.  Actions of an

131-16   authority are the actions of its board and may be evidenced in any

131-17   legal manner, including a board resolution.

131-18         Sec. 366.257.  PUBLIC ACCESS.  An authority shall:

131-19               (1)  make and implement policies that provide the

131-20   public with a reasonable opportunity to appear before the board to

131-21   speak on any issue under the jurisdiction of the authority; and

131-22               (2)  prepare and maintain a written plan that describes

131-23   how an individual who does not speak English or who has a physical,

131-24   mental, or developmental disability may be provided reasonable

131-25   access to the authority's programs.

 132-1         Sec. 366.258.  INDEMNIFICATION.  (a)  An authority may

 132-2   indemnify one or more of its directors or officers for necessary

 132-3   expenses and costs, including attorney's fees, incurred by the

 132-4   directors or officers in connection with any claim asserted against

 132-5   the directors or officers in their respective capacities as

 132-6   directors or officers.

 132-7         (b)  If an authority does not fully indemnify a director or

 132-8   officer as provided by Subsection (a), the court in a proceeding in

 132-9   which any claim against the director or officer is asserted or any

132-10   court with jurisdiction of an action instituted by the director or

132-11   officer on a claim for indemnity may assess indemnity against the

132-12   authority, its receiver, or trustee only if the court finds that,

132-13   in connection with the claim, the director or officer is not guilty

132-14   of negligence or misconduct.

132-15         (c)  A court may not assess indemnity under Subsection (b)

132-16   for an amount paid by the director or officer to the authority.

132-17         (d)  This section applies to a current or former director or

132-18   officer of the authority.

132-19         Sec. 366.259.  PURCHASE OF LIABILITY INSURANCE.  (a)  An

132-20   authority shall insure its officers and employees from liability

132-21   arising from the use, operation, or maintenance of equipment that

132-22   is used or may be used in connection with the laying out,

132-23   construction, or maintenance of the authority's turnpike projects.

132-24         (b)  Insurance coverage under this section must be provided

132-25   by the purchase of a policy of liability insurance from a reliable

 133-1   insurance company authorized to do business in this state.  The

 133-2   form of the policy must be approved by the commissioner of

 133-3   insurance.

 133-4         (c)  This section is not a waiver of immunity of the

 133-5   authority or the counties in an authority from liability for the

 133-6   torts or negligence of an officer or employee of an authority.

 133-7         (d)  In this section, "equipment" includes an automobile,

 133-8   motor truck, trailer, aircraft, motor grader, roller, tractor,

 133-9   tractor power mower, and other power equipment.

133-10         Sec. 366.260.  CERTAIN CONTRACTS AND SALES PROHIBITED.

133-11   (a)  A director, agent, or employee of an authority may not:

133-12               (1)  contract with the authority; or

133-13               (2)  be directly or indirectly interested in:

133-14                     (A)  a contract with the authority; or

133-15                     (B)  the sale of property to the authority.

133-16         (b)  A person who violates Subsection (a) is liable for a

133-17   civil penalty to the authority not to exceed $1,000.

133-18         (c)  Subsection (a) does not apply to the sale of turnpike

133-19   right-of-way to an authority.

133-20         Sec. 366.261.  STRATEGIC PLANS AND ANNUAL REPORTS.  (a)  An

133-21   authority shall make a strategic plan for its operations.  A

133-22   majority of the commissioners courts of the counties composing the

133-23   authority shall by concurrent resolution determine the types of

133-24   information required to be included in the strategic plan.  Each

133-25   even-numbered year, an authority shall issue a plan covering the

 134-1   next five fiscal years, beginning with the next odd-numbered fiscal

 134-2   year.

 134-3         (b)  Not later than March 31 of each year, an authority shall

 134-4   file with the commissioners court of each county of the authority a

 134-5   written report on the authority's activities describing all

 134-6   turnpike revenue bond issuances anticipated for the coming year,

 134-7   the financial condition of the authority, all project schedules,

 134-8   and the status of the authority's performance under the most recent

 134-9   strategic plan.  At the invitation of a commissioners court of a

134-10   county in the authority, the board and the administrative head of

134-11   an authority shall appear before the commissioners court to present

134-12   the report and receive questions and comments.

134-13         (c)  The authority shall give notice to the commissioners

134-14   court of each county of the authority not later than the 90th day

134-15   before the date of issuance of revenue bonds.

134-16         Sec. 366.262.  MEETINGS BY TELEPHONE CONFERENCE CALL.

134-17   (a)  Chapter 551, Government Code, does not prohibit any open or

134-18   closed meeting of the board, a committee of the board, or the

134-19   staff, or any combination of the board or staff, from being held by

134-20   telephone conference call.

134-21         (b)  A telephone conference call meeting is subject to the

134-22   notice requirements applicable to other meetings.

134-23         (c)  Notice of a telephone conference call meeting that by

134-24   law must be open to the public must specify the location of the

134-25   meeting.  The location must be a conference room of the authority

 135-1   or other facility in a county of the authority that is accessible

 135-2   to the public.

 135-3         (d)  Each part of the telephone conference call meeting that

 135-4   by law must be open to the public shall be audible to the public at

 135-5   the location specified in the notice and shall be tape-recorded or

 135-6   documented by written minutes.  On conclusion of the meeting, the

 135-7   tape recording or the written minutes of the meeting shall be made

 135-8   available to the public.

 135-9            (Sections 366.263-366.300 reserved for expansion

135-10            SUBCHAPTER G.  AID FOR REGIONAL TURNPIKE PROJECTS

135-11         Sec. 366.301.  DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS.

135-12   (a)  To the extent permitted by the Texas Constitution, the

135-13   department may agree with an authority to provide for or contribute

135-14   to the payment of costs of financial or engineering and traffic

135-15   feasibility studies and the design, financing, acquisition,

135-16   construction, operation, or maintenance of a turnpike project or

135-17   system on terms agreed on by the commission or department, as

135-18   applicable, and the authority.  The agreement may not be

135-19   inconsistent with the rights of the bondholders or persons

135-20   operating the turnpike project under a lease or other contract.

135-21         (b)  The department may use its engineering and other

135-22   personnel, including consulting engineers and traffic engineers, to

135-23   conduct feasibility studies under Subsection (a).

135-24         (c)  An obligation or expense incurred by the commission or

135-25   department under this section is a part of the cost of the turnpike

 136-1   project for which the obligation or expense was incurred.  Money

 136-2   from the state highway fund spent under this section must be repaid

 136-3   from tolls or other revenue of the turnpike project or system on

 136-4   which the money from the state highway fund was expended.

 136-5         (d)  The commission or department may use federal money for

 136-6   any purpose described by this chapter.

 136-7         Sec. 366.302.  AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE

 136-8   TURNPIKE PROJECTS.  (a)  An authority may enter into an agreement

 136-9   with a public or private entity, including a toll road corporation,

136-10   the United States, a state of the United States, the United Mexican

136-11   States, a state of the United Mexican States, a local governmental

136-12   entity, or another political subdivision, to permit the entity,

136-13   jointly with the authority, to study the feasibility of a turnpike

136-14   project or system or to acquire, design, finance, construct,

136-15   maintain, repair, operate, extend, or expand a turnpike project or

136-16   system.

136-17         (b)  An authority has broad discretion to negotiate

136-18   provisions in a development agreement with a private entity.  The

136-19   provisions may include provisions relating to:

136-20               (1)  the design, financing, construction, maintenance,

136-21   and operation of a turnpike project or system in accordance with

136-22   standards adopted by the authority; and

136-23               (2)  professional and consulting services to be

136-24   rendered under standards adopted by the authority in connection

136-25   with a turnpike project or system.

 137-1         (c)  An authority may not incur a financial obligation on

 137-2   behalf of, or otherwise guarantee the obligations of, a private

 137-3   entity that constructs, maintains, or operates a turnpike project

 137-4   or system.

 137-5         (d)  An authority or a county in an authority is not liable

 137-6   for any financial or other obligation of a turnpike project solely

 137-7   because a private entity constructs, finances, or operates any part

 137-8   of a turnpike project or system.

 137-9         (e)  An authority may authorize the investment of public and

137-10   private money, including debt and equity participation, to finance

137-11   a function described by this section.

137-12         Sec. 366.303.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL

137-13   GOVERNMENTAL ENTITIES.  (a)  A local governmental entity other than

137-14   a nonprofit corporation may, consistent with the Texas

137-15   Constitution, issue bonds or enter into and make payments under

137-16   agreements with an authority to acquire, construct, maintain, or

137-17   operate a turnpike project or system.  The entity may levy and

137-18   collect taxes to pay the interest on the bonds and to provide a

137-19   sinking fund for the redemption of the bonds.

137-20         (b)  In addition to the powers provided by Subsection (a), a

137-21   local governmental entity may, within any applicable constitutional

137-22   limitations, agree with an authority to issue bonds or enter into

137-23   and make payments under an agreement to acquire, construct,

137-24   maintain, or operate any portion of a turnpike project or system of

137-25   that authority.

 138-1         (c)  To make payments under an agreement under Subsection

 138-2   (b), to pay the interest on bonds issued under Subsection (b), or

 138-3   to provide a sinking fund for the bonds or the contract, a local

 138-4   governmental entity may:

 138-5               (1)  pledge revenue from any available source,

 138-6   including annual appropriations;

 138-7               (2)  levy and collect taxes; or

 138-8               (3)  provide for a combination of Subdivisions (1) and

 138-9   (2).

138-10         (d)  The term of an agreement under this section may not

138-11   exceed 40 years.

138-12         (e)  Any election required to permit action under this

138-13   subchapter must be held in conformity with Chapter 1, Title 22,

138-14   Revised Statutes, or other law applicable to the local governmental

138-15   entity.

138-16         Sec. 366.304.  ADDITIONAL AGREEMENTS OF AUTHORITY.  An

138-17   authority may enter into any agreement necessary or convenient to

138-18   achieve the purposes of this subchapter.

138-19         SECTION 7.24.  Subchapter F, Chapter 411, Government Code, is

138-20   amended by adding Section 411.132 to read as follows:

138-21         Sec. 411.132.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

138-22   REGIONAL TOLLWAY AUTHORITIES.  (a)  A regional tollway authority

138-23   governed by Chapter 366, Transportation Code, is entitled to obtain

138-24   from the department criminal history record information maintained

138-25   by the department that pertains to a person who is:

 139-1               (1)  employed by the regional tollway authority; or

 139-2               (2)  an applicant for employment with the regional

 139-3   tollway authority.

 139-4         (b)  Criminal history record information obtained under

 139-5   Subsection (a) may not be released or disclosed to any person

 139-6   except in a criminal proceeding, in a hearing conducted by the

 139-7   regional tollway authority, on court order, or with the consent of

 139-8   the person who is the subject of the criminal history record

 139-9   information.

139-10         SECTION 7.25.  (a)  Notwithstanding Section 366.031,

139-11   Transportation Code, as added by this Act, the North Texas Tollway

139-12   Authority is established as a regional tollway authority under

139-13   Chapter 366, Transportation Code, as added by this Act.

139-14         (b)  The North Texas Tollway Authority consists of all

139-15   territory in Collin, Dallas, Denton, and Tarrant counties.  The

139-16   operations of the authority may extend to other counties as

139-17   permitted under Section 366.161, Transportation Code, as added by

139-18   this Act, and the jurisdiction of the authority may be expanded to

139-19   include other counties under Section 366.031, Transportation Code,

139-20   as added by this Act.  As of the effective date of this Act, Cooke,

139-21   Ellis, Fannin, Grayson, Hunt, Johnson, Kaufman, Parker, Rockwall,

139-22   and Wise counties are the only counties that meet the geographical

139-23   qualifications for future inclusion in the North Texas Tollway

139-24   Authority.

139-25         (c)  Notwithstanding Section 366.251, Transportation Code, as

 140-1   added by this Act, the initial board of directors of the North

 140-2   Texas Tollway Authority is composed of nine directors as follows:

 140-3               (1)  three directors appointed by the governor, two of

 140-4   whom must have resided in a county of the authority for at least

 140-5   one year before the person's appointment and one of whom must have

 140-6   resided in Parker County, Ellis County, or Johnson County for at

 140-7   least one year before the person's appointment;

 140-8               (2)  one director appointed by the commissioners court

 140-9   of each county in the authority; and

140-10               (3)  the county judges of two of the counties of the

140-11   authority, as agreed by a majority of the county judges of the

140-12   authority.

140-13         (d)  The terms of the initial directors of the North Texas

140-14   Tollway Authority begin on September 1, 1997.  The county judges

140-15   serving as initial directors shall each serve a one-year term.  At

140-16   the expiration of that term, the seats held by the county judges

140-17   are not refilled, and the number of directors composing the board

140-18   is reduced to seven but may be increased if additional counties

140-19   join the authority.

140-20         (e)  One of the directors of the North Texas Tollway

140-21   Authority appointed to the initial board by the governor serves a

140-22   one-year term.  Each successor to that director shall be appointed

140-23   by the governor for a two-year term.

140-24         (f)  The two directors appointed to the initial board of the

140-25   North Texas Tollway Authority by the commissioners courts of the

 141-1   counties whose county judges serve as initial directors each serve

 141-2   a one-year term.  Each successor to those directors shall be

 141-3   appointed for a two-year term.  The remaining initial directors

 141-4   serve two-year terms.

 141-5         SECTION 7.26.  Sections 361.003, 361.038, 361.039, 361.040,

 141-6   361.041, 361.044, 361.045, 361.047, 361.048, 361.139, 361.190, and

 141-7   361.284, and Subsection (e), Section 361.331, Transportation Code,

 141-8   are repealed.

 141-9          ARTICLE 8.  TRANSITION, EFFECTIVE DATE, AND EMERGENCY

141-10         SECTION 8.01.  (a)  The Texas Turnpike Authority is abolished

141-11   and the Texas Turnpike Authority division of the Texas Department

141-12   of Transportation is created on the effective date of this Act.

141-13   Except as provided by Subsections (b) and (c) of this section, all

141-14   assets, rights, and obligations of the Texas Turnpike Authority are

141-15   transferred to the division.

141-16         (b)  The North Texas Tollway Authority shall succeed to all

141-17   assets, rights, and other property of the Texas Turnpike Authority

141-18   located in Collin, Dallas, Denton, or Tarrant County, including all

141-19   assets and rights that relate to the Dallas North Tollway, the

141-20   Addison Airport Toll Tunnel, the President George Bush Turnpike,

141-21   the Mountain Creek Lake Bridge, all existing and proposed

141-22   extensions to those projects, the Texas Turnpike Authority

141-23   administration building, and all other facilities, improvements,

141-24   leaseholds, funds, accounts, and investments related to a project

141-25   listed in this subsection.

 142-1         (c)  The North Texas Tollway Authority shall assume and

 142-2   become liable for all duties and obligations of the Texas Turnpike

 142-3   Authority related to the assets, rights, and properties transferred

 142-4   under Subsection (b) of this section, including contracts and bonds

 142-5   secured by the revenues of the assets.  The North Texas Tollway

 142-6   Authority is obligated to comply with all the assumed obligations

 142-7   to the same extent as the Texas Turnpike Authority.

 142-8         (d)  An employee of the Texas Turnpike Authority may elect to

 142-9   become an employee of either the Texas Turnpike Authority division

142-10   of the Texas Department of Transportation or the North Texas

142-11   Tollway Authority on the effective date of this Act, subject to the

142-12   employment openings and requirements of those entities.

142-13         (e)  A rule or regulation adopted by the Texas Turnpike

142-14   Authority relating to the operation of a turnpike in Collin,

142-15   Dallas, Denton, or Tarrant County before the effective date of this

142-16   Act that is not inconsistent with this Act remains in effect as a

142-17   rule or regulation of the North Texas Tollway Authority until

142-18   superseded by action of that entity.

142-19         SECTION 8.02.  As additional consideration for the transfer

142-20   of the properties described in Subsection (b) of Section 8.01 of

142-21   this Act, the North Texas Tollway Authority shall pay to the Texas

142-22   Department of Transportation an amount to be agreed on by the

142-23   authority and the department not later than October 1, 1997.  In

142-24   determining the amount, the authority and the department shall

142-25   ensure that following the payment, the authority is in compliance

 143-1   with all bond resolutions, bond indentures, credit agreements, and

 143-2   all other agreements assumed by the authority and that reserves

 143-3   held by the authority as required under or in connection with the

 143-4   resolutions, indentures, credit agreements, and other agreements

 143-5   shall be maintained at a level consistent with the Texas Turnpike

 143-6   Authority's historical practices.

 143-7         SECTION 8.03.  The North Texas Tollway Authority is a

 143-8   successor agency to the Texas Turnpike Authority for all purposes,

 143-9   including for the purpose of Section 52-b, Article III, Texas

143-10   Constitution, concerning all assets, rights, other property,

143-11   duties, and obligations transferred to the authority under

143-12   Subsection (b) of Section 8.01 of this Act.  The Texas Department

143-13   of Transportation is a successor to the Texas Turnpike Authority

143-14   for all purposes concerning assets, rights, other property, duties,

143-15   and obligations not transferred to the North Texas Tollway

143-16   Authority under Subsection (b) of Section 8.01 of this Act.  Any

143-17   existing agreement by and between the Texas Turnpike Authority and

143-18   the state, the Texas Transportation Commission, the Texas

143-19   Department of Transportation, the Federal Highway Administration,

143-20   the United States Department of Transportation, any other federal

143-21   or state governmental entity, or any local governmental entity that

143-22   pertains to an asset, right, or obligation transferred to the North

143-23   Texas Tollway Authority under this Act is binding on, benefits, and

143-24   is fully enforceable by and against the North Texas Tollway

143-25   Authority as successor to the Texas Turnpike Authority.

 144-1         SECTION 8.04.  The changes in law made by this Act in the

 144-2   qualifications of members of the Texas Transportation Commission or

 144-3   the Texas Motor Vehicle Commission do not affect the entitlement of

 144-4   a member serving on one of those commissions before September 1,

 144-5   1997, to continue to carry out the functions of the commission for

 144-6   the remainder of the member's term.  The changes in law apply only

 144-7   to a member appointed on or after September 1, 1997.  This Act does

 144-8   not prohibit a person who is a member of the Texas Transportation

 144-9   Commission on September 1, 1997, from being reappointed to that

144-10   commission if the person has the qualifications required for a

144-11   member under Chapter 201, Transportation Code, as amended by this

144-12   Act.  This Act does not prohibit a person who is a member of the

144-13   Texas Motor Vehicle Commission on September 1, 1997, from being

144-14   reappointed to that commission if the person has the qualifications

144-15   required for a member under the Texas Motor Vehicle Commission Code

144-16   (Article 4413(36), Vernon's Texas Civil Statutes), as amended by

144-17   this Act.

144-18         SECTION 8.05.  (a)  The governor shall appoint the six

144-19   directors to the board of directors of the Texas Turnpike Authority

144-20   division of the Texas Department of Transportation for initial

144-21   terms as follows:  two to serve terms expiring February 15, 1999,

144-22   two to serve terms expiring February 15, 2001, and two to serve

144-23   terms expiring February 15, 2003.

144-24         (b)  Until a majority of the board of directors of the Texas

144-25   Turnpike Authority division of the Texas Department of

 145-1   Transportation has been appointed and has qualified, the members of

 145-2   the board of directors of the Texas Turnpike Authority serving

 145-3   immediately before the effective date of this section shall

 145-4   exercise the authority granted to the board of directors of the

 145-5   Texas Turnpike Authority division of the Texas Department of

 145-6   Transportation.  When a majority of the members of the board of

 145-7   directors of the Texas Turnpike Authority division of the Texas

 145-8   Department of Transportation has been appointed and has qualified

 145-9   and until all appointees have taken office, a quorum of the board

145-10   is a majority of the number of directors who have qualified.

145-11         SECTION 8.06.  This Act takes effect September 1, 1997.

145-12         SECTION 8.07.  The importance of this legislation and the

145-13   crowded condition of the calendars in both houses create an

145-14   emergency and an imperative public necessity that the

145-15   constitutional rule requiring bills to be read on three several

145-16   days in each house be suspended, and this rule is hereby suspended.