By Armbrister, et al.                            S.B. No. 370

      75R9166 JD/DRH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the continuation and functions of the Texas Department

 1-3     of Transportation, the abolition of the Texas Turnpike Authority,

 1-4     and the creation of regional tollway authorities.

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

 1-6             ARTICLE 1.  TEXAS TRANSPORTATION COMMISSION; TEXAS

 1-7                        DEPARTMENT OF TRANSPORTATION

 1-8           SECTION 1.01.  Section 201.204, Transportation Code, is

 1-9     amended to read as follows:

1-10           Sec. 201.204.  SUNSET PROVISION.  The Texas Department of

1-11     Transportation is subject to Chapter 325, Government Code (Texas

1-12     Sunset Act).  Unless continued in existence as provided by that

1-13     chapter, the department is abolished September 1, 2009 [1997].

1-14           SECTION 1.02.  Section 201.051(d), Transportation Code, is

1-15     amended to read as follows:

1-16           (d)  Except as provided by Subsection (e), a person is not

1-17     eligible for appointment as a member of the commission if the

1-18     person or the person's spouse:

1-19                 (1)  is employed by or participates in the management

1-20     of a business entity or other organization that is regulated by or

1-21     receives funds from the department;

1-22                 (2)  directly or indirectly owns or controls more than

1-23     10 percent interest in a business entity or other organization that

1-24     is regulated by or receives funds from the department; [or]

 2-1                 (3)  uses or receives a substantial amount of tangible

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

 2-3     compensation or reimbursement authorized by law for commission

 2-4     membership, attendance, or expenses; or

 2-5                 (4)  is registered, certified, or licensed by the

 2-6     department.

 2-7           SECTION 1.03.  Section 201.057(c), Transportation Code, is

 2-8     amended to read as follows:

 2-9           (c)  If the director knows that a potential ground for

2-10     removal exists, the director shall notify the commissioner of

2-11     transportation of the ground, and the commissioner shall notify the

2-12     governor and the attorney general that a potential ground for

2-13     removal exists.  If the potential ground for removal relates to the

2-14     commissioner of transportation, the director shall notify another

2-15     member of the commission, who shall notify the governor and the

2-16     attorney general that a potential ground for removal exists.

2-17           SECTION 1.04.  Subchapter B, Chapter 201, Transportation

2-18     Code, is amended by adding Section 201.059 to read as follows:

2-19           Sec. 201.059.  TRAINING ON DEPARTMENT AND CERTAIN LAWS

2-20     RELATING TO DEPARTMENT.  (a)  To be eligible to take office as a

2-21     member of the commission, a person appointed to the commission must

2-22     complete at least one course of a training program that complies

2-23     with this section.

2-24           (b)  The training program must provide information to the

2-25     person regarding:

2-26                 (1)  this subchapter;

2-27                 (2)  the programs operated by the department;

 3-1                 (3)  the role and functions of the department;

 3-2                 (4)  the rules of the department with an emphasis on

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

 3-4                 (5)  the current budget for the department;

 3-5                 (6)  the results of the most recent formal audit of the

 3-6     department;

 3-7                 (7)  the requirements of the:

 3-8                       (A)  open meetings law, Chapter 551, Government

 3-9     Code;

3-10                       (B)  open records law, Chapter 552, Government

3-11     Code; and

3-12                       (C)  administrative procedure law, Chapter 2001,

3-13     Government Code;

3-14                 (8)  the requirements of the conflict of interest laws

3-15     and other laws relating to public officials; and

3-16                 (9)  any applicable ethics policies adopted by the

3-17     commission or the Texas Ethics Commission.

3-18           (c)  A person appointed to the commission is entitled to

3-19     reimbursement for travel expenses incurred in attending the

3-20     training program, as provided by the General Appropriations Act and

3-21     as if the person were a member of the commission.

3-22           SECTION 1.05.  Section 201.102, Transportation Code, is

3-23     amended to read as follows:

3-24           Sec. 201.102.  SEPARATION [DEFINITION] OF RESPONSIBILITIES.

3-25     The commission shall develop and implement policies that clearly

3-26     separate the policy-making [define the respective] responsibilities

3-27     of the commission and the management responsibilities of the

 4-1     director and staff of the department.

 4-2           SECTION 1.06.  Section 201.107(b), Transportation Code, is

 4-3     amended to read as follows:

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

 4-5     the presiding officer of each house of the legislature a complete

 4-6     and detailed written report accounting for all funds received and

 4-7     disbursed by the department during the preceding fiscal year.  The

 4-8     report must comply with each reporting requirement applicable to

 4-9     financial reporting [be in the form and filed in the time] provided

4-10     by the General Appropriations Act.

4-11           SECTION 1.07.  Sections 201.402(a) and (b), Transportation

4-12     Code, are amended to read as follows:

4-13           (a)  The director or the director's designee shall prepare

4-14     and maintain a written policy statement to ensure implementation of

4-15     a program of equal employment opportunity under which all personnel

4-16     transactions are made without regard to race, color, disability,

4-17     sex, religion, age, or national origin.  The policy statement must

4-18     include:

4-19                 (1)  personnel policies, including policies relating to

4-20     recruitment, evaluation, selection, appointment, training, and

4-21     promotion of personnel that comply with Chapter 21, Labor Code;

4-22                 (2)  a comprehensive analysis of the department work

4-23     force that meets federal and state guidelines;

4-24                 (3)  procedures by which a determination can be made of

4-25     significant underuse in the department work force of all persons

4-26     for whom federal or state guidelines encourage a more equitable

4-27     balance; and

 5-1                 (4)  reasonable methods to appropriately address the

 5-2     areas of significant underuse.

 5-3           (b)  A policy statement prepared under Subsection (a) must

 5-4     cover an annual period, be updated at least annually, be reviewed

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

 5-6     Subsection (a)(1), and be filed with the governor's office.

 5-7           SECTION 1.08.  Sections 201.404(a) and (b), Transportation

 5-8     Code, are amended to read as follows:

 5-9           (a)  The director or the director's designee shall develop an

5-10     intra-agency career ladder program that addresses opportunities for

5-11     mobility and advancement for employees in the department [covering

5-12     all full-time classified and exempt positions].  The program shall

5-13     require intra-agency posting of all [nonentry] positions

5-14     concurrently with any public posting.

5-15           (b)  The director or the director's designee shall develop a

5-16     system of annual performance evaluations that are based on

5-17     documented employee performance.  All merit pay for department

5-18     employees must be based on the system established under this

5-19     subsection.

5-20           SECTION 1.09.  Subchapter I, Chapter 201, Transportation

5-21     Code, is amended by adding Section 201.705 to read as follows:

5-22           Sec. 201.705.  PILOT PROJECT ON VEHICLE MAINTENANCE

5-23     OUTSOURCING.  (a)  The department shall conduct a two-year pilot

5-24     project to determine whether contracting with a private entity for

5-25     maintenance and repair services of all department vehicles would be

5-26     cost-effective.

5-27           (b)  The study must be implemented in at least three of the

 6-1     department's districts.  The districts in which the study is

 6-2     implemented must vary in geography and population.

 6-3           (c)  Any cost savings that result from the project shall be

 6-4     deposited to the credit of the state infrastructure bank account

 6-5     created under Subchapter D, Chapter 222.

 6-6           (d)  This section expires January 1, 2000.

 6-7           SECTION 1.10.  Section 201.801, Transportation Code, is

 6-8     amended by amending Subsection (c) and adding Subsection (e) to

 6-9     read as follows:

6-10           (c)  The department shall:

6-11                 (1)  keep an information file about each written

6-12     complaint filed with the department that the department has the

6-13     authority to resolve; and

6-14                 (2)  provide the person who filed the complaint, and

6-15     each person or entity that is the subject of the complaint,

6-16     information about the department's policies and procedures relating

6-17     to complaint investigation and resolution.

6-18           (e)  With regard to each complaint filed with the department,

6-19     the department shall keep the following information:

6-20                 (1)  the date the complaint is filed;

6-21                 (2)  the name of the person filing the complaint;

6-22                 (3)  the subject matter of the complaint;

6-23                 (4)  a record of each person contacted in relation to

6-24     the complaint;

6-25                 (5)  a summary of the results of the review or

6-26     investigation of the complaint; and

6-27                 (6)  if the department takes no action on the

 7-1     complaint, an explanation of the reasons that no action was taken.

 7-2           SECTION 1.11.  Section 201.802, Transportation Code, is

 7-3     amended by amending Subsection (b) and adding Subsection (c) to

 7-4     read as follows:

 7-5           (b)  The director [department] shall prepare and maintain a

 7-6     written plan that describes the manner in which a person who does

 7-7     not speak English or who has a physical, mental, or developmental

 7-8     disability is provided reasonable access to the department's

 7-9     programs.

7-10           (c)  The department shall comply with each applicable law of

7-11     the United States or this state that relates to program or facility

7-12     accessibility.

7-13           SECTION 1.12.  Chapter 222, Transportation Code, is amended

7-14     by adding Subchapter D to read as follows:

7-15                  SUBCHAPTER D.  STATE INFRASTRUCTURE BANK

7-16           Sec. 222.071. DEFINITIONS.  In this subchapter:

7-17                 (1)  "Bank" means the state infrastructure bank

7-18     account.

7-19                 (2)  "Construction" has the meaning assigned by 23

7-20     U.S.C. Section 101.

7-21                 (3)  "Federal act" means Section 350 of the National

7-22     Highway System Designation Act of 1995 (Pub. L. No. 104-59).

7-23                 (4)  "Federal-aid highway" has the meaning assigned by

7-24     23 U.S.C.  Section 101.

7-25                 (5)  "Qualified project" includes:

7-26                       (A)  the construction of a federal-aid highway;

7-27                       (B)  a transit project under 49 U.S.C. Sections

 8-1     5307, 5309, and 5311; or

 8-2                       (C)  for the expenditure of secondary funds, a

 8-3     project eligible for assistance under Title 23 or Title 49, United

 8-4     States Code.

 8-5                 (6)  "Secondary funds" includes:

 8-6                       (A)  the repayment of a loan or other assistance

 8-7     that is provided with money deposited to the credit of the bank;

 8-8                       (B)  investment income generated by secondary

 8-9     funds deposited to the credit of the bank; and

8-10                       (C)  any money deposited to the credit of the

8-11     bank in excess of the requirements of the federal act.

8-12           Sec. 222.072.  STATE INFRASTRUCTURE BANK.  (a)  The state

8-13     infrastructure bank is an account in the state highway fund.  The

8-14     bank is administered by the commission.

8-15           (b)  Federal funds received by the state under the federal

8-16     act, state funds appropriated by the legislature, money saved as a

8-17     result of contracting with a private entity for maintenance and

8-18     repair services for department vehicles, and other money received

8-19     by the state that is eligible for deposit in the bank shall be

8-20     deposited in the bank, and may be used only for the purposes

8-21     described in this subchapter.

8-22           Sec. 222.073.  PURPOSES OF INFRASTRUCTURE BANK.  The

8-23     commission shall use money deposited in the bank to:

8-24                 (1)  encourage public and private investment in

8-25     transportation facilities, including facilities that contribute to

8-26     the multimodal and intermodal transportation capabilities of the

8-27     state; and

 9-1                 (2)  develop financing techniques designed to:

 9-2                       (A)  expand the availability of funding for

 9-3     transportation projects and to reduce direct state costs;

 9-4                       (B)  maximize private and local participation in

 9-5     financing projects; and

 9-6                       (C)  improve the efficiency of the state

 9-7     transportation system.

 9-8           Sec. 222.074.  FORM OF ASSISTANCE.  To further a purpose

 9-9     described by Section 222.073, the commission may use money

9-10     deposited to the credit of the bank to provide financial assistance

9-11     to a public or private entity for a qualified project to:

9-12                 (1)  extend credit by direct loan;

9-13                 (2)  provide credit enhancements;

9-14                 (3)  serve as a capital reserve for bond or debt

9-15     instrument financing;

9-16                 (4)  subsidize interest rates;

9-17                 (5)  insure the issuance of a letter of credit or

9-18     credit instrument;

9-19                 (6)  finance a purchase or lease agreement in

9-20     connection with a transit project;

9-21                 (7)  provide security for bonds and other debt

9-22     instruments; or

9-23                 (8)  provide methods of leveraging money that have been

9-24     approved by the United States Secretary of Transportation and

9-25     relate to the project for which the assistance is provided.

9-26           Sec. 222.075.  SEPARATE SUBACCOUNTS.  The bank shall consist

9-27     of at least two separate subaccounts, a highway subaccount and a

 10-1    transit subaccount.

 10-2          Sec. 222.076.  DEPOSIT OF REPAYMENTS; INVESTMENT INCOME.  (a)

 10-3    Notwithstanding any other law to the contrary:

 10-4                (1)  the repayment of a loan or other assistance

 10-5    provided with money deposited to the credit of a subaccount in the

 10-6    bank shall be deposited in that subaccount; and

 10-7                (2)  investment income generated by money deposited to

 10-8    the credit of a subaccount in the bank shall be:

 10-9                      (A)  credited to that subaccount;

10-10                      (B)  available for use in providing financial

10-11    assistance under this subchapter; and

10-12                      (C)  invested in United States Treasury

10-13    securities, bank deposits, or other financing instruments approved

10-14    by the United States Secretary of Transportation to earn interest

10-15    and enhance the financing of projects assisted by the bank.

10-16          (b)  The commission shall administer the bank in compliance

10-17    with the federal act and any applicable federal regulation or

10-18    guideline.

10-19          (c)  The commission by rule shall:

10-20                (1)  implement this subchapter; and

10-21                (2)  establish eligibility criteria for an entity

10-22    applying for financial assistance from the bank.

10-23          Sec. 222.077.  REPORT TO LEGISLATURE.  (a)  Not later than

10-24    January 1, 2001, the department shall submit a report to the

10-25    legislature on the status of projects funded by the state

10-26    infrastructure bank and the use of the bank.  The report must

10-27    include information about:

 11-1                (1)  the financial and operational status of projects

 11-2    assisted by the bank;

 11-3                (2)  the financial condition of the bank, including

 11-4    fund balances;

 11-5                (3)  the cumulative value of investments made; and

 11-6                (4)  the extent to which projects assisted by the bank

 11-7    have aided the state in meeting the state's transportation needs.

 11-8          (b)  This section expires January 1, 2001.

 11-9          SECTION 1.13.  Subchapter A, Chapter 223, Transportation

11-10    Code, is amended by adding Sections 223.012 and 223.013 to read as

11-11    follows:

11-12          Sec. 223.012.  CONTRACTOR PERFORMANCE.  The department shall:

11-13                (1)  develop a schedule for liquidated damages that

11-14    accurately reflects the costs associated with project completion

11-15    delays, including administrative and travel delays; and

11-16                (2)  review contractor bidding capacity to ensure that

11-17    contractors meet each quality and timeliness standard established

11-18    by the commission.

11-19          Sec. 223.013.  ELECTRONIC BIDDING SYSTEM.  (a)  The

11-20    department shall establish an electronic bidding system for highway

11-21    construction and maintenance contracts.

11-22          (b)  The system must permit a qualified vendor to

11-23    electronically submit a bid, including any contract, signature, or

11-24    verification of a guaranty check by a financial institution.

11-25          (c)  That part of Section 223.004(a) requiring a bid to be

11-26    opened at a public hearing of the commission does not apply to an

11-27    electronically submitted bid.  A copy of each electronically

 12-1    submitted bid shall be publicly posted.

 12-2          (d)  After the electronic bidding system is established, the

 12-3    department shall take the actions necessary to recover the

 12-4    department's costs of manually processing bids that are not

 12-5    submitted electronically.

 12-6          SECTION 1.14.  Section 223.041, Transportation Code, is

 12-7    amended by adding Subsection (d) to read as follows:

 12-8          (d)  If the State Council on Competitive Government

 12-9    determines that the costs of providing engineering services by the

12-10    use of department employees and the use of private contractors are

12-11    equivalent, the council shall provide assistance to the department

12-12    so that the department may achieve the balance required by

12-13    Subsection (a).

12-14          SECTION 1.15.  Chapter 455, Transportation Code, is amended

12-15    by adding Section 455.0015 to read as follows:

12-16          Sec. 455.0015.  TRANSPORTATION NEEDS OF CLIENTS OF HEALTH AND

12-17    HUMAN SERVICES AGENCIES.  In performing its public transportation

12-18    planning and funding activities, the department shall consider and

12-19    include the transportation needs of those persons who are clients

12-20    of the health and human services agencies of this state.

12-21          SECTION 1.16.  Subchapter A, Chapter 153, Tax Code, is

12-22    amended by adding Section 153.018 to read as follows:

12-23          Sec. 153.018.  STUDY BY TEXAS DEPARTMENT OF TRANSPORTATION.

12-24    (a)  The Texas Department of Transportation, in conjunction with

12-25    the comptroller, shall conduct a study of the costs and benefits of

12-26    changing the manner in which taxes under this chapter are computed

12-27    or collected.

 13-1          (b)  The study must include an examination of:

 13-2                (1)  any effect on the tax-exempt status of

 13-3    agricultural and other nonhighway users;

 13-4                (2)  any effect on industries or businesses;

 13-5                (3)  additional revenues that may result from a change;

 13-6    and

 13-7                (4)  any administrative costs associated with the

 13-8    change.

 13-9          (c)  Not later than January 1, 1998, the department shall

13-10    submit the results of the study to the legislature.

13-11          (d)  This section expires January 1, 1998.

13-12                      ARTICLE 2.  OUTDOOR ADVERTISING

13-13          SECTION 2.01.  Section 391.003, Transportation Code, is

13-14    amended by adding Subsection (d) to read as follows:

13-15          (d)  The commission may not adopt a rule under this chapter

13-16    that restricts competitive bidding or advertising by the holder of

13-17    a license issued under this chapter other than a rule to prohibit

13-18    false, misleading, or deceptive practices.  A rule to prohibit

13-19    false, misleading, or deceptive practices may not:

13-20                (1)  restrict the use of:

13-21                      (A)  any medium for an advertisement;

13-22                      (B)  the license holder's advertisement under a

13-23    trade name; or

13-24                      (C)  the license holder's personal appearance or

13-25    voice in an advertisement, if the license holder is an individual;

13-26    or

13-27                (2)  relate to the size or duration of an advertisement

 14-1    by the license holder.

 14-2          SECTION 2.02.  Section 391.062, Transportation Code, is

 14-3    amended by adding Subsection (c) to read as follows:

 14-4          (c)  At least 30 days before the date on which a person's

 14-5    license expires, the commission shall notify the person of the

 14-6    impending expiration.  The notice must be in writing and sent to

 14-7    the person's last known address according to the records of the

 14-8    commission.

 14-9          SECTION 2.03.  Section 391.066(a), Transportation Code, is

14-10    amended to read as follows:

14-11          (a)  The commission may revoke or suspend a license issued

14-12    under this subchapter or place on probation a license holder whose

14-13    license is suspended if the license holder violates this chapter or

14-14    a rule adopted under this chapter.  If the suspension of the

14-15    license is probated, the department may require the license holder

14-16    to report regularly to the commission on any matter that is the

14-17    basis of the probation.

14-18              ARTICLE 3.  TEXAS MOTOR VEHICLE COMMISSION CODE

14-19          SECTION 3.01.  Section 2.02A, Texas Motor Vehicle Commission

14-20    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

14-21    to read as follows:

14-22          Sec. 2.02A.  APPOINTMENTS.  Appointments to the Commission

14-23    shall be made without [with due] regard to [for] the race, color,

14-24    disability, sex, religion, or [ethnicity, gender, and] national

14-25    origin of the appointees.

14-26          SECTION 3.02.  Subchapter B, Texas Motor Vehicle Commission

14-27    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

 15-1    by adding Section 2.035 to read as follows:

 15-2          Sec. 2.035.  TRAINING ON DEPARTMENT AND CERTAIN LAWS RELATING

 15-3    TO DEPARTMENT.  (a)  To be eligible to take office as a member of

 15-4    the Commission, a person appointed to the Commission must complete

 15-5    at least one course of a training program that complies with this

 15-6    section.

 15-7          (b)  The training program must provide information to the

 15-8    person regarding:

 15-9                (1)  this Act;

15-10                (2)  the programs operated by the department;

15-11                (3)  the role and functions of the department;

15-12                (4)  the rules of the department with an emphasis on

15-13    the rules that relate to disciplinary and investigatory authority;

15-14                (5)  the current budget for the department;

15-15                (6)  the results of the most recent formal audit of the

15-16    department;

15-17                (7)  the requirements of the:

15-18                      (A)  open meetings law, Chapter 551, Government

15-19    Code;

15-20                      (B)  open records law, Chapter 552, Government

15-21    Code; and

15-22                      (C)  administrative procedure law, Chapter 2001,

15-23    Government Code;

15-24                (8)  the requirements of the conflict of interest laws

15-25    and other laws relating to public officials; and

15-26                (9)  any applicable ethics policies adopted by the

15-27    Commission or the Texas Ethics Commission.

 16-1          (c)  A person appointed to the Commission is entitled to

 16-2    reimbursement for travel expenses incurred in attending the

 16-3    training program, as provided by the General Appropriations Act and

 16-4    as if the person were a member of the Commission.

 16-5          SECTION 3.03.  Section 2.08(b), Texas Motor Vehicle

 16-6    Commission Code (Article 4413(36), Vernon's Texas Civil Statutes),

 16-7    is amended to read as follows:

 16-8          (b)  The Commission is subject to Chapters 551 and 2001,

 16-9    Government Code [the open meetings law, Chapter 271, Acts of the

16-10    60th Legislature, Regular Session, 1967, as amended (Article

16-11    6252-17, Vernon's Texas Civil Statutes)].

16-12          SECTION 3.04.  Section 2.08A(c), Texas Motor Vehicle

16-13    Commission Code (Article 4413(36), Vernon's Texas Civil Statutes),

16-14    is amended to read as follows:

16-15          (c)  If the Executive Director has knowledge that a potential

16-16    ground for removal exists, the Executive Director shall notify the

16-17    Chairman of the Commission of the ground.  The Chairman shall then

16-18    notify the Governor and the Attorney General that a potential

16-19    ground for removal exists.  If the potential ground for removal

16-20    relates to the Chairman of the Commission, the Executive Director

16-21    shall notify the Vice-chairman of the Commission, who shall notify

16-22    the Governor and the Attorney General that a potential ground for

16-23    removal exists.

16-24          SECTION 3.05.  Section 2.09(e), Texas Motor Vehicle

16-25    Commission Code (Article 4413(36), Vernon's Texas Civil Statutes),

16-26    is amended to read as follows:

16-27          (e)  The Executive Director shall appoint and employ such

 17-1    Commission staff as are necessary to carry out the duties and

 17-2    functions of the Executive Director and the Commission under this

 17-3    Act.  The Commission shall develop and implement policies that

 17-4    clearly separate the policy-making [define the respective]

 17-5    responsibilities of the Commission and the management

 17-6    responsibilities of the Executive Director and staff of the

 17-7    Commission.

 17-8          SECTION 3.06.  Section 2.10(b), Texas Motor Vehicle

 17-9    Commission Code (Article 4413(36), Vernon's Texas Civil Statutes),

17-10    is amended to read as follows:

17-11          (b)  The Commission shall file annually with the Governor and

17-12    the presiding officer of each house of the legislature a complete

17-13    and detailed written report accounting for all funds received and

17-14    disbursed by the Commission during the preceding fiscal year.  The

17-15    annual report must comply with each reporting requirement

17-16    applicable to financial reporting [be in the form and reported in

17-17    the time] provided by the General Appropriations Act.

17-18          SECTION 3.07.  Section 2.12, Texas Motor Vehicle Commission

17-19    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

17-20    to read as follows:

17-21          Sec. 2.12.  COMPLAINTS.  (a)  The Commission shall:

17-22                (1)  keep an information file about each complaint

17-23    filed with the Commission that the Commission has authority to

17-24    resolve; and

17-25                (2)  provide the person who filed the complaint, and

17-26    each person or entity that is the subject of the complaint,

17-27    information about the Commission's policies and procedures relating

 18-1    to complaint investigation and resolution.

 18-2          (b)  If a written complaint is filed with the Commission that

 18-3    the Commission has authority to resolve, the Commission, at least

 18-4    quarterly and until final disposition of the complaint, shall

 18-5    notify the parties to the complaint of the status of the complaint

 18-6    unless the notice would jeopardize an ongoing Commission

 18-7    investigation.

 18-8          (c)  With regard to each complaint filed with the Commission,

 18-9    the Commission shall keep the following information:

18-10                (1)  the date the complaint is filed;

18-11                (2)  the name of the person filing the complaint;

18-12                (3)  the subject matter of the complaint;

18-13                (4)  a record of each person contacted in relation to

18-14    the complaint;

18-15                (5)  a summary of the results of the review or

18-16    investigation of the complaint; and

18-17                (6)  if the Commission takes no action on the

18-18    complaint, an explanation of the reasons that no action was taken.

18-19          SECTION 3.08.  Sections 2.13(a), (b), and (d), Texas Motor

18-20    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

18-21    Statutes), are amended to read as follows:

18-22          (a)  The Executive Director or his designee shall develop an

18-23    intraagency career ladder program that addresses opportunities for

18-24    mobility and advancement of employees in the Commission.  The

18-25    program shall require intraagency postings of all [nonentry level]

18-26    positions concurrently with any public posting.

18-27          (b)  The Executive Director or his designee shall develop a

 19-1    system of annual performance evaluations that are based on

 19-2    documented employee performance.   All merit pay for Commission

 19-3    employees must be based on the system established under this

 19-4    subsection.

 19-5          (d)  The Executive Director or his designee shall prepare and

 19-6    maintain a written policy statement to assure implementation of a

 19-7    program of equal employment opportunity under which all personnel

 19-8    transactions are made without regard to race, color, disability

 19-9    [handicap], sex, religion, age, or national origin.  The policy

19-10    statement must include:

19-11                (1)  personnel policies, including policies relating to

19-12    recruitment, evaluation, selection, appointment, training, and

19-13    promotion of personnel that comply with Chapter 21, Labor Code;

19-14                (2)  a comprehensive analysis of the Commission work

19-15    force that meets federal and state guidelines;

19-16                (3)  procedures by which a determination can be made of

19-17    significant underuse in the Commission work force of all persons

19-18    for whom federal or state guidelines encourage a more equitable

19-19    balance; and

19-20                (4)  reasonable methods to appropriately address those

19-21    areas of significant underuse.

19-22          A policy statement prepared under this subsection must cover

19-23    an annual period, be updated at least annually, be reviewed by the

19-24    Texas Commission on Human Rights for compliance with Subdivision

19-25    (1) of this subsection, and be filed with the Governor's office.

19-26          The Governor's office shall deliver a biennial report to the

19-27    legislature based on the information received under this

 20-1    subsection.  The report may be made separately or as a part of

 20-2    other biennial reports made to the legislature.

 20-3          SECTION 3.09.  Section 4.01B, Texas Motor Vehicle Commission

 20-4    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

 20-5    to read as follows:

 20-6          Sec. 4.01B.  [NOTICE OF] LICENSE EXPIRATION.  (a)  The

 20-7    Commission by rule may implement a system under which licenses

 20-8    expire on various dates during the year.

 20-9          (b)  The Commission shall notify each person licensed under

20-10    this Act of the date of license expiration and the amount of the

20-11    fee required for license renewal.  The notice shall be mailed at

20-12    least thirty days before the date of license expiration.

20-13          (c)  For a year in which a license expiration date is

20-14    changed, the fee for the license shall be prorated so that the

20-15    holder of the license pays only that portion of the license fee

20-16    that is allocable to the number of months during which the license

20-17    is valid.  On renewal of the license on the new expiration date,

20-18    the entire license renewal fee is payable.

20-19                        ARTICLE 4.  MOTOR CARRIERS

20-20          SECTION 4.01.  Section 3(i), Article 6675c, Revised Statutes,

20-21    is amended to read as follows:

20-22          (i)  A registration issued under this article is valid for

20-23    one year.  The department may adopt a system under which

20-24    registrations expire at different times during the year.  At least

20-25    30 days before the date on which a motor carrier's registration

20-26    expires, the department shall notify the carrier of the impending

20-27    expiration.  The notice must be in writing and sent to the motor

 21-1    carrier's last known address according to the records of the

 21-2    department.  A motor carrier may renew a registration under this

 21-3    article by:

 21-4                (1)  supplementing the application with any new

 21-5    information required under Subsection (g) of this section;

 21-6                (2)  paying a $10 fee for each vehicle requiring

 21-7    registration the carrier operates; and

 21-8                (3)  showing the department evidence of continuing

 21-9    insurance or financial responsibility in an amount at least equal

21-10    to the amount set by the department under Section 4(a) of this

21-11    article.

21-12          SECTION 4.02.  Section 7, Article 6675c, Revised Statutes, is

21-13    amended to read as follows:

21-14          Sec. 7.  Suspension and revocation of registration.  (a)  The

21-15    department may suspend or revoke a registration issued under this

21-16    article or place on probation a motor carrier whose registration is

21-17    suspended if:

21-18                (1)  a motor carrier fails to maintain insurance as

21-19    required by Section 4(a) or (b) of this article;

21-20                (2)  a motor carrier fails to keep proof of insurance

21-21    in the cab of each vehicle as required by Section 4(e) of this

21-22    article;

21-23                (3)  a motor carrier fails to register a vehicle

21-24    requiring registration; or

21-25                (4)  a motor carrier knowingly provides false

21-26    information on any form filed with the department under this

21-27    section.

 22-1          (b)  The Department of Public Safety may request that the

 22-2    department suspend or revoke a registration issued under this

 22-3    article or place on probation a motor carrier whose registration is

 22-4    suspended if a motor carrier:

 22-5                (1)  has an unsatisfactory safety rating under 49

 22-6    C.F.R. Part 385; or

 22-7                (2)  has multiple violations of a provision of Article

 22-8    6675d, Revised Statutes, a rule adopted under that article, or the

 22-9    Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's

22-10    Texas Civil Statutes).

22-11          (c)  Except as provided by Subsection (d) of this section, a

22-12    suspension or revocation or the imposition of probation made under

22-13    Subsection (a) or (b) of this section is a contested case under

22-14    Chapter 2001, Government Code.

22-15          (d)  The department may suspend or revoke a registration

22-16    issued under this article or place on probation a motor carrier

22-17    whose registration is suspended without a hearing under Chapter

22-18    2001, Government Code, if:

22-19                (1)  the department provides notice to the motor

22-20    carrier of:

22-21                      (A)  the proposed suspension or revocation; and

22-22                      (B)  the right of the carrier to request a

22-23    hearing under Chapter 2001, Government Code; and

22-24                (2)  the motor carrier fails to provide the department

22-25    with a written request for a hearing within 10 days after the date

22-26    the carrier receives the notice described in Subdivision (1) of

22-27    this subsection.

 23-1          (e)  If the suspension of a motor carrier's registration is

 23-2    probated, the department may require the carrier to report

 23-3    regularly to the department on any matter that is the basis of the

 23-4    probation.

 23-5          SECTION 4.03.  Section 8, Article 6675c, Revised Statutes, is

 23-6    amended by adding Subsection (g) to read as follows:

 23-7          (g)  The department may not by rule restrict competitive

 23-8    bidding or advertising by a motor carrier except to prohibit false,

 23-9    misleading, or deceptive practices.  A rule to prohibit false,

23-10    misleading, or deceptive practices may not:

23-11                (1)  restrict the use of:

23-12                      (A)  any medium for an advertisement;

23-13                      (B)  the motor carrier's advertisement under a

23-14    trade name; or

23-15                      (C)  the motor carrier's personal appearance or

23-16    voice in an advertisement, if the motor carrier is an individual;

23-17    or

23-18                (2)  relate to the size or duration of an advertisement

23-19    by the motor carrier.

23-20                    ARTICLE 5.  SALVAGE VEHICLE DEALERS

23-21          SECTION 5.01.  Section 1.02, Article 6687-1a, Revised

23-22    Statutes, is amended by adding Subsection (c) to read as follows:

23-23          (c)  The commission may not adopt a rule under this article

23-24    that restricts competitive bidding or advertising by a person who

23-25    holds a license issued under this article other than a rule to

23-26    prohibit false, misleading, or deceptive practices.  A rule to

23-27    prohibit false, misleading, or deceptive practices may not:

 24-1                (1)  restrict the use of:

 24-2                      (A)  any medium for an advertisement;

 24-3                      (B)  the license holder's advertisement under a

 24-4    trade name; or

 24-5                      (C)  the license holder's personal appearance or

 24-6    voice in an advertisement, if the license holder is an individual;

 24-7    or

 24-8                (2)  relate to the size or duration of an advertisement

 24-9    by the license holder.

24-10          SECTION 5.02.  Section 2.07, Article 6687-1a, Revised

24-11    Statutes, is amended to read as follows:

24-12          Sec. 2.07.  License Renewal.  (a)  A license issued under

24-13    this article expires on the first anniversary of the date of

24-14    issuance and may be renewed annually on or before the expiration

24-15    date on payment of the required renewal fee.

24-16          (b)  A person who is otherwise eligible to renew a license

24-17    may renew an unexpired license by paying to the department before

24-18    the expiration date of the license the required renewal fee.  A

24-19    person whose license has expired may not engage in the activities

24-20    that require a license until the license has been renewed under the

24-21    provisions of this section.

24-22          (c)  If a person's license has been expired for 90 days or

24-23    less, the person may renew the license by paying to the department

24-24    one and one-half times the required renewal fee.

24-25          (d)  If a person's license has been expired for longer than

24-26    90 days but less than one year, the person may renew the license by

24-27    paying to the department two times the required renewal fee.

 25-1          (e)  If a person's license has been expired for one year or

 25-2    longer, the person may not renew the license.  The person may

 25-3    obtain a new license by complying with the requirements and

 25-4    procedures for obtaining an original license.  If the person was

 25-5    licensed in this state, moved to another state, and has been doing

 25-6    business in the other state for the two years preceding

 25-7    application, the person may renew an expired license.  The person

 25-8    must pay to the department a fee that is equal to two times the

 25-9    required renewal fee for the license.

25-10          (f)  At least 30 days before the date on which a person's

25-11    license expires, the department shall notify the person of the

25-12    impending expiration.  The notice must be in writing and sent to

25-13    the person's last known address according to the records of the

25-14    department.  [If a license holder fails to renew the license before

25-15    its expiration date, the license holder may renew the license on

25-16    payment of the renewal fee and a late fee set by the commission.

25-17    If the license is not renewed before the first anniversary of the

25-18    date on which the license expired, the license holder must apply

25-19    for a new license in the same manner as an applicant for an initial

25-20    license.]

25-21          SECTION 5.03.  Section 4.01(b), Article 6687-1a, Revised

25-22    Statutes, is amended to read as follows:

25-23          (b)  The commission shall adopt rules establishing the

25-24    grounds for the denial, suspension, revocation, or reinstatement of

25-25    a license and establishing procedures for disciplinary actions.  A

25-26    rule adopted under this subsection may not conflict with a rule

25-27    adopted by the State Office of Administrative Hearings.

 26-1                 ARTICLE 6.  VEHICLE STORAGE FACILITY ACT

 26-2          SECTION 6.01.  Section 4, Vehicle Storage Facility Act

 26-3    (Article 6687-9a, Revised Statutes), is amended by adding

 26-4    Subsection (d) to read as follows:

 26-5          (d)  The commission may not adopt a rule under this Act that

 26-6    restricts competitive bidding or advertising by a person who holds

 26-7    a license issued under this Act other than a rule to prohibit

 26-8    false, misleading, or deceptive practices.  A rule to prohibit

 26-9    false, misleading, or deceptive practices may not:

26-10                (1)  restrict the use of:

26-11                      (A)  any medium for an advertisement;

26-12                      (B)  the license holder's advertisement under a

26-13    trade name; or

26-14                      (C)  the license holder's personal appearance or

26-15    voice in an advertisement, if the license holder is an individual;

26-16    or

26-17                (2)  relate to the size or duration of an advertisement

26-18    by the license holder.

26-19          SECTION 6.02.  Section 9(a), Vehicle Storage Facility Act

26-20    (Article 6687-9a, Revised Statutes), is amended to read as follows:

26-21          (a)  A license issued under this article is valid for the

26-22    period set by the commission.  At least 30 days before the date on

26-23    which a person's license expires, the commission shall notify the

26-24    person of the impending expiration.  The notice must be in writing

26-25    and sent to the person's last known address according to the

26-26    records of the commission.

26-27          SECTION 6.03.  Section 10, Vehicle Storage Facility Act

 27-1    (Article 6687-9a, Revised Statutes), is amended by adding

 27-2    Subsections (e) and (f) to read as follows:

 27-3          (e)  If the commission places a person on probation under

 27-4    this section, the commission may require the person to report

 27-5    regularly to the commission on any matter that is the basis of the

 27-6    probation.

 27-7          (f)  If the commission proposes to take an action under

 27-8    Subsection (a) or (b), the person is entitled to a hearing

 27-9    conducted by the State Office of Administrative Hearings.

27-10    Proceedings for a disciplinary action are governed by the

27-11    administrative procedure law, Chapter 2001, Government Code.  Rules

27-12    of practice adopted by the commission under Section 2001.004,

27-13    Government Code, applicable to the proceedings for a disciplinary

27-14    action may not conflict with rules adopted by the State Office of

27-15    Administrative Hearings.

27-16                           ARTICLE 7.  TURNPIKES

27-17          SECTION 7.01.  Chapter 222, Transportation Code, is amended

27-18    by adding Subchapter D to read as follows:

27-19                       SUBCHAPTER D. TOLL FACILITIES

27-20          Sec. 222.071.  EXPENDITURE OF MONEY.  The department may

27-21    spend money from any source for the construction, maintenance, and

27-22    operation of toll facilities.

27-23          Sec. 222.072.  TEMPORARY TOLL PROJECTS.  The department may

27-24    recover the cost of a preventative maintenance or rehabilitation

27-25    project on a nontoll segment of the state highway system by

27-26    temporarily imposing a toll charge.

27-27          Sec. 222.073.  COST PARTICIPATION.  (a)  The department may

 28-1    participate in the cost of the construction, maintenance, or

 28-2    operation of a toll facility of a public or private entity on terms

 28-3    and conditions established by the commission, including

 28-4    requirements for repayment.

 28-5          (b)  An entity receiving cost participation from the

 28-6    department under this section is a successor agency to the Texas

 28-7    Turnpike Authority for the purposes of Section 52-b, Article III,

 28-8    Texas Constitution.

 28-9          SECTION 7.02.  Section 362.055, Transportation Code, is

28-10    amended to read as follows:

28-11          Sec. 362.055.  EXCEPTION.  This subchapter does not apply to:

28-12                (1)  a county that has a population of more than 1.5

28-13    million; [or]

28-14                (2)  a local government corporation created under

28-15    Chapter 431 by a county that has a population of more than 1.5

28-16    million; or

28-17                (3)  a regional tollway authority created under Chapter

28-18    366.

28-19          SECTION 7.03.  Section 361.001, Transportation Code, is

28-20    amended to read as follows:

28-21          Sec. 361.001.  DEFINITIONS.  In this chapter:

28-22                (1)  "Authority" means the Texas Turnpike Authority

28-23    division of the Texas Department of Transportation [and includes

28-24    the entity that succeeds to the principal functions of the

28-25    authority or to whom by law the powers of the authority are given].

28-26                (2)  "Board" means the board of directors of the

28-27    authority.

 29-1                (3)  ["Highway" means a road, highway, farm-to-market

 29-2    road, or street under the supervision of the state or a political

 29-3    subdivision of the state.]

 29-4                [(4)]  "Owner" includes a person having title to or an

 29-5    interest in any property, rights, easements, and interests

 29-6    authorized to be acquired under this chapter.

 29-7                (4) [(5)]  "Turnpike project" means a toll [an express]

 29-8    highway constructed, maintained, or operated under this chapter as

 29-9    part of the state highway system and any improvement, extension, or

29-10    expansion to the highway and includes:

29-11                      (A)  a facility to relieve traffic congestion and

29-12    promote safety;

29-13                      (B)  a bridge, tunnel, overpass, underpass,

29-14    interchange, entrance plaza, approach, toll house, or service

29-15    station;

29-16                      (C)  an administration, storage, or other

29-17    building the authority considers necessary to operate the project;

29-18    and

29-19                      (D)  property rights, easements, and interests

29-20    the authority acquires to construct or operate the project.

29-21                (5)  "Regional tollway authority" means a regional

29-22    tollway authority created under Chapter 366, Transportation Code.

29-23          SECTION 7.04.  Section 361.031, Transportation Code, is

29-24    amended to read as follows:

29-25          Sec. 361.031.  TEXAS TURNPIKE AUTHORITY.  (a)  The Texas

29-26    Turnpike Authority is a division of the Texas Department of

29-27    Transportation that has full authority to exercise all powers

 30-1    granted to it under this chapter.  Powers granted to the department

 30-2    under this chapter and Chapter 362 to study, design, construct,

 30-3    operate, expand, enlarge, or extend a turnpike project as a part of

 30-4    the state highway system shall be exercised by the department

 30-5    acting by and through the authority [state agency].

 30-6          (b)  The authority may perform, procure from other divisions

 30-7    of the department with the consent of the department, or procure

 30-8    from outside service providers any portion of the services the

 30-9    authority requires for:

30-10                (1)  right-of-way acquisition;

30-11                (2)  roadway finance, design, and construction;

30-12                (3)  environmental affairs; or

30-13                (4)  legal services.

30-14          (c)  With the approval of the commission, the authority may

30-15    perform, procure from other divisions of the department with the

30-16    consent of the department, or procure from outside service

30-17    providers any portion of the services the authority requires for

30-18    roadway maintenance or traffic operations.

30-19          (d)  To perform its functions under this chapter, the

30-20    authority may use the facilities and personnel of the department in

30-21    the same manner as other divisions of the department.

30-22          (e)  If the comptroller assigns numbers to state agencies for

30-23    accounting purposes, the comptroller shall assign a separate agency

30-24    number to the authority [The authority shall locate offices in

30-25    Austin, Texas, on or before September 1, 1997].

30-26          (f) [(c)]  The exercise by the authority of the powers

30-27    conferred by this chapter in the construction, operation, and

 31-1    maintenance of a turnpike project is:

 31-2                (1)  in all respects for the benefit of the people of

 31-3    this state, for the increase of their commerce and prosperity, and

 31-4    for the improvement of their health and living conditions and

 31-5    public safety; and

 31-6                (2)  an essential governmental function of the state.

 31-7          SECTION 7.05.  Sections 361.032(a), (b), (c), (e), and (g),

 31-8    Transportation Code, are amended to read as follows:

 31-9          (a)  The board is composed of six [12] directors appointed by

31-10    the commission.  [The governor, with the  advice and consent of the

31-11    senate, shall appoint nine directors who represent the public. Each

31-12    commission member serves as an ex officio board member.]

31-13          (b)  Directors [Appointed directors] serve terms of six years

31-14    with the terms of one-third of those directors expiring on February

31-15    15 of each odd-numbered year.

31-16          (c)  Each [appointed] director must have resided in this

31-17    state and in the county from which the person is appointed for at

31-18    least one year before the person's appointment.

31-19          (e)  The commission [governor] shall promptly fill vacancies

31-20    in unexpired terms.

31-21          (g)  The commission [governor] shall designate one director

31-22    as the presiding officer of the board to serve in that capacity at

31-23    the pleasure of the commission [governor].  The board shall elect

31-24    one director as assistant presiding officer and shall elect a

31-25    secretary and treasurer who need not be a director.

31-26          SECTION 7.06.  Section 361.033, Transportation Code, is

31-27    amended to read as follows:

 32-1          Sec. 361.033.  CONFLICT OF INTEREST.  (a)  A person is not

 32-2    eligible for appointment to the board if the person or the person's

 32-3    spouse:

 32-4                (1)  is registered, certified, or licensed by an

 32-5    occupational regulatory agency in the field of toll road

 32-6    construction, maintenance, or operation;

 32-7                (2)  is employed by or participates in the management

 32-8    of a business entity or other organization regulated by the

 32-9    commission, department, or authority or receiving funds from the

32-10    commission, department, or authority;

32-11                (3)  owns or controls, directly or indirectly, more

32-12    than a 10 percent interest in a business entity or other

32-13    organization regulated by or receiving funds from the commission,

32-14    department, or authority, other than compensation for acquisition

32-15    of turnpike  right-of-way; or

32-16                (4)  uses or receives a substantial amount of tangible

32-17    goods, services, or funds from the commission, department, or

32-18    authority, other than compensation or reimbursement authorized by

32-19    law for board membership, attendance, or expenses or compensation

32-20    for acquisition of turnpike right-of-way.

32-21          (b)  An officer, employee, or paid consultant of a Texas

32-22    trade association in the field of road construction, maintenance,

32-23    or operation may not be a [an appointed] director.

32-24          (c)  The spouse of an officer, manager, or paid consultant of

32-25    a Texas trade association in the field of road construction,

32-26    maintenance, or operation may not be a [an appointed] director.

32-27          (d)  A person may not serve as a [an appointed] director or

 33-1    act as the general counsel  to the authority if the person is

 33-2    required to register as a lobbyist under Chapter 305, Government

 33-3    Code, because of the person's activities for compensation on behalf

 33-4    of a profession related to the operation of the commission,

 33-5    department, or authority.

 33-6          (e)  In this section, "Texas trade association" means a

 33-7    nonprofit, cooperative, and voluntarily joined association of

 33-8    business or professional competitors in this state designed to

 33-9    assist its members and its industry or profession in dealing with

33-10    mutual business or professional problems and in promoting their

33-11    common interests.

33-12          SECTION 7.07.  Section 361.035, Transportation Code, is

33-13    amended to read as follows:

33-14          Sec. 361.035.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

33-15    removal of a [an appointed] director from the board if the

33-16    director:

33-17                (1)  does not have at the time of appointment or does

33-18    not maintain during service on the board the qualifications

33-19    required by Section 361.032 or 361.033(a);

33-20                (2)  violates a prohibition established by Section

33-21    361.033(b), (c), or (d);

33-22                (3)  cannot discharge the director's duties for a

33-23    substantial part of the term for which the director is appointed

33-24    because of illness or disability; or

33-25                (4)  is absent from more than half of the regularly

33-26    scheduled board meetings that the director is eligible to attend

33-27    during a calendar year unless the absence is excused by majority

 34-1    vote of the board.

 34-2          (b)  The validity of an action of the board is not affected

 34-3    by the fact that it is taken when a ground for removal of a

 34-4    director exists.

 34-5          (c)  If the administrative head of the authority has

 34-6    knowledge that a potential ground for removal exists, that

 34-7    individual shall notify the presiding officer of the board of the

 34-8    ground.  The presiding officer shall then notify the commission

 34-9    [governor] that a potential ground for removal exists.

34-10          SECTION 7.08.  Section 361.042, Transportation Code, is

34-11    amended to read as follows:

34-12          Sec. 361.042.  GENERAL POWERS AND DUTIES.  (a)  The authority

34-13    shall:

34-14                (1)  on its own initiative or at the request of the

34-15    commission, consider, study, plan, and develop turnpike projects

34-16    under this chapter;

34-17                (2)  adopt rules [bylaws] for the regulation of its

34-18    affairs and the conduct of its business;

34-19                (3)  with the concurrence of the commission, employ an

34-20    administrative head, who serves at the pleasure of the board and

34-21    who must be compensated on a level not lower than the level on

34-22    which a deputy executive director of the department is compensated;

34-23    and

34-24                (4)  undertake such other duties as are delegated to it

34-25    by the commission.

34-26          (b)  The authority may:

34-27                (1) [(2)  adopt an official seal;]

 35-1                [(3)]  construct, maintain, repair, and operate

 35-2    turnpike projects in this state;

 35-3                (2) [(4)]  acquire, hold, and dispose of property in

 35-4    the exercise of its powers and the performance of its duties under

 35-5    this chapter;

 35-6                (3)  with the approval of the governor and the

 35-7    commission, [(5)] enter into contracts or operating agreements with

 35-8    similar authorities or agencies of another state, including a state

 35-9    of the United Mexican States;

35-10                (4) [(6)]  enter into contracts or agreements necessary

35-11    or incidental to its  duties and powers under this chapter;

35-12                (5) [(7)]  employ consulting engineers, attorneys,

35-13    accountants, construction and financial experts, superintendents,

35-14    managers, and other  employees and agents the authority considers

35-15    necessary and set their compensation;

35-16                (6) [(8)]  receive grants for the construction of a

35-17    turnpike project and receive contributions of money, property,

35-18    labor, or other things of value from any source to be used for the

35-19    purposes for which the grants or contributions are made;

35-20                (7) [(9)]  adopt and enforce rules, if the commission

35-21    concurs, not inconsistent with this chapter for the use of any

35-22    turnpike project; and

35-23                (8) [(10)]  do all things necessary or appropriate to

35-24    carry out the powers expressly granted by this chapter.

35-25          SECTION 7.09.  Section 361.055, Transportation Code, is

35-26    amended to read as follows:

35-27          Sec. 361.055.  SUCCESSOR AGENCY TO AUTHORITY.  The following

 36-1    are considered successor agencies to the Texas Turnpike Authority

 36-2    [authority] for purposes of Section 52-b, Article III, Texas

 36-3    Constitution:

 36-4                (1)  a county, municipality, or local government

 36-5    corporation that leases, buys, operates, or otherwise receives a

 36-6    turnpike project under Subchapter H;

 36-7                (2)  a county with a population of more than 1.5

 36-8    million that constructs a toll road, toll bridge, or turnpike

 36-9    project;

36-10                (3)  a local government corporation serving a county

36-11    with a population of more than 1.5 million that constructs a toll

36-12    road, toll bridge, or turnpike project; [and]

36-13                (4)  an adjacent county in a joint turnpike authority

36-14    with a county with a population of more than 1.5 million that

36-15    constructs a toll road, toll bridge, or turnpike project;

36-16                (5)  the department; and

36-17                (6)  a public or private entity authorized to receive

36-18    funds from the department for the construction, maintenance, or

36-19    operation of toll projects.

36-20          SECTION 7.10.  Section 361.132, Transportation Code, is

36-21    amended to read as follows:

36-22          Sec. 361.132.  ACQUISITION OF PROPERTY.  (a)  The board

36-23    [authority] may acquire, in the name of the state, [authority]

36-24    public or private real property it determines necessary or

36-25    convenient for the construction, expansion, enlargement, extension,

36-26    improvement, or operation of a turnpike project or for otherwise

36-27    carrying out this chapter.

 37-1          (b)  The real property the authority may acquire under this

 37-2    subchapter includes:

 37-3                (1)  public parks, playgrounds, or reservations;

 37-4                (2)  parts of or rights in public parks, playgrounds,

 37-5    or reservations;

 37-6                (3)  rights-of-way;

 37-7                (4)  property rights, including:

 37-8                      (A)  a right of ingress or egress; and

 37-9                      (B)  a reservation right in real property that

37-10    restricts or prohibits for not more than seven years the:

37-11                            (i)  addition of a new improvement on the

37-12    real property;

37-13                            (ii)  addition to or modification of an

37-14    existing improvement on the real property; or

37-15                            (iii)  subdivision of the real property;

37-16                (5)  franchises;

37-17                (6)  easements; and

37-18                (7)  other interests in real property.

37-19          (c)  The board [authority] may acquire the real property by

37-20    any method, including purchase and condemnation.  The board

37-21    [authority] may purchase public or private real property on the

37-22    terms  and at the price the board [authority] and the owner

37-23    consider reasonable.

37-24          (d)  Property necessary or convenient for the construction or

37-25    operation of a turnpike project under Subsection (a) includes an

37-26    interest in real  property, a property right, or materials that the

37-27    authority determines are necessary or convenient to:

 38-1                (1)  protect a turnpike project;

 38-2                (2)  drain a turnpike project;

 38-3                (3)  divert a stream, river, or other watercourse from

 38-4    the right-of-way of a turnpike project;

 38-5                (4)  store materials or equipment used in the

 38-6    construction or maintenance of a turnpike project;

 38-7                (5)  construct or operate a warehouse or other facility

 38-8    used in connection with the construction, maintenance, or operation

 38-9    of a turnpike project;

38-10                (6)  lay out, construct, or maintain a roadside park;

38-11                (7)  lay out, construct, or maintain a parking lot that

38-12    will contribute to the maximum use of a turnpike project with the

38-13    least possible congestion;

38-14                (8)  mitigate an adverse environmental effect that

38-15    directly results from the construction or maintenance of a turnpike

38-16    project; or

38-17                (9)  accomplish any other purpose related to the

38-18    location, construction, improvement, maintenance, beautification,

38-19    preservation, or operation of a turnpike project.

38-20          (e)  The authority shall comply with all relocation

38-21    assistance procedures applicable to the department in connection

38-22    with any displacement of owners or tenants as a consequence of the

38-23    authority's acquisition of real property under this chapter.

38-24          (f)  The authority may acquire timber, earth, stone, gravel,

38-25    or other materials as necessary to carry out a purpose under this

38-26    chapter.

38-27          SECTION 7.11.  Section 361.135, Transportation Code, is

 39-1    amended to read as follows:

 39-2          Sec. 361.135.  CONDEMNATION OF REAL PROPERTY.  (a)  The

 39-3    board, with the concurrence of the commission, [authority] may

 39-4    acquire public or private real property in the name of the state

 39-5    [authority] by the exercise of the power of condemnation under the

 39-6    laws applicable to the exercise of that power on property for

 39-7    public use if:

 39-8                (1)  the authority and the owner cannot agree on a

 39-9    reasonable price for the property; or

39-10                (2)  the owner is legally incapacitated, absent,

39-11    unknown, or unable to convey title.

39-12          (b)  The board, with the concurrence of the commission, [To

39-13    the extent provided by  Subsection (c), the authority] may condemn

39-14    real property that the authority determines is:

39-15                (1)  necessary or appropriate to construct or to

39-16    efficiently operate a turnpike project;

39-17                (2)  necessary to restore public or private property

39-18    damaged or destroyed; [or]

39-19                (3)  necessary for access, approach, and interchange

39-20    roads;

39-21                (4)  necessary for supplemental facilities of the

39-22    authority; or

39-23                (5)  necessary otherwise to carry out this chapter.

39-24          (c)  [The authority may condemn real property  necessary for

39-25    access, approach, and interchange roads but may not condemn

39-26    property:]

39-27                [(1)  that is unnecessary for road and right-of-way

 40-1    purposes; or]

 40-2                [(2)  that is for a supplemental facility for another

 40-3    purpose.]

 40-4          [(d)  The authority may construct a supplemental facility

 40-5    only on real property the authority purchases.]

 40-6          [(e)]  The court having jurisdiction of a condemnation

 40-7    proceeding may:

 40-8                (1)  make orders as are just to the authority and the

 40-9    owners of the real property; and

40-10                (2)  require an undertaking or other security to secure

40-11    the owners against any loss or damage by reason of the board's

40-12    [authority's] failure to accept and pay for the real property.

40-13          (d) [(f)]  An undertaking or security under Subsection (c)(2)

40-14    [(e)(2)] or an act or obligation of the authority or the board does

40-15    not impose any  liability on the state, [or] the authority, or the

40-16    board except liability  that may be paid from the money authorized

40-17    by this chapter.

40-18          SECTION 7.12.  Section 361.136, Transportation Code, is

40-19    amended to read as follows:

40-20          Sec. 361.136.  SEVERANCE OF REAL PROPERTY.  (a)  If a

40-21    turnpike project severs an owner's real property, the authority

40-22    shall pay:

40-23                (1)  the value of the property acquired; and

40-24                (2)  the damages to the remainder of the owner's

40-25    property caused by the severance, including damages caused by the

40-26    inaccessibility of one tract from the other.

40-27          (b)  [The authority shall provide and maintain  without

 41-1    charge a passageway over or under the turnpike project for the

 41-2    owner of the severed real property and the owner's employees and

 41-3    representatives.  The authority is not required to furnish a

 41-4    passageway if the owner waives the requirement or the original

 41-5    tract involved is less than 80 acres.]

 41-6          [(c)]  The authority may negotiate for and purchase the

 41-7    severed real property or either part of the severed real property

 41-8    if the authority and the owner agree on terms for the purchase.

 41-9    [The authority shall sell and dispose of severed real property

41-10    within two years after the date of acquisition.]

41-11          SECTION 7.13.  Section 361.180, Transportation Code, is

41-12    amended to read as follows:

41-13          Sec. 361.180.  TOLLS ON CONVERTED HIGHWAYS [PROHIBITION ON

41-14    TOLLS ON EXISTING FREE HIGHWAYS].  If converted to a toll facility

41-15    under Section 222.072 or 362.0041, the commission [The authority]

41-16    may impose a toll for transit over an existing free public highway

41-17    [only if such  highway is transferred to the authority by the

41-18    commission under Section 222.0041].

41-19          SECTION 7.14.  Section 361.184(b), Transportation Code, is

41-20    amended to read as follows:

41-21          (b)  The board [authority] may  transfer, or direct the

41-22    authority to transfer, into the project revolving fund money from

41-23    any permissible source, including:

41-24                (1)  money from a surplus fund established for a

41-25    turnpike project if the remainder of the surplus fund is not less

41-26    than any minimum amount required by the trust agreement to be

41-27    retained for that project;

 42-1                (2)  money received under Subchapter I or from a

 42-2    transfer of a turnpike project under Subchapter H;

 42-3                (3)  advances from the state highway fund [department

 42-4    authorized under Section 52-b, Article III, Texas Constitution];

 42-5    and

 42-6                (4)  contributions or assistance from the United

 42-7    States, another state, a political subdivision of this state, the

 42-8    United Mexican States, or a political subdivision of the United

 42-9    Mexican States.

42-10          SECTION 7.15.  Section 361.189, Transportation Code, is

42-11    amended to read as follows:

42-12          Sec. 361.189.  USE OF SURPLUS REVENUE.  [(a)]  The commission

42-13    [board] by resolution may authorize the use of surplus revenue of a

42-14    turnpike  project to pay the costs of another turnpike project,

42-15    other than a project financed under Subchapter I, or a toll-free

42-16    project.  The commission [board] may in the resolution prescribe

42-17    terms for the use of the revenue, including the pledge of the

42-18    revenue, but may not take an action under this section that[:]

42-19                [(1)  violates Subsection (b); or]

42-20                [(2)]  violates, impairs, or is inconsistent with a

42-21    bond resolution, trust agreement, or indenture governing the use of

42-22    the surplus revenue.

42-23          [(b)  Except as provided by Subsection (c), the surplus

42-24    revenue of a turnpike project that was  under construction or

42-25    operated by the authority on January 1, 1993, may be used only for:]

42-26                [(1)  the costs associated with the construction,

42-27    expansion, or maintenance of the project producing the revenue; and]

 43-1                [(2)  transfers to the Texas Turnpike Authority

 43-2    feasibility study fund.]

 43-3          [(c)  The board may use revenue from a turnpike project

 43-4    described by Subsection (b) for a purpose authorized by this

 43-5    chapter other than a purpose described by that subsection if:]

 43-6                [(1)  the authority obtains the permission of the

 43-7    commissioners court of each county in which the project is located;

 43-8    or]

 43-9                [(2)  an agreement between the authority and a county

43-10    or local government corporation created by the county for the

43-11    lease, sale, or other conveyance of the project permits the revenue

43-12    to be used for another purpose.]

43-13          SECTION 7.16.  Section 361.232, Transportation Code, is

43-14    amended by adding Subsection (e) to read as  follows:

43-15          (e)  This section does not apply to the conversion of any

43-16    highway that is a part of the state highway system to a turnpike

43-17    project.

43-18          SECTION 7.17.  Section 361.237, Transportation Code, is

43-19    amended to read as follows:

43-20          Sec. 361.237.  OPERATION OF TURNPIKE PROJECT.  A turnpike

43-21    project is a public road subject to all laws applicable to the

43-22    regulation and control of traffic [(a) The authority shall police

43-23    and operate a turnpike project through a force of police,

43-24    toll-takers, and other employees of the authority.]

43-25          [(b)  The authority may arrange with the Department of Public

43-26    Safety for the services of officers of that agency].

43-27          SECTION 7.18.  Section 361.238, Transportation Code, is

 44-1    amended to read as follows:

 44-2          Sec. 361.238.  PAYMENT OF BOND INDEBTEDNESS; CESSATION OR

 44-3    CONTINUATION OF TOLLS[; TRANSFER OF PROJECT TO COMMISSION].  (a)

 44-4    Except as provided by Subsection (b), a  [A] turnpike project [that

 44-5    is in good condition and repair to the satisfaction of the

 44-6    commission] becomes a toll-free [part of the state] highway

 44-7    [system] when:

 44-8                (1)  the bonds issued under this chapter for the

 44-9    project and the interest on the bonds are paid; or

44-10                (2)  firm banking and financial arrangements have been

44-11    made for the discharge and final payment or redemption of the bonds

44-12    in accordance with Section 7A, Chapter 503, Acts of the 54th

44-13    Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes) [a

44-14    sufficient amount to pay the bonds and the interest on the bonds to

44-15    maturity or to redeem the bonds has been set aside in trust for the

44-16    benefit of the bondholders].

44-17          (b)  If the conditions of Subsections (a)(1) and (2) are met,

44-18    the commission may continue to charge a toll sufficient to pay the

44-19    costs of maintaining the facility.  [The Authority shall continue

44-20    to operate as a toll facility a turnpike project that the

44-21    commission determines is not in a state of repair so as to justify

44-22    its acceptance as part of the state highway system.  The authority

44-23    shall continue the tolls then in effect or revise the tolls to

44-24    provide money sufficient to assure payment of the expenses of

44-25    maintenance and operation and the making of repairs and

44-26    replacements as necessary to meet the minimum requirements of the

44-27    commission within the shortest practicable time.]

 45-1          [(c)  The commission shall maintain a turnpike project it

 45-2    accepts free of tolls.  The authority shall deliver to the

 45-3    commission at the time of acceptance any money remaining to the

 45-4    credit of the project after retirement of the bonds issued for the

 45-5    project.  The commission shall deposit the money in a fund to be

 45-6    used to maintain the project facilities.  The commission shall

 45-7    administer the fund in accordance with commission rules.]

 45-8          [(d)  Not later than the first anniversary of the date the

 45-9    commission accepts a turnpike project, the department shall

45-10    advertise for public sale each installation on the project other

45-11    than the road bed and highway sections and shall solicit sealed

45-12    bids for those installations.  The department may reject any or all

45-13    bids but shall dispose of the properties not later than the second

45-14    anniversary of the date the commission accepts title to the

45-15    project.]

45-16          SECTION 7.19.  The heading of Subchapter H, Chapter 361,

45-17    Transportation Code, is amended to read as follows:

45-18              SUBCHAPTER H.  TRANSFER OF TURNPIKE PROJECT TO

45-19           COUNTY, MUNICIPALITY, REGIONAL TOLLWAY AUTHORITY, OR

45-20                       LOCAL GOVERNMENT CORPORATION

45-21          SECTION 7.20.  Sections 361.281, 361.282, and 361.285,

45-22    Transportation Code, are amended to read as follows:

45-23          Sec. 361.281.  APPLICABILITY OF SUBCHAPTER.  This subchapter

45-24    applies only to:

45-25                (1)  a county with a population of more than 1.5

45-26    million;

45-27                (2)  a local government corporation serving a county

 46-1    with a population of more than 1.5 million; [or]

 46-2                (3)  an adjacent county in a joint turnpike authority

 46-3    with a county with a population of more than 1.5 million;

 46-4                (4)  a municipality with a population of more than

 46-5    120,000 that is adjacent to the United Mexican States; or

 46-6                (5)  a regional tollway authority created under Chapter

 46-7    366.

 46-8          Sec. 361.282.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

 46-9    PROJECT.  (a)  The authority may lease, sell, or convey in another

46-10    manner a turnpike project to a county, municipality, regional

46-11    tollway authority, or a local government corporation created under

46-12    Chapter 431.

46-13          (b)  The authority, the commission, and the governor must

46-14    approve the transfer of the turnpike project as being in the best

46-15    interests of the state and the entity receiving the turnpike

46-16    project [county].

46-17          Sec. 361.285.  APPROVAL OF AGREEMENT BY ATTORNEY GENERAL.

46-18    (a)  An agreement for the lease, sale, or conveyance of a turnpike

46-19    project under this subchapter shall be submitted to the attorney

46-20    general for approval as part of the records of proceedings relating

46-21    to the issuance of bonds of the county, municipality, regional

46-22    tollway  authority, or local government corporation.

46-23          (b)  If the attorney general determines that the agreement is

46-24    in accordance with law, the attorney general shall approve the

46-25    agreement and deliver to the commission a copy of the legal opinion

46-26    of the attorney general stating that approval.

46-27          SECTION 7.21.  Section 361.331(a), Transportation Code, is

 47-1    amended to read as follows:

 47-2          (a)  The authority may designate two or more turnpike

 47-3    projects that are wholly or partly  located in a metropolitan

 47-4    planning organization [planning region of a council of governments]

 47-5    as a pooled turnpike project after:

 47-6                (1)  conducting a public hearing; and

 47-7                (2)  obtaining the approval of the commission[; and]

 47-8                [(3)  obtaining a resolution adopted by the

 47-9    commissioners court of the county that:]

47-10                      [(A)  approves the action; and]

47-11                      [(B)  specifies the date the pooled project

47-12    becomes toll free].

47-13          SECTION 7.22.  Section 362.0041, Transportation Code, is

47-14    amended to read as follows:

47-15          Sec. 362.0041.  CONVERSION [ACQUISITION] OF PROJECTS.  (a)

47-16    If the commission finds that the conversion of a segment of the

47-17    free state highway system to a toll facility is the most feasible

47-18    and economic means to accomplish necessary expansion improvements,

47-19    or extensions to the state highway system, that segment may[, on

47-20    approval of the governor,] be converted [transferred] by order of

47-21    the commission to [the authority.  The authority may receive such

47-22    segment of highway, thereafter to be owned, operated, and

47-23    maintained as] a turnpike project under  Chapter 361.

47-24          (b)  [The authority shall reimburse the commission for the

47-25    cost of the transferred highway, unless the commission finds that

47-26    the transfer will result in substantial net benefits to the state,

47-27    the department, and the traveling public that exceed that cost.

 48-1    The cost shall include the total dollar amount expended by the

 48-2    department for the original construction of the highway, including

 48-3    all costs associated with the preliminary engineering and design

 48-4    engineering for plans, specifications, and estimates, the

 48-5    acquisition of necessary right-of-way, and actual construction of

 48-6    the highway and all necessary appurtenant facilities.]

 48-7          [(c)  The commission shall, coincident with the transfer,

 48-8    remove the segment of highway from the designated state highway

 48-9    system and shall subsequently have no liability, responsibility, or

48-10    duty for the maintenance or operation of the highway.]

48-11          [(d)]  Prior to converting [transferring] a segment of the

48-12    state highway system  under this section, the commission shall

48-13    conduct a public hearing for the purpose of receiving comments from

48-14    interested persons concerning the proposed transfer.  Notice of the

48-15    hearing shall be published in the Texas Register, one or more

48-16    newspapers of general circulation, and a newspaper, if any,

48-17    published in the county or counties in which the involved highway

48-18    is located.

48-19          (c) [(e)]  The commission shall adopt rules implementing this

48-20    section, such rules to include criteria and guidelines for the

48-21    approval of a conversion [transfer] of a  highway.

48-22          SECTION 7.23.  Subtitle G, Title 6, Transportation Code, is

48-23    amended by adding Chapter 366 to  read as follows:

48-24                CHAPTER 366.  REGIONAL TOLLWAY AUTHORITIES

48-25                     SUBCHAPTER A.  GENERAL PROVISIONS

48-26          Sec. 366.001.  SHORT TITLE.  This chapter may be cited as the

48-27    Regional Tollway  Authority Act.

 49-1          Sec. 366.002.  PURPOSES; LIBERAL CONSTRUCTION.  (a)  The

 49-2    purposes of this chapter are:

 49-3                (1)  the expansion and improvement of transportation

 49-4    facilities and systems in this state;

 49-5                (2)  the creation of regional tollway authorities to

 49-6    secure and acquire rights-of-way for urgently needed transportation

 49-7    systems and to plan, design, construct, operate, expand, extend,

 49-8    and modify those systems; and

 49-9                (3)  the reduction of burdens and demands on the

49-10    limited money available to the commission and an increase in the

49-11    effectiveness and efficiency of the commission.

49-12          (b)  This chapter shall be liberally construed to effect its

49-13    purposes.

49-14          Sec. 366.003.  DEFINITIONS.  In this chapter:

49-15                (1)  "Authority" means a regional tollway authority

49-16    organized under this chapter.

49-17                (2)  "Board" means the board of directors of an

49-18    authority organized under this chapter.

49-19                (3)  "Bond" means all bonds, certificates, notes, and

49-20    other obligations of an authority authorized by this chapter, any

49-21    other statute, or the Texas Constitution.

49-22                (4)  "Bond proceedings" means a bond resolution and any

49-23    bond indenture authorized by the bond resolution, any credit

49-24    agreement entered into in connection with the bonds or the payments

49-25    to be made under the agreement, and any other agreement between an

49-26    authority and another person providing security for the payment of

49-27    bonds.

 50-1                (5)  "Bond resolution" means an order or resolution of

 50-2    an authority's board authorizing the issuance of bonds.

 50-3                (6)  "Bondholder" includes a trustee acting on behalf

 50-4    of an owner of bonds under the terms of a bond indenture.

 50-5                (7)  "Highway" means a road, highway, farm-to-market

 50-6    road, or street under the supervision of the state or a political

 50-7    subdivision of the state.

 50-8                (8)  "Local governmental entity" means a political

 50-9    subdivision of the state, including a municipality or a county, a

50-10    political subdivision of a county, a group of adjoining counties, a

50-11    district organized or operating under Section 52, Article III, or

50-12    Section 59, Article XVI, Texas Constitution, or a nonprofit

50-13    corporation, including a transportation corporation created under

50-14    Chapter 431.

50-15                (9)  "Revenue" means the tolls, rents, and other money

50-16    received by an authority from the ownership or operation of a

50-17    turnpike project.

50-18                (10)  "System" means a turnpike project or any

50-19    combination of turnpike projects designated as a system by the

50-20    board under  Section 366.034.

50-21                (11)  "Turnpike project" means a highway of any number

50-22    of lanes, with or without grade separations, owned or operated by

50-23    an authority under this chapter and any improvement, extension, or

50-24    expansion to that highway, including:

50-25                      (A)  an improvement to relieve traffic congestion

50-26    and promote safety;

50-27                      (B)  a bridge, tunnel, overpass, underpass,

 51-1    interchange, service road, ramp, entrance plaza, approach, or

 51-2    tollhouse;

 51-3                      (C)  an administration, storage, or other

 51-4    building the authority considers necessary to operate the turnpike

 51-5    project;

 51-6                      (D)  a service station, hotel, motel, restaurant,

 51-7    parking area or structure, rest stop, park, and other improvement

 51-8    or amenity an authority considers necessary, useful, or beneficial

 51-9    for the operation of a turnpike project; and

51-10                      (E)  property rights, easements, and interests an

51-11    authority acquires to construct or operate the turnpike project.

51-12          Sec. 366.004.  CONSTRUCTION COSTS DEFINED.  (a)  The cost of

51-13    acquisition, construction, improvement,  extension, or expansion of

51-14    a turnpike project or system under this chapter includes the cost

51-15    of:

51-16                (1)  the actual acquisition, construction, improvement,

51-17    extension, or expansion of the turnpike project or system;

51-18                (2)  the acquisition of real property, rights-of-way,

51-19    property rights, easements, and other interests in real property;

51-20                (3)  machinery and equipment;

51-21                (4)  interest payable before, during, and after

51-22    acquisition, construction, improvement, extension, or expansion as

51-23    provided in the bond proceedings;

51-24                (5)  traffic estimates, revenue estimates, engineering

51-25    and legal services, plans, specifications, surveys, appraisals,

51-26    construction cost estimates, and other expenses necessary or

51-27    incidental to determining the feasibility of the construction,

 52-1    improvement, extension, or expansion;

 52-2                (6)  necessary or incidental administrative, legal, and

 52-3    other expenses;

 52-4                (7)  compliance with laws, regulations, and

 52-5    administrative rulings;

 52-6                (8)  financing; and

 52-7                (9)  expenses related to the initial operation of the

 52-8    turnpike project or system.

 52-9          (b)  Costs attributable to a turnpike project or system and

52-10    incurred before the issuance of bonds to finance the turnpike

52-11    project or system may be reimbursed from the proceeds of sale of

52-12    the bonds.

52-13             (Sections 366.005-366.030 reserved for expansion

52-14    SUBCHAPTER B.  CREATION AND POWERS OF REGIONAL TOLLWAY AUTHORITIES

52-15          Sec. 366.031.  CREATION AND EXPANSION OF A REGIONAL TOLLWAY

52-16    AUTHORITY.  (a)  Two or more counties, acting through their

52-17    respective commissioners courts, may by order passed by each

52-18    commissioners court create a regional tollway authority under this

52-19    chapter if:

52-20                (1)  one of the counties has a population of not less

52-21    than 1,500,000; and

52-22                (2)  the counties form a contiguous territory.

52-23          (b)  A commissioners court may by resolution petition an

52-24    established authority for inclusion in the authority if:

52-25                (1)  the county is contiguous to the authority; or

52-26                (2)  a turnpike project of the authority is situated in

52-27    or planned for the county.

 53-1          (c)  On approval of the board of an authority receiving a

 53-2    petition under Subsection (b), the county becomes part of the

 53-3    authority.

 53-4          Sec. 366.032.  NATURE OF REGIONAL TOLLWAY AUTHORITY.  (a)  An

 53-5    authority created under this chapter  is a body politic and

 53-6    corporate and a political subdivision of this state.

 53-7          (b)  An authority is a governmental unit as that term is

 53-8    defined in Chapter 101, Civil Practice and Remedies Code.

 53-9          (c)  The exercise by an authority of the powers conferred by

53-10    this chapter in the acquisition, design, financing, construction,

53-11    operation, and maintenance of a turnpike project or system is:

53-12                (1)  in all respects for the benefit of the people of

53-13    the counties in which an authority operates and of the people of

53-14    this state, for the increase of their commerce and prosperity, and

53-15    for the improvement of their health, living conditions, and public

53-16    safety; and

53-17                (2)  an essential governmental function of the state.

53-18          (d)  The operations of an authority are governmental, not

53-19    proprietary, functions.

53-20          Sec. 366.033.  GENERAL POWERS.  (a)  An authority, acting

53-21    through its board, may:

53-22                (1)  adopt rules for the regulation of its affairs and

53-23    the conduct of its business;

53-24                (2)  adopt an official seal;

53-25                (3)  study, evaluate, design, acquire, construct,

53-26    maintain, repair, and operate turnpike projects, individually or as

53-27    one or more systems;

 54-1                (4)  acquire, hold, and dispose of property in the

 54-2    exercise of its powers and the performance of its duties under this

 54-3    chapter;

 54-4                (5)  enter into contracts or operating agreements with

 54-5    similar authorities or agencies of the United States, a state of

 54-6    the United States, the United Mexican States, or a state of the

 54-7    United Mexican States;

 54-8                (6)  enter into contracts or agreements necessary or

 54-9    incidental to its duties and powers under this chapter;

54-10                (7)  cooperate and work directly with property owners

54-11    and governmental agencies and officials to support an activity

54-12    required to promote or develop a turnpike project or system;

54-13                (8)  employ and set the compensation of administrators,

54-14    consulting engineers, attorneys, accountants, construction and

54-15    financial experts, superintendents, managers, full-time and

54-16    part-time employees, agents, consultants, and such other persons as

54-17    the authority considers necessary or useful;

54-18                (9)  receive loans, gifts, grants, and other

54-19    contributions for the construction of a turnpike project or system

54-20    and receive contributions of money, property, labor, or other

54-21    things of value from any source, including the United States, a

54-22    state of the United States, the United Mexican States, a state of

54-23    the United Mexican States, the commission, the department, any

54-24    subdivision of the state, or any other local governmental or

54-25    private entity, to be used for the purposes for which the grants or

54-26    contributions are made, and enter into any agreement necessary for

54-27    the grants or contributions;

 55-1                (10)  install, construct, maintain, repair, renew,

 55-2    relocate, and remove public utility facilities in, on, along, over,

 55-3    or under a turnpike project;

 55-4                (11)  organize a corporation under Chapter 431 for the

 55-5    promotion and development of turnpike projects and systems;

 55-6                (12)  adopt and enforce rules not inconsistent with

 55-7    this chapter for the use of any turnpike project or system,

 55-8    including traffic and other public safety rules;

 55-9                (13)  enter into leases, operating agreements, service

55-10    agreements, licenses, franchises, and similar agreements with

55-11    public or private parties governing the parties' use of all or any

55-12    portion of a turnpike project and the rights and obligations of the

55-13    authority with respect to a turnpike project; and

55-14                (14)  do all things necessary or appropriate to carry

55-15    out the powers expressly granted by this chapter.

55-16          (b)  Property comprising a part of a turnpike project or a

55-17    system is not subject to condemnation or the power of eminent

55-18    domain by any person, including a governmental entity.

55-19          (c)  An authority may, if requested by the commission,

55-20    perform any function not specified by this chapter to promote or

55-21    develop turnpike projects and systems in this state.

55-22          (d)  An authority may sue and be sued and plead and be

55-23    impleaded in its own name.

55-24          (e)  An authority may rent, lease, franchise, license, or

55-25    otherwise make portions of its properties available for use by

55-26    others in furtherance of its powers under this chapter by

55-27    increasing the feasibility or the revenue of a turnpike project or

 56-1    system.

 56-2          (f)  An authority and any local governmental entity may enter

 56-3    into a contract under which the authority will operate a turnpike

 56-4    project or system on behalf of the local governmental entity.  The

 56-5    payments to be made to an authority under the contract shall

 56-6    constitute operating expenses of the facility or system that is to

 56-7    be operated under the contract, and the contract may extend for a

 56-8    number of years as the parties agree.

 56-9          Sec. 366.034.  ESTABLISHMENT OF TURNPIKE SYSTEMS.  (a)  If an

56-10    authority determines that the traffic  needs of the counties in

56-11    which it operates and the traffic needs of the surrounding region

56-12    could be most efficiently and economically met by jointly operating

56-13    two or more turnpike projects as one operational and financial

56-14    enterprise, it may create a system comprised of those turnpike

56-15    projects.  An authority may create more than one system and may

56-16    combine two or more systems into one system.  An authority may

56-17    finance, acquire, construct, and operate additional turnpike

56-18    projects as additions to and expansions of a system if the

56-19    authority determines that the turnpike project could most

56-20    efficiently and economically be acquired and constructed if it were

56-21    a part of the system and that the addition will benefit the system.

56-22          (b)  The revenue of a system shall be accounted for

56-23    separately and may not be commingled with the revenue of a turnpike

56-24    project that is not a part of the system or with the revenue of

56-25    another system.

56-26          Sec. 366.035.  CONVERSION OF STATE HIGHWAY SYSTEM PROJECTS.

56-27    (a)  If the commission determines that the  most feasible and

 57-1    economic means to accomplish necessary expansion, improvements, or

 57-2    extensions to the state highway system is the conversion to a

 57-3    turnpike project of a segment of the free state highway system, any

 57-4    segment located in a county of an authority or a county in which an

 57-5    authority operates a turnpike project or in any county adjacent to

 57-6    those counties may, on approval of the governor and the affected

 57-7    authority, be transferred by order of the commission to that

 57-8    authority.  An authority that receives the segment of highway may

 57-9    own, operate, and maintain the segment as a turnpike project or

57-10    system or a part of a turnpike project or system under this

57-11    chapter.

57-12          (b)  An authority shall reimburse the commission for the cost

57-13    of a transferred highway, unless the commission determines that the

57-14    transfer will result in substantial net benefits to the state, the

57-15    department, and the traveling public that exceed that cost.  The

57-16    cost includes the total amount expended by the department for the

57-17    original construction of the highway, including all costs

57-18    associated with the preliminary engineering and design engineering

57-19    for plans, specifications, and estimates, the acquisition of

57-20    necessary rights-of-way, and actual construction of the highway and

57-21    all necessary appurtenant facilities.  Costs anticipated to be

57-22    expended to expand, improve, or extend the highway shall be

57-23    deducted from the costs to be reimbursed to the commission.

57-24          (c)  The commission shall, at the time of a transfer, remove

57-25    the segment of highway from the state highway system.  After a

57-26    transfer the commission has no liability, responsibility, or duty

57-27    for the maintenance or operation of the highway.

 58-1          (d)  Before transferring a segment of the state highway

 58-2    system under this section, the commission shall conduct a public

 58-3    hearing to receive comments from interested persons concerning the

 58-4    proposed transfer.  Notice of the hearing must be published in the

 58-5    Texas Register, one or more newspapers of general circulation in

 58-6    the counties in which the segment is located, and a newspaper, if

 58-7    any, published in the counties of the applicable authority.

 58-8          (e)  The commission shall adopt rules implementing this

 58-9    section.  The rules shall include criteria and guidelines for the

58-10    approval of a transfer of a highway.

58-11          (f)  An authority shall adopt rules providing criteria and

58-12    guidelines for approving the acceptance of a highway under this

58-13    section.

58-14             (Sections 366.036-366.070 reserved for expansion

58-15          SUBCHAPTER C. FEASIBILITY OF REGIONAL TURNPIKE PROJECTS

58-16          Sec. 366.071.  EXPENDITURES FOR FEASIBILITY STUDIES.  (a)  An

58-17    authority may pay the expenses of studying the cost and

58-18    feasibility and any other expenses relating to the preparation and

58-19    issuance of bonds for a proposed turnpike project or system by:

58-20                (1)  using legally available revenue derived from an

58-21    existing turnpike project or system;

58-22                (2)  borrowing money and issuing bonds or entering into

58-23    a loan agreement payable out of legally available revenue

58-24    anticipated to be derived from the operation of an existing

58-25    turnpike project or system; or

58-26                (3)  pledging to the payment of the bonds or loan

58-27    agreements legally available revenue anticipated to be derived from

 59-1    the operation of an existing turnpike project or system or revenue

 59-2    legally available to the authority from another source.

 59-3          (b)  Money spent under this section for a proposed turnpike

 59-4    project or system must be reimbursed to the turnpike project or

 59-5    system from which the money was spent from the proceeds of bonds

 59-6    issued for the acquisition and construction of the proposed

 59-7    turnpike project or system.

 59-8          (c)  The use of any money of a turnpike project or system to

 59-9    study the feasibility of another turnpike project or system or used

59-10    to repay any money used for that purpose does not constitute an

59-11    operating expense of the turnpike project or system producing the

59-12    revenue and may only be paid from the surplus money of the turnpike

59-13    project or system.

59-14          Sec. 366.072.  FEASIBILITY STUDY FUND.  (a)  An authority may

59-15    maintain a feasibility study fund.  The  fund is a revolving fund

59-16    held in trust by a banking institution chosen by the authority and

59-17    shall be kept separate from the money for any turnpike project or

59-18    system.

59-19          (b)  An authority may transfer an amount from a surplus fund

59-20    established for a turnpike project or system to the authority's

59-21    feasibility study fund if the remainder of the surplus fund is not

59-22    less than any minimum amount required by the bond proceedings to be

59-23    retained for that turnpike project or system.

59-24          (c)  Money in the feasibility study fund may be used only to

59-25    pay the expenses of studying the cost and feasibility and any other

59-26    expenses relating to:

59-27                (1)  the preparation and issuance of bonds for the

 60-1    acquisition and construction of a proposed turnpike project or

 60-2    system;

 60-3                (2)  the financing of the improvement, extension, or

 60-4    expansion of an existing turnpike project or system; and

 60-5                (3)  private participation, as authorized by law, in

 60-6    the financing of a proposed turnpike project or system, the

 60-7    refinancing of an existing turnpike project or system, or the

 60-8    improvement, extension, or expansion of a turnpike project or

 60-9    system.

60-10          (d)  Money spent under Subsection (c) for a proposed turnpike

60-11    project or system must be reimbursed from the proceeds of turnpike

60-12    revenue bonds issued for, or other proceeds that may be used for,

60-13    the acquisition, construction, improvement, extension, expansion,

60-14    or operation of the turnpike project or system.

60-15          (e)  For a purpose described by Subsection (c), an authority

60-16    may borrow money and issue promissory notes or other

60-17    interest-bearing evidences of indebtedness payable out of its

60-18    feasibility study fund, pledging money in the fund or to be placed

60-19    in the fund.

60-20          Sec. 366.073.  FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,

60-21    OTHER LOCAL GOVERNMENTAL ENTITY, OR PRIVATE GROUP.  (a)  One or

60-22    more municipalities, counties, or local governmental entities, a

60-23    combination of municipalities, counties, and local governmental

60-24    entities, or a private group or combination of individuals in this

60-25    state may pay all or part of the expenses of studying the cost and

60-26    feasibility and any other expenses relating to:

60-27                (1)  the preparation and issuance of bonds for the

 61-1    acquisition and construction of a proposed turnpike project or

 61-2    system by an authority;

 61-3                (2)  the improvement, extension, or expansion of an

 61-4    authority's existing turnpike project or system; or

 61-5                (3)  the use of private participation under applicable

 61-6    law in connection with the acquisition, construction, improvement,

 61-7    expansion, extension, maintenance, repair, or operation of a

 61-8    turnpike project or system by an authority.

 61-9          (b)  Money spent under Subsection (a) for an authority's

61-10    proposed turnpike project or system is reimbursable without

61-11    interest and with the consent of the authority to the person paying

61-12    the expenses described in Subsection (a) out of the proceeds from

61-13    turnpike revenue bonds issued for or other proceeds that may be

61-14    used for the acquisition, construction, improvement, extension,

61-15    expansion, or operation of the turnpike project or system.

61-16             (Sections 366.074-366.110 reserved for expansion

61-17                     SUBCHAPTER D.  TURNPIKE FINANCING

61-18          Sec. 366.111.  TURNPIKE REVENUE BONDS.  (a)  An authority, by

61-19    adoption of a bond resolution, may authorize the issuance of bonds

61-20    to pay all or part of the cost of a turnpike project or system, to

61-21    refund any bonds previously issued for the turnpike project or

61-22    system, or to pay for all or part of the cost of a turnpike project

61-23    or system that will become a part of another system.

61-24          (b)  As determined in the bond resolution, the bonds of each

61-25    issue shall:

61-26                (1)  be dated;

61-27                (2)  bear interest at the rate or rates and beginning

 62-1    on the dates, as authorized by law, or bear no interest;

 62-2                (3)  mature at the time or times, not exceeding 40

 62-3    years from their date or dates; and

 62-4                (4)  be made redeemable before maturity at the price or

 62-5    prices and under the terms provided by the bond resolution.

 62-6          (c)  An authority may sell the bonds at public or private

 62-7    sale in the manner and for the price it determines to be in the

 62-8    best interest of the authority.

 62-9          (d)  The proceeds of each bond issue shall be disbursed in

62-10    the manner and under the restrictions, if any, the authority

62-11    provides in the bond resolution.

62-12          (e)  Additional bonds may be issued in the same manner to pay

62-13    the costs of a turnpike project or system.  Unless otherwise

62-14    provided in the bond resolution, the additional bonds shall be on a

62-15    parity, without preference or priority, with bonds previously

62-16    issued and payable from the revenue of the turnpike project or

62-17    system.  In addition, an authority may issue bonds for a turnpike

62-18    project or system secured by a lien on the revenue of the turnpike

62-19    project or system subordinate to the lien on the revenue securing

62-20    other bonds issued for the turnpike project or system.

62-21          (f)  If the proceeds of a bond issue exceed the cost of the

62-22    turnpike project or system for which the bonds were issued, the

62-23    surplus shall be segregated from the other money of the authority

62-24    and used only for the purposes specified in the bond resolution.

62-25          (g)  Bonds issued and delivered under this chapter and

62-26    interest coupons on the bonds are a security under Chapter 8,

62-27    Business & Commerce Code.

 63-1          (h)  Bonds issued under this chapter and income from the

 63-2    bonds, including any profit made on the sale or transfer of the

 63-3    bonds, are exempt from taxation in this state.

 63-4          Sec. 366.112.  INTERIM BONDS.  (a)  An authority may, before

 63-5    issuing definitive bonds, issue interim bonds, with or  without

 63-6    coupons, exchangeable for definitive bonds.

 63-7          (b)  The interim bonds may be authorized and issued in

 63-8    accordance with this chapter, without regard to the requirements,

 63-9    restrictions, or procedural provisions contained in any other law.

63-10          (c)  A bond resolution authorizing interim bonds may provide

63-11    that the interim bonds recite that the bonds are issued under this

63-12    chapter.  The recital is conclusive evidence of the validity and

63-13    the regularity of the bonds' issuance.

63-14          Sec. 366.113.  PAYMENT OF BONDS; STATE AND COUNTY CREDIT NOT

63-15    PLEDGED.  (a)  The principal of, interest on, and any redemption

63-16    premium on bonds issued by an authority are payable solely from:

63-17                (1)  the revenue of the turnpike project or system for

63-18    which the bonds are issued, including tolls pledged to pay the

63-19    bonds;

63-20                (2)  payments made under an agreement with the

63-21    commission or a local governmental entity as provided by Subchapter

63-22    G;

63-23                (3)  money derived from any other source available to

63-24    the authority, other than money derived from a turnpike project

63-25    that is not part of the same system or money derived from a

63-26    different system, except to the extent that the surplus revenue of

63-27    a turnpike project or system has been pledged for that purpose; and

 64-1                (4)  amounts received under a credit agreement relating

 64-2    to the turnpike project or system for which the bonds are issued.

 64-3          (b)  Bonds issued under this chapter do not constitute a debt

 64-4    of the state or any of the counties of an authority or a pledge of

 64-5    the faith and credit of the state or any of the counties.  Each

 64-6    bond must contain on its face a statement to the effect that the

 64-7    state, the authority, and the counties of the authority are not

 64-8    obligated to pay the bond or the interest on the bond from a source

 64-9    other than the amount pledged to pay the bond and the interest on

64-10    the bond, and neither the faith and credit and taxing power of the

64-11    state or the counties of the authority are pledged to the payment

64-12    of the principal of or interest on the bond.

64-13          (c)  An authority may not incur financial obligations that

64-14    cannot be paid from revenue derived from owning or operating the

64-15    authority's turnpike projects and systems or from other revenue

64-16    provided by law.

64-17          Sec. 366.114.  EFFECT OF LIEN.  (a)  A lien on or a pledge of

64-18    revenue from a turnpike project or system under this chapter or on

64-19    a reserve, replacement, or other fund established in connection

64-20    with a bond issued under this chapter:

64-21                (1)  is enforceable at the time of payment for and

64-22    delivery of the bond;

64-23                (2)  applies to an item on hand or subsequently

64-24    received;

64-25                (3)  applies without physical delivery of an item or

64-26    other act; and

64-27                (4)  is enforceable against any person having any

 65-1    claim, in tort, contract, or other remedy, against the applicable

 65-2    authority without regard to whether the person has notice of the

 65-3    lien or pledge.

 65-4          (b)  A bond resolution is not required to be recorded except

 65-5    in the regular records of the authority.

 65-6          Sec. 366.115.  BOND INDENTURE.  (a)  Bonds issued under this

 65-7    chapter may be secured by a bond  indenture between the authority

 65-8    and a corporate trustee that is a trust company or a bank that has

 65-9    the powers of a trust company.

65-10          (b)  A bond indenture may pledge or assign the tolls and

65-11    other revenue to be received but may not convey or mortgage any

65-12    part of a turnpike project or system.

65-13          (c)  A bond indenture may:

65-14                (1)  set forth the rights and remedies of the

65-15    bondholders and the trustee;

65-16                (2)  restrict the individual right of action by

65-17    bondholders as is customary in trust agreements or indentures of

65-18    trust securing corporate bonds and debentures; and

65-19                (3)  contain provisions the authority determines

65-20    reasonable and proper for the security of the bondholders,

65-21    including covenants:

65-22                      (A)  establishing the authority's duties relating

65-23    to:

65-24                            (i)  the acquisition of property;

65-25                            (ii)  the construction, maintenance,

65-26    operation, and repair of and insurance for a turnpike project or

65-27    system; and

 66-1                            (iii)  custody, safeguarding, and

 66-2    application of money;

 66-3                      (B)  prescribing events that constitute default;

 66-4                      (C)  prescribing terms on which any or all of the

 66-5    bonds become or may be declared due before maturity; and

 66-6                      (D)  relating to the rights, powers, liabilities,

 66-7    or duties that arise on the breach of an authority's duty.

 66-8          (d)  The expenses incurred in carrying out a trust agreement

 66-9    may be treated as part of the cost of operating the turnpike

66-10    project.

66-11          (e)  In addition to all other rights by mandamus or other

66-12    court proceeding, an owner or trustee of a bond issued under this

66-13    chapter may enforce the owner's rights against an issuing

66-14    authority, the authority's employees, the authority's board, or an

66-15    agent or employee of the authority's board and is entitled to:

66-16                (1)  require the authority and the board to impose and

66-17    collect tolls, charges, and other revenue sufficient to carry out

66-18    any agreement contained in the bond proceedings; and

66-19                (2)  apply for and obtain the appointment of a receiver

66-20    for the turnpike project or system.

66-21          Sec. 366.116.  APPROVAL OF BONDS BY ATTORNEY GENERAL.

66-22    (a)  An authority shall submit to the  attorney general for

66-23    examination a transcript of proceedings relating to bonds

66-24    authorized under this chapter.  The transcript shall include the

66-25    bond proceedings and any contract securing or providing revenue for

66-26    the payment of the bonds.

66-27          (b)  If the attorney general determines that the bonds, the

 67-1    bond proceedings, and any supporting contract are authorized by

 67-2    law, the attorney general shall approve the bonds and deliver to

 67-3    the comptroller:

 67-4                (1)  a copy of the legal opinion of the attorney

 67-5    general stating the approval; and

 67-6                (2)  the record of proceedings relating to the

 67-7    authorization of the bonds.

 67-8          (c)  On receipt of the legal opinion of the attorney general

 67-9    and the record of proceedings relating to the authorization of the

67-10    bonds, the comptroller shall register the record of proceedings.

67-11          (d)  After approval by the attorney general, the bonds, the

67-12    bond proceedings, and any supporting contract are valid,

67-13    enforceable, and incontestable in any court or other forum for any

67-14    reason and are binding obligations according to their terms for all

67-15    purposes.

67-16          Sec. 366.117.  FURNISHING OF INDEMNIFYING BONDS OR PLEDGES OF

67-17    SECURITIES.  (a)  A bank or trust company incorporated under the

67-18    laws of this state that acts as depository of the proceeds of bonds

67-19    or of revenue may furnish indemnifying bonds or pledge securities

67-20    that an authority requires.

67-21          (b)  Bonds of an authority may secure the deposit of public

67-22    money of the state or a political subdivision of the state to the

67-23    extent of the lesser of the face value of the bonds or their market

67-24    value.

67-25          Sec. 366.118.  APPLICABILITY OF OTHER LAW; CONFLICTS.  All

67-26    laws affecting the issuance of bonds by local governmental

67-27    entities, including Chapter 656, Acts of the 68th Legislature,

 68-1    Regular Session, 1983 (Article 717q, Vernon's Texas Civil

 68-2    Statutes), Chapter 3, Acts of the 61st Legislature, Regular

 68-3    Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), the

 68-4    Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil

 68-5    Statutes), and Chapter 53, Acts of the 70th Legislature, 2nd Called

 68-6    Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes),

 68-7    apply to bonds issued under this chapter.  To the extent of a

 68-8    conflict between those laws and this chapter, the provisions of

 68-9    this chapter prevail.

68-10             (Sections 366.119-366.160 reserved for expansion

68-11          SUBCHAPTER E.  ACQUISITION, CONSTRUCTION, AND OPERATION

68-12                           OF TURNPIKE PROJECTS

68-13          Sec. 366.161.  TURNPIKE PROJECTS EXTENDING INTO OTHER

68-14    COUNTIES.  An authority may acquire, construct, operate, maintain,

68-15    expand, or extend a turnpike project in:

68-16                (1)  a county that is a part of the authority;

68-17                (2)  a county in which the authority operates or is

68-18    constructing a turnpike project if the turnpike project in the

68-19    affected county is a continuation of the authority's turnpike

68-20    project or system extending from an adjacent county; or

68-21                (3)  a county in which the authority operates or is

68-22    constructing a turnpike project that is not a continuation of the

68-23    authority's turnpike project or system if the commissioners court

68-24    of the county and the commission have approved the project.

68-25          Sec. 366.162.  POWERS AND PROCEDURES OF AUTHORITY IN

68-26    ACQUIRING PROPERTY.  (a)  An authority may construct or improve a

68-27    turnpike project on real property, including a right-of-way

 69-1    acquired by the authority or provided to the authority for that

 69-2    purpose by the commission, a political subdivision of this state,

 69-3    or any other local governmental entity.

 69-4          (b)  Except as provided by this chapter, an authority has the

 69-5    same powers and may use the same procedures as the commission in

 69-6    acquiring property.

 69-7          Sec. 366.163.  ACQUISITION OF PROPERTY.  (a)  An authority

 69-8    may acquire in the name of the authority  public or private real

 69-9    and other property it determines necessary or convenient for the

69-10    design, financing, construction, operation, maintenance, expansion,

69-11    or extension of a turnpike project or for otherwise carrying out

69-12    this chapter.

69-13          (b)  The property an authority may acquire under this

69-14    subchapter includes all or any portion of, and rights in and to:

69-15                (1)  public or private land, streets, alleys,

69-16    rights-of-way, parks, playgrounds, and reservations;

69-17                (2)  franchises;

69-18                (3)  easements;

69-19                (4)  licenses; and

69-20                (5)  other interests in real and other property.

69-21          (c)  An authority may acquire real property by any method,

69-22    including purchase and condemnation.  An authority may purchase

69-23    public or private real property on the terms and at the price the

69-24    authority and the property owner consider reasonable.

69-25          Sec. 366.164.  RIGHT OF ENTRY.  (a)  To acquire property

69-26    necessary or useful in connection with a turnpike project, an

69-27    authority may enter any real property, water, or premises to make a

 70-1    survey, geotechnical evaluation, sounding, or examination.

 70-2          (b)  An entry under Subsection (a) is not:

 70-3                (1)  a trespass; or

 70-4                (2)  an entry under a pending condemnation proceeding.

 70-5          Sec. 366.165.  CONDEMNATION OF REAL PROPERTY.  (a)  Subject

 70-6    to Subsection (c), an authority may  acquire public or private real

 70-7    property in the name of the authority by the exercise of the power

 70-8    of condemnation under the laws applicable to the exercise of that

 70-9    power on property for public use if:

70-10                (1)  the authority and the property owner cannot agree

70-11    on a reasonable price for the property; or

70-12                (2)  the property owner is legally incapacitated,

70-13    absent, unknown, or unable to convey title.

70-14          (b)  An authority may condemn real property that the

70-15    authority determines is:

70-16                (1)  necessary or appropriate to construct or to

70-17    efficiently operate a turnpike project;

70-18                (2)  necessary to restore public or private property

70-19    damaged or destroyed;

70-20                (3)  necessary for access, approach, and interchange

70-21    roads;

70-22                (4)  necessary for supplemental facilities of the

70-23    authority;

70-24                (5)  necessary to provide proper drainage and ground

70-25    slope for a turnpike project; or

70-26                (6)  necessary otherwise to implement this chapter.

70-27          (c)  An authority's acquisition of any real or other property

 71-1    of the commission under this section or any other section of this

 71-2    chapter, or an authority's relocation, rerouting, disruption, or

 71-3    alteration of any facility of the commission is considered a

 71-4    conversion of a state highway under Section 366.035 and is subject

 71-5    to all requirements and approvals of a conversion under that

 71-6    section.

 71-7          Sec. 366.166.  DECLARATION OF TAKING.  (a)  An authority may

 71-8    file a declaration of taking with the  clerk of the court:

 71-9                (1)  in which the authority files a condemnation

71-10    petition under Chapter 21, Property Code; or

71-11                (2)  to which the case is assigned.

71-12          (b)  An authority may file the declaration of taking

71-13    concurrently with or subsequent to the petition, but may not file

71-14    the declaration after the special commissioners have made an award

71-15    in the condemnation proceeding.

71-16          (c)  The declaration of taking must include:

71-17                (1)  a specific reference to the legislative authority

71-18    for the condemnation;

71-19                (2)  a description and plot plan of the real property

71-20    to be condemned, including the following information if applicable:

71-21                      (A)  the municipality in which the property is

71-22    located;

71-23                      (B)  the street address of the property; and

71-24                      (C)  the lot and block number of the property;

71-25                (3)  a statement of the property interest to be

71-26    condemned;

71-27                (4)  the name and address of each property owner that

 72-1    the authority can obtain after reasonable investigation and a

 72-2    description of the owner's interest in the property; and

 72-3                (5)  a statement that immediate possession of all or

 72-4    part of the property to be condemned is necessary for the timely

 72-5    construction of a turnpike project.

 72-6          (d)  A deposit to the registry of the court of an amount

 72-7    equal to the appraised fair market value, as determined by the

 72-8    authority, of the property to be condemned and any damages to the

 72-9    remainder must accompany the declaration of taking.

72-10          (e)  Instead of the deposit under Subsection (d), at its

72-11    option, the authority may, concurrently with the declaration of a

72-12    taking, tender in favor of the owner of the subject property a bond

72-13    or other security in an amount sufficient to secure the owner for

72-14    the value of the property taken and damages to remaining property,

72-15    if the authority obtains the court's approval.

72-16          (f)  The date on which the declaration is filed is the date

72-17    of taking for the purpose of assessing the value of the property

72-18    taken and damages to any remaining property to which an owner is

72-19    entitled.

72-20          (g)  An owner may draw upon the deposit held by the court

72-21    under Subsection (d) on the same terms and conditions as are

72-22    applicable under state law to a property owner's withdrawal of a

72-23    commissioners' award deposited under Section 21.021(a)(1), Property

72-24    Code.

72-25          (h)  A property owner that is a defendant in an eminent

72-26    domain action filed by an authority under this chapter has 20 days

72-27    after the date of service of process of both a condemnation

 73-1    petition and a notice of declaration of taking to give notice to

 73-2    the court in which the action is pending of the defendant's desire

 73-3    to have the condemnation petition placed on the court's docket in

 73-4    the same manner as other cases pending in the court.  On receipt of

 73-5    timely notice from the defendant, the court in which the eminent

 73-6    domain action is pending shall place the case on its docket in the

 73-7    same manner as other cases pending in the court.

 73-8          Sec. 366.167.  POSSESSION OF PROPERTY.  (a)  Immediately on

 73-9    the filing of a declaration of taking, an authority shall serve a

73-10    copy of the declaration on each person possessing an interest in

73-11    the condemned property by a method prescribed by Section 21.016(d),

73-12    Property Code.  The authority shall file evidence of the service

73-13    with the clerk of the court.  On filing of that evidence, the

73-14    authority may take possession of the property on the same terms as

73-15    if a commissioners hearing had been conducted, pending the

73-16    litigation.

73-17          (b)  If the condemned property is a homestead or a portion of

73-18    a homestead as defined by Section 41.002, Property Code, an

73-19    authority may not take possession before the 31st day after the

73-20    date of service under Subsection (a).

73-21          (c)  A property owner or tenant who refuses to vacate the

73-22    property or yield possession is subject to forcible entry and

73-23    detainer under Chapter 24, Property Code.

73-24          Sec. 366.168.  SEVERANCE OF REAL PROPERTY.  (a)  If an

73-25    authority's turnpike project severs a  property owner's real

73-26    property, the authority shall pay:

73-27                (1)  the value of the property acquired; and

 74-1                (2)  the damages, if any, to the remainder of the

 74-2    owner's property caused by the severance, including damages caused

 74-3    by the inaccessibility of one tract from the other.

 74-4          (b)  At its option, an authority may negotiate for and

 74-5    purchase the severed real property or any part of the severed real

 74-6    property if the authority and the property owner agree on terms for

 74-7    the purchase.  An authority may sell and dispose of severed real

 74-8    property that it determines is not necessary or useful to the

 74-9    authority.  Severed property must be appraised before being offered

74-10    for sale by an authority.

74-11          Sec. 366.169.  ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY.

74-12    (a)  An authority may use real property, including submerged land,

74-13    streets, alleys, and easements, owned by the state or a local

74-14    governmental entity that the authority considers necessary for the

74-15    construction or operation of a turnpike project.

74-16          (b)  The state or a local governmental entity having charge

74-17    of public real property may consent to the use of the property for

74-18    a turnpike project.

74-19          (c)  Except as provided by Section 366.035, the state or a

74-20    local governmental entity may convey, grant, or lease to an

74-21    authority real property, including highways and other real property

74-22    already devoted to public use and rights or easements in real

74-23    property, that may be necessary or convenient to accomplish the

74-24    authority's purposes, including the construction or operation of a

74-25    turnpike project.

74-26          (d)  This section does not deprive the School Land Board of

74-27    the power to execute leases for the development of oil, gas, and

 75-1    other minerals on state-owned real property adjoining a turnpike

 75-2    project or in tidewater limits.  The leases may provide for

 75-3    directional drilling from the adjoining property or tidewater area.

 75-4          Sec. 366.170.  COMPENSATION FOR AND RESTORATION OF PUBLIC

 75-5    PROPERTY.  (a)  Except as provided by  Section 366.035 or Section

 75-6    366.165(c), an authority may not pay compensation for public real

 75-7    property, parkways, streets, highways, alleys, or reservations it

 75-8    takes, except for parks and playgrounds or as provided by this

 75-9    chapter.

75-10          (b)  Public property damaged in the exercise of powers

75-11    granted by this chapter shall be restored or repaired and placed in

75-12    its original condition as nearly as practicable.

75-13          (c)  An authority has full easements and rights-of-way

75-14    through, across, under, and over any property owned by the state or

75-15    any local governmental entity that are necessary or convenient to

75-16    construct, acquire, or efficiently operate a turnpike project or

75-17    system under this chapter.

75-18          Sec. 366.171.  PUBLIC UTILITY FACILITIES.  (a)  An authority

75-19    may adopt rules for the installation,  construction, operation,

75-20    maintenance, repair, renewal, relocation, and removal of a public

75-21    utility facility in, on, along, over, or under a turnpike project.

75-22          (b)  If an authority determines it is necessary that a public

75-23    utility facility located in, on, along, over, or under a turnpike

75-24    project be relocated in the turnpike project, removed from the

75-25    turnpike project, or carried along or across the turnpike project

75-26    by grade separation, the owner or operator of the utility facility

75-27    shall relocate or remove the facility in accordance with the

 76-1    requirements of the authority and in a manner that does not impede

 76-2    the design, financing, construction, operation, or maintenance of

 76-3    the turnpike project.  The authority, as a part of the cost of the

 76-4    turnpike project or the cost of operating the turnpike project,

 76-5    shall pay the cost of the relocation, removal, or grade separation,

 76-6    including the cost of:

 76-7                (1)  installation of the facility in a new location;

 76-8                (2)  interests in real property and other rights

 76-9    acquired to accomplish the relocation or removal; and

76-10                (3)  maintenance of grade separation structures.

76-11          (c)  The authority may reduce the total costs to be paid by

76-12    the authority under Subsection (b) by 10 percent for each 30-day

76-13    period or portion of a 30-day period by which the relocation

76-14    exceeds the limit specified by the authority.  If an owner or

76-15    operator of a public utility facility does not timely remove or

76-16    relocate as required under Subsection (b), the authority may do so

76-17    at the expense of the public utility. If the authority determines

76-18    that a delay in relocation is the result of circumstances beyond

76-19    the control of the utility, full costs shall be paid by the

76-20    authority.

76-21          (d)  Chapter 228, Acts of the 51st Legislature, Regular

76-22    Session, 1949 (Article 1436a, Vernon's Texas Civil Statutes),

76-23    applies to the erection, construction, maintenance, and operation

76-24    of lines and poles owned by a corporation described by Section 1 of

76-25    that Act over, under, across, on, and along a turnpike project or

76-26    system constructed by an authority.  An authority has the powers

76-27    and duties delegated to the commissioners court by that Act, and an

 77-1    authority has exclusive jurisdiction and control of utilities

 77-2    located in its rights-of-way.

 77-3          (e)  The laws of this state applicable to the use of public

 77-4    roads, streets, and waters by a telephone and telegraph corporation

 77-5    apply to the erection, construction, maintenance, location, and

 77-6    operation of a line, pole, or other fixture by a telephone and

 77-7    telegraph corporation over, under, across, on, and along a turnpike

 77-8    project or system constructed by an authority under this chapter.

 77-9          (f)  In this section "public utility facility" means a track,

77-10    pipe, main, conduit, cable, wire, tower, pole, or other item of

77-11    plant or equipment or an appliance of a public utility or other

77-12    person.

77-13          Sec. 366.172.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

77-14    PROJECT.  (a)  An authority may lease, sell, or convey in another

77-15    manner a turnpike project to the department, a county, or a local

77-16    government corporation created under Chapter 431.

77-17          (b)  An agreement to lease, sell, or convey a turnpike

77-18    project under this section must provide for the discharge and final

77-19    payment or redemption of the authority's outstanding bonded

77-20    indebtedness for the turnpike project and may not be prohibited

77-21    under the bond proceedings applicable to the system, if any, of

77-22    which the turnpike project is a part.

77-23          Sec. 366.173.  REVENUE.  (a)  An authority may:

77-24                (1)  impose tolls for the use of each of its turnpike

77-25    projects and systems and the  different parts or sections of each

77-26    of its turnpike projects and systems; and

77-27                (2)  contract with a person for the use of part of a

 78-1    turnpike project or system or lease or sell part of a turnpike

 78-2    project or system, including the right-of-way adjoining the paved

 78-3    portion, for any purpose, including placing on the adjoining

 78-4    right-of-way a gas station, garage, store, hotel, restaurant,

 78-5    parking facility, railroad track, billboard, livestock pasturage,

 78-6    telephone line or facility, telecommunication line or facility,

 78-7    data transmission line or facility, and electric line or facility,

 78-8    under terms set by the authority.

 78-9          (b)  Tolls must be set so that the aggregate of tolls from an

78-10    authority's turnpike project or system, together with other revenue

78-11    of the turnpike project or system:

78-12                (1)  provides revenue sufficient to pay:

78-13                      (A)  the cost of maintaining, repairing, and

78-14    operating the turnpike project or system; and

78-15                      (B)  the principal of and interest on the bonds

78-16    issued for the turnpike project or system as those bonds become due

78-17    and payable; and

78-18                (2)  creates a reserve for a purpose listed under

78-19    Subdivision (1).

78-20          (c)  Tolls are not subject to supervision or regulation by

78-21    any state agency or other local governmental entity.

78-22          (d)  Tolls and other revenue derived from a turnpike project

78-23    or system for which bonds are issued, except the part necessary to

78-24    pay the cost of maintenance, repair, and operation and to provide

78-25    reserves for those costs as may be provided in the bond

78-26    proceedings, shall be set aside at regular intervals as may be

78-27    provided in the bond resolution or trust agreement in a sinking

 79-1    fund that is pledged to and charged with the payment of:

 79-2                (1)  interest on the bonds as it becomes due;

 79-3                (2)  principal of the bonds as it becomes due;

 79-4                (3)  necessary charges of paying agents for paying

 79-5    principal and interest; and

 79-6                (4)  the redemption price or the purchase price of

 79-7    bonds retired by call or purchase as provided by the bond

 79-8    proceedings.

 79-9          (e)  Use and disposition of money to the credit of the

79-10    sinking fund is subject to the bond proceedings.

79-11          (f)  To the extent permitted under the applicable bond

79-12    proceedings, revenue from one turnpike project of an authority may

79-13    be used to pay the cost of other turnpike projects of the

79-14    authority.

79-15          Sec. 366.174.  AUTHORITY REVOLVING FUND.  (a)  An authority

79-16    may maintain a revolving fund to be held in trust by a banking

79-17    institution chosen by the authority separate from any other funds

79-18    and administered by the authority's board.

79-19          (b)  An authority may transfer into its revolving fund money

79-20    from any permissible source, including:

79-21                (1)  money from a turnpike project if the transfer does

79-22    not diminish the money available for the project or the system to

79-23    less than an amount required to be retained by the bond proceedings

79-24    pertaining to the project or system;

79-25                (2)  money received by the authority from any source

79-26    and not otherwise committed, including money from the transfer of a

79-27    turnpike project or system or sale of authority assets;

 80-1                (3)  advances authorized under Section 52-b, Article

 80-2    III, Texas Constitution; and

 80-3                (4)  contributions, loans, grants, or assistance from

 80-4    the United States, another state, a political subdivision of this

 80-5    state, a foreign governmental entity, including the United Mexican

 80-6    States or a state of the United Mexican States, a local

 80-7    governmental entity, any private enterprise, or any person.

 80-8          (c)  The authority may use money in the revolving fund to:

 80-9                (1)  finance the acquisition, construction,

80-10    maintenance, or operation of a turnpike project or system,

80-11    including the extension, expansion, or improvement of a project or

80-12    system;

80-13                (2)  provide matching money required in connection with

80-14    any federal, state, local, or private aid, grant, or other funding,

80-15    including aid or funding by or with public-private partnerships;

80-16                (3)  provide credit enhancement either directly or

80-17    indirectly for bonds issued to acquire, construct, extend, expand,

80-18    or improve a turnpike project or system;

80-19                (4)  provide security for or payment of future or

80-20    existing debt for the design, acquisition, construction, operation,

80-21    maintenance, extension, expansion, or improvement of a turnpike

80-22    project or system;

80-23                (5)  borrow money and issue promissory notes or other

80-24    indebtedness payable out of the revolving fund for any purpose

80-25    authorized by this chapter; and

80-26                (6)  provide for any other reasonable purpose that

80-27    assists in the financing of an authority as authorized by this

 81-1    chapter.

 81-2          (d)  Money spent or advanced from the revolving fund for a

 81-3    turnpike project or system must be reimbursed from the money of

 81-4    that turnpike project or system, and there must be a reasonable

 81-5    expectation of such repayment at the time of authorization.

 81-6          Sec. 366.175.  USE OF SURPLUS REVENUE.  The board of an

 81-7    authority may by resolution authorize the  use of surplus revenue

 81-8    of a turnpike project or system to pay the costs of another

 81-9    turnpike project or system other than a project financed under

81-10    Subchapter G.  The board may in the resolution prescribe terms for

81-11    the use of the revenue, including the pledge of the revenue, but

81-12    may not take an action under this section that violates, impairs,

81-13    or is inconsistent with a bond resolution, trust agreement, or

81-14    indenture governing the use of the surplus revenue.

81-15          Sec. 366.176.  EXEMPTION FROM TAXATION OR ASSESSMENT.

81-16    (a)  An authority is exempt from  taxation of or assessments on:

81-17                (1)  a turnpike project or system;

81-18                (2)  property the authority acquires or uses under this

81-19    chapter; or

81-20                (3)  income from property described by Subdivision (1)

81-21    or (2).

81-22          (b)  An authority is exempt from payment of development fees,

81-23    utility connection fees, assessments, and service fees imposed or

81-24    assessed by a county, municipality, road and utility district,

81-25    river authority, any other state or local governmental entity, or

81-26    any property owners' or homeowners' association.

81-27          Sec. 366.177.  ACTIONS AFFECTING EXISTING ROADS.  (a)  An

 82-1    authority may impose a toll for transit  over an existing free

 82-2    road, street, or public highway transferred to the authority under

 82-3    this chapter.

 82-4          (b)  An authority may construct a grade separation at an

 82-5    intersection of a turnpike project with a railroad or highway and

 82-6    change the line or grade of a highway to accommodate the design of

 82-7    the grade separation.  The action may not affect a segment of the

 82-8    state highway system without the department's consent.  The

 82-9    authority shall pay the cost of a grade separation and any damage

82-10    incurred in changing a line or grade of a railroad or highway as

82-11    part of the cost of the turnpike project.

82-12          (c)  If feasible, an authority shall provide access to

82-13    properties previously abutting a county or other public road that

82-14    is taken for a turnpike project and shall pay abutting property

82-15    owners the expenses or any resulting damages for a denial of access

82-16    to the road.

82-17          Sec. 366.178.  FAILURE OR REFUSAL TO PAY TOLL.  (a)  A motor

82-18    vehicle other than a police or emergency vehicle that passes

82-19    through a toll collection facility, whether driven or towed, shall

82-20    pay the proper toll.

82-21          (b)  A person who fails or refuses to pay a toll provided for

82-22    the use of a project is liable for a fine not to exceed $250, plus

82-23    an administrative fee incurred in connection with the violation.

82-24          (c)  If a person fails to pay the proper toll:

82-25                (1)  on issuance of a notice of nonpayment, the

82-26    registered owner of the nonpaying vehicle shall pay both the proper

82-27    toll and the administrative fee;

 83-1                (2)  an authority may charge an administrative fee of

 83-2    not more than $100 to recover the cost of collecting the unpaid

 83-3    toll; and

 83-4                (3)  an authority has a lien on the vehicle driven by

 83-5    the person for the amount of the toll and may take and retain  the

 83-6    vehicle until the proper toll and applicable administrative fee

 83-7    have been paid.

 83-8          (d)  Notice of nonpayment under Subsection (c)(1) shall be

 83-9    sent by first-class mail and may not require payment of the proper

83-10    toll and the administrative fee before the 30th day after the date

83-11    the notice is mailed.  The registered owner shall pay a separate

83-12    toll and administrative fee for each nonpayment.

83-13          (e)  If the registered owner of the vehicle fails to pay the

83-14    proper toll and administrative fee in the time specified by the

83-15    notice, the owner shall be cited as for other traffic violations by

83-16    a peace officer of the authority or as otherwise provided by law,

83-17    and the owner shall pay a fine of not more than $250 for each

83-18    nonpayment.

83-19          (f)  In the prosecution of a violation for nonpayment, proof

83-20    that the vehicle passed through a toll collection facility without

83-21    payment of the proper toll together with proof that the defendant

83-22    was the registered owner or the driver of the vehicle when the

83-23    failure to pay occurred, establishes the nonpayment of the

83-24    registered owner.  The proof may be by testimony of a peace officer

83-25    or authority employee, video surveillance, or any other reasonable

83-26    evidence.

83-27          (g)  The court of the local jurisdiction in which the

 84-1    violation occurs may assess and collect the fine in addition to any

 84-2    court costs.  The court shall collect the proper toll and

 84-3    administrative fee and forward the toll and fee to the authority.

 84-4          (h)  A registered owner who is the lessor of a vehicle for

 84-5    which a notice of nonpayment has been issued is not liable if, not

 84-6    later than the 30th day after the date the notice of nonpayment is

 84-7    mailed, the registered owner provides to the authority a copy of

 84-8    the lease agreement covering the vehicle on the date of the

 84-9    nonpayment.  The name and address of the lessee must be clearly

84-10    legible. If the lessor timely provides the required information,

84-11    the lessee of the vehicle on the date of the violation is

84-12    considered to be the owner of the vehicle for purposes of this

84-13    section.  The lessee is subject to prosecution for failure to pay

84-14    the proper toll if the authority sends a notice of nonpayment to

84-15    the lessee by first-class mail not later than the 30th day after

84-16    the date of the receipt of the information from the lessor.

84-17          Sec. 366.179.  USE AND RETURN OF TRANSPONDERS.  (a)  For

84-18    purposes of this section, a transponder is  a device placed on or

84-19    within an automobile that is capable of transmitting or receiving

84-20    information used to assess or collect tolls.  A transponder is

84-21    insufficiently funded if there is no money in the account for which

84-22    the transponder was issued.

84-23          (b)  Any law enforcement or peace officer of the Department

84-24    of Public Safety or any peace officer of an authority may seize a

84-25    stolen or insufficiently funded transponder and return it to the

84-26    authority that issued the transponder.  An insufficiently funded

84-27    transponder may not be seized before the 30th day after the date

 85-1    that an authority has sent a notice of delinquency to the holder of

 85-2    the account.

 85-3          Sec. 366.180.  CONTROLLED ACCESS TO TURNPIKE PROJECTS.

 85-4    (a)  An authority may designate a turnpike  project or a portion of

 85-5    a project as a controlled-access toll road.

 85-6          (b)  An authority by order may:

 85-7                (1)  prohibit the use of or access to or from a

 85-8    turnpike project by a motor vehicle, bicycle, other vehicle, or a

 85-9    pedestrian;

85-10                (2)  deny access to or from:

85-11                      (A)  its turnpike projects;

85-12                      (B)  real property adjacent to its turnpike

85-13    projects; or

85-14                      (C)  a street, road, alley, highway, or other

85-15    public or private way intersecting its turnpike projects;

85-16                (3)  designate locations on its turnpike projects at

85-17    which access to or from the toll road is permitted;

85-18                (4)  control, restrict, and determine the type and

85-19    extent of access permitted at a designated location of access to

85-20    the turnpike projects; or

85-21                (5)  erect appropriate protective devices to preserve

85-22    the utility, integrity, and use of its turnpike projects.

85-23          (c)  Denial of access to or from a segment of the state

85-24    highway system is subject to the approval of the commission.

85-25          Sec. 366.181.  PROMOTION OF TOLL ROADS.  An authority may

85-26    promote the use of its turnpike projects  by appropriate means,

85-27    including advertising or marketing as the authority determines

 86-1    appropriate.

 86-2          Sec. 366.182.  OPERATION OF TURNPIKE PROJECT; PEACE OFFICERS.

 86-3    (a)  An authority shall police and  operate its turnpike projects

 86-4    through a force of police, peace officers, toll-takers, and other

 86-5    employees of the authority or through services contracted under

 86-6    Subsection (b) or (c).

 86-7          (b)  An authority may enter into an agreement with one or

 86-8    more persons to provide, on terms and conditions approved by the

 86-9    authority, personnel and services to design, construct, operate,

86-10    maintain, expand, enlarge, or extend the authority's turnpike

86-11    projects.

86-12          (c)  An authority may contract with any state or local

86-13    government entity for the services of peace officers of that

86-14    agency.

86-15          (d)  An authority may employ and commission a force of peace

86-16    officers.  A peace officer commissioned by the authority under this

86-17    subsection holds office at the will of the authority.  A person may

86-18    not be commissioned as a peace officer under this subsection unless

86-19    the person meets all standards for licensing by the Commission on

86-20    Law Enforcement Officer Standards and Education.

86-21          Sec. 366.183.  AUDIT.  An authority shall have a certified

86-22    public accountant audit the authority's books and accounts at least

86-23    annually.  The cost of the audit may be treated as part of the cost

86-24    of construction or operation of a turnpike project.

86-25          Sec. 366.184.  DISADVANTAGED BUSINESSES.  (a)  Consistent

86-26    with general law, an authority shall:

86-27                (1)  set goals for the award of competitive contracts

 87-1    to disadvantaged businesses;

 87-2                (2)  attempt to identify disadvantaged businesses that

 87-3    provide or may provide supplies, materials, equipment, or services

 87-4    to the authority; and

 87-5                (3)  give disadvantaged businesses full access to the

 87-6    authority's contract bidding process, inform the businesses about

 87-7    the process, offer the businesses assistance concerning the

 87-8    process, and identify barriers to the businesses' participation in

 87-9    the process.

87-10          (b)  This section does not exempt an authority from

87-11    competitive bidding requirements provided by other law.

87-12             (Sections 366.185-366.250 reserved for expansion

87-13                         SUBCHAPTER F.  GOVERNANCE

87-14          Sec. 366.251.  BOARD OF DIRECTORS.  (a)  An authority is

87-15    governed by a board of directors.

87-16          (b)  The commissioners court of each county of the authority

87-17    shall appoint one director to serve on the board.  The governor

87-18    shall appoint three directors to serve on the board.

87-19          (c)  Directors shall be divided into two groups.  To the

87-20    greatest degree possible, each group shall contain an equal number

87-21    of directors.  Directors shall serve terms of two years, except

87-22    that one group of directors of the initial board of an authority

87-23    shall serve for a term of one year.

87-24          (d)  Each director appointed by the governor must have

87-25    resided in a county of the authority for at least one year before

87-26    the person's appointment. Each director appointed by a

87-27    commissioners court must have resided in that county for at least

 88-1    one year before the person's appointment.

 88-2          (e)  All appointments to the board shall be made without

 88-3    regard to race, color, disability, sex, religion, age, or national

 88-4    origin.

 88-5          (f)  An elected official is not eligible to serve as a

 88-6    director.

 88-7          (g)  A vacancy in a position shall be filled promptly by the

 88-8    entity that made the appointment.

 88-9          (h)  Each director has equal status and may vote.

88-10          (i)  The board of an authority shall select one director as

88-11    the presiding officer of the board to serve in that capacity until

88-12    the person's term as a director expires. The board shall elect one

88-13    director as assistant presiding officer.  The board shall select a

88-14    secretary and treasurer, neither of whom need be a director.

88-15          (j)  The vote of a majority attending a board meeting is

88-16    necessary for any action taken by the board.  If a vacancy exists

88-17    on a board, the majority of directors serving on the board is a

88-18    quorum.

88-19          Sec. 366.252.  CONFLICT OF INTEREST.  (a)  A person is not

88-20    eligible to serve on the board of an  authority if the person or

88-21    the person's spouse:

88-22                (1)  is registered, certified, or licensed by an

88-23    occupational regulatory agency in the field of toll road

88-24    construction, maintenance, or operation;

88-25                (2)  is employed by or participates in the management

88-26    of a business entity or other organization regulated by the

88-27    authority or receiving money from the authority;

 89-1                (3)  owns or controls, directly or indirectly, more

 89-2    than a 10 percent interest in a business entity or other

 89-3    organization regulated by or receiving money from the authority,

 89-4    other than compensation for acquisition of turnpike right-of-way;

 89-5                (4)  uses or receives a substantial amount of tangible

 89-6    goods, services, or money from the authority, other than

 89-7    compensation or reimbursement authorized by law for board

 89-8    membership, attendance, or expenses, or for compensation for

 89-9    acquisition of turnpike right-of-way;

89-10                (5)  is an officer, employee, or paid consultant of a

89-11    Texas trade association in the field of road construction,

89-12    maintenance, or operation; or

89-13                (6)  is required to register as a lobbyist under

89-14    Chapter 305, Government Code, because of the person's activities

89-15    for compensation on behalf of a profession related to the operation

89-16    of the authority.

89-17          (b)  A person may not act as the general counsel to an

89-18    authority if the person is required to register as a lobbyist under

89-19    Chapter 305, Government Code, because of the person's activities

89-20    for compensation on behalf of a profession related to the operation

89-21    of the authority.

89-22          (c)  In this section, "Texas trade association" means a

89-23    nonprofit, cooperative, and voluntarily joined association of

89-24    business or professional competitors in this state designed to

89-25    assist its members and its industry or profession in dealing with

89-26    mutual business or professional problems and in promoting their

89-27    common interests.

 90-1          Sec. 366.253.  SURETY BONDS.  (a)  Before beginning a term,

 90-2    each director shall execute a surety bond in the amount of $25,000,

 90-3    and the secretary and treasurer shall execute a surety bond in the

 90-4    amount of $50,000.

 90-5          (b)  Each surety bond must be:

 90-6                (1)  conditioned on the faithful performance of the

 90-7    duties of office;

 90-8                (2)  executed by a surety company authorized to

 90-9    transact business in this state; and

90-10                (3)  filed with the secretary of state's office.

90-11          (c)  The authority shall pay the expense of the bonds.

90-12          Sec. 366.254.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

90-13    removal of a director from the board if  the director:

90-14                (1)  did not have at the time of appointment the

90-15    qualifications required by Section 366.251(d);

90-16                (2)  whether at the time of appointment or at any time

90-17    during the director's term, is ineligible under Section 366.251(f)

90-18    or 366.252 to serve as a director;

90-19                (3)  cannot discharge the director's duties for a

90-20    substantial part of the term for which the director is appointed

90-21    because of illness or disability; or

90-22                (4)  is absent from more than half of the regularly

90-23    scheduled board meetings that the director is eligible to attend

90-24    during a calendar year unless the absence is excused by majority

90-25    vote of the board.

90-26          (b)  The validity of an action of the board is not affected

90-27    by the fact that it is taken when a ground for removal of a

 91-1    director exists.

 91-2          (c)  If the administrative head of the authority has

 91-3    knowledge that a potential ground for removal exists, that person

 91-4    shall notify the presiding officer of the board of the ground.  The

 91-5    presiding officer shall then notify the person that appointed the

 91-6    director  that a potential ground for removal exists.

 91-7          Sec. 366.255.  COMPENSATION OF DIRECTOR.  Each director is

 91-8    entitled to reimbursement for the  director's actual expenses

 91-9    necessarily incurred in the performance of the director's duties.

91-10    A director is not entitled to any additional compensation for the

91-11    director's services.

91-12          Sec. 366.256.  EVIDENCE OF AUTHORITY ACTIONS.  Actions of an

91-13    authority are the actions of its board  and may be evidenced in any

91-14    legal manner, including a board resolution.

91-15          Sec. 366.257.  PUBLIC ACCESS.  An authority shall:

91-16                (1)  make and implement policies that provide the

91-17    public with a reasonable opportunity to appear before the board to

91-18    speak on any issue under the jurisdiction of the authority; and

91-19                (2)  prepare and maintain a written plan that describes

91-20    how an individual who does not speak English or who has a physical,

91-21    mental, or developmental disability may be provided reasonable

91-22    access to the authority's programs.

91-23          Sec. 366.258.  INDEMNIFICATION.  (a)  An authority may

91-24    indemnify one or more of its directors or  officers for necessary

91-25    expenses and costs, including attorney's fees, incurred by the

91-26    directors or officers in connection with any claim asserted against

91-27    the directors or officers in their respective capacities as

 92-1    directors or officers.

 92-2          (b)  If an authority does not fully indemnify a director or

 92-3    officer as provided by Subsection (a), the court in a proceeding in

 92-4    which any claim against the director or officer is asserted or any

 92-5    court with jurisdiction of an action instituted by the director or

 92-6    officer on a claim for indemnity may assess indemnity against the

 92-7    authority, its receiver, or trustee only if the court finds that,

 92-8    in connection with the claim, the director or officer is not guilty

 92-9    of negligence or misconduct.

92-10          (c)  A court may not assess indemnity under Subsection (b)

92-11    for an amount paid by the director or officer to the authority.

92-12          (d)  This section applies to a former director or officer of

92-13    the authority.

92-14          Sec. 366.259.  PURCHASE OF LIABILITY INSURANCE.  (a)  An

92-15    authority shall insure its officers and  employees from liability

92-16    arising from the use, operation, or maintenance of equipment that

92-17    is used or may be used in connection with the laying out,

92-18    construction, or maintenance of the authority's turnpike projects.

92-19          (b)  Insurance coverage under this section must be provided

92-20    by the purchase of a policy of liability insurance from a reliable

92-21    insurance company authorized to do business in this state.  The

92-22    form of the policy must be approved by the commissioner of

92-23    insurance.

92-24          (c)  This section is not a waiver of immunity of the

92-25    authority or the counties in an authority from liability for the

92-26    torts or negligence of an officer or employee of an authority.

92-27          (d)  In this section, "equipment" includes an automobile,

 93-1    motor truck, trailer, aircraft, motor grader, roller, tractor,

 93-2    tractor power mower, and other power equipment.

 93-3          Sec. 366.260.  CERTAIN CONTRACTS AND SALES PROHIBITED.

 93-4    (a)  A director, agent, or employee  of an authority may not:

 93-5                (1)  contract with the authority; or

 93-6                (2)  be directly or indirectly interested in:

 93-7                      (A)  a contract with the authority; or

 93-8                      (B)  the sale of property to the authority.

 93-9          (b)  A person who violates Subsection (a) is liable for a

93-10    civil penalty to the authority not to exceed $1,000.

93-11          (c)  Subsection (a) does not apply to the sale of turnpike

93-12    right-of-way to an authority.

93-13          Sec. 366.261.  ANNUAL REPORTS.  Not later than March 31 of

93-14    each year, the directors and the  administrative head of an

93-15    authority shall file with the commissioners court of each county of

93-16    the  authority a written report on the authority's activities.  At

93-17    the invitation of a commissioners court of a county in the

93-18    authority, the board and the administrative head of an authority

93-19    shall appear before the commissioners court to present the report

93-20    and receive questions and comments.

93-21          Sec. 366.262.  MEETINGS BY TELEPHONE CONFERENCE CALL.

93-22    (a)  Chapter 551, Government Code, does not prohibit any open or

93-23    closed meeting of the board, a committee of the board, or the

93-24    staff, or any combination of the board or staff, from being held by

93-25    telephone conference call.

93-26          (b)  A telephone conference call meeting is subject to the

93-27    notice requirements applicable to other meetings.

 94-1          (c)  Notice of a telephone conference call meeting that by

 94-2    law must be open to the public must specify the location of the

 94-3    meeting.  The location must be a conference room of the authority

 94-4    or other facility in a county of the authority that is accessible

 94-5    to the public.

 94-6          (d)  Each part of the telephone conference call meeting that

 94-7    by law must be open to the public shall be audible to the public at

 94-8    the location specified in the notice and shall be tape-recorded or

 94-9    documented by written minutes.  On conclusion of the meeting, the

94-10    tape recording or the written minutes of the meeting shall be made

94-11    available to the public.

94-12             (Sections 366.263-366.300 reserved for expansion

94-13             SUBCHAPTER G.  AID FOR REGIONAL TURNPIKE PROJECTS

94-14          Sec. 366.301.  DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS.

94-15    (a)  To the extent permitted by the Texas Constitution, the

94-16    department may agree with an authority to provide for or contribute

94-17    to the payment of costs of financial or engineering and traffic

94-18    feasibility studies and the design, financing, acquisition,

94-19    construction, operation, or maintenance of a turnpike project or

94-20    system on terms agreed on by the commission or department, as

94-21    applicable, and the authority.  The agreement may not be

94-22    inconsistent with the rights of the bondholders or persons

94-23    operating the turnpike project under a lease or other contract.

94-24          (b)  The department may use its engineering and other

94-25    personnel, including consulting engineers and traffic engineers, to

94-26    conduct feasibility studies under Subsection (a).

94-27          (c)  An obligation or expense incurred by the commission or

 95-1    department under this section is a part of the cost of the turnpike

 95-2    project for which the obligation or expense was incurred.  Money

 95-3    from the state highway fund spent under this section must be repaid

 95-4    from tolls or other revenue of the turnpike project or system on

 95-5    which the money from the state highway fund was expended.

 95-6          (d)  The commission or department may use federal money for

 95-7    any purpose described by this chapter.

 95-8          Sec. 366.302.  AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE

 95-9    TURNPIKE PROJECTS.  (a)  An authority  may enter into an agreement

95-10    with a public or private entity, including a toll road corporation,

95-11    the United States, a state of the United States, the United Mexican

95-12    States, a state of the United Mexican States, a local governmental

95-13    entity, or another political subdivision, to permit the entity,

95-14    jointly with the authority, to study the feasibility of a turnpike

95-15    project or system or to acquire, design, finance, construct,

95-16    maintain, repair, operate, extend, or expand a turnpike project or

95-17    system.

95-18          (b)  An authority has broad discretion to negotiate

95-19    provisions in a development agreement with a private entity.  The

95-20    provisions may include provisions relating to:

95-21                (1)  the design, financing, construction, maintenance,

95-22    and operation of a turnpike project or system in accordance with

95-23    standards adopted by the authority; and

95-24                (2)  professional and consulting services to be

95-25    rendered under standards adopted by the authority in connection

95-26    with a turnpike project or system.

95-27          (c)  An authority may not incur a financial obligation on

 96-1    behalf of, or otherwise guarantee the obligations of, a private

 96-2    entity that constructs, maintains, or operates a turnpike project

 96-3    or system.

 96-4          (d)  An authority or a county in an authority is not liable

 96-5    for any financial or other obligation of a turnpike project solely

 96-6    because a private entity constructs, finances, or operates any part

 96-7    of a turnpike project or system.

 96-8          (e)  An authority may authorize the investment of public and

 96-9    private money, including debt and equity participation, to finance

96-10    a function described by this section.

96-11          Sec. 366.303.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL

96-12    GOVERNMENTAL ENTITIES.  (a)  A local governmental entity other than

96-13    a nonprofit corporation may, consistent with the Texas

96-14    Constitution, issue bonds or enter into and make payments under

96-15    agreements with an authority to acquire, construct, maintain, or

96-16    operate a turnpike project or system.  The entity may levy and

96-17    collect taxes to pay the interest on the bonds and to provide a

96-18    sinking fund for the redemption of the bonds.

96-19          (b)  In addition to the powers provided by Subsection (a), a

96-20    local governmental entity may, within any applicable constitutional

96-21    limitations, agree with an authority to issue bonds or enter into

96-22    and make payments under an agreement to acquire, construct,

96-23    maintain, or operate any portion of a turnpike project or system of

96-24    that authority.

96-25          (c)  To make payments under an agreement under Subsection

96-26    (b), to pay the interest on bonds issued under Subsection (b), or

96-27    to provide a sinking fund for the bonds or the contract, a local

 97-1    governmental entity may:

 97-2                (1)  pledge revenue from any available source,

 97-3    including annual appropriations;

 97-4                (2)  levy and collect taxes; or

 97-5                (3)  provide for a combination of Subdivisions (1) and

 97-6    (2).

 97-7          (d)  The term of an agreement under this section may not

 97-8    exceed 40 years.

 97-9          (e)  Any election required to permit action under this

97-10    subchapter must be held in conformity with Chapter 1, Title 22,

97-11    Revised Statutes, or other law applicable to the local governmental

97-12    entity.

97-13          Sec. 366.304.  ADDITIONAL AGREEMENTS OF AUTHORITY.  An

97-14    authority may enter into any agreement  necessary or convenient to

97-15    achieve the purposes of this subchapter.

97-16          SECTION 7.24.  Article 2.12, Code of Criminal Procedure, as

97-17    amended by Chapters 621 and 729, Acts of the 74th Legislature,

97-18    Regular Session, 1995, is amended to read as follows:

97-19          Art. 2.12.  WHO ARE PEACE OFFICERS.  The following are peace

97-20    officers:

97-21                (1)  sheriffs and their deputies;

97-22                (2)  constables and deputy constables;

97-23                (3)  marshals or police officers of an incorporated

97-24    city, town, or village;

97-25                (4)  rangers and officers commissioned by the Public

97-26    Safety Commission and the Director of the Department of Public

97-27    Safety;

 98-1                (5)  investigators of the district attorneys', criminal

 98-2    district attorneys', and county attorneys' offices;

 98-3                (6)  law enforcement agents of the Texas Alcoholic

 98-4    Beverage Commission;

 98-5                (7)  each member of an arson investigating unit

 98-6    commissioned by a city, a county, or the state;

 98-7                (8)  officers commissioned under Section 37.081,

 98-8    Education Code, or Subchapter E, Chapter 51, Education Code;

 98-9                (9)  officers commissioned by the General Services

98-10    Commission;

98-11                (10)  law enforcement officers commissioned by the

98-12    Parks and Wildlife Commission;

98-13                (11)  airport police officers commissioned by a city

98-14    with a population of more than one million, according to the most

98-15    recent federal census, that operates an airport that serves

98-16    commercial air carriers;

98-17                (12)  airport security personnel commissioned as peace

98-18    officers by the governing body of any political subdivision of this

98-19    state, other than a city described by Subdivision (11), that

98-20    operates an airport that serves commercial air carriers;

98-21                (13)  municipal park and recreational patrolmen and

98-22    security officers;

98-23                (14)  security officers commissioned as peace officers

98-24    by the State Treasurer;

98-25                (15)  officers commissioned by a water control and

98-26    improvement district under Section 51.132, Water Code;

98-27                (16)  officers commissioned by a board of trustees

 99-1    under Chapter 341, Acts of the 57th Legislature, Regular Session,

 99-2    1961 (Article 1187f, Vernon's Texas Civil Statutes);

 99-3                (17)  investigators commissioned by the Texas State

 99-4    Board of Medical Examiners;

 99-5                (18)  officers commissioned by the board of managers of

 99-6    the Dallas County Hospital District, the Tarrant County Hospital

 99-7    District, or the Bexar County Hospital District under Section

 99-8    281.057, Health and Safety Code;

 99-9                (19)  county park rangers commissioned under Subchapter

99-10    E, Chapter 351, Local Government Code;

99-11                (20)  investigators employed by the Texas Racing

99-12    Commission;

99-13                (21)  officers commissioned by the State Board of

99-14    Pharmacy;

99-15                (22)  officers commissioned by the governing body of a

99-16    metropolitan rapid transit authority under Chapter 451 or 452,

99-17    Transportation Code [Section 13, Chapter 141, Acts of the 63rd

99-18    Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas

99-19    Civil Statutes), or by a regional transportation authority under

99-20    Section 10, Chapter 683, Acts of the 66th Legislature, Regular

99-21    Session, 1979 (Article 1118y, Vernon's Texas Civil Statutes)];

99-22                (23)  [officers commissioned under the Texas High-Speed

99-23    Rail Act (Article 6674v.2, Revised Statutes);]

99-24                [(24)]  investigators commissioned by the attorney

99-25    general under Section 402.009, Government Code;

99-26                (24) [(25)]  security officers and investigators

99-27    commissioned as peace officers  under Chapter 466, Government Code;

 100-1               (25) [(26)]  an officer employed by the Texas

 100-2   Department of Health under Section  431.2471, Health and Safety

 100-3   Code;

 100-4               (26) [(27)]  officers appointed by an appellate court

 100-5   under Subchapter F, Chapter  53, Government Code;

 100-6               (27) [(28)]  officers commissioned by the state fire

 100-7   marshal under Chapter 417,  Government Code; [and]

 100-8               (28) [(29)]  an investigator commissioned by the

 100-9   commissioner of insurance under Article 1.10D, Insurance Code;[.]

100-10               (29)  apprehension specialists commissioned by the

100-11   Texas Youth Commission as officers under Section 61.0931, Human

100-12   Resources Code; and

100-13               (30)  an officer commissioned as a peace officer by a

100-14   regional tollway authority under Subchapter E, Chapter 366,

100-15   Transportation Code.

100-16         SECTION 7.25.  (a)  Notwithstanding Section 366.031,

100-17   Transportation Code, as added by this Act, the North Texas Tollway

100-18   Authority is established as a regional  tollway authority under

100-19   Chapter 366, Transportation Code, as added by this Act.

100-20         (b)  The North Texas Tollway Authority consists of all

100-21   territory in Collin, Dallas, Denton, and Tarrant counties. The

100-22   operations of the authority may extend to other counties as

100-23   permitted under Section 366.161, Transportation Code, as added by

100-24   this Act, and the jurisdiction of the authority may be expanded to

100-25   include other counties under Section 366.031, Transportation Code,

100-26   as added by this Act.

100-27         (c)  The initial board of directors of the North Texas

 101-1   Tollway Authority is composed  of nine directors as follows:

 101-2               (1)  three directors appointed by the governor;

 101-3               (2)  one director appointed by the commissioners court

 101-4   of each county in the authority; and

 101-5               (3)  the county judges of two of the counties of the

 101-6   authority.

 101-7         (d)  The terms of the initial directors of the North Texas

 101-8   Tollway Authority begin on September 1, 1997.  The county judges

 101-9   serving as initial directors shall each serve a one-year term.  At

101-10   the expiration of that term, the seats held by the county judges

101-11   are not refilled, and the number of directors composing the board

101-12   is reduced to seven.

101-13         (e)  One of the directors of the North Texas Tollway

101-14   Authority appointed to the initial board by the governor serves a

101-15   one-year term.  Each successor to that director shall be appointed

101-16   by the governor for a two-year term.

101-17         (f)  The two directors appointed to the initial board of the

101-18   North Texas Tollway Authority by the commissioners courts of the

101-19   counties whose county judges serve as initial directors each serve

101-20   a one-year term.  Each successor to those directors shall be

101-21   appointed for a two-year term. The remaining initial directors

101-22   serve two-year terms.

101-23         SECTION 7.26.  Sections 361.003, 361.038, 361.039, 361.040,

101-24   361.041,  361.044, 361.045, 361.047, 361.048, 361.139, 361.190,

101-25   361.284, and 361.331(e), Transportation Code, are repealed.

101-26          ARTICLE 8.  TRANSITION, EFFECTIVE DATE, AND EMERGENCY

101-27         SECTION 8.01.  (a)  The Texas Turnpike Authority is abolished

 102-1   and the Texas Turnpike Authority division of the Texas Department

 102-2   of Transportation is created on the effective date of this Act.

 102-3   Except as provided by Subsections (b) and (c) of this section, all

 102-4   assets, rights, and obligations of the Texas Turnpike Authority are

 102-5   transferred to the division.

 102-6         (b)  The North Texas Tollway Authority shall succeed to all

 102-7   assets, rights, and other property of the Texas Turnpike Authority

 102-8   located in Collin, Dallas, Denton, or Tarrant County, including all

 102-9   assets and rights that relate to the Dallas North Tollway, the

102-10   Addison Airport Toll Tunnel, the President George Bush Turnpike,

102-11   and the Mountain Creek Lake Bridge.

102-12         (c)  The North Texas Tollway Authority shall assume and

102-13   become liable for all duties and obligations of the Texas Turnpike

102-14   Authority related to the assets, rights, and properties transferred

102-15   under Subsection (b) of this section, including contracts and bonds

102-16   secured by the revenues of the assets.  The North Texas Tollway

102-17   Authority is obligated to comply with all the assumed obligations

102-18   to the same extent as the Texas Turnpike Authority.

102-19         (d)  An employee of the Texas Turnpike Authority may elect to

102-20   become an employee of either the Texas Turnpike Authority division

102-21   of the Texas Department of Transportation or the North Texas

102-22   Tollway Authority on the effective date of this Act, subject to the

102-23   employment openings and requirements of those agencies.

102-24         (e)  A rule or regulation adopted by the Texas Turnpike

102-25   Authority relating to the operation of a turnpike in Collin,

102-26   Dallas, Denton, or Tarrant County before the effective date of this

102-27   Act that is not inconsistent with this Act remains in effect as a

 103-1   rule or regulation of the North Texas Tollway Authority until

 103-2   superseded by action of that agency.

 103-3         SECTION 8.02.  As additional consideration for the transfer

 103-4   of the properties described in Section  8.01(b) of this Act, the

 103-5   North Texas Tollway Authority shall pay to the Texas Department of

 103-6   Transportation an amount to be agreed on by the authority and the

 103-7   department not later than October 1, 1997.  In determining the

 103-8   amount, the authority and the department shall ensure that

 103-9   following the payment, the authority is in compliance with all bond

103-10   resolutions, bond indentures, credit agreements, and all other

103-11   agreements assumed by the authority and that reserves held by the

103-12   authority as required under or in connection with the resolutions,

103-13   indentures, credit agreements, and other agreements shall be

103-14   maintained at a level consistent with the Texas Turnpike

103-15   Authority's historical practices.

103-16         SECTION 8.03.  The North Texas Tollway Authority is a

103-17   successor agency to the Texas Turnpike  Authority for all purposes,

103-18   including for the purpose of Section 52-b, Article III, Texas

103-19   Constitution, concerning all assets, rights, other property,

103-20   duties, and obligations transferred to the authority under Section

103-21   8.01(b) of this Act.  Any existing agreement by and between the

103-22   Texas Turnpike Authority  and the state, the Texas Transportation

103-23   Commission, the Texas Department of Transportation, the Federal

103-24   Highway Administration, the United States Department of

103-25   Transportation, any other federal or state governmental entity, or

103-26   any local governmental entity that pertains to an asset, right, or

103-27   obligation transferred to the North Texas Turnpike Authority under

 104-1   this Act is binding on, benefits, and is fully enforceable by and

 104-2   against the North Texas Turnpike Authority as successor to the

 104-3   Texas Turnpike Authority.

 104-4         SECTION 8.04.  The changes in law made by this Act in the

 104-5   qualifications of members of the Texas Transportation Commission or

 104-6   the Texas Motor Vehicle Commission do not affect the entitlement of

 104-7   a member serving on one of those commissions before September 1,

 104-8   1997, to continue to carry out the functions of the commission for

 104-9   the remainder of the member's term.  The changes in law apply only

104-10   to a member appointed on or after September 1, 1997.  This Act does

104-11   not prohibit a person who is a member of the Texas Transportation

104-12   Commission on September 1, 1997, from being reappointed to that

104-13   commission if the person has the qualifications required for a

104-14   member under Chapter 201, Transportation Code, as amended by this

104-15   Act.  This Act does not prohibit a person who is a member of the

104-16   Texas Motor Vehicle Commission on September 1, 1997, from being

104-17   reappointed to that commission if the person has the qualifications

104-18   required for a member under the Texas Motor Vehicle Commission Code

104-19   (Article 4413(36), Vernon's Texas Civil Statutes), as amended by

104-20   this Act.

104-21         SECTION 8.05.  In addition to the substantive changes made by

104-22   this Act, this Act conforms Chapter 361, Transportation Code, to

104-23   the changes made by Sections 1 and 2, Chapter 148, Acts of the 74th

104-24   Legislature, 1995.  To the extent of any conflict between this Act

104-25   and another Act of the 75th Legislature relating to nonsubstantive

104-26   changes in enacted codes, this Act prevails.

104-27         SECTION 8.06.  This Act takes effect September 1, 1997.

 105-1         SECTION 8.07.  The importance of this legislation and the

 105-2   crowded condition of the calendars in both houses create an

 105-3   emergency and an imperative public necessity that the

 105-4   constitutional rule requiring bills to be read on three several

 105-5   days in each house be suspended, and this rule is hereby suspended.