1-1     By:  Armbrister, Sibley                                S.B. No. 370

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

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

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

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

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

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 370               By:  Armbrister

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the continuation and functions of the Texas Department

1-11     of Transportation, the abolition of the Texas Turnpike Authority,

1-12     and the creation of regional tollway authorities; authorizing the

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

1-14     of eminent domain; and providing civil penalties.

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

1-16             ARTICLE 1.  TEXAS TRANSPORTATION COMMISSION; TEXAS

1-17                        DEPARTMENT OF TRANSPORTATION

1-18           SECTION 1.01.  Section 201.204, Transportation Code, is

1-19     amended to read as follows:

1-20           Sec. 201.204.  SUNSET PROVISION.  The Texas Department of

1-21     Transportation is subject to Chapter 325, Government Code (Texas

1-22     Sunset Act).  Unless continued in existence as provided by that

1-23     chapter, the department is abolished September 1, 2009 [1997].

1-24           SECTION 1.02.  Subsection (d), Section 201.051,

1-25     Transportation Code, is amended to read as follows:

1-26           (d)  Except as provided by Subsection (e), a person is not

1-27     eligible for appointment as a member of the commission if the

1-28     person or the person's spouse:

1-29                 (1)  is employed by or participates in the management

1-30     of a business entity or other organization that is regulated by or

1-31     receives funds from the department;

1-32                 (2)  directly or indirectly owns or controls more than

1-33     10 percent interest in a business entity or other organization that

1-34     is regulated by or receives funds from the department; [or]

1-35                 (3)  uses or receives a substantial amount of tangible

1-36     goods, services, or funds from the department, other than

1-37     compensation or reimbursement authorized by law for commission

1-38     membership, attendance, or expenses; or

1-39                 (4)  is registered, certified, or licensed by the

1-40     department.

1-41           SECTION 1.03.  Subsection (c), Section 201.057,

1-42     Transportation Code, is amended to read as follows:

1-43           (c)  If the director knows that a potential ground for

1-44     removal exists, the director shall notify the commissioner of

1-45     transportation of the ground, and the commissioner shall notify the

1-46     governor and the attorney general that a potential ground for

1-47     removal exists.  If the potential ground for removal relates to the

1-48     commissioner of transportation, the director shall notify another

1-49     member of the commission, who shall notify the governor and the

1-50     attorney general that a potential ground for removal exists.

1-51           SECTION 1.04.  Subchapter B, Chapter 201, Transportation

1-52     Code, is amended by adding Section 201.059 to read as follows:

1-53           Sec. 201.059.  TRAINING ON DEPARTMENT AND CERTAIN LAWS

1-54     RELATING TO DEPARTMENT.  (a)  To be eligible to take office as a

1-55     member of the commission, a person appointed to the commission must

1-56     complete at least one course of a training program that complies

1-57     with this section.

1-58           (b)  The training program must provide information to the

1-59     person regarding:

1-60                 (1)  this subchapter;

1-61                 (2)  the programs operated by the department;

1-62                 (3)  the role and functions of the department;

1-63                 (4)  the rules of the department with an emphasis on

1-64     the rules that relate to disciplinary and investigatory authority;

 2-1                 (5)  the current budget for the department;

 2-2                 (6)  the results of the most recent formal audit of the

 2-3     department;

 2-4                 (7)  the requirements of the:

 2-5                       (A)  open meetings law, Chapter 551, Government

 2-6     Code;

 2-7                       (B)  open records law, Chapter 552, Government

 2-8     Code; and

 2-9                       (C)  administrative procedure law, Chapter 2001,

2-10     Government Code;

2-11                 (8)  the requirements of the conflict of interest laws

2-12     and other laws relating to public officials; and

2-13                 (9)  any applicable ethics policies adopted by the

2-14     commission or the Texas Ethics Commission.

2-15           (c)  A person appointed to the commission is entitled to

2-16     reimbursement for travel expenses incurred in attending the

2-17     training program, as provided by the General Appropriations Act and

2-18     as if the person were a member of the commission.

2-19           SECTION 1.05.  Section 201.102, Transportation Code, is

2-20     amended to read as follows:

2-21           Sec. 201.102.  SEPARATION [DEFINITION] OF RESPONSIBILITIES.

2-22     The commission shall develop and implement policies that clearly

2-23     separate the policy-making [define the respective] responsibilities

2-24     of the commission and the management responsibilities of the

2-25     director and staff of the department.

2-26           SECTION 1.06.  Subsection (b), Section 201.107,

2-27     Transportation Code, is amended to read as follows:

2-28           (b)  The commission shall file annually with the governor and

2-29     the presiding officer of each house of the legislature a complete

2-30     and detailed written report accounting for all funds received and

2-31     disbursed by the department during the preceding fiscal year.  The

2-32     report must comply with each reporting requirement applicable to

2-33     financial reporting [be in the form and filed in the time] provided

2-34     by the General Appropriations Act.

2-35           SECTION 1.07.  Section 201.203, Transportation Code, is

2-36     amended to read as follows:

2-37           Sec. 201.203.  DEPARTMENT OFFICE[; RECORDS].  The department

2-38     shall have its statewide headquarters office in Austin.  [The

2-39     department shall keep all of its records in that office.]

2-40           SECTION 1.08.  Subchapter D, Chapter 201, Transportation

2-41     Code, is amended by adding Section 201.206 to read as follows:

2-42           Sec. 201.206.  DONATIONS AND CONTRIBUTIONS.  For the purpose

2-43     of carrying out its functions and duties, the department may

2-44     accept, from any source, a donation or contribution in any form,

2-45     including realty, personalty, money, materials, or services.

2-46           SECTION 1.09.  Subsections (a) and (b), Section 201.402,

2-47     Transportation Code, are amended to read as follows:

2-48           (a)  The director or the director's designee shall prepare

2-49     and maintain a written policy statement to ensure implementation of

2-50     a program of equal employment opportunity under which all personnel

2-51     transactions are made without regard to race, color, disability,

2-52     sex, religion, age, or national origin.  The policy statement must

2-53     include:

2-54                 (1)  personnel policies, including policies relating to

2-55     recruitment, evaluation, selection, appointment, training, and

2-56     promotion of personnel that comply with Chapter 21, Labor Code;

2-57                 (2)  a comprehensive analysis of the department work

2-58     force that meets federal and state guidelines;

2-59                 (3)  procedures by which a determination can be made of

2-60     significant underuse in the department work force of all persons

2-61     for whom federal or state guidelines encourage a more equitable

2-62     balance; and

2-63                 (4)  reasonable methods to appropriately address the

2-64     areas of significant underuse.

2-65           (b)  A policy statement prepared under Subsection (a) must

2-66     cover an annual period, be updated at least annually, be reviewed

2-67     by the Texas Commission on Human Rights for compliance with

2-68     Subsection (a)(1), and be filed with the governor's office.

2-69           SECTION 1.10.  Subsections (a) and (b), Section 201.404,

 3-1     Transportation Code, are amended to read as follows:

 3-2           (a)  The director or the director's designee shall develop an

 3-3     intra-agency career ladder program that addresses opportunities for

 3-4     mobility and advancement for employees in the department [covering

 3-5     all full-time classified and exempt positions].  The program shall

 3-6     require intra-agency posting of all [nonentry] positions

 3-7     concurrently with any public posting.

 3-8           (b)  The director or the director's designee shall develop a

 3-9     system of annual performance evaluations that are based on

3-10     documented employee performance.  All merit pay for department

3-11     employees must be based on the system established under this

3-12     subsection.

3-13           SECTION 1.11.  Subchapter F, Chapter 201, Transportation

3-14     Code, is amended by adding Section 201.406 to read as follows:

3-15           Sec. 201.406.  RELOCATION ASSISTANCE.  (a)  In addition to

3-16     authority granted by other law, the department may reimburse

3-17     transferred employees for expenses or costs related to selling

3-18     existing housing and purchasing and financing comparable

3-19     replacement housing if the director determines that the transfer

3-20     will enhance the department's ability to accomplish its goals and

3-21     missions.

3-22           (b)  For purposes of this section, the following expenses or

3-23     costs related to the selling of existing housing and the leasing,

3-24     purchasing, and financing of comparable replacement housing are

3-25     reimbursable:

3-26                 (1)  any commissions and fees due to a broker or real

3-27     estate agent;

3-28                 (2)  costs incurred as a purchaser to obtain a home

3-29     loan, including loan application fees, credit report fees, and

3-30     mortgage points;

3-31                 (3)  origination fees, title insurance, recording fees,

3-32     and all other closing costs required to be paid by the employee;

3-33                 (4)  fees or charges, other than refundable deposits,

3-34     necessary to establish telephone, gas, and electric service; and

3-35                 (5)  travel expenses incurred while looking for a new

3-36     residence, reimbursed at the standard mileage rate, for travel to

3-37     and from the new designated headquarters.

3-38           (c)  Under this section, the department may not:

3-39                 (1)  provide reimbursement for more than 25 employees

3-40     per fiscal year;

3-41                 (2)  pay a sum of more than $15,000 to any employee;

3-42                 (3)  purchase or pay any part of the purchase price of

3-43     any employee's home;

3-44                 (4)  provide reimbursement for the purchase or

3-45     financing of a house if the employee did not own and occupy

3-46     existing housing at the time of transfer; or

3-47                 (5)  provide reimbursement when the distance between

3-48     the two designated headquarters of a transferred employee is less

3-49     than 25 miles.

3-50           (d)  The department may pay the reasonable, necessary, and

3-51     resulting costs of moving the household goods and effects of a

3-52     transferred employee if:

3-53                 (1)  the director determines that the transfer will

3-54     enhance the department's ability to accomplish its goals and

3-55     missions; and

3-56                 (2)  the distance between the two designated

3-57     headquarters of a transferred employee is at least 25 miles.

3-58           SECTION 1.12.  Subchapter I, Chapter 201, Transportation

3-59     Code, is amended by adding Section 201.705 to read as follows:

3-60           Sec. 201.705.  PILOT PROJECT ON VEHICLE MAINTENANCE

3-61     OUTSOURCING.  (a)  The department shall conduct a two-year pilot

3-62     project to determine whether contracting with a private entity for

3-63     maintenance and repair services of all department vehicles would be

3-64     cost effective.

3-65           (b)  The study must be implemented in at least three of the

3-66     department's districts.  The districts in which the study is

3-67     implemented must vary in geography and population.

3-68           (c)  From any cost savings resulting from the pilot project

3-69     and from funds appropriated, the department shall assist counties

 4-1     with materials to repair county roads that are damaged as a result

 4-2     of legally permitted overweight truck traffic.  The department

 4-3     shall:

 4-4                 (1)  ensure that the total value of assistance is at

 4-5     least $25 million a year;

 4-6                 (2)  make maximum usage of surplus materials on hand;

 4-7                 (3)  develop rules and procedures in order to implement

 4-8     this section and to provide for the equitable distribution of these

 4-9     funds; and

4-10                 (4)  undertake cooperative and joint procurement of

4-11     road materials with the counties under General Services Commission

4-12     procedures.

4-13           (d)  Not later than January 1, 2001, the department shall

4-14     submit a report to the legislature on the results of the pilot

4-15     program and any recommendations on the continuation or expansion of

4-16     the pilot program.

4-17           (e)  This section expires January 1, 2001.

4-18           SECTION 1.13.  Section 201.801, Transportation Code, is

4-19     amended by amending Subsection (c) and adding Subsection (e) to

4-20     read as follows:

4-21           (c)  The department shall:

4-22                 (1)  keep an information file about each written

4-23     complaint filed with the department that the department has the

4-24     authority to resolve; and

4-25                 (2)  provide the person who filed the complaint, and

4-26     each person or entity that is the subject of the complaint,

4-27     information about the department's policies and procedures relating

4-28     to complaint investigation and resolution.

4-29           (e)  With regard to each complaint filed with the department,

4-30     the department shall keep the following information:

4-31                 (1)  the date the complaint is filed;

4-32                 (2)  the name of the person filing the complaint;

4-33                 (3)  the subject matter of the complaint;

4-34                 (4)  a record of each person contacted in relation to

4-35     the complaint;

4-36                 (5)  a summary of the results of the review or

4-37     investigation of the complaint; and

4-38                 (6)  if the department takes no action on the

4-39     complaint, an explanation of the reasons that no action was taken.

4-40           SECTION 1.14.  Section 201.802, Transportation Code, is

4-41     amended by amending Subsection (b) and adding Subsection (c) to

4-42     read as follows:

4-43           (b)  The director [department] shall prepare and maintain a

4-44     written plan that describes the manner in which a person who does

4-45     not speak English or who has a physical, mental, or developmental

4-46     disability is provided reasonable access to the department's

4-47     programs.

4-48           (c)  The department shall comply with each applicable law of

4-49     the United States or this state that relates to program or facility

4-50     accessibility.

4-51           SECTION 1.15.  Chapter 201, Transportation Code, is amended

4-52     by adding Subchapter L to read as follows:

4-53               SUBCHAPTER L.  ELECTRONIC ISSUANCE OF LICENSES

4-54           Sec. 201.931.  DEFINITIONS.  In this section:

4-55                 (1)  "Digital signature" means an electronic identifier

4-56     intended by the person using it to have the same force and effect

4-57     as the use of a manual signature.

4-58                 (2)  "License" includes:

4-59                       (A)  a permit issued by the department that

4-60     authorizes the operation of a vehicle and its load or a combination

4-61     of vehicles and load exceeding size or weight limitations;

4-62                       (B)  motor carrier registration issued under

4-63     Article 6675c, Revised Statutes;

4-64                       (C)  a vehicle storage facility license issued

4-65     under Article 6687-9a, Revised Statutes;

4-66                       (D)  a license or permit for outdoor advertising

4-67     issued under Chapter 391 or 394;

4-68                       (E)  a salvage motor vehicle dealer and agent

4-69     license issued under Article 6687-1a, Revised Statutes;

 5-1                       (F)  specially designated or specialized license

 5-2     plates issued under Subchapters E and F, Chapter 502; and

 5-3                       (G)  an apportioned registration issued according

 5-4     to the International Registration Plan under Section 502.054.

 5-5           Sec. 201.932.  APPLICATION FOR AND ISSUANCE OF LICENSE.

 5-6     (a)  The commission  may by rule provide for the filing of a

 5-7     license application and the issuance of a license by electronic

 5-8     means.

 5-9           (b)  The commission may limit applicant eligibility under

5-10     Subsection (a) if the rules include reasonable eligibility

5-11     criteria.

5-12           Sec. 201.933.  DIGITAL SIGNATURE.  (a)  A license application

5-13     received by the department is considered signed if a digital

5-14     signature is transmitted with the application and intended by the

5-15     applicant to authenticate the license in accordance with Subsection

5-16     (b).

5-17           (b)  The department may only accept a digital signature used

5-18     to authenticate a license application under procedures that:

5-19                 (1)  comply with any applicable rules of another state

5-20     agency having jurisdiction over department use or acceptance of a

5-21     digital signature; and

5-22                 (2)  provide for consideration of factors that may

5-23     affect a digital signature's reliability, including whether a

5-24     digital signature is:

5-25                       (A)  unique to the person using it;

5-26                       (B)  capable of independent verification;

5-27                       (C)  under the sole control of the person using

5-28     it; and

5-29                       (D)  transmitted in a manner that will make it

5-30     infeasible to change the data in the communication or digital

5-31     signature without invalidating the digital signature.

5-32           Sec. 201.934.  PAYMENT OF FEES.  The commission may adopt

5-33     rules regarding the method of payment of a fee for a license issued

5-34     under this subchapter.  The rules may authorize the use of

5-35     electronic funds transfer or a valid credit card issued by a

5-36     financial institution chartered by a state or the federal

5-37     government or by a nationally recognized credit organization

5-38     approved by the department.  The rules may require the payment of a

5-39     discount or service charge for a credit card payment in addition to

5-40     the fee.

5-41           SECTION 1.16.  Subchapter B, Chapter 222, Transportation

5-42     Code, is amended by adding Section 222.034 to read as follows:

5-43           Sec. 222.034.  DISTRIBUTION OF FEDERAL FUNDS.  (a)  Federal

5-44     aid for transportation purposes that is administered by the

5-45     commission shall be distributed to the various parts of the state

5-46     for a funding cycle through the selection of highway projects in

5-47     the state in a manner that is consistent with federal formulas that

5-48     determine the amount of federal aid for transportation purposes

5-49     received by the state.  A distribution under this subsection does

5-50     not include deductions made for the state infrastructure bank or

5-51     other federal funds reallocated by the federal government.

5-52           (b)  The commission may vary from the distribution procedure

5-53     provided by Subsection (a) if it issues a ruling or minute order

5-54     identifying the variance and providing a particular justification

5-55     for the variance.

5-56           SECTION 1.17.  Subchapter C, Chapter 222, Transportation

5-57     Code, is amended by adding Section 222.053 to read as follows:

5-58           Sec. 222.053.  RELIEF FROM LOCAL MATCHING FUNDS REQUIREMENT.

5-59     (a)  In this section, "economically disadvantaged county" means a

5-60     county that has, in comparison to other counties in the state:

5-61                 (1)  below average per capita taxable property value;

5-62                 (2)  below average per capita income; and

5-63                 (3)  above average unemployment.

5-64           (b)  Except as provided by Subsection (c), the commission may

5-65     require, request, or accept from a political subdivision matching

5-66     or other local funds, rights-of-way, utility adjustments,

5-67     additional participation, planning, documents, or any other local

5-68     incentives to make the most efficient use of its highway funding.

5-69           (c)  In evaluating a proposal to construct, maintain, or

 6-1     extend a highway or for another type of highway project in a

 6-2     political subdivision that consists of all or a portion of an

 6-3     economically disadvantaged county, the commission:

 6-4                 (1)  may not consider the absence or value of local

 6-5     incentives provided under Subsection (b) beyond the minimum

 6-6     required local matching funds; and

 6-7                 (2)  shall adjust the minimum local matching funds

 6-8     requirement after evaluating the political subdivision's effort and

 6-9     ability to meet the requirement.

6-10           (d)  In making an adjustment under Subsection (c)(2), the

6-11     commission may use its in-kind resources and any other available

6-12     resources to help satisfy a federal requirement.

6-13           (e)  The commission shall report annually to the governor,

6-14     the lieutenant governor, and the speaker of the house of

6-15     representatives on the use of matching funds and local incentives

6-16     and the ability of the commission to ensure that political

6-17     subdivisions located in economically disadvantaged counties have

6-18     equal ability to compete for highway funding with political

6-19     subdivisions in counties that are not economically disadvantaged.

6-20           SECTION 1.18.  Subsection (c), Section 202.052,

6-21     Transportation Code, is amended to read as follows:

6-22           (c)  The department shall charge not less than fair market

6-23     value for the highway asset, payable in cash, services, tangible or

6-24     intangible property, or any combination of cash, services, or

6-25     property.

6-26           SECTION 1.19.  Chapter 202, Transportation Code, is amended

6-27     by adding Subchapter E to read as follows:

6-28                SUBCHAPTER E.  TELECOMMUNICATIONS FACILITIES

6-29           Sec. 202.091.  DEFINITION.  In this subchapter,

6-30     "telecommunications" means any transmission, emission, or reception

6-31     of signs, signals, writings, images, or sounds of intelligence of

6-32     any nature by wire, radio, optical, or other electromagnetic

6-33     systems.

6-34           Sec. 202.092.  USE OF DEPARTMENT FACILITIES.  Notwithstanding

6-35     any other law, a telecommunications provider may not place or

6-36     maintain its facilities or otherwise use improvements, including

6-37     structures, medians, conduits, or telecommunications equipment or

6-38     lines, constructed or installed by the state as components of the

6-39     state highway system except by a lease under Section 202.052 or an

6-40     agreement under Section 202.093.

6-41           Sec. 202.093.  AGREEMENT.  (a)  Notwithstanding any other

6-42     law, the department may enter into an agreement with a

6-43     telecommunications provider allowing the provider, for the

6-44     provider's commercial purposes, to:

6-45                 (1)  place the provider's telecommunications facilities

6-46     within the median of a divided state highway; or

6-47                 (2)  place lines within or otherwise use

6-48     telecommunications facilities owned or installed by the state in or

6-49     on the improved portion of a state highway, including a median,

6-50     structures, equipment, conduits, or any other component of the

6-51     highway facilities constructed or owned by the department.

6-52           (b)  An agreement entered into under Subsection (a) may

6-53     provide for compensation between the department and the

6-54     telecommunications provider in the form of cash or the shared use

6-55     of facilities.

6-56           Sec. 202.094.  COMPETITIVE SEALED PROPOSAL.  (a)  Before

6-57     entering into an agreement with a telecommunications provider under

6-58     this subchapter, the department shall follow a procedure using

6-59     competitive sealed proposals.

6-60           (b)  The department shall solicit proposals by a request for

6-61     proposals and shall publish notice of the request in at least two

6-62     newspapers of general circulation and in the Texas Register.

6-63           (c)  The proposals shall be opened so as to avoid disclosure

6-64     of contents to competing offerors during the process of

6-65     negotiation.  After a contract is awarded, all proposals that have

6-66     been submitted shall be open for public inspection subject to

6-67     Subchapter C, Chapter 552, Government Code.

6-68           (d)  The department may discuss an acceptable or potentially

6-69     acceptable proposal with an offeror to assess the offeror's ability

 7-1     to meet the solicitation requirements.  After the submission of a

 7-2     proposal but before making an award, the department may permit the

 7-3     offeror to revise the proposal in order to obtain the best final

 7-4     offer.  The department may not disclose any information derived

 7-5     from proposals submitted from competing offerors in conducting

 7-6     discussions under this section.  The department shall provide each

 7-7     offeror with an equal opportunity for discussion and revision of

 7-8     proposals.

 7-9           (e)  The department shall make a written award of a contract

7-10     to the offeror whose proposal is the most advantageous to the

7-11     state, considering price and the evaluation factors in the request

7-12     for proposals, except that if the department finds that none of the

7-13     offers is acceptable, it shall refuse all offers.  The contract

7-14     file must state in writing the basis on which the award is made.

7-15           Sec. 202.095.  APPLICABILITY.  (a)  Subtitle D, Title 10,

7-16     Government Code, does not apply to a procurement under this

7-17     subchapter.

7-18           (b)  This subchapter does not limit a telecommunications

7-19     provider from placing lines or facilities in the unimproved portion

7-20     of state highway right-of-way to the extent authorized by

7-21     applicable law.

7-22           Sec. 202.096.  REVENUE.  The department shall deposit in the

7-23     state highway fund any revenue received under this subchapter.

7-24           Sec. 202.097.  RULEMAKING.  The commission shall adopt rules

7-25     for the implementation of this subchapter.

7-26           SECTION 1.20.  Chapter 222, Transportation Code, is amended

7-27     by adding Subchapter D to read as follows:

7-28                  SUBCHAPTER D.  STATE INFRASTRUCTURE BANK

7-29           Sec. 222.071.  DEFINITIONS.  In this subchapter:

7-30                 (1)  "Bank" means the state infrastructure bank

7-31     account.

7-32                 (2)  "Construction" has the meaning assigned by 23

7-33     U.S.C. Section 101.

7-34                 (3)  "Federal act" means Section 350 of the National

7-35     Highway System Designation Act of 1995 (Pub. L. No. 104-59).

7-36                 (4)  "Federal-aid highway" has the meaning assigned by

7-37     23 U.S.C. Section 101.

7-38                 (5)  "Qualified project" includes:

7-39                       (A)  the construction of a federal-aid highway;

7-40                       (B)  a transit project under 49 U.S.C. Sections

7-41     5307, 5309, and 5311; or

7-42                       (C)  for the expenditure of secondary funds, a

7-43     project eligible for assistance under Title 23 or Title 49, United

7-44     States Code.

7-45                 (6)  "Secondary funds" includes:

7-46                       (A)  the repayment of a loan or other assistance

7-47     that is provided with money deposited to the credit of the bank;

7-48     and

7-49                       (B)  investment income generated by secondary

7-50     funds deposited to the credit of the bank.

7-51           Sec. 222.072.  STATE INFRASTRUCTURE BANK.  (a)  The state

7-52     infrastructure bank is an account in the state highway fund.  The

7-53     bank is administered by the commission.

7-54           (b)  Federal funds received by the state under the federal

7-55     act, matching state funds in an amount required by that Act,

7-56     proceeds from bonds issued under Section 222.075, and secondary

7-57     funds may be deposited into the bank and used only for the purposes

7-58     described in this subchapter.

7-59           Sec. 222.073.  PURPOSES OF INFRASTRUCTURE BANK.  The

7-60     commission shall use money deposited in the bank to:

7-61                 (1)  encourage public and private investment in

7-62     transportation facilities, including facilities that contribute to

7-63     the multimodal and intermodal transportation capabilities of the

7-64     state; and

7-65                 (2)  develop financing techniques designed to:

7-66                       (A)  expand the availability of funding for

7-67     transportation projects and to reduce direct state costs;

7-68                       (B)  maximize private and local participation in

7-69     financing projects; and

 8-1                       (C)  improve the efficiency of the state

 8-2     transportation system.

 8-3           Sec. 222.074.  FORM OF ASSISTANCE.  (a)  To further a purpose

 8-4     described by Section 222.073, the commission may use money

 8-5     deposited to the credit of the bank to provide financial assistance

 8-6     to a public or private entity for a qualified project to:

 8-7                 (1)  extend credit by direct loan;

 8-8                 (2)  provide credit enhancements;

 8-9                 (3)  serve as a capital reserve for bond or debt

8-10     instrument financing;

8-11                 (4)  subsidize interest rates;

8-12                 (5)  insure the issuance of a letter of credit or

8-13     credit instrument;

8-14                 (6)  finance a purchase or lease agreement in

8-15     connection with a transit project;

8-16                 (7)  provide security for bonds and other debt

8-17     instruments; or

8-18                 (8)  provide methods of leveraging money that have been

8-19     approved by the United States Secretary of Transportation and

8-20     relate to the project for which the assistance is provided.

8-21           (b)  Financial assistance to a private entity under

8-22     Subsection (a) shall be limited to a qualified project that:

8-23                 (1)  provides transportation services or facilities for

8-24     use by the general public; or

8-25                 (2)  is constructed or operated in cooperation with a

8-26     state agency or political subdivision in accordance with an

8-27     agreement between that agency or political subdivision and the

8-28     private entity.

8-29           Sec. 222.075.  REVENUE BONDS.  (a)  The commission may issue

8-30     revenue bonds for the purpose of providing money for the bank.

8-31           (b)  Except as provided by Subsection (c), the commission may

8-32     issue revenue bonds or revenue refunding bonds under this section

8-33     without complying with any other law applicable to the issuance of

8-34     bonds.

8-35           (c)  Notwithstanding any other provision of this section, the

8-36     following laws apply to bonds issued by the commission:

8-37                 (1)  Chapter 503, Acts of the 54th Legislature, 1955

8-38     (Article 717k, Vernon's Texas Civil Statutes);

8-39                 (2)  Chapter 3, Acts of the 61st Legislature, Regular

8-40     Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes);

8-41                 (3)  the Bond Procedures Act of 1981 (Article 717k-6,

8-42     Vernon's Texas Civil Statutes);

8-43                 (4)  Article 3, Chapter 53, Acts of the 70th

8-44     Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's

8-45     Texas Civil Statutes); and

8-46                 (5)  Chapter 656, Acts of the 68th Legislature, Regular

8-47     Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).

8-48           (d)  The revenue bonds are special obligations of the

8-49     commission payable only from income and receipts of the bank as the

8-50     commission may designate.  The income and receipts include

8-51     principal of and interest paid and to be paid on acquired

8-52     obligations, other designated obligations held by the bank, or

8-53     income from accounts created within the bank.

8-54           (e)  The revenue bonds do not constitute a debt of the state

8-55     or a pledge of the faith and credit of the state.

8-56           (f)  The commission may require participants to make charges,

8-57     levy taxes, or otherwise provide for sufficient money to pay

8-58     acquired obligations.

8-59           (g)  Revenue bonds issued under this section shall be

8-60     authorized by order of the commission and shall have the form and

8-61     characteristics and bear the designations as are provided in the

8-62     order.

8-63           (h)  Revenue bonds shall:

8-64                 (1)  be dated;

8-65                 (2)  bear interest at the rate or rates authorized by

8-66     law;

8-67                 (3)  mature at the time or times, serially, as term,

8-68     revenue bonds, or otherwise not more than 50 years after their

8-69     dates;

 9-1                 (4)  be called before stated maturity on the terms and

 9-2     at the prices, be in the denominations, be in the form, either

 9-3     coupon or registered, carry registration privileges as to principal

 9-4     only or as to both principal and interest and as to successive

 9-5     exchange of coupon for registered bonds or one denomination for

 9-6     bonds of other denominations, and successive exchange of registered

 9-7     revenue bonds for coupon revenue bonds, be executed in the manner,

 9-8     and be payable at the place or places inside or outside the state,

 9-9     as provided in the order;

9-10                 (5)  be issued in temporary or permanent form;

9-11                 (6)  be issued in one or more installments and from

9-12     time to time as required and sold at a price or prices and under

9-13     terms determined by the commission to be the most advantageous

9-14     reasonably obtainable; and

9-15                 (7)  be issued on a parity with and be secured in the

9-16     manner as other revenue bonds authorized to be issued by this

9-17     section or be issued without parity and secured differently from

9-18     other revenue bonds.

9-19           (i)  All proceedings relating to the issuance of revenue

9-20     bonds issued under this section shall be submitted to the attorney

9-21     general for examination.  On determining that the revenue bonds

9-22     have been authorized in accordance with law, the attorney general

9-23     shall approve the revenue bonds, and the revenue bonds shall be

9-24     registered by the comptroller.  After the approval and

9-25     registration, the revenue bonds are incontestable in any court or

9-26     other forum for any reason and are valid and binding obligations in

9-27     accordance with their terms for all purposes.

9-28           (j)  The proceeds received from the sale of revenue bonds

9-29     shall be deposited in the bank and invested in the manner provided

9-30     for other funds deposited under this subchapter.

9-31           Sec. 222.076.  SEPARATE SUBACCOUNTS.  The bank shall consist

9-32     of at least two separate subaccounts, a highway subaccount and a

9-33     transit subaccount.

9-34           Sec. 222.077.  REPAYMENT TERMS; DEPOSIT OF REPAYMENTS;

9-35     INVESTMENT INCOME.  (a)  Any funds disbursed through the state

9-36     infrastructure bank must be repaid on terms determined by the

9-37     commission that comply with the federal act.

9-38           (b)  Notwithstanding any other law to the contrary:

9-39                 (1)  the repayment of a loan or other assistance

9-40     provided with money deposited to the credit of a subaccount in the

9-41     bank shall be deposited in that subaccount; and

9-42                 (2)  investment income generated by money deposited to

9-43     the credit of a subaccount in the bank shall be:

9-44                       (A)  credited to that subaccount;

9-45                       (B)  available for use in providing financial

9-46     assistance under this subchapter; and

9-47                       (C)  invested in United States Treasury

9-48     securities, bank deposits, or other financing instruments approved

9-49     by the United States secretary of transportation to earn interest

9-50     and enhance the financing of projects assisted by the bank.

9-51           (c)  The commission shall administer the bank in compliance

9-52     with the federal act and any applicable federal regulation or

9-53     guideline.

9-54           (d)  The commission by rule shall:

9-55                 (1)  implement this subchapter; and

9-56                 (2)  establish eligibility criteria for an entity

9-57     applying for financial assistance from the bank.

9-58           Sec. 222.078.  REPORT TO LEGISLATURE.  (a)  Not later than

9-59     January 1, 2001, the department shall submit a report to the

9-60     legislature on the status of projects funded by the state

9-61     infrastructure bank and the use of the bank.  The report must

9-62     include information about:

9-63                 (1)  the financial and operational status of projects

9-64     assisted by the bank;

9-65                 (2)  the financial condition of the bank, including

9-66     fund balances;

9-67                 (3)  the cumulative value of investments made; and

9-68                 (4)  the extent to which projects assisted by the bank

9-69     have aided the state in meeting the state's transportation needs.

 10-1          (b)  This section expires January 1, 2001.

 10-2          SECTION 1.21.  Subchapter A, Chapter 223, Transportation

 10-3    Code, is amended by adding Sections 223.012 and 223.013 to read as

 10-4    follows:

 10-5          Sec. 223.012.  CONTRACTOR PERFORMANCE.  The department shall:

 10-6                (1)  develop a schedule for liquidated damages that

 10-7    accurately reflects the costs associated with project completion

 10-8    delays, including administrative and travel delays; and

 10-9                (2)  review contractor bidding capacity to ensure that

10-10    contractors meet each quality and timeliness standard established

10-11    by the commission.

10-12          Sec. 223.013.  ELECTRONIC BIDDING SYSTEM.  (a)  The

10-13    department may establish an electronic bidding system for highway

10-14    construction and maintenance contracts.

10-15          (b)  The system must permit a qualified vendor to

10-16    electronically submit a bid, including any contract, signature, or

10-17    verification of a guaranty check by a financial institution.

10-18          (c)  That part of Section 223.004(a) requiring a bid to be

10-19    opened at a public hearing of the commission does not apply to an

10-20    electronically submitted bid.  A copy of each electronically

10-21    submitted bid shall be publicly posted within 48 hours after bids

10-22    are opened.

10-23          (d)  After the electronic bidding system is established, the

10-24    department shall take the actions necessary to recover the

10-25    department's costs of manually processing bids from a person who

10-26    does not submit an electronic bid.

10-27          SECTION 1.22.  Section 223.041, Transportation Code, is

10-28    amended to read as follows:

10-29          Sec. 223.041.  Engineering and Design Contracts.  (a)  The

10-30    department primarily shall use private sector businesses to

10-31    accomplish its activities in preliminary and construction

10-32    engineering and engineering design, including materials engineering

10-33    and testing, environmental investigations, and related areas in

10-34    which services are available from the private sector.  This goal

10-35    shall be achieved through the policy described by Subsection (b)

10-36    [department's policy regarding the regular use of private sector

10-37    professional services for preliminary and construction engineering

10-38    and engineering design shall achieve a balance between the use of

10-39    department employees and the use of private contractors if the

10-40    costs are equivalent].

10-41          (b)  Of the positions paid out of funds appropriated to the

10-42    department for the planning, design, and management of highway

10-43    projects in the General Appropriations Act for the biennium

10-44    beginning on September 1, 1997, the department may fill only one of

10-45    every three positions that become vacant through resignation or

10-46    termination until:

10-47                (1)  staffing levels are reduced by 33 percent from the

10-48    level authorized as of August 31, 1997, or to a level not to exceed

10-49    3,300 positions, with commensurate reductions in associated

10-50    administrative costs; and

10-51                (2)  private sector providers are used for a minimum of

10-52    50 percent of each of the department's engineering activities [The

10-53    office of the state auditor shall determine relevant costs to be

10-54    considered under Subsection (a)].

10-55          (c)  The department shall report to the Legislative Budget

10-56    Board not later than September 1 of each year on the department's

10-57    progress in achieving the goal set by Subsection (b).

10-58          (d)  The Legislative Budget Board may modify the requirements

10-59    of Subsection (a) or (b) if, after a study by the State Council on

10-60    Competitive Government, the board finds that it is not possible for

10-61    the department to obtain services from the private sector on a

10-62    cost-effective basis.  A study conducted under this section must:

10-63                (1)  analyze the full costs of the department's total

10-64    engineering operation, with indirect costs allocated in proportion

10-65    to agency salaries in a manner comparable to private providers;

10-66                (2)  analyze the department's historic costs of

10-67    procuring services from private sector providers;

10-68                (3)  review and analyze the costs that other public

10-69    entities have for procuring engineering services from private

 11-1    sector providers for large-scale construction projects; and

 11-2                (4)  review and make recommendations regarding

 11-3    engineering management practices used by other public entities that

 11-4    could improve the efficiency of the department's engineering

 11-5    management system.

 11-6          (e)  If the Legislative Budget Board makes a request for a

 11-7    study under Subsection (d), the costs of the study shall be paid by

 11-8    the department through interagency contract.  The study shall be

 11-9    managed by the State Council on Competitive Government but may be

11-10    performed by an independent contractor.

11-11          (f)  The commission may provide for hearings at which private

11-12    sector complaints relating to the selection process are heard.

11-13          SECTION 1.23.  Chapter 224, Transportation Code, is amended

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

11-15       SUBCHAPTER F.  CONGESTION MITIGATION PROJECTS AND FACILITIES

11-16          Sec. 224.151.  DEFINITIONS.  In this subchapter:

11-17                (1)  "Congestion" means the level at which

11-18    transportation system performance is no longer acceptable because

11-19    of traffic interference.  The level of acceptable system

11-20    performance may vary by type of transportation facility, geographic

11-21    location, or time of day.

11-22                (2)  "Congestion mitigation" means projects and

11-23    facilities used to reduce congestion to promote the use of carpools

11-24    and vanpools, improve air quality, conserve fuel, and enhance the

11-25    use of existing highways and facilities on the state highway

11-26    system.

11-27                (3)  "High occupancy vehicle" means a bus or other

11-28    motorized passenger vehicle such as a carpool or vanpool vehicle

11-29    used for ridesharing purposes and occupied by a specified minimum

11-30    number of persons.

11-31                (4)  "High occupancy vehicle lane" means one or more

11-32    lanes of a highway or an entire highway where high occupancy

11-33    vehicles, trucks, or emergency vehicles in any combination are

11-34    given at all times, or at regularly scheduled times, a priority or

11-35    preference over some or all other vehicles moving in the general

11-36    stream of all highway traffic.

11-37                (5)  "Motor vehicle" has the meaning assigned by

11-38    Section 522.003.

11-39                (6)  "Transportation corporation" means a

11-40    transportation corporation created by the state under Chapter 431.

11-41          Sec. 224.152.  PURPOSE.  (a)  Subject to the availability of

11-42    state and federal funds, it is the intent of the legislature to

11-43    further the purposes of the United States Congress as expressed in

11-44    23 U.S.C. Sections 134, 135, 146, and 149 and in Section 1012(b) of

11-45    Pub. L. No. 102-240 to conserve fuel, decrease traffic congestion

11-46    during rush hours, improve air quality, develop innovative

11-47    techniques to finance transportation projects, and enhance the use

11-48    of existing highways and facilities.

11-49          (b)  The legislature declares that it is necessary, to

11-50    further the purposes described by Subsection (a), to provide for

11-51    the participation of the commission and the department in projects

11-52    and facilities for the purpose of congestion mitigation.

11-53          Sec. 224.153.  HIGH OCCUPANCY VEHICLE LANES AUTHORIZED.

11-54    (a)  The commission may designate and the department or a

11-55    transportation corporation may design, construct, operate, or

11-56    maintain one or more lanes on a multi-lane highway facility as

11-57    dedicated high occupancy vehicle lanes on the state highway system.

11-58          (b)  The commission may spend or allocate any available funds

11-59    to:

11-60                (1)  designate highway lanes as preferential carpool or

11-61    high occupancy vehicle lanes and create facilities to relieve

11-62    traffic congestion; or

11-63                (2)  make any other designation of a dedicated high

11-64    occupancy vehicle lane on the state highway system.

11-65          Sec. 224.154.  CONGESTION MITIGATION.  (a)  Notwithstanding

11-66    any law of this state relating to charging tolls on existing free

11-67    public highways, the commission may by order authorize the

11-68    department or a transportation corporation to charge a toll for the

11-69    use of one or more lanes of a state highway facility, including a

 12-1    high occupancy vehicle lane, for the purposes of congestion

 12-2    mitigation.

 12-3          (b)  The commission may by order set the amount of toll

 12-4    charges.  Any toll charges shall be imposed in a reasonable and

 12-5    nondiscriminatory manner.

 12-6          (c)  For purposes of congestion mitigation projects and

 12-7    facilities under this subchapter, the department and a

 12-8    transportation corporation are successor agencies to the Texas

 12-9    Turnpike Authority for purposes of Section 52-b, Article III, Texas

12-10    Constitution.

12-11          (d)  Revenue generated from toll charges and administrative

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

12-13    mitigation facility shall be deposited in the state highway fund

12-14    and may be used only for projects for the improvement of the state

12-15    highway system.

12-16          (e)  The powers granted by this section are subject to the

12-17    restrictions of 23 U.S.C. Section 129.

12-18          Sec. 224.155.  FAILURE OR REFUSAL TO PAY TOLL CHARGES.  Any

12-19    motor vehicle other than a police or emergency vehicle that is

12-20    driven or towed through a toll collection facility shall pay the

12-21    proper toll.

12-22          Sec. 224.156.  ADMINISTRATIVE FEE; NOTICE.  (a)  In the event

12-23    of nonpayment of the proper toll, on issuance of proper notice of

12-24    nonpayment, the registered owner of the nonpaying vehicle is

12-25    legally bound to pay both the proper toll and an administrative

12-26    fee.

12-27          (b)  The commission by rule and a transportation corporation

12-28    by order of its board of directors may respectively fix an

12-29    administrative fee, not to exceed $100, to recover the cost of

12-30    collecting an unpaid toll.  The notice of nonpayment to the

12-31    registered owner shall be sent by the department by first-class

12-32    mail not later than 30 days after the date of the alleged failure

12-33    to pay and may require payment not sooner than 30 days after the

12-34    date the notice was mailed.  The registered owner shall pay a

12-35    separate toll and administrative fee for each event of nonpayment.

12-36          (c)  If the registered owner of the vehicle fails to pay the

12-37    proper toll and administrative fee within the time specified by the

12-38    notice of nonpayment issued under this section, the registered

12-39    owner shall be cited as for other traffic violations for the

12-40    nonpayment, and the owner is legally bound to pay a fine, not to

12-41    exceed $250, for each event of nonpayment.  Neither the legal

12-42    obligation to pay nor the actual payment of the fine affects the

12-43    legal duty of the owner for any other fine or penalty prescribed by

12-44    law.

12-45          Sec. 224.157.  PROSECUTIONS.  (a)  In the prosecution of a

12-46    violation under Sections 224.155 and 224.156, proof that the

12-47    vehicle passed through a toll collection facility without payment

12-48    of the proper toll, together with proof that the defendant was the

12-49    registered owner of the vehicle when the failure to pay occurred,

12-50    establishes the nonpayment of the registered owner.

12-51          (b)  The court of the local jurisdiction in which the

12-52    violation occurred may assess and collect the fine in addition to

12-53    any court costs.  The court shall also collect the proper toll and

12-54    administrative fee and forward the toll and fee to the department

12-55    or to the transportation corporation.

12-56          (c)  It is a defense to nonpayment under Section 224.155 or

12-57    224.156 that the motor vehicle in question was stolen before the

12-58    failure to pay the proper toll occurred and was not recovered by

12-59    the time of the failure to pay, but only if the theft was reported

12-60    to the appropriate law enforcement authority before the earlier of:

12-61                (1)  the occurrence of the failure to pay; or

12-62                (2)  eight hours after discovery of the theft.

12-63          (d)  A registered owner who is a lessor of a vehicle

12-64    concerning which a notice of nonpayment was issued under Section

12-65    224.156 is not liable in connection with that notice of nonpayment

12-66    if, not later than 30 days after the date the notice of nonpayment

12-67    is mailed, the registered owner provides to the department or the

12-68    transportation corporation a copy of the rental, lease, or other

12-69    contract document covering the vehicle on the date of the

 13-1    nonpayment, with the name and address of the lessee clearly

 13-2    legible.  Failure to provide this information within the period

 13-3    prescribed renders the lessor liable as the registered owner.  If

 13-4    the lessor provides the required information within the period

 13-5    prescribed, the lessee of the vehicle on the date of the violation

 13-6    is considered to be the owner of the vehicle for purposes of this

 13-7    subchapter and is subject to prosecution for failure to pay the

 13-8    proper toll as if the lessee were the registered owner, if the

 13-9    department or the transportation corporation sends a notice of

13-10    nonpayment to the lessee by first-class mail within 30 days after

13-11    the date of receipt of the required information from the lessor.

13-12          Sec. 224.158.  USE AND RETURN OF TRANSPONDERS.  (a)  For

13-13    purposes of this section, a "transponder" means a device, placed on

13-14    or within a motor vehicle, that is capable of transmitting

13-15    information used to assess or collect tolls.  A transponder is

13-16    "insufficiently funded" when there are no remaining funds in the

13-17    account in connection with which the transponder was issued.

13-18          (b)  Any law enforcement officer of the Department of Public

13-19    Safety has the authority to seize a stolen or insufficiently funded

13-20    transponder and to return it to the department or the

13-21    transportation corporation, except that an insufficiently funded

13-22    transponder may not be seized sooner than 30 days after the date

13-23    the department or the transportation corporation has sent a notice

13-24    of delinquency to the holder of the account.

13-25          Sec. 224.159.  ADOPTION OF RULES; PRESCRIBE FORMS.  The

13-26    commission shall adopt rules and prescribe forms to administer this

13-27    subchapter.

13-28          SECTION 1.24.  Section 431.073, Transportation Code, is

13-29    amended to read as follows:

13-30          Sec. 431.073.  PROJECT IN COUNTY OF 500,000 [1.5 MILLION] OR

13-31    MORE OR ADJACENT COUNTY.  (a)  This section applies only to a

13-32    corporation [in existence on August 31, 1991,] that was created by

13-33    the state or one or more counties or municipalities to implement a

13-34    transportation project in:

13-35                (1)  a county with a population of 500,000 [1.5

13-36    million] or more; or

13-37                (2)  a county adjacent to a county described by

13-38    Subdivision (1).

13-39          (b)  If approved and authorized by the commission, a

13-40    corporation created by the state has the rights, powers,

13-41    privileges, authority, and functions given the department under

13-42    this title to:

13-43                (1)  construct, improve, operate, and maintain high

13-44    occupancy vehicle lanes; and

13-45                (2)  charge a toll for the use of one or more high

13-46    occupancy vehicle lanes for the purpose of congestion mitigation.

13-47          (c)  A corporation in existence on August 31, 1991, has the

13-48    powers, rights, and privileges of a corporation created under

13-49    Chapter 11, Title 32, Revised Statutes, as that law existed on

13-50    August 31, 1991, except that the required right-of-way of any

13-51    highway, road, street, or turnpike may be of the width required or

13-52    approved by the commission or each governing body creating the

13-53    corporation.

13-54          SECTION 1.25.  Section 224.033, Transportation Code, is

13-55    amended to read as follows:

13-56          Sec. 224.033.  COUNTY IMPROVEMENT OF STATE SYSTEM.  (a)  The

13-57    commission may enter into an agreement with the commissioners court

13-58    of a county [may contract with the department] for the improvement

13-59    by the county of the state highway system.

13-60          (b)  In this section, "improvement" means construction,

13-61    reconstruction, maintenance, and the making of a necessary plan or

13-62    survey before beginning construction, reconstruction, or

13-63    maintenance and includes a project or activity[:]

13-64                [(1)]  appurtenant to a state highway and including

13-65    drainage facilities, surveying, traffic counts, driveways,

13-66    landscaping, signs, lights, or guardrails[; or]

13-67                [(2)  involving maintenance of a state highway and

13-68    appurtenant facilities].

13-69          SECTION 1.26.  Section 251.014, Transportation Code, is

 14-1    amended to read as follows:

 14-2          Sec. 251.014.  COUNTY IMPROVEMENT OF STATE HIGHWAY.  (a)  The

 14-3    commissioners court of a county may enter into an agreement

 14-4    [contract] with the commission [department] for the county to carry

 14-5    out a project or activity for the improvement of a segment of the

 14-6    state highway system.

 14-7          (b)  In this section, "improvement" means construction,

 14-8    reconstruction, maintenance, and the making of a necessary plan or

 14-9    survey before beginning construction, reconstruction, or

14-10    maintenance and includes a [if the] project or activity[:]

14-11                [(1)  is] appurtenant to a state highway, including

14-12    surveying, making a traffic count, or landscaping or an activity

14-13    relating to a drainage facility, driveway, sign, light, or

14-14    guardrail[; or]

14-15                [(2)  involves maintenance of a state highway or

14-16    appurtenant facility].

14-17          SECTION 1.27.  Chapter 455, Transportation Code, is amended

14-18    by adding Section 455.0015 to read as follows:

14-19          Sec. 455.0015.  TRANSPORTATION NEEDS OF CLIENTS OF HEALTH AND

14-20    HUMAN SERVICES AGENCIES.  In performing its public transportation

14-21    planning and funding activities, the department shall consider and

14-22    include the transportation needs of those persons who are clients

14-23    of the health and human services agencies of this state.

14-24          SECTION 1.28.  Section 623.074, Transportation Code, is

14-25    amended by adding Subsection (d) to read as follows:

14-26          (d)  The department may by rule authorize an applicant to

14-27    submit an application electronically.  An electronically submitted

14-28    application shall be considered signed if a digital signature is

14-29    transmitted with the application and intended by the applicant to

14-30    authenticate the application.  For purposes of this subsection,

14-31    "digital signature" means an electronic identifier intended by the

14-32    person using it to have the same force and effect as the use of a

14-33    manual signature.

14-34          SECTION 1.29.  (a)  Not later than April 30, 1998, the Texas

14-35    Department of Transportation shall complete a study of alternative

14-36    routes for a second transportation link from the mainland to South

14-37    Padre Island that would:

14-38                (1)  provide an alternative for emergency ingress or

14-39    egress for permanent residents and daily and overnight visitors;

14-40                (2)  better disperse the traffic on the island to

14-41    reduce congestion at the southern end of the island;

14-42                (3)  reduce the travel time and cost by providing a

14-43    more direct route to the island from upper Rio Grande Valley

14-44    locations and provide relief to traffic congestion in

14-45    municipalities along existing highway routes; and

14-46                (4)  give priority to environmentally friendly

14-47    alternative options, such as a light-rail highway combination, that

14-48    could be anchored at the Valley International Airport and the South

14-49    Padre Convention Center or at other logical destinations.

14-50          (b)  The Texas Department of Transportation shall, not later

14-51    than December 31, 1998, report to the legislature on the

14-52    department's plans to implement the recommendations of the study

14-53    described by Subsection (a) of this section.

14-54          SECTION 1.30.  Subsection (b), Section 201.109,

14-55    Transportation Code, is amended to read as follows:

14-56          (b)  In carrying out this section, the commission shall

14-57    provide for:

14-58                (1)  maximizing the generation of revenue from existing

14-59    assets of the department, including real estate;

14-60                (2)  increasing the role of the private sector and

14-61    public-private projects in the leasing of real estate and other

14-62    assets in the development of highway projects;

14-63                (3)  setting and attempting to meet annual revenue

14-64    enhancement goals;

14-65                (4)  reporting on the progress in meeting revenue

14-66    enhancement goals in the department's annual report; [and]

14-67                (5)  contracting for an independent audit of the

14-68    department's management and business operations in 2001 and each

14-69    12th year after 2001; and

 15-1                (5)  developing cost-benefit analysis between the use

 15-2    of local materials previously incorporated into roadways versus use

 15-3    of materials blended or transported from other sources.

 15-4          SECTION 1.31.  Subchapter C, Chapter 791, Government Code, is

 15-5    amended by adding Section 791.031 to read as follows:

 15-6          Sec. 791.031.  TRANSPORTATION INFRASTRUCTURE.  This section

 15-7    applies only to a local government, other than a school district,

 15-8    that is authorized to impose ad valorem taxes on real property.

 15-9          (b)  The Texas Department of Transportation may enter into an

15-10    interlocal contract with a local government for the financing of

15-11    transportation infrastructure that is constructed or that is to be

15-12    constructed in the territory of the local government by the

15-13    department.

15-14          (c)  The agreement must include:

15-15                (1)  the duration of the agreement;

15-16                (2)  a description of each transportation

15-17    infrastructure project or proposed project;

15-18                (3)  a map showing the location of each project; and

15-19                (4)  an estimate of the cost of each project.

15-20          (d)  The agreement may establish one or more transportation

15-21    infrastructure zones.  The Texas Department of Transportation and

15-22    the local government may agree that at one or more specified times,

15-23    the local government will pay to the Texas Department of

15-24    Transportation an amount that is calculated on the basis of

15-25    increased ad valorem tax collections in a zone that are

15-26    attributable to increased values of property located in the zone

15-27    resulting from an infrastructure project.  The amount may not

15-28    exceed an amount that is equal to 30 percent of the increase in ad

15-29    valorem tax collections for the specified period.

15-30          (e)  Money received by the Texas Department of Transportation

15-31    under this section may be used:

15-32                (1)  to provide a local match for the acquisition of

15-33    right-of-way in the territory of the local government; or

15-34                (2)  for design, construction, operation, or

15-35    maintenance of transportation facilities in the territory of the

15-36    local government.

15-37          SECTION 1.32.  Subtitle B, Title 6, Transportation Code, is

15-38    amended by adding Chapter 226 to read as follows:

15-39                     CHAPTER 226.  EMERGENCY CALL BOX SYSTEM

15-40          Sec. 226.001.  DEFINITION.  In this chapter, "emergency

15-41    response service" means:

15-42                (1)  firefighting, law enforcement, or emergency

15-43    medical services that are provided by a public agency; or

15-44                (2)  motorist assistance services.

15-45          Sec. 226.002.  APPLICABILITY; LIMITATION ON EXPENDITURES.

15-46    This chapter does not:

15-47                (1)  apply to a segment of a highway that the

15-48    commission has designated as a farm-to-market or ranch-to-market

15-49    road; or

15-50                (2)  authorize the department to make an expenditure of

15-51    money for the implementation, operation, or maintenance of the

15-52    emergency telephone call box system under this chapter that exceeds

15-53    the amount of money deposited to the credit of the state highway

15-54    fund under Section 226.009.

15-55          Sec. 226.003.  INSTALLATION, OPERATION, AND MAINTENANCE OF

15-56    CALL BOX SYSTEM.  (a)  The department shall provide for the

15-57    installment, operation, and maintenance of a system of emergency

15-58    telephone call boxes along those highways in this state that are

15-59    part of the designated state highway system.

15-60          (b)  The system must:

15-61                (1)  be designed to enable users of those highways to

15-62    request emergency and nonemergency response services; and

15-63                (2)  include:

15-64                      (A)  wireless telecommunications services; and

15-65                      (B)  one or more motorist assistant answering

15-66    centers; and

15-67                (3)  be capable of performing compatible Intelligent

15-68    Transportation Systems (ITS) functions.

15-69          (c)  To minimize call processing loads in public safety

 16-1    answering points established under Chapter 771 or 772, Health and

 16-2    Safety Code, the department shall, to the extent practicable,

 16-3    contract with a private entity to perform the functions of a

 16-4    motorist assistance answering center under Subsection (b)(2)(B).

 16-5          Sec. 226.004.  LOCATION OF AND DISTANCE BETWEEN CALL BOXES.

 16-6    The location of the emergency call boxes shall be determined by the

 16-7    department in accordance with the design specifications of the

 16-8    system.

 16-9          Sec. 226.005.  EMERGENCY TELEPHONE CALL BOX SYSTEM ADVISORY

16-10    COMMITTEE.  (a)  There is created an emergency telephone call box

16-11    system advisory committee.  The committee is composed of the

16-12    executive officers, or the representatives of the executive

16-13    officers, of:

16-14                (1)  the department;

16-15                (2)  the Advisory Commission on State Emergency

16-16    Communications;

16-17                (3)  the General Services Commission;

16-18                (4)  the Texas Department of Health; and

16-19                (5)  the Department of Public Safety.

16-20          (b)  Except for the authority provided by Section 226.006,

16-21    the committee shall:

16-22                (1)  advise and assist in:

16-23                      (A)  the design, operation, and maintenance of

16-24    the system; and

16-25                      (B)  the development of specifications for each

16-26    contract to be awarded under this chapter.

16-27          Sec. 226.006.  OVERSIGHT BY ADVISORY COMMISSION ON STATE

16-28    EMERGENCY COMMUNICATIONS.  (a)  The Advisory Commission on State

16-29    Emergency Communications shall:

16-30                (1)  provide technical and management oversight to

16-31    support the proper routing of a call made to an emergency response

16-32    services provider from an emergency telephone call box and any

16-33    emergency response to that call; and

16-34                (2)  coordinate the operation and maintenance of the

16-35    system through local councils of governments and 9-1-1 districts.

16-36          (b)  If the advisory commission establishes standards for

16-37    system performance, the standards must be applicable throughout the

16-38    state.

16-39          Sec. 226.007.  CONTRACTS FOR IMPLEMENTATION AND INSTALLATION

16-40    OF CALL BOX SYSTEM.  (a)  The department shall:

16-41                (1)  award one or more contracts to implement the

16-42    system not later than June 1, 1998;

16-43                (2)  require that installation of the system begin not

16-44    later than September 1, 1998; and

16-45                (3)  implement the system in each area of the state

16-46    that has cellular telephone coverage.

16-47          (b)  A contract awarded under this chapter shall be awarded

16-48    by the department in the manner provided by Chapter 223.

16-49          (c)  The department may solicit proposals for and enter into

16-50    one or more lease-purchase agreements under this chapter.

16-51          Sec. 226.008.  INTERGOVERNMENTAL COOPERATION.  (a)  The

16-52    Advisory Commission on State Emergency Communications, agencies of

16-53    this state, and each county and municipality in this state shall

16-54    cooperate in the design, establishment, operation, and maintenance

16-55    of the emergency telephone call box system.

16-56          (b)  Local government authorities shall support statewide

16-57    public relations efforts with local media.

16-58          (c)  Local government authorities that exercise local control

16-59    over emergency telephone call boxes may contract for services with

16-60    cellular communication service providers.

16-61          Sec. 226.009.  FEE; OTHER REVENUE.  (a)  In this section,

16-62    "insurer" and "motor vehicle years of insurance" have the meanings

16-63    assigned those terms by Section 10(a), Article 4413(37), Revised

16-64    Statutes.

16-65          (b)  Not later than March 1 of each year, each insurer shall

16-66    pay to the comptroller a fee in an amount equal to $1 multiplied by

16-67    the total number of motor vehicle years of insurance for insurance

16-68    policies delivered, issued for delivery, or renewed by the insurer

16-69    during the preceding calendar year.

 17-1          (c)  The fee imposed by this section is in addition to any

 17-2    other fee or tax imposed by law on an insurer.

 17-3          (d)  The fee imposed by this section shall not be reflected

 17-4    as an additional line item on the insured's invoice.

 17-5          (e)  The comptroller shall notify the Texas Department of

 17-6    Insurance of each insurer that fails to pay the fee imposed by this

 17-7    section.  The department of insurance may revoke the certificate of

 17-8    authority of an insurer who fails to pay the fee.

 17-9          (f)  Each fee under this section that is received by the

17-10    comptroller shall be deposited to the credit of a separate account

17-11    in the state highway fund.  Money in the account, including any

17-12    interest accrued, may be used only for the purpose of implementing,

17-13    operating, maintaining, upgrading, or administering the emergency

17-14    telephone call box system established under this chapter.

17-15          (g)  If the department, the emergency telephone call box

17-16    system technical committee, the Advisory Commission on State

17-17    Emergency Communications, or another agency or department of this

17-18    state derives any revenue from the operation or maintenance of the

17-19    emergency telephone call box system, the revenue must be sent to

17-20    the comptroller for deposit in the separate account as provided by

17-21    Subsection (f).

17-22          (h)  Section 403.095, Government Code, does not apply to

17-23    money deposited to the credit of the state highway fund under this

17-24    section.

17-25          Sec. 226.010.  ANNUAL REPORTS.  (a)  Not later than November

17-26    1 of each year, the department shall file with the lieutenant

17-27    governor, the speaker of the house of representatives, and the

17-28    Legislative Budget Board a report on the activities under this

17-29    chapter during the preceding fiscal year.

17-30          (b)  The report may include the department's recommendations

17-31    for action by the legislature.

17-32          Sec. 226.011.  APPLICATION OF SUNSET ACT.  The emergency

17-33    telephone call box system and the provisions of this chapter are

17-34    subject to Chapter 325, Government Code (Texas Sunset Act).  Unless

17-35    continued in existence as provided by that chapter, the advisory

17-36    committee is abolished and this chapter expires on September 1,

17-37    2007.

17-38          SECTION 1.33.  Subsection (b), Section 203.051,

17-39    Transportation Code, is amended to read as follows:

17-40          (b)  Chapter 21, Property Code, applies to an acquisition by

17-41    eminent domain of any property for a state or federal highway.  A

17-42    "state or federal highway," for purposes of this section shall mean

17-43    any highway, road, or street that is (i) on the national highway

17-44    system or the state highway system, or (ii) owned by a political

17-45    subdivision or a municipality of the state and is funded, or is to

17-46    be funded, in whole or in part, with federal or state funds.

17-47                (1)  If an entire tract or parcel of real property is

17-48    condemned, the amount of compensation to which a property owner is

17-49    entitled shall be based on the market value of that property as of

17-50    the date of taking, except as provided by Subdivision (3).

17-51                (2)  If less than the entire tract or parcel of real

17-52    property is condemned and the property owner seeks to recover

17-53    damages to the remaining property caused by the condemnation, the

17-54    total amount of compensation both for the property condemned and

17-55    any damages to the remaining property shall be based on the

17-56    difference in the market value of the entire property immediately

17-57    before the taking and the market value of the remaining property

17-58    immediately after the taking, considering any benefits or injuries

17-59    that the construction and operation of the condemnor's project may

17-60    have on the remaining property's market value.

17-61                (3)  Any increase or decrease in the market value of an

17-62    entire tract or parcel of real property caused by the condemnor's

17-63    proposed project before the taking shall be disregarded in

17-64    estimating the market value of that property before the taking.

17-65    However, any increase or decrease in the market value of any

17-66    remaining property caused by the condemnor's proposed project after

17-67    the taking shall be considered in estimating the market value of

17-68    that property after the taking.

17-69                (4)  The estimation of the market value of property

 18-1    taken, and the remaining property if only part of an entire tract

 18-2    or parcel of real property is taken, shall include consideration of

 18-3    all factors considered in the marketplace that may affect the

 18-4    property's market value including, but not limited to, the

 18-5    following characteristics that affect a property's location:

 18-6                      (A)  vehicular and pedestrian access to and from

 18-7    and on and off the property;

 18-8                      (B)  traffic circulation and count in and around

 18-9    the property;

18-10                      (C)  visibility and appearance of and from the

18-11    property;

18-12                      (D)  productivity and convenience of use of the

18-13    property, including its highest and best use; and

18-14                      (E)  the property's access to utilities and

18-15    drainage.

18-16                (5)  The effect that the condemnation may have on any

18-17    of the market value characteristics considered within Subdivision

18-18    (4) shall be considered in estimating the market value of any

18-19    remainder property regardless of whether some or all other

18-20    properties in the neighborhood may be similarly impacted by the

18-21    condemnation.

18-22                (6)  If the property condemned is owned by the public

18-23    entity or other person organized and operated on a nonprofit basis,

18-24    the compensation measure shall be not less than the cost of

18-25    financial replacement if the property is devoted to and is needed

18-26    by the owner in good faith to perform a public function or to

18-27    render nonprofit educational, charitable or eleemosynary services.

18-28                      ARTICLE 2.  OUTDOOR ADVERTISING

18-29          SECTION 2.01.  Section 391.065, Transportation Code, is

18-30    amended by adding Subsection (c) to read as follows:

18-31          (c)  The commission may not adopt a rule under this chapter

18-32    that restricts competitive bidding or advertising by the holder of

18-33    a license issued under this chapter other than a rule to prohibit

18-34    false, misleading, or deceptive practices.  The limitation provided

18-35    by this section applies only to rules relating to the occupation of

18-36    outdoor advertiser and does not affect the commission's power to

18-37    regulate the orderly and effective display of outdoor advertising

18-38    under this chapter.  A rule to prohibit false, misleading, or

18-39    deceptive practices may not:

18-40                (1)  restrict the use of:

18-41                      (A)  any legal medium for an advertisement;

18-42                      (B)  the license holder's advertisement under a

18-43    trade name; or

18-44                      (C)  the license holder's personal appearance or

18-45    voice in an advertisement, if the license holder is an individual;

18-46    or

18-47                (2)  relate to the size or duration of an advertisement

18-48    by the license holder.

18-49          SECTION 2.02.  Section 391.062, Transportation Code, is

18-50    amended by adding Subsection (c) to read as follows:

18-51          (c)  At least 30 days before the date on which a person's

18-52    license expires, the commission shall notify the person of the

18-53    impending expiration.  The notice must be in writing and sent to

18-54    the person's last known address according to the records of the

18-55    commission.

18-56          SECTION 2.03.  Subsection (a), Section 391.066,

18-57    Transportation Code, is amended to read as follows:

18-58          (a)  The commission may revoke or suspend a license issued

18-59    under this subchapter or place on probation a license holder whose

18-60    license is suspended if the license holder violates this chapter or

18-61    a rule adopted under this chapter.  If the suspension of the

18-62    license is probated, the department may require the license holder

18-63    to report regularly to the commission on any matter that is the

18-64    basis of the probation.

18-65              ARTICLE 3.  TEXAS MOTOR VEHICLE COMMISSION CODE

18-66          SECTION 3.01.  Section 2.02A, Texas Motor Vehicle Commission

18-67    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

18-68    to read as follows:

18-69          Sec. 2.02A.  APPOINTMENTS.  Appointments to the Commission

 19-1    shall be made without [with due] regard to [for] the race, color,

 19-2    disability, sex, religion, or [ethnicity, gender, and] national

 19-3    origin of the appointees.

 19-4          SECTION 3.02.  Subchapter B, Texas Motor Vehicle Commission

 19-5    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

 19-6    by adding Section 2.03A to read as follows:

 19-7          Sec. 2.03A.  TRAINING ON DEPARTMENT AND CERTAIN LAWS RELATING

 19-8    TO DEPARTMENT.  (a)  To be eligible to take office as a member of

 19-9    the Commission, a person appointed to the Commission must complete

19-10    at least one course of a training program that complies with this

19-11    section.

19-12          (b)  The training program must provide information to the

19-13    person regarding:

19-14                (1)  this Act;

19-15                (2)  the programs operated by the department;

19-16                (3)  the role and functions of the department;

19-17                (4)  the rules of the department with an emphasis on

19-18    the rules that relate to disciplinary and investigatory authority;

19-19                (5)  the current budget for the department;

19-20                (6)  the results of the most recent formal audit of the

19-21    department;

19-22                (7)  the requirements of the:

19-23                      (A)  open meetings law, Chapter 551, Government

19-24    Code;

19-25                      (B)  open records law, Chapter 552, Government

19-26    Code; and

19-27                      (C)  administrative procedure law, Chapter 2001,

19-28    Government Code;

19-29                (8)  the requirements of the conflict of interest laws

19-30    and other laws relating to public officials; and

19-31                (9)  any applicable ethics policies adopted by the

19-32    Commission or the Texas Ethics Commission.

19-33          (c)  A person appointed to the Commission is entitled to

19-34    reimbursement for travel expenses incurred in attending the

19-35    training program, as provided by the General Appropriations Act and

19-36    as if the person were a member of the Commission.

19-37          SECTION 3.03.  Subsection (b), Section 2.08, Texas Motor

19-38    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

19-39    Statutes), is amended to read as follows:

19-40          (b)  The Commission is subject to Chapters 551 and 2001,

19-41    Government Code [the open meetings law, Chapter 271, Acts of the

19-42    60th Legislature, Regular Session, 1967, as amended (Article

19-43    6252-17, Vernon's Texas Civil Statutes)].

19-44          SECTION 3.04.  Subsection (c), Section 2.08A, Texas Motor

19-45    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

19-46    Statutes), is amended to read as follows:

19-47          (c)  If the Executive Director has knowledge that a potential

19-48    ground for removal exists, the Executive Director shall notify the

19-49    Chairman of the Commission of the ground.  The Chairman shall then

19-50    notify the Governor and the Attorney General that a potential

19-51    ground for removal exists.  If the potential ground for removal

19-52    relates to the Chairman of the Commission, the Executive Director

19-53    shall notify the Vice-chairman of the Commission, who shall notify

19-54    the Governor and the Attorney General that a potential ground for

19-55    removal exists.

19-56          SECTION 3.05.  Subsection (e), Section 2.09, Texas Motor

19-57    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

19-58    Statutes), is amended to read as follows:

19-59          (e)  The Executive Director shall appoint and employ such

19-60    Commission staff as are necessary to carry out the duties and

19-61    functions of the Executive Director and the Commission under this

19-62    Act.  The Commission shall develop and implement policies that

19-63    clearly separate the policy-making [define the respective]

19-64    responsibilities of the Commission and the management

19-65    responsibilities of the Executive Director and staff of the

19-66    Commission.

19-67          SECTION 3.06.  Subsection (b), Section 2.10, Texas Motor

19-68    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

19-69    Statutes), is amended to read as follows:

 20-1          (b)  The Commission shall file annually with the Governor and

 20-2    the presiding officer of each house of the legislature a complete

 20-3    and detailed written report accounting for all funds received and

 20-4    disbursed by the Commission during the preceding fiscal year.  The

 20-5    annual report must comply with each reporting requirement

 20-6    applicable to financial reporting [be in the form and reported in

 20-7    the time] provided by the General Appropriations Act.

 20-8          SECTION 3.07.  Section 2.12, Texas Motor Vehicle Commission

 20-9    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

20-10    to read as follows:

20-11          Sec. 2.12.  COMPLAINTS.  (a)  The Commission shall:

20-12                (1)  keep an information file about each complaint

20-13    filed with the Commission that the Commission has authority to

20-14    resolve; and

20-15                (2)  provide the person who filed the complaint, and

20-16    each person or entity that is the subject of the complaint,

20-17    information about the Commission's policies and procedures relating

20-18    to complaint investigation and resolution.

20-19          (b)  If a written complaint is filed with the Commission that

20-20    the Commission has authority to resolve, the Commission, at least

20-21    quarterly and until final disposition of the complaint, shall

20-22    notify the parties to the complaint of the status of the complaint

20-23    unless the notice would jeopardize an ongoing Commission

20-24    investigation.

20-25          (c)  With regard to each complaint filed with the Commission,

20-26    the Commission shall keep the following information:

20-27                (1)  the date the complaint is filed;

20-28                (2)  the name of the person filing the complaint;

20-29                (3)  the subject matter of the complaint;

20-30                (4)  a record of each person contacted in relation to

20-31    the complaint;

20-32                (5)  a summary of the results of the review or

20-33    investigation of the complaint; and

20-34                (6)  if the Commission takes no action on the

20-35    complaint, an explanation of the reasons that no action was taken.

20-36          SECTION 3.08.  Subsections (a), (b), and (d), Section 2.13,

20-37    Texas Motor Vehicle Commission Code (Article 4413(36), Vernon's

20-38    Texas Civil Statutes), are amended to read as follows:

20-39          (a)  The Executive Director or his designee shall develop an

20-40    intraagency career ladder program that addresses opportunities for

20-41    mobility and advancement of employees in the Commission.  The

20-42    program shall require intraagency postings of all [nonentry level]

20-43    positions concurrently with any public posting.

20-44          (b)  The Executive Director or his designee shall develop a

20-45    system of annual performance evaluations that are based on

20-46    documented employee performance.  All merit pay for Commission

20-47    employees must be based on the system established under this

20-48    subsection.

20-49          (d)  The Executive Director or his designee shall prepare and

20-50    maintain a written policy statement to assure implementation of a

20-51    program of equal employment opportunity under which all personnel

20-52    transactions are made without regard to race, color, disability

20-53    [handicap], sex, religion, age, or national origin.  The policy

20-54    statement must include:

20-55                (1)  personnel policies, including policies relating to

20-56    recruitment, evaluation, selection, appointment, training, and

20-57    promotion of personnel that comply with Chapter 21, Labor Code;

20-58                (2)  a comprehensive analysis of the Commission work

20-59    force that meets federal and state guidelines;

20-60                (3)  procedures by which a determination can be made of

20-61    significant underuse in the Commission work force of all persons

20-62    for whom federal or state guidelines encourage a more equitable

20-63    balance; and

20-64                (4)  reasonable methods to appropriately address those

20-65    areas of significant underuse.

20-66          A policy statement prepared under this subsection must cover

20-67    an annual period, be updated at least annually, be reviewed by the

20-68    Texas Commission on Human Rights for compliance with Subdivision

20-69    (1) of this subsection, and be filed with the Governor's office.

 21-1          The Governor's office shall deliver a biennial report to the

 21-2    legislature based on the information received under this

 21-3    subsection.  The report may be made separately or as a part of

 21-4    other biennial reports made to the legislature.

 21-5          SECTION 3.09.  Section 4.01B, Texas Motor Vehicle Commission

 21-6    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

 21-7    to read as follows:

 21-8          Sec. 4.01B.  [NOTICE OF] LICENSE EXPIRATION.  (a)  The

 21-9    Commission by rule may implement a system under which licenses

21-10    expire on various dates during the year.

21-11          (b)  The Commission shall notify each person licensed under

21-12    this Act of the date of license expiration and the amount of the

21-13    fee required for license renewal.  The notice shall be mailed at

21-14    least thirty days before the date of license expiration.

21-15          (c)  For a year in which a license expiration date is

21-16    changed, the fee for the license shall be prorated so that the

21-17    holder of the license pays only that portion of the license fee

21-18    that is allocable to the number of months during which the license

21-19    is valid.  On renewal of the license on the new expiration date,

21-20    the entire license renewal fee is payable.

21-21                        ARTICLE 4.  MOTOR CARRIERS

21-22          SECTION 4.01.  Subsection (i), Section 3, Article 6675c,

21-23    Revised Statutes, is amended to read as follows:

21-24          (i)  A registration issued under this article is valid for

21-25    one year.  The department may adopt a system under which

21-26    registrations expire at different times during the year.  At least

21-27    30 days before the date on which a motor carrier's registration

21-28    expires, the department shall notify the carrier of the impending

21-29    expiration.  The notice must be in writing and sent to the motor

21-30    carrier's last known address according to the records of the

21-31    department.  A motor carrier may renew a registration under this

21-32    article by:

21-33                (1)  supplementing the application with any new

21-34    information required under Subsection (g) of this section;

21-35                (2)  paying a $10 fee for each vehicle requiring

21-36    registration the carrier operates; and

21-37                (3)  showing the department evidence of continuing

21-38    insurance or financial responsibility in an amount at least equal

21-39    to the amount set by the department under Section 4(a) of this

21-40    article.

21-41          SECTION 4.02.  Section 7, Article 6675c, Revised Statutes, is

21-42    amended to read as follows:

21-43          Sec. 7.  Suspension and revocation of registration.  (a)  The

21-44    department may suspend or revoke a registration issued under this

21-45    article or place on probation a motor carrier whose registration is

21-46    suspended if:

21-47                (1)  a motor carrier fails to maintain insurance as

21-48    required by Section 4(a) or (b) of this article;

21-49                (2)  a motor carrier fails to keep proof of insurance

21-50    in the cab of each vehicle as required by Section 4(e) of this

21-51    article;

21-52                (3)  a motor carrier fails to register a vehicle

21-53    requiring registration; or

21-54                (4)  a motor carrier knowingly provides false

21-55    information on any form filed with the department under this

21-56    section.

21-57          (b)  The Department of Public Safety may request that the

21-58    department suspend or revoke a registration issued under this

21-59    article or place on probation a motor carrier whose registration is

21-60    suspended if a motor carrier:

21-61                (1)  has an unsatisfactory safety rating under 49

21-62    C.F.R. Part 385; or

21-63                (2)  has multiple violations of a provision of Article

21-64    6675d, Revised Statutes, a rule adopted under that article, or the

21-65    Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's

21-66    Texas Civil Statutes).

21-67          (c)  Except as provided by Subsection (d) of this section, a

21-68    suspension or revocation or the imposition of probation made under

21-69    Subsection (a) or (b) of this section is a contested case under

 22-1    Chapter 2001, Government Code.

 22-2          (d)  The department may suspend or revoke a registration

 22-3    issued under this article or place on probation a motor carrier

 22-4    whose registration is suspended without a hearing under Chapter

 22-5    2001, Government Code, if:

 22-6                (1)  the department provides notice to the motor

 22-7    carrier of:

 22-8                      (A)  the proposed suspension or revocation; and

 22-9                      (B)  the right of the carrier to request a

22-10    hearing under Chapter 2001, Government Code; and

22-11                (2)  the motor carrier fails to provide the department

22-12    with a written request for a hearing within 10 days after the date

22-13    the carrier receives the notice described in Subdivision (1) of

22-14    this subsection.

22-15          (e)  If the suspension of a motor carrier's registration is

22-16    probated, the department may require the carrier to report

22-17    regularly to the department on any matter that is the basis of the

22-18    probation.

22-19          SECTION 4.03.  Section 8, Article 6675c, Revised Statutes, is

22-20    amended by adding Subsection (g) to read as follows:

22-21          (g)  The department may not by rule restrict competitive

22-22    bidding or advertising by a motor carrier except to prohibit false,

22-23    misleading, or deceptive practices.  A rule to prohibit false,

22-24    misleading, or deceptive practices may not:

22-25                (1)  restrict the use of:

22-26                      (A)  any medium for an advertisement;

22-27                      (B)  the motor carrier's advertisement under a

22-28    trade name; or

22-29                      (C)  the motor carrier's personal appearance or

22-30    voice in an advertisement, if the motor carrier is an individual;

22-31    or

22-32                (2)  relate to the size or duration of an advertisement

22-33    by the motor carrier.

22-34                    ARTICLE 5.  SALVAGE VEHICLE DEALERS

22-35          SECTION 5.01.  Section 1.02, Article 6687-1a, Revised

22-36    Statutes, is amended by adding Subsection (c) to read as follows:

22-37          (c)  The commission may not adopt a rule under this article

22-38    that restricts competitive bidding or advertising by a person who

22-39    holds a license issued under this article other than a rule to

22-40    prohibit false, misleading, or deceptive practices.  A rule to

22-41    prohibit false, misleading, or deceptive practices may not:

22-42                (1)  restrict the use of:

22-43                      (A)  any medium for an advertisement;

22-44                      (B)  the license holder's advertisement under a

22-45    trade name; or

22-46                      (C)  the license holder's personal appearance or

22-47    voice in an advertisement, if the license holder is an individual;

22-48    or

22-49                (2)  relate to the size or duration of an advertisement

22-50    by the license holder.

22-51          SECTION 5.02.  Section 2.07, Article 6687-1a, Revised

22-52    Statutes, is amended to read as follows:

22-53          Sec. 2.07.  License Renewal.  (a)  A license issued under

22-54    this article expires on the first anniversary of the date of

22-55    issuance and may be renewed annually on or before the expiration

22-56    date on payment of the required renewal fee.

22-57          (b)  A person who is otherwise eligible to renew a license

22-58    may renew an unexpired license by paying to the department before

22-59    the expiration date of the license the required renewal fee.  A

22-60    person whose license has expired may not engage in the activities

22-61    that require a license until the license has been renewed under the

22-62    provisions of this section.

22-63          (c)  If a person's license has been expired for 90 days or

22-64    less, the person may renew the license by paying to the department

22-65    one and one-half times the required renewal fee.

22-66          (d)  If a person's license has been expired for longer than

22-67    90 days but less than one year, the person may renew the license by

22-68    paying to the department two times the required renewal fee.

22-69          (e)  If a person's license has been expired for one year or

 23-1    longer, the person may not renew the license.  The person may

 23-2    obtain a new license by complying with the requirements and

 23-3    procedures for obtaining an original license.  If the person was

 23-4    licensed in this state, moved to another state, and has been doing

 23-5    business in the other state for the two years preceding

 23-6    application, the person may renew an expired license.  The person

 23-7    must pay to the department a fee that is equal to two times the

 23-8    required renewal fee for the license.

 23-9          (f)  At least 30 days before the date on which a person's

23-10    license expires, the department shall notify the person of the

23-11    impending expiration.  The notice must be in writing and sent to

23-12    the person's last known address according to the records of the

23-13    department.  [If a license holder fails to renew the license before

23-14    its expiration date, the license holder may renew the license on

23-15    payment of the renewal fee and a late fee set by the commission.

23-16    If the license is not renewed before the first anniversary of the

23-17    date on which the license expired, the license holder must apply

23-18    for a new license in the same manner as an applicant for an initial

23-19    license.]

23-20          SECTION 5.03.  Subsection (b), Section 4.01, Article 6687-1a,

23-21    Revised Statutes, is amended to read as follows:

23-22          (b)  The commission shall adopt rules establishing the

23-23    grounds for the denial, suspension, revocation, or reinstatement of

23-24    a license and establishing procedures for disciplinary actions.  A

23-25    rule adopted under this subsection may not conflict with a rule

23-26    adopted by the State Office of Administrative Hearings.

23-27                 ARTICLE 6.  VEHICLE STORAGE FACILITY ACT

23-28          SECTION 6.01.  Section 4, Vehicle Storage Facility Act

23-29    (Article 6687-9a, Revised Statutes), is amended by adding

23-30    Subsection (d) to read as follows:

23-31          (d)  The commission may not adopt a rule under this Act that

23-32    restricts competitive bidding or advertising by a person who holds

23-33    a license issued under this Act other than a rule to prohibit

23-34    false, misleading, or deceptive practices.  A rule to prohibit

23-35    false, misleading, or deceptive practices may not:

23-36                (1)  restrict the use of:

23-37                      (A)  any medium for an advertisement;

23-38                      (B)  the license holder's advertisement under a

23-39    trade name; or

23-40                      (C)  the license holder's personal appearance or

23-41    voice in an advertisement, if the license holder is an individual;

23-42    or

23-43                (2)  relate to the size or duration of an advertisement

23-44    by the license holder.

23-45          SECTION 6.02.  Subsection (a), Section 9, Vehicle Storage

23-46    Facility Act (Article 6687-9a, Revised Statutes), is amended to

23-47    read as follows:

23-48          (a)  A license issued under this article is valid for the

23-49    period set by the commission.  At least 30 days before the date on

23-50    which a person's license expires, the commission shall notify the

23-51    person of the impending expiration.  The notice must be in writing

23-52    and sent to the person's last known address according to the

23-53    records of the commission.

23-54          SECTION 6.03.  Section 10, Vehicle Storage Facility Act

23-55    (Article 6687-9a, Revised Statutes), is amended by adding

23-56    Subsections (e) and (f) to read as follows:

23-57          (e)  If the commission places a person on probation under

23-58    this section, the commission may require the person to report

23-59    regularly to the commission on any matter that is the basis of the

23-60    probation.

23-61          (f)  If the commission proposes to take an action under

23-62    Subsection (a) or (b) of this section, the person is entitled to a

23-63    hearing conducted by the State Office of Administrative Hearings.

23-64    Proceedings for a disciplinary action are governed by the

23-65    administrative procedure law, Chapter 2001, Government Code.  Rules

23-66    of practice adopted by the commission under Section 2001.004,

23-67    Government Code, applicable to the proceedings for a disciplinary

23-68    action may not conflict with rules adopted by the State Office of

23-69    Administrative Hearings.

 24-1                           ARTICLE 7.  TURNPIKES

 24-2          SECTION 7.01.  Chapter 222, Transportation Code, is amended

 24-3    by adding Subchapter E to read as follows:

 24-4                      SUBCHAPTER E.  TOLL FACILITIES

 24-5          Sec. 222.101.  EXPENDITURE OF MONEY.  The department may

 24-6    spend money from any source for the construction, maintenance, and

 24-7    operation of toll facilities.

 24-8          Sec. 222.102.  TEMPORARY TOLL PROJECTS.  The department may

 24-9    recover the cost of a preventative maintenance or rehabilitation

24-10    project on a nontoll segment of the state highway system by

24-11    temporarily imposing a toll charge.

24-12          Sec. 222.103.  COST PARTICIPATION.  (a)  The department may

24-13    participate in the cost of the construction, maintenance, or

24-14    operation of a toll facility of a public or private entity on terms

24-15    and conditions established by the commission, including

24-16    requirements for repayment.

24-17          (b)  An entity receiving cost participation from the

24-18    department under this section is a successor agency to the Texas

24-19    Turnpike Authority for the purposes of Section 52-b, Article III,

24-20    Texas Constitution.

24-21          SECTION 7.02.  Section 362.055, Transportation Code, is

24-22    amended to read as follows:

24-23          Sec. 362.055.  EXCEPTION.  This subchapter does not apply to:

24-24                (1)  a county that has a population of more than 1.5

24-25    million; [or]

24-26                (2)  a local government corporation created under

24-27    Chapter 431 by a county that has a population of more than 1.5

24-28    million; or

24-29                (3)  a regional tollway authority created under Chapter

24-30    366.

24-31          SECTION 7.03.  Section 361.001, Transportation Code, is

24-32    amended to read as follows:

24-33          Sec. 361.001.  DEFINITIONS.  In this chapter:

24-34                (1)  "Authority" means the Texas Turnpike Authority

24-35    division of the Texas Department of Transportation [and includes

24-36    the entity that succeeds to the principal functions of the

24-37    authority or to whom by law the powers of the authority are given].

24-38                (2)  "Board" means the board of directors of the

24-39    authority.

24-40                (3)  ["Highway" means a road, highway, farm-to-market

24-41    road, or street under the supervision of the state or a political

24-42    subdivision of the state.]

24-43                [(4)]  "Owner" includes a person having title to or an

24-44    interest in any property, rights, easements, and interests

24-45    authorized to be acquired under this chapter.

24-46                (4) [(5)]  "Turnpike project" means a toll [an express]

24-47    highway constructed, maintained, or operated under this chapter as

24-48    part of the state highway system and any improvement, extension, or

24-49    expansion to the highway and includes:

24-50                      (A)  a facility to relieve traffic congestion and

24-51    promote safety;

24-52                      (B)  a bridge, tunnel, overpass, underpass,

24-53    interchange, entrance plaza, approach, toll house, or service

24-54    station;

24-55                      (C)  an administration, storage, or other

24-56    building the authority considers necessary to operate the project;

24-57    and

24-58                      (D)  property rights, easements, and interests

24-59    the authority acquires to construct or operate the project.

24-60                (5)  "Regional tollway authority" means a regional

24-61    tollway authority created under Chapter 366.

24-62          SECTION 7.04.  Section 361.031, Transportation Code, is

24-63    amended to read as follows:

24-64          Sec. 361.031.  TEXAS TURNPIKE AUTHORITY.  (a)  The Texas

24-65    Turnpike Authority is a division of the Texas Department of

24-66    Transportation that has full authority to exercise all powers

24-67    granted to it under this chapter.  Powers granted to the department

24-68    under this chapter and Chapter 362 to study, design, construct,

24-69    operate, expand, enlarge, or extend a turnpike project as a part of

 25-1    the state highway system shall be exercised by the department

 25-2    acting by and through the authority [state agency].

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

 25-4    of the department with the consent of the department, or procure

 25-5    from outside service providers any portion of the services the

 25-6    authority requires for:

 25-7                (1)  right-of-way acquisition;

 25-8                (2)  roadway finance, design, and construction;

 25-9                (3)  environmental affairs; or

25-10                (4)  legal services.

25-11          (c)  With the approval of the commission, the authority may

25-12    perform, procure from other divisions of the department with the

25-13    consent of the department, or procure from outside service

25-14    providers any portion of the services the authority requires for

25-15    roadway maintenance or traffic operations.

25-16          (d)  To perform its functions under this chapter, the

25-17    authority may use the facilities and personnel of the department in

25-18    the same manner as other divisions of the department.

25-19          (e)  If the comptroller assigns numbers to state agencies for

25-20    accounting purposes, the comptroller shall assign a separate agency

25-21    number to the authority [The authority shall locate offices in

25-22    Austin, Texas, on or before September 1, 1997].

25-23          (f) [(c)]  The exercise by the authority of the powers

25-24    conferred by this chapter in the construction, operation, and

25-25    maintenance of a turnpike project is:

25-26                (1)  in all respects for the benefit of the people of

25-27    this state, for the increase of their commerce and prosperity, and

25-28    for the improvement of their health and living conditions and

25-29    public safety; and

25-30                (2)  an essential governmental function of the state.

25-31          SECTION 7.05.  Subsection (a), Section 361.032,

25-32    Transportation Code, is amended to read as follows:

25-33          (a)  The board is composed of seven [12] directors.  The

25-34    governor, with the advice and consent of the senate, shall appoint

25-35    six [nine] directors who represent the public.  The chair of the

25-36    [Each] commission or a member of the commission designated by the

25-37    chair serves as an ex officio board member.

25-38          SECTION 7.06.  Subsection (a), Section 361.033,

25-39    Transportation Code, is amended to read as follows:

25-40          (a)  A person is not eligible for appointment to the board if

25-41    the person or the person's spouse:

25-42                (1)  is registered, certified, or licensed by an

25-43    occupational regulatory agency in the field of toll road

25-44    construction, maintenance, or operation;

25-45                (2)  is employed by or participates in the management

25-46    of a business entity or other organization regulated by the

25-47    commission, department, or authority or receiving funds from the

25-48    commission, department, or authority;

25-49                (3)  owns or controls, directly or indirectly, more

25-50    than a 10 percent interest in a business entity or other

25-51    organization regulated by or receiving funds from the commission,

25-52    department, or authority, other than compensation for acquisition

25-53    of turnpike right-of-way; or

25-54                (4)  uses or receives a substantial amount of tangible

25-55    goods, services, or funds from the commission, department, or

25-56    authority, other than compensation or reimbursement authorized by

25-57    law for board membership, attendance, or expenses or compensation

25-58    for acquisition of turnpike right-of-way.

25-59          SECTION 7.07.  Section 361.042, Transportation Code, is

25-60    amended to read as follows:

25-61          Sec. 361.042.  GENERAL POWERS AND DUTIES.  (a)  The board

25-62    [authority] shall:

25-63                (1)  on its own initiative or at the request of the

25-64    commission, consider, study, plan, and develop turnpike projects

25-65    under this chapter;

25-66                (2)  adopt rules [bylaws] for the regulation of its

25-67    affairs and the conduct of its business;

25-68                (3)  with the concurrence of the commission, employ an

25-69    administrative head, who serves at the pleasure of the board and

 26-1    who must be compensated on a level not lower than the level on

 26-2    which a deputy executive director of the department is compensated;

 26-3    and

 26-4                (4)  undertake such other duties as are delegated to it

 26-5    by the commission.

 26-6          (b)  The authority may:

 26-7                (1) [(2)  adopt an official seal;]

 26-8                [(3)]  construct, maintain, repair, and operate

 26-9    turnpike projects in this state;

26-10                (2) [(4)]  acquire, hold, and dispose of property in

26-11    the exercise of its powers and the performance of its duties under

26-12    this chapter;

26-13                (3)  with the approval of the governor and the

26-14    commission, [(5)] enter into contracts or operating agreements with

26-15    similar authorities or agencies of another state, including a state

26-16    of the United Mexican States;

26-17                (4) [(6)]  enter into contracts or agreements necessary

26-18    or incidental to its duties and powers under this chapter;

26-19                (5) [(7)]  employ consulting engineers, [attorneys,]

26-20    accountants, construction and financial experts, superintendents,

26-21    managers, and other employees and agents the authority considers

26-22    necessary and set their compensation;

26-23                (6)  employ attorneys to advance or defend legal

26-24    actions pertaining to the division's activities, notwithstanding

26-25    any other law to the contrary, including Section 402.0212,

26-26    Government Code;

26-27                (7) [(8)]  receive grants for the construction of a

26-28    turnpike project and receive contributions of money, property,

26-29    labor, or other things of value from any source to be used for the

26-30    purposes for which the grants or contributions are made;

26-31                (8) [(9)]  adopt and enforce rules, if the commission

26-32    concurs, not inconsistent with this chapter for the use of any

26-33    turnpike project; and

26-34                (9) [(10)]  do all things necessary or appropriate to

26-35    carry out the powers expressly granted by this chapter.

26-36          SECTION 7.08.  Section 361.055, Transportation Code, is

26-37    amended to read as follows:

26-38          Sec. 361.055.  SUCCESSOR AGENCY TO AUTHORITY.  The following

26-39    are considered successor agencies to the Texas Turnpike Authority

26-40    [authority] for purposes of Section 52-b, Article III, Texas

26-41    Constitution:

26-42                (1)  a county, municipality, or local government

26-43    corporation that leases, buys, operates, or otherwise receives a

26-44    turnpike project under Subchapter H;

26-45                (2)  a county with a population of more than 1.5

26-46    million that constructs a toll road, toll bridge, or turnpike

26-47    project;

26-48                (3)  a local government corporation serving a county

26-49    with a population of more than 1.5 million that constructs a toll

26-50    road, toll bridge, or turnpike project; [and]

26-51                (4)  an adjacent county in a joint turnpike authority

26-52    with a county with a population of more than 1.5 million that

26-53    constructs a toll road, toll bridge, or turnpike project;

26-54                (5)  the department; and

26-55                (6)  a public or private entity authorized to receive

26-56    funds from the department for the construction, maintenance, or

26-57    operation of toll projects.

26-58          SECTION 7.09.  Section 361.132, Transportation Code, is

26-59    amended to read as follows:

26-60          Sec. 361.132.  ACQUISITION OF PROPERTY.  (a)  The board

26-61    [authority] may acquire, in the name of the state, [authority]

26-62    public or private real property it determines necessary or

26-63    convenient for the construction, expansion, enlargement, extension,

26-64    improvement, or operation of a turnpike project or for otherwise

26-65    carrying out this chapter.

26-66          (b)  The real property the authority may acquire under this

26-67    subchapter includes:

26-68                (1)  public parks, playgrounds, or reservations;

26-69                (2)  parts of or rights in public parks, playgrounds,

 27-1    or reservations;

 27-2                (3)  rights-of-way;

 27-3                (4)  property rights, including:

 27-4                      (A)  a right of ingress or egress; and

 27-5                      (B)  a reservation right in real property that

 27-6    restricts or prohibits for not more than seven years the:

 27-7                            (i)  addition of a new improvement on the

 27-8    real property;

 27-9                            (ii)  addition to or modification of an

27-10    existing improvement on the real property; or

27-11                            (iii)  subdivision of the real property;

27-12                (5)  franchises;

27-13                (6)  easements; and

27-14                (7)  other interests in real property.

27-15          (c)  The board [authority] may acquire the real property by

27-16    any method, including purchase and condemnation.  The board

27-17    [authority] may purchase public or private real property on the

27-18    terms and at the price the board [authority] and the owner consider

27-19    reasonable.

27-20          (d)  Property necessary or convenient for the construction or

27-21    operation of a turnpike project under Subsection (a) includes an

27-22    interest in real property, a property right, or materials that the

27-23    authority determines are necessary or convenient to:

27-24                (1)  protect a turnpike project;

27-25                (2)  drain a turnpike project;

27-26                (3)  divert a stream, river, or other watercourse from

27-27    the right-of-way of a turnpike project;

27-28                (4)  store materials or equipment used in the

27-29    construction or maintenance of a turnpike project;

27-30                (5)  construct or operate a warehouse or other facility

27-31    used in connection with the construction, maintenance, or operation

27-32    of a turnpike project;

27-33                (6)  lay out, construct, or maintain a roadside park;

27-34                (7)  lay out, construct, or maintain a parking lot that

27-35    will contribute to the maximum use of a turnpike project with the

27-36    least possible congestion;

27-37                (8)  mitigate an adverse environmental effect that

27-38    directly results from the construction or maintenance of a turnpike

27-39    project; or

27-40                (9)  accomplish any other purpose related to the

27-41    location, construction, improvement, maintenance, beautification,

27-42    preservation, or operation of a turnpike project.

27-43          (e)  The authority shall comply with all relocation

27-44    assistance procedures applicable to the department in connection

27-45    with any displacement of owners or tenants as a consequence of the

27-46    authority's acquisition of real property under this chapter.

27-47          (f)  The authority may acquire timber, earth, stone, gravel,

27-48    or other materials as necessary to carry out a purpose under this

27-49    chapter.

27-50          SECTION 7.10.  Section 361.135, Transportation Code, is

27-51    amended to read as follows:

27-52          Sec. 361.135.  CONDEMNATION OF REAL PROPERTY.  (a)  The

27-53    board, with the concurrence of the commission, [authority] may

27-54    acquire public or private real property in the name of the state

27-55    [authority] by the exercise of the power of condemnation under the

27-56    laws applicable to the exercise of that power on property for

27-57    public use if:

27-58                (1)  the authority and the owner cannot agree on a

27-59    reasonable price for the property; or

27-60                (2)  the owner is legally incapacitated, absent,

27-61    unknown, or unable to convey title.

27-62          (b)  The board, with the concurrence of the commission, [To

27-63    the extent provided by Subsection (c), the authority] may condemn

27-64    real property that the authority determines is:

27-65                (1)  necessary or appropriate to construct or to

27-66    efficiently operate a turnpike project;

27-67                (2)  necessary to restore public or private property

27-68    damaged or destroyed; [or]

27-69                (3)  necessary for access, approach, and interchange

 28-1    roads;

 28-2                (4)  necessary for supplemental facilities of the

 28-3    authority; or

 28-4                (5)  necessary otherwise to carry out this chapter.

 28-5          (c)  [The authority may condemn real property necessary for

 28-6    access, approach, and interchange roads but may not condemn

 28-7    property:]

 28-8                [(1)  that is unnecessary for road and right-of-way

 28-9    purposes; or]

28-10                [(2)  that is for a supplemental facility for another

28-11    purpose.]

28-12          [(d)  The authority may construct a supplemental facility

28-13    only on real property the authority purchases.]

28-14          [(e)]  The court having jurisdiction of a condemnation

28-15    proceeding may:

28-16                (1)  make orders as are just to the authority and the

28-17    owners of the real property; and

28-18                (2)  require an undertaking or other security to secure

28-19    the owners against any loss or damage by reason of the board's

28-20    [authority's] failure to accept and pay for the real property.

28-21          (d) [(f)]  An undertaking or security under Subsection (c)(2)

28-22    [(e)(2)] or an act or obligation of the authority or the board does

28-23    not impose any liability on the state, [or] the authority, or the

28-24    board except liability that may be paid from the money authorized

28-25    by this chapter.

28-26          SECTION 7.11.  Section 361.136, Transportation Code, is

28-27    amended to read as follows:

28-28          Sec. 361.136.  SEVERANCE OF REAL PROPERTY.  (a)  If a

28-29    turnpike project severs an owner's real property, the authority

28-30    shall pay:

28-31                (1)  the value of the property acquired; and

28-32                (2)  the damages to the remainder of the owner's

28-33    property caused by the severance, including damages caused by the

28-34    inaccessibility of one tract from the other.

28-35          (b)  [The authority shall provide and maintain without charge

28-36    a passageway over or under the turnpike project for the owner of

28-37    the severed real property and the owner's employees and

28-38    representatives.  The authority is not required to furnish a

28-39    passageway if the owner waives the requirement or the original

28-40    tract involved is less than 80 acres.]

28-41          [(c)]  The authority may negotiate for and purchase the

28-42    severed real property or either part of the severed real property

28-43    if the authority and the owner agree on terms for the purchase.

28-44    [The authority shall sell and dispose of severed real property

28-45    within two years after the date of acquisition.]

28-46          SECTION 7.12.  Subchapter D, Chapter 361, Transportation

28-47    Code, is amended by adding Section 361.142 to read as follows:

28-48          Sec. 361.142.  COVENANTS, CONDITIONS, RESTRICTIONS, OR

28-49    LIMITATIONS.  Covenants, conditions, restrictions, or limitations

28-50    affecting property acquired in any manner by the authority are not

28-51    binding against the authority and do not impair the authority's

28-52    ability to use the property for a purpose authorized by this

28-53    chapter.  The beneficiaries of the covenants, conditions,

28-54    restrictions, or limitations are not entitled to enjoin the

28-55    authority from using the property for a purpose authorized under

28-56    this chapter, but this section does not affect the right of a

28-57    person to seek damages to the person's property under Section 17,

28-58    Article I, Texas Constitution.

28-59          SECTION 7.13.  Section 361.180, Transportation Code, is

28-60    amended to read as follows:

28-61          Sec. 361.180.  TOLLS ON CONVERTED HIGHWAYS [PROHIBITION ON

28-62    TOLLS ON EXISTING FREE HIGHWAYS].  If converted to a toll facility

28-63    under Section 222.102 or 362.0041, the commission [The authority]

28-64    may impose a toll for transit over an existing free public highway

28-65    [only if such highway is transferred to the authority by the

28-66    commission under Section 362.0041].

28-67          SECTION 7.14.  Subsection (b), Section 361.184,

28-68    Transportation Code, is amended to read as follows:

28-69          (b)  The board [authority] may transfer, or direct the

 29-1    authority to transfer, into the project revolving fund money from

 29-2    any permissible source, including:

 29-3                (1)  money from a surplus fund established for a

 29-4    turnpike project if the remainder of the surplus fund is not less

 29-5    than any minimum amount required by the trust agreement to be

 29-6    retained for that project;

 29-7                (2)  money received under Subchapter I or from a

 29-8    transfer of a turnpike project under Subchapter H;

 29-9                (3)  advances from the state highway fund [department

29-10    authorized under Section 52-b, Article III, Texas Constitution];

29-11    and

29-12                (4)  contributions or assistance from the United

29-13    States, another state, a political subdivision of this state, the

29-14    United Mexican States, or a political subdivision of the United

29-15    Mexican States.

29-16          SECTION 7.15.  Section 361.189, Transportation Code, is

29-17    amended to read as follows:

29-18          Sec. 361.189.  USE OF SURPLUS REVENUE.  [(a)]  The commission

29-19    [board] by resolution may authorize the use of surplus revenue of a

29-20    turnpike project to pay the costs of another turnpike project,

29-21    other than a project financed under Subchapter I, or a toll-free

29-22    project.  The commission [board] may in the resolution prescribe

29-23    terms for the use of the revenue, including the pledge of the

29-24    revenue, but may not take an action under this section that[:]

29-25                [(1)  violates Subsection (b); or]

29-26                [(2)]  violates, impairs, or is inconsistent with a

29-27    bond resolution, trust agreement, or indenture governing the use of

29-28    the surplus revenue.

29-29          [(b)  Except as provided by Subsection (c), the surplus

29-30    revenue of a turnpike project that was under construction or

29-31    operated by the authority on January 1, 1993, may be used only for:]

29-32                [(1)  the costs associated with the construction,

29-33    expansion, or maintenance of the project producing the revenue; and]

29-34                [(2)  transfers to the Texas Turnpike Authority

29-35    feasibility study fund.]

29-36          [(c)  The board may use revenue from a turnpike project

29-37    described by Subsection (b) for a purpose authorized by this

29-38    chapter other than a purpose described by that subsection if:]

29-39                [(1)  the authority obtains the permission of the

29-40    commissioners court of each county in which the project is located;

29-41    or]

29-42                [(2)  an agreement between the authority and a county

29-43    or local government corporation created by the county for the

29-44    lease, sale, or other conveyance of the project permits the revenue

29-45    to be used for another purpose.]

29-46          SECTION 7.16.  Section 361.232, Transportation Code, is

29-47    amended by adding Subsection (e) to read as follows:

29-48          (e)  This section does not apply to the conversion of any

29-49    highway that is a part of the state highway system to a turnpike

29-50    project.

29-51          SECTION 7.17.  Section 361.237, Transportation Code, is

29-52    amended to read as follows:

29-53          Sec. 361.237.  OPERATION OF TURNPIKE PROJECT.  A turnpike

29-54    project is a public road subject to all laws applicable to the

29-55    regulation and control of traffic [(a)  The authority shall police

29-56    and operate a turnpike project through a force of police,

29-57    toll-takers, and other employees of the authority.]

29-58          [(b)  The authority may arrange with the Department of Public

29-59    Safety for the services of officers of that agency].

29-60          SECTION 7.18.  Section 361.238, Transportation Code, is

29-61    amended to read as follows:

29-62          Sec. 361.238.  PAYMENT OF BOND INDEBTEDNESS; CESSATION OR

29-63    CONTINUATION OF TOLLS[; TRANSFER OF PROJECT TO COMMISSION].

29-64    (a)  Except as provided by Subsection (b), a [A] turnpike project

29-65    [that is in good condition and repair to the satisfaction of the

29-66    commission] becomes a toll-free [part of the state] highway

29-67    [system] when:

29-68                (1)  the bonds issued under this chapter for the

29-69    project and the interest on the bonds are paid; or

 30-1                (2)  firm banking and financial arrangements have been

 30-2    made for the discharge and final payment or redemption of the bonds

 30-3    in accordance with Section 7A, Chapter 503, Acts of the 54th

 30-4    Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes) [a

 30-5    sufficient amount to pay the bonds and the interest on the bonds to

 30-6    maturity or to redeem the bonds has been set aside in trust for the

 30-7    benefit of the bondholders].

 30-8          (b)  If the conditions of Subsections (a)(1) and (2) are met,

 30-9    the commission may continue to charge a toll sufficient to pay the

30-10    costs of maintaining the facility.  [The authority shall continue

30-11    to operate as a toll facility a turnpike project that the

30-12    commission determines is not in a state of repair so as to justify

30-13    its acceptance as part of the state highway system.  The authority

30-14    shall continue the tolls then in effect or revise the tolls to

30-15    provide money sufficient to assure payment of the expenses of

30-16    maintenance and operation and the making of repairs and

30-17    replacements as necessary to meet the minimum requirements of the

30-18    commission within the shortest practicable time.]

30-19          [(c)  The commission shall maintain a turnpike project it

30-20    accepts free of tolls.  The authority shall deliver to the

30-21    commission at the time of acceptance any money remaining to the

30-22    credit of the project after retirement of the bonds issued for the

30-23    project.  The commission shall deposit the money in a fund to be

30-24    used to maintain the project facilities.  The commission shall

30-25    administer the fund in accordance with commission rules.]

30-26          [(d)  Not later than the first anniversary of the date the

30-27    commission accepts a turnpike project, the department shall

30-28    advertise for public sale each installation on the project other

30-29    than the road bed and highway sections and shall solicit sealed

30-30    bids for those installations.  The department may reject any or all

30-31    bids but shall dispose of the properties not later than the second

30-32    anniversary of the date the commission accepts title to the

30-33    project.]

30-34          SECTION 7.19.  The heading of Subchapter H, Chapter 361,

30-35    Transportation Code, is amended to read as follows:

30-36              SUBCHAPTER H.  TRANSFER OF TURNPIKE PROJECT TO

30-37           COUNTY, MUNICIPALITY, REGIONAL TOLLWAY AUTHORITY, OR

30-38                       LOCAL GOVERNMENT CORPORATION

30-39          SECTION 7.20.  Sections 361.281, 361.282, and 361.285,

30-40    Transportation Code, are amended to read as follows:

30-41          Sec. 361.281.  APPLICABILITY OF SUBCHAPTER.  This subchapter

30-42    applies only to:

30-43                (1)  a county with a population of more than 1.5

30-44    million;

30-45                (2)  a local government corporation serving a county

30-46    with a population of more than 1.5 million; [or]

30-47                (3)  an adjacent county in a joint turnpike authority

30-48    with a county with a population of more than 1.5 million;

30-49                (4)  a municipality with a population of more than

30-50    120,000 that is adjacent to the United Mexican States; or

30-51                (5)  a regional tollway authority created under Chapter

30-52    366.

30-53          Sec. 361.282.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

30-54    PROJECT.  (a)  The authority may lease, sell, or convey in another

30-55    manner a turnpike project to a county, municipality, regional

30-56    tollway authority, or a local government corporation created under

30-57    Chapter 431.

30-58          (b)  The authority, the commission, and the governor must

30-59    approve the transfer of the turnpike project as being in the best

30-60    interests of the state and the entity receiving the turnpike

30-61    project [county].

30-62          Sec. 361.285.  APPROVAL OF AGREEMENT BY ATTORNEY GENERAL.

30-63    (a)  An agreement for the lease, sale, or conveyance of a turnpike

30-64    project under this subchapter shall be submitted to the attorney

30-65    general for approval as part of the records of proceedings relating

30-66    to the issuance of bonds of the county, municipality, regional

30-67    tollway authority, or local government corporation.

30-68          (b)  If the attorney general determines that the agreement is

30-69    in accordance with law, the attorney general shall approve the

 31-1    agreement and deliver to the commission a copy of the legal opinion

 31-2    of the attorney general stating that approval.

 31-3          SECTION 7.21.  Subsection (a), Section 361.331,

 31-4    Transportation Code, is amended to read as follows:

 31-5          (a)  The authority may designate two or more turnpike

 31-6    projects that are wholly or partly located in a metropolitan

 31-7    planning organization [planning region of a council of governments]

 31-8    as a pooled turnpike project after:

 31-9                (1)  conducting a public hearing; and

31-10                (2)  obtaining the approval of the commission[; and]

31-11                [(3)  obtaining a resolution adopted by the

31-12    commissioners court of the county that:]

31-13                      [(A)  approves the action; and]

31-14                      [(B)  specifies the date the pooled project

31-15    becomes toll free].

31-16          SECTION 7.22.  Section 362.0041, Transportation Code, is

31-17    amended to read as follows:

31-18          Sec. 362.0041.  CONVERSION [ACQUISITION] OF PROJECTS.

31-19    (a)  If the commission finds that the conversion of a segment of

31-20    the free state highway system to a toll facility is the most

31-21    feasible and economic means to accomplish necessary expansion

31-22    improvements, or extensions to the state highway system, that

31-23    segment may[, on approval of the governor,] be converted

31-24    [transferred] by order of the commission to [the authority.  The

31-25    authority may receive such segment of highway, thereafter to be

31-26    owned, operated, and maintained as] a turnpike project under

31-27    Chapter 361.

31-28          (b)  [The authority shall reimburse the commission for the

31-29    cost of the transferred highway, unless the commission finds that

31-30    the transfer will result in substantial net benefits to the state,

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

31-32    The cost shall include the total dollar amount expended by the

31-33    department for the original construction of the highway, including

31-34    all costs associated with the preliminary engineering and design

31-35    engineering for plans, specifications, and estimates, the

31-36    acquisition of necessary right-of-way, and actual construction of

31-37    the highway and all necessary appurtenant facilities.]

31-38          [(c)  The commission shall, coincident with the transfer,

31-39    remove the segment of highway from the designated state highway

31-40    system and shall subsequently have no liability, responsibility, or

31-41    duty for the maintenance or operation of the highway.]

31-42          [(d)]  Prior to converting [transferring] a segment of the

31-43    state highway system under this section, the commission shall

31-44    conduct a public hearing for the purpose of receiving comments from

31-45    interested persons concerning the proposed transfer.  Notice of the

31-46    hearing shall be published in the Texas Register, one or more

31-47    newspapers of general circulation, and a newspaper, if any,

31-48    published in the county or counties in which the involved highway

31-49    is located.

31-50          (c) [(e)]  The commission shall adopt rules implementing this

31-51    section, such rules to include criteria and guidelines for the

31-52    approval of a conversion [transfer] of a highway.

31-53          SECTION 7.23.  Subtitle G, Title 6, Transportation Code, is

31-54    amended by adding Chapter 366 to read as follows:

31-55                CHAPTER 366.  REGIONAL TOLLWAY AUTHORITIES

31-56                     SUBCHAPTER A.  GENERAL PROVISIONS

31-57          Sec. 366.001.  SHORT TITLE.  This chapter may be cited as the

31-58    Regional Tollway Authority Act.

31-59          Sec. 366.002.  PURPOSES; LIBERAL CONSTRUCTION.  (a)  The

31-60    purposes of this chapter are:

31-61                (1)  the expansion and improvement of transportation

31-62    facilities and systems in this state;

31-63                (2)  the creation of regional tollway authorities to

31-64    secure and acquire rights-of-way for urgently needed transportation

31-65    systems and to plan, design, construct, operate, expand, extend,

31-66    and modify those systems; and

31-67                (3)  the reduction of burdens and demands on the

31-68    limited money available to the commission and an increase in the

31-69    effectiveness and efficiency of the commission.

 32-1          (b)  This chapter shall be liberally construed to effect its

 32-2    purposes.

 32-3          Sec. 366.003.  DEFINITIONS.  In this chapter:

 32-4                (1)  "Authority" means a regional tollway authority

 32-5    organized under this chapter.

 32-6                (2)  "Board" means the board of directors of an

 32-7    authority organized under this chapter.

 32-8                (3)  "Bond" means all bonds, certificates, notes, and

 32-9    other obligations of an authority authorized by this chapter, any

32-10    other statute, or the Texas Constitution.

32-11                (4)  "Bond proceedings" means a bond resolution and any

32-12    bond indenture authorized by the bond resolution, any credit

32-13    agreement entered into in connection with the bonds or the payments

32-14    to be made under the agreement, and any other agreement between an

32-15    authority and another person providing security for the payment of

32-16    bonds.

32-17                (5)  "Bond resolution" means an order or resolution of

32-18    an authority's board authorizing the issuance of bonds.

32-19                (6)  "Bondholder" means the owner of bonds and includes

32-20    a trustee acting on behalf of an owner of bonds under the terms of

32-21    a bond indenture.

32-22                (7)  "Highway" means a road, highway, farm-to-market

32-23    road, or street under the supervision of the state or a political

32-24    subdivision of the state.

32-25                (8)  "Local governmental entity" means a political

32-26    subdivision of the state, including a municipality or a county, a

32-27    political subdivision of a county, a group of adjoining counties, a

32-28    district organized or operating under Section 52, Article III, or

32-29    Section 59, Article XVI, Texas Constitution, or a nonprofit

32-30    corporation, including a transportation corporation created under

32-31    Chapter 431.

32-32                (9)  "Revenue" means the tolls, rents, and other money

32-33    received by an authority from the ownership or operation of a

32-34    turnpike project.

32-35                (10)  "System" means a turnpike project or any

32-36    combination of turnpike projects designated as a system by the

32-37    board under Section 366.034.

32-38                (11)  "Turnpike project" means a highway of any number

32-39    of lanes, with or without grade separations, owned or operated by

32-40    an authority under this chapter and any improvement, extension, or

32-41    expansion to that highway, including:

32-42                      (A)  an improvement to relieve traffic congestion

32-43    and promote safety;

32-44                      (B)  a bridge, tunnel, overpass, underpass,

32-45    interchange, service road, ramp, entrance plaza, approach, or

32-46    tollhouse;

32-47                      (C)  an administration, storage, or other

32-48    building the authority considers necessary to operate the turnpike

32-49    project;

32-50                      (D)  a service station, hotel, motel, restaurant,

32-51    parking area or structure, rest stop, park, and other improvement

32-52    or amenity the authority considers necessary, useful, or beneficial

32-53    for the operation of a turnpike project; and

32-54                      (E)  property rights, easements, and interests

32-55    the authority acquires to construct or operate the turnpike

32-56    project.

32-57          Sec. 366.004.  CONSTRUCTION COSTS DEFINED.  (a)  The cost of

32-58    acquisition, construction, improvement, extension, or expansion of

32-59    a turnpike project or system under this chapter includes the cost

32-60    of:

32-61                (1)  the actual acquisition, construction, improvement,

32-62    extension, or expansion of the turnpike project or system;

32-63                (2)  the acquisition of real property, rights-of-way,

32-64    property rights, easements, and other interests in real property;

32-65                (3)  machinery and equipment;

32-66                (4)  interest payable before, during, and after

32-67    acquisition, construction, improvement, extension, or expansion as

32-68    provided in the bond proceedings;

32-69                (5)  traffic estimates, revenue estimates, engineering

 33-1    and legal services, plans, specifications, surveys, appraisals,

 33-2    construction cost estimates, and other expenses necessary or

 33-3    incidental to determining the feasibility of the construction,

 33-4    improvement, extension, or expansion;

 33-5                (6)  necessary or incidental administrative, legal, and

 33-6    other expenses;

 33-7                (7)  compliance with laws, regulations, and

 33-8    administrative rulings;

 33-9                (8)  financing; and

33-10                (9)  expenses related to the initial operation of the

33-11    turnpike project or system.

33-12          (b)  Costs attributable to a turnpike project or system and

33-13    incurred before the issuance of bonds to finance the turnpike

33-14    project or system may be reimbursed from the proceeds of sale of

33-15    the bonds.

33-16             (Sections 366.005-366.030 reserved for expansion

33-17              SUBCHAPTER B.  CREATION AND POWERS OF REGIONAL

33-18                            TOLLWAY AUTHORITIES

33-19          Sec. 366.031.  CREATION AND EXPANSION OF A REGIONAL TOLLWAY

33-20    AUTHORITY.  (a)  Two or more counties, acting through their

33-21    respective commissioners courts, may by order passed by each

33-22    commissioners court create a regional tollway authority under this

33-23    chapter if:

33-24                (1)  one of the counties has a population of not less

33-25    than 500,000;

33-26                (2)  the counties form a contiguous territory; and

33-27                (3)  unless one of the counties has a population of 1.5

33-28    million or more, the commission approves the creation.

33-29          (b)  For an authority created under Subsection (a), the

33-30    authority is automatically approved 180 days after it is created by

33-31    order of the respective commissioners courts, unless the commission

33-32    disapproves prior to the 180th day.

33-33          (c)  A commissioners court may by resolution petition an

33-34    established authority for inclusion in the authority if the county

33-35    is contiguous to a county that initially created the authority.

33-36          (d)  On approval of the board of an authority receiving a

33-37    petition under Subsection (c), the county becomes part of the

33-38    authority.

33-39          Sec. 366.032.  NATURE OF REGIONAL TOLLWAY AUTHORITY.  (a)  An

33-40    authority created under this chapter is a body politic and

33-41    corporate and a political subdivision of this state.

33-42          (b)  An authority is a governmental unit as that term is

33-43    defined in Chapter 101, Civil Practice and Remedies Code.

33-44          (c)  The exercise by an authority of the powers conferred by

33-45    this chapter in the acquisition, design, financing, construction,

33-46    operation, and maintenance of a turnpike project or system is:

33-47                (1)  in all respects for the benefit of the people of

33-48    the counties in which an authority operates and of the people of

33-49    this state, for the increase of their commerce and prosperity, and

33-50    for the improvement of their health, living conditions, and public

33-51    safety; and

33-52                (2)  an essential governmental function of the state.

33-53          (d)  The operations of an authority are governmental, not

33-54    proprietary, functions.

33-55          Sec. 366.033.  GENERAL POWERS.  (a)  An authority, acting

33-56    through its board, without state approval, supervision, or

33-57    regulation, may:

33-58                (1)  adopt rules for the regulation of its affairs and

33-59    the conduct of its business;

33-60                (2)  adopt an official seal;

33-61                (3)  study, evaluate, design, acquire, construct,

33-62    maintain, repair, and operate turnpike projects, individually or as

33-63    one or more systems;

33-64                (4)  acquire, hold, and dispose of property in the

33-65    exercise of its powers and the performance of its duties under this

33-66    chapter;

33-67                (5)  enter into contracts or operating agreements with

33-68    similar authorities or agencies of the United States, a state of

33-69    the United States, the United Mexican States, or a state of the

 34-1    United Mexican States;

 34-2                (6)  enter into contracts or agreements necessary or

 34-3    incidental to its duties and powers under this chapter;

 34-4                (7)  cooperate and work directly with property owners

 34-5    and governmental agencies and officials to support an activity

 34-6    required to promote or develop a turnpike project or system;

 34-7                (8)  employ and set the compensation of administrators,

 34-8    consulting engineers, attorneys, accountants, construction and

 34-9    financial experts, superintendents, managers, full-time and

34-10    part-time employees, agents, consultants, and such other persons as

34-11    the authority considers necessary or useful;

34-12                (9)  receive loans, gifts, grants, and other

34-13    contributions for the construction of a turnpike project or system

34-14    and receive contributions of money, property, labor, or other

34-15    things of value from any source, including the United States, a

34-16    state of the United States, the United Mexican States, a state of

34-17    the United Mexican States, the commission, the department, any

34-18    subdivision of the state, or any other local governmental or

34-19    private entity, to be used for the purposes for which the grants or

34-20    contributions are made, and enter into any agreement necessary for

34-21    the grants or contributions;

34-22                (10)  install, construct, maintain, repair, renew,

34-23    relocate, and remove public utility facilities in, on, along, over,

34-24    or under a turnpike project;

34-25                (11)  organize a corporation under Chapter 431 for the

34-26    promotion and development of turnpike projects and systems;

34-27                (12)  adopt and enforce rules not inconsistent with

34-28    this chapter for the use of any turnpike project or system,

34-29    including traffic and other public safety rules;

34-30                (13)  enter into leases, operating agreements, service

34-31    agreements, licenses, franchises, and similar agreements with

34-32    public or private parties governing the parties' use of all or any

34-33    portion of a turnpike project and the rights and obligations of the

34-34    authority with respect to a turnpike project; and

34-35                (14)  do all things necessary or appropriate to carry

34-36    out the powers expressly granted by this chapter.

34-37          (b)  Property comprising a part of a turnpike project or a

34-38    system is not subject to condemnation or the power of eminent

34-39    domain by any person, including a governmental entity.

34-40          (c)  An authority may, if requested by the commission,

34-41    perform any function not specified by this chapter to promote or

34-42    develop turnpike projects and systems in this state.

34-43          (d)  An authority may sue and be sued and plead and be

34-44    impleaded in its own name.

34-45          (e)  An authority may rent, lease, franchise, license, or

34-46    otherwise make portions of its properties available for use by

34-47    others in furtherance of its powers under this chapter by

34-48    increasing the feasibility or the revenue of a turnpike project or

34-49    system.

34-50          (f)  An authority and any local governmental entity may enter

34-51    into a contract under which the authority will operate a turnpike

34-52    project or system on behalf of the local governmental entity.  The

34-53    payments to be made to an authority under the contract shall

34-54    constitute operating expenses of the facility or system that is to

34-55    be operated under the contract, and the contract may extend for a

34-56    number of years as the parties agree.

34-57          (g)  An authority shall adopt a written drug and alcohol

34-58    policy restricting the use of controlled substances by employees of

34-59    the authority, prohibiting the consumption of alcoholic beverages

34-60    by employees while on duty, and prohibiting employees from working

34-61    for the authority while under the influence of controlled

34-62    substances or alcohol.  An authority may adopt policies regarding

34-63    the testing of employees suspected of being in violation of the

34-64    authority's drug and alcohol policy.  The policy shall provide

34-65    that, unless required by court order or permitted by the person who

34-66    is the subject of the testing, the authority shall keep the results

34-67    of the test confidential.

34-68          Sec. 366.034.  ESTABLISHMENT OF TURNPIKE SYSTEMS.  (a)  If an

34-69    authority determines that the traffic needs of the counties in

 35-1    which it operates and the traffic needs of the surrounding region

 35-2    could be most efficiently and economically met by jointly operating

 35-3    two or more turnpike projects as one operational and financial

 35-4    enterprise, it may create a system comprised of those turnpike

 35-5    projects.  An authority may create more than one system and may

 35-6    combine two or more systems into one system.  An authority may

 35-7    finance, acquire, construct, and operate additional turnpike

 35-8    projects as additions to and expansions of a system if the

 35-9    authority determines that the turnpike project could most

35-10    efficiently and economically be acquired and constructed if it were

35-11    a part of the system and that the addition will benefit the system.

35-12          (b)  The revenue of a system shall be accounted for

35-13    separately and may not be commingled with the revenue of a turnpike

35-14    project that is not a part of the system or with the revenue of

35-15    another system.

35-16          Sec. 366.035.  CONVERSION OF STATE HIGHWAY SYSTEM PROJECTS.

35-17    (a)  If the commission determines that the most feasible and

35-18    economic means to accomplish necessary expansion, improvements, or

35-19    extensions to the state highway system is the conversion to a

35-20    turnpike project of a segment of the free state highway system, any

35-21    segment located in a county of an authority or a county in which an

35-22    authority operates a turnpike project or in any county adjacent to

35-23    those counties may, on approval of the governor and the affected

35-24    authority, be transferred by order of the commission to that

35-25    authority.  An authority that receives the segment of highway may

35-26    own, operate, and maintain the segment as a turnpike project or

35-27    system or a part of a turnpike project or system under this

35-28    chapter.

35-29          (b)  An authority shall reimburse the commission for the cost

35-30    of a transferred highway, unless the commission determines that the

35-31    transfer will result in substantial net benefits to the state, the

35-32    department, and the traveling public that exceed that cost.  The

35-33    cost includes the total amount expended by the department for the

35-34    original construction of the highway, including all costs

35-35    associated with the preliminary engineering and design engineering

35-36    for plans, specifications, and estimates, the acquisition of

35-37    necessary rights-of-way, and actual construction of the highway and

35-38    all necessary appurtenant facilities.  Costs anticipated to be

35-39    expended to expand, improve, or extend the highway shall be

35-40    deducted from the costs to be reimbursed to the commission.

35-41          (c)  The commission shall, at the time of a transfer, remove

35-42    the segment of highway from the state highway system.  After a

35-43    transfer the commission has no liability, responsibility, or duty

35-44    for the maintenance or operation of the highway.

35-45          (d)  Before transferring a segment of the state highway

35-46    system under this section, the commission shall conduct a public

35-47    hearing to receive comments from interested persons concerning the

35-48    proposed transfer.  Notice of the hearing must be published in the

35-49    Texas Register, one or more newspapers of general circulation in

35-50    the counties in which the segment is located, and a newspaper, if

35-51    any, published in the counties of the applicable authority.

35-52          (e)  The commission shall adopt rules implementing this

35-53    section.  The rules shall include criteria and guidelines for the

35-54    approval of a transfer of a highway.

35-55          (f)  An authority shall adopt rules providing criteria and

35-56    guidelines for approving the acceptance of a highway under this

35-57    section.

35-58             (Sections 366.036-366.070 reserved for expansion

35-59         SUBCHAPTER C.  FEASIBILITY OF REGIONAL TURNPIKE PROJECTS

35-60          Sec. 366.071.  EXPENDITURES FOR FEASIBILITY STUDIES.  (a)  An

35-61    authority may pay the expenses of studying the cost and feasibility

35-62    and any other expenses relating to the preparation and issuance of

35-63    bonds for a proposed turnpike project or system by:

35-64                (1)  using legally available revenue derived from an

35-65    existing turnpike project or system;

35-66                (2)  borrowing money and issuing bonds or entering into

35-67    a loan agreement payable out of legally available revenue

35-68    anticipated to be derived from the operation of an existing

35-69    turnpike project or system; or

 36-1                (3)  pledging to the payment of the bonds or loan

 36-2    agreements legally available revenue anticipated to be derived from

 36-3    the operation of an existing turnpike project or system or revenue

 36-4    legally available to the authority from another source.

 36-5          (b)  Money spent under this section for a proposed turnpike

 36-6    project or system must be reimbursed to the turnpike project or

 36-7    system from which the money was spent from the proceeds of bonds

 36-8    issued for the acquisition and construction of the proposed

 36-9    turnpike project or system.

36-10          (c)  The use of any money of a turnpike project or system to

36-11    study the feasibility of another turnpike project or system or used

36-12    to repay any money used for that purpose does not constitute an

36-13    operating expense of the turnpike project or system producing the

36-14    revenue and may only be paid from the surplus money of the turnpike

36-15    project or system.

36-16          Sec. 366.072.  FEASIBILITY STUDY FUND.  (a)  An authority may

36-17    maintain a feasibility study fund.  The fund is a revolving fund

36-18    held in trust by a banking institution chosen by the authority and

36-19    shall be kept separate from the money for any turnpike project or

36-20    system.

36-21          (b)  An authority may transfer an amount from a surplus fund

36-22    established for a turnpike project or system to the authority's

36-23    feasibility study fund if the remainder of the surplus fund is not

36-24    less than any minimum amount required by the bond proceedings to be

36-25    retained for that turnpike project or system.

36-26          (c)  Money in the feasibility study fund may be used only to

36-27    pay the expenses of studying the cost and feasibility and any other

36-28    expenses relating to:

36-29                (1)  the preparation and issuance of bonds for the

36-30    acquisition and construction of a proposed turnpike project or

36-31    system;

36-32                (2)  the financing of the improvement, extension, or

36-33    expansion of an existing turnpike project or system; and

36-34                (3)  private participation, as authorized by law, in

36-35    the financing of a proposed turnpike project or system, the

36-36    refinancing of an existing turnpike project or system, or the

36-37    improvement, extension, or expansion of a turnpike project or

36-38    system.

36-39          (d)  Money spent under Subsection (c) for a proposed turnpike

36-40    project or system must be reimbursed from the proceeds of turnpike

36-41    revenue bonds issued for, or other proceeds that may be used for,

36-42    the acquisition, construction, improvement, extension, expansion,

36-43    or operation of the turnpike project or system.

36-44          (e)  For a purpose described by Subsection (c), an authority

36-45    may borrow money and issue promissory notes or other

36-46    interest-bearing evidences of indebtedness payable out of its

36-47    feasibility study fund, pledging money in the fund or to be placed

36-48    in the fund.

36-49          Sec. 366.073.  FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,

36-50    OTHER LOCAL GOVERNMENTAL ENTITY, OR PRIVATE GROUP.  (a)  One or

36-51    more municipalities, counties, or local governmental entities, a

36-52    combination of municipalities, counties, and local governmental

36-53    entities, or a private group or combination of individuals in this

36-54    state may pay all or part of the expenses of studying the cost and

36-55    feasibility and any other expenses relating to:

36-56                (1)  the preparation and issuance of bonds for the

36-57    acquisition and construction of a proposed turnpike project or

36-58    system by an authority;

36-59                (2)  the improvement, extension, or expansion of an

36-60    authority's existing turnpike project or system; or

36-61                (3)  the use of private participation under applicable

36-62    law in connection with the acquisition, construction, improvement,

36-63    expansion, extension, maintenance, repair, or operation of a

36-64    turnpike project or system by an authority.

36-65          (b)  Money spent under Subsection (a) for an authority's

36-66    proposed turnpike project or system is reimbursable without

36-67    interest and with the consent of the authority to the person paying

36-68    the expenses described in Subsection (a) out of the proceeds from

36-69    turnpike revenue bonds issued for or other proceeds that may be

 37-1    used for the acquisition, construction, improvement, extension,

 37-2    expansion, or operation of the turnpike project or system.

 37-3             (Sections 366.074-366.110 reserved for expansion

 37-4                     SUBCHAPTER D.  TURNPIKE FINANCING

 37-5          Sec. 366.111.  TURNPIKE REVENUE BONDS.  (a)  An authority, by

 37-6    adoption of a bond resolution, may authorize the issuance of bonds

 37-7    to pay all or part of the cost of a turnpike project or system, to

 37-8    refund any bonds previously issued for the turnpike project or

 37-9    system, or to pay for all or part of the cost of a turnpike project

37-10    or system that will become a part of another system.

37-11          (b)  As determined in the bond resolution, the bonds of each

37-12    issue shall:

37-13                (1)  be dated;

37-14                (2)  bear interest at the rate or rates and beginning

37-15    on the dates, as authorized by law, or bear no interest;

37-16                (3)  mature at the time or times, not exceeding 40

37-17    years from their date or dates; and

37-18                (4)  be made redeemable before maturity at the price or

37-19    prices and under the terms provided by the bond resolution.

37-20          (c)  An authority may sell the bonds at public or private

37-21    sale in the manner and for the price it determines to be in the

37-22    best interest of the authority.

37-23          (d)  The proceeds of each bond issue shall be disbursed in

37-24    the manner and under the restrictions, if any, the authority

37-25    provides in the bond resolution.

37-26          (e)  Additional bonds may be issued in the same manner to pay

37-27    the costs of a turnpike project or system.  Unless otherwise

37-28    provided in the bond resolution, the additional bonds shall be on a

37-29    parity, without preference or priority, with bonds previously

37-30    issued and payable from the revenue of the turnpike project or

37-31    system.  In addition, an authority may issue bonds for a turnpike

37-32    project or system secured by a lien on the revenue of the turnpike

37-33    project or system subordinate to the lien on the revenue securing

37-34    other bonds issued for the turnpike project or system.

37-35          (f)  If the proceeds of a bond issue exceed the cost of the

37-36    turnpike project or system for which the bonds were issued, the

37-37    surplus shall be segregated from the other money of the authority

37-38    and used only for the purposes specified in the bond resolution.

37-39          (g)  Bonds issued and delivered under this chapter and

37-40    interest coupons on the bonds are a security under Chapter 8,

37-41    Business & Commerce Code.

37-42          (h)  Bonds issued under this chapter and income from the

37-43    bonds, including any profit made on the sale or transfer of the

37-44    bonds, are exempt from taxation in this state.

37-45          Sec. 366.112.  INTERIM BONDS.  (a)  An authority may, before

37-46    issuing definitive bonds, issue interim bonds, with or without

37-47    coupons, exchangeable for definitive bonds.

37-48          (b)  The interim bonds may be authorized and issued in

37-49    accordance with this chapter, without regard to the requirements,

37-50    restrictions, or procedural provisions contained in any other law.

37-51          (c)  A bond resolution authorizing interim bonds may provide

37-52    that the interim bonds recite that the bonds are issued under this

37-53    chapter.  The recital is conclusive evidence of the validity and

37-54    the regularity of the bonds' issuance.

37-55          Sec. 366.113.  PAYMENT OF BONDS; STATE AND COUNTY CREDIT NOT

37-56    PLEDGED.  (a)  The principal of, interest on, and any redemption

37-57    premium on bonds issued by an authority are payable solely from:

37-58                (1)  the revenue of the turnpike project or system for

37-59    which the bonds are issued, including tolls pledged to pay the

37-60    bonds;

37-61                (2)  payments made under an agreement with the

37-62    commission or a local governmental entity as provided by Subchapter

37-63    G;

37-64                (3)  money derived from any other source available to

37-65    the authority, other than money derived from a turnpike project

37-66    that is not part of the same system or money derived from a

37-67    different system, except to the extent that the surplus revenue of

37-68    a turnpike project or system has been pledged for that purpose; and

37-69                (4)  amounts received under a credit agreement relating

 38-1    to the turnpike project or system for which the bonds are issued.

 38-2          (b)  Bonds issued under this chapter do not constitute a debt

 38-3    of the state or any of the counties of an authority or a pledge of

 38-4    the faith and credit of the state or any of the counties.  Each

 38-5    bond must contain on its face a statement to the effect that the

 38-6    state, the authority, and the counties of the authority are not

 38-7    obligated to pay the bond or the interest on the bond from a source

 38-8    other than the amount pledged to pay the bond and the interest on

 38-9    the bond, and neither the faith and credit and taxing power of the

38-10    state or the counties of the authority are pledged to the payment

38-11    of the principal of or interest on the bond.

38-12          (c)  An authority may not incur financial obligations that

38-13    cannot be paid from revenue derived from owning or operating the

38-14    authority's turnpike projects and systems or from other revenue

38-15    provided by law.

38-16          Sec. 366.114.  EFFECT OF LIEN.  (a)  A lien on or a pledge of

38-17    revenue from a turnpike project or system under this chapter or on

38-18    a reserve, replacement, or other fund established in connection

38-19    with a bond issued under this chapter:

38-20                (1)  is enforceable at the time of payment for and

38-21    delivery of the bond;

38-22                (2)  applies to an item on hand or subsequently

38-23    received;

38-24                (3)  applies without physical delivery of an item or

38-25    other act; and

38-26                (4)  is enforceable against any person having any

38-27    claim, in tort, contract, or other remedy, against the applicable

38-28    authority without regard to whether the person has notice of the

38-29    lien or pledge.

38-30          (b)  A bond resolution is not required to be recorded except

38-31    in the regular records of the authority.

38-32          Sec. 366.115.  BOND INDENTURE.  (a)  Bonds issued under this

38-33    chapter may be secured by a bond indenture between the authority

38-34    and a corporate trustee that is a trust company or a bank that has

38-35    the powers of a trust company.

38-36          (b)  A bond indenture may pledge or assign the tolls and

38-37    other revenue to be received but may not convey or mortgage any

38-38    part of a turnpike project or system.

38-39          (c)  A bond indenture may:

38-40                (1)  set forth the rights and remedies of the

38-41    bondholders and the trustee;

38-42                (2)  restrict the individual right of action by

38-43    bondholders as is customary in trust agreements or indentures of

38-44    trust securing corporate bonds and debentures; and

38-45                (3)  contain provisions the authority determines

38-46    reasonable and proper for the security of the bondholders,

38-47    including covenants:

38-48                      (A)  establishing the authority's duties relating

38-49    to:

38-50                            (i)  the acquisition of property;

38-51                            (ii)  the construction, maintenance,

38-52    operation, and repair of and insurance for a turnpike project or

38-53    system; and

38-54                            (iii)  custody, safeguarding, and

38-55    application of money;

38-56                      (B)  prescribing events that constitute default;

38-57                      (C)  prescribing terms on which any or all of the

38-58    bonds become or may be declared due before maturity; and

38-59                      (D)  relating to the rights, powers, liabilities,

38-60    or duties that arise on the breach of an authority's duty.

38-61          (d)  The expenses incurred in carrying out a trust agreement

38-62    may be treated as part of the cost of operating the turnpike

38-63    project.

38-64          (e)  In addition to all other rights by mandamus or other

38-65    court proceeding, an owner or trustee of a bond issued under this

38-66    chapter may enforce the owner's rights against an issuing

38-67    authority, the authority's employees, the authority's board, or an

38-68    agent or employee of the authority's board and is entitled to:

38-69                (1)  require the authority and the board to impose and

 39-1    collect tolls, charges, and other revenue sufficient to carry out

 39-2    any agreement contained in the bond proceedings; and

 39-3                (2)  apply for and obtain the appointment of a receiver

 39-4    for the turnpike project or system.

 39-5          Sec. 366.116.  APPROVAL OF BONDS BY ATTORNEY GENERAL.

 39-6    (a)  An authority shall submit to the attorney general for

 39-7    examination a transcript of proceedings relating to bonds

 39-8    authorized under this chapter.  The transcript shall include the

 39-9    bond proceedings and any contract securing or providing revenue for

39-10    the payment of the bonds.

39-11          (b)  If the attorney general determines that the bonds, the

39-12    bond proceedings, and any supporting contract are authorized by

39-13    law, the attorney general shall approve the bonds and deliver to

39-14    the comptroller:

39-15                (1)  a copy of the legal opinion of the attorney

39-16    general stating the approval; and

39-17                (2)  the record of proceedings relating to the

39-18    authorization of the bonds.

39-19          (c)  On receipt of the legal opinion of the attorney general

39-20    and the record of proceedings relating to the authorization of the

39-21    bonds, the comptroller shall register the record of proceedings.

39-22          (d)  After approval by the attorney general, the bonds, the

39-23    bond proceedings, and any supporting contract are valid,

39-24    enforceable, and incontestable in any court or other forum for any

39-25    reason and are binding obligations according to their terms for all

39-26    purposes.

39-27          Sec. 366.117.  FURNISHING OF INDEMNIFYING BONDS OR PLEDGES OF

39-28    SECURITIES.  (a)  A bank or trust company incorporated under the

39-29    laws of this state that acts as depository of the proceeds of bonds

39-30    or of revenue may furnish indemnifying bonds or pledge securities

39-31    that an authority requires.

39-32          (b)  Bonds of an authority may secure the deposit of public

39-33    money of the state or a political subdivision of the state to the

39-34    extent of the lesser of the face value of the bonds or their market

39-35    value.

39-36          Sec. 366.118.  APPLICABILITY OF OTHER LAW; CONFLICTS.  All

39-37    laws affecting the issuance of bonds by local governmental

39-38    entities, including Chapter 656, Acts of the 68th Legislature,

39-39    Regular Session, 1983 (Article 717q, Vernon's Texas Civil

39-40    Statutes), Chapter 3, Acts of the 61st Legislature, Regular

39-41    Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), the

39-42    Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil

39-43    Statutes), and Chapter 53, Acts of the 70th Legislature, 2nd Called

39-44    Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes),

39-45    apply to bonds issued under this chapter.  To the extent of a

39-46    conflict between those laws and this chapter, the provisions of

39-47    this chapter prevail.

39-48             (Sections 366.119-366.160 reserved for expansion

39-49          SUBCHAPTER E.  ACQUISITION, CONSTRUCTION, AND OPERATION

39-50                           OF TURNPIKE PROJECTS

39-51          Sec. 366.161.  TURNPIKE PROJECTS EXTENDING INTO OTHER

39-52    COUNTIES.  An authority may acquire, construct, operate, maintain,

39-53    expand, or extend a turnpike project in:

39-54                (1)  a county that is a part of the authority;

39-55                (2)  a county in which the authority operates or is

39-56    constructing a turnpike project if the turnpike project in the

39-57    affected county is a continuation of the authority's turnpike

39-58    project or system extending from an adjacent county; or

39-59                (3)  a county in which the authority operates or is

39-60    constructing a turnpike project that is not a continuation of the

39-61    authority's turnpike project or system if the commissioners court

39-62    of the county and the commission have approved the project.

39-63          Sec. 366.162.  POWERS AND PROCEDURES OF AUTHORITY IN

39-64    ACQUIRING PROPERTY.  (a)  An authority may construct or improve a

39-65    turnpike project on real property, including a right-of-way

39-66    acquired by the authority or provided to the authority for that

39-67    purpose by the commission, a political subdivision of this state,

39-68    or any other local governmental entity.

39-69          (b)  Except as provided by this chapter, an authority has the

 40-1    same powers and may use the same procedures as the commission in

 40-2    acquiring property.

 40-3          Sec. 366.163.  ACQUISITION OF PROPERTY.  (a)  An authority

 40-4    may acquire in the name of the authority public or private real and

 40-5    other property it determines necessary or convenient for the

 40-6    design, financing, construction, operation, maintenance, expansion,

 40-7    or extension of a turnpike project or for otherwise carrying out

 40-8    this chapter.

 40-9          (b)  The property an authority may acquire under this

40-10    subchapter includes all or any portion of, and rights in and to:

40-11                (1)  public or private land, streets, alleys,

40-12    rights-of-way, parks, playgrounds, and reservations;

40-13                (2)  franchises;

40-14                (3)  easements;

40-15                (4)  licenses; and

40-16                (5)  other interests in real and other property.

40-17          (c)  An authority may acquire real property by any method,

40-18    including purchase and condemnation.  An authority may purchase

40-19    public or private real property on the terms and at the price the

40-20    authority and the property owner consider reasonable.

40-21          (d)  Covenants, conditions, restrictions, or limitations

40-22    affecting property acquired in any manner by the authority are not

40-23    binding against the authority and do not impair the authority's

40-24    ability to use the property for a purpose authorized by this

40-25    chapter.  The beneficiaries of the covenants, conditions,

40-26    restrictions, or limitations are not entitled to enjoin the

40-27    authority from using the property for a purpose authorized under

40-28    this chapter, but this section does not affect the right of a

40-29    person to seek damages to the person's property under Section 17,

40-30    Article I, Texas Constitution.

40-31          Sec. 366.164.  RIGHT OF ENTRY.  (a)  To acquire property

40-32    necessary or useful in connection with a turnpike project, an

40-33    authority may enter any real property, water, or premises to make a

40-34    survey, geotechnical evaluation, sounding, or examination.

40-35          (b)  An entry under Subsection (a) is not:

40-36                (1)  a trespass; or

40-37                (2)  an entry under a pending condemnation proceeding.

40-38          Sec. 366.165.  CONDEMNATION OF REAL PROPERTY.  (a)  Subject

40-39    to Subsection (c), an authority may acquire public or private real

40-40    property in the name of the authority by the exercise of the power

40-41    of condemnation under the laws applicable to the exercise of that

40-42    power on property for public use if:

40-43                (1)  the authority and the property owner cannot agree

40-44    on a reasonable price for the property; or

40-45                (2)  the property owner is legally incapacitated,

40-46    absent, unknown, or unable to convey title.

40-47          (b)  An authority may condemn real property that the

40-48    authority determines is:

40-49                (1)  necessary or appropriate to construct or to

40-50    efficiently operate a turnpike project;

40-51                (2)  necessary to restore public or private property

40-52    damaged or destroyed;

40-53                (3)  necessary for access, approach, and interchange

40-54    roads;

40-55                (4)  necessary for supplemental facilities of the

40-56    authority;

40-57                (5)  necessary to provide proper drainage and ground

40-58    slope for a turnpike project; or

40-59                (6)  necessary otherwise to implement this chapter.

40-60          (c)  An authority's acquisition of any real or other property

40-61    of the commission under this section or any other section of this

40-62    chapter, or an authority's relocation, rerouting, disruption, or

40-63    alteration of any facility of the commission is considered a

40-64    conversion of a state highway under Section 366.035 and is subject

40-65    to all requirements and approvals of a conversion under that

40-66    section.

40-67          Sec. 366.166.  DECLARATION OF TAKING.  (a)  An authority may

40-68    file a declaration of taking with the clerk of the court:

40-69                (1)  in which the authority files a condemnation

 41-1    petition under Chapter 21, Property Code; or

 41-2                (2)  to which the case is assigned.

 41-3          (b)  An authority may file the declaration of taking

 41-4    concurrently with or subsequent to the petition, but may not file

 41-5    the declaration after the special commissioners have made an award

 41-6    in the condemnation proceeding.

 41-7          (c)  The declaration of taking must include:

 41-8                (1)  a specific reference to the legislative authority

 41-9    for the condemnation;

41-10                (2)  a description and plot plan of the real property

41-11    to be condemned, including the following information if applicable:

41-12                      (A)  the municipality in which the property is

41-13    located;

41-14                      (B)  the street address of the property; and

41-15                      (C)  the lot and block number of the property;

41-16                (3)  a statement of the property interest to be

41-17    condemned;

41-18                (4)  the name and address of each property owner that

41-19    the authority can obtain after reasonable investigation and a

41-20    description of the owner's interest in the property; and

41-21                (5)  a statement that immediate possession of all or

41-22    part of the property to be condemned is necessary for the timely

41-23    construction of a turnpike project.

41-24          (d)  A deposit to the registry of the court of an amount

41-25    equal to the appraised fair market value, as determined by the

41-26    authority, of the property to be condemned and any damages to the

41-27    remainder must accompany the declaration of taking.

41-28          (e)  Instead of the deposit under Subsection (d), at its

41-29    option, the authority may, concurrently with the declaration of a

41-30    taking, tender in favor of the owner of the subject property a bond

41-31    or other security in an amount sufficient to secure the owner for

41-32    the value of the property taken and damages to remaining property,

41-33    if the authority obtains the court's approval.

41-34          (f)  The date on which the declaration is filed is the date

41-35    of taking for the purpose of assessing the value of the property

41-36    taken and damages to any remaining property to which an owner is

41-37    entitled.

41-38          (g)  An owner may draw upon the deposit held by the court

41-39    under Subsection (d) on the same terms and conditions as are

41-40    applicable under state law to a property owner's withdrawal of a

41-41    commissioners' award deposited under Section 21.021(a)(1), Property

41-42    Code.

41-43          (h)  A property owner that is a defendant in an eminent

41-44    domain action filed by an authority under this chapter has 20 days

41-45    after the date of service of process of both a condemnation

41-46    petition and a notice of declaration of taking to give notice to

41-47    the court in which the action is pending of the defendant's desire

41-48    to have the condemnation petition placed on the court's docket in

41-49    the same manner as other cases pending in the court.  On receipt of

41-50    timely notice from the defendant, the court in which the eminent

41-51    domain action is pending shall place the case on its docket in the

41-52    same manner as other cases pending in the court.

41-53          Sec. 366.167.  POSSESSION OF PROPERTY.  (a)  Immediately on

41-54    the filing of a declaration of taking, an authority shall serve a

41-55    copy of the declaration on each person possessing an interest in

41-56    the condemned property by a method prescribed by Section 21.016(d),

41-57    Property Code.  The authority shall file evidence of the service

41-58    with the clerk of the court.  On filing of that evidence, the

41-59    authority may take possession of the property on the same terms as

41-60    if a commissioners hearing had been conducted, pending the

41-61    litigation.

41-62          (b)  If the condemned property is a homestead or a portion of

41-63    a homestead as defined by Section 41.002, Property Code, an

41-64    authority may not take possession before the 31st day after the

41-65    date of service under Subsection (a).

41-66          (c)  A property owner or tenant who refuses to vacate the

41-67    property or yield possession is subject to forcible entry and

41-68    detainer under Chapter 24, Property Code.

41-69          Sec. 366.168.  SEVERANCE OF REAL PROPERTY.  (a)  If an

 42-1    authority's turnpike project severs a property owner's real

 42-2    property, the authority shall pay:

 42-3                (1)  the value of the property acquired; and

 42-4                (2)  the damages, if any, to the remainder of the

 42-5    owner's property caused by the severance, including damages caused

 42-6    by the inaccessibility of one tract from the other.

 42-7          (b)  At its option, an authority may negotiate for and

 42-8    purchase the severed real property or any part of the severed real

 42-9    property if the authority and the property owner agree on terms for

42-10    the purchase.  An authority may sell and dispose of severed real

42-11    property that it determines is not necessary or useful to the

42-12    authority.  Severed property must be appraised before being offered

42-13    for sale by an authority.

42-14          Sec. 366.169.  ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY.

42-15    (a)  An authority may use real property, including submerged land,

42-16    streets, alleys, and easements, owned by the state or a local

42-17    governmental entity that the authority considers necessary for the

42-18    construction or operation of a turnpike project.

42-19          (b)  The state or a local governmental entity having charge

42-20    of public real property may consent to the use of the property for

42-21    a turnpike project.

42-22          (c)  Except as provided by Section 366.035, the state or a

42-23    local governmental entity may convey, grant, or lease to an

42-24    authority real property, including highways and other real property

42-25    already devoted to public use and rights or easements in real

42-26    property, that may be necessary or convenient to accomplish the

42-27    authority's purposes, including the construction or operation of a

42-28    turnpike project.  A conveyance, grant, or lease under this section

42-29    may be made without advertising, court order, or other action other

42-30    than the normal action of the state or local governmental entity

42-31    necessary for a conveyance, grant, or lease.

42-32          (d)  This section does not deprive the School Land Board of

42-33    the power to execute leases for the development of oil, gas, and

42-34    other minerals on state-owned real property adjoining a turnpike

42-35    project or in tidewater limits.  The leases may provide for

42-36    directional drilling from the adjoining property or tidewater area.

42-37          Sec. 366.170.  COMPENSATION FOR AND RESTORATION OF PUBLIC

42-38    PROPERTY.  (a)  Except as provided by Section 366.035 or Section

42-39    366.165(c), an authority may not pay compensation for public real

42-40    property, parkways, streets, highways, alleys, or reservations it

42-41    takes, except for parks and playgrounds or as provided by this

42-42    chapter.

42-43          (b)  Public property damaged in the exercise of powers

42-44    granted by this chapter shall be restored or repaired and placed in

42-45    its original condition as nearly as practicable.

42-46          (c)  An authority has full easements and rights-of-way

42-47    through, across, under, and over any property owned by the state or

42-48    any local governmental entity that are necessary or convenient to

42-49    construct, acquire, or efficiently operate a turnpike project or

42-50    system under this chapter.

42-51          Sec. 366.171.  PUBLIC UTILITY FACILITIES.  (a)  An authority

42-52    may adopt rules for the installation, construction, operation,

42-53    maintenance, repair, renewal, relocation, and removal of a public

42-54    utility facility in, on, along, over, or under a turnpike project.

42-55          (b)  If an authority determines it is necessary that a public

42-56    utility facility located in, on, along, over, or under a turnpike

42-57    project be relocated in the turnpike project, removed from the

42-58    turnpike project, or carried along or across the turnpike project

42-59    by grade separation, the owner or operator of the utility facility

42-60    shall relocate or remove the facility in accordance with the

42-61    requirements of the authority and in a manner that does not impede

42-62    the design, financing, construction, operation, or maintenance of

42-63    the turnpike project.  The authority, as a part of the cost of the

42-64    turnpike project or the cost of operating the turnpike project,

42-65    shall pay the cost of the relocation, removal, or grade separation,

42-66    including the cost of:

42-67                (1)  installation of the facility in a new location;

42-68                (2)  interests in real property and other rights

42-69    acquired to accomplish the relocation or removal; and

 43-1                (3)  maintenance of grade separation structures.

 43-2          (c)  The authority may reduce the total costs to be paid by

 43-3    the authority under Subsection (b) by 10 percent for each 30-day

 43-4    period or portion of a 30-day period by which the relocation

 43-5    exceeds the limit specified by the authority.  If an owner or

 43-6    operator of a public utility facility does not timely remove or

 43-7    relocate as required under Subsection (b), the authority may do so

 43-8    at the expense of the public utility.  If the authority determines

 43-9    that a delay in relocation is the result of circumstances beyond

43-10    the control of the utility, full costs shall be paid by the

43-11    authority.

43-12          (d)  Chapter 228, Acts of the 51st Legislature, Regular

43-13    Session, 1949 (Article 1436a, Vernon's Texas Civil Statutes),

43-14    applies to the erection, construction, maintenance, and operation

43-15    of lines and poles owned by a corporation described by Section 1 of

43-16    that Act over, under, across, on, and along a turnpike project or

43-17    system constructed by an authority.  An authority has the powers

43-18    and duties delegated to the commissioners court by that Act, and an

43-19    authority has exclusive jurisdiction and control of utilities

43-20    located in its rights-of-way.

43-21          (e)  The laws of this state applicable to the use of public

43-22    roads, streets, and waters by a telephone and telegraph corporation

43-23    apply to the erection, construction, maintenance, location, and

43-24    operation of a line, pole, or other fixture by a telephone and

43-25    telegraph corporation over, under, across, on, and along a turnpike

43-26    project or system constructed by an authority under this chapter.

43-27          (f)  In this section "public utility facility" means a track,

43-28    pipe, main, conduit, cable, wire, tower, pole, or other item of

43-29    plant or equipment or an appliance of a public utility or other

43-30    person.

43-31          Sec. 366.172.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

43-32    PROJECT.  (a)  An authority may lease, sell, or convey in another

43-33    manner a turnpike project to the department, a county, or a local

43-34    government corporation created under Chapter 431.

43-35          (b)  An agreement to lease, sell, or convey a turnpike

43-36    project under this section must provide for the discharge and final

43-37    payment or redemption of the authority's outstanding bonded

43-38    indebtedness for the turnpike project and must not be prohibited

43-39    under the bond proceedings applicable to the system, if any, of

43-40    which the turnpike project is a part.

43-41          Sec. 366.173.  REVENUE.  (a)  An authority may:

43-42                (1)  impose tolls for the use of each of its turnpike

43-43    projects and systems and the different parts or sections of each of

43-44    its turnpike projects and systems; and

43-45                (2)  contract with a person for the use of part of a

43-46    turnpike project or system or lease or sell part of a turnpike

43-47    project or system, including the right-of-way adjoining the paved

43-48    portion, for any purpose, including placing on the adjoining

43-49    right-of-way a gas station, garage, store, hotel, restaurant,

43-50    parking facility, railroad track, billboard, livestock pasturage,

43-51    telephone line or facility, telecommunication line or facility,

43-52    data transmission line or facility, and electric line or facility,

43-53    under terms set by the authority.

43-54          (b)  Tolls must be set so that the aggregate of tolls from an

43-55    authority's turnpike project or system, together with other revenue

43-56    of the turnpike project or system:

43-57                (1)  provides revenue sufficient to pay:

43-58                      (A)  the cost of maintaining, repairing, and

43-59    operating the turnpike project or system; and

43-60                      (B)  the principal of and interest on the bonds

43-61    issued for the turnpike project or system as those bonds become due

43-62    and payable; and

43-63                (2)  creates reserves for a purpose listed under

43-64    Subdivision (1).

43-65          (c)  Tolls are not subject to supervision or regulation by

43-66    any state agency or other local governmental entity.

43-67          (d)  Tolls and other revenue derived from a turnpike project

43-68    or system for which bonds are issued, except the part necessary to

43-69    pay the cost of maintenance, repair, and operation and to provide

 44-1    reserves for those costs as may be provided in the bond

 44-2    proceedings, shall be set aside at regular intervals as may be

 44-3    provided in the bond resolution or trust agreement in a sinking

 44-4    fund that is pledged to and charged with the payment of:

 44-5                (1)  interest on the bonds as it becomes due;

 44-6                (2)  principal of the bonds as it becomes due;

 44-7                (3)  necessary charges of paying agents for paying

 44-8    principal and interest; and

 44-9                (4)  the redemption price or the purchase price of

44-10    bonds retired by call or purchase as provided by the bond

44-11    proceedings.

44-12          (e)  Use and disposition of money to the credit of the

44-13    sinking fund is subject to the bond proceedings.

44-14          (f)  To the extent permitted under the applicable bond

44-15    proceedings, revenue from one turnpike project of an authority may

44-16    be used to pay the cost of other turnpike projects of the

44-17    authority.

44-18          (g)  An authority may not use revenue from its turnpike

44-19    projects in a manner not authorized by this chapter.  Revenue

44-20    generated from a turnpike project may not be applied for a purpose

44-21    or to pay a cost other than a cost or purpose that is reasonably

44-22    related to or anticipated for a turnpike project.

44-23          Sec. 366.174.  AUTHORITY REVOLVING FUND.  (a)  An authority

44-24    may maintain a revolving fund to be held in trust by a banking

44-25    institution chosen by the authority separate from any other funds

44-26    and administered by the authority's board.

44-27          (b)  An authority may transfer into its revolving fund money

44-28    from any permissible source, including:

44-29                (1)  money from a turnpike project if the transfer does

44-30    not diminish the money available for the project or the system, if

44-31    any, of which it is a part to less than an amount required to be

44-32    retained by the bond proceedings pertaining to the project or

44-33    system;

44-34                (2)  money received by the authority from any source

44-35    and not otherwise committed, including money from the transfer of a

44-36    turnpike project or system or sale of authority assets;

44-37                (3)  advances authorized under Section 52-b, Article

44-38    III, Texas Constitution; and

44-39                (4)  contributions, loans, grants, or assistance from

44-40    the United States, another state, a political subdivision of this

44-41    state, a foreign governmental entity, including the United Mexican

44-42    States or a state of the United Mexican States, a local

44-43    governmental entity, any private enterprise, or any person.

44-44          (c)  The authority may use money in the revolving fund to:

44-45                (1)  finance the acquisition, construction,

44-46    maintenance, or operation of a turnpike project or system,

44-47    including the extension, expansion, or improvement of a project or

44-48    system;

44-49                (2)  provide matching money required in connection with

44-50    any federal, state, local, or private aid, grant, or other funding,

44-51    including aid or funding by or with public-private partnerships;

44-52                (3)  provide credit enhancement either directly or

44-53    indirectly for bonds issued to acquire, construct, extend, expand,

44-54    or improve a turnpike project or system;

44-55                (4)  provide security for or payment of future or

44-56    existing debt for the design, acquisition, construction, operation,

44-57    maintenance, extension, expansion, or improvement of a turnpike

44-58    project or system;

44-59                (5)  borrow money and issue promissory notes or other

44-60    indebtedness payable out of the revolving fund for any purpose

44-61    authorized by this chapter; and

44-62                (6)  provide for any other reasonable purpose that

44-63    assists in the financing of an authority as authorized by this

44-64    chapter.

44-65          (d)  Money spent or advanced from the revolving fund for a

44-66    turnpike project or system must be reimbursed from the money of

44-67    that turnpike project or system, and there must be a reasonable

44-68    expectation of such repayment at the time of authorization.

44-69          Sec. 366.175.  USE OF SURPLUS REVENUE.  The board of an

 45-1    authority may by resolution authorize the use of surplus revenue of

 45-2    a turnpike project or system to pay the costs of another turnpike

 45-3    project or system other than a project financed under Subchapter G.

 45-4    The board may in the resolution prescribe terms for the use of the

 45-5    revenue, including the pledge of the revenue, but may not take an

 45-6    action under this section that violates, impairs, or is

 45-7    inconsistent with a bond resolution, trust agreement, or indenture

 45-8    governing the use of the surplus revenue.

 45-9          Sec. 366.176.  EXEMPTION FROM TAXATION OR ASSESSMENT.

45-10    (a)  An authority is exempt from taxation of or assessments on:

45-11                (1)  a turnpike project or system;

45-12                (2)  property the authority acquires or uses under this

45-13    chapter; or

45-14                (3)  income from property described by Subdivision (1)

45-15    or (2).

45-16          (b)  An authority is exempt from payment of development fees,

45-17    utility connection fees, assessments, and service fees imposed or

45-18    assessed by a county, municipality, road and utility district,

45-19    river authority, any other state or local governmental entity, or

45-20    any property owners' or homeowners' association.

45-21          Sec. 366.177.  ACTIONS AFFECTING EXISTING ROADS.  (a)  An

45-22    authority may impose a toll for transit over an existing free road,

45-23    street, or public highway transferred to the authority under this

45-24    chapter.

45-25          (b)  An authority may construct a grade separation at an

45-26    intersection of a turnpike project with a railroad or highway and

45-27    change the line or grade of a highway to accommodate the design of

45-28    the grade separation.  The action may not affect a segment of the

45-29    state highway system without the department's consent.  The

45-30    authority shall pay the cost of a grade separation and any damage

45-31    incurred in changing a line or grade of a railroad or highway as

45-32    part of the cost of the turnpike project.

45-33          (c)  If feasible, an authority shall provide access to

45-34    properties previously abutting a county or other public road that

45-35    is taken for a turnpike project and shall pay abutting property

45-36    owners the expenses or any resulting damages for a denial of access

45-37    to the road.

45-38          Sec. 366.178.  FAILURE OR REFUSAL TO PAY TOLL.  (a)  A motor

45-39    vehicle other than a police or emergency vehicle that passes

45-40    through a toll collection facility, whether driven or towed, shall

45-41    pay the proper toll.

45-42          (b)  A person who fails or refuses to pay a toll provided for

45-43    the use of a project is liable for a fine not to exceed $250, plus

45-44    an administrative fee incurred in connection with the violation.

45-45          (c)  If a person fails to pay the proper toll:

45-46                (1)  on issuance of a notice of nonpayment, the

45-47    registered owner of the nonpaying vehicle shall pay both the proper

45-48    toll and the administrative fee; and

45-49                (2)  an authority may charge an administrative fee of

45-50    not more than $100 to recover the cost of collecting the unpaid

45-51    toll.

45-52          (d)  Notice of nonpayment under Subsection (c)(1) shall be

45-53    sent by first-class mail and may not require payment of the proper

45-54    toll and the administrative fee before the 30th day after the date

45-55    the notice is mailed.  The registered owner shall pay a separate

45-56    toll and administrative fee for each nonpayment.

45-57          (e)  If the registered owner of the vehicle fails to pay the

45-58    proper toll and administrative fee in the time specified by the

45-59    notice, the owner shall be cited as for other traffic violations as

45-60    provided by law, and the owner shall pay a fine of not more than

45-61    $250 for each nonpayment.

45-62          (f)  In the prosecution of a violation for nonpayment, proof

45-63    that the vehicle passed through a toll collection facility without

45-64    payment of the proper toll together with proof that the defendant

45-65    was the registered owner or the driver of the vehicle when the

45-66    failure to pay occurred, establishes the nonpayment of the

45-67    registered owner.  The proof may be by testimony of a peace officer

45-68    or authority employee, video surveillance, or any other reasonable

45-69    evidence.

 46-1          (g)  The court of the local jurisdiction in which the

 46-2    violation occurs may assess and collect the fine in addition to any

 46-3    court costs.  The court shall collect the proper toll and

 46-4    administrative fee and forward the toll and fee to the authority.

 46-5          (h)  It is a defense to nonpayment under this section that

 46-6    the motor vehicle in question was stolen before the failure to pay

 46-7    the proper toll occurred and was not recovered by the time of the

 46-8    failure to pay, but only if the theft was reported to the

 46-9    appropriate law enforcement authority before the earlier of:

46-10                (1)  the occurrence of the failure to pay; or

46-11                (2)  eight hours after the discovery of the theft.

46-12          (i)  A registered owner who is the lessor of a vehicle for

46-13    which a notice of nonpayment has been issued is not liable if, not

46-14    later than the 30th day after the date the notice of nonpayment is

46-15    mailed, the registered owner provides to the authority a copy of

46-16    the lease agreement covering the vehicle on the date of the

46-17    nonpayment.  The name and address of the lessee must be clearly

46-18    legible.  If the lessor timely provides the required information,

46-19    the lessee of the vehicle on the date of the violation is

46-20    considered to be the owner of the vehicle for purposes of this

46-21    section.  The lessee is subject to prosecution for failure to pay

46-22    the proper toll if the authority sends a notice of nonpayment to

46-23    the lessee by first-class mail not later than the 30th day after

46-24    the date of the receipt of the information from the lessor.

46-25          Sec. 366.179.  USE AND RETURN OF TRANSPONDERS.  (a)  For

46-26    purposes of this section, a transponder is a device placed on or

46-27    within an automobile that is capable of transmitting or receiving

46-28    information used to assess or collect tolls.  A transponder is

46-29    insufficiently funded if there is no money in the account for which

46-30    the transponder was issued.

46-31          (b)  Any law enforcement or peace officer of the Department

46-32    of Public Safety may seize a stolen or insufficiently funded

46-33    transponder and return it to the authority that issued the

46-34    transponder.  An insufficiently funded transponder may not be

46-35    seized before the 30th day after the date that an authority has

46-36    sent a notice of delinquency to the holder of the account.

46-37          Sec. 366.180.  CONTROLLED ACCESS TO TURNPIKE PROJECTS.

46-38    (a)  An authority may designate a turnpike project or a portion of

46-39    a project as a controlled-access toll road.

46-40          (b)  An authority by order may:

46-41                (1)  prohibit the use of or access to or from a

46-42    turnpike project by a motor vehicle, bicycle, other vehicle, or a

46-43    pedestrian;

46-44                (2)  deny access to or from:

46-45                      (A)  its turnpike projects;

46-46                      (B)  real property adjacent to its turnpike

46-47    projects; or

46-48                      (C)  a street, road, alley, highway, or other

46-49    public or private way intersecting its turnpike projects;

46-50                (3)  designate locations on its turnpike projects at

46-51    which access to or from the toll road is permitted;

46-52                (4)  control, restrict, and determine the type and

46-53    extent of access permitted at a designated location of access to

46-54    the turnpike projects; or

46-55                (5)  erect appropriate protective devices to preserve

46-56    the utility, integrity, and use of its turnpike projects.

46-57          (c)  Denial of access to or from a segment of the state

46-58    highway system is subject to the approval of the commission.

46-59          Sec. 366.181.  PROMOTION OF TOLL ROADS.  An authority may

46-60    promote the use of its turnpike projects by appropriate means,

46-61    including advertising or marketing as the authority determines

46-62    appropriate.

46-63          Sec. 366.182.  OPERATION OF TURNPIKE PROJECT; PEACE OFFICERS.

46-64    (a)  An authority shall operate its turnpike projects through a

46-65    force of toll-takers and other employees of the authority or

46-66    through services contracted under Subsection (b) or (c).

46-67          (b)  An authority may enter into an agreement with one or

46-68    more persons to provide, on terms and conditions approved by the

46-69    authority, personnel and services to design, construct, operate,

 47-1    maintain, expand, enlarge, or extend the authority's turnpike

 47-2    projects.

 47-3          (c)  An authority may contract with any state or local

 47-4    government entity for the services of peace officers of that

 47-5    agency.

 47-6          Sec. 366.183.  AUDIT.  An authority shall have a certified

 47-7    public accountant audit the authority's books and accounts at least

 47-8    annually.  The cost of the audit may be treated as part of the cost

 47-9    of construction or operation of a turnpike project.

47-10          Sec. 366.184.  DISADVANTAGED BUSINESSES.  (a)  Consistent

47-11    with general law, an authority shall:

47-12                (1)  set goals for the award of contracts to

47-13    disadvantaged businesses and attempt to meet the goals;

47-14                (2)  attempt to identify disadvantaged businesses that

47-15    provide or have the potential to provide supplies, materials,

47-16    equipment, or services to the authority; and

47-17                (3)  give disadvantaged businesses full access to the

47-18    authority's contract bidding process, inform the businesses about

47-19    the process, offer the businesses assistance concerning the

47-20    process, and identify barriers to the businesses' participation in

47-21    the process.

47-22          (b)  This section does not exempt an authority from

47-23    competitive bidding requirements provided by other law.

47-24          Sec. 366.185.  COMPETITIVE BIDDING.  (a)  A contract made by

47-25    an authority that requires the expenditures of public funds for the

47-26    construction or maintenance of a turnpike project must be let by a

47-27    competitive bidding procedure in which the contract is awarded to

47-28    the lowest responsible bidder that complies with the authority's

47-29    criteria.

47-30          (b)  The authority shall adopt rules governing the award of

47-31    contracts through competitive bidding.

47-32             (Sections 366.186-366.250 reserved for expansion

47-33                         SUBCHAPTER F.  GOVERNANCE

47-34          Sec. 366.251.  BOARD OF DIRECTORS.  (a)  An authority is

47-35    governed by a board of directors.

47-36          (b)  The commissioners court of each county of the authority

47-37    shall appoint one director to serve on the board.  The governor

47-38    shall appoint three directors to serve on the board.

47-39          (c)  Directors shall be divided into two groups.  To the

47-40    greatest degree possible, each group shall contain an equal number

47-41    of directors.  Directors shall serve terms of two years, except

47-42    that one group of directors of the initial board of an authority

47-43    shall serve for a term of one year.

47-44          (d)  Two directors appointed by the governor must have

47-45    resided in a county of the authority for at least one year before

47-46    the person's appointment.  One director appointed by the governor

47-47    must have resided in Parker County, Ellis County, or Johnson County

47-48    for at least one year before the person's appointment.  Each

47-49    director appointed by a commissioners court must have resided in

47-50    that county for at least one year before the person's appointment.

47-51          (e)  All appointments to the board shall be made without

47-52    regard to race, color, disability, sex, religion, age, or national

47-53    origin.

47-54          (f)  An elected official is not eligible to serve as a

47-55    director.

47-56          (g)  A vacancy in a position shall be filled promptly by the

47-57    entity that made the appointment.

47-58          (h)  Each director has equal status and may vote.

47-59          (i)  The board of an authority shall select one director as

47-60    the presiding officer of the board to serve in that capacity until

47-61    the person's term as a director expires.  The board shall elect one

47-62    director as assistant presiding officer.  The board shall select a

47-63    secretary and treasurer, neither of whom need be a director.

47-64          (j)  The vote of a majority attending a board meeting is

47-65    necessary for any action taken by the board.  If a vacancy exists

47-66    on a board, the majority of directors serving on the board is a

47-67    quorum.

47-68          Sec. 366.252.  CONFLICT OF INTEREST.  (a)  A person is not

47-69    eligible to serve on the board of an authority if the person or the

 48-1    person's spouse:

 48-2                (1)  is registered, certified, or licensed by an

 48-3    occupational regulatory agency in the field of toll road

 48-4    construction, maintenance, or operation;

 48-5                (2)  is employed by or participates in the management

 48-6    of a business entity or other organization regulated by the

 48-7    authority or receiving money from the authority;

 48-8                (3)  owns or controls, directly or indirectly, more

 48-9    than a 10 percent interest in a business entity or other

48-10    organization regulated by or receiving money from the authority,

48-11    other than compensation for acquisition of turnpike right-of-way;

48-12                (4)  uses or receives a substantial amount of tangible

48-13    goods, services, or money from the authority, other than

48-14    compensation or reimbursement authorized by law for board

48-15    membership, attendance, or expenses, or for compensation for

48-16    acquisition of turnpike right-of-way;

48-17                (5)  is an officer, employee, or paid consultant of a

48-18    Texas trade association in the field of road construction,

48-19    maintenance, or operation; or

48-20                (6)  is required to register as a lobbyist under

48-21    Chapter 305, Government Code, because of the person's activities

48-22    for compensation on behalf of a profession related to the operation

48-23    of the authority.

48-24          (b)  A person may not act as the general counsel to an

48-25    authority if the person is required to register as a lobbyist under

48-26    Chapter 305, Government Code, because of the person's activities

48-27    for compensation on behalf of a profession related to the operation

48-28    of the authority.

48-29          (c)  In this section, "Texas trade association" means a

48-30    nonprofit, cooperative, and voluntarily joined association of

48-31    business or professional competitors in this state designed to

48-32    assist its members and its industry or profession in dealing with

48-33    mutual business or professional problems and in promoting their

48-34    common interests.

48-35          Sec. 366.253.  SURETY BONDS.  (a)  Before beginning a term,

48-36    each director shall execute a surety bond in the amount of $25,000,

48-37    and the secretary and treasurer shall execute a surety bond in the

48-38    amount of $50,000.

48-39          (b)  Each surety bond must be:

48-40                (1)  conditioned on the faithful performance of the

48-41    duties of office;

48-42                (2)  executed by a surety company authorized to

48-43    transact business in this state; and

48-44                (3)  filed with the secretary of state's office.

48-45          (c)  The authority shall pay the expense of the bonds.

48-46          Sec. 366.254.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

48-47    removal of a director from the board if the director:

48-48                (1)  did not have at the time of appointment the

48-49    qualifications required by Section 366.251(d);

48-50                (2)  whether at the time of appointment or at any time

48-51    during the director's term, is ineligible under Section 366.251(f)

48-52    or 366.252 to serve as a director;

48-53                (3)  cannot discharge the director's duties for a

48-54    substantial part of the term for which the director is appointed

48-55    because of illness or disability; or

48-56                (4)  is absent from more than half of the regularly

48-57    scheduled board meetings that the director is eligible to attend

48-58    during a calendar year unless the absence is excused by majority

48-59    vote of the board.

48-60          (b)  The validity of an action of the board is not affected

48-61    by the fact that it is taken when a ground for removal of a

48-62    director exists.

48-63          (c)  If the administrative head of the authority has

48-64    knowledge that a potential ground for removal exists, that person

48-65    shall notify the presiding officer of the board of the ground.  The

48-66    presiding officer shall then notify the person that appointed the

48-67    director that a potential ground for removal exists.

48-68          Sec. 366.255.  COMPENSATION OF DIRECTOR.  Each director is

48-69    entitled to reimbursement for the director's actual expenses

 49-1    necessarily incurred in the performance of the director's duties.

 49-2    A director is not entitled to any additional compensation for the

 49-3    director's services.

 49-4          Sec. 366.256.  EVIDENCE OF AUTHORITY ACTIONS.  Actions of an

 49-5    authority are the actions of its board and may be evidenced in any

 49-6    legal manner, including a board resolution.

 49-7          Sec. 366.257.  PUBLIC ACCESS.  An authority shall:

 49-8                (1)  make and implement policies that provide the

 49-9    public with a reasonable opportunity to appear before the board to

49-10    speak on any issue under the jurisdiction of the authority; and

49-11                (2)  prepare and maintain a written plan that describes

49-12    how an individual who does not speak English or who has a physical,

49-13    mental, or developmental disability may be provided reasonable

49-14    access to the authority's programs.

49-15          Sec. 366.258.  INDEMNIFICATION.  (a)  An authority may

49-16    indemnify one or more of its directors or officers for necessary

49-17    expenses and costs, including attorney's fees, incurred by the

49-18    directors or officers in connection with any claim asserted against

49-19    the directors or officers in their respective capacities as

49-20    directors or officers.

49-21          (b)  If an authority does not fully indemnify a director or

49-22    officer as provided by Subsection (a), the court in a proceeding in

49-23    which any claim against the director or officer is asserted or any

49-24    court with jurisdiction of an action instituted by the director or

49-25    officer on a claim for indemnity may assess indemnity against the

49-26    authority, its receiver, or trustee only if the court finds that,

49-27    in connection with the claim, the director or officer is not guilty

49-28    of negligence or misconduct.

49-29          (c)  A court may not assess indemnity under Subsection (b)

49-30    for an amount paid by the director or officer to the authority.

49-31          (d)  This section applies to a current or former director or

49-32    officer of the authority.

49-33          Sec. 366.259.  PURCHASE OF LIABILITY INSURANCE.  (a)  An

49-34    authority shall insure its officers and employees from liability

49-35    arising from the use, operation, or maintenance of equipment that

49-36    is used or may be used in connection with the laying out,

49-37    construction, or maintenance of the authority's turnpike projects.

49-38          (b)  Insurance coverage under this section must be provided

49-39    by the purchase of a policy of liability insurance from a reliable

49-40    insurance company authorized to do business in this state.  The

49-41    form of the policy must be approved by the commissioner of

49-42    insurance.

49-43          (c)  This section is not a waiver of immunity of the

49-44    authority or the counties in an authority from liability for the

49-45    torts or negligence of an officer or employee of an authority.

49-46          (d)  In this section, "equipment" includes an automobile,

49-47    motor truck, trailer, aircraft, motor grader, roller, tractor,

49-48    tractor power mower, and other power equipment.

49-49          Sec. 366.260.  CERTAIN CONTRACTS AND SALES PROHIBITED.

49-50    (a)  A director, agent, or employee of an authority may not:

49-51                (1)  contract with the authority; or

49-52                (2)  be directly or indirectly interested in:

49-53                      (A)  a contract with the authority; or

49-54                      (B)  the sale of property to the authority.

49-55          (b)  A person who violates Subsection (a) is liable for a

49-56    civil penalty to the authority not to exceed $1,000.

49-57          (c)  Subsection (a) does not apply to the sale of turnpike

49-58    right-of-way to an authority.

49-59          Sec. 366.261.  STRATEGIC PLANS AND ANNUAL REPORTS.  (a)  An

49-60    authority shall make a strategic plan for its operations.  A

49-61    majority of the commissioners courts of the counties composing the

49-62    authority shall by concurrent resolution determine the types of

49-63    information required to be included in the strategic plan.  Each

49-64    even-numbered year, an authority shall issue a plan covering the

49-65    next five fiscal years, beginning with the next odd-numbered fiscal

49-66    year.

49-67          (b)  Not later than March 31 of each year, an authority shall

49-68    file with the commissioners court of each county of the authority a

49-69    written report on the authority's activities describing all

 50-1    turnpike revenue bond issuances anticipated for the coming year,

 50-2    the financial condition of the authority, all project schedules,

 50-3    and the status of the authority's performance under the most recent

 50-4    strategic plan.  At the invitation of a commissioners court of a

 50-5    county in the authority, the board and the administrative head of

 50-6    an authority shall appear before the commissioners court to present

 50-7    the report and receive questions and comments.

 50-8          (c)  The authority shall give notice to the commissioners

 50-9    court of each county of the authority not later than the 90th day

50-10    before the date of issuance of revenue bonds.

50-11          Sec. 366.262.  MEETINGS BY TELEPHONE CONFERENCE CALL.

50-12    (a)  Chapter 551, Government Code, does not prohibit any open or

50-13    closed meeting of the board, a committee of the board, or the

50-14    staff, or any combination of the board or staff, from being held by

50-15    telephone conference call.

50-16          (b)  A telephone conference call meeting is subject to the

50-17    notice requirements applicable to other meetings.

50-18          (c)  Notice of a telephone conference call meeting that by

50-19    law must be open to the public must specify the location of the

50-20    meeting.  The location must be a conference room of the authority

50-21    or other facility in a county of the authority that is accessible

50-22    to the public.

50-23          (d)  Each part of the telephone conference call meeting that

50-24    by law must be open to the public shall be audible to the public at

50-25    the location specified in the notice and shall be tape-recorded or

50-26    documented by written minutes.  On conclusion of the meeting, the

50-27    tape recording or the written minutes of the meeting shall be made

50-28    available to the public.

50-29             (Sections 366.263-366.300 reserved for expansion

50-30             SUBCHAPTER G.  AID FOR REGIONAL TURNPIKE PROJECTS

50-31          Sec. 366.301.  DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS.

50-32    (a)  To the extent permitted by the Texas Constitution, the

50-33    department may agree with an authority to provide for or contribute

50-34    to the payment of costs of financial or engineering and traffic

50-35    feasibility studies and the design, financing, acquisition,

50-36    construction, operation, or maintenance of a turnpike project or

50-37    system on terms agreed on by the commission or department, as

50-38    applicable, and the authority.  The agreement may not be

50-39    inconsistent with the rights of the bondholders or persons

50-40    operating the turnpike project under a lease or other contract.

50-41          (b)  The department may use its engineering and other

50-42    personnel, including consulting engineers and traffic engineers, to

50-43    conduct feasibility studies under Subsection (a).

50-44          (c)  An obligation or expense incurred by the commission or

50-45    department under this section is a part of the cost of the turnpike

50-46    project for which the obligation or expense was incurred.  Money

50-47    from the state highway fund spent under this section must be repaid

50-48    from tolls or other revenue of the turnpike project or system on

50-49    which the money from the state highway fund was expended.

50-50          (d)  The commission or department may use federal money for

50-51    any purpose described by this chapter.

50-52          Sec. 366.302.  AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE

50-53    TURNPIKE PROJECTS.  (a)  An authority may enter into an agreement

50-54    with a public or private entity, including a toll road corporation,

50-55    the United States, a state of the United States, the United Mexican

50-56    States, a state of the United Mexican States, a local governmental

50-57    entity, or another political subdivision, to permit the entity,

50-58    jointly with the authority, to study the feasibility of a turnpike

50-59    project or system or to acquire, design, finance, construct,

50-60    maintain, repair, operate, extend, or expand a turnpike project or

50-61    system.

50-62          (b)  An authority has broad discretion to negotiate

50-63    provisions in a development agreement with a private entity.  The

50-64    provisions may include provisions relating to:

50-65                (1)  the design, financing, construction, maintenance,

50-66    and operation of a turnpike project or system in accordance with

50-67    standards adopted by the authority; and

50-68                (2)  professional and consulting services to be

50-69    rendered under standards adopted by the authority in connection

 51-1    with a turnpike project or system.

 51-2          (c)  An authority may not incur a financial obligation on

 51-3    behalf of, or otherwise guarantee the obligations of, a private

 51-4    entity that constructs, maintains, or operates a turnpike project

 51-5    or system.

 51-6          (d)  An authority or a county in an authority is not liable

 51-7    for any financial or other obligation of a turnpike project solely

 51-8    because a private entity constructs, finances, or operates any part

 51-9    of a turnpike project or system.

51-10          (e)  An authority may authorize the investment of public and

51-11    private money, including debt and equity participation, to finance

51-12    a function described by this section.

51-13          Sec. 366.303.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL

51-14    GOVERNMENTAL ENTITIES.  (a)  A local governmental entity other than

51-15    a nonprofit corporation may, consistent with the Texas

51-16    Constitution, issue bonds or enter into and make payments under

51-17    agreements with an authority to acquire, construct, maintain, or

51-18    operate a turnpike project or system.  The entity may levy and

51-19    collect taxes to pay the interest on the bonds and to provide a

51-20    sinking fund for the redemption of the bonds.

51-21          (b)  In addition to the powers provided by Subsection (a), a

51-22    local governmental entity may, within any applicable constitutional

51-23    limitations, agree with an authority to issue bonds or enter into

51-24    and make payments under an agreement to acquire, construct,

51-25    maintain, or operate any portion of a turnpike project or system of

51-26    that authority.

51-27          (c)  To make payments under an agreement under Subsection

51-28    (b), to pay the interest on bonds issued under Subsection (b), or

51-29    to provide a sinking fund for the bonds or the contract, a local

51-30    governmental entity may:

51-31                (1)  pledge revenue from any available source,

51-32    including annual appropriations;

51-33                (2)  levy and collect taxes; or

51-34                (3)  provide for a combination of Subdivisions (1) and

51-35    (2).

51-36          (d)  The term of an agreement under this section may not

51-37    exceed 40 years.

51-38          (e)  Any election required to permit action under this

51-39    subchapter must be held in conformity with Chapter 1, Title 22,

51-40    Revised Statutes, or other law applicable to the local governmental

51-41    entity.

51-42          Sec. 366.304.  ADDITIONAL AGREEMENTS OF AUTHORITY.  An

51-43    authority may enter into any agreement necessary or convenient to

51-44    achieve the purposes of this subchapter.

51-45          SECTION 7.24.  Subchapter F, Chapter 411, Government Code, is

51-46    amended by adding Section 411.132 to read as follows:

51-47          Sec. 411.132.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

51-48    REGIONAL TOLLWAY AUTHORITIES.  (a)  A regional tollway authority

51-49    governed by Chapter 366, Transportation Code, is entitled to obtain

51-50    from the department criminal history record information maintained

51-51    by the department that pertains to a person who is:

51-52                (1)  employed by the regional tollway authority; or

51-53                (2)  an applicant for employment with the regional

51-54    tollway authority.

51-55          (b)  Criminal history record information obtained under

51-56    Subsection (a) may not be released or disclosed to any person

51-57    except in a criminal proceeding, in a hearing conducted by the

51-58    regional tollway authority, on court order, or with the consent of

51-59    the person who is the subject of the criminal history record

51-60    information.

51-61          SECTION 7.25.  (a)  Notwithstanding Section 366.031,

51-62    Transportation Code, as added by this Act, the North Texas Tollway

51-63    Authority is established as a regional tollway authority under

51-64    Chapter 366, Transportation Code, as added by this Act.

51-65          (b)  The North Texas Tollway Authority consists of all

51-66    territory in Collin, Dallas, Denton, and Tarrant counties.  The

51-67    operations of the authority may extend to other counties as

51-68    permitted under Section 366.161, Transportation Code, as added by

51-69    this Act, and the jurisdiction of the authority may be expanded to

 52-1    include other counties under Section 366.031, Transportation Code,

 52-2    as added by this Act.  As of the effective date of this Act, Cooke,

 52-3    Ellis, Fannin, Grayson, Hunt, Johnson, Kaufman, Parker, Rockwall,

 52-4    and Wise counties are the only counties that meet the geographical

 52-5    qualifications for future inclusion in the North Texas Tollway

 52-6    Authority.

 52-7          (c)  Notwithstanding Section 366.251, Transportation Code, as

 52-8    added by this Act, the initial board of directors of the North

 52-9    Texas Tollway Authority is composed  of nine directors as follows:

52-10                (1)  three directors appointed by the governor;

52-11                (2)  one director appointed by the commissioners court

52-12    of each county in the authority; and

52-13                (3)  the county judges of two of the counties of the

52-14    authority, as agreed by a majority of the county judges of the

52-15    authority.

52-16          (d)  The terms of the initial directors of the North Texas

52-17    Tollway Authority begin on September 1, 1997.  The county judges

52-18    serving as initial directors shall each serve a one-year term.  At

52-19    the expiration of that term, the seats held by the county judges

52-20    are not refilled, and the number of directors composing the board

52-21    is reduced to seven but may be increased if additional counties

52-22    join the authority.

52-23          (e)  One of the directors of the North Texas Tollway

52-24    Authority appointed to the initial board by the governor serves a

52-25    one-year term.  Each successor to that director shall be appointed

52-26    by the governor for a two-year term.

52-27          (f)  The two directors appointed to the initial board of the

52-28    North Texas Tollway Authority by the commissioners courts of the

52-29    counties whose county judges serve as initial directors each serve

52-30    a one-year term.  Each successor to those directors shall be

52-31    appointed for a two-year term.  The remaining initial directors

52-32    serve two-year terms.

52-33          SECTION 7.26.  Sections 361.003, 361.038, 361.039, 361.040,

52-34    361.041, 361.044, 361.045, 361.047, 361.048, 361.139, 361.190, and

52-35    361.284, and Subsection (e), Section 361.331, Transportation Code,

52-36    are repealed.

52-37           ARTICLE 8.  TRANSITION, EFFECTIVE DATE, AND EMERGENCY

52-38          SECTION 8.01.  (a)  The Texas Turnpike Authority is abolished

52-39    and the Texas Turnpike Authority division of the Texas Department

52-40    of Transportation is created on the effective date of this Act.

52-41    Except as provided by Subsections (b) and (c) of this section, all

52-42    assets, rights, and obligations of the Texas Turnpike Authority are

52-43    transferred to the division.

52-44          (b)  The North Texas Tollway Authority shall succeed to all

52-45    assets, rights, and other property of the Texas Turnpike Authority

52-46    located in Collin, Dallas, Denton, or Tarrant County, including all

52-47    assets and rights that relate to the Dallas North Tollway, the

52-48    Addison Airport Toll Tunnel, the President George Bush Turnpike,

52-49    the Mountain Creek Lake Bridge, all existing and proposed

52-50    extensions to those projects, the Texas Turnpike Authority

52-51    administration building, and all other facilities, improvements,

52-52    leaseholds, funds, accounts, and investments related to a project

52-53    listed in this subsection.

52-54          (c)  The North Texas Tollway Authority shall assume and

52-55    become liable for all duties and obligations of the Texas Turnpike

52-56    Authority related to the assets, rights, and properties transferred

52-57    under Subsection (b) of this section, including contracts and bonds

52-58    secured by the revenues of the assets.  The North Texas Tollway

52-59    Authority is obligated to comply with all the assumed obligations

52-60    to the same extent as the Texas Turnpike Authority.

52-61          (d)  An employee of the Texas Turnpike Authority may elect to

52-62    become an employee of either the Texas Turnpike Authority division

52-63    of the Texas Department of Transportation or the North Texas

52-64    Tollway Authority on the effective date of this Act, subject to the

52-65    employment openings and requirements of those entities.

52-66          (e)  A rule or regulation adopted by the Texas Turnpike

52-67    Authority relating to the operation of a turnpike in Collin,

52-68    Dallas, Denton, or Tarrant County before the effective date of this

52-69    Act that is not inconsistent with this Act remains in effect as a

 53-1    rule or regulation of the North Texas Tollway Authority until

 53-2    superseded by action of that entity.

 53-3          SECTION 8.02.  As additional consideration for the transfer

 53-4    of the properties described in Subsection (b) of Section 8.01 of

 53-5    this Act, the North Texas Tollway Authority shall pay to the Texas

 53-6    Department of Transportation an amount to be agreed on by the

 53-7    authority and the department not later than October 1, 1997.  In

 53-8    determining the amount, the authority and the department shall

 53-9    ensure that following the payment, the authority is in compliance

53-10    with all bond resolutions, bond indentures, credit agreements, and

53-11    all other agreements assumed by the authority and that reserves

53-12    held by the authority as required under or in connection with the

53-13    resolutions, indentures, credit agreements, and other agreements

53-14    shall be maintained at a level consistent with the Texas Turnpike

53-15    Authority's historical practices.

53-16          SECTION 8.03.  The North Texas Tollway Authority is a

53-17    successor agency to the Texas Turnpike Authority for all purposes,

53-18    including for the purpose of Section 52-b, Article III, Texas

53-19    Constitution, concerning all assets, rights, other property,

53-20    duties, and obligations transferred to the authority under

53-21    Subsection (b) of Section 8.01 of this Act.  The Texas Department

53-22    of Transportation is a successor to the Texas Turnpike Authority

53-23    for all purposes concerning assets, rights, other property, duties,

53-24    and obligations not transferred to the North Texas Tollway

53-25    Authority under Subsection (b) of Section 8.01 of this Act.  Any

53-26    existing agreement by and between the Texas Turnpike Authority and

53-27    the state, the Texas Transportation Commission, the Texas

53-28    Department of Transportation, the Federal Highway Administration,

53-29    the United States Department of Transportation, any other federal

53-30    or state governmental entity, or any local governmental entity that

53-31    pertains to an asset, right, or obligation transferred to the North

53-32    Texas Tollway Authority under this Act is binding on, benefits, and

53-33    is fully enforceable by and against the North Texas Tollway

53-34    Authority as successor to the Texas Turnpike Authority.

53-35          SECTION 8.04.  The changes in law made by this Act in the

53-36    qualifications of members of the Texas Transportation Commission or

53-37    the Texas Motor Vehicle Commission do not affect the entitlement of

53-38    a member serving on one of those commissions before September 1,

53-39    1997, to continue to carry out the functions of the commission for

53-40    the remainder of the member's term.  The changes in law apply only

53-41    to a member appointed on or after September 1, 1997.  This Act does

53-42    not prohibit a person who is a member of the Texas Transportation

53-43    Commission on September 1, 1997, from being reappointed to that

53-44    commission if the person has the qualifications required for a

53-45    member under Chapter 201, Transportation Code, as amended by this

53-46    Act.  This Act does not prohibit a person who is a member of the

53-47    Texas Motor Vehicle Commission on September 1, 1997, from being

53-48    reappointed to that commission if the person has the qualifications

53-49    required for a member under the Texas Motor Vehicle Commission Code

53-50    (Article 4413(36), Vernon's Texas Civil Statutes), as amended by

53-51    this Act.

53-52          SECTION 8.05.  (a)  The governor shall appoint the six

53-53    directors to the board of directors of the Texas Turnpike Authority

53-54    division of the Texas Department of Transportation for initial

53-55    terms as follows:  two to serve terms expiring February 15, 1999,

53-56    two to serve terms expiring February 15, 2001, and two to serve

53-57    terms expiring February 15, 2003.

53-58          (b)  Until a majority of the board of directors of the Texas

53-59    Turnpike Authority division of the Texas Department of

53-60    Transportation has been appointed and has qualified, the members of

53-61    the board of directors of the Texas Turnpike Authority serving

53-62    immediately before the effective date of this section shall

53-63    exercise the authority granted to the board of directors of the

53-64    Texas Turnpike Authority division of the Texas Department of

53-65    Transportation.  When a majority of the members of the board of

53-66    directors of the Texas Turnpike Authority division of the Texas

53-67    Department of Transportation has been appointed and has qualified

53-68    and until all appointees have taken office, a quorum of the board

53-69    is a majority of the number of directors who have qualified.

 54-1          SECTION 8.06.  This Act takes effect September 1, 1997.

 54-2          SECTION 8.07.  The importance of this legislation and the

 54-3    crowded condition of the calendars in both houses create an

 54-4    emergency and an imperative public necessity that the

 54-5    constitutional rule requiring bills to be read on three several

 54-6    days in each house be suspended, and this rule is hereby suspended.

 54-7                                 * * * * *