77R15048 JD-F                          
         By Shapiro, et al.                                     S.B. No. 342
         Substitute the following for S.B. No. 342:
         By Alexander                                       C.S.S.B. No. 342
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the participation of the Texas Department of
 1-3     Transportation in the acquisition, construction, maintenance, and
 1-4     operation of toll facilities.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 222.103, Transportation Code, is amended
 1-7     to read as follows:
 1-8           Sec. 222.103.  COST PARTICIPATION. (a)  The department may
 1-9     participate, by spending money from any available source, in the
1-10     cost of the acquisition, construction, maintenance, or operation of
1-11     a toll facility of a public or private entity on terms and
1-12     conditions established by the commission.  The commission:
1-13                 (1)  may require the repayment of any money spent by
1-14     the department for the cost of a toll facility of a public entity;
1-15     and
1-16                 (2)  shall require the repayment of any money spent by
1-17     the department for the cost of a toll facility of a private
1-18     entity[, including requirements for repayment].
1-19           (b)  Money repaid as required by the commission shall be
1-20     deposited to the credit of the fund from which the expenditure was
1-21     made.
1-22           (c)  A bond or other debt obligation issued by a public or
1-23     private entity to finance the cost of a toll facility in which the
1-24     department participates is an obligation of the issuing entity and
 2-1     is not an obligation of this state.
 2-2           (d)  [An entity receiving cost participation from the
 2-3     department under this section is a successor agency to the Texas
 2-4     Turnpike Authority for the purposes of Section 52-b, Article III,
 2-5     Texas Constitution.]
 2-6           [(c)]  On the request of a member of the legislature, the
 2-7     department shall provide the member a status report on all highway
 2-8     construction projects, by legislative district, that are under
 2-9     contract or awaiting funding.  The report shall include projects
2-10     that would be funded in any manner by state, federal, or toll
2-11     funds.
2-12           (e) [(d)]  On the request of a member of the legislature, not
2-13     later than the 90th day before the date a loan is granted or an
2-14     expenditure is made by the department for a project under this
2-15     section, the department shall notify each member of the legislature
2-16     that represents any part of the area affected by the project of the
2-17     status of the project and how any other project in any other
2-18     district would be affected.
2-19           (f)  This section applies to any participation by the
2-20     department in the cost of a project under Chapter 284, 361, or 366.
2-21           (g)  The commission shall adopt rules to implement Subsection
2-22     (a).
2-23           (h)  Money granted by the department each federal fiscal year
2-24     under this section may not exceed 30 percent of the obligation
2-25     authority under the federal-aid highway program that is distributed
2-26     to this state in that year.
2-27           (i)  Any project that uses money that is granted or loaned
 3-1     from constitutionally dedicated funds for the construction or
 3-2     maintenance of a project must be let by a competitive bidding
 3-3     procedure in which the contract is awarded to the lowest
 3-4     responsible bidder.
 3-5           (j)  Notwithstanding Subsection (i), the Texas Turnpike
 3-6     Authority division of the department, or a successor agency, may
 3-7     enter into exclusive development agreements on four projects before
 3-8     March 1, 2004.  This subsection expires March 1, 2004.
 3-9           SECTION 2.  Subchapter A, Chapter 361, Transportation Code,
3-10     is amended by adding Sections 361.003 and 361.005 to read as
3-11     follows:
3-12           Sec. 361.003.  REGIONAL TOLLWAY AUTHORITIES. (a)  The
3-13     commission, on the request of a district office of the department,
3-14     may create a regional tollway authority for turnpike projects
3-15     located in that district if a tollway authority does not exist in
3-16     that area.
3-17           (b)  If the commission establishes a regional tollway
3-18     authority under Subsection (a), the regional tollway authority is
3-19     subject to this chapter and has the powers of the authority under
3-20     this chapter.
3-21           (c)  Each year, a regional tollway authority established
3-22     under Subsection (a) shall transfer to the Texas Mobility Fund any
3-23     revenue that exceeds the sum of the authority's debt service and
3-24     coverage requirements of any bond indenture and the costs necessary
3-25     to operate and maintain turnpike projects of the authority, unless
3-26     that revenue is to be used for the expansion of a turnpike project
3-27     or system.
 4-1           Sec. 361.005.   TRANSFER OF BOARD'S POWERS AND DUTIES. (a)
 4-2     The powers and duties of the board under this chapter or other law
 4-3     are transferred to the commission.
 4-4           (b)  A reference in law to the board is a reference to the
 4-5     commission.
 4-6           SECTION 3.  Subsection (b), Section 361.184, Transportation
 4-7     Code, is amended to read as follows:
 4-8           (b)  The board may transfer, or direct the authority to
 4-9     transfer, into the project revolving fund money from any
4-10     permissible source, including:
4-11                 (1)  money from a surplus fund established for a
4-12     turnpike project if the remainder of the surplus fund is not less
4-13     than any minimum amount required by the trust agreement to be
4-14     retained for that project;
4-15                 (2)  money received under Subchapter I or from a
4-16     transfer of a turnpike project under Subchapter H;
4-17                 (3)  money received [advances] from the state highway
4-18     fund [if the advances are repaid as required by Section 52-b,
4-19     Article III, Texas Constitution]; and
4-20                 (4)  contributions or assistance from the United
4-21     States, another state, a political subdivision of this state, the
4-22     United Mexican States, or a political subdivision of the United
4-23     Mexican States.
4-24           SECTION 4.  Section 361.191, Transportation Code, is amended
4-25     to read as follows:
4-26           Sec. 361.191.  EXPENDITURE OF MONEY AUTHORIZED BY DEPARTMENT
4-27     OF TRANSPORTATION. (a)  The Texas Department of Transportation may
 5-1     provide for the expenditure of money for the cost of the
 5-2     acquisition, construction, maintenance, or operation of a turnpike
 5-3     project by the authority.  The department may require the authority
 5-4     to repay money provided under this section from toll revenue or
 5-5     other sources on terms established by the commission.
 5-6           (b)  Money repaid as required by the department shall be
 5-7     deposited to the credit of the fund from which the money was
 5-8     provided. [If money from the state highway fund is spent under this
 5-9     section, the fund shall be repaid from tolls or other turnpike
5-10     revenue.]
5-11           SECTION 5.  Subsections (e) and (f), Section 362.004,
5-12     Transportation Code, are amended to read as follows:
5-13           (e)  If the department spends money [from the state highway
5-14     fund is spent] under an agreement under this section, the
5-15     commission may require the authority to [shall] repay the money
5-16     [fund] from toll revenue or other sources on terms established by
5-17     the commission [tolls or other turnpike revenue].  Money repaid as
5-18     required by the commission shall be deposited to the credit of the
5-19     fund from which the expenditure was made.
5-20           (f)  If the commission finds that the state highway system,
5-21     the state's transportation needs, and overall mobility of the
5-22     traveling public will be enhanced, the commission may enter into an
5-23     agreement with the authority providing for the contribution
5-24     [advance] of money [funds] to the authority to be used for any
5-25     purpose of the revolving fund established and administered by the
5-26     authority under Section 361.184.  The commission may require the
5-27     repayment of[, provided that any] money contributed under this
 6-1     subsection [advanced out of the state highway fund shall be repaid
 6-2     to the fund] from toll revenue or other sources on terms prescribed
 6-3     by the commission [tolls or other turnpike revenue].  Money repaid
 6-4     as required by the commission shall be deposited to the credit of
 6-5     the fund from which the expenditure was made.
 6-6           SECTION 6.  Subsection (b), Section 366.174, Transportation
 6-7     Code, is amended to read as follows:
 6-8           (b)  An authority may transfer into its revolving fund money
 6-9     from any permissible source, including:
6-10                 (1)  money from a turnpike project if the transfer does
6-11     not diminish the money available for the project or the system, if
6-12     any, of which it is a part to less than an amount required to be
6-13     retained by the bond proceedings pertaining to the project or
6-14     system;
6-15                 (2)  money received by the authority from any source
6-16     and not otherwise committed, including money from the transfer of a
6-17     turnpike project or system or sale of authority assets;
6-18                 (3)  money received from the state highway fund
6-19     [advances authorized under Section 52-b, Article III, Texas
6-20     Constitution]; and
6-21                 (4)  contributions, loans, grants, or assistance from
6-22     the United States, another state, a political subdivision of this
6-23     state, a foreign governmental entity, including the United Mexican
6-24     States or a state of the United Mexican States, a local
6-25     governmental entity, any private enterprise, or any person.
6-26           SECTION 7.  Subsection (c), Section 366.301, Transportation
6-27     Code, is amended to read as follows:
 7-1           (c)  An obligation or expense incurred by the commission or
 7-2     department under this section is a part of the cost of the turnpike
 7-3     project for which the obligation or expense was incurred.  The
 7-4     commission or department may require money contributed by the
 7-5     commission or department [Money from the state highway fund spent]
 7-6     under this section to [must] be repaid from tolls or other revenue
 7-7     of the turnpike project or system on which the money [from the
 7-8     state highway fund] was spent [expended].  Money repaid as required
 7-9     by the commission or department shall be deposited to the credit of
7-10     the fund from which the contribution was made.
7-11           SECTION 8.  Section 361.055, Transportation Code, is
7-12     repealed.
7-13           SECTION 9.  (a)  Section 222.103, Transportation Code, as
7-14     amended by this Act, applies only to cost participation by the
7-15     Texas Department of Transportation in the acquisition,
7-16     construction, maintenance, or operation of a toll facility that
7-17     occurs on or after the effective date of this Act.  Cost
7-18     participation by the Texas Department of Transportation in the
7-19     acquisition, construction, maintenance, or operation of a toll
7-20     facility under Section 222.103, Transportation Code, that occurred
7-21     before the effective date of this Act is governed by Section
7-22     222.103 of that code, including any requirement of repayment, as it
7-23     existed immediately before the effective date of this Act, and the
7-24     former law is continued in effect for that purpose.
7-25           (b)  Subsection (b), Section 361.184, Transportation Code, as
7-26     amended by this Act, applies only to a transfer of money from the
7-27     state highway fund by or at the direction of the board of directors
 8-1     of the Texas Turnpike Authority division of the Texas Department of
 8-2     Transportation under Section 361.184, Transportation Code, that
 8-3     occurs on or after the effective date of this Act.  A transfer of
 8-4     money from the state highway fund under Section 361.184,
 8-5     Transportation Code, that occurred before the effective date of
 8-6     this Act is governed by Section 361.184 of that code, including any
 8-7     requirement of repayment, as it existed immediately before the
 8-8     effective date of this Act, and the former law is continued in
 8-9     effect for that purpose.
8-10           (c)  Section 361.191, Transportation Code, as amended by this
8-11     Act, applies only to an expenditure of money for the acquisition,
8-12     construction, maintenance, or operation of a turnpike project that
8-13     is provided by the Texas Department of Transportation under that
8-14     section on or after the effective date of this Act.  An expenditure
8-15     of money by the Texas Department of Transportation under Section
8-16     361.191, Transportation Code, that was provided before the
8-17     effective date of this Act is governed by Section 361.191 of that
8-18     code, including any requirement of repayment, as it existed
8-19     immediately before the effective date of this Act, and the former
8-20     law is continued in effect for that purpose.
8-21           (d)  Subsections (e) and (f), Section 362.004, Transportation
8-22     Code, as amended by this Act, apply only to an expenditure or
8-23     contribution of money by the Texas Department of Transportation
8-24     under Section 362.004 of that code on or after the effective date
8-25     of this Act.  An expenditure or advance of money by the Texas
8-26     Department of Transportation under Section 362.004, Transportation
8-27     Code, that occurred before the effective date of this Act is
 9-1     governed by Section 362.004 of that code, including any requirement
 9-2     of repayment, as it existed immediately before the effective date
 9-3     of this Act, and the former law is continued in effect for that
 9-4     purpose.
 9-5           (e)  Subsection (b), Section 366.174, Transportation Code, as
 9-6     amended by this Act, applies only to the transfer of money received
 9-7     from the state highway fund by a regional tollway authority to the
 9-8     authority's revolving fund under Section 366.174 of that code on or
 9-9     after the effective date of this Act.  A transfer of money to the
9-10     revolving fund of the authority under Section 366.174,
9-11     Transportation Code, that occurred before the effective date of
9-12     this Act is governed by Section 366.174 of that code, including any
9-13     requirement of repayment, as it existed immediately before the
9-14     effective date of this Act, and the former law is continued in
9-15     effect for that purpose.
9-16           (f)  Subsection (c), Section 366.301, Transportation Code, as
9-17     amended by this Act, applies only to an obligation or expense
9-18     incurred by the Texas Transportation Commission or the Texas
9-19     Department of Transportation under Section 366.301 of that code on
9-20     or after the effective date of this Act.  An obligation or expense
9-21     incurred by the Texas Transportation Commission or the Texas
9-22     Department of Transportation under Section 366.301, Transportation
9-23     Code, imposed before the effective date of this Act is governed by
9-24     Section 366.301 of that code, including any requirement of
9-25     repayment, as it existed immediately before the effective date of
9-26     this Act, and the former law is continued in effect for that
9-27     purpose.
 10-1          SECTION 10.  (a)  Except as provided by Section 11 of this
 10-2    Act, this Act takes effect:
 10-3                (1)  on the date on which the constitutional amendment
 10-4    proposed by S.J.R. No. 16, 77th Legislature, Regular Session, 2001,
 10-5    takes effect; and
 10-6                (2)  only if S.B. No. 4, 77th Legislature, Regular
 10-7    Session, 2001, is enacted and becomes law.
 10-8          (b)  If the constitutional amendment proposed by S.J.R. No.
 10-9    16 is not approved by the voters, or if S.B. No. 4 does not become
10-10    law, this Act has no effect, except as provided by Section 11 of
10-11    this Act.
10-12          SECTION 11.  (a)  Section 361.005, Transportation Code, as
10-13    added by Section 2 of this Act, takes effect September 1, 2001.  On
10-14    September 1, 2001, the board of directors of the Texas Turnpike
10-15    Authority division of the Texas Department of Transportation is
10-16    abolished.  On that date, all powers, duties, obligations, rights,
10-17    contracts, leases, records, employees, and real or personal
10-18    property of the board are transferred to the Texas Transportation
10-19    Commission.  Unspent and unobligated appropriations and other funds
10-20    under the control of the board shall be transferred to the Texas
10-21    Transportation Commission.  Before that date, the board with the
10-22    agreement of the commission may transfer any records, employees, or
10-23    real or personal property of the board to the commission in
10-24    preparation for the transfer provided for in this section.
10-25          (b)  The abolishment of the board of directors of the Texas
10-26    Turnpike Authority division of the Texas Department of
10-27    Transportation does not affect the validity of a right, privilege,
 11-1    or obligation accrued, a contract or acquisition made, any
 11-2    liability incurred, a permit or license issued, a penalty,
 11-3    forfeiture, or punishment assessed, a rule adopted, a proceeding,
 11-4    investigation, or remedy begun, a decision made, or other action
 11-5    taken by or in connection with the board.
 11-6          (c)  All rules, policies, procedures, and decisions of the
 11-7    board of directors of the Texas Turnpike Authority division of the
 11-8    Texas Department of Transportation are continued in effect as
 11-9    rules, policies, procedures, and decisions of the Texas
11-10    Transportation Commission until superseded by a rule or other
11-11    appropriate action of the commission.
11-12          (d)  Any action or proceeding before the board of directors
11-13    of the Texas Turnpike Authority division of the Texas Department of
11-14    Transportation is transferred without change in status to the Texas
11-15    Transportation Commission, and the commission assumes, without a
11-16    change in status, the position of the board in any action or
11-17    proceeding to which the board is a party.
11-18          (e)  If S.B. No. 4, 77th Legislature, Regular Session, 2001,
11-19    is enacted and becomes law, all unspent and unobligated
11-20    appropriations and other funds transferred to the Texas
11-21    Transportation Commission under Subsection (a) of this section
11-22    shall be transferred to the Texas Mobility Fund on the effective
11-23    date of S.B. No. 4.