By:  Cain, Shapiro                                     S.B. No. 409
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the powers and duties of the Texas Turnpike Authority
 1-3     division of the Texas Department of Transportation, including the
 1-4     power of eminent domain.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subdivision (4), Section 361.001, Transportation
 1-7     Code, is amended to read as follows:
 1-8                 (4)  "Turnpike project" means a [toll] highway
 1-9     constructed, maintained, or operated under this chapter as part of
1-10     the state highway system and any improvement, extension, or
1-11     expansion to the highway and includes:
1-12                       (A)  a facility to relieve traffic congestion and
1-13     promote safety;
1-14                       (B)  a bridge, tunnel, overpass, underpass,
1-15     interchange, entrance plaza, approach, toll house, service road,
1-16     ramp, or service station;
1-17                       (C)  an administration, storage, or other
1-18     building the authority considers necessary to operate the project;
1-19     [and]
1-20                       (D)  property rights, easements, and interests
1-21     the authority acquires to construct or operate the project; and
1-22                       (E)  a parking area or structure, rest stop,
1-23     park, and any other improvement or amenity the authority considers
1-24     necessary, useful, or beneficial for the operation of a turnpike
1-25     project.
 2-1           SECTION 2.  Section 361.004, Transportation Code, is amended
 2-2     to read as follows:
 2-3           Sec. 361.004.  CONSTRUCTION COSTS.  (a)  The cost of
 2-4     acquisition, construction, improvement, extension, or expansion of
 2-5     a turnpike project under this chapter includes the cost of:
 2-6                 (1)  the actual acquisition, construction, improvement,
 2-7     extension, or expansion of the project;
 2-8                 (2)  acquisition of real property, rights-of-way,
 2-9     property rights, easements, and interests;
2-10                 (3)  machinery and equipment;
2-11                 (4)  interest before, during, and for one year after
2-12     construction, improvement, extension, or expansion;
2-13                 (5)  traffic estimates, engineering and legal services,
2-14     plans, specifications, surveys, appraisals, cost and revenue
2-15     estimates, and other expenses necessary or incident to determining
2-16     the feasibility of the construction, improvement, extension, or
2-17     expansion;
2-18                 (6)  necessary or incidental administrative, legal, and
2-19     other expenses;
2-20                 (7)  financing; and
2-21                 (8)  placement of the project in operation and expenses
2-22     related to the initial operation of the turnpike project.
2-23           (b)  Costs attributable to a turnpike project for which bonds
2-24     are issued that are incurred before the issuance of the bonds may
2-25     be reimbursed from the proceeds of the sale of the bonds.
2-26           SECTION 3.  Subsections (b) through (g), Section 361.031,
 3-1     Transportation Code, are amended to read as follows:
 3-2           (b)  The authority may perform, procure from other divisions
 3-3     of the department with the consent of the department, or procure
 3-4     from outside service providers any portion of the services the
 3-5     authority requires for:
 3-6                 (1)  right-of-way acquisition;
 3-7                 (2)  roadway finance, design, and construction;
 3-8                 (3)  environmental affairs; [or]
 3-9                 (4)  legal services;
3-10                 (5)  roadway maintenance;
3-11                 (6)  toll revenue collection; or
3-12                 (7)  traffic operations.
3-13           (c)  [With the approval of the commission, the authority may
3-14     perform, procure from other divisions of the department with the
3-15     consent of the department, or procure from outside service
3-16     providers any portion of the services the authority requires for
3-17     roadway maintenance, toll revenue collection, or traffic
3-18     operations.]
3-19           [(d)]  To perform its functions under this chapter, the
3-20     authority may use the facilities and personnel of the department in
3-21     the same manner as other divisions of the department.
3-22           (d) [(e)]  If the comptroller assigns numbers to state
3-23     agencies for accounting purposes, the comptroller shall assign a
3-24     separate agency number to the authority.
3-25           (e) [(f)]  The exercise by the authority of the powers
3-26     conferred by this chapter in the construction, operation, and
 4-1     maintenance of a turnpike project is:
 4-2                 (1)  in all respects for the benefit of the people of
 4-3     this state, for the increase of their commerce and prosperity, and
 4-4     for the improvement of their health and living conditions and
 4-5     public safety; and
 4-6                 (2)  an essential governmental function of the state.
 4-7           (f) [(g)]  The commission shall employ a director of the
 4-8     authority who serves as the authority's chief administrative
 4-9     officer.  The director serves at the pleasure of the commission.
4-10           SECTION 4.  Subsection (b), Section 361.042, Transportation
4-11     Code, is amended to read as follows:
4-12           (b)  The authority may:
4-13                 (1)  construct, maintain, repair, and operate turnpike
4-14     projects in this state;
4-15                 (2)  acquire, hold, and dispose of property in the
4-16     exercise of its powers and the performance of its duties under this
4-17     chapter;
4-18                 (3)  with the approval of the governor and the
4-19     commission, enter into contracts or operating agreements with
4-20     similar authorities or agencies of another state, including a state
4-21     of the United Mexican States;
4-22                 (4)  enter into contracts or agreements necessary or
4-23     incidental to its duties and powers under this chapter;
4-24                 (5)  employ consulting engineers, accountants,
4-25     construction and financial experts, superintendents, managers, and
4-26     other employees and agents the authority considers necessary and
 5-1     set their compensation;
 5-2                 (6)  employ attorneys to advance or defend legal
 5-3     actions pertaining to the division's activities, notwithstanding
 5-4     any other law to the contrary, including Section 402.0212,
 5-5     Government Code;
 5-6                 (7)  receive grants for the construction of a turnpike
 5-7     project and receive contributions of money, property, labor, or
 5-8     other things of value from any source to be used for the purposes
 5-9     for which the grants or contributions are made;
5-10                 (8)  adopt and enforce rules[, if the commission
5-11     concurs,] not inconsistent with this chapter for the use of any
5-12     turnpike project, including rules establishing speed limits and
5-13     maximum allowable vehicle and load weight limits for turnpike
5-14     projects; [and]
5-15                 (9)  engage in marketing, advertising, and other
5-16     activities to promote the development and use of turnpike projects
5-17     and may enter into contracts or agreements necessary to procure
5-18     marketing, advertising, or other promotional services from outside
5-19     service providers;
5-20                 (10)  with the concurrence of the commission, form,
5-21     develop, or utilize a corporation created under Chapter 431 for the
5-22     promotion and development of turnpike projects; and
5-23                 (11)  do all things necessary or appropriate to carry
5-24     out the powers expressly granted by this chapter.
5-25           SECTION 5.  Section 361.054, Transportation Code, is amended
5-26     to read as follows:
 6-1           Sec. 361.054.  AUDIT.  Notwithstanding any other law to the
 6-2     contrary, the [The] authority shall have an independent [a]
 6-3     certified public accountant audit the authority's books and
 6-4     accounts at least annually.  The cost of the audit may be treated
 6-5     as part of the cost of construction or operation of a turnpike
 6-6     project.  This section does not affect the ability of a state
 6-7     agency to audit the authority's books and accounts.
 6-8           SECTION 6.  Section 361.131, Transportation Code, is amended
 6-9     to read as follows:
6-10           Sec. 361.131.  POWERS AND PROCEDURES OF AUTHORITY IN
6-11     ACQUIRING PROPERTY.  Except as otherwise provided by this chapter,
6-12     the authority, acting by and through the board, has the same powers
6-13     and may use the same procedures as the commission or the department
6-14     in acquiring property.
6-15           SECTION 7.  Subsections (a) and (c), Section 361.132,
6-16     Transportation Code, are amended to read as follows:
6-17           (a)  The authority [board] may acquire, in the name of the
6-18     state, public or private real property it determines necessary or
6-19     convenient for the construction, expansion, enlargement, extension,
6-20     improvement, or operation of a turnpike project or for otherwise
6-21     carrying out this chapter.
6-22           (c)  The authority [board] may acquire the real property by
6-23     any method, including purchase and condemnation.  The authority
6-24     [board] may purchase public or private real property on the terms
6-25     and at the price the authority [board] and the owner consider
6-26     reasonable.
 7-1           SECTION 8.  Subsection (b), Section 361.135, Transportation
 7-2     Code, is amended to read as follows:
 7-3           (b)  The board, with the concurrence of the commission, may
 7-4     condemn real property that the authority determines is:
 7-5                 (1)  necessary or appropriate to construct or to
 7-6     efficiently operate a turnpike project;
 7-7                 (2)  necessary to restore public or private property
 7-8     damaged or destroyed, including property necessary or convenient to
 7-9     mitigate an environmental effect that directly results from the
7-10     construction, operation, or maintenance of a turnpike project;
7-11                 (3)  necessary for access, approach, service, and
7-12     interchange roads; [or]
7-13                 (4)  necessary to provide proper drainage and ground
7-14     slope for a turnpike project; or
7-15                 (5)  necessary otherwise to carry out this chapter.
7-16           SECTION 9.  Section 361.137, Transportation Code, is amended
7-17     by adding Subsection (f) to read as follows:
7-18           (f)  After a declaration of taking is filed, the case shall
7-19     proceed as any other case in eminent domain under Chapter 21,
7-20     Property Code.
7-21           SECTION 10.  Subsection (a), Section 361.141, Transportation
7-22     Code, is amended to read as follows:
7-23           (a)  The authority may not pay compensation for public real
7-24     property, parkways, streets, highways, alleys, or reservations it
7-25     takes, except for:
7-26                 (1)  parks and playgrounds; and
 8-1                 (2)  property acquired under restrictions and
 8-2     limitations requiring payment of compensation.
 8-3           SECTION 11.  Section 361.171, Transportation Code, is amended
 8-4     by adding Subsection (g) to read as follows:
 8-5           (g)  In addition to other permitted uses, the proceeds of a
 8-6     bond issue may be used to pay costs incurred before the issuance of
 8-7     the bonds, including costs of environmental review, design,
 8-8     planning, acquisition of property, relocation assistance,
 8-9     construction, and operation.
8-10           SECTION 12.  Subsection (a), Section 361.179, Transportation
8-11     Code, is amended to read as follows:
8-12           (a)  The authority may:
8-13                 (1)  impose tolls for the use of each turnpike project
8-14     and the different parts or sections of each turnpike project; and
8-15                 (2)  notwithstanding anything in Chapter 202 to the
8-16     contrary, contract with a person for the use of part of a turnpike
8-17     project or lease or sell part of a turnpike project, including the
8-18     right-of-way adjoining the paved portion, for any purpose,
8-19     including placing on the adjoining right-of-way a gas station,
8-20     garage, store, hotel, restaurant, railroad tracks, telephone line,
8-21     telecommunication line, telecommunications facilities and
8-22     equipment, and electric line, and set the terms for the use, lease,
8-23     or sale.
8-24           SECTION 13.  Subsection (a), Section 361.181, Transportation
8-25     Code, is amended to read as follows:
8-26           (a)  Notwithstanding Section 361.179 or any other provision
 9-1     of this chapter to the contrary, the authority may pay the expenses
 9-2     of studying the cost and feasibility and any other expenses
 9-3     relating to the preparation and issuance of turnpike revenue bonds
 9-4     for the construction of a proposed turnpike project by:
 9-5                 (1)  using available revenue derived from an existing
 9-6     turnpike project;
 9-7                 (2)  borrowing money and issuing interest-bearing
 9-8     evidences of indebtedness or entering into a loan agreement payable
 9-9     out of available revenue anticipated to be derived from the
9-10     operation of an existing turnpike project; [and]
9-11                 (3)  pledging available revenue anticipated to be
9-12     derived from the operation of an existing turnpike project; and
9-13                 (4)  using money received from the department for
9-14     feasibility studies undertaken at the request of the commission.
9-15           SECTION 14.  Section 361.182, Transportation Code, is amended
9-16     by adding Subsection (i) to read as follows:
9-17           (i)  The commission may request that the authority conduct a
9-18     feasibility study for any proposed turnpike project.  The expenses
9-19     of a study requested by the commission shall be paid for by the
9-20     department.  If the turnpike project is constructed, the department
9-21     shall be reimbursed for money paid to the authority from the
9-22     proceeds of turnpike revenue bonds issued for, or other proceeds
9-23     that may be used for, the construction, improvement, extension,
9-24     expansion, or operation of the project.
9-25           SECTION 15.  Subsection (c), Section 361.232, Transportation
9-26     Code, is amended to read as follows:
 10-1          (c)  If feasible, the [The] authority shall provide access to
 10-2    properties previously abutting [move and replace, with an equal or
 10-3    better facility,] a county or other public road that is taken for a
 10-4    turnpike project and [affects or severs.  The authority] shall pay
 10-5    abutting property owners the expenses or [and] any resulting
 10-6    damages for denial of access to the road.
 10-7          SECTION 16.  Section 361.234, Transportation Code, is amended
 10-8    by adding Subsections (d) and (e) and redesignating existing
 10-9    Subsections (d), (e), and (f) as Subsections (f), (g), and (h) to
10-10    read as follows:
10-11          (d)  The authority may reduce the total costs to be paid by
10-12    the authority by 10 percent for each 30-day period or portion of a
10-13    30-day period that the relocation exceeds the limit specified by
10-14    the authority unless the public utility's failure to timely perform
10-15    results from a material action or inaction by the authority or from
10-16    conditions that the authority agrees were beyond the reasonable
10-17    control of the utility.  If an owner or operator of a public
10-18    utility facility does not timely remove or relocate the facility as
10-19    required under Subsection (b) and the authority relocates the
10-20    facility, the authority shall relocate the facility in a safe
10-21    manner that complies with applicable law and utility construction
10-22    standards recognized by the authority and that minimizes disruption
10-23    of utility service and shall notify the public utility of the
10-24    relocation.  Relocation of a public utility facility by the
10-25    authority is at the expense of the public utility unless the
10-26    authority determines that the failure of the public utility to
 11-1    timely relocate the facility was the result of circumstances beyond
 11-2    the control of the utility, in which case the authority shall pay
 11-3    the cost of the relocation.
 11-4          (e)  Notwithstanding anything in this chapter to the
 11-5    contrary:
 11-6                (1)  Subchapter B, Chapter 181, Utilities Code, applies
 11-7    to the laying and maintenance of pipes, mains, conductors, and
 11-8    other facilities used for conducting gas by a gas utility described
 11-9    in that subchapter through, under, along, across, and over a
11-10    turnpike project constructed by the authority; and
11-11                (2)  the authority has the powers and duties assigned
11-12    to the commission by Subchapter B, Chapter 181, Utilities Code.
11-13          (f)  Notwithstanding anything in this chapter to the
11-14    contrary, Subchapter C, Chapter 181, Utilities Code, applies to the
11-15    erection, construction, maintenance, and operation of lines and
11-16    poles owned by an electric utility, as that term is defined by
11-17    Section 181.041, Utilities Code, over, under, across, on, and along
11-18    a turnpike project constructed by the authority.  The authority has
11-19    the powers and duties delegated to the commission by Subchapter C,
11-20    Chapter 181, Utilities Code.
11-21          (g) [(e)]  Notwithstanding anything in this chapter to the
11-22    contrary, the laws of this state applicable to the use of public
11-23    roads, streets, and waters of this state by a telephone and
11-24    telegraph corporation apply to the erection, construction,
11-25    maintenance, location, and operation of a line, pole, or other
11-26    fixture by a telephone and telegraph corporation over, under,
 12-1    across, on, and along a turnpike project constructed by the
 12-2    authority.
 12-3          (h) [(f)]  In this section, "public utility facility" means a
 12-4    track, pipe, main, conduit, cable, wire, tower, pole, or other item
 12-5    of equipment or an appliance of a public utility or other person.
 12-6          SECTION 17.  Subsection (a), Section 361.306, Transportation
 12-7    Code, is amended to read as follows:
 12-8          (a)  The authority shall adopt rules, procedures, and
 12-9    guidelines governing negotiations to promote fairness, obtain
12-10    private participants in turnpike projects, and promote confidence
12-11    among those participants.  The rules must contain criteria relating
12-12    to the qualifications of the participants and the award of the
12-13    contracts and may authorize the authority to impose a fee for
12-14    reviewing proposals for private involvement in a turnpike project.
12-15          SECTION 18.  Subsections (e), (f), and (g), Section 545.354,
12-16    Transportation Code, are amended to read as follows:
12-17          (e)  [Sections 545.353 and 545.355 to 545.359 do not apply to
12-18    any part of a turnpike project constructed and maintained by the
12-19    authority and covered under Subsection (d) unless a turnpike
12-20    constructed by the authority becomes part of the state highway
12-21    system, in which event the Texas Transportation Commission has the
12-22    sole authority to alter prima facie speed limits on the turnpike
12-23    project.]
12-24          [(f)]  The authority may not:
12-25                (1)  alter the general rule established by Section
12-26    545.351(a); or
 13-1                (2)  establish a speed limit of more than 70 miles per
 13-2    hour.
 13-3          (f) [(g)]  The authority, in conducting the engineering and
 13-4    traffic investigation specified by Subsection (a), shall follow the
 13-5    procedure for establishing speed zones adopted by the Texas
 13-6    Department of Transportation.
 13-7          SECTION 19.  Section 621.102, Transportation Code, is amended
 13-8    by amending Subsection (a) and adding Subsection (h) to read as
 13-9    follows:
13-10          (a)  Except as provided by Subsection (h), the [The]
13-11    commission may set the maximum gross weight of a vehicle and its
13-12    load, maximum gross weight of a combination of vehicles and loads,
13-13    maximum axle load, or maximum wheel load that may be moved over a
13-14    state highway or a farm or ranch road if the commission finds that
13-15    heavier maximum weight would rapidly deteriorate or destroy the
13-16    road or a bridge or culvert along the road.  A maximum weight or
13-17    load set under this subsection may not exceed the maximum set by
13-18    statute for that weight or load.
13-19          (h)  The Texas Turnpike Authority may set, in the same manner
13-20    as the commission under this section, the maximum gross weight of a
13-21    vehicle and its load, the maximum gross weight of a combination of
13-22    vehicles and loads, maximum axle load, or maximum wheel load that
13-23    may be moved over a turnpike project as defined by Section 361.001.
13-24          SECTION 20.  This Act takes effect immediately if it receives
13-25    a vote of two-thirds of all the members elected to each house, as
13-26    provided by Section 39, Article III, Texas Constitution.  If this
 14-1    Act does not receive the vote necessary for immediate effect, this
 14-2    Act takes effect September 1, 2001.