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;
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; and
 2-1                       (F)  a toll-free facility that is appurtenant to
 2-2     and necessary for the efficient operation of a turnpike project,
 2-3     including a service road, access road, ramp, interchange, bridge,
 2-4     or tunnel.
 2-5           SECTION 2.  Section 361.004, Transportation Code, is amended
 2-6     to read as follows:
 2-7           Sec. 361.004.  CONSTRUCTION COSTS.  (a)  The cost of
 2-8     acquisition, construction, improvement, extension, or expansion of
 2-9     a turnpike project under this chapter includes the cost of:
2-10                 (1)  the actual acquisition, construction, improvement,
2-11     extension, or expansion of the project;
2-12                 (2)  acquisition of real property, rights-of-way,
2-13     property rights, easements, and interests;
2-14                 (3)  machinery and equipment;
2-15                 (4)  interest before, during, and for one year after
2-16     construction, improvement, extension, or expansion;
2-17                 (5)  traffic estimates, engineering and legal services,
2-18     plans, specifications, surveys, appraisals, cost and revenue
2-19     estimates, and other expenses necessary or incident to determining
2-20     the feasibility of the construction, improvement, extension, or
2-21     expansion;
2-22                 (6)  necessary or incidental administrative, legal, and
2-23     other expenses;
2-24                 (7)  financing; and
2-25                 (8)  placement of the project in operation and expenses
2-26     related to the initial operation of the turnpike project.
 3-1           (b)  Costs attributable to a turnpike project for which bonds
 3-2     are issued that are incurred before the issuance of the bonds may
 3-3     be reimbursed from the proceeds of the sale of the bonds.
 3-4           SECTION 3.  Subsections (b) through (g), Section 361.031,
 3-5     Transportation Code, are amended to read as follows:
 3-6           (b)  The authority may perform, procure from other divisions
 3-7     of the department with the consent of the department, or procure
 3-8     from outside service providers any portion of the services the
 3-9     authority requires for:
3-10                 (1)  right-of-way acquisition;
3-11                 (2)  roadway finance, design, and construction;
3-12                 (3)  environmental affairs; [or]
3-13                 (4)  legal services;
3-14                 (5)  roadway maintenance;
3-15                 (6)  toll revenue collection; or
3-16                 (7)  traffic operations.
3-17           (c)  [With the approval of the commission, the authority may
3-18     perform, procure from other divisions of the department with the
3-19     consent of the department, or procure from outside service
3-20     providers any portion of the services the authority requires for
3-21     roadway maintenance, toll revenue collection, or traffic
3-22     operations.]
3-23           [(d)]  To perform its functions under this chapter, the
3-24     authority may use the facilities and personnel of the department in
3-25     the same manner as other divisions of the department.
3-26           (d) [(e)]  If the comptroller assigns numbers to state
 4-1     agencies for accounting purposes, the comptroller shall assign a
 4-2     separate agency number to the authority.
 4-3           (e) [(f)]  The exercise by the authority of the powers
 4-4     conferred by this chapter in the construction, operation, and
 4-5     maintenance of a turnpike project is:
 4-6                 (1)  in all respects for the benefit of the people of
 4-7     this state, for the increase of their commerce and prosperity, and
 4-8     for the improvement of their health and living conditions and
 4-9     public safety; and
4-10                 (2)  an essential governmental function of the state.
4-11           (f) [(g)]  The commission shall employ a director of the
4-12     authority who serves as the authority's chief administrative
4-13     officer.  The director serves at the pleasure of the commission.
4-14           SECTION 4.  Subsection (b), Section 361.042, Transportation
4-15     Code, is amended to read as follows:
4-16           (b)  The authority may:
4-17                 (1)  construct, maintain, repair, and operate turnpike
4-18     projects in this state;
4-19                 (2)  acquire, hold, and dispose of property in the
4-20     exercise of its powers and the performance of its duties under this
4-21     chapter;
4-22                 (3)  with the approval of the governor and the
4-23     commission, enter into contracts or operating agreements with
4-24     similar authorities or agencies of another state, including a state
4-25     of the United Mexican States;
4-26                 (4)  enter into contracts or agreements necessary or
 5-1     incidental to its duties and powers under this chapter;
 5-2                 (5)  employ consulting engineers, accountants,
 5-3     construction and financial experts, superintendents, managers, and
 5-4     other employees and agents the authority considers necessary and
 5-5     set their compensation;
 5-6                 (6)  employ attorneys to advance or defend legal
 5-7     actions pertaining to the division's activities, notwithstanding
 5-8     any other law to the contrary, including Section 402.0212,
 5-9     Government Code;
5-10                 (7)  receive grants for the construction of a turnpike
5-11     project and receive contributions of money, property, labor, or
5-12     other things of value from any source to be used for the purposes
5-13     for which the grants or contributions are made;
5-14                 (8)  adopt and enforce rules[, if the commission
5-15     concurs,] not inconsistent with this chapter for the use of any
5-16     turnpike project, including rules establishing speed limits and
5-17     maximum allowable vehicle and load weight limits for turnpike
5-18     projects; [and]
5-19                 (9)  engage in marketing, advertising, and other
5-20     activities to promote the development and use of turnpike projects
5-21     and may enter into contracts or agreements necessary to procure
5-22     marketing, advertising, or other promotional services from outside
5-23     service providers;
5-24                 (10)  with the concurrence of the commission, form,
5-25     develop, or utilize a corporation created under Chapter 431 for the
5-26     promotion and development of turnpike projects; and
 6-1                 (11)  do all things necessary or appropriate to carry
 6-2     out the powers expressly granted by this chapter.
 6-3           SECTION 5.  Section 361.054, Transportation Code, is amended
 6-4     to read as follows:
 6-5           Sec. 361.054.  AUDIT.  Notwithstanding any other law to the
 6-6     contrary, the [The] authority shall have an independent [a]
 6-7     certified public accountant audit the authority's books and
 6-8     accounts at least annually.  The cost of the audit may be treated
 6-9     as part of the cost of construction or operation of a turnpike
6-10     project.  This section does not affect the ability of a state
6-11     agency to audit the authority's books and accounts.
6-12           SECTION 6.  Section 361.131, Transportation Code, is amended
6-13     to read as follows:
6-14           Sec. 361.131.  POWERS AND PROCEDURES OF AUTHORITY IN
6-15     ACQUIRING PROPERTY.  Except as otherwise provided by this chapter,
6-16     the authority, acting by and through the board, has the same powers
6-17     and may use the same procedures as the commission or the department
6-18     in acquiring property.
6-19           SECTION 7.  Subsections (a) and (c), Section 361.132,
6-20     Transportation Code, are amended to read as follows:
6-21           (a)  The authority [board] may acquire, in the name of the
6-22     state, public or private real property it determines necessary or
6-23     convenient for the construction, expansion, enlargement, extension,
6-24     improvement, or operation of a turnpike project or for otherwise
6-25     carrying out this chapter.
6-26           (c)  The authority [board] may acquire the real property by
 7-1     any method, including purchase and condemnation.  The authority
 7-2     [board] may purchase public or private real property on the terms
 7-3     and at the price the authority [board] and the owner consider
 7-4     reasonable.
 7-5           SECTION 8.  Subsection (b), Section 361.135, Transportation
 7-6     Code, is amended to read as follows:
 7-7           (b)  The board, with the concurrence of the commission, may
 7-8     condemn real property that the authority determines is:
 7-9                 (1)  necessary or appropriate to construct or to
7-10     efficiently operate a turnpike project;
7-11                 (2)  necessary to restore public or private property
7-12     damaged or destroyed, including property necessary or convenient to
7-13     mitigate an environmental effect that directly results from the
7-14     construction, operation, or maintenance of a turnpike project;
7-15                 (3)  necessary for access, approach, service, and
7-16     interchange roads; [or]
7-17                 (4)  necessary to provide proper drainage and ground
7-18     slope for a turnpike project; or
7-19                 (5)  necessary otherwise to carry out this chapter.
7-20           SECTION 9.  Section 361.137, Transportation Code, is amended
7-21     by adding Subsection (f) to read as follows:
7-22           (f)  After a declaration of taking is filed, the case shall
7-23     proceed as any other case in eminent domain under Chapter 21,
7-24     Property Code.
7-25           SECTION 10.  Subsection (a), Section 361.141, Transportation
7-26     Code, is amended to read as follows:
 8-1           (a)  The authority may not pay compensation for public real
 8-2     property, parkways, streets, highways, alleys, or reservations it
 8-3     takes, except for:
 8-4                 (1)  parks and playgrounds; and
 8-5                 (2)  property acquired under restrictions and
 8-6     limitations requiring payment of compensation.
 8-7           SECTION 11.  Section 361.171, Transportation Code, is amended
 8-8     by adding Subsection (g) to read as follows:
 8-9           (g)  In addition to other permitted uses, the proceeds of a
8-10     bond issue may be used to pay costs incurred before the issuance of
8-11     the bonds, including costs of environmental review, design,
8-12     planning, acquisition of property, relocation assistance,
8-13     construction, and operation.
8-14           SECTION 12.  Subsection (a), Section 361.179, Transportation
8-15     Code, is amended to read as follows:
8-16           (a)  The authority may:
8-17                 (1)  impose tolls for the use of each turnpike project
8-18     and the different parts or sections of each turnpike project; and
8-19                 (2)  notwithstanding anything in Chapter 202 to the
8-20     contrary, contract with a person for the use of part of a turnpike
8-21     project or lease or sell part of a turnpike project, including the
8-22     right-of-way adjoining the paved portion, for any purpose,
8-23     including placing on the adjoining right-of-way a gas station,
8-24     garage, store, hotel, restaurant, railroad tracks, telephone line,
8-25     telecommunication line, telecommunications facilities and
8-26     equipment, and electric line, and set the terms for the use, lease,
 9-1     or sale.
 9-2           SECTION 13.  Subsection (a), Section 361.181, Transportation
 9-3     Code, is amended to read as follows:
 9-4           (a)  Notwithstanding Section 361.179 or any other provision
 9-5     of this chapter to the contrary, the authority may pay the expenses
 9-6     of studying the cost and feasibility and any other expenses
 9-7     relating to the preparation and issuance of turnpike revenue bonds
 9-8     for the construction of a proposed turnpike project by:
 9-9                 (1)  using available revenue derived from an existing
9-10     turnpike project;
9-11                 (2)  borrowing money and issuing interest-bearing
9-12     evidences of indebtedness or entering into a loan agreement payable
9-13     out of available revenue anticipated to be derived from the
9-14     operation of an existing turnpike project; [and]
9-15                 (3)  pledging available revenue anticipated to be
9-16     derived from the operation of an existing turnpike project; and
9-17                 (4)  using money received from the department for
9-18     feasibility studies undertaken at the request of the commission.
9-19           SECTION 14.  Section 361.182, Transportation Code, is amended
9-20     by adding Subsection (i) to read as follows:
9-21           (i)  The commission may request that the authority conduct a
9-22     feasibility study for any proposed turnpike project.  The expenses
9-23     of a study requested by the commission shall be paid for by the
9-24     department.  If the turnpike project is constructed, the department
9-25     shall be reimbursed for money paid to the authority from the
9-26     proceeds of turnpike revenue bonds issued for, or other proceeds
 10-1    that may be used for, the construction, improvement, extension,
 10-2    expansion, or operation of the project.
 10-3          SECTION 15.  Subsection (c), Section 361.232, Transportation
 10-4    Code, is amended to read as follows:
 10-5          (c)  If feasible, the [The] authority shall provide access to
 10-6    properties previously abutting [move and replace, with an equal or
 10-7    better facility,] a county or other public road that is taken for a
 10-8    turnpike project and [affects or severs.  The authority] shall pay
 10-9    abutting property owners the expenses or [and] any resulting
10-10    damages for denial of access to the road.
10-11          SECTION 16.  Subsections (d), (e), and (f), Section 361.234,
10-12    Transportation Code, are amended to read as follows:
10-13          (d)  The authority and the public utility shall have 90 days
10-14    from the date the authority provides written notice to the public
10-15    utility of the need for relocation of utility facilities to reach
10-16    an agreement concerning the period for completion of the
10-17    relocation.  The 90-day period may be extended by mutual written
10-18    agreement.  If the parties are unable to reach an agreement for the
10-19    period for completion of the relocation, the authority may specify
10-20    a reasonable period.  The authority may reduce the total costs to
10-21    be paid by the authority by 10 percent for each 30-day period or
10-22    portion of a 30-day period that the relocation exceeds the period
10-23    specified by agreement between the authority and public utility or
10-24    as reasonably specified by the authority if no agreement is
10-25    reached, unless the public utility's failure to timely perform
10-26    results from a material action or inaction by the authority or from
 11-1    conditions that were beyond the reasonable control of the utility.
 11-2    If an owner or operator of a public utility facility does not
 11-3    timely remove or relocate the facility as required under Subsection
 11-4    (b) and the authority relocates the facility, the authority shall
 11-5    relocate the facility in a safe manner that complies with
 11-6    applicable law and utility construction standards recognized by the
 11-7    authority and that minimizes disruption of utility service and
 11-8    shall notify the public utility and other appropriate regulatory
 11-9    agencies of the relocation.  A public utility shall reimburse the
11-10    authority for expenses reasonably incurred for the relocation of a
11-11    public utility facility unless the failure of the public utility to
11-12    timely relocate the facility was the result of circumstances beyond
11-13    the control of the utility, in which case the authority shall pay
11-14    the cost of the relocation.
11-15          (e)  Notwithstanding anything in this chapter to the
11-16    contrary:
11-17                (1)  Subchapter B, Chapter 181, Utilities Code, applies
11-18    to the laying and maintenance of pipes, mains, conductors, and
11-19    other facilities used for conducting gas by a gas utility described
11-20    in that subchapter through, under, along, across, and over a
11-21    turnpike project constructed by the authority; and
11-22                (2)  the authority has the powers and duties assigned
11-23    to the commission by Subchapter B, Chapter 181, Utilities Code.
11-24          (f)  Notwithstanding anything in this chapter to the
11-25    contrary, Subchapter C, Chapter 181, Utilities Code, applies to the
11-26    erection, construction, maintenance, and operation of lines and
 12-1    poles owned by an electric utility, as that term is defined by
 12-2    Section 181.041, Utilities Code, over, under, across, on, and along
 12-3    a turnpike project constructed by the authority.  The authority has
 12-4    the powers and duties delegated to the commission by Subchapter C,
 12-5    Chapter 181, Utilities Code.
 12-6          (g) [(e)]  Notwithstanding anything in this chapter to the
 12-7    contrary, the laws of this state applicable to the use of public
 12-8    roads, streets, and waters of this state by a telephone and
 12-9    telegraph corporation apply to the erection, construction,
12-10    maintenance, location, and operation of a line, pole, or other
12-11    fixture by a telephone and telegraph corporation over, under,
12-12    across, on, and along a turnpike project constructed by the
12-13    authority.
12-14          (h) [(f)]  In this section, "public utility facility" means a
12-15    track, pipe, main, conduit, cable, wire, tower, pole, or other item
12-16    of equipment or an appliance of a public utility or other person.
12-17          SECTION 17.  Subsection (a), Section 361.306, Transportation
12-18    Code, is amended to read as follows:
12-19          (a)  The authority shall adopt rules, procedures, and
12-20    guidelines governing negotiations to promote fairness, obtain
12-21    private participants in turnpike projects, and promote confidence
12-22    among those participants.  The rules must contain criteria relating
12-23    to the qualifications of the participants and the award of the
12-24    contracts and may authorize the authority to impose a fee for
12-25    reviewing proposals for private involvement in a turnpike project.
12-26          SECTION 18.  Subsections (e), (f), and (g), Section 545.354,
 13-1    Transportation Code, are amended to read as follows:
 13-2          (e)  [Sections 545.353 and 545.355 to 545.359 do not apply to
 13-3    any part of a turnpike project constructed and maintained by the
 13-4    authority and covered under Subsection (d) unless a turnpike
 13-5    constructed by the authority becomes part of the state highway
 13-6    system, in which event the Texas Transportation Commission has the
 13-7    sole authority to alter prima facie speed limits on the turnpike
 13-8    project.]
 13-9          [(f)]  The authority may not:
13-10                (1)  alter the general rule established by Section
13-11    545.351(a); or
13-12                (2)  establish a speed limit of more than 70 miles per
13-13    hour.
13-14          (f) [(g)]  The authority, in conducting the engineering and
13-15    traffic investigation specified by Subsection (a), shall follow the
13-16    procedure for establishing speed zones adopted by the Texas
13-17    Department of Transportation.
13-18          SECTION 19.  Section 621.102, Transportation Code, is amended
13-19    by amending Subsection (a) and adding Subsection (h) to read as
13-20    follows:
13-21          (a)  Except as provided by Subsection (h), the [The]
13-22    commission may set the maximum gross weight of a vehicle and its
13-23    load, maximum gross weight of a combination of vehicles and loads,
13-24    maximum axle load, or maximum wheel load that may be moved over a
13-25    state highway or a farm or ranch road if the commission finds that
13-26    heavier maximum weight would rapidly deteriorate or destroy the
 14-1    road or a bridge or culvert along the road.  A maximum weight or
 14-2    load set under this subsection may not exceed the maximum set by
 14-3    statute for that weight or load.
 14-4          (h)  The Texas Turnpike Authority may set, in the same manner
 14-5    as the commission under this section, the maximum gross weight of a
 14-6    vehicle and its load, the maximum gross weight of a combination of
 14-7    vehicles and loads, maximum axle load, or maximum wheel load that
 14-8    may be moved over a turnpike project as defined by Section 361.001.
 14-9          SECTION 20.  This Act takes effect immediately if it receives
14-10    a vote of two-thirds of all the members elected to each house, as
14-11    provided by Section 39, Article III, Texas Constitution.  If this
14-12    Act does not receive the vote necessary for immediate effect, this
14-13    Act takes effect September 1, 2001.
                                                                S.B. No. 409
            _______________________________     _______________________________
                President of the Senate              Speaker of the House
                  I hereby certify that S.B. No. 409 passed the Senate on
            March 1, 2001, by the following vote:  Yeas 30, Nays 0, one present
            not voting; May 25, 2001, Senate refused to concur in House
            amendments and requested appointment of Conference Committee;
            May 25, 2001, House granted request of the Senate; May 27, 2001,
            Senate adopted Conference Committee Report by the following vote:
            Yeas 30, Nays 0, one present not voting.
                                                _______________________________
                                                    Secretary of the Senate
                  I hereby certify that S.B. No. 409 passed the House, with
            amendments, on May 23, 2001, by the following vote:  Yeas 145,
            Nays 0, one present not voting; May 25, 2001, House granted request
            of the Senate for appointment of Conference Committee;
            May 27, 2001, House adopted Conference Committee Report by the
            following vote:  Yeas 144, Nays 0, one present not voting.
                                                _______________________________
                                                    Chief Clerk of the House
            Approved:
            _______________________________
                         Date
            _______________________________
                       Governor