77R16678 JD-F                          
         By Cain, et al.                                        S.B. No. 409
         Substitute the following for S.B. No. 409:
         By Alexander                                       C.S.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, and to the abolishment of the board of
 1-5     directors of that division.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1. Section 361.001(4), Transportation Code, is
 1-8     amended to read as follows:
 1-9                 (4)  "Turnpike project" means a [toll] highway
1-10     constructed, maintained, or operated under this chapter as part of
1-11     the state highway system and any improvement, extension, or
1-12     expansion to the highway and includes:
1-13                       (A)  a facility to relieve traffic congestion and
1-14     promote safety;
1-15                       (B)  a bridge, tunnel, overpass, underpass,
1-16     interchange, entrance plaza, approach, toll house, service road,
1-17     ramp, or service station;
1-18                       (C)  an administration, storage, or other
1-19     building the authority considers necessary to operate the project;
1-20     [and]
1-21                       (D)  property rights, easements, and interests
1-22     the authority acquires to construct or operate the project; and
1-23                       (E)  a parking area or structure, rest stop,
1-24     park, and any other improvement or amenity the authority considers
 2-1     necessary, useful, or beneficial for the operation of a turnpike
 2-2     project.
 2-3           SECTION 2.  Section 361.004, Transportation Code, is amended
 2-4     to read as follows:
 2-5           Sec. 361.004.  CONSTRUCTION COSTS.  (a)  The cost of
 2-6     acquisition, construction, improvement, extension, or expansion of
 2-7     a turnpike project under this chapter includes the cost of:
 2-8                 (1)  the actual acquisition, construction, improvement,
 2-9     extension, or expansion of the project;
2-10                 (2)  acquisition of real property, rights-of-way,
2-11     property rights, easements, and interests;
2-12                 (3)  machinery and equipment;
2-13                 (4)  interest before, during, and for one year after
2-14     construction, improvement, extension, or expansion;
2-15                 (5)  traffic estimates, engineering and legal services,
2-16     plans, specifications, surveys, appraisals, cost and revenue
2-17     estimates, and other expenses necessary or incident to determining
2-18     the feasibility of the construction, improvement, extension, or
2-19     expansion;
2-20                 (6)  necessary or incidental administrative, legal, and
2-21     other expenses;
2-22                 (7)  financing; and
2-23                 (8)  placement of the project in operation and expenses
2-24     related to the initial operation of the turnpike project.
2-25           (b)  Costs attributable to a turnpike project for which bonds
2-26     are issued that are incurred before the issuance of the bonds may
2-27     be reimbursed from the proceeds of the sale of the bonds.
 3-1           SECTION 3. Sections 361.031(b)-(g), Transportation Code, are
 3-2     amended to read as follows:
 3-3           (b)  The authority may perform, procure from other divisions
 3-4     of the department with the consent of the department, or procure
 3-5     from outside service providers any portion of the services the
 3-6     authority requires for:
 3-7                 (1)  right-of-way acquisition;
 3-8                 (2)  roadway finance, design, and construction;
 3-9                 (3)  environmental affairs; [or]
3-10                 (4)  legal services;
3-11                 (5)  roadway maintenance;
3-12                 (6)  toll revenue collection; or
3-13                 (7)  traffic operations.
3-14           (c)  [With the approval of the commission, the authority may
3-15     perform, procure from other divisions of the department with the
3-16     consent of the department, or procure from outside service
3-17     providers any portion of the services the authority requires for
3-18     roadway maintenance, toll revenue collection, or traffic
3-19     operations.]
3-20           [(d)]  To perform its functions under this chapter, the
3-21     authority may use the facilities and personnel of the department in
3-22     the same manner as other divisions of the department.
3-23           (d) [(e)]  If the comptroller assigns numbers to state
3-24     agencies for accounting purposes, the comptroller shall assign a
3-25     separate agency number to the authority.
3-26           (e) [(f)]  The exercise by the authority of the powers
3-27     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. Section 361.042(b), Transportation Code, is
4-11     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
4-27     set their compensation;
 5-1                 (6)  employ attorneys to advance or defend legal
 5-2     actions pertaining to the division's activities, notwithstanding
 5-3     any other law to the contrary, including Section 402.0212,
 5-4     Government Code;
 5-5                 (7)  receive grants for the construction of a turnpike
 5-6     project and receive contributions of money, property, labor, or
 5-7     other things of value from any source to be used for the purposes
 5-8     for which the grants or contributions are made;
 5-9                 (8)  adopt and enforce rules[, if the commission
5-10     concurs,] not inconsistent with this chapter for the use of any
5-11     turnpike project, including rules establishing speed limits and
5-12     maximum allowable vehicle and load weight limits for turnpike
5-13     projects; and
5-14                 (9)  do all things necessary or appropriate to carry
5-15     out the powers expressly granted by this chapter.
5-16           SECTION 5.  Section 361.054, Transportation Code, is amended
5-17     to read as follows:
5-18           Sec. 361.054.  AUDIT.  Notwithstanding any other law to the
5-19     contrary, the [The] authority shall have an independent [a]
5-20     certified public accountant audit the authority's books and
5-21     accounts at least annually.  The cost of the audit may be treated
5-22     as part of the cost of construction or operation of a turnpike
5-23     project.  This section does not affect the ability of a state
5-24     agency to audit the authority's books and accounts.
5-25           SECTION 6.  Section 361.131, Transportation Code, is amended
5-26     to read as follows:
5-27           Sec. 361.131.  POWERS AND PROCEDURES OF AUTHORITY IN
 6-1     ACQUIRING PROPERTY.  Except as otherwise provided by this chapter,
 6-2     the authority, acting by and through the board, has the same powers
 6-3     and may use the same procedures as the commission or the department
 6-4     in acquiring property.
 6-5           SECTION 7. Sections 361.132(a) and (c), Transportation Code,
 6-6     are amended to read as follows:
 6-7           (a)  The authority [board] may acquire, in the name of the
 6-8     state, public or private real property it determines necessary or
 6-9     convenient for the construction, expansion, enlargement, extension,
6-10     improvement, or operation of a turnpike project or for otherwise
6-11     carrying out this chapter.
6-12           (c)  The authority [board] may acquire the real property by
6-13     any method, including purchase and condemnation.  The authority
6-14     [board] may purchase public or private real property on the terms
6-15     and at the price the authority [board] and the owner consider
6-16     reasonable.
6-17           SECTION 8. Section 361.135(b), Transportation Code, is
6-18     amended to read as follows:
6-19           (b)  The board, with the concurrence of the commission, may
6-20     condemn real property that the authority determines is:
6-21                 (1)  necessary or appropriate to construct or to
6-22     efficiently operate a turnpike project;
6-23                 (2)  necessary to restore public or private property
6-24     damaged or destroyed, including property necessary or convenient to
6-25     mitigate an environmental effect that directly results from the
6-26     construction, operation, or maintenance of a turnpike project;
6-27                 (3)  necessary for access, approach, service, and
 7-1     interchange roads; [or]
 7-2                 (4)  necessary to provide proper drainage and ground
 7-3     slope for a turnpike project; or
 7-4                 (5)  necessary otherwise to carry out this chapter.
 7-5           SECTION 9.  Section 361.137, Transportation Code, is amended
 7-6     by adding Subsection (f) to read as follows:
 7-7           (f)  After a declaration of taking is filed, the case shall
 7-8     proceed as any other case in eminent domain under Chapter 21,
 7-9     Property Code.
7-10           SECTION 10. Section 361.141(a), Transportation Code, is
7-11     amended to read as follows:
7-12           (a)  The authority may not pay compensation for public real
7-13     property, parkways, streets, highways, alleys, or reservations it
7-14     takes, except for:
7-15                 (1)  parks and playgrounds; and
7-16                 (2)  property acquired under restrictions and
7-17     limitations requiring payment of compensation.
7-18           SECTION 11.  Section 361.171, Transportation Code, is amended
7-19     by adding Subsection (g) to read as follows:
7-20           (g)  In addition to other permitted uses, the proceeds of a
7-21     bond issue may be used to pay costs incurred before the issuance of
7-22     the bonds, including costs of environmental review, design,
7-23     planning, acquisition of property, relocation assistance,
7-24     construction, and operation.
7-25           SECTION 12. Section 361.179(a), Transportation Code, is
7-26     amended to read as follows:
7-27           (a)  The authority may:
 8-1                 (1)  impose tolls for the use of each turnpike project
 8-2     and the different parts or sections of each turnpike project; and
 8-3                 (2)  notwithstanding anything in Chapter 202 to the
 8-4     contrary, contract with a person for the use of part of a turnpike
 8-5     project or lease or sell part of a turnpike project, including the
 8-6     right-of-way adjoining the paved portion, for any purpose,
 8-7     including placing on the adjoining right-of-way a gas station,
 8-8     garage, store, hotel, restaurant, railroad tracks, telephone line,
 8-9     telecommunication line, telecommunications facilities and
8-10     equipment, and electric line, and set the terms for the use, lease,
8-11     or sale.
8-12           SECTION 13. Section 361.181(a), Transportation Code, is
8-13     amended to read as follows:
8-14           (a)  Notwithstanding Section 361.179 or any other provision
8-15     of this chapter to the contrary, the authority may pay the expenses
8-16     of studying the cost and feasibility and any other expenses
8-17     relating to the preparation and issuance of turnpike revenue bonds
8-18     for the construction of a proposed turnpike project by:
8-19                 (1)  using available revenue derived from an existing
8-20     turnpike project;
8-21                 (2)  borrowing money and issuing interest-bearing
8-22     evidences of indebtedness or entering into a loan agreement payable
8-23     out of available revenue anticipated to be derived from the
8-24     operation of an existing turnpike project; [and]
8-25                 (3)  pledging available revenue anticipated to be
8-26     derived from the operation of an existing turnpike project; and
8-27                 (4)  using money received from the department for
 9-1     feasibility studies undertaken at the request of the commission.
 9-2           SECTION 14.  Section 361.182, Transportation Code, is amended
 9-3     by adding Subsection (i) to read as follows:
 9-4           (i)  The commission may request that the authority conduct a
 9-5     feasibility study for any proposed turnpike project.  The expenses
 9-6     of a study requested by the commission shall be paid for by the
 9-7     department.  If the turnpike project is constructed, the department
 9-8     shall be reimbursed for money paid to the authority from the
 9-9     proceeds of turnpike revenue bonds issued for, or other proceeds
9-10     that may be used for, the construction, improvement, extension,
9-11     expansion, or operation of the project.
9-12           SECTION 15. Section 361.232(c), Transportation Code, is
9-13     amended to read as follows:
9-14           (c)  If feasible, the [The] authority shall provide access to
9-15     properties previously abutting [move and replace, with an equal or
9-16     better facility,] a county or other public road that is taken for a
9-17     turnpike project and [affects or severs.  The authority] shall pay
9-18     abutting property owners the expenses or [and] any resulting
9-19     damages for denial of access to the road.
9-20           SECTION 16. Sections 361.234(d), (e), and (f), Transportation
9-21     Code, are amended to read as follows:
9-22           (d)  The authority and the public utility shall have 90 days
9-23     from the date the authority provides written notice to the public
9-24     utility of the need for relocation of utility facilities to reach
9-25     an agreement concerning the period for completion of the
9-26     relocation.  The 90-day period may be extended by mutual written
9-27     agreement.  If the parties are unable to reach an agreement for the
 10-1    period for completion of the relocation, the authority may specify
 10-2    a reasonable period.  The authority may reduce the total costs to
 10-3    be paid by the authority by 10 percent for each 30-day period or
 10-4    portion of a 30-day period that the relocation exceeds the period
 10-5    specified by agreement between the authority and public utility or
 10-6    as reasonably specified by the authority if no agreement is
 10-7    reached, unless the public utility's failure to timely perform
 10-8    results from a material action or inaction by the authority or from
 10-9    conditions that were beyond the reasonable control of the utility.
10-10    If an owner or operator of a public utility facility does not
10-11    timely remove or relocate the facility as required under Subsection
10-12    (b) and the authority relocates the facility, the authority shall
10-13    relocate the facility in a safe manner that complies with
10-14    applicable law and utility construction standards recognized by the
10-15    authority and that minimizes disruption of utility service and
10-16    shall notify the public utility and other appropriate regulatory
10-17    agencies of the relocation.  A public utility shall reimburse the
10-18    authority for expenses reasonably incurred for the relocation of a
10-19    public utility facility unless the failure of the public utility to
10-20    timely relocate the facility was the result of circumstances beyond
10-21    the control of the utility, in which case the authority shall pay
10-22    the cost of the relocation.
10-23          (e)  Notwithstanding anything in this chapter to the
10-24    contrary:
10-25                (1)  Subchapter B, Chapter 181, Utilities Code, applies
10-26    to the laying and maintenance of pipes, mains, conductors, and
10-27    other facilities used for conducting gas by a gas utility described
 11-1    in that subchapter through, under, along, across, and over a
 11-2    turnpike project constructed by the authority; and
 11-3                (2)  the authority has the powers and duties assigned
 11-4    to the commission by Subchapter B, Chapter 181, Utilities Code.
 11-5          (f)  Notwithstanding anything in this chapter to the
 11-6    contrary, Subchapter C, Chapter 181, Utilities Code, applies to the
 11-7    erection, construction, maintenance, and operation of lines and
 11-8    poles owned by an electric utility, as that term is defined by
 11-9    Section 181.041, Utilities Code, over, under, across, on, and along
11-10    a turnpike project constructed by the authority.  The authority has
11-11    the powers and duties delegated to the commission by Subchapter C,
11-12    Chapter 181, Utilities Code.
11-13          (g) [(e)]  Notwithstanding anything in this chapter to the
11-14    contrary, the laws of this state applicable to the use of public
11-15    roads, streets, and waters of this state by a telephone and
11-16    telegraph corporation apply to the erection, construction,
11-17    maintenance, location, and operation of a line, pole, or other
11-18    fixture by a telephone and telegraph corporation over, under,
11-19    across, on, and along a turnpike project constructed by the
11-20    authority.
11-21          (h) [(f)]  In this section, "public utility facility" means a
11-22    track, pipe, main, conduit, cable, wire, tower, pole, or other item
11-23    of equipment or an appliance of a public utility or other person.
11-24          SECTION 17. Section 361.306(a), Transportation Code, is
11-25    amended to read as follows:
11-26          (a)  The authority shall adopt rules, procedures, and
11-27    guidelines governing negotiations to promote fairness, obtain
 12-1    private participants in turnpike projects, and promote confidence
 12-2    among those participants.  The rules must contain criteria relating
 12-3    to the qualifications of the participants and the award of the
 12-4    contracts and may authorize the authority to impose a fee for
 12-5    reviewing proposals for private involvement in a turnpike project.
 12-6          SECTION 18. Sections 545.354(e), (f), and (g), Transportation
 12-7    Code, are amended to read as follows:
 12-8          (e)  [Sections 545.353 and 545.355 to 545.359 do not apply to
 12-9    any part of a turnpike project constructed and maintained by the
12-10    authority and covered under Subsection (d) unless a turnpike
12-11    constructed by the authority becomes part of the state highway
12-12    system, in which event the Texas Transportation Commission has the
12-13    sole authority to alter prima facie speed limits on the turnpike
12-14    project.]
12-15          [(f)]  The authority may not:
12-16                (1)  alter the general rule established by Section
12-17    545.351(a); or
12-18                (2)  establish a speed limit of more than 70 miles per
12-19    hour.
12-20          (f) [(g)]  The authority, in conducting the engineering and
12-21    traffic investigation specified by Subsection (a), shall follow the
12-22    procedure for establishing speed zones adopted by the Texas
12-23    Department of Transportation.
12-24          SECTION 19.  Section 621.102, Transportation Code, is amended
12-25    by amending Subsection (a) and adding Subsection (h) to read as
12-26    follows:
12-27          (a)  Except as provided by Subsection (h), the [The]
 13-1    commission may set the maximum gross weight of a vehicle and its
 13-2    load, maximum gross weight of a combination of vehicles and loads,
 13-3    maximum axle load, or maximum wheel load that may be moved over a
 13-4    state highway or a farm or ranch road if the commission finds that
 13-5    heavier maximum weight would rapidly deteriorate or destroy the
 13-6    road or a bridge or culvert along the road.  A maximum weight or
 13-7    load set under this subsection may not exceed the maximum set by
 13-8    statute for that weight or load.
 13-9          (h)  The Texas Turnpike Authority may set, in the same manner
13-10    as the commission under this section, the maximum gross weight of a
13-11    vehicle and its load, the maximum gross weight of a combination of
13-12    vehicles and loads, maximum axle load, or maximum wheel load that
13-13    may be moved over a turnpike project as defined by Section 361.001.
13-14          SECTION 20.  (a)  The board of directors of the Texas
13-15    Turnpike Authority division of the Texas Department of
13-16    Transportation is abolished.  All powers, duties, obligations,
13-17    rights, contracts, leases, records, employees, and real or personal
13-18    property of the board, including those enumerated in this Act, are
13-19    transferred to the Texas Transportation Commission.  Unspent and
13-20    unobligated appropriations and other funds under the control of the
13-21    board shall be transferred to the Texas Transportation Commission.
13-22    The board with the agreement of the commission may transfer any
13-23    records, employees, or real or personal property of the board to
13-24    the commission in preparation for the transfer provided for in this
13-25    section.
13-26          (b)  The abolishment of the board of directors of the Texas
13-27    Turnpike Authority division of the Texas Department of
 14-1    Transportation does not affect the validity of a right, privilege,
 14-2    or obligation accrued, a contract or acquisition made, any
 14-3    liability incurred, a permit or license issued, a penalty,
 14-4    forfeiture, or punishment assessed, a rule adopted, a proceeding,
 14-5    investigation, or remedy begun, a decision made, or other action
 14-6    taken by or in connection with the board.
 14-7          (c)  All rules, policies, procedures, and decisions of the
 14-8    board of directors of the Texas Turnpike Authority division of the
 14-9    Texas Department of Transportation are continued in effect as
14-10    rules, policies, procedures, and decisions of the Texas
14-11    Transportation Commission until superseded by a rule or other
14-12    appropriate action of the commission.
14-13          (d)  Any action or proceeding before the board of directors
14-14    of the Texas Turnpike Authority division of the Texas Department of
14-15    Transportation is transferred without change in status to the Texas
14-16    Transportation Commission, and the commission assumes, without a
14-17    change in status, the position of the board in any action or
14-18    proceeding to which the board is a party.
14-19          (e)  If S.B. No. 4, 77th Legislature, Regular Session, 2001,
14-20    is enacted and becomes law, all unspent and unobligated
14-21    appropriations and other funds transferred to the Texas
14-22    Transportation Commission under Subsection (a) of this section
14-23    shall be transferred to the Texas Mobility Fund on the effective
14-24    date of S.B. No. 4.
14-25          SECTION 21.  This Act takes effect immediately if it receives
14-26    a vote of two-thirds of all the members elected to each house, as
14-27    provided by Section 39, Article III, Texas Constitution.  If this
 15-1    Act does not receive the vote necessary for immediate effect, this
 15-2    Act takes effect September 1, 2001.