SRC-LBB C.S.H.B. 3184 78(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 3184
By: Hill (Barrientos)
Infrastructure Development and Security
5/16/2003
Committee Report (Substituted)

DIGEST AND PURPOSE 

Senate Bill 342, 77th Texas Legislature, added Section 361.005 to the
Transportation Code, to transfer the powers and duties of the former board
of directors of the Texas Department of Transportation's (TxDOT) Texas
Turnpike Authority Division to the Texas Transportation Commission (TTC),
but not all necessary reference changes were made in existing law.
Additionally, TxDOT's legal authority, with regard to turnpike projects,
needs some clarification. Chapter 361 (Texas Turnpike Authority) contains
obsolete references and provisions that duplicate other statutes
applicable to TxDOT, which complicates the development of turnpike
projects.  C.S.H.B. 3184 clarifies TTC's power regarding financing,
construction, improvement, maintenance, and operation of turnpike
projects, and provides additional powers, including increased authority
for TTC and TxDOT to enter into exclusive development agreements for the
construction, improvement, maintenance, and operation of turnpike
projects.   

RULEMAKING AUTHORITY

Rulemaking authority is transferred from the Texas Turnpike Authority to
the Texas Transportation Commission in SECTION 42 (Section 361.234,
Transportation Code) and SECTION 62 (Section 361.306, Transportation Code)
of this bill. 

Rulemaking authority is expressly granted to the Texas Department of
Transportation in SECTION 58 ( Section 361.3022 and Section 361.3024,
Transportation Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 201.112(a), Transportation Code, to make a
conforming change by including Chapter 361 (State Highway Turnpike
Projects). Makes nonsubstantive changes. 

SECTION 2.  Amends the heading to Chapter 361, Transportation Code, to
read as follows: 

Chapter 361.  STATE HIGHWAY TURNPIKE PROJECTS

SECTION 3.  Amends Sections 361.001(2), (3), (4), and (5), Transportation
Code, to delete the definition of "board," redefine "turnpike project,"
and redesignate Subdivisions (3)-(5) as Subdivisions (2)-(4). 

SECTION 4.  Amends the heading to Subchapter B, Chapter 361,
Transportation Code, to read as follows: 
SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS

SECTION 5.  Amends and reenacts Section 361.031, Transportation Code, as
follows: 

Sec. 361.031.  TEXAS TURNPIKE AUTHORITY.  (a) Provides that the Texas
Turnpike Authority (authority) is responsible for promoting and
coordinating the development of turnpike projects under this chapter.
Requires the Texas Transportation Commission (TTC) and the executive
director of the Texas Department of Transportation (director) to assign
duties to the authority and other offices of the Texas Department of
Transportation (TxDOT) as appropriate for the proper administration of
this chapter and other law. Deletes text referring to powers under this
chapter and Chapter 362 to study, design, construct, operate, expand,
enlarge, or extend a turnpike project. 
 
(b) Replaces the "authority" with "TxDOT" as the entity exercising powers
conferred by this chapter in the construction, operation, and maintenance
of a turnpike project. 

SECTION 6.  Redesignates Section 361.042, Transportation Code, as Section
361.032, Transportation Code, and amends the section, as follows: 

Sec. 361.032. GENERAL PROVISIONS AND DUTIES.  (a) Requires TTC, rather
than the board of the directors of the authority, to adopt rules for the
implementation and administration of this chapter, rather than the
regulation of its affairs and the conduct of its business and to undertake
other duties delegated by TTC.  Deletes text referring to considering,
studying, planning, and developing turnpike projects.  Makes
nonsubstantive changes. 

(b)  Deletes text referring to employing attorneys, adopting and enforcing
rules, and forming, developing, or utilizing a corporation.  Redesignates
Subdivisions (7), (9), and (11) as Subdivisions (6), (7), and (8).  Makes
conforming changes. 

SECTION 7.  Redesignates Section 361.054, Transportation Code, as Section
361.033, Transportation Code, and amends the section, as follows: 

Sec. 361.033.  AUDIT.  Requires an audit of TxDOT's, rather than the
authority's, books and accounts for activities under this chapter, at
least annually.  Requires the audit to be conducted in accordance with the
requirements of any trust agreement securing bonds issued under this
chapter that is in effect at the time of the audit.  Makes conforming
changes. 

SECTION 8.  Amends the heading to Subchapter C, Chapter 361,
Transportation Code, to read as follows: 

SUBCHAPTER C.  DEVELOPMENT OF TURNPIKE PROJECTS

SECTION 9.  Amends Section 361.101, Transportation Code, to require TTC to
approve, by order, final designation, rather than the location of the
project before final designation, and to make a conforming change. 

SECTION 10.  Amends Section 361.103, Transportation Code, as follows:

Sec. 361.103.  New heading: APPLICATION OF OTHER LAW.  Requires all other
law applicable to TxDOT, TTC, or the state highway system to apply to the
development, construction, maintenance, and operation of a turnpike
project under this chapter, unless in conflict with a provision of this
chapter.  Deletes text referring to the provision of an environmental
review. 

SECTION 11.  Amends Subchapter C, Chapter 361, Transportation Code, by
adding Section 361.104, as follows: 

Sec. 361.104.  ENTRANCES AND EXITS OF TURNPIKE PROJECT.  Requires TxDOT to
designate the location of and establish, limit, and control the entrances
and exits of a turnpike project, as considered necessary or desirable, to
ensure the proper operation and maintenance of the project, and to
prohibit entrance to a project at any place not designated as an entrance. 

SECTION 12.  Amends Section 361.131, Transportation Code, as follows:

Sec. 361.131.  New heading: POWERS AND PROCEDURES OF DEPARTMENT IN
ACQUIRING PROPERTY.  Provides that TxDOT has the same powers and is
authorized to use the same procedures in acquiring property under this
chapter as TTC or TxDOT in acquiring property under Subchapter D, Chapter
203 (Acquisition of Property) and in  disposing of surplus property
acquired under this chapter as TTC or TxDOT under Subchapter B, Chapter
202 (Sale, Exchange, or Return of Highway Property). 

SECTION 13.  Amends Section 361.132, Transportation Code, as follows:

Sec. 361.132.  ACQUISITION OF PROPERTY.  (a) - (c) Make conforming changes.

(d) Provides that property necessary or convenient for the construction or
operation of a turnpike project under Subsection (a) includes an interest
in real property, a property right, or materials that TxDOT determines are
necessary or convenient to provide a location for an ancillary facility
that generated revenue for use in the construction, maintenance, or
operation of a turnpike project, including a gas station, garage, store,
hotel, or restaurant, or to construct or operate a warehouse, toll house,
toll plaza, service station, or other facility used in connection with the
construction, maintenance, or operation of a turnpike project, among other
areas or activities.  Redesignates Subdivisions (6)-(9) as Subdivisions
(7)-(10). 

(e) and (f) Make conforming changes.

SECTION 14.  Amends Sections 361.133(b) and (c), Transportation Code, to
make conforming changes. 

SECTION 15.  Amends Section 361.134, Transportation Code, to make
conforming changes. 

SECTION 16.  Amends Section 361.135, Transportation Code, as follows:

Sec. 361.135.  CONDEMNATION OF REAL PROPERTY.  (a) Authorizes TTC  to
approve the acquisition of, rather than the board with TTC's concurrence,
to acquire, public or private real property in the name of the state by
the exercise of the power of condemnation under the laws applicable to the
exercise of that power on property for public use under certain
circumstances.  Makes a conforming change. 

(b) Authorizes TTC, to approve the condemnation of, rather than the board
with TTC's concurrence to condemn, real property that TTC determines is
necessary or convenient for the construction or operation of a turnpike
project, rather than appropriate to construct or efficiently operate, as
described by Section 361.132(d), in addition to other necessities.  Makes
a nonsubstantive change. 

(c) Deletes existing Subsection (c) referring to authorizing the authority
to construct a supplemental facility, and redesignates Subsection (d) as
Subsection (c).  Replaces a reference to the authority's board of
directors' failure to accept and pay for the real property with TxDOT's
failure to accept and pay for the real property. Makes a conforming
change. 

(d)  Redesignates this subsection from Subsection (e).  Provides that an
undertaking under Subsection (c)(2), rather than (d)(2), or an act or
obligation of TxDOT, rather than the authority, or TTC rather than the
board of directors of the authority, does not impose any liability on the
state, TxDOT or TTC, except liability that may be paid from the money
authorized by this chapter.  Makes conforming changes. 

SECTION  17.  Amends Section 361.136, Transportation Code, to make
conforming changes. 

SECTION  18.  Amends Sections 361.137(a), (b), (c), and (d),
Transportation Code, as follows: 

 (a)  Makes a conforming change.

 (b)  Makes a conforming change.
 
(c)  Prohibits TxDOT from filing a declaration of taking before the
completion of certain activities. 

 (d)  Redesignated from existing Subsection (c) to make a conforming
change. 

 (e)  Redesignated from existing Subsection (d) to make a conforming
change. 

SECTION  19.  Amends Sections 361.138(a) and (b), Transportation Code, to
make conforming changes. 

SECTION  20.  Amends Section 361.141(a), Transportation Code, to make
conforming changes. 

SECTION  21.  Amends Section 361.142, Transportation Code, to make
conforming changes. 

SECTION 22.  Amends Sections 361.171, Transportation Code, as follows:

(a)  Authorizes TTC, rather than the authority, to authorize, rather than
provide for, the issuance of turnpike revenue bonds, by order, rather than
resolution, to pay all or part of the cost of a turnpike project. 

(b)  Requires the bonds of each issue, as determined in the order
authorizing the issuance, to meet certain requirements. 

(c)-(d) Make conforming changes.

(e)  Authorizes additional bonds to be issued in the same manner to pay
the costs of a turnpike project, rather than provide the amount of the
deficit, if the proceeds of a bond issue are less than the turnpike
project cost.  Authorizes TTC to issue bonds for a turnpike project
secured by a lien on the revenue of the turnpike project subordinate to
the lien on the revenue securing other bonds issued for the turnpike
project. 

(f)  Requires the surplus to be segregated from the other money of TTC and
used only for the purposes specified in the order authorizing the
issuance, rather than deposited to the credit of the sinking fund for the
bonds, if the proceeds of a bond issue exceed the cost of the turnpike
project for which the bonds were issued. 

 (g)  No changes.

(h)  Provides that bonds issued and delivered under this chapter and
interest coupons on the bonds are a security under Chapter 8, Business &
Commerce Code. 

(i)  Provides that bonds issued under this chapter and income from the
bonds, including any profit made on the sale or transfer of the bonds, are
exempt from taxation in this state.   

SECTION  23.  Amends Section 361.172, Transportation Code, as follows:

Sec.  361.172.  New Heading:  APPLICABILITY OF OTHER LAW; CONFLICTS.  (a)
Provides that all laws affecting the issuance of bonds by governmental
entities, including certain chapters of the Government Code, apply to
bonds issued under this chapter. Provides that to the extent of a conflict
between those laws and this chapter, the provisions of this chapter
prevail.  Deletes text relating to turnpike bonds. 

SECTION  24.  Amends Section 361.173, Transportation Code,  as follows:

Sec. 361.173.  PAYMENT OF BONDS; CREDIT OF STATE NOT PLEDGED.  (a) Deletes
"the money authorized for their payment under this chapter or other law"
as a source of certain payments on bonds and adds " amounts received under
a credit agreement relating to the turnpike project for which the bonds
are issued."  Makes a  conforming change. 

(b) Provides that TTC and TxDOT, rather than the authority, are not
obligated to pay the bond or the interest on the bond from a source other
than the amount pledged to pay the bond and the interest on the bond. 

(c) Makes a conforming change.

SECTION  25.  Amends Section 361.174, Transportation Code, to delete a
reference to money other than that derived from a different turnpike
project, and to make conforming changes. 

SECTION  26.  Amends Section 361.175, Transportation Code, to make
conforming changes. 

SECTION 27.  Amends Subchapter E, Chapter 361, Transportation Code, by
adding Sections 361.1751-361.1753, as follows: 

Sec.  361.1751.  INTERIM BONDS.  (a)  Authorizes TTC, before issuing
definitive bonds, to issue interim bonds, with or without coupons,
exchangeable for definitive bonds. 

(b)  Authorizes an order authorizing interim bonds to provide that the
interim bonds recite that the bonds are issued under this chapter.
Provides that the recital is conclusive evidence of the validity and
regularity of the bonds' issuance. 

Sec.  361.1752.  EFFECT OF LIEN.  (a)  Provides that a lien on or a pledge
of revenue from a turnpike project or on a reserve, replacement, or other
fund established in connection with a bond issued under this chapter meets
certain conditions. 

(b)  Provides that an order authorizing the issuance of bonds is not
recorded except in the regular records of TxDOT. 

Sec.  361.1753.  APPROVAL OF BONDS BY ATTORNEY GENERAL.  (a)  Requires TTC
to submit to the attorney general for examination the record of
proceedings relating to bonds authorized under this chapter.  Requires the
record to include the bond proceedings and any contract securing or
providing revenue for the payment of the bonds. 

(b)  Provides that if the attorney general determines that the bonds, the
bond proceedings, and any supporting contract are authorized by law, the
attorney general is required to approve the bonds and deliver to the
comptroller certain documents. 

(c)  Requires the comptroller to register the record of proceedings on
receipt of the legal opinion of the attorney general and the record of
proceedings relating to the authorization of the bonds. 

(d)  Provides that after approval by the attorney general, the bonds, the
bond proceedings, and any supporting contract are valid, enforceable, and
incontestable in any court or other forum for any reason and are binding
obligations according to their terms for all purposes. 

SECTION  28.  Amends Sections 361.176(a) and (e), Transportation Code, to
make conforming changes. 

SECTION  29.  Amends Section 361.177, Transportation Code, to authorize a
trust agreement or order providing for the issuance of bonds to contain
certain provisions to protect and enforce the rights and remedies of the
bondholders.  Removes the term "reasonable" in relation to provisions and
makes conforming changes. 

SECTION  30.  Amends Section 361.178, Transportation Code, as follows:
 
Sec.  361.178.  FURNISHING OF INDEMNIFYING BONDS OR PLEDGE OF SECURITIES.
Authorizes a bank or trust company incorporated under the laws of, rather
than that has its main office or a branch office in, this state and that
acts as depository of the proceeds of bonds or of revenue to furnish
indemnifying bonds or pledge securities that TxDOT, rather than the
authority, requires. 

SECTION  31.  Amends Sections 361.179(a), (b), (d), (e), and (g),
Transportation Code, as follows: 

(a)  Authorizes TxDOT to perform certain actions.

(b)  Includes contributions with other revenue used to pay certain costs.

(d)-(e) and (g) Make conforming changes.

SECTION 32.  Amends Section 361.183(b), Transportation Code, to make a
conforming change. 

SECTION 33.  Amends Section 361.185, Transportation Code, to include
"without the prior approval of the comptroller" in relation to funds held
in trust. Makes conforming changes. 

SECTION 34.  Amends Section 361.186, Transportation Code, as follows:

Sec. 361.186.  REMEDIES.  Deletes text referring to a coupon incident to a
bond and makes conforming changes. 

SECTION 35.  Amends Section 361.187(a), Transportation Code, to make
conforming changes. 

SECTION 36.  Amends Section 361.188, Transportation Code, to make a
conforming change. 

SECTION 37.  Amends Section 361.189, Transportation Code, to make
conforming changes. 

SECTION 38.  Amends Section 361.191, Transportation Code, as follows:

Sec. 361.191.  New heading: EXPENDITURE OF MONEY AUTHORIZED BY COMMISSION.
(a) Authorizes TTC, rather than TxDOT, to provide for the expenditure of
money for the cost of the acquisition, construction, maintenance, or
operation of a turnpike project.  Authorizes TTC, rather than TxDOT, to
require the repayment of, rather than the authority to repay, money
provided under this section from toll revenue or other sources on terms
established by TTC. 

(b) Makes a conforming change.

SECTION 39.  Amends Section 361.231(a), Transportation Code, to delete the
specification to the extent applicable, in reference to awarding a TxDOT
contract for the construction, improvement, repair, or maintenance of a
turnpike.  Includes a reference to Section 223.011 (Partial Payment
Exception: Maintenance and Preconstruction Contracts).  Makes conforming
and nonsubstantive changes. 

SECTION 40.  Amends Sections 361.232(b), (c), and (d), Transportation
Code, to make conforming and nonsubstantive changes. 

SECTION 41.  Amends Sections 361.233(a) and (c), Transportation Code, to
make conforming changes. 

SECTION 42.  Amends Sections 361.234(a), (b), (d), (e), (f), and (g),
Transportation Code, as follows: 

(a), (b), and (d) Make conforming changes.

 (e)  Deletes text referring to the authority's powers and duties. Makes
conforming and nonsubstantive changes. 

(f) and (g) Make conforming changes.

SECTION 43.  Amends Section 361.235(a), Transportation Code, to make
conforming changes. 

SECTION 44.  Amends Section 361.236, Transportation Code, to make a
conforming change. 

SECTION 45.  Amends Sections 361.238 (b) and (c), Transportation Code, as
follows: 

(b)  Authorizes TTC to continue to charge a toll to fund the construction,
maintenance, and operation of other turnpike projects in the region in
which the turnpike project is located, rather than sufficient to pay the
costs of maintaining the facility, if the conditions of Subsections (a)(1)
and (2) are met. 

 (c)  Makes a conforming change.

SECTION 46.  Amends Section 361.251, Transportation Code, as follows:

Sec. 361.251.  New heading: TURNPIKE PROJECT A STATE HIGHWAY.  Provides
that a turnpike project is a state highway subject to all laws applicable
to the regulation and control of traffic on a state highway, rather than a
public highway. 

SECTION 47.  Amends Section 361.253, Transportation Code, by amending
Subsections (b), (d), (e), and (g), and adding Subsection (i), as follows: 

(b), (d), and (e) Make conforming changes.

(g) Requires the court in which a person is convicted of an offense under
this section to collect the proper toll and administrative fee and forward
them to TxDOT for deposit in the depository bank used for that purpose.
Makes a conforming change. 

(i) Authorizes TxDOT to contract, in accordance with Section 2107.003
(Collection by Attorney General or Outside Agent), Government Code,  with
a person to collect the unpaid toll and administrative fee before
referring the matter to a court with jurisdiction over the offense. 

SECTION 48.  Amends Section 361.255(b), Transportation Code, to make
conforming changes. 

SECTION 49.  Amends Sections 361.256 (a), (b), and (d), Transportation
Code, to make conforming changes. 

SECTION 50.  Amends the heading to Subchapter H, Chapter 361,
Transportation Code, to read as follows: 

SUBCHAPTER H. TRANSFER OF TURNPIKE PROJECT

SECTION 51.  Amends Section 361.281, Transportation Code, to include a
regional mobility authority created under Section 361.003 (Regional
Mobility Authority) in the list of entities to which this subchapter
applies. 

SECTION 52.  Amends Section 361.282, Transportation Code, as follows:

Sec. 361.282.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE PROJECT.  (a)
Includes a regional mobility authority in the list of entities to which
TxDOT is authorized to lease, sell, or convey in another manner a turnpike
project. 

(b) Makes conforming and nonsubstantive changes.
 
SECTION 53.  Amends Section 361.283, Transportation Code, as follows:

Sec. 361.283.  New heading: DISCHARGE OF OUTSTANDING BONDED INDEBTEDNESS.
Makes a conforming change. 

SECTION 54.  Amends Subchapter H, Chapter 361, Transportation Code, by
adding Section 361.284, as follows: 

Sec. 361.284.  REPAYMENT OF DEPARTMENT'S EXPENDITURES.  (a) Requires an
agreement to lease, sell, or convey a turnpike project under Section
361.282, to provide for the repayment of any expenditures of the
department for the design, construction, operation, and maintenance of the
project, that have not been reimbursed with the proceeds of bonds issued
for the project, except as provided by Subsection (b). 

(b) Authorizes TTC to waive repayment of all or a portion of the
expenditures if it finds that the transfer will result in substantial net
benefits to the state, TxDOT, and the public that equal or exceed the
amount of repayment waived. 

SECTION 55.  Amends Section 361.285(a), Transportation Code, to make a
conforming change. 

SECTION 56.  Amends Section 361.301, Transportation Code, as follows: 

Sec. 361.301.  AGREEMENTS WITH PUBLIC OR PRIVATE ENTITIES TO CONSTRUCT,
MAINTAIN, REPAIR, AND OPERATE TURNPIKE PROJECTS. Provides that,
notwithstanding Section 361.231, Transportation Code, and Subchapter A,
Chapter 2254 (Professional Services), Government Code, TxDOT may enter
into certain agreements.  Makes a conforming change. 

(b) Makes a conforming change.

SECTION 57.  Amends Section 361.302, Transportation Code, as follows:

Sec. 361.302.  New heading: COMPREHENSIVE DEVELOPMENT AGREEMENTS.
Authorizes TxDOT to enter into a comprehensive, rather than use an
exclusive, development agreement with a private entity to construct,
maintain, repair, operate, extend, or expand a turnpike project. 

  (b)  Defines "comprehensive development agreement."

  (c)  Provides certain powers of TxDOT.

(d)  Provides that the authority to enter into comprehensive development
agreements provided by this section expires on August 31, 2011. 

SECTION 58.  Amends Subchapter I, Chapter 361, Transportation Code, by
adding Section 361.3021-361.3024, as follows: 

Sec.  361.3021. LIMITATION ON DEPARTMENT FINANCIAL PARTICIPATION.
Prohibits the amount of money disbursed by TxDOT from the state highway
fund and the Texas mobility fund from exceeding a certain amount. 

Sec.  361.3022.  PROCESS FOR ENTERING INTO COMPREHENSIVE DEVELOPMENT
AGREEMENTS.  (a)  Requires TxDOT to use a competitive procurement process,
if TxDOT enters into a comprehensive development agreement. Authorizes
TxDOT to accept unsolicited proposals for a proposed project or solicit
proposals in accordance with this section. 

(b)  Requires TxDOT to establish rules and procedures for accepting
unsolicited proposals that require the private entity to include certain
items in the proposal. 
 
(c)  Requires TxDOT to publish a request for competing proposals and
qualifications in the Texas Register that includes the criteria used to
evaluate the proposals, the relative weight given to the criteria, and a
deadline by which proposals must be received. 

(d)  Requires a proposal submitted in response to a request published
under Subsection (c) to contain certain information. 

(e)  Authorizes TxDOT to interview with a private entity submitting an
unsolicited proposal or responding to a request under Subsection (c).
Requires TxDOT to evaluate each proposal based on the criteria described
in the notice. Requires TxDOT to qualify at least two private entities to
submit detailed proposals for a project under Subsection (f) unless TxDOT
does not receive more than one proposal or one response to a request. 

(f)  Requires TxDOT to issue a request for detailed proposals from all
qualified private entities if TxDOT proceeds with the further evaluation
of a proposed project.  Provides that a request may require certain
additional information. 

(g)  Authorizes TxDOT to solicit input from qualified entities or any
other person in issuing a request for proposals.  Authorizes TxDOT to
solicit input regarding alternative technical concepts after issuing a
request under Subsection (f). 

(h)  Requires TxDOT to rank each proposal and select the private entity
offering the best value. 

(i)  Authorizes TxDOT to enter into discussions with the private entity
and requires those discussions to be limited to certain topics. 

(j)  Authorizes TxDOT to enter into discussions with the private entity
with the next-highest ranking proposal under certain circumstances. 

(k)  Authorizes TxDOT to withdraw a request for competing proposals and
qualifications or a request for detailed proposals at any time.
Authorizes TxDOT to publish a new request. 

(l)  Authorizes TxDOT to require that an unsolicited proposal be
accompanied by a nonrefundable fee to cover TxDOT's review costs. 

(m)  Authorizes TxDOT to pay an unsuccessful private entity that submits a
response to a request for detailed proposals a stipulated amount of the
final contract price.  Requires the amount to be stated in the request for
proposals and prohibits exceeding the value of any work product contained
in the proposal that can be used by TxDOT in the performance of its
functions.  Provides that the use by TxDOT of any design element contained
in an unsuccessful proposal is at the sole risk of TxDOT and does not
confer liability on the recipient of the stipulated amount. Provides that
after payment of the stipulated amount the work product becomes the
property of TxDOT. 

(n)  Authorizes TxDOT to prescribe the general form of a comprehensive
development agreement and include any matter TxDOT considers advantageous
to TxDOT.  Requires TxDOT and the private entity to finalize the specific
terms of a comprehensive development agreement. 

(o)  Provides that Subchapter A, Chapter 223, and Chapter 2254, Government
Code, do not apply to a comprehensive development agreement entered into
under Section 361.302. 

 Sec.  361.3023.  CONFIDENTIALITY OF INFORMATION RELATING TO COMPREHENSIVE
DEVELOPMENT AGREEMENTS.  (a)  Provides that certain information is
confidential and not subject to disclosure. 

(b)  Provides that the final rankings of each proposal under each of the
published criteria are not confidential. 

Sec.  361.3024.  PERFORMANCE AND PAYMENT SECURITY.  (a)  Requires TxDOT to
require a private entity entering into a comprehensive development
agreement to provide a performance and payment bond or an alternative form
of security in a sufficient amount. 

(b)  Requires a performance and payment bond or alternative form of
security to be in an amount equal to the cost of constructing or
maintaining the project. 

  (c)  Requires TxDOT to set the amount of the security if necessary.

(d)  Provides that a form of security is not required for the portion of
an agreement that includes only design or planning services, the
performance of preliminary studies, or the acquisition of real property. 

(e)  Requires the amount of the payment security to not be less than the
amount of the performance security. 

  (f)  Authorizes TxDOT to require alternate forms of security.

(g)  Requires TxDOT by rule to prescribe requirements for alternate forms
of security provided under this section. 

SECTION 59.  Amends Section 361.303, Transportation Code, to make
conforming changes. 

SECTION 60.  Amends Section 361.304, Transportation Code, to make
conforming changes. 

SECTION 61.  Amends Section 361.305, Transportation Code, as follows: 

Sec.  361.305.  TERMS OF PRIVATE INVESTIGATION.  (a)  Makes conforming
changes. 

(b)  Requires a comprehensive development program to include a provision
authorizing TxDOT to purchase the interest of a private equity investor in
a turnpike agreement. 

(c)  Authorizes TxDOT to only enter into a comprehensive development
program with a private equity investor if the project is identified in
TxDOT's unified transportation program or is located on a transportation
corridor identified in the statewide transportation plan. 

SECTION 62.  Amends Section 361.306, Transportation Code, as follows:

Sec. 361.306.  New heading: RULES, PROCEDURES, AND GUIDELINES GOVERNING
SELECTION AND NEGOTIATING PROCESS.  (a) Requires TTC to adopt rules,
procedures, and guidelines, governing selection, in addition to
negotiations. Deletes language relating to private involvement in a
turnpike project.  Makes conforming changes. 

(b)-(d) Redesignated from Subsections (c)-(e).  Makes conforming changes.

SECTION 63.  Amends Section 361.307, Transportation Code, as follows:

  (a)  Makes conforming changes.

(b)  Prohibits TxDOT from entering into an agreement with the  United
Mexican States or one of its states without the approval of the governor. 

SECTION 64.  Amends Section 361.331(a), Transportation Code, to delete
text referring to TTC's approval and to make conforming changes. 

SECTION 65.  Amends Section 361.333, Transportation Code, to make
conforming changes. 

SECTION 66.  Amends Sections 361.334(a) and (e), Transportation Code, to
make conforming changes. 

SECTION 67.  Amends Section 361.335, Transportation Code, to make
conforming changes. 

SECTION 68.  Amends Sections 362.003(b) and (c), Transportation Code, as
follows: 

(b) Provides that Chapters 1201 (Public Security Procedures Act) and 1371
(Obligations for Certain Public Improvements), Government Code, and
Subchapters A (General Provisions), B (Advance Refunding Procedures), and
C (Direct Deposit With Paying Agent), Chapter 1207 (Refunding Bonds),
Government Code, apply to bonds issued by TTC under this chapter. 

(c) Authorizes TxDOT to enter into all agreements necessary or convenient
to effectuate the purposes of this chapter.  Deletes text referring to the
chapter being cumulative of laws affecting the authority and chapters
referenced regarding applicability to bonds. 

SECTION 69.  Amends Sections 362.007(a) and (b), Transportation Code, to
make conforming changes. 

SECTION 70.  Amends Section 362.008, Transportation Code, as follows:

Sec. 362.008.  New heading: ADDITIONAL AGREEMENTS OF DEPARTMENT. Makes a
conforming change. 

SECTION 71.  Amends the heading to Section 545.354, Transportation Code,
to read as follows: 

Sec. 545.354.  AUTHORITY OF  REGIONAL TOLLWAY AUTHORITIES TO ALTER SPEED
LIMITS ON TURNPIKE PROJECTS. 

SECTION 72.  Amends Section 545.354(a)(1), Transportation Code, to
redefine "authority." 

SECTION 73.  Amends Section 621.102(a), Transportation Code, to delete an
exception provided by Subsection (h). 

SECTION 74.  Repealer: Sections 222.103(i) and (j) (Cost Participation),
361.005 (Transfer of Board's Powers and Duties), 361.043 (Entrances and
Exits of Turnpike Project), 361.046 (Compensation of Employees), 361.0485
(Board Meeting by Telephone Conference Call), 361.049 (Consultants),
361.050 (Disadvantaged Business), 361.051 (Public Access), 361.052 (Public
Complaints), 361.053 (Evidence of Action by Authority), 361.055 (Successor
Agency to Authority), 361.102 (Public Hearings), 361.184(f) (Texas
Turnpike Authority Revolving Fund), 361.231(b) (Awarding of Contracts),
361.237 (Operation of Turnpike Project), 361.308 (Participation on Certain
Other Boards, Commissions, or Public Bodies), 362.001(1) (Definitions),
362.052 (Commission Review of Bonds), 362.053 (Contracts Between
Commission and Texas Turnpike), and 621.102(h) (Commission's Authority to
Set Maximum Weights). 

SECTION 75.  Effective date:  upon passage or September 1, 2003.