SRC-JEC C.S.H.B. 3588 78(R)  BILL ANALYSIS


Senate Research CenterC.S.H.B. 3588
By: Krusee (Ogden)
Infrastructure Development and Security
5/24/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

C.S.H.B. 3588 provides for a comprehensive restructuring of the methods of
developing, financing, operating, and policing the state's transportation
system to enhance safety, efficiency, and mobility. 

During the 20th century Texas experienced tremendous population growth and
great economic expansion.  One reason for that growth was the development
and operation of a world-class transportation system.  That transportation
system had as its primary component a statewide network of highways
financed by motor fuels taxes and centrally directed by the Texas Highway
Department, which later became the Texas Department of Transportation
(TxDOT). 

The 20th-century model for transportation growth will not suffice for the
21st century.  Motor fuels taxes are declining per mile traveled on the
state's highways, and as a result the construction of new highways cannot
keep pace with demand.  Nearly exclusive reliance on the automobile has
produced unacceptable levels of urban congestion, pollution, and motor
vehicle fatalities.  At the same time, the state has not had the legal
tools and financing methods to make full use of other transportation
options, including rail, public transportation, and turnpikes. 

C.S.H.B. 3588 addresses the full scope of transportation issues facing the
state.  It creates new financing tools to generate the funding required to
maintain a working transportation system.  These include the use of bonds
to generate immediate cash flow, mechanisms for funding the Texas mobility
fund, and an increase in fines and fees levied for traffic violations.
Additional cash flow will be generated by increased reliance on turnpikes,
both those funded by tolls paid by motorists and those built by local
authorities and funded over time by the state.  TxDOT is given the
authority to encourage increased reliance on rail transportation.  In
addition, it will begin to plan and construct a new set of intermodal
transportation facilities that will be known as the Trans-Texas Corridor
and that will integrate highway, rail, and utility components.  Regional
Mobility Authorities will give localities greater flexibility in
addressing their local transportation needs 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Transportation
Commission in SECTION 1.01 (Section 227.002, Transportation Code), SECTION
2.01 (Sections 370.035, 370.037, 370.038, and 370.182, Transportation
Code), SECTION 4.01 (Sections 91.003 and 91.033, Transportation Code),
SECTION 5.01 (Section 222.003, Transportation Code), SECTION 6.01 (Section
222.104, Transportation Code), and SECTION 7.01 (Section 284.009,
Transportation Code) of this bill. 

Rulemaking authority is expressly granted to regional mobility authorities
in SECTION 2.01 (Sections 370.033, 370.035, 370.037, 370.168, 370.180, and
370.183, Transportation Code) of this bill. 

Rulemaking authority is expressly granted to the comptroller of public
accounts in SECTION 11.03 (Section 152.0412, Tax Code) of this bill. 

SECTION BY SECTION ANALYSIS

 ARTICLE 1.  TRANS-TEXAS CORRIDOR

SECTION 1.01.  Amends Subtitle B, Title 6, Transportation Code, by adding
Chapter 227, as follows: 

CHAPTER 227.  TRANS-TEXAS CORRIDOR

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 227.001.  DEFINITIONS.  Defines:  "bond," "construction," "credit
agreement," "facility,"  "fee," "operation," "public utility facility,"
"Trans-Texas Corridor," and "turnpike."  

Sec. 227.002.  RULES.  Authorizes the Texas Transportation Commission
(TTC) to adopt rules and authorizes the Texas Department of Transportation
(TxDOT) to implement procedures and forms as necessary or convenient to
implement and administer this chapter. 

Sec. 227.003.  APPLICABILITY.  (a) Provides that all laws governing the
financing, design, construction, maintenance, or operation of a highway in
the state highway system apply to the financing, design, construction,
maintenance, or operation of a highway under this chapter unless in
conflict with this chapter. 

(b)  Provides that all laws governing the financing, design, construction,
maintenance, or operation of a turnpike by TxDOT apply to the financing,
design, construction, maintenance, or operation of a turnpike under this
chapter unless in conflict with this chapter. 

(c)  Provides that this chapter does not apply to real or personal
property, facilities, funding, projects, operations, construction, or a
project plan of a transportation authority created under Chapter 451 or
452, unless TTC or its designee has signed a written agreement with the
transportation authority specifying the terms and conditions under which
the transportation authority may participate in the Trans-Texas Corridor. 

[Reserves Sections 227.004-227.010 for expansion.]

SUBCHAPTER B.  ESTABLISHMENT

Sec. 227.011.  DESIGNATION.  Requires TTC to designate facilities for the
Trans-Texas Corridor. 

Sec. 227.012.  ROUTE SELECTION.  Requires TTC to consider certain criteria
when selecting a route for a segment of the Trans-Texas Corridor. 

Sec. 227.013.  PUBLIC PARTICIPATION.  Requires TxDOT, before designating a
route for a segment of the Trans-Texas Corridor, to hold at least one
public hearing in each county through which the segment may pass. 

Sec. 227.014.  ESTABLISHMENT OF DISCRETE SYSTEMS.  (a)  Authorizes TTC, if
it determines that the mobility needs of this state would be most
efficiently and economically met by jointly operating two or more
facilities as one operational and financial enterprise, to create a system
composed of those facilities.  Authorizes TTC to create more than one
system and to combine two or more systems into one system.  Authorizes TTC
to finance, construct, and operate an additional facility as an expansion
of a system if TTC determines that the facility would most efficiently and
economically be constructed and operated if it were a part of the system
and that the addition will benefit the system.  Provides that a system may
only include facilities located wholly or partly within the territory of:
a metropolitan planning organization; or  two adjacent TxDOT districts. 

(b)  Requires that the revenue of a system be accounted for separately and
prohibits it from being commingled with the revenue of a facility that is
not a part of the system. 

Sec. 227.015.  LOCATION OF FACILITIES.  Authorizes TxDOT, notwithstanding
any other law, including Chapter 181, Utilities Code, Chapter 402, Local
Government Code, and Section 49.220, Water Code, to specify the location
of any facility on the Trans-Texas Corridor, and direct the time and
manner of construction or operation of any facility on the Trans-Texas
Corridor. 

[Reserves Sections 227.016-227.020 for expansion.]

SUBCHAPTER C.  DEVELOPMENT AND OPERATION

Sec. 227.021.  AUTHORITY OF DEPARTMENT.  (a)  Authorizes TxDOT to
construct or operate any facility as part of the Trans-Texas Corridor, or
authorize a governmental or private entity to construct or operate a
facility that is part of the Trans-Texas Corridor. 

(b)  Provides that a governmental entity may only construct or operate a
facility that is located in the geographic area within which that entity
is authorized to operate. 

(c)  Authorizes TxDOT, subject to Section 227.029, to grant or deny access
to the Trans-Texas Corridor.  Prohibits TxDOT from discriminating
unreasonably among users or potential users of a facility. 

(d)  Prohibits TxDOT from directly providing telecommunications services
to the public. 

Sec. 227.022.  PARTICIPATION BY OTHER ENTITIES.  (a)  Provides that a toll
or nontoll highway on the Trans-Texas Corridor that is constructed or
operated by another entity shall be part of the state highway system.
Provides that this subsection applies even if the entity constructing or
operating the highway is not independently authorized to construct or
operate a highway that is part of the state highway system. 

(b)  Provides that if TxDOT authorizes another governmental entity to
construct or operate a facility on the Trans-Texas Corridor, that entity
has each power of TxDOT under this chapter with respect to that facility,
including the right to collect fees, except that any property acquired by
the entity shall be held in the name of the state, and the entity may not
file a declaration of taking and obtain early possession of real property. 

(c)  Provides that if TxDOT authorizes another governmental entity to
construct or operate a facility on the Trans-Texas Corridor, that entity
is liable for a claim relating to the Trans-Texas Corridor only to the
extent that TxDOT would be liable if it were constructing or operating the
facility. 

Sec. 227.023.  PARTICIPATION BY PRIVATE ENTITIES.  (a)  Requires TxDOT, to
the maximum extent practical and economical, to encourage the
participation of private entities in the planning, design, construction,
and operation of facilities. 

(b)  Requires TxDOT to contract with a private entity to operate a
railroad using rail facilities owned by TxDOT and prohibits TxDOT from
using TxDOT employees to operate a railroad.  Authorizes TxDOT to maintain
a rail facility directly or through a private entity. 

 (c)  Authorizes TxDOT, to the extent and in the manner that TxDOT may
enter into comprehensive development agreements under Chapter 361 with
regard to turnpikes, to enter into comprehensive development agreements
under this chapter with regard to facilities on the Trans-Texas Corridor.
Provides that all provisions of Chapter 361 relating to comprehensive
development agreements for turnpikes apply to comprehensive development
agreements for facilities under this chapter, including provisions
relating to the confidentiality of information.  Provides that claims
arising under an comprehensive development agreement are subject to
Section 201.112. 

Sec. 227.024.  HIGHWAYS.  Provides that a highway, including a turnpike,
on the TransTexas Corridor is a part of the state highway system. 

Sec. 227.025.  VEHICLE SIZE AND WEIGHT LIMITS.  (a)  Authorizes TTC to
authorize the operation of a vehicle that exceeds the height, length, or
gross weight limitations of Subchapter C, Chapter 621, on a segment of a
highway on the Trans-Texas Corridor if supported by an engineering and
traffic study that includes an analysis of the structural capacity of
bridges and pavements, current and projected traffic patterns and volume,
and potential effects on public safety. 

(b)  Provides that this section does not authorize the operation of a
vehicle that exceeds a maximum axle weight authorized by Chapter 621, 622,
or 623. 

Sec. 227.026.  ACQUISITION OF PERSONAL PROPERTY.  (a)  Authorizes TxDOT to
acquire personal property, except rolling stock, under a conditional sales
contract, lease, equipment trust certificate, or other form of contract or
trust agreement for use in connection with a facility. 

(b)  Authorizes TxDOT to enter into an agreement with a rail operator,
transportation common carrier, transportation system, or any other entity
for the common use of any facility. 

(c)  Authorizes TxDOT to enter into agreements with a public or private
utility, the owner or operator of a communications system, utility common
carrier, or transportation system, or another entity for the common use of
a public utility facility. 

Sec. 227.027.  ENVIRONMENTAL REVIEW.  (a)  Requires TxDOT to conduct or
approve each environmental evaluation or study required for an activity
associated with the Trans-Texas Corridor. 

(b)  Authorizes TTC to allocate responsibilities for conducting
environmental evaluations or studies or preparing environmental
documentation among entities involved in the construction or operation of
any facility of the Trans-Texas Corridor. 

Sec. 227.028.  ENVIRONMENTAL MITIGATION.  (a)  Authorizes TxDOT to
acquire, maintain, hold, restore, enhance, develop, or redevelop property
for the purpose of mitigating a past, present, or future adverse
environmental effect arising from the construction or operation of any
part of the Trans-Texas Corridor without regard to whether the need for
mitigation is established for a particular project. 

(b)  Authorizes TxDOT to contract with a governmental or private entity to
maintain, control, hold, restore, enhance, develop, or redevelop property
for the mitigation of a past, present, or future adverse environmental
effect arising from the construction or operation of any part of the
Trans-Texas Corridor without regard to whether the need for mitigation has
already been established for a particular project. 

 (c)  Authorizes TxDOT, if authorized by the applicable regulatory
authority, to pay a sum of money to an appropriate governmental or private
entity instead of acquiring or managing property for the mitigation of a
past, present, or future adverse environmental effect arising from
construction or operation of any part of the Trans-Texas Corridor without
regard to whether the need for mitigation has already been established for
a particular project. 

Sec. 227.029.  RELOCATION OF EXISTING FACILITIES.  (a)  Authorizes TxDOT
to construct a grade separation at an intersection of a Trans-Texas
Corridor facility with another facility and to change the line or grade of
a facility to accommodate the facility to the design of a grade
separation.  Requires TxDOT to pay the cost of a grade separation and any
damage incurred in changing a line or grade of a facility. 

(b)  Requires TxDOT, if it finds it necessary to change the location of a
portion of a facility, to reconstruct the facility at the location TxDOT
determines to be most favorable.  Requires the reconstructed facility to
be of substantially the same type and in as good condition as the original
facility.  Requires TxDOT to determine and pay the cost of the
reconstruction and any damage incurred in changing the location of a
facility. 

(c)  Provides that this section does not apply to the conversion of any
highway that is a part of the state highway system to a highway of the
Trans-Texas Corridor. 

Sec. 227.030.  UNAUTHORIZED USE.  Authorizes TxDOT to remove unauthorized
personal property, including a vehicle, from the Trans-Texas Corridor
without notice and at the owner's expense.  Provides that moved property
may be stored until claimed by the owner. Provides that if a removed motor
vehicle is not claimed by the owner within 72 hours after the date and
time of removal, it shall be considered abandoned within the meaning of
Chapter 683. Provides that TxDOT and its employees are not liable for
damage to property that is removed from the Trans-Texas Corridor under
this section. 

Sec. 227.031.  EXCLUSIVE LANES.  Authorizes TxDOT to dedicate one or more
lanes of a highway on the Trans-Texas Corridor to the exclusive use of
designated classes of vehicles. 

[Reserves Sections 227.032-227.040 for expansion.]

SUBCHAPTER D.  RIGHT-OF-WAY ACQUISITION

Sec. 227.041.  POWERS AND PROCEDURES.  (a)  Provides that, except as
otherwise provided by this subchapter, TTC has the same powers and duties
relating to the condemnation and acquisition of real property for a
facility of the Trans-Texas Corridor that TTC and TxDOT have relating to
the condemnation or purchase of real property under Subchapter D, Chapter
361, and Section 361.233 for a turnpike project.  Authorizes TTC to
purchase an option to purchase property that TTC is considering for
possible use as part of the Trans-Texas Corridor even if it has not been
finally decided that the Trans-Texas Corridor will be located on that
property.  Authorizes property to be purchased along alternative potential
routes for the TransTexas Corridor even if only one of those potential
routes will be selected as the final route. 

(b)  Provides that an interest in real property or a property right is
necessary or convenient for the construction or operation of a facility if
it is located in or contiguous to an existing or planned segment of the
Trans-Texas Corridor and if its acquisition will further the primary
purposes of the Trans-Texas Corridor.  Sets forth primary purposes. 

(c)  Provides that, unless in conflict with this chapter, all laws
governing the acquisition of right-of-way for a state highway apply to the
acquisition of right-of-way for the  Trans-Texas Corridor.  Provides that
Sections 203.056, 203.057, and 203.058 apply to an acquisition by TxDOT
from a state agency.  Requires compensation to a state agency under those
sections to be reasonable and authorizes it to take the form of a single
payment, a participation payment under Section 227.042, or both a single
payment and a participation payment. 

Sec. 227.042.  CORRIDOR PARTICIPATION PAYMENT FOR REAL PROPERTY.  (a)
Authorizes TxDOT, as an alternative to paying for an interest in real
property or a real property right with a single fixed payment, with the
owner's consent, to pay the owner by means of a corridor participation
payment. 

(b)  Provides that a right to receive a corridor participation payment
under this section is subordinate to any right to receive a fee as payment
on the principal of or interest on a bond that is issued for the
construction of the applicable segment of the Trans-Texas Corridor. 

(c)  Defines "corridor participation payment."

Sec. 227.043.  PURCHASE AND LEASEBACK.  Authorizes TxDOT to acquire real
property for the Trans-Texas Corridor and immediately lease it back to the
former owner for a fixed or indefinite term. 

Sec. 227.044.  RIGHT OF ENTRY TO PROPERTY WITH PUBLIC UTILITY FACILITY.
Requires TxDOT, in order to ensure the safety and convenience of the
public, when entering any real property, water, or premises on which is
located a public utility facility, to comply with applicable industry
standard safety codes and practices, and give the owner or operator of the
facility not less than 10 days' notice before entering the real property,
water, or premises. 

Sec. 227.045.  OTHER GOVERNMENTAL ENTITIES.  Provides that if TxDOT
authorizes another governmental entity to construct or operate a segment
of or a facility on the TransTexas Corridor, that entity has all the
powers and duties of TxDOT under this subchapter, except that the entity
may only construct or operate a facility that is located in the geographic
area within which that entity is authorized to operate, and may not file a
declaration of taking and obtain early possession of real property. 

Sec. 227.046.  COST OF RELOCATING PUBLIC UTILITY FACILITY.  (a)  Requires
that a telecommunications utility or a telecommunications utility holding
a certificate of convenience and necessity, certificate of authority, or
service provider certificate of authority recover from TxDOT its
reasonable costs to relocate a public utility facility to accommodate the
development or construction of the Trans-Texas Corridor. 

(b)  Provides that an owner of a public utility facility is not obligated
to relocate the utility facility on the Trans-Texas Corridor if the owner
determines that another location is feasible. 

(c)  Requires TxDOT, if a public utility facility is located on the
Trans-Texas Corridor, to grant the owner reasonable access to operate and
maintain the utility facility in accordance with industry standard safety
codes and practices. 

(d)  Provides that relocation of facilities pursuant to this section is
subject to TxDOT's reasonable regulations pertaining to public health,
safety, and welfare. 

[Reserves Sections 227.047-227.060 for expansion.]

SUBCHAPTER E.  FINANCING
 
Sec. 227.061.  PERMISSIBLE SOURCES OF FUNDING.  Authorizes TxDOT, subject
to Section 227.062, to use any available source of funding in acquiring
property for, constructing, and operating the Trans-Texas Corridor,
including certain sources. 

Sec. 227.062.  LIMITATIONS ON DEPARTMENT FINANCIAL PARTICIPATION.  (a)
Provides that each fiscal year, the total amount disbursed by TxDOT out of
the state highway fund for certain activities on the Trans-Texas Corridor
may not exceed 20 percent of the obligation authority under the federal
aid highway program that is distributed to this state in that year. 

(b)  Provides that the limitation under Subsection (a) does not apply to
money spent for certain purposes, the proceeds of bonds or other public
securities issued to pay the cost of a facility deposited to the credit of
the state highway fund, revenue attributable to a facility deposited to
the credit of the state highway fund, loans deposited to the credit of the
state highway fund, or contributions from a public or private entity that
are deposited to the credit of the state highway fund. 

(c)  Prohibits the total amount disbursed by TxDOT out of state and
federal funds each fiscal year from exceeding $25 million for the
construction or purchase of non-highway facilities on the Trans-Texas
Corridor.  Provides that this subsection does not apply to funds derived
from the issuance of bonds, private investment, donations, the Federal
Transit Administration, or the Federal Railroad Administration.  Provides
that this subsection also does not apply to activities that are subject to
the limitation in Subsection (a). 

(d)  Prohibits TTC from disbursing money out of the state highway fund for
the initial construction of a facility of the Trans-Texas Corridor unless
TTC finds that the disbursement will reduce traffic congestion to an
extent that is comparable to the reduction in traffic congestion that
would likely be achieved by spending the same amount of money on the
project that is the most reasonable alternative.  Provides that this
subsection does not apply to the disbursement of money out of the state
highway fund for environmental studies or for the acquisition of
right-of-way. 

(e) Prohibits TTC from disbursing money from the state highway fund or the
Texas mobility fund to construct a portion of the Trans-Texas Corridor
unless it would replace or supplement a project identified in TxDOT's
unified transportation program or a transportation corridor identified in
the statewide transportation plan. 

(f) Prohibits TTC from authorizing the construction of rail facilities
unless it finds that the construction will reduce congestion and improve
mobility. 

Sec. 227.063.  FINANCING OF FACILITIES AND SYSTEMS.  (a) Provides that TTC
and TxDOT have the same powers and duties relating to the financing of a
facility or a system established under Section 227.014 as TTC and TxDOT
have under Subchapter E, Chapter 361, relating to the financing of a
turnpike project. 

(b) Provides that the powers held by TTC and TxDOT include the powers to:

(1)  authorize the issuance of bonds to pay all or part of the cost of a
facility or system or to pay for all or part of the cost of a facility or
system that will become a part of another system; 

(2) impose a toll or other fee for the use of a facility or system; and

 (3) obtain from another source the fees and other revenue necessary to
pay all or part of the principal and interest on bonds issued under this
chapter. 

(c) Provides that, for purposes of this section, a reference in Subchapter
E, Chapter 361 to a turnpike project means a facility or system, and
revenue includes a fee established under this chapter.  

Sec. 227.064.  LOANS AND OTHER FUNDING.  Authorizes TxDOT to borrow money
from the United States or use money in the state infrastructure bank
created under Subchapter D, Chapter 222, to fund the construction or
operation of a facility under this chapter.  Provides that money borrowed
under this section may be evidenced by the issuance of bonds. 

[Reserves Sections 227.065-227.080 for expansion.]

SUBCHAPTER F. REVENUE

Sec. 227.081.  FEES.  (a)  Authorizes TxDOT, notwithstanding any other
law, including Chapters 161, 162, 163, and 181, Utilities Code, Chapter
402, Local Government Code, and Chapter 49, Water Code, and except as
provided in Subsection (e), to require a person, including a governmental
or private entity, to pay a fee as a condition of using any part of the
Trans-Texas Corridor. 

(b)  Authorizes TTC to establish fees to be imposed by TxDOT under this
chapter. Provides that fees may be set as absolute amounts, as a
percentage of revenue, as a percentage of actual use or throughput, as a
designated portion or percentage of initial facility funding, or on any
other reasonable basis.  Authorizes TTC, subject to approval by a body
having jurisdiction and authority to establish a tariff, to establish
joint fees and divisions of fees. 

(c)  Authorizes a fee to exceed TxDOT's costs, but prohibits TTC from
establishing a fee that is prohibitive or that discriminates unreasonably
among users or potential users of a facility. 

(d)  Requires TTC, in establishing a fee or the amount of a fee under this
section, to consider certain information. 

(e)  Prohibits TxDOT, if a public road is replaced or eliminated by the
Trans-Texas Corridor and a facility used the right-of-way of that road
under Chapter 161, 162, 163, or 181, Utilities Code, Chapter 402, Local
Government Code, or Chapter 49, Water Code, from requiring the owner of
that facility to pay a fee as a condition of using a segment of the
Trans-Texas Corridor for the location of a replacement facility. 

(f)  Prohibits TxDOT from requiring the owner of a public utility facility
to pay a fee as a condition of crossing the Trans-Texas Corridor. 

Sec. 227.082.  LEASE OF PROPERTY OR RIGHTS.  (a)  Authorizes TxDOT to
lease property on the Trans-Texas Corridor to any public or private
entity.  Authorizes a lease to be for a term not longer than 50 years. 

(b)  Authorizes TxDOT to grant a franchise to use or operate a facility on
the TransTexas Corridor.  Authorizes a franchise under this section to be
granted for a term not longer than 50 years. 

(c)  Authorizes TxDOT to grant an exclusive or nonexclusive license to
access or use any portion of the Trans-Texas Corridor for any purpose.
Authorizes a license granted  under this section to be for a definite or
indefinite term.  Prohibits TxDOT from granting an exclusive license to
access or use a highway on the Trans-Texas Corridor. 

(d)  Authorizes property to be leased or a franchise or license to be
granted for any purpose, including use as a facility and use for unrelated
commercial, industrial, or agricultural purposes. 

(e)  Authorizes TxDOT, in return for a lease, franchise, or license, to
accept anything of value as consideration, including certain payments. 

Sec. 227.083.  DISPOSITION OF FEES.  Requires revenue received by TxDOT
under this chapter, to the extent that it is not dedicated to another
purpose by the constitution, by statute, or by contract, to be deposited
to the credit of the state highway fund and authorizes its use for any
purpose authorized by this chapter. Provides that Subchapter D, Chapter
316, Government Code, and Section 403.095, Government Code, do not apply
to revenue received under this chapter. 

SECTION 1.02.  Amends Subchapter H, Chapter 545, Transportation Code, by
adding Section 545.3531, as follows: 

Sec. 545.3531.  AUTHORITY OF TEXAS TRANSPORTATION COMMISSION TO ESTABLISH
SPEED LIMITS ON TRANS-TEXAS CORRIDOR.  (a)  Authorizes TTC,
notwithstanding Section 545.352, by order recorded in its minutes and
except as provided by Subsection (d), to determine and declare on a
highway segment of the Trans-Texas Corridor designated under Chapter 227 a
reasonable and safe prima facie speed limit in excess of a prima facie
speed limit established by Section 545.352. 

(b)  Requires TTC, in determining whether a prima facie speed limit is
reasonable and safe, to conduct an engineering and traffic investigation
and to consider the width and condition of the pavement, the usual traffic
on the highway segment, the suitability of existing safety features, and
other circumstances. 

(c)  Provides that a prima facie speed limit that is declared by TTC under
this section is effective when TxDOT erects signs giving notice of the new
limit.  Provides that a new limit that is enacted under this section is
effective at all times or at other times as determined. 

(d)  Prohibits TTC from modifying the rules established by Section
545.351(b), or establishing a speed limit of more than 85 miles per hour. 

(e)  Requires TTC, in conducting the engineering and traffic investigation
specified by Subsection (b), to follow the "Procedures for Establishing
Speed Zones" as adopted by TTC. 

SECTION 1.03.  Effective date of his article: upon passage or September 1,
2003. 

ARTICLE 2.  REGIONAL MOBILITY AUTHORITIES

SECTION 2.01.  Amends Subtitle G, Title 6, Transportation Code, by adding
Chapter 370, as follows: 

CHAPTER 370.  REGIONAL MOBILITY AUTHORITIES

SUBCHAPTER A. GENERAL PROVISIONS

 Sec. 370.001.  SHORT TITLE.  Authorizes this chapter to be cited as the
Regional Mobility Authority Act. 

Sec. 370.002.  DEFINITIONS.  Defines:  "authority," "board," "bond," "bond
proceeding," "bond resolution," "bondholder," "governmental entity,"
"highway," "public utility facility," "revenue," "surplus revenue,"
"system," "transportation project," and "turnpike project." 

Sec. 370.003.  CONSTRUCTION COSTS DEFINED.  (a)  Sets forth costs included
in the cost of acquisition, construction, improvement, extension, or
expansion of a transportation project under this chapter. 

(b)  Authorizes costs attributable to a transportation project and
incurred before the issuance of bonds to finance the transportation
project to be reimbursed from the proceeds of sale of the bonds. 

[Reserves Sections 370.005-370.030 for expansion.]

SUBCHAPTER B.  CREATION AND POWERS OF REGIONAL MOBILITY AUTHORITIES

Sec. 370.031.  CREATION OF A REGIONAL MOBILITY AUTHORITY.  (a)  Authorizes
TTC by order, at the request of one or more counties, to authorize the
creation of a regional mobility authority (authority) for the purposes of
constructing, maintaining, and operating transportation projects in a
region of this state.  Provides that an authority is governed in
accordance with Subchapter F. 

(b)  Prohibits an authority from being created without the approval of TTC
under Subsection (a). 

Sec. 370.0315.  ADDITION AND WITHDRAWAL OF COUNTIES.  (a)  Authorizes one
or more counties to petition TTC for approval to become part of an
existing authority. Authorizes TTC to approve the petition only if the
board of directors of the authority (board) has agreed to the addition,
and TTC finds that the affected political subdivisions in the county or
counties will be adequately represented on the board. 

(b)  Authorizes one or more counties to petition TTC for approval to
withdraw from an authority.  Authorizes TTC to approve the petition only
if the authority has no bonded indebtedness, or the authority has debt
other than bonded indebtedness, but the board has agreed to the
withdrawal. 

(c)  Prohibits a county from becoming part of an authority or withdrawing
from an authority without the approval of TTC. 

Sec. 370.032.  NATURE OF REGIONAL MOBILITY AUTHORITY.  (a)  Provides that
an authority is a body politic and corporate and a political subdivision
of this state. 

(b)  Provides that an authority is a governmental unit as that term is
defined in Section 101.001, Civil Practice and Remedies Code. 

(c)  Provides that the exercise by an authority of the powers conferred by
this chapter in the acquisition, design, financing, construction,
operation, and maintenance of a transportation project or system is in all
respects for the benefit of the people of the counties in which an
authority operates and of the people of this state, for the increase of
their commerce and prosperity, and for the improvement of their health,
living conditions, and public safety; and an essential governmental
function of the state. 

 (d)  Provides that the operations of an authority are governmental, not
proprietary, functions. 

Sec. 370.033.  GENERAL POWERS.  (a)  Sets forth the powers of an
authority, including the power to make rules. 

(b)  Provides that, except as provided by this subsection, property that
is a part of a transportation project of an authority is not subject to
condemnation or the exercise of the power of eminent domain by any person,
including a governmental entity. Authorizes TxDOT to condemn property that
is a part of a transportation project of an authority if the property is
needed for the construction, reconstruction, or expansion of a state
highway or rail facility. 

(c)  Authorizes an authority to sue and be sued and plead and be impleaded
in its own name. 

(d)  Requires an authority to adopt written procedures governing its
procurement of goods and services that are consistent with general laws
applicable to the authority. 

(e)  Prohibits an authority from applying for federal highway funds
without the approval of TxDOT. 

Sec. 370.034.  ESTABLISHMENT OF TRANSPORTATION SYSTEMS.  (a)  Authorizes
an authority, if it determines that the traffic needs of the counties in
which it operates and the traffic needs of the surrounding region could be
most efficiently and economically met by jointly operating two or more
transportation projects as one operational and financial enterprise, to
create a system made up of those transportation projects.  Authorizes an
authority to create more than one system and to combine two or more
systems into one system.  Authorizes an authority to finance, acquire,
construct, and operate additional transportation projects as additions to
or expansions of a system if the authority determines that the
transportation project could most efficiently and economically be acquired
or constructed if it were a part of the system and that the addition will
benefit the system. 

(b)  Requires the revenue of a system to be accounted for separately and
prohibits it from being commingled with the revenue of a transportation
project that is not a part of the system or with the revenue of another
system. 

Sec. 370.035.  TRANSFER OF A SEGMENT OF THE STATE HIGHWAY SYSTEM.  (a)
Authorizes TTC by order to transfer a segment of the state highway system,
whether tolled or not, to an authority under certain circumstances. 

(b)  Provides that TTC may only make a transfer under this section if TTC
determines that the transfer is the most feasible and economic means to
accomplish necessary expansions, extensions, or improvements of the
transferred segment of the highway. Prohibits tolls from being collected
by an authority from a transferred segment of highway except to finance
the expansion, extension, operation, and maintenance of that highway. 

(c)  Requires an authority to reimburse TTC for the cost of a transferred
segment of highway unless TTC determines that the transfer will result in
a substantial net benefit to the state, TxDOT, and the traveling public
that equals or exceeds that cost. 

(d)  Requires TTC to consider certain factors in computing the cost of the
segment of highway. 

 (e)  Authorizes TTC, at the time a segment of highway is transferred, to
remove the segment from the state highway system.  Provides that after a
transfer, TTC has no liability, responsibility, or duty for the
maintenance or operation of the segment of highway. 

(f)  Requires TTC, before transferring a segment of highway that is part
of the state highway system under this section, to conduct a public
hearing at which interested persons shall be allowed to speak on the
proposed transfer.  Requires notice of the hearing to be published in the
Texas Register, one or more newspapers of general circulation in the
counties in which the turnpike project is located, and a newspaper, if
any, published in the counties of the applicable authority. 

(g)  Requires TTC to adopt rules to implement this section.  Requires the
rules to include criteria and guidelines for the approval of a transfer. 

(h)  Requires an authority to adopt rules providing criteria and
guidelines for approval of the transfer under this section. 

(i)  Prohibits TTC from transferring the Queen Isabella Causeway in
Cameron County to an authority under this section. 

Sec. 370.036.  TRANSFER OF BONDED TURNPIKE PROJECT TO DEPARTMENT. (a)
Authorizes an authority to transfer to TxDOT a turnpike project of the
authority that has outstanding bonded indebtedness if TTC agrees to the
transfer and agrees to assume the outstanding bonded indebtedness. 

(b)  Authorizes TTC to assume the outstanding bonded indebtedness only
under certain circumstances. 

(c)  Requires the authority, if TTC agrees to the transfer under
Subsection (a), to convey the turnpike project and any real property
acquired to construct or operate the turnpike project to TxDOT. 

(d)  Requires TTC, at the time of a conveyance under this section, to
designate the turnpike project as part of the state highway system.
Provides that after the designation, the authority has no liability,
responsibility, or duty to maintain or operate the transferred turnpike
project. 

Sec. 370.037.  TRANSFER OF FERRY CONNECTING STATE HIGHWAYS.  (a)
Authorizes TTC, by order, to transfer a ferry operated under Section
342.001 to an authority under certain circumstances. 

(b)  Requires an authority to reimburse TTC for the cost of a transferred
ferry unless TTC determines that the transfer will result in a substantial
net benefit to the state, TxDOT, and the traveling public that equals or
exceeds that cost. 

(c)  Requires TTC, in computing the cost of the ferry, to include the
total amount spent by TxDOT for the original construction of the ferry,
including the costs associated with the preliminary engineering and design
engineering for plans, specifications, and estimates, the acquisition of
necessary rights of way, and actual construction of the ferry and all
necessary appurtenant facilities and consider the anticipated future costs
of expanding, improving, maintaining, or operating the ferry to be
incurred by the authority and not by TxDOT if the ferry is transferred. 

(d)  Requires TTC to, at the time the ferry is transferred, remove the
ferry from the  state highway system.  Provides that after a transfer, TTC
has no liability, responsibility, or duty for the maintenance or operation
of the ferry. 

(e)  Requires TTC, before transferring a ferry that is a part of the state
highway system under this section, to conduct a public hearing at which
interested persons are required to be allowed to speak on the proposed
transfer.  Requires notice of the hearing to be published in the Texas
Register, one or more newspapers of general circulation in the counties in
which the ferry is located, and a newspaper, if any, published in the
counties of the applicable authority. 

(f)  Requires TTC to adopt rules to implement this section.  Requires the
rules to include criteria and guidelines for the approval of a transfer of
a ferry. 

(g)  Requires an authority to adopt rules establishing criteria and
guidelines for approval of the transfer of a ferry under this section. 

(h)  Authorizes an authority to temporarily charge a toll for use of a
ferry transferred under this section to pay the costs necessary for an
expansion of the ferry.  Authorizes an authority to permanently charge a
toll for use of ferry facilities that are an expansion of the ferry
transferred under this section. 

(i)  Prohibits TTC  from transferring a ferry under this section if the
ferry is located in a municipality with a population of 5,000 or less,
unless the city council of the municipality approves the transfer. 

Sec. 370.038.  COMMISSION RULES.  (a)  Requires TTC to adopt rules that
govern the creation of an authority and TTC's approval of a project under
Section 370.182 and other TTC approvals required by this chapter;
establish design and construction standards for a transportation project
that will connect with a highway in the state highway system or a
department rail facility; establish minimum audit and reporting
requirements and standards; and establish minimum ethical standards for
authority directors and employees. 

(b)  Requires TTC to appoint a rules advisory committee to advise TxDOT
and TTC on the development of the TTC's initial rules required by this
section.  Requires the committee to include one or more members
representing an existing authority, if applicable.  Chapter 2110 (State
Agency Advisory Committees), Government Code, does not apply to the
committee.  Provides that this subsection expires on the date TTC adopts
initial rules under this section. 

[Reserves Sections 370.039-370.070 for expansion.]

SUBCHAPTER C.  FEASIBILITY OF REGIONAL TRANSPORTATION PROJECTS

Sec. 370.071.  EXPENDITURES FOR FEASIBILITY STUDIES.  (a)  Authorizes an
authority to pay the expenses of studying the cost and feasibility and any
other expenses relating to the preparation and issuance of bonds for a
proposed transportation project by certain methods. 

(b)  Requires money spent under this section for a proposed transportation
project to be reimbursed to the transportation project from which the
money was spent from the proceeds of bonds issued for the acquisition and
construction of the proposed transportation project. 

(c)  Provides that the use of any money of a transportation project to
study the feasibility of another transportation project or used to repay
any money used for that  purpose does not constitute an operating expense
of the transportation project producing the revenue and is authorized to
be paid only from the surplus money of the transportation project as
determined by the authority. 

Sec. 370.072.  FEASIBILITY STUDY FUND.  (a)  Authorizes an authority to
maintain a feasibility study fund.  Provides that the fund is a revolving
fund held in trust by a banking institution chosen by the authority and
requires the fund to be kept separate from the money for a transportation
project. 

(b)  Authorizes an authority to transfer an amount from a surplus fund
established for a transportation project to the authority's feasibility
study fund if the remainder of the surplus fund after the transfer is not
less than any minimum amount required by the bond proceedings to be
retained for that transportation project. 

(c)  Authorizes money in the feasibility study fund to be used only to pay
the expenses of studying the cost and feasibility and any other expenses
relating to certain activities. 

(d)  Requires money spent under Subsection (c) for a proposed
transportation project to be reimbursed from the proceeds of revenue bonds
issued for, or other proceeds authorized to be used for, the acquisition,
construction, improvement, extension, expansion, or operation of the
transportation project. 

(e)  Authorizes an authority, for a purpose described by Subsection (c),
to borrow money and issue promissory notes or other interest bearing
evidences of indebtedness payable out of its feasibility study fund,
pledging money in the fund or to be placed in the fund. 

Sec. 370.073.  FEASIBILITY STUDY BY MUNICIPALITY, COUNTY, OTHER
GOVERNMENTAL ENTITY, OR PRIVATE GROUP.  (a)  Authorizes one or more
municipalities, counties, or other governmental entities, a combination of
municipalities, counties, and other governmental entities, or a private
group or combination of individuals in this state to pay all or part of
the expenses of studying the cost and feasibility and any other expenses
relating to certain activities. 

(b)  Provides that money spent under Subsection (a) for a proposed
transportation project is reimbursable without interest and with the
consent of the authority to the person paying the expenses described in
Subsection (a) out of the proceeds from revenue bonds issued for or other
proceeds authorized to be used for the acquisition, construction,
improvement, extension, expansion, maintenance, repair, or operation of
the transportation project. 

[Reserves Sections 370.074-370.110 for expansion.]

SUBCHAPTER D.  TRANSPORTATION PROJECT FINANCING

Sec. 370.111.  FINANCING OF PROJECTS AND SYSTEMS.  (a)  Provides that an
authority has the same powers and duties relating to the financing of a
transportation project or a system established under Section 370.034 as a
regional tollway authority has under Subchapter D, Chapter 366, relating
to the financing of a turnpike project or system. 

(b) Sets forth powers held by an authority.

(c) Provides that for purposes of this section, a reference in Subchapter
D, Chapter 366, to a turnpike project means a transportation project, an
authority or board means an authority and board described in this chapter,
and revenue includes a fee, fare, or  other usage charge established under
this chapter. 

[Reserves Sections 370.112-370.160 for expansion.]

SUBCHAPTER E.  ACQUISITION, CONSTRUCTION, AND OPERATION OF TRANSPORTATION
PROJECTS 

Sec. 370.161.  JURISDICTION.  Authorizes an authority to acquire,
construct, operate, maintain, expand, or extend a transportation project
only in a county that is a part of the authority. 

Sec. 370.162.  POWERS AND PROCEDURES OF AUTHORITY IN ACQUIRING PROPERTY.
(a)  Authorizes an authority to construct or improve a transportation
project on real property, including a right of way acquired by the
authority or provided to the authority for that purpose by TTC, a
political subdivision of this state, or any other governmental entity. 

(b)  Provides that, except as provided by this chapter, an authority has
the same powers and is authorized to use the same procedures as TTC in
acquiring property. 

Sec. 370.163.  ACQUISITION OF PROPERTY.  (a)  Provides that except as
otherwise provided by this subchapter, the governing body has the same
powers and duties that TTC and TxDOT have under Subchapter D, Chapter 361,
and Section 361.233, relating to the condemnation or purchase of real
property, except that the governing body is authorized to acquire real
property by the exercise of the power of condemnation only if the real
property is located in a county that is part of the authority, or if the
real property is not located within a county that is part of the
authority, the governing body is authorized to acquire the real property
by the exercise of the power of condemnation only with the approval of the
county commissioners court of the county in which the real property is
located.  Provides that notwithstanding Section 361.135(a), the
concurrence of TTC is not a prerequisite to the exercise of the power of
condemnation by the governing body of the authority.  Prohibits an
authority, notwithstanding Section 361.132(d), from acquiring property to
provide a location for an ancillary facility unless the authority
determines that the ancillary facility will directly benefit users of the
transportation project.  Prohibits an authority from filing a declaration
of taking and obtain early possession of real property. 

(b)  Provides that an authority's acquisition of any property of TTC under
this or another section of this chapter or an authority's relocation,
rerouting, disruption, or alteration of a facility of TTC is considered a
conversion of a state highway system under Section 370.035 and is subject
to each requirement, condition, or limitation provided by that section. 

(c)  Provides that the authority granted under this section does not
include the authority to condemn a bridge connecting this state to the
United Mexican States that is owned by a county or municipality. 

Sec. 370.164.  PARTICIPATION PAYMENT FOR REAL PROPERTY.  (a) Authorizes
the authority, as an alternative to paying for an interest in real
property or a real property right with a single fixed payment, with the
owner's consent, to pay the owner by means of a participation payment. 

(b)  Provides that a right to receive a participation payment under this
section is subordinate to any right to receive a fee as payment on the
principal of or interest on a bond that is issued for the construction of
the applicable segment. 

(c)  Defines "participation payment."
 
Sec. 370.165.  SEVERANCE OF REAL PROPERTY.  (a)  Requires the authority,
if a transportation project of an authority severs a property owner's real
property, to pay the value of the property acquired and the damages, if
any, to the remainder of the owner's property caused by the severance,
including damages caused by the inaccessibility of one tract from the
other. 

(b)  Authorizes an authority, at its option, to negotiate for and purchase
the severed real property or any part of the severed real property if the
authority and the property owner agree on terms for the purchase.
Authorizes an authority to sell and dispose of severed real property that
it determines is not necessary or useful to the authority. Requires
severed property to be appraised before being offered for sale by the
authority. 

Sec. 370.166.  ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY.  (a)
Authorizes an authority to use real property, including submerged land,
streets, alleys, and easements, owned by this state or a local government
that the authority considers necessary for the construction or operation
of a transportation project. 

(b)  Authorizes this state, or a local government having charge of public
real property, to consent to the use of the property for a transportation
project. 

(c)  Authorizes this state or a local government, except as provided by
Section 370.035, to convey, grant, or lease to an authority real property,
including highways and other real property devoted to public use and
rights or easements in real property, that may be necessary or convenient
to accomplish a purpose of the authority, including the construction or
operation of a transportation project.  Authorizes a conveyance, grant, or
lease under this section to be made without advertising, court order, or
other action other than the normal action of this state or local
government necessary for a conveyance, grant, or lease. 

(d)  Provides that this section does not deprive the School Land Board of
the power to execute a lease for the development of oil, gas, and other
minerals on state owned real property adjoining a transportation project
or in tidewater limits.  Authorizes a lease to provide for directional
drilling from the adjoining property or tidewater area. 

(e)  Provides that this section does not affect the obligation of the
authority under another law to compensate this state for acquiring or
using property owned by or on behalf of this state.  Provides that an
authority's use of property owned by or on behalf of this state is subject
to any covenants, conditions, restrictions, or limitations affecting that
property. 

Sec. 370.167.  COMPENSATION FOR AND RESTORATION OF PUBLIC PROPERTY.  (a)
Prohibits an authority, except as provided by Section 370.035, from paying
compensation for public real property, parkways, streets, highways,
alleys, or reservations it takes, other than a park, playground, or
designated environmental preserve; property owned by or on behalf of this
state that under law requires compensation to this state for the use or
acquisition of the property; or as provided by this chapter. 

(b)  Requires public property damaged in the exercise of a power granted
by this chapter to be restored or repaired and placed in its original
condition as nearly as practicable. 

(c)  Provides that an authority has full easements and rights of way
through, across, under, and over any property owned by the state or any
local government that are necessary or convenient to construct, acquire,
or efficiently operate a transportation  project or system under this
chapter.  Provides that this subsection does not affect the obligation of
the authority under other law to compensate this state for the use or
acquisition of an easement or right of way on property owned by or on
behalf of this state.  Provides that an authority's use of property owned
by or on behalf of this state is subject to any covenants, conditions,
restrictions, or limitations affecting that property. Provides that this
subsection does not apply to property owned by a school district. 

Sec. 370.168.  PUBLIC UTILITY FACILITIES.  (a)  Authorizes an authority to
adopt rules for the installation, construction, operation, maintenance,
repair, renewal, relocation, or removal of a public utility facility in,
on, along, over, or under a transportation project. 

(b)  Requires the owner or operator of the facility, if an authority
determines it is necessary that a public utility facility located in, on,
along, over, or under a transportation project be relocated in the
transportation project, removed from the transportation project, or
carried along or across the transportation project by grade separation, to
relocate or remove the facility in accordance with the requirements of the
authority and in a manner that does not impede the design, financing,
construction, operation, or maintenance of the transportation project. 

(c)  Requires the authority, as a part of the cost of the transportation
project or the cost of operating the transportation project, to pay the
cost of the relocation, removal, or grade separation of a public utility
facility under Subsection (a), including certain costs. 

(d)  Authorizes the authority to reduce the total costs to be paid by the
authority under Subsection (c) by 10 percent for each 30-day period or
portion of a 30-day period by which the relocation or removal exceeds the
reasonable limit specified by the authority unless the failure of the
owner or operator of the facility to timely relocate or remove the
facility results directly from a material action or inaction of the
authority or certain conditions beyond the reasonable control of the owner
or operator of the facility. 

(e)  Authorizes the authority, if an owner or operator of a public utility
facility does not timely relocate or remove the facility as required by
Subsection (b), to do so at the expense of the owner or operator.
Requires the authority, if the authority relocates or removes a facility
under this subsection, to relocate or remove the facility in a safe manner
that complies with applicable law and attempts to minimize the disruption
of utility service. 

(f)  Requires the owner or operator of a public utility facility relocated
or removed under Subsection (e) to reimburse the authority for the
expenses incurred for the relocation or removal of the facility, except
that the owner or operator is not required to reimburse the authority if
the failure of the owner or operator to timely relocate or remove the
facility was the direct result of circumstances beyond the control of the
owner or operator. 

(g)  Requires an authority, not later than 60 days before relocating or
removing a public utility facility under Subsection (e), to provide to the
utility written notice of the department's determination that the facility
must be removed, a final plan for relocation of the facility, and
reasonable terms and conditions for the relocation or removal of the
facility. 

(h)  Provides that Subchapter C (Provisions Applying to Electric
Utilities), Chapter 181 (Miscellaneous Powers and Duties of Utilities),
Utilities Code, applies to the erection, construction, maintenance, and
operation of a line or pole owned by an electric utility, as that term is
defined by Section 181.041 (Definitions), Utilities Code, over, under,
across, on, and along a transportation project or system constructed by an
authority.  Provides that an authority has the powers and duties delegated
to the commissioners court by that subchapter. 

(i)  Provides that Subchapter B (Provisions Applying to Gas Utilities),
Chapter 181 (Miscellaneous Powers and Duties of Utilities), Utilities
Code, applies to the laying and maintenance of facilities used for
conducting gas by a gas utility, as that term is defined by Section
181.021 (Definitions), Utilities Code, through, under, along, across, and
over a transportation project or system constructed by an authority except
as otherwise provided by this section.  Provides that an authority has the
power and duties delegated to the commissioners court by that subchapter. 

Sec. 370.169.  REVENUE.  (a)  Authorizes an authority to impose tolls,
fees, fares, or other charges for the use of each of its transportation
projects and the different parts or sections of each of its transportation
projects. 

(b)  Requires tolls, fees, fares, or other charges to be set at rates or
amounts so that the aggregate of tolls, fees, fares, or other charges from
an authority's transportation project, together with other revenue of the
transportation project provides revenue sufficient to pay certain costs
and creates reserves for a purpose listed under Subdivision (1). 

(c)  Provides that tolls, fees, fares, or other usage charges are not
subject to supervision or regulation by any agency of this state or
another governmental entity. 

(d)  Requires revenue derived from tolls, fees, and fares, and other
revenue derived from a transportation project for which bonds are issued,
other than any part necessary to pay the cost of maintenance, repair, and
operation and to provide reserves for those costs as provided in the bond
proceedings, to be set aside at regular intervals as provided in the bond
resolution or trust agreement in a sinking fund that is pledged to and
charged with the payment of certain costs. 

(e)  Provides that use and disposition of money deposited to the credit of
the sinking fund is subject to the bond proceedings. 

(f)  Authorizes revenue from one transportation project of an authority,
to the extent permitted under the applicable bond proceedings, to be used
to pay the cost of another transportation project of the authority. 

(g)  Prohibits an authority from using revenue from a transportation
project in a manner not authorized by this chapter.  Prohibits revenue
derived from a transportation project, except as provided by this chapter,
from being applied for a purpose or to pay a cost other than a cost or
purpose that is reasonably related to or anticipated to be for the benefit
of a transportation project. 

(h)  Prohibits an authority to require the owner of a public utility
facility to pay a fee as a condition of placing a facility across the
rights of way. 

Sec. 370.171.  USE OF SURPLUS REVENUE.  (a)  Requires an authority, each
year, if it determines that it has surplus revenue from transportation
projects, to reduce tolls, spend the surplus revenue on other
transportation projects in the counties of the authority in accordance
with Subsection (b), or deposit the surplus revenue to the credit of the
Texas Mobility Fund. 

(b)  Authorizes an authority, consistent with other law and TTC rule, to
spend surplus revenue on other transportation projects by constructing a
transportation project located within the counties of the authority,
assisting in the financing of a toll or toll free  transportation project
of another governmental entity, or with the approval of TTC, constructing
a toll or toll free transportation project and, on completion of the
project, transferring the project to another governmental entity under
certain circumstances. 

Sec. 370.172.  EXEMPTION FROM TAXATION OR ASSESSMENT.  (a)  Provides that
an authority is exempt from taxation of or assessments on a transportation
project or system, property the authority acquires or uses under this
chapter for a transportation project or system, or income from property
described by Subdivision (1) or (2). 

(b)  Provides that an authority is exempt from payment of development
fees, utility connection fees, assessments, and service fees imposed or
assessed by any governmental entity or any property owners' or homeowners'
association. 

Sec. 370.173.  ACTIONS AFFECTING EXISTING ROADS.  (a)  Authorizes an
authority to construct a grade separation at an intersection of a
transportation project with a railroad or highway and change the line or
grade of a highway to accommodate the design of the grade separation.
Prohibits the action from affecting a segment of the state highway system
without TxDOT's consent.  Requires the authority to pay the cost of a
grade separation and any damage incurred in changing a line or grade of a
railroad or highway as part of the cost of the transportation project. 

(b)  Requires an authority, if feasible, to provide access to properties
previously abutting a county road or other public road that is taken for a
transportation project and to pay abutting property owners the expenses or
any resulting damages for a denial of access to the road. 

(c)  Requires an authority, if an authority changes the location of a
segment of a county road as part of its development of a transportation
project, on the request of the county, to reconstruct that segment of the
road at a location that the authority determines, in its discretion,
restores the utility of the road.  Provides that the reconstruction and
its associated costs are in furtherance of a transportation project. 

Sec. 370.174.  FAILURE OR REFUSAL TO PAY TURNPIKE PROJECT TOLL; OFFENSE;
ADMINISTRATIVE PENALTY.  (a)  Requires the operator of a vehicle, other
than an authorized emergency vehicle as defined by Section 541.201, that
is driven or towed through a toll collection facility of a turnpike
project to pay the proper toll.  Provides that the operator of a vehicle
who drives or tows a vehicle through a toll collection facility and does
not pay the proper toll commits an offense.  Provides that an offense
under this subsection is a misdemeanor punishable by a fine not to exceed
$250. 

(b)  Provides that the authority has the same powers and duties relating
to collecting unpaid tolls and administrative fees as TTC and TxDOT have
under Subchapter G, Chapter 361, including certain powers or duties.  

(c)  Provides that the registered owner, lessee, or transferee of a
vehicle for which the proper toll was not paid who is mailed a written
notice of nonpayment under this section and fails to pay the proper toll
and administrative fee within the time specified by the notice of
nonpayment commits an offense.  Provides that each failure to pay a toll
or administrative fee under this section is a separate offense.  Provides
that an offense under this subsection is a misdemeanor punishable by a
fine not to exceed $250. 

(d)  Authorizes proof of an offense to be established under the same
conditions as under Subchapter G, Chapter 361.  Provides that defenses and
exceptions to liability available to a person under Subchapter G, Chapter
361, are available to person subject  to this section. 

(e)  Requires the court in which a person is convicted of an offense under
this section to also collect the proper toll and administrative fee and
forward the toll and fee to the authority. 

Sec. 370.175.  CONTROLLED ACCESS TO TURNPIKE PROJECTS.  Authorizes an
authority by order to designate the location of and establish, limit, and
control the entrances and exits of each turnpike as the authority
considers necessary or desirable to ensure the proper operation and
maintenance of the project prohibit entrance to each project at any place
not designated. 

Sec. 370.176.  PROMOTION OF TRANSPORTATION PROJECT.  Authorizes an
authority to promote the use of a transportation project, including a
project that it operates on behalf of another entity, by appropriate
means, including advertising or marketing as the authority determines
appropriate. 

Sec. 370.177.  OPERATION OF TRANSPORTATION PROJECT.  (a)  Requires an
authority to operate a transportation project with employees of the
authority or by using services contracted under Subsection (b) or (c). 

(b)  Authorizes an authority to enter into an agreement with one or more
persons to provide, on terms and conditions approved by the authority,
personnel and services to design, construct, operate, maintain, expand,
enlarge, or extend the transportation project of the authority. 

(c)  Authorizes an authority to contract with any state or local
government for the services of peace officers of that agency. 

Sec. 370.178.  AUDIT.  (a)  Requires an authority to have a certified
public accountant audit the authority's books and accounts at least
annually.  Authorizes the cost of the audit to be treated as part of the
cost of construction or operation of a transportation project. 

(b)  Authorizes TTC to initiate an independent audit of the authority or
any of its activities at any time TTC considers appropriate.  Requires an
audit under this subsection to be conducted at the expense of TxDOT. 

Sec. 370.179.  DISADVANTAGED BUSINESSES.  (a)  Requires an authority,
consistent with general law, to set goals for the award of contracts to
disadvantaged businesses and attempt to meet the goals; attempt to
identify disadvantaged businesses that provide or have the potential to
provide supplies, materials, equipment, or services to the authority; and
give disadvantaged businesses full access to the authority's contract
bidding process, inform the businesses about the process, offer the
businesses assistance concerning the process, and identify barriers to the
businesses' participation in the process. 

(b)  Provides that this section does not exempt an authority from
competitive bidding requirements provided by other law. 

Sec. 370.180.  PROCUREMENT.  Requires an authority to adopt rules
governing the award of contracts for goods and services.  Authorizes an
authority to procure goods and services, including materials, engineering,
design, construction, operations, maintenance, and other goods and
services, through any procedure authorized by law for special districts.
Provides that procurement of professional services is governed by Chapter
2254, Government Code. 

Sec. 370.181.  CONTRACTS WITH GOVERNMENTAL ENTITIES. (a) Prohibits an
authority from constructing, maintaining, or operating a transportation
project that another governmental entity has determined to be a project
under Chapter 284, 366, or 452, unless the governmental entity and the
authority enter into a written agreement specifying the terms and
conditions under which the project is required to be undertaken. 

(b)  Prohibits an authority from receiving or being paid revenue derived
by another governmental entity operating under Chapter 284, 366, or 452,
unless the governmental entity and the authority enter into a written
agreement specifying the terms and conditions under which the revenue is
required to be received by or paid to the authority. 

Sec. 370.182.  PROJECT APPROVAL.  (a)  Prohibits an authority from
beginning construction of a transportation project without the approval of
TTC. 

(b)  Requires TTC, by rule, to establish procedures and criteria for an
approval under this section.  Requires the rules to require TTC to
consider a request for project approval not later than the 60th day after
the date TxDOT receives all information reasonably necessary to review the
request. 

(c) Provides that this section expires September 1, 2011.

Sec. 370.183.  ENVIRONMENTAL REVIEW OF AUTHORITY PROJECTS. (a) Requires an
authority to adopt rules for environmental review of a transportation
project that is not subject to review under the National Environmental
Policy Act (42 U.S.C. Section 4321 et seq.), as amended.  Requires the
rules establish certain requirements, specifications, and procedures. 

(b)  Requires an environmental review of a project to be conducted before
the authority is authorized to approve the location or alignment of the
project. 

(c)  Requires the authority to consider the results of the environmental
review in executing its duties. 

(d)  Requires the authority to coordinate with the Texas Commission on
Environmental Quality and the Parks and Wildlife Department in the
preparation of an environmental review. 

Sec. 370.184.  DEPARTMENT MAINTENANCE AND OPERATION.  (a)  Authorizes
TxDOT, if requested by an authority, to agree to assume all or part of the
duty to maintain or operate a turnpike project or ferry of the authority. 

(b)  Requires the authority to reimburse TxDOT for necessary costs of
maintaining or operating the turnpike project or ferry as agreed by TxDOT
and the authority. 

(c)  Requires money received by TxDOT under Subsection (b) to be deposited
to the credit of the state highway fund and is exempt from the application
of Sections 403.095, and 404.071, Government Code. 

(d)  Provides that if TxDOT assumes all of the duty to maintain or operate
a turnpike project or ferry under Subsection (a), the authority is not
liable for damages resulting from the maintenance or operation of the
turnpike project or ferry. 

(e)  Provides that an agreement under this section is not a joint
enterprise for purposes of liability. 

 Sec. 370.185.  PROPERTY OF RAPID TRANSIT AUTHORITIES.  Prohibits an
authority from condemning or purchasing real property of a rapid transit
authority operating pursuant to Chapter 451 that was confirmed before July
1, 1985, and in which the principal municipality has a population of less
than 750,000, unless the authority has entered into a written agreement
with the rapid transit authority specifying the terms and conditions under
which the condemnation or the purchase of the real property will take
place. 

[Reserves Sections 370.186-370.250 for expansion.]

SUBCHAPTER F.  GOVERNANCE

Sec. 370.251.  BOARD OF DIRECTORS.  (a)  Provides that the governing body
of an authority is a board of directors consisting of representatives of
each county in which a transportation project of the authority is located
or is proposed to be located.  Requires the commissioners court of each
county that initially forms the authority to appoint at least two
directors to the board.  Authorizes additional directors to be appointed
to the board at the time of initial formation by agreement of the counties
creating the authority to ensure fair representation of political
subdivisions in the counties of the authority that will be affected by a
transportation project of the authority, provided that the number of
directors must be an odd number.  Requires the commissioners court of a
county that is subsequently added to the authority to appoint at least one
additional director to the board.  Requires the governor to appoint one
director to the board required to serve as the presiding officer of the
board and to appoint an additional director to the board if an appointment
is necessary to maintain an odd number of directors on the board. 

(b)  Requires the commissioners court of each county of an authority that
contains an operating transportation project of the authority, unless the
commissioners courts of the counties of the authority unanimously agree
otherwise, to appoint one additional director. 

(c)  Provides that directors serve staggered six year terms, with the
terms of no more than one third of the directors expiring on February 1 of
each odd-numbered year. 

(d)  Requires one director appointed to the initial board of an authority
by the commissioners court of a county to be designated by the court to
serve a term of two years and one director designated to serve a term of
four years.  Requires the directors other than the subsequent appointees,
if one or more directors are subsequently appointed to the board, to
determine the length of the appointees' terms, to comply with Subsection
(c). 

(e)  Requires the appointing authority, if a vacancy occurs on the board,
to promptly appoint a successor to serve for the unexpired portion of the
term. 

(f)  Requires all appointments to the board to be made without regard to
race, color, disability, sex, religion, age, or national origin. 

(g)  Sets forth the individuals ineligible to serve as a director.

(h)  Provides that each director has equal status and is authorized to
vote. 

(i)  Provides that the vote of a majority attending a board meeting is
necessary for any action taken by the board.  Provides that if a vacancy
exists on a board, the majority of directors serving on the board is a
quorum. 

(j)  Authorizes TTC to refuse to authorize the creation of an authority if
TTC  determines that the proposed board will not fairly represent
political subdivisions in the counties of the authority that will be
affected by the creation of the authority. 

Sec. 370.252.  BOARD COMPOSITION PROPOSAL BY TURNPIKE AUTHORITY.
Authorizes the turnpike authority or the county, if a county in which a
turnpike authority under Chapter 366 operates or a county owning or
operating a toll project under Chapter 284 is part of an authority, to
submit to TTC a proposed structure for the board and a method of
appointment to the board at certain times. 

Sec. 370.253.  PROHIBITED CONDUCT FOR DIRECTORS AND EMPLOYEES.  (a)
Prohibits a director or employee of an authority from certain actions. 

(b)  Provides that a person is not eligible to serve as a director or
chief administrative officer of an authority if the person or the person's
spouse has served in certain capacities. 

(c)  Provides that a person is not eligible to serve as a director or
chief administrative officer of an authority if the person is an officer,
employee, or paid consultant of a Texas trade association in the field of
road construction or maintenance, public transportation, or aviation, or
if the person's spouse is an officer, manager, or paid consultant of a
Texas trade association in the field of road construction or maintenance,
public transportation, or aviation. 

(d)  Defines "Texas trade association."

(e)  Provides that a person is not ineligible to serve as a director or
chief administrative officer of an authority if the person has received
funds from TxDOT for acquisition of highway right of way unless the
acquisition was for a project of the authority. 

Sec. 370.254.  REMOVAL OF DIRECTOR.  (a)  Provides the grounds for removal
of a director from the board. 

(b)  Provides that the validity of an action of the board is not affected
by the fact that it is taken when a ground for removal of a director
exists. 

(c)   Provides that if the chief administrative officer of the authority
has knowledge that a potential ground for removal exists, that person is
required to notify the presiding officer of the board of the ground.
Requires the presiding officer to then notify the person that appointed
the director that a potential ground for removal exists. 

Sec. 370.255.  COMPENSATION OF DIRECTOR.  Provides that each director is
entitled to reimbursement for the director's actual expenses necessarily
incurred in the performance of the director's duties.  Provides that a
director is not entitled to any additional compensation for the director's
services. 

Sec. 370.256.  EVIDENCE OF AUTHORITY ACTIONS.  Provides that actions of an
authority are the actions of its board and may be evidenced in any legal
manner, including a board resolution. 

 Sec. 370.257.  PUBLIC ACCESS.  Requires an authority to:

(1)  make and implement policies that provide the public with a reasonable
opportunity to appear before the board to speak on any issue under the
jurisdiction of the authority; and 

 (2)  prepare and maintain a written plan that describes how an individual
who does not speak English or who has a physical, mental, or developmental
disability may be provided reasonable access to the authority's programs. 

Sec. 370.258.  INDEMNIFICATION.  (a)  Requires an authority to indemnify
its directors or officers for necessary expenses and costs, including
attorney's fees, incurred by the directors or officers in connection with
any claim asserted against the directors or officers in their respective
capacities as directors or officers. 

(b)  Provides that this section applies to a current or former director or
officer of the authority. 

Sec. 370.259.  PURCHASE OF LIABILITY INSURANCE.  (a)  Requires an
authority to insure its officers and employees from liability arising from
the use, operation, or maintenance of equipment that is used or may be
used in connection with the laying out, construction, or maintenance of
the authority's transportation projects. 

  (b)  Requires insurance coverage under this section to be provided by
the purchase of a policy of liability insurance from a reliable insurance
company authorized to do business in this state.  Requires the form of the
policy to be approved by the commissioner of insurance (commissioner). 

(c)  Provides that this section is not a waiver of immunity of the
authority or the counties in an authority from liability for the torts or
negligence of an officer or employee of an authority. 

(d)  Provides that in this section, "equipment" includes an automobile,
motor truck, trailer, motor grader, roller, tractor, tractor power mower,
and other power equipment. 

Sec. 370.260.  CERTAIN CONTRACTS AND SALES PROHIBITED.  Prohibits a
director, agent, or employee of an authority to: 

  (1)  contract with the authority; or

  (2)  be directly or indirectly interested in:

   (A)  a contract with the authority; or
   (B)  the sale of property to the authority.

Sec. 370.261.  STRATEGIC PLANS AND ANNUAL REPORTS.  (a)  Requires an
authority to make a strategic plan for its operations.  Requires a
majority of the commissioners courts of the counties of the authority by
concurrent resolution to determine the types of information required to be
included in the strategic plan.  Requires an authority, each even numbered
year, to issue a plan covering the succeeding five fiscal years, beginning
with the next odd-numbered fiscal year. 

(b)  Requires an authority to file with the commissioners court of each
county of the authority a written report on the authority's activities
describing all transportation revenue bond issuances anticipated for the
coming year, the financial condition of the authority, all project
schedules, and the status of the authority's performance under the most
recent strategic plan, not later than March 31 of each year.  Requires
representatives of the board and the administrative head of an authority
to appear before the commissioners court to present the report and receive
questions and comments, at the invitation of a commissioners court of a
county of the authority. 

 (c)  Requires the authority to give notice to the commissioners court of
each county of the authority not later than the 90th day before the date
of issuance of revenue bonds. 

   [Reserves Sections 370.262-370.300 for expansion.]

SUBCHAPTER G.  PARTICIPATION IN FINANCING, CONSTRUCTION, AND OPERATION OF
TRANSPORTATION PROJECTS 

Sec. 370.301.  DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS.  (a)
Authorizes TxDOT to agree with an authority to provide for or contribute
to the payment of costs of financial or engineering and traffic
feasibility studies and the design, financing, acquisition, construction,
operation, or maintenance of a turnpike project or system on terms agreed
on by TTC or TxDOT, as applicable, and the authority.  Prohibits the
agreement from being inconsistent with the rights of the bondholders or
persons operating the turnpike project under a lease or other contract. 

(b)  Authorizes TxDOT to use its engineering and other personnel,
including consulting engineers and traffic engineers, to conduct
feasibility studies under Subsection (a). 

(c)  Provides that an obligation or expense incurred by TTC or TxDOT under
this section is a part of the cost of the turnpike project for which the
obligation or expense was incurred.  Authorizes TTC or TxDOT to require
money contributed by TTC or TxDOT under this section to be repaid from
tolls or other revenue of the turnpike project on which the money was
spent.  Requires money repaid as required by TTC or TxDOT  to be deposited
to the credit of the fund from which the contribution was made.  Provides
that money deposited as required by this section is exempt from the
application of Section 403.095, Government Code. 

(d)  Authorizes TTC or TxDOT to use federal money for any purpose
described by this chapter. 

(e)  Authorizes TTC to grant or loan TxDOT money to an authority for the
acquisition of land for or the construction, maintenance, or operation of
a turnpike project. Authorizes TTC to require the authority to repay money
provided under this section from toll revenue or other sources on terms
established by TTC. 

(f)  Requires money repaid as required by TTC to be deposited to the
credit of the fund from which the money was provided.  Provides that money
deposited as required by this section is exempt from the application of
Section 403.095, Government Code. 

Sec. 370.302.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL GOVERNMENTAL
ENTITIES.  (a)  Authorizes a governmental entity, consistent with the
Texas Constitution, to issue bonds, notes, or other obligations or enter
into and make payments under agreements with an authority to acquire,
construct, maintain, or operate a transportation project, including
agreements to pay the principal of, and interest on, bonds, notes, or
other obligations issued by the authority and make payments under any
related credit agreements. Authorizes the entity to impose and collect
taxes to pay the interest on the bonds and to provide a sinking fund for
the redemption of the bonds. 

(b)  Authorizes a governmental entity, to the extent constitutionally
permitted, to agree with an authority to issue bonds, notes, or other
obligations, create a taxing district or an entity to promote economic
development, fund public improvements to promote economic development, or
enter into and make payments under an agreement to acquire, construct,
maintain, or operate any portion of a transportation project of the
authority, in addition to the powers provided by Subsection (a).
Authorizes an  agreement to include a means for a local governmental
entity to provide funds for a transportation project that benefits the
governmental entity to be developed by the authority. 

(c)  Authorizes a governmental entity to: (1)  pledge revenue from any
available source, including annual appropriations; (2)  impose and collect
taxes; or 
(3)  pledge revenue and impose and collect taxes, to make payments under
an agreement under Subsection (b), to pay the interest on bonds issued
under Subsection (b), or to provide a sinking fund for the bonds or the
agreement. 

(d)  Prohibits the term of an agreement under this section from exceeding
40 years. 

(e)  Requires an election required to authorize action under this
subchapter to be held in conformity with Chapter 1251, Government Code, or
other law applicable to the governmental entity.  Provides that this
subsection does not expand or contract a governmental entity's authority
to guarantee debt without an election. 

(f)  Authorizes the governing body of any governmental entity issuing
bonds, notes, or other obligations or entering into agreements under this
section to exercise the authority granted to the governing body of an
issuer with regard to issuance of obligations under Chapter 1371,
Government Code. 

Sec. 370.303.  ADDITIONAL AGREEMENTS OF AUTHORITY.  Authorizes an
authority to enter into any agreement necessary or convenient to achieve
the purposes of this subchapter. 

Sec. 370.304.  HIGHWAY IMPROVEMENT CONTRACTS.  Requires an authority to
award all highway improvement contracts through a competitive bidding
process to the low bidder. 

Sec. 370.305.  OWNERSHIP OF TRANSPORTATION PROJECTS.  (a)  Provides that a
transportation project that is the subject of a development agreement with
a private entity, including the facilities acquired or constructed on the
project, is public property and belongs to the authority that entered into
the agreement. 

(b)  Authorizes an authority to enter into an agreement that provides for
the lease of rights of way, the granting of easements, the issuance of
franchises, licenses, or permits, or any lawful uses to enable a private
entity to construct, operate, and maintain a transportation project,
including supplemental facilities.  Requires, at the termination of the
agreement, the transportation project, including the facilities, to be in
a state of proper maintenance as determined by the authority and shall be
returned to the authority in satisfactory condition at no further cost. 

Sec. 370.306.  PERFORMANCE AND PAYMENT BONDS AND SECURITY.  Requires an
authority, notwithstanding Chapter 2253, Government Code, to require any
party to an agreement to operate or maintain a transportation project to
provide performance and payment bonds or other forms of security in
amounts considered by the authority to be adequate to protect the
authority and to assure performance of all obligations to the authority
and to subcontractors providing materials or labor for a transportation
project. 

[Reserves Sections 370.307-370.330 for expansion.]

SUBCHAPTER H.  DISSOLUTION OF AUTHORITY

Sec. 370.331.  VOLUNTARY DISSOLUTION.  (a)  Prohibits an authority from
being dissolved unless the dissolution is approved by TTC. 
 
  (b)  Authorizes a board to submit a request to TTC for approval to
dissolve. 

(c)  Authorizes TTC to approve a request to dissolve only under certain
circumstances. 

Sec. 370.332.  INVOLUNTARY DISSOLUTION.  (a) Authorizes TTC by order to
require an authority to dissolve if TTC determines that the authority has
not substantially complied with the requirements of TTC rule or an
agreement between TxDOT and the authority. 

  (b)  Prohibits TTC to require dissolution unless:

(1)  the conditions described in Sections 370.331(c)(1) and (2) have been
met; and 
(2)  the holders of any indebtedness have evidenced their agreement to the
dissolution. 

SECTION 2.02.  Repealer:  Section 361.003 (Regional Mobility Authority),
Transportation Code. 

SECTION 2.03.    (a)  Effective date:  upon passage or September 1, 2003.

(b)  Provides that this article does not affect the term of a member of
the board of directors of a regional mobility authority serving on the
effective date of this article. 

ARTICLE 3.  ADVANCE ACQUISITION OF PROPERTY

SECTION 3.01.  Amends the heading to Chapter 202, Transportation Code, to
read as follows: 

CHAPTER 202.  CONTROL OF TRANSPORTATION ASSETS

SECTION 3.02.  Amends Chapter 202, Transportation Code, by adding
Subchapter F, as follows: 

SUBCHAPTER F.  ADVANCE ACQUISITION OF PROPERTY

 Sec. 202.111.  DEFINITION.  Defines "advance acquisition." 

Sec. 202.112.  ADVANCE ACQUISITIONS.  (a)  Authorizes TTC to purchase an
option to acquire property for possible use in or in connection with a
transportation facility, including a facility as defined by Section
227.001, before a final decision has been made as to whether the
transportation facility will be located on that property. 

(b)  Requires an advance acquisition to be made by TTC using the
procedures authorized under Subchapter D of Chapter 203 or other law
authorizing TTC or TxDOT to acquire real property or an interest in real
property for a transportation facility.  Authorizes TTC to make an advance
acquisition in the manner provided by this subchapter. 

  (c)  Prohibits TTC to make an advance acquisition by condemnation.

Sec. 202.113.  DISPOSAL OF SURPLUS PROPERTY.  Requires TTC to dispose of
property acquired by advance acquisition that is not needed for a
transportation facility in the manner provided by Subchapter B. 

ARTICLE 4.  RAIL FACILITIES

SECTION 4.01.  Amends Title 5, Transportation Code, by adding Subtitle A,
as follows: 

 SUBTITLE A.  TEXAS DEPARTMENT OF TRANSPORTATION

CHAPTER 91.  RAIL FACILITIES

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 91.001.  DEFINITIONS.  Defines "commission," "construction,"
"department," "maintenance facility," "operation," "rail facility,"
"revenue," "right-of-way," "station"   "surplus revenue," "trackwork," and
"train controls." 

 Sec. 91.002.  PUBLIC PURPOSE.  Provides that the following functions are
public and  governmental functions, exercised for a public purpose, and
matters of public necessity: 

(1)  the acquisition, financing, construction, operation, and maintenance
of a rail facility under this chapter; 
(2)  the sale, lease, or license of a rail facility to a rail operator and
other public or private persons under this chapter; and 
(3)  the exercise of any other power granted under this chapter to TTC and
TxDOT. 

Sec. 91.003.  RULES.  Authorizes TTC to adopt rules and TxDOT to adopt
procedures and prescribe forms necessary to implement this chapter. 

 Sec. 91.004.  GENERAL POWERS.  Authorizes TxDOT to perform certain
actions. 

Sec. 91.005.  RELIANCE ON PRIVATE ENTITIES.  Requires TxDOT to contract
with a private entity to operate a railroad using facilities owned by
TxDOT and prohibits using TxDOT employees to operate a railroad.
Authorizes TxDOT to maintain a railroad facility directly or through a
private entity.  Prohibits TxDOT from owning rolling stock. 

Sec. 91.006.  COOPERATION OF STATE AGENCIES AND POLITICAL SUBDIVISIONS.
Requires an agency or political subdivision of this state to cooperate
with and assist TxDOT in exercising its powers and duties under this
chapter, within available resources. 

Sec. 91.007.  NOTIFICATION OF INTENT TO ABANDON OR DISCONTINUE SERVICE.
Requires TxDOT, on receipt of notice of intent to abandon or discontinue
rail service served under 49 C.F.R. Section 1152.20, as amended to
coordinate with the governing body of a municipality, county, or rural
rail transportation district in which all or a segment of the line is
located to determine whether: 

  (1)  TxDOT should acquire the rail facility to which the notice relates;
or 
(2)  any other actions should be taken to provide for continued rail
transportation service. 

[Reserves Sections 91.008-91.030 for expansion.]

SUBCHAPTER B.  ACQUISITION AND DEVELOPMENT OF RAIL FACILITIES

Sec. 91.031.  ESTABLISHMENT OF RAIL SYSTEMS.  (a)  Authorizes TTC, if it
determine that the provision of rail transportation services would be most
efficiently and economically met by jointly operating two or more rail
facilities as one operational and financial enterprise, to create a system
composed of those facilities. 

(b)  Authorizes TTC to create more than one system and combine two or more
systems into one system. 
 
(c)  Authorizes TxDOT to finance, acquire, construct, and operate
additional rail facilities as additions to and expansions of the system if
TTC determines that the facility would most efficiently and economically
be acquired and constructed if it were a part of the system and that the
addition will benefit the system. 

(d)  Requires the revenue of a system to be accounted for separately and
prohibits it to be commingled with the revenue of a rail facility that is
not part of the system. 

Sec. 91.032.  ACQUISITION OF RAIL FACILITIES.  (a)  Authorizes TTC to
authorize TxDOT to acquire an existing rail facility at a location and on
a route TTC determines to be feasible and viable for rail transportation
service. 

(b)  Authorizes TxDOT to enter into an agreement with the owner of an
operating railroad for the acquisition or use of a rail facility on terms
TxDOT considers to be in the best interest of the state. 

Sec. 91.033.  ENVIRONMENTAL REVIEW.  (a)  Requires TxDOT to conduct or
approve all environmental evaluations or studies required for the
construction, maintenance, or operation of a rail facility. 

(b)  Authorizes TTC to adopt rules to allocate responsibility for
conducting an environmental evaluation or study or preparing environmental
documentation among entities involved in the construction, maintenance, or
operation of a rail facility under this chapter. 

Sec. 91.034.  ENVIRONMENTAL MITIGATION.  (a)  Authorizes TxDOT to acquire,
maintain, hold, restore, enhance, develop, or redevelop property for the
purpose of mitigating a past, present, or future adverse environmental
effect arising from the construction, maintenance, or operation of a rail
facility without regard to whether the need for mitigation has already
been established for a particular project. 

(b)  Authorizes TxDOT to contract with a governmental or private entity to
maintain, control, hold, restore, enhance, develop, or redevelop property
for the mitigation of a past, present, or future adverse environmental
effect arising from the construction, maintenance, or operation of a rail
facility without regard to whether the need for mitigation has already
been established for a particular project. 

(c)  Authorizes TxDOT, if authorized by the applicable regulatory
authority, to pay an amount of money to an appropriate governmental or
private entity instead of acquiring or managing property for the
mitigation of a past, present, or future adverse environmental effect
arising from construction, maintenance, or operation of a rail facility
without regard to whether the need for mitigation has already been
established for a particular project. 

Sec. 91.035.  USE OF FACILITIES BELONGING TO PUBLIC OR PRIVATE ENTITY. (a)
Authorizes TxDOT, for the purpose of acquiring, constructing, maintaining,
and operating freight or passenger rail facilities and systems in this
state, to: 

(1)  use a street, alley, road, highway, or other public way of a
municipality, county, or other political subdivision with the consent of
that political subdivision; and 
(2)  at the expense of TxDOT, relocate, raise, reroute, or change the
grade of the construction of a street, alley, highway, road, railroad,
electric line and facility, telegraph and telephone property and facility,
pipeline and facility, conduit and facility, and other properties, whether
publicly or privately owned,  as necessary or useful in the construction,
maintenance, and operation of a rail facility or system. 

(b)  Requires TxDOT to provide reasonable notice to the owner of the
applicable facility of the need for the alteration under Subsection (a)(2)
and allow that owner the opportunity to complete the alteration. 

Sec. 91.036.  EXPENDITURE OF FUNDS.  Authorizes TxDOT to receive, accept,
and expend funds from this state, a federal agency, or other public or
private source for: 

  (1)  rail planning;
(2)  studies to determine the viability of a rail facility for rail
transportation service; 
(3)  studies to determine the necessity for the department's acquisition
or construction of a rail facility; and 
(4)  the acquisition, construction, maintenance, or operation of a rail
facility under this chapter, including the assessment and remediation of
environmental contamination existing in or on a rail facility. 

Sec. 91.037.  CONTRACTS WITH GOVERNMENTAL ENTITIES.  Provides that this
chapter does not apply to real or personal property, facilities, funding,
projects, operations, construction, or a project plan of a transportation
authority created under Chapter 451 or 452, unless TTC or its designee has
signed a written agreement with the transportation authority specifying
the terms and conditions under which the transportation authority may
participate. 

[Reserves Sections 91.038-91.050 for expansion.]

SUBCHAPTER C.  CONTRACTS

Sec. 91.051.  AWARDING OF CONTRACTS.  Requires a contract made by TxDOT
for the construction, maintenance, or operation of a rail facility to be
let by a competitive bidding procedure in which the contract is awarded to
the lowest responsible bidder that complies with TxDOT's criteria. 

Sec. 91.052.  AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE RAIL
FACILITIES.  Authorizes TxDOT to enter into an agreement with a public
entity, including a political subdivision of this state, to permit the
entity, independently or jointly with TxDOT, to acquire, construct,
maintain, or operate a rail facility or system. 

Sec. 91.053.  SMALL AND DISADVANTAGED BUSINESSES.  (a)  Requires TxDOT to:

(1)  set goals for the award of contracts to small and disadvantaged
businesses and attempt to meet the goals; 
(2)  attempt to identify small and disadvantaged businesses that provide
or have the potential to provide supplies, materials, equipment, or
services to TxDOT; and 
(3)  give small and disadvantaged businesses full access to TxDOT's
contract bidding process and other contracting processes, inform the
businesses about those processes, offer the businesses assistance
concerning those processes, and identify barriers to the businesses'
participation in those processes. 

(b)  Provides that this section does not exempt TxDOT from competitive
bidding requirements imposed by other law. 

[Reserves Sections 91.054-91.070 for expansion.]

 SUBCHAPTER D.  FINANCING OF RAIL FACILITIES

Sec. 91.071.  PERMISSIBLE SOURCES OF FUNDING.  (a) Authorizes TxDOT to use
any legally permissible source of funding in acquiring, constructing,
maintaining, and operating a rail facility or system, including: 

(1)  appropriations from the state highway fund that are not dedicated for
another purpose by Section 7-a or 7-b, Article VIII, Texas Constitution; 
   (2)  proceeds from bonds secured by the Texas Mobility Fund;
   (3)  donations, whether in kind or in cash; and
   (4)  loans from the state infrastructure bank.

(b)  Requires the total amount disbursed by TxDOT out of federal and state
funds  not to exceed $12.5 million, each fiscal year.  Provides that this
subsection does not apply to: 

(1)  disbursements for the acquisition or construction of rail lines on
the Trans-Texas Corridor; 
   (2) the acquisition of abandoned rail facilities described in Section
91.007; 
(3) funding derived from the issuance of bonds, private investment,
donations, and grants or loans from the Federal Railroad Administration or
Federal Transit Administration; and 
   (4) grading and bed preparation.

Sec. 91.072.  FINANCING OF RAIL FACILITIES AND SYSTEMS.  (a)  Provides
that TTC and TxDOT have the same powers and duties relating to the
financing of a rail facility or a system established under Section 91.031
as TTC and TxDOT have under Subchapter E, Chapter 361, relating to the
financing of a turnpike project. 

  (b) Provides the powers held by TTC and TxDOT include the power to:

(1) authorize the issuance of bonds to pay all or part of the cost of
acquiring, constructing, maintaining, or operating a rail facility or
system; 
(2) impose fees, rents, and other charges for the use of a rail facility
or system; and 
(3) obtain from another source the fees and other revenue necessary to pay
all or part of the principal and interest on bonds issued under this
chapter. 

(c) Provides that for purposes of this section, a reference in Subchapter
E, Chapter 361 to: 

   (1) a turnpike project means a rail facility or system; and
(2) revenue includes a fee, rent, or other usage charge established under
this chapter or other money received under Sections 91.073 and 91.074. 

Sec. 91.073.  GRANTS AND LOANS.  Authorizes TxDOT to apply for, accept,
and expend money from grants, loans, or reimbursements for any purpose of
this chapter, including paying for the cost of the acquisition,
construction, maintenance, and operation of a rail facility or system. 

Sec. 91.074.  REVENUE.  (a)  Authorizes TxDOT to require a person,
including any public or private entity, to pay a fee as a condition of
using any part of a rail facility or system. 

(b)  Requires TxDOT to establish and maintain rents or other compensation
for the use of rail facilities or systems in an amount that is, together
with other revenue of TxDOT  received under this chapter, sufficient to
enable TxDOT to comply with the requirements of Section 91.072. 

(c)  Authorizes TxDOT to contract with a person for the use of all or part
of a rail facility or system or lease or sell all or part of a rail
facility or system, including all or any part of the right of way
adjoining trackwork, for any purpose, including placing on the adjoining
right of way a storage or transfer facility, warehouse, garage, parking
facility, telecommunication line or facility, restaurant, or gas station. 

(d)  Prohibits TxDOT from unreasonably discriminating in deciding who may
use any part of a rail facility or system. 

  (e)  Provides that all revenue received by TxDOT under this chapter:

(1)  shall be deposited to the credit of the state highway fund and may be
used for any purpose authorized by this chapter; and 
   (2)  is exempt from the application of Section 403.095, Government Code.

[Reserves Sections 91.075-91.090 for expansion.]

SUBCHAPTER E.  ACQUISITION AND DISPOSAL OF PROPERTY

Sec. 91.091.  ACQUISITION OF REAL PROPERTY.  (a)  Authorizes TTC to
authorize TxDOT to acquire in the name of the state a right of way, a
property right, or other interest in real property determined to be
necessary or convenient for TxDOT's acquisition, construction,
maintenance, or operation of rail facilities. 

(b)  Authorizes TTC to authorize TxDOT to acquire property by any method,
including purchase and condemnation.  Authorizes property to be purchased
under any terms determined by TxDOT to be in the best interest of the
state. 

(c)  Authorizes property to be purchased along alternative potential
routes for a rail facility even if only one of those potential routes will
ultimately be chosen as the final route. 

Sec. 91.092.  PROPERTY NECESSARY OR CONVENIENT FOR RAIL FACILITIES.
Provides that property necessary or convenient for TxDOT's acquisition,
construction, maintenance, or operation of rail facilities includes an
interest in real property or a property right the commission determines is
necessary or convenient to provide: 

   (1)  right of way for a location for:
    (A)  a rail facility; or
    (B)  the future expansion of a rail facility;
   (2)  land for mitigation of adverse environmental effects;
   (3)  buffer zones for scenic or safety purposes; and
(4)  revenue for use in acquiring, constructing, maintaining, or operating
a rail facility or system, including revenue received under a contract
described by Section 91.074(c). 

Sec. 91.093.  RIGHT OF ENTRY.  (a)  Authorizes TxDOT to enter any premises
or real property, including a body of water, to make a survey,
geotechnical evaluation, sounding, or examination, to acquire property
necessary or convenient for a rail facility. 

  (b)  Provides that an entry under Subsection (a) is not:

    (1)  a trespass; or
   (2)  an entry under a pending condemnation procedure.

(c)  Requires TxDOT to make reimbursements for actual damages that result
from an entry under Subsection (a). 

Sec. 91.094.  CONVEYANCE OF PROPERTY BELONGING TO POLITICAL SUBDIVISION OR
PUBLIC AGENCY.  Authorizes the governing body of a municipality, county,
political subdivision, or public agency to, without advertisement, convey
the title to or a right in property determined to be necessary or
convenient by TxDOT under this subchapter. 

Sec. 91.095.  DISPOSAL OF PROPERTY.  Authorizes TxDOT to sell, convey, or
otherwise dispose of any rights or other interests in real property
acquired under this subchapter that TTC determines are no longer needed
for TxDOT purposes. 

[Reserves Sections 91.096-91.100 for expansion.]

SUBCHAPTER F.  OPERATION AND USE OF RAIL FACILITIES

Sec. 91.101.  CONTRACTS FOR RAIL TRANSPORTATION SERVICES. Authorizes TxDOT
to contract with a county or other political subdivision of the state for
TxDOT to provide rail transportation services on terms agreed to by the
parties. 

Sec. 91.102.  CONTRACTS WITH RAIL OPERATORS.  (a)  Authorizes TxDOT to
lease all or part of a rail facility or system to a rail operator.
Authorizes TxDOT to contract with a rail operator for the use or operation
of all or part of a rail facility or system. 

(b)  Requires TxDOT to encourage to the maximum extent practical the
participation of private enterprise in the operation of rail facilities
and systems. 

(c)  Requires a lease agreement to provide for TxDOT's monitoring of a
rail operator's service and performance. 

(d)  Authorizes TxDOT to enter into an agreement with a rail operator to
sell all or any part of state owned rail facilities on terms TxDOT
considers to be in the best interest of the state. 

 Sec. 91.103.  JOINT USE OF RAIL FACILITIES.  Authorizes TxDOT to:

(1)  enter into an agreement with a rail operator, public utility, private
utility, communication system, common carrier, or transportation system
for the common use of its facilities, installations, or properties; and 
(2)  establish through routes, joint fares, and, subject to approval of a
tariff regulating body having jurisdiction, divisions of tariffs. 

Sec. 91.104.  ROUTINGS.  Authorizes TxDOT to determine routings for rail
facilities acquired, constructed, or operated by TxDOT under this chapter. 

Sec. 91.105.  PLACEMENT OF UTILITY FACILITIES, LINES, AND EQUIPMENT.  (a)
Provides that a utility has the same right to place its facilities, lines,
or equipment in, over, or across right of way that is part of a
state-owned rail facility as the utility has with respect to the
right-of-way of a state highway under Chapter 181, Utilities Code.
Requires a utility to notify TxDOT of the utility's intention to exercise
authority over right of way that is part of stateowned rail facilities. 

 (b)  Authorizes TxDOT to designate the location in the right of way where
the utility may place its facilities, lines, or equipment. 

(c)  Authorizes TxDOT to require a utility to relocate the utility's
facilities, lines, or equipment, at the utility's expense, to allow for
the expansion or relocation of rail facilities owned by the state.
Requires TxDOT to pay for the cost of the relocation if the utility has a
compensable property interest in the land occupied by the facility to be
relocated.  Provides that if a utility facility is replaced, the cost of
replacement is limited to an amount equal to the cost of replacing the
facility with a comparable facility, less the net salvage value of the
replaced facility. 

(d)  Authorizes a utility to use and operate a facility required to be
relocated under this section at the new location for the same period and
on the same terms as the utility had the right to do at the previous
location of the facility. 

SECTION 4.02.  Repealer:  Section 2, Chapter 1244, Acts of the 77th
Legislature, Regular Session, 2001 (Article 6550c-2, V.T.C.S.). 

SECTION 4.03.  Effective date of this article: upon passage or September
1, 2003. 

ARTICLE 5.  ISSUANCE OF BONDS AND OTHER PUBLIC SECURITIES

SECTION 5.01.  Amends Subchapter A, Chapter 222, Transportation Code, by
adding Section 222.003, as follows: 

Sec. 222.003.  ISSUANCE OF BONDS SECURED BY STATE HIGHWAY FUND.  (a)
Authorizes TTC to issue bonds and other public securities secured by a
pledge of and payable from revenue deposited to the credit of the state
highway fund. 

(b) Prohibits the aggregate principal amount of the bonds and other public
securities that are issued from exceeding $10 billion.  Authorizes TTC to
only issue bonds or other public securities in an aggregate principal
amount of not more than $1 billion each year. 

(c) Requires proceeds from the sale of bonds and other public securities
issued under this section to be used to fund state highway improvement
projects.  Authorizes proceeds to be used only to provide certain funding
or short-term financing of turnpike project costs that are incurred before
the project is open to traffic and begins generating revenue, if TTC
determines that issuing short-term bonds will reduce total project costs.  
 
(d) Defines "Texas Highway Trunk System."

(e) Requires TTC, of the aggregate principal amount of bonds and other
public securities that may be issued under this section, to issue bonds or
other public securities in an aggregate principal amount of $2 billion to
fund projects eligible under Subsection (c)(4).  Requires TTC, by rule, to
prescribe criteria for selecting projects eligible for funding under this
section.  Requires TTC, in establishing criteria for projects eligible
under Subsection (c)(4), to consider accident data, traffic volume,
pavement geometry, and other conditions that can create or exacerbate
hazardous roadway conditions. 

(f) Prohibits the proceeds of bonds and other public securities issued
under this section from being used for any purpose other than any costs
related to the bonds and other public securities and the purposes for
which revenues are dedicated under Section 7 a, Article VIII, Texas
Constitution.  Authorizes the proceeds of bonds and other public
securities issued under this section may not be used for the construction
of a state  highway or other facility on the Trans-Texas Corridor.
Defines "Trans-Texas Corridor." 

(g) Authorizes TTC to enter into credit agreements, as defined by Chapter
1371, Government Code, relating to the bonds and other public securities
authorized by this section.  Authorizes the agreements to be secured by
and payable from the same sources as the bonds and other public
securities. 

(h) Provides that all laws affecting the issuance of bonds and other
public securities by governmental entities, including Chapters 1201, 1202,
1204, 1207, 1231, and 1371, Government Code, apply to the issuing of bonds
and other public securities and the entering into of credit agreements
under this section. 

(i) Authorizes the proceeds of bonds and other public securities issued
under this section may be used to finance other funds relating to the
public security, including debt service reserve and contingency and to pay
the cost or expense of the issuance of the public security. 

(j) Prohibits bonds and other public securities and credit agreements
authorized by this section from having a principal amount or terms that,
at the time the bonds or other public securities are issued or the
agreements entered into, are expected by TTC to cause annual expenditures
with respect to the obligations to exceed 10 percent of the amount
deposited to the credit of the state highway fund in the immediately
preceding year. 

(k) Authorizes bonds and other public securities issued under this section
to be sold in such manner and subject to such terms and provisions as set
forth in the order authorizing their issuance, and requires such bonds and
other public securities to mature not later than 20 years after their
dates of issuance, subject to any refundings or renewals. 

(l) Requires the comptroller to withdraw from the state highway fund and
forward at the direction of TTC to another person the amounts as
determined by TTC to permit timely payment of the principal of and
interest on the bonds and other public securities that mature or become
due and any cost related to the bonds and other public securities that
become due, including payments under credit agreements. 

(m)  Prohibits TTC from funding a project unless TTC makes a formal
finding by minute order that the funding of the project will satisfy the
requirements of Subsection (c). 

SECTION 5.02.  Provides that this article takes effect on the date on
which the constitutional amendment proposed by the 78th Legislature,
Regular Session, 2003, that authorizes the legislature to provide for the
issuance of bonds and other public securities secured by the state highway
fund for highway improvement projects takes effect.  Provides that if that
amendment is not approved by the voters, this article has no effect. 

ARTICLE 6.  PASS-THROUGH TOLLS

SECTION 6.01.  Amends Subchapter E, Chapter 222, Transportation Code, by
adding Section 222.104, as follows: 

Sec. 222.104.  PASS-THROUGH TOLLS. (a) Defines "pass-through toll."

(b)  Authorizes TxDOT to enter into an agreement with a public or private
entity that  provides for the payment of pass through tolls to the public
or private entity as reimbursement for the construction, maintenance, or
operation of a toll or nontoll facility on the state highway system by the
public or private entity. 

(c)  Authorizes TxDOT to enter into an agreement with a regional mobility
authority, a regional tollway authority, or a county acting under Chapter
284 that provides for the payment of pass through tolls to the authority
or county as compensation for the payment of all or a portion of the costs
of maintaining a state highway or a portion of a state highway converted
to a toll facility of the authority or county that TxDOT estimates it
would have incurred if the highway had not been converted. 

(d)  Authorizes TxDOT to use any available funds for the purpose of making
a pass through toll payment under this section. 

(e)  Authorizes TTC to adopt rules necessary to implement this section.
Authorizes rules adopted under this subsection to establish certain
criteria.  

SECTION 6.02.  Effective date of this article: upon passage or September
1, 2003. 

ARTICLE 7.  CONVERSION OF NONTOLL STATE HIGHWAY

SECTION 7.01.  Amends Subchapter A, Chapter 284, Transportation Code, by
adding Section 284.009, as follows: 

Sec. 284.009.  CONVEYANCE OF STATE HIGHWAY TO COUNTY.  (a)  Authorizes TTC
to convey a nontoll state highway or a segment of a nontoll state highway,
including real property acquired to construct or operate the highway, to a
county for operation and maintenance as a project under this chapter if
certain conditions apply. 
 
(b)  Authorizes TTC to only make a conveyance under this section if TTC
determines that the conveyance is the most feasible and economic means to
accomplish necessary expansions, extensions, or improvements of the
conveyed segment of the highway. Prohibits tolls from being collected by
an authority from a conveyed segment of highway except to finance the
expansion, extension, operation, and maintenance of that highway segment. 

(c)  Authorizes a county that receives a nontoll state highway or a
segment of a nontoll state highway under Subsection (a) to own, operate,
and maintain the highway as a pooled project under Section 284.065. 

(d)  Requires TTC, at the time of a conveyance, to remove the highway or
segment of highway from the state highway system.  Provides that after a
conveyance, TxDOT has no liability, responsibility, or duty for the
maintenance or operation of the highway or segment. 

(e) Authorizes TTC to waive all or a portion of an amount due under
Subsection (a)(2) if it finds that the conveyance will result in
substantial net benefits to the state, TxDOT, and the traveling public
that equal or to exceed the amount of payment waived. 

(f)  Requires TTC, before conveying a nontoll state highway or a segment
of a nontoll state highway under this section, to conduct a public hearing
to receive comments from interested persons concerning the proposed
conveyance.  Requires notice of the hearing to be published in the Texas
Register and in one or more newspapers of general circulation in any
county in which the highway or segment is located. 

 (g)  Requires TTC to adopt rules implementing this section, including
criteria and guidelines for approval of a conveyance of a highway or
segment. 

(h)  Requires funds received by TxDOT under this section to be deposited
to the credit of the state highway fund; and provides that those funds are
exempt from the application of Section 403.095, Government Code. 

SECTION 7.02.  Amends Section 362.0041, Transportation Code, by amending
Subsections (a), (c), and (d) and adding Subsections (e)-(g), as follows: 

(a)  Authorizes TTC, except as provided in Subsections, rather than
Subsection, (d) and (g), to by order convert, rather than finds that the
conversion of, a segment of the free state highway system to a toll
facility if it determines that the conversion will improve overall
mobility in the region or is the most feasible and economic means to
accomplish necessary expansion, improvements,  or extensions to that
segment of the state highway system.  Deletes text relating to authorizing
a certain segment to be converted by order of TTC to a turnpike project
under Chapter 361. 

(c)  Requires TTC to adopt rules implementing this section, including,
rather than such rules to include, criteria and guidelines for the
approval of a conversion of a highway. 

(d)  Prohibits TTC from converting the Queen Isabella Causeway in Cameron
County to a toll facility, rather than turnpike project. 

(e)  Provides that Subchapter G, Chapter 361, applies to a highway
converted to a toll facility under this section. 

(f)  Requires toll revenue collected under this section to be used in a
certain manner. 

(g)  Provides that TTC may only convert a segment of the state highway
system under this section if the conversion is approved by the
commissioners court of each county within which the segment is located. 

SECTION 7.03.  Amends Section 366.035, Transportation Code, as follows:

Sec. 366.035.  New heading:  CONVEYANCE OF STATE HIGHWAY.  (a)  Authorizes
TTC to convey a nontoll state highway or a segment of a nontoll state
highway, including real property acquired to construct or operate the
highway, to an authority for operation and maintenance as a turnpike
project under this chapter under certain circumstances. 

(b)  Provides that TTC may only make a conveyance under this section if it
determines that the conveyance is the most feasible and economic means to
accomplish necessary expansions, extensions, or improvements of the
conveyed segment of the highway. Prohibits tolls from being collected by
an authority from a conveyed segment of highway except to finance the
expansion, extension, operation, and maintenance of that highway segment.
Deletes text regarding the conversion to a turnpike project of a segment
of the free state highway system.  Authorizes an authority that receives
the segment or highway to own, operate, and maintain the segment or
highway as a turnpike project or system or a part of a turnpike project or
system under this chapter. 

(c)  Authorizes TTC to waive all or a portion of an amount due under
Subsection (a)(2) if it finds that the conveyance will result in
substantial net benefits to the state, TxDOT, and the traveling public
that equal or exceed the amount of payment waived. 

(d) Deletes text regarding an authority reimbursing TTC for the cost of a
transferred  highway.  Redesignates the existing text of Subsection (c) as
(d) and changes references to a highway transfer to read "conveyance." 

(e) Redesignates the existing text of Subsection (d) as (e).  Modifies
references to a highway system to read "highway."  Makes conforming
changes. 

(f)  Redesignated from Subsection (e).  Makes a conforming change. 

(g)  Redesignated from Subsection (f).  No changes made to this subsection.

(h)  Redesignated from Subsection (g).  No changes made to this subsection.

(i)  Requires funds received by TxDOT under this section to be deposited
to the credit of the state highway fund, and are exempt from the
application of Section 403.095, Government Code. 

ARTICLE 8.  SUSPENSION OF SENTENCE AND DEFERRAL OF FINAL DISPOSITION OF
CERTAIN OFFENSES 

SECTION 8.01.  Amends Article 45.051, Code of Criminal Procedure, as
follows: 

Art. 45.051.  SUSPENSION OF SENTENCE AND DEFERRAL OF FINAL DISPOSITION.
(a)  Authorizes a judge, rather than justice, on a plea of guilty or nolo
contendere by a defendant or on a finding of guilt in a misdemeanor case
punishable by fine only and payment of all court costs, at the judge's
discretion, to defer further proceedings without entering an adjudication
of guilt and place the defendant on probation for a period not to exceed
180 days. 

(b)  Authorizes the judge, rather than justice, during the deferral
period, at the judge's discretion, to require the defendant to take
certain actions, including to complete a driving safety course approved
under the Texas Driver and Traffic Safety Education Act (Article
4413(29c), V.T.C.S.) or another course as directed by the judge, and to
present to the court satisfactory evidence that the defendant has complied
with each requirement imposed by the judge under this article. 

(c)  Deletes text regarding an adjudication of guilt and a reduction or
imposition of a fine. Provides that, other than an offense under Section
545.413, Transportation Code, this subsection does not apply to an offense
involving the operation of a motor vehicle. Makes conforming changes. 

(c-1)  Provides that this subsection applies only to an offense involving
the operation of a motor vehicle, other than an offense under Section
545.413, Transportation Code. Requires the justice, at the conclusion of
the deferral period, if the defendant presents satisfactory evidence that
the defendant has complied with the requirements imposed, to proceed with
an adjudication of guilt but prohibits the justice from imposing the fine
assessed or a reduced fine. 

(d)  Makes conforming and nonsubstantive changes.

(e)  Makes a nonsubstantive change.

(f)  Provides that this article does not apply to an offense to which
Section 542.404 or 729.004(b), Transportation Code, applies. 

SECTION 8.02.  Amends Article 45.0511, Code of Criminal Procedure, as
follows: 
 
Art. 45.0511.  New heading:  DRIVING SAFETY COURSE OR MOTORCYCLE OPERATOR
COURSE DISMISSAL PROCEDURES.  (a)  Provides that this article applies only
to an alleged offense that: 

(1)  is within the jurisdiction of a justice court or a municipal court;
(2)  involves the operation of a motor vehicle; and
(3)  is defined by Section 472.022, rather than 522.003, Transportation
Code, Subtitle C, Title 7, Transportation Code, or Section 729.001(a)(3),
Transportation Code. 

(b)  Requires the judge to require the defendant to successfully complete
a driving safety course approved by the Texas Education Agency or a course
under the motorcycle operator training and safety program approved by the
designated state agency under Chapter 662, Transportation Code, if: 

(1)  the defendant elects to take a driving safety course or motorcycle
operator training course under this article; 
(2)  the defendant has not completed an approved driving safety course or
motorcycle operator training course, as appropriate, within the 12 months
preceding the date of the offense; 
(3) the defendant enters a plea under Article 45.021 in person or in
writing of no contest or guilty on or before the answer date on the notice
to appear and other circumstances apply. 
(4) the defendant has a valid Texas driver's license or permit;
(5) the defendant is charged with an offense to which this article
applies, other than speeding 25 miles per hour or more over the posted
speed limit; and 
(6) the defendant provides evidence of financial responsibility as
required by Chapter 601, Transportation Code. 

Makes conforming and nonsubstantive changes.

(c)  Requires the court to enter judgment on the defendant's plea of no
contest or guilty at the time the plea is made, defer imposition of the
judgment, and allow the defendant 90 days to successfully complete the
approved driving safety course or motorcycle operator training course and
present to the court certain information. 

(d)  Amends statutory references to conform to changes in law made by this
Act. 

(e)  Makes conforming changes.

(f)  Authorizes the court, in addition to court costs and fees authorized
or imposed by a law of this state and applicable to the offense, to: 

(1)  require a defendant requesting a course under Subsection (b) to pay a
fee set by the court at an amount of not more than $10; or 
(2)  require a defendant requesting a course under Subsection (d) to pay a
fee set by the court at an amount not to exceed the maximum amount of the
fine for the offense committed by the defendant. 

(g)  Makes a conforming change.

(h)  No changes made to this subsection.

(i)  Requires the court, if a defendant requesting a course under this
article fails to comply with Subsection (c), to: 
 
(1)  notify the defendant in writing, mailed to the address on file with
the court or appearing on the notice to appear, of that failure; and 
(2)  require the defendant to appear at the time and place stated in the
notice to show cause why the evidence was not timely submitted to the
court. 

(j)  Requires the court, if the defendant fails to appear at the time and
place stated in the notice under Subsection (i), or appears at the time
and place stated in the notice but does not show good cause for the
defendant's failure to comply with Subsection (c), to enter an
adjudication of guilt and impose sentence.  Deletes text regarding a
misdemeanor punishable as provided by Section 543.009, Transportation
Code. 

(k)  Authorizes the court, on a defendant's showing of good cause for
failure to furnish evidence to the court, to allow an extension of time
during which the defendant may present: 

(1)  a uniform certificate of course completion as evidence that the
defendant successfully completed the driving safety course; or 
(2)  a verification of course completion as evidence that the defendant
successfully completed the motorcycle operator training course. 

(l)  Requires the court, when a defendant complies with Subsection (c), to:

(1)  proceed with an adjudication of guilt, but may not impose the fine
assessed or a reduced fine, rather than remove the judgment and dismiss
the charge; 
(2)  report the fact that the defendant successfully completed a driving
safety course or a motorcycle operator training course and the date of
completion to the Texas Department of Public Safety for inclusion in the
person's driving record; and 
(3)  state in that report whether the course was taken under this article
to provide information necessary to determine eligibility to take a
subsequent course under Subsection (b). 

(m)  Authorizes a defendant charged with more than one offense to complete
a driving safety course in connection with only one of the charges. 

(n)  Deletes the existing text of Subsection (n) and redesignates
Subsection (o) as (n). Requires the court to advise a defendant charged
with a misdemeanor under Section 472.022, Transportation Code, Subtitle C,
Title 7, Transportation Code, or Section 729.001(a)(3), Transportation
Code, committed while operating a motor vehicle of the defendant's right
under this article to successfully complete a driving safety course or, if
the offense was committed while operating a motorcycle, a motorcycle
operator training course.  Provides that the right to complete a course
does not apply to a defendant charged with: 

(1)  a violation of Section 545.066, 550.022, or 550.023, Transportation
Code (deletes Sections 545.401, 545.421); or 
(2)  an offense to which Section 542.404 or 729.004(b) (deletes Section
522.003), Transportation Code, applies. 

(p)  Requires a notice to appear issued for an offense to which this
article applies to inform a defendant charged with an offense under
Section 472.022, Transportation Code, an offense under Subtitle C, Title
7, Transportation Code, or an offense under Section 729.001(a)(3),
Transportation Code, committed while operating a motor vehicle of the
defendant's right to complete a driving safety course or, if the offense
was committed while operating a motorcycle, of the defendant's right to
complete a  motorcycle operator training course.  Sets forth the
substantial wording of the notice required by this subsection.  

(q)  Authorizes the defendant, if the notice required by Subsection (p) is
not provided to the defendant charged with the offense, to continue to
exercise the defendant's right to take a driving safety course or a
motorcycle operator training course until the notice required by
Subsection (p) is provided to the defendant or there is a final
disposition of the case.  Deletes the existing text of Subsection (q)
regarding deferred disposition. 

SECTION 8.03.  Amends Section 472.022(f), Transportation Code, to provide
that Articles 45.051 and 45.0511, Code of Criminal Procedure, do not,
rather than Article 45.54, Code of Criminal Procedure, does not, apply to
an offense under this section committed in a construction or maintenance
work zone when workers are present. 

SECTION 8.04.  Repealers: Section 543.101 (Statement of Right Provided on
Notice to Appear), Transportation Code; and Section 543.117 (Offense in
Construction or Maintenance Work Zone), Transportation Code. 

SECTION 8.05.  (a)  Effective date for this article: September 1, 2003.

(b) and (c)  Make Articles 45.051 and 45.0511, Code of Criminal Procedure,
as amended by this article, prospective to September 1, 2003. 

ARTICLE 9.  DRIVER'S LICENSES

SECTION 9.01.  Amends Section 521.292, Transportation Code, by adding
Subsection (c), to provide that for purposes of Subsection (a)(3), (7), or
(9) and Subsection (b), an adjudication of guilt under Articles 45.051(c
1) and 45.0511(l)(1), Code of Criminal Procedure, is not a conviction. 

ARTICLE 10.  COMMERCIAL DRIVER'S LICENSES

SECTION 10.01.  Amends Section 522.003(25), Transportation Code, to
redefine "serious traffic violation." 

SECTION 10.02.  Amends Section 522.081, Transportation Code, as follows:

(a)  Provides that this subsection applies to a violation committed while
operating any motor vehicle, including a commercial motor vehicle.
Provides that a person who holds a commercial driver's license is
disqualified from driving a commercial motor vehicle for certain amounts
of time if convicted of certain offenses.  Deletes provisions regarding
certain violations. 

(b)  Provides that this subsection applies to a violation committed while
operating any motor vehicle, including a commercial motor vehicle, except
as provided by this subsection.  Provides that a person who holds a
commercial driver's license is disqualified from driving a commercial
motor vehicle for one year if convicted of a certain offense.  Deletes
text regarding certain offenses. 

(c)  Provides that a person who holds a commercial driver's license is
disqualified from operating a commercial motor vehicle for three years if
the person is convicted of a certain offense.  Deletes text regarding
certain offenses. 

(d)  Provides that a person is disqualified from driving a commercial
motor vehicle for life if the person is convicted of certain offenses. 

(e)  Prohibits a person from being issued a commercial driver's license
and disqualifies the  person from operating a commercial motor vehicle if,
in connection with the person's operation of a commercial motor vehicle,
the person commits an offense or engages in conduct that would disqualify
the holder of a commercial driver's license from operating a commercial
motor vehicle, or is determined to have had an alcohol concentration of
0.04 or more or to have had a controlled substance or drug present in the
person's body.  Provides that the period of prohibition under this
subsection is equal to the appropriate period of disqualification required
by Subsections (a) (d). 

(f)  Created from existing text.

SECTION 10.03.  Amends Section 522.087, Transportation Code, to conform
statutory references to changes in law. 

SECTION 10.04.  Amends Section 543.202(b), Transportation Code, to require
a record to be made on a form or by a data processing method acceptable to
TxDOT and to include the plea, the judgment, whether the individual was
adjudicated under Article 45.051(c-1) or 45.0511(l)(1), Code of Criminal
Procedure, and whether bail was forfeited, among other information. 

SECTION 10.05.  Repealer:  Section 543.101 (Statement of Right Provided on
Notice to Appear), Transportation Code.  [As drafted, this provision is
also repealed in SECTION 8.04 of this Act.] 

SECTION 10.06.  (a)  Effective date for this article:  June 1, 2005.

(b)  Makes application of Sections 522.081 and 522.087, Transportation
Code, as amended by this article, prospective. 

ARTICLE 11.  MOTOR VEHICLE SALES TAX

SECTION 11.01.  Amends Section 152.002, Tax Code, is amended by adding
Subsection (f), to provide that, notwithstanding Subsection (a), the total
consideration of a used motor vehicle is the amount on which the tax is
computed as provided by Section 152.0412. 

SECTION 11.02.  Amends Section 152.041(a), Tax Code, to include a
reference to Section 152.0412. 

SECTION 11.03.  Amends Subchapter C, Chapter 152, Tax Code, by adding
Section 152.0412, as follows: 

Sec. 152.0412.  STANDARD PRESUMPTIVE VALUE; USE BY TAX ASSESSOR-COLLECTOR.
(a)  Defines "standard presumptive value." 

(b)  Provides that if the amount paid for a motor vehicle subject to the
tax imposed by this chapter is equal to or greater than the standard
presumptive value of the vehicle, a county tax assessor-collector is
required to compute the tax on the amount paid. 

(c)  Provides that if the amount paid for a motor vehicle subject to the
tax imposed by this chapter is less than the standard presumptive value of
the vehicle, a county tax assessor-collector is required to compute the
tax on the standard presumptive value unless the purchaser establishes the
retail value of the vehicle as provided by Subsection (d). 

(d)  Requires a county tax assessor-collector to compute the tax imposed
by this chapter on the retail value of a motor vehicle if certain criteria
are fulfilled. 

(e)  Requires a motor vehicle dealer operating under Subchapter B, Chapter
503,  Transportation Code, on request, to provide a certified appraisal of
the retail value of a motor vehicle.  Requires the comptroller by rule to
establish a fee that a dealer may charge for providing the certified
appraisal.  Requires the county tax assessor-collector shall retain a copy
of a certified appraisal received under this section. 

(f)  Requires TxDOT to maintain information on the standard presumptive
values of motor vehicles as part of TxDOT's registration and title system.
Requires TxDOT to update the information at least quarterly each calendar
year. 

SECTION 11.04.  Amends Chapter 152, Tax Code, by amending Section 152.121
and adding Section 152.123, as follows: 

Sec. 152.121.  TAX SENT TO COMPTROLLER.  (a)  Requires a county tax
assessor-collector, after crediting the amounts as provided by Section
152.123, to send money collected from taxes and penalties imposed by this
chapter to the comptroller in a certain manner. 

(b) No changes to this subsection.  Deletes Subsection (c), regarding the
amount of net collections under Chapter 502, Transportation Code, being
insufficient to cover the amount of those net collections authorized to be
retained by a county as a percentage of the tax and penalties collected
under this chapter. 

Sec. 152.123.  TAX RETAINED BY COUNTY.  (a) Requires the county tax
assessor-collector to calculate five percent of the tax and penalties
collected by the county tax assessor-collector under this chapter.
Requires the county tax assessor-collector, in addition, to calculate each
calendar year an amount equal to five percent of the tax and penalties
that the comptroller collected under Section 152.047 in the preceding
calendar year, and determines are attributable to sales in the county. 

(b) Requires the county to retain a certain percentage of the amounts
calculated under Subsection (a) during each of certain fiscal years. 

(c) Requires the county to credit the amounts retained under Subsection
(b) to the county 's general fund. 

SECTION 11.05.  Amends Section 502.102(b), Transportation Code, to make
conforming changes. 

SECTION 11.06.  Amends Chapter 502, Transportation Code, by adding Section
502.1025, as follows: 

Sec. 502.1025.  ADDITIONAL AMOUNTS RETAINED BY A COUNTY.  (a) Requires the
county tax assessor-collector to calculate five percent of the tax and
penalties collected by the county tax assessor-collector under Chapter
152, Tax Code.  Requires the county tax assessor-collector, in addition,
to calculate each calendar year an amount equal to five percent of the tax
and penalties that the comptroller collected under Section 152.047, Tax
Code, in the preceding calendar year, and determines are attributable to
sales in the county. 

(b) Requires a county tax assessor-collector to retain a certain
percentage of the amounts calculated under Subsection (a) during each of
certain fiscal years. 

(c) Requires the county to credit the amounts retained under Subsection
(b) to the county road and bridge fund.  Provides that money credited to
the fund under this section may only be used for county road construction,
maintenance, and repair, bridge construction, maintenance, and repair, the
purchase of right-of-way for road or highway purposes, or the relocation
of utilities for road or highway purposes. 
 
SECTION 11.07.  Repealer:  Section 502.108(e) (regarding the use of
registration fees for certain purposes), Transportation Code. 

ARTICLE 12.  MISCELLANEOUS PROVISIONS

SECTION 12.01.  Amends Section 201.601, Transportation Code, by adding
Subsection (c), to require the plan to include a component that is not
financially constrained and identifies transportation improvements
designed to relieve congestion.  Requires TxDOT, in developing this
component of the plan, to seek opinions and assistance from officials who
have local responsibility for modes of transportation listed in Subsection
(a). 

[As drafted, C.S.H.B. 3588 also adds this Subsection (d).]

(d)  Requires the plan to include a component, published annually, that
describes the evaluation of transportation improvements based on
performance measures, such as indices measuring delay reductions or travel
time improvements.  Requires TxDOT to consider the performance measures in
selecting transportation improvements. 

SECTION 12.02.  (a)  Authorizes TTC to sell the tract of land comprising
TxDOT's Bull Creek campus at Bull Creek Road and 45th Street in Austin in
accordance with the procedures for disposal of surplus land acquired for
highway purposes under Subchapter B, Chapter 202, Transportation Code. 

(b)  Authorizes TTC to retain ownership and control of the portion of the
Bull Creek campus used on the effective date of this Act for the
operations of the department's motor carrier division, and the parking
facilities on Bull Creek Road used to serve the Bull Creek campus and the
department's Camp Hubbard campus. 

(c)  Requires revenue from the sale of this property to be deposited to
the credit of the state highway fund. 

(d)  Authorizes TTC, before September 1, 2005, to purchase or acquire by
exercise of the power of eminent domain any portion of the State Aircraft
Pooling Board property located at the site of the former Robert Mueller
Municipal Airport in Austin that TTC determines is needed: 

  (1)  as a replacement for property sold under Subsection (a) of this
section; 
  (2)  for the operation of an intelligent transportation system; or
  (3)  to locate other department facilities or offices.

(e)  Authorizes TxDOT to relocate its displaced operations from the Bull
Creek campus to the replacement property.  Authorizes TTC, if the State
Aircraft Pooling Board property is not sufficient for TxDOT's needs to
relocate displaced operations and for other facilities or offices, to also
purchase or acquire by exercise of the power of eminent domain any
property adjacent to that property that TTC determines necessary. 

(f)  Provides that this section does not require TTC to relocate all or a
portion of TxDOT's displaced operations from the Bull Creek campus to
property acquired under this section. 

(g)  Provides that Section 31.158, Natural Resources Code, does not apply
to a transaction authorized by this section. 

SECTION 12.03.  (a) Requires the Texas Building and Procurement
Commission, on behalf of the state, to sell TxDOT the following
state-owned land on the site of the former Robert Mueller Municipal
Airport in Austin: 

 (1) the 3.010-acre tract of land located at 4900 Old Manor Road; and
(2) any other portion of state-owned land that the TxDOT needs to relocate
the operations carried out at its Bull Creek Campus at Bull Creek Road and
45th Street in Austin.  

(b) Requires TxDOT to purchase the land before September 1, 2005.

(c) Provides that Section 31.158, Natural Resources Code, does not apply
to a real estate transaction authorized by this section. 

SECTION 12.04.  Amends Section 222.103(h), Transportation Code, to
prohibit money granted by TxDOT each fiscal year under this section from
exceeding $800 million.  Deletes text regarding the federal fiscal year
and 30 percent of the obligation authority under the federal-aid highway
program distributed to this state in a certain year.  Provides that this
limitation does not apply to money required to be repaid. 

ARTICLE 13.  GENERAL PROVISIONS; EFFECTIVE DATE

SECTION 13.01.  Provides that money required to be deposited to a specific
fund or account by a change in law made by this Act is exempt from Section
403.095, Government Code. 

SECTION 13.02.  Effective date:  except as otherwise provided by this Act,
September 1, 2003.