SRC-AMY, JLB, JEC S.B. 1924 78(R) BILL ANALYSIS
Senate Research Center S.B. 1924
78R13682 JTS-FBy: Ogden
Infrastructure Development and Security
4/30/2003
As Filed
DIGEST AND PURPOSE
As proposed, S.B. 1924 amends the Transportation Code to allow the Texas
Transportation Commission (TTC) to authorize the creation of a regional
mobility authority (RMA) and establish an RMA as a local government unit
with certain powers, duties, authorities, and abilities. This bill
requires TTC to oversee an RMA and authorizes TTC to convert sections of
state highway to a toll road and deed those stretches to the RMA and
related requirements and authorities. This bill prohibits transferring
the Queen Isabella Causeway to an RMA. This bill also establishes the
structure in which the RMA enters agreements.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Transportation
Commission in SECTION 1 (Sections 370.035, 370.037, 370.038, 370.188
Transportation Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. 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. Provides that this chapter may be cited as
the Regional Mobility Authority Act.
Sec. 370.002. PURPOSES; LIBERAL CONSTRUCTION. (a) Sets forth the
purposes of this chapter.
(b) Requires that this chapter be liberally construed to effect its
purposes.
Sec. 370.003. DEFINITIONS. Defines "authority," "board," "bond," "bond
proceeding," "bond resolution," "bondholder," "exclusive development
agreement," "governmental entity," "highway," "public utility facility,"
"revenue," "surplus revenue," "system," "transportation project," and
"turnpike project."
Sec. 370.004. CONSTRUCTION COSTS DEFINED. (a) Sets forth the elements
of 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
the Texas Transportation Commission (TTC), at the request of one or more
counties, by order 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 the creation of an authority 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 if 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) Authorizes an authority, through its
board, to take certain actions, including adopting rules and performing
tasks necessary to fulfill its functions and duties under this chapter.
(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 the Texas Department of
Transportation (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, if requested by TTC, to perform any function
not specified by this chapter to promote or develop a transportation
project in this state.
(d) Authorizes an authority to sue and be sued and plead and be impleaded
in its own name.
(e) Authorizes an authority to rent, lease, franchise, license, or make
portions of its properties available for use by others in furtherance of
its powers under this chapter by increasing the feasibility or the revenue
of a transportation project.
(f) Authorizes an authority and a governmental entity to enter into a
contract, agreement, interlocal agreement, or other similar arrangement
under which the authority is authorized to plan, design, construct, or
operate a transportation project on behalf of the governmental entity.
Authorizes an authority to enter into a contract with TxDOT under which
the authority will plan, develop, operate, or maintain a transportation
project on behalf of TxDOT.
(g) Provides that payments to be made to an authority under a contract
described by Subsection (f) constitute operating expenses of the
transportation project or system that is to be operated under the
contract. Provides that the contract may extend for the number of years
as agreed to by the parties.
(h) Requires an authority to adopt a written drug and alcohol policy
restricting the use of controlled substances by officers and employees of
the authority, prohibiting the consumption of alcoholic beverages by
employees while on duty, and prohibiting employees from working for the
authority while under the influence of a controlled substance or alcohol.
Authorizes an authority to adopt policies regarding the testing of
employees suspected of being in violation of the authority's drug and
alcohol policy. Requires the policy to provide that, unless required by
court order or permitted by the person who is the subject of the testing,
the authority shall keep the results of the test confidential.
(i) Requires an authority to adopt written procedures governing its
procurement of goods and services that are consistent with general laws
applicable to the authority.
(j) Prohibits an authority from applying for federal highway or rail
funds without the approval of TxDOT.
(k) Provides that the authority granted to an authority under Subsection
(a)(10) does not include the authority to operate a public utility
facility that provides retail public utility service.
(l) Prohibits an authority, if it establishes an airport in Central
Texas, from establishing the airport at a location prohibited to TxDOT by
Section 21.069(c).
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 that the revenue of a system 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. CONVERSION AND TRANSFER OF STATE HIGHWAY SYSTEM PROJECTS.
(a) Authorizes TTC by order to convert a segment of the free state
highway system to a turnpike project and transfer that segment to an
authority, or to transfer an existing turnpike project that is part of
the state highway system, whether previously tolled or not, to an
authority if certain conditions are met.
(b) Requires an authority to reimburse TTC for the cost of a transferred
turnpike project 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 turnpike project, to
include and consider certain information.
(d) Authorizes TTC, at the time a turnpike project is transferred, to
remove the turnpike project from the state highway system. Provides that
after a transfer, TTC has no liability, responsibility, or duty for the
maintenance or operation of the turnpike project.
(e) Requires TTC, before transferring a turnpike project 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.
(f) Requires TTC to adopt rules to implement this section. Requires that
the rules include criteria and guidelines for the approval of a transfer
of a turnpike project.
(g) Requires an authority to adopt rules providing criteria and
guidelines for approval of the transfer of a turnpike project under this
section.
(h) 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 if
the assumption meets certain conditions.
(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 if TTC determines that the proposed transfer is an
integral part of the region's overall plan to improve mobility in the
region, and the authority agrees to the transfer and agrees to assume all
liability and responsibility for the maintenance and operation of the
ferry on its transfer.
(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 and
consider certain information.
(d) Requires TTC, at the time the ferry is transferred, to 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 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
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.
Sec. 370.038. COMMISSION RULES. (a) Requires TTC to adopt rules that
meet certain criteria.
(b) Requires TTC to appoint a rules advisory committee to advise TxDOT
and TTC on the development of TTC's initial rules required by this
section. Requires the committee to include one or more members
representing an existing authority, if applicable. Provides that Chapter
2110, 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 means.
(b) Requires that money spent under this section for a proposed
transportation project 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 may 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
shall 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) Permits 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 bonds and financing.
(d) Requires that money spent under Subsection (c) for a proposed
transportation project be reimbursed from the proceeds of revenue bonds
issued for, or other proceeds that may 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 bonds and financing.
(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 that may 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. TRANSPORTATION REVENUE BONDS. (a) Authorizes an
authority, by bond resolution, to authorize the issuance of bonds to pay
all or part of the cost of a transportation project, to refund any bonds
previously issued for the transportation project, or to pay for all or
part of the cost of a transportation project that will become a part of
another system.
(b) Requires the bonds of each issue, as determined in the bond
resolution, to meet certain criteria.
(c) Authorizes an authority to sell the bonds at public or private sale
in the manner and for the price it determines to be in the best interest
of the authority.
(d) Requires that the proceeds of each bond issue be disbursed in the
manner and under any restrictions provided in the bond resolution.
(e) Provides that additional bonds may be issued in the same manner to
pay the costs of a transportation project. Provides that, unless
otherwise provided in the bond resolution, the additional bonds shall be
on a parity, without preference or priority, with bonds previously issued
and payable from the revenue of the transportation project. Authorizes an
authority, in addition, to issue bonds for a transportation project
secured by a lien on the revenue of the transportation project subordinate
to the lien on the revenue securing other bonds issued for the
transportation project.
(f) Requires that, if the proceeds of a bond issue exceed the cost of the
transportation project for which the bonds were issued, the surplus be
segregated from the other money of the authority and used only for the
purposes specified in the bond resolution.
(g) Provides that bonds issued and delivered under this chapter and
interest coupons on the bonds are a security under Chapter 8, Business &
Commerce Code.
(h) Provides that bonds issued under this chapter and income from the
bonds, including any profit made on the sale or transfer of the bonds, are
exempt from taxation in this state.
(i) Requires that bonds issued under this chapter be considered
authorized investments under Chapter 2256, Government Code, for this
state, any governmental entity, and any other public entity proposing to
invest in the bonds.
Sec. 370.112. INTERIM BONDS. (a) Authorizes an authority, before
issuing definitive bonds, to issue interim bonds, with or without coupons,
exchangeable for definitive bonds.
(b) Authorizes the interim bonds to be authorized and issued in
accordance with this chapter, without regard to a requirement,
restriction, or procedural provision in any other law.
(c) Authorizes a bond resolution authorizing interim bonds to provide
that the interim bonds recite that the bonds are issued under this
chapter. Provides that the recital is conclusive evidence of the validity
and the regularity of the bonds' issuance.
Sec. 370.113. PAYMENT OF BONDS; STATE AND COUNTY CREDIT. (a) Provides
that the principal of, interest on, and any redemption premium on bonds
issued by an authority are payable solely from certain sources.
(b) Provides that bonds issued under this chapter do not constitute a
debt of this state or of a governmental entity, or a pledge of the faith
and credit of this state or of a governmental entity. Requires that each
bond contain on its face a statement to the effect that the state, the
authority, or any governmental entity is not obligated to pay the bond or
the interest on the bond from a source other than the amount pledged to
pay the bond and the interest on the bond, and neither the faith and
credit and taxing power of this state or of any governmental entity are
pledged to the payment of the principal of or interest on the bond.
Provides that this subsection does not apply to a governmental entity that
has entered into an agreement under Section 370.303.
(c) Prohibits an authority from incurring a financial obligation that
cannot be paid from revenue derived from owning or operating the
authority's transportation projects or from other revenue provided by law.
Sec. 370.114. EFFECT OF LIEN. (a) Sets forth provisions regarding a
lien on or a pledge of revenue from a transportation project under this
chapter or on a reserve, replacement, or other fund established in
connection with a bond issued under this chapter.
(b) Provides that a bond resolution is not required to be recorded except
in the regular records of the authority.
Sec. 370.115. BOND INDENTURE. (a) Authorizes bonds issued by an
authority under this chapter to be secured by a bond indenture between the
authority and a corporate trustee that is a trust company or a bank that
has the powers of a trust company.
(b) Authorizes a bond indenture to pledge or assign the revenues to be
received but prohibits the bond indenture from conveying or mortgaging any
part of a transportation project.
(c) Authorizes a bond indenture to contain certain provisions and
information.
(d) Authorizes an expense incurred in carrying out a trust agreement to
be treated as part of the cost of operating the transportation project.
(e) Authorizes an owner or trustee of a bond issued under this chapter,
in addition to all other rights by mandamus or other court proceeding, to
enforce the owner's rights against an issuing authority, the authority's
employees, the authority's board, or an agent or employee of the
authority's board and entitles the owner or trustee to require the
authority or the board to impose and collect tolls, fares, fees, charges,
and other revenue sufficient to carry out any agreement contained in the
bond proceedings, and apply for and obtain the appointment of a receiver
for the transportation project or system.
Sec. 370.116. APPROVAL OF BONDS BY ATTORNEY GENERAL. (a) Requires an
authority to submit to the attorney general for examination the record of
proceedings relating to bonds authorized under this chapter. Requires the
record to include the bond proceedings and any contract securing or
providing revenue for the payment of the bonds.
(b) Requires the attorney general, if the attorney general determines
that the bonds, the bond proceedings, and any supporting contract are
authorized by law, to approve the bonds and deliver to the comptroller
certain records.
(c) Requires the comptroller, on receipt of the legal opinion of the
attorney general and the record of proceedings relating to the
authorization of the bonds, to register the record of proceedings.
(d) Provides that, after approval by the attorney general, the bonds, the
bond proceedings, and any supporting contract are valid, enforceable, and
incontestable in any court or other forum for any reason and are binding
obligations according to their terms for all purposes.
Sec. 370.117. FURNISHING OF INDEMNIFYING BONDS OR PLEDGES OF SECURITIES.
(a) Authorizes a bank or trust company incorporated under the laws of
this state that acts as depository of the proceeds of bonds or of revenue
to furnish indemnifying bonds or pledge securities that an authority
requires.
(b) Authorizes bonds of an authority to secure the deposit of public
money of this state or a political subdivision of this state to the extent
of the lesser of the face value of the bonds or their market value.
Sec. 370.118. APPLICABILITY OF OTHER LAW; CONFLICTS. Provides that all
laws affecting the issuance of bonds by local governmental entities,
including Chapters 1201, 1202, 1204, and 1371, Government Code, apply to
bonds issued under this chapter. Provides that to the extent of a conflict
between those laws and this chapter, the provisions of this chapter
prevail.
[Reserves Sections 370.119-370.160 for expansion.]
SUBCHAPTER E. ACQUISITION, CONSTRUCTION, AND OPERATION OF TRANSPORTATION
PROJECTS
Sec. 370.161. TRANSPORTATION PROJECTS EXTENDING INTO OTHER COUNTIES. (a)
Permits an authority to acquire, construct, operate, maintain, expand, or
extend a transportation project only in certain counties.
(b) Authorizes an authority, under an agreement with another governmental
entity, to construct, operate, maintain, expand, or extend a
transportation project in a county that is not part of the authority and
is not owned by 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 may use the same procedures as TTC in acquiring
property.
Sec. 370.163. ACQUISITION OF PROPERTY. (a) Authorizes an authority to
acquire in the name of the authority public or private property it
determines necessary or convenient for the construction, operation,
maintenance, expansion, or extension of a transportation project or for
otherwise carrying out this chapter only if the primary purpose of an
acquisition is the furtherance of a transportation project.
(b) Provides that the property an authority may acquire under this
subchapter includes all or any portion of, and rights in and to, certain
property.
(c) Authorizes an authority to acquire real property by any method,
including purchase and condemnation. Authorizes an authority to purchase
public or private real property on the terms and at the price the
authority and the property owner consider reasonable.
(d) Provides that covenants, conditions, restrictions, or limitations
affecting property acquired in any manner by the authority are not binding
against the authority and do not impair the authority's ability to use the
property for a purpose authorized by this chapter. Prohibits the
beneficiaries of the covenants, conditions, restrictions, or limitations
from enjoining the authority from using the property for a purpose
authorized under this chapter, but provides that this section does not
affect the right of a person to seek compensation for damages to the
person's property under Section 17, Article I, Texas Constitution.
(e) Provides that Subsection (d) does not affect the obligation of the
authority under other state law to compensate this state for acquiring or
using property owned by or on behalf of the state.
Sec. 370.164. RIGHT OF ENTRY. (a) Authorizes an authority, to acquire
property necessary or useful in connection with a transportation project,
on or after the fourth day after the date the authority gives notice to
the owner of the real property, water, or premises, to enter any real
property, water, or premises to make a survey, geotechnical evaluation,
sounding, or examination.
(b) Requires an authority, 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 follow certain guidelines.
(c) Provides that an entry under Subsection (a) or (b) is not a trespass,
or an entry under a pending condemnation proceeding.
(d) Requires the authority to make reimbursements for any actual damages
to real property, water, or premises that result from an activity
described by Subsection (a) or (b).
Sec. 370.165. CONDEMNATION OF REAL PROPERTY. (a) Authorizes an
authority, subject to Subsection (c), to acquire public or private real
property in the name of the authority by the exercise of the power of
condemnation under the laws applicable to the exercise of that power on
property for public use if certain conditions are met.
(b) Authorizes an authority to condemn real property that the authority
determines is necessary for certain purposes.
(c) Permits an authority to construct a supplemental facility only on
real property the authority purchases.
(d) Provides that an authority's acquisition of any property of TTC under
this section or any other section of this chapter or an authority's
relocation, rerouting, disruption, or alteration of any facility of TTC is
considered a conversion of a state highway under Section 370.035 and is
subject to each requirement or approval of a conversion under that
section.
(e) 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. 370.166. DECLARATION OF TAKING. (a) Authorizes an authority to
file a declaration of taking with the clerk of the court in which the
authority files a condemnation petition under Chapter 21, Property Code,
or to which the case is assigned.
(b) Authorizes an authority to file the declaration of taking
concurrently with or subsequent to the filing of the condemnation petition
but prohibits the authority from filing the declaration after the special
commissioners have made an award in the condemnation proceeding.
(c) Requires the declaration of taking to include certain information.
(d) Requires a deposit to the registry of the court of an amount equal to
the fair market value, as determined by the authority, of the property to
be condemned and any damages to the remainder to accompany the declaration
of taking.
(e) Authorizes the authority, instead of the deposit under Subsection
(d), at its option, concurrently with the declaration of a taking, to
tender in favor of the owner of the property a bond or other security in
an amount sufficient to secure the owner for the value of the property
taken and damages to remaining property, if the authority obtains the
court's approval.
(f) Provides that the date on which the declaration is filed is the date
of taking for the purpose of assessing the value of the property taken and
damages to any remaining property to which an owner is entitled.
(g) Authorizes an owner to draw upon the deposit held by the court under
Subsection (d) on the same terms and conditions as are applicable under
state law to a property owner's withdrawal of a commissioners' award
deposited under Section 21.021(a)(1), Property Code.
(h) Provides that a property owner who is a defendant in an eminent
domain action filed by an authority under this chapter has 20 days after
the date of service of process of both a condemnation petition and a
notice of declaration of taking to give notice to the court in which the
action is pending of the property owner's preference that the condemnation
petition be placed on the court's docket in the same manner as other
cases pending in the court. Requires the court in which the action is
pending, on receipt of timely notice from the property owner, to place the
case on its docket in the same manner as other cases pending in the court.
Sec. 370.167. POSSESSION OF PROPERTY. (a) Requires an authority,
immediately on the filing of a declaration of taking, to serve a copy of
the declaration on each person possessing an interest in the condemned
property by a method prescribed by Section 21.016(d), Property Code.
Requires the authority to file evidence of the service with the clerk of
the court. Authorizes the authority, on filing of that evidence, to take
possession of the property on the same terms as if a commissioners hearing
had been conducted, pending the litigation.
(b) Prohibits an authority, if the condemned property is a homestead or a
portion of a homestead as defined by Section 41.002, Property Code, from
taking possession before the 31st day after the date of service under
Subsection (a).
(c) Provides that a property owner or tenant who refuses to vacate the
property or yield possession is subject to forcible entry and detainer
under Chapter 24, Property Code.
Sec. 370.168. SEVERANCE OF REAL PROPERTY. (a) Requires an authority, if
a transportation project of the authority severs a property owner's real
property, to pay certain amounts.
(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. 370.169. 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. 370.170. COMPENSATION FOR AND RESTORATION OF PUBLIC PROPERTY. (a)
Prohibits, except as provided by Section 370.035 or 370.165(c), an
authority from paying compensation for public real property, parkways,
streets, highways, alleys, or reservations it takes, other than certain
property.
(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.
Sec. 370.171. 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 a 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 certain causes.
(e) Provides that if an owner or operator of a public utility facility
does not timely relocate or remove the facility as required by Subsection
(b), the authority is authorized to do so at the expense of the owner or
operator. Requires the authority, if it relocates or removes a facility
under this subsection, to relocate or remove the facility in a safe manner
that meets certain conditions.
(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 certain information.
(h) Provides that Subchapter C, Chapter 181, 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,
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 and exclusive jurisdiction and control of utilities located in
its rights-of-way.
(i) Provides that Subchapter B, Chapter 181, 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, 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 and exclusive jurisdiction and
control of utilities located in its right-of-way.
(j) Provides that the laws of this state applicable to the use of public
roads, streets, and waters by a telephone or telegraph corporation apply
to the erection, construction, maintenance, location, and operation of a
line, pole, or other fixture by a telephone or telegraph corporation over,
under, across, on, and along a transportation project constructed by an
authority under this chapter.
Sec. 370.172. LEASE, SALE, OR CONVEYANCE OF TRANSPORTATION PROJECT.
Authorizes an authority to lease, sell, or convey in any other manner a
transportation project to a governmental entity with the approval of the
governing body of the governmental entity to which the project is
transferred.
Sec. 370.173. REVENUE. (a) Authorizes an authority to perform certain
acts.
(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 certain revenue from
the transportation project, provide revenues sufficient to pay certain
costs and create certain reserves.
(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 certain payments.
(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.
Sec. 370.174. AUTHORITY REVOLVING FUND. (a) Authorizes an authority to
maintain a revolving fund to be held in trust by a banking institution
chosen by the authority separate from any other funds and administered by
the authority's board.
(b) Authorizes an authority to transfer into its revolving fund money
from certain permissible sources.
(c) Authorizes the authority to use money in the revolving fund for
certain purposes.
(d) Requires money spent or advanced from the revolving fund for a
transportation project to be reimbursed from the money of that
transportation project. Requires there to be a reasonable expectation of
repayment at the time the expenditure or advancement is authorized.
Sec. 370.175. 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 commission
rule, to spend surplus revenue on other transportation projects by certain
means.
Sec. 370.176. EXEMPTION FROM TAXATION OR ASSESSMENT. (a) Provides that
an authority is exempt from taxation of or assessments on certain
entities.
(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. 370.177. ACTIONS AFFECTING EXISTING ROADS. (a) Authorizes an
authority to impose a toll for transit over an existing free road, street,
or public highway transferred to the authority under this chapter.
(b) 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 the department'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.
(c) 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.
(d) Requires the authority, if an authority changes the location of a
segment of a county road as part of its development of a transportation
project, to, on the request of the county, 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. 370.178. 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 in the event of nonpayment of the proper toll as
required by Subsection (a), on issuance of a written notice of nonpayment,
the registered owner of the nonpaying vehicle is liable for the payment of
both the proper toll and an administrative fee.
(c) Authorizes the authority to impose and collect the administrative fee
to recover the cost of collecting the unpaid toll, not to exceed $100.
Requires the authority to send a written notice of nonpayment to the
registered owner of the vehicle at that owner's address as shown in the
vehicle registration records of the department by first class mail not
later than the 30th day after the date of the alleged failure to pay and
may require payment not sooner than the 30th day after the date the notice
was mailed. Requires the registered owner to pay a separate toll and
administrative fee for each event of nonpayment under Subsection (a).
(d) Provides that the registered owner of a vehicle for which the proper
toll was not paid who is mailed a written notice of nonpayment under
Subsection (c) 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
subsection is a separate offense.
(e) Provides that it is an exception to the application of Subsection (b)
or (d) that the registered owner of the vehicle is a lessor of the vehicle
and not later than the 30th day after the date the notice of nonpayment is
mailed provides to the authority a copy of the rental, lease, or other
contract document covering the vehicle on the date of the nonpayment under
Subsection (a), with the name and address of the lessee clearly legible.
Authorizes the authority, if the lessor provides the required information
within the period prescribed, to send a notice of nonpayment to the lessee
at the address shown on the contract document by first class mail before
the 30th day after the date of receipt of the required information from
the lessor. Provides that the lessee of the vehicle for which the proper
toll was not paid who is mailed a written notice of nonpayment under this
subsection and fails to pay the proper toll and administrative fee within
the time specified by the notice of nonpayment commits an offense.
Requires the lessee to pay a separate toll and administrative fee for each
event of nonpayment. Provides that each failure to pay a toll or
administrative fee under this subsection is a separate offense.
(f) Provides that it is an exception to the application of Subsection (b)
or (d) that the registered owner of the vehicle transferred ownership of
the vehicle to another person before the event of nonpayment under
Subsection (a) occurred, submitted written notice of the transfer to the
department in accordance with Section 520.023, and before the 30th day
after the date the notice of nonpayment is mailed, provides to the
authority the name and address of the person to whom the vehicle was
transferred. Authorizes the authority, if the former owner of the vehicle
provides the required information within the period prescribed to send a
notice of nonpayment to the person to whom ownership of the vehicle was
transferred at the address provided by the former owner by first class
mail before the 30th day after the date of receipt of the required
information from the former owner. Provides that the subsequent owner of
the vehicle for which the proper toll was not paid who is mailed a written
notice of nonpayment under this subsection and fails to pay the proper
toll and administrative fee within the time specified by the notice of
nonpayment commits an offense. Requires the subsequent owner to pay a
separate toll and administrative fee for each event of nonpayment under
Subsection (a). Provides that each failure to pay a toll or
administrative fee under this subsection is a separate offense.
(g) Provides that an offense under Subsection (d), (e), or (f) is a
misdemeanor punishable by a fine not to exceed $250.
(h) 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.
(i) Provides that in the prosecution of an offense under this section,
proof that the vehicle passed through a toll collection facility without
payment of the proper toll together with proof that the defendant was the
registered owner or the driver of the vehicle when the failure to pay
occurred, establishes the nonpayment of the registered owner. Authorizes
the proof to be by testimony of a peace officer or authority employee,
video surveillance, or any other reasonable evidence.
(j) Provides that it is a defense to prosecution under this section that
the motor vehicle in question was stolen before the failure to pay the
proper toll occurred and was not recovered by the time of the failure to
pay, but only if the theft was reported to the appropriate law enforcement
authority before the earlier of a certain date.
(k) Defines "registered owner."
Sec. 370.179. USE AND RETURN OF TRANSPONDERS. (a) Defines
"transponder."
Provides that a transponder is insufficiently funded if there is no money
in the account for which the transponder was issued.
(b) Authorizes any law enforcement or peace officer of an entity with
which an authority has contracted under Section 370.182(c) to seize a
stolen or insufficiently funded transponder and return it to the authority
that issued the transponder. Prohibits an insufficiently funded
transponder from being seized before the 30th day after the date that an
authority has sent a notice of delinquency to the holder of the account.
(c) Requires certain entities to consider offering motor vehicle
operators the option of using a transponder to pay tolls without stopping,
to mitigate congestion at toll locations, to enhance traffic flow, and to
otherwise increase the efficiency of operations.
Sec. 370.180. CONTROLLED ACCESS TO TURNPIKE PROJECTS. (a) Authorizes an
authority by order to designate a turnpike project or a portion of a
project as a controlled-access toll road.
(b) Authorizes an authority by order to perform certain acts.
(c) Provides that denial of access to or from a segment of the state
highway system is subject to the approval of the commission.
Sec. 370.181. 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. 370.182. 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. 370.183. AUDIT. 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.
Sec. 370.184. DISADVANTAGED BUSINESSES. (a) Requires an authority,
consistent with general law, to perform certain acts.
(b) Provides that this section does not exempt an authority from
competitive bidding requirements provided by other law.
Sec. 370.185. PROCUREMENT. Requires an authority to adopt rules
governing the award of contracts for goods and services. Authorizes an
authority, notwithstanding any other provision of state law, to procure
goods and services, including materials, engineering, design,
construction, operations, maintenance, and other goods and services,
through any procedure authorized by this chapter. Provides that
procurement of professional services is governed by Chapter 2254,
Government Code.
Sec. 370.186. COMPETITIVE BIDDING. Authorizes a contract made by an
authority to be let by a competitive bidding procedure in which the
contract is awarded to the lowest responsible bidder that complies with
the authority's criteria.
Sec. 370.187. RESTRICTION ON LOCATION OF TURNPIKE PROJECTS. Prohibits an
authority from constructing, maintaining, or operating a turnpike project
in a county that, on November 6, 2001, meets certain criteria.
Sec. 370.188. PROJECT APPROVAL. (a) Prohibits an authority from
beginning construction of a transportation project that will connect to
the state highway system or to a department rail facility without the
approval of the commission.
(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.
Sec. 370.189. 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 to provide certain information.
(b) Requires an environmental review of a project to be conducted before
the authority may 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.
[Reserves Sections 370.190-370.250 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 one director
to the board. Requires the governor to appoint one director to the board
who shall 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) Provides that certain individuals are ineligible to serve as a
director.
(h) Provides that each director has equal status and may 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. 370.2515. 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 the commission a certain proposed structure for the board and a
method of appointment to the board:
Sec. 370.252. PROHIBITED CONDUCT FOR DIRECTORS AND EMPLOYEES. (a)
Prohibits a director or employee of an authority from certain acts.
(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 meets certain criteria.
(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. 370.253. SURETY BONDS. (a) Requires each director, before
beginning a term, to execute a surety bond in the amount of $25,000, and
the secretary and treasurer to execute a surety bond in the amount of
$50,000.
(b) Requires each surety bond to be meet certain requirements.
(c) Requires the authority to pay the expense of the bonds.
Sec. 370.254. REMOVAL OF DIRECTOR. (a) Provides that it is a ground for
removal of a director from the board if the director does not meet certain
qualifications.
(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) Requires a person, if the chief administrative officer of the
authority has knowledge that a potential ground for removal exists, 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 authorizes it to be evidenced
in any legal manner, including a board resolution.
Sec. 370.257. PUBLIC ACCESS. Requires an authority to perform certain
acts.
Sec. 370.258. INDEMNIFICATION. (a) Authorizes an authority to indemnify
one or more of 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) Authorizes the court in a proceeding in which any claim against the
director or officer is asserted or any court with jurisdiction of an
action instituted by the director or officer on a claim for indemnity, if
an authority does not fully indemnify a director or officer as provided by
Subsection (a), to assess indemnity against the authority, its receiver,
or trustee only if the court finds that, in connection with the claim, the
director or officer is not guilty of negligence or misconduct.
(c) Authorizes a court to not assess indemnity under Subsection (b) for
an amount paid by the director or officer to the authority.
(d) 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.
(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) Defines "equipment."
Sec. 370.260. CERTAIN CONTRACTS AND SALES PROHIBITED. (a) Prohibits a
director, agent, or employee of an authority from certain performing
certain acts.
(b) Provides that a person who violates Subsection (a) is liable for a
civil penalty to the authority in an amount not to exceed $1,000.
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 to
by concurrent resolution 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, not later than March 31 of each year, 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. Requires
representatives of the board and the administrative head of an authority,
at the invitation of a commissioners court of a county of the authority,
to appear before the commissioners court to present the report and receive
questions and comments.
(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.
Sec. 370.262. MEETINGS BY TELEPHONE CONFERENCE CALL. (a) Provides that
Chapter 551, Government Code, does not prohibit any open or closed meeting
of the board, a committee of the board, or the staff, or any combination
of the board or staff, from being held by telephone conference call.
(b) Provides that a telephone conference call meeting is subject to the
notice requirements applicable to other meetings.
(c) Requires notice of a telephone conference call meeting that by law
must be open to the public to specify the location of the meeting.
Requires the location to be a conference room of the authority or other
facility in a county of the authority that is accessible to the public.
(d) Requires each part of the telephone conference call meeting that by
law must be open to the public to be audible to the public at the location
specified in the notice and to be tape-recorded or documented by written
minutes. Requires the tape recording or the written minutes of the
meeting, on conclusion of the meeting, to be made available to the public.
[Reserves Sections 370.263-370.300 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 the commission or department, 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) Prohibits a turnpike project developed by an authority from being
part of the state highway system unless otherwise agreed to by the
authority and TxDOT.
(f) Authorizes TTC to grant or loan department 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.
(g) 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 TO CONSTRUCT, MAINTAIN, AND OPERATE
TRANSPORTATION PROJECTS. (a) Authorizes an authority to enter into an
agreement with a public or private entity, including a toll road
corporation, the United States, a state of the United States, the United
Mexican States, a state of the United Mexican States, another governmental
entity, or a political subdivision, to permit the entity, independently or
jointly with the authority, to study the feasibility of a transportation
project or to acquire, design, finance, construct, maintain, repair,
operate, extend, or expand a transportation project. Authorizes an
authority and a private entity jointly to enter into an agreement with
another governmental entity to study the feasibility of a transportation
project or to acquire, design, finance, construct, maintain, repair,
operate, extend, or expand a transportation project.
(b) Provides that an authority has broad discretion to negotiate
provisions in a development agreement with a private entity. Authorizes
the provisions to include certain information.
(c) Prohibits an authority from incurring a financial obligation on
behalf of, or guarantee the obligations of, a private entity that
constructs, maintains, or operates a transportation project.
(d) Provides that an authority or a county in an authority is not liable
for any financial or other obligation of a transportation project solely
because a private entity constructs, finances, or operates any part of a
transportation project.
(e) Authorizes an authority to authorize the investment of public and
private money, including debt and equity participation, to finance a
function described by this section.
Sec. 370.303. AGREEMENTS BETWEEN AUTHORITY AND LOCAL GOVERNMENTAL
ENTITIES. (a) Authorizes a governmental entity other than a nonprofit
corporation to, consistent with the Texas Constitution, 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, whether inside or outside the geographic
boundaries of the governmental entity, 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, in addition to the powers provided
by Subsection (a), to, at the extent constitutionally permitted, 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. 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 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, to
perform certain acts.
(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.
(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, except that the prohibition in that chapter on the
repayment of an obligation with ad valorem taxes does not apply to an
issuer exercising the authority granted by this section.
Sec. 370.304. ADDITIONAL AGREEMENTS OF AUTHORITY. Authorizes an
authority to enter into any agreement necessary or convenient to achieve
the purposes of this subchapter.
Sec. 370.305. EXCLUSIVE DEVELOPMENT AGREEMENTS. Authorizes an authority
to use an exclusive development agreement to construct, maintain, repair,
operate, extend, or expand a transportation project by invested private
funding or by public funding, private funding, or any combination.
Provides that an agreement under this section is not subject to a
requirement or restriction of Section 222.103(i).
Sec. 370.306. PROCESS FOR ENTERING INTO EXCLUSIVE DEVELOPMENT AGREEMENTS.
(a) Requires the authority, if an authority enters into an exclusive
development agreement, to use a competitive procurement process that
provides the best value for the authority. Authorizes the authority to
accept unsolicited proposals for a proposed transportation project or
solicit proposals in accordance with this section.
(b) Requires the authority to establish rules and procedures for
accepting unsolicited proposals that require the private entity to include
in the proposal certain information.
(c) Requires the authority to publish a request for competing proposals
and qualifications in the Texas Register that includes the criteria used
to evaluate the proposals, the relative weight given to the criteria, and
a deadline by which proposals must be received if certain conditions
exist.
(d) Requires a proposal submitted in response to a request published
under Subsection (c) to contain, at a minimum, the information required by
Subsections (b)(2) and (3).
(e) Authorizes an authority to interview a private entity submitting an
unsolicited proposal or responding to a request under Subsection (c).
Requires the authority to evaluate each proposal based on the criteria
described in the notice. Requires the authority to qualify at least two
private entities to submit detailed proposals for a project under
Subsection (f) unless the authority does not receive more than one
proposal or one response to a request under Subsection (c).
(f) Requires an authority to issue a request for detailed proposals from
all private entities qualified under Subsection (e) if the authority
proceeds with the further evaluation of a proposed project. Authorizes a
request under this subsection to require certain additional information.
(g) Authorizes an authority, in issuing a request for proposals under
Subsection (f), to solicit input from entities qualified under Subsection
(e) or any other person. Authorizes an authority to also solicit input
regarding alternative technical concepts after issuing a request under
Subsection (f).
(h) Requires an authority to rank each proposal based on the criteria
described in the request for proposals and select the private entity whose
proposal offers the best value to the authority.
(i) Authorizes an authority to require that an unsolicited proposal be
accompanied by a nonrefundable fee sufficient to cover all or part of its
cost to review the proposal.
(j) Requires an authority to pay an unsuccessful private entity that
submits a response to a request for detailed proposals under Subsection
(f) a stipulated amount of the final contract price for any costs incurred
in preparing that proposal. Requires the stipulated amount to be stated
in the request for proposals and prohibits it from exceeding the value of
any work product contained in the proposal that can, as determined by the
authority, be used by the authority in the performance of its functions.
Provides that after payment of the stipulated amount
the authority owns the exclusive rights to, and may make use of any work
product contained in, the proposal, including the technologies,
techniques, methods, processes, and information contained in the project
design and the work product contained in the proposal becomes the property
of the authority.
(k) Requires an authority to prescribe the general form of an exclusive
development agreement and may include any matter the authority considers
advantageous to the authority. Requires the authority and the private
entity to negotiate the specific terms of an exclusive development
agreement.
(l) Provides that Subchapter A, Chapter 223, of this code and Chapter
2254, Government Code, do not apply to an exclusive development agreement
entered into under Section 370.305.
Sec. 370.307. CONFIDENTIALITY OF NEGOTIATIONS FOR EXCLUSIVE DEVELOPMENT
AGREEMENTS. Provides that to encourage private entities to submit
proposals under Section 370.306, certain information is confidential, is
not subject to disclosure, inspection, or copying under Chapter 552,
Government Code, and is not subject to disclosure, discovery, subpoena, or
other means of legal compulsion for its release until a final contract for
a proposed project is entered into.
Sec. 370.308. PERFORMANCE AND PAYMENT SECURITY. (a) Requires an
authority, notwithstanding Section 223.006 and the requirements of
Subchapter B, Chapter 2253, Government Code, to require a private entity
entering into an exclusive development agreement under Section 370.005 to
provide a performance and payment bond or an alternative form of security
in an amount sufficient to meet certain obligations.
(b) Requires a performance and payment bond or alternative form of
security to be in an amount equal to the cost of constructing or
maintaining the project.
(c) Requires the authority to set the amount of the bonds or the
alternative forms of security, if an authority determines that it is
impracticable for a private entity to provide security in the amount
described by Subsection (b).
(d) Provides that a payment or performance bond or alternative form of
security is not required for the portion of an agreement that includes
only design or planning services, the performance of preliminary studies,
or the acquisition of real property.
(e) Prohibits the amount of the payment security from being less than the
amount of the performance security.
(f) Authorizes an authority, in addition to performance and payment
bonds, to require certain alternative forms of security.
(g) Requires an authority by rule to prescribe requirements for
alternative forms of security provided under this section.
Sec. 370.309. 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 the transportation project,
including the facilities, at the termination of the agreement, to be in a
state of proper maintenance as determined by the authority and to be
returned to the authority in satisfactory condition at no further cost.
Sec. 370.310. TERMS OF PRIVATE PARTICIPATION. Requires an authority to
negotiate certain terms of private participation in a transportation
project.
Sec. 370.311. RULES, PROCEDURES, AND GUIDELINES GOVERNING NEGOTIATING
PROCESS. (a) Requires an authority to adopt rules, procedures, and other
guidelines governing negotiations to promote fairness, obtain private
participants in transportation projects, and promote confidence among
those participants. Requires the rules to contain criteria relating to
the qualifications of the participants and the award of the contracts and
to authorize the authority to impose a fee for reviewing proposals for
private involvement in a transportation project.
(b) Requires an authority to have up-to-date procedures for participation
in negotiations on transportation projects.
(c) Provides that an authority has exclusive judgment to determine the
terms of an agreement.
(d) Provides that a proposal and related information submitted for
private involvement in a transportation project, and all documents and
information created by the authority or its agents during the authority's
consideration of a proposal for private involvement in a transportation
project, are excepted from disclosure, inspection, or copying under
Chapter 552, Government Code, and are not subject to discovery, subpoena,
or other means of legal compulsion for release, until the authority has
entered into an agreement or until it has determined not to develop a
proposed project through an agreement with a private entity.
(e) Authorizes an authority to agree to acquire the work product of an
unsuccessful proposer for the development of a project through an
exclusive development agreement or other form of private involvement in a
transportation project if the payment for such work product does not
exceed its value to the authority.
Sec. 370.312. PARTICIPATION ON CERTAIN OTHER BOARDS, COMMISSIONS, OR
PUBLIC BODIES. (a) Authorizes an authority to participate in and
designate board members to serve as representatives on boards,
commissions, or public bodies, the purposes of which are to promote the
development of joint toll facilities in this state, between this state and
other states of the United States, or between this state and the United
Mexican States or states of the United Mexican States.
(b) Authorizes a fee or expense associated with authority participation
under this section to be reimbursed from money in the authority's
feasibility study fund.
Sec. 370.313. COMBINATION OF ENGINEERING, DESIGN, AND CONSTRUCTION
SERVICES. Authorizes an authority to procure a combination of
engineering, design, and construction services in a single procurement for
a transportation project provided that any contract awarded must be the
one that results in the best value to the authority.
Sec. 370.314. 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.
Sec. 370.315. TRANS-TEXAS CORRIDOR PROJECTS. Requires the authority, in
the event that an authority is requested by TTC to participate in the
development of a transportation project that has been designated as part
of the Trans-Texas Corridor in addition to all powers granted in this
chapter, to all powers of the department related to the development of
Trans-Texas Corridor projects.
[Reserves Sections 370.316-370.330 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 the board to submit a request to TTC for approval to
dissolve.
(c) Authorizes TTC to approve a request to dissolve only if certain
criteria exists.
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 a TTC rule or an
agreement between TxDOT and the authority.
(b) Prohibits TTC from requiring dissolution unless certain conditions
exist.
SECTION 2. Repealer: Section 361.003 (Regional Mobility Authority),
Transportation Code.
SECTION 3. (a) Effective date: September 1, 2003.
(b) Provides that this Act 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 Act.