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By:  Krusee, et al. (Senate Sponsor - Ogden)                      H.B. No. 3588
	(In the Senate - Received from the House May 12, 2003; 
May 13, 2003, read first time and referred to Committee on 
Infrastructure Development and Security; May 24, 2003, reported 
adversely, with favorable Committee Substitute by the following 
vote:  Yeas 5, Nays 0; May 24, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 3588                                   By:  Ogden

A BILL TO BE ENTITLED
AN ACT
relating to the construction, acquisition, financing, maintenance, management, operation, ownership, and control of transportation facilities and the progress, improvement, policing, and safety of transportation in the state; imposing criminal penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TRANS-TEXAS CORRIDOR
SECTION 1.01. Subtitle B, Title 6, Transportation Code, is amended by adding Chapter 227 to read as follows:
CHAPTER 227. TRANS-TEXAS CORRIDOR
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 227.001. DEFINITIONS. In this chapter: (1) "Bond" has the meaning assigned by Title 9, Government Code. (2) "Construction" includes extension, expansion, and improvement. (3) "Credit agreement" has the meaning assigned by Title 9, Government Code. (4) "Facility" means: (A) a state highway; (B) a turnpike; (C) a freight or passenger railroad, including a commuter railroad, intercity railroad, and high-speed railroad; (D) a public utility facility; or (E) any structure that is reasonably necessary for the effective operation of a method of transportation, including an intermodal transfer or staging area, weigh station, inspection station, rest area, service station, restaurant, train or bus station, warehouse, freight interchange, switching yard, maintenance yard, and pipeline pumping station. (5) "Fee" includes any charge, toll, rent, lease payment, user fee, franchise fee, percentage fee, license fee, fare, tariff, or other consideration received in return for the use of: (A) property that is part of the Trans-Texas Corridor; (B) a facility on the Trans-Texas Corridor; or (C) a service that is offered in connection with the Trans-Texas Corridor. (6) "Operation" includes maintenance and repair. (7) "Public utility facility" means: (A) a water, wastewater, natural gas, or petroleum pipeline or facility; (B) an electric transmission or distribution facility; or (C) telecommunications infrastructure, including fiber optic cable, conduit, and wireless communications facilities. (8) "Trans-Texas Corridor" means the statewide system of facilities designated by the commission under this chapter. (9) "Turnpike" has the meaning assigned to turnpike project under Section 361.001. Sec. 227.002. RULES. The commission may adopt rules and the department may implement procedures and forms as necessary or convenient to implement and administer this chapter. Sec. 227.003. APPLICABILITY. (a) 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) All laws governing the financing, design, construction, maintenance, or operation of a turnpike by the department apply to the financing, design, construction, maintenance, or operation of a turnpike under this chapter unless in conflict with this chapter. (c) 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 the commission 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.
[Sections 227.004-227.010 reserved for expansion]
SUBCHAPTER B. ESTABLISHMENT
Sec. 227.011. DESIGNATION. The commission shall designate facilities for the Trans-Texas Corridor. Sec. 227.012. ROUTE SELECTION. The commission shall consider the following criteria when selecting a route for a segment of the Trans-Texas Corridor: (1) current and projected traffic patterns; (2) the safety of motorists; (3) potential risks to persons from spills or accidents of any kind; (4) environmental effects, including the effect on air quality; (5) current and projected economic development; (6) the current and projected need for additional transportation options; and (7) system connectivity. Sec. 227.013. PUBLIC PARTICIPATION. Before designating a route for a segment of the Trans-Texas Corridor, the department shall hold at least one public hearing in each county through which the segment may pass. Sec. 227.014. ESTABLISHMENT OF DISCRETE SYSTEMS. (a) If the commission 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, it may create a system composed of those facilities. The commission may create more than one system and may combine two or more systems into one system. The commission may finance, construct, and operate an additional facility as an expansion of a system if the commission 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. A system may only include facilities located wholly or partly within the territory of: (1) a metropolitan planning organization; or (2) two adjacent department districts. (b) The revenue of a system must be accounted for separately and may not be commingled with the revenue of a facility that is not a part of the system. Sec. 227.015. LOCATION OF FACILITIES. Notwithstanding any other law, including Chapter 181, Utilities Code, Chapter 402, Local Government Code, and Section 49.220, Water Code, the department may: (1) specify the location of any facility on the Trans-Texas Corridor; and (2) direct the time and manner of construction or operation of any facility on the Trans-Texas Corridor.
[Sections 227.016-227.020 reserved for expansion]
SUBCHAPTER C. DEVELOPMENT AND OPERATION
Sec. 227.021. AUTHORITY OF DEPARTMENT. (a) The department may: (1) construct or operate any facility as part of the Trans-Texas Corridor; or (2) authorize a governmental or private entity to construct or operate a facility that is part of the Trans-Texas Corridor. (b) 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) Subject to Section 227.029, the department may grant or deny access to the Trans-Texas Corridor. The department may not discriminate unreasonably among users or potential users of a facility. (d) The department may not directly provide telecommunications services to the public. Sec. 227.022. PARTICIPATION BY OTHER ENTITIES. (a) A toll or non-toll highway on the Trans-Texas Corridor that is constructed or operated by another entity shall be part of the state highway system. 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) If the department authorizes another governmental entity to construct or operate a facility on the Trans-Texas Corridor, that entity has each power of the department under this chapter with respect to that facility, including the right to collect fees, except that: (1) any property acquired by the entity shall be held in the name of the state; and (2) the entity may not file a declaration of taking and obtain early possession of real property. (c) If the department 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 the department would be liable if it were constructing or operating the facility. Sec. 227.023. PARTICIPATION BY PRIVATE ENTITIES. (a) To the maximum extent practical and economical, the department shall encourage the participation of private entities in the planning, design, construction, and operation of facilities. (b) The department shall contract with a private entity to operate a railroad using rail facilities owned by the department and may not use department employees to operate a railroad. The department may maintain a rail facility directly or through a private entity. (c) To the extent and in the manner that the department may enter into comprehensive development agreements under Chapter 361 with regard to turnpikes, the department may enter into comprehensive development agreements under this chapter with regard to facilities on the Trans-Texas Corridor. 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. Claims arising under an comprehensive development agreement are subject to Section 201.112. Sec. 227.024. HIGHWAYS. A highway, including a turnpike, on the Trans-Texas Corridor is a part of the state highway system. Sec. 227.025. VEHICLE SIZE AND WEIGHT LIMITS. (a) The commission may 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) 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) The department may 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) The department may 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) The department may 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) The department shall conduct or approve each environmental evaluation or study required for an activity associated with the Trans-Texas Corridor. (b) The commission may 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) The department may 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) The department may 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) If authorized by the applicable regulatory authority, the department may 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) The department may construct a grade separation at an intersection of a Trans-Texas Corridor facility with another facility and may change the line or grade of a facility to accommodate the facility to the design of a grade separation. The department shall pay the cost of a grade separation and any damage incurred in changing a line or grade of a facility. (b) If the department finds it necessary to change the location of a portion of a facility, it shall reconstruct the facility at the location the department determines to be most favorable. The reconstructed facility must be of substantially the same type and in as good condition as the original facility. The department shall determine and pay the cost of the reconstruction and any damage incurred in changing the location of a facility. (c) 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. The department may remove unauthorized personal property, including a vehicle, from the Trans-Texas Corridor without notice and at the owner's expense. Removed property may be stored until claimed by the owner. 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. The department 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. The department may dedicate one or more lanes of a highway on the Trans-Texas Corridor to the exclusive use of designated classes of vehicles.
[Sections 227.032-227.040 reserved for expansion]
SUBCHAPTER D. RIGHT-OF-WAY ACQUISITION
Sec. 227.041. POWERS AND PROCEDURES. (a) Except as otherwise provided by this subchapter, the commission has the same powers and duties relating to the condemnation and acquisition of real property for a facility of the Trans-Texas Corridor that the commission and the department have relating to the condemnation or purchase of real property under Subchapter D, Chapter 361, and Section 361.233 for a turnpike project. The commission may purchase an option to purchase property that the commission 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. Property may be purchased along alternative potential routes for the Trans-Texas Corridor even if only one of those potential routes will be selected as the final route. (b) 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. Primary purposes include: (1) providing right-of-way or a location for a facility; (2) providing land for mitigation of adverse environmental effects; (3) providing buffer zones for scenic or safety purposes; (4) allowing for possible future expansion of any facility; and (5) generating revenue, directly or indirectly, for use in constructing or operating the Trans-Texas Corridor in ways that directly benefit users of the Trans-Texas Corridor. (c) 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. Sections 203.056, 203.057, and 203.058 apply to an acquisition by the department from a state agency. Compensation to a state agency under those sections shall be reasonable and may 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) As an alternative to paying for an interest in real property or a real property right with a single fixed payment, the department may, with the owner's consent, pay the owner by means of a corridor participation payment. (b) 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) In this section, "corridor participation payment" means an intangible legal right to receive a percentage of one or more identified fees related to a segment of the Trans-Texas Corridor. Sec. 227.043. PURCHASE AND LEASEBACK. The department may 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. To ensure the safety and convenience of the public, the department shall, when entering any real property, water, or premises on which is located a public utility facility: (1) comply with applicable industry standard safety codes and practices; and (2) 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. If the department authorizes another governmental entity to construct or operate a segment of or a facility on the Trans-Texas Corridor, that entity has all the powers and duties of the department under this subchapter, except that the entity: (1) may only construct or operate a facility that is located in the geographic area within which that entity is authorized to operate; and (2) may not file a declaration of taking and obtain early possession of real property. Sec. 227.046. COST OF RELOCATING PUBLIC UTILITY FACILITY. (a) A telecommunications utility or a telecommunications utility holding a certificate of convenience and necessity, certificate of authority, or service provider certificate of authority shall recover from the department its reasonable costs to relocate a public utility facility to accommodate the development or construction of the Trans-Texas Corridor. (b) 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) If a public utility facility is located on the Trans-Texas Corridor, the department shall grant the owner reasonable access to operate and maintain the utility facility in accordance with industry standard safety codes and practices. (d) Relocation of facilities pursuant to this section is subject to the department's reasonable regulations pertaining to public health, safety, and welfare.
[Sections 227.047-227.060 reserved for expansion]
SUBCHAPTER E. FINANCING
Sec. 227.061. PERMISSIBLE SOURCES OF FUNDING. Subject to Section 227.062, the department may use any available source of funding in acquiring property for, constructing, and operating the Trans-Texas Corridor, including: (1) an appropriation from the state highway fund for construction or maintenance of highways; (2) a fee; (3) proceeds from a bond secured by fees; (4) proceeds from an obligation secured by the Texas Mobility Fund; (5) a donation, in kind or in cash; (6) a private investment; (7) money transferred from the state infrastructure bank; (8) a contribution from or contractual obligation of a governmental entity; and (9) a loan, grant, or reimbursement from the federal government, subject to Section 227.062. Sec. 227.062. LIMITATIONS ON DEPARTMENT FINANCIAL PARTICIPATION. (a) Each fiscal year, the total amount disbursed by the department out of the state highway fund for the following 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: (1) acquisition of right of way; (2) initial construction of toll and nontoll highways; and (3) grading and bed preparation for non-highway facilities. (b) The limitation under Subsection (a) does not apply to: (1) money spent for: (A) feasibility studies, environmental studies, and preliminary engineering conducted before the initial construction of a facility; or (B) operation and maintenance of a facility; (2) 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; (3) revenue attributable to a facility deposited to the credit of the state highway fund; (4) loans deposited to the credit of the state highway fund; or (5) contributions from a public or private entity that are deposited to the credit of the state highway fund. (c) Each fiscal year, the total amount disbursed by the department out of state and federal funds shall not exceed $25 million for the construction or purchase of non-highway facilities on the Trans-Texas Corridor. 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. This subsection also does not apply to activities that are subject to the limitation in subsection (a). (d) The commission may not disburse money out of the state highway fund for the initial construction of a facility of the Trans-Texas Corridor unless the commission 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. 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) The commission may not disburse 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 the department's unified transportation program or a transportation corridor identified in the statewide transportation plan. (f) The commission may not authorize 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) The commission and the department have the same powers and duties relating to the financing of a facility or a system established under Section 227.014 as the commission and the department have under Subchapter E, Chapter 361, relating to the financing of a turnpike project. (b) The powers held by the commission and the department 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) For purposes of this section, a reference in Subchapter E, Chapter 361 to: (1) a turnpike project means a facility or system; and (2) revenue includes a fee established under this chapter. Sec. 227.064. LOANS AND OTHER FUNDING. The department may 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. Money borrowed under this section may be evidenced by the issuance of bonds.
[Sections 227.065-227.080 reserved for expansion]
SUBCHAPTER F. REVENUE
Sec. 227.081. FEES. (a) 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), the department may 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) The commission may establish fees to be imposed by the department under this chapter. 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. Subject to approval by a body having jurisdiction and authority to establish a tariff, the commission may establish joint fees and divisions of fees. (c) A fee may exceed the department's costs, but the commission may not establish a fee that is prohibitive or that discriminates unreasonably among users or potential users of a facility. (d) In establishing a fee or the amount of a fee under this section, the commission shall consider: (1) the acquisition cost of the property being used; (2) if applicable, the value of the property being transported or of the service being offered; (3) any cost to the department or to the public occasioned by the use, including environmental effects; (4) comparable fees set by the competitive marketplace; and (5) the desirable effects of full use of the Trans-Texas Corridor on the state's economy and its residents. (e) 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, the department may not require 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) The department may not require 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) The department may lease property on the Trans-Texas Corridor to any public or private entity. A lease may be for a term not longer than 50 years. (b) The department may grant a franchise to use or operate a facility on the Trans-Texas Corridor. A franchise under this section may be granted for a term not longer than 50 years. (c) The department may grant an exclusive or nonexclusive license to access or use any portion of the Trans-Texas Corridor for any purpose. A license granted under this section may be for a definite or indefinite term. The department may not grant an exclusive license to access or use a highway on the Trans-Texas Corridor. (d) Property may be leased or a franchise or license granted for any purpose, including use as a facility and use for unrelated commercial, industrial, or agricultural purposes. (e) In return for a lease, franchise, or license, the department may accept anything of value as consideration, including: (1) a cash payment; (2) installment payments; (3) one or more payments based on percentages of use or throughput; and (4) an interest in real or personal property, or an intangible legal right. Sec. 227.083. DISPOSITION OF FEES. To the extent that it is not dedicated to another purpose by the constitution, by statute, or by contract, revenue received by the department under this chapter shall be deposited to the credit of the state highway fund and may be used for any purpose authorized by this chapter. Subchapter D, Chapter 316, Government Code, and Section 403.095, Government Code, do not apply to revenue received under this chapter. SECTION 1.02. Subchapter H, Chapter 545, Transportation Code, is amended by adding Section 545.3531 to read as follows: Sec. 545.3531. AUTHORITY OF TEXAS TRANSPORTATION COMMISSION TO ESTABLISH SPEED LIMITS ON TRANS-TEXAS CORRIDOR. (a) Notwithstanding Section 545.352, the Texas Transportation Commission, by order recorded in its minutes and except as provided by Subsection (d), may 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) In determining whether a prima facie speed limit is reasonable and safe, the commission shall conduct an engineering and traffic investigation and shall 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) A prima facie speed limit that is declared by the commission under this section is effective when the department erects signs giving notice of the new limit. A new limit that is enacted under this section is effective at all times or at other times as determined. (d) The commission may not: (1) modify the rules established by Section 545.351(b); or (2) establish a speed limit of more than 85 miles per hour. (e) The commission, in conducting the engineering and traffic investigation specified by Subsection (b), shall follow the "Procedures for Establishing Speed Zones" as adopted by the commission. SECTION 1.03. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2003.
ARTICLE 2. REGIONAL MOBILITY AUTHORITIES
SECTION 2.01. Subtitle G, Title 6, Transportation Code, is amended by adding Chapter 370 to read as follows:
CHAPTER 370. REGIONAL MOBILITY AUTHORITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 370.001. SHORT TITLE. This chapter may be cited as the Regional Mobility Authority Act. Sec. 370.002. DEFINITIONS. In this chapter: (1) "Authority" means a regional mobility authority organized under this chapter or under Section 361.003, as that section existed before September 1, 2003. (2) "Board" means the board of directors of an authority. (3) "Bond" includes a bond, certificate, note, or other obligation of an authority authorized by this chapter, another statute, or the Texas Constitution. (4) "Bond proceeding" includes a bond resolution and a bond indenture authorized by the bond resolution, a credit agreement, loan agreement, or other agreement entered into in connection with the bond or the payments to be made under the agreement, and any other agreement between an authority and another person providing security for the payment of a bond. (5) "Bond resolution" means an order or resolution of a board authorizing the issuance of a bond. (6) "Bondholder" means the owner of a bond and includes a trustee acting on behalf of an owner of a bond under the terms of a bond indenture. (7) "Governmental entity" means a political subdivision of the state, including a municipality or a county, a political subdivision of a county, a group of adjoining counties, a district organized or operating under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, the department, a rail district, a transit authority, a nonprofit corporation, including a transportation corporation, that is created under Chapter 431, or any other public entity or instrumentality. (8) "Highway" means a road, highway, farm-to-market road, or street under the supervision of the state or a political subdivision of this state. (9) "Public utility facility" means: (A) a water, wastewater, natural gas, or petroleum pipeline or facility; (B) an electric transmission or distribution facility; or (C) telecommunications infrastructure, including fiber optic cable, conduit, and wireless communications facilities. (10) "Revenue" means fares, fees, rents, tolls, and other money received by an authority from the ownership or operation of a transportation project. (11) "Surplus revenue" means revenue that exceeds: (A) an authority's debt service requirements for a transportation project, including the redemption or purchase price of bonds subject to redemption or purchase as provided in the applicable bond proceedings; (B) coverage requirements of a bond indenture for a transportation project; (C) costs of operation and maintenance for a transportation project; (D) cost of repair, expansion, or improvement of a transportation project; (E) funds allocated for feasibility studies; and (F) necessary reserves as determined by the authority. (12) "System" means a transportation project or a combination of transportation projects designated as a system by the board under Section 370.034. (13) "Transportation project" means: (A) a turnpike project; (B) a system; (C) a roadway with a functional classification greater than a local road or rural minor collector; (D) a ferry; (E) a pedestrian or bicycle facility; (F) an air quality improvement initiative; and (G) if applicable, projects and programs listed in the most recently approved state implementation plan for the area covered by the authority, including an early action compact. (14) "Turnpike project" means a highway of any number of lanes, with or without grade separations, owned or operated by an authority under this chapter and any improvement, extension, or expansion to that highway, including: (A) an improvement to relieve traffic congestion or promote safety; (B) a bridge, tunnel, overpass, underpass, interchange, service road, ramp, entrance plaza, approach, or tollhouse; (C) an administration, storage, or other building the authority considers necessary for the operation of a turnpike project; (D) a parking area or structure, rest stop, park, and other improvement or amenity the authority considers necessary, useful, or beneficial for the operation of a turnpike project; and (E) a property right, easement, or interest the authority acquires to construct or operate the turnpike project. Sec. 370.003. CONSTRUCTION COSTS DEFINED. (a) The cost of acquisition, construction, improvement, extension, or expansion of a transportation project under this chapter includes the cost of: (1) the actual acquisition, construction, improvement, extension, or expansion of the transportation project; (2) the acquisition of real property, rights-of-way, property rights, easements, and other interests in real property; (3) machinery and equipment; (4) interest payable before, during, and for not more than three years after acquisition, construction, improvement, extension, or expansion as provided in the bond proceedings; (5) traffic estimates, revenue estimates, engineering and legal services, plans, specifications, surveys, appraisals, construction cost estimates, and other expenses necessary or incidental to determining the feasibility of the acquisition, construction, improvement, extension, or expansion; (6) necessary or incidental administrative, legal, and other expenses; (7) compliance with laws, regulations, and administrative rulings, including any costs associated with necessary environmental mitigation measures; (8) financing; and (9) expenses related to the initial operation of the transportation project. (b) Costs attributable to a transportation project and incurred before the issuance of bonds to finance the transportation project may be reimbursed from the proceeds of sale of the bonds.
[Sections 370.005-370.030 reserved for expansion]
SUBCHAPTER B. CREATION AND POWERS OF REGIONAL MOBILITY AUTHORITIES
Sec. 370.031. CREATION OF A REGIONAL MOBILITY AUTHORITY. (a) At the request of one or more counties, the commission by order may authorize the creation of a regional mobility authority for the purposes of constructing, maintaining, and operating transportation projects in a region of this state. An authority is governed in accordance with Subchapter F. (b) An authority may not be created without the approval of the commission under Subsection (a). Sec. 370.0315. ADDITION AND WITHDRAWAL OF COUNTIES. (a) One or more counties may petition the commission for approval to become part of an existing authority. The commission may approve the petition only if: (1) the board has agreed to the addition; and (2) the commission finds that the affected political subdivisions in the county or counties will be adequately represented on the board. (b) One or more counties may petition the commission for approval to withdraw from an authority. The commission may approve the petition only if: (1) the authority has no bonded indebtedness; or (2) the authority has debt other than bonded indebtedness, but the board has agreed to the withdrawal. (c) A county may not become part of an authority or withdraw from an authority without the approval of the commission. Sec. 370.032. NATURE OF REGIONAL MOBILITY AUTHORITY. (a) An authority is a body politic and corporate and a political subdivision of this state. (b) An authority is a governmental unit as that term is defined in Section 101.001, Civil Practice and Remedies Code. (c) 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: (1) 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 (2) an essential governmental function of the state. (d) The operations of an authority are governmental, not proprietary, functions. Sec. 370.033. GENERAL POWERS. (a) An authority, through its board, may: (1) adopt rules for the regulation of its affairs and the conduct of its business; (2) adopt an official seal; (3) study, evaluate, design, finance, acquire, construct, maintain, repair, and operate transportation projects, individually or as one or more systems, provided that a transportation project that is subject to Subpart C, 23 C.F.R. Part 450, is: (A) included in the plan approved by the applicable metropolitan planning organization; and (B) consistent with the statewide transportation program and the statewide transportation improvement plan; (4) acquire, hold, and dispose of property in the exercise of its powers and the performance of its duties under this chapter; (5) enter into contracts or operating agreements with a similar authority, another governmental entity, or an agency of the United States; (6) enter into contracts or agreements necessary or incidental to its powers and duties under this chapter; (7) cooperate and work directly with property owners and governmental entities and officials to support an activity required to promote or develop a transportation project; (8) employ and set the compensation and benefits of administrators, consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers, full-time and part-time employees, agents, consultants, and other persons as the authority considers necessary or useful, except that the compensation and benefits of the authority's chief executive officer may not exceed the compensation and benefits of the department's executive director unless higher compensation and benefits are approved by the commission; (9) notwithstanding Sections 221.003 and 222.031 and subject to Subsection (e), apply for, directly or indirectly receive and spend loans, gifts, grants, and other contributions for any purpose of this chapter, including the construction of a transportation project, and receive and spend contributions of money, property, labor, or other things of value; (10) adopt and enforce rules not inconsistent with this chapter for the use of any transportation project, including tolls, fares, or other user fees, speed and weight limits, and traffic and other public safety rules, provided that an authority must consider the same factors that the commission must consider in altering a prima facie speed limit, except that an order of the commission may supercede a speed limit established by an authority; (11) enter into leases with a public or private party governing the party's use of all or any portion of a transportation project; (12) borrow money from or enter into a loan agreement or other arrangement with the state infrastructure bank; and (13) do all things necessary or appropriate to carry out the powers and duties expressly granted or imposed by this chapter. (b) 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. The department may 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) An authority may sue and be sued and plead and be impleaded in its own name. (d) An authority shall adopt written procedures governing its procurement of goods and services that are consistent with general laws applicable to the authority. (e) An authority may not apply for federal highway funds without the approval of the department. Sec. 370.034. ESTABLISHMENT OF TRANSPORTATION SYSTEMS. (a) If an authority 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, it may create a system made up of those transportation projects. An authority may create more than one system and may combine two or more systems into one system. An authority may 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) The revenue of a system shall be accounted for separately and may not be 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) The commission by order may transfer a segment of the state highway system, whether tolled or not, to an authority if: (1) the commission determines that the proposed transfer is an integral part of the region's overall plan to improve mobility in the region; (2) the authority agrees to assume all liability and responsibility for the maintenance and operation of the segment of the highway after its transfer; and (3) the proposed transfer is approved by the commissioners court of each county in which the segment of highway is located. (b) The commission may only make a transfer under this section if the commission 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. Tolls may not be collected by an authority from a transferred segment of highway except to finance the expansion, extension, operation, and maintenance of that highway. (c) An authority shall reimburse the commission for the cost of a transferred segment of highway unless the commission determines that the transfer will result in a substantial net benefit to the state, the department, and the traveling public that equals or exceeds that cost. (d) In computing the cost of the segment of highway, the commission shall: (1) include the total amount spent by the department for the original construction of the highway, 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 segment and all necessary appurtenant facilities; and (2) consider the anticipated future costs of expanding, improving, maintaining, operating, or extending the segment to be incurred by the authority and not by the department if the segment is transferred. (e) The commission may, at the time a segment of highway is transferred, remove the segment from the state highway system. After a transfer, the commission has no liability, responsibility, or duty for the maintenance or operation of the segment of highway. (f) Before transferring a segment of highway that is part of the state highway system under this section, the commission shall conduct a public hearing at which interested persons shall be allowed to speak on the proposed transfer. Notice of the hearing must 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) The commission shall adopt rules to implement this section. The rules shall include criteria and guidelines for the approval of a transfer. (h) An authority shall adopt rules providing criteria and guidelines for approval of the transfer under this section. (i) The commission may not transfer the Queen Isabella Causeway in Cameron County to an authority under this section. Sec. 370.036. TRANSFER OF BONDED TURNPIKE PROJECT TO DEPARTMENT. (a) An authority may transfer to the department a turnpike project of the authority that has outstanding bonded indebtedness if the commission: (1) agrees to the transfer; and (2) agrees to assume the outstanding bonded indebtedness. (b) The commission may assume the outstanding bonded indebtedness only if the assumption: (1) is not prohibited under the terms of an existing trust agreement or indenture securing bonds or other obligations issued by the commission for another project; (2) does not prevent the commission from complying with covenants of the commission under an existing trust agreement or indenture; and (3) does not cause a rating agency maintaining a rating on outstanding obligations of the commission to lower the existing rating. (c) If the commission agrees to the transfer under Subsection (a), the authority shall convey the turnpike project and any real property acquired to construct or operate the turnpike project to the department. (d) At the time of a conveyance under this section, the commission shall designate the turnpike project as part of the state highway system. 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) The commission by order may transfer a ferry operated under Section 342.001 to an authority if: (1) the commission determines that the proposed transfer is an integral part of the region's overall plan to improve mobility in the region; and (2) the authority: (A) agrees to the transfer; and (B) agrees to assume all liability and responsibility for the maintenance and operation of the ferry on its transfer. (b) An authority shall reimburse the commission for the cost of a transferred ferry unless the commission determines that the transfer will result in a substantial net benefit to the state, the department, and the traveling public that equals or exceeds that cost. (c) In computing the cost of the ferry, the commission shall: (1) include the total amount spent by the department 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 (2) consider the anticipated future costs of expanding, improving, maintaining, or operating the ferry to be incurred by the authority and not by the department if the ferry is transferred. (d) The commission shall, at the time the ferry is transferred, remove the ferry from the state highway system. After a transfer, the commission has no liability, responsibility, or duty for the maintenance or operation of the ferry. (e) Before transferring a ferry that is a part of the state highway system under this section, the commission shall conduct a public hearing at which interested persons shall be allowed to speak on the proposed transfer. Notice of the hearing must 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) The commission shall adopt rules to implement this section. The rules must include criteria and guidelines for the approval of a transfer of a ferry. (g) An authority shall adopt rules establishing criteria and guidelines for approval of the transfer of a ferry under this section. (h) An authority may temporarily charge a toll for use of a ferry transferred under this section to pay the costs necessary for an expansion of the ferry. An authority may permanently charge a toll for use of ferry facilities that are an expansion of the ferry transferred under this section. (i) The commission may not transfer 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) The commission shall adopt rules that: (1) govern the creation of an authority; (2) govern the commission's approval of a project under Section 370.182 and other commission approvals required by this chapter; (3) 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; (4) establish minimum audit and reporting requirements and standards; and (5) establish minimum ethical standards for authority directors and employees. (b) The commission shall appoint a rules advisory committee to advise the department and the commission on the development of the commission's initial rules required by this section. The committee must include one or more members representing an existing authority, if applicable. Chapter 2110, Government Code, does not apply to the committee. This subsection expires on the date the commission adopts initial rules under this section.
[Sections 370.039-370.070 reserved for expansion]
SUBCHAPTER C. FEASIBILITY OF REGIONAL TRANSPORTATION
PROJECTS
Sec. 370.071. EXPENDITURES FOR FEASIBILITY STUDIES. (a) An authority may 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: (1) using legally available revenue derived from an existing transportation project; (2) borrowing money and issuing bonds or entering into a loan agreement payable out of legally available revenue anticipated to be derived from the operation of an existing transportation project; or (3) pledging to the payment of the bonds or a loan agreement legally available revenue anticipated to be derived from the operation of transportation projects or revenue legally available to the authority from another source. (b) Money spent under this section for a proposed transportation project must 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) 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) An authority may maintain a feasibility study fund. 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) An authority may 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) Money in the feasibility study fund may be used only to pay the expenses of studying the cost and feasibility and any other expenses relating to: (1) the preparation and issuance of bonds for the acquisition and construction of a proposed transportation project; (2) the financing of the improvement, extension, or expansion of an existing transportation project; and (3) private participation, as authorized by law, in the financing of a proposed transportation project, the refinancing of an existing transportation project or system, or the improvement, extension, or expansion of a transportation project. (d) Money spent under Subsection (c) for a proposed transportation project must 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) For a purpose described by Subsection (c), an authority may 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) 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 may pay all or part of the expenses of studying the cost and feasibility and any other expenses relating to: (1) the preparation and issuance of bonds for the acquisition or construction of a proposed transportation project by an authority; (2) the improvement, extension, or expansion of an existing transportation project of the authority; or (3) the use of private participation under applicable law in connection with the acquisition, construction, improvement, expansion, extension, maintenance, repair, or operation of a transportation project by an authority. (b) 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.
[Sections 370.074-370.110 reserved for expansion]
SUBCHAPTER D. TRANSPORTATION PROJECT FINANCING
Sec. 370.111. FINANCING OF PROJECTS AND SYSTEMS. (a) 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) The powers held by an authority include the powers to: (1) by bond resolution, 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; (2) impose a toll, fee, fare, or other charge for the use of a transportation project or system; and (3) obtain from another source the revenue necessary to pay all or part of the principal and interest on bonds issued under this chapter. (c) For purposes of this section, a reference in Subchapter D, Chapter 366 to: (1) a turnpike project means a transportation project; (2) an authority or board means an authority and board described in this chapter; and (3) revenue includes a fee, fare, or other usage charge established under this chapter.
[Sections 370.112-370.160 reserved for expansion]
SUBCHAPTER E. ACQUISITION, CONSTRUCTION, AND OPERATION OF TRANSPORTATION PROJECTS
Sec. 370.161. JURISDICTION. An authority may 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) An authority may 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 the commission, a political subdivision of this state, or any other governmental entity. (b) Except as provided by this chapter, an authority has the same powers and may use the same procedures as the commission in acquiring property. Sec. 370.163. ACQUISITION OF PROPERTY. (a) Except as otherwise provided by this subchapter, the governing body of a regional mobility authority has the same powers and duties that the commission and the department have under Subchapter D, Chapter 361, and Section 361.233 relating to the condemnation or purchase of real property, except that the governing body of the regional mobility authority may 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 regional mobility authority, or if the real property is not located within a county that is part of the regional mobility authority, the governing body of the regional mobility authority may 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. Notwithstanding Section 361.135(a), the concurrence of the commission is not a prerequisite to the exercise of the power of condemnation by the governing body of the regional mobility authority. Notwithstanding Section 361.132(d), an authority may not acquire 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. An authority may not file a declaration of taking and obtain early possession of real property. (b) An authority's acquisition of any property of the commission under this or another section of this chapter or an authority's relocation, rerouting, disruption, or alteration of a facility of the commission 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) 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) As an alternative to paying for an interest in real property or a real property right with a single fixed payment, the authority may, with the owner's consent, pay the owner by means of a participation payment. (b) 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) In this section, "participation payment" means an intangible legal right to receive a percentage of one or more identified fees related to a segment constructed by the authority. Sec. 370.165. SEVERANCE OF REAL PROPERTY. (a) If a transportation project of an authority severs a property owner's real property, the authority shall pay: (1) the value of the property acquired; and (2) 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) At its option, an authority may 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. An authority may sell and dispose of severed real property that it determines is not necessary or useful to the authority. Severed property must be appraised before being offered for sale by the authority. Sec. 370.166. ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY. (a) An authority may 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) This state or a local government having charge of public real property may consent to the use of the property for a transportation project. (c) Except as provided by Section 370.035, this state or a local government may 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. A conveyance, grant, or lease under this section may 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) 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. A lease may provide for directional drilling from the adjoining property or tidewater area. (e) 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. 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) Except as provided by Section 370.035, an authority may not pay compensation for public real property, parkways, streets, highways, alleys, or reservations it takes, other than: (1) a park, playground, or designated environmental preserve; (2) 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 (3) as provided by this chapter. (b) Public property damaged in the exercise of a power granted by this chapter shall be restored or repaired and placed in its original condition as nearly as practicable. (c) 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. 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. 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. This subsection does not apply to property owned by a school district. Sec. 370.168. PUBLIC UTILITY FACILITIES. (a) An authority may 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) 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, the owner or operator of the facility shall 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) The authority, as a part of the cost of the transportation project or the cost of operating the transportation project, shall pay the cost of the relocation, removal, or grade separation of a public utility facility under Subsection (a), including the cost of: (1) installation of the facility in a new location; (2) damages incurred by the utility to its facilities and services; (3) interests in real property and other rights acquired to accomplish the relocation or removal; and (4) maintenance of grade separation structures. (d) The authority may 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: (1) a material action or inaction of the authority; or (2) conditions beyond the reasonable control of the owner or operator of the facility, including: (A) an act of God; or (B) a labor shortage or strike. (e) 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 may do so at the expense of the owner or operator. If the authority relocates or removes a facility under this subsection the authority shall relocate or remove the facility in a safe manner that: (1) complies with applicable law; and (2) attempts to minimize the disruption of utility service. (f) The owner or operator of a public utility facility relocated or removed under Subsection (e) shall 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) Not later than 60 days before relocating or removing a public utility facility under Subsection (e), an authority shall provide to the utility: (1) written notice of the department's determination that the facility must be removed; (2) a final plan for relocation of the facility; and (3) reasonable terms and conditions for the relocation or removal of the facility. (h) 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. An authority has the powers and duties delegated to the commissioners court by that subchapter. (i) 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. An authority has the power and duties delegated to the commissioners court by that subchapter. Sec. 370.169. REVENUE. (a) An authority may 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) Tolls, fees, fares, or other charges must 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: (1) provides revenue sufficient to pay: (A) the cost of maintaining, repairing, and operating the transportation project; and (B) the principal of and interest on any bonds issued for the transportation project as those bonds become due and payable; and (2) creates reserves for a purpose listed under Subdivision (1). (c) 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) 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, shall 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: (1) interest on the bonds as it becomes due; (2) principal of the bonds as it becomes due; (3) necessary charges of paying agents for paying principal and interest; (4) the redemption price or the purchase price of bonds retired by call or purchase as provided in the bond proceedings; and (5) any amounts due under credit agreements. (e) Use and disposition of money deposited to the credit of the sinking fund is subject to the bond proceedings. (f) To the extent permitted under the applicable bond proceedings, revenue from one transportation project of an authority may be used to pay the cost of another transportation project of the authority. (g) An authority may not use revenue from a transportation project in a manner not authorized by this chapter. Except as provided by this chapter, revenue derived from a transportation project may not be 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) An authority may not 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) Each year, if an authority determines that it has surplus revenue from transportation projects, it shall 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) Consistent with other law and commission rule, an authority may spend surplus revenue on other transportation projects by: (1) constructing a transportation project located within the counties of the authority; (2) assisting in the financing of a toll or toll-free transportation project of another governmental entity; or (3) with the approval of the commission, constructing a toll or toll-free transportation project and, on completion of the project, transferring the project to another governmental entity if: (A) the other governmental entity authorizes the authority to construct the project and agrees to assume all liability and responsibility for the maintenance and operation of the project on its transfer; and (B) the project is constructed in compliance with all laws applicable to the governmental entity. Sec. 370.172. EXEMPTION FROM TAXATION OR ASSESSMENT. (a) An authority is exempt from taxation of or assessments on: (1) a transportation project or system; (2) property the authority acquires or uses under this chapter for a transportation project or system; or (3) income from property described by Subdivision (1) or (2). (b) 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) An authority may 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. The action may not affect a segment of the state highway system without the department's consent. The authority shall 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) If feasible, an authority shall provide access to properties previously abutting a county road or other public road that is taken for a transportation project and shall pay abutting property owners the expenses or any resulting damages for a denial of access to the road. (c) If an authority changes the location of a segment of a county road as part of its development of a transportation project, the authority shall, 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. 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) 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 shall pay the proper toll. 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. An offense under this subsection is a misdemeanor punishable by a fine not to exceed $250. (b) The authority has the same powers and duties relating to collecting unpaid tolls and administrative fees as the commission and the department have under Subchapter G, Chapter 361, including the power or duty to: (1) impose and collect an administrative fee to recover the cost of collecting the unpaid toll; (2) send a written notice of nonpayment to a person that is liable for payment under Subchapter G, Chapter 361, and collect the unpaid toll and administrative fee from that person; and (3) use automated enforcement technology to enforce toll violations, including license plate identification photography and video surveillance. (c) 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. Each failure to pay a toll or administrative fee under this section is a separate offense. An offense under this subsection is a misdemeanor punishable by a fine not to exceed $250. (d) Proof of an offense may be established under the same conditions as under Subchapter G, Chapter 361. Defenses and exceptions to liability available to a person under Subchapter G, Chapter 361 are available to person subject to this section. (e) The court in which a person is convicted of an offense under this section shall 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. An authority by order may: (1) 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; and (2) prohibit entrance to each project at any place not designated. Sec. 370.176. PROMOTION OF TRANSPORTATION PROJECT. An authority may 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) An authority shall operate a transportation project with employees of the authority or by using services contracted under Subsection (b) or (c). (b) An authority may 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) An authority may contract with any state or local government for the services of peace officers of that agency. Sec. 370.178. AUDIT. (a) An authority shall have a certified public accountant audit the authority's books and accounts at least annually. The cost of the audit may be treated as part of the cost of construction or operation of a transportation project. (b) The commission may initiate an independent audit of the authority or any of its activities at any time the commission considers appropriate. An audit under this subsection shall be conducted at the expense of the department. Sec. 370.179. DISADVANTAGED BUSINESSES. (a) Consistent with general law, an authority shall: (1) set goals for the award of contracts to disadvantaged businesses and attempt to meet the goals; (2) attempt to identify disadvantaged businesses that provide or have the potential to provide supplies, materials, equipment, or services to the authority; and (3) 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) This section does not exempt an authority from competitive bidding requirements provided by other law. Sec. 370.180. PROCUREMENT. An authority shall adopt rules governing the award of contracts for goods and services. An authority may 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. Procurement of professional services is governed by Chapter 2254, Government Code. Sec. 370.181. CONTRACTS WITH GOVERNMENTAL ENTITIES. (a) An authority may not construct, maintain, or operate 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 shall be undertaken. (b) An authority may not receive or be 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 shall be received by or paid to the authority. Sec. 370.182. PROJECT APPROVAL. (a) An authority may not begin construction of a transportation project without the approval of the commission. (b) The commission by rule shall establish procedures and criteria for an approval under this section. The rules must require the commission to consider a request for project approval not later than the 60th day after the date the department receives all information reasonably necessary to review the request. (c) This section expires September 1, 2011. Sec. 370.183. ENVIRONMENTAL REVIEW OF AUTHORITY PROJECTS. (a) An authority shall 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. The rules must: (1) specify the types of projects for which a public hearing is required; (2) establish procedures for public comment on the environmental review, including a procedure for requesting a public hearing on an environmental review for which a public hearing is not required; and (3) require: (A) an evaluation of any direct or indirect environmental effect of the project; (B) an analysis of project alternatives; and (C) a written report that briefly explains the authority's review of the project and that specifies any mitigation measures on environmental harm on which the project is conditioned. (b) An environmental review of a project must be conducted before the authority may approve the location or alignment of the project. (c) The authority shall consider the results of the environmental review in executing its duties. (d) The authority shall 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) If requested by an authority, the department may agree to assume all or part of the duty to maintain or operate a turnpike project or ferry of the authority. (b) The authority shall reimburse the department for necessary costs of maintaining or operating the turnpike project or ferry as agreed by the department and the authority. (c) Money received by the department under Subsection (b) shall 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) If the department 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) An agreement under this section is not a joint enterprise for purposes of liability. Sec. 370.185. PROPERTY OF RAPID TRANSIT AUTHORITIES. An authority may not condemn or purchase 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.
[Sections 370.186-370.250 reserved for expansion]
SUBCHAPTER F. GOVERNANCE
Sec. 370.251. BOARD OF DIRECTORS. (a) 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. The commissioners court of each county that initially forms the authority shall appoint at least two directors to the board. Additional directors may 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. The commissioners court of a county that is subsequently added to the authority shall appoint at least one additional director to the board. The governor shall appoint one director to the board who shall serve as the presiding officer of the board and shall appoint an additional director to the board if an appointment is necessary to maintain an odd number of directors on the board. (b) Unless the commissioners courts of the counties of the authority unanimously agree otherwise, the commissioners court of each county of an authority that contains an operating transportation project of the authority shall appoint one additional director. (c) 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) One director appointed to the initial board of an authority by the commissioners court of a county shall be designated by the court to serve a term of two years and one director designated to serve a term of four years. If one or more directors are subsequently appointed to the board, the directors other than the subsequent appointees shall determine the length of the appointees' terms, to comply with Subsection (c). (e) If a vacancy occurs on the board, the appointing authority shall promptly appoint a successor to serve for the unexpired portion of the term. (f) All appointments to the board shall be made without regard to race, color, disability, sex, religion, age, or national origin. (g) The following individuals are ineligible to serve as a director: (1) an elected official; (2) a person who is not a resident of a county within the geographic area of the authority; (3) a department employee; (4) an employee of a governmental entity any part of which is located within the geographic boundaries of the authority; and (5) a person owning an interest in real property that will be acquired for an authority project, if it is known at the time of the person's proposed appointment that the property will be acquired for the authority project. (h) Each director has equal status and may vote. (i) The vote of a majority attending a board meeting is necessary for any action taken by the board. If a vacancy exists on a board, the majority of directors serving on the board is a quorum. (j) The commission may refuse to authorize the creation of an authority if the commission 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. 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, the turnpike authority or the county may submit to the commission a proposed structure for the board and a method of appointment to the board: (1) at the creation of the authority if the county is a county that initially forms an authority; (2) when a new county is added to the authority; and (3) when the county is initially added to the authority. Sec. 370.253. PROHIBITED CONDUCT FOR DIRECTORS AND EMPLOYEES. (a) A director or employee of an authority may not: (1) accept or solicit any gift, favor, or service that: (A) might reasonably influence the director or employee in the discharge of an official duty; or (B) the director or employee knows or should know is being offered with the intent to influence the director's or employee's official conduct; (2) accept other employment or engage in a business or professional activity that the director or employee might reasonably expect would require or induce the director or employee to disclose confidential information acquired by reason of the official position; (3) accept other employment or compensation that could reasonably be expected to impair the director's or employee's independence of judgment in the performance of the director's or employee's official duties; (4) make personal investments that could reasonably be expected to create a substantial conflict between the director's or employee's private interest and the interest of the authority; (5) intentionally or knowingly solicit, accept, or agree to accept any benefit for having exercised the director's or employee's official powers or performed the director's or employee's official duties in favor of another; or (6) have a personal interest in an agreement executed by the authority. (b) 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: (1) is employed by or participates in the management of a business entity or other organization, other than a governmental entity, that is regulated by or receives funds from the authority or the department; (2) directly or indirectly owns or controls more than a 10 percent interest in a business or other organization that is regulated by or receives funds from the authority or the department; (3) uses or receives a substantial amount of tangible goods, services, or funds from the authority or the department; or (4) is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the authority or the department. (c) 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) In this section, "Texas trade association" means a nonprofit, cooperative, and voluntarily joined association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interests. (e) A person is not ineligible to serve as a director or chief administrative officer of an authority if the person has received funds from the department for acquisition of highway right-of-way unless the acquisition was for a project of the authority. Sec. 370.254. REMOVAL OF DIRECTOR. (a) It is a ground for removal of a director from the board if the director: (1) did not have at the time of appointment the qualifications required by Section 370.251; (2) at the time of appointment or at any time during the director's term, is ineligible under Section 370.251 or 370.253 to serve as a director; (3) cannot discharge the director's duties for a substantial part of the term for which the director is appointed because of illness or disability; or (4) is absent from more than half of the regularly scheduled board meetings that the director is eligible to attend during a calendar year. (b) 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) If the chief administrative officer of the authority has knowledge that a potential ground for removal exists, that person shall notify the presiding officer of the board of the ground. The presiding officer shall then notify the person that appointed the director that a potential ground for removal exists. Sec. 370.255. COMPENSATION OF DIRECTOR. Each director is entitled to reimbursement for the director's actual expenses necessarily incurred in the performance of the director's duties. A director is not entitled to any additional compensation for the director's services. Sec. 370.256. EVIDENCE OF AUTHORITY ACTIONS. 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. An authority shall: (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) An authority shall 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) This section applies to a current or former director or officer of the authority. Sec. 370.259. PURCHASE OF LIABILITY INSURANCE. (a) An authority shall 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) Insurance coverage under this section must be provided by the purchase of a policy of liability insurance from a reliable insurance company authorized to do business in this state. The form of the policy must be approved by the commissioner of insurance. (c) 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) 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. A director, agent, or employee of an authority may not: (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) An authority shall make a strategic plan for its operations. A majority of the commissioners courts of the counties of the authority shall by concurrent resolution determine the types of information required to be included in the strategic plan. Each even-numbered year, an authority shall issue a plan covering the succeeding five fiscal years, beginning with the next odd-numbered fiscal year. (b) Not later than March 31 of each year, an authority shall 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. At the invitation of a commissioners court of a county of the authority, representatives of the board and the administrative head of an authority shall appear before the commissioners court to present the report and receive questions and comments. (c) The authority shall 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.
[Sections 370.262-370.300 reserved for expansion]
SUBCHAPTER G. PARTICIPATION IN FINANCING, CONSTRUCTION, AND OPERATION OF TRANSPORTATION PROJECTS
Sec. 370.301. DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS. (a) The department may 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. The agreement may not be inconsistent with the rights of the bondholders or persons operating the turnpike project under a lease or other contract. (b) The department may use its engineering and other personnel, including consulting engineers and traffic engineers, to conduct feasibility studies under Subsection (a). (c) An obligation or expense incurred by the commission or department under this section is a part of the cost of the turnpike project for which the obligation or expense was incurred. The commission or department may require money contributed by the commission or department under this section to be repaid from tolls or other revenue of the turnpike project on which the money was spent. Money repaid as required by the commission or department shall be deposited to the credit of the fund from which the contribution was made. Money deposited as required by this section is exempt from the application of Section 403.095, Government Code. (d) The commission or department may use federal money for any purpose described by this chapter. (e) The commission may grant or loan department money to an authority for the acquisition of land for or the construction, maintenance, or operation of a turnpike project. The commission may require the authority to repay money provided under this section from toll revenue or other sources on terms established by the commission. (f) Money repaid as required by the commission shall be deposited to the credit of the fund from which the money was provided. 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) A governmental entity may, 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, 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. The entity may impose and collect taxes to pay the interest on the bonds and to provide a sinking fund for the redemption of the bonds. (b) In addition to the powers provided by Subsection (a), a governmental entity may, to 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. An agreement may 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) 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, a governmental entity may: (1) pledge revenue from any available source, including annual appropriations; (2) impose and collect taxes; or (3) pledge revenue and impose and collect taxes. (d) The term of an agreement under this section may not exceed 40 years. (e) An election required to authorize action under this subchapter must be held in conformity with Chapter 1251, Government Code, or other law applicable to the governmental entity. This subsection does not expand or contract a governmental entity's authority to guarantee debt without an election. (f) The governing body of any governmental entity issuing bonds, notes, or other obligations or entering into agreements under this section may 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. An authority may enter into any agreement necessary or convenient to achieve the purposes of this subchapter. Sec. 370.304. HIGHWAY IMPROVEMENT CONTRACTS. An authority shall award all highway improvement contracts through a competitive bidding process to the low bidder. Sec. 370.305. OWNERSHIP OF TRANSPORTATION PROJECTS. (a) 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) An authority may 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. At the termination of the agreement, the transportation project, including the facilities, must 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. Notwithstanding Chapter 2253, Government Code, an authority shall 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.
[Sections 370.307-370.330 reserved for expansion]
SUBCHAPTER H. DISSOLUTION OF AUTHORITY
Sec. 370.331. VOLUNTARY DISSOLUTION. (a) An authority may not be dissolved unless the dissolution is approved by the commission. (b) A board may submit a request to the commission for approval to dissolve. (c) The commission may approve a request to dissolve only if: (1) all debts, obligations, and liabilities of the authority have been paid and discharged or adequate provision has been made for the payment of all debts, obligations, and liabilities; (2) there are no suits pending against the authority, or adequate provision has been made for the satisfaction of any judgment, order, or decree that may be entered against it in any pending suit; and (3) the authority has commitments from other governmental entities to assume jurisdiction of all authority transportation facilities. Sec. 370.332. INVOLUNTARY DISSOLUTION. (a) The commission by order may require an authority to dissolve if the commission determines that the authority has not substantially complied with the requirements of a commission rule or an agreement between the department and the authority. (b) The commission may not 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. Section 361.003, Transportation Code, is repealed. SECTION 2.03. (a) This article takes effect immediately if this Act receives a vote of two-thirds of all members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2003. (b) 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. The heading to Chapter 202, Transportation Code, is amended to read as follows:
CHAPTER 202. CONTROL OF TRANSPORTATION [HIGHWAY] ASSETS
SECTION 3.02. Chapter 202, Transportation Code, is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. ADVANCE ACQUISITION OF PROPERTY
Sec. 202.111. DEFINITION. In this subchapter, "advance acquisition" means an acquisition by the commission under Section 202.112. Sec. 202.112. ADVANCE ACQUISITIONS. (a) The commission may 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) An advance acquisition shall be made by the commission using the procedures authorized under Subchapter D of Chapter 203 or other law authorizing the commission or the department to acquire real property or an interest in real property for a transportation facility. If the commission acquires real property or an interest in real property under Subchapter D of Chapter 203 or other law, the commission may make an advance acquisition in the manner provided by this subchapter. (c) The commission may not make an advance acquisition by condemnation. Sec. 202.113. DISPOSAL OF SURPLUS PROPERTY. The commission shall 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. Title 5, Transportation Code, is amended by adding Subtitle A to read as follows:
SUBTITLE A. TEXAS DEPARTMENT OF TRANSPORTATION
CHAPTER 91. RAIL FACILITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 91.001. DEFINITIONS. In this chapter: (1) "Commission" means the Texas Transportation Commission. (2) "Construction" includes design, planning, and preliminary studies. (3) "Department" means the Texas Department of Transportation. (4) "Maintenance facility" includes: (A) a workshop; (B) a service, storage, security, or personnel facility; and (C) equipment for a facility described by Paragraph (A) or (B). (5) "Operation" includes policing. (6) "Rail facility" means real or personal property, or any interest in that property, that is determined to be necessary or convenient for the provision of a freight or passenger rail facility or system, including commuter rail, intercity rail, and high-speed rail. The term includes all property or interests necessary or convenient for the acquiring, providing, using, or equipping of a rail facility or system, including rights-of-way, trackwork, train controls, stations, and maintenance facilities. (7) "Revenue" includes a charge, toll, rent, payment, user fee, franchise fee, license fee, fare, tariff, and other consideration: (A) received in return for the use of: (i) a rail facility; or (ii) a service offered in connection with the operation of a rail facility; or (B) resulting from a sale or conveyance of a rail facility. (8) "Right-of-way" means a strip of land of a length and width determined by the commission to be required, necessary, or convenient for the provision of a rail facility or system and the space over, under, or on the land where trackwork is to be located. (9) "Station" means a passenger or freight service building, terminal, station, ticketing facility, waiting area, platform, concession, elevator, escalator, facility for handicapped access, access road, parking facility for passengers, baggage handling facility, or local maintenance facility, together with any interest in real property necessary or convenient for those items. (10) "Surplus revenue" means: (A) revenue that exceeds the department's debt service requirements, coverage requirements of any bond indenture, costs of operation and maintenance, and cost of expansion or improvement of a rail facility or system; and (B) reserves and reserve funds maintained by the department under this chapter. (11) "Trackwork" means track, track beds, track bed preparation, ties, rail fasteners, slabs, rails, emergency crossovers, setout tracks, storage tracks, drains, fences, ballast, switches, bridges, and structures. (12) "Train controls" includes: (A) signals, lights, and other signaling; (B) interlocking equipment; (C) speed monitoring equipment; (D) braking systems; (E) central traffic control facilities; and (F) communication systems. Sec. 91.002. PUBLIC PURPOSE. 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 the commission and the department. Sec. 91.003. RULES. The commission may adopt rules and the department may adopt procedures and prescribe forms necessary to implement this chapter. Sec. 91.004. GENERAL POWERS. The department may: (1) plan and make policies for the location, construction, maintenance, and operation of a rail facility or system in this state; (2) acquire, finance, construct, maintain, and subject to Section 91.005, operate a passenger or freight rail facility, individually or as one or more systems; (3) for the purpose of acquiring or financing a rail facility or system, accept a grant or loan from a: (A) department or agency of the United States; (B) department, agency, or political subdivision of this state; or (C) public or private person; (4) contract with a public or private person to finance, construct, maintain, or operate a rail facility under this chapter; or (5) perform any act necessary to the full exercise of the department's powers under this chapter. Sec. 91.005. RELIANCE ON PRIVATE ENTITIES. The department shall contract with a private entity to operate a railroad using facilities owned by the department and may not use department employees to operate a railroad. The department may maintain a railroad facility directly or through a private entity. The department may not own rolling stock. Sec. 91.006. COOPERATION OF STATE AGENCIES AND POLITICAL SUBDIVISIONS. Within available resources, an agency or political subdivision of this state shall cooperate with and assist the department in exercising its powers and duties under this chapter. Sec. 91.007. NOTIFICATION OF INTENT TO ABANDON OR DISCONTINUE SERVICE. On receipt of notice of intent to abandon or discontinue rail service served under 49 C.F.R. Section 1152.20, as amended, the department shall 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) the department 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.
[Sections 91.008-91.030 reserved for expansion]
SUBCHAPTER B. ACQUISITION AND DEVELOPMENT OF RAIL FACILITIES
Sec. 91.031. ESTABLISHMENT OF RAIL SYSTEMS. (a) If the commission determines 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, it may create a system composed of those facilities. (b) The commission may create more than one system and may combine two or more systems into one system. (c) The department may finance, acquire, construct, and operate additional rail facilities as additions to and expansions of the system if the commission 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) The revenue of a system shall be accounted for separately and may not be commingled with the revenue of a rail facility that is not part of the system. Sec. 91.032. ACQUISITION OF RAIL FACILITIES. (a) The commission may authorize the department to acquire an existing rail facility at a location and on a route the commission determines to be feasible and viable for rail transportation service. (b) The department may enter into an agreement with the owner of an operating railroad for the acquisition or use of a rail facility on terms the department considers to be in the best interest of the state. Sec. 91.033. ENVIRONMENTAL REVIEW. (a) The department shall conduct or approve all environmental evaluations or studies required for the construction, maintenance, or operation of a rail facility. (b) The commission may 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) The department may 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) The department may 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) If authorized by the applicable regulatory authority, the department may 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) The department, for the purpose of acquiring, constructing, maintaining, and operating freight or passenger rail facilities and systems in this state, may: (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 the department, 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) The department shall 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. Subject to Section 91.071(b), the department may 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. 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 the commission or its designee has signed a written agreement with the transportation authority specifying the terms and conditions under which the transportation authority may participate.
[Sections 91.038-91.050 reserved for expansion]
SUBCHAPTER C. CONTRACTS
Sec. 91.051. AWARDING OF CONTRACTS. Unless otherwise provided by this subchapter, a contract made by the department for the construction, maintenance, or operation of a rail facility must be let by a competitive bidding procedure in which the contract is awarded to the lowest responsible bidder that complies with the department's criteria. Sec. 91.052. AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE RAIL FACILITIES. The department may enter into an agreement with a public entity, including a political subdivision of this state, to permit the entity, independently or jointly with the department, to acquire, construct, maintain, or operate a rail facility or system. Sec. 91.053. SMALL AND DISADVANTAGED BUSINESSES. (a) The department shall: (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 the department; and (3) give small and disadvantaged businesses full access to the department'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) This section does not exempt the department from competitive bidding requirements imposed by other law.
[Sections 91.054-91.070 reserved for expansion]
SUBCHAPTER D. FINANCING OF RAIL FACILITIES
Sec. 91.071. PERMISSIBLE SOURCES OF FUNDING. (a) The department may 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) Each fiscal year, the total amount disbursed by the department out of federal and state funds shall not exceed $12.5 million. 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) The commission and the department have the same powers and duties relating to the financing of a rail facility or a system established under Section 91.031 as the commission and the department have under Subchapter E, Chapter 361, relating to the financing of a turnpike project. (b) The powers held by the commission and the department 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) 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. The department may 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) The department may 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) The department shall 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 the department received under this chapter, sufficient to enable the department to comply with the requirements of Section 91.072. (c) The department may contract with a person for the use of all or part of a rail facility or system or may 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) The department shall not unreasonably discriminate in deciding who may use any part of a rail facility or system. (e) All revenue received by the department 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.
[Sections 91.075-91.090 reserved for expansion]
SUBCHAPTER E. ACQUISITION AND DISPOSAL OF PROPERTY
Sec. 91.091. ACQUISITION OF REAL PROPERTY. (a) The commission may authorize the department 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 the department's acquisition, construction, maintenance, or operation of rail facilities. (b) The commission may authorize the department to acquire property by any method, including purchase and condemnation. Property may be purchased under any terms determined by the department to be in the best interest of the state. (c) Property may 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. Property necessary or convenient for the department'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) To acquire property necessary or convenient for a rail facility, the department may enter any premises or real property, including a body of water, to make a survey, geotechnical evaluation, sounding, or examination. (b) An entry under Subsection (a) is not: (1) a trespass; or (2) an entry under a pending condemnation procedure. (c) The department shall 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. The governing body of a municipality, county, political subdivision, or public agency may, without advertisement, convey the title to or a right in property determined to be necessary or convenient by the department under this subchapter. Sec. 91.095. DISPOSAL OF PROPERTY. The department may sell, convey, or otherwise dispose of any rights or other interests in real property acquired under this subchapter that the commission determines are no longer needed for department purposes.
[Sections 91.096-91.100 reserved for expansion]
SUBCHAPTER F. OPERATION AND USE OF RAIL FACILITIES
Sec. 91.101. CONTRACTS FOR RAIL TRANSPORTATION SERVICES. The department may contract with a county or other political subdivision of the state for the department to provide rail transportation services on terms agreed to by the parties. Sec. 91.102. CONTRACTS WITH RAIL OPERATORS. (a) The department may lease all or part of a rail facility or system to a rail operator. The department may contract with a rail operator for the use or operation of all or part of a rail facility or system. (b) The department shall encourage to the maximum extent practical the participation of private enterprise in the operation of rail facilities and systems. (c) A lease agreement shall provide for the department's monitoring of a rail operator's service and performance. (d) The department may enter into an agreement with a rail operator to sell all or any part of state-owned rail facilities on terms the department considers to be in the best interest of the state. Sec. 91.103. JOINT USE OF RAIL FACILITIES. The department may: (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. The department may determine routings for rail facilities acquired, constructed, or operated by the department under this chapter. Sec. 91.105. PLACEMENT OF UTILITY FACILITIES, LINES, AND EQUIPMENT. (a) 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. A utility shall notify the department of the utility's intention to exercise authority over right-of-way that is part of state-owned rail facilities. (b) On receipt of notice under Subsection (a), the department may designate the location in the right-of-way where the utility may place its facilities, lines, or equipment. (c) The department may 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. The department shall 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. 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) A utility may 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. Section 2, Chapter 1244, Acts of the 77th Legislature, Regular Session, 2001 (Article 6550c-2, Vernon's Texas Civil Statutes), is repealed. SECTION 4.03. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2003.
ARTICLE 5. ISSUANCE OF BONDS AND OTHER PUBLIC SECURITIES
SECTION 5.01. Subchapter A, Chapter 222, Transportation Code, is amended by adding Section 222.003 to read as follows: Sec. 222.003. ISSUANCE OF BONDS SECURED BY STATE HIGHWAY FUND. (a) The commission may 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) The aggregate principal amount of the bonds and other public securities that are issued may not exceed $10 billion. The commission may only issue bonds or other public securities in an aggregate principal amount of not more than $1 billion each year. (c) Proceeds from the sale of bonds and other public securities issued under this section shall be used to fund state highway improvement projects. Proceeds may be used only to provide: (1) funding for projects that: (A) allow the department to draw down additional federal-aid highway funds; (B) are eligible for expedited contracting under Subchapter C, Chapter 223; (C) facilitate, for the purpose of reducing unemployment or underemployment, the retention of businesses in this state or the ability to provide an incentive for new businesses to locate in this state; (D) reduce accidents or correct or improve hazardous locations on the state highway system; (E) are included in the Texas Highway Trunk System; or (2) short-term financing of turnpike project costs that are incurred before the project is open to traffic and begins generating revenue, if the commission determines that issuing short-term bonds will reduce total project costs. (d) In this section, "Texas Highway Trunk System" means a rural network of four-lane or better divided roadways that will serve as a principal connector of all Texas cities with over 20,000 population, as well as major ports and points of entry. (e) Of the aggregate principal amount of bonds and other public securities that may be issued under this section, the commission shall issue bonds or other public securities in an aggregate principal amount of $2 billion to fund projects eligible under Subsection (c)(4). The commission by rule shall prescribe criteria for selecting projects eligible for funding under this section. In establishing criteria for projects eligible under Subsection (c)(4), the commission shall consider accident data, traffic volume, pavement geometry, and other conditions that can create or exacerbate hazardous roadway conditions. (f) The proceeds of bonds and other public securities issued under this section may not be 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. 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. For purposes of this section, the "Trans-Texas Corridor" means the statewide system of multimodal facilities under the jurisdiction of the department that is designated by the commission, notwithstanding the name given to that corridor. (g) The commission may enter into credit agreements, as defined by Chapter 1371, Government Code, relating to the bonds and other public securities authorized by this section. The agreements may be secured by and payable from the same sources as the bonds and other public securities. (h) 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) The proceeds of bonds and other public securities issued under this section may be used to: (1) finance other funds relating to the public security, including debt service reserve and contingency; and (2) pay the cost or expense of the issuance of the public security. (j) Bonds and other public securities and credit agreements authorized by this section may not have 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 the commission 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) Bonds and other public securities issued under this section may be sold in such manner and subject to such terms and provisions as set forth in the order authorizing their issuance, and such bonds and other public securities must mature not later than 20 years after their dates of issuance, subject to any refundings or renewals. (l) The comptroller shall withdraw from the state highway fund and forward at the direction of the commission to another person the amounts as determined by the commission to permit timely payment of: (1) the principal of and interest on the bonds and other public securities that mature or become due; and (2) any cost related to the bonds and other public securities that become due, including payments under credit agreements. (m) The commission may not fund a project unless the commission makes a formal finding by minute order that the funding of the project will satisfy the requirements of Subsection (c). SECTION 5.02. 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. If that amendment is not approved by the voters, this article has no effect.
ARTICLE 6. PASS-THROUGH TOLLS
SECTION 6.01. Subchapter E, Chapter 222, Transportation Code, is amended by adding Section 222.104 to read as follows: Sec. 222.104. PASS-THROUGH TOLLS. (a) In this section, "pass-through toll" means a per vehicle fee or a per vehicle mile fee that is determined by the number of vehicles using a highway. (b) The department may 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) The department may 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 the department estimates it would have incurred if the highway had not been converted. (d) The department may use any available funds for the purpose of making a pass-through toll payment under this section. (e) The commission may adopt rules necessary to implement this section. Rules adopted under this subsection may establish criteria for: (1) determining the amount of pass-through tolls to be paid under this section; and (2) allocating the risk that traffic volume will be higher or lower than the parties to an agreement under this section anticipated in entering the agreement. SECTION 6.02. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2003.
ARTICLE 7. CONVERSION OF NONTOLL STATE HIGHWAY
SECTION 7.01. Subchapter A, Chapter 284, Transportation Code, is amended by adding Section 284.009 to read as follows: Sec. 284.009. CONVEYANCE OF STATE HIGHWAY TO COUNTY. (a) The commission may 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: (1) the proposed conveyance is approved by the commissioners court of each county within which the highway is located; (2) the commission determines that the proposed conveyance will improve overall mobility in the region or is the most feasible and economic means of accomplishing necessary improvements to the highway; (3) any funds paid by the department for the construction, maintenance, and operation of the conveyed highway are repaid to the department; and (4) the county agrees to assume all liability and responsibility for the maintenance and operation of the conveyed highway on its conveyance. (b) The commission may only make a conveyance under this section if the commission 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. Tolls may not be collected by an authority from a conveyed segment of highway except to finance the expansion, extension, operation, and maintenance of that highway segment. (c) A county that receives a nontoll state highway or a segment of a nontoll state highway under Subsection (a) may own, operate, and maintain the highway as a pooled project under Section 284.065. (d) The commission shall, at the time of a conveyance, remove the highway or segment of highway from the state highway system. After a conveyance, the department has no liability, responsibility, or duty for the maintenance or operation of the highway or segment. (e) The commission may 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, the department, and the traveling public that equal or exceed the amount of payment waived. (f) Before conveying a nontoll state highway or a segment of a nontoll state highway under this section, the commission shall conduct a public hearing to receive comments from interested persons concerning the proposed conveyance. Notice of the hearing shall 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) The commission shall adopt rules implementing this section, including criteria and guidelines for approval of a conveyance of a highway or segment. (h) Funds received by the department under this section: (1) shall be deposited to the credit of the state highway fund; and (2) are exempt from the application of Section 403.095, Government Code. SECTION 7.02. Section 362.0041, Transportation Code, is amended by amending Subsections (a), (c), and (d) and adding Subsections (e)-(g) to read as follows: (a) Except as provided in Subsections [Subsection] (d) and (g), [if] the commission may by order convert [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[, that segment may be converted by order of the commission to a turnpike project under Chapter 361]. (c) The commission shall adopt rules implementing this section, including [such rules to include] criteria and guidelines for the approval of a conversion of a highway. (d) The commission may not convert the Queen Isabella Causeway in Cameron County to a toll facility [turnpike project]. (e) Subchapter G, Chapter 361, applies to a highway converted to a toll facility under this section. (f) Toll revenue collected under this section: (1) shall be deposited in the state highway fund; (2) may be used by the department to finance the improvement, extension, expansion, or operation of the converted segment of highway and may not be collected except for those purposes; and (3) is exempt from the application of Section 403.095, Government Code. (g) The commission 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. Section 366.035, Transportation Code, is amended to read as follows: Sec. 366.035. CONVEYANCE [CONVERSION] OF STATE HIGHWAY [SYSTEM PROJECTS]. (a) The commission may 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 if: (1) the conveyance is approved by the commissioners court of each county within which the highway is located; (2) the commission determines that the proposed conveyance will improve overall mobility in the region or is the most feasible and economic means to accomplish necessary improvements to the highway; (3) any funds paid by the department for the construction, maintenance, and operation of the conveyed highway are repaid to the department; and (4) the authority agrees to assume all liability and responsibility for the maintenance and operation of the conveyed highway on its conveyance. (b) The commission may only make a conveyance under this section if the commission 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. Tolls may not be collected by an authority from a conveyed segment of highway except to finance the expansion, extension, operation, and maintenance of that highway segment. [Except as provided under Subsection (g), if the commission determines that the most feasible and economic means to accomplish necessary expansion, improvements, or extensions to the state highway system is the conversion to a turnpike project of a segment of the free state highway system, any segment located in a county of an authority or a county in which an authority operates a turnpike project or in any county adjacent to those counties may, on approval of the governor and the affected authority, be transferred by order of the commission to that authority.] An authority that receives the segment or [of] highway may 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) The commission may 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, the department, and the traveling public that equal or exceed the amount of payment waived. (d) [(b) An authority shall reimburse the commission for the cost of a transferred highway, unless the commission determines that the transfer will result in substantial net benefits to the state, the department, and the traveling public that exceed that cost. The cost includes the total amount expended by the department for the original construction of the highway, including all 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 highway and all necessary appurtenant facilities. Costs anticipated to be expended to expand, improve, or extend the highway shall be deducted from the costs to be reimbursed to the commission. [(c)] The commission shall, at the time of a conveyance [transfer], remove the segment or [of] highway from the state highway system. After a conveyance, [transfer] the commission has no liability, responsibility, or duty for the maintenance or operation of the segment or highway. (e) [(d)] Before conveying [transferring] a segment or [of the state] highway [system] under this section, the commission shall conduct a public hearing to receive comments from interested persons concerning the proposed conveyance [transfer]. Notice of the hearing must be published in the Texas Register, one or more newspapers of general circulation in the counties in which the segment or highway is located, and a newspaper, if any, published in the counties of the applicable authority. (f) [(e)] The commission shall adopt rules implementing this section. The rules shall include criteria and guidelines for the approval of a conveyance [transfer] of a highway. (g) [(f)] An authority shall adopt rules providing criteria and guidelines for approving the acceptance of a highway under this section. (h) [(g)] The commission may not transfer the Queen Isabella Causeway in Cameron County to an authority under this section. (i) Funds received by the department under this section: (1) shall be deposited to the credit of the state highway fund; and (2) 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. Article 45.051, Code of Criminal Procedure, is amended to read as follows: Art. 45.051. SUSPENSION OF SENTENCE AND DEFERRAL OF FINAL DISPOSITION. (a) 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, the judge [justice] may, at the judge's discretion, defer further proceedings without entering an adjudication of guilt and place the defendant on probation for a period not to exceed 180 days. (b) During the deferral period, the judge [justice] may, at the judge's discretion, require the defendant to: (1) post a bond in the amount of the fine assessed to secure payment of the fine; (2) pay restitution to the victim of the offense in an amount not to exceed the fine assessed; (3) submit to professional counseling; (4) submit to diagnostic testing for alcohol or a controlled substance or drug; (5) submit to a psychosocial assessment; (6) participate in an alcohol or drug abuse treatment or education program; (7) pay the costs of any diagnostic testing, psychosocial assessment, or participation in a treatment or education program either directly or through the court as court costs; [and] (8) complete a driving safety course approved under the Texas Driver and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas Civil Statutes) or another course as directed by the judge; (9) present to the court satisfactory evidence that the defendant has complied with each requirement imposed by the judge under this article; and (10) comply with any other reasonable condition. (c) On determining that [At the conclusion of the deferral period, if] the defendant [presents satisfactory evidence that he] has complied with the requirements imposed by the judge under this article, the judge [justice] shall dismiss the complaint, and it shall be clearly noted in the docket that the complaint is dismissed and that there is not a final conviction. [Otherwise, the justice may proceed with an adjudication of guilt. After an adjudication of guilt, the justice may reduce the fine assessed or may then impose the fine assessed, less any portion of the assessed fine that has been paid.] If the complaint is dismissed, a special expense not to exceed the amount of the fine assessed may be imposed. 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. (c-1) This subsection applies only to an offense involving the operation of a motor vehicle, other than an offense under Section 545.413, Transportation Code. At the conclusion of the deferral period, if the defendant presents satisfactory evidence that the defendant has complied with the requirements imposed, the justice shall proceed with an adjudication of guilt but may not impose the fine assessed or a reduced fine. (d) If by [at] the conclusion of the deferral period the defendant does not present satisfactory evidence that the defendant complied with the requirements imposed, the judge [justice] may impose the fine assessed or impose a lesser fine. The imposition of the fine or lesser fine constitutes a final conviction of the defendant. (e) Records relating to a complaint dismissed as provided by this article may be expunged under Article 55.01 [of this code]. If a complaint is dismissed under this article, there is not a final conviction and the complaint may not be used against the person for any purpose. (f) This article does not apply to an offense to which Section 542.404 or 729.004(b), Transportation Code, applies. SECTION 8.02. Article 45.0511, Code of Criminal Procedure, is amended to read as follows: Art. 45.0511. DRIVING SAFETY COURSE OR MOTORCYCLE OPERATOR COURSE DISMISSAL [DEFERRED DISPOSITION] PROCEDURES [APPLICABLE TO TRAFFIC OFFENSES]. (a) This article applies only to an alleged offense that: (1) is within the jurisdiction of a justice court or a municipal court; (2) involves [involving] the operation of a motor vehicle; and (3) is [other than a commercial motor vehicle, as] defined by: (A) Section 472.022 [522.003], Transportation Code; (B) Subtitle C, Title 7, Transportation Code; or (C) Section 729.001(a)(3), Transportation Code[, and supplements Article 45.051]. (b) The judge [During the deferral period under Article 45.051, the justice: [(1)] shall 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) [deferred disposition and] the defendant has not completed an approved driving safety course or motorcycle operator training course, as appropriate, within the [preceding] 12 months preceding the date of the offense; [and] (3) [(2) may require the defendant to successfully complete a driving safety course approved by the Texas Education Agency if the defendant has completed an approved driving safety course within the preceding 12 months. [(c) Subsection (b)(1) applies only if: [(1)] the defendant [person] enters a plea under Article 45.021 in person or in writing of no contest or guilty on or [and,] before the answer date on the notice to appear and: (A) presents in person or by counsel to the court a [an oral or written] request to take a course; or (B) sends to the court by certified mail, return receipt requested, postmarked on or before the answer date on the notice to appear, a written request to take a course; (4) [(2) the court enters judgment on the person's plea of no contest or guilty at the time the plea is made but defers imposition of the judgment for 180 days; [(3)] the defendant [person] has a valid Texas driver's license or permit; (5) [(4)] the defendant [person] 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) [(5)] the defendant [person] provides evidence of financial responsibility as required by Chapter 601, Transportation Code[; [(6) the defendant's driving record as maintained by the Texas Department of Public Safety shows 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; and [(7) the defendant files an affidavit with the court stating that the person is not taking a course under this section and has not completed a course that is not shown on the person's driving record within the 12 months preceding the date of the offense]. (c) The court shall 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: (1) a uniform certificate of completion of the driving safety course or a verification of completion of the motorcycle operator training course; (2) the defendant's driving record as maintained by the Department of Public Safety showing that the defendant had not completed an approved driving safety course or motorcycle operator training course, as applicable, within the 12 months preceding the date of the offense; and (3) an affidavit stating that the defendant was not taking a driving safety course or motorcycle operator training course, as applicable, under this article on the date the request to take the course was made and had not completed such a course that is not shown on the defendant's driving record within the 12 months preceding the date of the offense. (d) Notwithstanding Subsections (b)(2) and (3), [Subsection (c)(1), on a written motion submitted to the court] before the final disposition of the case, the court may grant a request to take a driving safety course or a motorcycle operator training course under this article. (e) A request to take a driving safety course made at or before the time and at the place at which a defendant [person] is required to appear in court is an appearance in compliance with the defendant's [person's] promise to appear. (f) In addition to court costs and fees authorized or imposed by a law of this state and applicable to the offense, the [The] court may: (1) require a defendant [person] requesting a [driving safety] 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[, including any other fee authorized by statute or municipal ordinance, to cover the cost of administering this article]. (g) A defendant [person] who requests but does not take a course is not entitled to a refund of the fee. (h) Fees collected by a municipal court shall be deposited in the municipal treasury. Fees collected by another court shall be deposited in the county treasury of the county in which the court is located. (i) If a defendant [person] requesting a [driving safety] course under this article fails to comply with Subsection (c) [furnish evidence of the successful completion of the course to the court], the court shall: (1) notify the defendant [person] 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 [person] 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) If the defendant [A person who] 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), the court shall enter an adjudication of guilt and impose sentence [commits a misdemeanor punishable as provided by Section 543.009, Transportation Code]. (k) On a defendant's [person's] showing of good cause for failure to furnish evidence to the court, the court may allow an extension of time during which the defendant [person] may present: (1) a uniform certificate of course completion as evidence that the defendant [person] 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) When a defendant [person] complies with Subsection (c) [(b) and a uniform certificate of course completion is accepted by the court], the court shall: (1) proceed with an adjudication of guilt, but may not impose the fine assessed or a reduced fine [remove the judgment and dismiss the charge]; (2) report the fact that the defendant [person] 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 [this] report whether the course was taken under [the procedure provided by] this article to provide information necessary to determine eligibility to take a subsequent course under Subsection (b). (m) If the defendant is charged with more than one offense, the defendant may complete a driving safety course in connection with only one of the charges [The court may dismiss only one charge for each completion of a course]. (n) [A charge that is dismissed under this article may not be part of a person's driving record or used for any purpose. [(o)] An insurer delivering or issuing for delivery a motor vehicle insurance policy in this state may not cancel or increase the premium charged an insured under the policy because the court proceeded with an adjudication of guilt under Subsection (l)(1) or because the insured completed a driving safety course or a motorcycle operator training course [or had a charge dismissed] under this article. (o) [(p)] The court shall advise a defendant [person] 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 [person'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. The right to complete a course does not apply to a defendant [person] charged with: (1) a violation of Section 545.066, [545.401, 545.421,] 550.022, or 550.023, Transportation Code;[,] or (2) an offense to which [serious traffic violation as defined by] Section 542.404 or 729.004(b) [522.003], Transportation Code, applies. (p) A notice to appear issued for an offense to which this article applies must 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. The notice required by this subsection must read substantially as follows: "You may be able to avoid certain negative consequences of this charge by successfully completing a driving safety course or a motorcycle operator training course. You will lose that right if, on or before your appearance date, you do not provide the court with notice of your request to take the course." (q) If the notice required by Subsection (p) is not provided to the defendant charged with the offense, the defendant may 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. [(q) Nothing in this article shall prevent a court from assessing a special expense for deferred disposition in the same manner as provided by Article 45.051. For a deferred disposition under Subsection (b)(1), the court may only collect a fee of not more than $10 in addition to any applicable court cost.] SECTION 8.03. Section 472.022(f), Transportation Code, is amended to read as follows: (f) Articles 45.051 and 45.0511 [Article 45.54], Code of Criminal Procedure, do [does] not apply to an offense under this section committed in a construction or maintenance work zone when workers are present. SECTION 8.04. The following laws are repealed: (1) Section 543.101, Transportation Code; and (2) Section 543.117, Transportation Code. SECTION 8.05. (a) This article takes effect September 1, 2003. (b) Articles 45.051 and 45.0511, Code of Criminal Procedure, as amended by this article, apply only to an offense committed on or after September 1, 2003. (c) An offense committed before September 1, 2003, is covered by the law in effect on the date the offense was committed, and the former law is continued in effect for that purpose.
ARTICLE 9. DRIVER'S LICENSES
SECTION 9.01. Section 521.292, Transportation Code, is amended by adding Subsection (c) to read as follows: (c) 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. Section 522.003(25), Transportation Code, is amended to read as follows: (25) "Serious traffic violation" means: (A) a conviction arising from the driving of a commercial motor vehicle, other than a parking, vehicle weight, or vehicle defect violation, for: (i) [(A)] excessive speeding, involving a single charge of driving 15 miles per hour or more above the posted speed limit; (ii) [(B)] reckless driving, as defined by state or local law; (iii) [(C)] a violation of a state or local law related to motor vehicle traffic control, including a law regulating the operation of vehicles on highways, arising in connection with a fatal accident; (iv) [(D)] improper or erratic traffic lane change; (v) [(E)] following the vehicle ahead too closely; or (vi) [(F) operating] a [commercial motor vehicle in] violation of Sections [Section] 522.011 or 522.042; or (B) a violation of Section 522.015. SECTION 10.02. Section 522.081, Transportation Code, is amended to read as follows: Sec. 522.081. DISQUALIFICATION. (a) This subsection applies [only] to a violation committed while operating any motor vehicle, including a commercial motor vehicle. A person who holds a commercial driver's license is disqualified from driving a commercial motor vehicle for: (1) 60 days if convicted of: (A) two serious traffic violations that occur within a three-year period; or (B) one violation of a law that regulates the operation of a motor vehicle at a railroad grade crossing; or (2) 120 days if convicted of: (A) three serious traffic violations arising from separate incidents occurring within a three-year period; or (B) two violations of a law that regulates the operation of a motor vehicle at a railroad grade crossing that occur within a three-year period[; or [(3) one year if convicted of three violations of a law that regulates the operation of a motor vehicle at a railroad grade crossing that occur within a three-year period]. (b) This subsection applies to a violation committed while operating any motor vehicle, including a commercial motor vehicle, except as provided by this subsection. A person who holds a commercial driver's license is disqualified from driving a commercial motor vehicle for one year: (1) if convicted of three violations of a law that regulates the operation of a motor vehicle at a railroad grade crossing that occur within a three-year period; (2) on first conviction of: (A) [(1)] driving a [commercial] motor vehicle under the influence of alcohol or a controlled substance, including a violation of Section 49.04 or 49.07, Penal Code; (B) [(2) driving a commercial motor vehicle while the person's alcohol concentration was 0.04 or more; [(3) intentionally] leaving the scene of an accident involving a [commercial] motor vehicle driven by the person; (C) [(4)] using a [commercial] motor vehicle in the commission of a felony, other than a felony described by Subsection (d)(2); (D) [(5) refusing to submit to a test to determine the person's alcohol concentration or the presence in the person's body of a controlled substance or drug while driving a commercial motor vehicle; [(6)] causing the death of another person through the negligent or criminal operation of a [commercial] motor vehicle; or (E) [(7)] driving a commercial motor vehicle while the person's commercial driver's license is revoked, suspended, or canceled, or while the person is disqualified from driving a commercial motor vehicle, for an action or conduct that occurred while operating a commercial motor vehicle; (3) for refusing to submit to a test under Chapter 724 to determine the person's alcohol concentration or the presence in the person's body of a controlled substance or drug while operating a motor vehicle in a public place; or (4) if an analysis of the person's blood, breath, or urine under Chapter 724 determines that the person: (A) had an alcohol concentration of 0.04 or more, or that a controlled substance or drug was present in the person's body, while operating a commercial motor vehicle in a public place; or (B) had an alcohol concentration of 0.08 or more while operating a motor vehicle, other than a commercial motor vehicle, in a public place. (c) A person who holds a commercial driver's license is disqualified from operating a commercial motor vehicle for three years if: (1) the person: (A) is convicted of an offense [If a violation] listed in Subsection (b)(2) and the vehicle being operated by the person was transporting a hazardous material required to be placarded; or (B) refuses to submit to a test under Chapter 724 to determine the person's alcohol concentration or the presence in the person's body of a controlled substance or drug while operating a motor vehicle in a public place and the vehicle being operated by the person was transporting a hazardous material required to be placarded; or (2) an analysis of the person's blood, breath, or urine under Chapter 724 determines that while transporting a hazardous material required to be placarded the person: (A) while operating a commercial motor vehicle in a public place had an alcohol concentration of 0.04 or more, or a controlled substance or drug present in the person's body; or (B) while operating a motor vehicle, other than a commercial motor vehicle, in a public place had an alcohol concentration of 0.08 or more [(b) occurred while the person was transporting a hazardous material required to be placarded, the person is disqualified for three years]. (d) A person is disqualified from driving a commercial motor vehicle for life: (1) if the person [: [(1)] is convicted [of] two or more times [violations] of an offense specified by Subsection (b)(2) [(b)], or a combination of those offenses, arising from two or more separate incidents; [or] (2) if the person uses a [commercial] motor vehicle in the commission of a felony involving: (A) the manufacture, distribution, or dispensing of a controlled substance; or (B) possession with intent to manufacture, distribute, or dispense a controlled substance; or (3) for any combination of two or more of the following, arising from two or more separate incidents: (A) a conviction of the person for an offense described by Subsection (b)(2); (B) a refusal by the person described by Subsection (b)(3); and (C) an analysis of the person's blood, breath, or urine described by Subsection (b)(4). (e) A person may not be issued a commercial driver's license and is disqualified 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. The period of prohibition under this subsection is equal to the appropriate period of disqualification required by Subsections (a)-(d). (f) In this section, "felony" means an offense under state or federal law that is punishable by death or imprisonment for a term of more than one year. SECTION 10.03. Section 522.087, Transportation Code, is amended to read as follows: Sec. 522.087. PROCEDURES APPLICABLE TO DISQUALIFICATION. (a) A person is automatically disqualified under Section 522.081(a)(1)(B), Section 522.081(b)(2) [522.081(b)(1), (3), (4), (6), or (7)], or Section 522.081(d)(2). An appeal may not be taken from the disqualification. (b) Disqualifying a person under Section 522.081(a), other than under Subdivision (1)(B) of that subsection, Section 522.081(b)(1), or Section 522.081(d)(1) or (3) is subject to the notice and hearing procedures of Sections 521.295-521.303. An appeal of the disqualification is subject to Section 521.308. SECTION 10.04. Section 543.202(b), Transportation Code, is amended to read as follows: (b) The record must be made on a form or by a data processing method acceptable to the department and must include: (1) the name, address, physical description, including race or ethnicity, date of birth, and driver's license number of the person charged; (2) the registration number of the vehicle involved; (3) whether the vehicle was a commercial motor vehicle as defined by Chapter 522 or was involved in transporting hazardous materials; (4) the person's social security number, if the person was operating a commercial motor vehicle or was the holder of a commercial driver's license or commercial driver learner's permit; (5) the date and nature of the offense, including whether the offense was a serious traffic violation as defined by Chapter 522; (6) whether a search of the vehicle was conducted and whether consent for the search was obtained; (7) 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; (8) the date of conviction; and (9) the amount of the fine or forfeiture. SECTION 10.05. Section 543.101, Transportation Code, is repealed. SECTION 10.06. (a) This article takes effect June 1, 2005. (b) Sections 522.081 and 522.087, Transportation Code, as amended by this article, apply only to conduct that is engaged in or to an offense that is committed on or after the effective date of this article. Conduct that is engaged in or an offense committed before the effective date of this article is governed by Sections 522.081 and 522.087, Transportation Code, as those sections existed immediately before the effective date of this article, and the former law is continued in effect for that purpose.
ARTICLE 11. MOTOR VEHICLE SALES TAX
SECTION 11.01. Section 152.002, Tax Code, is amended by adding Subsection (f) to read as follows: (f) 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. Section 152.041(a), Tax Code, is amended to read as follows: (a) The tax assessor-collector of the county in which an application for registration or for a Texas certificate of title is made shall collect taxes imposed by this chapter, subject to Section 152.0412, unless another person is required by this chapter to collect the taxes. SECTION 11.03. Subchapter C, Chapter 152, Tax Code, is amended by adding Section 152.0412 to read as follows: Sec. 152.0412. STANDARD PRESUMPTIVE VALUE; USE BY TAX ASSESSOR-COLLECTOR. (a) In this section, "standard presumptive value" means the average retail value of a motor vehicle as determined by the Texas Department of Transportation, based on a nationally recognized motor vehicle industry reporting service. (b) 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 shall compute the tax on the amount paid. (c) 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 shall compute the tax on the standard presumptive value unless the purchaser establishes the retail value of the vehicle as provided by Subsection (d). (d) A county tax assessor-collector shall compute the tax imposed by this chapter on the retail value of a motor vehicle if: (1) the retail value is shown on an appraisal certified by an adjuster licensed under Article 21.07-4, Insurance Code, or by a motor vehicle dealer operating under Subchapter B, Chapter 503, Transportation Code; (2) the appraisal is on a form prescribed by the comptroller for that purpose; and (3) the purchaser of the vehicle obtains the appraisal not later than the 20th day after the date of purchase. (e) On request, a motor vehicle dealer operating under Subchapter B, Chapter 503, Transportation Code, shall provide a certified appraisal of the retail value of a motor vehicle. The comptroller by rule shall establish a fee that a dealer may charge for providing the certified appraisal. The county tax assessor-collector shall retain a copy of a certified appraisal received under this section. (f) The Texas Department of Transportation shall maintain information on the standard presumptive values of motor vehicles as part of the department's registration and title system. The department shall update the information at least quarterly each calendar year. SECTION 11.04. Chapter 152, Tax Code, is amended by amending Section 152.121 and adding Section 152.123 to read as follows: Sec. 152.121. TAX SENT TO COMPTROLLER. (a) After crediting the amounts as provided by Section 152.123, a [The] county tax assessor-collector shall send [the] money collected from taxes and penalties imposed by this chapter to the comptroller as follows: (1) on the 10th day of each month if during the last preceding state fiscal year less than $2 million of the taxes and penalties imposed by this chapter was collected by the office of the county tax assessor-collector; (2) once each week if during the last preceding state fiscal year $2 million or more, but less than $10 million, of the taxes and penalties imposed by this chapter was collected by the office of the county tax assessor-collector; or (3) daily (as collected) if during the last preceding state fiscal year $10 million or more of the taxes and penalties imposed by this chapter was collected by the office of the county tax assessor-collector. (b) Taxes on metal dealer plates collected by the Texas Department of Transportation shall be deposited by the department in the state treasury in the same manner as are other taxes collected under this chapter[.] [(c) If the amount of net collections under Chapter 502, Transportation Code, is 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, the comptroller shall on request of the county tax assessor-collector authorize the county to retain a portion of the tax and penalties collected under this chapter to cover the deficiency]. Sec. 152.123. TAX RETAINED BY COUNTY. (a) The county tax assessor-collector shall calculate five percent of the tax and penalties collected by the county tax assessor-collector under this chapter. In addition, the county tax assessor-collector shall calculate each calendar year an amount equal to five percent of the tax and penalties that the comptroller: (1) collected under Section 152.047 in the preceding calendar year; and (2) determines are attributable to sales in the county. (b) The county shall retain the following percentage of the amounts calculated under subsection (a) during each of the following fiscal years: (1) in fiscal year 2005, 10 percent; (2) in fiscal year 2006, 20 percent; (3) in fiscal year 2007, 30 percent; (4) in fiscal year 2008, 40 percent; (5) in fiscal year 2009, 50 percent; (6) in fiscal year 2010, 60 percent; (7) in fiscal year 2011, 70 percent; (8) in fiscal year 2012, 80 percent; (9) in fiscal year 2013, 90 percent; (10) in fiscal year 2014 and succeeding years, 100 percent. (c) The county shall credit the amounts retained under Subsection (b) to the county 's general fund. SECTION 11.05. Section 502.102(b), Transportation Code, is amended to read as follows: (b) Each Monday, a county assessor-collector shall credit to the county road and bridge fund an amount equal to the net collections made during the preceding week until the amount so credited for the calendar year equals the total of: (1) $60,000; (2) $350 for each mile of county road maintained by the county, according to the most recent information available from the department, not to exceed 500 miles; and (3) the amount retained under Section 502.1025 [an amount equal to five percent of the tax and penalties collected by the assessor-collector under Chapter 152, Tax Code, in the preceding calendar year; and] [(4) an amount equal to five percent of the tax and penalties collected by the comptroller under Section 152.047, Tax Code, in the preceding calendar year]. SECTION 11.06. Chapter 502, Transportation Code, is amended by adding Section 502.1025 to read as follows: Sec. 502.1025. ADDITIONAL AMOUNTS RETAINED BY A COUNTY. (a) The county tax assessor-collector shall calculate five percent of the tax and penalties collected by the county tax assessor-collector under Chapter 152, Tax Code. In addition, the county tax assessor-collector shall calculate each calendar year an amount equal to five percent of the tax and penalties that the comptroller: (1) collected under Section 152.047, Tax Code, in the preceding calendar year; and (2) determines are attributable to sales in the county. (b) A county tax assessor-collector shall retain the following percentage of the amounts calculated under subsection (a) during each of the following fiscal years: (1) in fiscal year 2005, 90 percent; (2) in fiscal year 2006, 80 percent; (3) in fiscal year 2007, 70 percent; (4) in fiscal year 2008, 60 percent; (5) in fiscal year 2009, 50 percent; (6) in fiscal year 2010, 40 percent; (7) in fiscal year 2011, 30 percent; (8) in fiscal year 2012, 20 percent; (9) in fiscal year 2013, 10 percent; (10) in fiscal year 2014 and succeeding years, 0 percent. (c) The county shall credit the amounts retained under Subsection (b) to the county road and bridge fund. Money credited to the fund under this section may only be used for: (1) county road construction, maintenance, and repair; (2) bridge construction, maintenance, and repair; (3) the purchase of right-of-way for road or highway purposes; or (4) the relocation of utilities for road or highway purposes. SECTION 11.07. Section 502.108(e), Transportation Code, is repealed.
ARTICLE 12. MISCELLANEOUS PROVISIONS
SECTION 12.01. Section 201.601, Transportation Code, is amended by adding Subsection (c) to read as follows: (c) The plan must include a component that is not financially constrained and identifies transportation improvements designed to relieve congestion. In developing this component of the plan, the department shall seek opinions and assistance from officials who have local responsibility for modes of transportation listed in Subsection (a). (d) The plan shall 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. The department shall consider the performance measures in selecting transportation improvements. SECTION 12.02. (a) The Texas Transportation Commission may sell the tract of land comprising the Texas Department of Transportation'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) The commission may retain ownership and control of: (1) 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 (2) the parking facilities on Bull Creek Road used to serve the Bull Creek campus and the department's Camp Hubbard campus. (c) Revenue from the sale of this property shall be deposited to the credit of the state highway fund. (d) Before September 1, 2005, the commission may 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 the commission 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) The department may relocate its displaced operations from the Bull Creek campus to the replacement property. If the State Aircraft Pooling Board property is not sufficient for the department's needs to relocate displaced operations and for other facilities or offices, the commission may also purchase or acquire by exercise of the power of eminent domain any property adjacent to that property that the commission determines necessary. (f) This section does not require the commission to relocate all or a portion of the department's displaced operations from the Bull Creek campus to property acquired under this section. (g) Section 31.158, Natural Resources Code, does not apply to a transaction authorized by this section. SECTION 12.03. (a) On behalf of the state, the Texas Building and Procurement Commission shall sell to the Texas Department of Transportation 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 Texas Department of Transportation needs to relocate the operations carried out at its Bull Creek Campus at Bull Creek Road and 45th Street in Austin. (b) The Texas Department of Transportation shall purchase the land before September 1, 2005. (c) Section 31.158, Natural Resources Code, does not apply to a real estate transaction authorized by this section. SECTION 12.04. Section 222.103(h), Transportation Code, is amended to read as follows: (h) Money granted by the department each [federal] fiscal year under this section may not exceed $800 million [30 percent of the obligation authority under the federal-aid highway program that is distributed to this state in that year]. This limitation does not apply to money required to be repaid.
ARTICLE 13. GENERAL PROVISIONS; EFFECTIVE DATE
SECTION 13.01. 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. Except as otherwise provided by this Act, this Act takes effect September 1, 2003.
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