78R7093 MTB-F
By: Gallegos S.B. No. 1677
A BILL TO BE ENTITLED
AN ACT
relating to the financing, construction, improvement, maintenance,
and operation of toll facilities by the Texas Department of
Transportation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 201.112(a), Transportation Code, is
amended to read as follows:
(a) The commission may by rule establish procedures for the
informal resolution of a claim arising out of a contract described
by:
(1) Section 22.018;
(2) Chapter 223; [or]
(3) Chapter 361; or
(4) Chapter 2254, Government Code.
SECTION 2. The heading to Chapter 361, Transportation Code,
is amended to read as follows:
CHAPTER 361. STATE HIGHWAY [TEXAS] TURNPIKE
PROJECTS [AUTHORITY]
SECTION 3. Sections 361.001(2), (3), (4), and (5),
Transportation Code, are amended to read as follows:
(2) ["Board" means the board of directors of the
authority.
[(3)] "Owner" includes a person having title to or an
interest in any property, rights, easements, and interests
authorized to be acquired under this chapter.
(3) [(4)] "Turnpike project" means a toll highway
constructed, maintained, or operated under this chapter as part of
the state highway system and any improvement, extension, or
expansion to the highway and includes:
(A) a facility to relieve traffic congestion and
promote safety;
(B) a bridge, tunnel, overpass, underpass,
interchange, entrance plaza, approach, toll house, service road,
ramp, or service station;
(C) an administration, storage, or other
building the department [authority] considers necessary to operate
the project;
(D) property rights, easements, and interests
the department [authority] acquires to construct or operate the
project;
(E) a parking area or structure, rest stop, park,
and any other improvement or amenity the department [authority]
considers necessary, useful, or beneficial for the operation of a
turnpike project; and
(F) a toll-free facility that is appurtenant to
and necessary for the efficient operation of a turnpike project,
including a service road, access road, ramp, interchange, bridge,
or tunnel.
(4) [(5)] "Regional tollway authority" means a
regional tollway authority created under Chapter 366.
SECTION 4. The heading to Subchapter B, Chapter 361,
Transportation Code, is amended to read as follows:
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS [TEXAS TURNPIKE AUTHORITY]
SECTION 5. Section 361.031, Transportation Code, as amended
by Chapters 920 and 1237, Acts of the 77th Legislature, Regular
Session, 2001, is reenacted and amended to read as follows:
Sec. 361.031. TEXAS TURNPIKE AUTHORITY. (a) The Texas
Turnpike Authority is a division of the Texas Department of
Transportation. The [that has full] authority is responsible for
promoting and coordinating the development of turnpike projects
under this chapter. The commission and the director shall assign
duties to [exercise all powers granted to it under this chapter.
Powers granted to the department under this chapter and Chapter 362
to study, design, construct, operate, expand, enlarge, or extend a
turnpike project as a part of the state highway system shall be
exercised by the department acting by and through] the authority
and other offices of the department as appropriate for the proper
administration of this chapter and other law.
(b) The exercise by the department [authority] of the powers
conferred by this chapter in the construction, operation, and
maintenance of a turnpike project is:
(1) in all respects for the benefit of the people of
this state, for the increase of their commerce and prosperity, and
for the improvement of their health and living conditions and
public safety; and
(2) an essential governmental function of the state.
SECTION 6. Section 361.042, Transportation Code, is
redesignated as Section 361.032, Transportation Code, and amended
to read as follows:
Sec. 361.032 [361.042]. GENERAL POWERS AND DUTIES. (a) The
commission [board] shall[:
[(1) on its own initiative or at the request of the
commission, consider, study, plan, and develop turnpike projects
under this chapter;
[(2)] adopt rules for the implementation and
administration of this chapter [regulation of its affairs and the
conduct of its business; and
[(3) undertake such other duties as are delegated to
it by the commission].
(b) The department [authority] may:
(1) construct, maintain, repair, and operate turnpike
projects in this state;
(2) acquire, hold, and dispose of property in the
exercise of its powers and the performance of its duties under this
chapter;
(3) with the approval of the governor and the
commission, enter into contracts or operating agreements with
similar authorities or agencies of another state, including a state
of the United Mexican States;
(4) enter into contracts or agreements necessary or
incidental to its duties and powers under this chapter;
(5) employ consulting engineers, accountants,
construction and financial experts, superintendents, managers, and
other employees and agents the department [authority] considers
necessary and set their compensation;
(6) [employ attorneys to advance or defend legal
actions pertaining to the division's activities, notwithstanding
any other law to the contrary, including Section 402.0212,
Government Code;
[(7)] receive grants for the construction of a
turnpike project and receive contributions of money, property,
labor, or other things of value from any source to be used for the
purposes for which the grants or contributions are made;
(7) [(8) adopt and enforce rules not inconsistent with
this chapter for the use of any turnpike project, including rules
establishing speed limits and maximum allowable vehicle and load
weight limits for turnpike projects;
[(9)] notwithstanding Chapter 2113, Government Code,
engage in marketing, advertising, and other activities to promote
the development and use of turnpike projects and may enter into
contracts or agreements necessary to procure marketing,
advertising, or other promotional services from outside service
providers;
[(10) with the concurrence of the commission, form,
develop, or utilize a corporation created under Chapter 431 for the
promotion and development of turnpike projects;] and
(8) [(11)] do all things necessary or appropriate to
carry out the powers expressly granted by this chapter.
SECTION 7. Section 361.054, Transportation Code, is
redesignated as Section 361.033, Transportation Code, and amended
to read as follows:
Sec. 361.033 [361.054]. AUDIT. Notwithstanding any other
law to the contrary, the department [authority] shall have an
independent certified public accountant audit the department's
[authority's] books and accounts for activities under this chapter
at least annually. The audit shall be conducted in accordance with
the requirements of any trust agreement securing bonds issued under
this chapter that is in effect at the time of the audit. The cost of
the audit may be treated as part of the cost of construction or
operation of a turnpike project. This section does not affect the
ability of a state agency to audit the department's [authority's]
books and accounts.
SECTION 8. The heading to Subchapter C, Chapter 361,
Transportation Code, is amended to read as follows:
SUBCHAPTER C. DEVELOPMENT [APPROVAL] OF TURNPIKE PROJECTS
SECTION 9. Section 361.101, Transportation Code, is amended
to read as follows:
Sec. 361.101. DETERMINATION OF TURNPIKE PROJECTS. The
department [authority] may:
(1) construct, maintain, repair, and operate a
turnpike project to:
(A) facilitate vehicular traffic throughout this
state;
(B) promote the agricultural and industrial
development of this state;
(C) effect traffic safety; or
(D) improve connections between highways of this
state, adjoining states, and the United Mexican States; and
(2) at any time determine to undertake a turnpike
project, except that the commission by order must approve [the
location of the project before] final designation.
SECTION 10. Section 361.103, Transportation Code, is
amended to read as follows:
Sec. 361.103. APPLICATION OF OTHER LAW. All other law
applicable to the department, the commission, or the state highway
system shall apply to the development, construction, maintenance,
and operation of a turnpike project under this chapter unless in
conflict with a provision of this chapter. [ENVIRONMENTAL REVIEW.
(a) The authority by rule shall provide for the authority's
environmental review of turnpike projects. The rules must provide
for:
[(1) public comment on environmental reviews of
turnpike projects, including the types of projects for which public
hearings are required, and a procedure for requesting a public
hearing on an environmental review for which a public hearing is not
required;
[(2) the environmental factors and impacts the
authority will evaluate in its environmental reviews; and
[(3) environmental review of alternate routes for a
proposed turnpike project.
[(b) The environmental review of a turnpike project must be
conducted before the location or alignment of the project is
adopted.
[(c) The commission must approve each environmental review
under this section before construction of a turnpike project
begins.
[(d) At least once during each five-year period, the
authority, after a public hearing, shall review the rules relating
to environmental review and make appropriate changes.]
SECTION 11. Subchapter C, Chapter 361, Transportation Code,
is amended by adding Section 361.104 to read as follows:
Sec. 361.104. ENTRANCES AND EXITS OF TURNPIKE PROJECT. The
department shall:
(1) designate the location of and establish, limit,
and control the entrances and exits of a turnpike project as
considered necessary or desirable to ensure the proper operation
and maintenance of the project; and
(2) prohibit entrance to a project at any place not
designated as an entrance.
SECTION 12. Section 361.131, Transportation Code, is
amended to read as follows:
Sec. 361.131. POWERS AND PROCEDURES OF DEPARTMENT
[AUTHORITY] IN ACQUIRING PROPERTY. Except as otherwise provided by
this chapter, the department [authority, acting by and through the
board,] has the same powers and may use the same procedures:
(1) in acquiring property under this chapter as the
commission or the department in acquiring property under Subchapter
D, Chapter 203; and
(2) in disposing of surplus property acquired under
this chapter as the commission or the department under Subchapter
B, Chapter 202.
SECTION 13. Section 361.132, Transportation Code, is
amended to read as follows:
Sec. 361.132. ACQUISITION OF PROPERTY. (a) The department
[authority] may acquire, in the name of the state, public or private
real property it determines necessary or convenient for the
construction, expansion, enlargement, extension, improvement, or
operation of a turnpike project or for otherwise carrying out this
chapter.
(b) The real property the department [authority] may
acquire under this subchapter includes:
(1) public parks, playgrounds, or reservations;
(2) parts of or rights in public parks, playgrounds,
or reservations;
(3) rights-of-way;
(4) property rights, including:
(A) a right of ingress or egress; and
(B) a reservation right in real property that
restricts or prohibits for not more than seven years the:
(i) addition of a new improvement on the
real property;
(ii) addition to or modification of an
existing improvement on the real property; or
(iii) subdivision of the real property;
(5) franchises;
(6) easements; and
(7) other interests in real property.
(c) The department [authority] may acquire the real
property by any method, including purchase and condemnation. The
department [authority] may purchase public or private real property
on the terms and at the price the department [authority] and the
owner consider reasonable.
(d) Property necessary or convenient for the construction
or operation of a turnpike project under Subsection (a) includes an
interest in real property, a property right, or materials that the
department [authority] determines are necessary or convenient to:
(1) protect a turnpike project;
(2) drain a turnpike project;
(3) divert a stream, river, or other watercourse from
the right-of-way of a turnpike project;
(4) store materials or equipment used in the
construction or maintenance of a turnpike project;
(5) provide a location for an ancillary facility that
generates revenue for use in the construction, maintenance, or
operation of a turnpike project, including a gas station, garage,
store, hotel, or restaurant;
(6) construct or operate a warehouse, toll house, toll
plaza, service station, or other facility used in connection with
the construction, maintenance, or operation of a turnpike project;
(7) [(6)] lay out, construct, or maintain a roadside
park;
(8) [(7)] lay out, construct, or maintain a parking
lot that will contribute to the maximum use of a turnpike project
with the least possible congestion;
(9) [(8)] mitigate an adverse environmental effect
that directly results from the construction or maintenance of a
turnpike project; or
(10) [(9)] accomplish any other purpose related to the
location, construction, improvement, maintenance, beautification,
preservation, or operation of a turnpike project.
(e) The department [authority] shall comply with all
relocation assistance procedures applicable to the department in
connection with any displacement of owners or tenants as a
consequence of the department's [authority's] acquisition of real
property under this chapter.
(f) The department [authority] may acquire timber, earth,
stone, gravel, or other materials as necessary to carry out a
purpose under this chapter.
SECTION 14. Sections 361.133(b) and (c), Transportation
Code, are amended to read as follows:
(b) The governing body of a political subdivision or public
agency may without advertising convey title to or rights or
easements in real property the department [authority] needs in
connection with the construction or operation of a turnpike
project.
(c) Notwithstanding any law to the contrary, a political
subdivision or a state agency may lease, lend, grant, or convey to
the department [authority] at its request real property, including
highways and other real property already devoted to public use,
that may be necessary or appropriate to accomplish the department's
[authority's] purposes. The political subdivision or state agency
may lease, lend, grant, or convey the property:
(1) on terms the subdivision or agency determines
reasonable and fair; and
(2) without advertisement, court order, or other
action or formality other than the regular and formal action of the
subdivision or agency concerned.
SECTION 15. Section 361.134, Transportation Code, is
amended to read as follows:
Sec. 361.134. DESCRIPTION OF REAL PROPERTY. Real property
acquired by the department under this chapter [authority] shall be
described so as to locate the boundary line of the property with
reference to:
(1) lot and block lines and corners of all existing and
recorded subdivision properties, if applicable; or
(2) survey lines and corners.
SECTION 16. Section 361.135, Transportation Code, is
amended to read as follows:
Sec. 361.135. CONDEMNATION OF REAL PROPERTY. (a) The
[board, with the concurrence of the] commission[,] may approve the
acquisition of [acquire] public or private real property in the
name of the state by the exercise of the power of condemnation under
the laws applicable to the exercise of that power on property for
public use if:
(1) the department [authority] and the owner cannot
agree on a reasonable price for the property; or
(2) the owner is legally incapacitated, absent,
unknown, or unable to convey title.
(b) The [board, with the concurrence of the] commission[,]
may approve the condemnation of [condemn] real property that the
commission [authority] determines is:
(1) necessary or convenient for the construction or
operation of [appropriate to construct or to efficiently operate] a
turnpike project, as described by Section 361.132(d);
(2) necessary to restore public or private property
damaged or destroyed, including property necessary or convenient to
mitigate an environmental effect that directly results from the
construction, operation, or maintenance of a turnpike project;
(3) necessary for access, approach, service, and
interchange roads;
(4) necessary to provide proper drainage and ground
slope for a turnpike project; or
(5) necessary otherwise to carry out this chapter.
(c) [The authority may construct a supplemental facility
only on real property the authority purchases.
[(d)] The court having jurisdiction of a condemnation
proceeding may:
(1) make orders as are just to the department
[authority] and the owners of the real property; and
(2) require an undertaking or other security to secure
the owners against any loss or damage by reason of the department's
[board's] failure to accept and pay for the real property.
(d) [(e)] An undertaking or security under Subsection (c)(2)
[(d)(2)] or an act or obligation of the department [authority] or
the commission [board] does not impose any liability on the state,
the department [authority], or the commission [board] except
liability that may be paid from the money authorized by this
chapter.
SECTION 17. Section 361.136, Transportation Code, is
amended to read as follows:
Sec. 361.136. SEVERANCE OF REAL PROPERTY. (a) If a
turnpike project severs an owner's real property, the department
[authority] shall pay:
(1) the value of the property acquired; and
(2) the damages 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) The department [authority] may negotiate for and
purchase the severed real property or either part of the severed
real property if the department [authority] and the owner agree on
terms for the purchase.
SECTION 18. Sections 361.137(a), (b), (c), and (d),
Transportation Code, are amended to read as follows:
(a) The department [authority] may file a declaration of
taking with the clerk of the court:
(1) in which the department [authority] files a
condemnation petition under Chapter 21, Property Code; or
(2) to which the case is assigned.
(b) The department [authority] may file the declaration of
taking concurrently with or subsequent to the petition but may not
file the declaration after the special commissioners have made an
award in the condemnation proceeding.
(c) The declaration of taking must include:
(1) a specific reference to the legislative authority
for the condemnation;
(2) a description and plot plan of the real property to
be condemned, including the following information if applicable:
(A) the municipality in which the property is
located;
(B) the street address of the property; and
(C) the lot and block number of the property;
(3) a statement of the property interest to be
condemned;
(4) the name and address of each property owner that
the department [authority] can obtain after reasonable
investigation and a description of the owner's interest in the
property; and
(5) a statement that immediate possession of all or
part of the property to be condemned is necessary for the timely
construction of a turnpike project.
(d) A deposit to the registry of the court of an amount equal
to the appraised value, as determined by the department
[authority], of the property to be condemned must accompany the
declaration of taking.
SECTION 19. Sections 361.138(a) and (b), Transportation
Code, are amended to read as follows:
(a) Immediately on the filing of a declaration of taking,
the department [authority] shall serve a copy of the declaration on
each person possessing an interest in the condemned property by a
method prescribed by Section 21.016(d), Property Code. The
department [authority] shall file evidence of the service with the
clerk of the court. On filing of that evidence, the department
[authority] may take possession of the property pending the
litigation.
(b) If the condemned property is a homestead or a portion of
a homestead as defined by Section 41.002, Property Code, the
department [authority] may not take possession sooner than the 31st
day after the date of service under Subsection (a).
SECTION 20. Section 361.141(a), Transportation Code, is
amended to read as follows:
(a) The department [authority] may not pay compensation for
public real property, parkways, streets, highways, alleys, or
reservations it takes, except for:
(1) parks and playgrounds; and
(2) property acquired under restrictions and
limitations requiring payment of compensation.
SECTION 21. Section 361.142, Transportation Code, is
amended to read as follows:
Sec. 361.142. COVENANTS, CONDITIONS, RESTRICTIONS, OR
LIMITATIONS. Covenants, conditions, restrictions, or limitations
affecting property acquired in any manner by the department
[authority] are not binding against the department [authority] and
do not impair the department's [authority's] ability to use the
property for a purpose authorized by this chapter. The
beneficiaries of the covenants, conditions, restrictions, or
limitations are not entitled to enjoin the department [authority]
from using the property for a purpose authorized under this
chapter, but this section does not affect the right of a person to
seek damages to the person's property under Section 17, Article I,
Texas Constitution.
SECTION 22. Sections 361.171(a), (b), (c), (d), and (e),
Transportation Code, are amended to read as follows:
(a) The commission [authority] by order [resolution] may
provide for the issuance of turnpike revenue bonds to pay all or
part of the cost of a turnpike project. Each project shall be
financed and built by a separate bond issue. The proceeds of a bond
issue may be used solely for the payment of the project for which
the bonds were issued and may not be divided between or among two or
more projects. Each project is a separate undertaking, the cost of
which shall be determined separately.
(b) The bonds of each issue:
(1) must be dated;
(2) bear interest at the rate or rates authorized by
law;
(3) mature at the time or times, not exceeding 40 years
from their date or dates, determined by the commission [authority];
and
(4) may be made redeemable before maturity, at the
price or prices and under the terms set by the commission
[authority] in the proceeding authorizing the issuance of the
bonds.
(c) The department [authority] may sell the bonds at public
or private sale in the manner and for the price it determines to be
in the best interest of the department [authority].
(d) The proceeds of each bond issue shall be disbursed in
the manner and under the restrictions, if any, the commission
[authority] provides in the order [resolution] authorizing the
issuance of the bonds or in the trust agreement securing the bonds.
(e) If the proceeds of a bond issue are less than the
turnpike project cost, additional bonds may in like manner be
issued to provide the amount of the deficit. Unless otherwise
provided in the order [resolution] authorizing the issuance of the
bonds or in the trust agreement securing the bonds, the additional
bonds are on a parity with and are payable from the same fund
without preference or priority of the bonds first issued.
SECTION 23. Section 361.172, Transportation Code, is
amended to read as follows:
Sec. 361.172. APPLICABILITY OF OTHER LAWS. (a) Except as
provided by Subsection (b), the commission [authority] may issue
turnpike revenue bonds or turnpike revenue refunding bonds under
this chapter without complying with any other law applicable to the
issuance of bonds.
(b) Notwithstanding any other provisions of this chapter,
the following laws apply to bonds issued by the commission under
this chapter [authority]:
(1) Chapters 1201, 1202, 1204, and 1371, Government
Code; and
(2) Subchapters A-C, Chapter 1207, Government Code.
SECTION 24. Section 361.173, Transportation Code, is
amended to read as follows:
Sec. 361.173. PAYMENT OF BONDS; CREDIT OF STATE NOT
PLEDGED. (a) The principal of, interest on, and any redemption
premium on bonds issued by the commission under this chapter
[authority] are payable solely from:
(1) the money authorized for their payment under this
chapter or other law; and
(2) the revenue of the turnpike project for which the
bonds were issued, including tolls pledged to pay the bonds.
(b) Bonds issued under this chapter do not constitute a debt
of the state or a pledge of the faith and credit of the state. Each
bond must contain on its face a statement to the effect that:
(1) the state, the commission, and the department
[authority] are not obligated to pay the bond or the interest on the
bond from a source other than the amount pledged to pay the bond and
the interest on the bond; and
(2) the faith and credit and the taxing power of the
state are not pledged to the payment of the principal of or interest
on the bond.
(c) The commission and the department [authority] may not
incur financial obligations that cannot be paid from tolls or
revenue derived from owning or operating turnpike projects or from
money provided by law.
SECTION 25. Section 361.174, Transportation Code, is
amended to read as follows:
Sec. 361.174. SOURCES OF PAYMENT OF AND SECURITY FOR
TURNPIKE PROJECT BONDS. Notwithstanding any other provisions of
this chapter, turnpike project bonds issued by the commission
[authority] may:
(1) be payable from and secured by payments made under
an agreement with a local governmental entity as provided by
Subchapter A, Chapter 362, and may state on their faces any pledge
of revenue or taxes and any security for the bonds under the
agreement; and
(2) be payable from and secured by money derived from
any other source available to the department [authority, other than
money derived from a different turnpike project].
SECTION 26. Section 361.175, Transportation Code, is
amended to read as follows:
Sec. 361.175. TURNPIKE REVENUE REFUNDING BONDS. (a) The
commission [authority] by order [resolution] may provide for the
issuance of turnpike revenue refunding bonds to:
(1) refund any outstanding bonds issued under this
chapter for a turnpike project, including the payment of any
redemption premium on the bonds and any interest accrued as of the
date of redemption of the bonds; and
(2) construct improvements, extensions, or
enlargements to the turnpike project for which the outstanding
bonds were issued.
(b) This chapter, to the extent applicable, governs:
(1) the issuance of the refunding bonds;
(2) the maturities and other details of the bonds;
(3) the rights of the bondholders; and
(4) the rights and obligations of the commission and
the department [authority] with respect to the bonds and the
bondholders.
(c) The commission [authority] may:
(1) issue refunding bonds in exchange for outstanding
bonds; or
(2) sell refunding bonds and use the proceeds to pay or
provide for the payment of the outstanding bonds.
SECTION 27. Sections 361.176(a) and (e), Transportation
Code, are amended to read as follows:
(a) Bonds issued under this chapter may be secured by a
trust agreement between the commission [authority] and a corporate
trustee that is a trust company or a bank that has the powers of a
trust company.
(e) A trust agreement may:
(1) set forth the rights and remedies of the
bondholders and the trustee;
(2) restrict the individual right of action by
bondholders as is customary in trust agreements or trust indentures
securing corporate bonds and debentures; and
(3) contain provisions the commission [authority]
determines reasonable and proper for the security of the
bondholders.
SECTION 28. Section 361.177, Transportation Code, is
amended to read as follows:
Sec. 361.177. PROVISIONS PROTECTING AND ENFORCING RIGHTS
AND REMEDIES OF BONDHOLDERS. A trust agreement or order
[resolution] providing for the issuance of bonds may contain
reasonable provisions to protect and enforce the rights and
remedies of the bondholders, including:
(1) covenants stating the duties of the department
[authority] in relation to:
(A) the acquisition of property and the
construction, improvement, expansion, maintenance, repair,
operation, and insurance of the turnpike project in connection with
which the bonds were authorized; and
(B) the custody, safeguarding, and application
of money; and
(2) provisions for the employment of consulting
engineers in connection with the construction or operation of the
turnpike project.
SECTION 29. Section 361.178, Transportation Code, is
amended to read as follows:
Sec. 361.178. FURNISHING OF INDEMNIFYING BONDS OR PLEDGE OF
SECURITIES. A bank or trust company that has its main office or a
branch office in this state and that acts as depository of the
proceeds of bonds or of revenue may furnish indemnifying bonds or
pledge securities that the department [authority] requires.
SECTION 30. Sections 361.179(a), (b), (d), (e), and (g),
Transportation Code, are amended to read as follows:
(a) The department [authority] may:
(1) impose tolls for the use of each turnpike project
and the different parts or sections of each turnpike project; and
(2) notwithstanding anything in Chapter 202 to the
contrary, contract with a person for the use of part of a turnpike
project or lease or sell part of a turnpike project, including the
right-of-way adjoining the paved portion, for any purpose,
including placing on the adjoining right-of-way a gas station,
garage, store, hotel, restaurant, railroad tracks, telephone line,
telecommunication line, telecommunications facilities and
equipment, and electric line, and set the terms for the use, lease,
or sale.
(b) The tolls shall be set so that the aggregate of tolls
from the turnpike project:
(1) provides a fund sufficient with other revenue and
contributions, if any, to pay:
(A) the cost of maintaining, repairing, and
operating the project; and
(B) the principal of and interest on the bonds
issued for the project as those bonds become due and payable; and
(2) creates reserves for the purposes listed under
Subdivision (1).
(d) The tolls and other revenue derived from the turnpike
project for which bonds were issued, except the part necessary to
pay the cost of maintenance, repair, and operation and to provide
reserves for those costs as may be provided in the order
[resolution] authorizing the issuance of the bonds or in the trust
agreement securing the bonds, shall be set aside at regular
intervals as may be provided in the order [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; and
(4) the redemption price or the purchase price of
bonds retired by call or purchase as provided by the bonds.
(e) Use and disposition of money to the credit of the
sinking fund are subject to the order [resolution] authorizing the
issuance of the bonds or to the trust agreement.
(g) Money in the sinking fund, less the reserve provided by
the order [resolution] or trust agreement, if not used within a
reasonable time to purchase bonds for cancellation, shall be
applied to the redemption of bonds at the applicable redemption
price.
SECTION 31. Sections 361.181(a) and (b), Transportation
Code, are amended to read as follows:
(a) Notwithstanding Section 361.179 or any other provision
of this chapter to the contrary, the department [authority] may pay
the expenses of studying the cost and feasibility and any other
expenses relating to the preparation and issuance of turnpike
revenue bonds for the construction of a proposed turnpike project
by:
(1) using available revenue derived from an existing
turnpike project;
(2) borrowing money and issuing interest-bearing
evidences of indebtedness or entering into a loan agreement payable
out of available revenue anticipated to be derived from the
operation of an existing turnpike project; and
(3) pledging available revenue anticipated to be
derived from the operation of an existing turnpike project[; and
[(4) using money received from the department for
feasibility studies undertaken at the request of the commission].
(b) The department's [authority's] use of a financing method
under Subsection (a) is subject to the prior approval of the
commission.
SECTION 32. Sections 361.182(a), (b), (d), (f), (h), and
(i), Transportation Code, are amended to read as follows:
(a) The department may [authority shall] maintain the Texas
Turnpike Authority feasibility study fund. The fund is a revolving
fund held in trust by a banking institution chosen by the department
[authority] or, at the discretion of the department [authority], in
trust in the state treasury outside the general revenue fund. The
fund shall be kept separate from the money for any project.
(b) The department [authority] may transfer an amount from a
surplus fund established for a turnpike project to the feasibility
study fund if the remainder of the surplus fund is not less than any
minimum amount required by the trust agreement to be retained for
that project.
(d) The commission [authority] must authorize a feasibility
study. The [, subject to the prior approval of the] commission may
delegate this authority to the director.
(f) For a purpose described by Subsection (c), the
department [authority] may borrow money and issue promissory notes
or other interest-bearing evidences of indebtedness payable out of
the feasibility study fund, pledging money in the fund or to be
placed in the fund.
(h) [Money transferred to the department for the benefit of
the authority under Section 8.02, Chapter 1171, Acts of the 75th
Legislature, Regular Session, 1997, shall remain in the state
treasury and may not be transferred to a private banking
institution. This money is exempt from the application of Section
403.095, Government Code, and is not subject to reduction or
elimination under any other provision of the Government Code.
[(i)] The commission may authorize [request that the
authority conduct] a feasibility study to be funded in accordance
with Subchapter E, Chapter 222 [for any proposed turnpike project.
The expenses of a study requested by the commission shall be paid
for by the department. If the turnpike project is constructed, the
department shall be reimbursed for money paid to the authority from
the proceeds of turnpike revenue bonds issued for, or other
proceeds that may be used for, the construction, improvement,
extension, expansion, or operation of the project].
SECTION 33. Section 361.183(b), Transportation Code, is
amended to read as follows:
(b) Money spent under Subsection (a) for a proposed turnpike
project is reimbursable, with the consent of the commission
[authority], to the person paying the expenses out of the proceeds
from turnpike revenue bonds issued for or other proceeds that may be
used for the construction, improvement, extension, expansion, or
operation of the project.
SECTION 34. Sections 361.184(a), (b), and (c),
Transportation Code, are amended to read as follows:
(a) The department [authority] may maintain the Texas
Turnpike Authority project revolving fund. The fund is a revolving
fund held in trust by a banking institution chosen by the department
[authority] or, at the discretion of the department [authority], in
trust in the state treasury outside the general revenue fund. The
fund shall be kept separate from other funds of the department
[authority].
(b) The commission [board] may transfer, or direct the
department [authority] to transfer, into the project revolving fund
money from any permissible source, including:
(1) money from a surplus fund established for a
turnpike project if the remainder of the surplus fund is not less
than any minimum amount required by the trust agreement to be
retained for that project;
(2) money received under Subchapter I or from a
transfer of a turnpike project under Subchapter H;
(3) money received from the state highway fund; and
(4) contributions or assistance from the United
States, another state, a political subdivision of this state, the
United Mexican States, or a political subdivision of the United
Mexican States.
(c) The department [authority] may use money in the project
revolving fund to:
(1) finance the construction, maintenance, or
operation of a turnpike project;
(2) provide matching money necessary for a federal
grant or other type of participatory funding;
(3) provide credit enhancement for bonds issued to
construct, expand, or improve a turnpike project;
(4) provide security for or payment of future or
existing debt for construction, operation, or maintenance of a
turnpike project;
(5) borrow money and issue promissory notes or other
indebtedness payable out of the fund for any purpose authorized by
this chapter; and
(6) provide for any other reasonable purpose that
assists in the financings of the department [authority] as
authorized by this chapter.
SECTION 35. Section 361.185, Transportation Code, is
amended to read as follows:
Sec. 361.185. TRUST FUND. (a) All money received under
this chapter, whether as proceeds from the sale of bonds or as
revenue, is a trust fund to be held and applied as provided by this
chapter. Notwithstanding any other law, including Section 9,
Chapter 1123, Acts of the 75th Legislature, Regular Session, 1997,
funds held under this chapter shall be held in trust by a banking
institution chosen by the department [authority] or, at the
discretion of the department [authority], in trust in the state
treasury outside the general revenue fund.
(b) The order [resolution] authorizing the issuance of
bonds or the trust agreement securing the bonds shall provide that
an officer to whom or a bank or trust company to which the money is
paid shall act as trustee of the money and shall hold and apply the
money for the purpose of the order [resolution] or trust agreement,
subject to this chapter and the order [resolution] or trust
agreement.
SECTION 36. Section 361.186, Transportation Code, is
amended to read as follows:
Sec. 361.186. REMEDIES. Except to the extent restricted by
a trust agreement, a holder of a bond issued under this chapter [or
of a coupon incident to a bond] and a trustee under a trust
agreement may:
(1) protect and enforce by a legal proceeding a right
under:
(A) this chapter or another law of this state;
(B) the trust agreement; or
(C) the order [resolution] authorizing the
issuance of the bond; and
(2) compel the performance of a duty this chapter, the
trust agreement, or the order [resolution] requires the commission
or the department [authority] or an officer of the commission or
the department [authority] to perform, including the imposing of
tolls.
SECTION 37. Section 361.187(a), Transportation Code, is
amended to read as follows:
(a) The commission [authority] is exempt from taxation of or
assessments on:
(1) a turnpike project;
(2) property the department [authority] acquires or
uses under this chapter; or
(3) income from property described by Subdivision (1)
or (2).
SECTION 38. Section 361.188, Transportation Code, is
amended to read as follows:
Sec. 361.188. VALUATION OF BONDS SECURING DEPOSIT OF PUBLIC
FUNDS. Bonds of the commission [authority, when they are
accompanied by the unmatured coupons incident to the bonds,] may
secure the deposit of public funds of the state or a political
subdivision of the state to the extent of the lesser of the face
value of the bonds or their market value.
SECTION 39. Section 361.189, Transportation Code, is
amended to read as follows:
Sec. 361.189. USE OF SURPLUS REVENUE. The commission by
order [resolution] may authorize the use of surplus revenue of a
turnpike project to pay the costs of another turnpike project,
other than a project financed under Subchapter I, or a toll-free
project. The commission may in the order [resolution] prescribe
terms for the use of the revenue, including the pledge of the
revenue, but may not take an action under this section that
violates, impairs, or is inconsistent with a bond order
[resolution], trust agreement, or indenture governing the use of
the surplus revenue.
SECTION 40. Section 361.191, Transportation Code, is
amended to read as follows:
Sec. 361.191. EXPENDITURE OF MONEY AUTHORIZED BY COMMISSION
[DEPARTMENT OF TRANSPORTATION]. (a) The commission [Texas
Department of Transportation] may provide for the expenditure of
money for the cost of the acquisition, construction, maintenance,
or operation of a turnpike project [by the authority]. The
commission [department] may require the repayment of [authority to
repay] money provided under this section from toll revenue or other
sources on terms established by the commission.
(b) Money repaid as required by the commission [department]
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.
SECTION 41. Section 361.231(a), Transportation Code, is
amended to read as follows:
[(a)] A contract of the department [authority] for the
construction, improvement, repair, or maintenance of a turnpike
project shall[, to the extent applicable,] be awarded under the
same terms as a contract of the department under Sections
223.001-223.007, [223.009,] and 223.009-223.011 [223.010].
SECTION 42. Sections 361.232(b), (c), and (d),
Transportation Code, are amended to read as follows:
(b) The department [authority] may construct a grade
separation at an intersection of a turnpike project with a railroad
or highway and change the line or grade of a highway to accommodate
it to the design of a grade separation. The department [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 turnpike project.
(c) If feasible, the department [authority] shall provide
access to properties previously abutting a county or other public
road that is taken for a turnpike project and shall pay abutting
property owners the expenses or any resulting damages for denial of
access to the road.
(d) If the department [authority] finds it necessary to
change the location of a portion of a highway, it shall reconstruct
the highway at the location the [authority and the] department
determines [determine] to be most favorable. The reconstructed
highway must be of substantially the same type and in as good
condition as the original highway. The department [authority]
shall determine and pay the cost of the reconstruction and any
damage incurred in changing the location of a highway as part of the
cost of the turnpike project.
SECTION 43. Sections 361.233(a) and (c), Transportation
Code, are amended to read as follows:
(a) The department [authority] and its authorized agents
may enter any real property, water, or premises in this state to
make a survey, sounding, drilling, or examination it determines
necessary or appropriate for the purposes of this chapter.
(c) The department [authority] shall make reimbursement for
any actual damages to real property, water, or premises that result
from an activity described by Subsection (a).
SECTION 44. Sections 361.234(a), (b), (d), (e), (f), and
(g), Transportation Code, are amended to read as follows:
(a) The commission [authority] may adopt rules for the
installation, construction, maintenance, repair, renewal,
relocation, and removal of a public utility facility in, on, along,
over, or under a turnpike project.
(b) If the department [authority] determines it is
necessary that a public utility facility located in, on, along,
over, or under a turnpike project be relocated in the project,
removed from the project, or carried along or across the turnpike by
grade separation, the owner or operator of the facility shall
relocate or remove the facility in accordance with the order of the
department [authority]. The department [authority], as a part of
the cost of the turnpike project or the cost of operating the
project, shall pay the cost of the relocation, removal, or grade
separation, including the cost of:
(1) installing the facility in a new location or
locations;
(2) interests in real property, and other rights
acquired to accomplish the relocation or removal; and
(3) maintenance of grade separation structures.
(d) The department [authority] and the public utility shall
have 90 days from the date the department [authority] provides
written notice to the public utility of the need for relocation of
utility facilities to reach an agreement concerning the period for
completion of the relocation. The 90-day period may be extended by
mutual written agreement. If the parties are unable to reach an
agreement for the period for completion of the relocation, the
department [authority] may specify a reasonable period. The
department [authority] may reduce the total costs to be paid by the
department [authority] by 10 percent for each 30-day period or
portion of a 30-day period that the relocation exceeds the period
specified by agreement between the department [authority] and
public utility or as reasonably specified by the department
[authority] if no agreement is reached, unless the public utility's
failure to timely perform results from a material action or
inaction by the department [authority] or from conditions that were
beyond the reasonable control of the utility. If an owner or
operator of a public utility facility does not timely remove or
relocate the facility as required under Subsection (b) and the
department [authority] relocates the facility, the department
[authority] shall relocate the facility in a safe manner that
complies with applicable law and utility construction standards
recognized by the department [authority] and that minimizes
disruption of utility service and shall notify the public utility
and other appropriate regulatory agencies of the relocation. A
public utility shall reimburse the department [authority] for
expenses reasonably incurred for the relocation of a public utility
facility unless the failure of the public utility to timely
relocate the facility was the result of circumstances beyond the
control of the utility, in which case the department [authority]
shall pay the cost of the relocation.
(e) Notwithstanding anything in this chapter to the
contrary, [:
[(1)] Subchapter B, Chapter 181, Utilities Code,
applies to the laying and maintenance of pipes, mains, conductors,
and other facilities used for conducting gas by a gas utility
described in that subchapter through, under, along, across, and
over a turnpike project constructed by the department [authority;
and
[(2) the authority has the powers and duties assigned
to the commission by Subchapter B, Chapter 181, Utilities Code].
(f) Notwithstanding anything in this chapter to the
contrary, Subchapter C, Chapter 181, Utilities Code, applies to the
erection, construction, maintenance, and operation of lines and
poles owned by an electric utility, as that term is defined by
Section 181.041, Utilities Code, over, under, across, on, and along
a turnpike project constructed by the department [authority. The
authority has the powers and duties delegated to the commission by
Subchapter C, Chapter 181, Utilities Code].
(g) Notwithstanding anything in this chapter to the
contrary, the laws of this state applicable to the use of public
roads, streets, and waters of this state by a telephone and
telegraph corporation apply to the erection, construction,
maintenance, location, and operation of a line, pole, or other
fixture by a telephone and telegraph corporation over, under,
across, on, and along a turnpike project constructed by the
department [authority].
SECTION 45. Section 361.235(a), Transportation Code, is
amended to read as follows:
(a) The department [authority] may use real property owned
by the state, including submerged land, that the department
[authority] considers necessary for the construction or operation
of a turnpike project.
SECTION 46. Section 361.236, Transportation Code, is
amended to read as follows:
Sec. 361.236. MAINTENANCE OF TURNPIKE PROJECT. The
department [authority] shall maintain and keep in good condition
and repair each turnpike project opened to traffic.
SECTION 47. Section 361.238(c), Transportation Code, is
amended to read as follows:
(c) The following entities shall consider offering motor
vehicle operators the option of using a transponder to pay tolls
without stopping, to mitigate congestion at toll locations, to
enhance traffic flow, and to otherwise increase the efficiency of
operations:
(1) the department [authority];
(2) an entity to which a project authorized by this
chapter is transferred; or
(3) a third party service provider under contract with
an entity described by Subdivision (1) or (2).
SECTION 48. Section 361.251, Transportation Code, is
amended to read as follows:
Sec. 361.251. TURNPIKE PROJECT A STATE [PUBLIC] HIGHWAY. A
turnpike project is a state highway subject to all laws applicable
to the regulation and control of traffic on a state [public]
highway.
SECTION 49. Section 361.253, Transportation Code, is
amended by amending Subsections (b), (d), (e), and (g) and by adding
(i) to read as follows:
(b) The department [authority] may impose and collect the
administrative fee, so as to recover the cost of collecting the
unpaid toll, not to exceed $100. The department [authority] shall
send a written notice of nonpayment to the registered owner of the
vehicle at that owner's address as shown in the vehicle
registration records of the department by first class mail not
later than the 30th day after the date of the alleged failure to pay
and may require payment not sooner than the 30th day the date the
notice was mailed. The registered owner shall pay a separate toll
and administrative fee for each event of nonpayment under Section
361.252.
(d) It is an exception to the application of Subsection (a)
or (c) if the registered owner of the vehicle is a lessor of the
vehicle and not later than the 30th day after the date the notice of
nonpayment is mailed provides to the department [authority] a copy
of the rental, lease, or other contract document covering the
vehicle on the date of the nonpayment under Section 361.252, with
the name and address of the lessee clearly legible. If the lessor
provides the required information within the period prescribed, the
department [authority] may send a notice of nonpayment to the
lessee at the address shown on the contract document by first class
mail before the 30th day after the date of receipt of the required
information from the lessor. The lessee of the vehicle for which
the proper toll was not paid who is mailed a written notice of
nonpayment under this subsection and fails to pay the proper toll
and administrative fee within the time specified by the notice of
nonpayment commits an offense. The lessee shall pay a separate toll
and administrative fee for each event of nonpayment. Each failure
to pay a toll or administrative fee under this subsection is a
separate offense.
(e) It is an exception to the application of Subsection (a)
or (c) if the registered owner of the vehicle transferred ownership
of the vehicle to another person before the event of nonpayment
under Section 361.252 occurred, submitted written notice of the
transfer to the department in accordance with Section 520.023, and,
before the 30th day after the date the notice of nonpayment is
mailed, provides to the department [authority] the name and address
of the person to whom the vehicle was transferred. If the former
owner of the vehicle provides the required information within the
period prescribed, the department [authority] may send a notice of
nonpayment to the person to whom ownership of the vehicle was
transferred at the address provided the former owner by first class
mail before the 30th day after the date of receipt of the required
information from the former owner. The subsequent owner of the
vehicle for which the proper toll was not paid who is mailed a
written notice of nonpayment under this subsection and fails to pay
the proper toll and administrative fee within the time specified by
the notice of nonpayment commits an offense. The subsequent owner
shall pay a separate toll and administrative fee for each event of
nonpayment under Section 361.252. Each failure to pay a toll or
administrative fee under this subsection is a separate offense.
(g) 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 department
for deposit in the depository bank used for that purpose
[authority].
(i) The department may contract, in accordance with Section
2107.003, Government Code, with a person to collect the unpaid toll
and administrative fee before referring the matter to a court with
jurisdiction over the offense.
SECTION 50. Section 361.255(b), Transportation Code, is
amended to read as follows:
(b) Any peace officer of this state may seize a stolen or
insufficiently funded transponder and return it to the department
[authority], except that an insufficiently funded transponder may
not be seized sooner than the 30th day after the date the department
[authority] has sent a notice of delinquency to the holder of the
account.
SECTION 51. Sections 361.256(a), (b), and (d),
Transportation Code, are amended to read as follows:
(a) To aid in the collection of tolls and in the enforcement
of toll violations, the department [authority] may use automated
enforcement technology that it determines is necessary, including
automatic vehicle license plate identification photography and
video surveillance, by electronic imaging or photographic copying.
(b) Automated enforcement technology approved by the
department [authority] under Subsection (a) may be used only for
the purpose of producing, depicting, photographing, or recording an
image of a license plate attached to the front or rear of a vehicle.
(d) Evidence obtained from technology approved by the
department [authority] under Subsection (a) may not be used in the
prosecution of an offense other than under Section 361.252 or
361.253.
SECTION 52. The heading to Subchapter H, Chapter 361,
Transportation Code, is amended to read as follows:
SUBCHAPTER H. TRANSFER OF TURNPIKE PROJECT [TO COUNTY,
MUNICIPALITY, REGIONAL TOLLWAY AUTHORITY,
OR LOCAL GOVERNMENT CORPORATION]
SECTION 53. Section 361.281, Transportation Code, is
amended to read as follows:
Sec. 361.281. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to:
(1) a county with a population of more than 1.5
million;
(2) a local government corporation serving a county
with a population of more than 1.5 million;
(3) an adjacent county in a joint turnpike authority
with a county with a population of more than 1.5 million;
(4) a municipality with a population of more than
170,000 that is adjacent to the United Mexican States; [or]
(5) a regional tollway authority created under Chapter
366; or
(6) a regional mobility authority created under
Section 361.003.
SECTION 54. Section 361.282, Transportation Code, is
amended to read as follows:
Sec. 361.282. LEASE, SALE, OR CONVEYANCE OF TURNPIKE
PROJECT. (a) The department [authority] may lease, sell, or convey
in another manner a turnpike project to a county, a municipality,
regional tollway authority, regional mobility authority, or a local
government corporation created under Chapter 431.
(b) The [authority, the] commission[,] and the governor
must approve the transfer of the turnpike project as being in the
best interests of the state and the entity receiving the turnpike
project.
SECTION 55. Section 361.283, Transportation Code, is
amended to read as follows:
Sec. 361.283. DISCHARGE OF [AUTHORITY'S] OUTSTANDING
BONDED INDEBTEDNESS. An agreement to lease, sell, or convey a
turnpike project under Section 361.282 must provide for the
discharge and final payment or redemption of the department's
[authority's] outstanding bonded indebtedness for the project.
SECTION 56. Subchapter H, Chapter 361, Transportation Code,
is amended by adding Section 361.284 to read as follows:
Sec. 361.284. REPAYMENT OF DEPARTMENT'S EXPENDITURES. (a)
Except as provided by Subsection (b), an agreement to lease, sell,
or convey a turnpike project under Section 361.282 must provide for
the repayment of any expenditures of the department for the design,
construction, operation, and maintenance of the project that have
not been reimbursed with the proceeds of bonds issued for the
project.
(b) The commission may waive repayment of all or a portion
of the expenditures if it finds that the transfer will result in
substantial net benefits to the state, the department, and the
public that equal or exceed the amount of repayment waived.
SECTION 57. Section 361.285(a), Transportation Code, is
amended to read as follows:
(a) An agreement for the lease, sale, or conveyance of a
turnpike project under this subchapter shall be submitted to the
attorney general for approval as part of the records of proceedings
relating to the issuance of bonds of the county, municipality,
regional tollway authority, regional mobility authority, or local
government corporation.
SECTION 58. Section 361.301, Transportation Code, is
amended to read as follows:
Sec. 361.301. AGREEMENTS WITH PUBLIC OR PRIVATE ENTITIES TO
CONSTRUCT, MAINTAIN, REPAIR, AND OPERATE TURNPIKE PROJECTS. (a)
Notwithstanding Section 361.231 and Subchapter A, Chapter 2254,
Government Code, the department [The authority] may enter into an
agreement with a public or private entity, including a toll road
corporation, to permit the entity, independently or jointly with
the department [authority], to construct, maintain, repair, and
operate turnpike projects.
(b) The department [authority] may authorize the investment
of public and private money, including debt and equity
participation, to finance a function described by this section.
SECTION 59. Section 361.302, Transportation Code, is
amended to read as follows:
Sec. 361.302. EXCLUSIVE DEVELOPMENT AGREEMENTS WITH
[PUBLIC OR] PRIVATE ENTITIES. (a) Notwithstanding Subchapter A,
Chapter 2254, Government Code, the department [The authority] may
use an exclusive development agreement with a private entity to
construct, maintain, repair, operate, extend, or expand a turnpike
project. An exclusive development agreement may include the
functions of design, construction, and operation in any combination
and may use any constitutionally permissible source of funds
without restriction on the number of exclusive development
agreements that the department may enter.
(b) The project may be financed in whole or in part by
invested private funding [or by public and private funding].
(c) The department [authority]:
(1) has broad discretion to negotiate the terms of
financing; and
(2) may negotiate provisions relating to professional
and consulting services with regard to the turnpike project and to
the construction, maintenance, and operation of the project,
including provisions for combining those services.
(d) Until a final contract is executed relating to a
proposed project, the following information is confidential, is not
subject to disclosure, inspection, or copying under Chapter 552,
Government Code, and is not subject to disclosure, discovery,
subpoena, or other means of legal compulsion for its release:
(1) all or part of a proposal submitted by a private
entity for a turnpike project under an exclusive development
agreement;
(2) supplemental information or materials submitted
by a private entity in connection with a proposal for a turnpike
project under an exclusive development agreement; and
(3) information created or collected by the department
or its agents during consideration of a proposal for a turnpike
project under an exclusive development agreement.
(e) An agreement under this section is not subject to the
requirements of Section 361.231.
SECTION 60. Subchapter I, Chapter 361, Transportation Code,
is amended by adding Section 361.3025 to read as follows:
Sec. 361.3025. PERFORMANCE AND PAYMENT SECURITY. (a)
Notwithstanding Section 223.006 and the requirements of Subchapter
B, Chapter 2253, Government Code, the department shall require a
private entity entering into an exclusive development agreement
under Section 361.302 to provide performance and payment bonds or
alternative forms of security in an amount sufficient to protect:
(1) the department and ensure the proper performance
of the agreement; and
(2) payment bond beneficiaries who have a direct
contractual relationship with the private entity or a subcontractor
of the private entity to supply labor or material.
(b) The performance and payment bonds or alternative forms
of security shall be in an amount equal to the cost of constructing
the project.
(c) If the department determines that it is impracticable
for a private entity to provide security in the amount described by
Subsection (b), the department shall set the amount of the bonds or
the alternative forms of security.
(d) A payment or performance bond or alternative form of
security is not required for the portion of an agreement that
includes only design or planning services, the performance of
preliminary studies, or the acquisition of real property.
(e) The amount of the payment security must not be less than
the amount of the performance security.
(f) In addition to performance and payment bonds, the
department may require the following alternate forms of security:
(1) a cashier's check drawn on a financial entity
specified by the department;
(2) United States bonds or notes;
(3) irrevocable bank letter of credit; or
(4) any other form of security determined suitable by
the department.
(g) The commission by rule shall prescribe requirements for
alternate forms of security provided under this section.
SECTION 61. Section 361.303, Transportation Code, is
amended to read as follows:
Sec. 361.303. OWNERSHIP OF TURNPIKE PROJECT. (a) A
turnpike 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
department [authority].
(b) Notwithstanding Subsection (a), the department
[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 turnpike
project, including supplemental facilities. At the termination of
the agreement, the turnpike project, including the facilities, is
to be in a state of proper maintenance as determined by the
department [authority] and shall be returned to the department
[authority] in satisfactory condition at no further cost.
SECTION 62. Section 361.304, Transportation Code, is
amended to read as follows:
Sec. 361.304. LIABILITY FOR PRIVATE OBLIGATIONS. The
department [authority] may not incur a financial obligation for a
private entity that constructs, maintains, or operates a turnpike
project. The state[, the authority,] or a political subdivision of
the state is not liable for any financial or other obligations of a
turnpike project solely because a private entity constructs,
finances, or operates any part of the project.
SECTION 63. Section 361.305, Transportation Code, is
amended to read as follows:
Sec. 361.305. TERMS OF PRIVATE PARTICIPATION. The
department [authority] shall negotiate the terms of private
participation in a turnpike project, including:
(1) methods to determine the applicable cost, profit,
and project distribution between the private equity investors and
the department [authority];
(2) reasonable methods to determine and classify toll
rates;
(3) acceptable safety and policing standards; and
(4) other applicable professional, consulting,
construction, operation, and maintenance standards, expenses, and
costs.
SECTION 64. Section 361.306, Transportation Code, is
amended to read as follows:
Sec. 361.306. RULES, PROCEDURES, AND GUIDELINES GOVERNING
SELECTION AND NEGOTIATING PROCESS. (a) The commission [authority]
shall adopt rules, procedures, and guidelines governing selection
and negotiations to promote fairness, obtain private participants
in turnpike projects, and promote confidence among those
participants. The rules must contain criteria relating to the
qualifications of the participants and the award of the contracts
and may authorize the department [authority] to impose a fee for
reviewing proposals for private involvement in a turnpike project.
(b) The department may pay a private entity that submits an
unsuccessful response to a request for proposals a stipulated
amount of the final contract price for any costs incurred in
preparing the proposal. The stipulated amount must be stated in the
request for proposals and may not exceed the value of any work
product contained in the proposal that can, as determined by the
department, be used by the department in the performance of its
functions. After payment of the stipulated amount, the department
may make use of any work product contained in the proposal,
including the technologies, techniques, methods, processes, and
information contained in the project design.
(c) The department [authority] shall have up-to-date
procedures for participation in negotiations on turnpike projects.
(d) [(c)] The department [authority] has exclusive judgment
to determine the terms of an agreement.
(e) [(d)] The department [authority] shall include the
attorney general or the attorney general's designated
representative in a negotiation with a private participant.
SECTION 65. Section 361.307, Transportation Code, is
amended to read as follows:
Sec. 361.307. AGREEMENTS WITH PRIVATE ENTITIES AND OTHER
GOVERNMENTAL AGENCIES. The department [authority] and a private
entity jointly may enter into an agreement with another
governmental agency or entity, including a federal agency, an
agency of this or another state, including the United Mexican
States or a state of the United Mexican States, or a political
subdivision, to independently or jointly provide services, to study
the feasibility of a turnpike project, or to finance, construct,
operate, and maintain a turnpike project.
SECTION 66. Section 361.331(a), Transportation Code, is
amended to read as follows:
(a) After the department [authority] conducts a public
hearing in each affected county, [and with the approval of] the
commission[, the authority] may designate as a pooled turnpike
project two or more turnpike projects that are wholly or partly
located in the territory of:
(1) a metropolitan planning organization; or
(2) two adjacent districts of the department.
SECTION 67. Section 361.333, Transportation Code, is
amended to read as follows:
Sec. 361.333. ISSUANCE OF TURNPIKE REVENUE BONDS; PLEDGE
OF PROJECT REVENUE. Subject to this chapter, the commission
[authority] may:
(1) provide by order [resolution] for the issuance of
turnpike revenue bonds to pay all or part of the cost of a pooled
turnpike project; and
(2) pledge all or part of the revenue of the project.
SECTION 68. Sections 361.334(a) and (e), Transportation
Code, are amended to read as follows:
(a) The commission [authority] by order [resolution] may
issue turnpike revenue refunding bonds to:
(1) refund any outstanding bonds issued under this
chapter for a pooled turnpike project, including any redemption
premium on the bonds and any interest accrued as of the date of
redemption of the bonds; and
(2) construct an improvement, extension, or
enlargement to a pooled turnpike project.
(e) The commission [authority] may:
(1) issue refunding bonds in exchange for outstanding
bonds; or
(2) sell refunding bonds and use the proceeds to
redeem outstanding bonds.
SECTION 69. Section 361.335, Transportation Code, is
amended to read as follows:
Sec. 361.335. ISSUANCE OF BONDS AND PLEDGE OF TURNPIKE
PROJECT REVENUE WITHOUT REGARD TO WHETHER BONDS ARE REFUNDED.
Without regard to whether bonds are refunded, the commission
[authority] by order [resolution] may:
(1) issue bonds, of parity or otherwise, to:
(A) pay all or part of the cost of a pooled
turnpike project; or
(B) construct an improvement, extension, or
enlargement to a pooled turnpike project; and
(2) pledge all or part of the revenue of the pooled
turnpike project to the payment of the bonds.
SECTION 70. Sections 362.003(b) and (c), Transportation
Code, are amended to read as follows:
(b) This chapter is cumulative of all laws affecting the
commission, the department, and the local governmental entities,
except that in the event any other law conflicts with this chapter,
the provisions of this chapter prevail. Chapters 1201 and 1371,
Government Code, and Subchapters A, B, and C, Chapter 1207,
Government Code, apply to bonds issued by the commission under this
chapter.
(c) The department may [This chapter is cumulative of all
laws affecting the authority, and the authority is authorized to]
enter into all agreements necessary or convenient to effectuate the
purposes of this chapter. [Particularly, but not by way of
limitation, the provisions of Chapters 1201 and 1371, Government
Code, and Subchapters A-C, Chapter 1207, Government Code, and
Chapter 361 are applicable to the bonds issued by the authority
under this chapter.]
SECTION 71. Sections 362.007(a) and (b), Transportation
Code, are amended to read as follows:
(a) Under authority of Section 52, Article III, Texas
Constitution, a local governmental entity other than a nonprofit
corporation may, upon the required vote of the qualified voters, in
addition to all other debts, issue bonds or enter into and make
payments under agreements with the department [authority], not to
exceed 40 years in term, in any amount not to exceed one-fourth of
the assessed valuation of real property within the local
governmental entity, except that the total indebtedness of any
municipality shall never exceed the limits imposed by other
provisions of the constitution, and levy and collect taxes to pay
the interest thereon and provide a sinking fund for the redemption
thereof, for the purposes of construction, maintenance, and
operation of turnpike projects of the department [authority], or in
aid thereof.
(b) In addition to Subsection (a), a local governmental
entity may, within any applicable constitutional limitations,
agree with the department [authority] to issue bonds or enter into
and make payments under an agreement to construct, maintain, or
operate any portion of a turnpike project of the department
[authority].
SECTION 72. Section 362.008, Transportation Code, is
amended to read as follows:
Sec. 362.008. ADDITIONAL AGREEMENTS OF DEPARTMENT
[AUTHORITY]. The department [authority] may enter into any
agreement necessary or convenient to achieve the purposes of this
subchapter.
SECTION 73. The heading to Section 545.354, Transportation
Code, is amended to read as follows:
Sec. 545.354. AUTHORITY OF [TEXAS TURNPIKE AUTHORITY AND]
REGIONAL TOLLWAY AUTHORITIES TO ALTER SPEED LIMITS ON TURNPIKE
PROJECTS.
SECTION 74. Section 545.354(a)(1), Transportation Code, is
amended to read as follows:
(a)(1) In this section, "authority" means [the Texas
Turnpike Authority or] a regional tollway authority governed by
Chapter 366.
SECTION 75. Section 621.102(a), Transportation Code, is
amended to read as follows:
(a) The [Except as provided by Subsection (h), the]
commission may set the maximum single axle weight, tandem axle
weight, or gross weight of a vehicle, or maximum single axle weight,
tandem axle weight, or gross weight of a combination of vehicles and
loads, that may be moved over a state highway or a farm or ranch road
if the commission finds that heavier maximum weight would rapidly
deteriorate or destroy the road or a bridge or culvert along the
road. A maximum weight set under this subsection may not exceed the
maximum set by statute for that weight.
SECTION 76. Sections 222.103(i) and (j), 361.005, 361.043,
361.046, 361.0485, 361.049, 361.050, 361.051, 361.052, 361.053,
361.055, 361.102, 361.184(f), 361.231(b), 361.237, 361.308,
362.001(1), 362.052, 362.053, and 621.102(h), Transportation Code,
are repealed.
SECTION 77. This Act takes effect immediately if it
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 Act takes effect September 1, 2003.