79R15735 JTS-F
By: Krusee H.B. No. 2702
Substitute the following for H.B. No. 2702:
By: Phillips C.S.H.B. No. 2702
A BILL TO BE ENTITLED
AN ACT
relating to the construction, acquisition, financing, maintenance,
management, operation, ownership, and control of rail and highway
transportation facilities in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 91.004, Transportation Code, is amended
to read as follows:
Sec. 91.004. GENERAL POWERS. (a) 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.
(b) Except as provided by Subsection (c), money
appropriated or allocated by the United States for the construction
and maintenance in this state of rail facilities owned by any public
or private entity shall be administered by the commission and may be
spent only under the supervision of the department.
(c) Subsection (b) does not apply to money appropriated or
allocated for a fixed rail guideway system constructed by a transit
authority described by Chapter 451, a transportation authority
described by Chapter 452 or 460, or a transit department described
by Chapter 453.
SECTION 2. Section 91.051, Transportation Code, is amended
to read as follows:
Sec. 91.051. AWARDING OF CONTRACTS. Except for a contract
entered into under Section 91.052, 91.054, or 91.102 [Unless
otherwise provided by this subchapter], a contract made by the
department for the financing, design, 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.
SECTION 3. Subchapter C, Chapter 91, Transportation Code,
is amended by adding Section 91.054 to read as follows:
Sec. 91.054. COMPREHENSIVE DEVELOPMENT AGREEMENTS. (a) To
the extent and in the manner that the department may enter into a
comprehensive development agreement under Chapter 361 with regard
to a turnpike project, the department may enter into a
comprehensive development agreement under this chapter that
provides for the financing, design, acquisition, construction,
maintenance, or operation of a rail facility or system. All
provisions of Chapter 361 relating to comprehensive development
agreements for turnpike projects apply to comprehensive
development agreements for facilities under this chapter,
including provisions relating to the confidentiality of
information. Claims arising under a comprehensive development
agreement are subject to Section 201.112.
(b) The department may combine in a comprehensive
development agreement under this chapter a rail facility or system
and a turnpike project as defined by Section 361.001.
SECTION 4. Section 91.074(c), Transportation Code, is
amended to read as follows:
(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. Any portion of a rail
facility or system that is used or leased by a private person under
this subsection for a commercial purpose is not exempt from ad
valorem taxation and is subject to local zoning regulations and
building standards.
SECTION 5. Section 91.102, Transportation Code, is amended
by adding Subsection (e) to read as follows:
(e) Notwithstanding Section 11.11, Tax Code, a private
entity that leases a rail facility or system and provides rail
transportation services is exempt from taxation of or assessment on
the portion of the facility or system used for those purposes.
SECTION 6. Subchapter K, Chapter 201, Transportation Code,
is amended by adding Section 201.907 to read as follows:
Sec. 201.907. CONTRACT FOR ENFORCEMENT. The department or
a public or private entity contracted to operate a toll project may
contract with an agency of this state or a local governmental entity
for the services of peace officers employed by the agency or entity
to enforce laws related to:
(1) the regulation and control of vehicular traffic on
a state highway; and
(2) the payment of the proper toll on a toll project.
SECTION 7. Section 202.112, Transportation Code, is amended
by adding Subsection (d) to read as follows:
(d) An option to acquire property purchased under this
section or Section 227.041 may not expire later than the 10th
anniversary of the date the option was purchased and may be renewed
for subsequent periods that expire not later than the 10th
anniversary of the date the option was renewed, by agreement of the
commission and the grantor of the option or the grantor's heirs or
assigns.
SECTION 8. The heading to Section 203.004, Transportation
Code, is amended to read as follows:
Sec. 203.004. [CONTRACTS FOR MANAGEMENT OF PROPERTY USED
FOR] MITIGATION OF ADVERSE ENVIRONMENTAL IMPACTS.
SECTION 9. Section 203.004, Transportation Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) If authorized by an applicable regulatory authority, to
mitigate an adverse environmental impact that is a direct result of
a state highway improvement project, the [The] department may:
(1) pay a fee to an appropriate public agency or
private entity in lieu of acquiring or agreeing to manage property;
(2) transfer real property to an entity designated by
an agency of the United States without monetary consideration if
the property is used or is proposed to be used for mitigation
purposes; or
(3) contract with any public or private entity for the
management of property owned by the department and used for [the]
mitigation purposes [of an adverse environmental impact directly
resulting from the construction or maintenance of a state highway].
(a-1) Before the commission may acquire by purchase or
condemnation real property to mitigate an adverse environmental
impact that is a direct result of a state highway improvement
project, the department shall, if authorized by an applicable
regulatory authority, offer to purchase a conservation easement
from the owner of the real property. If the landowner does not
accept the offer to execute a conservation easement before the 61st
day after the date the offer is made, the department may acquire the
property by purchase or condemnation.
SECTION 10. Section 203.0521, Transportation Code, is
amended to read as follows:
Sec. 203.0521. ACQUISITION OF REMAINDER. (a) If a
proposed acquisition of a tract of real property under Section
203.052 would leave the owner of the property a remainder of the
tract, the department may negotiate for and purchase the severed
tract or either part of the severed tract if the department and the
owner agree on terms for the purchase. The department [commission]
shall offer to purchase a [the] remainder if the department
[commission] determines that:
(1) the remainder has little or no value or utility to
the owner; or
(2) the entire tract could be acquired for
substantially the same compensation as the partial tract.
(b) In acquiring a tract of real property under Subsection
(a), the department 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 [The department may
acquire the remainder under this section only if the owner of the
property consents to the acquisition of the remainder].
(c) Instead of a single fixed payment for real property
purchased under Subsection (a) for a toll project, the department
may agree to a payment to the owner in the form of:
(1) an intangible legal right to receive a percentage
of identified revenue attributable to the applicable segment of the
toll project; or
(2) a right to use, without charge, a segment or part
of the toll project [The department is not required to make an offer
on a remainder if an appraisal or environmental investigation
indicates the presence of hazardous materials or substances].
(d) A right to receive revenue under Subsection (c)(1) is
subject to any pledge of the revenue under the terms of a trust
agreement securing bonds issued for the applicable segment of the
toll project.
(e) The department and its designated agents may enter the
real property [a remainder] to conduct an appraisal, survey, or
environmental investigation to determine whether the department
will offer to acquire the real property [remainder].
SECTION 11. Section 227.021, Transportation Code, is
amended by adding Subsection (f) to read as follows:
(f) The department may not limit the public's direct access
to or from the Trans-Texas Corridor with the intent to benefit the
economic viability of an ancillary facility.
SECTION 12. Section 227.023, Transportation Code, is
amended by adding Subsections (d) and (e) to read as follows:
(d) For the purposes of Section 11.11, Tax Code, a portion
of a facility that is licensed or leased to a private entity, other
than a facility described by Section 227.001(4)(E) that is used for
commercial purposes, is used for a public purpose if the facility is
operated by the private entity to provide transportation or utility
services. Property that is licensed or leased to a private entity
under Section 227.082 for a commercial purpose is not exempt from ad
valorem taxation and is subject to local zoning regulations and
building standards.
(e) If the department contracts with a private entity for
the collection of a fee for the use of a facility or a combination of
facilities that are part of the Trans-Texas Corridor, the private
entity shall submit to the department for approval:
(1) a plan outlining methods the entity will use to
collect the fee, including:
(A) any charge to be imposed as a penalty for late
payment of the fee;
(B) any charge to be imposed to recover the cost
of collecting a delinquent fee; and
(C) the methodology for increasing the amount of
the fee; and
(2) any proposed change in an approved plan for
collecting the fee.
SECTION 13. Section 227.028(a), Transportation Code, is
amended to read as follows:
(a) Subject to Section 203.004(a-1), the [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.
SECTION 14. Section 227.029(b), Transportation Code, is
amended to read as follows:
(b) If the department finds it necessary to change the
location of a portion of a facility, it shall reconstruct the
facility at a [the] location that the department determines
restores the utility of the facility [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.
SECTION 15. Subchapter C, Chapter 227, Transportation Code,
is amended by adding Sections 227.032 and 227.033 to read as
follows:
Sec. 227.032. HIGHWAYS INTERSECTING TRANS-TEXAS CORRIDOR.
(a) The department shall ensure that, at each intersection of a
segment of a state highway that is designated as part of the
Trans-Texas Corridor and a segment of a highway that is designated
as an interstate highway, state highway, or United States highway,
the Trans-Texas Corridor and the interstate highway, state highway,
or United States highway are directly accessible to each other.
(b) The department shall make every reasonable effort to
connect a segment of a state highway that is designated as part of
the Trans-Texas Corridor with significant farm-to-market and
ranch-to-market roads and major county and city arterials included
in the locally adopted long-range transportation plan as determined
by the department, taking into consideration:
(1) financial feasibility;
(2) advice solicited from:
(A) county commissioners courts;
(B) governing bodies of municipalities; and
(C) metropolitan planning organizations;
(3) circuity of travel for landowners;
(4) access for emergency vehicles; and
(5) traffic volume.
Sec. 227.033. GROUNDWATER. (a) After receipt of an offer
to construct a facility for the transportation of groundwater from
the county in which the groundwater is pumped or extracted, but not
later than the 90th calendar day before entering into a lease
agreement, license agreement, or franchise agreement for the use of
any part of the Trans-Texas Corridor for that purpose, the
department shall provide written notice of the offer to:
(1) each groundwater conservation district,
subsidence district, or other local water authority having
territory in the county in which the groundwater is pumped or
extracted; and
(2) the commissioners court of the county in which the
groundwater is pumped or extracted.
(b) The department may not pump or extract, or allow the
pumping or extracting, of groundwater from the right-of-way of the
Trans-Texas Corridor unless the groundwater is needed for the
construction, operation, or maintenance of a facility other than a
public utility facility. If a well drilled and operated on the
Trans-Texas Corridor is located inside the boundaries of a
groundwater conservation district, the well is subject to the rules
of the district.
SECTION 16. Section 227.041, Transportation Code, is
amended by amending Subsection (b) and adding Subsections (d) and
(e) to read as follows:
(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 or is needed for mitigation of
adverse environmental effects, 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 from or
for ancillary facilities that directly benefit users of the
Trans-Texas Corridor.
(d) The commission may not condemn property contiguous to an
existing or planned segment of the Trans-Texas Corridor for an
ancillary facility.
(e) If the commission acquires property not immediately
needed for department purposes, the department is encouraged to
acquire an option to purchase the property under Subsection (a) or
to lease back purchased land under Section 227.043 to continue the
agricultural or recreational use of the property.
SECTION 17. Subchapter D, Chapter 227, Transportation Code,
is amended by adding Sections 227.047 and 227.048 to read as
follows:
Sec. 227.047. ACQUISITION OF REMAINDER. (a) If a proposed
acquisition of a tract of real property under Section 227.041 would
leave the owner of the property a remainder of the tract, the
department may negotiate for and purchase the remainder or any part
of the severed tract if the department and the owner agree on terms
for the purchase. Except as provided by Subsection (d), the
department shall offer to purchase a remainder if the department
determines that:
(1) the remainder has little or no value or utility to
the owner; or
(2) the entire tract could be acquired for
substantially the same compensation as the partial tract.
(b) In acquiring a tract of real property under Subsection
(a), the department 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
loss of reasonable access between portions of a bisected tract.
(c) The department and its designated agents may enter the
real property to conduct an appraisal, survey, or environmental
investigation to determine whether the department will offer to
acquire the real property.
(d) The department is not required under Subsection (a) to
make an offer on a remainder if an appraisal or environmental
investigation indicates the presence of hazardous materials or
substances.
Sec. 227.048. LOSS OF ACCESS. If a portion of a tract or
parcel of real property is acquired under this subchapter, the
department shall pay for loss of reasonable access to or from the
remaining property in determining the damage to the property owner.
SECTION 18. Section 227.082, Transportation Code, is
amended by adding Subsection (f) to read as follows:
(f) The department may lease property or grant a franchise
or license under this section only if the agreement has been
approved by the commissioners court of the county in which the
property, facility, or other part of the Trans-Texas Corridor is
located. This subsection does not apply to a lease of property or a
grant of a franchise or license to a private entity for the purpose
of operating a highway, turnpike, rail facility, or utility
facility under a comprehensive development agreement.
SECTION 19. Section 284.009, Transportation Code, as added
by Chapters 953 and 1325, Acts of the 78th Legislature, Regular
Session, 2003, is reenacted and amended to read as follows:
Sec. 284.009. CONVERSION AND TRANSFER [CONVEYANCE] OF STATE
HIGHWAY TO COUNTY [OR TOLL ROAD AUTHORITY]. (a) The commission may
transfer [convey] a nontoll state highway or a segment of a nontoll
state highway, including real property acquired to construct or
operate the highway, to [(i)] a county [or a toll road authority in
the county in which the state highway or segment is located, or (ii)
a county or toll road authority in a county adjacent to the county
in which the highway or segment is located if the county or toll
road authority in the county in which the segment or highway is
located approves the conveyance,] for the purpose of converting the
highway to a toll facility to be operated and maintained [operation
and maintenance] as a project under this chapter, if:
(1) the commission determines that the proposed
transfer [conveyance] will improve overall mobility in the region
or is the most feasible and economic means of accomplishing
necessary improvements to the highway;
(2) any funds paid by the department for the
construction, maintenance, and operation of the transferred
[conveyed] highway are repaid to the department; and
(3) the county [or toll road authority] agrees to
assume all liability and responsibility for the maintenance and
operation of the transferred [conveyed] highway on its transfer
[conveyance].
(b) A county [or toll road authority] 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. [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) The commission shall, at the time of a transfer
[conveyance], remove the highway or segment of highway from the
state highway system. After a transfer [conveyance], the
department has no liability, responsibility, or duty for the
maintenance or operation of the highway or segment.
(d) The commission may waive all or a portion of an amount
due under Subsection (a)(2) if it finds that the transfer
[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.
(e) Before transferring [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 transfer [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.
(f) A county [or toll road authority] may use toll revenue
collected from a highway or segment of highway transferred under
this section or from a highway or segment of highway described by
Subsection (j) to fund a transportation project or an air quality
project.
(g) The commission shall adopt rules implementing this
section, including criteria and guidelines for approval of a
transfer [conveyance] of a highway or segment.
(h) In this section:
(1) "Air quality project" means a project or program
of a county[, toll road authority,] or another governmental entity
that the county or other governmental entity [toll road authority]
determines will mitigate or prevent air pollution caused by the
construction, maintenance, or use of public roads within the
county.
(2) "Transportation project" means the construction,
improvement, maintenance, or operation of a transportation
facility:
(A) under the jurisdiction of a county, toll road
authority, or another governmental entity;
(B) located inside or outside the county or area
served by the toll road authority; and
(C) that the county or toll road authority
determines will improve mobility within the county or area served
by the toll road authority.
(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.
(j) The requirements of this section do not apply to a
highway or segment:
(1) that the commission by order designated as a toll
project before the contract to construct the highway or segment was
awarded, regardless of whether the highway or segment is operated
without tolls for a period before toll collection operations begin;
(2) that was designated as a toll project in a plan or
program of a metropolitan planning organization on or before May 1,
2005;
(3) that is reconstructed so that the number of
nontolled lanes on the highway or segment is greater than or equal
to the number in existence before the reconstruction;
(4) to which an adjacent facility is constructed with
a number of nontolled lanes that, when combined with the number of
nontolled lanes on the converted highway or segment, is greater
than or equal to the number in existence on the converted highway or
segment before the conversion; or
(5) that was open to traffic as a high-occupancy
vehicle lane on May 1, 2005. [This section applies only to a
nontoll state highway or a segment of a nontoll state highway that
is conveyed for purposes of creating an outer loop or connecting to
an outer loop located primarily in a county having a population of
more than three million or an adjacent county.]
SECTION 20. Subchapter A, Chapter 361, Transportation Code,
is amended by adding Sections 361.005 and 361.006 to read as
follows:
Sec. 361.005. REVENUE OF TURNPIKE PROJECT. Except as
provided by Subchapter E, toll revenue collected or received by the
department under this chapter:
(1) shall be deposited in the state highway fund; and
(2) is exempt from the application of Section 403.095,
Government Code.
Sec. 361.006. USE OF CONTRACT PAYMENTS. Payments received
by the department under a comprehensive development agreement may
be used by the department to finance the construction, maintenance,
or operation of a transportation project or air quality project in
the region.
SECTION 21. Section 361.137(c), Transportation Code, is
amended to read as follows:
(c) The department may not file a declaration of taking
before the completion of:
(1) all environmental documentation, including a
final environmental impact statement or a record of decision, that
is required by federal or state law;
(2) all public hearings and meetings, including those
held in connection with the environmental process and under
Sections 201.604 and 203.021, that are required by federal or state
law; [and]
(3) all notifications required by Section 203.022; and
(4) if the property contains a business, farm, or
ranch, a written notification to the property owner that the
occupants:
(A) will not be required to move before the 90th
day after the date of the notice; and
(B) will receive, not later than the 30th day
before the date by which the property must be vacated, a written
notice specifying the date by which the property must be vacated.
SECTION 22. Section 361.179(f), Transportation Code, is
amended to read as follows:
(f) The revenue and disbursements for each turnpike project
shall be kept separately. The revenue from one turnpike project may
not be used to pay the cost of another project except as authorized
by Sections [Section] 361.189 and 361.006.
SECTION 23. Subchapter F, Chapter 361, Transportation Code,
is amended by adding Section 361.237 to read as follows:
Sec. 361.237. OPERATION OF TURNPIKE PROJECT. The
department may enter into an agreement with one or more persons to
provide, on terms approved by the department, personnel, equipment,
systems, facilities, and services necessary to operate a turnpike
project, including the operation of toll plazas and lanes and
customer service centers and the collection of tolls.
SECTION 24. The heading to Section 361.255, Transportation
Code, is amended to read as follows:
Sec. 361.255. ELECTRONIC TOLL COLLECTION [USE AND RETURN OF
TRANSPONDERS].
SECTION 25. Section 361.255, Transportation Code, is
amended by adding Subsections (c), (d), and (e) to read as follows:
(c) The department may enter into an agreement with one or
more persons to market and sell transponders for use on department
toll roads.
(d) The department may charge reasonable fees for
administering electronic toll collection customer accounts.
(e) A contract for the acquisition, construction,
maintenance, or operation of a toll project must ensure the
confidentiality of all electronic toll collection customer account
information, including contact and payment information and trip
data.
SECTION 26. Section 361.302, Transportation Code, is
amended by adding Subsection (f) to read as follows:
(f) The department may combine in a comprehensive
development agreement under this chapter a turnpike project and a
rail facility as defined by Section 91.001.
SECTION 27. Sections 361.3022(i) and (j), Transportation
Code, are amended to read as follows:
(i) The department may enter into negotiations
[discussions] with the private entity whose proposal offers the
apparent best value for the purpose of establishing the final terms
of a comprehensive development agreement. [The discussions shall
be limited to:
[(1) incorporation of aspects of other proposals for
the purpose of achieving the overall best value for the department;
[(2) clarifications and minor adjustments in
scheduling, cash flow, and similar items; and
[(3) matters that have arisen since the submission of
the proposal.]
(j) If at any point in negotiations [discussions] under
Subsection (i)[,] it appears to the department that the highest
ranking proposal will not provide the department with the overall
best value, the department may enter into negotiations
[discussions] with the private entity submitting the next–highest
ranking proposal.
SECTION 28. Section 361.303, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) For purposes of Section 11.11, Tax Code, a portion of a
state highway that is licensed or leased to a private entity under a
comprehensive development agreement is used for a public purpose if
the highway is operated by the private entity to provide
transportation services. Any portion of a highway asset or
turnpike project that is used or leased by a private entity under
Section 202.052 or 361.179 for a commercial purpose is not exempt
from ad valorem taxation and is subject to local zoning regulations
and building standards.
SECTION 29. Section 361.305(a), Transportation Code, is
amended to read as follows:
(a) The department 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;
(2) subject to Section 227.023(e), 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 30. Section 362.0041, Transportation Code, is
transferred to Chapter 361, Transportation Code, designated as
Subchapter K, and amended to read as follows:
SUBCHAPTER K. CONVERSION OF NONTOLLED HIGHWAY
Sec. 361.401 [362.0041]. COMMISSION DETERMINATION
[CONVERSION OF PROJECTS]. The [(a) Except as provided in
Subsections (d) and (g), the] commission may by order convert a
nontolled state highway or a segment of a nontolled state highway
[the free state highway system] to a turnpike project [toll
facility] if the commission:
(1) [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; and
(2) obtains county and voter approval as required by
Section 361.406.
Sec. 361.402. APPLICABILITY OF SUBCHAPTER. The
requirements of this subchapter do not apply to a highway or
segment:
(1) that the commission by order designated as a toll
project before the contract to construct the highway or segment was
awarded, regardless of whether the highway or segment is operated
without tolls for a period before toll collection operations begin;
(2) that was designated as a toll project in a plan or
program of a metropolitan planning organization on or before May 1,
2005;
(3) that is reconstructed so that the number of
nontolled lanes on the highway or segment is greater than or equal
to the number in existence before the reconstruction;
(4) to which an adjacent facility is constructed with
a number of nontolled lanes that, when combined with the number of
nontolled lanes on the converted highway or segment, is greater
than or equal to the number in existence on the converted highway or
segment before the conversion; or
(5) that was open to traffic as a high-occupancy
vehicle lane on May 1, 2005.
Sec. 361.403. PUBLIC HEARING. [(b)] Prior to converting a
state highway or a segment of a [the] state highway [system] under
this subchapter [section], the commission shall conduct a public
hearing for the purpose of receiving comments from interested
persons concerning the proposed conversion [transfer]. Notice of
the hearing shall be published in the Texas Register, one or more
newspapers of general circulation, and a newspaper, if any,
published in the county or counties in which the involved highway is
located.
Sec. 361.404. RULES. [(c)] The commission shall adopt
rules implementing this subchapter [section], including criteria
and guidelines for the approval of a conversion of a highway.
Sec. 361.405. QUEEN ISABELLA CAUSEWAY. [(d)] The
commission may not convert the Queen Isabella Causeway in Cameron
County to a turnpike project [toll facility].
Sec. 361.406. COUNTY AND VOTER APPROVAL. [(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 state highway or a
segment of a [the] state highway [system] under this subchapter
[section] if the conversion is approved by:
(1) the commissioners court of each county within
which the highway or segment is located; and
(2) the qualified voters who vote in an election under
Section 361.407 and who reside in the limits of:
(A) a county if any part of the highway or segment
to be converted is located in an unincorporated area of the county;
or
(B) a municipality in which the highway or
segment to be converted is wholly located.
Sec. 361.407. ELECTION TO APPROVE CONVERSION. (a) If
notified by the department of the proposed conversion of a highway
or segment under this subchapter, the governing body of a county or
municipality shall order an election for the approval of the
conversion.
(b) A governing body that orders an election shall publish
notice of the election in a newspaper of general circulation
published in the county or municipality at least once each week for
three consecutive weeks, with the first publication occurring at
least 21 days before the date of the election.
(c) The proposition submitted in the election must
distinctly describe the highway or segment proposed to be converted
and the limits of that highway or segment.
(d) At an election ordered under this section, the ballot
shall be printed to permit voting for or against the proposition:
"The conversion of (highway) from (beginning location) to (ending
location) to a toll project."
(e) A proposed conversion is approved only if it is approved
by a majority of the votes cast.
(f) A notice of the election and a certified copy of the
order canvassing the election results shall be sent to the
commission.
(g) The election shall be held on the first uniform election
date under Section 41.001, Election Code, on which the county or
municipality is holding another election that occurs on or after
the 62nd day after the date the election is ordered.
SECTION 31. Section 366.035, Transportation Code, is
amended by amending Subsection (a) and adding Subsections (h) and
(i) to read as follows:
(a) Except as provided under Subsections [Subsection] (g)
and (h), 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 nontolled 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 of highway
may own, operate, and maintain the segment as a turnpike project or
system or a part of a turnpike project or system under this chapter.
(h) The commission may transfer a segment of the state
highway system to an authority under this section only if the
transfer is approved by the commissioners court of each county in
which the segment of highway to be transferred is located.
(i) The requirements of this section do not apply to a
segment of the state highway system:
(1) that the commission by order designated as a toll
project before the contract to construct the highway or segment was
awarded, regardless of whether the project is operated without
tolls for a period before toll collection operations begin;
(2) that was designated as a toll project in a plan or
program of a metropolitan planning organization on or before May 1,
2005;
(3) that is reconstructed so that the number of
nontolled lanes on the segment of highway is greater than or equal
to the number in existence before the reconstruction;
(4) to which an adjacent facility is constructed with
a number of nontolled lanes that, when combined with the number of
nontolled lanes on the converted segment of highway, is greater
than or equal to the number in existence on the converted highway or
segment before the conversion; or
(5) that was open to traffic as a high-occupancy
vehicle lane on May 1, 2005.
SECTION 32. The heading to Section 370.035, Transportation
Code, is amended to read as follows:
Sec. 370.035. [CONVERSION AND] TRANSFER OF STATE HIGHWAY
SYSTEM TURNPIKE PROJECTS.
SECTION 33. Section 370.035, Transportation Code, is
amended by amending Subsection (a) and adding Subsection (i) to
read as follows:
(a) The commission by order may transfer [convert] a
nontolled segment of the [free] state highway system [to a turnpike
project and transfer that segment] to an authority for the purpose
of converting the segment to a turnpike project, or may transfer an
existing toll [turnpike] project that is part of the state highway
system, whether previously 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 commission determines that the public has a
reasonable alternative route on nontoll roads;
(3) the authority agrees to assume all liability and
responsibility for the maintenance and operation of the turnpike
project on its transfer; [and]
(4) the transfer is approved by the governor; and
(5) in the case of a nontolled segment of the state
highway system, the transfer is approved by the commissioners court
of each county in which the segment of highway to be transferred is
located.
(i) The requirements of this section do not apply to a
nontolled segment of the state highway system:
(1) that the commission by order designated as a toll
project before the contract to construct the segment of highway was
awarded, regardless of whether the segment is operated without
tolls for a period before toll collection operations begin;
(2) that was designated as a toll project in a plan or
program of a metropolitan planning organization on or before May 1,
2005;
(3) that is reconstructed so that the number of
nontolled lanes on the segment of highway is greater than or equal
to the number in existence before the reconstruction;
(4) to which an adjacent facility is constructed with
a number of nontolled lanes that, when combined with the number of
nontolled lanes on the converted segment of highway, is greater
than or equal to the number in existence on the converted segment of
highway before the conversion; or
(5) that was open to traffic as a high-occupancy
vehicle lane on May 1, 2005.
SECTION 34. Section 11.11, Tax Code, is amended by adding
Subsection (j) to read as follows:
(j) For purposes of this section, any portion of a facility
owned by the Texas Department of Transportation that is part of the
Trans-Texas Corridor, is a rail facility or system, or is a highway
in the state highway system, and that is licensed or leased to a
private entity by that department under Chapter 91, 227, or 361,
Transportation Code, is public property used for a public purpose
if the rail facility or system, highway, or facility is operated by
the private entity to provide transportation or utility services.
Any part of a facility, rail facility or system, or state highway
that is licensed or leased to a private entity for a commercial
purpose is not exempt from taxation.
SECTION 35. Sections 91.071(b), 227.062(c)-(g), 361.180,
and 370.163(b), Transportation Code, are repealed.
SECTION 36. 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, 2005.