By: Watson S.B. No. 668

(In the Senate - Filed February 15, 2007; February 28, 2007, read first time and referred to Committee on Transportation and Homeland Security; April 4, 2007, reported adversely, with favorable Committee Substitute by the following vote: Yeas 8, Nays 0; April 4, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 668 By: Watson

A BILL TO BE ENTITLED

AN ACT

relating to the operation, powers, and duties of a toll project entity.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle G, Title 6, Transportation Code, is amended by adding Chapter 371 to read as follows:

CHAPTER 371. PROVISIONS APPLICABLE TO MORE THAN

ONE TYPE OF TOLL PROJECT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 371.001. DEFINITIONS. In this chapter:

(1) "Toll project" means a toll project described by Section 201.001(b), regardless of whether the toll project is:

(A) a part of the state highway system; or

(B) subject to the jurisdiction of the department.

(2) "Toll project entity" means:

(A) the department; and

(B) a regional mobility authority under Chapter 370.

[Sections 371.002-371.050 reserved for expansion]

SUBCHAPTER B. TOLL PROJECT ENTITY OPERATIONS

Sec. 371.051. FINANCIAL REPORT. (a) A toll project entity and the metropolitan planning organization that serves the area within the boundaries of the toll project entity shall appoint a committee to review the financial data on planned and existing toll projects located within the planning area of the metropolitan planning organization. The metropolitan planning organization shall appoint to the committee as representatives of the organization the chair, the vice chair, and no more than three other members serving on the policy board of the organization. If possible, the appointed members shall be elected officials. The toll project entity shall appoint to the committee as representatives of the entity no more than five members of the governing body of the entity, or, in the case of the commission, their designees, including any or all of the elected officials serving on the governing body of the entity. The chair of the metropolitan planning organization shall chair the committee.

(b) Not later than March 31 of each year, a toll project entity shall file with the commissioners court of each county in which the entity operates a toll project a written report on the findings of the committee established under Subsection (a). At the invitation of a commissioners court of a county in which the toll project entity operates a toll project, representatives of the board and the administrative head of an entity shall appear before the commissioners court to present the report and receive questions and comments.

(c) The report required by this section may be given in conjunction with the report required by Section 370.261.

[Sections 371.052-371.100 reserved for expansion]

SUBCHAPTER C. ACQUISITION, CONSTRUCTION, AND OPERATION OF

TRANSPORTATION PROJECTS

Sec. 371.101. ACCESS TO PUBLIC PROPERTY. The state may not establish rules or terms for acquisition of the state's easements or rights-of-way that give preference to one toll project entity or type of toll project entity over another toll project entity or type of toll project entity.

Sec. 371.102. REIMBURSEMENT OF LOCAL MONEY. A toll project entity shall reimburse a local government for any money contributed by the local government to a toll project operated by the entity unless:

(1) the money is from the proceeds of bonds issued after the voters of the local government approved authorizing the issuance of bonds for the toll project in an election held for that purpose; or

(2) the governing body of the local government voted publicly to approve or ratify the financing or use of money for the toll project.

Sec. 371.103. METROPOLITAN PLANNING ORGANIZATION APPROVAL REQUIRED. (a) For each toll project of a toll project entity that is located within an area served by a metropolitan planning organization, the toll project entity must obtain approval of the policy board of the metropolitan planning organization before the entity may:

(1) lease, sell, or convey in another manner the project;

(2) contract with a person for the person to operate all or part of the project;

(3) refinance the project for the purpose of extending the time before the discharge of bonded indebtedness on the project;

(4) continue to impose tolls after the discharge of bonded indebtedness on the project unless the tolls are imposed to pay for the maintenance and operation of the project; or

(5) spend surplus revenue from the project on other transportation projects.

(b) A toll project entity may not conduct preliminary engineering or environmental studies for a toll project located in an area served by a metropolitan planning organization unless the policy board of the organization specifically authorizes the entity to conduct the preliminary engineering or environmental studies.

Sec. 371.104. TOLL RATE SUBMISSION TO METROPOLITAN PLANNING ORGANIZATION. Before a toll project entity may increase toll rates on a project, the entity must present the amount of the increase at a meeting of the policy board of the applicable metropolitan planning organization.

SECTION 2. Section 370.251, Transportation Code, is amended by adding Subsection (b-1) and amending Subsection (g) to read as follows:

(b-1) At least one of the directors must be an elected official, which may include a member of the commissioners court or another locally elected body.

(g) The following individuals are ineligible to serve as a director:

(1) [an elected official;

[(2)] a person who is not a resident of a county within the geographic area of the authority;

(2) [(3)] a department employee;

(3) [(4)] an employee of a governmental entity any part of which is located within the geographic boundaries of the authority; and

(4) [(5)] a person owning an interest in real property that will be acquired for an authority project, if it is known at the time of the person's proposed appointment that the property will be acquired for the authority project.

SECTION 3. (a) The change in law made by Subsection (b-1), Section 370.251, Transportation Code, as added by this Act, regarding the composition of the board of directors of a regional mobility authority, does not affect the entitlement of a director serving on the board immediately before the effective date of this Act to continue to serve and function as a director for the remainder of the director's term.

(b) The change in law made by Subsection (b-1), Section 370.251, Transportation Code, as added by this Act, applies only to a director appointed to the board of directors of a regional mobility authority on or after the effective date of this Act, and the first director appointed on or after the effective date of this Act must be an elected official if the board does not meet the requirements of Subsection (b-1), Section 370.251, Transportation Code, as added by this Act.

SECTION 4. This Act takes effect September 1, 2007.

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