S.B. No. 792
 
 
 
 
AN ACT
  relating to the authority of certain counties and other entities
  with respect to certain transportation projects and to
  comprehensive development agreements with regard to such projects;
  authorizing the issuance of bonds; providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  TERM OF CERTAIN TOLL OR FEE COLLECTION
  CONTRACTS WITH PRIVATE ENTITIES
         SECTION 1.01.  Section 223.203, Transportation Code, is
  amended by adding Subsection (f-1) to read as follows:
         (f-1)  A private entity responding to a request for detailed
  proposals issued under Subsection (f) may submit alternative
  proposals based on comprehensive development agreements having
  different terms, with the alternative terms in multiples of 10
  years, ranging from 10 years from the later of the date of final
  acceptance of the project or the start of revenue operations by the
  private entity to 50 years from the later of the date of final
  acceptance of the project or the start of revenue operations by the
  private entity, not to exceed a total term of 52 years or any lesser
  term provided in a comprehensive development agreement.
         SECTION 1.02.  Subsection (h), Section 223.208,
  Transportation Code, is amended to read as follows:
         (h)  A [Except as provided by this section, a] comprehensive
  development agreement with a private participant that includes the
  collection by the private participant of tolls for the use of a toll
  project may be for a term not longer than 50 years from the later of
  the date of final acceptance of the project or the start of revenue
  operations by the private participant, not to exceed a total term of
  52 years. The comprehensive development agreement must contain
  [may be for a term not longer than 70 years if the agreement:
               [(1)  contains] an explicit mechanism for setting the
  price for the purchase by the department of the interest of the
  private participant in the comprehensive development agreement and
  related property, including any interest in a highway or other
  facility designed, developed, financed, constructed, operated, or
  maintained under the agreement[; and
               [(2)     outlines the benefit the state will derive from
  having a term longer than 50 years].
         SECTION 1.03.  Subsection (f), Section 227.023,
  Transportation Code, is amended to read as follows:
         (f)  A contract with a private entity that includes the
  collection by the private entity of a fee for the use of a facility
  may not be for a term longer than 50 years from the later of the date
  of final acceptance of the project or the start of revenue
  operations by the private entity, not to exceed a total term of 52
  years.  The contract must contain an explicit mechanism for setting
  the price for the purchase by the department of the interest of the
  private entity in the contract and related property, including any
  interest in a highway or other facility designed, developed,
  financed, constructed, operated, or maintained under the contract.
         SECTION 1.04.  Subsection (i), Section 370.302,
  Transportation Code, is amended to read as follows:
         (i)  An agreement with a private entity that includes the
  collection by the private entity of tolls for the use of a
  transportation project may not be for a term longer than 50 years
  from the later of the date of final acceptance of the project or the
  start of revenue operations by the private entity, not to exceed a
  total term of 52 years.  The agreement must contain an explicit
  mechanism for setting the price for the purchase by the authority of
  the interest of the private entity in the contract and related
  property, including any interest in a highway or other facility
  designed, developed, financed, constructed, operated, or
  maintained under the agreement.
         SECTION 1.05.  The changes in law made by this article apply
  only to a contract entered into on or after the effective date of
  this Act. A contract entered into before the effective date of this
  Act is governed by the law in effect when the contract was entered
  into, and the former law is continued in effect for that purpose.
  ARTICLE 2.  PAYMENTS TO UNSUCCESSFUL PROPOSERS FOR COMPREHENSIVE
  DEVELOPMENT AGREEMENTS
         SECTION 2.01.  Subsection (m), Section 223.203,
  Transportation Code, is amended to read as follows:
         (m)  The department may [shall] pay an unsuccessful private
  entity that submits a responsive proposal in response to a request
  for detailed proposals under Subsection (f) a stipulated amount in
  exchange for the work product contained in that proposal. A [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. The use by the
  department of any design element contained in an unsuccessful
  proposal is at the sole risk and discretion of the department and
  does not confer liability on the recipient of the stipulated amount
  under this section. After payment of the stipulated amount:
               (1)  the department owns with the unsuccessful proposer
  jointly the rights to, and may make use of any work product
  contained in, the proposal, including the technologies,
  techniques, methods, processes, ideas, and information contained
  in the project design; and
               (2)  the use by the unsuccessful proposer of any
  portion of the work product contained in the proposal is at the sole
  risk of the unsuccessful proposer and does not confer liability on
  the department.
         SECTION 2.02.  Subsection (m), Section 370.306,
  Transportation Code, is amended to read as follows:
         (m)  An authority may [shall] pay an unsuccessful private
  entity that submits a response to a request for detailed proposals
  under Subsection (f) a stipulated amount of the final contract
  price for any costs incurred in preparing that proposal. A [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 authority, be used by the
  authority in the performance of its functions. The use by the
  authority of any design element contained in an unsuccessful
  proposal is at the sole risk and discretion of the authority and
  does not confer liability on the recipient of the stipulated amount
  under this subsection. After payment of the stipulated amount:
               (1)  the authority owns the exclusive rights to, and
  may make use of any work product contained in, the proposal,
  including the technologies, techniques, methods, processes, and
  information contained in the project design; and
               (2)  the work product contained in the proposal becomes
  the property of the authority.
  ARTICLE 3.  MORATORIUM ON CERTAIN TERMS IN COMPREHENSIVE
  DEVELOPMENT AGREEMENTS OR SALE OF TOLL PROJECTS
         SECTION 3.01.  Subchapter E, Chapter 223, Transportation
  Code, is amended by adding Section 223.210 to read as follows:
         Sec. 223.210.  MORATORIUM ON CERTAIN TERMS IN COMPREHENSIVE
  DEVELOPMENT AGREEMENTS OR SALE OF TOLL PROJECTS. (a)  In this
  section:
               (1)  "Toll project" means a toll project described by
  Section 201.001(b), regardless of whether the toll project:
                     (A)  is a part of the state highway system; or
                     (B)  is subject to the jurisdiction of the
  department.
               (2)  "Toll project entity" means a public entity
  authorized by law to acquire, design, construct, finance, operate,
  or maintain a toll project, including:
                     (A)  the department;
                     (B)  a regional tollway authority;
                     (C)  a regional mobility authority; or
                     (D)  a county.
         (b)  A comprehensive development agreement entered into with
  a private participant by a toll project entity on or after May 1,
  2007, for the acquisition, design, construction, financing,
  operation, or maintenance of a toll project may not contain a
  provision permitting the private participant to operate the toll
  project or collect revenue from the toll project, regardless of
  whether the private participant operates the toll project or
  collects the revenue itself or engages a subcontractor or other
  entity to operate the toll project or collect the revenue.
         (c)  Subsection (b) does not apply to a comprehensive
  development agreement in connection with:
               (1)  a project associated with the highway designated
  as the Trinity Parkway in the City of Dallas; or
               (2)  a project:
                     (A)  that includes one or more managed lane
  facilities to be added to an existing controlled-access highway;
                     (B)  the major portion of which is located in a
  nonattainment or near-nonattainment air quality area as designated
  by the United States Environmental Protection Agency; and
                     (C)  for which the department has issued a request
  for qualifications before May 1, 2007.
         (d)  Subsection (b) does not apply to a comprehensive
  development agreement in connection with a project associated with
  any portion of the Loop 9 project that is located in a nonattainment
  air quality area as designated by the United States Environmental
  Protection Agency that includes two adjacent counties that each
  have a population of one million or more.
         (e)  Subsection (b) does not apply to a comprehensive
  development agreement in connection with a project associated with
  any portion of the State Highway 99 project.
         (f)  Subsection (b) does not apply to a comprehensive
  development agreement in connection with a project:
               (1)  on the ISTEA High Priority Corridor identified in
  Sections 1105(c)(18) and (20) of the Intermodal Surface
  Transportation Efficiency Act of 1991 (Pub. L. No. 102-240), as
  amended by Section 1211 of the Transportation Equity Act for the
  21st Century (Pub. L. No. 105-178, as amended by Title IX, Pub. L.
  No. 105-206), including land adjacent to the project needed to
  widen the project for a transportation use, if the project remains
  in a highway corridor designated by those laws; and
               (2)  located south of Refugio County.
         (g)  Subsection (b) does not apply to a comprehensive
  development agreement in connection with the State Highway 161
  project in Dallas County.
         (g-1)  Subsection (b) does not apply to a comprehensive
  development agreement in connection with a project other than a
  Trans-Texas Corridor project if:
               (1)  the project is located in the territory of a
  regional mobility authority that:
                     (A)  was created before January 1, 2005; and
                     (B)  is composed of a single county having a
  population of less than 125,000; and
               (2)  the commissioners court of the county in which the
  project is located by official action approves the exemption from
  Subsection (b).
         (h)  Notwithstanding the TxDOT/NTTA Regional Protocol
  entered into between the Texas Department of Transportation and the
  North Texas Tollway Authority and approved on August 10, 2006, by
  the authority and on August 24, 2006, by the department, Subsection
  (b) does not apply to a comprehensive development agreement entered
  into in connection with State Highway 121 if before the commission
  or the department enters into a contract for the financing,
  construction, or operation of the project with a private
  participant, an authority under Chapter 366 was granted the ability
  to finance, construct, or operate, as applicable, the portion of
  the toll project located within the boundaries of the North Texas
  Tollway Authority, and the authority was granted a period of 60 days
  from March 26, 2007, to submit a commitment to the metropolitan
  planning organization which is determined to be equal to or greater
  than any other commitment submitted prior to March 26, 2007.  If the
  financial value of the commitment is determined to be equal to or
  greater value than any other commitment submitted prior to March
  26, 2007, the commission shall allow the North Texas Tollway
  Authority to develop the project.
         (i)  Notwithstanding Subsection (c), Subsection (b) applies
  to any toll project or managed lane facility project located on any
  portion of U.S. Highway 281 that is located in a county with a
  population of more than one million in which more than 80 percent of
  the population lives in a single municipality.
         (j)  For purposes of Subsection (c)(2), "managed lane
  facility" means a facility that increases the efficiency of a
  controlled-access highway through various operational and design
  actions and that allows lane management operations to be adjusted
  at any time. The term includes high-occupancy vehicle lanes,
  single-occupant vehicle express lanes, tolled lanes, priced lanes,
  truck lanes, bypass lanes, dual use facilities, or any combination
  of those facilities.
         (k)  The department may not enter into a comprehensive
  development agreement in connection with a project described by
  Subsection (c)(2) unless the commissioners court of the county in
  which the majority of the project is located passes a resolution in
  support of the agreement that states that the commissioners court:
               (1)  acknowledges that the comprehensive development
  agreement may contain penalties for the construction of future
  competing transportation projects that are acquired or constructed
  during the term of the comprehensive development agreement; and
               (2)  knowing of those potential penalties, agrees that
  the department should execute the comprehensive development
  agreement.
         (k-1)  If the department incurs a monetary penalty for the
  construction of a competing transportation project under a
  provision in a comprehensive development agreement approved by a
  county under Subsection (k), payment of the penalty may be made only
  with money that would otherwise be allocated for projects in the
  department district in which the county is located.
         (l)  On or after the effective date of this section, a toll
  project entity may not sell or enter into a contract to sell a toll
  project of the entity to a private entity.
         (m)  A legislative study committee is created. The committee
  is composed of nine members, appointed as follows:
               (1)  three members appointed by the lieutenant
  governor;
               (2)  three members appointed by the speaker of the
  house of representatives; and
               (3)  three members appointed by the governor.
         (n)  The legislative study committee shall select a
  presiding officer from among its members and conduct public
  hearings and study the public policy implications of including in a
  comprehensive development agreement entered into by a toll project
  entity with a private participant in connection with a toll project
  a provision that permits the private participant to operate and
  collect revenue from the toll project.  In addition, the committee
  shall examine the public policy implications of selling an existing
  and operating toll project to a private entity.
         (o)  Not later than December 1, 2008, the legislative study
  committee shall:
               (1)  prepare a written report summarizing:
                     (A)  any hearings conducted by the committee;
                     (B)  any legislation proposed by the committee;
                     (C)  the committee's recommendations for
  safeguards and protections of the public's interest when a contract
  for the sale of a toll project to a private entity is entered into;
  and
                     (D)  any other findings or recommendations of the
  committee; and
               (2)  deliver a copy of the report to the governor, the
  lieutenant governor, and the speaker of the house of
  representatives.
         (p)  On December 31, 2008, the legislative study committee
  created under this section is abolished.
         (q)  This section expires September 1, 2009.
         (r)  Subsection (b) does not apply to a project that is
  located in a county with a population of 300,000 or more and
  adjacent to an international border, except that Subsection (b)
  does not apply to a project that is located in a county that has a
  population of 600,000 or more and is adjacent to an international
  border only if before May 1, 2007, the project has been adopted by
  the metropolitan planning organization for the county in the
  transportation improvement plan or metropolitan transportation
  plan.
  ARTICLE 4.  COMPREHENSIVE DEVELOPMENT AGREEMENT SUNSET DATE
         SECTION 4.01.  Section 223.201, Transportation Code, is
  amended by amending Subsection (f) and adding Subsections (h) and
  (i) to read as follows:
         (f)  Except as provided by Subsections (h) and (i), the [The]
  authority to enter into comprehensive development agreements
  provided by this section expires on August 31, 2009 [2011].
         (h)  Subsection (f) does not apply to a comprehensive
  development agreement that does not grant a private entity a right
  to finance a toll project or to a comprehensive development
  agreement in connection with a project:
               (1)  that includes one or more managed lane facilities
  to be added to an existing controlled-access highway;
               (2)  the major portion of which is located in a
  nonattainment or near-nonattainment air quality area as designated
  by the United States Environmental Protection Agency; and
               (3)  for which the department has issued a request for
  qualifications before May 1, 2007.
         (i)  The authority to enter into a comprehensive development
  agreement for a project exempted from Subsection (f) or Section
  223.210(b) expires August 31, 2011.
         SECTION 4.02.  Section 370.305, Transportation Code, is
  amended by amending Subsection (d) and adding Subsections (e) and
  (f) to read as follows:
         (d)  Except as provided by Subsections (e) and (f), the
  authority to enter into comprehensive development agreements under
  this [This] section expires on August 31, 2009 [2011].
         (e)  Subsection (d) does not apply to a comprehensive
  development agreement that does not grant a private entity a right
  to finance a toll project or a comprehensive development agreement
  in connection with a project:
               (1)  that includes one or more managed lane facilities
  to be added to an existing controlled-access highway;
               (2)  the major portion of which is located in a
  nonattainment or near-nonattainment air quality area as designated
  by the United States Environmental Protection Agency; and
               (3)  for which the department has issued a request for
  qualifications before the effective date of this subsection.
         (f)  The authority to enter into a comprehensive development
  agreement for a project exempted from Subsection (d) or Section
  223.210(b) expires August 31, 2011.
  ARTICLE 5.  PUBLIC ACCESS TO TRANS-TEXAS CORRIDOR INFORMATION
         SECTION 5.01.  Subchapter A, Chapter 227, Transportation
  Code, is amended by adding Sections 227.005 and 227.006 to read as
  follows:
         Sec. 227.005.  PUBLIC ACCESS TO INFORMATION. (a)  The
  department shall:
               (1)  seek to achieve transparency in the department's
  functions related to the Trans-Texas Corridor by providing, to the
  greatest extent possible under the public information law (Chapter
  552, Government Code) and other statutes governing the access to
  records, public access to information collected, assembled, or
  maintained by the department relating to the Trans-Texas Corridor;
               (2)  make public in a timely manner all documents,
  plans, and contracts related to the Trans-Texas Corridor; and
               (3)  make public in a timely manner all updates to the
  master development plan for the Trans-Texas Corridor, including
  financial plans.
         (b)  The department shall send electronic versions of all
  updates to the master development plan for the Trans-Texas Corridor
  to the Governor's Office of Budget and Planning, the Senate Finance
  Committee, the House Appropriations Committee, the Legislative
  Budget Board, the state auditor's office, and the comptroller in a
  timely manner.
         Sec. 227.006.  POSTING INFORMATION RELATING TO TRANS-TEXAS
  CORRIDOR ON DEPARTMENT'S WEBSITE. (a)  The department shall post
  on the department's Internet website, in a timely manner, the costs
  incurred by the department in connection with the financing,
  design, construction, maintenance, or operation of the Trans-Texas
  Corridor.
         (b)  Not later than the 10th day after the date the
  department enters into a contract relating to the Trans-Texas
  Corridor, the department shall post a copy of the contract on the
  department's Internet website.
  ARTICLE 6.  USE OF CERTAIN CONTRACT PAYMENTS AND OTHER REVENUE
         SECTION 6.01.  Section 228.0055, Transportation Code, is
  amended to read as follows:
         Sec. 228.0055.  USE OF CONTRACT PAYMENTS AND OTHER REVENUE.  
  (a)  Payments, project savings, refinancing dividends, and any
  other revenue received by the commission or the department under a
  comprehensive development agreement shall [may] be used by the
  commission or the department to finance the construction,
  maintenance, or operation of [a] transportation projects [project]
  or air quality projects [project] in the region.
         (b)  The department shall allocate the distribution of funds
  to department districts in the region that are located in the
  boundaries of the metropolitan planning organization in which the
  project that is the subject of the comprehensive development
  agreement is located based on the percentage of toll revenue from
  users from each department district of the project. To assist the
  department in determining the allocation, each entity responsible
  for collecting tolls for a project shall calculate on an annual
  basis the percentage of toll revenue from users of the project from
  each department district based on the number of recorded electronic
  toll collections.
         (c)  The commission or the department may not:
               (1)  revise the formula as provided in the department's
  unified transportation program, or its successor document, in a
  manner that results in a decrease of a department district's
  allocation because of a payment under Subsection (a); or
               (2)  take any other action that would reduce funding
  allocated to a department district because of payments received
  under a comprehensive development agreement.
         (d)  A metropolitan planning organization may not take any
  action that would reduce distribution of funds or other resources
  to a department district because of the use of a payment or other
  revenue under Subsection (a).
  ARTICLE 7.  TOLL PROJECTS IN TERRITORY OF LOCAL OR REGIONAL TOLL
  PROJECT ENTITY
         SECTION 7.01.  Subchapter A, Chapter 228, Transportation
  Code, is amended by adding Sections 228.011, 228.0111, and 228.012
  to read as follows:
         Sec. 228.011.  TOLL PROJECTS IN CERTAIN COUNTIES.  (a)  This
  section applies only to a county acting under Chapter 284 and the
  development, construction, and operation of all or a portion of any
  of the following toll projects, a component of that project, or the
  functional equivalent of that project:
               (1)  Beltway 8 Tollway East, between US 59 North and US
  90 East;
               (2)  Hardy Downtown Connector, consisting of the
  proposed direct connection from the Hardy Toll Road southern
  terminus at Loop 610 to downtown Houston;
               (3)  State Highway 288, between US 59 and Grand Parkway
  South (State Highway 99);
               (4)  US 290 Toll Lanes, between IH 610 West and the
  Grand Parkway Northwest (State Highway 99);
               (5)  Fairmont Parkway East, between Beltway 8 East and
  Grand Parkway East (State Highway 99);
               (6)  South Post Oak Road Extension, between IH 610
  South and near the intersection of Beltway 8 and Hillcroft in the
  vicinity of the Fort Bend Parkway Tollway;
               (7)  Westpark Toll Road Phase II, between Grand Parkway
  (State Highway 99) and FM 1463;
               (8)  Fort Bend Parkway, between State Highway 6 and the
  Brazos River; and
               (9)  Montgomery County Parkway, between State Highway
  242 and the Grand Parkway (State Highway 99), and if the Grand
  Parkway project has not begun construction, a nontolled extension
  of the Montgomery County Parkway to allow a connection to
  Interstate Highway 45.
         (b)  The county is the entity with the primary responsibility
  for the financing, construction, and operation of a toll project
  located in the county. A county may develop, construct, and operate
  a project described in Subsection (a) at any time, regardless of
  whether it receives a first option notice from the commission or the
  department under Subsection (e).
         (b-1)  Consistent with federal law, the department shall
  assist the county in the financing, construction, and operation of
  a toll project in the county by allowing the county to use state
  highway right-of-way owned by the department and to access the
  state highway system. The commission or the department may not
  require the county to pay for the use of the right-of-way or access,
  except to reimburse the department as provided by this subsection.
  The county shall pay an amount to reimburse the department for the
  department's actual costs to acquire the right-of-way. If the
  department cannot determine that amount, the amount shall be
  determined based on the average historical right-of-way
  acquisition values for right-of-way located in proximity to the
  project on the date of original acquisition of the right-of-way.
  Money received by the department under this subsection shall be
  deposited in the state highway fund and used in the department
  district in which the project is located.
         (c)  The department and the county must enter into an
  agreement that includes reasonable terms to accommodate the use of
  the right-of-way by the county and to protect the interests of the
  commission and the department in the use of the right-of-way for
  operations of the department, including public safety and
  congestion mitigation on the right-of-way.
         (d)  Subsection (b) does not limit the authority of the
  commission or the department to participate in the cost of
  acquiring, constructing, maintaining, or operating a project of the
  county under Chapter 284.
         (e)  Before the department may enter into a contract for the
  financing, construction, or operation of a proposed or existing
  toll project any part of which is located in the county, the
  commission or department shall provide the county the first option
  to finance, construct, or operate, as applicable, the portion of
  the toll project located in the county:
               (1)  on terms agreeable to the county; and
               (2)  in a manner determined by the county to be
  consistent with the practices and procedures by which the county
  finances, constructs, or operates a project.
         (f)  A county's right to exercise the first option under
  Subsection (e) is effective for six months after the date of the
  receipt by the county of written notice from the commission or the
  department meeting the requirements of Subsection (e) and
  describing in reasonable detail the location of the toll project, a
  projected cost estimate, sources and uses of funds, and a
  construction schedule. If a county exercises the first option with
  respect to a toll project, the county must enter into one or more
  contracts for the financing, construction, or operation of the toll
  project within two years after the date on which all environmental
  requirements necessary for the development of the project are
  secured and all legal challenges to development are concluded. A
  contract may include agreements for design of the project,
  acquisition of right-of-way, and utility relocation. If the county
  does not enter into a contract during the two-year period, the
  commission or the department may enter into a contract for the
  financing, construction, or operation of the toll project with a
  different entity.
         (g)  An agreement entered into by the county and the
  department in connection with a project under Chapter 284 that is
  financed, constructed, or operated by the county and that is on or
  directly connected to a highway in the state highway system does not
  create a joint enterprise for liability purposes.
         (h)  If the county approves, the commission may remove any
  right-of-way to be used by a county under this section from the
  state highway system. If the right-of-way used by a county under
  this section remains part of the state highway system, the county
  must comply with department design and construction standards.
         (i)  Notwithstanding an action of a county taken under this
  section, the commission or department may take any action that is
  necessary in its reasonable judgment to comply with any federal
  requirement to enable this state to receive federal-aid highway
  funds.
         (j)  Notwithstanding any other law, the commission and the
  department are not liable for any damages that result from a
  county's use of state highway right-of-way or access to the state
  highway system under this section, regardless of the legal theory,
  statute, or cause of action under which liability is asserted.
         Sec. 228.0111.  TOLL PROJECTS OF LOCAL TOLL PROJECT
  ENTITIES.  (a)  In this section:
               (1)  "Local toll project entity" means:
                     (A)  a regional tollway authority under Chapter
  366;
                     (B)  a regional mobility authority under Chapter
  370; or
                     (C)  a county acting under Chapter 284.
               (2)  "Market valuation" means the valuation of a toll
  project that:
                     (A)  is based on the terms and conditions
  established mutually by a local toll project entity and the
  department for the development, construction, and operation of a
  toll project, including the initial toll rate and the toll rate
  escalation methodology; and
                     (B)  takes into account a traffic and revenue
  study of the toll project using agreed-upon assumptions, an agreed
  project scope, market research, the estimated cost to finance,
  construct, maintain, and operate the project, and other information
  determined appropriate by the local toll project entity and the
  department.
               (3)  "Region" has the meaning assigned by Section
  228.001, except that the region of a county acting under Chapter 284
  is composed of that county and the counties that are contiguous to
  that county.
               (4)  "Toll project subaccount" means a subaccount
  created under Section 228.012.
         (b)  This section does not apply to a toll project described
  in Section 228.011(a).
         (c)  A local toll project entity is the entity with primary
  responsibility for the financing, construction, and operation of a
  toll project located within its boundaries.
         (d)  Subsection (c) does not limit the authority of the
  commission or the department to participate in the cost of
  acquiring, constructing, maintaining, or operating a toll project
  of a local toll project entity.
         (e)  Except as provided in this subsection, if a local toll
  project entity or the department determines that a toll project
  located within the boundaries of the local toll project entity
  should be developed, constructed, and operated as a toll project,
  the local toll project entity and the department mutually shall
  agree on the terms and conditions for the development,
  construction, and operation of the toll project, including the
  initial toll rate and the toll rate escalation methodology. The
  terms and conditions for the procurement and operation of the State
  Highway 99 project shall be approved by the metropolitan planning
  organization in which the project is located.
         (e-1)  If the local toll project entity and the department
  are unable to mutually agree on the terms and conditions for the
  development, construction, and operation of the toll project as
  required by Subsection (e), neither the local toll project entity
  nor the department may develop the project as a toll project.
         (f)  After agreeing on the terms and conditions for a toll
  project under Subsection (e), or after metropolitan planning
  organization approval of the terms and conditions for the State
  Highway 99 project, the local toll project entity and the
  department mutually shall determine which entity, including a third
  party under contract with the local toll project entity or the
  department, will develop a market valuation of the toll project
  that is based on the terms and conditions established under
  Subsection (e). The department and the local toll project entity
  have 90 days after the date of the receipt of a final draft version
  of the market valuation designated as "complete; subject to
  approval by the Texas Department of Transportation and (name of
  local toll project entity)" to mutually approve the market
  valuation included in the draft version or, in the alternative,
  negotiate and agree on a different market valuation.  If the
  department and the local toll project entity are unable to agree on
  a market valuation within the 90-day period, the market valuation
  in the draft version is considered to be final for purposes of this
  section and mutually approved on the last day of that period.
         (f-1)  The department and a local toll project entity may
  agree to waive the requirement to develop a market valuation under
  this section.
         (f-2)  If the department and the local toll project entity
  are unable to mutually determine which entity will develop the
  market valuation of the toll project under Subsection (f), neither
  the department nor the local toll project entity may develop,
  construct, or operate the project as a toll project.
         (f-3)  A third party that develops a market valuation under
  Subsection (f) may not:
               (1)  invest money in a private entity that participates
  in the financing, development, construction, or operation of that
  toll project, either directly or indirectly through investment in
  the entity's equities or obligations, provided that fees for
  services are not considered direct or indirect investment; or
               (2)  directly or indirectly through one or more
  intermediaries, control, be controlled by, or be under common
  control with a private entity that participates in the financing,
  development, construction, or operation of that toll project, as
  the term "control" is described by Section 21.605, Business
  Organizations Code.
         (g)  A local toll project entity has the first option to
  develop, finance, construct, and operate a toll project under the
  terms and conditions established under Subsection (e). A local
  toll project entity, other than a regional mobility authority under
  Chapter 370, has six months after the date that the market valuation
  is mutually approved under Subsection (f) to decide whether to
  exercise the option. For a project proposed to be located within
  the boundaries of a regional mobility authority under Chapter 370,
  after the market valuation is final under Subsection (f), the
  metropolitan planning organization for the region in which the
  project is located shall determine whether the toll project should
  be developed using the business terms incorporated in the market
  valuation. If the metropolitan planning organization determines
  that the toll project should be developed using the business terms
  in the market valuation, the regional mobility authority has six
  months after the date the metropolitan planning organization
  decides whether to exercise the option to develop the project. If a
  local toll project entity exercises the option with respect to a
  toll project under this subsection, the local toll project entity,
  after exercising the option and within two years after the date on
  which all environmental requirements necessary for the development
  of the toll project are secured and all legal challenges to
  development are concluded, must:
               (1)  enter into a contract for the construction of the
  toll project; and
               (2)  either:
                     (A)  commit to make a payment into a toll project
  subaccount in an amount equal to the value of the toll project as
  determined by the market valuation, to be used by the department to
  finance the construction of additional transportation projects in
  the region in which the toll project is located;
                     (B)  commit to construct, within the period agreed
  to by the local toll project entity and the department, additional
  transportation projects in the region in which the toll project is
  located with estimated construction costs equal to the market
  valuation of the toll project; or
                     (C)  for a regional mobility authority under
  Chapter 370, commit to using, for a period to be agreed upon by the
  department and the authority, all surplus revenue from the toll
  project for the purposes authorized by Section 370.174(b) in an
  amount equal to the valuation of the project.
         (h)  If a local toll project entity exercises the option with
  respect to a toll project under Subsection (g) and has not begun the
  environmental review of the project, the local toll project entity
  shall begin the environmental review within six months of
  exercising the option.
         (i)  If a local toll project entity does not exercise the
  option to develop, finance, construct, and operate a toll project
  under Subsection (g), or does not enter into a contract for the
  construction of the project and make a commitment described in
  Subsection (g)(2) within the two-year period prescribed in
  Subsection (g), the department has the option to develop, finance,
  construct, and operate the toll project under the terms and
  conditions agreed to under Subsection (e). The department has two
  months after the date the local toll project entity fails to
  exercise its option or enter into a construction contract and make a
  commitment described in Subsection (g)(2) to decide whether to
  exercise its option. If the department exercises its option with
  respect to a toll project under this subsection, the department,
  after exercising the option and within two years after the date on
  which all environmental requirements necessary for the development
  of the project are secured and all legal challenges to such
  development are concluded, must:
               (1)  enter into a contract for the construction of the
  toll project; and
               (2)  either:
                     (A)  commit to make a payment into the toll
  project subaccount in an amount equal to the value of the toll
  project as determined by the market valuation, to be used by the
  department to finance the construction of additional
  transportation projects in the region in which the toll project is
  located; or
                     (B)  commit to construct, within the period agreed
  to by the local toll project entity and the department, additional
  transportation projects in the region in which the toll project is
  located with estimated construction costs equal to the market
  valuation of the toll project.
         (j)  If the department does not exercise the option to
  develop, finance, construct, and operate a toll project under
  Subsection (i), or does not enter into a contract for the
  construction of the project and make a commitment described in
  Subsection (i)(2) within the two-year period prescribed in
  Subsection (i), the local toll project entity and the department
  may meet again for the purpose of agreeing on revised terms and
  conditions for the development, construction, and operation of the
  toll project, and the local toll project entity and the department
  shall follow the process prescribed in Subsections (f)-(i).
         (k)  Consistent with federal law, the commission and the
  department shall assist a local toll project entity in the
  development, financing, construction, and operation of a toll
  project for which the local toll project entity has exercised its
  option to develop, finance, construct, and operate the project
  under Subsection (g) by allowing the local toll project entity to
  use state highway right-of-way and to access the state highway
  system as necessary to construct and operate the toll project.
  Notwithstanding any other law, the toll project entity and the
  commission may agree to remove the project from the state highway
  system and transfer ownership to the local toll project entity. The
  commission or the department may not require a local toll project
  entity to pay for the use of the right-of-way or access, except to
  reimburse the department for actual costs incurred or to be
  incurred by the department that are owed to a third party, including
  the federal government, as a result of that use by the local toll
  project entity. If a local toll project entity exercises its option
  to develop, construct, and operate a toll project under this
  section, the following shall be deducted from the amount of the toll
  project entity commitment under Subsection (g)(2):
               (1)  an amount equal to the amount reimbursed under
  this subsection, if any; and
               (2)  with respect to a county operating under Chapter
  284, an amount equal to the costs of any road, street, or highway
  project undertaken by the county under Section 284.0031 before the
  acceptance of the market valuation, if the county requests a
  deduction and specifies in reasonable detail a description and cost
  of the project and the department agrees that any such road, street,
  or highway project constitutes an additional transportation
  project under Subsection (g)(2)(B).
         (l)  A local toll project entity shall enter into an
  agreement with the department for any project for which the entity
  has exercised its option to develop, finance, construct, and
  operate the project under Subsection (g) and for which the entity
  intends to use state highway right-of-way. An agreement entered
  into under this subsection must contain provisions necessary to
  ensure that the local toll project entity's construction,
  maintenance, and operation of the project complies with the
  requirements of applicable federal and state law.
         (m)  Notwithstanding any other law, the commission and the
  department are not liable for any damages that result from a local
  toll project entity's use of state highway right-of-way or access
  to the state highway system under this section, regardless of the
  legal theory, statute, or cause of action under which liability is
  asserted.
         (n)  An agreement entered into by a local toll project entity
  and the department in connection with a toll project that is
  financed, constructed, or operated by the local toll project entity
  and that is on or directly connected to a highway in the state
  highway system does not create a joint enterprise for liability
  purposes.
         (o)  Notwithstanding an action of a local toll project entity
  taken under this section, the commission or department may take any
  action that in its reasonable judgment is necessary to comply with
  any federal requirement to enable this state to receive federal-aid
  highway funds.
         (p)  A local toll project entity and the department may issue
  bonds, including revenue bonds and refunding bonds, or other
  obligations, and enter into credit agreements, to pay any costs
  associated with a project under this section, including the
  payments deposited to the applicable toll project subaccount, and
  the costs to construct, maintain, and operate additional
  transportation projects that the local toll project entity or the
  department commits to undertake in accordance with this section, as
  follows:
               (1)  the bonds or other obligations and the proceedings
  authorizing the bonds or other obligations must be submitted to the
  attorney general for review and approval as required by Chapter
  1202, Government Code;
               (2)  the bonds or other obligations may be payable from
  and secured by revenue of one or more projects of the local toll
  project entity or the department, including toll road system
  revenues, or such other legally available revenue or funding
  sources as the local toll project entity or department shall
  determine;
               (3)  the bonds or other obligations may mature serially
  or otherwise not more than 30 years from their date of issuance;
               (4)  the bonds or other obligations are not a debt of
  and do not create a claim for payment against the revenue or
  property of the local toll project entity or the department, other
  than the revenue sources pledged for which the bonds or other
  obligations are issued; and
               (5)  the local toll project entity and the department
  may issue obligations and enter into credit agreements under
  Chapter 1371, Government Code, and for purposes of that chapter, a
  local toll project entity and the department shall be considered a
  public utility and any cost authorized to be financed in accordance
  with this subsection is an eligible project.
         (q)  The provisions of this section requiring metropolitan
  planning organization approval of the terms and conditions for the
  State Highway 99 project expire August 31, 2009.
         (r)  This section expires August 31, 2011.
         (s)  This section does not apply to:
               (1)  any project for which the department has issued a
  request for qualifications or request for competing proposals and
  qualifications before May 1, 2007, except for the State Highway 161
  project in Dallas County;
               (2)  the eastern extension of the President George Bush
  Turnpike from State Highway 78 to IH 30 in Dallas County;
               (3)  the Phase 3 and 4 extensions of the Dallas North
  Tollway in Collin and Denton Counties from State Highway 121 to the
  Grayson County line, and the planned future extension into Grayson
  County, regardless of which local toll project entity develops the
  extension into Grayson County;
               (4)  the Lewisville Lake Bridge (and portions of FM 720
  widening projects) in Denton County; or
               (5)  the Southwest Parkway (State Highway 121) in
  Tarrant County from Dirks Road/Altamesa Boulevard to IH 30.
         Sec. 228.012.  PROJECT SUBACCOUNTS. (a)  The department
  shall create a separate account in the state highway fund to hold
  payments received by the department under a comprehensive
  development agreement, the surplus revenue of a toll project or
  system, and payments received under Sections 228.0111(g)(2) and
  (i)(2). The department shall create subaccounts in the account for
  each project, system, or region. Interest earned on money in a
  subaccount shall be deposited to the credit of that subaccount.
         (b)  The department shall hold money in a subaccount in trust
  for the benefit of the region in which a project or system is
  located and may assign the responsibility for allocating money in a
  subaccount to a metropolitan planning organization in which the
  region is located. Except as provided by Subsection (c), money
  shall be allocated to projects authorized by Section 228.0055 or
  Section 228.006, as applicable.
         (c)  Money in a subaccount received from a county or the
  department under Section 228.0111 in connection with a project for
  which a county acting under Chapter 284 has the first option shall
  be allocated to transportation projects located in the county and
  the counties contiguous to that county.
         (d)  Not later than January 1 of each odd-numbered year, the
  department shall submit to the Legislative Budget Board, in the
  format prescribed by the Legislative Budget Board, a report on cash
  balances in the subaccounts created under this section and
  expenditures made with money in those subaccounts.
         (e)  The commission or the department may not:
               (1)  revise the formula as provided in the department's
  unified transportation program or a successor document in a manner
  that results in a decrease of a department district's allocation
  because of the deposit of a payment into a project subaccount or a
  commitment to undertake an additional transportation project under
  Section 228.0111; or
               (2)  take any other action that would reduce funding
  allocated to a department district because of the deposit of a
  payment received from the department or local toll project entity
  into a project subaccount or a commitment to undertake an
  additional transportation project under Section 228.0111.
         SECTION 7.02.  Section 228.0111, Transportation Code, as
  added by this article, applies to a project associated with State
  Highway 161 in Dallas County.
  ARTICLE 8.  COUNTY AUTHORITY IN CONNECTION WITH CERTAIN TOLL
  PROJECTS
         SECTION 8.01.  Subdivision (3), Section 284.001,
  Transportation Code, is amended to read as follows:
               (3)  "Project" means:
                     (A)  a causeway, bridge, tunnel, turnpike,
  highway, ferry, or any combination of those facilities, including:
                           (i) [(A)]  a necessary overpass, underpass,
  interchange, entrance plaza, toll house, service station,
  approach, fixture, and accessory and necessary equipment that has
  been designated as part of the project by order of a county;
                           (ii) [(B)]  necessary administration,
  storage, and other buildings that have been designated as part of
  the project by order of a county; and
                           (iii) [(C)]  all property rights,
  easements, and related interests acquired; or
                     (B)  a turnpike project or system, as those terms
  are defined by Section 370.003.
         SECTION 8.02.  Section 284.003, Transportation Code, is
  amended to read as follows:
         Sec. 284.003.  PROJECT AUTHORIZED; CONSTRUCTION, OPERATION,
  AND COST.  (a)  A county, acting through the commissioners court of
  the county, or a local government corporation, without state
  approval, supervision, or regulation, may:
               (1)  construct, acquire, improve, operate, maintain,
  or pool a project located:
                     (A)  exclusively in the county;
                     (B)  in the county and outside the county; or
                     (C)  in one or more counties adjacent to the
  county;
               (2)  issue tax bonds, revenue bonds, or combination tax
  and revenue bonds to pay the cost of the construction, acquisition,
  or improvement of a project;
               (3)  impose tolls or charges as otherwise authorized by
  this chapter;
               (4)  construct a bridge over a deepwater [deep water]
  navigation channel, if the bridge does not hinder maritime
  transportation; [or]
               (5)  construct, acquire, or operate a ferry across a
  deepwater navigation channel;
               (6)  in connection with a project, on adoption of an
  order exercise the powers of a regional mobility authority
  operating under Chapter 370; or
               (7)  enter into a comprehensive development agreement
  with a private entity to design, develop, finance, construct,
  maintain, repair, operate, extend, or expand a proposed or existing
  project in the county to the extent and in the manner applicable to
  the department under Chapter 223 or to a regional tollway authority
  under Chapter 366.
         (b)  The county or a local government corporation may
  exercise a power provided by Subsection (a)(6) only in a manner
  consistent with the other powers provided by this chapter. To the
  extent of a conflict between this chapter and Chapter 370, this
  chapter prevails.
         (c)  A project or any portion of a project that is owned by
  the county and licensed or leased to a private entity or operated by
  a private entity under this chapter to provide transportation
  services to the general public is public property used for a public
  purpose and exempt from taxation by this state or a political
  subdivision of this state.
         (d)  If the county constructs, acquires, improves, operates,
  maintains, or pools a project under this chapter, before December
  31 of each even-numbered year the county shall submit to the
  department a plan for the project that includes the time schedule
  for the project and describes the use of project funds. The plan
  may provide for and permit the use of project funds and other money,
  including state or federal funds, available to the county for
  roads, streets, highways, and other related facilities in the
  county that are not part of a project under this chapter. A plan is
  not subject to approval, supervision, or regulation by the
  commission or the department, except that:
               (1)  any use of state or federal highway funds must be
  approved by the commission;
               (2)  any work on a highway in the state highway system
  must be approved by the department; and
               (3)  the department shall supervise and regulate work
  on a highway in the state highway system.
         (e)  Except as provided by federal law, an action of a county
  taken under this chapter is not subject to approval, supervision,
  or regulation by a metropolitan planning organization.
         (f)  The county may enter into a protocol or other agreement
  with the commission or the department to implement this section
  through the cooperation of the parties to the agreement.
         (g)  An action of a county taken under this chapter must
  comply with the requirements of applicable federal law.  The
  foregoing compliance requirement shall apply to the role of
  metropolitan planning organizations under federal law, including
  the approval of projects for conformity to the state implementation
  plan relating to air quality, the use of toll revenue, and the use
  of the right-of-way of and access to federal-aid highways.  
  Notwithstanding an action of a county taken under this chapter, the
  commission or department may take any action that is necessary in
  its reasonable judgment to comply with any federal requirement to
  enable the state to receive federal-aid highway funds.
         SECTION 8.03.  Subchapter A, Chapter 284, Transportation
  Code, is amended by adding Sections 284.0031 and 284.0032 and
  amending Section 284.004 to read as follows:
         Sec. 284.0031.  OTHER ROAD, STREET, OR HIGHWAY PROJECTS.
  (a)  The commissioners court of a county or a local government
  corporation, without state approval, supervision, or regulation
  may:
               (1)  authorize the use or pledge of surplus revenue to
  pay or finance the costs of a project for the study, design,
  construction, maintenance, repair, or operation of roads, streets,
  highways, or other related facilities that are not part of a project
  under this chapter; and
               (2)  prescribe terms for the use of the surplus
  revenue, including the manner in which revenue from a project
  becomes surplus revenue and the manner in which the roads, streets,
  highways, or other related facilities are to be studied, designed,
  constructed, maintained, repaired, or operated.
         (b)  To implement this section, a county may enter into an
  agreement with the commission, the department, a local governmental
  entity, or another political subdivision of this state.
         (c)  A county may not take an action under this section that
  violates or impairs a bond resolution, trust agreement, or
  indenture that governs the use of the revenue of a project.
         (d)  Except as provided by this section, a county has the
  same powers, including the powers to finance and to encumber
  surplus revenue, and may use the same procedures with respect to the
  study, financing, design, construction, maintenance, repair, or
  operation of a road, street, highway, or other related facility
  under this section as are available to the county with respect to a
  project under this chapter.
         (e)  Notwithstanding other provisions of this section:
               (1)  any work on the state highway system must be
  approved by the department; and
               (2)  the department shall supervise and regulate any
  work on a highway in the state highway system.
         Sec. 284.0032.  TRANS-TEXAS CORRIDOR PROJECTS. If a county
  is requested by the commission to participate in the development of
  a project under this chapter that has been designated as part of the
  Trans-Texas Corridor, the county has, in addition to all powers
  granted by this chapter, all powers of the department related to the
  development of a project that has been designated as part of the
  Trans-Texas Corridor.
         Sec. 284.004.  USE OF COUNTY PROPERTY.  (a)  Notwithstanding
  any other law, a county may use any county property for a project
  under this chapter, regardless of when or how the property is
  acquired.
         (b)  In addition to authority granted by other law, a county
  may use state highway right-of-way and may access state highway
  right-of-way in accordance with Sections 228.011 and 228.0111.
         SECTION 8.04.  Subsections (c) and (d), Section 284.008,
  Transportation Code, are amended to read as follows:
         (c)  Except as provided by Subsection (d), a project becomes
  a part of the state highway system and the commission shall maintain
  the project without tolls when:
               (1)  all of the bonds and interest on the bonds that are
  payable from or secured by revenues of the project have been paid by
  the issuer of the bonds or another person with the consent or
  approval of the issuer; or
               (2)  a sufficient amount for the payment of all bonds
  and the interest on the bonds to maturity has been set aside by the
  issuer of the bonds or another person with the consent or approval
  of the issuer in a trust fund held for the benefit of the
  bondholders.
         (d)  A [Before construction on a project under this chapter
  begins, a] county may request that the commission adopt an order
  stating that a [the] project will not become part of the state
  highway system under Subsection (c). If the commission adopts the
  order:
               (1)  Section 362.051 does not apply to the project;
               (2)  the project must be maintained by the county; and
               (3)  the project will not become part of the state
  highway system unless the county transfers the project under
  Section 284.011.
         SECTION 8.05.  Subsections (b) and (c), Section 284.065,
  Transportation Code, are amended to read as follows:
         (b)  An existing project may be pooled in whole or in part
  with a new project or another existing project.
         (c)  A project may [not] be pooled more than once.
  ARTICLE 9.  REGIONAL TOLLWAY AUTHORITIES
         SECTION 9.01.  Section 366.003, Transportation Code, is
  amended by adding Subdivision (9-a) to read as follows:
               (9-a)  "Surplus revenue" means the revenue of a
  turnpike project or system remaining at the end of any fiscal year
  after all required payments and deposits have been made in
  accordance with all bond resolutions, trust agreements,
  indentures, credit agreements, or other instruments and
  contractual obligations of the authority payable from the revenue
  of the turnpike project or system.
         SECTION 9.02.  Section 366.301, Transportation Code, is
  amended by adding Subsection (e) to read as follows:
         (e)  An action of an authority taken under this chapter must
  comply with the requirements of applicable federal law, including
  provisions relating to the role of metropolitan planning
  organizations under federal law and the approval of projects for
  conformity with the state implementation plan relating to air
  quality, the use of toll revenue, and the use of the right-of-way of
  and access to federal-aid highways.  Notwithstanding an action of
  an authority taken under this chapter, the commission or the
  department may take any action that in its reasonable judgment is
  necessary to comply with any federal requirement to enable this
  state to receive federal-aid highway funds.
         SECTION 9.03.  Chapter 366, Transportation Code, is amended
  by adding Subchapter H to read as follows:
  SUBCHAPTER H.  COMPREHENSIVE DEVELOPMENT AGREEMENTS
         Sec. 366.401.  COMPREHENSIVE DEVELOPMENT AGREEMENTS.
  (a)  An authority may use a comprehensive development agreement
  with a private entity to design, develop, finance, construct,
  maintain, repair, operate, extend, or expand a turnpike project.
         (b)  A comprehensive development agreement is an agreement
  with a private entity that, at a minimum, provides for the design,
  construction, rehabilitation, expansion, or improvement of a
  turnpike project and may also provide for the financing,
  acquisition, maintenance, or operation of a turnpike project.
         (c)  An authority may negotiate provisions relating to
  professional and consulting services provided in connection with a
  comprehensive development agreement.
         (d)  An authority may authorize the investment of public and
  private money, including debt and equity participation, to finance
  a function described by this section.
         Sec. 366.402.  PROCESS FOR ENTERING INTO COMPREHENSIVE
  DEVELOPMENT AGREEMENTS. (a)  If an authority enters into a
  comprehensive development agreement, the authority shall use a
  competitive procurement process that provides the best value for
  the authority. An authority may accept unsolicited proposals for a
  proposed turnpike project or solicit proposals in accordance with
  this section.
         (b)  An authority shall establish rules and procedures for
  accepting unsolicited proposals that require the private entity to
  include in the proposal:
               (1)  information regarding the proposed project
  location, scope, and limits;
               (2)  information regarding the private entity's
  qualifications, experience, technical competence, and capability
  to develop the project; and
               (3)  any other information the authority considers
  relevant or necessary.
         (c)  An authority shall publish a notice advertising a
  request for competing proposals and qualifications in the Texas
  Register that includes the criteria to be used to evaluate the
  proposals, the relative weight given to the criteria, and a
  deadline by which proposals must be received if:
               (1)  the authority decides to issue a request for
  qualifications for a proposed project; or
               (2)  the authority authorizes the further evaluation of
  an unsolicited proposal.
         (d)  A proposal submitted in response to a request published
  under Subsection (c) must contain, at a minimum, the information
  required by Subsections (b)(2) and (3).
         (e)  An authority may interview a private entity submitting
  an unsolicited proposal or responding to a request under Subsection
  (c). The authority shall evaluate each proposal based on the
  criteria described in the request for competing proposals and
  qualifications and may qualify or shortlist private entities to
  submit detailed proposals under Subsection (f). The authority must
  qualify or shortlist at least two private entities to submit
  detailed proposals for a project under Subsection (f) unless the
  authority does not receive more than one proposal or one response to
  a request under Subsection (c).
         (f)  An authority shall issue a request for detailed
  proposals from all private entities qualified or shortlisted under
  Subsection (e) if the authority proceeds with the further
  evaluation of a proposed project. A request under this subsection
  may require additional information the authority considers
  relevant or necessary, including information relating to:
               (1)  the private entity's qualifications and
  demonstrated technical competence;
               (2)  the feasibility of developing the project as
  proposed;
               (3)  engineering or architectural designs;
               (4)  the private entity's ability to meet schedules; or
               (5)  a financial plan, including costing methodology
  and cost proposals.
         (g)  In issuing a request for proposals under Subsection (f),
  an authority may solicit input from entities qualified under
  Subsection (e) or any other person. An authority may also solicit
  input regarding alternative technical concepts after issuing a
  request under Subsection (f).
         (h)  An authority shall evaluate each proposal based on the
  criteria described in the request for detailed proposals and select
  the private entity whose proposal offers the apparent best value to
  the authority.
         (i)  An authority may enter into negotiations with the
  private entity whose proposal offers the apparent best value.
         (j)  If at any point in negotiations under Subsection (i), it
  appears to the authority that the highest ranking proposal will not
  provide the authority with the overall best value, the authority
  may enter into negotiations with the private entity submitting the
  next-highest-ranking proposal.
         (k)  An authority may withdraw a request for competing
  proposals and qualifications or a request for detailed proposals at
  any time. The authority may then publish a new request for
  competing proposals and qualifications.
         (l)  An authority may require that an unsolicited proposal be
  accompanied by a nonrefundable fee sufficient to cover all or part
  of its cost to review the proposal.
         (m)  An authority may pay an unsuccessful private entity that
  submits a responsive proposal in response to a request for detailed
  proposals under Subsection (f) a stipulated amount in exchange for
  the work product contained in that proposal. A 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 authority, be used by the authority in the
  performance of its functions. The use by the authority of any
  design element contained in an unsuccessful proposal is at the sole
  risk and discretion of the authority and does not confer liability
  on the recipient of the stipulated amount under this subsection.
  After payment of the stipulated amount:
               (1)  the authority, with the unsuccessful private
  entity, jointly owns the rights to, and may make use of any work
  product contained in, the proposal, including the technologies,
  techniques, methods, processes, ideas, and information contained
  in the project design; and
               (2)  the use by the unsuccessful private entity of any
  portion of the work product contained in the proposal is at the sole
  risk of the unsuccessful private entity and does not confer
  liability on the authority.
         (n)  An authority may prescribe the general form of a
  comprehensive development agreement and may include any matter the
  authority considers advantageous to the authority. The authority
  and the private entity shall finalize the specific terms of a
  comprehensive development agreement.
         (o)  Section 366.185 and Subchapter A, Chapter 223, of this
  code and Chapter 2254, Government Code, do not apply to a
  comprehensive development agreement entered into under this
  subchapter.
         Sec. 366.403.  CONFIDENTIALITY OF INFORMATION. (a)  To
  encourage private entities to submit proposals under this
  subchapter, 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 until a
  final contract for a proposed project is entered into:
               (1)  all or part of a proposal that is submitted by a
  private entity for a comprehensive development agreement, except
  information provided under Sections 366.402(b)(1) and (2), unless
  the private entity consents to the disclosure of the information;
               (2)  supplemental information or material submitted by
  a private entity in connection with a proposal for a comprehensive
  development agreement unless the private entity consents to the
  disclosure of the information or material; and
               (3)  information created or collected by an authority
  or its agent during consideration of a proposal for a comprehensive
  development agreement or during the authority's preparation of a
  proposal to the department relating to a comprehensive development
  agreement.
         (b)  After an authority completes its final ranking of
  proposals under Section 366.402(h), the final rankings of each
  proposal under each of the published criteria are not confidential.
         Sec. 366.404.  PERFORMANCE AND PAYMENT SECURITY.
  (a)  Notwithstanding the requirements of Subchapter B, Chapter
  2253, Government Code, an authority shall require a private entity
  entering into a comprehensive development agreement under this
  subchapter to provide a performance and payment bond or an
  alternative form of security in an amount sufficient to:
               (1)  ensure the proper performance of the agreement;
  and
               (2)  protect:
                     (A)  the authority; and
                     (B)  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)  A performance and payment bond or alternative form of
  security shall be in an amount equal to the cost of constructing or
  maintaining the project.
         (c)  If an authority determines that it is impracticable for
  a private entity to provide security in the amount described by
  Subsection (b), the authority 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, or instead of, performance and payment
  bonds, an authority may require the following alternative forms of
  security:
               (1)  a cashier's check drawn on a financial entity
  specified by the authority;
               (2)  a United States bond or note;
               (3)  an irrevocable bank letter of credit; or
               (4)  any other form of security determined suitable by
  the authority.
         (g)  An authority by rule shall prescribe requirements for
  alternative forms of security provided under this section.
         Sec. 366.405.  OWNERSHIP OF TURNPIKE PROJECTS. (a)  A
  turnpike project that is the subject of a comprehensive development
  agreement with a private entity, including the facilities acquired
  or constructed on the project, is public property and is owned by
  the authority.
         (b)  Notwithstanding Subsection (a), an authority may enter
  into an agreement that provides for the lease of rights-of-way, the
  granting of easements, the issuance of franchises, licenses, or
  permits, or any lawful uses to enable a private entity to construct,
  operate, and maintain a turnpike project, including supplemental
  facilities. At the termination of the agreement, the turnpike
  project, including the facilities, are to be in a state of proper
  maintenance as determined by the authority and shall be returned to
  the authority in satisfactory condition at no further cost.
         Sec. 366.406.  LIABILITY FOR PRIVATE OBLIGATIONS. An
  authority may not incur a financial obligation for a private entity
  that designs, develops, finances, constructs, operates, or
  maintains a turnpike project. The authority or a political
  subdivision of the state is not liable for any financial or other
  obligation of a turnpike project solely because a private entity
  constructs, finances, or operates any part of the project.
         Sec. 366.407.  TERMS OF PRIVATE PARTICIPATION. (a)  An
  authority shall negotiate the terms of private participation in a
  turnpike project under this subchapter, including:
               (1)  methods to determine the applicable cost, profit,
  and project distribution among the private participants and the
  authority;
               (2)  reasonable methods to determine and classify toll
  rates and the responsibility for setting toll rates;
               (3)  acceptable safety and policing standards; and
               (4)  other applicable professional, consulting,
  construction, operation, and maintenance standards, expenses, and
  costs.
         (b)  A comprehensive development agreement entered into
  under this subchapter may include any provision the authority
  considers appropriate, including a provision:
               (1)  providing for the purchase by the authority, under
  terms and conditions agreed to by the parties, of the interest of a
  private participant in the comprehensive development agreement and
  related property, including any interest in a turnpike project
  designed, developed, financed, constructed, operated, or
  maintained under the comprehensive development agreement;
               (2)  establishing the purchase price, as determined in
  accordance with the methodology established by the parties in the
  comprehensive development agreement, for the interest of a private
  participant in the comprehensive development agreement and related
  property;
               (3)  providing for the payment of an obligation
  incurred under the comprehensive development agreement, including
  an obligation to pay the purchase price for the interest of a
  private participant in the comprehensive development agreement,
  from any available source, including securing the obligation by a
  pledge of revenues of the authority derived from the applicable
  project, which pledge shall have priority as established by the
  authority;
               (4)  permitting the private participant to pledge its
  rights under the comprehensive development agreement;
               (5)  concerning the private participant's right to
  operate and collect revenue from the turnpike project; and
               (6)  restricting the right of the authority to
  terminate the private participant's right to operate and collect
  revenue from the turnpike project unless and until any applicable
  termination payments have been made.
         (c)  An authority may enter into a comprehensive development
  agreement under this subchapter with a private participant only if
  the project is identified in the department's unified
  transportation program or is located on a transportation corridor
  identified in the statewide transportation plan.
         (d)  Section 366.406 does not apply to an obligation of an
  authority under a comprehensive development agreement, nor is an
  authority otherwise constrained from issuing bonds or other
  financial obligations for a turnpike project payable solely from
  revenues of that turnpike project or from amounts received under a
  comprehensive development agreement.
         (e)  Notwithstanding any other law, and subject to
  compliance with the dispute resolution procedures set out in the
  comprehensive development agreement, an obligation of an authority
  under a comprehensive development agreement entered into under this
  subchapter to make or secure payments to a person because of the
  termination of the agreement, including the purchase of the
  interest of a private participant or other investor in a project,
  may be enforced by mandamus against the authority in a district
  court of any county of the authority, and the sovereign immunity of
  the authority is waived for that purpose. The district courts of
  any county of the authority shall have exclusive jurisdiction and
  venue over and to determine and adjudicate all issues necessary to
  adjudicate any action brought under this subsection. The remedy
  provided by this subsection is in addition to any legal and
  equitable remedies that may be available to a party to a
  comprehensive development agreement.
         (f)  If an authority enters into a comprehensive development
  agreement with a private participant that includes the collection
  by the private participant of tolls for the use of a toll project,
  the private participant shall submit to the authority for approval:
               (1)  the methodology for:
                     (A)  the setting of tolls; and
                     (B)  increasing the amount of the tolls;
               (2)  a plan outlining methods the private participant
  will use to collect the tolls, including:
                     (A)  any charge to be imposed as a penalty for late
  payment of a toll; and
                     (B)  any charge to be imposed to recover the cost
  of collecting a delinquent toll; and
               (3)  any proposed change in an approved methodology for
  the setting of a toll or a plan for collecting the toll.
         (g)  Except as provided by this subsection, a comprehensive
  development agreement with a private participant that includes the
  collection by the private participant of tolls for the use of a toll
  project may be for a term not longer than 50 years from the later of
  the date of final acceptance of the project or the start of revenue
  operations by the private participant, not to exceed a total term of
  52 years. The contract must contain an explicit mechanism for
  setting the price for the purchase by the department of the interest
  of the private participant in the contract and related property,
  including any interest in a highway or other facility designed,
  developed, financed, constructed, operated, or maintained under
  the contract.
         Sec. 366.408.  RULES, PROCEDURES, AND GUIDELINES GOVERNING
  SELECTION AND NEGOTIATING PROCESS. (a)  To promote fairness,
  obtain private participants in turnpike projects, and promote
  confidence among those participants, an authority shall adopt
  rules, procedures, and other guidelines governing selection of
  private participants for comprehensive development agreements and
  negotiations of comprehensive development agreements. The rules
  must contain criteria relating to the qualifications of the
  participants and the award of the contracts.
         (b)  An authority shall have up-to-date procedures for
  participation in negotiations under this subchapter.
         (c)  An authority has exclusive judgment to determine the
  terms of an agreement.
         Sec. 366.409.  USE OF CONTRACT PAYMENTS. (a)  Payments
  received by an authority under a comprehensive development
  agreement shall be used by the authority to finance the
  construction, maintenance, or operation of a turnpike project or a
  highway.
         (b)  The authority shall allocate the distribution of funds
  received under Subsection (a) to the counties of the authority
  based on the percentage of toll revenue from users, from each
  county, of the project that is the subject of the comprehensive
  development agreement. To assist the authority in determining the
  allocation, each entity responsible for collecting tolls for a
  project shall calculate on an annual basis the percentage of toll
  revenue from users of the project from each county within the
  authority based on the number of recorded electronic toll
  collections.
         SECTION 9.04.  Subsection (f), Section 366.033,
  Transportation Code, is amended to read as follows:
         (f)  An authority may rent, lease, franchise, license, or
  otherwise make portions of any property of the authority, including
  tangible or intangible property, [its properties] available for use
  by others in furtherance of its powers under this chapter by
  increasing:
               (1)  the feasibility or efficient operation [the
  revenue] of a turnpike project or system; or
               (2)  the revenue of the authority.
         SECTION 9.05.  Subchapter B, Chapter 366, Transportation
  Code, is amended by adding Sections 366.037 and 366.038 to read as
  follows:
         Sec. 366.037.  OTHER HIGHWAY PROJECTS. (a)  In addition to
  the powers granted under this chapter and without supervision or
  regulation by any state agency or local governmental entity, but
  subject to an agreement entered into under Subsection (c), the
  board of an authority may by resolution, and on making the findings
  set forth in this subsection, authorize the use of surplus revenue
  of a turnpike project or system for the study, design,
  construction, maintenance, repair, and operation of a highway or
  similar facility that is not a turnpike project if the highway or
  similar facility is:
               (1)  situated in a county in which the authority is
  authorized to design, construct, and operate a turnpike project;
               (2)  anticipated to either:
                     (A)  enhance the operation or revenue of an
  existing, or the feasibility of a proposed, turnpike project by
  bringing traffic to that turnpike project or enhancing the flow of
  traffic either on that turnpike project or to or from that turnpike
  project to another facility; or
                     (B)  ameliorate the impact of an existing or
  proposed turnpike project by enhancing the capability of another
  facility to handle traffic traveling, or anticipated to travel, to
  or from that turnpike project; and
               (3)  not anticipated to result in an overall reduction
  of revenue of any turnpike project or system.
         (b)  The board in the resolution may prescribe terms for the
  use of the surplus revenue, including the manner in which the
  highway or related facility shall be studied, designed,
  constructed, maintained, repaired, or operated.
         (c)  An authority shall enter into an agreement to implement
  this section with the department, the commission, a local
  governmental entity, or another political subdivision that owns a
  street, road, alley, or highway that is directly affected by the
  authority's turnpike project or related facility.
         (d)  An authority may not:
               (1)  take an action under this section that violates,
  impairs, or is inconsistent with a bond resolution, trust
  agreement, or indenture governing the use of the revenue of a
  turnpike project or system; or
               (2)  commit in any fiscal year expenditures under this
  section exceeding 10 percent of its surplus revenue from the
  preceding fiscal year.
         (e)  In authorizing expenditures under this section, the
  board shall consider:
               (1)  balancing throughout the counties of the authority
  the application of funds generated by its turnpike projects and
  systems, taking into account where those amounts are already
  committed or programmed as a result of this section or otherwise;
  and
               (2)  connectivity to an existing or proposed turnpike
  project or system.
         (f)  Except as provided by this section, an authority has the
  same powers and may use the same procedures with respect to the
  study, financing, design, construction, maintenance, repair, and
  operation of a highway or similar facility under this section as are
  available to the authority with respect to a turnpike project or
  system.
         (g)  Notwithstanding other provisions of this section:
               (1)  any work on a highway in the state highway system
  must be approved by the department; and
               (2)  the department shall supervise and regulate any
  work on a highway in the state highway system.
         Sec. 366.038.  TOLL COLLECTION.  An authority shall provide,
  for reasonable compensation, customer service and other toll
  collection and enforcement services for a toll project in the
  boundaries of the authority, regardless of whether the toll project
  is developed, financed, constructed, and operated under an
  agreement, including a comprehensive development agreement, with
  the authority or another entity.
         SECTION 9.06.  The heading to Section 366.185,
  Transportation Code, is amended to read as follows:
         Sec. 366.185.  ENGINEERING, DESIGN, AND CONSTRUCTION
  SERVICES [COMPETITIVE BIDDING].
         SECTION 9.07.  (a)  Section 366.185, Transportation Code,
  is amended by amending Subsection (a) and adding Subsections (c)
  through (f) to read as follows:
         (a)  A contract made by an authority that requires the
  expenditures of public funds for the construction or maintenance of
  a turnpike project may [must] be let by a competitive bidding
  procedure in which the contract is awarded to the lowest
  responsible bidder that complies with the authority's criteria.
         (c)  An authority may procure a combination of engineering,
  design, and construction services in a single procurement for a
  turnpike project, provided that any contract awarded results in the
  best value to the authority.
         (d)  The authority shall adopt rules governing the award of
  contracts for engineering, design, construction, and maintenance
  services in a single procurement.
         (d-1)  The rules adopted under Subsection (d) may not
  materially conflict with the design-build procedures provided by
  Subchapter J, Chapter 271, Local Government Code, and shall provide
  materially similar injunctive and declaratory action enforcement
  rights regarding the improper disclosure or use of unique or
  nonordinary information as provided in that subchapter.
         (e)  Notwithstanding any other law requiring a competitive
  bidding procedure, an authority may let a contract for the
  construction of a turnpike project by a construction
  manager-at-risk procedure under which the construction
  manager-at-risk provides consultation to the authority during the
  design of the turnpike project and is responsible for the
  construction of the turnpike project in accordance with the
  authority's specifications. A construction manager-at-risk shall
  be selected on the basis of criteria established by the authority,
  which may include the construction manager-at-risk's experience,
  past performance, safety record, proposed personnel and
  methodology, proposed fees, and other appropriate factors that
  demonstrate the construction manager-at-risk's ability to provide
  the best value to the authority and to deliver the required services
  in accordance with the authority's specifications.
         (f)  The authority shall adopt rules governing the award of
  contracts using construction manager-at-risk procedures under this
  section.
         (b)  Subsection (d-1), Section 366.185, Transportation Code,
  as added by this section, takes effect only if H.B. No. 1886, Acts
  of the 80th Legislature, Regular Session, 2007, is enacted and
  becomes law.
         SECTION 9.08.  Subchapter F, Chapter 366, Transportation
  Code, is amended by adding Sections 366.2521 and 366.2522 to read as
  follows:
         Sec. 366.2521.  GIFTS AND CONTRIBUTIONS; OFFENSE.  (a)  In
  this section, "benefit" means anything reasonably regarded as
  pecuniary gain or pecuniary advantage, including benefit to any
  other person in whose welfare the beneficiary has a direct and
  substantial interest.
         (b)  A director commits an offense if the person solicits,
  accepts, or agrees to accept any benefit from:
               (1)  a person the director knows to be subject to
  regulation, inspection, or investigation by the authority; or
               (2)  a person the director knows is interested in or
  likely to become interested in any contract, purchase, payment,
  claim, transaction, or matter involving the exercise of the
  director's discretion.
         (c)  A director who receives an unsolicited benefit that the
  director is prohibited from accepting under this section may donate
  the benefit to a governmental entity that has the authority to
  accept the gift or may donate the benefit to a recognized tax-exempt
  charitable organization formed for educational, religious, or
  scientific purposes.
         (d)  This section does not apply to:
               (1)  a fee prescribed by law to be received by a
  director;
               (2)  a benefit to which the director is lawfully
  entitled; or
               (3)  a benefit for which the director gives legitimate
  consideration in a capacity other than as a director.
         (e)  An offense under this section is a Class A misdemeanor.
         (f)  If conduct that constitutes an offense under this
  section also constitutes an offense under Section 36.08, Penal
  Code, the actor may be prosecuted under this section or Section
  36.08.
         Sec. 366.2522.  OFFERING GIFT TO A DIRECTOR; OFFENSE.  
  (a)  A person commits an offense if the person offers, confers, or
  agrees to confer any benefit on a director that the person knows the
  director is prohibited from accepting under Section 366.2521.
         (b)  An offense under this section is a Class A misdemeanor.
         (c)  If conduct that constitutes an offense under this
  section also constitutes an offense under Section 36.09, Penal
  Code, the actor may be prosecuted under this section or Section
  36.09.
         SECTION 9.09.  Subchapter F, Chapter 366, Transportation
  Code, is amended by adding Section 366.2575 to read as follows:
         Sec. 366.2575.  BOARD VOTE ON COUNTY REQUEST. On request of
  the commissioners court of a county of an authority, the board shall
  vote on whether to build a project that the county requests.
         SECTION 9.10.  Subchapter G, Chapter 366, Transportation
  Code, is amended by adding Section 366.305 to read as follows:
         Sec. 366.305.  TRANS-TEXAS CORRIDOR PROJECTS. If an
  authority is requested by the commission to participate in the
  development of a turnpike project that has been designated as part
  of the Trans-Texas Corridor, the authority shall have, in addition
  to all powers granted in this chapter, all powers of the department
  related to the development of Trans-Texas Corridor projects.
         SECTION 9.11.  The TxDOT/NTTA Regional Protocol entered into
  between the Texas Department of Transportation and the North Texas
  Tollway Authority and approved on August 10, 2006, by the tollway
  authority and on August 24, 2006, by the department is invalidated.
  ARTICLE 10.  REGIONAL MOBILITY AUTHORITIES
         SECTION 10.01.  Section 370.251, Transportation Code, is
  amended by amending Subsection (a) and adding Subsection (a-1) to
  read as follows:
         (a)  Except as provided by Subsection (a-1), the [The]
  governing body of an authority is a board of directors consisting of
  representatives of each county in which a transportation project of
  the authority is located or is proposed to be located. The
  commissioners court of each county that initially forms the
  authority shall appoint at least two directors to the board.
  Additional directors may be appointed to the board at the time of
  initial formation by agreement of the counties creating the
  authority to ensure fair representation of political subdivisions
  in the counties of the authority that will be affected by a
  transportation project of the authority, provided that the number
  of directors must be an odd number. The commissioners court of a
  county that is subsequently added to the authority shall appoint
  one director to the board. The governor shall appoint one director
  to the board who shall serve as the presiding officer of the board
  and shall appoint an additional director to the board if an
  appointment is necessary to maintain an odd number of directors on
  the board.
         (a-1)  To be eligible to serve as director of an authority
  created by a municipality an individual:
               (1)  may be a representative of an entity that also has
  representation on a metropolitan planning organization in the
  region where the municipality is located; and
               (2)  is required to be a resident of Texas regardless of
  whether the metropolitan planning organization's geographic area
  includes territory in another state.
         SECTION 10.02.  Subsection (d), Section 370.301,
  Transportation Code, is amended to read as follows:
         (d)  The commission or department may use federal money for
  any purpose described by this chapter.  An action of an authority
  taken under this chapter must comply with the requirements of
  applicable federal law, including provisions relating to the role
  of metropolitan planning organizations under federal law and the
  approval of projects for conformity with the state implementation
  plan relating to air quality, the use of toll revenue, and the use
  of the right-of-way of and access to federal-aid highways.  
  Notwithstanding an action of an authority taken under this chapter,
  the commission or the department may take any action that in its
  reasonable judgment is necessary to comply with any federal
  requirement to enable this state to receive federal-aid highway
  funds.
         SECTION 10.03.  (a)  Section 370.314, Transportation Code,
  is amended to read as follows:
         Sec. 370.314.  DESIGN-BUILD PROCEDURES [COMBINATION OF
  ENGINEERING, DESIGN, AND CONSTRUCTION SERVICES]. (a)  An
  authority may procure a combination of engineering, design, and
  construction services in a single procurement for a transportation
  project provided that any contract awarded must be the one that
  results in the best value to the authority.
         (b)  Procedures adopted under Subsection (a) may not
  materially conflict with the design-build procedures provided by
  Subchapter J, Chapter 271, Local Government Code.
         (b)  Subsection (a) of this section takes effect only if H.B.
  No. 1886, Acts of the 80th Legislature, Regular Session, 2007, is
  enacted and becomes law.
  ARTICLE 11.  COMPREHENSIVE DEVELOPMENT AGREEMENTS FOR TOLL PROJECTS
         SECTION 11.01.  Subtitle G, Title 6, Transportation Code, is
  amended by adding Chapter 371 to read as follows:
  CHAPTER 371.  COMPREHENSIVE DEVELOPMENT AGREEMENTS FOR HIGHWAY TOLL
  PROJECTS
  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 an entity authorized
  by law to acquire, design, construct, operate, and maintain a toll
  project, including:
                     (A)  the department, including under Chapter 227;
                     (B)  a regional tollway authority under Chapter
  366;
                     (C)  a regional mobility authority under Chapter
  370; or
                     (D)  a county under Chapter 284.
         Sec. 371.002.  APPLICABILITY.  This chapter does not apply
  to a project for which the commission selected an apparent best
  value proposer before May 1, 2007.
  [Sections 371.003-371.050 reserved for expansion]
  SUBCHAPTER B. OVERSIGHT
         Sec. 371.051.  ATTORNEY GENERAL REVIEW. A toll project
  entity may not enter into a comprehensive development agreement
  unless the attorney general reviews the proposed agreement and
  determines that it is legally sufficient.
         Sec. 371.052.  NOTIFICATION TO LEGISLATIVE BUDGET BOARD AND
  STATE AUDITOR. (a)  Not later than the 10th day after the date of
  qualifying or shortlisting private entities to submit detailed
  proposals for a toll project, a toll project entity shall provide
  the Legislative Budget Board with the names of qualifying or
  shortlisted proposers and their team members.
         (b)  At least 30 days before entering into a comprehensive
  development agreement, a toll project entity shall provide the
  Legislative Budget Board with:
               (1)  a copy of the version of the proposed
  comprehensive development agreement to be executed;
               (2)  a copy of the proposal submitted by the apparent
  best value proposer; and
               (3)  a financial forecast prepared by the toll project
  entity that includes:
                     (A)  toll revenue the entity projects will be
  derived from the project during the planned term of the agreement;
                     (B)  estimated construction costs and operating
  expenses; and
                     (C)  the amount of income the entity projects the
  private participant in the agreement will realize during the
  planned term of the agreement.
         (c)  Before entering into a comprehensive development
  agreement, a toll project entity shall provide the state auditor
  with the traffic and revenue report prepared by the toll project
  entity or its consultant for the project. The entity may not enter
  into the comprehensive development agreement before the 30th day
  after the date that the state auditor receives the report so that
  the state auditor may review and comment on the report and the
  methodology used to develop the report.
         (d)  Before the comprehensive development agreement is
  entered into, financial forecasts and traffic and revenue reports
  prepared by or for a toll project entity for the project are
  confidential and are not subject to disclosure, inspection, or
  copying under Chapter 552, Government Code.  On or after the date
  the comprehensive development agreement is entered into, the
  financial forecasts and traffic revenue reports are public
  information under Chapter 552, Government Code.
  [Sections 371.053-371.100 reserved for expansion]
  SUBCHAPTER C. CONTRACT PROVISIONS
         Sec. 371.101.  TERMINATION FOR CONVENIENCE. (a)  A toll
  project entity having rulemaking authority by rule and a toll
  project entity without rulemaking authority by official action
  shall develop a formula for making termination payments to
  terminate a comprehensive development agreement under which a
  private participant receives the right to operate and collect
  revenue from a toll project. A formula must calculate an estimated
  amount of loss to the private participant as a result of the
  termination for convenience.
         (b)  The formula shall be based on investments,
  expenditures, and the internal rate of return on equity under the
  agreed base case financial model as projected over the original
  term of the agreement, plus an agreed percentage markup on that
  amount.
         (c)  A formula under Subsection (b) may not include any
  estimate of future revenue from the project, if not included in an
  agreed base case financial model under Subsection (b).
  Compensation to the private participant upon termination for
  convenience may not exceed the amount determined using the formula
  under Subsection (b).
         Sec. 371.102.  TERMINATION OF CERTAIN COMPREHENSIVE
  DEVELOPMENT AGREEMENTS. If a toll project entity elects to
  terminate a comprehensive development agreement under which a
  private participant receives the right to operate and collect
  revenue from a project, the entity may:
               (1)  if authorized to issue bonds for that purpose,
  issue bonds to:
                     (A)  make any applicable termination payments to
  the private participant; or
                     (B)  purchase the interest of the private
  participant in the comprehensive development agreement or related
  property; or
               (2)  provide for the payment of obligations of the
  private participant incurred pursuant to the comprehensive
  development agreement.
         Sec. 371.103.  PROHIBITION AGAINST LIMITING OR PROHIBITING
  CONSTRUCTION OF TRANSPORTATION PROJECTS. (a)  A comprehensive
  development agreement may not contain a provision that limits or
  prohibits the construction, reconstruction, expansion,
  rehabilitation, operation, or maintenance of a highway or other
  transportation project, as that term is defined by Section 370.003,
  by the toll project entity or other governmental entity, or by a
  private entity under a contract with the toll project entity or
  other governmental entity.
         (b)  Except as provided by Subsection (c), a comprehensive
  development agreement may contain a provision authorizing the toll
  project entity to compensate the private participant in the
  agreement for the loss of toll revenues attributable to the
  construction by the entity of a limited access highway project
  located within an area that extends up to four miles from either
  side of the centerline of the project developed under the
  agreement, less the private participant's decreased operating and
  maintenance costs attributable to the highway project, if any.
         (c)  A comprehensive development agreement may not require
  the toll project entity to provide compensation for the
  construction of:
               (1)  a highway project contained in the state
  transportation plan or a transportation plan of a metropolitan
  planning organization in effect on the effective date of the
  agreement;
               (2)  work on or improvements to a highway project
  necessary for improved safety, or for maintenance or operational
  purposes;
               (3)  a high occupancy vehicle exclusive lane addition
  or other work on any highway project that is required by an
  environmental regulatory agency; or
               (4)  a transportation project that provides a mode of
  transportation that is not included in the project that is the
  subject of the comprehensive development agreement.
         (d)  The private participant has the burden of proving any
  loss of toll revenue resulting from the construction of a highway
  project described by Subsection (b).
         (e)  A comprehensive development agreement that contains a
  provision described by Subsection (b) must require the private
  participant to provide compensation to the toll project entity in
  the amount of any increase in toll revenues received by the private
  participant that is attributable to the construction of a highway
  project described by Subsection (b), less the private participant's
  increased operation and maintenance costs attributable to the
  highway project, if any.
  [Sections 371.104-371.150 reserved for expansion]
  SUBCHAPTER D. DISCLOSURE OF INFORMATION
         Sec. 371.151.  DISCLOSURE OF FINANCIAL INFORMATION.
  (a)  Before a toll project entity enters into a contract for the
  construction of a toll project, the entity shall publish in the
  manner provided by Section 371.152 information regarding:
               (1)  project financing, including:
                     (A)  the total amount of debt that has been and
  will be assumed to acquire, design, construct, operate, and
  maintain the toll project;
                     (B)  a description of how the debt will be repaid,
  including a projected timeline for repaying the debt; and
                     (C)  the projected amount of interest that will be
  paid on the debt;
               (2)  whether the toll project will continue to be
  tolled after the debt has been repaid;
               (3)  a description of the method that will be used to
  set toll rates;
               (4)  a description of any terms in the contract
  relating to competing facilities, including any penalties
  associated with the construction of a competing facility;
               (5)  a description of any terms in the contract
  relating to a termination for convenience provision, including any
  information regarding how the value of the project will be
  calculated for the purposes of making termination payments;
               (6)  the initial toll rates, the methodology for
  increasing toll rates, and the projected toll rates at the end of
  the term of the contract; and
               (7)  the projected total amount of concession payments.
         (b)  A toll project entity may not enter into a contract for
  the construction of a toll project before the 30th day after the
  date the information is first published under Section 371.152.
         Sec. 371.152.  DISCLOSURE BY PUBLICATION. (a)  Information
  under Section 371.151 must be published in a newspaper published in
  the county in which the toll project is to be constructed once a
  week for at least two weeks before the time set for entering into
  the contract and in two other newspapers that the toll project
  entity may designate.
         (b)  Instead of the notice required by Subsection (a), if the
  toll project entity estimates that the contract involves an amount
  less than $300,000, the information may be published in two
  successive issues of a newspaper published in the county in which
  the project is to be constructed.
         (c)  If a newspaper is not published in the county in which
  the toll project is to be constructed, notice shall be published in
  a newspaper published in the county:
               (1)  nearest the county seat of the county in which the
  improvement is to be made; and
               (2)  in which a newspaper is published.
         Sec. 371.153.  HEARING. (a)  A toll project entity shall
  hold a public hearing on the information published under Section
  371.152 not later than the 10th day after the date the information
  is first published and not less than 10 days before the entity
  enters into the contract.
         (b)  A hearing under this section must be held in the county
  seat of the county in which the toll project is located.
         (c)  A hearing under this section must include a formal
  presentation and a mechanism for responding to comments and
  questions.
  ARTICLE 12.  METROPOLITAN PLANNING ORGANIZATIONS
         SECTION 12.01.  Subchapter D, Chapter 472, Transportation
  Code, is amended by adding Section 472.034 to read as follows:
         Sec. 472.034.  ETHICS POLICY. Each policy board shall adopt
  bylaws establishing an ethics policy to prevent a policy board
  member from having a conflict of interest in business before the
  metropolitan planning organization.
  ARTICLE 13.  TOLL COLLECTION
         SECTION 13.01.  Subchapter B, Chapter 228, Transportation
  Code, is amended by adding Section 228.059 to read as follows:
         Sec. 228.059.  TOLL COLLECTION AND ENFORCEMENT BY OTHER
  ENTITY; OFFENSE.  An entity operating a toll lane pursuant to
  Section 228.007(b) has, with regard to toll collection and
  enforcement for that toll lane, the same powers and duties as the
  department under this chapter.  A person who fails to pay a toll or
  administrative fee imposed by the entity commits an offense.  Each
  failure to pay a toll or administrative fee imposed by the entity is
  a separate offense.  An offense under this section is a misdemeanor
  punishable by a fine not to exceed $250, and the provisions of
  Section 228.056 apply to the prosecution of the offense under this
  section.  The entity may use revenues for improvement, extension,
  expansion, or maintenance of the toll lane.
  ARTICLE 14.  ISSUANCE OF BONDS
         SECTION 14.01.  Subsections (b) and (d), Section 222.003,
  Transportation Code, are amended to read as follows:
         (b)  The aggregate principal amount of the bonds and other
  public securities that are issued may not exceed $6 [$3] billion.
  The commission may only issue bonds or other public securities in an
  aggregate principal amount of not more than $1.5 [$1] billion each
  year.
         (d)  Of the aggregate principal amount of bonds and other
  public securities that may be issued under this section, the
  commission shall issue bonds or other public securities in an
  aggregate principal amount of $1.2 billion [$600 million] to fund
  projects that reduce accidents or correct or improve hazardous
  locations on the state highway system. The commission by rule shall
  prescribe criteria for selecting projects eligible for funding
  under this section. In establishing criteria for the projects, the
  commission shall consider accident data, traffic volume, pavement
  geometry, and other conditions that can create or exacerbate
  hazardous roadway conditions.
  ARTICLE 15.  EFFECTIVE DATE
         SECTION 15.01.  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, 2007.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 792 passed the Senate on
  May 14, 2007, by the following vote:  Yeas 31, Nays 0;
  May 18, 2007, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 22, 2007, House
  granted request of the Senate; May 25, 2007, Senate adopted
  Conference Committee Report by the following vote:  Yeas 29,
  Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 792 passed the House, with
  amendments, on May 17, 2007, by the following vote:  Yeas 143,
  Nays 2, one present not voting; May 22, 2007, House granted request
  of the Senate for appointment of Conference Committee;
  May 26, 2007, House adopted Conference Committee Report by the
  following vote:  Yeas 127, Nays 19, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor