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H.B. No. 2702

H.B. No. 2702

AN ACT

relating to the construction, acquisition, financing, maintenance,
management, operation, ownership, and control of transportation
facilities and the progress, improvement, policing, and safety of
transportation in this state; providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. RAIL FACILITIES

SECTION 1.01. Section 91.001, Transportation Code, is
amended by amending Subdivision (6) and adding Subdivision (13) to
read as follows:
(6) “Rail facility” means real or personal property,
or any interest in that property, that is determined to be necessary
or convenient for the provision of a freight or passenger rail
facility or system, including commuter rail, intercity rail, [and]
high-speed rail, and tri-track. The term includes all property or
interests necessary or convenient for the acquiring, providing,
using, or equipping of a rail facility or system, including
rights-of-way, trackwork, train controls, stations, and
maintenance facilities.
(13) “Tri-track” means a triangular monorail beam
guideway:
(A) constructed at a grade above surface modes of
transportation;
(B) for use by dual-mode vehicles capable of
using the guideway or a highway; and
(C) with entrances accessible from and exits
accessible to highways.
SECTION 1.02. Section 91.004, Transportation Code, is
amended to read as follows:
Sec. 91.004. GENERAL POWERS. (a) The department may:
(1) plan and make policies for the location,
construction, maintenance, and operation of a rail facility or
system in this state;
(2) acquire, finance, construct, maintain, and
subject to Section 91.005, operate a passenger or freight rail
facility, individually or as one or more systems;
(3) for the purpose of acquiring or financing a rail
facility or system, accept a grant or loan from a:
(A) department or agency of the United States;
(B) department, agency, or political subdivision
of this state; or
(C) public or private person;
(4) contract with a public or private person to
finance, construct, maintain, or operate a rail facility under this
chapter; or
(5) perform any act necessary to the full exercise of
the department’s powers under this chapter.
(b) Except as provided by Subsection (c), money
appropriated or allocated by the United States for the construction
and maintenance in this state of rail facilities owned by any public
or private entity shall be administered by the commission and may be
spent only under the supervision of the department.
(c) Subsection (b) does not apply to money appropriated or
allocated:
(1) to a transit authority described by Chapter 451, a
transportation authority described by Chapter 452 or 460, or a
transit department described by Chapter 453; or
(2) for use by:
(A) a port authority or navigation district
created or operating under Section 52, Article III, or Section 59,
Article XVI, Texas Constitution; or
(B) a district created under Chapter 623, Acts of
the 67th Legislature, Regular Session, 1981 (Article 6550c,
Vernon’s Texas Civil Statutes).
SECTION 1.03. Section 91.051, Transportation Code, is
amended to read as follows:
Sec. 91.051. AWARDING OF CONTRACTS. Except for a contract
entered into under Section 91.052, 91.054, or 91.102 [Unless
otherwise provided by this subchapter], a contract made by the
department for the construction, maintenance, or operation of a
rail facility must be let by a competitive bidding procedure in
which the contract is awarded to the lowest responsible bidder that
complies with the department’s criteria.
SECTION 1.04. Subchapter C, Chapter 91, Transportation
Code, is amended by adding Section 91.054 to read as follows:
Sec. 91.054. COMPREHENSIVE DEVELOPMENT AGREEMENTS. (a) To
the extent and in the manner that the department may enter into a
comprehensive development agreement under Chapter 223, the
department may enter into a comprehensive development agreement
under this chapter that provides for the financing, design,
acquisition, construction, maintenance, or operation of a rail
facility or system. All provisions of Chapter 223 relating to
comprehensive development agreements apply to comprehensive
development agreements for facilities under this chapter,
including provisions relating to the confidentiality of
information. Claims arising under a comprehensive development
agreement are subject to Section 201.112.
(b) The department may combine in a comprehensive
development agreement under this chapter a rail facility or system
and a toll project as defined by Section 201.001.
(c) The department may not enter into a comprehensive
development agreement with a private entity under this chapter that
provides for the lease or use of rights-of-way or related property
by the private entity to construct, operate, or maintain a facility
that is unrelated to the operation of the rail facility or system.
SECTION 1.05. Section 91.071(b), Transportation Code, is
amended to read as follows:
(b) The [Each fiscal year, the total amount disbursed by
the] department may not spend money from the general revenue [state
highway] fund to implement this chapter except pursuant to a
line-item appropriation [may not exceed $12.5 million]. [This
subsection does not apply to:
[(1) the acquisition of abandoned rail facilities
described in Section 91.007;
[(2) funding derived from the issuance of bonds,
private investment, and donations;
[(3) federal funds from the Federal Railroad
Administration, from the Federal Transit Administration, or
authorized and appropriated by the United States Congress for a
specific project;
[(4) grants awarded by the governor from the Texas
Enterprise Fund; and
[(5) grading and bed preparation.]
SECTION 1.06. Section 91.074(c), Transportation Code, is
amended to read as follows:
(c) The department may contract with a person for the use of
all or part of a rail facility or system or may lease or sell all or
part of a rail facility or system, including all or any part of the
right-of-way adjoining trackwork, for any purpose, including
placing on the adjoining right-of-way a storage or transfer
facility, warehouse, garage, parking facility, telecommunication
line or facility, restaurant, or gas station. Any portion of a rail
facility or system that is used or leased by a private person under
this subsection for a commercial purpose is not exempt from ad
valorem taxation and is subject to local zoning regulations and
building standards.
SECTION 1.07. Subchapter D, Chapter 91, Transportation
Code, is amended by adding Section 91.075 to read as follows:
Sec. 91.075. PASS-THROUGH FARES. (a) In this section,
“pass-through fare” means:
(1) a per passenger fee or a per passenger mile fee
that is determined by the number of passengers using a passenger
rail facility; or
(2) a fee that is determined based on the number of
carloads or commodity tonnages shipped using a freight rail
facility.
(b) The department may enter into an agreement with a public
or private entity that provides for the payment of pass-through
fares to the public or private entity as reimbursement for the
acquisition, design, development, financing, construction,
relocation, maintenance, or operation of a passenger rail facility
or a freight rail facility by the entity.
(c) The department may use any available funds for the
purpose of making a pass-through fare payment under this section,
including funds from the state infrastructure bank.
(d) The commission may adopt rules necessary to implement
this section. Rules adopted under this subsection may include
criteria for:
(1) determining the amount of pass-through fares to be
paid under this section; and
(2) allocating the risk that ridership on a passenger
rail facility or carloads or commodity tonnages shipped on a
freight rail facility will be higher or lower than the parties to an
agreement under this section anticipated in entering into the
agreement.
SECTION 1.08. Effective October 1, 2005, Article 6445,
Revised Statutes, is amended to read as follows:
Art. 6445. POWER AND AUTHORITY. (a) Power and authority
are hereby conferred upon the Texas Department of Transportation
[Railroad Commission of Texas] over all railroads, and suburban,
belt and terminal railroads, and over all public wharves, docks,
piers, elevators, warehouses, sheds, tracks and other property used
in connection therewith in this State, and over all persons,
associations and corporations, private or municipal, owning or
operating such railroad, wharf, dock, pier, elevator, warehouse,
shed, track or other property to fix, and it is hereby made the duty
of the said department [Commission] to adopt all necessary rates,
charges and regulations, to govern and regulate such railroads,
persons, associations and corporations, and to correct abuses and
prevent unjust discrimination in the rates, charges and tolls of
such railroads, persons, associations and corporations, and to fix
division of rates, charges and regulations between railroads and
other utilities and common carriers where a division is proper and
correct, and to prevent any and all other abuses in the conduct of
their business and to do and perform such other duties and details
in connection therewith as may be provided by law.
(b) All powers and duties of the Railroad Commission of
Texas that relate primarily to railroads and the regulation of
railroads are transferred to the Texas Department of
Transportation.
(c) A reference in law to the Railroad Commission of Texas
that relates primarily to railroads and the regulation of railroads
means the Texas Department of Transportation.
SECTION 1.09. (a) On October 1, 2005:
(1) all powers, duties, obligations, rights,
contracts, leases, records, assets, property, funds, and
appropriations of the Railroad Commission of Texas that relate
primarily to railroads and the regulation of railroads are
transferred to the Texas Department of Transportation;
(2) all rules, policies, forms, procedures, and
decisions of the Railroad Commission of Texas that relate primarily
to railroads and the regulation of railroads are continued in
effect as rules, policies, forms, procedures, and decisions of the
Texas Department of Transportation, until superseded by a rule or
other appropriate action of the Texas Department of Transportation;
(3) any investigation, complaint, action, contested
case, or other proceeding involving the Railroad Commission of
Texas that relates primarily to railroads and the regulation of
railroads is transferred without change in status to the Texas
Department of Transportation, and the Texas Department of
Transportation assumes, without a change in status, the position of
the Railroad Commission of Texas in any investigation, complaint,
action, contested case, or other proceeding that relates primarily
to railroads and the regulation of railroads involving the Railroad
Commission of Texas; and
(4) all employees of the Railroad Commission of Texas
that perform duties relating primarily to railroads and the
regulation of railroads become employees of the Texas Department of
Transportation.
(b) The transfer of the powers and duties of the Railroad
Commission of Texas that relate primarily to railroads and the
regulation of railroads to the Texas Department of Transportation
does not affect the validity of a right, privilege, or obligation
accrued, a contract or acquisition made, any liability incurred, a
permit or license issued, a penalty, forfeiture, or punishment
assessed, a rule adopted, a proceeding, investigation, or remedy
begun, a decision made, or other action taken by or in connection
with the Railroad Commission of Texas.
SECTION 1.10. As soon as possible after the effective date
of this Act but before October 1, 2005, the Railroad Commission of
Texas shall determine and report to the Texas Department of
Transportation on:
(1) which obligations, contracts, records, assets,
and property of the Railroad Commission of Texas relate primarily
to railroads and the regulation of railroads; and
(2) which employees of the Railroad Commission of
Texas perform duties that relate primarily to railroads and the
regulation of railroads.

ARTICLE 2. HIGHWAYS

SECTION 2.01. Section 201.001, Transportation Code, is
amended to read as follows:
Sec. 201.001. DEFINITIONS. (a) In this title:
(1) “Commission” means the Texas Transportation
Commission.
(2) “Department” means the Texas Department of
Transportation.
(3) “Director” means the executive director of the
Texas Department of Transportation.
(b) In this subtitle, “toll project” means one or more
tolled lanes of a highway or an entire toll highway constructed,
maintained, or operated as a part of the state highway system and
any improvement, extension, or expansion to the highway, including:
(1) a facility to relieve traffic congestion and
promote safety;
(2) a bridge, tunnel, overpass, underpass,
interchange, entrance plaza, approach, toll booth, toll plaza,
service road, ramp, or service center;
(3) an administration, storage, or other building,
operations center, maintenance or other facility, equipment, or
system the department considers necessary to operate the project;
(4) property rights, easements, and interests the
department acquires to construct, maintain, or operate the project;
(5) a parking area or structure, rest stop, park, and
any other improvement or amenity the department considers
necessary, useful, or beneficial for the operation and maintenance
of the project; and
(6) a nontolled facility that is appurtenant to and
necessary for the efficient operation and maintenance of the
project, including a connector, service road, access road, ramp,
interchange, bridge, or tunnel.
SECTION 2.02. Section 201.1055, Transportation Code, is
amended to read as follows:
Sec. 201.1055. AGREEMENTS WITH PRIVATE ENTITIES. (a)
Notwithstanding any other law, including Subchapter A, Chapter
2254, Government Code, Chapters 2165, 2166, and 2167, Government
Code, and Sections 202.052, 202.053, 203.051, 203.052, and 223.001
of this code, the department and a private entity that offers the
best value to the state may enter into an agreement for the [that
includes]:
(1) acquisition, [both] design, [and] construction,
or renovation, including site development, of a building or other
facility required to support department operations [district
office headquarters facility] located on real property owned or
acquired by the department [in a county with a population of 3.3
million or more]; or
(2) acquisition from the private entity of real
property, a building, or other facility required to support
department operations that is constructed on the real property in
exchange for department-owned real property, including any
improvements [a lease of department-owned real property in a
district that includes a county with a population of 3.3 million or
more to the private entity;
[(3) a provision authorizing the private entity to
construct and retain ownership of a building on property leased to
the entity under Subdivision (2); and
[(4) a provision under which the department agrees to
enter into an agreement to lease with an option or options to
purchase a building constructed on property leased to the entity
under Subdivision (2)].
(b) A project described by this section that is not wholly
paid for by an exchange of department-owned real property may be
financed in accordance with Section 1232.111, Government Code.
(c) Notwithstanding Section 202.024, the commission may
authorize the executive director to execute a deed exchanging
department-owned real property under Subsection (a)(2).
(d) The commission shall notify the Bond Review Board and
Texas Public Finance Authority of the proposed transaction not less
than 45 days before the date the commission signs an agreement under
this section providing for the exchange of department-owned real
property under Subsection (a)(2).
(e) An agreement under this section providing for the
exchange of department-owned real property under Subsection (a)(2)
that has an appraised value greater than the appraised value of real
property and improvements acquired by the department under the
agreement must require the private entity to compensate the
department for the difference. Any compensation paid by a private
entity must be deposited to the credit of the state highway fund and
is exempt from the application of Section 403.095, Government Code.
SECTION 2.03. Section 201.113, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) An agreement entered into under this section may provide
that an improvement of a portion of the state highway system by a
regional tollway authority is governed by the provisions of Chapter
366 applicable to the performance of the same function for a
turnpike project under that chapter and the rules and procedures
adopted by the regional tollway authority under that chapter, in
lieu of the laws, rules, or procedures applicable to the department
for the performance of the same function.
SECTION 2.04. Sections 201.115(a), (b), and (c),
Transportation Code, are amended to read as follows:
(a) The commission may authorize the department to borrow
money from any source to carry out the functions of the department.
(b) A loan under this section may be in the form of an
agreement, note, contract, or other form as determined by the
commission and may contain any provisions the commission considers
appropriate, except:
(1) the term of the loan may not exceed two years;
(2) the amount of the loan, combined with any amounts
outstanding on other loans under this section, may not exceed an
amount that is two times the average monthly revenue deposited to
the state highway fund for the 12 months preceding the month of the
loan; and
(3) the loan may not create general obligation of the
state and is payable only as authorized by legislative
appropriation.
(c) If the department [commission] borrows money by the
issuance of notes, the notes shall be considered a state security
for purposes of Chapter 1231, Government Code [issued in accordance
with the requirements of Subchapter N, except that the maturity
limitations in Subsection (b) supersede the maturity limitations in
Section 201.963].
SECTION 2.05. Section 201.615, Transportation Code, is
amended by amending Subsection (a) and adding Subsection (c) to
read as follows:
(a) The department shall consider the following factors
when developing transportation projects that involve the
construction, reconstruction, rehabilitation, or resurfacing of a
highway, other than a maintenance resurfacing project:
(1) the extent to which the project promotes safety;
(2) the durability of the project;
(3) the economy of maintenance of the project;
(4) the impact of the project on:
(A) the natural and artificial environment;
(B) the scenic and aesthetic character of the
area in which the project is located;
(C) preservation efforts; and
(D) each affected local community and its
economy; [and]
(5) the access for other modes of transportation,
including those that promote physically active communities; and
(6) except as provided by Subsection (c), the
aesthetic character of the project, including input from each
affected local community.
(c) Subsection (a)(6) does not apply to transportation
projects that involve the rehabilitation or resurfacing of a bridge
or highway.
SECTION 2.06. Section 202.112, Transportation Code, is
amended by adding Subsection (d) to read as follows:
(d) An option to acquire property purchased under this
section or Section 227.041 may not expire later than the fifth
anniversary of the date the option was purchased and may be renewed
for subsequent periods that expire not later than the fifth
anniversary of the date the option was renewed, by agreement of the
commission and the grantor of the option or the grantor’s heirs or
assigns.
SECTION 2.07. Section 203.004, Transportation Code, is
transferred to Subchapter H, Chapter 201, Transportation Code,
redesignated as Section 201.617, Transportation Code, and amended
to read as follows:
Sec. 201.617 [203.004]. [CONTRACTS FOR MANAGEMENT OF
PROPERTY USED FOR] MITIGATION OF ADVERSE ENVIRONMENTAL IMPACTS.
(a) If authorized by an applicable regulatory authority, to
mitigate an adverse environmental impact that is a direct result of
a state highway improvement project, the [The] department may:
(1) pay a fee to an appropriate public agency or
private entity in lieu of acquiring or agreeing to manage property;
(2) transfer real property to an appropriate public
agency or private entity with or without monetary consideration if
the property is used or is proposed to be used for mitigation
purposes; or
(3) contract with any public or private entity for the
management of property owned by the department and used for [the]
mitigation purposes [of an adverse environmental impact directly
resulting from the construction or maintenance of a state highway].
(a-1) Before the commission may acquire by purchase or
condemnation real property to mitigate an adverse environmental
impact that is a direct result of a state highway improvement
project, the department shall, if authorized by an applicable
regulatory authority, offer to purchase a conservation easement
from the owner of the real property. If the landowner does not
accept the offer to execute a conservation easement before the 61st
day after the date the offer is made, the department may acquire the
property by purchase or condemnation.
(b) A contract under this section is not subject to Chapter
771, Government Code.
(c) In this section, “management” [“management,” in
connection with property,] means administration, control, or
maintenance that is required by an agency of the United States.
SECTION 2.08. Section 201.943, Transportation Code, is
amended by adding Subsection (l) to read as follows:
(l) Obligations may not be issued if the commission or the
department requires that toll roads be included in a regional
mobility plan in order for a local authority to receive an
allocation from the fund.
SECTION 2.09. Subchapter K, Chapter 201, Transportation
Code, is amended by adding Section 201.907 to read as follows:
Sec. 201.907. CONTRACT FOR ENFORCEMENT. The department or
a public or private entity contracted to operate a toll project may
contract with an agency of this state or a local governmental entity
for the services of peace officers employed by the agency or entity
to enforce laws related to:
(1) the regulation and control of vehicular traffic on
a state highway; and
(2) the payment of the proper toll on a toll project.
SECTION 2.10. Section 203.052(b), Transportation Code, is
amended to read as follows:
(b) Property necessary or convenient to a state highway for
purposes of Subsection (a) includes an interest in real property, a
property right, or a material that the commission determines is
necessary or convenient to:
(1) protect a state highway;
(2) drain a state highway;
(3) divert a stream, river, or other watercourse from
the right-of-way of a state highway;
(4) store materials or equipment for use or used in the
construction or maintenance of a state highway;
(5) construct or operate a warehouse or other facility
used in connection with the construction, maintenance, or operation
of a state highway;
(6) lay out, construct, or maintain a roadside park;
(7) lay out, construct, or maintain a parking lot that
will contribute to maximum use of a state highway with the least
possible congestion;
(8) mitigate an adverse environmental effect that
directly results from construction or maintenance of a state
highway; [or]
(9) provide a location for an ancillary facility that
is anticipated to generate revenue for use in the design,
development, financing, construction, maintenance, or operation of
a toll project, including a gas station, garage, store, hotel,
restaurant, or other commercial facility;
(10) construct or operate a toll booth, toll plaza,
service center, or other facility used in connection with the
construction, maintenance, or operation of a toll project; or
(11) accomplish any other purpose related to the
location, construction, improvement, maintenance, beautification,
preservation, or operation of a state highway.
SECTION 2.11. Section 203.0521, Transportation Code, is
amended to read as follows:
Sec. 203.0521. ACQUISITION OF REMAINDER. (a) If a
proposed acquisition of a tract of real property under Section
203.052 would leave the owner of the property a remainder of the
tract, the department may negotiate for and purchase the remainder
or any part of a severed real property if the department and the
owner agree on terms for the purchase. The department [commission]
shall offer, except as provided by Subsection (f), to purchase a
[the] remainder if the department [commission] determines that:
(1) the remainder has little or no value or utility to
the owner; or
(2) the entire tract could be acquired for
substantially the same compensation as the partial tract.
(b) In acquiring real property under Section 203.051, if the
acquisition severs an owner’s real property, the department shall
pay:
(1) the value of the property acquired; and
(2) the damages to the remainder of the owner’s
property caused by the severance, including damages caused by the
inaccessibility of one tract from the other [The department may
acquire the remainder under this section only if the owner of the
property consents to the acquisition of the remainder].
(b-1) If a portion of a tract or parcel of real property
that, for the then current tax year was appraised for ad valorem tax
purposes under a law enacted under Section 1-d or 1-d-1, Article
VIII, Texas Constitution, and that is outside the municipal limits
or the extraterritorial jurisdiction of a municipality with a
population of 25,000 or more is condemned for state highway
purposes, the special commissioners shall consider the loss of
reasonable access to or from the remaining property in determining
the damage to the property owner.
(c) Instead of a single fixed payment for real property
purchased under Subsection (a) for a toll project, the department
may agree to a payment to the owner in the form of:
(1) an intangible legal right to receive a percentage
of identified revenue attributable to the applicable segment of the
toll project; or
(2) a right to use, without charge, a segment or part
of the toll project [The department is not required to make an offer
on a remainder if an appraisal or environmental investigation
indicates the presence of hazardous materials or substances].
(d) A right to receive revenue under Subsection (c)(1) is
subject to any pledge of the revenue under the terms of a trust
agreement securing bonds issued for the applicable segment of the
toll project.
(e) The department and its designated agents may enter the
real property [a remainder] to conduct an appraisal, survey, or
environmental investigation to determine whether the department
will offer to acquire the real property [remainder].
(f) The department is not required under Subsection (a) to
make an offer on a remainder if an appraisal or environmental
investigation indicates the presence of hazardous materials or
substances.
SECTION 2.12. Section 203.055, Transportation Code, is
amended to read as follows:
Sec. 203.055. ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY
[CONVEYANCE OF PROPERTY BELONGING TO POLITICAL SUBDIVISION OR
PUBLIC AGENCY]. (a) The governing body of a political subdivision
or public agency that owns or is in charge of public real property
may consent to the use of the property for highway purposes.
(b) The governing body of a political subdivision or public
agency may, without advertisement, convey the title to or rights or
easements [a right] in real property that the department needs[:
[(1) is owned by the political subdivision or public
agency; and
[(2) may be acquired by the commission under this
subchapter] for highway purposes.
(c) Notwithstanding any law to the contrary, at the request
of the department, a political subdivision or a state agency may
lease, lend, grant, or convey to the department real property,
including a highway or real property currently devoted to public
use, that may be necessary or appropriate to accomplish the
department’s purposes. The political subdivision or state agency
may lease, lend, grant, or convey the property:
(1) on terms the subdivision or agency determines
reasonable and fair; and
(2) without advertisement, court order, or other
action or formality other than the regular and formal action of the
subdivision or agency concerned.
[(b) In this section, “political subdivision” includes a
county or municipality.]
SECTION 2.13. Sections 361.137, 361.138, 361.233, and
361.142, Transportation Code, are transferred to Subchapter D,
Chapter 203, Transportation Code, redesignated as Sections
203.066, 203.067, 203.068, and 203.069, Transportation Code, and
amended to read as follows:
Sec. 203.066 [361.137]. DECLARATION OF TAKING FOR TOLL
PROJECT. (a) This section and Section 203.067 apply only to a
taking for a toll project.
(b) The department may file a declaration of taking with the
clerk of the court:
(1) in which the department files a condemnation
petition under Chapter 21, Property Code; or
(2) to which the case is assigned.
(c) [(b)] The department may file the declaration of taking
concurrently with or subsequent to the petition but may not file the
declaration after the special commissioners have made an award in
the condemnation proceeding.
(d) [(c)] The department may not file a declaration of
taking before the completion of:
(1) all environmental documentation, including a
final environmental impact statement or a record of decision, that
is required by federal or state law;
(2) all public hearings and meetings, including those
held in connection with the environmental process and under
Sections 201.604 and 203.021, that are required by federal or state
law; [and]
(3) all notifications required by Section 203.022; and
(4) if the property contains a business, farm, or
ranch, a written notification to the property owner that the
occupants:
(A) will not be required to move before the 90th
day after the date of the notice; and
(B) will receive, not later than the 30th day
before the date by which the property must be vacated, a written
notice specifying the date by which the property must be vacated.
(e) [(d)] The declaration of taking must include:
(1) a specific reference to the legislative authority
for the condemnation;
(2) a description and plot plan of the real property to
be condemned, including the following information if applicable:
(A) the municipality in which the property is
located;
(B) the street address of the property; and
(C) the lot and block number of the property;
(3) a statement of the property interest to be
condemned;
(4) the name and address of each property owner that
the department can obtain after reasonable investigation and a
description of the owner’s interest in the property; and
(5) a statement that immediate possession of all or
part of the property to be condemned is necessary for the timely
construction of a toll [turnpike] project.
(f) [(d-1)] A deposit to the registry of the court of an
amount equal to the appraised value, as determined by the
department, of the property to be condemned must accompany the
declaration of taking.
(g) [(e)] The date on which the declaration is filed is the
date of taking for the purpose of assessing damages to which a
property owner is entitled.
(h) The filing of a declaration of taking does not affect
the special commissioners’ hearing or any other proceeding
[(f) After a declaration of taking is filed, the case shall
proceed as any other case in eminent domain] under Chapter 21,
Property Code.
Sec. 203.067 [361.138]. POSSESSION OF PROPERTY FOR TOLL
PROJECT. (a) Immediately on the filing of a declaration of taking
under Section 203.066, the department shall serve a copy of the
declaration on each person possessing an interest in the condemned
property by a method prescribed by Section 21.016(d), Property
Code. The department shall file evidence of the service with the
clerk of the court. On filing of that evidence, the department may
take possession of the property pending the litigation.
(b) If the condemned property is a homestead or a portion of
a homestead as defined by Section 41.002, Property Code, the
department may not take possession sooner than the 91st day after
the date of service under Subsection (a).
(c) A property owner or tenant who refuses to vacate the
property or yield possession is subject to forcible entry and
detainer under Chapter 24, Property Code.
Sec. 203.068 [361.233]. RIGHT OF ENTRY FOR TOLL PROJECT.
(a) The department and its authorized agents may enter any real
property, water, or premises in this state to make a survey,
sounding, drilling, or examination it determines necessary or
appropriate for the purposes of the development of a toll project
[this chapter].
(b) An entry under this section is not:
(1) a trespass; or
(2) an entry under a pending condemnation proceeding.
(c) The department shall make reimbursement for any actual
damages to real property, water, or premises that result from an
activity described by Subsection (a).
Sec. 203.069 [361.142]. COVENANTS, CONDITIONS,
RESTRICTIONS, OR LIMITATIONS. Covenants, conditions,
restrictions, or limitations affecting property acquired in any
manner by the department are not binding against the department and
do not impair the department’s ability to use the property for a
purpose authorized by this chapter. The beneficiaries of the
covenants, conditions, restrictions, or limitations are not
entitled to enjoin the department from using the property for a
purpose authorized under this chapter, but this section does not
affect the right of a person to seek damages to the person’s
property under Section 17, Article I, Texas Constitution.
SECTION 2.14. Section 203.092, Transportation Code, is
amended by amending Subsection (a) and adding Subsections (a-1),
(a-2), and (a-3) to read as follows:
(a) A utility shall make a relocation of a utility facility
at the expense of this state if[:
[(1)] relocation of the utility facility is required
by improvement of:
(1) a highway in this state established by appropriate
authority as part of the National System of Interstate and Defense
Highways and the relocation is eligible for federal participation;
[or]
(2) [relocation of the utility facility is required by
improvement of] any segment of the state highway system and the
utility has a compensable property interest in the land occupied by
the facility to be relocated; or
(3) a segment of the state highway system that was
designated by the commission as a turnpike project or toll project
before September 1, 2005.
(a-1) Notwithstanding Subsection (a), the department and the
utility shall share equally the cost of the relocation of a utility
facility that is made before September 1, 2007, and required by the
improvement of a nontolled highway to add one or more tolled lanes.
This subsection expires September 1, 2007.
(a-2) Notwithstanding Subsection (a), the department and the
utility shall share equally the cost of the relocation of a utility
facility that is made before September 1, 2007, and required for
the improvement of a nontolled highway that has been converted to a
turnpike project or toll project. This subsection expires
September 1, 2007.
(a-3) Notwithstanding Subsection (a), the department and the
utility shall share equally the cost of the relocation of a utility
facility that is made before September 1, 2007, and required for the
construction on a new location of a turnpike project or toll project
or the expansion of such a turnpike project or toll project. This
subsection expires September 1, 2007.
SECTION 2.15. Section 221.001(1), Transportation Code, is
amended to read as follows:
(1) “Highway” includes a tolled or nontolled public
road or part of a tolled or nontolled public road and a bridge,
culvert, building, or other necessary structure related to a public
road.
SECTION 2.16. Subchapter B, Chapter 222, Transportation
Code, is amended by adding Section 222.035 to read as follows:
Sec. 222.035. PRIVATE ACTIVITY BONDS. (a) In this section,
“private activity bond” has the meaning assigned by Section 141(a),
Internal Revenue Code of 1986.
(b) If the attorney general makes a determination that the
United States Congress has enacted legislation amending the
Internal Revenue Code of 1986 to include highway facilities or
surface freight transfer facilities among the types of facilities
for which private activity bonds may be used:
(1) the determination shall be published in the Texas
Register; and
(2) Subsections (d), (e), (f), and (g) take effect on
the 30th day after the date on which the attorney general’s
determination is published in the Texas Register.
(c) The attorney general shall monitor federal legislation
for purposes of this section.
(d) The department shall establish and administer a program
for private activity bonds issued for highway facilities or surface
freight transfer facilities in this state.
(e) The program, at a minimum, must include a process by
which the department and the Bond Review Board receive and evaluate
applications for issuance of private activity bonds for highway
facilities or surface freight transfer facilities.
(f) The department shall adopt rules to administer the
program established under this section.
(g) To the extent that private activity bonds for highway
facilities or surface freight transfer facilities are subject to
the state ceiling under Section 146, Internal Revenue Code of 1986,
the issuance of bonds for those facilities is governed by Chapter
1372, Government Code.
SECTION 2.17. Section 222.103(h), Transportation Code, is
amended to read as follows:
(h) Money granted by the department each fiscal year under
this section may not exceed an amount that, together with the money
granted for the preceding four fiscal years, results in an average
annual expenditure of $2 billion [$800 million]. This limitation
does not apply to money required to be repaid.
SECTION 2.18. Section 222.104, Transportation Code, is
amended to read as follows:
Sec. 222.104. PASS-THROUGH TOLLS. (a) In this section,
“pass-through toll” means a per vehicle fee or a per vehicle mile
fee that is determined by the number of vehicles using a highway.
(b) The department may enter into an agreement with a public
or private entity that provides for the payment of pass-through
tolls to the public or private entity as reimbursement for the
design, development, financing, construction, maintenance, or
operation of a toll or nontoll facility on the state highway system
by the public or private entity.
(c) The department may enter into an agreement with a
private entity that provides for the payment of pass-through tolls
to the department as reimbursement for the department’s design,
development, financing, construction, maintenance, or operation of
a toll or nontoll facility on the state highway system that is
financed by the department.
(d) The department and a regional mobility authority, a
regional tollway authority, or a county acting under Chapter 284
may enter into an agreement [with a regional mobility authority, a
regional tollway authority, or a county acting under Chapter 284]
that provides for:
(1) the payment of pass-through tolls to the authority
or county as compensation for the payment of all or a portion of the
costs of maintaining a state highway or a portion of a state highway
transferred to the authority or county after being converted to a
toll facility [of the authority or county] that the department
estimates it would have incurred if the highway had not been
converted; or
(2) the payment by the authority or county of
pass-through tolls to the department as reimbursement for all or a
portion of the costs incurred by the department to design, develop,
finance, construct, and maintain a state highway or a portion of a
state highway transferred to the authority or county after being
converted to a toll facility.
(e) [(d)] The department may use any available funds for the
purpose of making a pass-through toll payment under this section.
(f) A regional mobility authority, a regional tollway
authority, or a county acting under Chapter 284 is authorized to
secure and pay its obligations under an agreement under this
section from any lawfully available funds.
(g) [(e)] The commission may adopt rules necessary to
implement this section. Rules adopted under this subsection may
include [establish] criteria for:
(1) determining the amount of pass-through tolls to be
paid under this section; and
(2) allocating the risk that traffic volume will be
higher or lower than the parties to an agreement under this section
anticipated in entering the agreement.
(h) Money repaid to the department under this section shall
be deposited to the credit of the fund from which the money was
originally provided and is exempt from the application of Section
403.095, Government Code.
(i) To the maximum extent permitted by law, the department
may delegate the full responsibility for design, bidding, and
construction, including oversight and inspection, to a
municipality, county, regional mobility authority, or regional
tollway authority with which the department enters into an
agreement under this section.
(j) An agreement under this section must provide that the
municipality, county, regional mobility authority, or regional
tollway authority is required to meet state design criteria,
construction specifications, and contract administration
procedures unless the department grants an exception.
(k) An agreement under this section must prescribe the roles
and responsibilities of the parties and establish time frames for
any department reviews or approvals in a manner that will, to the
maximum extent possible, expedite the development of the project.
SECTION 2.19. Subchapter E, Chapter 222, Transportation
Code, is amended by adding Section 222.1045 to read as follows:
Sec. 222.1045. CONTRACTS OF CERTAIN PUBLIC ENTITIES. (a)
In this section, “public entity” means a municipality, county,
regional mobility authority, or regional tollway authority.
(b) A public entity may contract with a private entity to
act as the public entity’s agent in:
(1) the design, financing, maintenance, operation, or
construction, including oversight and inspection, of a toll or
nontoll facility under Section 222.104(b); or
(2) the maintenance of a state highway or a portion of
a state highway subject to an agreement under Section
222.104(d)(1).
(c) A public entity shall:
(1) select a private entity under Subsection (b) on
the basis of the private entity’s qualifications and experience;
and
(2) enter into a project development agreement with
the private entity.
(d) A private entity selected shall comply with Chapter
1001, Occupations Code, and all laws related to procuring
engineering services and construction bidding that are applicable
to the public entity that selected the private entity.
(e) A public entity may assign the public entity’s right to
payment of pass-through tolls under Section 222.104(b) or (d)(1) to
the private entity.
SECTION 2.20. Sections 223.041(b), (c), and (d),
Transportation Code, are amended to read as follows:
(b) The department, in setting a minimum level of
expenditures in these engineering-related activities that will be
paid to the private sector providers, shall provide that [index the
level of expenditures from the amount set by rider in the General
Appropriations Act enacted by the 75th Legislature at its regular
session in 1997, expressed as a percentage of the total funds
appropriated in Strategy A.1.1. Plan/Design/Manage.
[(c) Beginning in fiscal year 2000, the department shall
increase its expenditures to private sector providers for
engineering-related services at least one percentage point per year
until] the expenditure level for a state fiscal year in all
strategies paid to private sector providers for all department
engineering-related services for transportation projects is not
less than [reaches a minimum of] 35 percent of the total funds
appropriated in Strategy A.1.1. Plan/Design/Manage and Strategy
A.1.2. of the General Appropriations Act for that state fiscal
biennium. The department shall attempt to make expenditures for
engineering-related services with private sector providers under
this subsection with historically underutilized businesses, as
defined by Section 2161.001, Government Code, in an amount
consistent with the applicable provisions of the Government Code,
any applicable state disparity study, and in accordance with the
good-faith-effort procedures outlined in the rules adopted by the
Texas Building and Procurement [General Services] Commission.
[(d) The commission shall provide for hearings at which
private sector complaints relating to the selection process are
heard.]
SECTION 2.21. Chapter 223, Transportation Code, is amended
by adding Subchapter E to read as follows:

SUBCHAPTER E. COMPREHENSIVE DEVELOPMENT AGREEMENTS

Sec. 223.201. AUTHORITY. (a) Subject to Section 223.202,
the department may enter into a comprehensive development agreement
with a private entity to design, develop, finance, construct,
maintain, repair, operate, extend, or expand a:
(1) toll project;
(2) facility or a combination of facilities on the
Trans-Texas Corridor;
(3) state highway improvement project that includes
both tolled and nontolled lanes and may include nontolled
appurtenant facilities;
(4) state highway improvement project in which the
private entity has an interest in the project; or
(5) state highway improvement project financed wholly
or partly with the proceeds of private activity bonds, as defined by
Section 141(a), Internal Revenue Code of 1986.
(b) In this subchapter, “comprehensive development
agreement” means an agreement that, at a minimum, provides for the
design and construction, rehabilitation, expansion, or improvement
of a project described in Subsection (a) and may also provide for
the financing, acquisition, maintenance, or operation of a project
described in Subsection (a).
(c) The department may negotiate provisions relating to
professional and consulting services provided in connection with a
comprehensive development agreement.
(d) Money disbursed by the department under a comprehensive
development agreement is not included in the amount:
(1) required to be spent in a state fiscal biennium for
engineering and design contracts under Section 223.041; or
(2) appropriated in Strategy A.1.1.
Plan/Design/Manage of the General Appropriations Act for that
biennium for the purpose of making the computation under Section
223.041.
(e) The department may authorize the investment of public
and private money, including debt and equity participation, to
finance a function described by this section.
(f) The authority to enter into comprehensive development
agreements provided by this section expires on August 31, 2011.
(g) The department may combine in a comprehensive
development agreement under this subchapter a toll project and a
rail facility as defined by Section 91.001.
Sec. 223.202. LIMITATION ON DEPARTMENT FINANCIAL
PARTICIPATION. The amount of money disbursed by the department
from the state highway fund and the Texas mobility fund during a
federal fiscal year to pay the costs under comprehensive
development agreements may not exceed 40 percent of the obligation
authority under the federal-aid highway program that is distributed
to this state for that fiscal year.
Sec. 223.203. PROCESS FOR ENTERING INTO COMPREHENSIVE
DEVELOPMENT AGREEMENTS. (a) If the department enters into a
comprehensive development agreement, the department shall use a
competitive procurement process that provides the best value for
the department. The department may accept unsolicited proposals
for a proposed project or solicit proposals in accordance with this
section.
(b) The department 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 department considers
relevant or necessary.
(c) The department 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 department decides to issue a request for
qualifications for a proposed project; or
(2) the department 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) The department may interview a private entity
submitting an unsolicited proposal or responding to a request under
Subsection (c). The department 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 department
must qualify or shortlist at least two private entities to submit
detailed proposals for a project under Subsection (f) unless the
department does not receive more than one proposal or one response
to a request under Subsection (c).
(e-1) Notwithstanding the requirements of this section, the
department may prequalify a private entity to submit a detailed
proposal to provide services under a design-build contract. The
department is not required to publish a request under Subsection
(c) for a design-build contract, and may enter into a design-build
contract based solely on an evaluation of detailed proposals
submitted in response to a request under Subsection (f) by
prequalified private entities. The commission shall adopt rules
establishing criteria for the prequalification of a private entity
that include the precertification requirements applicable to
providers of engineering services and the qualification
requirements for bidders on highway construction contracts. Rules
for design-build projects adopted pursuant to this subsection shall
also provide for an expedited selection process that includes
design innovation as a selection criterion.
(e-2) In this section, “design-build contract” means a
comprehensive development agreement that includes the design and
construction of a turnpike project, does not include the financing
of a turnpike project, and may include the acquisition,
maintenance, or operation of a turnpike project.
(f) The department shall issue a request for detailed
proposals from all private entities qualified or shortlisted under
Subsection (e) or prequalified under Subsection (e-1) if the
department proceeds with the further evaluation of a proposed
project. A request under this subsection may require additional
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;
(5) a financial plan, including costing methodology
and cost proposals; or
(6) any other information the department considers
relevant or necessary.
(g) In issuing a request for proposals under Subsection (f),
the department may solicit input from entities qualified under
Subsection (e) or any other person. The department may also solicit
input regarding alternative technical concepts after issuing a
request under Subsection (f).
(h) The department 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 department.
(i) The department 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 department that the highest ranking proposal will
not provide the department with the overall best value, the
department may enter into negotiations with the private entity
submitting the next highest ranking proposal.
(k) The department may withdraw a request for competing
proposals and qualifications or a request for detailed proposals at
any time. The department may then publish a new request for
competing proposals and qualifications.
(l) The department 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) The department 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. 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.
(n) The department may prescribe the general form of a
comprehensive development agreement and may include any matter the
department considers advantageous to the department. The
department and the private entity shall finalize the specific terms
of a comprehensive development agreement.
(o) Subchapter A of this chapter and Chapter 2254,
Government Code, do not apply to a comprehensive development
agreement entered into under this subchapter.
Sec. 223.204. 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 223.203(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 the department
or its agent during consideration of a proposal for a comprehensive
development agreement.
(b) After the department completes its final ranking of
proposals under Section 223.203(h), the final rankings of each
proposal under each of the published criteria are not confidential.
Sec. 223.205. PERFORMANCE AND PAYMENT SECURITY.
(a) Notwithstanding Section 223.006 and the requirements of
Subchapter B, Chapter 2253, Government Code, the department shall
require a private entity entering into 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 department; 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 the department determines that it is impracticable
for a private entity to provide security in the amount described by
Subsection (b), the department shall set the amount of the bonds or
the alternative forms of security.
(d) A payment or performance bond or alternative form of
security is not required for the portion of an agreement that
includes only design or planning services, the performance of
preliminary studies, or the acquisition of real property.
(e) The amount of the payment security must not be less than
the amount of the performance security.
(f) In addition to or instead of a performance and payment
bond, the department may require one or more of the following
alternative forms of security:
(1) a cashier’s check drawn on a financial entity
specified by the department;
(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 department.
(g) The department by rule shall prescribe requirements for
an alternative form of security provided under this section.
Sec. 223.206. OWNERSHIP OF HIGHWAY. (a) A state highway
or another facility described by Section 223.201(a) 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 shall be owned by the department.
(b) Notwithstanding Subsection (a), the department 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 project,
including supplemental facilities. At the termination of the
agreement, the highway or other facilities are to be in a state of
proper maintenance as determined by the department and shall be
returned to the department in satisfactory condition at no further
cost.
(c) A highway asset or toll project that is used or leased by
a private entity under Section 202.052 or 228.053 for a commercial
purpose is not exempt from ad valorem taxation and is subject to
local zoning regulations and building standards.
(d) The department may not enter into a comprehensive
development agreement with a private entity under this subchapter
or Section 227.023 that provides for the lease, license, or other
use of rights-of-way or related property by the private entity for
the purpose of constructing, operating, or maintaining an ancillary
facility that is used for commercial purposes.
Sec. 223.207. LIABILITY FOR PRIVATE OBLIGATIONS. The
department may not incur a financial obligation for a private
entity that designs, develops, finances, constructs, maintains, or
operates a state highway or other facility under this subchapter.
The state or a political subdivision of the state is not liable for
any financial or other obligations of a project solely because a
private entity constructs, finances, or operates any part of the
project.
Sec. 223.208. TERMS OF PRIVATE PARTICIPATION. (a) The
department shall negotiate the terms of private participation under
this subchapter, including:
(1) methods to determine the applicable cost, profit,
and project distribution among the private participants and the
department;
(2) reasonable methods to determine and classify toll
rates and responsibility for the setting of tolls;
(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 or Section 227.023(c) may include any
provision that the department considers appropriate, including
provisions:
(1) providing for the purchase by the department,
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 highway or other
facility designed, developed, financed, constructed, operated, or
maintained under the comprehensive development agreement;
(2) establishing the purchase price for the interest
of a private participant in the comprehensive development agreement
and related property, which price may be determined in accordance
with the methodology established by the parties in the
comprehensive development agreement;
(3) providing for the payment of obligations incurred
pursuant to the comprehensive development agreement, including any
obligation to pay the purchase price for the interest of a private
participant in the comprehensive development agreement, from any
lawfully available source, including securing such obligations by a
pledge of revenues of the commission or the department derived from
the applicable project, which pledge shall have such priority as
the department may establish;
(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 project; and
(6) restricting the right of the commission or the
department to terminate the private participant’s right to operate
and collect revenue from the project unless and until any
applicable termination payments have been made.
(c) The department may enter into a comprehensive
development agreement under this subchapter or under Section
227.023(c) 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 223.207 does not apply to the obligations of the
department under a comprehensive development agreement.
(e) Notwithstanding anything in Section 201.112 or other
law to the contrary, and subject to compliance with the dispute
resolution procedures set out in the comprehensive development
agreement, an obligation of the commission or the department under
a comprehensive development agreement entered into under this
subchapter or Section 227.023(c) 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 commission,
the department, and the comptroller in a district court of Travis
County, and the sovereign immunity of the state is waived for that
purpose. The district courts of Travis County 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) A comprehensive development agreement entered into
under this subchapter or Section 227.023(c) and any obligations
incurred, issued, or owed under the agreement does not constitute a
state security under Chapter 1231, Government Code.
(g) If the department 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 department 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.
(h) 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. The
comprehensive development agreement 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.
Sec. 223.209. RULES, PROCEDURES, AND GUIDELINES GOVERNING
SELECTION AND NEGOTIATING PROCESS. (a) The commission shall adopt
rules, procedures, and guidelines governing selection of a
developer for a comprehensive development agreement and
negotiations to promote fairness, obtain private participants in
projects, and promote confidence among those participants. The
rules must contain criteria relating to the qualifications of the
participants and the award of the contracts.
(b) The department shall have up-to-date procedures for
participation in negotiations under this subchapter.
(c) The department has exclusive judgment to determine the
terms of an agreement.
SECTION 2.22. Section 224.151(9), Transportation Code, is
amended to read as follows:
(9) “Restricted lane” includes:
(A) a high occupancy vehicle lane;
(B) a toll lane under Section 228.007 [224.154];
and
(C) an exclusive lane.
SECTION 2.23. Subchapter B, Chapter 225, Transportation
Code, is amended by adding Section 225.061 to read as follows:
Sec. 225.061. SPEAKER JIMMY TURMAN ROAD. (a)
Farm-to-Market Road 68 in Fannin County is designated as Speaker
Jimmy Turman Road.
(b) The department shall design and construct markers
indicating the road number, the designation as Speaker Jimmy Turman
Road, and any other appropriate information.
(c) Except as provided by Subsection (d), the department
shall erect a marker at each end of the road and at appropriate
intermediate sites along the road.
(d) The department is not required to design, construct, or
erect a marker required by this section unless a grant or donation
of private funds is made to the department to cover the cost of the
design, construction, and erection of the marker.
(e) Money received under Subsection (d) shall be deposited
to the credit of the state highway fund.
SECTION 2.24. Section 227.001(9), Transportation Code, is
amended to read as follows:
(9) “Turnpike” has the meaning assigned to toll
[turnpike] project under Section 201.001(b) [361.001].
SECTION 2.25. Subchapter A, Chapter 227, Transportation
Code, is amended by adding Section 227.004 to read as follows:
Sec. 227.004. ENVIRONMENTAL DOCUMENTATION. (a) The
department shall include in a draft or final environmental impact
statement prepared as part of the environmental review of a
Trans-Texas Corridor project information detailing:
(1) the reasons for the immediate and future needs of
the project;
(2) the reasonableness of and necessity for the
project; and
(3) after a segment of the project has advanced:
(A) the reasons for the immediate and future
needs for each mode of transportation in that segment of the
project; and
(B) the reasonableness and necessity for each
mode of transportation in that segment of the project.
(b) After receiving approval from the federal government,
the department shall:
(1) post the final environmental impact statement on
the department’s Internet website, along with information
concerning where a copy of the environmental impact statement may
be reviewed or obtained; and
(2) provide notice to each state senator and
representative who represents all or part of the area in which a
segment of the project is located, and the commissioners court of
each county in which a segment of the project is located, that the
environmental impact statement is available on the department’s
Internet website.
SECTION 2.26. Section 227.021, Transportation Code, is
amended by adding Subsection (f) to read as follows:
(f) The department may not limit the public’s direct access
to or from the Trans-Texas Corridor with the intent to benefit the
economic viability of an ancillary facility.
SECTION 2.27. Section 227.023, Transportation Code, is
amended by amending Subsection (c) and adding Subsections (d), (e),
and (f) to read as follows:
(c) To the extent and in the manner that the department may
enter into comprehensive development agreements under Chapter 223
[361 with regard to turnpikes], the department may enter into a
comprehensive development agreement under this chapter that
provides for the financing, development, design, construction, or
operation of a facility or a combination of facilities on the
Trans-Texas Corridor. All provisions of Chapter 223 [361] relating
to comprehensive development agreements [for turnpikes] apply to
comprehensive development agreements for facilities under this
chapter, including provisions relating to the confidentiality of
information. Claims arising under a comprehensive development
agreement are subject to Section 201.112.
(d) Property that is licensed or leased to a private entity
under Section 227.082 for a commercial purpose is not exempt from ad
valorem taxation and is subject to local zoning regulations and
building standards.
(e) If a contract between the department and a private
entity includes the collection by the private entity of a fee for
the use of a facility or a combination of facilities that are part
of the Trans-Texas Corridor, the private entity shall submit to the
department for approval:
(1) the methodology for:
(A) the setting of the amount of a fee; and
(B) increasing the amount of the fee;
(2) a plan outlining methods the entity will use to
collect the fee, including:
(A) any charge to be imposed as a penalty for late
payment of the fee; and
(B) any charge to be imposed to recover the cost
of collecting a delinquent fee; and
(3) any proposed change in an approved methodology for
the setting of the amount of a fee or a plan for collecting the fee.
(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.
SECTION 2.28. Section 227.028(a), Transportation Code, is
amended to read as follows:
(a) Subject to Section 201.617(a-1), the [The] department
may acquire, maintain, hold, restore, enhance, develop, or
redevelop property for the purpose of mitigating a past, present,
or future adverse environmental effect arising from the
construction or operation of any part of the Trans-Texas Corridor
without regard to whether the need for mitigation is established
for a particular project.
SECTION 2.29. Section 227.029(b), Transportation Code, is
amended to read as follows:
(b) If the department finds it necessary to change the
location of a portion of a facility, it shall reconstruct the
facility at a [the] location that the department determines
restores the utility of the facility [to be most favorable]. The
reconstructed facility must be of substantially the same type and
in as good condition as the original facility. The department shall
determine and pay the cost of the reconstruction and any damage
incurred in changing the location of a facility.
SECTION 2.30. Subchapter C, Chapter 227, Transportation
Code, is amended by adding Sections 227.032, 227.033, and 227.034
to read as follows:
Sec. 227.032. HIGHWAYS INTERSECTING TRANS-TEXAS CORRIDOR.
(a) The department shall ensure that, at each intersection of a
segment of a state highway that is designated as part of the
Trans-Texas Corridor and a segment of a highway that is designated
as an interstate highway, state highway, or United States highway,
the Trans-Texas Corridor and the interstate highway, state highway,
or United States highway are directly accessible to each other.
(b) The department shall make every reasonable effort to
connect a segment of a state highway that is designated as part of
the Trans-Texas Corridor with significant farm-to-market and
ranch-to-market roads and major county and city arterials included
in the locally adopted long-range transportation plan as determined
by the department, taking into consideration:
(1) financial feasibility;
(2) advice solicited from:
(A) county commissioners courts;
(B) governing bodies of municipalities; and
(C) metropolitan planning organizations;
(3) circuity of travel for landowners;
(4) access for emergency vehicles; and
(5) traffic volume.
Sec. 227.033. GROUNDWATER. (a) After receipt of an
unsolicited proposal or after soliciting proposals to construct a
facility for the transportation of groundwater from the county in
which the groundwater is pumped or extracted, but not later than the
90th calendar day before entering into a lease agreement, license
agreement, or franchise agreement for the use of any part of the
Trans-Texas Corridor for that purpose, the department shall provide
written notice of the proposal or the solicitation to:
(1) each groundwater conservation district,
subsidence district, or other local water authority having
territory in the county in which the groundwater is pumped or
extracted; and
(2) the commissioners court of the county in which the
groundwater is pumped or extracted.
(b) The department may not pump or extract, or allow the
pumping or extracting, of groundwater from the right-of-way of the
Trans-Texas Corridor unless the groundwater is needed for the
construction, operation, or maintenance of a facility other than a
public utility facility. If a well drilled and operated on the
Trans-Texas Corridor is located inside the boundaries of a
groundwater conservation district or a subsidence district, the
well is subject to the rules of the district.
Sec. 227.034. PROHIBITION AGAINST LIMITING OR PROHIBITING
CONSTRUCTION OF TRANSPORTATION PROJECTS. (a) A contract for the
acquisition, construction, maintenance, or operation of a facility
on the Trans-Texas Corridor may not contain a provision that limits
or prohibits construction or operation of a highway or other
transportation project that is:
(1) included in the unified transportation program of
the department in effect at the time the contract is executed;
(2) a project of a local government; or
(3) constructed or operated for the safety of
pedestrian or vehicular traffic.
(b) In this section, “transportation project” has the
meaning assigned by Section 370.003.
SECTION 2.31. Section 227.041, Transportation Code, is
amended by amending Subsections (a) and (b) and adding Subsections
(b-1), and (d), and (e) to read as follows:
(a) Except as otherwise provided by this subchapter, the
commission has the same powers and duties relating to the
condemnation and acquisition of real property for a facility of the
Trans-Texas Corridor that the commission and the department have
relating to the condemnation or purchase of real property under
Subchapter D, Chapter 203, [361, and Section 361.233] for a toll
[turnpike] project. The commission may purchase an option to
purchase property, other than real property, a property right, or a
right-of-way used for a public utility facility, that the
commission is considering for possible use as part of the
Trans-Texas Corridor even if it has not been finally decided that
the Trans-Texas Corridor will be located on that property. An
option to purchase may be purchased along alternative potential
routes for the Trans-Texas Corridor even if only one of those
potential routes will be selected as the final route.
(b) An interest in real property or a property right is
necessary or convenient for the construction or operation of a
facility if it is located in or contiguous to an existing or planned
segment of the Trans-Texas Corridor or is needed for mitigation of
adverse environmental effects, and if its acquisition will further
the primary purposes of the Trans-Texas Corridor. Primary purposes
include:
(1) providing right-of-way or a location for a
facility;
(2) providing land for mitigation of adverse
environmental effects;
(3) providing buffer zones for scenic or safety
purposes;
(4) allowing for possible future expansion of any
facility; and
(5) providing a location for a gas station,
convenience store, or similar facility [generating revenue,
directly or indirectly, for use in constructing or operating the
Trans-Texas Corridor from or for ancillary facilities that directly
benefit users of the Trans-Texas Corridor].
(b-1) The commission may not acquire property for an
ancillary facility that will be used for commercial purposes,
except to provide a location between the main lanes of a highway or
between a highway and a department rail facility for a gas station,
convenience store, or similar facility that:
(1) provides services to and directly benefits users
of the Trans-Texas Corridor; and
(2) is not located within 10 miles of an intersection
of a segment of a state highway that is designated as part of the
Trans-Texas Corridor and a segment of a state highway that is
designated as an interstate highway.
(d) If the commission acquires property not immediately
needed for department purposes, the department is encouraged to
acquire an option to purchase the property under Subsection (a) or
to lease back purchased land under Section 227.043 to continue the
agricultural or recreational use of the property.
(e) The commission may not condemn property contiguous to an
existing or planned segment of the Trans-Texas Corridor for an
ancillary facility.
SECTION 2.32. Subchapter D, Chapter 227, Transportation
Code, is amended by adding Section 227.047 to read as follows:
Sec. 227.047. ALTERNATIVE ACCESS TO SEVERED PROPERTY. If
the department acquires a tract for the Trans-Texas Corridor that
severs an owner’s property, the department may allow the owner to
build, in compliance with federal law, an alternative access
between the severed tracts below the tract acquired by the
department. An owner must obtain department approval of the design
specifications of the alternative access.
SECTION 2.32A. Subchapter D, Chapter 227, Transportation
Code, is amended by adding Section 227.0415 to read as follows:
Sec. 227.0415. DEVELOPMENT RIGHTS. (a) In connection with
the acquisition of property located in an existing or planned
segment of the Trans-Texas Corridor for the purpose of providing a
location for an ancillary facility to be used for a commercial
purpose, the owner of the property to be acquired may elect to
retain the right to develop the property in accordance with the
department’s development plans. If more than one person owns an
interest in the property, the election under this subsection must
be made by unanimous written consent of all persons who own an
interest in the property.
(b) If the owner does not develop the property within the
time period set out in the department’s development plans, the
department may acquire the development rights for the property by
purchase or condemnation.
(c) Property that is developed by the owner under this
section is not exempt from ad valorem taxation and is subject to
local zoning regulations and building standards.
SECTION 2.33. Section 227.062(c), Transportation Code, is
amended to read as follows:
(c) The [Each fiscal year, the total amount disbursed by
the] department may not spend money from the general revenue fund
[out of state and federal funds shall not exceed $25 million] for
the construction or purchase of non-highway facilities on the
Trans-Texas Corridor except pursuant to a line-item appropriation.
[This subsection does not apply to funds derived from the issuance
of bonds, private investment, donations, the Federal Transit
Administration, or the Federal Railroad Administration. This
subsection also does not apply to:
[(1) activities that are subject to the limitation in
Subsection (a); and
[(2) activities described in Subsection (b)(1).]
SECTION 2.33A. Section 227.082, Transportation Code, is
amended by amending Subsections (c) and (d) and adding Subsection
(f) to read as follows:
(c) The department may grant an exclusive or nonexclusive
license to access or use any portion of the Trans-Texas Corridor
[for any purpose]. A license granted under this section may be for
a definite or indefinite term. The department may not grant an
exclusive license to access or use a highway on the Trans-Texas
Corridor. The department may not grant an exclusive license for use
of the Trans-Texas Corridor by an owner of a public utility facility
if the exclusive use is prohibited by other law.
(d) Property may be leased or a franchise or license granted
for any purpose reasonably necessary for the effective[, including]
use or operation of a facility and to provide a location between the
main lanes of a highway or between a highway and a department rail
facility for a gas station, convenience store, or a similar
facility that:
(1) provides services to and directly benefits users
of the Trans-Texas Corridor; and
(2) is not located within 10 miles of an intersection
of a segment of a state highway that is designated as part of the
Trans-Texas Corridor and a segment of a state highway that is
designated as an interstate highway [as a facility and use for
unrelated commercial, industrial, or agricultural purpose].
(f) The department may lease property or grant a franchise
or license under this section only if each agreement has been
approved by the commissioners court of the county in which the
property, facility, or other part of the Trans-Texas Corridor is
located. This subsection does not apply to a lease of property or a
grant of a franchise or license to a private entity for the purpose
of operating a highway, turnpike, rail facility, or utility
facility under a comprehensive development agreement.
SECTION 2.34. Subtitle B, Title 6, Transportation Code, is
amended by adding Chapter 228, and Sections 361.001, 361.301,
361.307, and 361.032, Transportation Code, are transferred to
Chapter 228, Transportation Code, designated as Subchapter A, and
amended to read as follows:

CHAPTER 228. STATE HIGHWAY TOLL PROJECTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 228.001 [361.001]. DEFINITIONS. In this chapter:
(1) “Air quality project” means a project or program
of the department or another governmental entity that the
commission determines will mitigate or prevent air pollution caused
by the construction, maintenance, or use of public roads.
[“Authority” means the Texas Turnpike Authority division of the
Texas Department of Transportation.]
(2) “Bond” means bonds, notes, or other obligations
issued under Subchapter C or another law with respect to a toll
project or system. [“Owner” includes a person having title to or an
interest in any property, rights, easements, and interests
authorized to be acquired under this chapter.]
(3) “Region” means:
(A) a metropolitan statistical area and any
county contiguous to that metropolitan statistical area; or
(B) two adjacent districts of the department.
(4) “System” means a toll project or any combination
of toll projects designated as a system under Section 228.010.
(5) “Toll [“Turnpike] project” has the meaning
assigned by Section 201.001(b) [means a toll highway constructed,
maintained, or operated under this chapter as part of the state
highway system and any improvement, extension, or expansion to the
highway and includes:
[(A) a facility to relieve traffic congestion and
promote safety;
[(B) a bridge, tunnel, overpass, underpass,
interchange, entrance plaza, approach, toll house, service road,
ramp, or service station;
[(C) an administration, storage, or other
building the department considers necessary to operate the project;
[(D) property rights, easements, and interests
the department acquires to construct or operate the project;
[(E) a parking area or structure, rest stop,
park, and any other improvement or amenity the department considers
necessary, useful, or beneficial for the operation of a turnpike
project; and
[(F) a toll-free facility that is appurtenant to
and necessary for the efficient operation of a turnpike project,
including a service road, access road, ramp, interchange, bridge,
or tunnel].
(6) “Transportation project” means:
(A) a tolled or nontolled state highway
improvement project;
(B) a toll project eligible for department cost
participation under Section 222.103;
(C) the acquisition, construction, maintenance,
or operation of a rail facility or system under Chapter 91;
(D) the acquisition, construction, maintenance,
or operation of a state-owned ferry under Subchapter A, Chapter
342;
(E) a public transportation project under
Chapter 455 or 456;
(F) the establishment, construction, or repair
of an aviation facility under Chapter 21; and
(G) a passenger rail project of another
governmental entity. [(4) “Regional tollway authority” means a
regional tollway authority created under Chapter 366.]
Sec. 228.002 [361.301]. AGREEMENTS WITH PUBLIC [OR
PRIVATE] ENTITIES [TO CONSTRUCT, MAINTAIN, REPAIR, AND OPERATE
TURNPIKE PROJECTS]. (a) The [Notwithstanding Section 361.231 and
Subchapter A, Chapter 2254, Government Code, the] department may
enter into an agreement with a public [or private] entity[,
including a toll road corporation,] to permit the entity,
independently or jointly with the department, to design, develop,
finance, construct, maintain, repair, or [and] operate a toll
project [turnpike projects].
(b) An agreement entered into under this section with a
regional tollway authority governed by Chapter 366 may provide that
a function described by Subsection (a) that is performed by a
regional tollway authority is governed by the provisions of Chapter
366 applicable to the performance of the same function for a
turnpike project under that chapter and the rules and procedures
adopted by the regional tollway authority under that chapter, in
lieu of the laws, rules, or procedures applicable to the department
for the performance of the same function. [The department may
authorize the investment of public and private money, including
debt and equity participation, to finance a function described by
this section.]
Sec. 228.003 [361.307]. AGREEMENTS WITH [PRIVATE ENTITIES
AND] OTHER GOVERNMENTAL AGENCIES. (a) The department [and a
private entity jointly] may, with the approval of the commission,
enter into an agreement with another governmental agency or entity,
including a federal agency, an agency of this or another state,
including the United Mexican States or a state of the United Mexican
States, or a political subdivision, to independently or jointly
provide services, to study the feasibility of a toll [turnpike]
project, or to finance, construct, operate, and maintain a toll
[turnpike] project. The department must obtain the approval of the
governor to enter into an agreement with an agency of another state,
the United Mexican States, or a state of the United Mexican States.
(b) If the department enters into an agreement with a
private entity, including a comprehensive development agreement
under Subchapter E, Chapter 223, the department and the private
entity may jointly enter into an agreement under Subsection (a).
[The department may not enter into an agreement with the United
Mexican States or a state of the United Mexican States without the
approval of the governor.]
Sec. 228.004. PROMOTION OF TOLL PROJECT.
[361.032. GENERAL POWERS AND DUTIES. (a) The commission shall
adopt rules for the implementation and administration of this
chapter.
[(b)] The department may,[:
[(1) construct, maintain, repair, and operate
turnpike projects in this state;
[(2) acquire, hold, and dispose of property in the
exercise of its powers and the performance of its duties under this
chapter;
[(3) with the approval of the governor and the
commission, enter into contracts or operating agreements with
similar authorities or agencies of another state, including a state
of the United Mexican States;
[(4) enter into contracts or agreements necessary or
incidental to its duties and powers under this chapter;
[(5) employ consulting engineers, accountants,
construction and financial experts, superintendents, managers, and
other employees and agents the department considers necessary and
set their compensation;
[(6) receive grants for the construction of a turnpike
project and receive contributions of money, property, labor, or
other things of value from any source to be used for the purposes
for which the grants or contributions are made;
[(7)] notwithstanding Chapter 2113, Government Code,
engage in marketing, advertising, and other activities to promote
the development and use of toll [turnpike] projects and may enter
into contracts or agreements necessary to procure marketing,
advertising, or other promotional services from outside service
providers[; and
[(8) do all things necessary or appropriate to carry
out the powers expressly granted by this chapter].
SECTION 2.35. Subchapter A, Chapter 228, Transportation
Code, is amended by adding Sections 228.005 and 228.0055 to read as
follows:
Sec. 228.005. REVENUE OF TOLL PROJECT OR SYSTEM. Except as
provided by Subchapter C, toll revenue or other revenue derived
from a toll project or system that is collected or received by the
department under this chapter, and a payment received by the
department under a comprehensive development agreement for a toll
project or system:
(1) shall be deposited in the state highway fund; and
(2) is exempt from the application of Section 403.095,
Government Code.
Sec. 228.0055. USE OF CONTRACT PAYMENTS. Payments received
by the department under a comprehensive development agreement may
be used by the department to finance the construction, maintenance,
or operation of a transportation project or air quality project in
the region.
SECTION 2.36. Sections 361.189 and 224.154, Transportation
Code, are transferred to Subchapter A, Chapter 228, Transportation
Code, redesignated as Sections 228.006 and 228.007, Transportation
Code, and amended to read as follows:
Sec. 228.006 [361.189]. USE OF SURPLUS REVENUE. (a) The
commission shall [by order may] authorize the use of surplus
revenue of a toll [turnpike] project or system to pay the costs of a
transportation [another turnpike] project, highway project, or air
quality project within a department district in which any part of
the toll project is located [the region].
(b) The commission may not 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 district’s
allocation because of a payment under Subsection (a).
(c) The commission [in the order prescribe terms for the use
of the revenue, including the pledge of the revenue, but] may not
take an action under this section that violates, impairs, or is
inconsistent with a bond order, trust agreement, or indenture
governing the use of the surplus revenue.
Sec. 228.007 [224.154]. TOLL LANES. (a) Subject to
Section 228.201 [Notwithstanding any law of this state relating to
charging tolls on existing free public highways, and subject to
Section 224.1541(d)], the commission may by order authorize the
department to charge a toll for the use of one or more lanes of a
state highway [facility], including a high occupancy vehicle lane
designated under Section 224.153 or an exclusive lane designated
under Section 224.1541[, for the purposes of congestion
mitigation].
(b) If the commission authorizes the department to charge a
toll under Subsection (a), the department may enter into an
agreement with a regional tollway authority described in Chapter
366, a transit authority described in Chapter 451, 452, or 453, a
coordinated county transportation authority under Chapter 460, a
regional mobility authority under Chapter 370 [361], a county
acting under Chapter 284, or a transportation corporation:
(1) to design, construct, operate, or maintain a toll
lane under this section; and
(2) to charge a toll for the use of one or more lanes of
a state highway facility under this section.
(c) The commission may by order authorize the department or
the entity contracted to operate the toll lane to set the amount of
toll charges. Any toll charges shall be imposed in a reasonable and
nondiscriminatory manner.
(d) [Revenue generated from toll charges and collection
fees assessed by the department in connection with a toll lane shall
be deposited in the state highway fund and may be used only for
projects for the improvement of the state highway system.] Revenue
generated from toll charges and collection fees assessed by an
entity with whom the department contracts under this section shall
be allocated as required by the terms of the agreement.
[(e) The powers granted by this section are subject to the
restrictions of 23 U.S.C. Section 129.]
SECTION 2.37. Section 224.1541(d), Transportation Code, is
transferred to Subchapter A, Chapter 228, Transportation Code,
redesignated as Section 228.008, Transportation Code, and amended
to read as follows:
Sec. 228.008. TOLLS ON EXCLUSIVE LANE. [(d)] The
department may not charge a toll for the use of an exclusive lane
unless:
(1) the lanes or multilane facility adjacent to the
exclusive lane is tolled; or
(2) a vehicle that is authorized to use the tolled
exclusive lane is authorized to use nontolled adjacent lanes or an
adjacent nontolled multilane facility.
SECTION 2.38. Section 361.033, Transportation Code, is
transferred to Subchapter A, Chapter 228, Transportation Code,
redesignated as Section 228.009, Transportation Code, and amended
to read as follows:
Sec. 228.009 [361.033]. AUDIT. Notwithstanding any other
law to the contrary, the department shall have an independent
certified public accountant audit the department’s books and
accounts for each toll project or system [activities under this
chapter] at least annually. The audit shall be conducted in
accordance with the requirements of any trust agreement securing
bonds issued under Subchapter C [this chapter] that is in effect at
the time of the audit. The cost of the audit may be treated as part
of the cost of construction or operation of a toll project or system
[turnpike project]. This section does not affect the ability of a
state agency to audit the department’s books and accounts.
SECTION 2.39. Subchapter A, Chapter 228, Transportation
Code, is amended by adding Section 228.010 to read as follows:
Sec. 228.010. ESTABLISHMENT OF TOLL SYSTEMS. (a) If the
commission determines that the mobility needs of a region of this
state could be most efficiently and economically met by jointly
operating two or more toll projects in that region as one
operational and financial enterprise, it may create a system
composed of those projects. The commission may create more than one
system in a region and may combine two or more systems in a region
into one system. The department may finance, acquire, construct,
and operate additional toll projects in the region as additions to
or expansions of a system if the commission determines that the toll
project could most efficiently and economically be acquired or
constructed if it were part of the system and that the addition will
benefit the system.
(b) The revenue of a system shall be accounted for
separately and may not be commingled with the revenue of a toll
project that is not part of the system or with the revenue of
another system.
SECTION 2.40. Chapter 228, Transportation Code, is amended
by adding Subchapter B to read as follows:

SUBCHAPTER B. USE AND OPERATION OF TOLL PROJECTS OR SYSTEMS

Sec. 228.051. DESIGNATION. Subject to Section 228.201, the
commission by order may designate one or more lanes of a segment of
the state highway system as a toll project or system.
Sec. 228.052. OPERATION OF TOLL PROJECT OR SYSTEM. The
department may enter into an agreement with one or more persons to
provide, on terms approved by the department, personnel, equipment,
systems, facilities, and services necessary to operate a toll
project or system, including the operation of toll plazas and lanes
and customer service centers and the collection of tolls.
SECTION 2.41. Sections 361.179, 361.252, 361.253, 361.254,
361.255, and 361.256, Transportation Code, are transferred to
Subchapter B, Chapter 228, Transportation Code, redesignated as
Sections 228.053, 228.054, 228.055, 228.056, 228.057, and 228.058,
Transportation Code, and amended to read as follows:
Sec. 228.053 [361.179]. REVENUE. (a) The department may:
(1) impose tolls for the use of each toll [turnpike]
project or system and the different segments or parts of each
[turnpike] project or system; and
(2) notwithstanding anything in Chapter 202 to the
contrary, contract with a person for the use of part of a toll
[turnpike] project or system or lease part of a toll [turnpike]
project or system for a gas station, garage, store, hotel,
restaurant, railroad tracks, utilities, and telecommunications
facilities and equipment and set the terms for the use or lease.
(b) The tolls shall be set so that, at a minimum, the
aggregate of tolls from the toll [turnpike] project or system:
(1) provides a fund sufficient with other revenue and
contributions, if any, to pay:
(A) the cost of maintaining, repairing, and
operating the project or system; and
(B) the principal of and interest on the bonds
issued under Subchapter C for the project or system as those bonds
become due and payable; and
(2) creates reserves for the purposes listed under
Subdivision (1).
(c) The tolls are not subject to supervision or regulation
by any other state agency.
(d) The tolls and other revenue derived from the toll
[turnpike] project or system for which bonds were issued, except
the part necessary to pay the cost of maintenance, repair, and
operation and to provide reserves for those costs as may be provided
in the order authorizing the issuance of the bonds or in the trust
agreement securing the bonds, shall be set aside at regular
intervals as may be provided in the order or trust agreement in a
sinking fund that is pledged to and charged with the payment of:
(1) interest on the bonds as it becomes due;
(2) principal of the bonds as it becomes due;
(3) necessary charges of paying agents for paying
principal and interest; and
(4) the redemption price or the purchase price of
bonds retired by call or purchase as provided by the bonds.
(e) Use and disposition of money to the credit of the
sinking fund are subject to the order authorizing the issuance of
the bonds or to the trust agreement.
(f) The revenue and disbursements for each toll [turnpike]
project or system shall be kept separately. The revenue from one
[turnpike] project may not be used to pay the cost of another
project except as authorized by Sections 228.0055 and 228.006
[Section 361.189].
(g) Money in the sinking fund, less the reserve provided by
the order or trust agreement, if not used within a reasonable time
to purchase bonds for cancellation, shall be applied to the
redemption of bonds at the applicable redemption price.
Sec. 228.054 [361.252]. FAILURE OR REFUSAL TO PAY TOLL;
OFFENSE. (a) The operator of a vehicle, other than an authorized
emergency vehicle, that is driven or towed through a toll
collection facility shall pay the proper toll.
(b) The operator of a vehicle who drives or tows a vehicle
through a toll collection facility and does not pay the proper toll
commits an offense.
(c) An offense under this section is a misdemeanor
punishable by a fine not to exceed $250.
(d) In this section, “authorized emergency vehicle” has the
meaning assigned by Section 541.201.
Sec. 228.055 [361.253]. ADMINISTRATIVE FEE; NOTICE;
OFFENSE. (a) In the event of nonpayment of the proper toll as
required by Section 228.054 [361.252], on issuance of a written
notice of nonpayment, the registered owner of the nonpaying vehicle
is liable for the payment of both the proper toll and an
administrative fee.
(b) The department may impose and collect the
administrative fee, so as to recover the cost of collecting the
unpaid toll, not to exceed $100. The department shall send a
written notice of nonpayment to the registered owner of the vehicle
at that owner’s address as shown in the vehicle registration
records of the department by first class mail [not later than the
30th day after the date of the alleged failure to pay] and may
require payment not sooner than the 30th day after the date the
notice was mailed. The registered owner shall pay a separate toll
and administrative fee for each event of nonpayment under Section
228.054 [361.252].
(c) The registered owner of a vehicle for which the proper
toll was not paid who is mailed a written notice of nonpayment under
Subsection (b) and fails to pay the proper toll and administrative
fee within the time specified by the notice of nonpayment commits an
offense. Each failure to pay a toll or administrative fee under
this subsection is a separate offense.
(d) It is an exception to the application of Subsection (a)
or (c) if the registered owner of the vehicle is a lessor of the
vehicle and not later than the 30th day after the date the notice of
nonpayment is mailed provides to the department a copy of the
rental, lease, or other contract document covering the vehicle on
the date of the nonpayment under Section 228.054 [361.252], with
the name and address of the lessee clearly legible. If the lessor
provides the required information within the period prescribed, the
department may send a notice of nonpayment to the lessee at the
address shown on the contract document by first class mail before
the 30th day after the date of receipt of the required information
from the lessor. The lessee of the vehicle for which the proper
toll was not paid who is mailed a written notice of nonpayment under
this subsection and fails to pay the proper toll and administrative
fee within the time specified by the notice of nonpayment commits an
offense. The lessee shall pay a separate toll and administrative
fee for each event of nonpayment. Each failure to pay a toll or
administrative fee under this subsection is a separate offense.
(e) It is an exception to the application of Subsection (a)
or (c) if the registered owner of the vehicle transferred ownership
of the vehicle to another person before the event of nonpayment
under Section 228.054 [361.252] occurred, submitted written notice
of the transfer to the department in accordance with Section
520.023, and, before the 30th day after the date the notice of
nonpayment is mailed, provides to the department the name and
address of the person to whom the vehicle was transferred. If the
former owner of the vehicle provides the required information
within the period prescribed, the department may send a notice of
nonpayment to the person to whom ownership of the vehicle was
transferred at the address provided the former owner by first class
mail before the 30th day after the date of receipt of the required
information from the former owner. The subsequent owner of the
vehicle for which the proper toll was not paid who is mailed a
written notice of nonpayment under this subsection and fails to pay
the proper toll and administrative fee within the time specified by
the notice of nonpayment commits an offense. The subsequent owner
shall pay a separate toll and administrative fee for each event of
nonpayment under Section 228.054 [361.252]. Each failure to pay a
toll or administrative fee under this subsection is a separate
offense.
(f) An offense under this section is a misdemeanor
punishable by a fine not to exceed $250.
(g) The court in which a person is convicted of an offense
under this section shall also collect the proper toll and
administrative fee and forward the toll and fee to the department
for deposit in the depository bank used for that purpose.
(h) In this section, “registered owner” means the owner of a
vehicle as shown on the vehicle registration records of the
department or the analogous department or agency of another state
or country.
(i) The department may contract, in accordance with Section
2107.003, Government Code, with a person to collect the unpaid toll
and administrative fee before referring the matter to a court with
jurisdiction over the offense.
Sec. 228.056 [361.254]. PRESUMPTIONS; PRIMA FACIE
EVIDENCE; DEFENSES. (a) In the prosecution of an offense under
Section 228.054 [361.252] or 228.055 [361.253], proof that the
vehicle was driven or towed through the toll collection facility
without payment of the proper toll may be shown by a video
recording, photograph, electronic recording, or other appropriate
evidence, including evidence obtained by automated enforcement
technology.
(b) In the prosecution of an offense under Section
228.055(c) [361.253(c)], (d), or (e):
(1) it is presumed that the notice of nonpayment was
received on the fifth day after the date of mailing;
(2) a computer record of the department of the
registered owner of the vehicle is prima facie evidence of its
contents and that the defendant was the registered owner of the
vehicle when the underlying event of nonpayment under Section
228.054 [361.252] occurred; and
(3) a copy of the rental, lease, or other contract
document covering the vehicle on the date of the underlying event of
nonpayment under Section 228.054 [361.252] is prima facie evidence
of its contents and that the defendant was the lessee of the vehicle
when the underlying event of nonpayment under Section 228.054
[361.252] occurred.
(c) It is a defense to prosecution under Section 228.055(c)
[361.253(c)], (d), or (e) that the motor vehicle in question was
stolen before the failure to pay the proper toll occurred and had
not been recovered before the failure to pay occurred, but only if
the theft was reported to the appropriate law enforcement authority
before the earlier of:
(1) the occurrence of the failure to pay; or
(2) eight hours after the discovery of the theft.
Sec. 228.057 [361.255]. ELECTRONIC TOLL COLLECTION [USE
AND RETURN OF TRANSPONDERS]. (a) For purposes of this section, a
“transponder” means a device, placed on or within an automobile,
that is capable of transmitting information used to assess or to
collect tolls. A transponder is “insufficiently funded” when there
are no remaining funds in the account in connection with which the
transponder was issued.
(b) Any peace officer of this state may seize a stolen or
insufficiently funded transponder and return it to the department,
except that an insufficiently funded transponder may not be seized
sooner than the 30th day after the date the department has sent a
notice of delinquency to the holder of the account.
(c) The department may enter into an agreement with one or
more persons to market and sell transponders for use on department
toll roads.
(d) The department may charge reasonable fees for
administering electronic toll collection customer accounts.
(e) Electronic toll collection customer account
information, including contact and payment information and trip
data, is confidential and not subject to disclosure under Chapter
552, Government Code.
(f) A contract for the acquisition, construction,
maintenance, or operation of a toll project must ensure the
confidentiality of all electronic toll collection customer account
information under Subsection (e).
Sec. 228.058 [361.256]. AUTOMATED ENFORCEMENT TECHNOLOGY.
(a) To aid in the collection of tolls and in the enforcement of
toll violations, the department may use automated enforcement
technology that it determines is necessary, including automatic
vehicle license plate identification photography and video
surveillance, by electronic imaging or photographic copying.
(b) Automated enforcement technology approved by the
department under Subsection (a) may be used only for the purpose of
producing, depicting, photographing, or recording an image of a
license plate attached to the front or rear of a vehicle.
(c) This section does not authorize the use of automated
enforcement technology for any other purpose.
(d) Evidence obtained from technology approved by the
department under Subsection (a) may not be used in the prosecution
of an offense other than under Section 228.054 [361.252] or 228.055
or in the prosecution of a capital offense [361.253].
SECTION 2.42. Sections 361.004, 361.171, 361.172, 361.173,
361.174, 361.1751, 361.1752, 361.1753, 361.176, 361.177, 361.178,
361.183, 361.185, 361.186, 361.187, and 361.188, Transportation
Code, are transferred to Chapter 228, Transportation Code,
designated as Subchapter C, and amended to read as follows:

SUBCHAPTER C. TOLL REVENUE BONDS

Sec. 228.101 [361.004]. CONSTRUCTION COSTS. (a) The cost
of [acquisition,] construction, improvement, extension, or
expansion of a toll [turnpike] project or system under this chapter
includes the cost of:
(1) the actual acquisition, design, development,
planning, financing, construction, improvement, extension, or
expansion of the project or system;
(2) acquisition of real property, rights-of-way,
property rights, easements, and interests;
(3) the acquisition of machinery, [and] equipment,
software, and intellectual property;
(4) interest before, during, and for one year after
construction, improvement, extension, or expansion;
(5) traffic estimates, engineering, [and] legal and
other advisory services, plans, specifications, surveys,
appraisals, cost and revenue estimates, and other expenses
necessary or incident to determining the feasibility of the
construction, improvement, extension, or expansion;
(6) necessary or incidental administrative, legal,
and other expenses;
(7) financing; and
(8) placement of the project or system in operation
and expenses related to the initial operation of the [turnpike]
project or system.
(b) Costs attributable to a toll [turnpike] project or
system for which bonds are issued that are incurred before the
issuance of the bonds may be reimbursed from the proceeds of the
sale of the bonds.
Sec. 228.102 [361.171]. ISSUANCE OF [TURNPIKE REVENUE]
BONDS. (a) The commission by order may authorize the issuance of
toll [turnpike] revenue bonds to pay all or part of the cost of a
toll [turnpike] project or system. [Each project shall be financed
and built by a separate bond issue.] The proceeds of a bond issue
may be used solely for the payment of the project or system for
which the bonds were issued and may not be divided between or among
two or more projects. Each project is a separate undertaking, the
cost of which shall be determined separately.
(b) As determined in the order authorizing the issuance, the
bonds of each issue shall:
(1) be dated;
(2) bear interest at the rate or rates provided by the
order and beginning on the dates provided by the order and as
authorized by law, or bear no interest;
(3) mature at the time or times provided by the order,
not exceeding 40 years from their date or dates; and
(4) be made redeemable before maturity, at the price
or prices and under the terms provided by the order.
(c) The commission may sell the bonds at public or private
sale in the manner and for the price it determines to be in the best
interest of the department.
(d) The proceeds of each bond issue shall be disbursed in
the manner and under the restrictions, if any, the commission
provides in the order authorizing the issuance of the bonds or in
the trust agreement securing the bonds.
(e) If the proceeds of a bond issue are less than the toll
[turnpike] project or system cost, additional bonds may be issued
in the same manner to pay the costs of a [turnpike] project or
system. Unless otherwise provided in the order authorizing the
issuance of the bonds or in the trust agreement securing the bonds,
the additional bonds are on a parity with and are payable, without
preference or priority, from the same fund as the bonds first
issued. In addition, the commission may issue bonds for a
[turnpike] project or system secured by a lien on the revenue of the
[turnpike] project or system subordinate to the lien on the revenue
securing other bonds issued for the [turnpike] project or system.
(f) If the proceeds of a bond issue exceed the cost of the
toll [turnpike] project or system for which the bonds were issued,
the surplus shall be segregated from the other money of the
commission and used only for the purposes specified in the order
authorizing the issuance.
(g) In addition to other permitted uses, the proceeds of a
bond issue may be used to pay costs incurred before the issuance of
the bonds, including costs of environmental review, design,
planning, acquisition of property, relocation assistance,
construction, and operation.
(h) Bonds issued and delivered under this subchapter
[chapter] and interest coupons on the bonds are a security under
Chapter 8, Business & Commerce Code.
(i) Bonds issued under this subchapter [chapter] and income
from the bonds, including any profit made on the sale or transfer of
the bonds, are exempt from taxation in this state.
Sec. 228.103 [361.172]. APPLICABILITY OF OTHER LAW;
CONFLICTS. All laws affecting the issuance of bonds by
governmental entities, including Chapters 1201, 1202, 1204, 1207,
and 1371, Government Code, apply to bonds issued under this
subchapter [chapter]. To the extent of a conflict between those
laws and this subchapter [chapter], the provisions of this
subchapter [chapter] prevail.
Sec. 228.104 [361.173]. PAYMENT OF BONDS; CREDIT OF STATE
NOT PLEDGED. (a) The principal of, interest on, and any
redemption premium on bonds issued by the commission under this
subchapter [chapter] are payable solely from:
(1) the revenue of the toll [turnpike] project or
system for which the bonds are issued, including tolls pledged to
pay the bonds;
(2) the proceeds of bonds issued for the [turnpike]
project or system;
(3) the amounts deposited in a debt service reserve
fund as required by the trust agreement securing bonds issued for
the [turnpike] project or system; [and]
(4) amounts received under a credit agreement relating
to the [turnpike] project or system for which the bonds are issued;
(5) surplus revenue of another project or system as
authorized by Section 228.006; and
(6) amounts received by the department:
(A) as pass-through tolls under Section 222.104;
(B) under an agreement with a local governmental
entity entered into under Section 228.254;
(C) under other agreements with a local
governmental entity relating to the project or system for which the
bonds are issued; and
(D) under a comprehensive development agreement
entered into under Section 223.201.
(b) Bonds issued under this subchapter [chapter] do not
constitute a debt of the state or a pledge of the faith and credit of
the state. Each bond must contain on its face a statement to the
effect that:
(1) the state, the commission, and the department are
not obligated to pay the bond or the interest on the bond from a
source other than the amount pledged to pay the bond and the
interest on the bond; and
(2) the faith and credit and the taxing power of the
state are not pledged to the payment of the principal of or interest
on the bond.
(c) The commission and the department may not incur
financial obligations that cannot be paid from tolls or revenue
derived from owning or operating toll [turnpike] projects or
systems or from money provided by law.
Sec. 228.105 [361.174]. SOURCES OF PAYMENT OF AND SECURITY
FOR TOLL REVENUE [TURNPIKE PROJECT] BONDS. Notwithstanding any
other provisions of this subchapter, toll revenue [chapter,
turnpike project] bonds issued by the commission may:
(1) be payable from and secured by:
(A) payments made under an agreement with a local
governmental entity as provided by Section 228.254 [Subchapter A,
Chapter 362];
(B) the proceeds of bonds issued for the toll
[turnpike] project or system; [or]
(C) amounts deposited in a debt service reserve
fund as required by the trust agreement securing bonds issued for
the [turnpike] project or system; or
(D) surplus revenue of another toll project or
system as authorized by Section 228.006; and
(2) state on their faces any pledge of revenue or taxes
and any security for the bonds under the agreement.
Sec. 228.106 [361.1751]. INTERIM BONDS. (a) The
commission may, before issuing definitive bonds, issue interim
bonds, with or without coupons, exchangeable for definitive bonds.
(b) An order authorizing interim bonds may provide that the
interim bonds recite that the bonds are issued under this
subchapter [chapter]. The recital is conclusive evidence of the
validity and the regularity of the bonds’ issuance.
Sec. 228.107 [361.1752]. EFFECT OF LIEN. (a) A lien on or
a pledge of revenue, a contract payment, or a pledge of money to the
payment of bonds issued under this subchapter is valid and
effective in accordance with Chapter 1208, Government Code, and
[from a turnpike project or on a reserve, replacement, or other fund
established in connection with a bond issued under this chapter]:
(1) is enforceable in any court at the time of payment
for and delivery of the bond;
(2) applies to each item on hand or subsequently
received;
(3) applies without physical delivery of an item or
other act; and
(4) is enforceable in any court against any person
having a claim, in tort, contract, or other remedy, against the
commission or the department without regard to whether the person
has notice of the lien or pledge.
(b) An order authorizing the issuance of bonds is not
required to be recorded except in the regular records of the
department.
Sec. 228.108 [361.1753]. APPROVAL OF BONDS BY ATTORNEY
GENERAL. (a) The commission shall submit to the attorney general
for examination the record of proceedings relating to bonds
authorized under this subchapter [chapter]. The record shall
include the bond proceedings and any contract securing or providing
revenue for the payment of the bonds.
(b) If the attorney general determines that the bonds, the
bond proceedings, and any supporting contract are authorized by
law, the attorney general shall approve the bonds and deliver to the
comptroller:
(1) a copy of the legal opinion of the attorney general
stating the approval; and
(2) the record of proceedings relating to the
authorization of the bonds.
(c) On receipt of the legal opinion of the attorney general
and the record of proceedings relating to the authorization of the
bonds, the comptroller shall register the record of proceedings.
(d) After approval by the attorney general, the bonds, the
bond proceedings, and any supporting contract are valid,
enforceable, and incontestable in any court or other forum for any
reason and are binding obligations according to their terms for all
purposes.
Sec. 228.109 [361.176]. TRUST AGREEMENT. (a) Bonds
issued under this subchapter [chapter] may be secured by a trust
agreement between the commission and a corporate trustee that is a
trust company or a bank that has the powers of a trust company.
(b) A trust agreement may pledge or assign the tolls and
other revenue to be received but may not convey or mortgage any part
of a toll [turnpike] project or system.
(c) A trust agreement may not evidence a pledge of the
revenue of a toll [turnpike] project or system except:
(1) to pay the cost of maintaining, repairing, and
operating the project or system;
(2) to pay the principal of, interest on, and any
redemption premium on the bonds as they become due and payable;
(3) to create and maintain reserves for the purposes
described by Subdivisions (1) and (2), as prescribed by Section
228.053 [361.179]; and
(4) as otherwise provided by law.
(d) Notwithstanding Subsection (c), surplus revenue may be
used for a transportation or air quality [another turnpike] project
as authorized by Section 228.006 [361.189].
(e) A trust agreement may:
(1) set forth the rights and remedies of the
bondholders and the trustee;
(2) restrict the individual right of action by
bondholders as is customary in trust agreements or trust indentures
securing corporate bonds and debentures; and
(3) contain provisions the commission determines
reasonable and proper for the security of the bondholders.
(f) The expenses incurred in carrying out a trust agreement
may be treated as part of the cost of operating the toll [turnpike]
project or system.
Sec. 228.110 [361.177]. PROVISIONS PROTECTING AND
ENFORCING RIGHTS AND REMEDIES OF BONDHOLDERS. A trust agreement or
order providing for the issuance of bonds may contain provisions to
protect and enforce the rights and remedies of the bondholders,
including:
(1) covenants establishing the commission’s duties
relating to:
(A) the acquisition of property;
(B) the design, development, financing,
construction, improvement, expansion, maintenance, repair,
operation, and insurance of the toll [turnpike] project or system
in connection with which the bonds were authorized; and
(C) the custody, safeguarding, and application
of money;
(2) covenants prescribing events that constitute
default;
(3) [covenants prescribing terms on which any or all
of the bonds become or may be declared due before maturity;
[(4)] covenants relating to the rights, powers,
liabilities, or duties that arise on the breach of a duty of the
commission, including the right of the trustee to bring actions
against the commission or the department in any state court to
enforce the covenants in the agreement, and the sovereign immunity
of the state is waived for that purpose; and
(4) [(5)] provisions for the employment of consulting
engineers in connection with the construction or operation of the
[turnpike] project or system.
Sec. 228.111 [361.178]. FURNISHING OF INDEMNIFYING BONDS
OR PLEDGE OF SECURITIES. A bank or trust company incorporated under
the laws of this state that acts as depository of the proceeds of
bonds or of revenue may furnish indemnifying bonds or pledge
securities that the department requires.
Sec. 228.112 [361.183]. FEASIBILITY STUDY BY MUNICIPALITY,
COUNTY, OR PRIVATE GROUP. (a) One or more municipalities, one or
more counties, a combination of municipalities and counties, or a
private group or combination of individuals in this state may pay
all or part of the expenses of studying the cost and feasibility and
any other expenses relating to:
(1) the preparation and issuance of toll [turnpike]
revenue bonds for the construction of a proposed toll [turnpike]
project or system;
(2) the improvement, extension, or expansion of an
existing project or system; or
(3) the use of private participation under Subchapter
E, Chapter 223 [I].
(b) Money spent under Subsection (a) for a proposed toll
project or system [turnpike] is reimbursable, with the consent of
the commission, to the person paying the expenses out of the
proceeds from toll [turnpike] revenue bonds issued for or other
proceeds that may be used for the financing, design, development,
construction, improvement, extension, expansion, or operation of
the project.
Sec. 228.113 [361.185]. TRUST FUND. (a) All money
received under this subchapter [chapter], whether as proceeds from
the sale of bonds or as revenue, is a trust fund to be held and
applied as provided by this subchapter [chapter]. Notwithstanding
any other law, including Section 9, Chapter 1123, Acts of the 75th
Legislature, Regular Session, 1997, and without the prior approval
of the comptroller, funds held under this subchapter [chapter]
shall be held in trust by a banking institution chosen by the
department or, at the discretion of the department, in trust in the
state treasury outside the general revenue fund.
(b) The order authorizing the issuance of bonds or the trust
agreement securing the bonds shall provide that an officer to whom
or a bank or trust company to which the money is paid shall act as
trustee of the money and shall hold and apply the money for the
purpose of the order or trust agreement, subject to this subchapter
[chapter] and the order or trust agreement.
Sec. 228.114 [361.186]. REMEDIES. Except to the extent
restricted by a trust agreement, a holder of a bond issued under
this subchapter [chapter] and a trustee under a trust agreement
may:
(1) protect and enforce by a legal proceeding in any
court a right under:
(A) this subchapter [chapter] or another law of
this state;
(B) the trust agreement; or
(C) the order authorizing the issuance of the
bond; and
(2) compel the performance of a duty this subchapter
[chapter], the trust agreement, or the order requires the
commission or the department or an officer of the commission or the
department to perform, including the imposing of tolls.
Sec. 228.115 [361.187]. EXEMPTION FROM TAXATION OR
ASSESSMENT. (a) The commission is exempt from taxation of or
assessments on:
(1) a toll [turnpike] project or system;
(2) property the department acquires or uses under
this subchapter [chapter]; or
(3) income from property described by Subdivision (1)
or (2).
(b) Bonds issued under this subchapter [chapter] and income
from the bonds, including any profit made on the sale or transfer of
the bonds, are exempt from taxation in this state.
Sec. 228.116 [361.188]. VALUATION OF BONDS SECURING
DEPOSIT OF PUBLIC FUNDS. Bonds of the commission may secure the
deposit of public funds of the state or a political subdivision of
the state to the extent of the lesser of the face value of the bonds
or their market value.
SECTION 2.43. Subchapter C, Chapter 228, Transportation
Code, is amended by adding Section 228.117 to read as follows:
Sec. 228.117. FUNDING FOR DEPARTMENT DISTRICT. The
commission may not 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 district’s
allocation because revenue bonds are issued for a toll project
located within the department district.
SECTION 2.44. Subchapter H, Chapter 361, Transportation
Code, is transferred to Chapter 228, Transportation Code,
redesignated as Subchapter D, and amended to read as follows:

SUBCHAPTER D [H]. TRANSFER OF TOLL [TURNPIKE] PROJECT

[Sec. 361.281. APPLICABILITY OF SUBCHAPTER. This
subchapter applies only to:
[(1) a county with a population of more than 1.5
million;
[(2) a local government corporation serving a county
with a population of more than 1.5 million;
[(3) an adjacent county in a joint turnpike authority
with a county with a population of more than 1.5 million;
[(4) a municipality with a population of more than
170,000 that is adjacent to the United Mexican States;
[(5) a regional tollway authority created under
Chapter 366; or
[(6) a regional mobility authority organized under
Chapter 370 or Section 361.003, as that section existed before June
22, 2003.]
Sec. 228.151 [361.282]. LEASE, SALE, OR TRANSFER
[CONVEYANCE] OF TOLL [TURNPIKE] PROJECT OR SYSTEM. (a) The
department may lease, sell, or transfer [convey] in another manner
a toll [turnpike] project or system, including a nontolled state
highway or a segment of a nontolled state highway converted to a
toll project under Subchapter E, to a governmental entity that has
the authority to operate a tolled highway [county, a municipality,
regional tollway authority, regional mobility authority,] or a
local government corporation created under Chapter 431.
(b) The commission and the governor must approve the
transfer of the toll [turnpike] project or system as being in the
best interests of the state and the entity receiving the [turnpike]
project or system.
Sec. 228.152 [361.283]. DISCHARGE OF OUTSTANDING BONDED
INDEBTEDNESS. An agreement to lease, sell, or convey a toll
[turnpike] project or system under Section 228.151 [361.282] must
provide for the discharge and final payment or redemption of the
department’s outstanding bonded indebtedness for the project or
system.
Sec. 228.153 [361.284]. REPAYMENT OF DEPARTMENT’S
EXPENDITURES. (a) Except as provided by Subsection (b), an
agreement to lease, sell, or convey a toll [turnpike] project or
system under Section 228.151 [361.282] must provide for the
repayment of any expenditures of the department for the financing,
design, development, construction, operation, or [and] maintenance
of the highway [project] that have not been reimbursed with the
proceeds of bonds issued for the highway [project].
(b) The commission may waive repayment of all or a portion
of the expenditures if it finds that the transfer will result in
substantial net benefits to the state, the department, and the
public that equal or exceed the amount of repayment waived.
Sec. 228.154 [361.285]. APPROVAL OF AGREEMENT BY ATTORNEY
GENERAL. (a) An agreement for the lease, sale, or conveyance of a
toll [turnpike] project or system under this subchapter shall be
submitted to the attorney general for approval as part of the
records of proceedings relating to the issuance of bonds of the
governmental entity [county, municipality, regional tollway
authority, regional mobility authority, or local government
corporation].
(b) If the attorney general determines that the agreement is
in accordance with law, the attorney general shall approve the
agreement and deliver to the commission a copy of the legal opinion
of the attorney general stating that approval.
SECTION 2.45. Chapter 228, Transportation Code, is amended
by adding Subchapter E to read as follows:

SUBCHAPTER E. LIMITATION ON TOLL FACILITY DETERMINATION;
CONVERSION OF NONTOLLED STATE HIGHWAY

Sec. 228.201. LIMITATION ON TOLL FACILITY DESIGNATION. (a)
Except as provided by Section 228.2015, the department may not
operate a nontolled state highway or a segment of a nontolled state
highway as a toll project, and may not transfer a highway or segment
to another entity for operation as a toll project, unless:
(1) the commission by order designated the highway or
segment as a toll project before the contract to construct the
highway or segment was awarded;
(2) the highway or segment was open to traffic as a
turnpike project on or before September 1, 2005;
(3) the project was designated as a toll project in a
plan or program of a metropolitan planning organization on or
before September 1, 2005;
(4) the highway or segment is reconstructed so that
the number of nontolled lanes on the highway or segment is greater
than or equal to the number in existence before the reconstruction;
(5) a facility is constructed adjacent to the highway
or segment so that the number of nontolled lanes on the converted
highway or segment and the adjacent facility together is greater
than or equal to the number in existence on the converted highway or
segment before the conversion;
(6) subject to Subsection (b), the highway or segment
was open to traffic as a high-occupancy vehicle lane on May 1, 2005;
or
(7) the commission converts the highway or segment to
a toll facility by:
(A) making the determination required by Section
228.202;
(B) conducting the hearing required by Section
228.203; and
(C) obtaining county and voter approval as
required by Sections 228.207 and 228.208.
(b) The department may operate or transfer a high-occupancy
vehicle lane under Subsection (a)(6) as a tolled lane only if the
department or other entity operating the lane allows vehicles
occupied by a specified number of passengers to use the lane without
paying a toll.
Sec. 228.2015. LIMITATION TRANSITION. (a) Notwithstanding
Section 228.201, the department may operate a nontolled state
highway or a segment of a nontolled state highway as a toll project
if:
(1) a construction contract was awarded for the
highway or segment before September 1, 2005;
(2) the highway or segment had not at any time before
September 1, 2005, been open to traffic; and
(3) the commission designated the highway or segment
as a toll project before the earlier of:
(A) the date the highway or segment is opened to
traffic; or
(B) September 1, 2005.
(b) This section expires September 1, 2006.
SECTION 2.46. Section 362.0041, Transportation Code, is
transferred to Subchapter E, Chapter 228, Transportation Code,
redesignated as Sections 228.202-228.208, and amended to read as
follows:
Sec. 228.202 [362.0041]. COMMISSION DETERMINATION
[CONVERSION OF PROJECTS]. The [(a) Except as provided in
Subsections (d) and (g), the] commission may by order convert a
nontolled state highway or a segment of a nontolled state highway
[the free state highway system] to a toll project [facility] if it
determines that the conversion will improve overall mobility in the
region or is the most feasible and economic means to accomplish
necessary expansion, improvements, or extensions to that segment of
the state highway system.
Sec. 228.203. PUBLIC HEARING. [(b)] Prior to converting a
state highway or a segment of a [the] state highway [system] under
this subchapter [section], the commission shall conduct a public
hearing for the purpose of receiving comments from interested
persons concerning the proposed conversion [transfer]. Notice of
the hearing shall be published in the Texas Register, one or more
newspapers of general circulation, and a newspaper, if any,
published in the county or counties in which the involved highway is
located.
Sec. 228.204. RULES. [(c)] The commission shall adopt
rules implementing this subchapter [section], including criteria
and guidelines for the approval of a conversion of a highway.
Sec. 228.205. QUEEN ISABELLA CAUSEWAY. [(d)] The
commission may not convert the Queen Isabella Causeway in Cameron
County to a toll project [facility].
Sec. 228.206. TOLL REVENUE. [(e) Subchapter G, Chapter
361, applies to a highway converted to a toll facility under this
section.
[(f)] Toll revenue collected under this section:
(1) shall be deposited in the state highway fund;
(2) may be used by the department to finance the
improvement, extension, expansion, or operation of the converted
segment of highway and may not be collected except for those
purposes; and
(3) is exempt from the application of Section 403.095,
Government Code.
Sec. 228.207. COUNTY AND VOTER APPROVAL. [(g)] The
commission may only convert a state highway or a segment of a [the]
state highway [system] under this subchapter [section] if the
conversion is approved by:
(1) the commissioners court of each county within
which the highway or segment is located; and
(2) the qualified voters who vote in an election under
Section 228.208 and who reside in the limits of:
(A) a county if any part of the highway or segment
to be converted is located in an unincorporated area of the county;
or
(B) a municipality in which the highway or
segment to be converted is wholly located.
Sec. 228.208. ELECTION TO APPROVE CONVERSION. (a) If
notified by the department of the proposed conversion of a highway
or segment under this subchapter, and after approval of the
conversion by the appropriate commissioners courts as required by
Section 228.207(1), the commissioners court of each county
described by Section 228.207(2)(A) or the governing body of a
municipality described by Section 228.207(2)(B), as applicable,
shall call an election for the approval or disapproval of the
conversion.
(b) If a county or municipality orders an election, the
county or municipality shall publish notice of the election in a
newspaper of general circulation published in the county or
municipality at least once each week for three consecutive weeks,
with the first publication occurring at least 21 days before the
date of the election.
(c) An order or resolution ordering an election and the
election notice required by Subsection (b) must show, in addition
to the requirements of the Election Code, the location of each
polling place and the hours that the polls will be open.
(d) The proposition submitted in the election must
distinctly state the highway or segment proposed to be converted
and the limits of that highway or segment.
(e) At an election ordered under this section, the ballots
shall be printed to permit voting for or against the proposition:
“The conversion of (highway) from (beginning location) to (ending
location) to a toll project.”
(f) A proposed conversion is approved only if it is approved
by a majority of the votes cast.
(g) A notice of the election and a certified copy of the
order canvassing the election results shall be sent to the
commission.
SECTION 2.47. Sections 362.001, 362.003, 362.006, and
362.007, Transportation Code, are transferred to Chapter 228,
Transportation Code, designated as Subchapter F, and amended to
read as follows:

SUBCHAPTER F. JOINT TOLL PROJECTS

Sec. 228.251 [362.001]. DEFINITIONS. In this subchapter:
(1) [(2)] “Bonds” includes certificates, notes, and
other obligations of an issuer authorized by statute, municipal
home-rule charter, or the Texas Constitution.
(2) [(3) “Cost” means those costs included under
Section 361.004.
[(4)] “Local governmental entity” means a political
subdivision of the state, including a municipality or a county, a
political subdivision of a county, a group of adjoining counties, a
defined district, or a nonprofit corporation, including a
transportation corporation created under Chapter 431.
[(5) “Turnpike project” has the meaning assigned by
Section 361.001.]
Sec. 228.252 [362.003]. APPLICABILITY OF OTHER LAW;
CONFLICTS. (a) This subchapter [chapter] is cumulative of all
laws affecting the issuance of bonds by local governmental
entities, particularly, but not by way of limitation, provisions of
Chapters 1201 and 1371, Government Code, and Subchapters A-C,
Chapter 1207, Government Code, are applicable to and apply to all
bonds issued under this subchapter [chapter], regardless of any
classification of any such local governmental entities thereunder;
provided, however, in the event of any conflict between such laws
and this subchapter [chapter], the provisions of this subchapter
[chapter] prevail.
(b) This subchapter [chapter] is cumulative of all laws
affecting the commission, the department, and the local
governmental entities, except that in the event any other law
conflicts with this subchapter [chapter], the provisions of this
subchapter [chapter] prevail. Chapters 1201 and 1371, Government
Code, and Subchapters A, B, and C, Chapter 1207, Government Code,
apply to bonds issued by the commission under this subchapter
[chapter].
(c) The department may enter into all agreements necessary
or convenient to effectuate the purposes of this subchapter
[chapter].
Sec. 228.253 [362.006]. USE OF FEDERAL FUNDS. The
department may use federal funds for any purpose described by this
subchapter.
Sec. 228.254 [362.007]. AGREEMENTS BETWEEN AUTHORITY AND
LOCAL GOVERNMENTAL ENTITIES. (a) Under authority of Section 52,
Article III, Texas Constitution, a local governmental entity other
than a nonprofit corporation may, upon the required vote of the
qualified voters, in addition to all other debts, issue bonds or
enter into and make payments under agreements with the department,
not to exceed 40 years in term, in any amount not to exceed
one-fourth of the assessed valuation of real property within the
local governmental entity, except that the total indebtedness of
any municipality shall never exceed the limits imposed by other
provisions of the constitution, and levy and collect taxes to pay
the interest thereon and provide a sinking fund for the redemption
thereof, for the purposes of construction, maintenance, and
operation of toll [turnpike] projects or systems of the department,
or in aid thereof.
(b) In addition to Subsection (a), a local governmental
entity may, within any applicable constitutional limitations,
agree with the department to issue bonds or enter into and make
payments under an agreement to construct, maintain, or operate any
portion of a toll [turnpike] project or system of the department.
(c) To make payments under an agreement under Subsection (b)
or pay the interest on bonds issued under Subsection (b) and to
provide a sinking fund for the bonds or the contract, a local
governmental entity may:
(1) pledge revenue from any available source,
including annual appropriations;
(2) levy and collect taxes; or
(3) provide for a combination of Subdivisions (1) and
(2).
(d) The term of an agreement under this section may not
exceed 40 years.
(e) Any election required to permit action under this
subchapter must be held in conformance with Chapter 1251,
Government Code, or other law applicable to the local governmental
entity.
SECTION 2.48. Section 284.001(3), Transportation Code, is
amended to read as follows:
(3) “Project” means a causeway, bridge, tunnel,
turnpike, highway, or any combination of those facilities,
including:
(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;
(B) necessary administration, storage, and other
buildings that have been designated as part of the project by order
of a county; and
(C) all property rights, easements, and related
interests acquired.
SECTION 2.49. Section 284.008, Transportation Code, is
amended by amending Subsection (c) and adding Subsection (d) to
read as follows:
(c) Except as provided by Subsection (d), a [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;
or
(2) a sufficient amount for the payment of all bonds
and the interest on the bonds to maturity has been set aside in a
trust fund held for the benefit of the bondholders.
(d) Before construction on a project under this chapter
begins, a county may request that the commission adopt an order
stating that 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 2.50. Subchapter A, Chapter 284, Transportation
Code, is amended by adding Section 284.011 to read as follows:
Sec. 284.011. TRANSFER OF PROJECT TO DEPARTMENT. (a) A
county may transfer to the department a project under this chapter
that has outstanding bonded indebtedness if the commission:
(1) agrees to the transfer; and
(2) agrees to assume the outstanding bonded
indebtedness.
(b) The commission may assume the outstanding bonded
indebtedness only if the assumption:
(1) is not prohibited under the terms of an existing
trust agreement or indenture securing bonds or other obligations
issued by the commission for another project;
(2) does not prevent the commission from complying
with covenants of the commission under an existing trust agreement
or indenture; and
(3) does not cause a rating agency maintaining a
rating on outstanding obligations of the commission to lower the
existing rating.
(c) If the commission agrees to the transfer under
Subsection (a), the county shall convey the project and any real
property acquired to construct or operate the project to the
department.
(d) At the time of a conveyance under this section, the
commission shall designate the project as part of the state highway
system. After the designation, the county has no liability,
responsibility, or duty to maintain or operate the project.
SECTION 2.51. Subchapter A, Chapter 284, Transportation
Code, is amended by adding Section 284.012 to read as follows:
Sec. 284.012. TRANSFER OF ASSETS. (a) A county, acting
through the commissioners court of the county, may submit a request
to the commission for authorization to create a regional mobility
authority under Chapter 370 and to transfer all projects under this
chapter to the regional mobility authority if:
(1) the creation of the regional mobility authority
and transfer of projects is not prohibited under the bond
proceedings applicable to the projects;
(2) adequate provision has been made for the
assumption by the regional mobility authority of all debts,
obligations, and liabilities of the county arising out of the
transferred projects; and
(3) the commissioners courts of any additional
counties to be part of the regional mobility authority have
approved the request.
(b) The county may submit to the commission a proposed
structure for the initial board of directors of the regional
mobility authority and a method for appointment to the board of
directors at the creation of the regional mobility authority.
Subsequent appointments to the board of directors are subject to
the requirements of Subchapter F, Chapter 370.
(c) After commission authorization, the county may transfer
each of its projects under this chapter to the regional mobility
authority to the extent authorized by the Texas Constitution if
property and contract rights in the projects and bonds issued for
the projects are not affected unfavorably.
(d) The commission shall adopt rules governing the creation
of a regional mobility authority and the transfer of projects under
this section.
SECTION 2.52. Section 284.061(c), Transportation Code, is
amended to read as follows:
(c) Except as provided by Section 284.0615 [361.1375], if
applicable, the county is entitled to immediate possession of
property subject to a condemnation proceeding brought by the county
after:
(1) a tender of a bond or other security in an amount
sufficient to secure the owner for damages; and
(2) the approval of the bond or security by the court.
SECTION 2.53. Subchapter C, Chapter 284, Transportation
Code, is amended by adding Section 284.0615 to read as follows:
Sec. 284.0615. DECLARATION OF TAKING BY CERTAIN COUNTIES.
(a) This section applies only to a county with a population of 3.3
million or more.
(b) If, in connection with a project under this chapter, the
commissioners court of the county authorizes the county to proceed
in the manner provided by Section 203.066:
(1) the county may file a declaration of taking and
proceed in the manner provided by that section on the project; and
(2) a reference to the department in that section
means the county.
SECTION 2.54. Section 284.064, Transportation Code, is
amended by adding Subsections (d) and (e) to read as follows:
(d) If a county enters into an agreement with a person that
includes the collection by the person of tolls for the use of a
project, the person shall submit to the county 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 person 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.
(e) An agreement with a person that includes the collection
by the person of tolls for the use of a project may not be for a term
longer than 50 years.
SECTION 2.55. Subchapter C, Chapter 284, Transportation
Code, is amended by adding Section 284.0665 to read as follows:
Sec. 284.0665. COMPENSATION OF OPERATING BOARD MEMBERS.
(a) In this section, “performing the duties of the operating board”
means substantive performance of the management or business of a
project:
(1) including participation in:
(A) board and committee meetings;
(B) other activities involving the substantive
deliberation of business; and
(C) pertinent educational programs related to a
project; and
(2) not including routine or ministerial activities
such as the execution of documents, self-preparation for meetings,
or other activities requiring a minimal amount of time.
(b) This section applies only to an operating board:
(1) appointed by a local government corporation; or
(2) that is a local government corporation.
(c) A member of an operating board is entitled to receive as
compensation not more than $150 a day for each day the member
actually spends performing the duties of the operating board.
(d) The operating board shall set a limit on the amount of
compensation a member of the operating board may receive in a year
under this section not to exceed $7,200.
(e) In addition to Subsection (c), a member of the operating
board is entitled to reimbursement of actual and necessary expenses
incurred in performing duties of the operating board.
(f) To receive compensation or reimbursement under this
section, a member of the operating board must file a verified
statement with the local government corporation:
(1) showing the number of days the member actually
spent performing duties of the operating board; and
(2) including a general description of the duties
performed for each day of service.
SECTION 2.56. Section 284.067(c), Transportation Code, is
amended to read as follows:
(c) Any [Each] county into which the project extends, by
condemnation or another method under general law, may acquire the
property necessary for the project, except that a county may not
condemn property in another county until after the resolution
required by Subsection (a) is adopted. The county issuing the bonds
may use the bond proceeds to acquire property necessary for the
project in any county into which the project extends.
SECTION 2.57. Section 366.004(a), Transportation Code, is
amended to read as follows:
(a) The cost of acquisition, construction, improvement,
extension, or expansion of a turnpike project or system under this
chapter includes the cost of:
(1) the actual acquisition, construction,
improvement, extension, or expansion of the turnpike project or
system;
(2) the acquisition of real property, rights-of-way,
property rights, easements, and other interests in real property;
(3) machinery and equipment;
(4) interest payable before, during, and after
acquisition, construction, improvement, extension, or expansion as
provided in the bond proceedings;
(5) traffic estimates, revenue estimates, engineering
and legal services, plans, specifications, surveys, appraisals,
construction cost estimates, and other expenses necessary or
incidental to determining the feasibility of the construction,
improvement, extension, or expansion;
(6) necessary or incidental administrative, legal,
and other expenses;
(7) compliance with laws, regulations, and
administrative rulings;
(8) financing; [and]
(9) the assumption of debts, obligations, and
liabilities of an entity relating to a turnpike project or system
transferred to an authority by that entity; and
(10) [(9)] expenses related to the initial operation
of the turnpike project or system.
SECTION 2.58. Section 366.033, Transportation Code, is
amended by amending Subsection (b) and adding Subsections (k) and
(l) to read as follows:
(b) Rules adopted by the authority must be published in a
newspaper with general circulation in the area in which the
authority is located once each week for two consecutive weeks after
adoption of the rule. The notice must contain a condensed statement
of the substance of the rule and must advise that a copy of the
complete text of the rule is filed in the principal office of the
authority where the text may be read by any person. A rule takes
effect 10 days after the date of the second publication of the
notice under this subsection [comply with the procedures in
Subchapter B, Chapter 2001, Government Code, and are subject to
Section 2001.038, Government Code, except that the action may be
brought only in a district court of a county located in the
authority].
(k) If an authority enters into a contract or agreement to
design, finance, construct, operate, maintain, or perform any other
function for a turnpike project, system, or improvement authorized
by law on behalf of a local governmental entity, the commission, the
department, a regional mobility authority, or any other entity, the
contract or agreement may provide that the authority, in performing
the function, is governed by the applicable provisions of this
chapter and the rules and procedures adopted by the authority under
this chapter, in lieu of the laws, rules, or procedures applicable
to the other party for the performance of the same function.
(l) An authority, acting through its board, may agree with
another entity to acquire a turnpike project or system from that
entity and to assume any debts, obligations, and liabilities of the
entity relating to a turnpike project or system transferred to the
authority.
SECTION 2.59. Subchapter B, Chapter 366, Transportation
Code, is amended by adding Section 366.036 to read as follows:
Sec. 366.036. TRANSFER OF TURNPIKE PROJECT OR SYSTEM. (a)
An authority may transfer any of its turnpike projects or systems to
one or more local governmental entities if:
(1) the authority has commitments from the governing
bodies of the local governmental entities to assume jurisdiction
over the transferred projects or systems;
(2) property and contract rights in the transferred
projects or systems and bonds issued for the projects or systems are
not affected unfavorably;
(3) the transfer is not prohibited under the bond
proceedings applicable to the transferred projects or systems;
(4) adequate provision has been made for the
assumption of all debts, obligations, and liabilities of the
authority relating to the transferred projects or systems by the
local governmental entities assuming jurisdiction over the
transferred projects or systems;
(5) the local governmental entities are authorized to
assume jurisdiction over the transferred projects or systems and to
assume the debts, obligations, and liabilities of the authority
relating to the transferred projects or systems; and
(6) the transfer has been approved by the
commissioners court of each county that is part of the authority.
(b) An authority may transfer to one or more local
governmental entities any traffic estimates, revenue estimates,
plans, specifications, surveys, appraisals, and other work product
developed by the authority in determining the feasibility of the
construction, improvement, extension, or expansion of a turnpike
project or system, and the authority’s rights and obligations under
any related agreements, if the requirements of Subsections (a)(1)
and (6) are met.
(c) A local governmental entity shall, using any lawfully
available funds, reimburse any expenditures made by an authority
from its feasibility study fund or otherwise to pay the costs of
work product transferred to the local governmental entity under
Subsection (b) and any other amounts expended under related
agreements transferred to the local governmental entity. The
reimbursement may be made over time, as determined by the local
governmental entity and the authority.
SECTION 2.60. Section 366.169(c), Transportation Code, is
amended to read as follows:
(c) Except as provided by Section 228.201 [366.035], the
state or a local governmental entity may convey, grant, or lease to
an authority real property, including highways and other real
property already devoted to public use and rights or easements in
real property, that may be necessary or convenient to accomplish
the authority’s purposes, including the construction or operation
of a turnpike project. A conveyance, grant, or lease under this
section may be made without advertising, court order, or other
action other than the normal action of the state or local
governmental entity necessary for a conveyance, grant, or lease.
SECTION 2.61. Section 366.179, Transportation Code, is
amended by adding Subsection (d) to read as follows:
(d) Transponder customer account information, including
contact and payment information and trip data, is confidential and
not subject to disclosure under Chapter 552, Government Code.
SECTION 2.62. Section 370.003, Transportation Code, is
amended by amending Subdivision (14) and adding Subdivisions
(16)-(19) to read as follows:
(14) “Transportation project” means:
(A) a turnpike project;
(B) a system;
(C) a passenger or freight rail facility,
including:
(i) tracks;
(ii) a rail line;
(iii) switching, signaling, or other
operating equipment;
(iv) a depot;
(v) a locomotive;
(vi) rolling stock;
(vii) a maintenance facility; and
(viii) other real and personal property
associated with a rail operation;
(D) a roadway with a functional classification
greater than a local road or rural minor collector;
(E) a ferry;
(F) an airport, other than an airport that on
September 1, 2005, was served by one or more air carriers engaged in
scheduled interstate transportation, as those terms were defined by
14 C.F.R. Section 1.1 on that date;
(G) a pedestrian or bicycle facility;
(H) an intermodel hub;
(I) an automated conveyor belt for the movement
of freight;
(J) a border crossing inspection station;
(K) an air quality improvement initiative;
(L) a public utility facility; [and]
(M) a transit system; and
(N) if applicable, projects and programs listed
in the most recently approved state implementation plan for the
area covered by the authority, including an early action compact.
(16) “Mass transit” means the transportation of
passengers and hand-carried packages or baggage of a passenger by
any means of surface, overhead, or underground transportation,
other than an aircraft or taxicab.
(17) “Service area” means the county or counties in
which an authority or transit provider has established a transit
system.
(18) “Transit provider” means an entity that provides
mass transit for the public and that was created under Chapter 451,
452, 453, 454, 457, 458, or 460.
(19) “Transit system” means:
(A) property owned or held by an authority for
mass transit purposes; and
(B) facilities necessary, convenient, or useful
for:
(i) the use of or access to mass transit by
persons or vehicles; or
(ii) the protection or environmental
enhancement of mass transit.
SECTION 2.63. Section 370.004(a), Transportation Code, is
amended to read as follows:
(a) The cost of acquisition, construction, improvement,
extension, or expansion of a transportation project under this
chapter includes the cost of:
(1) the actual acquisition, construction,
improvement, extension, or expansion of the transportation
project;
(2) the acquisition of real property, rights-of-way,
property rights, easements, and other interests in real property;
(3) machinery and equipment;
(4) interest payable before, during, and for not more
than three years after acquisition, construction, improvement,
extension, or expansion as provided in the bond proceedings;
(5) traffic estimates, revenue estimates, engineering
and legal services, plans, specifications, surveys, appraisals,
construction cost estimates, and other expenses necessary or
incidental to determining the feasibility of the acquisition,
construction, improvement, extension, or expansion;
(6) necessary or incidental administrative, legal,
and other expenses;
(7) compliance with laws, regulations, and
administrative rulings, including any costs associated with
necessary environmental mitigation measures;
(8) financing; [and]
(9) the assumption of debts, obligations, and
liabilities of an entity relating to a transportation project
transferred to an authority by that entity; and
(10) expenses related to the initial operation of the
transportation project.
SECTION 2.64. Section 370.031, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) A municipality that borders the United Mexican States
and has a population of 105,000 or more has the same authority as a
county, within its municipal boundaries, to create and participate
in an authority. A municipality creating or participating in an
authority has the same powers and duties as a county participating
in an authority, the governing body of the municipality has the same
powers and duties as the commissioners court of a county
participating in an authority, and an elected member of the
municipality’s governing body has the same powers and duties as a
commissioner of a county that is participating in an authority.
SECTION 2.65. Section 370.033, Transportation Code, is
amended by amending Subsection (m) and adding Subsections (o), (p),
and (q) to read as follows:
(m) If an authority receives money from the general revenue
fund, the Texas Mobility Fund, or the state highway fund it may use
the money only to acquire, design, finance, construct, operate, or
maintain a turnpike project under Section 370.003(14)(A) or (D) or
a transit system under Section 370.351.
(o) Except as provided in Subchapter J, an authority may not
provide mass transit services in the service area of another
transit provider that has taxing authority and has implemented it
anywhere in the service area unless the service is provided under a
written agreement with the transit provider or under Section
370.186.
(p) Before providing public transportation or mass transit
services in the service area of any other existing transit
provider, including a transit provider operating under Chapter 458,
an authority must first consult with that transit provider. An
authority shall ensure there is coordination of services provided
by the authority and an existing transit provider, including a
transit provider operating under Chapter 458. An authority is
ineligible to participate in the formula or discretionary program
under Chapter 456 unless there is no other transit provider,
including a transit provider operating under Chapter 458, providing
public transportation or mass transit services in the service area
of the authority.
(q) An authority, acting through its board, may agree with
another entity to acquire a transportation project or system from
that entity and to assume any debts, obligations, and liabilities
of the entity relating to a transportation project or system
transferred to the authority.
SECTION 2.66. Subchapter B, Chapter 370, Transportation
Code, is amended by adding Section 370.039 to read as follows:
Sec. 370.039. TRANSFER OF TRANSPORTATION PROJECT OR SYSTEM.
(a) An authority may transfer any of its transportation projects or
systems to one or more governmental entities if:
(1) the authority has commitments from the governing
bodies of the governmental entities to assume jurisdiction over the
transferred projects or systems;
(2) property and contract rights in the transferred
projects or systems and bonds issued for the projects or systems are
not affected unfavorably;
(3) the transfer is not prohibited under the bond
proceedings applicable to the transferred projects or systems;
(4) adequate provision has been made for the
assumption of all debts, obligations, and liabilities of the
authority relating to the transferred projects or systems by the
governmental entities assuming jurisdiction over the transferred
projects or systems;
(5) the governmental entities are authorized to assume
jurisdiction over the transferred projects or systems and to assume
the debts, obligations, and liabilities of the authority relating
to the transferred projects or systems; and
(6) the transfer has been approved by the
commissioners court of each county that is part of the authority.
(b) An authority may transfer to one or more governmental
entities any traffic estimates, revenue estimates, plans,
specifications, surveys, appraisals, and other work product
developed by the authority in determining the feasibility of the
construction, improvement, extension, or expansion of a
transportation project or system, and the authority’s rights and
obligations under any related agreements, if the requirements of
Subsections (a)(1) and (6) are met.
(c) A governmental entity shall, using any lawfully
available funds, reimburse any expenditures made by an authority
from its feasibility study fund or otherwise to pay the costs of
work product transferred to the governmental entity under
Subsection (b) and any other amounts expended under related
agreements transferred to the governmental entity. The
reimbursement may be made over time, as determined by the
governmental entity and the authority.
SECTION 2.67. Section 366.302, Transportation Code, is
amended by adding Subsections (f) and (g) to read as follows:
(f) If an authority enters into an agreement with a private
entity that includes the collection by the private entity of tolls
for the use of a turnpike project or system, the private entity
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 entity 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) An agreement with a private entity that includes the
collection by the private entity of tolls for the use of a turnpike
project or system may not be for a term longer than 50 years.
SECTION 2.68. Section 370.163(a), Transportation Code, is
amended to read as follows:
(a) Except as otherwise provided by this subchapter, the
governing body of an authority has the same powers and duties
relating to the condemnation and acquisition of real property for a
transportation project that the commission and the department have
under Subchapter D, Chapter 203, [361, and Section 361.233]
relating to the condemnation or purchase of real property for a toll
[turnpike] project. [Notwithstanding Section 361.135(a), the
concurrence of the commission is not a prerequisite to the exercise
of the power of condemnation by the governing body of the
authority.]
SECTION 2.69. Section 370.168(c), Transportation Code, is
amended to read as follows:
(c) Except as provided by Section 228.201 [370.035], this
state or a local government may convey, grant, or lease to an
authority real property, including highways and other real property
devoted to public use and rights or easements in real property, that
may be necessary or convenient to accomplish a purpose of the
authority, including the construction or operation of a
transportation project. A conveyance, grant, or lease under this
section may be made without advertising, court order, or other
action other than the normal action of this state or local
government necessary for a conveyance, grant, or lease.
SECTION 2.70. Section 370.177(i), Transportation Code, is
amended to read as follows:
(i) In the prosecution of an offense under this section,
proof that the vehicle passed through a toll collection facility
without payment of the proper toll together with proof that the
defendant was the registered owner or the driver of the vehicle when
the failure to pay occurred, establishes the nonpayment of the
registered owner. The proof may be by testimony of a peace officer
or authority employee, video surveillance, or any other reasonable
evidence, including evidence obtained by automated enforcement
technology that the authority determines is necessary, including
automated enforcement technology described by Sections 228.058(a)
and (b).
SECTION 2.71. Section 370.178, Transportation Code, is
amended by adding Subsection (d) to read as follows:
(d) Transponder customer account information, including
contact and payment information and trip data, is confidential and
not subject to disclosure under Chapter 552, Government Code.
SECTION 2.72. Section 370.186, Transportation Code, is
amended by amending Subsection (a) and adding Subsections (c) and
(d) to read as follows:
(a) Except as provided by Subsection (c), an [An] authority
may not construct, maintain, or operate a turnpike or toll project
in an area having a governmental entity established under Chapter
284 or 366 unless the governmental entity and the authority enter
into a written agreement specifying the terms and conditions under
which the project shall be undertaken. An authority may not
construct, maintain, or operate a transportation project that
another governmental entity has determined to be a project under
Chapter 451, 452, or 460 unless the governmental entity and the
authority enter into a written agreement specifying the terms and
conditions under which the project shall be undertaken.
(c) Subsection (a) does not apply to a turnpike or toll
project located in a county in which a regional tollway authority
has transferred under Section 366.036 or 366.172:
(1) all turnpike projects of the regional tollway
authority that are located in the county; and
(2) all work product developed by the regional tollway
authority in determining the feasibility of the construction,
improvement, extension, or expansion of a turnpike project to be
located in the county.
(d) An authority may not construct, maintain, or operate a
passenger rail facility within the boundaries of an intermunicipal
commuter rail district created under Article 6550c-1, Vernon’s
Texas Civil Statutes, as those boundaries existed on September 1,
2005, unless the district and the authority enter into a written
agreement specifying the terms and conditions under which the
project will be undertaken.
SECTION 2.73. Sections 370.251(c) and (d), Transportation
Code, are amended to read as follows:
(c) If permitted under the constitution of this state,
directors [Directors] serve staggered six-year terms, with the
terms of no more than one-third of the directors expiring on
February 1 of each odd-numbered year. If six-year terms are not
permitted under the constitution, directors serve two-year terms,
with the terms of not more than one-half of the directors expiring
on February 1 of each year.
(d) If six-year terms are permitted under the constitution
of this state, one [One] director appointed to the initial board of
an authority by the commissioners court of a county shall be
designated by the court to serve a term of two years and one
director designated to serve a term of four years. If six-year
terms are not permitted under the constitution, one director
appointed to the initial board of an authority by the commissioners
court of a county shall be designated by the court to serve a term of
one year and one director designated to serve a term of two years.
If one or more directors are subsequently appointed to the board,
the directors other than the subsequent appointees shall determine
the length of the appointees’ terms, to comply with Subsection (c).
SECTION 2.74. Section 370.252, Transportation Code, is
amended by adding Subsection (f) to read as follows:
(f) In addition to the prohibitions and restrictions of this
section, directors are subject to Chapter 171, Local Government
Code.
SECTION 2.75. Section 370.262(a), Transportation Code, is
amended to read as follows:
(a) Chapter 551, Government Code, does not prohibit any open
or closed meeting of the board, a committee of the board, or the
staff, or any combination of the board or staff, from being held by
telephone conference call. The board may hold an open or closed
meeting by telephone conference call subject to the requirements of
Sections 551.125(c)-(f), Government Code, but is not subject to the
requirements of Subsection (b) of that section.
SECTION 2.76. Chapter 370, Transportation Code, is amended
by adding Subchapters I and J to read as follows:

SUBCHAPTER I. TRANSIT SYSTEMS

Sec. 370.351. TRANSIT SYSTEMS. (a) An authority may
construct, own, operate, and maintain a transit system.
(b) An authority shall determine each transit route,
including transit route changes.
(c) This chapter does not prohibit an authority,
municipality, or transit provider from providing any service that
complements a transit system, including providing parking garages,
special transportation for persons who are disabled or elderly, or
medical transportation services.
Sec. 370.352. PUBLIC HEARING ON FARE AND SERVICE CHANGES.
(a) In this section:
(1) “Service change” means any addition or deletion
resulting in the physical realignment of a transit route or a change
in the type or frequency of service provided in a specific,
regularly scheduled transit route.
(2) “Transit revenue vehicle mile” means one mile
traveled by a transit vehicle while the vehicle is available to
public passengers.
(3) “Transit route” means a route over which a transit
vehicle travels that is specifically labeled or numbered for the
purpose of picking up or discharging passengers at regularly
scheduled stops and intervals.
(4) “Transit route mile” means one mile along a
transit route regularly traveled by transit vehicles while
available to public passengers.
(b) Except as provided by Section 370.353, an authority
shall hold a public hearing on:
(1) a fare change;
(2) a service change involving:
(A) 25 percent or more of the number of transit
route miles of a transit route; or
(B) 25 percent or more of the number of transit
revenue vehicle miles of a transit route, computed daily, for the
day of the week for which the change is made; or
(3) the establishment of a new transit route.
(c) An authority shall hold the public hearing required by
Subsection (b) before the cumulative amount of service changes in a
fiscal year equals a percentage amount described in Subsection
(b)(2)(A) or (B).
Sec. 370.353. PUBLIC HEARING ON FARE AND SERVICE CHANGES:
EXCEPTIONS. (a) In this section, “experimental service change”
means an addition of service to an existing transit route or the
establishment of a new transit route.
(b) A public hearing under Section 370.352 is not required
for:
(1) a reduced or free promotional fare that is
instituted daily or periodically over a period of not more than 180
days;
(2) a headway adjustment of not more than five minutes
during peak-hour service and not more than 15 minutes during
nonpeak-hour service;
(3) a standard seasonal variation unless the number,
timing, or type of the standard seasonal variation changes; or
(4) an emergency or experimental service change in
effect for 180 days or less.
(c) A hearing on an experimental service change in effect
for more than 180 days may be held before or while the experimental
service change is in effect and satisfies the requirement for a
public hearing if the hearing notice required by Section 370.354
states that the change may become permanent at the end of the
effective period. If a hearing is not held before or while the
experimental service change is in effect, the service that existed
before the change must be reinstituted at the end of the 180th day
after the change became effective and a public hearing must be held
in accordance with Section 370.352 before the experimental service
change may be continued.
Sec. 370.354. NOTICE OF HEARING ON FARE OR SERVICE CHANGE.
(a) After calling a public hearing required by Section 370.352, the
authority shall:
(1) at least 30 days before the date of the hearing,
publish notice of the hearing at least once in a newspaper of
general circulation in the territory of the authority; and
(2) post notice in each transit vehicle in service on
any transit route affected by the proposed change for at least two
weeks within 30 days before the date of the hearing.
(b) The notice must contain:
(1) a description of each proposed fare or service
change, as appropriate;
(2) the time and place of the hearing; and
(3) if the hearing is required under Section
370.352(c), a description of the latest proposed change and the
previous changes.
(c) The requirement for a public hearing under Section
370.352 is satisfied at a public hearing required by federal law if:
(1) the notice requirements of this section are met;
and
(2) the proposed fare or service change is addressed
at the meeting.
Sec. 370.355. CRIMINAL PENALTIES. (a) An authority by
resolution may prohibit the use of the transit system by a person
who fails to possess evidence showing that the appropriate fare for
the use of the system has been paid and may establish reasonable and
appropriate methods, including using peace officers under Section
370.181(c), to ensure that persons using the transit system pay the
appropriate fare for that use.
(b) An authority by resolution may provide that a fare for
or charge for the use of the transit system that is not paid incurs a
penalty, not to exceed $100.
(c) The authority shall post signs designating each area in
which a person is prohibited from using the transit system without
possession of evidence showing that the appropriate fare has been
paid.
(d) A person commits an offense if:
(1) the person or another for whom the person is
criminally responsible under Section 7.02, Penal Code, uses the
transit system and does not possess evidence showing that the
appropriate fare has been paid; and
(2) the person fails to pay the appropriate fare or
other charge for the use of the transit system and any penalty on
the fare on or before the 30th day after the date the authority
notifies the person that the person is required to pay the amount of
the fare or charge and the penalty.
(e) The notice required by Subsection (d)(2) may be included
in a citation issued to the person by a peace officer under Article
14.06, Code of Criminal Procedure, in connection with an offense
relating to the nonpayment of the appropriate fare or charge for the
use of the transit system.
(f) An offense under Subsection (d) is a Class C
misdemeanor.
(g) An offense under Subsection (d) is not a crime of moral
turpitude.

SUBCHAPTER J. ACQUIRING TRANSIT SYSTEMS

Sec. 370.361. TRANSFER OF TRANSIT SYSTEMS. (a) In this
section, “unit of election” means a political subdivision that
previously voted to join the service area of a transit provider.
(b) An authority may request in writing a transit provider
to transfer the provider’s transit system and taxing authority to
the authority if the board determines that the traffic needs of the
counties in which the authority operates could be most efficiently
and economically met by the transfer.
(c) On receipt of a written request under Subsection (b),
the governing body of the transit provider may authorize the
authority to solicit public comment and conduct at least one public
hearing on the proposed transfer in each unit of election in the
transit provider’s service area. Notice of a hearing must be
published in the Texas Register, one or more newspapers of general
circulation in the transit provider’s service area, and a
newspaper, if any, published in the counties of the requesting
authority. The notice shall also solicit written comments on the
proposed transfer. The transit provider may participate fully with
the authority in conducting a public hearing.
(d) A board may approve the acquisition of the transit
provider if the governing body of the transit provider approves
transfer of its operations to the authority and dissolution of the
transit provider is approved in an election ordered under
Subsection (e). Before approving the acquisition, the board shall
consider public comments received under Subsection (c).
(e) After considering public comments received under
Subsection (c), the governing body of the transit provider may
order an election to dissolve the transit provider and transfer all
services, property, funds, assets, employees, debts, and
obligations to the authority. The governing body of the transit
provider shall submit to the qualified voters in the units of
election in the transit provider’s service area a proposition that
reads substantially as follows: “Shall (name of transit provider)
be dissolved and its services, property, funds, assets, employees,
debts, and obligations be transferred to (name of regional mobility
authority)?”
(f) An election under Subsection (e) shall be conducted so
that votes are separately tabulated and canvassed in each
participating unit of election in the transit provider’s service
area.
(g) The governing body of the transit provider shall canvass
the returns and declare the results of the election separately with
respect to each unit of election. If a majority of the votes
received in a unit of election are in favor of the proposition, the
proposition is approved in that unit of election. The transit
provider is dissolved and its services, property, funds, assets,
employees, debts, and obligations are transferred to the authority
only if the proposition is approved in every unit of election. If
the proposition is not approved in every unit of election, the
proposition does not pass and the transit provider is not
dissolved.
(h) A certified copy of the order or resolution recording
the results of the election shall be filed with the department, the
comptroller, and the governing body of each unit of election in the
transit provider’s service area.
(i) The authority shall assume all debts or other
obligations of the transferred transit provider in connection with
the acquisition of property under Subsection (g). The authority
may not use revenue from sales and use tax collected under this
subchapter or other revenue of the transit system in a manner
inconsistent with any pledge of that revenue for the payment of any
outstanding bonds, unless provisions have been made for a full
discharge of the bonds.
Sec. 370.362. SALES AND USE TAX. (a) If an authority
acquires a transit provider that has taxing authority, the
authority may impose a sales and use tax at a permissible rate that
does not exceed the rate approved by the voters residing in the
service area of the transit provider’s transit system at an
election under this subchapter.
(b) The authority by resolution may:
(1) decrease the rate of the sales and use tax to a
permissible rate; or
(2) call an election for the increase or decrease of
the sales and use tax to a permissible rate.
(c) If an authority orders an election, the authority shall
publish notice of the election in a newspaper of general
circulation in the territory of the authority at least once each
week for three consecutive weeks, with the first publication
occurring at least 21 days before the date of the election.
(d) A resolution ordering an election and the election
notice required by Subsection (c) must show, in addition to the
requirements of the Election Code, the hours of the election and
polling places in election precincts.
(e) A copy of the election notice required by Subsection (c)
shall be furnished to the commission and the comptroller.
(f) The permissible rates for a sales and use tax imposed
under this subchapter are:
(1) one-quarter of one percent;
(2) one-half of one percent;
(3) three-quarters of one percent; or
(4) one percent.
(g) Chapter 322, Tax Code, applies to a sales and use tax
imposed under this subchapter.
Sec. 370.363. MAXIMUM TAX RATE. (a) An authority may not
adopt a sales and use tax rate, including a rate increase, that when
combined with the rates of all sales and use taxes imposed by all
political subdivisions of this state having territory in the
service area of the transferred transit system exceeds two percent
in any location in the service area.
(b) An election to approve a sales and use tax or increase
the rate of an authority’s sales and use tax has no effect if:
(1) the voters in the service area approve the
authority’s sales and use tax rate or rate increase at an election
held on the same day on which a municipality or county having
territory in the jurisdiction of the service area adopts a sales and
use tax or an additional sales and use tax; and
(2) the combined rates of all sales and use taxes
imposed by the authority and all political subdivisions of this
state would exceed two percent in any part of the territory in the
service area.
Sec. 370.364. ELECTION TO CHANGE TAX RATE. (a) At an
election ordered under Section 370.362(b)(2), the ballots shall be
printed to permit voting for or against the proposition: “The
increase (decrease) of the local sales and use tax rate for mass
transit to (percentage).”
(b) The increase or decrease in the tax rate becomes
effective only if it is approved by a majority of the votes cast.
(c) A notice of the election and a certified copy of the
order canvassing the election results shall be:
(1) sent to the commission and the comptroller; and
(2) filed in the deed records of the county.
Sec. 370.365. SALES TAX: EFFECTIVE DATES. (a) A sales and
use tax implemented under this subchapter takes effect on the first
day of the second calendar quarter that begins after the date the
comptroller receives a copy of the order required to be sent under
Section 370.364(c).
(b) An increase or decrease in the rate of a sales and use
tax implemented under this subchapter takes effect on:
(1) the first day of the first calendar quarter that
begins after the date the comptroller receives the notice provided
under Section 370.364(c); or
(2) the first day of the second calendar quarter that
begins after the date the comptroller receives the notice, if
within 10 days after the date of receipt of the notice the
comptroller gives written notice to the board that the comptroller
requires more time to implement tax collection and reporting
procedures.
SECTION 2.77. Section 370.302, Transportation Code, is
amended by adding Subsections (h) and (i) to read as follows:
(h) If an authority enters into an agreement with a private
entity that includes the collection by the private entity of tolls
for the use of a transportation project, the private entity 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 entity 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.
(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.
SECTION 2.78. Section 391.252(a), Transportation Code, is
amended to read as follows:
(a) A [Subsequent to the effective date of this subchapter,
a] person may not erect an off-premise sign that is adjacent to and
visible from:
(1) U.S. Highway 290 between the western city limits
of the city of Austin and the eastern city limits of the city of
Fredericksburg;
(2) State Highway 317 between the northern city limits
of the city of Belton to the southern city limits of the city of
Valley Mills;
(3) State Highway 16 between the northern city limits
of the city of Kerrville and Interstate Highway 20;
(4) U.S. Highway 77 between State Highway 186 and
State Highway 44;
(5) U.S. Highway 281 between State Highway 186 and
Interstate Highway 37;
(6) State Highway 17 between State Highway 118 and
U.S. Highway 90;
(7) State Highway 67 between U.S. Highway 90 and
Farm-to-Market Road 170;
(8) Farm-to-Market Road 170 between State Highway 67
and State Highway 118;
(9) State Highway 118 between Farm-to-Market Road 170
and State Highway 17;
(10) State Highway 105 between the western city limits
of the city of Sour Lake to the eastern city limits of the city of
Cleveland;
(11) State Highway 73 between the eastern city limits
of the city of Winnie to the western city limits of the city of Port
Arthur;
(12) State Highway 21 between the southern city limits
of the city of College Station and U.S. Highway 290; [or]
(13) a highway located in:
(A) the Sabine National Forest;
(B) the Davy Crockett National Forest; or
(C) the Sam Houston National Forest; or
(14) Segments 1 through 4 of State Highway 130.
SECTION 2.79. Section 395.001(a), Transportation Code, is
amended to read as follows:
(a) This subchapter applies only to:
(1) the governing body of a toll road authority:
(A) in which a county with a population of 3.3
[2.4] million or more is located; or
(B) that is adjacent to a county with a
population of 3.3 million or more and in which a municipality with a
population of more than 60,000 is located; and
(2) an outdoor sign.
SECTION 2.80. Section 395.051(a), Transportation Code, is
amended to read as follows:
(a) This subchapter applies only to a county with a
population of more than 3.3 million or a county adjacent to a county
with a population of more than 3.3 million in which a municipality
with a population of more than 60,000 is located.
SECTION 2.81. Section 451.554, Transportation Code, is
amended to read as follows:
Sec. 451.554. BOARD APPROVAL OF ANNEXATION: EFFECTIVE DATE.
(a) The addition of territory annexed under Section 451.551, or
approved under Section 451.552 or 451.553, does not take effect if,
before the effective date of the addition under Subsection (b), the
board of the authority gives written notice to the governing body of
the municipality that added new territory to the authority by
virtue of annexation, or to the governing body of the municipality
or the commissioners court of the county that held the election,
that the addition would create a financial hardship on the
authority because:
(1) the territory to be added is not contiguous to the
territory of the existing authority; or
(2) the addition of the territory would impair the
imposition of the sales and use tax authorized by this chapter.
(b) In the absence of a notice under Subsection (a), the
addition of territory takes effect on the 31st day after the date of
the:
(1) municipal ordinance, if annexed by a municipality
under Section 451.551; or
(2) election, if approved under Section 451.552 or
451.553 [approved under Section 451.552 or 451.553 takes effect on
the 31st day after the date of the election].
SECTION 2.82. Section 472.031, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) A legislative member of a policy board may not be
counted as absent at a meeting of the policy board during a
legislative session.
[SECTION 2.83 reserved]
SECTION 2.84. Section 451.071, Transportation Code, is
amended by adding Subsection (f) to read as follows:
(f) A referendum on a proposal to expand a system approved
under this section may be held on any date specified in Section
41.001, Election Code, or a date chosen by order of the board of the
authority, provided that:
(1) the referendum is held no earlier than the 62nd day
after the date of the order; and
(2) the proposed expansion involves the addition of
not more than 12 miles of track to the system.
SECTION 2.85. Subchapter D, Chapter 502, Transportation
Code, is amended by adding Section 502.1515 to read as follows:
Sec. 502.1515. OUTSOURCING PRODUCTION OF RENEWAL NOTICES;
PAID ADVERTISING. The commission may authorize the department to
enter into a contract with a private vendor to produce and
distribute motor vehicle registration renewal notices. The
contract may provide for the inclusion of paid advertising in the
registration renewal notice packet.
SECTION 2.86. Section 551.301, Transportation Code, is
amended by amending Subdivision (2) and adding Subdivision (3) to
read as follows:
(2) “Motor assisted scooter”:
(A) means a self-propelled device with:
(i) [(A)] at least two wheels in contact
with the ground during operation;
(ii) [(B)] a braking system capable of
stopping the device under typical operating conditions;
(iii) [(C)] a gas or electric motor not
exceeding 40 cubic centimeters;
(iv) [(D)] a deck designed to allow a
person to stand or sit while operating the device; and
(v) [(E)] the ability to be propelled by
human power alone; and
(B) does not include a pocket bike or
minimotorbike.
(3) “Pocket bike or minimotorbike” means a
self-propelled vehicle that is equipped with an electric motor or
internal combustion engine having a piston displacement of less
than 50 cubic centimeters, is designed to propel itself with not
more than two wheels in contact with the ground, has a seat or
saddle for the use of the operator, is not designed for use on a
highway, and is ineligible for a certificate of title under Chapter
501. The term does not include:
(A) a moped or motorcycle;
(B) an electric bicycle or motor-driven cycle, as
defined by Section 541.201;
(C) a motorized mobility device, as defined by
Section 542.009;
(D) an electric personal assistive mobility
device, as defined by Section 551.201; or
(E) a neighborhood electric vehicle.
SECTION 2.87. Subchapter D, Chapter 551, Transportation
Code, is amended by adding Section 551.304 to read as follows:
Sec. 551.304. APPLICATION OF SUBCHAPTER TO POCKET BIKE OR
MINIMOTORBIKE. This subchapter may not be construed to authorize
the operation of a pocket bike or minimotorbike on any:
(1) highway, road, or street;
(2) path set aside for the exclusive operation of
bicycles; or
(3) sidewalk.
SECTION 2.88. Section 101.022, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 101.022. DUTY OWED: PREMISE AND SPECIAL DEFECTS.
(a) Except as provided in Subsection (c), if [If] a claim arises
from a premise defect, the governmental unit owes to the claimant
only the duty that a private person owes to a licensee on private
property, unless the claimant pays for the use of the premises.
(b) The limitation of duty in this section does not apply to
the duty to warn of special defects such as excavations or
obstructions on highways, roads, or streets or to the duty to warn
of the absence, condition, or malfunction of traffic signs,
signals, or warning devices as is required by Section 101.060.
(c) If a claim arises from a premise defect on a toll
highway, road, or street, the governmental unit owes to the
claimant only the duty that a private person owes to a licensee on
private property.
SECTION 2.89. Subchapter C, Chapter 791, Government Code,
is amended by adding Section 791.033 to read as follows:
Sec. 791.033. CONTRACTS TO CONSTRUCT, MAINTAIN, OR OPERATE
FACILITIES ON STATE HIGHWAY SYSTEM. (a) In this section, “state
highway system” means the highways in this state included in the
plan providing for a system of state highways prepared under
Section 201.103, Transportation Code.
(b) A local government may enter into and make payments
under an agreement with another local government for the design,
development, financing, construction, maintenance, operation,
extension, expansion, or improvement of a toll or nontoll project
or facility on the state highway system located within the
boundaries of the local government or, as a continuation of the
project or facility, within the boundaries of an adjacent local
government.
(c) An agreement under this section must be approved by the
Texas Department of Transportation.
(d) Notwithstanding Section 791.011(d), to make payments
under an agreement under this section, a local government may:
(1) pledge revenue from any available source,
including payments received under an agreement with the Texas
Department of Transportation under Section 222.104, Transportation
Code;
(2) pledge, levy, and collect taxes to the extent
permitted by law; or
(3) provide for a combination of Subdivisions (1) and
(2).
(e) The term of an agreement under this section may not
exceed 40 years.
(f) Any election required to permit action under this
section must be held in conformance with the Election Code or other
law applicable to the local government.
(g) In connection with an agreement under this section, a
county or municipality may exercise any of the rights and powers
granted to the governing body of an issuer under Chapter 1371.
(h) This section is wholly sufficient authority for the
execution of agreements, the pledge of revenues, taxes, or any
combination of revenues and taxes, and the performance of other
acts and procedures authorized by this section by a local
government without reference to any other provision of law or any
restriction or limitation contained in those provisions, except as
specifically provided by this section. To the extent of any
conflict or inconsistency between this section and any other law,
this section shall prevail and control. A local government may use
any law not in conflict with this section to the extent convenient
or necessary to carry out any power or authority, expressed or
implied, granted by this section.
SECTION 2.90. Subchapter C, Chapter 1232, Government Code,
is amended by adding Section 1232.111 to read as follows:
Sec. 1232.111. CERTAIN PROJECTS BY TEXAS DEPARTMENT OF
TRANSPORTATION. (a) The authority may issue and sell obligations
to finance one or more projects described by Section 201.1055(a),
Transportation Code. Notwithstanding Section 1232.108(2), the
estimated cost of the project must be specified in the General
Appropriations Act or other law.
(b) Any provision of this chapter that relates to the
issuance or sale of obligations to finance the acquisition or
construction of a building, including provisions relating to form,
procedure, repayment, actions that may be taken to ensure that the
payment of the principal of and interest on the obligations is
continued without interruption, and other relevant matters,
applies to the issuance or sale of obligations under this section to
the extent that the provision may be appropriately made applicable.
(c) The legislature may appropriate money from any
available source, including the state highway fund, to the Texas
Department of Transportation to make lease payments to the
authority for space occupied by the department in a building
acquired or constructed under Section 201.1055(a), Transportation
Code.
SECTION 2.91. Subtitle I, Title 9, Government Code, is
amended by adding Chapter 1479 to read as follows:

CHAPTER 1479. COUNTY BONDS FOR FACILITIES ON

STATE HIGHWAY SYSTEM

Sec. 1479.001. DEFINITION. In this chapter, “state highway
system” means the highways in this state included in the plan
providing for a system of state highways prepared under Section
201.103, Transportation Code.
Sec. 1479.002. AUTHORITY TO ISSUE BONDS. (a) A county may
issue bonds to provide funds for the design, development,
financing, construction, maintenance, operation, extension,
expansion, or improvement of a toll or nontoll project or facility
on the state highway system located in the county or, as a
continuation of the project or facility, in an adjacent county.
(b) To provide for the payment of bonds issued under this
section, a county may:
(1) pledge revenue from any available source,
including payments received under an agreement with the Texas
Department of Transportation under Section 222.104, Transportation
Code;
(2) pledge, levy, and collect taxes subject to any
constitutional limitation; or
(3) provide for a combination of Subdivisions (1) and
(2).
(c) Any election required to permit action under Subsection
(b) must be held in conformance with the Election Code or other law
applicable to the county.
(d) A county that issues bonds under this section may
exercise any of the rights and powers granted to the governing body
of an issuer under Chapter 1371.
(e) A bond issued under this section must mature not later
than 40 years after its date of issuance.
(f) This section is wholly sufficient authority for the
issuance of bonds, the pledge of revenues, taxes, or any
combination of revenues and taxes, and the performance of other
acts and procedures authorized by this section by a county without
reference to any other provision of law or any restriction or
limitation contained in those provisions, except as specifically
provided by this section. To the extent of any conflict or
inconsistency between this section and any other law, this section
shall prevail and control. A county may use any law not in conflict
with this section to the extent convenient or necessary to carry out
any power or authority, expressed or implied, granted by this
section.
SECTION 2.92. Section 2166.302, Government Code, is amended
by amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) Except as provided by Subsections [Subsection] (b) and
(c), the commission shall adopt uniform general conditions to be
incorporated into all building construction contracts made by the
state, including a contract for a project excluded from this
chapter by Section 2166.003, but not including a contract for a
project excluded from this chapter by Section 2166.004.
(c) Subsection (a) does not apply to a project constructed
by and for the Texas Department of Transportation.
SECTION 2.93. Section 2262.002(b), Government Code, is
amended to read as follows:
(b) This chapter does not apply to contracts of the Texas
Department of Transportation that:
(1) relate to highway construction or highway
engineering; or
(2) are subject to Section 201.112, Transportation
Code.
SECTION 2.94. Section 21.042, Property Code, is amended by
adding Subsection (g) to read as follows:
(g) Notwithstanding Subsection (d), if a portion of a tract
or parcel of real property that, for the then current tax year was
appraised for ad valorem tax purposes under a law enacted under
Section 1-d or 1-d-1, Article VIII, Texas Constitution, and is
outside the municipal limits or the extraterritorial jurisdiction
of a municipality with a population of 5,000 or more is condemned
for state highway purposes, the special commissioners shall
consider the loss of reasonable access to or from the remaining
property in determining the damage to the property owner.
SECTION 2.95. Section 11.11, Tax Code, is amended by adding
Subsection (j) to read as follows:
(j) For purposes of this section, any portion of a facility
owned by the Texas Department of Transportation that is part of the
Trans-Texas Corridor, is a rail facility or system, or is a highway
in the state highway system, and that is licensed or leased to a
private entity by that department under Chapter 91, 223, or 227,
Transportation Code, is public property used for a public purpose
if the rail facility or system, highway, or facility is operated by
the private entity to provide transportation or utility services.
Any part of a facility, rail facility or system, or state highway
that is licensed or leased to a private entity for a commercial
purpose is not exempt from taxation.
SECTION 2.96. Section 25.06, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) This section does not apply to:
(1) any portion of a facility owned by the Texas
Department of Transportation that is part of the Trans-Texas
Corridor, is a rail facility or system, or is a highway in the state
highway system and that is licensed or leased to a private entity by
that department under Chapter 91, 227, or 361, Transportation Code;
or
(2) a leasehold or other possessory interest granted
by the Texas Department of Transportation in a facility owned by
that department that is part of the Trans-Texas Corridor, is a rail
facility or system, or is a highway in the state highway system.
SECTION 2.97. Section 25.07, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) Subsection (a) does not apply to:
(1) any portion of a facility owned by the Texas
Department of Transportation that is part of the Trans-Texas
Corridor, is a rail facility or system, or is a highway in the state
highway system and that is licensed or leased to a private entity by
that department under Chapter 91, 227, or 361, Transportation Code;
or
(2) a leasehold or other possessory interest granted
by the Texas Department of Transportation in a facility owned by
that department that is part of the Trans-Texas Corridor, is a rail
facility or system, or is a highway in the state highway system.
SECTION 2.98. (a) The Texas Department of Transportation
shall conduct a study to determine how to maximize the use of
highway rights-of-way by public utilities. The department shall
submit a written report of its findings to the appropriate
legislative committees not later than December 31, 2006.
(b) This section expires January 1, 2007.
[SECTION 2.99 reserved]
SECTION 2.100. Notwithstanding any law to the contrary,
neither the Texas Department of Transportation nor a regional
mobility authority may acquire property, enter into a contract,
grant a franchise, or lease or license property for the purpose of
constructing or operating an ancillary facility to be used for a
commercial purpose under Chapter 228 or 370, Transportation Code.
This section does not apply to a segment of highway under the
jurisdiction of a regional mobility authority if the regional
mobility authority awarded a comprehensive development agreement
for the improvement of that segment before September 1, 2005. This
section does not apply to a segment of the state highway system in
Travis or Williamson County if the Texas Department of
Transportation awarded an exclusive development agreement for the
improvement of that segment before September 1, 2005. This section
expires September 1, 2007.
SECTION 2.101. The following provisions of the
Transportation Code are repealed:
(1) Section 201.6061;
(2) Section 222.102;
(3) Sections 224.155-224.158 and 224.160;
(4) Section 284.009, as added by Chapter 953, Acts of
the 78th Legislature, Regular Session, 2003;
(5) Section 284.009, as added by Chapter 1325, Acts of
the 78th Legislature, Regular Session, 2003;
(6) Section 361.002;
(7) Sections 361.031 and 361.050;
(8) Subchapter C, Chapter 361;
(9) Sections 361.131-361.136, 361.1375, 361.140, and
361.141;
(10) Sections 361.175, 361.180, and 361.191;
(11) Sections 361.231, 361.232, and 361.234-361.238;
(12) Section 361.251;
(13) Sections 361.302-361.306;
(14) Subchapter J, Chapter 361;
(15) Sections 362.002 and 362.008;
(16) Sections 366.035 and 366.165(d); and
(17) Sections 370.035 and 370.163(b).
SECTION 2.102. Section 370.161(b), Transportation Code, is
repealed.
SECTION 2.103. The changes in law made by this Act to
Chapter 370, Transportation Code, apply to a regional mobility
authority created or participated in by a municipality described by
Section 370.031(c), Transportation Code, as added by this Act, or
Section 370.161(b), Transportation Code, as it existed before the
effective date of this Act, in the same manner as they apply to any
other entity that creates or participates in a regional mobility
authority.

ARTICLE 3. VEHICLES

SECTION 3.01. (a) Article 45.051(f), Code of Criminal
Procedure, is amended to read as follows:
(f) This article does not apply to:
(1) an offense to which Section 542.404 or 729.004(b),
Transportation Code, applies; or
(2) a violation of a state law or local ordinance
relating to motor vehicle control, other than a parking violation,
[traffic offense] committed by a person who holds a commercial
driver’s license.
(b) The change in law made by this section applies only to an
offense committed on or after September 1, 2005.
(c) An offense committed before September 1, 2005, is
covered by the law in effect when the offense was committed, and the
former law is continued in effect for that purpose. For purposes of
this section, an offense was committed before September 1, 2005, if
any element of the offense was committed before that date.
SECTION 3.02. Section 382.133, Health and Safety Code, is
amended by adding Subsection (d) to read as follows:
(d) A mass transit hydrogen-fueled fleet vehicle may be used
to satisfy the percentage requirement under this section.
SECTION 3.03. Subchapter H, Chapter 201, Transportation
Code, is amended by adding Section 201.618 to read as follows:
Sec. 201.618. HYDROGEN-FUELED VEHICLES AND REFUELING
STATIONS. (a) The department may seek funding from public and
private sources to acquire and operate hydrogen-fueled vehicles and
to establish and operate hydrogen refueling stations as provided by
this section.
(b) If the department secures funding under Subsection (a),
the department may establish and operate at least five hydrogen
refueling stations. A refueling station established under this
subsection must be located in an urbanized area along a major state
highway and be accessible to the public.
(c) If the department secures funding under Subsection (a),
the department may purchase to operate in an area in which a
refueling station is established under Subsection (b) vehicles
capable of operating using hydrogen, including, at a minimum:
(1) four vehicles with internal combustion engines
that run on hydrogen; and
(2) three fuel-cell vehicles, one internal combustion
engine bus that runs on hydrogen, or one fuel-cell bus.
(d) A vehicle purchased to meet the requirements of
Subsection (c) may be used to satisfy the alternative fuels
percentage requirement under Subchapter A, Chapter 2158,
Government Code.
(e) The department may establish hydrogen refueling
stations on the Trans-Texas Corridor under Chapter 227.
(f) The department shall:
(1) ensure that data on emissions from the vehicles
and refueling stations purchased under this section and from the
production of hydrogen for the vehicles and refueling stations are
monitored and analyzed and compared with data on emissions from
control vehicles with internal combustion engines that operate on
fuels other than hydrogen; and
(2) report the results of the monitoring, analysis,
and comparison to the Texas Commission on Environmental Quality.
(g) The department may charge the public a reasonable fee to
use a hydrogen refueling station operated under Subsection (b).
The amount of the fee shall be based on the department’s estimate of
the number of customers that will use the refueling stations and the
direct and indirect costs that will be incurred by the department to
operate the refueling stations. Fees collected by the department
under this section shall be deposited in the state highway fund, may
be appropriated only to the department to implement this section,
and are exempt from the application of Section 403.095, Government
Code.
SECTION 3.04. (a) The Study Commission on Availability of
Pre-Owned Heavy Duty Commercial Motor Vehicles is created as
provided by this section.
(b) The commission is composed of three members as follows:
(1) one member appointed by the governor;
(2) one member appointed by the lieutenant governor;
and
(3) one member appointed by the speaker of the house of
representatives.
(c) Each member of the commission serves at the will of the
person who appointed the member.
(d) The members of the commission shall select the presiding
officer.
(e) A member of the commission is not entitled to receive
compensation for service on the commission but is entitled to
reimbursement of the travel expenses incurred by the member while
conducting the business of the commission, as provided by the
General Appropriations Act.
(f) The commission may accept gifts and grants from any
source to be used to carry out a function of the commission.
(g) The commission shall conduct public hearings and study
public policy implications relating to any act by the Texas
Department of Transportation that would close existing businesses
in this state because of the ownership structure of businesses that
sell pre-owned heavy duty trucks that weigh in excess of 11,000
pounds. The commission shall determine whether such actions by the
department could impact the use and operation of rail and highway
transportation facilities in this state by heavy duty trucks.
(h) The study shall include:
(1) a review of the laws of other states regarding
whether there are restrictions on ownership structure of businesses
that sell heavy duty commercial trucks;
(2) a review of whether safety of pre-owned heavy duty
trucks on highways in this state could be compromised if the Texas
Department of Transportation closes businesses that currently sell
such trucks;
(3) a review of whether the Texas Department of
Transportation’s application of Section 2301.476, Occupations
Code, could negatively impact competition in the pre-owned heavy
duty truck market as well as the impact that such a decision could
have on small, independent pre-owned truck dealerships and
independent owner/operators of trucking businesses in this state;
and
(4) other issues that the commission considers
relevant to protecting the public interest regarding safety and
availability of pre-owned heavy duty trucks that operate on the
highways of this state.
(i) Not later than December 1, 2006, the commission shall
issue a report to the governor, lieutenant governor, speaker of the
house of representatives, and chair of the committee in the house
and senate with jurisdiction of transportation issues. The report
shall summarize the following:
(1) any hearings conducted by the commission;
(2) any studies conducted by the commission;
(3) any legislation proposed by the commission; and
(4) any other findings and recommendations of the
commission.
SECTION 3.05. (a) In order to ensure the safety of persons
and transportation in this state, the Texas Department of
Transportation shall conduct a study of systems for issuing
temporary tags for use on unregistered motor vehicles. In studying
the systems, the department shall:
(1) compare the current system to other potential
systems, including systems used in other states;
(2) seek input from interested parties, including
members of the public, dealers, converters, and law enforcement;
and
(3) consider issues of public and transportation
safety, homeland security, costs, efficiency, and reliability.
(b) The department shall report its findings and
recommendations to the governor, lieutenant governor, and speaker
of the house of representatives not later than November 1, 2006.

ARTICLE 4. COORDINATION OF PUBLIC TRANSPORTATION FOR HEALTH AND

HUMAN SERVICES PROGRAMS

SECTION 4.01. Sections 455.004(a) and (b), Transportation
Code, are amended to read as follows:
(a) A public transportation advisory committee consisting
of 11 [nine] members shall:
(1) advise the commission on the needs and problems of
the state’s public transportation providers, including the methods
for allocating state public transportation money;
(2) comment on rules involving public transportation
during development of the rules and before the commission finally
adopts the rules unless an emergency requires immediate commission
action;
(3) advise the commission on the implementation of
Chapter 461; and
(4) perform any other duty determined by the
commission.
(b) The commission shall appoint members of the advisory
committee. The membership of the committee shall include:
(1) four members who represent a diverse cross-section
of public transportation providers;
(2) three members who represent a diverse
cross-section of transportation users; [and]
(3) three [two] members who represent the general
public; and
(4) one member with experience in the administration
of health and human services programs.
SECTION 4.02. Section 461.012(g), Health and Safety Code,
is amended to read as follows:
(g) The commission shall contract with the Texas Department
of Transportation for the Texas Department of Transportation to
deliver public transportation services to [assume all
responsibilities of the commission relating to the provision of
transportation services for] clients of eligible programs, except
that the Texas Department of Transportation may not assume
responsibility for client case review, case management, or
coordination or authorization of benefits.
SECTION 4.03. Section 533.012(b), Health and Safety Code,
is amended to read as follows:
(b) The department shall contract with the Texas Department
of Transportation for the Texas Department of Transportation to
deliver public transportation services to [assume all
responsibilities of the department relating to the provision of
transportation services for] clients of eligible programs, except
that the Texas Department of Transportation may not assume
responsibility for client case review, case management, or
coordination or authorization of benefits.
SECTION 4.04. Section 22.001(e), Human Resources Code, as
added by Section 2.129, Chapter 198, and Section 13.06, Chapter
1325, Acts of the 78th Legislature, Regular Session, 2003, is
amended to read as follows:
(e) The department shall contract with the Texas Department
of Transportation for the Texas Department of Transportation to
deliver public transportation services to [assume all
responsibilities of the department relating to the provision of
transportation services for] clients of eligible programs, except
that the Texas Department of Transportation may not assume
responsibility for client case review, case management, or
coordination or authorization of benefits.
SECTION 4.05. Section 40.002(f), Human Resources Code, is
amended to read as follows:
(f) The department may contract with the Texas Department of
Transportation for the Texas Department of Transportation to
deliver public transportation services to [assume all
responsibilities of the department relating to the provision of
transportation services for] clients of eligible programs, except
that the Texas Department of Transportation may not assume
responsibility for client case review, case management, or
coordination or authorization of benefits.
SECTION 4.06. Section 91.021(g), Human Resources Code, is
amended to read as follows:
(g) The commission shall contract with the Texas Department
of Transportation for the Texas Department of Transportation to
deliver public transportation services to [assume all
responsibilities of the commission relating to the provision of
transportation services for] clients of eligible programs, except
that the Texas Department of Transportation may not assume
responsibility for client case review, case management, or
coordination or authorization of benefits.
SECTION 4.07. Section 101.0256(b), Human Resources Code, is
amended to read as follows:
(b) The department shall contract with the Texas Department
of Transportation for the Texas Department of Transportation to
deliver public transportation services to [assume all
responsibilities of the department relating to the provision of
transportation services for] clients of eligible programs, except
that the Texas Department of Transportation may not assume
responsibility for client case review, case management, or
coordination or authorization of benefits.
SECTION 4.08. Section 111.0525(d), Human Resources Code, is
amended to read as follows:
(d) The commission shall contract with the Texas Department
of Transportation for the Texas Department of Transportation to
deliver public transportation services to [assume all
responsibilities of the commission relating to the provision of
transportation services for] clients of eligible programs, except
that the Texas Department of Transportation may not assume
responsibility for client case review, case management, or
coordination or authorization of benefits.
SECTION 4.09. Section 301.063(f), Labor Code, is amended to
read as follows:
(f) The commission shall contract with the Texas Department
of Transportation for the Texas Department of Transportation to
deliver public transportation services to [assume all
responsibilities of the commission relating to the provision of
transportation services for] clients of eligible programs, except
that the Texas Department of Transportation may not assume
responsibility for client case review, case management, or
coordination or authorization of benefits.
SECTION 4.10. Chapter 459, Transportation Code, is
repealed.

ARTICLE 5. REGIONAL TRANSIT SYSTEM REVIEW COMMITTEE

SECTION 5.01. (a) In this section, “region” means the
region formed by two contiguous counties each containing a
municipality having a population of at least 530,000 and the
counties adjacent to one or both of those counties.
(b) The Regional Transit System Review Committee is created
to conduct public hearings regarding, and study the implications
of, implementing regional transit service in the region.
(c) The committee consists of:
(1) each member of the legislature who represents a
district that contains territory in the region;
(2) each mayor of a municipality in the region;
(3) each county judge and commissioner in the region;
and
(4) the executive director of each transportation
authority in the region.
(d) In conducting hearings and studies the committee shall:
(1) examine whether a seamless system of transit
systems should be offered throughout the region;
(2) examine whether there should be a mechanism for
additional counties to participate in the regional transit system;
and
(3) perform a review of funding and financing options.
(e) The initial meeting of the committee shall take place
before September 30, 2005. At the initial meeting the committee
shall adopt rules governing the committee and establish a work plan
and schedule for future meetings.
(f) The committee may accept gifts, grants, technical
support, or any other resources from any source to carry out the
functions of the committee.
(g) Not later than September 1, 2006, the committee shall
issue a report summarizing:
(1) hearings conducted by the committee;
(2) studies conducted by the committee;
(3) any legislation proposed by the committee; and
(4) any other findings or recommendations of the
committee.
(h) This section expires September 1, 2007.

ARTICLE 6. CARRIERS TRANSPORTING HOUSEHOLD GOODS

SECTION 6.01. Section 643.051, Transportation Code, is
amended to read as follows:
Sec. 643.051. REGISTRATION REQUIRED. (a) A motor carrier
may not operate a commercial motor vehicle, as defined by Section
548.001, or a tow truck on a road or highway of this state unless the
carrier registers with the department under this subchapter.
(b) A motor carrier may not operate a vehicle, regardless of
size of the vehicle, to transport household goods for compensation
unless the carrier registers with the department under this
subchapter.
SECTION 6.02. Section 643.153(b), Transportation Code, is
amended to read as follows:
(b) The department may adopt rules necessary to ensure that
a customer of a motor carrier transporting household goods is
protected from deceptive or unfair practices and unreasonably
hazardous activities. The rules must:
(1) establish a formal process for resolving a dispute
over a fee or damage;
(2) require a motor carrier to indicate clearly to a
customer whether an estimate is binding or nonbinding and disclose
the maximum price a customer could be required to pay;
(3) create a centralized process for making complaints
about a motor carrier that also allows a customer to inquire about a
carrier’s complaint record; and
(4) require a motor carrier transporting household
goods to list a place of business with a street address in this
state and the carrier’s registration number issued under this
article in any print advertising published in this state[;
[(5) require motor carriers that are required to
register under Subsection (c) to file proof of cargo insurance in
amounts to be determined by the department that do not exceed the
amount required for a motor carrier transporting household goods
under federal law and allow alternative evidence of financial
responsibility, through surety bonds, letters of credit, or other
means satisfactory to the department, for contractual obligations
to customers that do not exceed $5,000 aggregate loss or damage to
total cargo shipped at any one time;
[(6) require motor carriers that are required to
register under Subsection (c) to conspicuously advise consumers
concerning limitation of any carrier liability for loss or damage
as determined under Subdivision (7); and
[(7) determine reasonable provisions governing
limitation of liability for loss or damage of motor carriers
required to register under Subsection (c), not to exceed 60 cents
per pound per article].
SECTION 6.03. Section 643.155(c), Transportation Code, is
amended to read as follows:
(c) The committee shall[:
[(1)] examine the rules adopted by the department
under Sections 643.153(a) and (b) and make recommendations to the
department on modernizing and streamlining the rules[;
[(2) conduct a study of the feasibility and necessity
of requiring any vehicle liability insurance for household goods
carriers required to register under Section 643.153(c); and
[(3) recommend a maximum level of liability limitation
under Section 643.153(b)(7) that does not exceed 60 cents per
pound].
SECTION 6.04. Section 643.252(a), Transportation Code, is
amended to read as follows:
(a) The department may suspend or revoke a registration
issued under this chapter or place on probation a motor carrier
whose registration is suspended if a motor carrier:
(1) fails to maintain insurance or evidence of
financial responsibility as required by Section 643.101(a), (b),
(c), or (d) [or 643.153(b)];
(2) fails to keep evidence of insurance in the cab of
each vehicle as required by Section 643.103(b);
(3) fails to register a vehicle requiring
registration;
(4) knowingly provides false information on any form
filed with the department under this chapter; or
(5) violates a rule adopted under Section 643.063.
SECTION 6.05. Sections 643.253(a), (b), and (e),
Transportation Code, are amended to read as follows:
(a) A person commits an offense if the person fails to:
(1) register as required by Subchapter B [or Section
643.153(c)];
(2) maintain insurance or evidence of financial
responsibility as required by Subchapter C [or Section 643.153]; or
(3) keep a cab card in the cab of a vehicle as required
by Section 643.059.
(b) A person commits an offense if the person solicits the
transportation of household goods for compensation and is not
registered as required by Subchapter B [or Section 643.153].
(e) An offense under Subsection (b) or (d) is a misdemeanor
punishable by a fine of not less than $200 or more than $1,000 per
violation.
SECTION 6.06. Section 643.153(c), Transportation Code, is
repealed.

ARTICLE 7. TEXAS DEPARTMENT OF TRANSPORTATION MOTOR VEHICLE

DIVISION

SECTION 7.01. Sections 2301.002(2) and (10), Occupations
Code, are amended to read as follows:
(2) “Board” has the meaning assigned by Section
2301.005 [means the Motor Vehicle Board of the Texas Department of
Transportation].
(10) “Director” means the director [of the board and]
of the division.
SECTION 7.02. Section 2301.005, Occupations Code, is
amended by amending Subsection (a) and adding Subsection (e) to
read as follows:
(a) A reference in law, including a rule, to the Texas Motor
Vehicle Commission or to the board means the director, except that a
reference to the board means the commission if it is related to the
adoption of rules [board].
(e) A reference in this chapter to a rule or to a board rule
means a rule adopted by the commission, except that all board rules
that were in effect on June 1, 2005, remain in effect until amended
or repealed by the commission.
SECTION 7.03. Section 2301.101(c), Occupations Code, is
amended to read as follows:
(c) The director serves at the will of the executive
director [board].
SECTION 7.04. Section 2301.103, Occupations Code, is
amended to read as follows:
Sec. 2301.103. PERSONNEL. [(a) The director shall appoint
and employ personnel necessary to carry out the duties and
functions of the director and the board under this chapter.
[(b) A division employee is an employee of the department
and is subject to the human resource rules and policies of the
department and the transportation commission, except that, as
applied to a division employee, any powers granted to the executive
director by those rules and policies shall be exercised by the
director.
[(c)] A division employee is subject to dismissal if the
employee has an interest in or is related within the first degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to a person who has an interest in a business that
manufactures, distributes, converts, sells, or leases motor
vehicles.
SECTION 7.05. Section 2301.154, Occupations Code, is
amended to read as follows:
Sec. 2301.154. DELEGATION OF POWERS. The director [board]
may delegate any of the director’s [its] powers to[:
[(1) one or more of its members;
[(2) the director; or
[(3)] one or more of the division’s [its] employees.
SECTION 7.06. The following provisions of the Occupations
Code are repealed:
(1) Subchapter B, Chapter 2301; and
(2) Sections 2301.102, 2301.104, 2301.158, and
2301.159.

ARTICLE 8. TRANSITION PROVISIONS; EFFECTIVE DATE

SECTION 8.01. Section 101.022, Civil Practice and Remedies
Code, as amended by this Act, applies only to a cause of action that
accrues on or after the effective date of this Act. A cause of
action that accrued before the effective date of this Act is
governed by the law in effect at the time the cause of action
accrued, and that law is continued in effect for that purpose.
SECTION 8.02. (a) On the effective date of this Act:
(1) the State Aircraft Pooling Board is abolished, and
all powers, duties, obligations, rights, contracts, bonds,
appropriations, records, and real or personal property of the State
Aircraft Pooling Board are transferred to the Texas Department of
Transportation;
(2) a rule, policy, procedure, or decision of the
State Aircraft Pooling Board continues in effect as a rule, policy,
procedure, or decision of the Texas Department of Transportation
until superseded by an act of the Texas Department of
Transportation;
(3) a reference in law to the State Aircraft Pooling
Board means the Texas Department of Transportation;
(4) all temporary employees of the Texas Department of
Transportation who were previously employed by the State Aircraft
Pooling Board on August 31, 2003, become regular full-time
employees of the Texas Department of Transportation; and
(5) notwithstanding Section 31.01, Chapter 3, Acts of
the 78th Legislature, 3rd Called Session, 2003, any memorandum of
understanding or interagency contract entered into between the
Texas Department of Transportation and the State Aircraft Pooling
Board for the operation of state aircraft expires.
(b) Before the executive director of the Texas Department of
Transportation or the director’s designee may authorize a person to
use a state-operated aircraft, the person must sign an affidavit
stating that the person is traveling on official state business. On
filing of the affidavit, the person may be authorized to use
state-operated aircraft for official state business for a period of
one year. A member of the legislature is not required to receive
any other additional authorization to use a state-operated
aircraft.
SECTION 8.03. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2005.

 

______________________________ ______________________________

President of the Senate Speaker of the House

I certify that H.B. No. 2702 was passed by the House on May
12, 2005, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 2702 on May 23, 2005, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 2702 on May 29, 2005, by the
following vote: Yeas 120, Nays 9, 2 present, not voting; and that
the House adopted H.C.R. No. 245 authorizing certain corrections in
H.B. No. 2702 on May 30, 2005, by a non-record vote.

______________________________
Chief Clerk of the House

I certify that H.B. No. 2702 was passed by the Senate, with
amendments, on May 21, 2005, by the following vote: Yeas 30, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
2702 on May 29, 2005, by the following vote: Yeas 31, Nays 0; and
that the Senate adopted H.C.R. No. 245 authorizing certain
corrections in H.B. No. 2702 on May 30, 2005, by a viva-voce vote.

______________________________
Secretary of the Senate

 

APPROVED: __________________

Date

 

__________________

Governor

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