AN ACT

 1-1     relating to the continuation and functions of the Texas Department

 1-2     of Transportation, the abolition of the Texas Turnpike Authority,

 1-3     and the creation of regional tollway authorities; authorizing the

 1-4     issuance of bonds and the imposition of taxes; granting the power

 1-5     of eminent domain; and providing penalties.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7             ARTICLE 1.  TEXAS TRANSPORTATION COMMISSION; TEXAS

 1-8                        DEPARTMENT OF TRANSPORTATION

 1-9           SECTION 1.01.  Section 201.204, Transportation Code, is

1-10     amended to read as follows:

1-11           Sec. 201.204.  SUNSET PROVISION.  The Texas Department of

1-12     Transportation is subject to Chapter 325, Government Code (Texas

1-13     Sunset Act).  Unless continued in existence as provided by that

1-14     chapter, the department is abolished September 1, 2009 [1997].

1-15           SECTION 1.02.  Subsection (d), Section 201.051,

1-16     Transportation Code, is amended to read as follows:

1-17           (d)  Except as provided by Subsection (e), a person is not

1-18     eligible for appointment as a member of the commission if the

1-19     person or the person's spouse:

1-20                 (1)  is employed by or participates in the management

1-21     of a business entity or other organization that is regulated by or

1-22     receives funds from the department;

1-23                 (2)  directly or indirectly owns or controls more than

 2-1     10 percent interest in a business entity or other organization that

 2-2     is regulated by or receives funds from the department; [or]

 2-3                 (3)  uses or receives a substantial amount of tangible

 2-4     goods, services, or funds from the department, other than

 2-5     compensation or reimbursement authorized by law for commission

 2-6     membership, attendance, or expenses; or

 2-7                 (4)  is registered, certified, or licensed by the

 2-8     department.

 2-9           SECTION 1.03.  Subsection (c), Section 201.057,

2-10     Transportation Code, is amended to read as follows:

2-11           (c)  If the director knows that a potential ground for

2-12     removal exists, the director shall notify the commissioner of

2-13     transportation of the ground, and the commissioner shall notify the

2-14     governor and the attorney general that a potential ground for

2-15     removal exists.  If the potential ground for removal relates to the

2-16     commissioner of transportation, the director shall notify another

2-17     member of the commission, who shall notify the governor and the

2-18     attorney general that a potential ground for removal exists.

2-19           SECTION 1.04.  Subchapter B, Chapter 201, Transportation

2-20     Code, is amended by adding Section 201.059 to read as follows:

2-21           Sec. 201.059.  TRAINING ON DEPARTMENT AND CERTAIN LAWS

2-22     RELATING TO DEPARTMENT.  (a)  To be eligible to take office as a

2-23     member of the commission, a person appointed to the commission must

2-24     complete at least one course of a training program that complies

2-25     with this section.

 3-1           (b)  The training program must provide information to the

 3-2     person regarding:

 3-3                 (1)  this subchapter;

 3-4                 (2)  the programs operated by the department;

 3-5                 (3)  the role and functions of the department;

 3-6                 (4)  the rules of the department with an emphasis on

 3-7     the rules that relate to disciplinary and investigatory authority;

 3-8                 (5)  the current budget for the department;

 3-9                 (6)  the results of the most recent formal audit of the

3-10     department;

3-11                 (7)  the requirements of the:

3-12                       (A)  open meetings law, Chapter 551, Government

3-13     Code;

3-14                       (B)  open records law, Chapter 552, Government

3-15     Code; and

3-16                       (C)  administrative procedure law, Chapter 2001,

3-17     Government Code;

3-18                 (8)  the requirements of the conflict of interest laws

3-19     and other laws relating to public officials; and

3-20                 (9)  any applicable ethics policies adopted by the

3-21     commission or the Texas Ethics Commission.

3-22           (c)  A person appointed to the commission is entitled to

3-23     reimbursement for travel expenses incurred in attending the

3-24     training program, as provided by the General Appropriations Act and

3-25     as if the person were a member of the commission.

 4-1           SECTION 1.05.  Section 201.102, Transportation Code, is

 4-2     amended to read as follows:

 4-3           Sec. 201.102.  SEPARATION [DEFINITION] OF RESPONSIBILITIES.

 4-4     The commission shall develop and implement policies that clearly

 4-5     separate the policy-making [define the respective] responsibilities

 4-6     of the commission and the management responsibilities of the

 4-7     director and staff of the department.

 4-8           SECTION 1.06.  Subsection (b), Section 201.107,

 4-9     Transportation Code, is amended to read as follows:

4-10           (b)  The commission shall file annually with the governor and

4-11     the presiding officer of each house of the legislature a complete

4-12     and detailed written report accounting for all funds received and

4-13     disbursed by the department during the preceding fiscal year.  The

4-14     report must comply with each reporting requirement applicable to

4-15     financial reporting [be in the form and filed in the time] provided

4-16     by the General Appropriations Act.

4-17           SECTION 1.07.  Section 201.203, Transportation Code, is

4-18     amended to read as follows:

4-19           Sec. 201.203.  DEPARTMENT OFFICE[; RECORDS].  The department

4-20     shall have its statewide headquarters office in Austin.  [The

4-21     department shall keep all of its records in that office.]

4-22           SECTION 1.08.  Subchapter D, Chapter 201, Transportation

4-23     Code, is amended by adding Section 201.206 to read as follows:

4-24           Sec. 201.206.  DONATIONS AND CONTRIBUTIONS.  For the purpose

4-25     of carrying out its functions and duties, the department may

 5-1     accept, from any source, a donation or contribution in any form,

 5-2     including realty, personalty, money, materials, or services.

 5-3           SECTION 1.09.  Subsections (a) and (b), Section 201.402,

 5-4     Transportation Code, are amended to read as follows:

 5-5           (a)  The director or the director's designee shall prepare

 5-6     and maintain a written policy statement to ensure implementation of

 5-7     a program of equal employment opportunity under which all personnel

 5-8     transactions are made without regard to race, color, disability,

 5-9     sex, religion, age, or national origin.  The policy statement must

5-10     include:

5-11                 (1)  personnel policies, including policies relating to

5-12     recruitment, evaluation, selection, appointment, training, and

5-13     promotion of personnel that comply with Chapter 21, Labor Code;

5-14                 (2)  a comprehensive analysis of the department work

5-15     force that meets federal and state laws, rules, and regulations,

5-16     and instructions directly adopted under those laws, rules, or

5-17     regulations [guidelines];

5-18                 (3)  procedures by which a determination can be made of

5-19     significant underuse in the department work force of all persons

5-20     for whom federal or state laws, rules, and regulations, and

5-21     instructions directly adopted under those laws, rules, or

5-22     regulations [guidelines] encourage a more equitable balance; and

5-23                 (4)  reasonable methods to appropriately address the

5-24     areas of significant underuse.

5-25           (b)  A policy statement prepared under Subsection (a) must

 6-1     cover an annual period, be updated at least annually, be reviewed

 6-2     by the Texas Commission on Human Rights for compliance with

 6-3     Subsection (a)(1), and be filed with the governor's office.

 6-4           SECTION 1.10.  Subsections (a) and (b), Section 201.404,

 6-5     Transportation Code, are amended to read as follows:

 6-6           (a)  The director or the director's designee shall develop an

 6-7     intra-agency career ladder program that addresses opportunities for

 6-8     mobility and advancement for employees in the department [covering

 6-9     all full-time classified and exempt positions].  The program shall

6-10     require intra-agency posting of all [nonentry] positions

6-11     concurrently with any public posting.

6-12           (b)  The director or the director's designee shall develop a

6-13     system of annual performance evaluations that are based on

6-14     documented employee performance.  All merit pay for department

6-15     employees must be based on the system established under this

6-16     subsection.

6-17           SECTION 1.11.  Subchapter I, Chapter 201, Transportation

6-18     Code, is amended by adding Section 201.705 to read as follows:

6-19           Sec. 201.705.  PILOT PROJECT ON VEHICLE MAINTENANCE

6-20     OUTSOURCING.  (a)  The department shall conduct a two-year pilot

6-21     project to determine whether contracting with a private entity for

6-22     maintenance and repair services of all department vehicles would be

6-23     cost-effective.

6-24           (b)  The study must be implemented in at least three of the

6-25     department's districts.  The districts in which the study is

 7-1     implemented must vary in geography and population.

 7-2           (c)  Any cost savings that result from the project shall be

 7-3     deposited to the credit of the state infrastructure bank account

 7-4     created under Subchapter D, Chapter 222.

 7-5           (d)  Not later than January 1, 2001, the department shall

 7-6     submit a report to the legislature on the results of the pilot

 7-7     program and any recommendations on the continuation or expansion of

 7-8     the pilot program.

 7-9           (e)  This section expires January 1, 2001.

7-10           SECTION 1.12.  Section 201.801, Transportation Code, is

7-11     amended by amending Subsection (c) and adding Subsection (e) to

7-12     read as follows:

7-13           (c)  The department shall:

7-14                 (1)  keep an information file about each written

7-15     complaint filed with the department that the department has the

7-16     authority to resolve; and

7-17                 (2)  provide the person who filed the complaint, and

7-18     each person or entity that is the subject of the complaint,

7-19     information about the department's policies and procedures relating

7-20     to complaint investigation and resolution.

7-21           (e)  With regard to each complaint filed with the department,

7-22     the department shall keep the following information:

7-23                 (1)  the date the complaint is filed;

7-24                 (2)  the name of the person filing the complaint;

7-25                 (3)  the subject matter of the complaint;

 8-1                 (4)  a record of each person contacted in relation to

 8-2     the complaint;

 8-3                 (5)  a summary of the results of the review or

 8-4     investigation of the complaint; and

 8-5                 (6)  if the department takes no action on the

 8-6     complaint, an explanation of the reasons that no action was taken.

 8-7           SECTION 1.13.  Section 201.802, Transportation Code, is

 8-8     amended by amending Subsection (b) and adding Subsection (c) to

 8-9     read as follows:

8-10           (b)  The director [department] shall prepare and maintain a

8-11     written plan that describes the manner in which a person who does

8-12     not speak English or who has a physical, mental, or developmental

8-13     disability is provided reasonable access to the department's

8-14     programs.

8-15           (c)  The department shall comply with each applicable law of

8-16     the United States or this state that relates to program or facility

8-17     accessibility.

8-18           SECTION 1.14.  Subchapter K, Chapter 201, Transportation

8-19     Code, is amended by adding Section 201.905 to read as follows:

8-20           Sec. 201.905.  MULTIMODAL ROAD USE.   (a)  The department

8-21     shall conduct a comprehensive analysis of the multimodal use of

8-22     roads and highways in the state highway system.  The analysis shall

8-23     include the collection of data on users' concerns about road

8-24     conditions and actual and potential use patterns of roads or

8-25     highways.

 9-1           (b)  After the analysis required by Subsection (a) is

 9-2     completed, the department shall initiate and coordinate a campaign

 9-3     to help increase public awareness of traffic safety issues.

 9-4           (c)  The department shall initiate a program of continuing

 9-5     community involvement sessions to help other state agencies, local

 9-6     decision-makers, interest groups, and the general public improve

 9-7     the state's comprehensive transportation system to include all

 9-8     modes of transportation.

 9-9           SECTION 1.15.  Chapter 201, Transportation Code, is amended

9-10     by adding Subchapter L to read as follows:

9-11               SUBCHAPTER L.  ELECTRONIC ISSUANCE OF LICENSES

9-12           Sec. 201.931.  DEFINITIONS.  In this subchapter:

9-13                 (1)  "Digital signature" means an electronic identifier

9-14     intended by the person using it to have the same force and effect

9-15     as the use of a manual signature.

9-16                 (2)  "License" includes:

9-17                       (A)  a permit issued by the department that

9-18     authorizes the operation of a vehicle and its load or a combination

9-19     of vehicles and load exceeding size or weight limitations;

9-20                       (B)  motor carrier registration issued under

9-21     Article 6675c, Revised Statutes;

9-22                       (C)  a vehicle storage facility license issued

9-23     under Article 6687-9a, Revised Statutes;

9-24                       (D)  a license or permit for outdoor advertising

9-25     issued under Chapter 391 or 394;

 10-1                      (E)  a salvage motor vehicle dealer and agent

 10-2    license issued under Article 6687-1a, Revised Statutes;

 10-3                      (F)  specially designated or specialized license

 10-4    plates issued under Subchapters E and F, Chapter 502; and

 10-5                      (G)  an apportioned registration issued according

 10-6    to the International Registration Plan under Section 502.054.

 10-7          Sec. 201.932.  APPLICATION FOR AND ISSUANCE OF LICENSE.

 10-8    (a)  The commission  may by rule provide for the filing of a

 10-9    license application and the issuance of a license by electronic

10-10    means.

10-11          (b)  The commission may limit applicant eligibility under

10-12    Subsection (a) if the rules include reasonable eligibility

10-13    criteria.

10-14          Sec. 201.933.  DIGITAL SIGNATURE.  (a)  A license application

10-15    received by the department is considered signed if a digital

10-16    signature is transmitted with the application and intended by the

10-17    applicant to authenticate the license in accordance with Subsection

10-18    (b).

10-19          (b)  The department may only accept a digital signature used

10-20    to authenticate a license application under procedures that:

10-21                (1)  comply with any applicable rules of another state

10-22    agency having jurisdiction over department use or acceptance of a

10-23    digital signature; and

10-24                (2)  provide for consideration of factors that may

10-25    affect a digital signature's reliability, including whether a

 11-1    digital signature is:

 11-2                      (A)  unique to the person using it;

 11-3                      (B)  capable of independent verification;

 11-4                      (C)  under the sole control of the person using

 11-5    it; and

 11-6                      (D)  transmitted in a manner that will make it

 11-7    infeasible to change the data in the communication or digital

 11-8    signature without invalidating the digital signature.

 11-9          Sec. 201.934.  PAYMENT OF FEES.  The commission may adopt

11-10    rules regarding the method of payment of a fee for a license issued

11-11    under this subchapter.  The rules may authorize the use of

11-12    electronic funds transfer or a valid credit card issued by a

11-13    financial institution chartered by a state or the federal

11-14    government or by a nationally recognized credit organization

11-15    approved by the department.  The rules may require the payment of a

11-16    discount or service charge for a credit card payment in addition to

11-17    the fee.

11-18          SECTION 1.16.  Subchapter C, Chapter 202, Transportation

11-19    Code, is amended by adding Section 202.060 to read as follows:

11-20          Sec. 202.060.  LIVING LOGOS; PILOT PROJECT.  (a)  The

11-21    commission may adopt rules implementing a pilot project for the

11-22    leasing of state highway right-of-way, subject to any applicable

11-23    federal regulation of outdoor advertising, as a location or

11-24    locations for commercial advertising by means of a floral mosaic

11-25    living logo.

 12-1          (b)  Rules adopted under this section shall:

 12-2                (1)  provide for the award of a lease in a manner that

 12-3    maximizes revenue to the state;

 12-4                (2)  regulate the content, composition, placement,

 12-5    installation, and maintenance of a floral mosaic living logo;

 12-6                (3)  set a bond for faithful performance of the lessee;

 12-7                (4)  provide for the public safety;

 12-8                (5)  ensure that installation and maintenance of a

 12-9    floral mosaic living logo will not interfere with access to, or be

12-10    inconsistent with the use of, abutting property; and

12-11                (6)  include such other matters as may be necessary to

12-12    protect the integrity of the involved highway.

12-13          (c)  A floral mosaic living logo installed or placed under

12-14    this section may not contain a message, symbol, or trademark that

12-15    resembles an official traffic-control device.

12-16          (d)  This section applies to state highway right-of-way in a

12-17    county with a population of 500,000 or more.

12-18          SECTION 1.17.  Subchapter B, Chapter 222, Transportation

12-19    Code, is amended by adding Section 222.034 to read as follows:

12-20          Sec. 222.034.  DISTRIBUTION OF FEDERAL FUNDS.  (a)  Federal

12-21    aid for transportation purposes that is administered by the

12-22    commission shall be distributed to the various parts of the state

12-23    for a funding cycle through the selection of highway projects in

12-24    the state in a manner that is consistent with federal formulas that

12-25    determine the amount of federal aid for transportation purposes

 13-1    received by the state.  A distribution under this subsection does

 13-2    not include deductions made for the state infrastructure bank or

 13-3    other federal funds reallocated by the federal government.

 13-4          (b)  The commission may vary from the distribution procedure

 13-5    provided by Subsection (a) if it issues a ruling or minute order

 13-6    identifying the variance and providing a particular justification

 13-7    for the variance.

 13-8          SECTION 1.18.  Subchapter C, Chapter 222, Transportation

 13-9    Code, is amended by adding Section 222.053 to read as follows:

13-10          Sec. 222.053.  RELIEF FROM LOCAL MATCHING FUNDS REQUIREMENT.

13-11    (a)  In this section, "economically disadvantaged county" means a

13-12    county that has, in comparison to other counties in the state:

13-13                (1)  below average per capita taxable property value;

13-14                (2)  below average per capita income; and

13-15                (3)  above average unemployment.

13-16          (b)  Except as provided by Subsection (c), the commission may

13-17    require, request, or accept from a political subdivision matching

13-18    or other local funds, rights-of-way, utility adjustments,

13-19    additional participation, planning, documents, or any other local

13-20    incentives to make the most efficient use of its highway funding.

13-21          (c)  In evaluating a proposal to construct, maintain, or

13-22    extend a highway or for another type of highway project in a

13-23    political subdivision that consists of all or a portion of an

13-24    economically disadvantaged county, the commission:

13-25                (1)  may not consider the absence or value of local

 14-1    incentives provided under Subsection (b) or the value of a benefit

 14-2    received by the state in an agreement under Section 791.031,

 14-3    Government Code, beyond the minimum required local matching funds;

 14-4    and

 14-5                (2)  shall adjust the minimum local matching funds

 14-6    requirement after evaluating the political subdivision's effort and

 14-7    ability to meet the requirement.

 14-8          (d)  In making an adjustment under Subsection (c)(2), the

 14-9    commission may use its in-kind resources and any other available

14-10    resources to help satisfy a federal requirement.

14-11          (e)  The commission shall report annually to the governor,

14-12    the lieutenant governor, and the speaker of the house of

14-13    representatives on the use of matching funds and local incentives

14-14    and the ability of the commission to ensure that political

14-15    subdivisions located in economically disadvantaged counties have

14-16    equal ability to compete for highway funding with political

14-17    subdivisions in counties that are not economically disadvantaged.

14-18          SECTION 1.19.  Subsection (c), Section 202.052,

14-19    Transportation Code, is amended to read as follows:

14-20          (c)  The department shall charge not less than fair market

14-21    value for the highway asset, payable in cash, services, tangible or

14-22    intangible property, or any combination of cash, services, or

14-23    property.

14-24          SECTION 1.20.  Chapter 202, Transportation Code, is amended

14-25    by adding Subchapter E to read as follows:

 15-1               SUBCHAPTER E.  TELECOMMUNICATIONS FACILITIES

 15-2          Sec. 202.091.  DEFINITION.  In this subchapter,

 15-3    "telecommunications" means any transmission, emission, or reception

 15-4    of signs, signals, writings, images, or sounds of intelligence of

 15-5    any nature by wire, radio, optical, or other electromagnetic

 15-6    systems.

 15-7          Sec. 202.092.  USE OF DEPARTMENT FACILITIES.  Notwithstanding

 15-8    any other law, a telecommunications provider may not place or

 15-9    maintain its facilities or otherwise use improvements, including

15-10    structures, medians, conduits, or telecommunications equipment or

15-11    lines, constructed or installed by the state as components of the

15-12    state highway system except by a lease under Section 202.052 or an

15-13    agreement under Section 202.093.

15-14          Sec. 202.093.  AGREEMENT.  (a)  Notwithstanding any other

15-15    law, the department may enter into an agreement with a

15-16    telecommunications provider allowing the provider, for the

15-17    provider's commercial purposes, to:

15-18                (1)  place the provider's telecommunications facilities

15-19    within the median of a divided state highway; or

15-20                (2)  place lines within or otherwise use

15-21    telecommunications facilities owned or installed by the state in or

15-22    on the improved portion of a state highway, including a median,

15-23    structures, equipment, conduits, or any other component of the

15-24    highway facilities constructed or owned by the department.

15-25          (b)  An agreement entered into under Subsection (a) may

 16-1    provide for compensation between the department and the

 16-2    telecommunications provider in the form of cash or the shared use

 16-3    of facilities.

 16-4          Sec. 202.094.  COMPETITIVE SEALED PROPOSAL.  (a)  Before

 16-5    entering into an agreement with a telecommunications provider under

 16-6    this subchapter, the department shall follow a procedure using

 16-7    competitive sealed proposals.

 16-8          (b)  The department shall solicit proposals by a request for

 16-9    proposals and shall publish notice of the request in at least two

16-10    newspapers of general circulation and in the Texas Register.

16-11          (c)  The proposals shall be opened so as to avoid disclosure

16-12    of contents to competing offerors during the process of

16-13    negotiation.  After a contract is awarded, all proposals that have

16-14    been submitted shall be open for public inspection subject to

16-15    Subchapter C, Chapter 552, Government Code.

16-16          (d)  The department may discuss an acceptable or potentially

16-17    acceptable proposal with an offeror to assess the offeror's ability

16-18    to meet the solicitation requirements.  After the submission of a

16-19    proposal but before making an award, the department may permit the

16-20    offeror to revise the proposal in order to obtain the best final

16-21    offer.  The department may not disclose any information derived

16-22    from proposals submitted from competing offerors in conducting

16-23    discussions under this section.  The department shall provide each

16-24    offeror with an equal opportunity for discussion and revision of

16-25    proposals.

 17-1          (e)  The department shall make a written award of a contract

 17-2    to the offeror whose proposal is the most advantageous to the

 17-3    state, considering price and the evaluation factors in the request

 17-4    for proposals, except that if the department finds that none of the

 17-5    offers is acceptable, it shall refuse all offers.  The contract

 17-6    file must state in writing the basis on which the award is made.

 17-7          Sec. 202.095.  APPLICABILITY.  (a)  Subtitle D, Title 10,

 17-8    Government Code, does not apply to a procurement under this

 17-9    subchapter.

17-10          (b)  This subchapter does not limit a telecommunications

17-11    provider from placing lines or facilities in the unimproved portion

17-12    of state highway right-of-way to the extent authorized by

17-13    applicable law.

17-14          Sec. 202.096.  REVENUE.  The department shall deposit in the

17-15    state highway fund any revenue received under this subchapter.

17-16          Sec. 202.097.  RULEMAKING.  The commission shall adopt rules

17-17    for the implementation of this subchapter.

17-18          SECTION 1.21.  Chapter 222, Transportation Code, is amended

17-19    by adding Subchapter D to read as follows:

17-20                 SUBCHAPTER D.  STATE INFRASTRUCTURE BANK

17-21          Sec. 222.071.  DEFINITIONS.  In this subchapter:

17-22                (1)  "Bank" means the state infrastructure bank

17-23    account.

17-24                (2)  "Construction" has the meaning assigned by 23

17-25    U.S.C. Section 101.

 18-1                (3)  "Federal act" means Section 350 of the National

 18-2    Highway System Designation Act of 1995 (Pub. L. No. 104-59).

 18-3                (4)  "Federal-aid highway" has the meaning assigned by

 18-4    23 U.S.C. Section 101.

 18-5                (5)  "Qualified project" includes:

 18-6                      (A)  the construction of a federal-aid highway;

 18-7                      (B)  a transit project under 49 U.S.C. Sections

 18-8    5307, 5309, and 5311; or

 18-9                      (C)  for the expenditure of secondary funds, a

18-10    project eligible for assistance under Title 23 or Title 49, United

18-11    States Code.

18-12                (6)  "Secondary funds" includes:

18-13                      (A)  the repayment of a loan or other assistance

18-14    that is provided with money deposited to the credit of the bank;

18-15    and

18-16                      (B)  investment income generated by secondary

18-17    funds deposited to the credit of the bank.

18-18          Sec. 222.072.  STATE INFRASTRUCTURE BANK.  (a)  The state

18-19    infrastructure bank is an account in the state highway fund.  The

18-20    bank is administered by the commission.

18-21          (b)  Federal funds received by the state under the federal

18-22    act, matching state funds in an amount required by that act,

18-23    proceeds from bonds issued under Section 222.075, money saved as a

18-24    result of contracting with a private entity for maintenance and

18-25    repair services for department vehicles, secondary funds, and other

 19-1    money received by the state that is eligible for deposit in the

 19-2    bank may be deposited into the bank and used only for the purposes

 19-3    described in this subchapter.

 19-4          Sec. 222.073.  PURPOSES OF INFRASTRUCTURE BANK.  The

 19-5    commission shall use money deposited in the bank to:

 19-6                (1)  encourage public and private investment in

 19-7    transportation facilities, including facilities that contribute to

 19-8    the multimodal and intermodal transportation capabilities of the

 19-9    state; and

19-10                (2)  develop financing techniques designed to:

19-11                      (A)  expand the availability of funding for

19-12    transportation projects and to reduce direct state costs;

19-13                      (B)  maximize private and local participation in

19-14    financing projects; and

19-15                      (C)  improve the efficiency of the state

19-16    transportation system.

19-17          Sec. 222.074.  FORM OF ASSISTANCE.  (a)  To further a purpose

19-18    described by Section 222.073, the commission may use money

19-19    deposited to the credit of the bank to provide financial assistance

19-20    to a public or private entity for a qualified project to:

19-21                (1)  extend credit by direct loan;

19-22                (2)  provide credit enhancements;

19-23                (3)  serve as a capital reserve for bond or debt

19-24    instrument financing;

19-25                (4)  subsidize interest rates;

 20-1                (5)  insure the issuance of a letter of credit or

 20-2    credit instrument;

 20-3                (6)  finance a purchase or lease agreement in

 20-4    connection with a transit project;

 20-5                (7)  provide security for bonds and other debt

 20-6    instruments; or

 20-7                (8)  provide methods of leveraging money that have been

 20-8    approved by the United States secretary of transportation and

 20-9    relate to the project for which the assistance is provided.

20-10          (b)  Financial assistance to a private entity under

20-11    Subsection (a) shall be limited to a qualified project that:

20-12                (1)  provides transportation services or facilities

20-13    that provide a demonstrated public benefit; or

20-14                (2)  is constructed or operated in cooperation with a

20-15    state agency or political subdivision in accordance with an

20-16    agreement between that agency or political subdivision and the

20-17    private entity.

20-18          Sec. 222.075.  REVENUE BONDS.  (a)  The commission may issue

20-19    revenue bonds for the purpose of providing money for the bank.

20-20          (b)  Except as provided by Subsection (c), the commission may

20-21    issue revenue bonds or revenue refunding bonds under this section

20-22    without complying with any other law applicable to the issuance of

20-23    bonds.

20-24          (c)  Notwithstanding any other provision of this section, the

20-25    following laws apply to bonds issued by the commission:

 21-1                (1)  Chapter 503, Acts of the 54th Legislature, 1955

 21-2    (Article 717k, Vernon's Texas Civil Statutes);

 21-3                (2)  Chapter 3, Acts of the 61st Legislature, Regular

 21-4    Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes);

 21-5                (3)  the Bond Procedures Act of 1981 (Article 717k-6,

 21-6    Vernon's Texas Civil Statutes);

 21-7                (4)  Chapter 1078, Acts of the 70th Legislature,

 21-8    Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil

 21-9    Statutes);

21-10                (5)  Article 3, Chapter 53, Acts of the 70th

21-11    Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's

21-12    Texas Civil Statutes); and

21-13                (6)  Chapter 656, Acts of the 68th Legislature, Regular

21-14    Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).

21-15          (d)  The revenue bonds are special obligations of the

21-16    commission payable only from income and receipts of the bank as the

21-17    commission may designate.  The income and receipts include

21-18    principal of and interest paid and to be paid on acquired

21-19    obligations, other designated obligations held by the bank, or

21-20    income from accounts created within the bank.

21-21          (e)  The revenue bonds do not constitute a debt of the state

21-22    or a pledge of the faith and credit of the state.

21-23          (f)  The commission may require participants to make charges,

21-24    levy taxes, or otherwise provide for sufficient money to pay

21-25    acquired obligations.

 22-1          (g)  Revenue bonds issued under this section shall be

 22-2    authorized by order of the commission and shall have the form and

 22-3    characteristics and bear the designations as are provided in the

 22-4    order.

 22-5          (h)  Revenue bonds shall:

 22-6                (1)  be dated;

 22-7                (2)  bear interest at the rate or rates authorized by

 22-8    law;

 22-9                (3)  mature at the time or times, serially, as term,

22-10    revenue bonds, or otherwise not more than 50 years after their

22-11    dates;

22-12                (4)  be called before stated maturity on the terms and

22-13    at the prices, be in the denominations, be in the form, either

22-14    coupon or registered, carry registration privileges as to principal

22-15    only or as to both principal and interest and as to successive

22-16    exchange of coupon for registered bonds or one denomination for

22-17    bonds of other denominations, and successive exchange of registered

22-18    revenue bonds for coupon revenue bonds, be executed in the manner,

22-19    and be payable at the place or places inside or outside the state,

22-20    as provided in the order;

22-21                (5)  be issued in temporary or permanent form;

22-22                (6)  be issued in one or more installments and from

22-23    time to time as required and sold at a price or prices and under

22-24    terms determined by the commission to be the most advantageous

22-25    reasonably obtainable; and

 23-1                (7)  be issued on a parity with and be secured in the

 23-2    manner as other revenue bonds authorized to be issued by this

 23-3    section or be issued without parity and secured differently from

 23-4    other revenue bonds.

 23-5          (i)  All proceedings relating to the issuance of revenue

 23-6    bonds issued under this section shall be submitted to the attorney

 23-7    general for examination.  On determining that the revenue bonds

 23-8    have been authorized in accordance with law, the attorney general

 23-9    shall approve the revenue bonds, and the revenue bonds shall be

23-10    registered by the comptroller.  After the approval and

23-11    registration, the revenue bonds are incontestable in any court or

23-12    other forum for any reason and are valid and binding obligations in

23-13    accordance with their terms for all purposes.

23-14          (j)  The proceeds received from the sale of revenue bonds

23-15    shall be deposited in the bank and invested in the manner provided

23-16    for other funds deposited under this subchapter.

23-17          Sec. 222.076.  SEPARATE SUBACCOUNTS.  The bank shall consist

23-18    of at least two separate subaccounts, a highway subaccount and a

23-19    transit subaccount.

23-20          Sec. 222.077.  REPAYMENT TERMS; DEPOSIT OF REPAYMENTS;

23-21    INVESTMENT INCOME.  (a)  Any funds disbursed through the state

23-22    infrastructure bank must be repaid on terms determined by the

23-23    commission that comply with the federal act.

23-24          (b)  Notwithstanding any other law to the contrary:

23-25                (1)  the repayment of a loan or other assistance

 24-1    provided with money deposited to the credit of a subaccount in the

 24-2    bank shall be deposited in that subaccount; and

 24-3                (2)  investment income generated by money deposited to

 24-4    the credit of a subaccount in the bank shall be:

 24-5                      (A)  credited to that subaccount;

 24-6                      (B)  available for use in providing financial

 24-7    assistance under this subchapter; and

 24-8                      (C)  invested in United States Treasury

 24-9    securities, bank deposits, or other financing instruments approved

24-10    by the United States secretary of transportation to earn interest

24-11    and enhance the financing of projects assisted by the bank.

24-12          (c)  The commission shall administer the bank in compliance

24-13    with the federal act and any applicable federal regulation or

24-14    guideline.

24-15          (d)  The commission by rule shall:

24-16                (1)  implement this subchapter; and

24-17                (2)  establish eligibility criteria for an entity

24-18    applying for financial assistance from the bank.

24-19          Sec. 222.078.  REPORT TO LEGISLATURE.  (a)  Not later than

24-20    January 1, 2001, the department shall submit a report to the

24-21    legislature on the status of projects funded by the state

24-22    infrastructure bank and the use of the bank.  The report must

24-23    include information about:

24-24                (1)  the financial and operational status of projects

24-25    assisted by the bank;

 25-1                (2)  the financial condition of the bank, including

 25-2    fund balances;

 25-3                (3)  the cumulative value of investments made; and

 25-4                (4)  the extent to which projects assisted by the bank

 25-5    have aided the state in meeting the state's transportation needs.

 25-6          (b)  This section expires January 1, 2001.

 25-7          SECTION 1.22.  Subchapter A, Chapter 223, Transportation

 25-8    Code, is amended by adding Sections 223.012 and 223.013 to read as

 25-9    follows:

25-10          Sec. 223.012.  CONTRACTOR PERFORMANCE.  (a)  The department

25-11    shall:

25-12                (1)  develop a schedule for liquidated damages that

25-13    accurately reflects the costs associated with project completion

25-14    delays, including administrative and travel delays;

25-15                (2)  review contractor bidding capacity to ensure that

25-16    contractors meet each quality, safety, and timeliness standard

25-17    established by the commission; and

25-18                (3)  conduct a review to determine whether commission

25-19    rules or state law should be changed to realize significant cost

25-20    and time savings on state highway construction and maintenance

25-21    projects.

25-22          (b)  Not later than December 1, 1998, the department shall

25-23    file a report with the governor, the lieutenant governor, and the

25-24    speaker of the house of representatives containing:

25-25                (1)  the results of the review conducted under

 26-1    Subsection (a)(3); and

 26-2                (2)  recommendations on legislation the commission

 26-3    determines is necessary to realize significant cost and time

 26-4    savings on state highway construction and maintenance.

 26-5          Sec. 223.013.  ELECTRONIC BIDDING SYSTEM.  (a)  The

 26-6    department may establish an electronic bidding system for highway

 26-7    construction and maintenance contracts.

 26-8          (b)  The system must permit a qualified vendor to

 26-9    electronically submit a bid, including any contract, signature, or

26-10    verification of a guaranty check by a financial institution.

26-11          (c)  That part of Section 223.004(a) requiring a bid to be

26-12    opened at a public hearing of the commission does not apply to an

26-13    electronically submitted bid.  A copy of each electronically

26-14    submitted bid shall be publicly posted within 48 hours after bids

26-15    are opened.

26-16          (d)  After the electronic bidding system is established, the

26-17    department shall take the actions necessary to recover the

26-18    department's costs of manually processing bids from a person who

26-19    does not submit an electronic bid.

26-20          SECTION 1.23.  Section 223.041, Transportation Code, is

26-21    amended to read as follows:

26-22          Sec. 223.041.  ENGINEERING AND DESIGN CONTRACTS.  (a)  The

26-23    department shall use private sector engineering-related services to

26-24    assist in accomplishing its activities in providing transportation

26-25    projects.  For the purpose of this section, engineering-related

 27-1    services means engineering, land surveying, environmental,

 27-2    transportation feasibility and financial, architectural, real

 27-3    estate appraisal, and materials laboratory services.  These

 27-4    engineering-related services are for highway improvements,

 27-5    right-of-way acquisition, and aviation improvements [department's

 27-6    policy regarding the regular use of private sector professional

 27-7    services for preliminary and construction engineering and

 27-8    engineering design shall achieve a balance between the use of

 27-9    department employees and the use of private contractors if the

27-10    costs are equivalent].

27-11          (b)  The department, in setting a minimum level of

27-12    expenditures in these engineering-related activities that will be

27-13    paid to the private sector providers, shall index the level of

27-14    expenditures from the amount set by rider in the General

27-15    Appropriations Act enacted by the 75th Legislature at its regular

27-16    session in 1997, expressed as a percentage of the total funds

27-17    appropriated in Strategy A.1.1. Plan/Design/Manage [office of the

27-18    state auditor shall determine relevant costs to be considered under

27-19    Subsection (a)].

27-20          (c)  Beginning in fiscal year 2000, the department shall

27-21    increase its expenditures to private sector providers for

27-22    engineering-related services at least one percentage point per year

27-23    until the expenditure level for a fiscal year in all strategies

27-24    paid to private sector providers for all department

27-25    engineering-related services for transportation projects reaches a

 28-1    minimum of 35 percent of funds appropriated in Strategy A.1.1.

 28-2    Plan/Design/Manage of the General Appropriations Act for that

 28-3    biennium.  The department shall attempt to make expenditures for

 28-4    engineering-related services with private sector providers under

 28-5    this subsection with historically underutilized businesses, as

 28-6    defined by Section 2161.001, Government Code, in an amount

 28-7    consistent with the applicable provisions of the Government Code,

 28-8    any applicable state disparity study, and in accordance with the

 28-9    good-faith-effort procedures outlined in the rules adopted by the

28-10    General Services Commission.

28-11          (d)  The commission shall [may] provide for hearings at which

28-12    private sector complaints relating to the selection process are

28-13    heard.

28-14          SECTION 1.24.  Chapter 224, Transportation Code, is amended

28-15    by adding Subchapter F to read as follows:

28-16       SUBCHAPTER F.  CONGESTION MITIGATION PROJECTS AND FACILITIES

28-17          Sec. 224.151.  DEFINITIONS.  In this subchapter:

28-18                (1)  "Congestion" means the level at which

28-19    transportation system performance is no longer acceptable because

28-20    of traffic interference.  The level of acceptable system

28-21    performance may vary by type of transportation facility, geographic

28-22    location, or time of day.

28-23                (2)  "Congestion mitigation" means projects and

28-24    facilities used to reduce congestion to promote the use of carpools

28-25    and vanpools, improve air quality, conserve fuel, and enhance the

 29-1    use of existing highways and facilities on the state highway

 29-2    system.

 29-3                (3)  "High occupancy vehicle" means a bus or other

 29-4    motorized passenger vehicle such as a carpool or vanpool vehicle

 29-5    used for ridesharing purposes and occupied by a specified minimum

 29-6    number of persons.

 29-7                (4)  "High occupancy vehicle lane" means one or more

 29-8    lanes of a highway or an entire highway where high occupancy

 29-9    vehicles, trucks, or emergency vehicles in any combination are

29-10    given at all times, or at regularly scheduled times, a priority or

29-11    preference over some or all other vehicles moving in the general

29-12    stream of all highway traffic.

29-13                (5)  "Motor vehicle" has the meaning assigned by

29-14    Section 522.003.

29-15                (6)  "Transportation corporation" means a

29-16    transportation corporation created by the state under Chapter 431.

29-17          Sec. 224.152.  PURPOSE.  (a)  Subject to the availability of

29-18    state and federal funds, it is the intent of the legislature to

29-19    further the purposes of the United States Congress as expressed in

29-20    23 U.S.C. Sections 134, 135, 146, and 149 and in Section 1012(b) of

29-21    Pub. L. No. 102-240 to conserve fuel, decrease traffic congestion

29-22    during rush hours, improve air quality, develop innovative

29-23    techniques to finance transportation projects, and enhance the use

29-24    of existing highways and facilities.

29-25          (b)  The legislature declares that it is necessary, to

 30-1    further the purposes described by Subsection (a), to provide for

 30-2    the participation of the commission and the department in projects

 30-3    and facilities for the purpose of congestion mitigation.

 30-4          Sec. 224.153.  HIGH OCCUPANCY VEHICLE LANES AUTHORIZED.

 30-5    (a)  The commission may designate and the department or a

 30-6    transportation corporation may design, construct, operate, or

 30-7    maintain one or more lanes on a multi-lane highway facility as

 30-8    dedicated high occupancy vehicle lanes on the state highway system.

 30-9          (b)  The commission may spend or allocate any available funds

30-10    to:

30-11                (1)  designate highway lanes as preferential carpool or

30-12    high occupancy vehicle lanes and create facilities to relieve

30-13    traffic congestion; or

30-14                (2)  make any other designation of a dedicated high

30-15    occupancy vehicle lane on the state highway system.

30-16          Sec. 224.154.  CONGESTION MITIGATION.  (a)  Notwithstanding

30-17    any law of this state relating to charging tolls on existing free

30-18    public highways, the commission may by order authorize the

30-19    department or a transportation corporation to charge a toll for the

30-20    use of one or more lanes of a state highway facility, including a

30-21    high occupancy vehicle lane, for the purposes of congestion

30-22    mitigation.  The commission may enter into an agreement with a

30-23    regional tollway authority described in Chapter 366, or a transit

30-24    authority described in Chapter 451, 452, or 453, to charge a toll

30-25    for the use of one or more lanes of a state highway facility under

 31-1    this subsection.

 31-2          (b)  The commission may by order set the amount of toll

 31-3    charges.  Any toll charges shall be imposed in a reasonable and

 31-4    nondiscriminatory manner.

 31-5          (c)  For purposes of congestion mitigation projects and

 31-6    facilities under this subchapter, the department, a transportation

 31-7    corporation, and a regional tollway authority or a transit

 31-8    authority with whom the commission has an agreement under this

 31-9    section are successor agencies to the Texas Turnpike Authority for

31-10    purposes of Section 52-b, Article III, Texas Constitution.

31-11          (d)  Revenue generated from toll charges and administrative

31-12    fees assessed by the department in connection with a congestion

31-13    mitigation facility shall be deposited in the state highway fund

31-14    and may be used only for projects for the improvement of the state

31-15    highway system.  Revenue generated from toll charges and

31-16    administrative fees assessed by an entity with whom the commission

31-17    contracts under this section shall be allocated as required by the

31-18    terms of the agreement.

31-19          (e)  The powers granted by this section are subject to the

31-20    restrictions of 23 U.S.C. Section 129.

31-21          Sec. 224.155.  FAILURE OR REFUSAL TO PAY TOLL CHARGES.  Any

31-22    motor vehicle other than a police or emergency vehicle that is

31-23    driven or towed through a toll collection facility shall pay the

31-24    proper toll.

31-25          Sec. 224.156.  ADMINISTRATIVE FEE; NOTICE.  (a)  In the event

 32-1    of nonpayment of the proper toll, on issuance of proper notice of

 32-2    nonpayment, the registered owner of the nonpaying vehicle is

 32-3    legally bound to pay both the proper toll and an administrative

 32-4    fee.

 32-5          (b)  The commission by rule and a transportation corporation

 32-6    by order of its board of directors may respectively fix an

 32-7    administrative fee, not to exceed $100, to recover the cost of

 32-8    collecting an unpaid toll.  The notice of nonpayment to the

 32-9    registered owner shall be sent by the department by first-class

32-10    mail not later than 30 days after the date of the alleged failure

32-11    to pay and may require payment not sooner than 30 days after the

32-12    date the notice was mailed.  The registered owner shall pay a

32-13    separate toll and administrative fee for each event of nonpayment.

32-14          (c)  If the registered owner of the vehicle fails to pay the

32-15    proper toll and administrative fee within the time specified by the

32-16    notice of nonpayment issued under this section, the registered

32-17    owner shall be cited as for other traffic violations for the

32-18    nonpayment, and the owner is legally bound to pay a fine, not to

32-19    exceed $250, for each event of nonpayment.  Neither the legal

32-20    obligation to pay nor the actual payment of the fine affects the

32-21    legal duty of the owner for any other fine or penalty prescribed by

32-22    law.

32-23          Sec. 224.157.  PROSECUTIONS.  (a)  In the prosecution of a

32-24    violation under Sections 224.155 and 224.156, proof that the

32-25    vehicle passed through a toll collection facility without payment

 33-1    of the proper toll, together with proof that the defendant was the

 33-2    registered owner of the vehicle when the failure to pay occurred,

 33-3    establishes the nonpayment of the registered owner.

 33-4          (b)  The court of the local jurisdiction in which the

 33-5    violation occurred may assess and collect the fine in addition to

 33-6    any court costs.  The court shall also collect the proper toll and

 33-7    administrative fee and forward the toll and fee to the department

 33-8    or to the transportation corporation.

 33-9          (c)  It is a defense to nonpayment under Section 224.155 or

33-10    224.156 that the motor vehicle in question was stolen before the

33-11    failure to pay the proper toll occurred and was not recovered by

33-12    the time of the failure to pay, but only if the theft was reported

33-13    to the appropriate law enforcement authority before the earlier of:

33-14                (1)  the occurrence of the failure to pay; or

33-15                (2)  eight hours after discovery of the theft.

33-16          (d)  A registered owner who is a lessor of a vehicle

33-17    concerning which a notice of nonpayment was issued under Section

33-18    224.156 is not liable in connection with that notice of nonpayment

33-19    if, not later than 30 days after the date the notice of nonpayment

33-20    is mailed, the registered owner provides to the department or the

33-21    transportation corporation a copy of the rental, lease, or other

33-22    contract document covering the vehicle on the date of the

33-23    nonpayment, with the name and address of the lessee clearly

33-24    legible.  Failure to provide this information within the period

33-25    prescribed renders the lessor liable as the registered owner.  If

 34-1    the lessor provides the required information within the period

 34-2    prescribed, the lessee of the vehicle on the date of the violation

 34-3    is considered to be the owner of the vehicle for purposes of this

 34-4    subchapter and is subject to prosecution for failure to pay the

 34-5    proper toll as if the lessee were the registered owner, if the

 34-6    department or the transportation corporation sends a notice of

 34-7    nonpayment to the lessee by first-class mail within 30 days after

 34-8    the date of receipt of the required information from the lessor.

 34-9          Sec. 224.158.  USE AND RETURN OF TRANSPONDERS.  (a)  For

34-10    purposes of this section, a "transponder" means a device, placed on

34-11    or within a motor vehicle, that is capable of transmitting

34-12    information used to assess or collect tolls.  A transponder is

34-13    "insufficiently funded" when there are no remaining funds in the

34-14    account in connection with which the transponder was issued.

34-15          (b)  Any law enforcement officer of the Department of Public

34-16    Safety has the authority to seize a stolen or insufficiently funded

34-17    transponder and to return it to the department or the

34-18    transportation corporation, except that an insufficiently funded

34-19    transponder may not be seized sooner than 30 days after the date

34-20    the department or the transportation corporation has sent a notice

34-21    of delinquency to the holder of the account.

34-22          (c)  The following entities shall consider offering motor

34-23    vehicle operators the option of using a transponder to pay tolls

34-24    without stopping, to mitigate congestion at toll collection

34-25    locations, to enhance traffic flow, and to otherwise increase

 35-1    efficiency of operations:

 35-2                (1)  the department;

 35-3                (2)  a regional tollway authority governed by Chapter

 35-4    366;

 35-5                (3)  a transportation corporation;

 35-6                (4)  an entity to which a project authorized by this

 35-7    subchapter is transferred by an entity described by Subdivision

 35-8    (1), (2), or (3); or

 35-9                (5)  a third-party service provider under contract with

35-10    an entity described by Subdivision (1), (2), (3), or (4).

35-11          Sec. 224.159.  ADOPTION OF RULES; PRESCRIBE FORMS.  The

35-12    commission shall adopt rules and prescribe forms to administer this

35-13    subchapter.

35-14          SECTION 1.25.  Section 431.073, Transportation Code, is

35-15    amended to read as follows:

35-16          Sec. 431.073.  PROJECT IN COUNTY OF 500,000 [1.5 MILLION] OR

35-17    MORE OR ADJACENT COUNTY.  (a)  This section applies only to a

35-18    corporation [in existence on August 31, 1991,] that was created by

35-19    the state or one or more counties or municipalities to implement a

35-20    transportation project in:

35-21                (1)  a county with a population of 500,000 [1.5

35-22    million] or more; or

35-23                (2)  a county adjacent to a county described by

35-24    Subdivision (1).

35-25          (b)  If approved and authorized by the commission, a

 36-1    corporation created by the state has the rights, powers,

 36-2    privileges, authority, and functions given the department under

 36-3    this title to:

 36-4                (1)  construct, improve, operate, and maintain high

 36-5    occupancy vehicle lanes; and

 36-6                (2)  charge a toll for the use of one or more high

 36-7    occupancy vehicle lanes for the purpose of congestion mitigation.

 36-8          (c)  A corporation in existence on August 31, 1991, has the

 36-9    powers, rights, and privileges of a corporation created under

36-10    Chapter 11, Title 32, Revised Statutes, as that law existed on

36-11    August 31, 1991, except that the required right-of-way of any

36-12    highway, road, street, or turnpike may be of the width required or

36-13    approved by the commission or each governing body creating the

36-14    corporation.

36-15          SECTION 1.26.  Section 224.033, Transportation Code, is

36-16    amended to read as follows:

36-17          Sec. 224.033.  COUNTY IMPROVEMENT OF STATE SYSTEM.  (a)  The

36-18    commission may enter into an agreement with the commissioners court

36-19    of a county [may contract with the department] for the improvement

36-20    by the county of the state highway system.

36-21          (b)  In this section, "improvement" means construction,

36-22    reconstruction, maintenance, and the making of a necessary plan or

36-23    survey before beginning construction, reconstruction, or

36-24    maintenance and includes a project or activity[:]

36-25                [(1)]  appurtenant to a state highway and including

 37-1    drainage facilities, surveying, traffic counts, driveways,

 37-2    landscaping, signs, lights, or guardrails[; or]

 37-3                [(2)  involving maintenance of a state highway and

 37-4    appurtenant facilities].

 37-5          SECTION 1.27.  Section 251.014, Transportation Code, is

 37-6    amended to read as follows:

 37-7          Sec. 251.014.  COUNTY IMPROVEMENT OF STATE HIGHWAY.  (a)  The

 37-8    commissioners court of a county may enter into an agreement

 37-9    [contract] with the commission [department] for the county to carry

37-10    out a project or activity for the improvement of a segment of the

37-11    state highway system.

37-12          (b)  In this section, "improvement" means construction,

37-13    reconstruction, maintenance, and the making of a necessary plan or

37-14    survey before beginning construction, reconstruction, or

37-15    maintenance and includes a [if the] project or activity[:]

37-16                [(1)  is] appurtenant to a state highway, including

37-17    surveying, making a traffic count, or landscaping or an activity

37-18    relating to a drainage facility, driveway, sign, light, or

37-19    guardrail[; or]

37-20                [(2)  involves maintenance of a state highway or

37-21    appurtenant facility].

37-22          SECTION 1.28.  Chapter 455, Transportation Code, is amended

37-23    by adding Section 455.0015 to read as follows:

37-24          Sec. 455.0015.  TRANSPORTATION NEEDS OF CLIENTS OF HEALTH AND

37-25    HUMAN SERVICES AGENCIES.  (a)  In performing its public

 38-1    transportation planning and funding activities, the department

 38-2    shall consider and include the transportation needs of those

 38-3    persons who are clients of the health and human services agencies

 38-4    of this state.

 38-5          (b)  It is the intent of the legislature that, whenever

 38-6    possible, and to the maximum extent feasible, the existing network

 38-7    of transportation providers, and in particular the fixed route

 38-8    components of the existing networks, be used to meet the client

 38-9    transportation requirements of the state's social service agencies

38-10    and their agents.  The legislature recognizes the contributions of

38-11    nonprofit entities dedicated to providing social services and

38-12    related activities and encourages the continued community

38-13    involvement of these entities in this area.

38-14          SECTION 1.29.  Subtitle K, Title 6, Transportation Code, is

38-15    amended by adding Chapter 459 to read as follows:

38-16           CHAPTER 459.  COORDINATION OF TRANSPORTATION SERVICES

38-17          Sec. 459.001.  DEFINITIONS.  In this chapter:

38-18                (1)  "Social services provider" means a state agency or

38-19    political subdivision of this state, including a contractor of an

38-20    agency or political subdivision, that:

38-21                      (A)  provides social services under the Health

38-22    and Safety Code, the Human Resources Code, or the Labor Code; and

38-23                      (B)  receives from the state or federal

38-24    government funds that may be spent to provide, subsidize, or

38-25    reimburse the cost of transportation services.

 39-1                (2)  "Transportation provider" means an entity that

 39-2    provides public transportation services under Chapter 451, 452, or

 39-3    453 of this code or Chapter 645, Acts of the 74th Legislature, 1995

 39-4    (Article 6663c-1, Vernon's Texas Civil Statutes).

 39-5          Sec. 459.002.  COORDINATION WITH TRANSPORTATION PROVIDERS.  A

 39-6    social services provider shall coordinate with each local

 39-7    transportation provider to the greatest extent possible to maximize

 39-8    the efficiency and effectiveness of transportation services

 39-9    available to social services clients.  The social services provider

39-10    shall reimburse each transportation provider for services

39-11    performed, including paratransit transportation services, in

39-12    accordance with applicable contracts or vendor agreements.

39-13          Sec. 459.003.  INVENTORY OF CURRENT CONTRACTS.  (a)  Not

39-14    later than October 1 of each year, the department shall provide a

39-15    listing of transportation providers to the executive director of

39-16    each state agency that provides social services under the Health

39-17    and Safety Code, the Human Resources Code, or the Labor Code.  The

39-18    listing shall include the name, address, and telephone number of

39-19    each transportation provider, the name of a designated contact

39-20    person for each transportation provider, and the names of the

39-21    counties served by each transportation provider.  The department

39-22    shall also provide a listing of areas not served by a

39-23    transportation provider along with the name, address, telephone

39-24    number, and the name of the designated contact person of each

39-25    transportation provider serving an area contiguous to an unserved

 40-1    area.

 40-2          (b)  Not later than November 1 of each year, the executive

 40-3    director of a state agency receiving information under Subsection

 40-4    (a) shall forward the listing of transportation providers,

 40-5    including the listing for unserved areas, to each social services

 40-6    provider that contracts for client transportation services within a

 40-7    transportation provider's service area or a contiguous unserved

 40-8    area under the state agency's programs.

 40-9          (c)  A social services provider receiving information under

40-10    Subsection (b) shall, not later than January 1 of each year,

40-11    provide to the transportation provider an inventory of current

40-12    contracts and in-house capital resources for the provision of

40-13    client transportation services within each transportation

40-14    provider's service area or an area contiguous to the service area

40-15    that is not served by a transportation provider.

40-16          (d)  At a minimum, the inventory under Subsection (c) must

40-17    include the name of the social services provider, the duration and

40-18    dollar amount of the contract, the unit or service rate, a

40-19    geographic description of the service area, and a description of

40-20    the type of service provided.

40-21          SECTION 1.30.  Section 623.074, Transportation Code, is

40-22    amended by adding Subsection (d) to read as follows:

40-23          (d)  The department may by rule authorize an applicant to

40-24    submit an application electronically.  An electronically submitted

40-25    application shall be considered signed if a digital signature is

 41-1    transmitted with the application and intended by the applicant to

 41-2    authenticate the application.  For purposes of this subsection,

 41-3    "digital signature" means an electronic identifier intended by the

 41-4    person using it to have the same force and effect as the use of a

 41-5    manual signature.

 41-6          SECTION 1.31.  (a)  Not later than April 30, 1998, the Texas

 41-7    Department of Transportation shall complete a study of alternative

 41-8    routes for a second transportation link from the mainland to South

 41-9    Padre Island that would:

41-10                (1)  provide an alternative for emergency ingress or

41-11    egress for permanent residents and daily and overnight visitors;

41-12                (2)  better disperse the traffic on the island to

41-13    reduce congestion at the southern end of the island;

41-14                (3)  reduce the travel time and cost by providing a

41-15    more direct route to the island from upper Rio Grande Valley

41-16    locations and provide relief to traffic congestion in

41-17    municipalities along existing highway routes; and

41-18                (4)  give priority to environmentally friendly

41-19    alternative options, such as a light-rail highway combination, that

41-20    could be anchored at the Valley International Airport and the South

41-21    Padre Convention Center or at other logical destinations.

41-22          (b)  The Texas Department of Transportation shall, not later

41-23    than December 31, 1998, report to the legislature on the

41-24    department's plans to implement the recommendations of the study

41-25    described by Subsection (a) of this section.

 42-1          SECTION 1.32.  Subsection (b), Section 201.109,

 42-2    Transportation Code, is amended to read as follows:

 42-3          (b)  In carrying out this section, the commission shall

 42-4    provide for:

 42-5                (1)  maximizing the generation of revenue from existing

 42-6    assets of the department, including real estate;

 42-7                (2)  increasing the role of the private sector and

 42-8    public-private projects in the leasing of real estate and other

 42-9    assets in the development of highway projects;

42-10                (3)  setting and attempting to meet annual revenue

42-11    enhancement goals;

42-12                (4)  reporting on the progress in meeting revenue

42-13    enhancement goals in the department's annual report; [and]

42-14                (5)  contracting for an independent audit of the

42-15    department's management and business operations in 2001 and each

42-16    12th year after 2001; and

42-17                (6)  developing a cost-benefit analysis between the use

42-18    of local materials previously incorporated into roadways versus use

42-19    of materials blended or transported from other sources.

42-20          SECTION 1.33.  Subchapter C, Chapter 791, Government Code, is

42-21    amended by adding Section 791.031 to read as follows:

42-22          Sec. 791.031.  TRANSPORTATION INFRASTRUCTURE.  (a)  This

42-23    section applies only to a local government, other than a school

42-24    district, that is authorized to impose ad valorem taxes on real

42-25    property.

 43-1          (b)  The Texas Department of Transportation may enter into an

 43-2    interlocal contract with a local government for the financing of

 43-3    transportation infrastructure that is constructed or that is to be

 43-4    constructed in the territory of the local government by the

 43-5    department in a corridor of land on which no existing state or

 43-6    federal highway is located.

 43-7          (c)  The agreement must include:

 43-8                (1)  the duration of the agreement, which may not

 43-9    exceed 12 years;

43-10                (2)  a description of each transportation

43-11    infrastructure project or proposed project;

43-12                (3)  a map showing the location of each project and

43-13    property included in the contract; and

43-14                (4)  an estimate of the cost of each project.

43-15          (d)  The agreement may establish one or more transportation

43-16    infrastructure zones.  The Texas Department of Transportation and

43-17    the local government may agree that at one or more specified times,

43-18    the local government will pay to the Texas Department of

43-19    Transportation an amount that is calculated on the basis of

43-20    increased ad valorem tax collections in a zone that are

43-21    attributable to increased values of property located in the zone

43-22    resulting from an infrastructure project.  The amount may not

43-23    exceed an amount that is equal to 30 percent of the increase in ad

43-24    valorem tax collections for the specified period.

43-25          (e)  Money received by the Texas Department of Transportation

 44-1    under this section may be used:

 44-2                (1)  to provide a local match for the acquisition of

 44-3    right-of-way in the territory of the local government; or

 44-4                (2)  for design, construction, operation, or

 44-5    maintenance of transportation facilities in the territory of the

 44-6    local government.

 44-7          SECTION 1.34.  Subtitle A, Title 4, Transportation Code, is

 44-8    amended by adding Chapter 53 to read as follows:

 44-9              CHAPTER 53.  PORT AUTHORITY ADVISORY COMMITTEE

44-10          Sec. 53.001.  PORT AUTHORITY ADVISORY COMMITTEE.  (a)  The

44-11    port authority advisory committee consists of five members

44-12    appointed by the Texas Transportation Commission to advise the

44-13    commission and the Texas Department of Transportation on matters

44-14    relating to port authorities, including:

44-15                (1)  intermodal and multimodal transportation issues

44-16    relating to Texas waterways and ports and port improvements; and

44-17                (2)  the identification and development of funding

44-18    mechanisms, including the state infrastructure bank, for addressing

44-19    the issues described by Subdivision (1).

44-20          (b)  The members shall be appointed as follows:

44-21                (1)  one member who represents the Port of Houston

44-22    Authority of Harris County, Texas;

44-23                (2)  two members who represent ports other than Houston

44-24    on the upper Texas coast; and

44-25                (3)  two members who represent ports on the lower Texas

 45-1    coast.

 45-2          (c)  A committee member serves at the pleasure of the Texas

 45-3    Transportation Commission.

 45-4          (d)  A committee member may not receive compensation for

 45-5    serving as a member but is entitled to reimbursement for reasonable

 45-6    expenses incurred in performing the member's duties.

 45-7          (e)  The Texas Transportation Commission may adopt rules to

 45-8    govern the operations of the committee.

 45-9          SECTION 1.35.  Section 201.105, Transportation Code, is

45-10    amended by adding Subsection (g) to read as follows:

45-11          (g)  The commission may require by rule that any product or

45-12    material that is approved for use in any one district may be

45-13    approved for use by any other district.

45-14          SECTION 1.36.  (a)  Subchapter C, Chapter 201, Transportation

45-15    Code, is amended by adding Section 201.112 to read as follows:

45-16          Sec. 201.112.  CONTRACT CLAIMS.  (a)  The commission may by

45-17    rule establish procedures for the informal resolution of a claim

45-18    arising out of a contract described by:

45-19                (1)  Section 22.018;

45-20                (2)  Chapter 223; or

45-21                (3)  Chapter 2254, Government Code.

45-22          (b)  If a person with a claim is dissatisfied with the

45-23    department's resolution of the claim under the procedures

45-24    authorized under Subsection (a), the person may request a formal

45-25    administrative hearing to resolve the claim under Chapter 2001,

 46-1    Government Code.

 46-2          (c)  An administrative law judge's proposal for decision

 46-3    rendered under Chapter 2001, Government Code, shall be submitted to

 46-4    the director for adoption.  Notwithstanding any law to the

 46-5    contrary, the director may change a finding of fact or conclusion

 46-6    of law made by the administrative law judge or may vacate or modify

 46-7    an order issued by the administrative law judge.  The director

 46-8    shall provide a written statement containing the reason and legal

 46-9    basis for a change made under this subsection.

46-10          (d)  The director's final order is subject to judicial review

46-11    under Chapter 2001, Government Code, under the substantial evidence

46-12    rule.

46-13          (e)  This section does not waive state immunity from

46-14    liability.

46-15          (b)  Notwithstanding any other law, the procedures prescribed

46-16    by Section 201.112, Transportation Code, as added by Subsection (a)

46-17    of this section, shall constitute the exclusive remedy at law for

46-18    the resolution of a claim governed by that section.

46-19          (c)  Section 201.112, Transportation Code, as added by

46-20    Subsection (a) of this section, applies to any claim governed by

46-21    that section:

46-22                (1)  filed with the Texas Department of Transportation

46-23    on or after the effective date of this Act; or

46-24                (2)  pending before the Texas Department of

46-25    Transportation on the effective date of this Act.

 47-1          (d)  For purposes of Subdivision (2) of Subsection (c) of

 47-2    this section, a claim is pending before the Texas Department of

 47-3    Transportation if the claim has been filed, but the claimant has

 47-4    not sought judicial review under Chapter 2001, Government Code.

 47-5          SECTION 1.37.  Subchapter D, Chapter 201, Transportation

 47-6    Code, is amended by adding Section 201.2035 to read as follows:

 47-7          Sec. 201.2035.  ACCOUNTING STRUCTURE.  The department shall

 47-8    create and maintain an accounting structure for roadway and

 47-9    warehouse inventory of the department.  The accounting structure

47-10    must provide for the accounting for lost or destroyed materials.

47-11          SECTION 1.38.  Subchapter F, Chapter 201, Transportation

47-12    Code, is amended by adding Section 201.406 to read as follows:

47-13          Sec. 201.406.  RELOCATION ASSISTANCE.  (a)  In addition to

47-14    authority granted by other law, the department may reimburse

47-15    transferred employees for expenses or costs related to selling

47-16    existing housing and purchasing and financing comparable

47-17    replacement housing if the director determines that the transfer

47-18    will enhance the department's ability to accomplish its goals and

47-19    missions.

47-20          (b)  For purposes of this section, the following expenses or

47-21    costs related to the selling of existing housing and the leasing,

47-22    purchasing, and financing of comparable replacement housing are

47-23    reimbursable:

47-24                (1)  any commissions and fees due to a broker or real

47-25    estate agent;

 48-1                (2)  costs incurred as a purchaser to obtain a home

 48-2    loan, including loan application fees, credit report fees, and

 48-3    mortgage points;

 48-4                (3)  origination fees, title insurance, recording fees,

 48-5    and all other closing costs required to be paid by the employee;

 48-6                (4)  fees or charges, other than refundable deposits,

 48-7    necessary to establish telephone, gas, and electric service; and

 48-8                (5)  travel expenses incurred while looking for a new

 48-9    residence, reimbursed at the standard mileage rate, for travel to

48-10    and from the new designated headquarters.

48-11          (c)  Under this section, the department may not:

48-12                (1)  provide reimbursement for more than five employees

48-13    per fiscal year;

48-14                (2)  pay a sum of more than $15,000 to any employee;

48-15                (3)  purchase or pay any part of the purchase price of

48-16    any employee's home;

48-17                (4)  provide reimbursement for the purchase or

48-18    financing of a house if the employee did not own and occupy

48-19    existing housing at the time of transfer; or

48-20                (5)  provide reimbursement when the distance between

48-21    the two designated headquarters of a transferred employee is less

48-22    than 25 miles.

48-23          (d)  The department may pay the reasonable, necessary, and

48-24    resulting costs of moving the household goods and effects of a

48-25    transferred employee if:

 49-1                (1)  the director determines that the transfer will

 49-2    enhance the department's ability to accomplish its goals and

 49-3    missions; and

 49-4                (2)  the distance between the two designated

 49-5    headquarters of a transferred employee is at least 25 miles.

 49-6          SECTION 1.39.  Subchapter H, Chapter 201, Transportation

 49-7    Code, is amended by adding Section 201.610 to read as follows:

 49-8          Sec. 201.610.  HIGHWAY SOUND BARRIERS.  The department may

 49-9    erect a sound barrier to reduce the noise from a road or highway in

49-10    the state highway system at any location the department determines

49-11    is appropriate, including along the right-of-way of a railroad that

49-12    runs parallel or adjacent to a road or highway.

49-13          SECTION 1.40.  Subchapter H, Chapter 201, Transportation

49-14    Code, is amended by adding Section 201.611 to read as follows:

49-15          Sec. 201.611.  COORDINATION OF FLOOD CONTROL.  In the

49-16    construction of its highway projects, the department shall

49-17    coordinate with local flood control authorities to minimize the

49-18    impact of flooding.

49-19          SECTION 1.41.  Subchapter I, Chapter 201, Transportation

49-20    Code, is amended by adding Section 201.706 to read as follows:

49-21          Sec. 201.706.  LOCAL GOVERNMENT ASSISTANCE.  From

49-22    appropriated funds, the department shall assist counties with

49-23    materials to repair and maintain county roads.  The department

49-24    shall:

49-25                (1)  provide that the total annual value of assistance

 50-1    under this section is:

 50-2                      (A)  at least $12 million per year for fiscal

 50-3    years 1998 and 1999; and

 50-4                      (B)  at least $6 million per year for a fiscal

 50-5    year other than 1998 or 1999;

 50-6                (2)  make maximum usage of surplus materials on hand;

 50-7                (3)  develop rules and procedures to implement this

 50-8    section and to provide for the distribution of the assistance with

 50-9    preference given to counties with an above average number of

50-10    overweight trucks receiving weight tolerance permits based on the

50-11    previous year's permit totals; and

50-12                (4)  undertake cooperative and joint procurement of

50-13    road materials with counties under General Services Commission

50-14    procedures.

50-15          SECTION 1.42.  Subtitle B, Title 6, Transportation Code, is

50-16    amended by adding Chapter 226 to read as follows:

50-17              CHAPTER 226.  EMERGENCY HIGHWAY CALL BOX SYSTEM

50-18          Sec. 226.001.  DEFINITION.  In this chapter, "emergency

50-19    response services" means:

50-20                (1)  fire-fighting, law enforcement, or emergency

50-21    medical services that are provided by a public agency; or

50-22                (2)  motorist assistance services.

50-23          Sec. 226.002.  APPLICABILITY; LIMITATION ON EXPENDITURES.

50-24    This chapter does not:

50-25                (1)  apply to a segment of a highway that the

 51-1    commission has designated as a farm-to-market or ranch-to-market

 51-2    road; or

 51-3                (2)  authorize the department to make an expenditure of

 51-4    money for the implementation, operation, or maintenance of the

 51-5    emergency telephone call box system out of the state highway fund.

 51-6          Sec. 226.003.  INSTALLATION, OPERATION, AND MAINTENANCE OF

 51-7    CALL BOX SYSTEM.  (a)  The department may provide for the

 51-8    installment, operation, and maintenance of a system of emergency

 51-9    telephone call boxes along those highways in this state that are

51-10    part of the designated state highway system.

51-11          (b)  The system may:

51-12                (1)  be designed to enable users of those highways to

51-13    request emergency and nonemergency response services;

51-14                (2)  include:

51-15                      (A)  wired or wireless telecommunications

51-16    services; and

51-17                      (B)  one or more motorist assistance answering

51-18    centers; and

51-19                (3)  be capable of performing compatible Intelligent

51-20    Transportation System (ITS) functions.

51-21          (c)  To minimize call processing loads in public safety

51-22    answering points established under Chapter 771 or 772, Health and

51-23    Safety Code, the department may contract with a private entity to

51-24    perform the functions of a motorist assistance answering center

51-25    under Subsection (b)(2)(B).

 52-1          Sec. 226.004.  FUNDING.  The department may implement a call

 52-2    box system under this chapter if a public or private entity

 52-3    provides all direct and indirect costs necessary for the

 52-4    installment, operation, and maintenance of the system.

 52-5          Sec. 226.005.  LOCATION OF AND DISTANCE BETWEEN CALL BOXES.

 52-6    The location of the emergency call boxes shall be determined by the

 52-7    department in accordance with the design specifications of the

 52-8    system.

 52-9          Sec. 226.006.  CONTRACTS FOR IMPLEMENTATION AND INSTALLATION.

52-10    (a)  The department may award a contract for the installation,

52-11    maintenance, or operation of a call box system in the manner

52-12    provided by Chapter 223.

52-13          (b)  The department may solicit proposals for and enter into

52-14    one or more lease-purchase agreements under this chapter.

52-15          Sec. 226.007.  INTERGOVERNMENTAL COOPERATION.  The Advisory

52-16    Commission on State Emergency Communications, agencies of this

52-17    state, and each county and municipality in this state shall

52-18    cooperate in the design, establishment, operation, and maintenance

52-19    of the emergency telephone call box system.

52-20          SECTION 1.43.  (a)  Section 472.011, Transportation Code, is

52-21    amended to read as follows:

52-22          Sec. 472.011.  Definition.  In this subchapter, "personal

52-23    property" includes personal property of any kind or character,

52-24    including:

52-25                (1)  a vehicle, as defined by Section 502.001, that is

 53-1    damaged or disabled;

 53-2                (2)  spilled cargo;[,]

 53-3                (3)  a hazardous material as defined by 49 U.S.C. App.

 53-4    Section 1802;[,] and

 53-5                (4)  a hazardous substance as defined by Section

 53-6    26.263, Water Code.

 53-7          (b)  Section 472.014, Transportation Code, is amended to read

 53-8    as follows:

 53-9          Sec. 472.014.  Department Not Liable for Damages.

53-10    Notwithstanding any other provision of law, the [The] department

53-11    and its officers and employees are not liable for:

53-12                (1)  any damage to personal property resulting from its

53-13    removal or disposal by the department unless the removal or

53-14    disposal is carried out recklessly or in a grossly negligent

53-15    manner; or

53-16                (2)  any damage resulting from the failure to exercise

53-17    authority granted under this subchapter.

53-18          SECTION 1.44.  Subchapter F, Chapter 502, Transportation

53-19    Code, is amended by adding Section 502.2703 to read as follows:

53-20          Sec. 502.2703.  PROFESSIONAL SPORTS TEAM LICENSE PLATES.

53-21    (a)  The department shall issue for passenger cars and light trucks

53-22    specially designed license plates that include the name and

53-23    insignia of a professional sports team located in this state.

53-24          (b)  The department may not issue a license plate under this

53-25    section for a particular professional sports team unless that team:

 54-1                (1)  certifies to the department that it has determined

 54-2    that at least 5,000 persons will apply for the plates; and

 54-3                (2)  plays its home games in a facility constructed or

 54-4    operated, in whole or in part, with public funds.

 54-5          (c)  Except as provided by Subsection (b), the department

 54-6    shall issue license plates under this section to a person who:

 54-7                (1)  applies to the county assessor-collector of the

 54-8    county in which the person resides on a form provided by the

 54-9    department; and

54-10                (2)  pays an annual fee of $35, in addition to the fee

54-11    prescribed by Section 502.161 and, if personalized prestige license

54-12    plates are issued, in addition to the fee prescribed by Section

54-13    502.251.

54-14          (d)  Of each fee collected under this section, the department

54-15    shall:

54-16                (1)  send $25 to the public entity that provided public

54-17    funds for the construction or renovation of the facility in which

54-18    the professional sports team plays its home games or that provides

54-19    public funds for the operation of that facility; and

54-20                (2)  deposit $10 to the credit of the state highway

54-21    fund.

54-22          (e)  Funds distributed to a public entity under Subsection

54-23    (d)(1) shall be deposited to the credit of the venue project fund,

54-24    if the public entity has created a venue project fund under Section

54-25    334.042 or 335.072, Local Government Code.  If the public entity

 55-1    has not created a venue project fund, funds distributed to a public

 55-2    entity under Subsection (d)(1) must first be used to retire any

 55-3    public debt incurred by the public entity in the construction or

 55-4    acquisition of the facility in which the professional sports team

 55-5    plays its home games.  After that debt is retired, funds

 55-6    distributed to the public entity may be spent only for maintenance

 55-7    or improvement of the facility.

 55-8          (f)  If the owner of a vehicle registered under this section

 55-9    disposes of the vehicle during the registration year, the owner

55-10    shall return the special license plates to the department.

55-11          (g)  In this section:

55-12                (1)  "Public entity" includes a municipality, county,

55-13    industrial development corporation, or special district that is

55-14    authorized to plan, acquire, establish, develop, construct, or

55-15    renovate a facility in which a professional sports team plays its

55-16    home games.

55-17                (2)  "Professional sports team" means a sports team

55-18    that is a member or an affiliate of a member of the National

55-19    Football League, National Basketball Association, or National

55-20    Hockey League or a major league baseball team.

55-21          SECTION 1.45.  Subchapter H, Chapter 545, Transportation

55-22    Code, is amended by adding Section 545.3535 to read as follows:

55-23          Sec. 545.3535.  AUTHORITY OF TEXAS TRANSPORTATION COMMISSION

55-24    TO ALTER SPEED LIMITS ON CERTAIN ROADS.  (a)  The commissioners

55-25    court of a county may request the Texas Transportation Commission

 56-1    to determine and declare a reasonable and safe prima facie speed

 56-2    limit that is lower than a speed limit established by Section

 56-3    545.352 on any part of a farm-to-market or a ranch-to-market road

 56-4    of the highway system that is located in that county and has a

 56-5    pavement width of 20 feet or less.

 56-6          (b)  If the commission receives a request under Subsection

 56-7    (a), the commission shall publish in a newspaper of general

 56-8    circulation in the affected county notice of:

 56-9                (1)  the request of the commissioners court; and

56-10                (2)  the time and place of a hearing in the county on

56-11    the request.

56-12          (c)  The commission may elect to determine and declare a

56-13    lower speed limit on any part of the road without an engineering

56-14    and traffic investigation, but the commission must use sound and

56-15    generally accepted traffic engineering practices in determining and

56-16    declaring the lower speed limit.

56-17          (d)  The commission by rule shall establish standards for

56-18    determining lower speed limits within a set range.

56-19          SECTION 1.46.  (a)  Subchapter B, Chapter 21, Property Code,

56-20    is amended by adding Section 21.0195 to read as follows:

56-21          Sec. 21.0195.  DISMISSAL OF CERTAIN CONDEMNATION PROCEEDINGS;

56-22    TEXAS DEPARTMENT OF TRANSPORTATION.  (a)  This section applies only

56-23    to the dismissal of a condemnation proceeding that involves the

56-24    Texas Department of Transportation.

56-25          (b)  The department may move to dismiss a proceeding it

 57-1    files, and the court shall conduct a hearing on the motion.  The

 57-2    court may grant the motion only if the court determines that the

 57-3    property owner's interest will not be materially affected by the

 57-4    dismissal.  The department may not dismiss the condemnation

 57-5    proceedings merely to institute new proceedings that involve

 57-6    substantially the same condemnation against the same property owner

 57-7    solely to obtain a lower condemnation award.

 57-8          (c)  If a court dismisses a condemnation proceeding on the

 57-9    motion of the department or as a result of the failure of the

57-10    department to bring the proceeding properly, the court shall make

57-11    an allowance to the property owner for the value of the

57-12    department's use of the property while in possession of the

57-13    property, any damage that the condemnation has caused to the

57-14    property owner, and any expenses the property owner has incurred in

57-15    connection with the condemnation, including reasonable and

57-16    necessary fees for attorneys.

57-17          (b)  The changes in law made by this section apply only to

57-18    dismissal of a condemnation proceeding for which a motion is made

57-19    on or after the effective date of this section.  Dismissal of a

57-20    condemnation proceeding for which a motion is made before the

57-21    effective date of this section is governed by the law in effect at

57-22    the time the motion was made, and that law is continued in effect

57-23    for that purpose.

57-24          SECTION 1.47.  The Texas Department of Transportation shall

57-25    conduct a feasibility study to determine the need for construction

 58-1    of additional public rest areas with restrooms along the section of

 58-2    Interstate 35 between San Antonio and Laredo and report its

 58-3    findings to the legislature not later than January 1, 1999.

 58-4          SECTION 1.48.  (a)  Notwithstanding any other law including

 58-5    Chapter 552, Government Code, the Texas Department of

 58-6    Transportation is prohibited from providing motor vehicle

 58-7    certificate of title information or motor vehicle registration

 58-8    personal information that consists of the name, address, or date of

 58-9    birth of an individual unless the person receiving the information

58-10    agrees in writing with the department that the person will not

58-11    disseminate or publish the information on the Internet or similar

58-12    computer cyberspace network or bulletin board or permit another to

58-13    disseminate or publish the information in that manner.

58-14          (b)  A person having access to or in possession of the

58-15    information provided under this section may not disseminate or

58-16    publish this information on the Internet or similar computer

58-17    cyberspace network or bulletin board.  A person commits an offense

58-18    if the person disseminates or distributes information in violation

58-19    of this section.

58-20          (c)  An offense under this section is a misdemeanor

58-21    punishable by:

58-22                (1)  a fine of not more than $1,000;

58-23                (2)  confinement in the county jail for not more than

58-24    six months; or

58-25                (3)  both the fine and confinement.

 59-1          (d)  As soon as practicable, the Texas Department of

 59-2    Transportation shall adopt emergency rules to implement this

 59-3    section.

 59-4          (e)  This section takes effect only if S.B. No. 1069, 75th

 59-5    Legislature, Regular Session, 1997, does not become law.  If that

 59-6    legislation becomes law, this section has no effect.

 59-7          SECTION 1.49.  Subsection (e), Section 201.051,

 59-8    Transportation Code, is repealed.

 59-9          SECTION 1.50.  (a)  As soon as practicable, the Texas

59-10    Department of Transportation, using funds authorized by minute

59-11    order 106860 passed by the Texas Transportation Commission on June

59-12    18, 1996, shall conduct a study to explore whether it is practical

59-13    for the department to develop and carry out a statewide Type II

59-14    Noise Abatement Program.

59-15          (b)  Not later than the 10th day after the date on which the

59-16    Texas Department of Transportation releases a report or the results

59-17    of the study, the department shall provide notice of the study to

59-18    each member of the legislature who represents a county that is

59-19    covered by the study or that may be affected by the study.

59-20          (c)  On request of a member of the legislature, the Texas

59-21    Department of Transportation shall provide the member with a copy

59-22    of the study.

59-23                      ARTICLE 2.  OUTDOOR ADVERTISING

59-24          SECTION 2.01.  Section 391.065, Transportation Code, is

59-25    amended by adding Subsection (c) to read as follows:

 60-1          (c)  The commission may not adopt a rule under this chapter

 60-2    that restricts competitive bidding or advertising by the holder of

 60-3    a license issued under this chapter other than a rule to prohibit

 60-4    false, misleading, or deceptive practices.  The limitation provided

 60-5    by this section applies only to rules relating to the occupation of

 60-6    outdoor advertiser and does not affect the commission's power to

 60-7    regulate the orderly and effective display of outdoor advertising

 60-8    under this chapter.  A rule to prohibit false, misleading, or

 60-9    deceptive practices may not:

60-10                (1)  restrict the use of:

60-11                      (A)  any legal medium for an advertisement;

60-12                      (B)  the license holder's advertisement under a

60-13    trade name; or

60-14                      (C)  the license holder's personal appearance or

60-15    voice in an advertisement, if the license holder is an individual;

60-16    or

60-17                (2)  relate to the size or duration of an advertisement

60-18    by the license holder.

60-19          SECTION 2.02.  Section 391.062, Transportation Code, is

60-20    amended by adding Subsection (c) to read as follows:

60-21          (c)  At least 30 days before the date on which a person's

60-22    license expires, the commission shall notify the person of the

60-23    impending expiration.  The notice must be in writing and sent to

60-24    the person's last known address according to the records of the

60-25    commission.

 61-1          SECTION 2.03.  Subsection (a), Section 391.066,

 61-2    Transportation Code, is amended to read as follows:

 61-3          (a)  The commission may revoke or suspend a license issued

 61-4    under this subchapter or place on probation a license holder whose

 61-5    license is suspended if the license holder violates this chapter or

 61-6    a rule adopted under this chapter.  If the suspension of the

 61-7    license is probated, the department may require the license holder

 61-8    to report regularly to the commission on any matter that is the

 61-9    basis of the probation.

61-10          SECTION 2.04.  Subchapter D, Chapter 391, Transportation

61-11    Code, is amended by adding Sections 391.097 and 391.098 to read as

61-12    follows:

61-13          Sec. 391.097.  MAJOR AGRICULTURAL INTEREST SIGN.  (a)  In

61-14    this section:

61-15                (1)  "Eligible rural highway" means a highway that:

61-16                      (A)  has noncontrolled access; and

61-17                      (B)  is outside the corporate limits of a

61-18    municipality.

61-19                (2)  "Major agricultural interest" means a farm, ranch,

61-20    winery, nursery, greenhouse, or other facility that:

61-21                      (A)  sows or cultivates an agricultural product;

61-22                      (B)  devotes a minimum of five acres of land to

61-23    the production of the agricultural product;

61-24                      (C)  markets the product on the premises as a

61-25    retail sale of the product; and

 62-1                      (D)  conducts public tours of the grounds or

 62-2    facilities.

 62-3          (b)  The commission shall enter into one or more contracts

 62-4    with an individual, firm, group, or association in this state to

 62-5    erect and maintain major agricultural interest signs at appropriate

 62-6    locations along eligible rural highways.

 62-7          (c)  A contract under this section shall provide for:

 62-8                (1)  the assessment of fees to be paid to a contractor

 62-9    by a commercial establishment of a major agricultural interest; and

62-10                (2)  remittance to the department of a portion of the

62-11    fees collected by the contractor in an amount sufficient to recover

62-12    the department's costs of administering the program.

62-13          (d)  To be eligible to have its name displayed on a major

62-14    agricultural interest sign, a major agricultural interest must be

62-15    located within five miles of an intersection with an eligible rural

62-16    highway.

62-17          (e)  A major agricultural interest sign must:

62-18                (1)  have a brown background with a white reflective

62-19    legend and border;

62-20                (2)  not contain a corporate or trademark symbol; and

62-21                (3)  not contain a message, symbol, or trademark that

62-22    resembles an official traffic control device.

62-23          (f)  The commission shall:

62-24                (1)  regulate the content, composition, placement,

62-25    erection, and maintenance of major agricultural interest signs and

 63-1    supports on an eligible rural highway right-of-way; and

 63-2                (2)  adopt rules necessary to administer and enforce

 63-3    this section.

 63-4          Sec. 391.098.  VARIANCES.  (a)  The commission shall

 63-5    authorize the director to grant variances, on a case-by-case basis,

 63-6    to the eligibility, location, or placement of specific logo signs,

 63-7    major agricultural interest signs, and major shopping area guide

 63-8    signs, including the highways along which a sign may be located.

 63-9    The commission may adopt rules prescribing conditions or guidelines

63-10    the director should or must consider when determining whether to

63-11    grant a variance.

63-12          (b)  The director may grant a variance if the director

63-13    determines that:

63-14                (1)  the variance would promote traffic safety;

63-15                (2)  the variance would improve traffic flow;

63-16                (3)  an overpass, highway sign, or other highway

63-17    structure unduly obstructs the visibility of an existing commercial

63-18    sign; or

63-19                (4)  the variance would satisfy other conditions or

63-20    guidelines prescribed by commission rules authorizing the granting

63-21    of variances.

63-22          (c)  The director may not grant a variance to the

63-23    requirements of this subchapter regarding supports, content, or

63-24    composition of signs.

63-25          SECTION 2.05.  Section 394.003, Transportation Code, is

 64-1    amended by adding Subsection (c) to read as follows:

 64-2          (c)  This chapter does not apply to a directional sign for a

 64-3    small business, as defined  by Section 2006.001, Government Code,

 64-4    if the sign:

 64-5                (1)  is on private property; and

 64-6                (2)  has a surface area not larger than 50 square feet.

 64-7          SECTION 2.06.  Subsection (b), Section 394.021,

 64-8    Transportation Code, is amended to read as follows:

 64-9          (b)  Except as otherwise authorized by this chapter, the

64-10    commission may not issue a permit for an off-premise sign unless

64-11    the sign is to be located:

64-12                (1)  within 800 feet of a [one or more] recognized

64-13    commercial or industrial business activity or the office of a

64-14    governmental entity [activities]; and

64-15                (2)  on the same side of the road as the business

64-16    activity or the office of the governmental entity [activities].

64-17              ARTICLE 3.  TEXAS MOTOR VEHICLE COMMISSION CODE

64-18          SECTION 3.01.  Section 2.02A, Texas Motor Vehicle Commission

64-19    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

64-20    to read as follows:

64-21          Sec. 2.02A.  APPOINTMENTS.  Appointments to the Commission

64-22    shall be made without [with due] regard to [for] the race, color,

64-23    disability, sex, religion, or [ethnicity, gender, and] national

64-24    origin of the appointees.

64-25          SECTION 3.02.  Subchapter B, Texas Motor Vehicle Commission

 65-1    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

 65-2    by adding Section 2.03A to read as follows:

 65-3          Sec. 2.03A.  TRAINING ON DEPARTMENT AND CERTAIN LAWS RELATING

 65-4    TO DEPARTMENT.  (a)  To be eligible to take office as a member of

 65-5    the Commission, a person appointed to the Commission must complete

 65-6    at least one course of a training program that complies with this

 65-7    section.

 65-8          (b)  The training program must provide information to the

 65-9    person regarding:

65-10                (1)  this Act;

65-11                (2)  the programs operated by the department;

65-12                (3)  the role and functions of the department;

65-13                (4)  the rules of the department with an emphasis on

65-14    the rules that relate to disciplinary and investigatory authority;

65-15                (5)  the current budget for the department;

65-16                (6)  the results of the most recent formal audit of the

65-17    department;

65-18                (7)  the requirements of the:

65-19                      (A)  open meetings law, Chapter 551, Government

65-20    Code;

65-21                      (B)  open records law, Chapter 552, Government

65-22    Code; and

65-23                      (C)  administrative procedure law, Chapter 2001,

65-24    Government Code;

65-25                (8)  the requirements of the conflict of interest laws

 66-1    and other laws relating to public officials; and

 66-2                (9)  any applicable ethics policies adopted by the

 66-3    Commission or the Texas Ethics Commission.

 66-4          (c)  A person appointed to the Commission is entitled to

 66-5    reimbursement for travel expenses incurred in attending the

 66-6    training program, as provided by the General Appropriations Act and

 66-7    as if the person were a member of the Commission.

 66-8          SECTION 3.03.  Subsection (b), Section 2.08, Texas Motor

 66-9    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

66-10    Statutes), is amended to read as follows:

66-11          (b)  The Commission is subject to Chapters 551 and 2001,

66-12    Government Code [the open meetings law, Chapter 271, Acts of the

66-13    60th Legislature, Regular Session, 1967, as amended (Article

66-14    6252-17, Vernon's Texas Civil Statutes)].

66-15          SECTION 3.04.  Subsection (c), Section 2.08A, Texas Motor

66-16    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

66-17    Statutes), is amended to read as follows:

66-18          (c)  If the Executive Director has knowledge that a potential

66-19    ground for removal exists, the Executive Director shall notify the

66-20    Chairman of the Commission of the ground.  The Chairman shall then

66-21    notify the Governor and the Attorney General that a potential

66-22    ground for removal exists.  If the potential ground for removal

66-23    relates to the Chairman of the Commission, the Executive Director

66-24    shall notify the Vice-chairman of the Commission, who shall notify

66-25    the Governor and the Attorney General that a potential ground for

 67-1    removal exists.

 67-2          SECTION 3.05.  Subsection (e), Section 2.09, Texas Motor

 67-3    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

 67-4    Statutes), is amended to read as follows:

 67-5          (e)  The Executive Director shall appoint and employ such

 67-6    Commission staff as are necessary to carry out the duties and

 67-7    functions of the Executive Director and the Commission under this

 67-8    Act.  The Commission shall develop and implement policies that

 67-9    clearly separate the policy-making [define the respective]

67-10    responsibilities of the Commission and the management

67-11    responsibilities of the Executive Director and staff of the

67-12    Commission.

67-13          SECTION 3.06.  Subsection (b), Section 2.10, Texas Motor

67-14    Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil

67-15    Statutes), is amended to read as follows:

67-16          (b)  The Commission shall file annually with the Governor and

67-17    the presiding officer of each house of the legislature a complete

67-18    and detailed written report accounting for all funds received and

67-19    disbursed by the Commission during the preceding fiscal year.  The

67-20    annual report must comply with each reporting requirement

67-21    applicable to financial reporting [be in the form and reported in

67-22    the time] provided by the General Appropriations Act.

67-23          SECTION 3.07.  Section 2.12, Texas Motor Vehicle Commission

67-24    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

67-25    to read as follows:

 68-1          Sec. 2.12.  COMPLAINTS.  (a)  The Commission shall:

 68-2                (1)  keep an information file about each complaint

 68-3    filed with the Commission that the Commission has authority to

 68-4    resolve; and

 68-5                (2)  provide the person who filed the complaint, and

 68-6    each person or entity that is the subject of the complaint,

 68-7    information about the Commission's policies and procedures relating

 68-8    to complaint investigation and resolution.

 68-9          (b)  If a written complaint is filed with the Commission that

68-10    the Commission has authority to resolve, the Commission, at least

68-11    quarterly and until final disposition of the complaint, shall

68-12    notify the parties to the complaint of the status of the complaint

68-13    unless the notice would jeopardize an ongoing Commission

68-14    investigation.

68-15          (c)  With regard to each complaint filed with the Commission,

68-16    the Commission shall keep the following information:

68-17                (1)  the date the complaint is filed;

68-18                (2)  the name of the person filing the complaint;

68-19                (3)  the subject matter of the complaint;

68-20                (4)  a record of each person contacted in relation to

68-21    the complaint;

68-22                (5)  a summary of the results of the review or

68-23    investigation of the complaint; and

68-24                (6)  if the Commission takes no action on the

68-25    complaint, an explanation of the reasons that no action was taken.

 69-1          SECTION 3.08.  Subsections (a), (b), and (d), Section 2.13,

 69-2    Texas Motor Vehicle Commission Code (Article 4413(36), Vernon's

 69-3    Texas Civil Statutes), are amended to read as follows:

 69-4          (a)  The Executive Director or his designee shall develop an

 69-5    intraagency career ladder program that addresses opportunities for

 69-6    mobility and advancement of employees in the Commission.  The

 69-7    program shall require intraagency postings of all [nonentry level]

 69-8    positions concurrently with any public posting.

 69-9          (b)  The Executive Director or his designee shall develop a

69-10    system of annual performance evaluations that are based on

69-11    documented employee performance.  All merit pay for Commission

69-12    employees must be based on the system established under this

69-13    subsection.

69-14          (d)  The Executive Director or his designee shall prepare and

69-15    maintain a written policy statement to assure implementation of a

69-16    program of equal employment opportunity under which all personnel

69-17    transactions are made without regard to race, color, disability

69-18    [handicap], sex, religion, age, or national origin.  The policy

69-19    statement must include:

69-20                (1)  personnel policies, including policies relating to

69-21    recruitment, evaluation, selection, appointment, training, and

69-22    promotion of personnel that comply with Chapter 21, Labor Code;

69-23                (2)  a comprehensive analysis of the Commission work

69-24    force that meets federal and state laws, rules, and regulations and

69-25    instructions directly adopted under those laws, rules, or

 70-1    regulations [guidelines];

 70-2                (3)  procedures by which a determination can be made of

 70-3    significant underuse in the Commission work force of all persons

 70-4    for whom federal or state laws, rules, and regulations and

 70-5    instructions directly adopted under those laws, rules, or

 70-6    regulations, [guidelines] encourage a more equitable balance; and

 70-7                (4)  reasonable methods to appropriately address those

 70-8    areas of significant underuse.

 70-9          A policy statement prepared under this subsection must cover

70-10    an annual period, be updated at least annually, be reviewed by the

70-11    Texas Commission on Human Rights for compliance with Subdivision

70-12    (1) of this subsection, and be filed with the Governor's office.

70-13          The Governor's office shall deliver a biennial report to the

70-14    legislature based on the information received under this

70-15    subsection.  The report may be made separately or as a part of

70-16    other biennial reports made to the legislature.

70-17          SECTION 3.09.  Section 3.05, Texas Motor Vehicle Commission

70-18    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

70-19    to read as follows:

70-20          Sec. 3.05.  Investigation; enforcement. (a)  Whenever the

70-21    Board [Commission] has reason to believe, through receipt of a

70-22    complaint or otherwise, that a violation of this Act or a Board

70-23    [Commission] rule, order, or decision has occurred or is likely to

70-24    occur, the Board [Commission] shall conduct an investigation unless

70-25    it determines that a complaint is frivolous or for the purpose of

 71-1    harassment.  If the Board's [Commission's] investigation

 71-2    establishes that a violation of this Act or a Board [Commission]

 71-3    rule, order, or decision has occurred or is likely to occur, the

 71-4    Board [Commission] shall institute proceedings as it deems

 71-5    appropriate to enforce this Act or its rules, orders, and

 71-6    decisions.

 71-7          (b)  Notwithstanding Subsection (a) of this section, another

 71-8    provision of this Act, or Board rule, the Board may not file a

 71-9    complaint alleging a violation of this Act or a Board rule relating

71-10    to advertising until the Board has notified the licensee involved

71-11    of the alleged violation and given the licensee an opportunity to

71-12    cure the violation without further proceedings or liability.

71-13          SECTION 3.10.  Section 4.01B, Texas Motor Vehicle Commission

71-14    Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended

71-15    to read as follows:

71-16          Sec. 4.01B.  [NOTICE OF] LICENSE EXPIRATION.  (a)  The

71-17    Commission by rule may implement a system under which licenses

71-18    expire on various dates during the year.

71-19          (b)  The Commission shall notify each person licensed under

71-20    this Act of the date of license expiration and the amount of the

71-21    fee required for license renewal.  The notice shall be mailed at

71-22    least thirty days before the date of license expiration.

71-23          (c)  For a year in which a license expiration date is

71-24    changed, the fee for the license shall be prorated so that the

71-25    holder of the license pays only that portion of the license fee

 72-1    that is allocable to the number of months during which the license

 72-2    is valid.  On renewal of the license on the new expiration date,

 72-3    the entire license renewal fee is payable.

 72-4                        ARTICLE 4.  MOTOR CARRIERS

 72-5          SECTION 4.01.  Subsection (i), Section 3, Article 6675c,

 72-6    Revised Statutes, is amended to read as follows:

 72-7          (i)  A registration issued under this article is valid for

 72-8    one year.  The department may adopt a system under which

 72-9    registrations expire at different times during the year.  At least

72-10    30 days before the date on which a motor carrier's registration

72-11    expires, the department shall notify the carrier of the impending

72-12    expiration.  The notice must be in writing and sent to the motor

72-13    carrier's last known address according to the records of the

72-14    department.  A motor carrier may renew a registration under this

72-15    article by:

72-16                (1)  supplementing the application with any new

72-17    information required under Subsection (g) of this section;

72-18                (2)  paying a $10 fee for each vehicle requiring

72-19    registration the carrier operates; and

72-20                (3)  showing the department evidence of continuing

72-21    insurance or financial responsibility in an amount at least equal

72-22    to the amount set by the department under Section 4(a) of this

72-23    article.

72-24          SECTION 4.02.  Section 7, Article 6675c, Revised Statutes, is

72-25    amended to read as follows:

 73-1          Sec. 7.  Suspension and revocation of registration.  (a)  The

 73-2    department may suspend or revoke a registration issued under this

 73-3    article or place on probation a motor carrier whose registration is

 73-4    suspended if:

 73-5                (1)  a motor carrier fails to maintain insurance or

 73-6    proof of financial responsibility as required by Section 4(a) or

 73-7    (b) or Section 8(c)(5) of this article;

 73-8                (2)  a motor carrier fails to keep proof of insurance

 73-9    in the cab of each vehicle as required by Section 4(e) of this

73-10    article;

73-11                (3)  a motor carrier fails to register a vehicle

73-12    requiring registration; or

73-13                (4)  a motor carrier knowingly provides false

73-14    information on any form filed with the department under this

73-15    section.

73-16          (b)  The Department of Public Safety may request that the

73-17    department suspend or revoke a registration issued under this

73-18    article or place on probation a motor carrier whose registration is

73-19    suspended if a motor carrier:

73-20                (1)  has an unsatisfactory safety rating under 49

73-21    C.F.R. Part 385; or

73-22                (2)  has multiple violations of a provision of Article

73-23    6675d, Revised Statutes, a rule adopted under that article, or the

73-24    Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's

73-25    Texas Civil Statutes).

 74-1          (c)  Except as provided by Subsection (d) of this section, a

 74-2    suspension or revocation or the imposition of probation made under

 74-3    Subsection (a) or (b) of this section is a contested case under

 74-4    Chapter 2001, Government Code.

 74-5          (d)  The department may suspend or revoke a registration

 74-6    issued under this article or place on probation a motor carrier

 74-7    whose registration is suspended without a hearing under Chapter

 74-8    2001, Government Code, if:

 74-9                (1)  the department provides notice to the motor

74-10    carrier of:

74-11                      (A)  the proposed suspension or revocation; and

74-12                      (B)  the right of the carrier to request a

74-13    hearing under Chapter 2001, Government Code; and

74-14                (2)  the motor carrier fails to provide the department

74-15    with a written request for a hearing within 10 days after the date

74-16    the carrier receives the notice described in Subdivision (1) of

74-17    this subsection.

74-18          (e)  If the suspension of a motor carrier's registration is

74-19    probated, the department may require the carrier to report

74-20    regularly to the department on any matter that is the basis of the

74-21    probation.

74-22          SECTION 4.03.  Section 8, Article 6675c, Revised Statutes, is

74-23    amended by adding Subsection (h) to read as follows:

74-24          (h)  The department may not by rule restrict competitive

74-25    bidding or advertising by a motor carrier except to prohibit false,

 75-1    misleading, or deceptive practices.  A rule to prohibit false,

 75-2    misleading, or deceptive practices may not:

 75-3                (1)  restrict the use of:

 75-4                      (A)  any medium for an advertisement;

 75-5                      (B)  the motor carrier's advertisement under a

 75-6    trade name; or

 75-7                      (C)  the motor carrier's personal appearance or

 75-8    voice in an advertisement, if the motor carrier is an individual;

 75-9    or

75-10                (2)  relate to the size or duration of an advertisement

75-11    by the motor carrier.

75-12          SECTION 4.04.  Subsections (a) and (e), Section 3, Article

75-13    6675c, Revised Statutes, are amended to read as follows:

75-14          (a)  A motor carrier may not operate a commercial motor

75-15    vehicle, as defined by Section 548.001, Transportation Code, [140A,

75-16    Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's

75-17    Texas Civil Statutes),] or a tow truck on a road or highway of this

75-18    state unless the carrier registers with the department under this

75-19    article.

75-20          (e)  The department shall issue a certificate containing a

75-21    single registration number to a motor carrier, regardless of the

75-22    number of vehicles requiring registration the carrier operates.

75-23    The department shall issue a cab card as described by Section 5 of

75-24    this article for each vehicle requiring registration the motor

75-25    carrier operates.  To avoid multiple registrations of a single

 76-1    motor carrier, the department shall adopt simplified procedures for

 76-2    the registration of motor carriers transporting household goods as

 76-3    agents for carriers required to register under this article.

 76-4          SECTION 4.05.  Subsections (a), (b), and (d), Section 4,

 76-5    Article 6675c, Revised Statutes, are amended to read as follows:

 76-6          (a)  A motor carrier that is required to register under

 76-7    Section 3 of this article shall maintain liability insurance in an

 76-8    amount set by the department for each vehicle requiring

 76-9    registration the carrier operates.  The department by rule may set

76-10    the amount of liability insurance required at an amount that does

76-11    not exceed the amount required for a motor carrier under federal

76-12    regulations adopted under 49 U.S.C. Section 10927(a)(1).  In

76-13    setting the amount the department shall consider:

76-14                (1)  the class and size of the vehicle; and

76-15                (2)  the type of persons or cargo being transported.

76-16          (b)  A motor carrier required to register under Section 3 of

76-17    this article transporting household goods shall maintain cargo

76-18    insurance in the same amount required for a motor carrier

76-19    transporting household goods under federal law.

76-20          (d)  A motor carrier that is required to register under

76-21    Section 3 of this article must file with the department proof of

76-22    insurance in the amounts required by Subsections (a) and (b) of

76-23    this section, or proof of financial responsibility as described by

76-24    Subsection (c) of this section, in a form prescribed by the

76-25    department.  The form must be filed:

 77-1                (1)  at the time of the initial registration;

 77-2                (2)  at the time of a subsequent registration, if the

 77-3    motor carrier was required to be continuously registered under this

 77-4    article and the carrier failed to maintain continuous registration;

 77-5                (3)  at the time a motor carrier changes insurers; and

 77-6                (4)  at the time a motor carrier changes ownership, as

 77-7    determined by rules adopted by the department.

 77-8          SECTION 4.06.  Section 8, Article 6675c, Revised Statutes, is

 77-9    amended by amending Subsections (c) and (f) and adding Subsection

77-10    (g) to read as follows:

77-11          (c)  The department shall adopt rules to protect consumers

77-12    who use the services of a motor carrier [who is required to

77-13    register under Section 3 of this article and] who is transporting

77-14    household goods for compensation [that are at least as stringent as

77-15    the corresponding provisions of 49 C.F.R. Part 1056.  The

77-16    department may adopt rules under this subsection that are more

77-17    stringent than the corresponding federal provisions.  A motor

77-18    carrier transporting household goods shall list a place of business

77-19    with a street address in this state and the carrier's registration

77-20    number issued under this article in any print advertising published

77-21    in this state].  The department may adopt all such rules as are

77-22    necessary to ensure that customers of household goods movers are

77-23    protected from deceptive or unfair practices and unreasonably

77-24    hazardous activities on the part of the movers.  Such rules shall

77-25    [may] include but are not limited to measures to:

 78-1                (1)  establish a formal process for resolving disputes

 78-2    over fees and damages [apart from the method of mediation in

 78-3    Subsection (f) of this section];

 78-4                (2)  require a carrier to indicate clearly to consumers

 78-5    whether estimates are binding or nonbinding and disclose the

 78-6    maximum price a consumer could be required to pay; [and]

 78-7                (3)  create a centralized process for making complaints

 78-8    about a carrier which also allows consumers to inquire about a

 78-9    carrier's complaint record;

78-10                (4)  require a motor carrier transporting household

78-11    goods to list a place of business with a street address in this

78-12    state and the carrier's registration number issued under this

78-13    article in any print advertising published in this state;

78-14                (5)  require motor carriers who are required to

78-15    register under this section to file proof of cargo insurance in

78-16    amounts to be determined by the department that do not exceed the

78-17    amount required for a motor carrier transporting household goods

78-18    under federal law and shall allow alternative proof of financial

78-19    responsibility, through surety bonds, letters of credit, or other

78-20    means satisfactory to the department, for contractual obligations

78-21    to customers that do not exceed $5,000 aggregate loss or damage to

78-22    total cargo shipped at any one time;

78-23                (6)  require motor carriers who are required to

78-24    register under this section to conspicuously advise consumers

78-25    concerning limitation of any carrier liability for loss or damage

 79-1    as determined under Subdivision (7) of this subsection; and

 79-2                (7)  determine reasonable provisions governing

 79-3    limitation of liability for loss or damage of motor carriers

 79-4    required to register under this section, not to exceed 60 cents per

 79-5    pound per article.

 79-6          (f)  The department shall appoint a rules advisory committee

 79-7    consisting of representatives of motor carriers transporting

 79-8    household goods using small, medium, and large equipment, the

 79-9    public, and the department.  Members of the committee serve at the

79-10    pleasure of the department and are not entitled to compensation or

79-11    reimbursement of expenses for serving on the committee.  The

79-12    department may adopt rules to govern the operations of the advisory

79-13    committee.  The committee shall:

79-14                (1)  examine the rules adopted by the department under

79-15    Subsection (c) of this section and make recommendations to the

79-16    department on modernizing and streamlining the rules;

79-17                (2)  conduct a study of the feasibility and necessity

79-18    of requiring any vehicle liability insurance for household goods

79-19    carriers required to register under this section; and

79-20                (3)  pursuant to Subsection (c)(7) of this section,

79-21    recommend a maximum level of liability limitation that does not

79-22    exceed 60 cents per pound.  [All collective associations of motor

79-23    carriers transporting household goods, or agents thereof, which

79-24    have received approval for collective ratemaking agreements under

79-25    Section 9(d) of this article shall provide a method of mediation

 80-1    for consumers to receive resolution through mediation of disputes

 80-2    over fees, damages, and services.  All costs associated with such

 80-3    mediation shall be borne by the motor carriers, the agents thereof,

 80-4    or the association.  All carriers and agents who are parties to

 80-5    collective agreements approved under Section 9(d) of this article

 80-6    must participate in consumer complaint resolution, including

 80-7    participation in the mediation process and advertisement of the

 80-8    availability of mediation in all contracts or estimate proposals.

 80-9    Any complaint mediation that is not resolved to the mutual

80-10    agreement of all parties shall be reported to the department.

80-11    Consumers shall be advised of their rights to seek resolution

80-12    directly from the department.  The department shall adopt rules

80-13    that ensure such notification is available to consumers in a form

80-14    and manner consistent with its duties under Subsection (c) of this

80-15    section.]

80-16          (g)  The department shall require motor carriers who are not

80-17    required to register under Section 3 of this article to register

80-18    their operations before transporting household goods for

80-19    compensation.  The department shall determine the forms and

80-20    procedures for such registration.  The department shall charge a

80-21    motor carrier who registers under this subsection a fee that does

80-22    not exceed the total of the fees imposed by Section 3 of this

80-23    article.

80-24          SECTION 4.07.  Section 10, Article 6675c, Revised Statutes,

80-25    is amended to read as follows:

 81-1          Sec. 10.  Criminal penalty.  (a)  A person commits an offense

 81-2    if the person fails to:

 81-3                (1)  register as required by Section 3 or 8 of this

 81-4    article;

 81-5                (2)  maintain insurance or proof of financial

 81-6    responsibility as required by Section 4 or 8 of this article; or

 81-7                (3)  keep a cab card in the cab of a vehicle as

 81-8    required by Section 5(a) of this article.

 81-9          (b)  A person commits an offense if the person solicits the

81-10    transportation of household goods for compensation without being

81-11    registered as required by Section 3 or 8 of this article.

81-12          (c)  An offense under this section is a Class C misdemeanor.

81-13          SECTION 4.08.  Subdivision (1), Section 1, Article 6675d,

81-14    Revised Statutes, is amended to read as follows:

81-15                (1)  "Commercial motor vehicle" means a motor vehicle

81-16    described by Section 548.001(1), Transportation Code [has the

81-17    meaning assigned by Section 140A, Uniform Act Regulating Traffic on

81-18    Highways (Article 6701d, Vernon's Texas Civil Statutes)].

81-19          SECTION 4.09.  Section 5, Article 6675d, Revised Statutes, is

81-20    amended by adding Subsection (c) to read as follows:

81-21          (c)  A rule adopted by the director under this article

81-22    relating to hours of service, an operator's record of duty status,

81-23    or an operator's daily log, for operations outside a 150-mile

81-24    radius of the normal work-reporting location, also applies to and

81-25    must be complied with by a motor carrier, as defined by Section 1,

 82-1    Article 6675c, Revised Statutes, of household goods not using a

 82-2    commercial motor vehicle, as defined by Section 548.001,

 82-3    Transportation Code.

 82-4          SECTION 4.10.  The study required by Subdivision (2),

 82-5    Subsection (f), Section 8, Article 6675c, Revised Statutes, as

 82-6    added by Section 4.06 of this article, must be completed not later

 82-7    than July 1, 1998, and any resulting rules shall be made to take

 82-8    effect January 1, 1999.

 82-9          SECTION 4.11.  (a)  Chapter 1, Title 116, Revised Statutes,

82-10    is amended by adding Article 6675c-2 to read as follows:

82-11          Art. 6675c-2.  FOREIGN COMMERCIAL MOTOR TRANSPORTATION

82-12          Sec. 1.  DEFINITIONS.  In this article:

82-13                (1)  "Border" means the border between this state and

82-14    the United Mexican States.

82-15                (2)  "Commercial motor vehicle" includes a foreign

82-16    commercial motor vehicle.

82-17                (3)  "Border commercial zone" means a commercial zone

82-18    established under 49 C.F.R. Part 372, Subpart B, any portion of

82-19    which is contiguous to the border in this state.

82-20                (4)  "Foreign commercial motor vehicle" means a

82-21    commercial motor vehicle, as defined by 49 C.F.R. Section 390.5,

82-22    that is owned or controlled by a person or entity that is domiciled

82-23    in or a citizen of a country other than the United States.

82-24                (5)  "Motor carrier" includes a foreign motor carrier

82-25    and a foreign motor private carrier, as defined in 49 U.S.C.

 83-1    Sections 13102(6) and (7).

 83-2          Sec. 2.  RULES.  In addition to rules required by this

 83-3    article, the Texas Department of Transportation, the Department of

 83-4    Public Safety, and the Texas Department of Insurance may adopt

 83-5    other rules to carry out this article.

 83-6          Sec. 3.  REFERENCE TO FEDERAL STATUTE OR REGULATION.  A

 83-7    reference in this article to a federal statute or regulation

 83-8    includes any subsequent amendment or redesignation of the statute

 83-9    or regulation.

83-10          Sec. 4.  BORDER COMMERCIAL ZONE EXCLUSIVE; BOUNDARIES.

83-11    (a)  A law or agreement of less than statewide application that is

83-12    adopted by an agency or political subdivision of this state and

83-13    that regulates motor carriers or commercial motor vehicles or the

83-14    operation of those carriers or vehicles in the transportation of

83-15    cargo across the border or within an area adjacent to the border by

83-16    foreign commercial motor vehicles has no effect unless the law or

83-17    agreement applies uniformly to an entire border commercial zone and

83-18    only in a border commercial zone.  This section supersedes that

83-19    portion of any paired city, paired state, or similar understanding

83-20    governing foreign commercial motor vehicles or motor carriers

83-21    entered into under Section 502.054, Transportation Code, or any

83-22    other law.

83-23          (b)  The boundaries of a border commercial zone may be

83-24    modified or established only as provided by federal law.

83-25          Sec. 5.  REGISTRATION EXEMPTION IN BORDER COMMERCIAL ZONE.

 84-1    (a)  A foreign commercial motor vehicle is exempt from Chapter 502,

 84-2    Transportation Code, and any other law of this state requiring the

 84-3    vehicle to be registered in this state, including a law providing

 84-4    for a temporary registration permit, if:

 84-5                (1)  the vehicle is engaged solely in transportation of

 84-6    cargo across the border into or from a border commercial zone;

 84-7                (2)  for each load of cargo transported the vehicle

 84-8    remains in this state:

 84-9                      (A)  not more than 24 hours; or

84-10                      (B)  not more than 48 hours, if:

84-11                            (i)  the vehicle is unable to leave this

84-12    state within 24 hours because of circumstances beyond the control

84-13    of the motor carrier operating the vehicle; and

84-14                            (ii)  all financial responsibility

84-15    requirements applying to the vehicle are satisfied;

84-16                (3)  the vehicle is registered and licensed as required

84-17    by the law of another state or country as evidenced by a valid

84-18    metal license plate attached to the front or rear of the exterior

84-19    of the vehicle; and

84-20                (4)  the country in which the person that owns or

84-21    controls the vehicle is domiciled or is a citizen provides a

84-22    reciprocal exemption for commercial motor vehicles owned or

84-23    controlled by residents of this state.

84-24          (b)  A foreign commercial motor vehicle operating under the

84-25    exemption provided by this section and the vehicle's driver may be

 85-1    considered unregistered if the vehicle is operated in this state

 85-2    outside a border commercial zone or in violation of United States

 85-3    law.

 85-4          Sec. 6.  FINANCIAL RESPONSIBILITY.  The Texas Department of

 85-5    Transportation shall adopt rules that conform with 49 C.F.R. Part

 85-6    387 requiring motor carriers operating foreign commercial motor

 85-7    vehicles in this state to maintain financial responsibility.  This

 85-8    article prevails over any other requirement of state law relating

 85-9    to financial responsibility for operation of those vehicles in this

85-10    state.

85-11          Sec. 7.  DOMESTIC TRANSPORTATION.  A foreign motor carrier or

85-12    foreign motor private carrier may not transport persons or cargo in

85-13    intrastate commerce in this state unless the carrier is authorized

85-14    to conduct operations in interstate and foreign commerce

85-15    domestically between points in the United States under federal law

85-16    or international agreement.

85-17          (b)  Article 6675d, Revised Statutes, is amended by adding

85-18    Section 16 to read as follows:

85-19          Sec. 16.  APPLICATION TO FOREIGN COMMERCIAL MOTOR VEHICLES.

85-20    Except as otherwise provided by law, this article also applies to

85-21    all foreign commercial motor vehicles, as defined by Section 1,

85-22    Article 6675c-2, Revised Statutes.

85-23          SECTION 4.12.  (a)  Section 642.001, Transportation Code, is

85-24    amended by adding Subdivision (6) to read as follows:

85-25                (6)  "Tow truck" has the meaning assigned that term by

 86-1    Section 643.001.

 86-2          (b)  Section 642.002, Transportation Code, is amended to read

 86-3    as follows:

 86-4          Sec. 642.002.  Identifying Markings on Certain Vehicles

 86-5    Required; Offense; Penalty.  (a)  A person commits an offense if:

 86-6                (1)  the person operates on a public street, road, or

 86-7    highway:

 86-8                      (A)  a commercial motor vehicle that has three or

 86-9    more axles;

86-10                      (B)  a truck-tractor; [or]

86-11                      (C)  a road-tractor; or

86-12                      (D)  a tow truck; and

86-13                (2)  the vehicle does not have on each side of the

86-14    power unit identifying markings that:

86-15                      (A)  show the name and address, including city

86-16    and state, of the owner or operator of the vehicle; [and]

86-17                      (B)  have clearly legible letters and numbers of

86-18    a height of at least two inches; and

86-19                      (C)  show the motor carrier registration number

86-20    in clearly legible letters and numbers, if the vehicle is required

86-21    to be registered under this chapter.

86-22          (b)  The owner of a vehicle commits an offense if the owner

86-23    or operator permits another to operate a vehicle in violation of

86-24    Subsection (a).

86-25          (c)  The Texas Department of Transportation by rule may

 87-1    prescribe additional requirements regarding the form of the

 87-2    markings required by Subsection (a)(2) that are not inconsistent

 87-3    with that subsection.

 87-4          (d)  An offense under this section is a Class C misdemeanor.

 87-5                    ARTICLE 5.  SALVAGE VEHICLE DEALERS

 87-6          SECTION 5.01.  Section 1.02, Article 6687-1a, Revised

 87-7    Statutes, is amended by adding Subsection (c) to read as follows:

 87-8          (c)  The commission may not adopt a rule under this article

 87-9    that restricts competitive bidding or advertising by a person who

87-10    holds a license issued under this article other than a rule to

87-11    prohibit false, misleading, or deceptive practices.  A rule to

87-12    prohibit false, misleading, or deceptive practices may not:

87-13                (1)  restrict the use of:

87-14                      (A)  any medium for an advertisement;

87-15                      (B)  the license holder's advertisement under a

87-16    trade name; or

87-17                      (C)  the license holder's personal appearance or

87-18    voice in an advertisement, if the license holder is an individual;

87-19    or

87-20                (2)  relate to the size or duration of an advertisement

87-21    by the license holder.

87-22          SECTION 5.02.  Section 2.07, Article 6687-1a, Revised

87-23    Statutes, is amended to read as follows:

87-24          Sec. 2.07.  License Renewal.  (a)  A license issued under

87-25    this article expires on the first anniversary of the date of

 88-1    issuance and may be renewed annually on or before the expiration

 88-2    date on payment of the required renewal fee.

 88-3          (b)  A person who is otherwise eligible to renew a license

 88-4    may renew an unexpired license by paying to the department before

 88-5    the expiration date of the license the required renewal fee.  A

 88-6    person whose license has expired may not engage in the activities

 88-7    that require a license until the license has been renewed under the

 88-8    provisions of this section.

 88-9          (c)  If a person's license has been expired for 90 days or

88-10    less, the person may renew the license by paying to the department

88-11    one and one-half times the required renewal fee.

88-12          (d)  If a person's license has been expired for longer than

88-13    90 days but less than one year, the person may renew the license by

88-14    paying to the department two times the required renewal fee.

88-15          (e)  If a person's license has been expired for one year or

88-16    longer, the person may not renew the license.  The person may

88-17    obtain a new license by complying with the requirements and

88-18    procedures for obtaining an original license.  If the person was

88-19    licensed in this state, moved to another state, and has been doing

88-20    business in the other state for the two years preceding

88-21    application, the person may renew an expired license.  The person

88-22    must pay to the department a fee that is equal to two times the

88-23    required renewal fee for the license.

88-24          (f)  At least 30 days before the date on which a person's

88-25    license expires, the department shall notify the person of the

 89-1    impending expiration.  The notice must be in writing and sent to

 89-2    the person's last known address according to the records of the

 89-3    department.  [If a license holder fails to renew the license before

 89-4    its expiration date, the license holder may renew the license on

 89-5    payment of the renewal fee and a late fee set by the commission.

 89-6    If the license is not renewed before the first anniversary of the

 89-7    date on which the license expired, the license holder must apply

 89-8    for a new license in the same manner as an applicant for an initial

 89-9    license.]

89-10          SECTION 5.03.  Subsection (b), Section 4.01, Article 6687-1a,

89-11    Revised Statutes, is amended to read as follows:

89-12          (b)  The commission shall adopt rules establishing the

89-13    grounds for the denial, suspension, revocation, or reinstatement of

89-14    a license and establishing procedures for disciplinary actions.  A

89-15    rule adopted under this subsection may not conflict with a rule

89-16    adopted by the State Office of Administrative Hearings.

89-17                 ARTICLE 6.  VEHICLE STORAGE FACILITY ACT

89-18          SECTION 6.01.  Section 4, Vehicle Storage Facility Act

89-19    (Article 6687-9a, Revised Statutes), is amended by adding

89-20    Subsection (d) to read as follows:

89-21          (d)  The commission may not adopt a rule under this Act that

89-22    restricts competitive bidding or advertising by a person who holds

89-23    a license issued under this Act other than a rule to prohibit

89-24    false, misleading, or deceptive practices.  A rule to prohibit

89-25    false, misleading, or deceptive practices may not:

 90-1                (1)  restrict the use of:

 90-2                      (A)  any medium for an advertisement;

 90-3                      (B)  the license holder's advertisement under a

 90-4    trade name; or

 90-5                      (C)  the license holder's personal appearance or

 90-6    voice in an advertisement, if the license holder is an individual;

 90-7    or

 90-8                (2)  relate to the size or duration of an advertisement

 90-9    by the license holder.

90-10          SECTION 6.02.  Subsection (a), Section 9, Vehicle Storage

90-11    Facility Act (Article 6687-9a, Revised Statutes), is amended to

90-12    read as follows:

90-13          (a)  A license issued under this article is valid for the

90-14    period set by the commission.  At least 30 days before the date on

90-15    which a person's license expires, the commission shall notify the

90-16    person of the impending expiration.  The notice must be in writing

90-17    and sent to the person's last known address according to the

90-18    records of the commission.

90-19          SECTION 6.03.  Section 10, Vehicle Storage Facility Act

90-20    (Article 6687-9a, Revised Statutes), is amended by adding

90-21    Subsections (e) and (f) to read as follows:

90-22          (e)  If the commission places a person on probation under

90-23    this section, the commission may require the person to report

90-24    regularly to the commission on any matter that is the basis of the

90-25    probation.

 91-1          (f)  If the commission proposes to take an action under

 91-2    Subsection (a) or (b) of this section, the person is entitled to a

 91-3    hearing conducted by the State Office of Administrative Hearings.

 91-4    Proceedings for a disciplinary action are governed by the

 91-5    administrative procedure law, Chapter 2001, Government Code.  Rules

 91-6    of practice adopted by the commission under Section 2001.004,

 91-7    Government Code, applicable to the proceedings for a disciplinary

 91-8    action may not conflict with rules adopted by the State Office of

 91-9    Administrative Hearings.

91-10                           ARTICLE 7.  TURNPIKES

91-11          SECTION 7.01.  Chapter 222, Transportation Code, is amended

91-12    by adding Subchapter E to read as follows:

91-13                      SUBCHAPTER E.  TOLL FACILITIES

91-14          Sec. 222.101.  EXPENDITURE OF MONEY.  The department may

91-15    spend money from any source for the construction, maintenance, and

91-16    operation of toll facilities.

91-17          Sec. 222.102.  TEMPORARY TOLL PROJECTS.  The department may

91-18    recover the cost of a preventative maintenance or rehabilitation

91-19    project on a nontoll segment of the state highway system by

91-20    temporarily imposing a toll charge after notice and a public

91-21    hearing.

91-22          Sec. 222.103.  COST PARTICIPATION.  (a)  The department may

91-23    participate in the cost of the construction, maintenance, or

91-24    operation of a toll facility of a public or private entity on terms

91-25    and conditions established by the commission, including

 92-1    requirements for repayment.

 92-2          (b)  An entity receiving cost participation from the

 92-3    department under this section is a successor agency to the Texas

 92-4    Turnpike Authority for the purposes of Section 52-b, Article III,

 92-5    Texas Constitution.

 92-6          (c)  On the request of a member of the legislature, the

 92-7    department shall provide the member a status report on all highway

 92-8    construction projects, by legislative district, that are under

 92-9    contract or awaiting funding.  The report shall include projects

92-10    that would be funded in any manner by state, federal, or toll

92-11    funds.

92-12          (d)  On the request of a member of the legislature, not later

92-13    than the 90th day before the date a loan is granted by the

92-14    department for a project under this section, the department shall

92-15    notify each member of the legislature that represents any part of

92-16    the area affected by the project of the status of the project and

92-17    how any other project in any other district would be affected.

92-18          SECTION 7.02.  Section 362.055, Transportation Code, is

92-19    amended to read as follows:

92-20          Sec. 362.055.  EXCEPTION.  This subchapter does not apply to:

92-21                (1)  a county that has a population of more than 1.5

92-22    million; [or]

92-23                (2)  a local government corporation created under

92-24    Chapter 431 by a county that has a population of more than 1.5

92-25    million; or

 93-1                (3)  a regional tollway authority created under Chapter

 93-2    366.

 93-3          SECTION 7.03.  Section 361.001, Transportation Code, is

 93-4    amended to read as follows:

 93-5          Sec. 361.001.  DEFINITIONS.  In this chapter:

 93-6                (1)  "Authority" means the Texas Turnpike Authority

 93-7    division of the Texas Department of Transportation [and includes

 93-8    the entity that succeeds to the principal functions of the

 93-9    authority or to whom by law the powers of the authority are given].

93-10                (2)  "Board" means the board of directors of the

93-11    authority.

93-12                (3)  ["Highway" means a road, highway, farm-to-market

93-13    road, or street under the supervision of the state or a political

93-14    subdivision of the state.]

93-15                [(4)]  "Owner" includes a person having title to or an

93-16    interest in any property, rights, easements, and interests

93-17    authorized to be acquired under this chapter.

93-18                (4) [(5)]  "Turnpike project" means a toll [an express]

93-19    highway constructed, maintained, or operated under this chapter as

93-20    part of the state highway system and any improvement, extension, or

93-21    expansion to the highway and includes:

93-22                      (A)  a facility to relieve traffic congestion and

93-23    promote safety;

93-24                      (B)  a bridge, tunnel, overpass, underpass,

93-25    interchange, entrance plaza, approach, toll house, or service

 94-1    station;

 94-2                      (C)  an administration, storage, or other

 94-3    building the authority considers necessary to operate the project;

 94-4    and

 94-5                      (D)  property rights, easements, and interests

 94-6    the authority acquires to construct or operate the project.

 94-7                (5)  "Regional tollway authority" means a regional

 94-8    tollway authority created under Chapter 366.

 94-9          SECTION 7.04.  Section 361.031, Transportation Code, is

94-10    amended to read as follows:

94-11          Sec. 361.031.  TEXAS TURNPIKE AUTHORITY.  (a)  The Texas

94-12    Turnpike Authority is a division of the Texas Department of

94-13    Transportation that has full authority to exercise all powers

94-14    granted to it under this chapter.  Powers granted to the department

94-15    under this chapter and Chapter 362 to study, design, construct,

94-16    operate, expand, enlarge, or extend a turnpike project as a part of

94-17    the state highway system shall be exercised by the department

94-18    acting by and through the authority [state agency].

94-19          (b)  The authority may perform, procure from other divisions

94-20    of the department with the consent of the department, or procure

94-21    from outside service providers any portion of the services the

94-22    authority requires for:

94-23                (1)  right-of-way acquisition;

94-24                (2)  roadway finance, design, and construction;

94-25                (3)  environmental affairs; or

 95-1                (4)  legal services.

 95-2          (c)  With the approval of the commission, the authority may

 95-3    perform, procure from other divisions of the department with the

 95-4    consent of the department, or procure from outside service

 95-5    providers any portion of the services the authority requires for

 95-6    roadway maintenance, toll revenue collection, or traffic

 95-7    operations.

 95-8          (d)  To perform its functions under this chapter, the

 95-9    authority may use the facilities and personnel of the department in

95-10    the same manner as other divisions of the department.

95-11          (e)  If the comptroller assigns numbers to state agencies for

95-12    accounting purposes, the comptroller shall assign a separate agency

95-13    number to the authority [The authority shall locate offices in

95-14    Austin, Texas, on or before September 1, 1997].

95-15          (f) [(c)]  The exercise by the authority of the powers

95-16    conferred by this chapter in the construction, operation, and

95-17    maintenance of a turnpike project is:

95-18                (1)  in all respects for the benefit of the people of

95-19    this state, for the increase of their commerce and prosperity, and

95-20    for the improvement of their health and living conditions and

95-21    public safety; and

95-22                (2)  an essential governmental function of the state.

95-23          (g)  The commission shall employ a director of the authority

95-24    who serves as the authority's chief administrative officer.  The

95-25    director serves at the pleasure of the commission.

 96-1          SECTION 7.05.  Subsection (a), Section 361.032,

 96-2    Transportation Code, is amended to read as follows:

 96-3          (a)  The board is composed of seven [12] directors.  The

 96-4    governor, with the advice and consent of the senate, shall appoint

 96-5    six [nine] directors who represent the public.  The chair of the

 96-6    [Each] commission or a member of the commission designated by the

 96-7    chair serves as an ex officio board member.

 96-8          SECTION 7.06.  Subsection (a), Section 361.033,

 96-9    Transportation Code, is amended to read as follows:

96-10          (a)  A person is not eligible for appointment to the board if

96-11    the person or the person's spouse:

96-12                (1)  is registered, certified, or licensed by an

96-13    occupational regulatory agency in the field of toll road

96-14    construction, maintenance, or operation;

96-15                (2)  is employed by or participates in the management

96-16    of a business entity or other organization regulated by the

96-17    commission, department, or authority or receiving funds from the

96-18    commission, department, or authority;

96-19                (3)  owns or controls, directly or indirectly, more

96-20    than a 10 percent interest in a business entity or other

96-21    organization regulated by or receiving funds from the commission,

96-22    department, or authority[, other than compensation for acquisition

96-23    of turnpike right-of-way]; or

96-24                (4)  uses or receives a substantial amount of tangible

96-25    goods, services, or funds from the commission, department, or

 97-1    authority, other than compensation or reimbursement authorized by

 97-2    law for board membership, attendance, or expenses or compensation

 97-3    for acquisition of turnpike right-of-way.

 97-4          SECTION 7.07.  Subchapter B, Chapter 361, Transportation

 97-5    Code, is amended by adding Section 361.0335 to read as follows:

 97-6          Sec. 361.0335.  TRAINING FOR BOARD MEMBERS.  (a)  To be

 97-7    eligible to take office as a member of the board, a person

 97-8    appointed to the board must complete at least one course of a

 97-9    training program that complies with this section.

97-10          (b)  A training program must provide information to the

97-11    person regarding:

97-12                (1)  this chapter;

97-13                (2)  the programs operated by the board;

97-14                (3)  the role and functions of the board;

97-15                (4)  the rules of the board;

97-16                (5)  the current budget for the board;

97-17                (6)  the results of the most recent formal audit of the

97-18    board;

97-19                (7)  the requirements of the:

97-20                      (A)  open meetings law, Chapter 551, Government

97-21    Code;

97-22                      (B)  open records law, Chapter 552, Government

97-23    Code; and

97-24                      (C)  administrative procedure law, Chapter 2001,

97-25    Government Code;

 98-1                (8)  the requirements of the conflict of interest laws

 98-2    and other laws relating to public officials; and

 98-3                (9)  any applicable ethics policies adopted by the

 98-4    board or the Texas Ethics Commission.

 98-5          (c)  A person appointed to the board is entitled to

 98-6    reimbursement for travel expenses incurred in attending the

 98-7    training program, as provided by the General Appropriations Act and

 98-8    as if the person were a member of the board.

 98-9          SECTION 7.08.  Section 361.042, Transportation Code, is

98-10    amended to read as follows:

98-11          Sec. 361.042.  GENERAL POWERS AND DUTIES.  (a)  The board

98-12    [authority] shall:

98-13                (1)  on its own initiative or at the request of the

98-14    commission, consider, study, plan, and develop turnpike projects

98-15    under this chapter;

98-16                (2)  adopt rules [bylaws] for the regulation of its

98-17    affairs and the conduct of its business; and

98-18                (3)  undertake such other duties as are delegated to it

98-19    by the commission.

98-20          (b)  The authority may:

98-21                (1) [(2)  adopt an official seal;]

98-22                [(3)]  construct, maintain, repair, and operate

98-23    turnpike projects in this state;

98-24                (2) [(4)]  acquire, hold, and dispose of property in

98-25    the exercise of its powers and the performance of its duties under

 99-1    this chapter;

 99-2                (3)  with the approval of the governor and the

 99-3    commission, [(5)] enter into contracts or operating agreements with

 99-4    similar authorities or agencies of another state, including a state

 99-5    of the United Mexican States;

 99-6                (4) [(6)]  enter into contracts or agreements necessary

 99-7    or incidental to its duties and powers under this chapter;

 99-8                (5) [(7)]  employ consulting engineers, [attorneys,]

 99-9    accountants, construction and financial experts, superintendents,

99-10    managers, and other employees and agents the authority considers

99-11    necessary and set their compensation;

99-12                (6)  employ attorneys to advance or defend legal

99-13    actions pertaining to the division's activities, notwithstanding

99-14    any other law to the contrary, including Section 402.0212,

99-15    Government Code;

99-16                (7) [(8)]  receive grants for the construction of a

99-17    turnpike project and receive contributions of money, property,

99-18    labor, or other things of value from any source to be used for the

99-19    purposes for which the grants or contributions are made;

99-20                (8) [(9)]  adopt and enforce rules, if the commission

99-21    concurs, not inconsistent with this chapter for the use of any

99-22    turnpike project; and

99-23                (9) [(10)]  do all things necessary or appropriate to

99-24    carry out the powers expressly granted by this chapter.

99-25          SECTION 7.09.  Section 361.055, Transportation Code, is

 100-1   amended to read as follows:

 100-2         Sec. 361.055.  SUCCESSOR AGENCY TO AUTHORITY.  The following

 100-3   are considered successor agencies to the Texas Turnpike Authority

 100-4   [authority] for purposes of Section 52-b, Article III, Texas

 100-5   Constitution:

 100-6               (1)  a county, municipality, or local government

 100-7   corporation that leases, buys, operates, or otherwise receives a

 100-8   turnpike project under Subchapter H;

 100-9               (2)  a county with a population of more than 1.5

100-10   million that constructs a toll road, toll bridge, or turnpike

100-11   project;

100-12               (3)  a local government corporation serving a county

100-13   with a population of more than 1.5 million that constructs a toll

100-14   road, toll bridge, or turnpike project; [and]

100-15               (4)  an adjacent county in a joint turnpike authority

100-16   with a county with a population of more than 1.5 million that

100-17   constructs a toll road, toll bridge, or turnpike project;

100-18               (5)  the department;

100-19               (6)  a public entity authorized to receive funds from

100-20   the department for the construction, maintenance, or operation of

100-21   toll projects; and

100-22               (7)  a private entity authorized to receive funds from

100-23   the department for the construction, maintenance, or operation of

100-24   toll projects if the department determines that the use of the

100-25   private entity fills a demonstrated public need.

 101-1         SECTION 7.10.  Section 361.132, Transportation Code, is

 101-2   amended to read as follows:

 101-3         Sec. 361.132.  ACQUISITION OF PROPERTY.  (a)  The board

 101-4   [authority] may acquire, in the name of the state, [authority]

 101-5   public or private real property it determines necessary or

 101-6   convenient for the construction, expansion, enlargement, extension,

 101-7   improvement, or operation of a turnpike project or for otherwise

 101-8   carrying out this chapter.

 101-9         (b)  The real property the authority may acquire under this

101-10   subchapter includes:

101-11               (1)  public parks, playgrounds, or reservations;

101-12               (2)  parts of or rights in public parks, playgrounds,

101-13   or reservations;

101-14               (3)  rights-of-way;

101-15               (4)  property rights, including:

101-16                     (A)  a right of ingress or egress; and

101-17                     (B)  a reservation right in real property that

101-18   restricts or prohibits for not more than seven years the:

101-19                           (i)  addition of a new improvement on the

101-20   real property;

101-21                           (ii)  addition to or modification of an

101-22   existing improvement on the real property; or

101-23                           (iii)  subdivision of the real property;

101-24               (5)  franchises;

101-25               (6)  easements; and

 102-1               (7)  other interests in real property.

 102-2         (c)  The board [authority] may acquire the real property by

 102-3   any method, including purchase and condemnation.  The board

 102-4   [authority] may purchase public or private real property on the

 102-5   terms and at the price the board [authority] and the owner consider

 102-6   reasonable.

 102-7         (d)  Property necessary or convenient for the construction or

 102-8   operation of a turnpike project under Subsection (a) includes an

 102-9   interest in real property, a property right, or materials that the

102-10   authority determines are necessary or convenient to:

102-11               (1)  protect a turnpike project;

102-12               (2)  drain a turnpike project;

102-13               (3)  divert a stream, river, or other watercourse from

102-14   the right-of-way of a turnpike project;

102-15               (4)  store materials or equipment used in the

102-16   construction or maintenance of a turnpike project;

102-17               (5)  construct or operate a warehouse or other facility

102-18   used in connection with the construction, maintenance, or operation

102-19   of a turnpike project;

102-20               (6)  lay out, construct, or maintain a roadside park;

102-21               (7)  lay out, construct, or maintain a parking lot that

102-22   will contribute to the maximum use of a turnpike project with the

102-23   least possible congestion;

102-24               (8)  mitigate an adverse environmental effect that

102-25   directly results from the construction or maintenance of a turnpike

 103-1   project; or

 103-2               (9)  accomplish any other purpose related to the

 103-3   location, construction, improvement, maintenance, beautification,

 103-4   preservation, or operation of a turnpike project.

 103-5         (e)  The authority shall comply with all relocation

 103-6   assistance procedures applicable to the department in connection

 103-7   with any displacement of owners or tenants as a consequence of the

 103-8   authority's acquisition of real property under this chapter.

 103-9         (f)  The authority may acquire timber, earth, stone, gravel,

103-10   or other materials as necessary to carry out a purpose under this

103-11   chapter.

103-12         SECTION 7.11.  Section 361.135, Transportation Code, is

103-13   amended to read as follows:

103-14         Sec. 361.135.  CONDEMNATION OF REAL PROPERTY.  (a)  The

103-15   board, with the concurrence of the commission, [authority] may

103-16   acquire public or private real property in the name of the state

103-17   [authority] by the exercise of the power of condemnation under the

103-18   laws applicable to the exercise of that power on property for

103-19   public use if:

103-20               (1)  the authority and the owner cannot agree on a

103-21   reasonable price for the property; or

103-22               (2)  the owner is legally incapacitated, absent,

103-23   unknown, or unable to convey title.

103-24         (b)  The board, with the concurrence of the commission, [To

103-25   the extent provided by Subsection (c), the authority] may condemn

 104-1   real property that the authority determines is:

 104-2               (1)  necessary or appropriate to construct or to

 104-3   efficiently operate a turnpike project;

 104-4               (2)  necessary to restore public or private property

 104-5   damaged or destroyed; [or]

 104-6               (3)  necessary for access, approach, and interchange

 104-7   roads; or

 104-8               (4)  necessary otherwise to carry out this chapter.

 104-9         (c)  [The authority may condemn real property necessary for

104-10   access, approach, and interchange roads but may not condemn

104-11   property:]

104-12               [(1)  that is unnecessary for road and right-of-way

104-13   purposes; or]

104-14               [(2)  that is for a supplemental facility for another

104-15   purpose.]

104-16         [(d)]  The authority may construct a supplemental facility

104-17   only on real property the authority purchases.

104-18         (d) [(e)]  The court having jurisdiction of a condemnation

104-19   proceeding may:

104-20               (1)  make orders as are just to the authority and the

104-21   owners of the real property; and

104-22               (2)  require an undertaking or other security to secure

104-23   the owners against any loss or damage by reason of the board's

104-24   [authority's] failure to accept and pay for the real property.

104-25         (e) [(f)]  An undertaking or security under Subsection (d)(2)

 105-1   [(e)(2)] or an act or obligation of the authority or the board does

 105-2   not impose any liability on the state, [or] the authority, or the

 105-3   board except liability that may be paid from the money authorized

 105-4   by this chapter.

 105-5         SECTION 7.12.  Section 361.136, Transportation Code, is

 105-6   amended to read as follows:

 105-7         Sec. 361.136.  SEVERANCE OF REAL PROPERTY.  (a)  If a

 105-8   turnpike project severs an owner's real property, the authority

 105-9   shall pay:

105-10               (1)  the value of the property acquired; and

105-11               (2)  the damages to the remainder of the owner's

105-12   property caused by the severance, including damages caused by the

105-13   inaccessibility of one tract from the other.

105-14         (b)  [The authority shall provide and maintain without charge

105-15   a passageway over or under the turnpike project for the owner of

105-16   the severed real property and the owner's employees and

105-17   representatives.  The authority is not required to furnish a

105-18   passageway if the owner waives the requirement or the original

105-19   tract involved is less than 80 acres.]

105-20         [(c)]  The authority may negotiate for and purchase the

105-21   severed real property or either part of the severed real property

105-22   if the authority and the owner agree on terms for the purchase.

105-23   [The authority shall sell and dispose of severed real property

105-24   within two years after the date of acquisition.]

105-25         SECTION 7.13.  Subchapter D, Chapter 361, Transportation

 106-1   Code, is amended by adding Section 361.142 to read as follows:

 106-2         Sec. 361.142.  COVENANTS, CONDITIONS, RESTRICTIONS, OR

 106-3   LIMITATIONS.  Covenants, conditions, restrictions, or limitations

 106-4   affecting property acquired in any manner by the authority are not

 106-5   binding against the authority and do not impair the authority's

 106-6   ability to use the property for a purpose authorized by this

 106-7   chapter.  The beneficiaries of the covenants, conditions,

 106-8   restrictions, or limitations are not entitled to enjoin the

 106-9   authority from using the property for a purpose authorized under

106-10   this chapter, but this section does not affect the right of a

106-11   person to seek damages to the person's property under Section 17,

106-12   Article I, Texas Constitution.

106-13         SECTION 7.14.  Section 361.180, Transportation Code, is

106-14   amended to read as follows:

106-15         Sec. 361.180.  TOLLS ON CONVERTED HIGHWAYS [PROHIBITION ON

106-16   TOLLS ON EXISTING FREE HIGHWAYS].  If converted to a toll facility

106-17   under Section 222.102 or 362.0041, the commission [The authority]

106-18   may impose a toll for transit over an existing free public highway

106-19   [only if such highway is transferred to the authority by the

106-20   commission under Section 362.0041].

106-21         SECTION 7.15.  Subsection (b), Section 361.184,

106-22   Transportation Code, is amended to read as follows:

106-23         (b)  The board [authority] may transfer, or direct the

106-24   authority to transfer, into the project revolving fund money from

106-25   any permissible source, including:

 107-1               (1)  money from a surplus fund established for a

 107-2   turnpike project if the remainder of the surplus fund is not less

 107-3   than any minimum amount required by the trust agreement to be

 107-4   retained for that project;

 107-5               (2)  money received under Subchapter I or from a

 107-6   transfer of a turnpike project under Subchapter H;

 107-7               (3)  advances from the state highway fund if the

 107-8   advances are repaid as required by [department authorized under]

 107-9   Section 52-b, Article III, Texas Constitution; and

107-10               (4)  contributions or assistance from the United

107-11   States, another state, a political subdivision of this state, the

107-12   United Mexican States, or a political subdivision of the United

107-13   Mexican States.

107-14         SECTION 7.16.  Section 361.189, Transportation Code, is

107-15   amended to read as follows:

107-16         Sec. 361.189.  USE OF SURPLUS REVENUE.  [(a)]  The commission

107-17   [board] by resolution may authorize the use of surplus revenue of a

107-18   turnpike project to pay the costs of another turnpike project,

107-19   other than a project financed under Subchapter I, or a toll-free

107-20   project.  The commission [board] may in the resolution prescribe

107-21   terms for the use of the revenue, including the pledge of the

107-22   revenue, but may not take an action under this section that[:]

107-23               [(1)  violates Subsection (b); or]

107-24               [(2)]  violates, impairs, or is inconsistent with a

107-25   bond resolution, trust agreement, or indenture governing the use of

 108-1   the surplus revenue.

 108-2         [(b)  Except as provided by Subsection (c), the surplus

 108-3   revenue of a turnpike project that was under construction or

 108-4   operated by the authority on January 1, 1993, may be used only for:]

 108-5               [(1)  the costs associated with the construction,

 108-6   expansion, or maintenance of the project producing the revenue; and]

 108-7               [(2)  transfers to the Texas Turnpike Authority

 108-8   feasibility study fund.]

 108-9         [(c)  The board may use revenue from a turnpike project

108-10   described by Subsection (b) for a purpose authorized by this

108-11   chapter other than a purpose described by that subsection if:]

108-12               [(1)  the authority obtains the permission of the

108-13   commissioners court of each county in which the project is located;

108-14   or]

108-15               [(2)  an agreement between the authority and a county

108-16   or local government corporation created by the county for the

108-17   lease, sale, or other conveyance of the project permits the revenue

108-18   to be used for another purpose.]

108-19         SECTION 7.17.  Section 361.232, Transportation Code, is

108-20   amended by adding Subsection (e) to read as follows:

108-21         (e)  This section does not apply to the conversion of any

108-22   highway that is a part of the state highway system to a turnpike

108-23   project.

108-24         SECTION 7.18.  Section 361.237, Transportation Code, is

108-25   amended to read as follows:

 109-1         Sec. 361.237.  OPERATION OF TURNPIKE PROJECT.  A turnpike

 109-2   project is a public road subject to all laws applicable to the

 109-3   regulation and control of traffic.  [(a)  The authority shall

 109-4   police and operate a turnpike project through a force of police,

 109-5   toll-takers, and other employees of the authority.]

 109-6         [(b)  The authority may arrange with the Department of Public

 109-7   Safety for the services of officers of that agency.]

 109-8         SECTION 7.19.  Section 361.238, Transportation Code, is

 109-9   amended to read as follows:

109-10         Sec. 361.238.  PAYMENT OF BOND INDEBTEDNESS; CESSATION OR

109-11   CONTINUATION OF TOLLS[; TRANSFER OF PROJECT TO COMMISSION].

109-12   (a)  Except as provided by Subsection (b), a [A] turnpike project

109-13   [that is in good condition and repair to the satisfaction of the

109-14   commission] becomes a toll-free [part of the state] highway

109-15   [system] when:

109-16               (1)  the bonds issued under this chapter for the

109-17   project and the interest on the bonds are paid; or

109-18               (2)  firm banking and financial arrangements have been

109-19   made for the discharge and final payment or redemption of the bonds

109-20   in accordance with Section 7A, Chapter 503, Acts of the 54th

109-21   Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes) [a

109-22   sufficient amount to pay the bonds and the interest on the bonds to

109-23   maturity or to redeem the bonds has been set aside in trust for the

109-24   benefit of the bondholders].

109-25         (b)  If the conditions of Subsections (a)(1) and (2) are met,

 110-1   the commission may continue to charge a toll sufficient to pay the

 110-2   costs of maintaining the facility.  [The authority shall continue

 110-3   to operate as a toll facility a turnpike project that the

 110-4   commission determines is not in a state of repair so as to justify

 110-5   its acceptance as part of the state highway system.  The authority

 110-6   shall continue the tolls then in effect or revise the tolls to

 110-7   provide money sufficient to assure payment of the expenses of

 110-8   maintenance and operation and the making of repairs and

 110-9   replacements as necessary to meet the minimum requirements of the

110-10   commission within the shortest practicable time.]

110-11         (c)  The following entities shall consider offering motor

110-12   vehicle operators the option of using a transponder to pay tolls

110-13   without stopping, to mitigate congestion at toll locations, to

110-14   enhance traffic flow, and to otherwise increase the efficiency of

110-15   operations:

110-16               (1)  the authority;

110-17               (2)  an entity to which a project authorized by this

110-18   chapter is transferred; or

110-19               (3)  a third party service provider under contract with

110-20   an entity described by Subdivision (1) or (2) [commission shall

110-21   maintain a turnpike project it accepts free of tolls.  The

110-22   authority shall deliver to the commission at the time of acceptance

110-23   any money remaining to the credit of the project after retirement

110-24   of the bonds issued for the project.  The commission shall deposit

110-25   the money in a fund to be used to maintain the project facilities.

 111-1   The commission shall administer the fund in accordance with

 111-2   commission rules.]

 111-3         [(d)  Not later than the first anniversary of the date the

 111-4   commission accepts a turnpike project, the department shall

 111-5   advertise for public sale each installation on the project other

 111-6   than the road bed and highway sections and shall solicit sealed

 111-7   bids for those installations.  The department may reject any or all

 111-8   bids but shall dispose of the properties not later than the second

 111-9   anniversary of the date the commission accepts title to the

111-10   project].

111-11         SECTION 7.20.  The heading of Subchapter H, Chapter 361,

111-12   Transportation Code, is amended to read as follows:

111-13             SUBCHAPTER H.  TRANSFER OF TURNPIKE PROJECT TO

111-14          COUNTY, MUNICIPALITY, REGIONAL TOLLWAY AUTHORITY, OR

111-15                      LOCAL GOVERNMENT CORPORATION

111-16         SECTION 7.21.  Sections 361.281, 361.282, and 361.285,

111-17   Transportation Code, are amended to read as follows:

111-18         Sec. 361.281.  APPLICABILITY OF SUBCHAPTER.  This subchapter

111-19   applies only to:

111-20               (1)  a county with a population of more than 1.5

111-21   million;

111-22               (2)  a local government corporation serving a county

111-23   with a population of more than 1.5 million; [or]

111-24               (3)  an adjacent county in a joint turnpike authority

111-25   with a county with a population of more than 1.5 million;

 112-1               (4)  a municipality with a population of more than

 112-2   120,000 that is adjacent to the United Mexican States; or

 112-3               (5)  a regional tollway authority created under Chapter

 112-4   366.

 112-5         Sec. 361.282.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

 112-6   PROJECT.  (a)  The authority may lease, sell, or convey in another

 112-7   manner a turnpike project to a county, municipality, regional

 112-8   tollway authority, or a local government corporation created under

 112-9   Chapter 431.

112-10         (b)  The authority, the commission, and the governor must

112-11   approve the transfer of the turnpike project as being in the best

112-12   interests of the state and the entity receiving the turnpike

112-13   project [county].

112-14         Sec. 361.285.  APPROVAL OF AGREEMENT BY ATTORNEY GENERAL.

112-15   (a)  An agreement for the lease, sale, or conveyance of a turnpike

112-16   project under this subchapter shall be submitted to the attorney

112-17   general for approval as part of the records of proceedings relating

112-18   to the issuance of bonds of the county, municipality, regional

112-19   tollway authority, or local government corporation.

112-20         (b)  If the attorney general determines that the agreement is

112-21   in accordance with law, the attorney general shall approve the

112-22   agreement and deliver to the commission a copy of the legal opinion

112-23   of the attorney general stating that approval.

112-24         SECTION 7.22.  Subsection (a), Section 361.331,

112-25   Transportation Code, is amended to read as follows:

 113-1         (a)  The authority may designate two or more turnpike

 113-2   projects that are wholly or partly located in a metropolitan

 113-3   planning organization [planning region of a council of governments]

 113-4   as a pooled turnpike project after:

 113-5               (1)  conducting a public hearing in each affected

 113-6   county; and

 113-7               (2)  obtaining the approval of the commission[; and]

 113-8               [(3)  obtaining a resolution adopted by the

 113-9   commissioners court of the county that:]

113-10                     [(A)  approves the action; and]

113-11                     [(B)  specifies the date the pooled project

113-12   becomes toll free].

113-13         SECTION 7.23.  Section 362.0041, Transportation Code, is

113-14   amended to read as follows:

113-15         Sec. 362.0041.  CONVERSION [ACQUISITION] OF PROJECTS.

113-16   (a)  If the commission finds that the conversion of a segment of

113-17   the free state highway system to a toll facility is the most

113-18   feasible and economic means to accomplish necessary expansion

113-19   improvements, or extensions to the state highway system, that

113-20   segment may[, on approval of the governor,] be converted

113-21   [transferred] by order of the commission to [the authority.  The

113-22   authority may receive such segment of highway, thereafter to be

113-23   owned, operated, and maintained as] a turnpike project under

113-24   Chapter 361.

113-25         (b)  [The authority shall reimburse the commission for the

 114-1   cost of the transferred highway, unless the commission finds that

 114-2   the transfer will result in substantial net benefits to the state,

 114-3   the department, and the traveling public that exceed that cost.

 114-4   The cost shall include the total dollar amount expended by the

 114-5   department for the original construction of the highway, including

 114-6   all costs associated with the preliminary engineering and design

 114-7   engineering for plans, specifications, and estimates, the

 114-8   acquisition of necessary right-of-way, and actual construction of

 114-9   the highway and all necessary appurtenant facilities.]

114-10         [(c)  The commission shall, coincident with the transfer,

114-11   remove the segment of highway from the designated state highway

114-12   system and shall subsequently have no liability, responsibility, or

114-13   duty for the maintenance or operation of the highway.]

114-14         [(d)]  Prior to converting [transferring] a segment of the

114-15   state highway system under this section, the commission shall

114-16   conduct a public hearing for the purpose of receiving comments from

114-17   interested persons concerning the proposed transfer.  Notice of the

114-18   hearing shall be published in the Texas Register, one or more

114-19   newspapers of general circulation, and a newspaper, if any,

114-20   published in the county or counties in which the involved highway

114-21   is located.

114-22         (c) [(e)]  The commission shall adopt rules implementing this

114-23   section, such rules to include criteria and guidelines for the

114-24   approval of a conversion [transfer] of a highway.

114-25         SECTION 7.24.  Subtitle G, Title 6, Transportation Code, is

 115-1   amended by adding Chapter 366 to read as follows:

 115-2               CHAPTER 366.  REGIONAL TOLLWAY AUTHORITIES

 115-3                    SUBCHAPTER A.  GENERAL PROVISIONS

 115-4         Sec. 366.001.  SHORT TITLE.  This chapter may be cited as the

 115-5   Regional Tollway Authority Act.

 115-6         Sec. 366.002.  PURPOSES; LIBERAL CONSTRUCTION.  (a)  The

 115-7   purposes of this chapter are:

 115-8               (1)  the expansion and improvement of transportation

 115-9   facilities and systems in this state;

115-10               (2)  the creation of regional tollway authorities to

115-11   secure and acquire rights-of-way for urgently needed transportation

115-12   systems and to plan, design, construct, operate, expand, extend,

115-13   and modify those systems; and

115-14               (3)  the reduction of burdens and demands on the

115-15   limited money available to the commission and an increase in the

115-16   effectiveness and efficiency of the commission.

115-17         (b)  This chapter shall be liberally construed to effect its

115-18   purposes.

115-19         Sec. 366.003.  DEFINITIONS.  In this chapter:

115-20               (1)  "Authority" means a regional tollway authority

115-21   organized under this chapter.

115-22               (2)  "Board" means the board of directors of an

115-23   authority organized under this chapter.

115-24               (3)  "Bond" means all bonds, certificates, notes, and

115-25   other obligations of an authority authorized by this chapter, any

 116-1   other statute, or the Texas Constitution.

 116-2               (4)  "Bond proceedings" means a bond resolution and any

 116-3   bond indenture authorized by the bond resolution, any credit

 116-4   agreement entered into in connection with the bonds or the payments

 116-5   to be made under the agreement, and any other agreement between an

 116-6   authority and another person providing security for the payment of

 116-7   bonds.

 116-8               (5)  "Bond resolution" means an order or resolution of

 116-9   an authority's board authorizing the issuance of bonds.

116-10               (6)  "Bondholder" means the owner of bonds and includes

116-11   a trustee acting on behalf of an owner of bonds under the terms of

116-12   a bond indenture.

116-13               (7)  "Highway" means a road, highway, farm-to-market

116-14   road, or street under the supervision of the state or a political

116-15   subdivision of the state.

116-16               (8)  "Local governmental entity" means a political

116-17   subdivision of the state, including a municipality or a county, a

116-18   political subdivision of a county, a group of adjoining counties, a

116-19   district organized or operating under Section 52, Article III, or

116-20   Section 59, Article XVI, Texas Constitution, or a nonprofit

116-21   corporation, including a transportation corporation created under

116-22   Chapter 431.

116-23               (9)  "Revenue" means the tolls, rents, and other money

116-24   received by an authority from the ownership or operation of a

116-25   turnpike project.

 117-1               (10)  "System" means a turnpike project or any

 117-2   combination of turnpike projects designated as a system by the

 117-3   board under Section 366.034.

 117-4               (11)  "Turnpike project" means a highway of any number

 117-5   of lanes, with or without grade separations, owned or operated by

 117-6   an authority under this chapter and any improvement, extension, or

 117-7   expansion to that highway, including:

 117-8                     (A)  an improvement to relieve traffic congestion

 117-9   and promote safety;

117-10                     (B)  a bridge, tunnel, overpass, underpass,

117-11   interchange, service road, ramp, entrance plaza, approach, or

117-12   tollhouse;

117-13                     (C)  an administration, storage, or other

117-14   building the authority considers necessary to operate the turnpike

117-15   project;

117-16                     (D)  a parking area or structure, rest stop,

117-17   park, and other improvement or amenity the authority considers

117-18   necessary, useful, or beneficial for the operation of a turnpike

117-19   project; and

117-20                     (E)  property rights, easements, and interests

117-21   the authority acquires to construct or operate the turnpike

117-22   project.

117-23         Sec. 366.004.  CONSTRUCTION COSTS DEFINED.  (a)  The cost of

117-24   acquisition, construction, improvement, extension, or expansion of

117-25   a turnpike project or system under this chapter includes the cost

 118-1   of:

 118-2               (1)  the actual acquisition, construction, improvement,

 118-3   extension, or expansion of the turnpike project or system;

 118-4               (2)  the acquisition of real property, rights-of-way,

 118-5   property rights, easements, and other interests in real property;

 118-6               (3)  machinery and equipment;

 118-7               (4)  interest payable before, during, and after

 118-8   acquisition, construction, improvement, extension, or expansion as

 118-9   provided in the bond proceedings;

118-10               (5)  traffic estimates, revenue estimates, engineering

118-11   and legal services, plans, specifications, surveys, appraisals,

118-12   construction cost estimates, and other expenses necessary or

118-13   incidental to determining the feasibility of the construction,

118-14   improvement, extension, or expansion;

118-15               (6)  necessary or incidental administrative, legal, and

118-16   other expenses;

118-17               (7)  compliance with laws, regulations, and

118-18   administrative rulings;

118-19               (8)  financing; and

118-20               (9)  expenses related to the initial operation of the

118-21   turnpike project or system.

118-22         (b)  Costs attributable to a turnpike project or system and

118-23   incurred before the issuance of bonds to finance the turnpike

118-24   project or system may be reimbursed from the proceeds of sale of

118-25   the bonds.

 119-1            (Sections 366.005-366.030 reserved for expansion

 119-2             SUBCHAPTER B.  CREATION AND POWERS OF REGIONAL

 119-3                           TOLLWAY AUTHORITIES

 119-4         Sec. 366.031.  CREATION AND EXPANSION OF A REGIONAL TOLLWAY

 119-5   AUTHORITY.  (a)  Two or more counties, acting through their

 119-6   respective commissioners courts, may by order passed by each

 119-7   commissioners court create a regional tollway authority under this

 119-8   chapter if:

 119-9               (1)  one of the counties has a population of not less

119-10   than 300,000;

119-11               (2)  the counties form a contiguous territory; and

119-12               (3)  unless one of the counties has a population of 1.5

119-13   million or more, the commission approves the creation.

119-14         (b)  The commission shall adopt rules to implement the

119-15   provisions of this section by March 1, 1998.

119-16         (c)  A commissioners court may by resolution petition an

119-17   established authority for inclusion in the authority if the county

119-18   is contiguous to a county that initially created the authority.

119-19         (d)  On approval of the board of an authority receiving a

119-20   petition under Subsection (c), the county becomes part of the

119-21   authority.

119-22         Sec. 366.032.  NATURE OF REGIONAL TOLLWAY AUTHORITY.  (a)  An

119-23   authority created under this chapter is a body politic and

119-24   corporate and a political subdivision of this state.

119-25         (b)  An authority is a governmental unit as that term is

 120-1   defined in Chapter 101, Civil Practice and Remedies Code.

 120-2         (c)  The exercise by an authority of the powers conferred by

 120-3   this chapter in the acquisition, design, financing, construction,

 120-4   operation, and maintenance of a turnpike project or system is:

 120-5               (1)  in all respects for the benefit of the people of

 120-6   the counties in which an authority operates and of the people of

 120-7   this state, for the increase of their commerce and prosperity, and

 120-8   for the improvement of their health, living conditions, and public

 120-9   safety; and

120-10               (2)  an essential governmental function of the state.

120-11         (d)  The operations of an authority are governmental, not

120-12   proprietary, functions.

120-13         Sec. 366.033.  GENERAL POWERS.  (a)  An authority, acting

120-14   through its board, without state approval, supervision, or

120-15   regulation, may:

120-16               (1)  adopt rules for the regulation of its affairs and

120-17   the conduct of its business;

120-18               (2)  adopt an official seal;

120-19               (3)  study, evaluate, design, acquire, construct,

120-20   maintain, repair, and operate turnpike projects, individually or as

120-21   one or more systems;

120-22               (4)  acquire, hold, and dispose of property in the

120-23   exercise of its powers and the performance of its duties under this

120-24   chapter;

120-25               (5)  enter into contracts or operating agreements with

 121-1   similar authorities or agencies of the United States, a state of

 121-2   the United States, the United Mexican States, or a state of the

 121-3   United Mexican States;

 121-4               (6)  enter into contracts or agreements necessary or

 121-5   incidental to its duties and powers under this chapter;

 121-6               (7)  cooperate and work directly with property owners

 121-7   and governmental agencies and officials to support an activity

 121-8   required to promote or develop a turnpike project or system;

 121-9               (8)  employ and set the compensation and benefits of

121-10   administrators, consulting engineers, attorneys, accountants,

121-11   construction and financial experts, superintendents, managers,

121-12   full-time and part-time employees, agents, consultants, and such

121-13   other persons as the authority considers necessary or useful;

121-14               (9)  receive loans, gifts, grants, and other

121-15   contributions for the construction of a turnpike project or system

121-16   and receive contributions of money, property, labor, or other

121-17   things of value from any source, including the United States, a

121-18   state of the United States, the United Mexican States, a state of

121-19   the United Mexican States, the commission, the department, any

121-20   subdivision of the state, or any other local governmental or

121-21   private entity, to be used for the purposes for which the grants or

121-22   contributions are made, and enter into any agreement necessary for

121-23   the grants or contributions;

121-24               (10)  install, construct, maintain, repair, renew,

121-25   relocate, and remove public utility facilities in, on, along, over,

 122-1   or under a turnpike project;

 122-2               (11)  organize a corporation under Chapter 431 for the

 122-3   promotion and development of turnpike projects and systems;

 122-4               (12)  adopt and enforce rules not inconsistent with

 122-5   this chapter for the use of any turnpike project or system,

 122-6   including traffic and other public safety rules;

 122-7               (13)  enter into leases, operating agreements, service

 122-8   agreements, licenses, franchises, and similar agreements with

 122-9   public or private parties governing the parties' use of all or any

122-10   portion of a turnpike project and the rights and obligations of the

122-11   authority with respect to a turnpike project; and

122-12               (14)  do all things necessary or appropriate to carry

122-13   out the powers expressly granted by this chapter.

122-14         (b)  Rules adopted by the authority must comply with the

122-15   procedures in Subchapter B, Chapter 2001, Government Code, and are

122-16   subject to Section 2001.038, Government Code, except that the

122-17   action may be brought only in a district court of a county located

122-18   in the authority.

122-19         (c)  Property comprising a part of a turnpike project or a

122-20   system is not subject to condemnation or the power of eminent

122-21   domain by any person, including a governmental entity.

122-22         (d)  An authority may, if requested by the commission,

122-23   perform any function not specified by this chapter to promote or

122-24   develop turnpike projects and systems in this state.

122-25         (e)  An authority may sue and be sued and plead and be

 123-1   impleaded in its own name.

 123-2         (f)  An authority may rent, lease, franchise, license, or

 123-3   otherwise make portions of its properties available for use by

 123-4   others in furtherance of its powers under this chapter by

 123-5   increasing the feasibility or the revenue of a turnpike project or

 123-6   system.

 123-7         (g)  An authority and any local governmental entity may enter

 123-8   into a contract under which the authority will operate a turnpike

 123-9   project or system on behalf of the local governmental entity.  An

123-10   authority may enter into a contract with the department under which

123-11   the authority will operate a turnpike project or system on behalf

123-12   of the department.

123-13         (h)  The payments to be made to an authority under a contract

123-14   described by Subsection (g) shall constitute operating expenses of

123-15   the facility or system that is to be operated under the contract,

123-16   and the contract may extend for a number of years as the parties

123-17   agree.

123-18         (i)  An authority shall adopt a written drug and alcohol

123-19   policy restricting the use of controlled substances by employees of

123-20   the authority, prohibiting the consumption of alcoholic beverages

123-21   by employees while on duty, and prohibiting employees from working

123-22   for the authority while under the influence of controlled

123-23   substances or alcohol.  An authority may adopt policies regarding

123-24   the testing of employees suspected of being in violation of the

123-25   authority's drug and alcohol policy.  The policy shall provide

 124-1   that, unless required by court order or permitted by the person who

 124-2   is the subject of the testing, the authority shall keep the results

 124-3   of the test confidential.

 124-4         (j)  An authority shall adopt written procedures governing

 124-5   its procurement of goods and services that are consistent with

 124-6   general laws applicable to the authority.

 124-7         Sec. 366.034.  ESTABLISHMENT OF TURNPIKE SYSTEMS.  (a)  If an

 124-8   authority determines that the traffic needs of the counties in

 124-9   which it operates and the traffic needs of the surrounding region

124-10   could be most efficiently and economically met by jointly operating

124-11   two or more turnpike projects as one operational and financial

124-12   enterprise, it may create a system comprised of those turnpike

124-13   projects.  An authority may create more than one system and may

124-14   combine two or more systems into one system.  An authority may

124-15   finance, acquire, construct, and operate additional turnpike

124-16   projects as additions to and expansions of a system if the

124-17   authority determines that the turnpike project could most

124-18   efficiently and economically be acquired and constructed if it were

124-19   a part of the system and that the addition will benefit the system.

124-20         (b)  The revenue of a system shall be accounted for

124-21   separately and may not be commingled with the revenue of a turnpike

124-22   project that is not a part of the system or with the revenue of

124-23   another system.

124-24         Sec. 366.035.  CONVERSION OF STATE HIGHWAY SYSTEM PROJECTS.

124-25   (a)  If the commission determines that the most feasible and

 125-1   economic means to accomplish necessary expansion, improvements, or

 125-2   extensions to the state highway system is the conversion to a

 125-3   turnpike project of a segment of the free state highway system, any

 125-4   segment located in a county of an authority or a county in which an

 125-5   authority operates a turnpike project or in any county adjacent to

 125-6   those counties may, on approval of the governor and the affected

 125-7   authority, be transferred by order of the commission to that

 125-8   authority.  An authority that receives the segment of highway may

 125-9   own, operate, and maintain the segment as a turnpike project or

125-10   system or a part of a turnpike project or system under this

125-11   chapter.

125-12         (b)  An authority shall reimburse the commission for the cost

125-13   of a transferred highway, unless the commission determines that the

125-14   transfer will result in substantial net benefits to the state, the

125-15   department, and the traveling public that exceed that cost.  The

125-16   cost includes the total amount expended by the department for the

125-17   original construction of the highway, including all costs

125-18   associated with the preliminary engineering and design engineering

125-19   for plans, specifications, and estimates, the acquisition of

125-20   necessary rights-of-way, and actual construction of the highway and

125-21   all necessary appurtenant facilities.  Costs anticipated to be

125-22   expended to expand, improve, or extend the highway shall be

125-23   deducted from the costs to be reimbursed to the commission.

125-24         (c)  The commission shall, at the time of a transfer, remove

125-25   the segment of highway from the state highway system.  After a

 126-1   transfer the commission has no liability, responsibility, or duty

 126-2   for the maintenance or operation of the highway.

 126-3         (d)  Before transferring a segment of the state highway

 126-4   system under this section, the commission shall conduct a public

 126-5   hearing to receive comments from interested persons concerning the

 126-6   proposed transfer.  Notice of the hearing must be published in the

 126-7   Texas Register, one or more newspapers of general circulation in

 126-8   the counties in which the segment is located, and a newspaper, if

 126-9   any, published in the counties of the applicable authority.

126-10         (e)  The commission shall adopt rules implementing this

126-11   section.  The rules shall include criteria and guidelines for the

126-12   approval of a transfer of a highway.

126-13         (f)  An authority shall adopt rules providing criteria and

126-14   guidelines for approving the acceptance of a highway under this

126-15   section.

126-16            (Sections 366.036-366.070 reserved for expansion

126-17        SUBCHAPTER C.  FEASIBILITY OF REGIONAL TURNPIKE PROJECTS

126-18         Sec. 366.071.  EXPENDITURES FOR FEASIBILITY STUDIES.  (a)  An

126-19   authority may pay the expenses of studying the cost and feasibility

126-20   and any other expenses relating to the preparation and issuance of

126-21   bonds for a proposed turnpike project or system by:

126-22               (1)  using legally available revenue derived from an

126-23   existing turnpike project or system;

126-24               (2)  borrowing money and issuing bonds or entering into

126-25   a loan agreement payable out of legally available revenue

 127-1   anticipated to be derived from the operation of an existing

 127-2   turnpike project or system; or

 127-3               (3)  pledging to the payment of the bonds or loan

 127-4   agreements legally available revenue anticipated to be derived from

 127-5   the operation of an existing turnpike project or system or revenue

 127-6   legally available to the authority from another source.

 127-7         (b)  Money spent under this section for a proposed turnpike

 127-8   project or system must be reimbursed to the turnpike project or

 127-9   system from which the money was spent from the proceeds of bonds

127-10   issued for the acquisition and construction of the proposed

127-11   turnpike project or system.

127-12         (c)  The use of any money of a turnpike project or system to

127-13   study the feasibility of another turnpike project or system or used

127-14   to repay any money used for that purpose does not constitute an

127-15   operating expense of the turnpike project or system producing the

127-16   revenue and may only be paid from the surplus money of the turnpike

127-17   project or system.

127-18         Sec. 366.072.  FEASIBILITY STUDY FUND.  (a)  An authority may

127-19   maintain a feasibility study fund.  The fund is a revolving fund

127-20   held in trust by a banking institution chosen by the authority and

127-21   shall be kept separate from the money for any turnpike project or

127-22   system.

127-23         (b)  An authority may transfer an amount from a surplus fund

127-24   established for a turnpike project or system to the authority's

127-25   feasibility study fund if the remainder of the surplus fund is not

 128-1   less than any minimum amount required by the bond proceedings to be

 128-2   retained for that turnpike project or system.

 128-3         (c)  Money in the feasibility study fund may be used only to

 128-4   pay the expenses of studying the cost and feasibility and any other

 128-5   expenses relating to:

 128-6               (1)  the preparation and issuance of bonds for the

 128-7   acquisition and construction of a proposed turnpike project or

 128-8   system;

 128-9               (2)  the financing of the improvement, extension, or

128-10   expansion of an existing turnpike project or system; and

128-11               (3)  private participation, as authorized by law, in

128-12   the financing of a proposed turnpike project or system, the

128-13   refinancing of an existing turnpike project or system, or the

128-14   improvement, extension, or expansion of a turnpike project or

128-15   system.

128-16         (d)  Money spent under Subsection (c) for a proposed turnpike

128-17   project or system must be reimbursed from the proceeds of turnpike

128-18   revenue bonds issued for, or other proceeds that may be used for,

128-19   the acquisition, construction, improvement, extension, expansion,

128-20   or operation of the turnpike project or system.

128-21         (e)  For a purpose described by Subsection (c), an authority

128-22   may borrow money and issue promissory notes or other

128-23   interest-bearing evidences of indebtedness payable out of its

128-24   feasibility study fund, pledging money in the fund or to be placed

128-25   in the fund.

 129-1         Sec. 366.073.  FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,

 129-2   OTHER LOCAL GOVERNMENTAL ENTITY, OR PRIVATE GROUP.  (a)  One or

 129-3   more municipalities, counties, or local governmental entities, a

 129-4   combination of municipalities, counties, and local governmental

 129-5   entities, or a private group or combination of individuals in this

 129-6   state may pay all or part of the expenses of studying the cost and

 129-7   feasibility and any other expenses relating to:

 129-8               (1)  the preparation and issuance of bonds for the

 129-9   acquisition and construction of a proposed turnpike project or

129-10   system by an authority;

129-11               (2)  the improvement, extension, or expansion of an

129-12   authority's existing turnpike project or system; or

129-13               (3)  the use of private participation under applicable

129-14   law in connection with the acquisition, construction, improvement,

129-15   expansion, extension, maintenance, repair, or operation of a

129-16   turnpike project or system by an authority.

129-17         (b)  Money spent under Subsection (a) for an authority's

129-18   proposed turnpike project or system is reimbursable without

129-19   interest and with the consent of the authority to the person paying

129-20   the expenses described in Subsection (a) out of the proceeds from

129-21   turnpike revenue bonds issued for or other proceeds that may be

129-22   used for the acquisition, construction, improvement, extension,

129-23   expansion, or operation of the turnpike project or system.

129-24            (Sections 366.074-366.110 reserved for expansion

 130-1                    SUBCHAPTER D.  TURNPIKE FINANCING

 130-2         Sec. 366.111.  TURNPIKE REVENUE BONDS.  (a)  An authority, by

 130-3   adoption of a bond resolution, may authorize the issuance of bonds

 130-4   to pay all or part of the cost of a turnpike project or system, to

 130-5   refund any bonds previously issued for the turnpike project or

 130-6   system, or to pay for all or part of the cost of a turnpike project

 130-7   or system that will become a part of another system.

 130-8         (b)  As determined in the bond resolution, the bonds of each

 130-9   issue shall:

130-10               (1)  be dated;

130-11               (2)  bear interest at the rate or rates and beginning

130-12   on the dates, as authorized by law, or bear no interest;

130-13               (3)  mature at the time or times, not exceeding 40

130-14   years from their date or dates; and

130-15               (4)  be made redeemable before maturity at the price or

130-16   prices and under the terms provided by the bond resolution.

130-17         (c)  An authority may sell the bonds at public or private

130-18   sale in the manner and for the price it determines to be in the

130-19   best interest of the authority.

130-20         (d)  The proceeds of each bond issue shall be disbursed in

130-21   the manner and under the restrictions, if any, the authority

130-22   provides in the bond resolution.

130-23         (e)  Additional bonds may be issued in the same manner to pay

130-24   the costs of a turnpike project or system.  Unless otherwise

130-25   provided in the bond resolution, the additional bonds shall be on a

 131-1   parity, without preference or priority, with bonds previously

 131-2   issued and payable from the revenue of the turnpike project or

 131-3   system.  In addition, an authority may issue bonds for a turnpike

 131-4   project or system secured by a lien on the revenue of the turnpike

 131-5   project or system subordinate to the lien on the revenue securing

 131-6   other bonds issued for the turnpike project or system.

 131-7         (f)  If the proceeds of a bond issue exceed the cost of the

 131-8   turnpike project or system for which the bonds were issued, the

 131-9   surplus shall be segregated from the other money of the authority

131-10   and used only for the purposes specified in the bond resolution.

131-11         (g)  Bonds issued and delivered under this chapter and

131-12   interest coupons on the bonds are a security under Chapter 8,

131-13   Business & Commerce Code.

131-14         (h)  Bonds issued under this chapter and income from the

131-15   bonds, including any profit made on the sale or transfer of the

131-16   bonds, are exempt from taxation in this state.

131-17         Sec. 366.112.  INTERIM BONDS.  (a)  An authority may, before

131-18   issuing definitive bonds, issue interim bonds, with or without

131-19   coupons, exchangeable for definitive bonds.

131-20         (b)  The interim bonds may be authorized and issued in

131-21   accordance with this chapter, without regard to the requirements,

131-22   restrictions, or procedural provisions contained in any other law.

131-23         (c)  A bond resolution authorizing interim bonds may provide

131-24   that the interim bonds recite that the bonds are issued under this

131-25   chapter.  The recital is conclusive evidence of the validity and

 132-1   the regularity of the bonds' issuance.

 132-2         Sec. 366.113.  PAYMENT OF BONDS; STATE AND COUNTY CREDIT NOT

 132-3   PLEDGED.  (a)  The principal of, interest on, and any redemption

 132-4   premium on bonds issued by an authority are payable solely from:

 132-5               (1)  the revenue of the turnpike project or system for

 132-6   which the bonds are issued, including tolls pledged to pay the

 132-7   bonds;

 132-8               (2)  payments made under an agreement with the

 132-9   commission or a local governmental entity as provided by Subchapter

132-10   G;

132-11               (3)  money derived from any other source available to

132-12   the authority, other than money derived from a turnpike project

132-13   that is not part of the same system or money derived from a

132-14   different system, except to the extent that the surplus revenue of

132-15   a turnpike project or system has been pledged for that purpose; and

132-16               (4)  amounts received under a credit agreement relating

132-17   to the turnpike project or system for which the bonds are issued.

132-18         (b)  Bonds issued under this chapter do not constitute a debt

132-19   of the state or any of the counties of an authority or a pledge of

132-20   the faith and credit of the state or any of the counties.  Each

132-21   bond must contain on its face a statement to the effect that the

132-22   state, the authority, and the counties of the authority are not

132-23   obligated to pay the bond or the interest on the bond from a source

132-24   other than the amount pledged to pay the bond and the interest on

132-25   the bond, and neither the faith and credit and taxing power of the

 133-1   state or the counties of the authority are pledged to the payment

 133-2   of the principal of or interest on the bond.

 133-3         (c)  An authority may not incur financial obligations that

 133-4   cannot be paid from revenue derived from owning or operating the

 133-5   authority's turnpike projects and systems or from other revenue

 133-6   provided by law.

 133-7         Sec. 366.114.  EFFECT OF LIEN.  (a)  A lien on or a pledge of

 133-8   revenue from a turnpike project or system under this chapter or on

 133-9   a reserve, replacement, or other fund established in connection

133-10   with a bond issued under this chapter:

133-11               (1)  is enforceable at the time of payment for and

133-12   delivery of the bond;

133-13               (2)  applies to an item on hand or subsequently

133-14   received;

133-15               (3)  applies without physical delivery of an item or

133-16   other act; and

133-17               (4)  is enforceable against any person having any

133-18   claim, in tort, contract, or other remedy, against the applicable

133-19   authority without regard to whether the person has notice of the

133-20   lien or pledge.

133-21         (b)  A bond resolution is not required to be recorded except

133-22   in the regular records of the authority.

133-23         Sec. 366.115.  BOND INDENTURE.  (a)  Bonds issued under this

133-24   chapter may be secured by a bond indenture between the authority

133-25   and a corporate trustee that is a trust company or a bank that has

 134-1   the powers of a trust company.

 134-2         (b)  A bond indenture may pledge or assign the tolls and

 134-3   other revenue to be received but may not convey or mortgage any

 134-4   part of a turnpike project or system.

 134-5         (c)  A bond indenture may:

 134-6               (1)  set forth the rights and remedies of the

 134-7   bondholders and the trustee;

 134-8               (2)  restrict the individual right of action by

 134-9   bondholders as is customary in trust agreements or indentures of

134-10   trust securing corporate bonds and debentures; and

134-11               (3)  contain provisions the authority determines

134-12   reasonable and proper for the security of the bondholders,

134-13   including covenants:

134-14                     (A)  establishing the authority's duties relating

134-15   to:

134-16                           (i)  the acquisition of property;

134-17                           (ii)  the construction, maintenance,

134-18   operation, and repair of and insurance for a turnpike project or

134-19   system; and

134-20                           (iii)  custody, safeguarding, and

134-21   application of money;

134-22                     (B)  prescribing events that constitute default;

134-23                     (C)  prescribing terms on which any or all of the

134-24   bonds become or may be declared due before maturity; and

134-25                     (D)  relating to the rights, powers, liabilities,

 135-1   or duties that arise on the breach of an authority's duty.

 135-2         (d)  The expenses incurred in carrying out a trust agreement

 135-3   may be treated as part of the cost of operating the turnpike

 135-4   project.

 135-5         (e)  In addition to all other rights by mandamus or other

 135-6   court proceeding, an owner or trustee of a bond issued under this

 135-7   chapter may enforce the owner's rights against an issuing

 135-8   authority, the authority's employees, the authority's board, or an

 135-9   agent or employee of the authority's board and is entitled to:

135-10               (1)  require the authority and the board to impose and

135-11   collect tolls, charges, and other revenue sufficient to carry out

135-12   any agreement contained in the bond proceedings; and

135-13               (2)  apply for and obtain the appointment of a receiver

135-14   for the turnpike project or system.

135-15         Sec. 366.116.  APPROVAL OF BONDS BY ATTORNEY GENERAL.

135-16   (a)  An authority shall submit to the attorney general for

135-17   examination a transcript of proceedings relating to bonds

135-18   authorized under this chapter.  The transcript shall include the

135-19   bond proceedings and any contract securing or providing revenue for

135-20   the payment of the bonds.

135-21         (b)  If the attorney general determines that the bonds, the

135-22   bond proceedings, and any supporting contract are authorized by

135-23   law, the attorney general shall approve the bonds and deliver to

135-24   the comptroller:

135-25               (1)  a copy of the legal opinion of the attorney

 136-1   general stating the approval; and

 136-2               (2)  the record of proceedings relating to the

 136-3   authorization of the bonds.

 136-4         (c)  On receipt of the legal opinion of the attorney general

 136-5   and the record of proceedings relating to the authorization of the

 136-6   bonds, the comptroller shall register the record of proceedings.

 136-7         (d)  After approval by the attorney general, the bonds, the

 136-8   bond proceedings, and any supporting contract are valid,

 136-9   enforceable, and incontestable in any court or other forum for any

136-10   reason and are binding obligations according to their terms for all

136-11   purposes.

136-12         Sec. 366.117.  FURNISHING OF INDEMNIFYING BONDS OR PLEDGES OF

136-13   SECURITIES.  (a)  A bank or trust company incorporated under the

136-14   laws of this state that acts as depository of the proceeds of bonds

136-15   or of revenue may furnish indemnifying bonds or pledge securities

136-16   that an authority requires.

136-17         (b)  Bonds of an authority may secure the deposit of public

136-18   money of the state or a political subdivision of the state to the

136-19   extent of the lesser of the face value of the bonds or their market

136-20   value.

136-21         Sec. 366.118.  APPLICABILITY OF OTHER LAW; CONFLICTS.  All

136-22   laws affecting the issuance of bonds by local governmental

136-23   entities, including Chapter 656, Acts of the 68th Legislature,

136-24   Regular Session, 1983 (Article 717q, Vernon's Texas Civil

136-25   Statutes), Chapter 3, Acts of the 61st Legislature, Regular

 137-1   Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), the

 137-2   Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil

 137-3   Statutes), and Chapter 53, Acts of the 70th Legislature, 2nd Called

 137-4   Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes),

 137-5   apply to bonds issued under this chapter.  To the extent of a

 137-6   conflict between those laws and this chapter, the provisions of

 137-7   this chapter prevail.

 137-8            (Sections 366.119-366.160 reserved for expansion

 137-9         SUBCHAPTER E.  ACQUISITION, CONSTRUCTION, AND OPERATION

137-10                          OF TURNPIKE PROJECTS

137-11         Sec. 366.161.  TURNPIKE PROJECTS EXTENDING INTO OTHER

137-12   COUNTIES.  An authority may acquire, construct, operate, maintain,

137-13   expand, or extend a turnpike project in:

137-14               (1)  a county that is a part of the authority; or

137-15               (2)  a county in which the authority operates or is

137-16   constructing a turnpike project if the turnpike project in the

137-17   affected county is a continuation of the authority's turnpike

137-18   project or system extending from an adjacent county.

137-19         Sec. 366.162.  POWERS AND PROCEDURES OF AUTHORITY IN

137-20   ACQUIRING PROPERTY.  (a)  An authority may construct or improve a

137-21   turnpike project on real property, including a right-of-way

137-22   acquired by the authority or provided to the authority for that

137-23   purpose by the commission, a political subdivision of this state,

137-24   or any other local governmental entity.

137-25         (b)  Except as provided by this chapter, an authority has the

 138-1   same powers and may use the same procedures as the commission in

 138-2   acquiring property.

 138-3         Sec. 366.163.  ACQUISITION OF PROPERTY.  (a)  An authority

 138-4   may acquire in the name of the authority public or private real and

 138-5   other property it determines necessary or convenient for the

 138-6   construction, operation, maintenance, expansion, or extension of a

 138-7   turnpike project or for otherwise carrying out this chapter.

 138-8         (b)  The property an authority may acquire under this

 138-9   subchapter includes all or any portion of, and rights in and to:

138-10               (1)  public or private land, streets, alleys,

138-11   rights-of-way, parks, playgrounds, and reservations;

138-12               (2)  franchises;

138-13               (3)  easements;

138-14               (4)  licenses; and

138-15               (5)  other interests in real and other property.

138-16         (c)  An authority may acquire real property by any method,

138-17   including purchase and condemnation.  An authority may purchase

138-18   public or private real property on the terms and at the price the

138-19   authority and the property owner consider reasonable.

138-20         (d)  Covenants, conditions, restrictions, or limitations

138-21   affecting property acquired in any manner by the authority are not

138-22   binding against the authority and do not impair the authority's

138-23   ability to use the property for a purpose authorized by this

138-24   chapter.  The beneficiaries of the covenants, conditions,

138-25   restrictions, or limitations are not entitled to enjoin the

 139-1   authority from using the property for a purpose authorized under

 139-2   this chapter, but this section does not affect the right of a

 139-3   person to seek compensation for damages to the person's property

 139-4   under Section 17, Article I, Texas Constitution.

 139-5         (e)  Subsection (d) does not affect the obligation of the

 139-6   authority under other state law to compensate the state for

 139-7   acquiring or using property owned by or on behalf of the state.

 139-8         Sec. 366.164.  RIGHT OF ENTRY.  (a)  To acquire property

 139-9   necessary or useful in connection with a turnpike project, an

139-10   authority may enter any real property, water, or premises to make a

139-11   survey, geotechnical evaluation, sounding, or examination.

139-12         (b)  An entry under Subsection (a) is not:

139-13               (1)  a trespass; or

139-14               (2)  an entry under a pending condemnation proceeding.

139-15         (c)  The authority shall make reimbursements for any actual

139-16   damages to real property, water, or premises that result from an

139-17   activity described by Subsection (a).

139-18         Sec. 366.165.  CONDEMNATION OF REAL PROPERTY.  (a)  Subject

139-19   to Subsection (c), an authority may acquire public or private real

139-20   property in the name of the authority by the exercise of the power

139-21   of condemnation under the laws applicable to the exercise of that

139-22   power on property for public use if:

139-23               (1)  the authority and the property owner cannot agree

139-24   on a reasonable price for the property; or

139-25               (2)  the property owner is legally incapacitated,

 140-1   absent, unknown, or unable to convey title.

 140-2         (b)  An authority may condemn real property that the

 140-3   authority determines is:

 140-4               (1)  necessary or appropriate to construct or to

 140-5   efficiently operate a turnpike project;

 140-6               (2)  necessary to restore public or private property

 140-7   damaged or destroyed, including property necessary or convenient to

 140-8   mitigate an environmental effect that directly results from the

 140-9   construction, operation, or maintenance of a turnpike project;

140-10               (3)  necessary for access, approach, and interchange

140-11   roads;

140-12               (4)  necessary to provide proper drainage and ground

140-13   slope for a turnpike project; or

140-14               (5)  necessary otherwise to implement this chapter.

140-15         (c)  An authority may construct a supplemental facility only

140-16   on real property the authority purchases.

140-17         (d)  An authority's acquisition of any real or other property

140-18   of the commission under this section or any other section of this

140-19   chapter or an authority's relocation, rerouting, disruption, or

140-20   alteration of any facility of the commission is considered a

140-21   conversion of a state highway under Section 366.035 and is subject

140-22   to all requirements and approvals of a conversion under that

140-23   section.

140-24         Sec. 366.166.  DECLARATION OF TAKING.  (a)  An authority may

140-25   file a declaration of taking with the clerk of the court:

 141-1               (1)  in which the authority files a condemnation

 141-2   petition under Chapter 21, Property Code; or

 141-3               (2)  to which the case is assigned.

 141-4         (b)  An authority may file the declaration of taking

 141-5   concurrently with or subsequent to the filing of the condemnation

 141-6   petition but may not file the declaration after the special

 141-7   commissioners have made an award in the condemnation proceeding.

 141-8         (c)  The declaration of taking must include:

 141-9               (1)  a specific reference to the legislative authority

141-10   for the condemnation;

141-11               (2)  a description and plot plan of the real property

141-12   to be condemned, including the following information if applicable:

141-13                     (A)  the municipality in which the property is

141-14   located;

141-15                     (B)  the street address of the property; and

141-16                     (C)  the lot and block number of the property;

141-17               (3)  a statement of the property interest to be

141-18   condemned;

141-19               (4)  the name and address of each property owner that

141-20   the authority can obtain after reasonable investigation and a

141-21   description of the owner's interest in the property; and

141-22               (5)  a statement that immediate possession of all or

141-23   part of the property to be condemned is necessary for the timely

141-24   construction of a turnpike project.

141-25         (d)  A deposit to the registry of the court of an amount

 142-1   equal to the appraised fair market value, as determined by the

 142-2   authority, of the property to be condemned and any damages to the

 142-3   remainder must accompany the declaration of taking.

 142-4         (e)  Instead of the deposit under Subsection (d), at its

 142-5   option, the authority may, concurrently with the declaration of a

 142-6   taking, tender in favor of the owner of the subject property a bond

 142-7   or other security in an amount sufficient to secure the owner for

 142-8   the value of the property taken and damages to remaining property,

 142-9   if the authority obtains the court's approval.

142-10         (f)  The date on which the declaration is filed is the date

142-11   of taking for the purpose of assessing the value of the property

142-12   taken and damages to any remaining property to which an owner is

142-13   entitled.

142-14         (g)  An owner may draw upon the deposit held by the court

142-15   under Subsection (d) on the same terms and conditions as are

142-16   applicable under state law to a property owner's withdrawal of a

142-17   commissioners' award deposited under Section 21.021(a)(1), Property

142-18   Code.

142-19         (h)  A property owner that is a defendant in an eminent

142-20   domain action filed by an authority under this chapter has 20 days

142-21   after the date of service of process of both a condemnation

142-22   petition and a notice of declaration of taking to give notice to

142-23   the court in which the action is pending of the defendant's desire

142-24   to have the condemnation petition placed on the court's docket in

142-25   the same manner as other cases pending in the court.  On receipt of

 143-1   timely notice from the defendant, the court in which the eminent

 143-2   domain action is pending shall place the case on its docket in the

 143-3   same manner as other cases pending in the court.

 143-4         Sec. 366.167.  POSSESSION OF PROPERTY.  (a)  Immediately on

 143-5   the filing of a declaration of taking, an authority shall serve a

 143-6   copy of the declaration on each person possessing an interest in

 143-7   the condemned property by a method prescribed by Section 21.016(d),

 143-8   Property Code.  The authority shall file evidence of the service

 143-9   with the clerk of the court.  On filing of that evidence, the

143-10   authority may take possession of the property on the same terms as

143-11   if a commissioners hearing had been conducted, pending the

143-12   litigation.

143-13         (b)  If the condemned property is a homestead or a portion of

143-14   a homestead as defined by Section 41.002, Property Code, an

143-15   authority may not take possession before the 31st day after the

143-16   date of service under Subsection (a).

143-17         (c)  A property owner or tenant who refuses to vacate the

143-18   property or yield possession is subject to forcible entry and

143-19   detainer under Chapter 24, Property Code.

143-20         Sec. 366.168.  SEVERANCE OF REAL PROPERTY.  (a)  If an

143-21   authority's turnpike project severs a property owner's real

143-22   property, the authority shall pay:

143-23               (1)  the value of the property acquired; and

143-24               (2)  the damages, if any, to the remainder of the

143-25   owner's property caused by the severance, including damages caused

 144-1   by the inaccessibility of one tract from the other.

 144-2         (b)  At its option, an authority may negotiate for and

 144-3   purchase the severed real property or any part of the severed real

 144-4   property if the authority and the property owner agree on terms for

 144-5   the purchase.  An authority may sell and dispose of severed real

 144-6   property that it determines is not necessary or useful to the

 144-7   authority.  Severed property must be appraised before being offered

 144-8   for sale by an authority.

 144-9         Sec. 366.169.  ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY.

144-10   (a)  An authority may use real property, including submerged land,

144-11   streets, alleys, and easements, owned by the state or a local

144-12   governmental entity that the authority considers necessary for the

144-13   construction or operation of a turnpike project.

144-14         (b)  The state or a local governmental entity having charge

144-15   of public real property may consent to the use of the property for

144-16   a turnpike project.

144-17         (c)  Except as provided by Section 366.035, the state or a

144-18   local governmental entity may convey, grant, or lease to an

144-19   authority real property, including highways and other real property

144-20   already devoted to public use and rights or easements in real

144-21   property, that may be necessary or convenient to accomplish the

144-22   authority's purposes, including the construction or operation of a

144-23   turnpike project.  A conveyance, grant, or lease under this section

144-24   may be made without advertising, court order, or other action other

144-25   than the normal action of the state or local governmental entity

 145-1   necessary for a conveyance, grant, or lease.

 145-2         (d)  This section does not deprive the School Land Board of

 145-3   the power to execute leases for the development of oil, gas, and

 145-4   other minerals on state-owned real property adjoining a turnpike

 145-5   project or in tidewater limits.  The leases may provide for

 145-6   directional drilling from the adjoining property or tidewater area.

 145-7         (e)  This section does not affect the obligation of the

 145-8   authority under other state law to compensate the state for

 145-9   acquiring or using property owned by or on behalf of the state.  An

145-10   authority's use of property owned by or on behalf of the state is

145-11   subject to any covenants, conditions, restrictions, or limitations

145-12   affecting that property.

145-13         Sec. 366.170.  COMPENSATION FOR AND RESTORATION OF PUBLIC

145-14   PROPERTY.  (a)  Except as provided by Section 366.035 or Section

145-15   366.165(c), an authority may not pay compensation for public real

145-16   property, parkways, streets, highways, alleys, or reservations it

145-17   takes, except for:

145-18               (1)  parks and playgrounds;

145-19               (2)  property owned by or on behalf of the state that

145-20   under state law requires compensation to the state for the use or

145-21   acquisition of the property; or

145-22               (3)  as provided by this chapter.

145-23         (b)  Public property damaged in the exercise of powers

145-24   granted by this chapter shall be restored or repaired and placed in

145-25   its original condition as nearly as practicable.

 146-1         (c)  An authority has full easements and rights-of-way

 146-2   through, across, under, and over any property owned by the state or

 146-3   any local governmental entity that are necessary or convenient to

 146-4   construct, acquire, or efficiently operate a turnpike project or

 146-5   system under this chapter.  This subsection does not affect the

 146-6   obligation of the authority under other state law to compensate the

 146-7   state for the use or acquisition of an easement or right-of-way on

 146-8   property owned by or on behalf of the state.  An authority's use of

 146-9   property owned by or on behalf of the state is subject to any

146-10   covenants, conditions, restrictions, or limitations affecting that

146-11   property.

146-12         Sec. 366.171.  PUBLIC UTILITY FACILITIES.  (a)  An authority

146-13   may adopt rules for the installation, construction, operation,

146-14   maintenance, repair, renewal, relocation, and removal of a public

146-15   utility facility in, on, along, over, or under a turnpike project.

146-16         (b)  If an authority determines it is necessary that a public

146-17   utility facility located in, on, along, over, or under a turnpike

146-18   project be relocated in the turnpike project, removed from the

146-19   turnpike project, or carried along or across the turnpike project

146-20   by grade separation, the owner or operator of the utility facility

146-21   shall relocate or remove the facility in accordance with the

146-22   requirements of the authority and in a manner that does not impede

146-23   the design, financing, construction, operation, or maintenance of

146-24   the turnpike project.  The authority, as a part of the cost of the

146-25   turnpike project or the cost of operating the turnpike project,

 147-1   shall pay the cost of the relocation, removal, or grade separation,

 147-2   including the cost of:

 147-3               (1)  installation of the facility in a new location;

 147-4               (2)  damages incurred by the utility to its facilities

 147-5   and services;

 147-6               (3)  interests in real property and other rights

 147-7   acquired to accomplish the relocation or removal; and

 147-8               (4)  maintenance of grade separation structures.

 147-9         (c)  The authority may reduce the total costs to be paid by

147-10   the authority under Subsection (b) by 10 percent for each 30-day

147-11   period or portion of a 30-day period by which the relocation

147-12   exceeds the limit specified by the authority.  If an owner or

147-13   operator of a public utility facility does not timely remove or

147-14   relocate as required under Subsection (b), the authority may do so

147-15   at the expense of the public utility.  If the authority determines

147-16   that a delay in relocation is the result of circumstances beyond

147-17   the control of the utility, full costs shall be paid by the

147-18   authority.

147-19         (d)  Chapter 228, Acts of the 51st Legislature, Regular

147-20   Session, 1949 (Article 1436a, Vernon's Texas Civil Statutes),

147-21   applies to the erection, construction, maintenance, and operation

147-22   of lines and poles owned by a corporation described by Section 1 of

147-23   that Act over, under, across, on, and along a turnpike project or

147-24   system constructed by an authority.  An authority has the powers

147-25   and duties delegated to the commissioners court by that Act, and an

 148-1   authority has exclusive jurisdiction and control of utilities

 148-2   located in its rights-of-way.

 148-3         (e)  Chapter 470, Acts of the 52nd Legislature, 1951 (Article

 148-4   1436b, Vernon's Texas Civil Statutes), applies to the laying and

 148-5   maintenance of facilities used for conducting gas by a person,

 148-6   firm, or corporation or municipality described in Section 1 of that

 148-7   Act through, under, along, across, and over a turnpike project or

 148-8   system constructed by an authority except as otherwise provided by

 148-9   this section.  An authority has the power and duties delegated to

148-10   the commissioners court by that Act and an authority has exclusive

148-11   jurisdiction and control of utilities located in its right-of-way.

148-12         (f)  The laws of this state applicable to the use of public

148-13   roads, streets, and waters by a telephone and telegraph corporation

148-14   apply to the erection, construction, maintenance, location, and

148-15   operation of a line, pole, or other fixture by a telephone and

148-16   telegraph corporation over, under, across, on, and along a turnpike

148-17   project or system constructed by an authority under this chapter.

148-18         (g)  In this section "public utility facility" means a track,

148-19   pipe, main, conduit, cable, wire, tower, pole, or other item of

148-20   plant or equipment or an appliance of a public utility or other

148-21   person.

148-22         Sec. 366.172.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

148-23   PROJECT.  (a)  An authority may lease, sell, or convey in another

148-24   manner a turnpike project to the department, a county, or a local

148-25   government corporation created under Chapter 431 only with the

 149-1   approval of the governing body of the entity to which the project

 149-2   is transferred.

 149-3         (b)  An agreement to lease, sell, or convey a turnpike

 149-4   project under this section must provide for the discharge and final

 149-5   payment or redemption of the authority's outstanding bonded

 149-6   indebtedness for the turnpike project and must not be prohibited

 149-7   under the bond proceedings applicable to the system, if any, of

 149-8   which the turnpike project is a part.

 149-9         Sec. 366.173.  REVENUE.  (a)  An authority may:

149-10               (1)  impose tolls for the use of each of its turnpike

149-11   projects and systems and the different parts or sections of each of

149-12   its turnpike projects and systems; and

149-13               (2)  contract with a person for the use of part of a

149-14   turnpike project or system or lease or sell part of a turnpike

149-15   project or system, including the right-of-way adjoining the paved

149-16   portion, for any purpose, including placing on the adjoining

149-17   right-of-way a gas station, garage, store, hotel, restaurant,

149-18   parking facility, railroad track, billboard, livestock pasturage,

149-19   telephone line or facility, telecommunication line or facility,

149-20   data transmission line or facility, and electric line or facility,

149-21   under terms set by the authority.

149-22         (b)  Tolls must be set so that the aggregate of tolls from an

149-23   authority's turnpike project or system, together with other revenue

149-24   of the turnpike project or system:

149-25               (1)  provides revenue sufficient to pay:

 150-1                     (A)  the cost of maintaining, repairing, and

 150-2   operating the turnpike project or system; and

 150-3                     (B)  the principal of and interest on the bonds

 150-4   issued for the turnpike project or system as those bonds become due

 150-5   and payable; and

 150-6               (2)  creates reserves for a purpose listed under

 150-7   Subdivision (1).

 150-8         (c)  Tolls are not subject to supervision or regulation by

 150-9   any state agency or other local governmental entity.

150-10         (d)  Tolls and other revenue derived from a turnpike project

150-11   or system for which bonds are issued, except the part necessary to

150-12   pay the cost of maintenance, repair, and operation and to provide

150-13   reserves for those costs as may be provided in the bond

150-14   proceedings, shall be set aside at regular intervals as may be

150-15   provided in the bond resolution or trust agreement in a sinking

150-16   fund that is pledged to and charged with the payment of:

150-17               (1)  interest on the bonds as it becomes due;

150-18               (2)  principal of the bonds as it becomes due;

150-19               (3)  necessary charges of paying agents for paying

150-20   principal and interest; and

150-21               (4)  the redemption price or the purchase price of

150-22   bonds retired by call or purchase as provided by the bond

150-23   proceedings.

150-24         (e)  Use and disposition of money to the credit of the

150-25   sinking fund is subject to the bond proceedings.

 151-1         (f)  To the extent permitted under the applicable bond

 151-2   proceedings, revenue from one turnpike project of an authority may

 151-3   be used to pay the cost of other turnpike projects of the

 151-4   authority.

 151-5         (g)  An authority may not use revenue from its turnpike

 151-6   projects in a manner not authorized by this chapter.  Revenue

 151-7   generated from a turnpike project may not be applied for a purpose

 151-8   or to pay a cost other than a cost or purpose that is reasonably

 151-9   related to or anticipated to be for the benefit of a turnpike

151-10   project.

151-11         Sec. 366.174.  AUTHORITY REVOLVING FUND.  (a)  An authority

151-12   may maintain a revolving fund to be held in trust by a banking

151-13   institution chosen by the authority separate from any other funds

151-14   and administered by the authority's board.

151-15         (b)  An authority may transfer into its revolving fund money

151-16   from any permissible source, including:

151-17               (1)  money from a turnpike project if the transfer does

151-18   not diminish the money available for the project or the system, if

151-19   any, of which it is a part to less than an amount required to be

151-20   retained by the bond proceedings pertaining to the project or

151-21   system;

151-22               (2)  money received by the authority from any source

151-23   and not otherwise committed, including money from the transfer of a

151-24   turnpike project or system or sale of authority assets;

151-25               (3)  advances authorized under Section 52-b, Article

 152-1   III, Texas Constitution; and

 152-2               (4)  contributions, loans, grants, or assistance from

 152-3   the United States, another state, a political subdivision of this

 152-4   state, a foreign governmental entity, including the United Mexican

 152-5   States or a state of the United Mexican States, a local

 152-6   governmental entity, any private enterprise, or any person.

 152-7         (c)  The authority may use money in the revolving fund to:

 152-8               (1)  finance the acquisition, construction,

 152-9   maintenance, or operation of a turnpike project or system,

152-10   including the extension, expansion, or improvement of a project or

152-11   system;

152-12               (2)  provide matching money required in connection with

152-13   any federal, state, local, or private aid, grant, or other funding,

152-14   including aid or funding by or with public-private partnerships;

152-15               (3)  provide credit enhancement either directly or

152-16   indirectly for bonds issued to acquire, construct, extend, expand,

152-17   or improve a turnpike project or system;

152-18               (4)  provide security for or payment of future or

152-19   existing debt for the design, acquisition, construction, operation,

152-20   maintenance, extension, expansion, or improvement of a turnpike

152-21   project or system;

152-22               (5)  borrow money and issue promissory notes or other

152-23   indebtedness payable out of the revolving fund for any purpose

152-24   authorized by this chapter; and

152-25               (6)  provide for any other reasonable purpose that

 153-1   assists in the financing of an authority as authorized by this

 153-2   chapter.

 153-3         (d)  Money spent or advanced from the revolving fund for a

 153-4   turnpike project or system must be reimbursed from the money of

 153-5   that turnpike project or system, and there must be a reasonable

 153-6   expectation of such repayment at the time of authorization.

 153-7         Sec. 366.175.  USE OF SURPLUS REVENUE.  The board of an

 153-8   authority may by resolution authorize the use of surplus revenue of

 153-9   a turnpike project or system to pay the costs of another turnpike

153-10   project or system other than a project financed under Subchapter G.

153-11   The board may in the resolution prescribe terms for the use of the

153-12   revenue, including the pledge of the revenue, but may not take an

153-13   action under this section that violates, impairs, or is

153-14   inconsistent with a bond resolution, trust agreement, or indenture

153-15   governing the use of the surplus revenue.

153-16         Sec. 366.176.  EXEMPTION FROM TAXATION OR ASSESSMENT.

153-17   (a)  An authority is exempt from taxation of or assessments on:

153-18               (1)  a turnpike project or system;

153-19               (2)  property the authority acquires or uses under this

153-20   chapter; or

153-21               (3)  income from property described by Subdivision (1)

153-22   or (2).

153-23         (b)  An authority is exempt from payment of development fees,

153-24   utility connection fees, assessments, and service fees imposed or

153-25   assessed by a county, municipality, road and utility district,

 154-1   river authority, any other state or local governmental entity, or

 154-2   any property owners' or homeowners' association.

 154-3         Sec. 366.177.  ACTIONS AFFECTING EXISTING ROADS.  (a)  An

 154-4   authority may impose a toll for transit over an existing free road,

 154-5   street, or public highway transferred to the authority under this

 154-6   chapter.

 154-7         (b)  An authority may construct a grade separation at an

 154-8   intersection of a turnpike project with a railroad or highway and

 154-9   change the line or grade of a highway to accommodate the design of

154-10   the grade separation.  The action may not affect a segment of the

154-11   state highway system without the department's consent.  The

154-12   authority shall pay the cost of a grade separation and any damage

154-13   incurred in changing a line or grade of a railroad or highway as

154-14   part of the cost of the turnpike project.

154-15         (c)  If feasible, an authority shall provide access to

154-16   properties previously abutting a county or other public road that

154-17   is taken for a turnpike project and shall pay abutting property

154-18   owners the expenses or any resulting damages for a denial of access

154-19   to the road.

154-20         Sec. 366.178.  FAILURE OR REFUSAL TO PAY TOLL.  (a)  A motor

154-21   vehicle other than a police or emergency vehicle that passes

154-22   through a toll collection facility, whether driven or towed, shall

154-23   pay the proper toll.

154-24         (b)  A person who fails or refuses to pay a toll provided for

154-25   the use of a project is liable for a fine not to exceed $250, plus

 155-1   an administrative fee incurred in connection with the violation.

 155-2         (c)  If a person fails to pay the proper toll:

 155-3               (1)  on issuance of a notice of nonpayment, the

 155-4   registered owner of the nonpaying vehicle shall pay both the proper

 155-5   toll and the administrative fee; and

 155-6               (2)  an authority may charge an administrative fee of

 155-7   not more than $100 to recover the cost of collecting the unpaid

 155-8   toll.

 155-9         (d)  Notice of nonpayment under Subsection (c)(1) shall be

155-10   sent by first-class mail and may not require payment of the proper

155-11   toll and the administrative fee before the 30th day after the date

155-12   the notice is mailed.  The registered owner shall pay a separate

155-13   toll and administrative fee for each nonpayment.

155-14         (e)  If the registered owner of the vehicle fails to pay the

155-15   proper toll and administrative fee in the time specified by the

155-16   notice, the owner shall be cited as for other traffic violations as

155-17   provided by law, and the owner shall pay a fine of not more than

155-18   $250 for each nonpayment.

155-19         (f)  In the prosecution of a violation for nonpayment, proof

155-20   that the vehicle passed through a toll collection facility without

155-21   payment of the proper toll together with proof that the defendant

155-22   was the registered owner or the driver of the vehicle when the

155-23   failure to pay occurred, establishes the nonpayment of the

155-24   registered owner.  The proof may be by testimony of a peace officer

155-25   or authority employee, video surveillance, or any other reasonable

 156-1   evidence.

 156-2         (g)  The court of the local jurisdiction in which the

 156-3   violation occurs may assess and collect the fine in addition to any

 156-4   court costs.  The court shall collect the proper toll and

 156-5   administrative fee and forward the toll and fee to the authority.

 156-6         (h)  It is a defense to nonpayment under this section that

 156-7   the motor vehicle in question was stolen before the failure to pay

 156-8   the proper toll occurred and was not recovered by the time of the

 156-9   failure to pay, but only if the theft was reported to the

156-10   appropriate law enforcement authority before the earlier of:

156-11               (1)  the occurrence of the failure to pay; or

156-12               (2)  eight hours after the discovery of the theft.

156-13         (i)  A registered owner who is the lessor of a vehicle for

156-14   which a notice of nonpayment has been issued is not liable if, not

156-15   later than the 30th day after the date the notice of nonpayment is

156-16   mailed, the registered owner provides to the authority a copy of

156-17   the lease agreement covering the vehicle on the date of the

156-18   nonpayment.  The name and address of the lessee must be clearly

156-19   legible.  If the lessor timely provides the required information,

156-20   the lessee of the vehicle on the date of the violation is

156-21   considered to be the owner of the vehicle for purposes of this

156-22   section.  The lessee is subject to prosecution for failure to pay

156-23   the proper toll if the authority sends a notice of nonpayment to

156-24   the lessee by first-class mail not later than the 30th day after

156-25   the date of the receipt of the information from the lessor.

 157-1         Sec. 366.179.  USE AND RETURN OF TRANSPONDERS.  (a)  For

 157-2   purposes of this section, a transponder is a device placed on or

 157-3   within an automobile that is capable of transmitting or receiving

 157-4   information used to assess or collect tolls.  A transponder is

 157-5   insufficiently funded if there is no money in the account for which

 157-6   the transponder was issued.

 157-7         (b)  Any law enforcement or peace officer of an entity with

 157-8   which an authority has contracted under Section 366.182(c) may

 157-9   seize a stolen or insufficiently funded transponder and return it

157-10   to the authority that issued the transponder.  An insufficiently

157-11   funded transponder may not be seized before the 30th day after the

157-12   date that an authority has sent a notice of delinquency to the

157-13   holder of the account.

157-14         (c)  The following entities shall consider offering motor

157-15   vehicle operators the option of using a transponder to pay tolls

157-16   without stopping, to mitigate congestion at toll locations, to

157-17   enhance traffic flow, and to otherwise increase the efficiency of

157-18   operations:

157-19               (1)  the authority;

157-20               (2)  an entity to which a project authorized by this

157-21   chapter is transferred; or

157-22               (3)  a third party service provider under contract with

157-23   an entity described by Subdivision (1) or (2).

157-24         Sec. 366.180.  CONTROLLED ACCESS TO TURNPIKE PROJECTS.

157-25   (a)  An authority may designate a turnpike project or a portion of

 158-1   a project as a controlled-access toll road.

 158-2         (b)  An authority by order may:

 158-3               (1)  prohibit the use of or access to or from a

 158-4   turnpike project by a motor vehicle, bicycle, other vehicle, or a

 158-5   pedestrian;

 158-6               (2)  deny access to or from:

 158-7                     (A)  its turnpike projects;

 158-8                     (B)  real property adjacent to its turnpike

 158-9   projects; or

158-10                     (C)  a street, road, alley, highway, or other

158-11   public or private way intersecting its turnpike projects;

158-12               (3)  designate locations on its turnpike projects at

158-13   which access to or from the toll road is permitted;

158-14               (4)  control, restrict, and determine the type and

158-15   extent of access permitted at a designated location of access to

158-16   the turnpike projects; or

158-17               (5)  erect appropriate protective devices to preserve

158-18   the utility, integrity, and use of its turnpike projects.

158-19         (c)  Denial of access to or from a segment of the state

158-20   highway system is subject to the approval of the commission.

158-21         Sec. 366.181.  PROMOTION OF TOLL ROADS.  An authority may

158-22   promote the use of its turnpike projects by appropriate means,

158-23   including advertising or marketing as the authority determines

158-24   appropriate.

158-25         Sec. 366.182.  OPERATION OF TURNPIKE PROJECT.  (a)  An

 159-1   authority shall operate its turnpike projects through a force of

 159-2   toll-takers and other employees of the authority or through

 159-3   services contracted under Subsection (b) or (c).

 159-4         (b)  An authority may enter into an agreement with one or

 159-5   more persons to provide, on terms and conditions approved by the

 159-6   authority, personnel and services to design, construct, operate,

 159-7   maintain, expand, enlarge, or extend the authority's turnpike

 159-8   projects.

 159-9         (c)  An authority may contract with any state or local

159-10   governmental entity for the services of peace officers of that

159-11   agency.

159-12         Sec. 366.183.  AUDIT.  An authority shall have a certified

159-13   public accountant audit the authority's books and accounts at least

159-14   annually.  The cost of the audit may be treated as part of the cost

159-15   of construction or operation of a turnpike project.

159-16         Sec. 366.184.  DISADVANTAGED BUSINESSES.  (a)  Consistent

159-17   with general law, an authority shall:

159-18               (1)  set goals for the award of contracts to

159-19   disadvantaged businesses and attempt to meet the goals;

159-20               (2)  attempt to identify disadvantaged businesses that

159-21   provide or have the potential to provide supplies, materials,

159-22   equipment, or services to the authority; and

159-23               (3)  give disadvantaged businesses full access to the

159-24   authority's contract bidding process, inform the businesses about

159-25   the process, offer the businesses assistance concerning the

 160-1   process, and identify barriers to the businesses' participation in

 160-2   the process.

 160-3         (b)  This section does not exempt an authority from

 160-4   competitive bidding requirements provided by other law.

 160-5         Sec. 366.185.  COMPETITIVE BIDDING.  (a)  A contract made by

 160-6   an authority that requires the expenditures of public funds for the

 160-7   construction or maintenance of a turnpike project must be let by a

 160-8   competitive bidding procedure in which the contract is awarded to

 160-9   the lowest responsible bidder that complies with the authority's

160-10   criteria.

160-11         (b)  The authority shall adopt rules governing the award of

160-12   contracts through competitive bidding.

160-13            (Sections 366.186-366.250 reserved for expansion

160-14                        SUBCHAPTER F.  GOVERNANCE

160-15         Sec. 366.251.  BOARD OF DIRECTORS.  (a)  An authority is

160-16   governed by a board of directors.

160-17         (b)  The commissioners court of each county of the authority

160-18   shall appoint one director to serve on the board.  The governor

160-19   shall appoint three directors to serve on the board.

160-20         (c)  Directors shall be divided into two groups.  To the

160-21   greatest degree possible, each group shall contain an equal number

160-22   of directors.  Directors shall serve terms of two years, except

160-23   that one group of directors of the initial board of an authority

160-24   shall serve for a term of one year.

160-25         (d)  Two directors appointed by the governor must have

 161-1   resided in a county of the authority for at least one year before

 161-2   the person's appointment.  One director appointed by the governor

 161-3   must have resided in a county adjacent to a county of the authority

 161-4   for at least one year before the person's appointment.  Each

 161-5   director appointed by a commissioners court must have resided in

 161-6   that county for at least one year before the person's appointment.

 161-7         (e)  All appointments to the board shall be made without

 161-8   regard to disability, sex, religion, age, or national origin.  In

 161-9   making appointments under this section, the governor shall attempt

161-10   to create a board that is representative of the diversity of the

161-11   authority.

161-12         (f)  An elected official is not eligible to serve as a

161-13   director.

161-14         (g)  A vacancy in a position shall be filled promptly by the

161-15   entity that made the appointment.

161-16         (h)  Each director has equal status and may vote.

161-17         (i)  The board of an authority shall select one director as

161-18   the presiding officer of the board to serve in that capacity until

161-19   the person's term as a director expires.  The board shall elect one

161-20   director as assistant presiding officer.  The board shall select a

161-21   secretary and treasurer, neither of whom need be a director.

161-22         (j)  The vote of a majority attending a board meeting is

161-23   necessary for any action taken by the board.  If a vacancy exists

161-24   on a board, the majority of directors serving on the board is a

161-25   quorum.

 162-1         Sec. 366.252.  CONFLICT OF INTEREST.  (a)  A person is not

 162-2   eligible to serve on the board of an authority if the person or the

 162-3   person's spouse:

 162-4               (1)  is registered, certified, or licensed by an

 162-5   occupational regulatory agency in the field of toll road

 162-6   construction, maintenance, or operation;

 162-7               (2)  is employed by or participates in the management

 162-8   of a business entity or other organization regulated by the

 162-9   authority or receiving money from the authority;

162-10               (3)  owns or controls, directly or indirectly, more

162-11   than a 10 percent interest in a business entity or other

162-12   organization regulated by or receiving money from the authority,

162-13   other than compensation for acquisition of turnpike right-of-way;

162-14               (4)  uses or receives a substantial amount of tangible

162-15   goods, services, or money from the authority, other than

162-16   compensation or reimbursement authorized by law for board

162-17   membership, attendance, or expenses, or for compensation for

162-18   acquisition of turnpike right-of-way;

162-19               (5)  is an officer, employee, or paid consultant of a

162-20   Texas trade association in the field of road construction,

162-21   maintenance, or operation; or

162-22               (6)  is required to register as a lobbyist under

162-23   Chapter 305, Government Code, because of the person's activities

162-24   for compensation on behalf of a profession related to the operation

162-25   of the authority.

 163-1         (b)  A person may not act as the general counsel to an

 163-2   authority if the person is required to register as a lobbyist under

 163-3   Chapter 305, Government Code, because of the person's activities

 163-4   for compensation on behalf of a profession related to the operation

 163-5   of the authority.

 163-6         (c)  In this section, "Texas trade association" means a

 163-7   nonprofit, cooperative, and voluntarily joined association of

 163-8   business or professional competitors in this state designed to

 163-9   assist its members and its industry or profession in dealing with

163-10   mutual business or professional problems and in promoting their

163-11   common interests.

163-12         Sec. 366.253.  SURETY BONDS.  (a)  Before beginning a term,

163-13   each director shall execute a surety bond in the amount of $25,000,

163-14   and the secretary and treasurer shall execute a surety bond in the

163-15   amount of $50,000.

163-16         (b)  Each surety bond must be:

163-17               (1)  conditioned on the faithful performance of the

163-18   duties of office;

163-19               (2)  executed by a surety company authorized to

163-20   transact business in this state; and

163-21               (3)  filed with the secretary of state's office.

163-22         (c)  The authority shall pay the expense of the bonds.

163-23         Sec. 366.254.  REMOVAL OF DIRECTOR.  (a)  It is a ground for

163-24   removal of a director from the board if the director:

163-25               (1)  did not have at the time of appointment the

 164-1   qualifications required by Section 366.251(d);

 164-2               (2)  whether at the time of appointment or at any time

 164-3   during the director's term, is ineligible under Section 366.251(f)

 164-4   or 366.252 to serve as a director;

 164-5               (3)  cannot discharge the director's duties for a

 164-6   substantial part of the term for which the director is appointed

 164-7   because of illness or disability; or

 164-8               (4)  is absent from more than half of the regularly

 164-9   scheduled board meetings that the director is eligible to attend

164-10   during a calendar year.

164-11         (b)  The validity of an action of the board is not affected

164-12   by the fact that it is taken when a ground for removal of a

164-13   director exists.

164-14         (c)  If the administrative head of the authority has

164-15   knowledge that a potential ground for removal exists, that person

164-16   shall notify the presiding officer of the board of the ground.  The

164-17   presiding officer shall then notify the person that appointed the

164-18   director that a potential ground for removal exists.

164-19         Sec. 366.255.  COMPENSATION OF DIRECTOR.  Each director is

164-20   entitled to reimbursement for the director's actual expenses

164-21   necessarily incurred in the performance of the director's duties.

164-22   A director is not entitled to any additional compensation for the

164-23   director's services.

164-24         Sec. 366.256.  EVIDENCE OF AUTHORITY ACTIONS.  Actions of an

164-25   authority are the actions of its board and may be evidenced in any

 165-1   legal manner, including a board resolution.

 165-2         Sec. 366.257.  PUBLIC ACCESS.  An authority shall:

 165-3               (1)  make and implement policies that provide the

 165-4   public with a reasonable opportunity to appear before the board to

 165-5   speak on any issue under the jurisdiction of the authority; and

 165-6               (2)  prepare and maintain a written plan that describes

 165-7   how an individual who does not speak English or who has a physical,

 165-8   mental, or developmental disability may be provided reasonable

 165-9   access to the authority's programs.

165-10         Sec. 366.258.  INDEMNIFICATION.  (a)  An authority may

165-11   indemnify one or more of its directors or officers for necessary

165-12   expenses and costs, including attorney's fees, incurred by the

165-13   directors or officers in connection with any claim asserted against

165-14   the directors or officers in their respective capacities as

165-15   directors or officers.

165-16         (b)  If an authority does not fully indemnify a director or

165-17   officer as provided by Subsection (a), the court in a proceeding in

165-18   which any claim against the director or officer is asserted or any

165-19   court with jurisdiction of an action instituted by the director or

165-20   officer on a claim for indemnity may assess indemnity against the

165-21   authority, its receiver, or trustee only if the court finds that,

165-22   in connection with the claim, the director or officer is not guilty

165-23   of negligence or misconduct.

165-24         (c)  A court may not assess indemnity under Subsection (b)

165-25   for an amount paid by the director or officer to the authority.

 166-1         (d)  This section applies to a current or former director or

 166-2   officer of the authority.

 166-3         Sec. 366.259.  PURCHASE OF LIABILITY INSURANCE.  (a)  An

 166-4   authority shall insure its officers and employees from liability

 166-5   arising from the use, operation, or maintenance of equipment that

 166-6   is used or may be used in connection with the laying out,

 166-7   construction, or maintenance of the authority's turnpike projects.

 166-8         (b)  Insurance coverage under this section must be provided

 166-9   by the purchase of a policy of liability insurance from a reliable

166-10   insurance company authorized to do business in this state.  The

166-11   form of the policy must be approved by the commissioner of

166-12   insurance.

166-13         (c)  This section is not a waiver of immunity of the

166-14   authority or the counties in an authority from liability for the

166-15   torts or negligence of an officer or employee of an authority.

166-16         (d)  In this section, "equipment" includes an automobile,

166-17   motor truck, trailer, aircraft, motor grader, roller, tractor,

166-18   tractor power mower, and other power equipment.

166-19         Sec. 366.260.  CERTAIN CONTRACTS AND SALES PROHIBITED.

166-20   (a)  A director, agent, or employee of an authority may not:

166-21               (1)  contract with the authority; or

166-22               (2)  be directly or indirectly interested in:

166-23                     (A)  a contract with the authority; or

166-24                     (B)  the sale of property to the authority.

166-25         (b)  A person who violates Subsection (a) is liable for a

 167-1   civil penalty to the authority not to exceed $1,000.

 167-2         Sec. 366.261.  STRATEGIC PLANS AND ANNUAL REPORTS.  (a)  An

 167-3   authority shall make a strategic plan for its operations.  A

 167-4   majority of the commissioners courts of the counties composing the

 167-5   authority shall by concurrent resolution determine the types of

 167-6   information required to be included in the strategic plan.  Each

 167-7   even-numbered year, an authority shall issue a plan covering the

 167-8   next five fiscal years, beginning with the next odd-numbered fiscal

 167-9   year.

167-10         (b)  Not later than March 31 of each year, an authority shall

167-11   file with the commissioners court of each county of the authority a

167-12   written report on the authority's activities describing all

167-13   turnpike revenue bond issuances anticipated for the coming year,

167-14   the financial condition of the authority, all project schedules,

167-15   and the status of the authority's performance under the most recent

167-16   strategic plan.  At the invitation of a commissioners court of a

167-17   county in the authority, representatives of the board and the

167-18   administrative head of an authority shall appear before the

167-19   commissioners court to present the report and receive questions and

167-20   comments.

167-21         (c)  The authority shall give notice to the commissioners

167-22   court of each county of the authority not later than the 90th day

167-23   before the date of issuance of revenue bonds.

167-24         Sec. 366.262.  MEETINGS BY TELEPHONE CONFERENCE CALL.

167-25   (a)  Chapter 551, Government Code, does not prohibit any open or

 168-1   closed meeting of the board, a committee of the board, or the

 168-2   staff, or any combination of the board or staff, from being held by

 168-3   telephone conference call.

 168-4         (b)  A telephone conference call meeting is subject to the

 168-5   notice requirements applicable to other meetings.

 168-6         (c)  Notice of a telephone conference call meeting that by

 168-7   law must be open to the public must specify the location of the

 168-8   meeting.  The location must be a conference room of the authority

 168-9   or other facility in a county of the authority that is accessible

168-10   to the public.

168-11         (d)  Each part of the telephone conference call meeting that

168-12   by law must be open to the public shall be audible to the public at

168-13   the location specified in the notice and shall be tape-recorded or

168-14   documented by written minutes.  On conclusion of the meeting, the

168-15   tape recording or the written minutes of the meeting shall be made

168-16   available to the public.

168-17            (Sections 366.263-366.300 reserved for expansion

168-18            SUBCHAPTER G.  AID FOR REGIONAL TURNPIKE PROJECTS

168-19         Sec. 366.301.  DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS.

168-20   (a)  To the extent permitted by the Texas Constitution, the

168-21   department may agree with an authority to provide for or contribute

168-22   to the payment of costs of financial or engineering and traffic

168-23   feasibility studies and the design, financing, acquisition,

168-24   construction, operation, or maintenance of a turnpike project or

168-25   system on terms agreed on by the commission or department, as

 169-1   applicable, and the authority.  The agreement may not be

 169-2   inconsistent with the rights of the bondholders or persons

 169-3   operating the turnpike project under a lease or other contract.

 169-4         (b)  The department may use its engineering and other

 169-5   personnel, including consulting engineers and traffic engineers, to

 169-6   conduct feasibility studies under Subsection (a).

 169-7         (c)  An obligation or expense incurred by the commission or

 169-8   department under this section is a part of the cost of the turnpike

 169-9   project for which the obligation or expense was incurred.  Money

169-10   from the state highway fund spent under this section must be repaid

169-11   from tolls or other revenue of the turnpike project or system on

169-12   which the money from the state highway fund was expended.

169-13         (d)  The commission or department may use federal money for

169-14   any purpose described by this chapter.

169-15         Sec. 366.302.  AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE

169-16   TURNPIKE PROJECTS.  (a)  An authority may enter into an agreement

169-17   with a public or private entity, including a toll road corporation,

169-18   the United States, a state of the United States, the United Mexican

169-19   States, a state of the United Mexican States, a local governmental

169-20   entity, or another political subdivision, to permit the entity,

169-21   jointly with the authority, to study the feasibility of a turnpike

169-22   project or system or to acquire, design, finance, construct,

169-23   maintain, repair, operate, extend, or expand a turnpike project or

169-24   system.

169-25         (b)  An authority has broad discretion to negotiate

 170-1   provisions in a development agreement with a private entity.  The

 170-2   provisions may include provisions relating to:

 170-3               (1)  the design, financing, construction, maintenance,

 170-4   and operation of a turnpike project or system in accordance with

 170-5   standards adopted by the authority; and

 170-6               (2)  professional and consulting services to be

 170-7   rendered under standards adopted by the authority in connection

 170-8   with a turnpike project or system.

 170-9         (c)  An authority may not incur a financial obligation on

170-10   behalf of, or otherwise guarantee the obligations of, a private

170-11   entity that constructs, maintains, or operates a turnpike project

170-12   or system.

170-13         (d)  An authority or a county in an authority is not liable

170-14   for any financial or other obligation of a turnpike project solely

170-15   because a private entity constructs, finances, or operates any part

170-16   of a turnpike project or system.

170-17         (e)  An authority may authorize the investment of public and

170-18   private money, including debt and equity participation, to finance

170-19   a function described by this section.

170-20         Sec. 366.303.  AGREEMENTS BETWEEN AUTHORITY AND LOCAL

170-21   GOVERNMENTAL ENTITIES.  (a)  A local governmental entity other than

170-22   a nonprofit corporation may, consistent with the Texas

170-23   Constitution, issue bonds or enter into and make payments under

170-24   agreements with an authority to acquire, construct, maintain, or

170-25   operate a turnpike project or system.  The entity may levy and

 171-1   collect taxes to pay the interest on the bonds and to provide a

 171-2   sinking fund for the redemption of the bonds.

 171-3         (b)  In addition to the powers provided by Subsection (a), a

 171-4   local governmental entity may, within any applicable constitutional

 171-5   limitations, agree with an authority to issue bonds or enter into

 171-6   and make payments under an agreement to acquire, construct,

 171-7   maintain, or operate any portion of a turnpike project or system of

 171-8   that authority.

 171-9         (c)  To make payments under an agreement under Subsection

171-10   (b), to pay the interest on bonds issued under Subsection (b), or

171-11   to provide a sinking fund for the bonds or the contract, a local

171-12   governmental entity may:

171-13               (1)  pledge revenue from any available source,

171-14   including annual appropriations;

171-15               (2)  levy and collect taxes; or

171-16               (3)  provide for a combination of Subdivisions (1) and

171-17   (2).

171-18         (d)  The term of an agreement under this section may not

171-19   exceed 40 years.

171-20         (e)  Any election required to permit action under this

171-21   subchapter must be held in conformity with Chapter 1, Title 22,

171-22   Revised Statutes, or other law applicable to the local governmental

171-23   entity.

171-24         Sec. 366.304.  ADDITIONAL AGREEMENTS OF AUTHORITY.  An

171-25   authority may enter into any agreement necessary or convenient to

 172-1   achieve the purposes of this subchapter.

 172-2         SECTION 7.25.  Subchapter F, Chapter 411, Government Code, is

 172-3   amended by adding Section 411.132 to read as follows:

 172-4         Sec. 411.132.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

 172-5   REGIONAL TOLLWAY AUTHORITIES.  (a)  A regional tollway authority

 172-6   governed by Chapter 366, Transportation Code, is entitled to obtain

 172-7   from the department criminal history record information maintained

 172-8   by the department that pertains to a person who is:

 172-9               (1)  employed by the regional tollway authority; or

172-10               (2)  an applicant for employment with the regional

172-11   tollway authority.

172-12         (b)  Criminal history record information obtained under

172-13   Subsection (a) may not be released or disclosed to any person

172-14   except in a criminal proceeding, in a hearing conducted by the

172-15   regional tollway authority, on court order, or with the consent of

172-16   the person who is the subject of the criminal history record

172-17   information.

172-18         SECTION 7.26.  (a)  Notwithstanding Section 366.031,

172-19   Transportation Code, as added by this Act, the North Texas Tollway

172-20   Authority is established as a regional tollway authority under

172-21   Chapter 366, Transportation Code, as added by this Act.

172-22         (b)  The North Texas Tollway Authority consists of all

172-23   territory in Collin, Dallas, Denton, and Tarrant counties.  The

172-24   operations of the authority may extend to other counties as

172-25   permitted under Section 366.161, Transportation Code, as added by

 173-1   this Act, and the jurisdiction of the authority may be expanded to

 173-2   include other counties under Section 366.031, Transportation Code,

 173-3   as added by this Act.  As of the effective date of this Act, Cooke,

 173-4   Ellis, Fannin, Grayson, Hunt, Johnson, Kaufman, Parker, Rockwall,

 173-5   and Wise counties are the only counties that meet the geographical

 173-6   qualifications for future inclusion in the North Texas Tollway

 173-7   Authority.

 173-8         (c)  Notwithstanding Section 366.251, Transportation Code, as

 173-9   added by this Act, the initial board of directors of the North

173-10   Texas Tollway Authority is composed of nine directors as follows:

173-11               (1)  three directors appointed by the governor, two of

173-12   whom must have resided in a county of the authority for at least

173-13   one year before the person's appointment and one of whom must have

173-14   resided in Parker County, Ellis County, or Johnson County for at

173-15   least one year before the person's appointment;

173-16               (2)  one director appointed by the commissioners court

173-17   of each county in the authority; and

173-18               (3)  the county judges of two of the counties of the

173-19   authority, as agreed by a majority of the county judges of the

173-20   authority.

173-21         (d)  The terms of the initial directors of the North Texas

173-22   Tollway Authority begin on September 1, 1997.  The county judges

173-23   serving as initial directors shall each serve a one-year term.  At

173-24   the expiration of that term, the seats held by the county judges

173-25   are not refilled, and the number of directors composing the board

 174-1   is reduced to seven but may be increased if additional counties

 174-2   join the authority.

 174-3         (e)  One of the directors of the North Texas Tollway

 174-4   Authority appointed to the initial board by the governor serves a

 174-5   one-year term.  Each successor to that director shall be appointed

 174-6   by the governor for a two-year term.

 174-7         (f)  The two directors appointed to the initial board of the

 174-8   North Texas Tollway Authority by the commissioners courts of the

 174-9   counties whose county judges serve as initial directors each serve

174-10   a one-year term.  Each successor to those directors shall be

174-11   appointed for a two-year term.  The remaining initial directors

174-12   serve two-year terms.

174-13         (g)  The North Texas Tollway Authority shall, within a

174-14   reasonable time after the effective date of this Act, perform and

174-15   adequately fund a feasibility study for the construction of the

174-16   Trinity Parkway in the southern part of Dallas County.

174-17         SECTION 7.27.  Subsection (b), Section 365.013,

174-18   Transportation Code, is amended to read as follows:

174-19         (b)  A district may not construct a toll structure within two

174-20   miles of the intersection of the toll road and a federal highway

174-21   unless the toll structure is located in a county with a population

174-22   of more than 2.1 million or a county adjacent to a county with a

174-23   population of more than  2.1 million.

174-24         SECTION 7.28.  If the Texas Department of Transportation is

174-25   authorized to construct an intermodal toll road inclusive of a

 175-1   freight rail line that is to be part of the state highway system:

 175-2               (1)  in selecting the route for an intermodal toll

 175-3   road, the department must give consideration to the character of

 175-4   the land along the proposed route of the toll road and its

 175-5   suitability for particular uses and the impact on neighborhoods,

 175-6   schools, and projected future residential subdivisions along the

 175-7   proposed route; and

 175-8               (2)  if the route is to be selected from among more

 175-9   than one alternative route, the department must give consideration

175-10   to the character of the land and the impact on neighborhoods,

175-11   schools, and projected future residential subdivisions along each

175-12   alternative route and the suitability of the land for particular

175-13   uses.

175-14         SECTION 7.29.  Sections 361.003, 361.038, 361.039, 361.040,

175-15   361.041, 361.044, 361.045, 361.047, 361.048, 361.139, 361.190, and

175-16   361.284, and Subsection (e), Section 361.331, Transportation Code,

175-17   are repealed.

175-18          ARTICLE 8.  TRANSITION, EFFECTIVE DATE, AND EMERGENCY

175-19         SECTION 8.01.  (a)  The Texas Turnpike Authority is abolished

175-20   and the Texas Turnpike Authority division of the Texas Department

175-21   of Transportation is created on the effective date of this Act.

175-22   Except as provided by Subsections (b) and (c) of this section, all

175-23   assets, rights, and obligations of the Texas Turnpike Authority are

175-24   transferred to the division.

175-25         (b)  The North Texas Tollway Authority shall succeed to all

 176-1   assets, rights, and other property of the Texas Turnpike Authority

 176-2   located in Collin, Dallas, Denton, or Tarrant County, including all

 176-3   assets and rights that relate to the Dallas North Tollway, the

 176-4   Addison Airport Toll Tunnel, the President George Bush Turnpike,

 176-5   the Mountain Creek Lake Bridge, all existing and proposed

 176-6   extensions to those projects, the Texas Turnpike Authority

 176-7   administration building, and all other facilities, improvements,

 176-8   leaseholds, funds, accounts, and investments related to a project

 176-9   listed in this subsection.

176-10         (c)  The North Texas Tollway Authority shall assume and

176-11   become liable for all duties and obligations of the Texas Turnpike

176-12   Authority related to the assets, rights, and properties transferred

176-13   under Subsection (b) of this section, including contracts and bonds

176-14   secured by the revenues of the assets.  The North Texas Tollway

176-15   Authority is obligated to comply with all the assumed obligations

176-16   to the same extent as the Texas Turnpike Authority.

176-17         (d)  An employee of the Texas Turnpike Authority may elect to

176-18   become an employee of either the Texas Turnpike Authority division

176-19   of the Texas Department of Transportation or the North Texas

176-20   Tollway Authority on the effective date of this Act, subject to the

176-21   employment openings and requirements of those entities.

176-22         (e)  A rule or regulation adopted by the Texas Turnpike

176-23   Authority relating to the operation of a turnpike in Collin,

176-24   Dallas, Denton, or Tarrant County before the effective date of this

176-25   Act that is not inconsistent with this Act remains in effect as a

 177-1   rule or regulation of the North Texas Tollway Authority until

 177-2   superseded by action of that entity.

 177-3         SECTION 8.02.  (a)  As additional consideration for the

 177-4   transfer of the properties described in Subsection (b) of Section

 177-5   8.01 of this Act, the North Texas Tollway Authority shall pay to

 177-6   the Texas Turnpike Authority division of the Texas Department of

 177-7   Transportation a sum determined as provided by Subsection (c) of

 177-8   this section with payments to be made as follows:

 177-9               (1)  one-third of the amount not later than December

177-10   31, 1997;

177-11               (2)  one-third of the amount not later than September

177-12   1, 1998; and

177-13               (3)  the balance not later than August 31, 1999.

177-14         (b)  After December 31, 1997, interest accrues on the unpaid

177-15   portion of amounts owed under Subsection (a) of this section.  The

177-16   applicable rate of interest for each quarter of a fiscal year is

177-17   the average rate of return that money in the general revenue fund

177-18   earned in the preceding quarter, as determined by the comptroller

177-19   of public accounts.

177-20         (c)  The state auditor's office shall, in consultation with

177-21   the comptroller, conduct an audit of the records of the Texas

177-22   Turnpike Authority.  The state auditor may contract with a private

177-23   entity to perform the audit required by this section.  The audit

177-24   must identify all funds in the possession of the Texas Turnpike

177-25   Authority that belong to the Texas Turnpike Authority division of

 178-1   the Texas Department of Transportation.  The audit must be

 178-2   completed not later than December 31, 1997, and the authority shall

 178-3   make any payment required to the department not later than August

 178-4   31, 1999.  The payment is the amount determined by the audit to be

 178-5   in excess of funds required for compliance with all bond

 178-6   resolutions, bond indentures, credit agreements, and all other

 178-7   agreements assumed by the authority and that reserves held by the

 178-8   authority as required under or in connection with the resolutions,

 178-9   indentures, credit agreements, and other agreements are maintained

178-10   at a level consistent with the Texas Turnpike Authority's

178-11   historical practices.  In determining the payments to be made under

178-12   this subsection, the state auditor shall ensure that following the

178-13   payment, the authority is in financial compliance with all bond

178-14   resolutions, bond indentures, credit agreements, and all other

178-15   agreements assumed by the authority and that reserves held by the

178-16   authority as required under or in connection with the resolutions,

178-17   indentures, credit agreements, and other agreements are maintained

178-18   at a level consistent with the Texas Turnpike Authority's

178-19   historical practices.

178-20         (d)  Not later than October 1, 1997, as additional

178-21   consideration for the transfer of the properties described in

178-22   Subsection (b) of Section 8.01 of this Act, the North Texas Tollway

178-23   Authority shall distribute the proceeds, as determined by

178-24   subtracting the deferred study costs from the assets, of the Texas

178-25   Turnpike Authority feasibility study fund on the effective date of

 179-1   this Act as follows:

 179-2               (1)  all proceeds necessary to pay contract commitments

 179-3   for feasibility studies for Laredo Bridge Number IV, Anzalduas

 179-4   Bridge, Port of Brownsville Bridge, United States Highway 183A,

 179-5   State Highway 45/Loop 1, and State Highway 130, but not less than

 179-6   $1.845 million, shall be distributed to the department for deposit

 179-7   in the special account created by Subsection (b) of Section 8.06 of

 179-8   this Act;

 179-9               (2)  all proceeds necessary to pay contract commitments

179-10   for feasibility studies other than those listed in Subdivision (1)

179-11   of this subsection that were under contract as of the financial

179-12   statements of the Texas Turnpike Authority on January 31, 1997,

179-13   shall be distributed to the North Texas Tollway Authority; and

179-14               (3)  any remaining proceeds shall be distributed to the

179-15   Texas Department of Transportation for deposit in the special

179-16   account created by Subsection (b) of Section 8.06 of this Act.

179-17         SECTION 8.03.  The North Texas Tollway Authority is a

179-18   successor agency to the Texas Turnpike Authority for all purposes,

179-19   including for the purpose of Section 52-b, Article III, Texas

179-20   Constitution, concerning all assets, rights, other property,

179-21   duties, and obligations transferred to the authority under

179-22   Subsection (b) of Section 8.01 of this Act.  The Texas Department

179-23   of Transportation is a successor to the Texas Turnpike Authority

179-24   for all purposes concerning assets, rights, other property, duties,

179-25   and obligations not transferred to the North Texas Tollway

 180-1   Authority under Subsection (b) of Section 8.01 of this Act.  Any

 180-2   existing agreement by and between the Texas Turnpike Authority and

 180-3   the state, the Texas Transportation Commission, the Texas

 180-4   Department of Transportation, the Federal Highway Administration,

 180-5   the United States Department of Transportation, any other federal

 180-6   or state governmental entity, or any local governmental entity that

 180-7   pertains to an asset, right, or obligation transferred to the North

 180-8   Texas Tollway Authority under this Act is binding on, benefits, and

 180-9   is fully enforceable by and against the North Texas Tollway

180-10   Authority as successor to the Texas Turnpike Authority.

180-11         SECTION 8.04.  The changes in law made by this Act in the

180-12   qualifications of members of the Texas Transportation Commission or

180-13   the Texas Motor Vehicle Commission do not affect the entitlement of

180-14   a member serving on one of those commissions before September 1,

180-15   1997, to continue to carry out the functions of the commission for

180-16   the remainder of the member's term.  The changes in law apply only

180-17   to a member appointed on or after September 1, 1997.  This Act does

180-18   not prohibit a person who is a member of the Texas Transportation

180-19   Commission on September 1, 1997, from being reappointed to that

180-20   commission if the person has the qualifications required for a

180-21   member under Chapter 201, Transportation Code, as amended by this

180-22   Act.  This Act does not prohibit a person who is a member of the

180-23   Texas Motor Vehicle Commission on September 1, 1997, from being

180-24   reappointed to that commission if the person has the qualifications

180-25   required for a member under the Texas Motor Vehicle Commission Code

 181-1   (Article 4413(36), Vernon's Texas Civil Statutes), as amended by

 181-2   this Act.

 181-3         SECTION 8.05.  (a)  The governor shall appoint the six

 181-4   directors to the board of directors of the Texas Turnpike Authority

 181-5   division of the Texas Department of Transportation for initial

 181-6   terms as follows:  two to serve terms expiring February 15, 1999,

 181-7   two to serve terms expiring February 15, 2001, and two to serve

 181-8   terms expiring February 15, 2003.

 181-9         (b)  Until a majority of the board of directors of the Texas

181-10   Turnpike Authority division of the Texas Department of

181-11   Transportation has been appointed and has qualified, the members of

181-12   the board of directors of the Texas Turnpike Authority serving

181-13   immediately before the effective date of this section shall

181-14   exercise the authority granted to the board of directors of the

181-15   Texas Turnpike Authority division of the Texas Department of

181-16   Transportation.  When a majority of the members of the board of

181-17   directors of the Texas Turnpike Authority division of the Texas

181-18   Department of Transportation has been appointed and has qualified

181-19   and until all appointees have taken office, a quorum of the board

181-20   is a majority of the number of directors who have qualified.

181-21         SECTION 8.06.  (a)  The Texas Department of Transportation

181-22   shall remit to the comptroller of public accounts all money and

181-23   other funds received by the department as a result of the abolition

181-24   of the Texas Turnpike Authority and the creation of the Texas

181-25   Turnpike Authority division of the department, including all funds

 182-1   payable under Section 8.02 of this article and any money received

 182-2   for a feasibility study under Subchapter E, Chapter 361,

 182-3   Transportation Code.

 182-4         (b)  The comptroller of public accounts shall deposit money

 182-5   received from the Texas Department of Transportation under this

 182-6   section to the credit of a special account in the general revenue

 182-7   fund.

 182-8         (c)  Subsection (a) of this section does not apply to money

 182-9   or other funds transferred to the North Texas Tollway Authority.

182-10         SECTION 8.07.  This Act takes effect September 1, 1997.

182-11         SECTION 8.08.  The importance of this legislation and the

182-12   crowded condition of the calendars in both houses create an

182-13   emergency and an imperative public necessity that the

182-14   constitutional rule requiring bills to be read on three several

182-15   days in each house be suspended, and this rule is hereby suspended.

                                                                S.B. No. 370

         ________________________________   ________________________________

            President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 370 passed the Senate on

         April 21, 1997, by a viva-voce vote; May 24, 1997, Senate refused

         to concur in House amendments and requested appointment of

         Conference Committee; May 26, 1997, House granted request of the

         Senate; June 1, 1997, Senate adopted Conference Committee Report by

         a viva-voce vote.

                                            _______________________________

                                                Secretary of the Senate

               I hereby certify that S.B. No. 370 passed the House, with

         amendments, on May 21, 1997, by a non-record vote; May 26, 1997,

         House granted request of the Senate for appointment of Conference

         Committee; June 1, 1997, House adopted Conference Committee Report

         by a non-record vote.

                                            _______________________________

                                                Chief Clerk of the House

         Approved:

         ________________________________

                     Date

         ________________________________

                   Governor