H.B. No. 1112

	AN ACT
	relating to the authority and powers of regional mobility
	authorities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 370.003(12) and (14), Transportation
	Code, are amended to read as follows:
	(12)  "Surplus revenue" means revenue that exceeds:
	(A)  an authority's debt service requirements for
	a transportation project, including the redemption or purchase
	price of bonds subject to redemption or purchase as provided in the
	applicable bond proceedings;
	(A-1)  an authority's payment obligations under a
	contract or agreement authorized by this chapter;
	(B)  coverage requirements of a bond indenture for
	a transportation project;
	(C)  costs of operation and maintenance for a
	transportation project;
	(D)  cost of repair, expansion, or improvement of
	a transportation project;
	(E)  funds allocated for feasibility studies; and
	(F)  necessary reserves as determined by the
	authority.
	(14)  "Transportation project" means:
	(A)  a turnpike project;
	(B)  a system;
	(C)  a passenger or freight rail facility,
	including:
	(i)  tracks;
	(ii)  a rail line;
	(iii)  switching, signaling, or other
	operating equipment;
	(iv)  a depot;
	(v)  a locomotive;
	(vi)  rolling stock;
	(vii)  a maintenance facility; and
	(viii)  other real and personal property
	associated with a rail operation;
	(D)  a roadway with a functional classification
	greater than a local road or rural minor collector;
	(E)  a ferry;
	(F)  an airport, other than an airport that on
	September 1, 2005, was served by one or more air carriers engaged in
	scheduled interstate transportation, as those terms were defined by
	14 C.F.R. Section 1.1 on that date;
	(G)  a pedestrian or bicycle facility;
	(H)  an intermodal [intermodel] hub;
	(I)  an automated conveyor belt for the movement
	of freight;
	(J)  a border crossing inspection station;
	(K)  an air quality improvement initiative;
	(L)  a public utility facility;
	(M)  a transit system;
	(M-1)  a parking area, structure, or facility, or
	a collection device for parking fees; [and]
	(N)  if applicable, projects and programs listed
	in the most recently approved state implementation plan for the
	area covered by the authority, including an early action compact;
	and
	(O)  improvements in a transportation
	reinvestment zone designated under Subchapter E, Chapter 222.
	SECTION 2.  Section 370.004(a), Transportation Code, is
	amended to read as follows:
	(a)  The cost of acquisition, construction, improvement,
	extension, or expansion of a transportation project under this
	chapter includes the cost of:
	(1)  the actual acquisition, construction,
	improvement, extension, or expansion of the transportation
	project;
	(2)  the acquisition of real property, rights-of-way,
	property rights, easements, and other interests in real property;
	(3)  machinery and equipment;
	(4)  interest payable before, during, and for not more
	than three years after acquisition, construction, improvement,
	extension, or expansion as provided in the bond proceedings;
	(5)  traffic estimates, revenue estimates, engineering
	and legal services, plans, specifications, surveys, appraisals,
	construction cost estimates, and other expenses necessary or
	incidental to determining the feasibility of the acquisition,
	construction, improvement, extension, or expansion;
	(6)  necessary or incidental administrative, legal,
	and other expenses;
	(7)  compliance with laws, regulations, and
	administrative rulings, including any costs associated with
	necessary environmental mitigation measures;
	(8)  financing;
	(9)  the assumption of debts, obligations, and
	liabilities of an entity relating to a transportation project
	transferred to an authority by that entity; [and]
	(10)  expenses related to the initial operation of the
	transportation project; and
	(11)  payment obligations of an authority under a
	contract or agreement authorized by this chapter in connection with
	the acquisition, construction, improvement, extension, expansion,
	or financing of the transportation project.
	SECTION 3.  Sections 370.033(a), (f), and (g),
	Transportation Code, are amended to read as follows:
	(a)  An authority, through its board, may:
	(1)  adopt rules for the regulation of its affairs and
	the conduct of its business;
	(2)  adopt an official seal;
	(3)  study, evaluate, design, finance, acquire,
	construct, maintain, repair, and operate transportation projects,
	individually or as one or more systems, provided that a
	transportation project that is subject to Subpart C, 23 C.F.R. Part
	450, is:
	(A)  included in the plan approved by the
	applicable metropolitan planning organization; and
	(B)  consistent with the statewide transportation
	plan and the statewide transportation improvement program;
	(4)  acquire, hold, and dispose of property in the
	exercise of its powers and the performance of its duties under this
	chapter;
	(5)  enter into contracts or operating agreements with
	a similar authority, another governmental entity, or an agency of
	the United States, a state of the United States, the United Mexican
	States, or a state of the United Mexican States;
	(6)  enter into contracts or agreements necessary or
	incidental to its powers and duties under this chapter;
	(7)  cooperate and work directly with property owners
	and governmental entities and officials to support an activity
	required to promote or develop a transportation project;
	(8)  employ and set the compensation and benefits of
	administrators, consulting engineers, attorneys, accountants,
	construction and financial experts, superintendents, managers,
	full-time and part-time employees, agents, consultants, and other
	persons as the authority considers necessary or useful;
	(8-a)  participate in the state travel management
	program administered by the comptroller for the purpose of
	obtaining reduced airline fares and reduced travel agent fees,
	provided that the comptroller may charge the authority a fee not to
	exceed the costs incurred by the comptroller in providing services
	to the authority;
	(9)  notwithstanding Sections 221.003 and 222.031 and
	subject to Subsections (j) and (m), apply for, directly or
	indirectly receive and spend loans, gifts, grants, and other
	contributions for any purpose of this chapter, including the
	construction of a transportation project, and receive and spend
	contributions of money, property, labor, or other things of value
	from any source, including the United States, a state of the United
	States, the United Mexican States, a state of the United Mexican
	States, the commission, the department, a subdivision of this
	state, or a governmental entity or private entity, to be used for
	the purposes for which the grants, loans, or contributions are
	made, and enter into any agreement necessary for the grants, loans,
	or contributions;
	(10)  install, construct, or contract for the
	construction of public utility facilities, direct the time and
	manner of construction of a public utility facility in, on, along,
	over, or under a transportation project, or request the removal or
	relocation of a public utility facility in, on, along, over, or
	under a transportation project;
	(11)  organize a corporation under Chapter 431 for the
	promotion and development of transportation projects;
	(12)  adopt and enforce rules not inconsistent with
	this chapter for the use of any transportation project, including
	tolls, fares, or other user fees, speed and weight limits, and
	traffic and other public safety rules, provided that an authority
	must consider the same factors that the Texas Turnpike Authority
	division of the department must consider in altering a prima facie
	speed limit under Section 545.354;
	(13)  enter into leases, operating agreements, service
	agreements, licenses, franchises, and similar agreements with a
	public or private party governing the party's use of all or any
	portion of a transportation project and the rights and obligations
	of the authority with respect to a transportation project;
	(14)  borrow money from or enter into a loan agreement
	or other arrangement with the state infrastructure bank, the
	department, the commission, or any other public or private entity;
	and
	(15)  do all things necessary or appropriate to carry
	out the powers and duties expressly granted or imposed by this
	chapter.
	(f)  An authority and a governmental entity may enter into a
	contract, agreement, interlocal agreement, or other similar
	arrangement under which the authority may plan, design, construct,
	or operate a transportation project on behalf of the governmental
	entity. An authority may enter into a contract or agreement with
	the department under which the authority will plan, develop,
	operate, or maintain a transportation project on behalf of the
	department, subject to the transportation project being in the
	authority's area of jurisdiction. A contract or agreement under
	this subsection may contain terms and conditions as may be approved
	by an authority, including payment obligations of the governmental
	entity and the authority.
	(g)  Payments to be made to an authority under a contract or
	agreement described by Subsection (f) constitute operating
	expenses of the transportation project or system that is to be
	operated under the contract or agreement. The contract or
	agreement may extend for the number of years as agreed to by the
	parties.
	SECTION 4.  Sections 370.071(a) and (b), Transportation
	Code, are amended to read as follows:
	(a)  An authority may pay the expenses of studying the cost
	and feasibility of a transportation project, the design and
	engineering of a transportation project, and any other expenses
	relating to the preparation and issuance of bonds for a proposed
	transportation project by:
	(1)  using legally available revenue derived from an
	existing transportation project;
	(2)  borrowing money and issuing bonds or entering into
	a loan agreement payable out of legally available revenue
	anticipated to be derived from the operation of an existing
	transportation project; [or]
	(3)  pledging to the payment of the bonds or a loan
	agreement legally available revenue anticipated to be derived from
	the operation of transportation projects or revenue legally
	available to the authority from another source; or
	(4)  pledging to the payment of the bonds or a loan
	agreement the proceeds from the sale of other bonds.
	(b)  Money spent under this section for a proposed
	transportation project must be reimbursed to the transportation
	project from which the money was spent from the proceeds of bonds
	issued for the acquisition and construction of the proposed
	transportation project, unless the transportation projects are or
	become part of a system under Section 370.034.
	SECTION 5.  Section 370.072(c), Transportation Code, is
	amended to read as follows:
	(c)  Money in the feasibility study fund may be used only to
	pay the expenses of studying the cost and feasibility of a
	transportation project, the design and engineering of a
	transportation project, and any other expenses relating to:
	(1)  the preparation and issuance of bonds for the
	acquisition and construction of a proposed transportation project;
	(2)  the financing of the improvement, extension, or
	expansion of an existing transportation project; and
	(3)  private participation, as authorized by law, in
	the financing of a proposed transportation project, the refinancing
	of an existing transportation project or system, or the
	improvement, extension, or expansion of a transportation project.
	SECTION 6.  Section 370.073(a), Transportation Code, is
	amended to read as follows:
	(a)  One or more municipalities, counties, or other
	governmental entities, a combination of municipalities, counties,
	and other governmental entities, or a private group or combination
	of individuals in this state may pay all or part of the expenses of
	studying the cost and feasibility of a transportation project, the
	design and engineering of a transportation project, and any other
	expenses relating to:
	(1)  the preparation and issuance of bonds for the
	acquisition or construction of a proposed transportation project by
	an authority;
	(2)  the improvement, extension, or expansion of an
	existing transportation project of the authority; or
	(3)  the use of private participation under applicable
	law in connection with the acquisition, construction, improvement,
	expansion, extension, maintenance, repair, or operation of a
	transportation project by an authority.
	SECTION 7.  Section 370.113(a), Transportation Code, is
	amended to read as follows:
	(a)  The principal of, interest on, and any redemption
	premium on bonds issued by an authority are payable solely from:
	(1)  the revenue of the transportation project for
	which the bonds are issued;
	(2)  payments made under an agreement with the
	commission, the department, or other governmental entity as
	authorized [provided] by this chapter [Subchapter G];
	(3)  money derived from any other source available to
	the authority, other than money derived from a transportation
	project that is not part of the same system or money derived from a
	different system, except to the extent that the surplus revenue of a
	transportation project or system has been pledged for that purpose;
	[and]
	(4)  amounts received under a credit agreement relating
	to the transportation project for which the bonds are issued; and
	(5)  the proceeds of the sale of other bonds.
	SECTION 8.  Section 370.114, Transportation Code, is amended
	to read as follows:
	Sec. 370.114.  EFFECT OF LIEN. (a) A lien on or a pledge of
	revenue from a transportation project under this chapter or on a
	reserve, replacement, or other fund established in connection with
	a bond issued under this chapter or a contract or agreement entered
	into under this chapter:
	(1)  is enforceable at the time of payment for and
	delivery of the bond or on the effective date of the contract or
	agreement;
	(2)  applies to each item on hand or subsequently
	received;
	(3)  applies without physical delivery of an item or
	other act; and
	(4)  is enforceable against any person having a claim,
	in tort, contract, or other remedy, against the applicable
	authority without regard to whether the person has notice of the
	lien or pledge.
	(b)  A copy of any bond resolution shall [is not required to]
	be maintained [recorded except] in the regular records of the
	authority.
	SECTION 9.  Section 370.172, Transportation Code, is amended
	by amending Subsection (b) and adding Subsection (k) to read as
	follows:
	(b)  Tolls, fees, fares, or other charges must be set at
	rates or amounts so that the aggregate of tolls, fees, fares, or
	other charges from an authority's transportation project, together
	with other revenue of the transportation project:
	(1)  provides revenue sufficient to pay:
	(A)  the cost of maintaining, repairing, and
	operating the transportation project; [and]
	(B)  the principal of and interest on any bonds
	issued for the transportation project as those bonds become due and
	payable; and
	(C)  any other payment obligations of an authority
	under a contract or agreement authorized under this chapter; and
	(2)  creates reserves for a purpose listed under
	Subdivision (1).
	(k)  Notwithstanding any other provision of this chapter, an
	authority may pledge all or any part of its revenues and any other
	funds available to the authority to the payment of any obligations
	of the authority under a contract or agreement authorized by this
	chapter.
	SECTION 10.  Section 370.173(c), Transportation Code, is
	amended to read as follows:
	(c)  The authority may use money in the revolving fund to:
	(1)  finance the acquisition, construction,
	maintenance, or operation of a transportation project, including
	the extension, expansion, or improvement of a transportation
	project;
	(2)  provide matching money required in connection with
	any federal, state, local, or private aid, grant, or other funding,
	including aid or funding by or with public-private partnerships;
	(3)  provide credit enhancement either directly or
	indirectly for bonds issued to acquire, construct, extend, expand,
	or improve a transportation project;
	(4)  provide security for or payment of future or
	existing debt for the design, acquisition, construction,
	operation, maintenance, extension, expansion, or improvement of a
	transportation project or system;
	(5)  borrow money and issue bonds, promissory notes, or
	other indebtedness payable out of the revolving fund for any
	purpose authorized by this chapter; and
	(6)  provide for any other reasonable purpose that
	assists in the financing of an authority as authorized by this
	chapter.
	SECTION 11.  Section 370.177, Transportation Code, is
	amended by adding Subsection (l) to read as follows:
	(l)  In addition to the other powers and duties provided by
	this chapter, with regard to its toll collection and enforcement
	powers for its turnpike projects or other toll projects developed,
	financed, constructed, and operated under an agreement with the
	authority or another entity, an authority has the same powers and
	duties as the department under Chapter 228, a county under Chapter
	284, and a regional tollway authority under Chapter 366.
	SECTION 12.  Sections 370.251(a) and (b), Transportation
	Code, are amended to read as follows:
	(a)  Except as provided by Subsection (a-1), the governing
	body of an authority is a board of directors consisting of
	representatives of each county in which a transportation project of
	the authority is located or is proposed to be located. The
	commissioners court of each county that initially forms the
	authority shall appoint at least two directors to the board.
	Additional directors may be appointed to the board at the time of
	initial formation by agreement of the counties creating the
	authority to ensure fair representation of political subdivisions
	in the counties of the authority that will be affected by a
	transportation project of the authority, provided that the number
	of directors must be an odd number. The commissioners court of a
	county that is subsequently added to the authority shall appoint at
	least one director to the board. The governor shall appoint one
	director to the board who shall serve as the presiding officer of
	the board and shall appoint an additional director to the board if
	an appointment is necessary to maintain an odd number of directors
	on the board.
	(b)  The appointment [Unless the commissioners courts] of
	additional directors from a county subsequently added to an [the
	counties of the] authority or from a [unanimously agree otherwise,
	the commissioners court of each] county of an authority that
	contains an operating transportation project of the authority shall
	be by a process unanimously agreed to by the commissioners courts of
	all the counties of the authority [appoint one additional
	director].
	SECTION 13.  Subchapter F, Chapter 370, Transportation Code,
	is amended by adding Section 370.2511 to read as follows:
	Sec. 370.2511.  BOARD OF DIRECTORS: CERTAIN AUTHORITIES.
	(a) This section applies only to an authority created by a
	municipality.
	(b)  The governing body of a municipality may, by a
	resolution approved by at least two-thirds of the members of the
	governing body, establish the governing body as the board of
	directors of an authority.
	(c)  If the board of directors of an authority created by a
	municipality consists of the members of the governing body of the
	municipality, the governor shall appoint an additional director who
	is not a member of the governing body of the municipality and who
	serves as the presiding officer of the board.
	(d)  Each director of a board under this section has equal
	status and may vote.
	(e)  The vote of a majority attending a board meeting is
	necessary for any action taken by a board under this section. If a
	vacancy exists on a board, the majority of directors serving on the
	board is a quorum.
	(f)  The governing body of a municipality that becomes the
	board of an existing authority under this section shall by
	resolution provide for the transfer process that establishes the
	governing body as the board of the authority.
	(g)  If the board of directors of an authority created by a
	municipality consists of the members of the governing body of the
	municipality, Sections 370.251, 370.2515, 370.252, 370.2521,
	370.2522, 370.2523, 370.253, 370.254, and 370.255 do not apply to
	the board, except that, to the extent applicable, those provisions
	apply to the governor's appointee under Subsection (c).
	(h)  This section has no effect if the attorney general
	issues an opinion stating that, notwithstanding the statutory
	authority under this section, the Texas Constitution, the common
	law doctrine of incompatibility, or any other legal principle would
	prohibit a member of the governing body of a municipality from
	serving as a director of an authority.
	(i)  A board under this section is not required to have an odd
	number of directors.
	SECTION 14.  Section 370.303, Transportation Code, is
	amended by amending Subsections (a) and (b) and adding Subsections
	(b-1) and (g) to read as follows:
	(a)  A governmental entity [other than a nonprofit
	corporation] may, consistent with the Texas Constitution, issue
	bonds, notes, or other obligations or enter into and make payments
	under agreements with an authority in connection with the
	financing, acquisition, construction, [to acquire, construct,
	maintain,] or operation of [operate] a transportation project by an
	authority, whether inside or outside the geographic boundaries of
	the governmental entity, including agreements to pay the principal
	of, and interest on, bonds, notes, or other obligations issued by
	the authority and make payments under any related credit
	agreements. The entity may impose and collect taxes to pay the
	interest on the bonds and to provide a sinking fund for the
	redemption of the bonds.
	(b)  In addition to the powers provided by Subsection (a), a
	governmental entity may, to the extent constitutionally permitted,
	agree with an authority to:
	(1)  issue bonds, notes, or other obligations;
	(2)  [,] create:
	(A)  a taxing district;
	(B)  a transportation reinvestment zone under
	Subchapter E, Chapter 222; or
	(C)  an entity to promote economic development;
	(3)  collect and remit to an authority taxes, fees, or
	assessments collected for purposes of developing transportation
	projects;
	(4)  [,] fund public improvements to promote economic
	development;[,] or
	(5)  enter into and make payments under an agreement to
	acquire, construct, maintain, or operate any portion of a
	transportation project of the authority.
	(b-1)  An agreement under Subsection (b) may include a means
	for a local governmental entity to pledge or otherwise provide
	funds for a transportation project that benefits the governmental
	entity to be developed by the authority.
	(g)  An agreement under this section may contain repayment or
	reimbursement obligations of an authority.
	SECTION 15.  Section 370.304, Transportation Code, is
	amended to read as follows:
	Sec. 370.304.  ADDITIONAL AGREEMENTS OF AUTHORITY. An
	authority may enter into any contract, loan agreement, or other
	agreement necessary or convenient to achieve the purposes of this
	subchapter.
	SECTION 16.  Subchapter H, Chapter 370, Transportation Code,
	is amended by adding Section 370.333 to read as follows:
	Sec. 370.333.  VOLUNTARY DISSOLUTION OF AUTHORITY GOVERNED
	BY GOVERNING BODY OF MUNICIPALITY. In addition to the requirements
	of Section 370.331, an authority governed under Section 370.2511
	may not be dissolved unless:
	(1)  the dissolution is approved by a vote of at least
	two-thirds of the members of the governing body;
	(2)  all debts, obligations, and liabilities of the
	authority have been paid and discharged or adequate provision has
	been made for the payment of all debts, obligations, and
	liabilities;
	(3)  there are no suits pending against the authority,
	or adequate provision has been made for the satisfaction of any
	judgment, order, or decree that may be entered against it in any
	pending suit; and
	(4)  the authority has commitments from other
	governmental entities to assume jurisdiction of all authority
	transportation facilities.
	SECTION 17.  Section 370.317(d), Transportation Code, is
	repealed.
	SECTION 18.  This Act takes effect immediately if it
	receives a vote of two-thirds of all the members elected to each
	house, as provided by Section 39, Article III, Texas Constitution.
	If this Act does not receive the vote necessary for immediate
	effect, this Act takes effect September 1, 2011.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 1112 was passed by the House on April
	26, 2011, by the following vote:  Yeas 109, Nays 36, 2 present, not
	voting; that the House refused to concur in Senate amendments to
	H.B. No. 1112 on May 16, 2011, and requested the appointment of a
	conference committee to consider the differences between the two
	houses; and that the House adopted the conference committee report
	on H.B. No. 1112 on May 26, 2011, by the following vote:  Yeas 130,
	Nays 12, 2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 1112 was passed by the Senate, with
	amendments, on May 11, 2011, by the following vote:  Yeas 30, Nays
	1; at the request of the House, the Senate appointed a conference
	committee to consider the differences between the two houses; and
	that the Senate adopted the conference committee report on H.B. No.
	1112 on May 28, 2011, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor