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 1-1                                   AN ACT
 1-2     relating to the participation of the Texas Department of
 1-3     Transportation in the acquisition, construction, maintenance, and
 1-4     operation of toll facilities.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 222.103, Transportation Code, is amended
 1-7     to read as follows:
 1-8           Sec. 222.103.  COST PARTICIPATION.  (a)  The department may
 1-9     participate, by spending money from any available source, in the
1-10     cost of the acquisition, construction, maintenance, or operation of
1-11     a toll facility of a public or private entity on terms and
1-12     conditions established by the commission.  The commission:
1-13                 (1)  may require the repayment of any money spent by
1-14     the department for the cost of a toll facility of a public entity;
1-15     and
1-16                 (2)  shall require the repayment of any money spent by
1-17     the department for the cost of a toll facility of a private
1-18     entity[, including requirements for repayment].
1-19           (b)  Money repaid as required by the commission shall be
1-20     deposited to the credit of the fund from which the expenditure was
1-21     made.  Money deposited as required by this section is exempt from
1-22     the application of Section 403.095, Government Code.
1-23           (c)  A bond or other debt obligation issued by a public or
1-24     private entity to finance the cost of a toll facility in which the
1-25     department participates is an obligation of the issuing entity and
 2-1     is not an obligation of this state.
 2-2           (d)  [An entity receiving cost participation from the
 2-3     department under this section is a successor agency to the Texas
 2-4     Turnpike Authority for the purposes of Section 52-b, Article III,
 2-5     Texas Constitution.]
 2-6           [(c)]  On the request of a member of the legislature, the
 2-7     department shall provide the member a status report on all highway
 2-8     construction projects, by legislative district, that are under
 2-9     contract or awaiting funding.  The report shall include projects
2-10     that would be funded in any manner by state, federal, or toll
2-11     funds.
2-12           (e) [(d)]  On the request of a member of the legislature, not
2-13     later than the 90th day before the date a loan is granted or an
2-14     expenditure is made by the department for a project under this
2-15     section, the department shall notify each member of the legislature
2-16     that represents any part of the area affected by the project of the
2-17     status of the project and how any other project in any other
2-18     district would be affected.
2-19           (f)  This section applies to any participation by the
2-20     department in the cost of a project under Chapter 284, 361, or 366.
2-21           (g)  The commission shall adopt rules to implement Subsection
2-22     (a).
2-23           (h)  Money granted by the department each federal fiscal year
2-24     under this section may not exceed 30 percent of the obligation
2-25     authority under the federal-aid highway program that is distributed
2-26     to this state in that year.
 3-1           (i)  Any project that uses money that is granted or loaned
 3-2     from constitutionally dedicated funds for the construction or
 3-3     maintenance of a project must be let by a competitive bidding
 3-4     procedure in which the contract is awarded to the lowest
 3-5     responsible bidder.
 3-6           (j)  Notwithstanding Subsection (i), the Texas Turnpike
 3-7     Authority division of the department, or a successor agency, may
 3-8     enter into exclusive development agreements on four projects before
 3-9     March 1, 2004.  This subsection expires March 1, 2004.
3-10           SECTION 2.  Subchapter A, Chapter 361, Transportation Code,
3-11     is amended by adding Sections 361.003 and 361.005 to read as
3-12     follows:
3-13           Sec. 361.003.  REGIONAL MOBILITY AUTHORITY.  (a)  The
3-14     commission by order may authorize the creation of a regional
3-15     mobility authority for the purposes of constructing, maintaining,
3-16     and operating a turnpike project in a region of this state.
3-17           (b)  The governing body of a regional mobility authority is a
3-18     board of directors consisting of representatives of political
3-19     subdivisions in each county in which a turnpike project is proposed
3-20     to be located.  The commissioners court of each county of the
3-21     authority shall appoint two directors to the board.  The governor
3-22     shall appoint one director to the board who shall serve as the
3-23     presiding officer of the board.
3-24           (c)  The commissioners court of each county of the authority
3-25     that contains an operating turnpike project shall appoint
3-26     additional directors, as follows:
 4-1                 (1)  if only one county of the authority contains an
 4-2     operating turnpike project, the commissioners court of that county
 4-3     shall appoint two additional directors;
 4-4                 (2)  if two counties of the authority contain an
 4-5     operating turnpike project, the commissioners court of each county
 4-6     shall each appoint one additional director; and
 4-7                 (3)  if more than two counties of the authority contain
 4-8     an operating turnpike project, the commissioners court of each
 4-9     county shall each appoint two additional directors.
4-10           (d)  A regional mobility authority may not construct,
4-11     maintain, or operate a turnpike project in a county that, on
4-12     November 6, 2001:
4-13                 (1)  was part of a regional tollway authority; or
4-14                 (2)  operated a project under Chapter 284.
4-15           (e)  A regional mobility authority:
4-16                 (1)  is a political subdivision of this state for
4-17     purposes of Chapter 101, Civil Practice and Remedies Code;
4-18                 (2)  is subject to Chapter 552, Government Code;
4-19                 (3)  is a state governmental body for purposes of
4-20     Chapter 551, Government Code;
4-21                 (4)  has the powers and duties of a county under
4-22     Subchapter C, Chapter 262, Local Government Code, other than
4-23     Section 262.029 of that subchapter and excepting contracts subject
4-24     to Section 361.231; and
4-25                 (5)  is a local government for purposes of Subchapters
4-26     D and F, Chapter 271, Local Government Code.
 5-1           (f)  The commission may grant or loan funds for the
 5-2     construction, maintenance, or operation of a turnpike project under
 5-3     this section in accordance with the provisions of this chapter or
 5-4     other law.
 5-5           (g)  Each year, if a regional mobility authority determines
 5-6     that it has surplus revenue from turnpike projects, it shall reduce
 5-7     tolls, spend the surplus revenue on other transportation projects
 5-8     in the region in accordance with Subsection (h), or deposit the
 5-9     surplus revenue to the credit of the Texas Mobility Fund.
5-10           (h)  Consistent with other law and commission rule, and in
5-11     accordance with Subsection (g), a regional mobility authority may
5-12     spend surplus revenue on other transportation projects by:
5-13                 (1)  assisting in the financing of a toll or toll-free
5-14     transportation project of a governmental entity; or
5-15                 (2)  with the approval of the commission, constructing
5-16     a toll or toll-free transportation project and, on completion of
5-17     the project, transferring the project to a governmental entity if:
5-18                       (A)  the governmental entity authorizes the
5-19     regional mobility authority to construct the project and agrees to
5-20     assume all liability and responsibility for the maintenance and
5-21     operation of the project upon its transfer; and
5-22                       (B)  the project is constructed in compliance
5-23     with all laws applicable to the governmental entity.
5-24           (i)  The commission by order may convert a segment of the
5-25     free state highway system to a turnpike project and transfer that
5-26     segment to a regional mobility authority if:
 6-1                 (1)  the commission determines that the proposed
 6-2     transfer is an integral part of the region's overall plan to
 6-3     improve mobility in the region; and
 6-4                 (2)  the regional mobility authority agrees to assume
 6-5     all liability and responsibility for the maintenance and operation
 6-6     of the turnpike project on its transfer.
 6-7           (j)  To the extent of a conflict between this section and
 6-8     Section 361.189, this section prevails.
 6-9           (k)  In this section:
6-10                 (1)  "Governmental entity" includes a municipality,
6-11     county, the department, or other public entity authorized to
6-12     construct, maintain, and operate a transportation project within
6-13     the region of a regional mobility authority.
6-14                 (2)  "Surplus revenue" means toll revenue that exceeds
6-15     the regional mobility authority's debt service requirements,
6-16     coverage requirements of any bond indenture, costs of operation and
6-17     maintenance, cost of repair, expansion or improvement of a turnpike
6-18     project, and reserves and reserve funds maintained by the regional
6-19     mobility authority.
6-20                 (3)  "Transportation project" includes a project or
6-21     type of project described by commission rule.
6-22           (l)  The commission shall adopt rules to implement this
6-23     section.
6-24           Sec. 361.005.  TRANSFER OF BOARD'S POWERS AND DUTIES.
6-25     (a)  The powers and duties of the board under this chapter or other
6-26     law are transferred to the commission.
 7-1           (b)  A reference in law to the board is a reference to the
 7-2     commission.
 7-3           SECTION 3.  Subsection (b), Section 361.184, Transportation
 7-4     Code, is amended to read as follows:
 7-5           (b)  The board may transfer, or direct the authority to
 7-6     transfer, into the project revolving fund money from any
 7-7     permissible source, including:
 7-8                 (1)  money from a surplus fund established for a
 7-9     turnpike project if the remainder of the surplus fund is not less
7-10     than any minimum amount required by the trust agreement to be
7-11     retained for that project;
7-12                 (2)  money received under Subchapter I or from a
7-13     transfer of a turnpike project under Subchapter H;
7-14                 (3)  money received [advances] from the state highway
7-15     fund [if the advances are repaid as required by Section 52-b,
7-16     Article III, Texas Constitution]; and
7-17                 (4)  contributions or assistance from the United
7-18     States, another state, a political subdivision of this state, the
7-19     United Mexican States, or a political subdivision of the United
7-20     Mexican States.
7-21           SECTION 4.  Section 361.191, Transportation Code, is amended
7-22     to read as follows:
7-23           Sec. 361.191.  EXPENDITURE OF MONEY AUTHORIZED BY DEPARTMENT
7-24     OF TRANSPORTATION.  (a)  The Texas Department of Transportation may
7-25     provide for the expenditure of money for the cost of the
7-26     acquisition, construction, maintenance, or operation of a turnpike
 8-1     project by the authority.  The department may require the authority
 8-2     to repay money provided under this section from toll revenue or
 8-3     other sources on terms established by the commission.
 8-4           (b)  Money repaid as required by the department shall be
 8-5     deposited to the credit of the fund from which the money was
 8-6     provided.  Money deposited as required by this section is exempt
 8-7     from the application of Section 403.095, Government Code. [If money
 8-8     from the state highway fund is spent under this section, the fund
 8-9     shall be repaid from tolls or other turnpike revenue.]
8-10           SECTION 5.  Subsection (b), Section 366.174, Transportation
8-11     Code, is amended to read as follows:
8-12           (b)  An authority may transfer into its revolving fund money
8-13     from any permissible source, including:
8-14                 (1)  money from a turnpike project if the transfer does
8-15     not diminish the money available for the project or the system, if
8-16     any, of which it is a part to less than an amount required to be
8-17     retained by the bond proceedings pertaining to the project or
8-18     system;
8-19                 (2)  money received by the authority from any source
8-20     and not otherwise committed, including money from the transfer of a
8-21     turnpike project or system or sale of authority assets;
8-22                 (3)  money received from the state highway fund
8-23     [advances authorized under Section 52-b, Article III, Texas
8-24     Constitution]; and
8-25                 (4)  contributions, loans, grants, or assistance from
8-26     the United States, another state, a political subdivision of this
 9-1     state, a foreign governmental entity, including the United Mexican
 9-2     States or a state of the United Mexican States, a local
 9-3     governmental entity, any private enterprise, or any person.
 9-4           SECTION 6.  Subsection (c), Section 366.301, Transportation
 9-5     Code, is amended to read as follows:
 9-6           (c)  An obligation or expense incurred by the commission or
 9-7     department under this section is a part of the cost of the turnpike
 9-8     project for which the obligation or expense was incurred.  The
 9-9     commission or department may require money contributed by the
9-10     commission or department [Money from the state highway fund spent]
9-11     under this section to [must] be repaid from tolls or other revenue
9-12     of the turnpike project or system on which the money [from the
9-13     state highway fund] was spent [expended].  Money repaid as required
9-14     by the commission or department shall be deposited to the credit of
9-15     the fund from which the contribution was made.  Money deposited as
9-16     required by this section is exempt from the application of Section
9-17     403.095, Government Code.
9-18           SECTION 7.  The following sections of the Transportation Code
9-19     are repealed:
9-20                 (1)  Subsections (b) through (e), Section 361.031;
9-21                 (2)  Subsection (g), Section 361.031;
9-22                 (3)  Sections 361.032 through 361.037; and
9-23                 (4)  Sections 362.004 and 362.005.
9-24           SECTION 8.  (a)  Section 222.103, Transportation Code, as
9-25     amended by this Act, applies only to cost participation by the
9-26     Texas Department of Transportation in the acquisition,
 10-1    construction, maintenance, or operation of a toll facility that
 10-2    occurs on or after the effective date of this Act.  Cost
 10-3    participation by the Texas Department of Transportation in the
 10-4    acquisition, construction, maintenance, or operation of a toll
 10-5    facility under Section 222.103, Transportation Code, that occurred
 10-6    before the effective date of this Act is governed by Section
 10-7    222.103 of that code, including any requirement of repayment, as it
 10-8    existed immediately before the effective date of this Act, and the
 10-9    former law is continued in effect for that purpose.
10-10          (b)  Subsection (b), Section 361.184, Transportation Code, as
10-11    amended by this Act, applies only to a transfer of money from the
10-12    state highway fund by or at the direction of the board of directors
10-13    of the Texas Turnpike Authority division of the Texas Department of
10-14    Transportation under Section 361.184, Transportation Code, that
10-15    occurs on or after the effective date of this Act.  A transfer of
10-16    money from the state highway fund under Section 361.184,
10-17    Transportation Code, that occurred before the effective date of
10-18    this Act is governed by Section 361.184 of that code, including any
10-19    requirement of repayment, as it existed immediately before the
10-20    effective date of this Act, and the former law is continued in
10-21    effect for that purpose.
10-22          (c)  Section 361.191, Transportation Code, as amended by this
10-23    Act, applies only to an expenditure of money for the acquisition,
10-24    construction, maintenance, or operation of a turnpike project that
10-25    is provided by the Texas Department of Transportation under that
10-26    section on or after the effective date of this Act.  An expenditure
 11-1    of money by the Texas Department of Transportation under Section
 11-2    361.191, Transportation Code, that was provided before the
 11-3    effective date of this Act is governed by Section 361.191 of that
 11-4    code, including any requirement of repayment, as it existed
 11-5    immediately before the effective date of this Act, and the former
 11-6    law is continued in effect for that purpose.
 11-7          (d)  Subsection (b), Section 366.174, Transportation Code, as
 11-8    amended by this Act, applies only to the transfer of money received
 11-9    from the state highway fund by a regional tollway authority to the
11-10    authority's revolving fund under Section 366.174 of that code on or
11-11    after the effective date of this Act.  A transfer of money to the
11-12    revolving fund of the authority under Section 366.174,
11-13    Transportation Code, that occurred before the effective date of
11-14    this Act is governed by Section 366.174 of that code, including any
11-15    requirement of repayment, as it existed immediately before the
11-16    effective date of this Act, and the former law is continued in
11-17    effect for that purpose.
11-18          (e)  Subsection (c), Section 366.301, Transportation Code, as
11-19    amended by this Act, applies only to an obligation or expense
11-20    incurred by the Texas Transportation Commission or the Texas
11-21    Department of Transportation under Section 366.301 of that code on
11-22    or after the effective date of this Act.  An obligation or expense
11-23    incurred by the Texas Transportation Commission or the Texas
11-24    Department of Transportation under Section 366.301, Transportation
11-25    Code, imposed before the effective date of this Act is governed by
11-26    Section 366.301 of that code, including any requirement of
 12-1    repayment, as it existed immediately before the effective date of
 12-2    this Act, and the former law is continued in effect for that
 12-3    purpose.
 12-4          SECTION 9.  (a)  This Act takes effect:
 12-5                (1)  on the date on which the constitutional amendment
 12-6    proposed by S.J.R. No. 16, 77th Legislature, Regular Session, 2001,
 12-7    takes effect; and
 12-8                (2)  only if S.B. No. 4, 77th Legislature, Regular
 12-9    Session, 2001, is enacted and becomes law.
12-10          (b)  If the constitutional amendment proposed by S.J.R. No.
12-11    16 is not approved by the voters, or if S.B. No. 4 does not become
12-12    law, this Act has no effect.
12-13          SECTION 10.  (a)  On the effective date of this Act, the
12-14    board of directors of the Texas Turnpike Authority division of the
12-15    Texas Department of Transportation is abolished.  On that date, all
12-16    powers, duties, obligations, rights, contracts, leases, records,
12-17    employees, and real or personal property of the board are
12-18    transferred to the Texas Transportation Commission.  Unspent and
12-19    unobligated appropriations and other funds under the control of the
12-20    board shall be transferred to the Texas Transportation Commission.
12-21    Before that date, the board with the agreement of the commission
12-22    may transfer any records, employees, or real or personal property
12-23    of the board to the commission in preparation for the transfer
12-24    provided for in this section.
12-25          (b)  The abolishment of the board of directors of the Texas
12-26    Turnpike Authority division of the Texas Department of
 13-1    Transportation does not affect the validity of a right, privilege,
 13-2    or obligation accrued, a contract or acquisition made, any
 13-3    liability incurred, a permit or license issued, a penalty,
 13-4    forfeiture, or punishment assessed, a rule adopted, a proceeding,
 13-5    investigation, or remedy begun, a decision made, or other action
 13-6    taken by or in connection with the board.
 13-7          (c)  All rules, policies, procedures, and decisions of the
 13-8    board of directors of the Texas Turnpike Authority division of the
 13-9    Texas Department of Transportation are continued in effect as
13-10    rules, policies, procedures, and decisions of the Texas
13-11    Transportation Commission until superseded by a rule or other
13-12    appropriate action of the commission.
13-13          (d)  Any action or proceeding before the board of directors
13-14    of the Texas Turnpike Authority division of the Texas Department of
13-15    Transportation is transferred without change in status to the Texas
13-16    Transportation Commission, and the commission assumes, without a
13-17    change in status, the position of the board in any action or
13-18    proceeding to which the board is a party.
13-19          (e)  If S.B. No. 4, 77th Legislature, Regular Session, 2001,
13-20    is enacted and becomes law, all unspent and unobligated
13-21    appropriations and other funds transferred to the Texas
13-22    Transportation Commission under Subsection (a) of this section
13-23    shall be transferred to the Texas Mobility Fund on the effective
13-24    date of S.B. No. 4.
                                                                S.B. No. 342
            _______________________________     _______________________________
                President of the Senate              Speaker of the House
                  I hereby certify that S.B. No. 342 passed the Senate on
            March 1, 2001, by a viva-voce vote; May 21, 2001, Senate refused to
            concur in House amendments and requested appointment of Conference
            Committee; May 22, 2001, House granted request of the Senate;
            May 27, 2001, Senate adopted Conference Committee Report by a
            viva-voce vote.
                                                _______________________________
                                                    Secretary of the Senate
                  I hereby certify that S.B. No. 342 passed the House, with
            amendments, on May 18, 2001, by a non-record vote; May 22, 2001,
            House granted request of the Senate for appointment of Conference
            Committee; May 27, 2001, House adopted Conference Committee Report
            by a non-record vote.
                                                _______________________________
                                                    Chief Clerk of the House
            Approved:
            _______________________________
                         Date
            _______________________________
                       Governor

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