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[Editor's Note: This is the complete text of House Bill No. 3588. Text color has been changed by CorridorWatch.org for emphasis. ]
H.B. No. 3588 AN ACT relating to the construction, acquisition, financing, maintenance, management, operation, ownership, and control of transportation facilities and the progress, improvement, policing, and safety of transportation in the state; imposing criminal penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: ARTICLE 1. TRANS-TEXAS CORRIDOR SECTION 1.01. Subtitle B, Title 6, Transportation Code, is amended by adding Chapter 227 to read as follows: CHAPTER 227. TRANS-TEXAS CORRIDOR SUBCHAPTER A. GENERAL PROVISIONS Sec. 227.001. DEFINITIONS. In this chapter: (1) "Bond" has the meaning assigned by Title 9, Government Code. (2) "Construction" includes extension, expansion, and improvement. (3) "Credit agreement" has the meaning assigned by Title 9, Government Code. (4) "Facility" means: (A) a state highway; (B) a turnpike; (C) a freight or passenger railroad, including a commuter railroad, intercity railroad, and high-speed railroad; (D) a public utility facility; or (E) any structure that is reasonably necessary for the effective operation of a method of transportation, including an intermodal transfer or staging area, weigh station, inspection station, rest area, service station, restaurant, train or bus station, warehouse, freight interchange, switching yard, maintenance yard, and pipeline pumping station. (4-a) "Facility" does not include a border inspection facility that serves a bridge that had more than 900,000 commercial border crossings during the fiscal year ending August 31, 2002. (5) "Fee" includes any charge, toll, rent, lease payment, user fee, franchise fee, percentage fee, license fee, fare, tariff, or other consideration received in return for the use of: (A) property that is part of the Trans-Texas Corridor; (B) a facility on the Trans-Texas Corridor; or (C) a service that is offered in connection with the Trans-Texas Corridor. (6) "Operation" includes maintenance and repair. (7) "Public utility facility" means: (A) a water, wastewater, natural gas, or petroleum pipeline or associated equipment; (B) an electric transmission or distribution line or associated equipment; or (C) telecommunications, information services, or cable television infrastructure or associated equipment, including fiber optic cable, conduit, and wireless communications equipment. (8) "Trans-Texas Corridor" means the statewide system of facilities designated by the commission under this chapter. (9) "Turnpike" has the meaning assigned to turnpike project under Section 361.001. Sec. 227.002. RULES. The commission may adopt rules and the department may implement procedures and forms as necessary or convenient to implement and administer this chapter.
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Sec. 227.003. APPLICABILITY. (a) All laws governing the financing, design, construction, maintenance, or operation of a highway in the state highway system apply to the financing, design, construction, maintenance, or operation of a highway under this chapter unless in conflict with this chapter. (b) All laws governing the financing, design, construction, maintenance, or operation of a turnpike by the department apply to the financing, design, construction, maintenance, or operation of a turnpike under this chapter unless in conflict with this chapter. (c) This chapter does not apply to real or personal property, facilities, funding, projects, operations, construction, or a project plan of a transportation authority created under Chapter 451, 452, or 460, unless the commission or its designee has signed a written agreement with the transportation authority specifying the terms and conditions under which the transportation authority may participate in the Trans-Texas Corridor. [Sections 227.004-227.010 reserved for expansion] |
SUBCHAPTER B. ESTABLISHMENT
Sec. 227.011. DESIGNATION. The commission shall designate facilities for the Trans-Texas Corridor.
Sec. 227.012. ROUTE SELECTION. The commission shall consider the following criteria when selecting a route for a segment of the Trans-Texas Corridor: (1) current and projected traffic patterns; (2) the safety of motorists; (3) potential risks to persons from spills or accidents of any kind; (4) environmental effects, including the effect on air quality; (5) current and projected economic development; (6) the current and projected need for additional transportation options; and (7) system connectivity.
Sec. 227.013. PUBLIC PARTICIPATION. Before designating a route for a segment of the Trans-Texas Corridor, the department shall hold at least one public hearing in each county through which the segment may pass.
Sec. 227.014. ESTABLISHMENT OF DISCRETE SYSTEMS. (a) If the commission determines that the mobility needs of this state would be most efficiently and economically met by jointly operating two or more facilities as one operational and financial enterprise, it may create a system composed of those facilities. The commission may create more than one system and may combine two or more systems into one system. The commission may finance, construct, and operate an additional facility as an expansion of a system if the commission determines that the facility would most efficiently and economically be constructed and operated if it were a part of the system and that the addition will benefit the system. A system may only include facilities located wholly or partly within the territory of: (1) a metropolitan planning organization; or (2) two adjacent department districts. (b) The revenue of a system must be accounted for separately and may not be commingled with the revenue of a facility that is not a part of the system.
Sec. 227.015. LOCATION OF FACILITIES. Notwithstanding any other law, including Chapter 181, Utilities Code, Chapter 402, Local Government Code, and Section 49.220, Water Code, the department may: (1) specify the location of any facility on the Trans-Texas Corridor; (2) direct the time and manner of construction of a public utility facility on the Trans-Texas Corridor; and (3) direct the time and manner of construction or operation of any other facility on the Trans-Texas Corridor.
[Sections 227.016-227.020 reserved for expansion]
SUBCHAPTER C. DEVELOPMENT AND OPERATION
Sec. 227.021. AUTHORITY OF DEPARTMENT. (a) The department may: (1) construct or operate any facility as part of the Trans-Texas Corridor; or (2) authorize a governmental or private entity to construct or operate a facility that is part of the Trans-Texas Corridor. (b) A governmental entity may only construct or operate a facility that is located in the geographic area within which that entity is authorized to operate. (c) Subject to Section 227.029, the department may grant or deny access to the Trans-Texas Corridor; provided, however, the department shall grant the owner of a public utility facility that is located on the Trans-Texas Corridor reasonable access to operate and maintain the owner's public utility facility. The department may not discriminate unreasonably among users or potential users of a facility. (d) The department may construct or contract for the construction of public utility facilities. However, the department may not directly or indirectly provide water, wastewater, natural gas, petroleum pipeline, electric transmission, electric distribution, telecommunications, information, or cable television services. (e) Nothing in this chapter, or any contractual right obtained under a contract with the department authorized by this chapter, supersedes or renders ineffective any provision of another law applicable to the owner or operator of a public utility facility, including any provision of the Utilities Code regarding licensing, certification, and regulatory jurisdiction of the Public Utility Commission of Texas or Railroad Commission of Texas.
Sec. 227.022. PARTICIPATION BY OTHER ENTITIES. (a) A toll or non-toll highway on the Trans-Texas Corridor that is constructed or operated by another entity shall be part of the state highway system. This subsection applies even if the entity constructing or operating the highway is not independently authorized to construct or operate a highway that is part of the state highway system. (b) If the department authorizes another governmental entity to construct or operate a facility on the Trans-Texas Corridor, that entity has each power of the department under this chapter with respect to that facility, including the right to collect fees, except that: (1) any property acquired by the entity shall be held in the name of the state; and (2) the entity may not file a declaration of taking and obtain early possession of real property, unless the entity is a regional mobility authority under Chapter 370. (c) If the department authorizes another governmental entity to construct or operate a facility on the Trans-Texas Corridor, that entity is liable for a claim relating to the Trans-Texas Corridor only to the extent that the department would be liable if it were constructing or operating the facility.
Sec. 227.023. PARTICIPATION BY PRIVATE ENTITIES. (a) To the maximum extent practical and economical, the department shall encourage the participation of private entities in the planning, design, construction, and operation of facilities. (b) The department shall contract with a private entity to operate a railroad using rail facilities owned by the department and may not use department employees to operate a railroad. The department may maintain a rail facility directly or through a private entity. (c) To the extent and in the manner that the department may enter into comprehensive development agreements under Chapter 361 with regard to turnpikes, the department may enter into comprehensive development agreements under this chapter with regard to facilities on the Trans-Texas Corridor. All provisions of Chapter 361 relating to comprehensive development agreements for turnpikes apply to comprehensive development agreements for facilities under this chapter, including provisions relating to the confidentiality of information. Claims arising under a comprehensive development agreement are subject to Section 201.112.
Sec. 227.024. HIGHWAYS. A highway, including a turnpike, on the Trans-Texas Corridor is a part of the state highway system.
Sec. 227.025. VEHICLE SIZE AND WEIGHT LIMITS. (a) The commission may authorize the operation of a vehicle that exceeds the height, length, or gross weight limitations of Subchapter C, Chapter 621, on a segment of a highway on the Trans-Texas Corridor if supported by an engineering and traffic study that includes an analysis of the structural capacity of bridges and pavements, current and projected traffic patterns and volume, and potential effects on public safety. (b) This section does not authorize the operation of a vehicle that exceeds a maximum axle weight authorized by Chapter 621, 622, or 623.
Sec. 227.026. ACQUISITION OF PERSONAL PROPERTY. (a) The department may acquire personal property, except rolling stock, under a conditional sales contract, lease, equipment trust certificate, or other form of contract or trust agreement for use in connection with a facility. (b) The department may enter into an agreement with a rail operator, transportation common carrier, transportation system, or any other entity for the common use of any facility. (c) The department may enter into agreements with a public or private utility, the owner or operator of a communications system, utility common carrier, or transportation system, or another entity for the common use of a public utility facility in the Trans-Texas Corridor if the department has adopted rules requiring each common user to avoid damaging any equipment that the common user does not own or operate.
Sec. 227.027. ENVIRONMENTAL REVIEW. (a) The department shall conduct or approve each environmental evaluation or study required for an activity associated with the Trans-Texas Corridor. This subsection does not prohibit an owner of a public utility facility or a proposed public utility facility from conducting any necessary environmental evaluation for the public utility facility. The department is entitled to review and give final approval regarding the sufficiency of any environmental evaluation conducted for a facility within the Trans-Texas Corridor. (b) The commission may allocate responsibilities for conducting environmental evaluations or studies or preparing environmental documentation among entities involved in the construction or operation of any facility of the Trans-Texas Corridor.
Sec. 227.028. ENVIRONMENTAL MITIGATION. (a) The department may acquire, maintain, hold, restore, enhance, develop, or redevelop property for the purpose of mitigating a past, present, or future adverse environmental effect arising from the construction or operation of any part of the Trans-Texas Corridor without regard to whether the need for mitigation is established for a particular project. (b) The department may contract with a governmental or private entity to maintain, control, hold, restore, enhance, develop, or redevelop property for the mitigation of a past, present, or future adverse environmental effect arising from the construction or operation of any part of the Trans-Texas Corridor without regard to whether the need for mitigation has already been established for a particular project. (c) If authorized by the applicable regulatory authority, the department may pay a sum of money to an appropriate governmental or private entity instead of acquiring or managing property for the mitigation of a past, present, or future adverse environmental effect arising from construction or operation of any part of the Trans-Texas Corridor without regard to whether the need for mitigation has already been established for a particular project.
Sec. 227.029. RELOCATION OF EXISTING FACILITIES. (a) The department may construct a grade separation at an intersection of a Trans-Texas Corridor facility with another facility and may change the line or grade of a facility to accommodate the facility to the design of a grade separation. The department shall pay the cost of a grade separation and any damage incurred in changing a line or grade of a facility. (b) If the department finds it necessary to change the location of a portion of a facility, it shall reconstruct the facility at the location the department determines to be most favorable. The reconstructed facility must be of substantially the same type and in as good condition as the original facility. The department shall determine and pay the cost of the reconstruction and any damage incurred in changing the location of a facility. (c) Except as provided in Subsections (d)-(l), this section does not apply to the conversion of any highway that is a part of the state highway system to a highway of the Trans-Texas Corridor. (d) Notwithstanding Subsections (a) and (b), this subsection and Subsections (e)-(i) govern the relocation of a public utility facility. If the department determines that a public utility facility must be relocated, including a relocation caused by the conversion of any road that is part of the state highway system to a highway on the Trans-Texas Corridor, the utility and the department shall negotiate in good faith to establish reasonable terms and conditions concerning the responsibilities of the parties with regard to sharing of information about the project and the planning and implementation of any necessary relocation of the public utility facility. (e) The department shall use its best efforts to provide an affected utility with plans and drawings of the project that are sufficient to enable the utility to develop plans for, and determine the cost of, the necessary relocation of the public utility facilities. If the department and the affected utility enter into an agreement after negotiations under Subsection (d), the terms and conditions of the agreement govern the relocation of each public utility facility covered by the agreement. (f) If the department and an affected utility do not enter into an agreement under Subsection (d), the department shall provide to the affected utility: (1) written notice of the department's determination that the public utility facility must be removed; (2) a final plan for relocation of the public utility facility; and (3) reasonable terms and conditions for an agreement with the utility for the relocation of the public utility facility. (g) Not later than the 90th day after the date a utility receives the notice from the department, including the plan and agreement terms and conditions under Subsection (f), the utility shall enter into an agreement with the department that provides for the relocation. (h) If the utility fails to enter into an agreement within the 90-day period under Subsection (g), the department may relocate the public utility facility at the sole cost and expense of the utility less any reimbursement of costs that would have been payable to the utility under applicable law. A relocation by the department under this subsection shall be conducted in full compliance with applicable law, using standard equipment and construction practices compatible with the utility's existing facilities, and in a manner that minimizes disruption of utility service. (i) The 90-day period under Subsection (g) may be extended: (1) by mutual agreement between the department and the utility; or (2) for any period during which the utility is negotiating in good faith with the department to relocate its facility. (j) Notwithstanding Subsections (d)-(i), an owner of a public utility facility is not obligated to relocate its public utility facility on the Trans-Texas Corridor if it determines that another location is feasible. (k) If a public utility facility is relocated on the Trans-Texas Corridor, the department shall grant the owner reasonable entry and access to operate and maintain that owner's public utility facility. (l) Subject to Subsections (a)-(k), the department, as part of the cost of the project, shall pay the cost of the relocation, removal, or grade separation of a public utility facility under Subsections (d)-(i).
Sec. 227.030. UNAUTHORIZED USE. The department may remove unauthorized personal property, including a vehicle, from the Trans-Texas Corridor without notice and at the owner's expense. Removed property may be stored until claimed by the owner. If a removed motor vehicle is not claimed by the owner within 72 hours after the date and time of removal, it shall be considered abandoned within the meaning of Chapter 683. The department and its employees are not liable for damage to property that is removed from the Trans-Texas Corridor under this section. Any removal or relocation of a public utility facility is governed by Sections 227.029(d)-(i) and is not governed by this section.
Sec. 227.031. EXCLUSIVE LANES. The department may dedicate one or more lanes of a highway on the Trans-Texas Corridor to the exclusive use of designated classes of vehicles.
[Sections 227.032-227.040 reserved for expansion]
SUBCHAPTER D. RIGHT-OF-WAY ACQUISITION
Sec. 227.041. POWERS AND PROCEDURES. (a) Except as otherwise provided by this subchapter, the commission has the same powers and duties relating to the condemnation and acquisition of real property for a facility of the Trans-Texas Corridor that the commission and the department have relating to the condemnation or purchase of real property under Subchapter D, Chapter 361, and Section 361.233 for a turnpike project. The commission may purchase an option to purchase property, other than real property, a property right, or a right-of-way used for a public utility facility, that the commission is considering for possible use as part of the Trans-Texas Corridor even if it has not been finally decided that the Trans-Texas Corridor will be located on that property. An option to purchase may be purchased along alternative potential routes for the Trans-Texas Corridor even if only one of those potential routes will be selected as the final route. (b) An interest in real property or a property right is necessary or convenient for the construction or operation of a facility if it is located in or contiguous to an existing or planned segment of the Trans-Texas Corridor and if its acquisition will further the primary purposes of the Trans-Texas Corridor. Primary purposes include: (1) providing right-of-way or a location for a facility; (2) providing land for mitigation of adverse environmental effects; (3) providing buffer zones for scenic or safety purposes; (4) allowing for possible future expansion of any facility; and (5) generating revenue, directly or indirectly, for use in constructing or operating the Trans-Texas Corridor from or for ancillary facilities that directly benefit users of the Trans-Texas Corridor. (c) Unless in conflict with this chapter, all laws governing the acquisition of right-of-way for a state highway apply to the acquisition of right-of-way for the Trans-Texas Corridor. Sections 203.056, 203.057, and 203.058 apply to an acquisition by the department from a state agency. Compensation to a state agency under those sections shall be reasonable and may take the form of a single payment, a participation payment under Section 227.042, or both a single payment and a participation payment.
Sec. 227.042. CORRIDOR PARTICIPATION PAYMENT FOR REAL PROPERTY. (a) As an alternative to paying for an interest in real property or a real property right with a single fixed payment, the department may, with the owner's consent, pay the owner by means of a corridor participation payment. (b) A right to receive a corridor participation payment under this section is subordinate to any right to receive a fee as payment on the principal of or interest on a bond that is issued for the construction of the applicable segment of the Trans-Texas Corridor. (c) In this section, "corridor participation payment" means an intangible legal right to receive a percentage of one or more identified fees related to a segment of the Trans-Texas Corridor.
Sec. 227.043. PURCHASE AND LEASEBACK. The department may acquire real property for the Trans-Texas Corridor and immediately lease it back to the former owner for a fixed or indefinite term.
Sec. 227.044. RIGHT OF ENTRY TO PROPERTY WITH PUBLIC UTILITY FACILITY. To ensure the safety and convenience of the public, the department shall, when entering any real property, water, or premises on which is located a public utility facility: (1) comply with applicable industry standard safety codes and practices; and (2) give the owner or operator of the facility not less than 10 days' notice before entering the real property, water, or premises.
Sec. 227.045. OTHER GOVERNMENTAL ENTITIES. If the department authorizes another governmental entity to construct or operate a segment of or a facility on the Trans-Texas Corridor, that entity has all the powers and duties of the department under this subchapter, except that the entity: (1) may only construct or operate a facility that is located in the geographic area within which that entity is authorized to operate; and (2) may not file a declaration of taking and obtain early possession of real property.
Sec. 227.046. COST OF RELOCATING PUBLIC UTILITY FACILITY. (a) An owner of a public utility facility holding a certificate of convenience and necessity, certificate of authority, or service provider certificate of authority shall recover from the department its reasonable costs to relocate a public utility facility to accommodate the development or construction of the Trans-Texas Corridor. (b) An owner of a public utility facility is not obligated to relocate the utility facility on the Trans-Texas Corridor if the owner determines that another location is feasible. (c) If a public utility facility is located on the Trans-Texas Corridor, the department shall grant the owner reasonable access to operate and maintain the utility facility in accordance with industry standard safety codes and practices. (d) Relocation of facilities pursuant to this section is subject to the department's reasonable regulations pertaining to public health, safety, and welfare.
[Sections 227.047-227.060 reserved for expansion]
SUBCHAPTER E. FINANCING
Sec. 227.061. PERMISSIBLE SOURCES OF FUNDING. Subject to Section 227.062, the department may use any available source of funding in acquiring property for, constructing, and operating the Trans-Texas Corridor, including: (1) an appropriation from the state highway fund for construction or maintenance of highways; (2) a fee; (3) proceeds from a bond secured by fees; (4) proceeds from an obligation secured by the Texas Mobility Fund; (5) a donation, in kind or in cash; (6) a private investment; (7) money transferred from the state infrastructure bank; (8) a contribution from or contractual obligation of a governmental entity; and (9) a loan, grant, or reimbursement from the federal government, subject to Section 227.062.
Sec. 227.062. LIMITATIONS ON DEPARTMENT FINANCIAL PARTICIPATION. (a) Each fiscal year, the total amount disbursed by the department out of the state highway fund for the following activities on the Trans-Texas Corridor may not exceed 20 percent of the obligation authority under the federal-aid highway program that is distributed to this state in that year: (1) acquisition of right of way; (2) initial construction of toll and nontoll highways; and (3) grading and bed preparation for non-highway facilities. (b) The limitation under Subsection (a) does not apply to: (1) money spent for: (A) feasibility studies, environmental studies, and preliminary engineering conducted before the initial construction of a facility; or (B) operation and maintenance of a facility; (2) the proceeds of bonds or other public securities issued to pay the cost of a facility if those proceeds are deposited to the credit of the state highway fund; (3) revenue attributable to a facility if that revenue is deposited to the credit of the state highway fund; (4) loans deposited to the credit of the state highway fund; or (5) contributions from a public or private entity that are deposited to the credit of the state highway fund. (c) Each fiscal year, the total amount disbursed by the department out of state and federal funds shall not exceed $25 million for the construction or purchase of non-highway facilities on the Trans-Texas Corridor. This subsection does not apply to funds derived from the issuance of bonds, private investment, donations, the Federal Transit Administration, or the Federal Railroad Administration. This subsection also does not apply to: (1) activities that are subject to the limitation in Subsection (a); and (2) activities described in Subsection (b)(1). (d) The commission may not disburse money out of the state highway fund for the initial construction of a facility of the Trans-Texas Corridor unless the commission finds that the disbursement will reduce traffic congestion to an extent that is comparable to the reduction in traffic congestion that would likely be achieved by spending the same amount of money on the project that is the most reasonable alternative. This subsection does not apply to the disbursement of money out of the state highway fund for environmental studies or for the acquisition of right-of-way. (e) The commission may not disburse money from the state highway fund or the Texas mobility fund to construct a portion of the Trans-Texas Corridor unless it would replace or supplement a project identified in the department's unified transportation program or a transportation corridor identified in the statewide transportation plan. (f) The commission may not authorize the construction of rail facilities unless it finds that the construction will reduce congestion and improve mobility. (g) The commission may not disburse money from the state highway fund that is dedicated under Sections 7-a and 7-b, Article VIII, Texas Constitution, for activities on the Trans-Texas Corridor if as a result, the amount expended each year from those funds on the addition of capacity to the state highway system would be less than the average annual expenditure from those funds for the addition of capacity to the state highway system over the previous five years. This subsection does not apply to past expenditures for activities on the Trans-Texas Corridor.
Sec. 227.063. FINANCING OF FACILITIES AND SYSTEMS. (a) The commission and the department have the same powers and duties relating to the financing of a facility or a system established under Section 227.014 as the commission and the department have under Subchapter E, Chapter 361, relating to the financing of a turnpike project, including the ability to deposit the proceeds of bonds or other obligations and to pledge, encumber, and expend such proceeds and revenues as provided by Chapter 361. (b) The powers held by the commission and the department include the powers to: (1) authorize the issuance of bonds to pay all or part of the cost of a facility or system or to pay for all or part of the cost of a facility or system that will become a part of another system; (2) maintain separate accounts for bond proceeds and the revenues of a facility or system, and pledge those revenues and proceeds to the payment of bonds or other obligations issued or entered into with respect to the facility or system; (3) impose a toll or other fee for the use of a facility or system; and (4) obtain from another source the fees and other revenue necessary to pay all or part of the principal and interest on bonds issued under this chapter. (c) For purposes of this section, a reference in Subchapter E, Chapter 361 to: (1) a turnpike project means a facility or system; and (2) revenue includes a fee established under this chapter. (d) The proceeds of bonds issued under this chapter may be held in trust by a banking institution chosen by the department or, at the discretion of the department, in trust in the state treasury outside the general revenue fund and the state highway fund.
Sec. 227.064. LOANS AND OTHER FUNDING. The department may borrow money from the United States or use money in the state infrastructure bank created under Subchapter D, Chapter 222, to fund the construction or operation of a facility under this chapter. Money borrowed under this section may be evidenced by the issuance of bonds.
[Sections 227.065-227.080 reserved for expansion]
SUBCHAPTER F. REVENUE
Sec. 227.081. FEES. (a) Notwithstanding any other law, including Chapters 161, 162, 163, and 181, Utilities Code, Chapter 402, Local Government Code, and Chapter 49, Water Code, and except as provided in Subsection (e), the department may require a person, including a governmental or private entity, to pay a fee as a condition of using any part of the Trans-Texas Corridor. (b) The commission may establish fees to be imposed by the department under this chapter. Fees may be set as absolute amounts, as a percentage of revenue, as a percentage of actual use or throughput, as a designated portion or percentage of initial facility funding, or on any other reasonable basis. Subject to approval by a body having jurisdiction and authority to establish a tariff, the commission may establish joint fees and divisions of fees. (c) A fee may exceed the department's costs, but the commission may not establish a fee that is prohibitive or that discriminates unreasonably among users or potential users of a facility. (d) In establishing a fee or the amount of a fee under this section, the commission shall consider: (1) the acquisition cost of the property being used; (2) if applicable, the value of the property being transported or of the service being offered; (3) any cost to the department or to the public occasioned by the use, including environmental effects; (4) comparable fees set by the competitive marketplace; and (5) the desirable effects of full use of the Trans-Texas Corridor on the state's economy and its residents. (e) If a public road is replaced or eliminated by the Trans-Texas Corridor and a facility used the right-of-way of that road under Chapter 161, 162, 163, or 181, Utilities Code, Chapter 402, Local Government Code, or Chapter 49, Water Code, the department may not require the owner of that facility to pay a fee as a condition of using a segment of the Trans-Texas Corridor for the location of a replacement facility. (f) The department may not require the owner of a public utility facility to pay a fee as a condition of crossing the Trans-Texas Corridor. The department may not require the owner of a public utility facility to pay a fee for placing a facility along or within the Trans-Texas Corridor specifically to provide service to customers within the Trans-Texas Corridor pursuant to an obligation as a provider of last resort. The department may not require payment of a fee for use of the Trans-Texas Corridor by a public utility facility in existence before the establishment of the Trans-Texas Corridor or for use by a facility that replaces a facility in existence before the establishment of the Trans-Texas Corridor unless the owner of the existing public utility facility relocates the public utility facility into the Trans-Texas Corridor of its own volition. For use of the Trans-Texas Corridor by a public utility facility whose owner places the facility in the Trans-Texas Corridor of its own volition, the department may charge the owner a fee as negotiated between the department and the owner. The fee shall be competitively neutral and nondiscriminatory among similarly situated owners of public utility facilities.
Sec. 227.082. LEASE OF PROPERTY OR RIGHTS. (a) The department may lease property on the Trans-Texas Corridor to any public or private entity. A lease may be for a term not longer than 50 years. (b) The department may grant a franchise to use or operate a facility on the Trans-Texas Corridor. A franchise under this section may be granted for a term not longer than 50 years. (c) The department may grant an exclusive or nonexclusive license to access or use any portion of the Trans-Texas Corridor for any purpose. A license granted under this section may be for a definite or indefinite term. The department may not grant an exclusive license to access or use a highway on the Trans-Texas Corridor. The department may not grant an exclusive license for use of the Trans-Texas Corridor by an owner of a public utility facility if the exclusive use is prohibited by other law. (d) Property may be leased or a franchise or license granted for any purpose, including use as a facility and use for unrelated commercial, industrial, or agricultural purposes. (e) In return for a lease, franchise, or license, the department may accept anything of value as consideration, including: (1) a cash payment; (2) installment payments; (3) one or more payments based on percentages of use or throughput; and (4) an interest in real or personal property, or an intangible legal right.
Sec. 227.083. DISPOSITION OF FEES. To the extent that it is not dedicated to another purpose by the constitution, by statute, or by contract, or deposited to a separate account under this chapter, revenue received by the department under this chapter shall be deposited to the credit of the state highway fund and may be used for any purpose authorized by this chapter. Subchapter D, Chapter 316, Government Code, and Section 403.095, Government Code, do not apply to revenue received under this chapter.
SECTION 1.02. Subchapter H, Chapter 545, Transportation Code, is amended by adding Section 545.3531 to read as follows:
Sec. 545.3531. AUTHORITY OF TEXAS TRANSPORTATION COMMISSION TO ESTABLISH SPEED LIMITS ON TRANS-TEXAS CORRIDOR. (a) Notwithstanding Section 545.352, the Texas Transportation Commission, by order recorded in its minutes and except as provided by Subsection (d), may determine and declare on a highway segment of the Trans-Texas Corridor designated under Chapter 227 a reasonable and safe prima facie speed limit in excess of a prima facie speed limit established by Section 545.352. (b) In determining whether a prima facie speed limit is reasonable and safe, the commission shall conduct an engineering and traffic investigation and shall consider the width and condition of the pavement, the usual traffic on the highway segment, the suitability of existing safety features, and other circumstances. (c) A prima facie speed limit that is declared by the commission under this section is effective when the department erects signs giving notice of the new limit. A new limit that is enacted under this section is effective at all times or at other times as determined. (d) The commission may not: (1) modify the rules established by Section 545.351(b); or (2) establish a speed limit of more than 85 miles per hour. (e) The commission, in conducting the engineering and traffic investigation specified by Subsection (b), shall follow the "Procedures for Establishing Speed Zones" as adopted by the commission.
SECTION 1.03. This article takes effect immediately if this Act 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 article takes effect September 1, 2003.
ARTICLE 2. REGIONAL MOBILITY AUTHORITIES
SECTION 2.01. Subtitle G, Title 6, Transportation Code, is amended by adding Chapter 370 to read as follows:
CHAPTER 370. REGIONAL MOBILITY AUTHORITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 370.001. SHORT TITLE. This chapter may be cited as the Regional Mobility Authority Act.
Sec. 370.002. [reserved]
Sec. 370.003. DEFINITIONS. In this chapter: (1) "Authority" means a regional mobility authority organized under this chapter or under Section 361.003, as that section existed before September 1, 2003. (2) "Board" means the board of directors of an authority. (3) "Bond" includes a bond, certificate, note, or other obligation of an authority authorized by this chapter, another statute, or the Texas Constitution. (4) "Bond proceeding" includes a bond resolution and a bond indenture authorized by the bond resolution, a credit agreement, loan agreement, or other agreement entered into in connection with the bond or the payments to be made under the agreement, and any other agreement between an authority and another person providing security for the payment of a bond. (5) "Bond resolution" means an order or resolution of a board authorizing the issuance of a bond. (6) "Bondholder" means the owner of a bond and includes a trustee acting on behalf of an owner of a bond under the terms of a bond indenture. (7) "Comprehensive development agreement" means an agreement under Section 370.305. (8) "Governmental entity" means a political subdivision of the state, including a municipality or a county, a political subdivision of a county, a group of adjoining counties, a district organized or operating under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, the department, a rail district, a transit authority, a nonprofit corporation, including a transportation corporation, that is created under Chapter 431, or any other public entity or instrumentality. (9) "Highway" means a road, highway, farm-to-market road, or street under the supervision of the state or a political subdivision of this state. (9-a) "Intermodal hub" means a central location where cargo containers can be easily and quickly transferred between trucks, trains, and airplanes. (10) "Public utility facility" means: (A) a water, wastewater, natural gas, or petroleum pipeline or associated equipment; (B) an electric transmission or distribution line or associated equipment; or (C) telecommunications information services, or cable television infrastructure or associated equipment, including fiber optic cable, conduit, and wireless communications facilities. (11) "Revenue" means fares, fees, rents, tolls, and other money received by an authority from the ownership or operation of a transportation project. (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; (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. (13) "System" means a transportation project or a combination of transportation projects designated as a system by the board under Section 370.034. (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; (G) a pedestrian or bicycle facility; (H) an intermodal hub; (I) an automated conveyor belt for the movement of freight; (J) a border crossing inspection station; (K) an air quality improvement initiative; (L) a public utility facility; and (M) 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. (14-a) "Transportation project" does not include a border inspection facility that serves a bridge system that had more than 900,000 commercial border crossings during the state fiscal year ending August 31, 2002. (15) "Turnpike project" means a highway of any number of lanes, with or without grade separations, owned or operated by an authority under this chapter and any improvement, extension, or expansion to that highway, including: (A) an improvement to relieve traffic congestion or promote safety; (B) a bridge, tunnel, overpass, underpass, interchange, service road, ramp, entrance plaza, approach, or tollhouse; (C) an administration, storage, or other building the authority considers necessary for the operation of a turnpike project; (D) a parking area or structure, rest stop, park, and other improvement or amenity the authority considers necessary, useful, or beneficial for the operation of a turnpike project; and (E) a property right, easement, or interest the authority acquires to construct or operate the turnpike project.
Sec. 370.004. CONSTRUCTION COSTS DEFINED. (a) The cost of acquisition, construction, improvement, extension, or expansion of a transportation project under this chapter includes the cost of: (1) the actual acquisition, construction, improvement, extension, or expansion of the transportation project; (2) the acquisition of real property, rights-of-way, property rights, easements, and other interests in real property; (3) machinery and equipment; (4) interest payable before, during, and for not more than three years after acquisition, construction, improvement, extension, or expansion as provided in the bond proceedings; (5) traffic estimates, revenue estimates, engineering and legal services, plans, specifications, surveys, appraisals, construction cost estimates, and other expenses necessary or incidental to determining the feasibility of the acquisition, construction, improvement, extension, or expansion; (6) necessary or incidental administrative, legal, and other expenses; (7) compliance with laws, regulations, and administrative rulings, including any costs associated with necessary environmental mitigation measures; (8) financing; and (9) expenses related to the initial operation of the transportation project. (b) Costs attributable to a transportation project and incurred before the issuance of bonds to finance the transportation project may be reimbursed from the proceeds of sale of the bonds.
[Sections 370.005-370.030 reserved for expansion]
SUBCHAPTER B. CREATION AND POWERS OF REGIONAL MOBILITY AUTHORITIES
Sec. 370.031. CREATION OF A REGIONAL MOBILITY AUTHORITY. (a) At the request of one or more counties, the commission by order may authorize the creation of a regional mobility authority for the purposes of constructing, maintaining, and operating transportation projects in a region of this state. An authority is governed in accordance with Subchapter F. (b) An authority may not be created without the approval of the commission under Subsection (a) and the approval of the commissioners court of each county that will be a part of the authority.
Sec. 370.0315. ADDITION AND WITHDRAWAL OF COUNTIES. (a) One or more counties may petition the commission for approval to become part of an existing authority. The commission may approve the petition only if: (1) the board has agreed to the addition; and (2) the commission finds that the affected political subdivisions in the county or counties will be adequately represented on the board. (b) One or more counties may petition the commission for approval to withdraw from an authority. The commission may approve the petition only if: (1) the authority has no bonded indebtedness; or (2) the authority has debt other than bonded indebtedness, but the board has agreed to the withdrawal. (c) A county may not become part of an authority or withdraw from an authority without the approval of the commission.
Sec. 370.032. NATURE OF REGIONAL MOBILITY AUTHORITY. (a) An authority is a body politic and corporate and a political subdivision of this state. (b) An authority is a governmental unit as that term is defined in Section 101.001, Civil Practice and Remedies Code. (c) The exercise by an authority of the powers conferred by this chapter in the acquisition, design, financing, construction, operation, and maintenance of a transportation project or system is: (1) in all respects for the benefit of the people of the counties in which an authority operates and of the people of this state, for the increase of their commerce and prosperity, and for the improvement of their health, living conditions, and public safety; and (2) an essential governmental function of the state. (d) The operations of an authority are governmental, not proprietary, functions.
Sec. 370.033. GENERAL POWERS. (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; (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; and (15) do all things necessary or appropriate to carry out the powers and duties expressly granted or imposed by this chapter. (b) Except as provided by this subsection, property that is a part of a transportation project of an authority is not subject to condemnation or the exercise of the power of eminent domain by any person, including a governmental entity. The department may condemn property that is a part of a transportation project of an authority if the property is needed for the construction, reconstruction, or expansion of a state highway or rail facility. (c) An authority may, if requested by the commission, perform any function not specified by this chapter to promote or develop a transportation project in the authority's area of jurisdiction. (d) An authority may sue and be sued and plead and be impleaded in its own name. (e) An authority may rent, lease, franchise, license, or make portions of its properties available for use by others in furtherance of its powers under this chapter by increasing the feasibility or the revenue of a transportation project. If the transportation project is a project other than a public utility facility an authority may rent, lease, franchise or make property available only to the extent that the renting, lease or franchise benefits the users of the project. (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 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. (g) Payments to be made to an authority under a contract described by Subsection (f) constitute operating expenses of the transportation project or system that is to be operated under the contract. The contract may extend for the number of years as agreed to by the parties. (h) An authority shall adopt a written drug and alcohol policy restricting the use of controlled substances by officers and employees of the authority, prohibiting the consumption of alcoholic beverages by employees while on duty, and prohibiting employees from working for the authority while under the influence of a controlled substance or alcohol. An authority may adopt policies regarding the testing of employees suspected of being in violation of the authority's drug and alcohol policy. The policy shall provide that, unless required by court order or permitted by the person who is the subject of the testing, the authority shall keep the results of the test confidential. (i) An authority shall adopt written procedures governing its procurement of goods and services that are consistent with general laws applicable to the authority. (j) An authority may not apply for federal highway or rail funds without the approval of the department. (k) An authority may not directly provide water, wastewater, natural gas, petroleum pipeline, electric transmission, electric distribution, telecommunications, information, or cable television services. (l) If an authority establishes an airport in Central Texas, the authority may not establish the airport at a location prohibited to the department by Section 21.069(c). (m) If an authority receives money from the general revenue fund or the state highway fund it may use the money only to acquire, design, finance, construct, operate, or maintain a turnpike project under Section 370.003(14)(A) or (D). (n) Nothing in this chapter or any contractual right obtained under a contract with an authority under this chapter supersedes or renders ineffective any provision of another law applicable to the owner or operator of a public utility facility, including any provision of the utilities code regarding licensing, certification, or regulatory jurisdiction of the Public Utility Commission of Texas or the Railroad Commission of Texas.
Sec. 370.034. ESTABLISHMENT OF TRANSPORTATION SYSTEMS. (a)If an authority determines that the traffic needs of the counties in which it operates and the traffic needs of the surrounding region could be most efficiently and economically met by jointly operating two or more transportation projects as one operational and financial enterprise, it may create a system made up of those transportation projects. An authority may create more than one system and may combine two or more systems into one system. An authority may finance, acquire, construct, and operate additional transportation projects as additions to or expansions of a system if the authority determines that the transportation project could most efficiently and economically be acquired or constructed if it were a part of the system and that the addition will benefit the system. (b) The revenue of a system shall be accounted for separately and may not be commingled with the revenue of a transportation project that is not a part of the system or with the revenue of another system.
Sec. 370.035. CONVERSION AND TRANSFER OF STATE HIGHWAY SYSTEM PROJECTS. (a) The commission by order may convert a segment of the free state highway system to a turnpike project and transfer that segment to an authority, or may transfer an existing turnpike project that is part of the state highway system, whether previously tolled or not, to an authority if: (1) the commission determines that the proposed transfer is an integral part of the region's overall plan to improve mobility in the region; (2) the commission determines that the public has a reasonable alternative route on nontoll roads; (3) the authority agrees to assume all liability and responsibility for the maintenance and operation of the turnpike project on its transfer; and (4) approved by the governor. (b) An authority shall reimburse the commission for the cost of a transferred turnpike project unless the commission determines that the transfer will result in a substantial net benefit to the state, the department, and the traveling public that equals or exceeds that cost. (c) In computing the cost of the turnpike project, the commission shall: (1) include the total amount spent by the department for the original construction of the turnpike project, including the costs associated with the preliminary engineering and design engineering for plans, specifications, and estimates, the acquisition of necessary rights-of-way, and actual construction of the turnpike project and all necessary appurtenant facilities; and (2) consider the anticipated future costs of expanding, improving, maintaining, operating, or extending the turnpike project to be incurred by the authority and not by the department if the turnpike project is transferred. (d) The commission may, at the time a turnpike project is transferred, remove the turnpike project from the state highway system. After a transfer, the commission has no liability, responsibility, or duty for the maintenance or operation of the turnpike project. (e) Before transferring a turnpike project that is part of the state highway system under this section, the commission shall conduct a public hearing at which interested persons shall be allowed to speak on the proposed transfer. Notice of the hearing must be published in the Texas Register, one or more newspapers of general circulation in the counties in which the turnpike project is located, and a newspaper, if any, published in the counties of the applicable authority. (f) The commission shall adopt rules to implement this section. The rules shall include criteria and guidelines for the approval of a transfer of a segment of a highway. (g) An authority shall adopt rules providing criteria and guidelines for approval of the transfer of a turnpike project under this section. (h) The commission may not transfer the Queen Isabella Causeway in Cameron County to an authority under this section.
Sec. 370.036. TRANSFER OF BONDED TURNPIKE PROJECT TO DEPARTMENT. (a) An authority may transfer to the department a turnpike project of the authority that has outstanding bonded indebtedness if the commission: (1) agrees to the transfer; and (2) agrees to assume the outstanding bonded indebtedness. (b) The commission may assume the outstanding bonded indebtedness only if the assumption: (1) is not prohibited under the terms of an existing trust agreement or indenture securing bonds or other obligations issued by the commission for another project; (2) does not prevent the commission from complying with covenants of the commission under an existing trust agreement or indenture; and (3) does not cause a rating agency maintaining a rating on outstanding obligations of the commission to lower the existing rating. (c) If the commission agrees to the transfer under Subsection (a), the authority shall convey the turnpike project and any real property acquired to construct or operate the turnpike project to the department. (d) At the time of a conveyance under this section, the commission shall designate the turnpike project as part of the state highway system. After the designation, the authority has no liability, responsibility, or duty to maintain or operate the transferred turnpike project.
Sec. 370.037. TRANSFER OF FERRY CONNECTING STATE HIGHWAYS. (a) The commission by order may transfer a ferry operated under Section 342.001 to an authority if: (1) the commission determines that the proposed transfer is an integral part of the region's overall plan to improve mobility in the region; and (2) the authority: (A) agrees to the transfer; and (B) agrees to assume all liability and responsibility for the maintenance and operation of the ferry on its transfer. (b) An authority shall reimburse the commission for the cost of a transferred ferry unless the commission determines that the transfer will result in a substantial net benefit to the state, the department, and the traveling public that equals or exceeds that cost. (c) In computing the cost of the ferry, the commission shall: (1) include the total amount spent by the department for the original construction of the ferry, including the costs associated with the preliminary engineering and design engineering for plans, specifications, and estimates, the acquisition of necessary rights-of-way, and actual construction of the ferry and all necessary appurtenant facilities; and (2) consider the anticipated future costs of expanding, improving, maintaining, or operating the ferry to be incurred by the authority and not by the department if the ferry is transferred. (d) The commission shall, at the time the ferry is transferred, remove the ferry from the state highway system. After a transfer, the commission has no liability, responsibility, or duty for the maintenance or operation of the ferry. (e) Before transferring a ferry that is a part of the state highway system under this section, the commission shall conduct a public hearing at which interested persons shall be allowed to speak on the proposed transfer. Notice of the hearing must be published in the Texas Register, one or more newspapers of general circulation in the counties in which the ferry is located, and a newspaper, if any, published in the counties of the applicable authority. (f) The commission shall adopt rules to implement this section. The rules must include criteria and guidelines for the approval of a transfer of a ferry. (g) An authority shall adopt rules establishing criteria and guidelines for approval of the transfer of a ferry under this section. (h) An authority may temporarily charge a toll for use of a ferry transferred under this section to pay the costs necessary for an expansion of the ferry. An authority may permanently charge a toll for use of ferry facilities that are an expansion of the ferry transferred under this section. (i) The commission may not transfer a ferry under this section if the ferry is located in a municipality with a population of 5,000 or less unless the city council of the municipality approves the transfer.
Sec. 370.038. COMMISSION RULES. (a) The commission shall adopt rules that: (1) govern the creation of an authority; (2) govern the commission's approval of a project under Section 370.187 and other commission approvals required by this chapter; (3) establish design and construction standards for a transportation project that will connect with a highway in the state highway system or a department rail facility; (4) establish minimum audit and reporting requirements and standards; (5) establish minimum ethical standards for authority directors and employees; and (6) govern the authority of an authority to contract with the United Mexican States or a state of the United Mexican States. (b) The commission shall appoint a rules advisory committee to advise the department and the commission on the development of the commission's initial rules required by this section. The committee must include one or more members representing an existing authority, if applicable. Chapter 2110, Government Code, does not apply to the committee. This subsection expires on the date the commission adopts initial rules under this section.
[Sections 370.039-370.070 reserved for expansion]
SUBCHAPTER C. FEASIBILITY OF REGIONAL TRANSPORTATION PROJECTS
Sec. 370.071. EXPENDITURES FOR FEASIBILITY STUDIES. (a) An authority may pay the expenses of studying the cost and feasibility 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. (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. (c) The use of any money of a transportation project to study the feasibility of another transportation project or used to repay any money used for that purpose does not constitute an operating expense of the transportation project producing the revenue and may be paid only from the surplus money of the transportation project as determined by the authority.
Sec. 370.072. FEASIBILITY STUDY FUND. (a) An authority may maintain a feasibility study fund. The fund is a revolving fund held in trust by a banking institution chosen by the authority and shall be kept separate from the money for a transportation project. (b) An authority may transfer an amount from a surplus fund established for a transportation project to the authority's feasibility study fund if the remainder of the surplus fund after the transfer is not less than any minimum amount required by the bond proceedings to be retained for that transportation project. (c) Money in the feasibility study fund may be used only to pay the expenses of studying the cost and feasibility 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. (d) Money spent under Subsection (c) for a proposed transportation project must be reimbursed from the proceeds of revenue bonds issued for, or other proceeds that may be used for, the acquisition, construction, improvement, extension, expansion, or operation of the transportation project. (e) For a purpose described by Subsection (c), an authority may borrow money and issue promissory notes or other interest-bearing evidences of indebtedness payable out of its feasibility study fund, pledging money in the fund or to be placed in the fund.
Sec. 370.073. FEASIBILITY STUDY BY MUNICIPALITY, COUNTY, OTHER GOVERNMENTAL ENTITY, OR PRIVATE GROUP. (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 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. (b) Money spent under Subsection (a) for a proposed transportation project is reimbursable without interest and with the consent of the authority to the person paying the expenses described in Subsection (a) out of the proceeds from revenue bonds issued for or other proceeds that may be used for the acquisition, construction, improvement, extension, expansion, maintenance, repair, or operation of the transportation project.
[Sections 370.074-370.110 reserved for expansion]
SUBCHAPTER D. TRANSPORTATION PROJECT FINANCING
Sec. 370.111. TRANSPORTATION REVENUE BONDS. (a) An authority, by bond resolution, may authorize the issuance of bonds to pay all or part of the cost of a transportation project, to refund any bonds previously issued for the transportation project, or to pay for all or part of the cost of a transportation project that will become a part of another system. (b) As determined in the bond resolution, the bonds of each issue shall: (1) be dated; (2) bear interest at the rate or rates provided by the bond resolution and beginning on the dates provided by the bond resolution and as authorized by law, or bear no interest; (3) mature at the time or times provided by the bond resolution, not exceeding 40 years from their date or dates; and (4) be made redeemable before maturity at the price or prices and under the terms provided by the bond resolution. (c) An authority may sell the bonds at public or private sale in the manner and for the price it determines to be in the best interest of the authority. (d) The proceeds of each bond issue shall be disbursed in the manner and under any restrictions provided in the bond resolution. (e) Additional bonds may be issued in the same manner to pay the costs of a transportation project. Unless otherwise provided in the bond resolution, the additional bonds shall be on a parity, without preference or priority, with bonds previously issued and payable from the revenue of the transportation project. In addition, an authority may issue bonds for a transportation project secured by a lien on the revenue of the transportation project subordinate to the lien on the revenue securing other bonds issued for the transportation project. (f) If the proceeds of a bond issue exceed the cost of the transportation project for which the bonds were issued, the surplus shall be segregated from the other money of the authority and used only for the purposes specified in the bond resolution. (g) Bonds issued and delivered under this chapter and interest coupons on the bonds are a security under Chapter 8, Business & Commerce Code. (h) Bonds issued under this chapter and income from the bonds, including any profit made on the sale or transfer of the bonds, are exempt from taxation in this state. (i) Bonds issued under this chapter shall be considered authorized investments under Chapter 2256, Government Code, for this state, any governmental entity, and any other public entity proposing to invest in the bonds.
Sec. 370.112. INTERIM BONDS. (a) An authority may, before issuing definitive bonds, issue interim bonds, with or without coupons, exchangeable for definitive bonds. (b) The interim bonds may be authorized and issued in accordance with this chapter, without regard to a requirement, restriction, or procedural provision in any other law. (c) A bond resolution authorizing interim bonds may provide that the interim bonds recite that the bonds are issued under this chapter. The recital is conclusive evidence of the validity and the regularity of the bonds' issuance.
Sec. 370.113. PAYMENT OF BONDS; STATE AND COUNTY CREDIT. (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 provided by 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. (b) Bonds issued under this chapter do not constitute a debt of this state or of a governmental entity, or a pledge of the faith and credit of this state or of a governmental entity. Each bond must contain on its face a statement to the effect that the state, the authority, or any governmental entity is not obligated to pay the bond or the interest on the bond from a source other than the amount pledged to pay the bond and the interest on the bond, and neither the faith and credit and taxing power of this state or of any governmental entity are pledged to the payment of the principal of or interest on the bond. This subsection does not apply to a governmental entity that has entered into an agreement under Section 370.303. (c) An authority may not incur a financial obligation that cannot be paid from revenue derived from owning or operating the authority's transportation projects or from other revenue provided by law.
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: (1) is enforceable at the time of payment for and delivery of the bond; (2) applies to each item on hand or subsequently received; (3) applies without physical delivery of an item or other act; and (4) is enforceable 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 bond resolution is not required to be recorded except in the regular records of the authority.
Sec. 370.115. BOND INDENTURE. (a) Bonds issued by an authority under this chapter may be secured by a bond indenture between the authority and a corporate trustee that is a trust company or a bank that has the powers of a trust company. (b) A bond indenture may pledge or assign the revenues to be received but may not convey or mortgage any part of a transportation project. (c) A bond indenture may: (1) set forth the rights and remedies of the bondholders and the trustee; (2) restrict the individual right of action by bondholders as is customary in trust agreements or indentures of trust securing corporate bonds and debentures; and (3) contain provisions the authority determines reasonable and proper for the security of the bondholders, including covenants: (A) establishing the authority's duties relating to: (i) the acquisition of property; (ii) the construction, maintenance, operation, and repair of and insurance for a transportation project; and (iii) custody, safeguarding, and application of money; (B) prescribing events that constitute default; (C) prescribing terms on which any or all of the bonds become or may be declared due before maturity; and (D) relating to the rights, powers, liabilities, or duties that arise on the breach of a duty of the authority. (d) An expense incurred in carrying out a trust agreement may be treated as part of the cost of operating the transportation project. (e) In addition to all other rights by mandamus or other court proceeding, an owner or trustee of a bond issued under this chapter may enforce the owner's rights against an issuing authority, the authority's employees, the authority's board, or an agent or employee of the authority's board and is entitled to: (1) require the authority or the board to impose and collect tolls, fares, fees, charges, and other revenue sufficient to carry out any agreement contained in the bond proceedings; and (2) apply for and obtain the appointment of a receiver for the transportation project or system.
Sec. 370.116. APPROVAL OF BONDS BY ATTORNEY GENERAL. (a) An authority shall submit to the attorney general for examination the record of proceedings relating to bonds authorized under this chapter. The record shall include the bond proceedings and any contract securing or providing revenue for the payment of the bonds. (b) If the attorney general determines that the bonds, the bond proceedings, and any supporting contract are authorized by law, the attorney general shall approve the bonds and deliver to the comptroller: (1) a copy of the legal opinion of the attorney general stating the approval; and (2) the record of proceedings relating to the authorization of the bonds. (c) On receipt of the legal opinion of the attorney general and the record of proceedings relating to the authorization of the bonds, the comptroller shall register the record of proceedings. (d) After approval by the attorney general, the bonds, the bond proceedings, and any supporting contract are valid, enforceable, and incontestable in any court or other forum for any reason and are binding obligations according to their terms for all purposes.
Sec. 370.117. FURNISHING OF INDEMNIFYING BONDS OR PLEDGES OF SECURITIES. (a) A bank or trust company incorporated under the laws of this state that acts as depository of the proceeds of bonds or of revenue may furnish indemnifying bonds or pledge securities that an authority requires. (b) Bonds of an authority may secure the deposit of public money of this state or a political subdivision of this state to the extent of the lesser of the face value of the bonds or their market value.
Sec. 370.118. APPLICABILITY OF OTHER LAW; CONFLICTS. All laws affecting the issuance of bonds by local governmental entities, including Chapters 1201, 1202, 1204, and 1371, Government Code, apply to bonds issued under this chapter. To the extent of a conflict between those laws and this chapter, the provisions of this chapter prevail.
[Sections 370.119-370.160 reserved for expansion]
SUBCHAPTER E. ACQUISITION, CONSTRUCTION, AND OPERATION OF TRANSPORTATION PROJECTS
Sec. 370.161. TRANSPORTATION PROJECTS EXTENDING INTO OTHER COUNTIES. (a) An authority may acquire, construct, operate, maintain, expand, or extend a transportation project only in: (1) a county that is a part of the authority; (2) a county in this state that is not a part of the authority if: (A) the transportation project in that county is a continuation of a transportation project of the authority extending from a county adjacent to that county; (B) the county is given an opportunity to become part of the authority on terms and conditions acceptable to the authority and that county; and (C) the commissioners court of the county agrees to the proposed acquisition, construction, operation, maintenance, expansion, or extension of the transportation project in that county; or (3) a county in another state or the United Mexican States if: (A) each governing body of a political subdivision in which the project will be located agrees to the proposed acquisition, construction, operation, maintenance, expansion, or extension; (B) the project will bring significant benefits to the counties in this state that are part of the authority; (C) the county in the other state is adjacent to a county that is: (i) part of the authority constructing, operating, maintaining, expanding, or extending the transportation project; and (ii) has a municipality with a population of 500,000 or more; and (D) the governor approves the proposed construction, operation, maintenance, expansion, or extension. (b) A municipality that borders the United Mexican States and has a population of 500,000 or more has the same authority as a county to create and participate in an authority. A municipality creating or participating in an authority has the same powers and duties as a county participating in an authority, the governing body of the municipality has the same powers and duties as the commissioners court of a county participating in an authority, and an elected member of the municipality's governing body has the same powers and duties as a commissioner of a county that is participating in an authority.
Sec. 370.162. POWERS AND PROCEDURES OF AUTHORITY IN ACQUIRING PROPERTY. (a) An authority may construct or improve a transportation project on real property, including a right-of-way acquired by the authority or provided to the authority for that purpose by the commission, a political subdivision of this state, or any other governmental entity. (b) Except as provided by this chapter, an authority has the same powers and may use the same procedures as the commission in acquiring property.
Sec. 370.163. ACQUISITION OF PROPERTY. (a) Except as otherwise provided by this subchapter, the governing body of an authority has the same powers and duties relating to the condemnation and acquisition of real property for a transportation project that the commission and the department have under Subchapter D, Chapter 361, and Section 361.233 relating to the condemnation or purchase of real property for a turnpike project. Notwithstanding Section 361.135(a), the concurrence of the commission is not a prerequisite to the exercise of the power of condemnation by the governing body of the authority. (b) An authority's acquisition of any property of the commission under this or another section of this chapter or an authority's relocation, rerouting, disruption, or alteration of a facility of the commission is considered a conversion of a state highway system under Section 370.035 and is subject to each requirement, condition, or limitation provided by that section. (c) The authority granted under this section does not include the authority to condemn a bridge connecting this state to the United Mexican States that is owned by a county or municipality.
Sec. 370.164. DECLARATION OF TAKING. (a) An authority may file a declaration of taking with the clerk of the court: (1) in which the authority files a condemnation petition under Chapter 21, Property Code; or (2) to which the case is assigned. (b) An authority may file the declaration of taking concurrently with or subsequent to the filing of the condemnation petition but may not file the declaration after the special commissioners have made an award in the condemnation proceeding. (c) An authority may not file a declaration of taking before the completion of all: (1) environmental documentation, including a final environmental impact statement or a record of decision, that is required by federal or state law; (2) public hearings and meetings, including those held in connection with the environmental rules adopted by the authority under Section 370.188, that are required by federal or state law; and (3) notifications required by the rules adopted by the authority under Section 370.188. (d) The declaration of taking must include: (1) a specific reference to the legislative authority for the condemnation; (2) a description and plot plan of the real property to be condemned, including the following information if applicable: (A) the municipality in which the property is located; (B) the street address of the property; and (C) the lot and block number of the property; (3) a statement of the property interest to be condemned; (4) the name and address of each property owner that the authority can obtain after reasonable investigation and a description of the owner's interest in the property; and (5) a statement that immediate possession of all or part of the property to be condemned is necessary for the timely construction of a transportation project. (e) A deposit to the registry of the court of an amount equal to the appraised value as determined by the authority of the property to be condemned must accompany the declaration of taking. (f) The date on which the declaration is filed is the date of taking for the purpose of assessing damages to which a property owner is entitled. (g) After a declaration of taking is filed, the case shall proceed as any other case in eminent domain under Chapter 21, Property Code.
Sec. 370.165. POSSESSION OF PROPERTY. (a) Immediately on the filing of a declaration of taking, the authority shall serve a copy of the declaration on each person possessing an interest in the condemned property by a method prescribed by Section 21.016(d), Property Code. The authority shall file evidence of the service with the clerk of the court. On filing of that evidence, the authority may take possession of the property pending the litigation. (b) If the condemned property is a homestead or a portion of a homestead as defined by Section 41.002, Property Code, the authority may not take possession before the 91st day after the date of service under Subsection (a). (c) A property owner or tenant who refuses to vacate the property or yield possession is subject to forcible entry and detainer under Chapter 24, Property Code.
Sec. 370.166. PARTICIPATION PAYMENT FOR REAL PROPERTY. (a) As an alternative to paying for an interest in real property or a real property right with a single fixed payment, the authority may, with the owner's consent, pay the owner by means of a participation payment. (b) A right to receive a participation payment under this section is subordinate to any right to receive a fee as payment on the principal of or interest on a bond that is issued for the construction of the applicable segment. (c) In this section, "participation payment" means an intangible legal right to receive a percentage of one or more identified fees related to a segment constructed by the authority.
Sec. 370.167. SEVERANCE OF REAL PROPERTY. (a) If a transportation project of an authority severs a property owner's real property, the authority shall pay: (1) the value of the property acquired; and (2) the damages, if any, to the remainder of the owner's property caused by the severance, including damages caused by the inaccessibility of one tract from the other. (b) At its option, an authority may negotiate for and purchase the severed real property or any part of the severed real property if the authority and the property owner agree on terms for the purchase. An authority may sell and dispose of severed real property that it determines is not necessary or useful to the authority. Severed property must be appraised before being offered for sale by the authority.
Sec. 370.168. ACQUISITION OF RIGHTS IN PUBLIC REAL PROPERTY. (a) An authority may use real property, including submerged land, streets, alleys, and easements, owned by this state or a local government that the authority considers necessary for the construction or operation of a transportation project. (b) This state or a local government having charge of public real property may consent to the use of the property for a transportation project. (c) Except as provided by Section 370.035, this state or a local government may convey, grant, or lease to an authority real property, including highways and other real property devoted to public use and rights or easements in real property, that may be necessary or convenient to accomplish a purpose of the authority, including the construction or operation of a transportation project. A conveyance, grant, or lease under this section may be made without advertising, court order, or other action other than the normal action of this state or local government necessary for a conveyance, grant, or lease. (d) This section does not deprive the School Land Board of the power to execute a lease for the development of oil, gas, and other minerals on state-owned real property adjoining a transportation project or in tidewater limits. A lease may provide for directional drilling from the adjoining property or tidewater area. (e) This section does not affect the obligation of the authority under another law to compensate this state for acquiring or using property owned by or on behalf of this state. An authority's use of property owned by or on behalf of this state is subject to any covenants, conditions, restrictions, or limitations affecting that property.
Sec. 370.169. COMPENSATION FOR AND RESTORATION OF PUBLIC PROPERTY. (a) Except as provided by Section 370.035, an authority may not pay compensation for public real property, parkways, streets, highways, alleys, or reservations it takes, other than: (1) a park, playground, or designated environmental preserve; (2) property owned by or on behalf of this state that under law requires compensation to this state for the use or acquisition of the property; or (3) as provided by this chapter. (b) Public property damaged in the exercise of a power granted by this chapter shall be restored or repaired and placed in its original condition as nearly as practicable. (c) An authority has full easements and rights-of-way through, across, under, and over any property owned by the state or any local government that are necessary or convenient to construct, acquire, or efficiently operate a transportation project or system under this chapter. This subsection does not affect the obligation of the authority under other law to compensate this state for the use or acquisition of an easement or right-of-way on property owned by or on behalf of this state. An authority's use of property owned by or on behalf of this state is subject to any covenants, conditions, restrictions, or limitations affecting that property.
Sec. 370.170. PUBLIC UTILITY FACILITIES. (a) An authority may adopt rules for the authority's approval of the installation, construction, relocation, and removal of a public utility facility in, on, along, over, or under a transportation project. (b) If the authority determines that a public utility facility located in, on, along, over, or under a transportation project must be relocated, the utility and the authority shall negotiate in good faith to establish reasonable terms and conditions concerning the responsibilities of the parties with regard to sharing of information about the project and the planning and implementation of any necessary relocation of the public utility facility. (c) The authority shall use its best efforts to provide an affected utility with plans and drawings of the project that are sufficient to enable the utility to develop plans for, and determine the cost of, the necessary relocation of a public utility facility. If the authority and the affected utility enter into an agreement after negotiations under Subsection (b), the terms and conditions of the agreement govern the relocation of each public utility facility covered by the agreement. (d) If the authority and an affected utility do not enter into an agreement under Subsection (b), the authority shall provide to the affected utility: (1) written notice of the authority's determination that the public utility facility must be removed; (2) a final plan for relocation of the public utility facility; and (3) reasonable terms and conditions for an agreement with the utility for the relocation of the public utility facility. (e) Not later than the 90th day after the date a utility receives the notice from the authority, including the plan and agreement terms and conditions under Subsection (d), the utility shall enter into an agreement with the authority that provides for the relocation. (f) If the utility fails to enter into an agreement within the 90-day period under Subsection (e), the authority may relocate the public utility facility at the sole cost and expense of the utility less any reimbursement of costs that would have been payable to the utility under applicable law. A relocation by the authority under this subsection shall be conducted in full compliance with applicable law, using standard equipment and construction practices compatible with the utility's existing facilities, and in a manner that minimizes disruption of utility service. (g) The 90-day period under Subsection (e) may be extended: (1) by mutual agreement between the authority and the utility; or (2) for any period of time during which the utility is negotiating in good faith with the authority to relocate its facility. (h) Subject to Subsections (a)-(g), the authority, as a part of the cost of the transportation project or the cost of operating the transportation project, shall pay the cost of the relocation, removal, or grade separation of a public utility facility under Subsection (a). (i) The authority may reduce the total costs to be paid by the authority under Subsection (h) by 10 percent for each 30-day period or portion of a 30-day period by which the relocation or removal exceeds the reasonable limit specified by agreement between the authority and the owner or operator of the public utility facility, unless the failure of the owner or operator of the facility to timely relocate or remove the facility results directly from: (1) a material action or inaction of the authority; (2) an inability of the public utility facility owner or operator to obtain necessary line clearances to perform the removal or relocation; or (3) conditions beyond the reasonable control of the owner or operator of the facility, including: (A) an act of God; or (B) a labor shortage or strike. (j) The owner or operator of a public utility facility relocated or removed under Subsection (f) shall reimburse the authority for the expenses the authority reasonably incurred for the relocation or removal of the facility, less any costs that would have been payable to the owner or operator under Subsection (h) had the owner or operator relocated or removed the facility, except that the owner or operator is not required to reimburse the authority if the failure of the owner or operator to timely relocate or remove the facility was the result of circumstances beyond the control of the owner or operator. (k) Subchapter C, Chapter 181, Utilities Code, applies to the erection, construction, maintenance, and operation of a line or pole owned by an electric utility, as that term is defined by Section 181.041, Utilities Code, over, under, across, on, and along a transportation project or system constructed by an authority. An authority has the powers and duties delegated to the commissioners court by that subchapter. (l) Subchapter B, Chapter 181, Utilities Code, applies to the laying and maintenance of facilities used for conducting gas by a gas utility, as that term is defined by Section 181.021, Utilities Code, through, under, along, across, and over a transportation project or system constructed by an authority except as otherwise provided by this section. An authority has the powers and duties delegated to the commissioners court by that subchapter. (m) The laws of this state applicable to the use of public roads, streets, and waters by a telephone or telegraph corporation apply to the erection, construction, maintenance, location, and operation of a line, pole, or other fixture by a telephone or telegraph corporation over, under, across, on, and along a transportation project constructed by an authority under this chapter.
Sec. 370.171. LEASE, SALE, OR CONVEYANCE OF TRANSPORTATION PROJECT. An authority may lease, sell, or convey in any other manner a transportation project to a governmental entity with the approval of the governing body of the governmental entity to which the project is transferred.
Sec. 370.172. REVENUE. (a) An authority may: (1) impose tolls, fees, fares, or other charges for the use of each of its transportation projects and the different parts or sections of each of its transportation projects; and (2) subject to Subsection (j), contract with a person for the use of part of a transportation project, or lease or sell part of a transportation project, including the right-of-way adjoining the portion used to transport people and property, for any purpose, including placing on the adjoining right-of-way a gas station, garage, store, hotel, restaurant, parking facility, railroad track, billboard, livestock pasturage, telephone line or facility, telecommunication line or facility, data transmission line or facility, or electric line or facility, under terms set by the authority. (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 (2) creates reserves for a purpose listed under Subdivision (1). (c) Any toll, fee, fare, or other charge imposed on an owner of a public utility facility under this section must be imposed in a manner that is competitively neutral and nondiscriminatory among similarly situated users of the transportation project. (d) Tolls, fees, fares, or other usage charges are not subject to supervision or regulation by any agency of this state or another governmental entity. (e) Revenue derived from tolls, fees, and fares, and other revenue derived from a transportation project for which bonds are issued, other than any part necessary to pay the cost of maintenance, repair, and operation and to provide reserves for those costs as provided in the bond proceedings, shall be set aside at regular intervals as provided in the bond resolution or trust agreement in a sinking fund that is pledged to and charged with the payment of: (1) interest on the bonds as it becomes due; (2) principal of the bonds as it becomes due; (3) necessary charges of paying agents for paying principal and interest; (4) the redemption price or the purchase price of bonds retired by call or purchase as provided in the bond proceedings; and (5) any amounts due under credit agreements. (f) Use and disposition of money deposited to the credit of the sinking fund is subject to the bond proceedings. (g) To the extent permitted under the applicable bond proceedings, revenue from one transportation project of an authority may be used to pay the cost of another transportation project of the authority. (h) An authority may not use revenue from a transportation project in a manner not authorized by this chapter. Except as provided by this chapter, revenue derived from a transportation project may not be applied for a purpose or to pay a cost other than a cost or purpose that is reasonably related to or anticipated to be for the benefit of a transportation project. (i) An authority may not require the owner of a public utility facility to pay a fee as a condition of placing a facility across the rights-of-way. (j) If the transportation project is a project other than a public utility facility, an authority may contract for the use of part of a transportation project or lease or sell part of a transportation project under Subsection (a)(2) only to the extent that the contract, lease, or sale benefits the users of the transportation project.
Sec. 370.173. AUTHORITY REVOLVING FUND. (a) An authority may maintain a revolving fund to be held in trust by a banking institution chosen by the authority separate from any other funds and administered by the authority's board. (b) An authority may transfer into its revolving fund money from any permissible source, including: (1) money from a transportation project if the transfer does not diminish the money available for the project to less than any amount required to be retained by the bond proceedings pertaining to the project; (2) money received by the authority from any source and not otherwise committed, including money from the transfer of a transportation project or system or sale of authority assets; (3) money received from the state highway fund; and (4) contributions, loans, grants, or assistance from the United States, another state, another political subdivision of this state, a foreign governmental entity, including the United Mexican States or a state of the United Mexican States, a local government, any private enterprise, or any person. (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 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. (d) Money spent or advanced from the revolving fund for a transportation project must be reimbursed from the money of that transportation project. There must be a reasonable expectation of repayment at the time the expenditure or advancement is authorized.
Sec. 370.174. USE OF SURPLUS REVENUE. (a) Each year, if an authority determines that it has surplus revenue from transportation projects, it shall reduce tolls, spend the surplus revenue on other transportation projects in the counties of the authority in accordance with Subsection (b), or deposit the surplus revenue to the credit of the Texas Mobility Fund. (b) Consistent with other law and commission rule, an authority may spend surplus revenue on other transportation projects by: (1) constructing a transportation project located within the counties of the authority; (2) assisting in the financing of a toll or toll-free transportation project of another governmental entity; or (3) with the approval of the commission, constructing a toll or toll-free transportation project and, on completion of the project, transferring the project to another governmental entity if: (A) the other governmental entity authorizes the authority to construct the project and agrees to assume all liability and responsibility for the maintenance and operation of the project on its transfer; and (B) the project is constructed in compliance with all laws applicable to the governmental entity.
Sec. 370.175. EXEMPTION FROM TAXATION OR ASSESSMENT. (a) An authority is exempt from taxation of or assessments on: (1) a transportation project or system; (2) property the authority acquires or uses under this chapter for a transportation project or system; or (3) income from property described by Subdivision (1) or (2). (b) An authority is exempt from payment of development fees, utility connection fees, assessments, and service fees imposed or assessed by any governmental entity or any property owners' or homeowners' association. This subsection does not apply to fees or assessments charged under approved rate schedules or line extension policies of a municipally owned electric or gas utility.
Sec. 370.176. ACTIONS AFFECTING EXISTING ROADS. (a) An authority may impose a toll for transit over an existing free road, street, or public highway transferred to the authority under this chapter. (b) An authority may construct a grade separation at an intersection of a transportation project with a railroad or highway and change the line or grade of a highway to accommodate the design of the grade separation. The action may not affect a segment of the state highway system without the department's consent. The authority shall pay the cost of a grade separation and any damage incurred in changing a line or grade of a railroad or highway as part of the cost of the transportation project. (c) If feasible, an authority shall provide access to properties previously abutting a county road or other public road that is taken for a transportation project and shall pay abutting property owners the expenses or any resulting damages for a denial of access to the road. (d) If an authority changes the location of a segment of a county road as part of its development of a transportation project, the authority shall, on the request of the county, reconstruct that segment of the road at a location that the authority determines, in its discretion, restores the utility of the road. The reconstruction and its associated costs are in furtherance of a transportation project.
Sec. 370.177. FAILURE OR REFUSAL TO PAY TURNPIKE PROJECT TOLL; OFFENSE; ADMINISTRATIVE PENALTY. (a) The operator of a vehicle, other than an authorized emergency vehicle as defined by Section 541.201, that is driven or towed through a toll collection facility of a turnpike project shall pay the proper toll. The operator of a vehicle who drives or tows a vehicle through a toll collection facility and does not pay the proper toll commits an offense. An offense under this subsection is a misdemeanor punishable by a fine not to exceed $250. (b) In the event of nonpayment of the proper toll as required by Subsection (a), on issuance of a written notice of nonpayment, the registered owner of the nonpaying vehicle is liable for the payment of both the proper toll and an administrative fee. (c) The authority may impose and collect the administrative fee to recover the cost of collecting the unpaid toll, not to exceed $100. The authority shall send a written notice of nonpayment to the registered owner of the vehicle at that owner's address as shown in the vehicle registration records of the department by first class mail not later than the 30th day after the date of the alleged failure to pay and may require payment not sooner than the 30th day after the date the notice was mailed. The registered owner shall pay a separate toll and administrative fee for each event of nonpayment under Subsection (a). (d) The registered owner of a vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under Subsection (c) and fails to pay the proper toll and administrative fee within the time specified by the notice of nonpayment commits an offense. Each failure to pay a toll or administrative fee under this subsection is a separate offense. (e) It is an exception to the application of Subsection (b) or (d) that the registered owner of the vehicle is a lessor of the vehicle and not later than the 30th day after the date the notice of nonpayment is mailed provides to the authority a copy of the rental, lease, or other contract document covering the vehicle on the date of the nonpayment under Subsection (a), with the name and address of the lessee clearly legible. If the lessor provides the required information within the period prescribed, the authority may send a notice of nonpayment to the lessee at the address shown on the contract document by first class mail before the 30th day after the date of receipt of the required information from the lessor. The lessee of the vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under this subsection and fails to pay the proper toll and administrative fee within the time specified by the notice of nonpayment commits an offense. The lessee shall pay a separate toll and administrative fee for each event of nonpayment. Each failure to pay a toll or administrative fee under this subsection is a separate offense. (f) It is an exception to the application of Subsection (b) or (d) that the registered owner of the vehicle transferred ownership of the vehicle to another person before the event of nonpayment under Subsection (a) occurred, submitted written notice of the transfer to the department in accordance with Section 520.023, and before the 30th day after the date the notice of nonpayment is mailed, provides to the authority the name and address of the person to whom the vehicle was transferred. If the former owner of the vehicle provides the required information within the period prescribed, the authority may send a notice of nonpayment to the person to whom ownership of the vehicle was transferred at the address provided by the former owner by first class mail before the 30th day after the date of receipt of the required information from the former owner. The subsequent owner of the vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under this subsection and fails to pay the proper toll and administrative fee within the time specified by the notice of nonpayment commits an offense. The subsequent owner shall pay a separate toll and administrative fee for each event of nonpayment under Subsection (a). Each failure to pay a toll or administrative fee under this subsection is a separate offense. (g) An offense under Subsection (d), (e), or (f) is a misdemeanor punishable by a fine not to exceed $250. (h) The court in which a person is convicted of an offense under this section shall also collect the proper toll and administrative fee and forward the toll and fee to the authority. (i) In the prosecution of an offense under this section, proof that the vehicle passed through a toll collection facility without payment of the proper toll together with proof that the defendant was the registered owner or the driver of the vehicle when the failure to pay occurred, establishes the nonpayment of the registered owner. The proof may be by testimony of a peace officer or authority employee, video surveillance, or any other reasonable evidence. (j) It is a defense to prosecution under this section that the motor vehicle in question was stolen before the failure to pay the proper toll occurred and was not recovered by the time of the failure to pay, but only if the theft was reported to the appropriate law enforcement authority before the earlier of: (1) the occurrence of the failure to pay; or (2) eight hours after the discovery of the theft. (k) In this section, "registered owner" means the owner of a vehicle as shown on the vehicle registration records of the department or the analogous department or agency of another state or country.
Sec. 370.178. USE AND RETURN OF TRANSPONDERS. (a) For purposes of this section, "transponder" means a device placed on or within an automobile that is capable of transmitting or receiving information used to assess or collect tolls. A transponder is insufficiently funded if there is no money in the account for which the transponder was issued. (b) Any law enforcement or peace officer of an entity with which an authority has contracted under Section 370.181(c) may seize a stolen or insufficiently funded transponder and return it to the authority that issued the transponder. An insufficiently funded transponder may not be seized before the 30th day after the date that an authority has sent a notice of delinquency to the holder of the account. (c) The following entities shall consider offering motor vehicle operators the option of using a transponder to pay tolls without stopping, to mitigate congestion at toll locations, to enhance traffic flow, and to otherwise increase the efficiency of operations: (1) the authority; (2) an entity to which a project authorized by this chapter is transferred; or (3) a third-party service provider under contract with an entity described by Subdivision (1) or (2).
Sec. 370.179. CONTROLLED ACCESS TO TURNPIKE PROJECTS. (a) An authority by order may designate a turnpike project or a portion of a project as a controlled-access toll road. (b) An authority by order may: (1) prohibit the use of or access to or from a turnpike project by a motor vehicle, bicycle, another classification or type of vehicle, or a pedestrian; (2) deny access to or from: (A) a turnpike project; (B) real property adjacent to a turnpike project; or (C) a street, road, alley, highway, or other public or private way intersecting a turnpike project; (3) designate locations on a turnpike project at which access to or from the toll road is permitted; (4) control, restrict, and determine the type and extent of access permitted at a designated location of access to a turnpike project; or (5) erect appropriate protective devices to preserve the utility, integrity, and use of a turnpike project. (c) Denial of access to or from a segment of the state highway system is subject to the approval of the commission.
Sec. 370.180. PROMOTION OF TRANSPORTATION PROJECT. An authority may promote the use of a transportation project, including a project that it operates on behalf of another entity, by appropriate means, including advertising or marketing as the authority determines appropriate.
Sec. 370.181. OPERATION OF TRANSPORTATION PROJECT. (a) An authority shall operate a transportation project with employees of the authority or by using services contracted under Subsection (b) or (c). (b) An authority may enter into an agreement with one or more persons to provide, on terms and conditions approved by the authority, personnel and services to design, construct, operate, maintain, expand, enlarge, or extend the transportation project of the authority. (c) An authority may contract with any state or local government for the services of peace officers of that agency. (d) An authority may not directly provide water, wastewater, natural gas, petroleum pipeline, electric transmission, electric distribution, telecommunications, information, or cable television services. (e) Nothing in this chapter, or any contractual right obtained under a contract with an authority authorized by this chapter, supersedes or renders ineffective any provision of another law applicable to the owner or operator of a public utility facility, including any provision of the Utilities Code regarding licensing, certification, and regulatory jurisdiction of the Public Utility Commission of Texas or Railroad Commission of Texas. Sec. 370.182. AUDIT. (a) An authority shall have a certified public accountant audit the authority's books and accounts at least annually. The cost of the audit may be treated as part of the cost of construction or operation of a transportation project. (b) The commission may initiate an independent audit of the authority or any of its activities at any time the commission considers appropriate. An audit under this subsection shall be conducted at the expense of the department.
Sec. 370.183. DISADVANTAGED BUSINESSES. (a) Consistent with general law, an authority shall: (1) set goals for the award of contracts to disadvantaged businesses and attempt to meet the goals; (2) attempt to identify disadvantaged businesses that provide or have the potential to provide supplies, materials, equipment, or services to the authority; and (3) give disadvantaged businesses full access to the authority's contract bidding process, inform the businesses about the process, offer the businesses assistance concerning the process, and identify barriers to the businesses' participation in the process. (b) This section does not exempt an authority from competitive bidding requirements provided by other law.
Sec. 370.184. PROCUREMENT. An authority shall adopt rules governing the award of contracts for goods and services. Notwithstanding any other provision of state law, an authority may procure goods and services, including materials, engineering, design, construction, operations, maintenance, and other goods and services, through any procedure authorized by this chapter. Procurement of professional services is governed by Chapter 2254, Government Code.
Sec. 370.185. COMPETITIVE BIDDING. A contract made by an authority may be let by a competitive bidding procedure in which the contract is awarded to the lowest responsible bidder that complies with the authority's criteria.
Sec. 370.186. CONTRACTS WITH GOVERNMENTAL ENTITIES. (a) An authority may not construct, maintain, or operate a turnpike or toll project in an area having a governmental entity established under Chapter 284 or 366 unless the governmental entity and the authority enter into a written agreement specifying the terms and conditions under which the project shall be undertaken. An authority may not construct, maintain, or operate a transportation project that another governmental entity has determined to be a project under Chapter 451, 452, or 460 unless the governmental entity and the authority enter into a written agreement specifying the terms and conditions under which the project shall be undertaken. (b) An authority may not receive or be paid revenue derived by another governmental entity operating under Chapter 284, 366, 451, 452, or 460 unless the governmental entity and the authority enter into a written agreement specifying the terms and conditions under which the revenue shall be received by or paid to the authority.
Sec. 370.187. PROJECT APPROVAL. (a) An authority may not begin construction of a transportation project that will connect to the state highway system or to a department rail facility without the approval of the commission. (b) The commission by rule shall establish procedures and criteria for an approval under this section. The rules must require the commission to consider a request for project approval not later than the 60th day after the date the department receives all information reasonably necessary to review the request.
Sec. 370.188. ENVIRONMENTAL REVIEW OF AUTHORITY PROJECTS. (a) An authority shall adopt rules for environmental review of a transportation project that is not subject to review under the National Environmental Policy Act (42 U.S.C. Section 4321 et seq.), as amended. The rules must: (1) specify the types of projects for which a public hearing is required; (2) establish procedures for public comment on the environmental review, including a procedure for requesting a public hearing on an environmental review for which a public hearing is not required; and (3) require: (A) an evaluation of any direct or indirect environmental effect of the project; (B) an analysis of project alternatives; and (C) a written report that briefly explains the authority's review of the project and that specifies any mitigation measures on environmental harm on which the project is conditioned. (b) An environmental review of a project must be conducted before the authority may approve the location or alignment of the project. (c) The authority shall consider the results of the environmental review in executing its duties. (d) The authority shall coordinate with the Texas Commission on Environmental Quality and the Parks and Wildlife Department in the preparation of an environmental review. (e) This section does not prohibit an owner of a public utility facility or a proposed public utility facility from conducting any necessary environmental evaluation for the public utility facility. The authority is entitled to review and give final approval regarding the sufficiency of any environmental evaluation conducted for a facility that is part of a transportation project.
Sec. 370.189. DEPARTMENT MAINTENANCE AND OPERATION. (a) If requested by an authority, the department may agree to assume all or part of the duty to maintain or operate a turnpike project or ferry of the authority. (b) The authority shall reimburse the department for necessary costs of maintaining or operating the turnpike project or ferry as agreed by the department and the authority. (c) Money received by the department under Subsection (b) shall be deposited to the credit of the state highway fund and is exempt from the application of Sections 403.095 and 404.071, Government Code. (d) If the department assumes all of the duty to maintain or operate a turnpike project or ferry under Subsection (a), the authority is not liable for damages resulting from the maintenance or operation of the turnpike project or ferry. (e) An agreement under this section is not a joint enterprise for purposes of liability.
Sec. 370.190. PROPERTY OF CERTAIN TRANSPORTATION AUTHORITIES. An authority may not condemn or purchase real property of a transportation authority operating under Chapter 451, 452, or 460 unless the authority has entered into a written agreement with the transportation authority specifying the terms and conditions under which the condemnation or the purchase of the real property will take place.
Sec. 370.191. COMMERCIAL TRANSPORTATION PROCESSING SYSTEMS. (a) In this section, "port of entry" means a place designated by executive order of the president of the United States, by order of the United States secretary of the treasury, or by act of the United States Congress at which a customs officer is authorized to accept entries of merchandise, to collect duties, and to enforce the various provisions of the customs and navigation laws. (b) This section applies only to a port of entry for land traffic from the United Mexican States and does not apply to a port of entry for marine traffic. (c) To the extent an authority considers appropriate to expedite commerce and based on the Texas ITS/CVO Business Plan prepared by the department, the Department of Public Safety, and the comptroller, the authority shall provide for implementation by the appropriate agencies of the use of Intelligent Transportation Systems for Commercial Vehicle Operations (ITS/CVO) in any new commercial motor vehicle inspection facility constructed by the authority and in any existing facility located at a port of entry to which this section applies. The authority shall coordinate with other state and federal transportation officials to develop interoperability standards for the systems. (d) If an authority constructs a facility at which commercial vehicle safety inspections are conducted, the facility may not be used solely for the purpose of conducting commercial motor vehicle inspections by the Department of Public Safety and the facility must include implementation of ITS/CVO technology by the appropriate agencies to support all commercial motor vehicle regulation and enforcement functions. (e) As part of its implementation of technology under this section, an authority shall to the greatest extent possible as a requirement of the construction of the facility: (1) enhance efficiency and reduce complexity for motor carriers by providing a single point of contact between carriers and regulating state and federal government officials and providing a single point of information, available to wireless access, about federal and state regulatory and enforcement requirements; (2) prevent duplication of state and federal procedures and locations for regulatory and enforcement activities, including consolidation of collection of applicable fees; (3) link information systems of the authority, the department, the Department of Public Safety, the comptroller, and, to the extent possible, the United States Department of Transportation and other appropriate regulatory and enforcement entities; and (4) take other necessary action to: (A) facilitate the flow of commerce; (B) assist federal interdiction efforts; (C) protect the environment by reducing idling time of commercial motor vehicles at the facilities; (D) prevent highway damage caused by overweight commercial motor vehicles; and (E) seek federal funds to assist in the implementation of this section. (f) Construction of a facility to which this section applies is subject to the availability of federal funding for that purpose.
Sec. 370.192. PROPERTY OF RAPID TRANSIT AUTHORITIES. An authority may not condemn or purchase real property of a rapid transit authority operating pursuant to Chapter 451 that was confirmed before July 1, 1985, and in which the principal municipality has a population of less than 750,000, unless the authority has entered into a written agreement with the rapid transit authority specifying the terms and conditions under which the condemnation or the purchase of the real property will take place.
[Sections 370.193-370.250 reserved for expansion]
SUBCHAPTER F. GOVERNANCE
Sec. 370.251. BOARD OF DIRECTORS. (a) The governing body of an authority is a board of directors consisting of representatives of each county in which a transportation project of the authority is located or is proposed to be located. The commissioners court of each county that initially forms the authority shall appoint at least two directors to the board. Additional directors may be appointed to the board at the time of initial formation by agreement of the counties creating the authority to ensure fair representation of political subdivisions in the counties of the authority that will be affected by a transportation project of the authority, provided that the number of directors must be an odd number. The commissioners court of a county that is subsequently added to the authority shall appoint one director to the board. The governor shall appoint one director to the board who shall serve as the presiding officer of the board and shall appoint an additional director to the board if an appointment is necessary to maintain an odd number of directors on the board. (b) Unless the commissioners courts of the counties of the authority unanimously agree otherwise, the commissioners court of each county of an authority that contains an operating transportation project of the authority shall appoint one additional director. (c) Directors serve staggered six-year terms, with the terms of no more than one-third of the directors expiring on February 1 of each odd-numbered year. (d) One director appointed to the initial board of an authority by the commissioners court of a county shall be designated by the court to serve a term of two years and one director designated to serve a term of four years. If one or more directors are subsequently appointed to the board, the directors other than the subsequent appointees shall determine the length of the appointees' terms, to comply with Subsection (c). (e) If a vacancy occurs on the board, the appointing authority shall promptly appoint a successor to serve for the unexpired portion of the term. (f) All appointments to the board shall be made without regard to race, color, disability, sex, religion, age, or national origin. (g) The following individuals are ineligible to serve as a director: (1) an elected official; (2) a person who is not a resident of a county within the geographic area of the authority; (3) a department employee; (4) an employee of a governmental entity any part of which is located within the geographic boundaries of the authority; and (5) a person owning an interest in real property that will be acquired for an authority project, if it is known at the time of the person's proposed appointment that the property will be acquired for the authority project. (h) Each director has equal status and may vote. (i) The vote of a majority attending a board meeting is necessary for any action taken by the board. If a vacancy exists on a board, the majority of directors serving on the board is a quorum. (j) The commission may refuse to authorize the creation of an authority if the commission determines that the proposed board will not fairly represent political subdivisions in the counties of the authority that will be affected by the creation of the authority.
Sec. 370.2515. BOARD COMPOSITION PROPOSAL BY TURNPIKE AUTHORITY. If a county in which a turnpike authority under Chapter 366 operates or a county owning or operating a toll project under Chapter 284 is part of an authority, the turnpike authority or the county may submit to the commission a proposed structure for the board and a method of appointment to the board: (1) at the creation of the authority if the county is a county that initially forms an authority; (2) when a new county is added to the authority; and (3) when the county is initially added to the authority.
Sec. 370.252. PROHIBITED CONDUCT FOR DIRECTORS AND EMPLOYEES. (a) A director or employee of an authority may not: (1) accept or solicit any gift, favor, or service that: (A) might reasonably influence the director or employee in the discharge of an official duty; or (B) the director or employee knows or should know is being offered with the intent to influence the director's or employee's official conduct; (2) accept other employment or engage in a business or professional activity that the director or employee might reasonably expect would require or induce the director or employee to disclose confidential information acquired by reason of the official position; (3) accept other employment or compensation that could reasonably be expected to impair the director's or employee's independence of judgment in the performance of the director's or employee's official duties; (4) make personal investments that could reasonably be expected to create a substantial conflict between the director's or employee's private interest and the interest of the authority; (5) intentionally or knowingly solicit, accept, or agree to accept any benefit for having exercised the director's or employee's official powers or performed the director's or employee's official duties in favor of another; or (6) have a personal interest in an agreement executed by the authority. (b) A person is not eligible to serve as a director or chief administrative officer of an authority if the person or the person's spouse: (1) is employed by or participates in the management of a business entity or other organization, other than a governmental entity, that is regulated by or receives funds from the authority or the department; (2) directly or indirectly owns or controls more than a 10 percent interest in a business or other organization that is regulated by or receives funds from the authority or the department; (3) uses or receives a substantial amount of tangible goods, services, or funds from the authority or the department; or (4) is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the authority or the department. (c) A person is not eligible to serve as a director or chief administrative officer of an authority if the person is an officer, employee, or paid consultant of a Texas trade association in the field of road construction or maintenance, public transportation, or aviation, or if the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of road construction or maintenance, public transportation, or aviation. (d) In this section, "Texas trade association" means a nonprofit, cooperative, and voluntarily joined association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interests. (e) A person is not ineligible to serve as a director or chief administrative officer of an authority if the person has received funds from the department for acquisition of highway right-of-way unless the acquisition was for a project of the authority.
Sec. 370.253. SURETY BONDS. (a) Before beginning a term, each director shall execute a surety bond in the amount of $25,000, and the secretary and treasurer shall execute a surety bond in the amount of $50,000. (b) Each surety bond must be: (1) conditioned on the faithful performance of the duties of office; (2) executed by a surety company authorized to transact business in this state; and (3) filed with the secretary of state's office. (c) The authority shall pay the expense of the bonds.
Sec. 370.254. REMOVAL OF DIRECTOR. (a) It is a ground for removal of a director from the board if the director: (1) did not have at the time of appointment the qualifications required by Section 370.251; (2) at the time of appointment or at any time during the director's term, is ineligible under Section 370.251 or 370.252 to serve as a director; (3) cannot discharge the director's duties for a substantial part of the term for which the director is appointed because of illness or disability; or (4) is absent from more than half of the regularly scheduled board meetings that the director is eligible to attend during a calendar year. (b) The validity of an action of the board is not affected by the fact that it is taken when a ground for removal of a director exists. (c) If the chief administrative officer of the authority has knowledge that a potential ground for removal exists, that person shall notify the presiding officer of the board of the ground. The presiding officer shall then notify the person that appointed the director that a potential ground for removal exists.
Sec. 370.255. COMPENSATION OF DIRECTOR. Each director is entitled to reimbursement for the director's actual expenses necessarily incurred in the performance of the director's duties. A director is not entitled to any additional compensation for the director's services.
Sec. 370.256. EVIDENCE OF AUTHORITY ACTIONS. Actions of an authority are the actions of its board and may be evidenced in any legal manner, including a board resolution.
Sec. 370.257. PUBLIC ACCESS. An authority shall: (1) make and implement policies that provide the public with a reasonable opportunity to appear before the board to speak on any issue under the jurisdiction of the authority; and (2) prepare and maintain a written plan that describes how an individual who does not speak English or who has a physical, mental, or developmental disability may be provided reasonable access to the authority's programs.
Sec. 370.258. INDEMNIFICATION. (a) An authority may indemnify one or more of its directors or officers for necessary expenses and costs, including attorney's fees, incurred by the directors or officers in connection with any claim asserted against the directors or officers in their respective capacities as directors or officers. (b) If an authority does not fully indemnify a director or officer as provided by Subsection (a), the court in a proceeding in which any claim against the director or officer is asserted or any court with jurisdiction of an action instituted by the director or officer on a claim for indemnity may assess indemnity against the authority, its receiver, or trustee only if the court finds that, in connection with the claim, the director or officer is not guilty of negligence or misconduct. (c) A court may not assess indemnity under Subsection (b) for an amount paid by the director or officer to the authority. (d) This section applies to a current or former director or officer of the authority.
Sec. 370.259. PURCHASE OF LIABILITY INSURANCE. (a) An authority shall insure its officers and employees from liability arising from the use, operation, or maintenance of equipment that is used or may be used in connection with the laying out, construction, or maintenance of the authority's transportation projects. (b) Insurance coverage under this section must be provided by the purchase of a policy of liability insurance from a reliable insurance company authorized to do business in this state. The form of the policy must be approved by the commissioner of insurance. (c) This section is not a waiver of immunity of the authority or the counties in an authority from liability for the torts or negligence of an officer or employee of an authority. (d) In this section, "equipment" includes an automobile, motor truck, trailer, aircraft, motor grader, roller, tractor, tractor power mower, locomotive, rail car, and other power equipment.
Sec. 370.260. CERTAIN CONTRACTS AND SALES PROHIBITED. (a) A director, agent, or employee of an authority may not: (1) contract with the authority; or (2) be directly or indirectly interested in: (A) a contract with the authority; or (B) the sale of property to the authority. (b) A person who violates Subsection (a) is liable for a civil penalty to the authority in an amount not to exceed $1,000. Sec. 370.261. STRATEGIC PLANS AND ANNUAL REPORTS. (a) An authority shall make a strategic plan for its operations. A majority of the commissioners courts of the counties of the authority shall by concurrent resolution determine the types of information required to be included in the strategic plan. Each even-numbered year, an authority shall issue a plan covering the succeeding five fiscal years, beginning with the next odd-numbered fiscal year. (b) Not later than March 31 of each year, an authority shall file with the commissioners court of each county of the authority a written report on the authority's activities describing all transportation revenue bond issuances anticipated for the coming year, the financial condition of the authority, all project schedules, and the status of the authority's performance under the most recent strategic plan. At the invitation of a commissioners court of a county of the authority, representatives of the board and the administrative head of an authority shall appear before the commissioners court to present the report and receive questions and comments. (c) The authority shall give notice to the commissioners court of each county of the authority not later than the 90th day before the date of issuance of revenue bonds.
Sec. 370.262. MEETINGS BY TELEPHONE CONFERENCE CALL. (a) Chapter 551, Government Code, does not prohibit any open or closed meeting of the board, a committee of the board, or the staff, or any combination of the board or staff, from being held by telephone conference call. (b) A telephone conference call meeting is subject to the notice requirements applicable to other meetings. (c) Notice of a telephone conference call meeting that by law must be open to the public must specify the location of the meeting. The location must be a conference room of the authority or other facility in a county of the authority that is accessible to the public. (d) Each part of the telephone conference call meeting that by law must be open to the public shall be audible to the public at the location specified in the notice and shall be tape-recorded or documented by written minutes. On conclusion of the meeting, the tape recording or the written minutes of the meeting shall be made available to the public.
[Sections 370.263-370.300 reserved for expansion]
SUBCHAPTER G. PARTICIPATION IN FINANCING, CONSTRUCTION, AND OPERATION OF TRANSPORTATION PROJECTS
Sec. 370.301. DEPARTMENT CONTRIBUTIONS TO TURNPIKE PROJECTS. (a) The department may agree with an authority to provide for or contribute to the payment of costs of financial or engineering and traffic feasibility studies and the design, financing, acquisition, construction, operation, or maintenance of a turnpike project or system on terms agreed on by the commission or department, as applicable, and the authority. The agreement may not be inconsistent with the rights of the bondholders or persons operating the turnpike project under a lease or other contract. (b) The department may use its engineering and other personnel, including consulting engineers and traffic engineers, to conduct feasibility studies under Subsection (a). (c) An obligation or expense incurred by the commission or department under this section is a part of the cost of the turnpike project for which the obligation or expense was incurred. The commission or department may require money contributed by the commission or department under this section to be repaid from tolls or other revenue of the turnpike project on which the money was spent. Money repaid as required by the commission or department shall be deposited to the credit of the fund from which the contribution was made. Money deposited as required by this section is exempt from the application of Section 403.095, Government Code. (d) The commission or department may use federal money for any purpose described by this chapter. (e) A turnpike project developed by an authority may not be part of the state highway system unless otherwise agreed to by the authority and the department. (f) The commission may grant or loan department money to an authority for the acquisition of land for or the construction, maintenance, or operation of a turnpike project. The commission may require the authority to repay money provided under this section from toll revenue or other sources on terms established by the commission. (g) Money repaid as required by the commission shall be deposited to the credit of the fund from which the money was provided. Money deposited as required by this section is exempt from the application of Section 403.095, Government Code.
Sec. 370.302. AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE TRANSPORTATION PROJECTS. (a) An authority may enter into an agreement with a public or private entity, including a toll road corporation, the United States, a state of the United States, the United Mexican States, a state of the United Mexican States, another governmental entity, or a political subdivision, to permit the entity, independently or jointly with the authority, to study the feasibility of a transportation project or to acquire, design, finance, construct, maintain, repair, operate, extend, or expand a transportation project. An authority and a private entity jointly may enter into an agreement with another governmental entity to study the feasibility of a transportation project or to acquire, design, finance, construct, maintain, repair, operate, extend, or expand a transportation project. (b) An authority has broad discretion to negotiate provisions in a development agreement with a private entity. The provisions may include provisions relating to: (1) the design, financing, construction, maintenance, and operation of a transportation project in accordance with standards adopted by the authority; and (2) professional and consulting services to be rendered under standards adopted by the authority in connection with a transportation project. (c) An authority may not incur a financial obligation on behalf of, or guarantee the obligations of, a private entity that constructs, maintains, or operates a transportation project. (d) An authority or a county in an authority is not liable for any financial or other obligation of a transportation project solely because a private entity constructs, finances, or operates any part of a transportation project. (e) An authority may authorize the investment of public and private money, including debt and equity participation, to finance a function described by this section. (f) An authority may not directly provide water, wastewater, natural gas, petroleum pipeline, electric transmission, electric distribution, telecommunications, information, or cable television services. (g) Nothing in this chapter, or any contractual right obtained under a contract with an authority authorized by this chapter, supersedes or renders ineffective any provision of another law applicable to the owner or operator of a public utility facility, including any provision of the Utilities Code regarding licensing, certification, and regulatory jurisdiction of the Public Utility Commission of Texas or Railroad Commission of Texas.
Sec. 370.303. AGREEMENTS BETWEEN AUTHORITY AND LOCAL GOVERNMENTAL ENTITIES. (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 to acquire, construct, maintain, or operate a transportation project, 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 issue bonds, notes, or other obligations, create a taxing district or an entity to promote economic development, fund public improvements to promote economic development, or enter into and make payments under an agreement to acquire, construct, maintain, or operate any portion of a transportation project of the authority. An agreement may include a means for a local governmental entity to provide funds for a transportation project that benefits the governmental entity to be developed by the authority. (c) To make payments under an agreement under Subsection (b), to pay the interest on bonds issued under Subsection (b), or to provide a sinking fund for the bonds or the agreement, a governmental entity may: (1) pledge revenue from any available source, including annual appropriations; (2) impose and collect taxes; or (3) pledge revenue and impose and collect taxes. (d) The term of an agreement under this section may not exceed 40 years. (e) An election required to authorize action under this subchapter must be held in conformity with Chapter 1251, Government Code, or other law applicable to the governmental entity. (f) The governing body of any governmental entity issuing bonds, notes, or other obligations or entering into agreements under this section may exercise the authority granted to the governing body of an issuer with regard to issuance of obligations under Chapter 1371, Government Code, except that the prohibition in that chapter on the repayment of an obligation with ad valorem taxes does not apply to an issuer exercising the authority granted by this section. Sec. 370.304. ADDITIONAL AGREEMENTS OF AUTHORITY. An authority may enter into any agreement necessary or convenient to achieve the purposes of this subchapter.
Sec. 370.305. COMPREHENSIVE DEVELOPMENT AGREEMENTS. (a) An authority may use a comprehensive development agreement with a private entity to construct, maintain, repair, operate, extend, or expand a transportation project. (b) A comprehensive development agreement is an agreement with a private entity that, at a minimum, provides for the design and construction of a transportation project and may also provide for the financing, acquisition, maintenance, or operation of a transportation project. (c) An authority may negotiate provisions relating to professional and consulting services provided in connection with a comprehensive development agreement. (d) This section expires on August 31, 2011.
Sec. 370.306. PROCESS FOR ENTERING INTO COMPREHENSIVE DEVELOPMENT AGREEMENTS. (a) If an authority enters into a comprehensive development agreement, the authority shall use a competitive procurement process that provides the best value for the authority. The authority may accept unsolicited proposals for a proposed transportation project or solicit proposals in accordance with this section. (b) An authority shall establish rules and procedures for accepting unsolicited proposals that require the private entity to include in the proposal: (1) information regarding the proposed project location, scope, and limits; (2) information regarding the private entity's qualifications, experience, technical competence, and capability to develop the project; and (3) a proposed financial plan for the proposed project that includes, at a minimum: (A) projected project costs; and (B) proposed sources of funds. (c) An authority shall publish a request for competing proposals and qualifications in the Texas Register that includes the criteria used to evaluate the proposals, the relative weight given to the criteria, and a deadline by which proposals must be received if: (1) the authority decides to issue a request for qualifications for a proposed project; or (2) the authority authorizes the further evaluation of an unsolicited proposal. (d) A proposal submitted in response to a request published under Subsection (c) must contain, at a minimum, the information required by Subsections (b)(2) and (3). (e) An authority may interview a private entity submitting an unsolicited proposal or responding to a request under Subsection (c). The authority shall evaluate each proposal based on the criteria described in the notice. The authority must qualify at least two private entities to submit detailed proposals for a project under Subsection (f) unless the authority does not receive more than one proposal or one response to a request under Subsection (c). (f) An authority shall issue a request for detailed proposals from all private entities qualified under Subsection (e) if the authority proceeds with the further evaluation of a proposed project. A request under this subsection may require additional information relating to: (1) the private entity's qualifications and demonstrated technical competence; (2) the feasibility of developing the project as proposed; (3) detailed engineering or architectural designs; (4) the private entity's ability to meet schedules; (5) costing methodology; or (6) any other information the authority considers relevant or necessary. (g) In issuing a request for proposals under Subsection (f), an authority may solicit input from entities qualified under Subsection (e) or any other person. An authority may also solicit input regarding alternative technical concepts after issuing a request under Subsection (f). (h) An authority shall rank each proposal based on the criteria described in the request for proposals and select the private entity whose proposal offers the best value to the authority. (i) An authority may enter into discussions with the private entity whose proposal offers the apparent best value. The discussions shall be limited to: (1) incorporation of aspects of other proposals for the purpose of achieving the overall best value for the authority; (2) clarifications and minor adjustments in scheduling, cash flow, and similar items; and (3) matters that have arisen since the submission of the proposal. (j) If at any point in discussions under Subsection (i), it appears to the authority that the highest ranking proposal will not provide the authority with the overall best value, the authority may enter into discussions with the private entity submitting the next-highest ranking proposal. (k) An authority may withdraw a request for competing proposals and qualifications or a request for detailed proposals at any time. The authority may then publish a new request for competing proposals and qualifications. (l) An authority may require that an unsolicited proposal be accompanied by a nonrefundable fee sufficient to cover all or part of its cost to review the proposal. (m) An authority shall pay an unsuccessful private entity that submits a response to a request for detailed proposals under Subsection (f) a stipulated amount of the final contract price for any costs incurred in preparing that proposal. The stipulated amount must be stated in the request for proposals and may not exceed the value of any work product contained in the proposal that can, as determined by the authority, be used by the authority in the performance of its functions. The use by the authority of any design element contained in an unsuccessful proposal is at the sole risk and discretion of the authority and does not confer liability on the recipient of the stipulated amount under this subsection. After payment of the stipulated amount: (1) the authority owns the exclusive rights to, and may make use of any work product contained in, the proposal, including the technologies, techniques, methods, processes, and information contained in the project design; and (2) the work product contained in the proposal becomes the property of the authority. (n) An authority shall prescribe the general form of a comprehensive development agreement and may include any matter the authority considers advantageous to the authority. The authority and the private entity shall negotiate the specific terms of a comprehensive development agreement. (o) Subchapter A, Chapter 223, of this code and Chapter 2254, Government Code, do not apply to a comprehensive development agreement entered into under Section 370.305.
Sec. 370.307. CONFIDENTIALITY OF NEGOTIATIONS FOR COMPREHENSIVE DEVELOPMENT AGREEMENTS. (a) To encourage private entities to submit proposals under Section 370.306, the following information is confidential, is not subject to disclosure, inspection, or copying under Chapter 552, Government Code, and is not subject to disclosure, discovery, subpoena, or other means of legal compulsion for its release until a final contract for a proposed project is entered into: (1) all or part of a proposal submitted by a private entity for a comprehensive development agreement, except information provided under Sections 370.306(b)(1) and (2); (2) supplemental information or material submitted by a private entity in connection with a proposal for a comprehensive development agreement; and (3) information created or collected by an authority or its agent during consideration of a proposal for a comprehensive development agreement. (b) After an authority completes its final ranking of proposals under Section 370.306(h), the final rankings of each proposal under each of the published criteria are not confidential.
Sec. 370.308. PERFORMANCE AND PAYMENT SECURITY. (a) Notwithstanding Section 223.006 and the requirements of Subchapter B, Chapter 2253, Government Code, an authority shall require a private entity entering into a comprehensive development agreement under Section 370.305 to provide a performance and payment bond or an alternative form of security in an amount sufficient to: (1) ensure the proper performance of the agreement; and (2) protect: (A) the authority; and (B) payment bond beneficiaries who have a direct contractual relationship with the private entity or a subcontractor of the private entity to supply labor or material. (b) A performance and payment bond or alternative form of security shall be in an amount equal to the cost of constructing or maintaining the project. (c) If an authority determines that it is impracticable for a private entity to provide security in the amount described by Subsection (b), the authority shall set the amount of the bonds or the alternative forms of security. (d) A payment or performance bond or alternative form of security is not required for the portion of an agreement that includes only design or planning services, the performance of preliminary studies, or the acquisition of real property. (e) The amount of the payment security must not be less than the amount of the performance security. (f) In addition to performance and payment bonds, an authority may require the following alternative forms of security: (1) a cashier's check drawn on a financial entity specified by the authority; (2) a United States bond or note; (3) an irrevocable bank letter of credit; or (4) any other form of security determined suitable by the authority. (g) An authority by rule shall prescribe requirements for alternative forms of security provided under this section.
Sec. 370.309. OWNERSHIP OF TRANSPORTATION PROJECTS. (a) A transportation project other than a public utility facility that is the subject of a development agreement with a private entity, including the facilities acquired or constructed on the project, is public property and belongs to the authority. (b) Notwithstanding Subsection (a), an authority may enter into an agreement that provides for the lease of rights-of-way, the granting of easements, the issuance of franchises, licenses, or permits, or any lawful uses to enable a private entity to construct, operate, and maintain a transportation project, including supplemental facilities. At the termination of the agreement, the transportation project, including the facilities, must be in a state of proper maintenance as determined by the authority and shall be returned to the authority in satisfactory condition at no further cost.
Sec. 370.310. LIABILITY FOR PRIVATE OBLIGATIONS. An authority may not incur a financial obligation for a private entity that constructs, maintains, or operates a transportation project. The authority or a political subdivision of the state is not liable for any financial or other obligation of a transportation project solely because a private entity constructs, finances, or operates any part of the project.
Sec. 370.311. TERMS OF PRIVATE PARTICIPATION. (a) An authority shall negotiate the terms of private participation in a transportation project, including: (1) methods to determine the applicable cost, profit, and project distribution between the private equity investors and the authority; (2) reasonable methods to determine and classify toll rates or user fees; (3) acceptable safety and policing standards; and (4) other applicable professional, consulting, construction, operation, and maintenance standards, expenses, and costs. (b) A comprehensive development agreement entered into under Section 370.305 must include a provision authorizing the authority to purchase, under terms agreed to by the parties, the interest of a private equity investor in a transportation project. (c) An authority may only enter into a comprehensive development agreement under Section 370.305 with a private equity investor if the project is identified in the department's unified transportation program or is located on a transportation corridor identified in the statewide transportation plan.
Sec. 370.312. RULES, PROCEDURES, AND GUIDELINES GOVERNING NEGOTIATING PROCESS. (a) An authority shall adopt rules, procedures, and other guidelines governing selection and negotiations to promote fairness, obtain private participants in transportation projects, and promote confidence among those participants. The rules must contain criteria relating to the qualifications of the participants and the award of the contracts. (b) An authority shall have up-to-date procedures for participation in negotiations on transportation projects. (c) An authority has exclusive judgment to determine the terms of an agreement.
Sec. 370.313. PARTICIPATION ON CERTAIN OTHER BOARDS, COMMISSIONS, OR PUBLIC BODIES. (a) An authority may participate in and designate board members to serve as representatives on boards, commissions, or public bodies, the purposes of which are to promote the development of joint toll facilities in this state, between this state and other states of the United States, or between this state and the United Mexican States or states of the United Mexican States. (b) A fee or expense associated with authority participation under this section may be reimbursed from money in the authority's feasibility study fund.
Sec. 370.314. COMBINATION OF ENGINEERING, DESIGN, AND CONSTRUCTION SERVICES. An authority may procure a combination of engineering, design, and construction services in a single procurement for a transportation project provided that any contract awarded must be the one that results in the best value to the authority.
Sec. 370.315. PERFORMANCE AND PAYMENT BONDS AND SECURITY. Notwithstanding Chapter 2253, Government Code, an authority shall require any party to an agreement to operate or maintain a transportation project to provide performance and payment bonds or other forms of security, including corporate guarantee, in amounts considered by the authority to be adequate to protect the authority and to assure performance of all obligations to the authority and to subcontractors providing materials or labor for a transportation project.
Sec. 370.316. TRANS-TEXAS CORRIDOR PROJECTS. In the event that an authority is requested by the commission to participate in the development of a transportation project that has been designated as part of the Trans-Texas Corridor, the authority shall have, in addition to all powers granted in this chapter, all powers of the department related to the development of Trans-Texas Corridor projects.
[Sections 370.317-370.330 reserved for expansion]
SUBCHAPTER H. DISSOLUTION OF AUTHORITY
Sec. 370.331. VOLUNTARY DISSOLUTION. (a) An authority may not be dissolved unless the dissolution is approved by the commission. (b) A board may submit a request to the commission for approval to dissolve. (c) The commission may approve a request to dissolve only if: (1) 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; (2) 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 (3) the authority has commitments from other governmental entities to assume jurisdiction of all authority transportation facilities.
Sec. 370.332. INVOLUNTARY DISSOLUTION. (a) The commission by order may require an authority to dissolve if the commission determines that the authority has not substantially complied with the requirements of a commission rule or an agreement between the department and the authority. (b) The commission may not require dissolution unless: (1) the conditions described in Sections 370.331(c)(1) and (2) have been met; and (2) the holders of any indebtedness have evidenced their agreement to the dissolution. SECTION 2.02. Section 361.003, Transportation Code, is repealed. SECTION 2.03. (a) This article takes effect immediately if this Act receives a vote of two-thirds of all 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 article takes effect September 1, 2003. (b) This article does not affect the term of a member of the board of directors of a regional mobility authority serving on the effective date of this article.
ARTICLE 3. ADVANCE ACQUISITION OF PROPERTY
SECTION 3.01. The heading to Chapter 202, Transportation Code, is amended to read as follows:
CHAPTER 202. CONTROL OF TRANSPORTATION [HIGHWAY] ASSETS
SECTION 3.02. Chapter 202, Transportation Code, is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. ADVANCE ACQUISITION OF PROPERTY
Sec. 202.111. DEFINITION. In this subchapter, "advance acquisition" means an acquisition by the commission under Section 202.112.
Sec. 202.112. ADVANCE ACQUISITIONS. (a) The commission may purchase an option to acquire property for possible use in or in connection with a transportation facility, including a facility as defined by Section 227.001, before a final decision has been made as to whether the transportation facility will be located on that property. (b) An advance acquisition shall be made by the commission using the procedures authorized under Subchapter D of Chapter 203 or other law authorizing the commission or the department to acquire real property or an interest in real property for a transportation facility. If the commission acquires real property or an interest in real property under Subchapter D of Chapter 203 or other law, the commission may make an advance acquisition in the manner provided by this subchapter. (c) The commission may not make an advance acquisition by condemnation.
Sec. 202.113. DISPOSAL OF SURPLUS PROPERTY. The commission shall dispose of property acquired by advance acquisition that is not needed for a transportation facility in the manner provided by Subchapter B.
Sec. 202.114. MANAGEMENT. If requested by the department, property acquired by advance acquisition may be managed by the General Land Office on behalf of the department as the department and the General Land Office may agree. Subchapter E, Chapter 31, Natural Resources Code, does not apply to property acquired under this subchapter.
ARTICLE 4. RAIL FACILITIES
SECTION 4.01. Title 5, Transportation Code, is amended by adding Subtitle A to read as follows:
SUBTITLE A. TEXAS DEPARTMENT OF TRANSPORTATION
CHAPTER 91. RAIL FACILITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 91.001. DEFINITIONS. In this chapter: (1) "Commission" means the Texas Transportation Commission. (2) "Construction" includes design, planning, and preliminary studies. (3) "Department" means the Texas Department of Transportation. (4) "Maintenance facility" includes: (A) a workshop; (B) a service, storage, security, or personnel facility; and (C) equipment for a facility described by Paragraph (A) or (B). (5) "Operation" includes policing. (6) "Rail facility" means real or personal property, or any interest in that property, that is determined to be necessary or convenient for the provision of a freight or passenger rail facility or system, including commuter rail, intercity rail, and high-speed rail. The term includes all property or interests necessary or convenient for the acquiring, providing, using, or equipping of a rail facility or system, including rights-of-way, trackwork, train controls, stations, and maintenance facilities. (7) "Revenue" includes a charge, toll, rent, payment, user fee, franchise fee, license fee, fare, tariff, and other consideration: (A) received in return for the use of: (i) a rail facility; or (ii) a service offered in connection with the operation of a rail facility; or (B) resulting from a sale or conveyance of a rail facility. (8) "Right-of-way" means a strip of land of a length and width determined by the commission to be required, necessary, or convenient for the provision of a rail facility or system and the space over, under, or on the land where trackwork is to be located. (9) "Station" means a passenger or freight service building, terminal, station, ticketing facility, waiting area, platform, concession, elevator, escalator, facility for handicapped access, access road, parking facility for passengers, baggage handling facility, or local maintenance facility, together with any interest in real property necessary or convenient for those items. (10) "Surplus revenue" means: (A) revenue that exceeds the department's debt service requirements, coverage requirements of any bond indenture, costs of operation and maintenance, and cost of expansion or improvement of a rail facility or system; and (B) reserves and reserve funds maintained by the department under this chapter. (11) "Trackwork" means track, track beds, track bed preparation, ties, rail fasteners, slabs, rails, emergency crossovers, setout tracks, storage tracks, drains, fences, ballast, switches, bridges, and structures. (12) "Train controls" includes: (A) signals, lights, and other signaling; (B) interlocking equipment; (C) speed monitoring equipment; (D) braking systems; (E) central traffic control facilities; and (F) communication systems.
Sec. 91.002. PUBLIC PURPOSE. The following functions are public and governmental functions, exercised for a public purpose, and matters of public necessity: (1) the acquisition, financing, construction, operation, and maintenance of a rail facility under this chapter; (2) the sale, lease, or license of a rail facility to a rail operator and other public or private persons under this chapter; and (3) the exercise of any other power granted under this chapter to the commission and the department.
Sec. 91.003. RULES. The commission may adopt rules and the department may adopt procedures and prescribe forms necessary to implement this chapter.
Sec. 91.004. GENERAL POWERS. The department may: (1) plan and make policies for the location, construction, maintenance, and operation of a rail facility or system in this state; (2) acquire, finance, construct, maintain, and subject to Section 91.005, operate a passenger or freight rail facility, individually or as one or more systems; (3) for the purpose of acquiring or financing a rail facility or system, accept a grant or loan from a: (A) department or agency of the United States; (B) department, agency, or political subdivision of this state; or (C) public or private person; (4) contract with a public or private person to finance, construct, maintain, or operate a rail facility under this chapter; or (5) perform any act necessary to the full exercise of the department's powers under this chapter.
Sec. 91.005. RELIANCE ON PRIVATE ENTITIES. The department shall contract with a private entity to operate a railroad using facilities owned by the department and may not use department employees to operate a railroad. The department may maintain a railroad facility directly or through a private entity. The department may not own rolling stock.
Sec. 91.006. COOPERATION OF STATE AGENCIES AND POLITICAL SUBDIVISIONS. Within available resources, an agency or political subdivision of this state shall cooperate with and assist the department in exercising its powers and duties under this chapter.
Sec. 91.007. NOTIFICATION OF INTENT TO ABANDON OR DISCONTINUE SERVICE. On receipt of notice of intent to abandon or discontinue rail service served under 49 C.F.R. Section 1152.20, as amended, the department shall coordinate with the governing body of a municipality, county, or rural rail transportation district in which all or a segment of the line is located to determine whether: (1) the department should acquire the rail facility to which the notice relates; or (2) any other actions should be taken to provide for continued rail transportation service.
[Sections 91.008-91.030 reserved for expansion]
SUBCHAPTER B. ACQUISITION AND DEVELOPMENT OF RAIL FACILITIES
Sec. 91.031. ESTABLISHMENT OF RAIL SYSTEMS. (a) If the commission determines that the provision of rail transportation services would be most efficiently and economically met by jointly operating two or more rail facilities as one operational and financial enterprise, it may create a system composed of those facilities. (b) The commission may create more than one system and may combine two or more systems into one system. (c) The department may finance, acquire, construct, and operate additional rail facilities as additions to and expansions of the system if the commission determines that the facility would most efficiently and economically be acquired and constructed if it were a part of the system and that the addition will benefit the system. (d) The revenue of a system shall be accounted for separately and may not be commingled with the revenue of a rail facility that is not part of the system.
Sec. 91.032. ACQUISITION OF RAIL FACILITIES. (a) The commission may authorize the department to acquire an existing rail facility at a location and on a route the commission determines to be feasible and viable for rail transportation service. (b) The department may enter into an agreement with the owner of an operating railroad for the acquisition or use of a rail facility on terms the department considers to be in the best interest of the state.
Sec. 91.033. ENVIRONMENTAL REVIEW. (a) The department shall conduct or approve all environmental evaluations or studies required for the construction, maintenance, or operation of a rail facility. (b) The commission may adopt rules to allocate responsibility for conducting an environmental evaluation or study or preparing environmental documentation among entities involved in the construction, maintenance, or operation of a rail facility under this chapter.
Sec. 91.034. ENVIRONMENTAL MITIGATION. (a) The department may acquire, maintain, hold, restore, enhance, develop, or redevelop property for the purpose of mitigating a past, present, or future adverse environmental effect arising from the construction, maintenance, or operation of a rail facility without regard to whether the need for mitigation has already been established for a particular project. (b) The department may contract with a governmental or private entity to maintain, control, hold, restore, enhance, develop, or redevelop property for the mitigation of a past, present, or future adverse environmental effect arising from the construction, maintenance, or operation of a rail facility without regard to whether the need for mitigation has already been established for a particular project. (c) If authorized by the applicable regulatory authority, the department may pay an amount of money to an appropriate governmental or private entity instead of acquiring or managing property for the mitigation of a past, present, or future adverse environmental effect arising from construction, maintenance, or operation of a rail facility without regard to whether the need for mitigation has already been established for a particular project.
Sec. 91.035. USE OF FACILITIES BELONGING TO PUBLIC OR PRIVATE ENTITY. (a) The department, for the purpose of acquiring, constructing, maintaining, and operating freight or passenger rail facilities and systems in this state, may: (1) use a street, alley, road, highway, or other public way of a municipality, county, or other political subdivision with the consent of that political subdivision; and (2) at the expense of the department, relocate, raise, reroute, or change the grade of the construction of a street, alley, highway, road, railroad, electric line and facility, telegraph and telephone property and facility, pipeline and facility, conduit and facility, and other properties, whether publicly or privately owned, as necessary or useful in the construction, maintenance, and operation of a rail facility or system. (b) The department shall provide reasonable notice to the owner of the applicable facility of the need for the alteration under Subsection (a)(2) and allow that owner the opportunity to complete the alteration.
Sec. 91.036. EXPENDITURE OF FUNDS. Subject to Section 91.071(b), the department may receive, accept, and expend funds from this state, a federal agency, or other public or private source for: (1) rail planning; (2) studies to determine the viability of a rail facility for rail transportation service; (3) studies to determine the necessity for the department's acquisition or construction of a rail facility; and (4) the acquisition, construction, maintenance, or operation of a rail facility under this chapter, including the assessment and remediation of environmental contamination existing in or on a rail facility.
Sec. 91.0361. CERTAIN FREIGHT RAILROAD PROJECTS. (a) If sufficient funds from bonds sold to construct the Central Texas turnpike project or from the Texas mobility fund are available, the department may, and is strongly encouraged to, use the funds for engineering, design, grading, and construction necessary to create a grade-separated freight rail line capable of being safely traveled by trains operating at not less than 80 miles per hour in or adjacent to the State Highway 130 corridor. (b) The department may, and is strongly encouraged to, enter into negotiations with any Class I railroad concerning building and operating a freight railroad in or adjacent to the State Highway 130 corridor. The department may explore with any Class I railroad the possibility of operating the freight railroad line in or adjacent to the State Highway 130 corridor as a revenue-producing partnership that could benefit this state and the current holders of bonds used in the financing of State Highway 130. (c) This section may not be construed to allow any delay in the current published schedule for the construction and completion of State Highway 130.
Sec. 91.037. CONTRACTS WITH GOVERNMENTAL ENTITIES. This chapter does not apply to real or personal property, facilities, funding, projects, operations, construction, or a project plan of a transportation authority created under Chapter 451, 452, or 460 unless the commission or its designee has signed a written agreement with the transportation authority specifying the terms and conditions under which the transportation authority may participate.
[Sections 91.038-91.050 reserved for expansion]
SUBCHAPTER C. CONTRACTS
Sec. 91.051. AWARDING OF CONTRACTS. Unless otherwise provided by this subchapter, a contract made by the department for the construction, maintenance, or operation of a rail facility must be let by a competitive bidding procedure in which the contract is awarded to the lowest responsible bidder that complies with the department's criteria.
Sec. 91.052. AGREEMENTS TO CONSTRUCT, MAINTAIN, AND OPERATE RAIL FACILITIES. The department may enter into an agreement with a public entity, including a political subdivision of this state, to permit the entity, independently or jointly with the department, to acquire, construct, maintain, or operate a rail facility or system.
Sec. 91.053. SMALL AND DISADVANTAGED BUSINESSES. (a) The department shall: (1) set goals for the award of contracts to small and disadvantaged businesses and attempt to meet the goals; (2) attempt to identify small and disadvantaged businesses that provide or have the potential to provide supplies, materials, equipment, or services to the department; and (3) give small and disadvantaged businesses full access to the department's contract bidding process and other contracting processes, inform the businesses about those processes, offer the businesses assistance concerning those processes, and identify barriers to the businesses' participation in those processes. (b) This section does not exempt the department from competitive bidding requirements imposed by other law.
[Sections 91.054-91.070 reserved for expansion]
SUBCHAPTER D. FINANCING OF RAIL FACILITIES
Sec. 91.071. PERMISSIBLE SOURCES OF FUNDING. (a) The department may use any legally permissible source of funding in acquiring, constructing, maintaining, and operating a rail facility or system, including: (1) appropriations from the state highway fund that are not dedicated for another purpose by Section 7-a or 7-b, Article VIII, Texas Constitution; (2) proceeds from bonds secured by the Texas Mobility Fund; (3) donations, whether in kind or in cash; and (4) loans from the state infrastructure bank. (b) Each fiscal year, the total amount disbursed by the department out of federal and state funds shall not exceed $12.5 million. This subsection does not apply to: (1) disbursements for the acquisition or construction of rail lines on the Trans-Texas Corridor; (2) the acquisition of abandoned rail facilities described in Section 91.007; (3) funding derived from the issuance of bonds, private investment, donations, and grants or loans from the Federal Railroad Administration or Federal Transit Administration; and (4) grading and bed preparation.
Sec. 91.072. FINANCING OF RAIL FACILITIES AND SYSTEMS. (a) The commission and the department have the same powers and duties relating to the financing of a rail facility or a system established under Section 91.031 as the commission and the department have under Subchapter E, Chapter 361, relating to the financing of a turnpike project, including the ability to deposit the proceeds of bonds or other obligations and to pledge, encumber, and expend such proceeds and revenues as provided in Chapter 361. (b) The powers held by the commission and the department include the power to: (1) authorize the issuance of bonds to pay all or part of the cost of acquiring, constructing, maintaining, or operating a rail facility or system; (2) maintain separate accounts for bond proceeds and the revenues of a rail facility or system, and pledge those revenues and proceeds to the payment of bonds or other obligations issued or entered into with respect to the facility or system; (3) impose fees, rents, and other charges for the use of a rail facility or system; and (4) obtain from another source the fees and other revenue necessary to pay all or part of the principal and interest on bonds issued under this chapter. (c) For purposes of this section, a reference in Subchapter E, Chapter 361 to: (1) a turnpike project means a rail facility or system; and (2) revenue includes a fee, rent, or other usage charge established under this chapter or other money received under Sections 91.073 and 91.074.
Sec. 91.073. GRANTS AND LOANS. The department may apply for, accept, and expend money from grants, loans, or reimbursements for any purpose of this chapter, including paying for the cost of the acquisition, construction, maintenance, and operation of a rail facility or system.
Sec. 91.074. REVENUE. (a) The department may require a person, including any public or private entity, to pay a fee as a condition of using any part of a rail facility or system. The department may not require a person to pay a fee in connection with the placement, maintenance, or other use of a public utility facility. (b) The department shall establish and maintain rents or other compensation for the use of rail facilities or systems in an amount that is, together with other revenue of the department received under this chapter, sufficient to enable the department to comply with the requirements of Section 91.072. (c) The department may contract with a person for the use of all or part of a rail facility or system or may lease or sell all or part of a rail facility or system, including all or any part of the right-of-way adjoining trackwork, for any purpose, including placing on the adjoining right-of-way a storage or transfer facility, warehouse, garage, parking facility, telecommunication line or facility, restaurant, or gas station. (d) The department shall not unreasonably discriminate in deciding who may use any part of a rail facility or system. (e) All revenue received by the department under this chapter: (1) shall be deposited to the credit of the state highway fund and may be used for any purpose authorized by this chapter; and (2) is exempt from the application of Section 403.095, Government Code.
[Sections 91.075-91.090 reserved for expansion]
SUBCHAPTER E. ACQUISITION AND DISPOSAL OF PROPERTY
Sec. 91.091. ACQUISITION OF REAL PROPERTY. (a) The commission may authorize the department to acquire in the name of the state a right-of-way, a property right, or other interest in real property determined to be necessary or convenient for the department's acquisition, construction, maintenance, or operation of rail facilities. (b) The commission may authorize the department to acquire property by any method, including purchase and condemnation. Property may be purchased under any terms determined by the department to be in the best interest of the state. (c) Property may be purchased along alternative potential routes for a rail facility even if only one of those potential routes will ultimately be chosen as the final route. Sec. 91.092. PROPERTY NECESSARY OR CONVENIENT FOR RAIL FACILITIES. Property necessary or convenient for the department's acquisition, construction, maintenance, or operation of rail facilities includes an interest in real property or a property right the commission determines is necessary or convenient to provide: (1) right-of-way for a location for: (A) a rail facility; or (B) the future expansion of a rail facility; (2) land for mitigation of adverse environmental effects; (3) buffer zones for scenic or safety purposes; and (4) revenue for use in acquiring, constructing, maintaining, or operating a rail facility or system, including revenue received under a contract described by Section 91.074(c). Sec. 91.093. RIGHT OF ENTRY. (a) To acquire property necessary or convenient for a rail facility, the department may enter any premises or real property, including a body of water, to make a survey, geotechnical evaluation, sounding, or examination. (b) An entry under Subsection (a) or (d) is not: (1) a trespass; or (2) an entry under a pending condemnation procedure. (c) The department shall make reimbursements for actual damages that result from an entry under Subsection (a) or (d). (d) To ensure the safety and convenience of the public, the department shall, when entering any real property, water, or premises on which is located a public utility facility: (1) comply with applicable industry standard safety codes and practices; and (2) notwithstanding Subsection (a), give the owner or operator of the public utility facility not less than 10 days' notice before entering the real property, water, or premises.
Sec. 91.094. CONVEYANCE OF PROPERTY BELONGING TO POLITICAL SUBDIVISION OR PUBLIC AGENCY. The governing body of a municipality, county, political subdivision, or public agency may, without advertisement, convey the title to or a right in property determined to be necessary or convenient by the department under this subchapter.
Sec. 91.095. DISPOSAL OF PROPERTY. The department may sell, convey, or otherwise dispose of any rights or other interests in real property acquired under this subchapter that the commission determines are no longer needed for department purposes.
[Sections 91.096-91.100 reserved for expansion]
SUBCHAPTER F. OPERATION AND USE OF RAIL FACILITIES
Sec. 91.101. CONTRACTS FOR RAIL TRANSPORTATION SERVICES. The department may contract with a county or other political subdivision of the state for the department to provide rail transportation services on terms agreed to by the parties.
Sec. 91.102. CONTRACTS WITH RAIL OPERATORS. (a) The department may lease all or part of a rail facility or system to a rail operator. The department may contract with a rail operator for the use or operation of all or part of a rail facility or system. (b) The department shall encourage to the maximum extent practical the participation of private enterprise in the operation of rail facilities and systems. (c) A lease agreement shall provide for the department's monitoring of a rail operator's service and performance. (d) The department may enter into an agreement with a rail operator to sell all or any part of state-owned rail facilities on terms the department considers to be in the best interest of the state.
Sec. 91.103. JOINT USE OF RAIL FACILITIES. The department may: (1) enter into an agreement with a rail operator, public utility, private utility, communication system, common carrier, or transportation system for the common use of its facilities, installations, or properties; and (2) establish through routes, joint fares, and, subject to approval of a tariff-regulating body having jurisdiction, divisions of tariffs.
Sec. 91.104. ROUTINGS. The department may determine routings for rail facilities acquired, constructed, or operated by the department under this chapter.
Sec. 91.105. PLACEMENT OF UTILITY FACILITIES, LINES, AND EQUIPMENT. (a) A utility has the same right to place its facilities, lines, or equipment in, over, or across right-of-way that is part of a state-owned rail facility as the utility has with respect to the right-of-way of a state highway under Chapter 181, Utilities Code. A utility shall notify the department of the utility's intention to exercise authority over right-of-way that is part of state-owned rail facilities. (b) On receipt of notice under Subsection (a), the department may designate the location in the right-of-way where the utility may place its facilities, lines, or equipment. (c) The department may require a utility to relocate the utility's facilities, lines, or equipment, at the utility's expense, to allow for the expansion or relocation of rail facilities owned by the state. A relocation under this subsection must be accomplished pursuant to Subsections (e)-(j). The department shall pay for the cost of the relocation. If a utility facility is replaced, the cost of replacement is limited to an amount equal to the cost of replacing the facility with a comparable facility, less the net salvage value of the replaced facility. (d) A utility may use and operate a facility required to be relocated under this section at the new location for the same period and on the same terms as the utility had the right to do at the previous location of the facility. (e) If the department determines that a public utility facility must be relocated, the utility and the department shall negotiate in good faith to establish reasonable terms and conditions concerning the responsibilities of the parties with regard to sharing of information about the project and the planning and implementation of any necessary relocation of a public utility facility. (f) The department shall use its best efforts to provide an affected utility with plans and drawings of the project that are sufficient to enable the utility to develop plans for, and determine the cost of, the necessary relocation of the public utility facility. If the department and the affected utility enter into an agreement after negotiations under Subsection (e), the terms and conditions of the agreement govern the relocation of public utility facilities covered by the agreement. (g) If the department and an affected utility do not enter into an agreement under Subsection (e), the department shall provide to the affected utility: (1) written notice of the department's determination that the public utility facility must be removed; (2) a final plan for relocation of the public utility facility; and (3) reasonable terms and conditions for an agreement with the utility for the relocation of the public utility facility. (h) Not later than the 90th day after the date a utility receives the notice from the department, including the plan and agreement terms and conditions under Subsection (g), the utility shall enter into an agreement with the department that provides for the relocation. (i) If the utility fails to enter into an agreement within the 90-day period under Subsection (h), the department may relocate the public utility facility at the sole cost and expense of the utility less any reimbursement of costs that would have been payable to the utility under applicable law. A relocation by the department under this subsection shall be conducted in full compliance with applicable law, using standard equipment and construction practices compatible with the utility's existing facilities, and in a manner that minimizes disruption of utility service. (j) The 90-day period under Subsection (h) may be extended: (1) by mutual agreement between the department and the utility; or (2) for any period during which the utility is negotiating in good faith with the department to relocate its facility.
SECTION 4.02. Section 2, Chapter 1244, Acts of the 77th Legislature, Regular Session, 2001 (Article 6550c-2, Vernon's Texas Civil Statutes), is repealed.
SECTION 4.03. This article takes effect immediately if this Act 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 article takes effect September 1, 2003.
ARTICLE 5. ISSUANCE OF BONDS AND OTHER PUBLIC SECURITIES
SECTION 5.01. Subchapter A, Chapter 222, Transportation Code, is amended by adding Section 222.003 to read as follows: Sec. 222.003. ISSUANCE OF BONDS SECURED BY STATE HIGHWAY FUND. (a) The commission may issue bonds and other public securities secured by a pledge of and payable from revenue deposited to the credit of the state highway fund. (b) The aggregate principal amount of the bonds and other public securities that are issued may not exceed $3 billion. The commission may only issue bonds or other public securities in an aggregate principal amount of not more than $1 billion each year. (c) Proceeds from the sale of bonds and other public securities issued under this section shall be used to fund state highway improvement projects. (d) Of the aggregate principal amount of bonds and other public securities that may be issued under this section, the commission shall issue bonds or other public securities in an aggregate principal amount of $600 million to fund projects that reduce accidents or correct or improve hazardous locations on the state highway system. The commission by rule shall prescribe criteria for selecting projects eligible for funding under this section. In establishing criteria for the projects, the commission shall consider accident data, traffic volume, pavement geometry, and other conditions that can create or exacerbate hazardous roadway conditions. (e) The proceeds of bonds and other public securities issued under this section may not be used for any purpose other than any costs related to the bonds and other public securities and the purposes for which revenues are dedicated under Section 7-a, Article VIII, Texas Constitution. The proceeds of bonds and other public securities issued under this section may not be used for the construction of a state highway or other facility on the Trans-Texas Corridor. For purposes of this section, the "Trans-Texas Corridor" means the statewide system of multimodal facilities under the jurisdiction of the department that is designated by the commission, notwithstanding the name given to that corridor. (f) The commission may enter into credit agreements, as defined by Chapter 1371, Government Code, relating to the bonds and other public securities authorized by this section. The agreements may be secured by and payable from the same sources as the bonds and other public securities. (g) All laws affecting the issuance of bonds and other public securities by governmental entities, including Chapters 1201, 1202, 1204, 1207, 1231, and 1371, Government Code, apply to the issuing of bonds and other public securities and the entering into of credit agreements under this section. (h) The proceeds of bonds and other public securities issued under this section may be used to: (1) finance other funds relating to the public security, including debt service reserve and contingency; and (2) pay the cost or expense of the issuance of the public security. (i) Bonds and other public securities and credit agreements authorized by this section may not have a principal amount or terms that, at the time the bonds or other public securities are issued or the agreements entered into, are expected by the commission to cause annual expenditures with respect to the obligations to exceed 10 percent of the amount deposited to the credit of the state highway fund in the immediately preceding year. (j) Bonds and other public securities issued under this section may be sold in such manner and subject to such terms and provisions as set forth in the order authorizing their issuance, and such bonds and other public securities must mature not later than 20 years after their dates of issuance, subject to any refundings or renewals. (k) The comptroller shall withdraw from the state highway fund and forward at the direction of the commission to another person the amounts as determined by the commission to permit timely payment of: (1) the principal of and interest on the bonds and other public securities that mature or become due; and (2) any cost related to the bonds and other public securities that become due, including payments under credit agreements. SECTION 5.02. This article takes effect on the date on which the constitutional amendment proposed by the 78th Legislature, Regular Session, 2003, that authorizes the legislature to provide for the issuance of bonds and other public securities secured by the state highway fund for highway improvement projects takes effect. If that amendment is not approved by the voters, this article has no effect.
ARTICLE 6. PASS-THROUGH TOLLS
SECTION 6.01. Subchapter E, Chapter 222, Transportation Code, is amended by adding Section 222.104 to read as follows: Sec. 222.104. PASS-THROUGH TOLLS. (a) In this section, "pass-through toll" means a per vehicle fee or a per vehicle mile fee that is determined by the number of vehicles using a highway. (b) The department may enter into an agreement with a public or private entity that provides for the payment of pass-through tolls to the public or private entity as reimbursement for the construction, maintenance, or operation of a toll or nontoll facility on the state highway system by the public or private entity. (c) The department may enter into an agreement with a regional mobility authority, a regional tollway authority, or a county acting under Chapter 284 that provides for the payment of pass-through tolls to the authority or county as compensation for the payment of all or a portion of the costs of maintaining a state highway or a portion of a state highway converted to a toll facility of the authority or county that the department estimates it would have incurred if the highway had not been converted. (d) The department may use any available funds for the purpose of making a pass-through toll payment under this section. (e) The commission may adopt rules necessary to implement this section. Rules adopted under this subsection may establish criteria for: (1) determining the amount of pass-through tolls to be paid under this section; and (2) allocating the risk that traffic volume will be higher or lower than the parties to an agreement under this section anticipated in entering the agreement.
SECTION 6.02. This article takes effect immediately if this Act 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 article takes effect September 1, 2003.
ARTICLE 7. CONVERSION OF NONTOLL STATE HIGHWAY
SECTION 7.01. Subchapter A, Chapter 284, Transportation Code, is amended by adding Section 284.009 to read as follows:
Sec. 284.009. CONVEYANCE OF STATE HIGHWAY TO COUNTY. (a) The commission may convey a nontoll state highway or a segment of a nontoll state highway, including real property acquired to construct or operate the highway, to a county for operation and maintenance as a project under this chapter if: (1) the proposed conveyance is approved by the commissioners court of each county within which the highway is located; (2) the commission determines that the proposed conveyance will improve overall mobility in the region or is the most feasible and economic means of accomplishing necessary improvements to the highway; (3) any funds paid by the department for the construction, maintenance, and operation of the conveyed highway are repaid to the department; and (4) the county agrees to assume all liability and responsibility for the maintenance and operation of the conveyed highway on its conveyance. (b) The commission may only make a conveyance under this section if the commission determines that the conveyance is the most feasible and economic means to accomplish necessary expansions, extensions, or improvements of the conveyed segment of the highway. Tolls may not be collected by an authority from a conveyed segment of highway except to finance the expansion, extension, operation, and maintenance of that highway segment. (c) A county that receives a nontoll state highway or a segment of a nontoll state highway under Subsection (a) may own, operate, and maintain the highway as a pooled project under Section 284.065. (d) The commission shall, at the time of a conveyance, remove the highway or segment of highway from the state highway system. After a conveyance, the department has no liability, responsibility, or duty for the maintenance or operation of the highway or segment. (e) The commission may waive all or a portion of an amount due under Subsection (a)(3) if it finds that the conveyance will result in substantial net benefits to the state, the department, and the traveling public that equal or exceed the amount of payment waived. (f) Before conveying a nontoll state highway or a segment of a nontoll state highway under this section, the commission shall conduct a public hearing to receive comments from interested persons concerning the proposed conveyance. Notice of the hearing shall be published in the Texas Register and in one or more newspapers of general circulation in any county in which the highway or segment is located. (g) The commission shall adopt rules implementing this section, including criteria and guidelines for approval of a conveyance of a highway or segment. (h) Funds received by the department under this section: (1) shall be deposited to the credit of the state highway fund; and (2) are exempt from the application of Section 403.095, Government Code.
SECTION 7.02. Section 362.0041, Transportation Code, is amended by amending Subsections (a), (c), and (d) and adding Subsections (e)-(g) to read as follows: (a) Except as provided in Subsections [Subsection] (d) and (g), [if] the commission may by order convert [finds that the conversion of] a segment of the free state highway system to a toll facility if it determines that the conversion will improve overall mobility in the region or is the most feasible and economic means to accomplish necessary expansion, improvements, or extensions to that segment of the state highway system[, that segment may be converted by order of the commission to a turnpike project under Chapter 361]. (c) The commission shall adopt rules implementing this section, including [such rules to include] criteria and guidelines for the approval of a conversion of a highway. (d) The commission may not convert the Queen Isabella Causeway in Cameron County to a toll facility [turnpike project]. (e) Subchapter G, Chapter 361, applies to a highway converted to a toll facility under this section. (f) Toll revenue collected under this section: (1) shall be deposited in the state highway fund; (2) may be used by the department to finance the improvement, extension, expansion, or operation of the converted segment of highway and may not be collected except for those purposes; and (3) is exempt from the application of Section 403.095, Government Code. (g) The commission may only convert a segment of the state highway system under this section if the conversion is approved by the commissioners court of each county within which the segment is located.
ARTICLE 8. COMMERCIAL DRIVER'S LICENSES
SECTION 8.01. Section 522.003(25), Transportation Code, is amended to read as follows: (25) "Serious traffic violation" means: (A) a conviction arising from the driving of a commercial motor vehicle, other than a parking, vehicle weight, or vehicle defect violation, for: (i) [(A)] excessive speeding, involving a single charge of driving 15 miles per hour or more above the posted speed limit; (ii) [(B)] reckless driving, as defined by state or local law; (iii) [(C)] a violation of a state or local law related to motor vehicle traffic control, including a law regulating the operation of vehicles on highways, arising in connection with a fatal accident; (iv) [(D)] improper or erratic traffic lane change; (v) [(E)] following the vehicle ahead too closely; or (vi) [(F) operating] a [commercial motor vehicle in] violation of Sections [Section] 522.011 or 522.042; or (B) a violation of Section 522.015.
SECTION 8.02. Section 522.081, Transportation Code, is amended to read as follows: Sec. 522.081. DISQUALIFICATION. (a) This subsection applies [only] to a violation committed while operating any motor vehicle, including a commercial motor vehicle. A person who holds a commercial driver's license is disqualified from driving a commercial motor vehicle for: (1) 60 days if convicted of: (A) two serious traffic violations that occur within a three-year period; or (B) one violation of a law that regulates the operation of a motor vehicle at a railroad grade crossing; or (2) 120 days if convicted of: (A) three serious traffic violations arising from separate incidents occurring within a three-year period; or (B) two violations of a law that regulates the operation of a motor vehicle at a railroad grade crossing that occur within a three-year period[; or[(3) one year if convicted of three violations of a law that regulates the operation of a motor vehicle at a railroad grade crossing that occur within a three-year period]. (b) This subsection applies to a violation committed while operating any motor vehicle, including a commercial motor vehicle, except as provided by this subsection. A person who holds a commercial driver's license is disqualified from driving a commercial motor vehicle for one year: (1) if convicted of three violations of a law that regulates the operation of a motor vehicle at a railroad grade crossing that occur within a three-year period; (2) on first conviction of: (A) [(1)] driving a [commercial] motor vehicle under the influence of alcohol or a controlled substance, including a violation of Section 49.04 or 49.07, Penal Code; (B) [(2) driving a commercial motor vehicle while the person's alcohol concentration was 0.04 or more;[(3) intentionally] leaving the scene of an accident involving a [commercial] motor vehicle driven by the person; (C) [(4)] using a [commercial] motor vehicle in the commission of a felony, other than a felony described by Subsection (d)(2); (D) [(5) refusing to submit to a test to determine the person's alcohol concentration or the presence in the person's body of a controlled substance or drug while driving a commercial motor vehicle;[(6)] causing the death of another person through the negligent or criminal operation of a [commercial] motor vehicle; or (E) [(7)] driving a commercial motor vehicle while the person's commercial driver's license is revoked, suspended, or canceled, or while the person is disqualified from driving a commercial motor vehicle, for an action or conduct that occurred while operating a commercial motor vehicle; (3) for refusing to submit to a test under Chapter 724 to determine the person's alcohol concentration or the presence in the person's body of a controlled substance or drug while operating a motor vehicle in a public place; or (4) if an analysis of the person's blood, breath, or urine under Chapter 724 determines that the person: (A) had an alcohol concentration of 0.04 or more, or that a controlled substance or drug was present in the person's body, while operating a commercial motor vehicle in a public place; or (B) had an alcohol concentration of 0.08 or more while operating a motor vehicle, other than a commercial motor vehicle, in a public place. (c) A person who holds a commercial driver's license is disqualified from operating a commercial motor vehicle for three years if: (1) the person: (A) is convicted of an offense [If a violation] listed in Subsection (b)(2) and the vehicle being operated by the person was transporting a hazardous material required to be placarded; or (B) refuses to submit to a test under Chapter 724 to determine the person's alcohol concentration or the presence in the person's body of a controlled substance or drug while operating a motor vehicle in a public place and the vehicle being operated by the person was transporting a hazardous material required to be placarded; or (2) an analysis of the person's blood, breath, or urine under Chapter 724 determines that while transporting a hazardous material required to be placarded the person: (A) while operating a commercial motor vehicle in a public place had an alcohol concentration of 0.04 or more, or a controlled substance or drug present in the person's body; or (B) while operating a motor vehicle, other than a commercial motor vehicle, in a public place had an alcohol concentration of 0.08 or more [(b) occurred while the person was transporting a hazardous material required to be placarded, the person is disqualified for three years]. (d) A person is disqualified from driving a commercial motor vehicle for life: (1) if the person [:[(1)] is convicted [of] two or more times [violations] of an offense specified by Subsection (b)(2) [(b)], or a combination of those offenses, arising from two or more separate incidents; [or] (2) if the person uses a [commercial] motor vehicle in the commission of a felony involving: (A) the manufacture, distribution, or dispensing of a controlled substance; or (B) possession with intent to manufacture, distribute, or dispense a controlled substance; or (3) for any combination of two or more of the following, arising from two or more separate incidents: (A) a conviction of the person for an offense described by Subsection (b)(2); (B) a refusal by the person described by Subsection (b)(3); and (C) an analysis of the person's blood, breath, or urine described by Subsection (b)(4). (e) A person may not be issued a commercial driver's license and is disqualified from operating a commercial motor vehicle if, in connection with the person's operation of a commercial motor vehicle, the person commits an offense or engages in conduct that would disqualify the holder of a commercial driver's license from operating a commercial motor vehicle, or is determined to have had an alcohol concentration of 0.04 or more or to have had a controlled substance or drug present in the person's body. The period of prohibition under this subsection is equal to the appropriate period of disqualification required by Subsections (a)-(d). (f) In this section, "felony" means an offense under state or federal law that is punishable by death or imprisonment for a term of more than one year. SECTION 8.03. Section 522.087, Transportation Code, is amended to read as follows: Sec. 522.087. PROCEDURES APPLICABLE TO DISQUALIFICATION. (a) A person is automatically disqualified under Section 522.081(a)(1)(B), Section 522.081(b)(2) [522.081(b)(1), (3), (4), (6), or (7)], or Section 522.081(d)(2). An appeal may not be taken from the disqualification. (b) Disqualifying a person under Section 522.081(a), other than under Subdivision (1)(B) of that subsection, Section 522.081(b)(1), or Section 522.081(d)(1) or (3) is subject to the notice and hearing procedures of Sections 521.295-521.303. An appeal of the disqualification is subject to Section 521.308. SECTION 8.04. Section 543.202(b), Transportation Code, is amended to read as follows: (b) The record must be made on a form or by a data processing method acceptable to the department and must include: (1) the name, address, physical description, including race or ethnicity, date of birth, and driver's license number of the person charged; (2) the registration number of the vehicle involved; (3) whether the vehicle was a commercial motor vehicle as defined by Chapter 522 or was involved in transporting hazardous materials; (4) the person's social security number, if the person was operating a commercial motor vehicle or was the holder of a commercial driver's license or commercial driver learner's permit; (5) the date and nature of the offense, including whether the offense was a serious traffic violation as defined by Chapter 522; (6) whether a search of the vehicle was conducted and whether consent for the search was obtained; (7) the plea, the judgment, whether the individual was adjudicated under Article 45.0511, Code of Criminal Procedure, and whether bail was forfeited; (8) the date of conviction; and (9) the amount of the fine or forfeiture. SECTION 8.05. Section 543.101, Transportation Code, is repealed. SECTION 8.06. (a) This article takes effect June 1, 2005. (b) Sections 522.081 and 522.087, Transportation Code, as amended by this article, apply only to conduct that is engaged in or to an offense that is committed on or after the effective date of this article. Conduct that is engaged in or an offense committed before the effective date of this article is governed by Sections 522.081 and 522.087, Transportation Code, as those sections existed immediately before the effective date of this article, and the former law is continued in effect for that purpose.
ARTICLE 9. MOTOR VEHICLE SALES TAX
SECTION 9.01. Chapter 152, Tax Code, is amended by amending Section 152.121 and adding Section 152.123 to read as follows: Sec. 152.121. TAX SENT TO COMPTROLLER. (a) After crediting the amounts as provided by Section 152.123, a [The] county tax assessor-collector shall send [the] money collected from taxes and penalties imposed by this chapter to the comptroller as follows: (1) on the 10th day of each month if during the last preceding state fiscal year less than $2 million of the taxes and penalties imposed by this chapter was collected by the office of the county tax assessor-collector; (2) once each week if during the last preceding state fiscal year $2 million or more, but less than $10 million, of the taxes and penalties imposed by this chapter was collected by the office of the county tax assessor-collector; or (3) daily (as collected) if during the last preceding state fiscal year $10 million or more of the taxes and penalties imposed by this chapter was collected by the office of the county tax assessor-collector. (b) Taxes on metal dealer plates collected by the Texas Department of Transportation shall be deposited by the department in the state treasury in the same manner as are other taxes collected under this chapter. (c) If the amount of net collections under Chapter 502, Transportation Code, and this chapter is insufficient to cover the amount of those net collections authorized to be retained by a county as a percentage of the tax and penalties collected under this chapter, the comptroller shall on request of the county tax assessor-collector authorize the county to retain a portion of the tax and penalties collected under this chapter to cover the deficiency.
Sec. 152.123. TAX RETAINED BY COUNTY. (a) The county tax assessor-collector each calendar year shall calculate five percent of the tax and penalties collected by the county tax assessor-collector under this chapter in the preceding calendar year. In addition, the county tax assessor-collector shall calculate each calendar year an amount equal to five percent of the tax and penalties that the comptroller: (1) collected under Section 152.047 in the preceding calendar year; and (2) determines are attributable to sales in the county. (b) The county shall retain the following percentage of the amounts calculated under Subsection (a) during each of the following fiscal years: (1) in fiscal year 2006, 10 percent; (2) in fiscal year 2007, 20 percent; (3) in fiscal year 2008, 30 percent; (4) in fiscal year 2009, 40 percent; (5) in fiscal year 2010, 50 percent; (6) in fiscal year 2011, 60 percent; (7) in fiscal year 2012, 70 percent; (8) in fiscal year 2013, 80 percent; (9) in fiscal year 2014, 90 percent; (10) in fiscal year 2015 and succeeding years, 100 percent. (c) The county shall credit the amounts retained under Subsection (b) to the county's general fund. SECTION 9.02. Section 502.102(b), Transportation Code, is amended to read as follows: (b) Each Monday, a county assessor-collector shall credit to the county road and bridge fund an amount equal to the net collections made during the preceding week until the amount so credited for the calendar year equals the total of: (1) $60,000; (2) $350 for each mile of county road maintained by the county, according to the most recent information available from the department, not to exceed 500 miles; and (3) an additional amount of fees equal to the amount calculated under Section 502.1025 [an amount equal to five percent of the tax and penalties collected by the assessor-collector under Chapter 152, Tax Code, in the preceding calendar year; and[(4) an amount equal to five percent of the tax and penalties collected by the comptroller under Section 152.047, Tax Code, in the preceding calendar year]. SECTION 9.03. Chapter 502, Transportation Code, is amended by adding Section 502.1025 to read as follows: Sec. 502.1025. CALCULATION OF ADDITIONAL FEE AMOUNTS RETAINED BY A COUNTY. (a) The county tax assessor-collector each calendar year shall calculate five percent of the tax and penalties collected by the county tax assessor-collector under Chapter 152, Tax Code, in the preceding calendar year. In addition, the county tax assessor-collector shall calculate each calendar year an amount equal to five percent of the tax and penalties that the comptroller: (1) collected under Section 152.047, Tax Code, in the preceding calendar year; and (2) determines are attributable to sales in the county. (b) A county tax assessor-collector shall retain under Section 502.102(b) fees based on the following percentage of the amounts calculated under subsection (a) during each of the following fiscal years: (1) in fiscal year 2006, 90 percent; (2) in fiscal year 2007, 80 percent; (3) in fiscal year 2008, 70 percent; (4) in fiscal year 2009, 60 percent; (5) in fiscal year 2010, 50 percent; (6) in fiscal year 2011, 40 percent; (7) in fiscal year 2012, 30 percent; (8) in fiscal year 2013, 20 percent; (9) in fiscal year 2014, 10 percent; (10) in fiscal year 2015 and succeeding years, 0 percent. (c) The county shall credit the amounts retained under Subsection (b) to the county road and bridge fund. Money credited to the fund under this section may only be used for: (1) county road construction, maintenance, and repair; (2) bridge construction, maintenance, and repair; (3) the purchase of right-of-way for road or highway purposes; or (4) the relocation of utilities for road or highway purposes. SECTION 9.04. Section 502.108(e), Transportation Code, is repealed. SECTION 9.05. This article takes effect September 1, 2005.
ARTICLE 10. DRIVER RESPONSIBILITY
SECTION 10.01. Subtitle I, Title 7, Transportation Code, is amended by adding Chapter 708 to read as follows:
CHAPTER 708. DRIVER RESPONSIBILITY PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 708.001. DEFINITIONS. In this chapter, "department" and "license" have the meanings assigned by Section 521.001. Sec. 708.002. RULES. The department shall adopt and enforce rules to implement and enforce this chapter. Sec. 708.003. FINAL CONVICTIONS. For purposes of this chapter, a conviction for an offense to which this chapter applies is a final conviction, regardless of whether the sentence isprobated.
[Sections 708.004-708.050 reserved for expansion]
SUBCHAPTER B. DRIVER'S LICENSE POINTS SURCHARGE
Sec. 708.051. NONAPPLICABILITY. This subchapter does not apply to: (1) a conviction that became final before September 1, 2003; or (2) an offense covered by Subchapter C. Sec. 708.052. ASSIGNMENT OF POINTS FOR CERTAIN CONVICTIONS. (a) The driver's license of a person accumulates a point under this subchapter as of the date the department records a conviction of the person under Section 521.042 or other applicable law. (b) For each conviction arising out of a separate transaction, the department shall assign points to a person's license as follows: (1) two points for a moving violation of the traffic law of this state or another state that is not described by Subdivision (2); and (2) three points for a moving violation of the traffic law of this state, another state, or a political subdivision of this or another state that resulted in an accident. (c) The department by rule shall designate the offenses that constitute a moving violation of the traffic law under this section. (d) Notwithstanding Subsection (b), the department may not assign points to a person's driver's license if the offense of which the person was convicted is the offense of speeding and the person was at the time of the offense driving less than 10 percent faster than the posted speed limit. This subsection does not apply to an offense committed in a school crossing zone as defined by Section 541.302. (e) Notwithstanding Subsection (b), the department may not assign points to a person's license if the offense committed by the person was adjudicated under Article 45.051 or 45.0511, Code of Criminal Procedure. Sec. 708.053. ANNUAL SURCHARGE FOR POINTS. Each year, the department shall assess a surcharge on the license of a person who has accumulated six or more points under this subchapter during the preceding 36-month period. Sec. 708.054. AMOUNT OF POINTS SURCHARGE. The amount of a surcharge under this chapter is $100 for the first six points and $25 for each additional point. Sec. 708.055. NOTICE OF ASSIGNMENT OF FIFTH POINT. The department shall notify the holder of a driver's license of the assignment of a fifth point on that license by first class mail sent to the person's most recent address as shown on the records of the department.
[Sections 708.056-708.100 reserved for expansion]
SUBCHAPTER C. SURCHARGES FOR CERTAIN CONVICTIONS AND
LICENSE SUSPENSIONS
Sec. 708.101. NONAPPLICABILITY. This subchapter does not apply to a conviction that became final before September 1, 2003. Sec. 708.102. SURCHARGE FOR CONVICTION OF CERTAIN INTOXICATED DRIVER OFFENSES. (a) In this section, "offense relating to the operating of a motor vehicle while intoxicated" has the meaning assigned by Section 49.09, Penal Code. (b) Each year the department shall assess a surcharge on the license of each person who during the preceding 36-month period has been finally convicted of an offense relating to the operating of a motor vehicle while intoxicated. (c) The amount of a surcharge under this section is $1,000 per year, except that the amount of the surcharge is: (1) $1,500 per year for a second or subsequent conviction within a 36-month period; and (2) $2,000 for a first or subsequent conviction if it is shown on the trial of the offense that an analysis of a specimen of the person's blood, breath, or urine showed an alcohol concentration level of 0.16 or more at the time the analysis was performed. (d) A surcharge under this section for the same conviction may not be assessed in more than three years. Sec. 708.103. SURCHARGE FOR CONVICTION OF DRIVING WHILE LICENSE INVALID OR WITHOUT FINANCIAL RESPONSIBILITY. (a) Each year the department shall assess a surcharge on the license of each person who during the preceding 36-month period has been convicted of an offense under Section 521.457, 601.191, or 601.371. (b) The amount of a surcharge under this section is $250 per year. Sec. 708.104. SURCHARGE FOR CONVICTION OF DRIVING WITHOUT VALID LICENSE. (a) Each year the department shall assess a surcharge on the license of a person who during the preceding 36-month period has been convicted of an offense under Section 521.021. (b) The amount of a surcharge under this section is $100 per year. (c) A surcharge under this section for the same conviction may not be assessed in more than three years.
[Sections 708.105-708.150 reserved for expansion]
SUBCHAPTER D. COLLECTION OF SURCHARGES
Sec. 708.151. NOTICE OF SURCHARGE. The department shall notify the holder of a driver's license of the assessment of a surcharge on that license by first class mail sent to the person's most recent address as shown on the records of the department. The notice must specify the date by which the surcharge must be paid and state the consequences of a failure to pay the surcharge. Sec. 708.152. FAILURE TO PAY SURCHARGE. (a) If before the 30th day after the date the department sends a notice under Section 708.151 the person fails to pay the amount of a surcharge on the person's license or fails to enter into an installment payment agreement with the department, the license of the person is automatically suspended. (b) A license suspended under this section remains suspended until the person pays the amount of the surcharge and any related costs. Sec. 708.153. INSTALLMENT PAYMENT OF SURCHARGE. (a) The department by rule shall provide for the payment of a surcharge in installments. (b) A rule under this section: (1) may not permit a person to pay a surcharge: (A) of less than $2,300 over a period of more than 12 consecutive months; or (B) of $2,300 or more over a period of more than 24 consecutive months; and (2) may provide that if the person fails to make a required installment payment, the department may declare the amount of the unpaid surcharge immediately due and payable. Sec. 708.154. CREDIT CARD PAYMENT OF SURCHARGE. (a) The department by rule may authorize the payment of a surcharge by use of a credit card. The rules shall require the person to pay all costs incurred by the department in connection with the acceptance of the credit card. (b) If a surcharge or a related cost is paid by credit card and the amount is subsequently reversed by the issuer of the credit card, the license of the person is automatically suspended. (c) A license suspended under this section remains suspended until the person pays the amount of the surcharge and any related costs.
Sec. 708.155. CONTRACTS FOR COLLECTION OF SURCHARGES. The department may enter into a contract with a private attorney or a public or private vendor for the provision of services for the collection of surcharges receivable under this chapter. The total amount of compensation may not exceed the amount set in Article 103.0031, Code of Criminal Procedure.
Sec. 708.156. REMITTANCE OF SURCHARGES COLLECTED TO COMPTROLLER. Each surcharge collected by the department under this chapter shall be remitted to the comptroller as required by Section 780.002, Health and Safety Code.
SECTION 10.02. Subtitle B, Title 9, Health and Safety Code, is amended by adding Chapter 780 to read as follows:
CHAPTER 780. TRAUMA FACILITIES AND EMERGENCY MEDICAL SERVICES
Sec. 780.001. DEFINITIONS. In this chapter: (1) "Account" means the designated trauma facility and emergency medical services account established under Section 780.003. (2) "Commissioner" means the commissioner of public health. (3) "Department" means the Texas Department of Health.
Sec. 780.002. DEPOSITS TO ACCOUNT. (a) On the first Monday of each month, the Department of Public Safety shall remit the surcharges collected during the previous month under the driver responsibility program operated by that department under Chapter 708, Transportation Code, to the comptroller. (b) The comptroller shall deposit 49.5 percent of the money received under Subsection (a) to the credit of the account established under this chapter and 49.5 percent of the money to the general revenue fund. The remaining one percent of the amount of the surcharges shall be deposited to the general revenue fund and may be appropriated only to the Department of Public Safety for administration of the driver responsibility program operated by that department under Chapter 708, Transportation Code. (c) Notwithstanding Subsection (b), in any state fiscal year the comptroller shall deposit 49.5 percent of the surcharges collected under Chapter 708, Transportation Code, to the credit of the general revenue fund only until the total amount of the surcharges deposited to the credit of the general revenue fund under Subsection (b), and the court costs deposited to the credit of that fund under Section 542.4031(g)(1), Transportation Code, equals $250 million for that year. If in any state fiscal year the amount received by the comptroller under those laws exceeds $250 million, the comptroller shall deposit 49.5 percent of the additional amount received under Subsection (a) to the account established under this chapter and 49.5 percent of the additional amount to the credit of the Texas mobility fund. Sec. 780.003. ACCOUNT. (a) The designated trauma facility and emergency medical services account is created as a dedicated account in the general revenue fund of the state treasury. Money in the account may be appropriated only to the department for the purposes described by Section 780.004. (b) The account is composed of money deposited to the credit of the account under Section 780.002, and the earnings of the account. (c) Sections 403.095 and 404.071, Government Code, do not apply to the account.
Sec. 780.004. PAYMENTS FROM THE ACCOUNT. (a) The commissioner, with advice and counsel from the chairpersons of the trauma service area regional advisory councils, shall use money appropriated from the account established under this chapter to fund designated trauma facilities, county and regional emergency medical services, and trauma care systems in accordance with this section. (b) The commissioner shall maintain a reserve of $500,000 of money appropriated from the account for extraordinary emergencies. (c) In any fiscal year, the commissioner shall use at least 96 percent of the money appropriated from the account, after any amount necessary to maintain the reserve established by Subsection (b) is deducted, to fund a portion of the uncompensated trauma care provided at facilities designated as state trauma facilities by the department or an undesignated facility in active pursuit of designation. Funds may be disbursed under this subsection based on a proportionate share of uncompensated trauma care provided in the state and may be used to fund innovative projects to enhance the delivery of patient care in the overall emergency medical services and trauma care system. (d) In any fiscal year, the commissioner shall use not more than two percent of the money appropriated from the account, after any amount necessary to maintain the reserve established by Subsection (b) is deducted, to fund, in connection with an effort to provide coordination with the appropriate trauma service area, the cost of supplies, operational expenses, education and training, equipment, vehicles, and communications systems for local emergency medical services. The money shall be distributed on behalf of eligible recipients in each county to the trauma service area regional advisory council for that county. To receive a distribution under this subsection, the regional advisory council must be incorporated as an entity that is exempt from federal income tax under Section 501(a), Internal Revenue Code of 1986, and its subsequent amendments, by being listed as an exempt organization under Section 501(c)(3) of that code. The share of the money allocated to the eligible recipients in a county's geographic area shall be based on the relative geographic size and population of the county and on the relative number of emergency or trauma care runs performed by eligible recipients in the county. Money that is not disbursed by a regional advisory council to eligible recipients for approved functions by the end of the fiscal year in which the funds were disbursed shall be returned to the department to be used in accordance with Subsection (c). (e) In any fiscal year, the commissioner may use not more than one percent of the money appropriated from the account, after any amount necessary to maintain the reserve established by Subsection (b) is deducted, for operation of the 22 trauma service areas and for equipment, communications, and education and training for the areas. Money distributed under this subsection shall be distributed on behalf of eligible recipients in each county to the trauma service area regional advisory council for that county. To receive a distribution under this subsection, the regional advisory council must be incorporated as an entity that is exempt from federal income tax under Section 501(a), Internal Revenue Code of 1986, and its subsequent amendments, by being listed as an exempt organization under Section 501(c)(3) of that code. A regional advisory council's share of money distributed under this section shall be based on the relative geographic size and population of each trauma service area and on the relative amount of trauma care provided. Money that is not disbursed by a regional advisory council to eligible recipients for approved functions by the end of the fiscal year in which the funds were disbursed shall be returned to the department to be used in accordance with Subsection (c). (f) In any fiscal year, the commissioner may use not more than one percent of money appropriated from the account, after any amount necessary to maintain the reserve established by Subsection (b) is deducted, to fund the administrative costs of the bureau of emergency management of the department associated with administering the trauma program, the state emergency medical services program, and the account and to fund the costs of monitoring and providing technical assistance for those programs and that account. (g) In a trauma service area that includes a county with a population of 3.3 million or more, a trauma service area regional advisory council may enter into an agreement with a regional council of governments to execute its responsibilities and functions under this chapter. (h) For purposes of this section "pursuit of designation" means: (1) submission of an application with the state or appropriate agency for trauma verification and designation not later than December 31, 2003; (2) submission of data to the department trauma registry, provided that only data submitted to the trauma registry on or after September 1, 2003, will qualify for consideration of reimbursement under this program; (3) participation in trauma service area regional advisory council initiatives on or before December 31, 2003; and (4) creation of a hospital trauma performance committee not later than December 31, 2003. (i) If trauma designation is not attained by an undesignated facility in active pursuit of designation on or before December 31, 2005, any funds received by the undesignated facility for unreimbursed trauma services must be returned to the state.
Sec. 780.005. CONTROL OF EXPENDITURES FROM THE ACCOUNT. Money distributed under Section 780.004 shall be used in compliance with Section 780.004 on the authorization of the executive committee of the trauma service area regional advisory council.
Sec. 780.006. LOSS OF FUNDING ELIGIBILITY. For a period of not less than one year or more than three years, as determined by the commissioner, the department may not disburse money under Section 780.004 to a county, municipality, or local recipient that the commissioner finds used money in violation of that section. Sec. 780.007. This chapter expires September 1, 2007.
SECTION 10.03. Not later than December 1, 2004, the Texas Department of Health shall submit to the lieutenant governor and the speaker of the house of representatives a report concerning the use of money under Chapter 780, Health and Safety Code, as added by this article, and any recommended changes to law to ensure appropriate funding and coordination of services.
ARTICLE 11. DISPOSITION OF DEPARTMENT OF PUBLIC SAFETY FEES
SECTION 11.01. Subchapter C, Chapter 521, Transportation Code, is amended by adding Section 521.058 to read as follows: Sec. 521.058. DISPOSITION OF FEES. Each fee collected under this subchapter shall be deposited to the credit of the Texas mobility fund.
SECTION 11.02. Section 521.313, Transportation Code, is amended by adding Subsection (c) to read as follows: (c) Each fee collected under this section shall be deposited to the credit of the Texas mobility fund.
SECTION 11.03. Section 521.3466, Transportation Code, is amended by adding Subsection (e) to read as follows: (e) Each fee collected under this section shall be deposited to the credit of the Texas mobility fund.
SECTION 11.04. Subchapter R, Chapter 521, Transportation Code, is amended by adding Section 521.427 to read as follows: Sec. 521.427. DISPOSITION OF FEES. (a) Except as provided by Subsections (b) and (c), each fee collected under this subchapter shall be deposited to the credit of the Texas mobility fund. (b) Subsection (a) does not apply to: (1) the portion of a fee collected under Section 521.421(b) or Section 521.421(f), as added by Chapter 1156, Acts of the 75th Legislature, Regular Session, 1997, that is required by Section 662.011 to be deposited to the credit of the motorcycle education fund account; (2) a fee collected under Section 521.421(f), as added by Chapter 510, Acts of the 75th Legislature, Regular Session, 1997; (3) a fee collected under Section 521.421(g); or (4) a fee collected under Section 521.422(b) or (c). (c) The first $90,500,254 of fees to which Subsection (a) applies that are collected during the state fiscal biennium ending August 31, 2005, shall be deposited to the credit of the general revenue fund. This subsection expires September 1, 2005. SECTION 11.05. Section 522.029, Transportation Code, is amended by adding Subsection (i) to read as follows: (i) Except as provided by Section 662.011, each fee collected under this section shall be deposited to the credit of the Texas mobility fund. SECTION 11.06. Section 524.051, Transportation Code, is amended by adding Subsection (c) to read as follows: (c) Each fee collected under this section shall be deposited to the credit of the Texas mobility fund. SECTION 11.07. Subchapter H, Chapter 548, Transportation Code, is amended by adding Section 548.508 to read as follows: Sec. 548.508. DISPOSITION OF FEES. Except as provided by Sections 382.037 and 382.0622, Health and Safety Code, and Section 548.5055, each fee collected by the department under this subchapter shall be deposited to the credit of the Texas mobility fund. SECTION 11.08. Section 644.153, Transportation Code, is amended by adding Subsection (i) to read as follows: (i) Each penalty collected under this section shall be deposited to the credit of the Texas mobility fund. SECTION 11.09. Section 724.046, Transportation Code, is amended by adding Subsection (c) to read as follows: (c) Each fee collected under this section shall be deposited to the credit of the Texas mobility fund. SECTION 11.10. Section 521.055(d), Transportation Code, is repealed. SECTION 11.11. This article applies only to a fee or penalty collected on or after the effective date of this Act.
ARTICLE 12. ADDITIONAL COURT COSTS
SECTION 12.01. (a) Subchapter D, Chapter 542, Transportation Code, is amended by adding Section 542.4031 to read as follows: Sec. 542.4031. ADDITIONAL COURT COST. (a) In addition to other costs, including a cost under Section 542.403, a person convicted of an offense under this subtitle shall pay $30 as a court cost. (b) An officer collecting a cost due under this section in a case in municipal court shall keep separate records of the money collected and shall deposit the money in the municipal treasury. (c) An officer collecting a cost due under this section in a justice, county, or district court shall keep separate records of the money collected and shall deposit the money in the county treasury. (d) Each calendar quarter, an officer collecting a cost due under this section shall submit a report to the comptroller. The report must comply with Articles 103.005(c) and (d), Code of Criminal Procedure. If no money due as a cost under this section is collected in any quarter, the report required for that quarter shall be filed in the regular manner, and the report shall state that no money due under this section was collected. (e) The custodian of money in a municipal or county treasury may deposit money collected under this section in an interest-bearing account. The custodian shall: (1) keep records of the amount of money collected under this section that is on deposit in the treasury; and (2) not later than the last day of the month following each calendar quarter, remit to the comptroller money collected under this section during the preceding quarter, as required by the comptroller. (f) A municipality or county may retain five percent of the money collected under this section as a service fee for the collection if the municipality or county remits the funds to the comptroller within the period prescribed in Subsection (e). The municipality or county may retain any interest accrued on the money if the custodian of the money deposited in the treasury keeps records of the amount of money collected under this section that is on deposit in the treasury and remits the funds to the comptroller within the period prescribed in Subsection (e). (g) Of the money received by the comptroller under this section, the comptroller shall deposit: (1) 67 percent to the credit of the undedicated portion of the general revenue fund; and (2) 33 percent to the credit of the designated trauma facility and emergency medical services account under Section 780.003, Health and Safety Code. (h) Notwithstanding Subsection (g), in any state fiscal year the comptroller shall deposit court costs received under that subsection to the credit of the general revenue fund only until the total amount of the court costs deposited to the credit of the general revenue fund under that subsection and the surcharges deposited to the credit of that fund under Section 780.002(b), Health and Safety Code, equals $250 million for that year. If in any state fiscal year the amount received by the comptroller under those laws exceeds $250 million, the comptroller shall deposit the additional amount received under Subsection (g) to the credit of the Texas mobility fund. (i) Money collected under this section is subject to audit by the comptroller. Money spent is subject to audit by the state auditor. (j) In this section a person is considered to have been convicted in a case if: (1) a sentence is imposed; (2) the person receives community supervision or deferred adjudication; or (3) the court defers final disposition of the case. (k) This section expires September 1, 2007. (b) The change in law made by this section applies only to an offense committed on or after the effective date of this section. For the purposes of this section, an offense was committed before the effective date of this section if any element of the offense occurred before that date. An offense committed before the effective date of this section is governed by the law in effect when the offense was committed, and the former law is continued in effect for that purpose.
ARTICLE 13. STATEWIDE COORDINATION OF PUBLIC TRANSPORTATION
SECTION 13.01. Subtitle K, Title 6, Transportation Code, is amended by adding Chapter 461 to read as follows:
CHAPTER 461. STATEWIDE COORDINATION OF PUBLIC TRANSPORTATION
Sec. 461.001. LEGISLATIVE INTENT AND CONSTRUCTION. (a) Public transportation services are provided in this state by many different entities, both public and private. The multiplicity of public transportation providers and services, coupled with a lack of coordination between state oversight agencies, has generated inefficiencies, overlaps in service, and confusion for consumers. It is the intent of this chapter: (1) to eliminate waste in the provision of public transportation services; (2) to generate efficiencies that will permit increased levels of service; and (3) to further the state's efforts to reduce air pollution. (b) This chapter shall be liberally construed to achieve its purposes. Sec. 461.002. DEFINITIONS. In this chapter: (1) "Public transportation provider" means any entity that provides public transportation services if it is a governmental entity or if it receives financial assistance from a governmental entity, whether state, local, or federal. The term does not include private carriers that do not receive financial assistance from a governmental entity. It also does not include a person who provides intercity rail or bus service, commercial air transportation, water transportation, or nonstop service to or from a point located outside this state. If a person provides both public transportation services and services that are not public transportation services, that person is included within the term only with regard to the provision of public transportation services and to the extent of those public transportation services. (2) "Public transportation services" means any conveyance of passengers and their hand-carried baggage by a governmental entity or by a private entity if the private entity receives financial assistance for that conveyance from any governmental entity. It does not include intercity rail or bus service, commercial air transportation, water transportation, or nonstop service to or from a point located outside this state.
Sec. 461.003. RULES OF TEXAS TRANSPORTATION COMMISSION. (a) The commission by rule may: (1) require a state agency that is responsible for ensuring the provision of public transportation services to contract with the department for the department to assume the responsibilities of that agency relating to the provision of public transportation services; and (2) require a public transportation provider to provide detailed information on its provision of public transportation services, including revenues, routes, maps, categories of passengers served, number of passengers served, and equipment use and condition. (b) Except with regard to health and human services programs funded by this state, the commission may not direct the planning or operations of an authority created or operating under Chapter 451, 452, 453, or 460. (c) The commission shall adopt other rules, including rules defining terms, necessary to implement this chapter.
Sec. 461.004. DUTIES OF TEXAS DEPARTMENT OF TRANSPORTATION. (a) The department shall identify: (1) overlaps and gaps in the provision of public transportation services, including services that could be more effectively provided by existing, privately funded transportation resources; (2) underused equipment owned by public transportation providers; and (3) inefficiencies in the provision of public transportation services by any public transportation provider. (b) The department may contract with any public or private transportation provider for the department to arrange for the provision of public transportation services.
Sec. 461.005. ELIMINATION OF OVERLAPPING SERVICE. (a) To eliminate waste and maximize efficiency, the department shall encourage public transportation providers to agree on the allocation of specific services and service areas among the providers. The department may incorporate these discussions in planning processes such as the development of the statewide transportation improvement program or a local transportation improvement plan. (b) If public transportation providers do not reach an agreement on a service plan under Subsection (a), the department may develop an interim service plan for that area. (c) The department may require that all or a percentage of the vehicles used to provide public transportation services comply with specified emissions standards. The standards may vary among geographic areas based on the need of each area to reduce levels of air pollution. This subsection does not apply to an authority created under Chapter 451, 452, 453, or 460.
Sec. 461.006. DUTIES OF PUBLIC TRANSPORTATION PROVIDERS. Each public transportation provider shall cooperate with the department in eliminating waste and ensuring efficiency and maximum coverage in the provision of public transportation services.
Sec. 461.007. INCENTIVES FOR EFFICIENCY. (a) Notwithstanding any other law, including a law establishing a formula for the allocation of public transportation grants, the commission may increase or reduce the amount of a grant made to a public transportation provider based on whether the public transportation provider is complying fully with this chapter. (b) Notwithstanding any other law, the commission may consider whether a public transportation provider in a geographic area of this state is complying fully with this chapter in executing the commission's other responsibilities relating to that area.
SECTION 13.02. Section 455.0015, Transportation Code, is amended by amending Subsection (b) and adding Subsections (c) and (d) to read as follows: (b) It is the intent of the legislature that, whenever possible, and to the maximum extent feasible, the existing network of transportation providers, and in particular the fixed route components of the existing networks, be used to meet the client transportation requirements of the state's social service agencies and their agents. The legislature recognizes the contributions of nonprofit entities dedicated to providing social services and related activities and encourages the continued community involvement of these entities in this area. The legislature likewise recognizes the potential cost savings and other benefits of utilizing existing private sector transportation resources. The department will contract with and promote the use of private sector transportation resources to the maximum extent feasible consistent with the goals of this subsection. (c) Each health and human services agency of this state shall contract with the department for the department to assume all responsibilities of the health and human services agency relating to the provision of transportation services for clients of eligible programs. (d) The department may contract with any public or private transportation provider or with any regional transportation broker for the provision of public transportation services.
SECTION 13.03. Section 455.004, Transportation Code, is amended to read as follows: Sec. 455.004. PUBLIC TRANSPORTATION ADVISORY COMMITTEE. (a) A public transportation advisory committee consisting of nine members shall: (1) advise the commission on the needs and problems of the state's public transportation providers, including the methods for allocating state public transportation money; (2) comment on rules involving public transportation during development of the rules and before the commission finally adopts the rules unless an emergency requires immediate commission action; [and] (3) advise the commission on the implementation of Chapter 461; and (4) perform any other duty determined by the commission. (b) The commission shall appoint members of the advisory committee. The membership of the committee shall [governor, the lieutenant governor, and the speaker of the house of representatives each shall appoint three members of the committee. The appointing officers shall allocate among themselves the authority for appointment of members with different types of qualifications. The committee must] include: (1) four members who [one member to] represent a diverse cross-section of public transportation providers [in rural areas]; (2) three members who [one member to] represent a diverse cross-section of transportation users [municipal transit systems in urban areas with populations of less than 200,000]; and (3) two members who [one member to represent metropolitan transit authorities in urban areas with populations of 200,000 or more;[(4) one member to represent transportation providers for persons with disabilities and the elderly; and[(5) five members who have a knowledge of and interest in public transportation to] represent the general public. (c) A member serves at the pleasure of the commission [officer appointing the member]. A member is not entitled to compensation for service on the committee but is entitled to reimbursement for reasonable expenses the member incurs in performing committee duties. (d) The public transportation advisory committee shall meet [quarterly or] as requested by the commission. (e) The commission may adopt rules to govern the operation of the advisory committee.
SECTION 13.04. Section 461.012, Health and Safety Code, is amended by adding Subsection (g) to read as follows: (g) The commission shall contract with the Texas Department of Transportation for the Texas Department of Transportation to assume all responsibilities of the commission relating to the provision of transportation services for clients of eligible programs.
SECTION 13.05. Section 533.012, Health and Safety Code, is amended to read as follows:
Sec. 533.012. COOPERATION OF STATE AGENCIES. (a) At the department's request, all state departments, agencies, officers, and employees shall cooperate with the department in activities that are consistent with their functions. (b) The department shall contract with the Texas Department of Transportation for the Texas Department of Transportation to assume all responsibilities of the department relating to the provision of transportation services for clients of eligible programs.
SECTION 13.06. Section 22.001, Human Resources Code, is amended by adding Subsection (e) to read as follows: (e) The department shall contract with the Texas Department of Transportation for the Texas Department of Transportation to assume all responsibilities of the department relating to the provision of transportation services for clients of eligible programs.
SECTION 13.07. Section 40.002, Human Resources Code, is amended by adding Subsection (f) to read as follows: (f) The department may contract with the Texas Department of Transportation for the Texas Department of Transportation to assume all responsibilities of the department relating to the provision of transportation services for clients of eligible programs.
SECTION 13.08. Section 91.021, Human Resources Code, is amended by adding Subsection (g) to read as follows: (g) The commission shall contract with the Texas Department of Transportation for the Texas Department of Transportation to assume all responsibilities of the commission relating to the provision of transportation services for clients of eligible programs.
SECTION 13.09. Section 101.0256, Human Resources Code, is amended to read as follows:
Sec. 101.0256. COORDINATED ACCESS TO LOCAL SERVICES. (a) The department and the Texas Department of Human Services shall develop standardized assessment procedures to share information on common clients served in a similar service region. (b) The department shall contract with the Texas Department of Transportation for the Texas Department of Transportation to assume all responsibilities of the department relating to the provision of transportation services for clients of eligible programs.
SECTION 13.10. Section 111.0525, Human Resources Code, is amended by adding Subsection (d) to read as follows: (d) The commission shall contract with the Texas Department of Transportation for the Texas Department of Transportation to assume all responsibilities of the commission relating to the provision of transportation services for clients of eligible programs.
SECTION 13.11. Section 301.063, Labor Code, is amended by adding Subsection (f) to read as follows: (f) The commission shall contract with the Texas Department of Transportation for the Texas Department of Transportation to assume all responsibilities of the commission relating to the provision of transportation services for clients of eligible programs.
SECTION 13.12. It is the intent of the legislature that the provision of health and human services transportation through the Texas Department of Transportation will improve the delivery of transportation services to clients and enhance their access to transportation services. Furthermore, it is the intent of the legislature that these services be provided in a manner that will generate efficiencies in operation, control costs, and permit increased levels of service. The Texas Department of Transportation shall encourage cooperation and coordination among transportation providers, regional transportation brokers, and actual and potential clients in an effort to achieve the stated legislative goals.
SECTION 13.13. Any funds that are used by the Texas Department of Transportation to implement the transportation services provided in Sections 13.02, 13.04, 13.05, 13.06, 13.07, 13.08, 13.09, 13.10, and 13.11 shall be accounted for and budgeted separately from other funds appropriated to the Texas Department of Transportation for any other public transportation program or budget strategy.
ARTICLE 14. CONDITIONAL GRANT PROGRAM
SECTION 14.01. Section 56.141(4), Education Code, is amended to read as follows:
(4) "Eligible profession" means the profession of engineering or another profession as defined [identified] by [the] department rule for which the department determines there is a need [as having a significant statistical underrepresentation of minorities or women] in the department's workforce.
SECTION 14.02. Section 56.142(a), Education Code, is amended to read as follows: (a) The department shall establish and administer a conditional grant program under this subchapter to provide financial assistance to eligible [women and minority] students who agree to work for the department in an eligible profession for the two academic years immediately following the date of the student's receipt of an eligible degree.
SECTION 14.03. Section 56.143, Education Code, is amended to read as follows: Sec. 56.143. ELIGIBLE STUDENT. (a) To be eligible for a conditional grant under this subchapter, a student must: (1) complete and file with the department, on forms prescribed by the department, a conditional grant application and a declaration of intent to become a member of an eligible profession and work for the department for the two academic years immediately following the date of the student's receipt of an eligible degree; (2) enroll in an institution; (3) be a Texas resident, as defined by Texas Higher Education Coordinating Board rule; (4) be economically disadvantaged [a minority], as defined by department rule[, or a woman]; and (5) have complied with any other requirements adopted by the department under this subchapter. (b) In determining who should receive a grant under this program, the department: (1) shall give highest priority to students who demonstrate the greatest financial need; and (2) may consider whether the applicant would be the first generation of the applicant's family to attend or graduate from an undergraduate program or from a graduate or professional program.
SECTION 14.04. Section 56.147, Education Code, is amended by reenacting and amending Subsection (b), as amended by Chapters 151 and 165, Acts of the 74th Legislature, Regular Session, 1995, and by adding Subsection (c) to read as follows: (b) The department shall issue not less than $400,000 annually in conditional grants under this subchapter from money available to fund the conditional grant program [gifts, grants, and funds described by Subsection (a)]. (c) The department may provide outreach programs to recruit students into the conditional grant program.
SECTION 14.05. The change in law made by this article does not affect the eligibility of a person awarded a grant under Subchapter I, Chapter 56, Education Code, before the effective date of this article to receive the grant or to participate in the conditional grant program under Subchapter I, Chapter 56, Education Code, as that subchapter existed when the person was awarded the grant, and the former law is continued in effect for that purpose.
ARTICLE 15. TEXAS TURNPIKE AUTHORITY
SECTION 15.01. Section 201.112(a), Transportation Code, is amended to read as follows: (a) The commission may by rule establish procedures for the informal resolution of a claim arising out of a contract described by: (1) Section 22.018; (2) Chapter 223; [or] (3) Chapter 361; or (4) Chapter 2254, Government Code. SECTION 15.02. The heading to Chapter 361, Transportation Code, is amended to read as follows:
CHAPTER 361. STATE HIGHWAY [TEXAS] TURNPIKE PROJECTS
[AUTHORITY]
SECTION 15.03. Sections 361.001(2), (3), (4), and (5), Transportation Code, are amended to read as follows: (2) ["Board" means the board of directors of the authority.[(3)] "Owner" includes a person having title to or an interest in any property, rights, easements, and interests authorized to be acquired under this chapter. (3) [(4)] "Turnpike project" means a toll highway constructed, maintained, or operated under this chapter as part of the state highway system and any improvement, extension, or expansion to the highway and includes: (A) a facility to relieve traffic congestion and promote safety; (B) a bridge, tunnel, overpass, underpass, interchange, entrance plaza, approach, toll house, service road, ramp, or service station; (C) an administration, storage, or other building the department [authority] considers necessary to operate the project; (D) property rights, easements, and interests the department [authority] acquires to construct or operate the project; (E) a parking area or structure, rest stop, park, and any other improvement or amenity the department [authority] considers necessary, useful, or beneficial for the operation of a turnpike project; and (F) a toll-free facility that is appurtenant to and necessary for the efficient operation of a turnpike project, including a service road, access road, ramp, interchange, bridge, or tunnel. (4) [(5)] "Regional tollway authority" means a regional tollway authority created under Chapter 366.
SECTION 15.04. The heading to Subchapter B, Chapter 361, Transportation Code, is amended to read as follows:
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS [TEXAS TURNPIKE
AUTHORITY]
SECTION 15.05. Section 361.031, Transportation Code, as amended by Chapters 920 and 1237, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows:
Sec. 361.031. TEXAS TURNPIKE AUTHORITY. (a) The Texas Turnpike Authority is a division of the Texas Department of Transportation. The [that has full] authority is responsible for promoting and coordinating the development of turnpike projects under this chapter. The commission and the director shall assign duties to [exercise all powers granted to it under this chapter. Powers granted to the department under this chapter and Chapter 362 to study, design, construct, operate, expand, enlarge, or extend a turnpike project as a part of the state highway system shall be exercised by the department acting by and through] the authority and other offices of the department as appropriate for the proper administration of this chapter and other law. (b) The exercise by the department [authority] of the powers conferred by this chapter in the construction, operation, and maintenance of a turnpike project is: (1) in all respects for the benefit of the people of this state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions and public safety; and (2) an essential governmental function of the state. SECTION 15.06. Section 361.042, Transportation Code, is redesignated as Section 361.032, Transportation Code, and amended to read as follows: Sec. 361.032 [361.042]. GENERAL POWERS AND DUTIES. (a) The commission [board] shall[:[(1) on its own initiative or at the request of the commission, consider, study, plan, and develop turnpike projects under this chapter;[(2)] adopt rules for the implementation and administration of this chapter [regulation of its affairs and the conduct of its business; and[(3) undertake such other duties as are delegated to it by the commission]. (b) The department [authority] may: (1) construct, maintain, repair, and operate turnpike projects in this state; (2) acquire, hold, and dispose of property in the exercise of its powers and the performance of its duties under this chapter; (3) with the approval of the governor and the commission, enter into contracts or operating agreements with similar authorities or agencies of another state, including a state of the United Mexican States; (4) enter into contracts or agreements necessary or incidental to its duties and powers under this chapter; (5) employ consulting engineers, accountants, construction and financial experts, superintendents, managers, and other employees and agents the department [authority] considers necessary and set their compensation; (6) [employ attorneys to advance or defend legal actions pertaining to the division's activities, notwithstanding any other law to the contrary, including Section 402.0212, Government Code;[(7)] receive grants for the construction of a turnpike project and receive contributions of money, property, labor, or other things of value from any source to be used for the purposes for which the grants or contributions are made; (7) notwithstanding Chapter 2113, Government Code, [(8) adopt and enforce rules not inconsistent with this chapter for the use of any turnpike project, including rules establishing speed limits and maximum allowable vehicle and load weight limits for turnpike projects;[(9)] engage in marketing, advertising, and other activities to promote the development and use of turnpike projects and may enter into contracts or agreements necessary to procure marketing, advertising, or other promotional services from outside service providers; [(10) with the concurrence of the commission, form, develop, or utilize a corporation created under Chapter 431 for the promotion and development of turnpike projects;] and (8) [(11)] do all things necessary or appropriate to carry out the powers expressly granted by this chapter. SECTION 15.07. Section 361.054, Transportation Code, is redesignated as Section 361.033, Transportation Code, and amended to read as follows: Sec. 361.033 [361.054]. AUDIT. Notwithstanding any other law to the contrary, the department [authority] shall have an independent certified public accountant audit the department's [authority's] books and accounts for activities under this chapter at least annually. The audit shall be conducted in accordance with the requirements of any trust agreement securing bonds issued under this chapter that is in effect at the time of the audit. The cost of the audit may be treated as part of the cost of construction or operation of a turnpike project. This section does not affect the ability of a state agency to audit the department's [authority's] books and accounts. SECTION 15.08. The heading to Subchapter C, Chapter 361, Transportation Code, is amended to read as follows:
SUBCHAPTER C. DEVELOPMENT [APPROVAL] OF TURNPIKE PROJECTS
SECTION 15.09. Section 361.101, Transportation Code, is mended to read as follows: Sec. 361.101. DETERMINATION OF TURNPIKE PROJECTS. The department [authority] may: (1) construct, maintain, repair, and operate a turnpike project to: (A) facilitate vehicular traffic throughout this state; (B) promote the agricultural and industrial development of this state; (C) effect traffic safety; or (D) improve connections between highways of this state, adjoining states, and the United Mexican States; and (2) at any time determine to undertake a turnpike project, except that the commission by order must approve [the location of the project before] final designation. SECTION 15.10. Section 361.103, Transportation Code, is amended to read as follows: Sec. 361.103. APPLICATION OF OTHER LAW. All other law applicable to the department, the commission, or the state highway system shall apply to the development, construction, maintenance, and operation of a turnpike project under this chapter unless in conflict with a provision of this chapter. [ENVIRONMENTAL REVIEW. (a) The authority by rule shall provide for the authority's environmental review of turnpike projects. The rules must provide for:[(1) public comment on environmental reviews of turnpike projects, including the types of projects for which public hearings are required, and a procedure for requesting a public hearing on an environmental review for which a public hearing is not required;[(2) the environmental factors and impacts the authority will evaluate in its environmental reviews; and[(3) environmental review of alternate routes for a proposed turnpike project.[(b) The environmental review of a turnpike project must be conducted before the location or alignment of the project is adopted.[(c) The commission must approve each environmental review under this section before construction of a turnpike project begins.[(d) At least once during each five-year period, the authority, after a public hearing, shall review the rules relating to environmental review and make appropriate changes.] SECTION 15.11. Subchapter C, Chapter 361, Transportation Code, is amended by adding Section 361.104 to read as follows: Sec. 361.104. ENTRANCES AND EXITS OF TURNPIKE PROJECT. The department shall: (1) designate the location of and establish, limit, and control the entrances and exits of a turnpike project as considered necessary or desirable to ensure the proper operation and maintenance of the project; and (2) prohibit entrance to a project at any place not designated as an entrance. SECTION 15.12. Section 361.131, Transportation Code, is amended to read as follows: Sec. 361.131. POWERS AND PROCEDURES OF DEPARTMENT [AUTHORITY] IN ACQUIRING PROPERTY. Except as otherwise provided by this chapter, the department [authority, acting by and through the board,] has the same powers and may use the same procedures: (1) in acquiring property under this chapter as the commission or the department in acquiring property under Subchapter D, Chapter 203; and (2) in disposing of surplus property acquired under this chapter as the commission or the department under Subchapter B, Chapter 202. SECTION 15.13. Section 361.132, Transportation Code, is amended to read as follows: Sec. 361.132. ACQUISITION OF PROPERTY. (a) The department [authority] may acquire, in the name of the state, public or private real property it determines necessary or convenient for the construction, expansion, enlargement, extension, improvement, or operation of a turnpike project or for otherwise carrying out this chapter. (b) The real property the department [authority] may acquire under this subchapter includes: (1) public parks, playgrounds, or reservations; (2) parts of or rights in public parks, playgrounds, or reservations; (3) rights-of-way; (4) property rights, including: (A) a right of ingress or egress; and (B) a reservation right in real property that restricts or prohibits for not more than seven years the: (i) addition of a new improvement on the real property; (ii) addition to or modification of an existing improvement on the real property; or (iii) subdivision of the real property; (5) franchises; (6) easements; and (7) other interests in real property. (c) The department [authority] may acquire the real property by any method, including purchase and condemnation. The department [authority] may purchase public or private real property on the terms and at the price the department [authority] and the owner consider reasonable. (d) Property necessary or convenient for the construction or operation of a turnpike project under Subsection (a) includes an interest in real property, a property right, or materials that the department [authority] determines are necessary or convenient to: (1) protect a turnpike project; (2) drain a turnpike project; (3) divert a stream, river, or other watercourse from the right-of-way of a turnpike project; (4) store materials or equipment used in the construction or maintenance of a turnpike project; (5) provide a location for an ancillary facility that generates revenue for use in the construction, maintenance, or operation of a turnpike project, including a gas station, garage, store, hotel, or restaurant; (6) construct or operate a warehouse, toll house, toll plaza, service station, or other facility used in connection with the construction, maintenance, or operation of a turnpike project; (7) [(6)] lay out, construct, or maintain a roadside park; (8) [(7)] lay out, construct, or maintain a parking lot that will contribute to the maximum use of a turnpike project with the least possible congestion; (9) [(8)] mitigate an adverse environmental effect that directly results from the construction or maintenance of a turnpike project; or (10) [(9)] accomplish any other purpose related to the location, construction, improvement, maintenance, beautification, preservation, or operation of a turnpike project. (e) The department [authority] shall comply with all relocation assistance procedures applicable to the department in connection with any displacement of owners or tenants as a consequence of the department's [authority's] acquisition of real property under this chapter. (f) The department [authority] may acquire timber, earth, stone, gravel, or other materials as necessary to carry out a purpose under this chapter. SECTION 15.14. Sections 361.133(b) and (c), Transportation Code, are amended to read as follows: (b) The governing body of a political subdivision or public agency may without advertising convey title to or rights or easements in real property the department [authority] needs in connection with the construction or operation of a turnpike project. (c) Notwithstanding any law to the contrary, a political subdivision or a state agency may lease, lend, grant, or convey to the department [authority] at its request real property, including highways and other real property already devoted to public use, that may be necessary or appropriate to accomplish the department's [authority's] purposes. The political subdivision or state agency may lease, lend, grant, or convey the property: (1) on terms the subdivision or agency determines reasonable and fair; and (2) without advertisement, court order, or other action or formality other than the regular and formal action of the subdivision or agency concerned. SECTION 15.15. Section 361.134, Transportation Code, is amended to read as follows: Sec. 361.134. DESCRIPTION OF REAL PROPERTY. Real property acquired by the department under this chapter [authority] shall be described so as to locate the boundary line of the property with reference to: (1) lot and block lines and corners of all existing and recorded subdivision properties, if applicable; or (2) survey lines and corners. SECTION 15.16. Section 361.135, Transportation Code, is amended to read as follows: Sec. 361.135. CONDEMNATION OF REAL PROPERTY. (a) The [board, with the concurrence of the] commission[,] may approve the acquisition of [acquire] public or private real property in the name of the state by the exercise of the power of condemnation under the laws applicable to the exercise of that power on property for public use if: (1) the department [authority] and the owner cannot agree on a reasonable price for the property; or (2) the owner is legally incapacitated, absent, unknown, or unable to convey title. (b) The [board, with the concurrence of the] commission[,] may approve the condemnation of [condemn] real property that the commission [authority] determines is: (1) necessary or convenient for the construction or operation of [appropriate to construct or to efficiently operate] a turnpike project, as described by Section 361.132(d); (2) necessary to restore public or private property damaged or destroyed, including property necessary or convenient to mitigate an environmental effect that directly results from the construction, operation, or maintenance of a turnpike project; (3) necessary for access, approach, service, and interchange roads; (4) necessary to provide proper drainage and ground slope for a turnpike project; or (5) necessary otherwise to carry out this chapter. (c) [The authority may construct a supplemental facility only on real property the authority purchases.[(d)] The court having jurisdiction of a condemnation proceeding may: (1) make orders as are just to the department [authority] and the owners of the real property; and (2) require an undertaking or other security to secure the owners against any loss or damage by reason of the department's [board's] failure to accept and pay for the real property. (d) [(e)] An undertaking or security under Subsection (c)(2) [(d)(2)] or an act or obligation of the department [authority] or the commission [board] does not impose any liability on the state, the department [authority], or the commission [board] except liability that may be paid from the money authorized by this chapter. SECTION 15.17. Section 361.136, Transportation Code, is amended to read as follows: Sec. 361.136. SEVERANCE OF REAL PROPERTY. (a) If a turnpike project severs an owner's real property, the department [authority] shall pay: (1) the value of the property acquired; and (2) the damages to the remainder of the owner's property caused by the severance, including damages caused by the inaccessibility of one tract from the other. (b) The department [authority] may negotiate for and purchase the severed real property or either part of the severed real property if the department [authority] and the owner agree on terms for the purchase. Instead of a single fixed payment for the real property, the department may agree to a payment to the owner in the form of: (1) an intangible legal right to receive a percentage of identified revenue attributable to the applicable segment of the turnpike project; or (2) an exclusive or nonexclusive right to use or operate a segment or part of the turnpike project. (c) A right to a payment under Subsection (b)(1) is subject to any pledge of the revenue under the term of a trust agreement securing bonds issued for the project. SECTION 15.18. Section 361.137, Transportation Code, is amended by amending Subsections (a) through (d) and adding Subsection (d-1) to read as follows: (a) The department [authority] may file a declaration of taking with the clerk of the court: (1) in which the department [authority] files a condemnation petition under Chapter 21, Property Code; or (2) to which the case is assigned. (b) The department [authority] may file the declaration of taking concurrently with or subsequent to the petition but may not file the declaration after the special commissioners have made an award in the condemnation proceeding. (c) The department may not file a declaration of taking before the completion of: (1) all environmental documentation, including a final environmental impact statement or a record of decision, that is required by federal or state law; (2) all public hearings and meetings, including those held in connection with the environmental process and under Sections 201.604 and 203.021, that are required by federal or state law; and (3) all notifications required by Section 203.022. (d) [(c)] The declaration of taking must include: (1) a specific reference to the legislative authority for the condemnation; (2) a description and plot plan of the real property to be condemned, including the following information if applicable: (A) the municipality in which the property is located; (B) the street address of the property; and (C) the lot and block number of the property; (3) a statement of the property interest to be condemned; (4) the name and address of each property owner that the department [authority] can obtain after reasonable investigation and a description of the owner's interest in the property; and (5) a statement that immediate possession of all or part of the property to be condemned is necessary for the timely construction of a turnpike project. (d-1) [(d)] A deposit to the registry of the court of an amount equal to the appraised value, as determined by the department [authority], of the property to be condemned must accompany the declaration of taking. SECTION 15.19. Sections 361.138(a) and (b), Transportation Code, are amended to read as follows: (a) Immediately on the filing of a declaration of taking, the department [authority] shall serve a copy of the declaration on each person possessing an interest in the condemned property by a method prescribed by Section 21.016(d), Property Code. The department [authority] shall file evidence of the service with the clerk of the court. On filing of that evidence, the department [authority] may take possession of the property pending the litigation. (b) If the condemned property is a homestead or a portion of a homestead as defined by Section 41.002, Property Code, the department [authority] may not take possession sooner than the 91st [31st] day after the date of service under Subsection (a). SECTION 15.20. Section 361.141(a), Transportation Code, is amended to read as follows: (a) The department [authority] may not pay compensation for public real property, parkways, streets, highways, alleys, or reservations it takes, except for: (1) parks and playgrounds; and (2) property acquired under restrictions and limitations requiring payment of compensation. SECTION 15.21. Section 361.142, Transportation Code, is amended to read as follows: Sec. 361.142. COVENANTS, CONDITIONS, RESTRICTIONS, OR LIMITATIONS. Covenants, conditions, restrictions, or limitations affecting property acquired in any manner by the department [authority] are not binding against the department [authority] and do not impair the department's [authority's] ability to use the property for a purpose authorized by this chapter. The beneficiaries of the covenants, conditions, restrictions, or limitations are not entitled to enjoin the department [authority] from using the property for a purpose authorized under this chapter, but this section does not affect the right of a person to seek damages to the person's property under Section 17, Article I, Texas Constitution. SECTION 15.22. Section 361.171, Transportation Code, is amended to read as follows: Sec. 361.171. TURNPIKE REVENUE BONDS. (a) The commission [authority] by order [resolution] may authorize [provide for] the issuance of turnpike revenue bonds to pay all or part of the cost of a turnpike project. Each project shall be financed and built by a separate bond issue. The proceeds of a bond issue may be used solely for the payment of the project for which the bonds were issued and may not be divided between or among two or more projects. Each project is a separate undertaking, the cost of which shall be determined separately. (b) As determined in the order authorizing the issuance, the [The] bonds of each issue shall: (1) [must] be dated; (2) bear interest at the rate or rates provided by the order and beginning on the dates provided by the order and as authorized by law, or bear no interest; (3) mature at the time or times provided by the order, not exceeding 40 years from their date or dates, [determined by the authority]; and (4) [may] be made redeemable before maturity, at the price or prices and under the terms provided by the order [set by the authority in the proceeding authorizing the issuance of the bonds]. (c) The commission [authority] may sell the bonds at public or private sale in the manner and for the price it determines to be in the best interest of the department [authority]. (d) The proceeds of each bond issue shall be disbursed in the manner and under the restrictions, if any, the commission [authority] provides in the order [resolution] authorizing the issuance of the bonds or in the trust agreement securing the bonds. (e) If the proceeds of a bond issue are less than the turnpike project cost, additional bonds may [in like manner] be issued in the same manner to pay the costs of a turnpike project [provide the amount of the deficit]. Unless otherwise provided in the order [resolution] authorizing the issuance of the bonds or in the trust agreement securing the bonds, the additional bonds are on a parity with and are payable, without preference of priority, from the same fund as [without preference or priority of] the bonds first issued. In addition, the commission may issue bonds for a turnpike project secured by a lien on the revenue of the turnpike project subordinate to the lien on the revenue securing other bonds issued for the turnpike project. (f) If the proceeds of a bond issue exceed the cost of the turnpike project for which the bonds were issued, the surplus shall be segregated from the other money of the commission and used only for the purposes specified in the order authorizing the issuance [deposited to the credit of the sinking fund for the bonds]. (g) In addition to other permitted uses, the proceeds of a bond issue may be used to pay costs incurred before the issuance of the bonds, including costs of environmental review, design, planning, acquisition of property, relocation assistance, construction, and operation. (h) Bonds issued and delivered under this chapter and interest coupons on the bonds are a security under Chapter 8, Business & Commerce Code. (i) Bonds issued under this chapter and income from the bonds, including any profit made on the sale or transfer of the bonds, are exempt from taxation in this state. SECTION 15.23. Section 361.172, Transportation Code, is amended to read as follows: Sec. 361.172. APPLICABILITY OF OTHER LAW; CONFLICTS. All [LAWS. (a) Except as provided by Subsection (b), the authority may issue turnpike revenue bonds or turnpike revenue refunding bonds under this chapter without complying with any other law applicable to the issuance of bonds.[(b) Notwithstanding any other provisions of this chapter, the following] laws affecting the issuance of bonds by governmental entities, including Chapters 1201, 1202, 1204, 1207, and 1371, Government Code, apply to bonds issued under this chapter. To the extent of a conflict between those laws and this chapter, the provisions of this chapter prevail [by the authority:[(1) Chapters 1201, 1202, 1204, and 1371, Government Code; and[(2) Subchapters A-C, Chapter 1207, Government Code]. SECTION 15.24. Section 361.173, Transportation Code, is amended to read as follows: Sec. 361.173. PAYMENT OF BONDS; CREDIT OF STATE NOT PLEDGED. (a) The principal of, interest on, and any redemption premium on bonds issued by the commission under this chapter [authority] are payable solely from: (1) [the money authorized for their payment under this chapter or other law; and[(2)] the revenue of the turnpike project for which the bonds were issued, including tolls pledged to pay the bonds; and (2) amounts received under a credit agreement relating to the turnpike project for which the bonds are issued. (b) Bonds issued under this chapter do not constitute a debt of the state or a pledge of the faith and credit of the state. Each bond must contain on its face a statement to the effect that: (1) the state, the commission, and the department [authority] are not obligated to pay the bond or the interest on the bond from a source other than the amount pledged to pay the bond and the interest on the bond; and (2) the faith and credit and the taxing power of the state are not pledged to the payment of the principal of or interest on the bond. (c) The commission and the department [authority] may not incur financial obligations that cannot be paid from tolls or revenue derived from owning or operating turnpike projects or from money provided by law. SECTION 15.25. Section 361.174, Transportation Code, is amended to read as follows: Sec. 361.174. SOURCES OF PAYMENT OF AND SECURITY FOR TURNPIKE PROJECT BONDS. Notwithstanding any other provisions of this chapter, turnpike project bonds issued by the commission [authority] may[:[(1)] be payable from and secured by payments made under an agreement with a local governmental entity as provided by Subchapter A, Chapter 362, and may state on their faces any pledge of revenue or taxes and any security for the bonds under the agreement[; and[(2) be payable from and secured by money derived from any other source available to the authority, other than money derived from a different turnpike project]. SECTION 15.26. Section 361.175, Transportation Code, is amended to read as follows: Sec. 361.175. TURNPIKE REVENUE REFUNDING BONDS. (a) The commission [authority] by order [resolution] may provide for the issuance of turnpike revenue refunding bonds to: (1) refund any outstanding bonds issued under this chapter for a turnpike project, including the payment of any redemption premium on the bonds and any interest accrued as of the date of redemption of the bonds; and (2) construct improvements, extensions, or enlargements to the turnpike project for which the outstanding bonds were issued. (b) This chapter, to the extent applicable, governs: (1) the issuance of the refunding bonds; (2) the maturities and other details of the bonds; (3) the rights of the bondholders; and (4) the rights and obligations of the commission and the department [authority] with respect to the bonds and the bondholders. (c) The commission [authority] may: (1) issue refunding bonds in exchange for outstanding bonds; or (2) sell refunding bonds and use the proceeds to pay or provide for the payment of the outstanding bonds. SECTION 15.27. Subchapter E, Chapter 361, Transportation Code, is amended by adding Sections 361.1751-361.1753 to read as follows:
Sec. 361.1751. INTERIM BONDS. (a) The commission may, before issuing definitive bonds, issue interim bonds, with or without coupons, exchangeable for definitive bonds. (b) An order authorizing interim bonds may provide that the interim bonds recite that the bonds are issued under this chapter. The recital is conclusive evidence of the validity and the regularity of the bonds' issuance. Sec. 361.1752. EFFECT OF LIEN. (a) A lien on or a pledge of revenue from a turnpike project or on a reserve, replacement, or other fund established in connection with a bond issued under this chapter: (1) is enforceable at the time of payment for and delivery of the bond; (2) applies to each item on hand or subsequently received; (3) applies without physical delivery of an item or other act; and (4) is enforceable against any person having a claim, in tort, contract, or other remedy, against the commission or the department without regard to whether the person has notice of the lien or pledge. (b) An order authorizing the issuance of bonds is not required to be recorded except in the regular records of the department.
Sec. 361.1753. APPROVAL OF BONDS BY ATTORNEY GENERAL. (a) The commission shall submit to the attorney general for examination the record of proceedings relating to bonds authorized under this chapter. The record shall include the bond proceedings and any contract securing or providing revenue for the payment of the bonds. (b) If the attorney general determines that the bonds, the bond proceedings, and any supporting contract are authorized by law, the attorney general shall approve the bonds and deliver to the comptroller: (1) a copy of the legal opinion of the attorney general stating the approval; and (2) the record of proceedings relating to the authorization of the bonds. (c) On receipt of the legal opinion of the attorney general and the record of proceedings relating to the authorization of the bonds, the comptroller shall register the record of proceedings. (d) After approval by the attorney general, the bonds, the bond proceedings, and any supporting contract are valid, enforceable, and incontestable in any court or other forum for any reason and are binding obligations according to their terms for all purposes.
SECTION 15.28. Sections 361.176(a) and (e), Transportation Code, are amended to read as follows: (a) Bonds issued under this chapter may be secured by a trust agreement between the commission [authority] and a corporate trustee that is a trust company or a bank that has the powers of a trust company. (e) A trust agreement may: (1) set forth the rights and remedies of the bondholders and the trustee; (2) restrict the individual right of action by bondholders as is customary in trust agreements or trust indentures securing corporate bonds and debentures; and (3) contain provisions the commission [authority] determines reasonable and proper for the security of the bondholders.
SECTION 15.29. Section 361.177, Transportation Code, is amended to read as follows: Sec. 361.177. PROVISIONS PROTECTING AND ENFORCING RIGHTS AND REMEDIES OF BONDHOLDERS. A trust agreement or order [resolution] providing for the issuance of bonds may contain [reasonable] provisions to protect and enforce the rights and remedies of the bondholders, including: (1) covenants establishing the commission's [stating the] duties relating [of the authority in relation] to: (A) the acquisition of property; (B) [and] the construction, improvement, expansion, maintenance, repair, operation, and insurance of the turnpike project in connection with which the bonds were authorized; and (C) [(B)] the custody, safeguarding, and application of money; (2) covenants prescribing events that constitute default; (3) covenants prescribing terms on which any or all of the bonds become or may be declared due before maturity; (4) covenants relating to the rights, powers, liabilities, or duties that arise on the breach of a duty of the commission; and (5) [(2)] provisions for the employment of consulting engineers in connection with the construction or operation of the turnpike project. SECTION 15.30. Section 361.178, Transportation Code, is amended to read as follows: Sec. 361.178. FURNISHING OF INDEMNIFYING BONDS OR PLEDGE OF SECURITIES. A bank or trust company incorporated under the laws of [that has its main office or a branch office in] this state and that acts as depository of the proceeds of bonds or of revenue may furnish indemnifying bonds or pledge securities that the department [authority] requires. SECTION 15.31. Sections 361.179(a), (b), (d), (e), and (g), Transportation Code, are amended to read as follows: (a) The department [authority] may: (1) impose tolls for the use of each turnpike project and the different parts or sections of each turnpike project; and (2) notwithstanding anything in Chapter 202 to the contrary, contract with a person for the use of part of a turnpike project or lease [or sell] part of a turnpike project[, including the right-of-way adjoining the paved portion,] for [any purpose, including placing on the adjoining right-of-way] a gas station, garage, store, hotel, restaurant, railroad tracks, utilities, and [telephone line, telecommunication line,] telecommunications facilities and equipment[, and electric line,] and set the terms for the use or[,] lease[, or sale]. (b) The tolls shall be set so that the aggregate of tolls from the turnpike project: (1) provides a fund sufficient with other revenue and contributions, if any, to pay: (A) the cost of maintaining, repairing, and operating the project; and (B) the principal of and interest on the bonds issued for the project as those bonds become due and payable; and (2) creates reserves for the purposes listed under Subdivision (1). (d) The tolls and other revenue derived from the turnpike project for which bonds were issued, except the part necessary to pay the cost of maintenance, repair, and operation and to provide reserves for those costs as may be provided in the order [resolution] authorizing the issuance of the bonds or in the trust agreement securing the bonds, shall be set aside at regular intervals as may be provided in the order [resolution] or trust agreement in a sinking fund that is pledged to and charged with the payment of: (1) interest on the bonds as it becomes due; (2) principal of the bonds as it becomes due; (3) necessary charges of paying agents for paying principal and interest; and (4) the redemption price or the purchase price of bonds retired by call or purchase as provided by the bonds. (e) Use and disposition of money to the credit of the sinking fund are subject to the order [resolution] authorizing the issuance of the bonds or to the trust agreement. (g) Money in the sinking fund, less the reserve provided by the order [resolution] or trust agreement, if not used within a reasonable time to purchase bonds for cancellation, shall be applied to the redemption of bonds at the applicable redemption price.
SECTION 15.32. Section 361.183(b), Transportation Code, is amended to read as follows: (b) Money spent under Subsection (a) for a proposed turnpike is reimbursable, with the consent of the commission [authority], to the person paying the expenses out of the proceeds from turnpike revenue bonds issued for or other proceeds that may be used for the construction, improvement, extension, expansion, or operation of the project.
SECTION 15.33. Section 361.185, Transportation Code, is amended to read as follows: Sec. 361.185. TRUST FUND. (a) All money received under this chapter, whether as proceeds from the sale of bonds or as revenue, is a trust fund to be held and applied as provided by this chapter. Notwithstanding any other law, including Section 9, Chapter 1123, Acts of the 75th Legislature, Regular Session, 1997, and without the prior approval of the comptroller, funds held under this chapter shall be held in trust by a banking institution chosen by the department [authority] or, at the discretion of the department [authority], in trust in the state treasury outside the general revenue fund. (b) The order [resolution] authorizing the issuance of bonds or the trust agreement securing the bonds shall provide that an officer to whom or a bank or trust company to which the money is paid shall act as trustee of the money and shall hold and apply the money for the purpose of the order [resolution] or trust agreement, subject to this chapter and the order [resolution] or trust agreement.
SECTION 15.34. Section 361.186, Transportation Code, is amended to read as follows: Sec. 361.186. REMEDIES. Except to the extent restricted by a trust agreement, a holder of a bond issued under this chapter [or of a coupon incident to a bond] and a trustee under a trust agreement may: (1) protect and enforce by a legal proceeding a right under: (A) this chapter or another law of this state; (B) the trust agreement; or (C) the order [resolution] authorizing the issuance of the bond; and (2) compel the performance of a duty this chapter, the trust agreement, or the order [resolution] requires the commission or the department [authority] or an officer of the commission or the department [authority] to perform, including the imposing of tolls. SECTION 15.35. Section 361.187(a), Transportation Code, is amended to read as follows: (a) The commission [authority] is exempt from taxation of or assessments on: (1) a turnpike project; (2) property the department [authority] acquires or uses under this chapter; or (3) income from property described by Subdivision (1) or (2). SECTION 15.36. Section 361.188, Transportation Code, is amended to read as follows:
Sec. 361.188. VALUATION OF BONDS SECURING DEPOSIT OF PUBLIC FUNDS. Bonds of the commission [authority, when they are accompanied by the unmatured coupons incident to the bonds,] may secure the deposit of public funds of the state or a political subdivision of the state to the extent of the lesser of the face value of the bonds or their market value.
SECTION 15.37. Section 361.189, Transportation Code, is amended to read as follows: Sec. 361.189. USE OF SURPLUS REVENUE. The commission by order [resolution] may authorize the use of surplus revenue of a turnpike project to pay the costs of another turnpike project within the region[, other than a project financed under Subchapter I, or a toll-free project]. The commission may in the order [resolution] prescribe terms for the use of the revenue, including the pledge of the revenue, but may not take an action under this section that violates, impairs, or is inconsistent with a bond order [resolution], trust agreement, or indenture governing the use of the surplus revenue.
SECTION 15.38. Section 361.191, Transportation Code, is amended to read as follows: Sec. 361.191. EXPENDITURE OF MONEY AUTHORIZED BY COMMISSION [DEPARTMENT OF TRANSPORTATION]. (a) The commission [Texas Department of Transportation] may provide for the expenditure of money for the cost of the acquisition, construction, maintenance, or operation of a turnpike project [by the authority]. The commission [department] may require the repayment of [authority to repay] money provided under this section from toll revenue or other sources on terms established by the commission. (b) Money repaid as required by the commission [department] shall be deposited to the credit of the fund from which the money was provided. Money deposited as required by this section is exempt from the application of Section 403.095, Government Code. SECTION 15.39. Section 361.231(a), Transportation Code, is amended to read as follows: [(a)] A contract of the department [authority] for the construction, improvement, repair, or maintenance of a turnpike project shall[, to the extent applicable,] be awarded under the same terms as a contract of the department under Sections 223.001-223.007 [, 223.009,] and 223.009-223.011 [223.010]. SECTION 15.40. Sections 361.232(b), (c), and (d), Transportation Code, are amended to read as follows: (b) The department [authority] may construct a grade separation at an intersection of a turnpike project with a railroad or highway and change the line or grade of a highway to accommodate it to the design of a grade separation. The department [authority] shall pay the cost of a grade separation and any damage incurred in changing a line or grade of a railroad or highway as part of the cost of the turnpike project. (c) If feasible, the department [authority] shall provide access to properties previously abutting a county or other public road that is taken for a turnpike project and shall pay abutting property owners the expenses or any resulting damages for denial of access to the road. (d) If the department [authority] finds it necessary to change the location of a portion of a highway, it shall reconstruct the highway at the location the [authority and the] department determines [determine] to be most favorable. The reconstructed highway must be of substantially the same type and in as good condition as the original highway. The department [authority] shall determine and pay the cost of the reconstruction and any damage incurred in changing the location of a highway as part of the cost of the turnpike project.
SECTION 15.41. Sections 361.233(a) and (c), Transportation Code, are amended to read as follows: (a) The department [authority] and its authorized agents may enter any real property, water, or premises in this state to make a survey, sounding, drilling, or examination it determines necessary or appropriate for the purposes of this chapter. (c) The department [authority] shall make reimbursement for any actual damages to real property, water, or premises that result from an activity described by Subsection (a). SECTION 15.42. Sections 361.234(a), (b), (d), (e), (f), and (g), Transportation Code, are amended to read as follows: (a) The commission [authority] may adopt rules for the installation, construction, maintenance, repair, renewal, relocation, and removal of a public utility facility in, on, along, over, or under a turnpike project. (b) If the department [authority] determines it is necessary that a public utility facility located in, on, along, over, or under a turnpike project be relocated in the project, removed from the project, or carried along or across the turnpike by grade separation, the owner or operator of the facility shall relocate or remove the facility in accordance with the order of the department [authority]. The department [authority], as a part of the cost of the turnpike project or the cost of operating the project, shall pay the cost of the relocation, removal, or grade separation, including the cost of: (1) installing the facility in a new location or locations; (2) interests in real property, and other rights acquired to accomplish the relocation or removal; and (3) maintenance of grade separation structures. (d) The department [authority] and the public utility shall have 90 days from the date the department [authority] provides written notice to the public utility of the need for relocation of utility facilities to reach an agreement concerning the period for completion of the relocation. The 90-day period may be extended by mutual written agreement. If the parties are unable to reach an agreement for the period for completion of the relocation, the department [authority] may specify a reasonable period. The department [authority] may reduce the total costs to be paid by the department [authority] by 10 percent for each 30-day period or portion of a 30-day period that the relocation exceeds the period specified by agreement between the department [authority] and public utility or as reasonably specified by the department [authority] if no agreement is reached, unless the public utility's failure to timely perform results from a material action or inaction by the department [authority] or from conditions that were beyond the reasonable control of the utility. If an owner or operator of a public utility facility does not timely remove or relocate the facility as required under Subsection (b) and the department [authority] relocates the facility, the department [authority] shall relocate the facility in a safe manner that complies with applicable law and utility construction standards recognized by the department [authority] and that minimizes disruption of utility service and shall notify the public utility and other appropriate regulatory agencies of the relocation. A public utility shall reimburse the department [authority] for expenses reasonably incurred for the relocation of a public utility facility unless the failure of the public utility to timely relocate the facility was the result of circumstances beyond the control of the utility, in which case the department [authority] shall pay the cost of the relocation. (e) Notwithstanding anything in this chapter to the contrary,[:[(1)] Subchapter B, Chapter 181, Utilities Code, applies to the laying and maintenance of pipes, mains, conductors, and other facilities used for conducting gas by a gas utility described in that subchapter through, under, along, across, and over a turnpike project constructed by the department [authority; and[(2) the authority has the powers and duties assigned to the commission by Subchapter B, Chapter 181, Utilities Code]. (f) Notwithstanding anything in this chapter to the contrary, Subchapter C, Chapter 181, Utilities Code, applies to the erection, construction, maintenance, and operation of lines and poles owned by an electric utility, as that term is defined by Section 181.041, Utilities Code, over, under, across, on, and along a turnpike project constructed by the department [authority. The authority has the powers and duties delegated to the commission by Subchapter C, Chapter 181, Utilities Code]. (g) Notwithstanding anything in this chapter to the contrary, the laws of this state applicable to the use of public roads, streets, and waters of this state by a telephone and telegraph corporation apply to the erection, construction, maintenance, location, and operation of a line, pole, or other fixture by a telephone and telegraph corporation over, under, across, on, and along a turnpike project constructed by the department [authority].
SECTION 15.43. Section 361.235(a), Transportation Code, is amended to read as follows: (a) The department [authority] may use real property owned by the state, including submerged land, that the department [authority] considers necessary for the construction or operation of a turnpike project. SECTION 15.44. Section 361.236, Transportation Code, is amended to read as follows: Sec. 361.236. MAINTENANCE OF TURNPIKE PROJECT. The department [authority] shall maintain and keep in good condition and repair each turnpike project opened to traffic. SECTION 15.45. Section 361.238(b) and (c), Transportation Code, are amended to read as follows: (b) If the conditions of Subsections (a)(1) and (2) are met, the commission may continue to charge a toll to fund the construction, maintenance, and operation of other turnpike projects in the region in which the turnpike project is located [sufficient to pay the costs of maintaining the facility]. (c) The following entities shall consider offering motor vehicle operators the option of using a transponder to pay tolls without stopping, to mitigate congestion at toll locations, to enhance traffic flow, and to otherwise increase the efficiency of operations: (1) the department [authority]; (2) an entity to which a project authorized by this chapter is transferred; or (3) a third party service provider under contract with an entity described by Subdivision (1) or (2). SECTION 15.46. Section 361.251, Transportation Code, is amended to read as follows: Sec. 361.251. TURNPIKE PROJECT A STATE [PUBLIC] HIGHWAY. A turnpike project is a state highway subject to all laws applicable to the regulation and control of traffic on a state [public] highway. SECTION 15.47. Section 361.253, Transportation Code, is amended by amending Subsections (b), (d), (e), and (g) and adding Subsection (i) to read as follows: (b) The department [authority] may impose and collect the administrative fee, so as to recover the cost of collecting the unpaid toll, not to exceed $100. The department [authority] shall send a written notice of nonpayment to the registered owner of the vehicle at that owner's address as shown in the vehicle registration records of the department by first class mail not later than the 30th day after the date of the alleged failure to pay and may require payment not sooner than the 30th day the date the notice was mailed. The registered owner shall pay a separate toll and administrative fee for each event of nonpayment under Section 361.252. (d) It is an exception to the application of Subsection (a) or (c) if the registered owner of the vehicle is a lessor of the vehicle and not later than the 30th day after the date the notice of nonpayment is mailed provides to the department [authority] a copy of the rental, lease, or other contract document covering the vehicle on the date of the nonpayment under Section 361.252, with the name and address of the lessee clearly legible. If the lessor provides the required information within the period prescribed, the department [authority] may send a notice of nonpayment to the lessee at the address shown on the contract document by first class mail before the 30th day after the date of receipt of the required information from the lessor. The lessee of the vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under this subsection and fails to pay the proper toll and administrative fee within the time specified by the notice of nonpayment commits an offense. The lessee shall pay a separate toll and administrative fee for each event of nonpayment. Each failure to pay a toll or administrative fee under this subsection is a separate offense. (e) It is an exception to the application of Subsection (a) or (c) if the registered owner of the vehicle transferred ownership of the vehicle to another person before the event of nonpayment under Section 361.252 occurred, submitted written notice of the transfer to the department in accordance with Section 520.023, and, before the 30th day after the date the notice of nonpayment is mailed, provides to the department [authority] the name and address of the person to whom the vehicle was transferred. If the former owner of the vehicle provides the required information within the period prescribed, the department [authority] may send a notice of nonpayment to the person to whom ownership of the vehicle was transferred at the address provided the former owner by first class mail before the 30th day after the date of receipt of the required information from the former owner. The subsequent owner of the vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under this subsection and fails to pay the proper toll and administrative fee within the time specified by the notice of nonpayment commits an offense. The subsequent owner shall pay a separate toll and administrative fee for each event of nonpayment under Section 361.252. Each failure to pay a toll or administrative fee under this subsection is a separate offense. (g) The court in which a person is convicted of an offense under this section shall also collect the proper toll and administrative fee and forward the toll and fee to the department for deposit in the depository bank used for that purpose [authority]. (i) The department may contract, in accordance with Section 2107.003, Government Code, with a person to collect the unpaid toll and administrative fee before referring the matter to a court with jurisdiction over the offense.
SECTION 15.48. Section 361.255(b), Transportation Code, is amended to read as follows: (b) Any peace officer of this state may seize a stolen or insufficiently funded transponder and return it to the department [authority], except that an insufficiently funded transponder may not be seized sooner than the 30th day after the date the department [authority] has sent a notice of delinquency to the holder of the account.
SECTION 15.49. Sections 361.256(a), (b), and (d), Transportation Code, are amended to read as follows: (a) To aid in the collection of tolls and in the enforcement of toll violations, the department [authority] may use automated enforcement technology that it determines is necessary, including automatic vehicle license plate identification photography and video surveillance, by electronic imaging or photographic copying. (b) Automated enforcement technology approved by the department [authority] under Subsection (a) may be used only for the purpose of producing, depicting, photographing, or recording an image of a license plate attached to the front or rear of a vehicle. (d) Evidence obtained from technology approved by the department [authority] under Subsection (a) may not be used in the prosecution of an offense other than under Section 361.252 or 361.253. SECTION 15.50. The heading to Subchapter H, Chapter 361, Transportation Code, is amended to read as follows:
SUBCHAPTER H. TRANSFER OF TURNPIKE PROJECT [TO COUNTY,
MUNICIPALITY, REGIONAL TOLLWAY AUTHORITY,
OR LOCAL GOVERNMENT CORPORATION]
SECTION 15.51. Section 361.281, Transportation Code, is amended to read as follows: Sec. 361.281. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to: (1) a county with a population of more than 1.5 million; (2) a local government corporation serving a county with a population of more than 1.5 million; (3) an adjacent county in a joint turnpike authority with a county with a population of more than 1.5 million; (4) a municipality with a population of more than 170,000 that is adjacent to the United Mexican States; [or] (5) a regional tollway authority created under Chapter 366; or (6) a regional mobility authority created under Section 361.003.
SECTION 15.52. Section 361.282, Transportation Code, is amended to read as follows:
Sec. 361.282. LEASE, SALE, OR CONVEYANCE OF TURNPIKE PROJECT. (a) The department [authority] may lease, sell, or convey in another manner a turnpike project to a county, a municipality, regional tollway authority, regional mobility authority, or a local government corporation created under Chapter 431. (b) The [authority, the] commission[,] and the governor must approve the transfer of the turnpike project as being in the best interests of the state and the entity receiving the turnpike project.
SECTION 15.53. Section 361.283, Transportation Code, is amended to read as follows: Sec. 361.283. DISCHARGE OF [AUTHORITY'S] OUTSTANDING BONDED INDEBTEDNESS. An agreement to lease, sell, or convey a turnpike project under Section 361.282 must provide for the discharge and final payment or redemption of the department's [authority's] outstanding bonded indebtedness for the project. SECTION 15.54. Subchapter H, Chapter 361, Transportation Code, is amended by adding Section 361.284 to read as follows: Sec. 361.284. REPAYMENT OF DEPARTMENT'S EXPENDITURES. (a) Except as provided by Subsection (b), an agreement to lease, sell, or convey a turnpike project under Section 361.282 must provide for the repayment of any expenditures of the department for the design, construction, operation, and maintenance of the project that have not been reimbursed with the proceeds of bonds issued for the project. (b) The commission may waive repayment of all or a portion of the expenditures if it finds that the transfer will result in substantial net benefits to the state, the department, and the public that equal or exceed the amount of repayment waived. SECTION 15.55. Section 361.285(a), Transportation Code, is amended to read as follows: (a) An agreement for the lease, sale, or conveyance of a turnpike project under this subchapter shall be submitted to the attorney general for approval as part of the records of proceedings relating to the issuance of bonds of the county, municipality, regional tollway authority, regional mobility authority, or local government corporation. SECTION 15.56. Section 361.301, Transportation Code, is amended to read as follows: Sec. 361.301. AGREEMENTS WITH PUBLIC OR PRIVATE ENTITIES TO CONSTRUCT, MAINTAIN, REPAIR, AND OPERATE TURNPIKE PROJECTS. (a) Notwithstanding Section 361.231 and Subchapter A, Chapter 2254, Government Code, the department [The authority] may enter into an agreement with a public or private entity, including a toll road corporation, to permit the entity, independently or jointly with the department [authority], to construct, maintain, repair, and operate turnpike projects. (b) The department [authority] may authorize the investment of public and private money, including debt and equity participation, to finance a function described by this section. SECTION 15.57. Section 361.302, Transportation Code, is amended to read as follows: Sec. 361.302. COMPREHENSIVE [EXCLUSIVE] DEVELOPMENT AGREEMENTS [WITH PUBLIC OR PRIVATE ENTITIES]. (a) Subject to Section 361.3021, the department [The authority] may enter into a comprehensive [use an exclusive] development agreement with a private entity to construct, maintain, repair, operate, extend, or expand a turnpike project. (b) In this subchapter, "comprehensive development agreement" means an agreement with a private entity that, at a minimum, provides for the design and construction of a turnpike project and may also provide for the financing, acquisition, maintenance, or operation of a turnpike project [by invested private funding or by public and private funding]. (c) The department [authority:[(1) has broad discretion to negotiate the terms of financing; and[(2)] may negotiate provisions relating to professional and consulting services provided in connection with a comprehensive development agreement [regard to the turnpike project and to the construction, maintenance, and operation of the project, including provisions for combining those services]. (d) Money disbursed by the department under a comprehensive development agreement is not included in the amount: (1) required to be spent in a biennium for engineering and design contracts under Section 223.041; or (2) appropriated in Strategy A.1.1. Plan/Design/Manage of the General Appropriations Act for that biennium for the purpose of making the computation under Section 223.041. (e) The authority to enter into comprehensive development agreements provided by this section expires on August 31, 2011. SECTION 15.58. Subchapter I, Chapter 361, Transportation Code, is amended by adding Sections 361.3021-361.3024 to read as follows: Sec. 361.3021. LIMITATION ON DEPARTMENT FINANCIAL PARTICIPATION. The amount of money disbursed by the department from the state highway fund and the Texas mobility fund during a federal fiscal year to pay the costs under comprehensive development agreements may not exceed 40 percent of the obligation authority under the federal-aid highway program that is distributed to this state for the fiscal year. Sec. 361.3022. PROCESS FOR ENTERING INTO COMPREHENSIVE DEVELOPMENT AGREEMENTS. (a) If the department enters into a comprehensive development agreement, the department shall use a competitive procurement process that provides the best value for the department. The department may accept unsolicited proposals for a proposed project or solicit proposals in accordance with this section. (b) The department shall establish rules and procedures for accepting unsolicited proposals that require the private entity to include in the proposal: (1) information regarding the proposed project location, scope, and limits; (2) information regarding the private entity's qualifications, experience, technical competence, and capability to develop the project; and (3) a proposed financial plan for the proposed project that includes, at a minimum: (A) projected project costs; and (B) proposed sources of funds. (c) The department shall publish a request for competing proposals and qualifications in the Texas Register that includes the criteria used to evaluate the proposals, the relative weight given to the criteria, and a deadline by which proposals must be received if: (1) the department decides to issue a request for qualifications for a proposed project; or (2) the department authorizes the further evaluation of an unsolicited proposal. (d) A proposal submitted in response to a request published under Subsection (c) must contain, at a minimum, the information required by Subsections (b)(2) and (3). (e) The department may interview a private entity submitting an unsolicited proposal or responding to a request under Subsection (c). The department shall evaluate each proposal based on the criteria described in the notice. The department must qualify at least two private entities to submit detailed proposals for a project under Subsection (f) unless the department does not receive more than one proposal or one response to a request under Subsection (c). (f) The department shall issue a request for detailed proposals from all private entities qualified under Subsection (e) if the department proceeds with the further evaluation of a proposed project. A request under this subsection may require additional information relating to: (1) the private entity's qualifications and demonstrated technical competence; (2) the feasibility of developing the project as proposed; (3) detailed engineering or architectural designs; (4) the private entity's ability to meet schedules; (5) costing methodology; or (6) any other information the department considers relevant or necessary. (g) In issuing a request for proposals under Subsection (f), the department may solicit input from entities qualified under Subsection (e) or any other person. The department may also solicit input regarding alternative technical concepts after issuing a request under Subsection (f). (h) The department shall rank each proposal based on the criteria described in the request for proposals and select the private entity whose proposal offers the apparent best value to the department. (i) The department may enter into discussions with the private entity whose proposal offers the apparent best value. The discussions shall be limited to: (1) incorporation of aspects of other proposals for the purpose of achieving the overall best value for the department; (2) clarifications and minor adjustments in scheduling, cash flow, and similar items; and (3) matters that have arisen since the submission of the proposal. (j) If at any point in discussions under Subsection (i), it appears to the department that the highest ranking proposal will not provide the department with the overall best value, the department may enter into discussions with the private entity submitting the next-highest ranking proposal. (k) The department may withdraw a request for competing proposals and qualifications or a request for detailed proposals at any time. The department may then publish a new request for competing proposals and qualifications. (l) The department may require that an unsolicited proposal be accompanied by a nonrefundable fee sufficient to cover all or part of its cost to review the proposal. (m) The department shall pay an unsuccessful private entity that submits a response to a request for detailed proposals under Subsection (f) a stipulated amount of the final contract price for any costs incurred in preparing that proposal. The stipulated amount must be stated in the request for proposals and may not exceed the value of any work product contained in the proposal that can, as determined by the department, be used by the department in the performance of its functions. The use by the department of any design element contained in an unsuccessful proposal is at the sole risk and discretion of the department and does not confer liability on the recipient of the stipulated amount under this section. After payment of the stipulated amount: (1) the department owns with the unsuccessful proposer jointly the rights to, and may make use of any work product contained in, the proposal, including the technologies, techniques, methods, processes, and information contained in the project design; and (2) the use by the unsuccessful proposer of any portion of the work product contained in the proposal is at the sole risk of the unsuccessful proposer and does not confer liability on the department. (n) The department may prescribe the general form of a comprehensive development agreement and may include any matter the department considers advantageous to the department. The department and the private entity shall finalize the specific terms of a comprehensive development agreement. (o) Subchapter A, Chapter 223, and Chapter 2254, Government Code, do not apply to a comprehensive development agreement entered into under Section 361.302. Sec. 361.3023. CONFIDENTIALITY OF INFORMATION RELATING TO COMPREHENSIVE DEVELOPMENT AGREEMENTS. (a) To encourage private entities to submit proposals under Section 361.3022, the following information is confidential, is not subject to disclosure, inspection, or copying under Chapter 552, Government Code, and is not subject to disclosure, discovery, subpoena, or other means of legal compulsion for its release until a final contract for a proposed project is entered into: (1) all or part of a proposal that is submitted by a private entity for a comprehensive development agreement, except information provided under Section 361.3022(b)(1) and (2); (2) supplemental information or material submitted by a private entity in connection with a proposal for a comprehensive development agreement; and (3) information created or collected by the department or its agent during consideration of a proposal for a comprehensive development agreement. (b) After the department completes its final ranking of proposals under Section 361.3022(h), the final rankings of each proposal under each of the published criteria are not confidential. Sec. 361.3024. PERFORMANCE AND PAYMENT SECURITY. (a) Notwithstanding Section 223.006 and the requirements of Subchapter B, Chapter 2253, Government Code, the department shall require a private entity entering into a comprehensive development agreement under Section 361.302 to provide a performance and payment bond or an alternative form of security in an amount sufficient to: (1) ensure the proper performance of the agreement; and (2) protect: (A) the department; and (B) payment bond beneficiaries who have a direct contractual relationship with the private entity or a subcontractor of the private entity to supply labor or material. (b) A performance and payment bond or alternative form of security shall be in an amount equal to the cost of constructing or maintaining the project. (c) If the department determines that it is impracticable for a private entity to provide security in the amount described by Subsection (b), the department shall set the amount of the bonds or the alternative forms of security. (d) A payment or performance bond or alternative form of security is not required for the portion of an agreement that includes only design or planning services, the performance of preliminary studies, or the acquisition of real property. (e) The amount of the payment security must not be less than the amount of the performance security. (f) In addition to performance and payment bonds, the department may require the following alternate forms of security: (1) a cashier's check drawn on a financial entity specified by the department; (2) a United States bond or note; (3) an irrevocable bank letter of credit; or (4) any other form of security determined suitable by the department. (g) The department by rule shall prescribe requirements for alternate forms of security provided under this section. SECTION 15.59. Section 361.303, Transportation Code, is amended to read as follows: Sec. 361.303. OWNERSHIP OF TURNPIKE PROJECT. (a) A turnpike project that is the subject of a comprehensive development agreement with a private entity, including the facilities acquired or constructed on the project, is public property and belongs to the department [authority]. (b) Notwithstanding Subsection (a), the department [authority] may enter into an agreement that provides for the lease of rights-of-way, the granting of easements, the issuance of franchises, licenses, or permits, or any lawful uses to enable a private entity to construct, operate, and maintain a turnpike project, including supplemental facilities. At the termination of the agreement, the turnpike project, including the facilities, is to be in a state of proper maintenance as determined by the department [authority] and shall be returned to the department [authority] in satisfactory condition at no further cost. SECTION 15.60. Section 361.304, Transportation Code, is amended to read as follows: Sec. 361.304. LIABILITY FOR PRIVATE OBLIGATIONS. The department [authority] may not incur a financial obligation for a private entity that constructs, maintains, or operates a turnpike project. The state[, the authority,] or a political subdivision of the state is not liable for any financial or other obligations of a turnpike project solely because a private entity constructs, finances, or operates any part of the project. SECTION 15.61. Section 361.305, Transportation Code, is amended to read as follows: Sec. 361.305. TERMS OF PRIVATE PARTICIPATION. (a) The department [authority] shall negotiate the terms of private participation in a turnpike project, including: (1) methods to determine the applicable cost, profit, and project distribution between the private equity investors and the department [authority]; (2) reasonable methods to determine and classify toll rates; (3) acceptable safety and policing standards; and (4) other applicable professional, consulting, construction, operation, and maintenance standards, expenses, and costs. (b) A comprehensive development agreement entered into under Section 361.302 must include a provision authorizing the department to purchase, under terms and conditions agreed to by the parties, the interest of a private equity investor in a turnpike agreement. (c) The department may only enter into a comprehensive development agreement under Section 361.302 with a private equity investor if the project is identified in the department's unified transportation program or is located on a transportation corridor identified in the statewide transportation plan. SECTION 15.62. Section 361.306, Transportation Code, is amended to read as follows: Sec. 361.306. RULES, PROCEDURES, AND GUIDELINES GOVERNING SELECTION AND NEGOTIATING PROCESS. (a) The commission [authority] shall adopt rules, procedures, and guidelines governing selection and negotiations to promote fairness, obtain private participants in turnpike projects, and promote confidence among those participants. The rules must contain criteria relating to the qualifications of the participants and the award of the contracts [and may authorize the authority to impose a fee for reviewing proposals for private involvement in a turnpike project]. (b) The department [authority] shall have up-to-date procedures for participation in negotiations on turnpike projects. (c) The department [authority] has exclusive judgment to determine the terms of an agreement. (d) The department [authority] shall include the attorney general or the attorney general's designated representative in a negotiation with a private participant. SECTION 15.63. Section 361.307, Transportation Code, is amended to read as follows: Sec. 361.307. AGREEMENTS WITH PRIVATE ENTITIES AND OTHER GOVERNMENTAL AGENCIES. (a) The department [authority] and a private entity jointly may enter into an agreement with another governmental agency or entity, including a federal agency, an agency of this or another state, including the United Mexican States or a state of the United Mexican States, or a political subdivision, to independently or jointly provide services, to study the feasibility of a turnpike project, or to finance, construct, operate, and maintain a turnpike project. (b) The department may not enter into an agreement with the United Mexican States or a state of the United Mexican States without the approval of the governor. SECTION 15.64. Section 361.331(a), Transportation Code, is amended to read as follows: (a) After the department [authority] conducts a public hearing in each affected county, [and with the approval of] the commission[, the authority] may designate as a pooled turnpike project two or more turnpike projects that are wholly or partly located in the territory of: (1) a metropolitan planning organization; or (2) two adjacent districts of the department. SECTION 15.65. Section 361.333, Transportation Code, is amended to read as follows: Sec. 361.333. ISSUANCE OF TURNPIKE REVENUE BONDS; PLEDGE OF PROJECT REVENUE. Subject to this chapter, the commission [authority] may: (1) provide by order [resolution] for the issuance of turnpike revenue bonds to pay all or part of the cost of a pooled turnpike project; and (2) pledge all or part of the revenue of the project. SECTION 15.66. Sections 361.334(a) and (e), Transportation Code, are amended to read as follows: (a) The commission [authority] by order [resolution] may issue turnpike revenue refunding bonds to: (1) refund any outstanding bonds issued under this chapter for a pooled turnpike project, including any redemption premium on the bonds and any interest accrued as of the date of redemption of the bonds; and (2) construct an improvement, extension, or enlargement to a pooled turnpike project. (e) The commission [authority] may: (1) issue refunding bonds in exchange for outstanding bonds; or (2) sell refunding bonds and use the proceeds to redeem outstanding bonds. SECTION 15.67. Section 361.335, Transportation Code, is amended to read as follows: Sec. 361.335. ISSUANCE OF BONDS AND PLEDGE OF TURNPIKE PROJECT REVENUE WITHOUT REGARD TO WHETHER BONDS ARE REFUNDED. Without regard to whether bonds are refunded, the commission [authority] by order [resolution] may: (1) issue bonds, of parity or otherwise, to: (A) pay all or part of the cost of a pooled turnpike project; or (B) construct an improvement, extension, or enlargement to a pooled turnpike project; and (2) pledge all or part of the revenue of the pooled turnpike project to the payment of the bonds. SECTION 15.68. Sections 362.003(b) and (c), Transportation Code, are amended to read as follows: (b) This chapter is cumulative of all laws affecting the commission, the department, and the local governmental entities, except that in the event any other law conflicts with this chapter, the provisions of this chapter prevail. Chapters 1201 and 1371, Government Code, and Subchapters A, B, and C, Chapter 1207, Government Code, apply to bonds issued by the commission under this chapter. (c) The department may [This chapter is cumulative of all laws affecting the authority, and the authority is authorized to] enter into all agreements necessary or convenient to effectuate the purposes of this chapter. [Particularly, but not by way of limitation, the provisions of Chapters 1201 and 1371, Government Code, and Subchapters A-C, Chapter 1207, Government Code, and Chapter 361 are applicable to the bonds issued by the authority under this chapter.] SECTION 15.69. Sections 362.007(a) and (b), Transportation Code, are amended to read as follows: (a) Under authority of Section 52, Article III, Texas Constitution, a local governmental entity other than a nonprofit corporation may, upon the required vote of the qualified voters, in addition to all other debts, issue bonds or enter into and make payments under agreements with the department [authority], not to exceed 40 years in term, in any amount not to exceed one-fourth of the assessed valuation of real property within the local governmental entity, except that the total indebtedness of any municipality shall never exceed the limits imposed by other provisions of the constitution, and levy and collect taxes to pay the interest thereon and provide a sinking fund for the redemption thereof, for the purposes of construction, maintenance, and operation of turnpike projects of the department [authority], or in aid thereof. (b) In addition to Subsection (a), a local governmental entity may, within any applicable constitutional limitations, agree with the department [authority] to issue bonds or enter into and make payments under an agreement to construct, maintain, or operate any portion of a turnpike project of the department [authority]. SECTION 15.70. Section 362.008, Transportation Code, is amended to read as follows: Sec. 362.008. ADDITIONAL AGREEMENTS OF DEPARTMENT [AUTHORITY]. The department [authority] may enter into any agreement necessary or convenient to achieve the purposes of this subchapter. SECTION 15.71. The heading to Section 545.354, Transportation Code, is amended to read as follows: Sec. 545.354. AUTHORITY OF [TEXAS TURNPIKE AUTHORITY AND] REGIONAL TOLLWAY AUTHORITIES TO ALTER SPEED LIMITS ON TURNPIKE PROJECTS. SECTION 15.72. Section 545.354(a)(1), Transportation Code, is amended to read as follows: (1) In this section, "authority" means [the Texas Turnpike Authority or] a regional tollway authority governed by Chapter 366. SECTION 15.73. Section 621.102(a), Transportation Code, is amended to read as follows: (a) The [Except as provided by Subsection (h), the] commission may set the maximum single axle weight, tandem axle weight, or gross weight of a vehicle, or maximum single axle weight, tandem axle weight, or gross weight of a combination of vehicles and loads, that may be moved over a state highway or a farm or ranch road if the commission finds that heavier maximum weight would rapidly deteriorate or destroy the road or a bridge or culvert along the road. A maximum weight set under this subsection may not exceed the maximum set by statute for that weight. SECTION 15.74. Sections 222.103(i) and (j), 361.005, 361.043, 361.046, 361.0485, 361.049, 361.051, 361.052, 361.053, 361.055, 361.102, 361.181, 361.182, 361.184, 361.231(b), 361.237, 361.308, 362.001(1), 362.052, 362.053, and 621.102(h), Transportation Code, are repealed. SECTION 15.75. This article takes effect immediately if this Act 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 article takes effect September 1, 2003.
ARTICLE 16. COMMERCIAL MOTOR VEHICLE SAFETY STANDARDS
SECTION 16.01. Subdivision (1), Section 548.001, Transportation Code, is amended to read as follows: (1) "Commercial motor vehicle" means a self-propelled or towed vehicle, other than a farm vehicle with a gross weight, registered weight, or gross weight rating of less than 48,000 pounds, that is used on a public highway to transport passengers or cargo if: (A) the vehicle, including a school activity bus as defined in Section 541.201, or combination of vehicles has a gross weight, registered weight, or gross weight rating of more than 26,000 pounds; (B) the vehicle, including a school activity bus as defined in Section 541.201, is designed or used to transport more than 15 passengers, including the driver; or (C) the vehicle is used to transport hazardous materials in a quantity requiring placarding by a regulation issued under the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 [1801] et seq.). SECTION 16.02. Subdivisions (1) and (5), Section 644.001, Transportation Code, are amended to read as follows: (1) "Commercial motor vehicle" means: (A) a commercial motor vehicle as defined by 49 C.F.R. Section 390.5, if operated interstate; or (B) a commercial motor vehicle as defined [described] by Section 548.001, if operated intrastate. (5) "Federal motor carrier safety regulation" means a federal regulation in Subtitle A, Title 49, or Subchapter B, Chapter III, Subtitle B, Title 49, Code of Federal Regulations. SECTION 16.03. Subsections (a) through (d), Section 644.103, Transportation Code, are amended to read as follows: (a) An officer of the department may stop, enter, or detain on a highway or at a port of entry a motor vehicle that is subject to this chapter. (b) A municipal police officer who is certified under Section 644.101 may stop, enter, or detain on a highway or at a port of entry within the territory of the municipality a motor vehicle that is subject to this chapter. A sheriff or deputy sheriff who is certified under Section 644.101 may stop, enter, or detain on a highway or at a port of entry within the territory of the county a motor vehicle that is subject to this chapter. (c) A person [An officer] who detains a vehicle under this section may prohibit the further operation of the vehicle on a highway if the vehicle or operator of the vehicle is in violation of a federal safety regulation or a rule adopted under this chapter. (d) A noncommissioned employee of the department who is certified for the purpose by the director and who is supervised by an officer of the department may, at a fixed-site facility, stop, enter, or detain a motor vehicle that is subject to this chapter. If the employee's inspection shows that an enforcement action, such as the issuance of a citation, is warranted, the noncommissioned employee may take enforcement action only if the employee is under the supervision of an [supervising] officer of the department [must take the action]. SECTION 16.04. Section 644.153, Transportation Code, is amended to read as follows: Sec. 644.153. ADMINISTRATIVE PENALTY. (a) The department may impose an administrative penalty against a person who violates: (1) a rule adopted under this chapter; or (2) a provision of Subchapter [Subtitle] C that the department by rule subjects to administrative penalties. (b) To be designated as subject to an administrative penalty under Subsection (a)(2), a provision must relate to the safe operation of a commercial motor vehicle. (c) The department shall: (1) designate one or more employees to investigate violations and conduct audits of persons subject to this chapter; and (2) impose an administrative penalty if the department discovers a violation that is covered by Subsection (a) or (b). (d) A penalty under this section[:[(1)] may not exceed the maximum penalty provided for a violation of a similar federal safety regulation[; and[(2) shall be administered in the same manner as a penalty under Section 643.251, except that the amount of a penalty shall be determined under Subdivision (1)]. (e) If the department determines to impose a penalty, the department shall issue a notice of claim. The department shall send the notice of claim by certified mail, registered mail, personal delivery, or another manner of delivery that records the receipt of the notice by the person responsible. The notice of claim must include a brief summary of the alleged violation and a statement of the amount of the recommended penalty and inform the person that the person is entitled to a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty. [(d)] A person who is subject to an administrative penalty imposed by the department under this section [subchapter] is required to pay the penalty [administrative penalties] or respond to the department within 20 days of receipt of the department's notice of claim. (f) Before the 21st day after the date the person receives the notice of claim, the person may: (1) accept the determination and pay the recommended penalty; or (2) make a written request for an informal hearing or an administrative hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty. (g) At the conclusion of an informal hearing requested under Subsection (f), the department may modify the recommendation for a penalty. (h) If the person requests an administrative hearing, the department shall set a hearing and give notice of the hearing to the person. The hearing shall be held by an administrative law judge of the State Office of Administrative Hearings. The administrative law judge shall make findings of fact and conclusions of law and promptly issue to the director a proposal for a decision as to the occurrence of the violation and the amount of a proposed penalty. (i) If a penalty is proposed under Subsection (h), the administrative law judge shall include in the proposal for a decision a finding setting out costs, fees, expenses, and reasonable and necessary attorney's fees incurred by the state in bringing the proceeding. The director may adopt the finding and make it a part of a final order entered in the proceeding. (j) Based on the findings of fact, conclusions of law, and proposal for a decision, the director by order may find that a violation has occurred and impose a penalty or may find that no violation occurred. The director may, pursuant to Section 2001.058(e), Government Code, increase or decrease the amount of the penalty recommended by the administrative law judge within the limits prescribed by this chapter. (k) Notice of the director's order shall be given to the affected person in the manner required by Chapter 2001, Government Code, and must include a statement that the person is entitled to seek a judicial review of the order. (l) Before the 31st day after the date the director's order becomes final as provided by Section 2001.144, Government Code, the person must: (1) pay the amount of the penalty; (2) pay the amount of the penalty and file a petition for judicial review contesting: (A) the occurrence of the violation; (B) the amount of the penalty; or (C) both the occurrence of the violation and the amount of the penalty; or (3) without paying the amount of the penalty, file a petition for judicial review contesting: (A) the occurrence of the violation; (B) the amount of the penalty; or (C) both the occurrence of the violation and the amount of the penalty. (m) Within the 30-day period under Subsection (l), a person who acts under Subsection (l) may: (1) stay enforcement of the penalty by: (A) paying the amount of the penalty to the court for placement in an escrow account; or (B) filing with the court a supersedeas bond approved by the court for the amount of the penalty that is effective until all judicial review of the director's order is final; or (2) request the court to stay enforcement of the penalty by: (A) filing with the court an affidavit of the person stating that the person is financially unable to pay the amount of the penalty and is financially unable to give the supersedeas bond; and (B) sending a copy of the affidavit to the director by certified mail. (n) Before the sixth day after the date the director receives a copy of an affidavit filed under Subsection (m)(2), the department may file with the court a contest to the affidavit. The court shall hold a hearing on the facts alleged in the affidavit as soon as practicable and shall stay the enforcement of the penalty if the court finds that the alleged facts are true. The person who files an affidavit under Subsection (m)(2) has the burden of proving that the person is financially unable to: (1) pay the amount of the penalty; and (2) file the supersedeas bond. (o) If the person does not pay the amount of the penalty and the enforcement of the penalty is not stayed, the director may: (1) refer the matter to the attorney general for collection of the amount of the penalty; (2) initiate an impoundment proceeding under Subsection (q); or (3) refer the matter to the attorney general and initiate the impoundment proceeding. (p) [(e)] A person who fails to pay, or becomes delinquent in the payment of an administrative penalty[, the administrative penalties] imposed by the department under this subchapter may [shall] not operate or direct the operation of a commercial motor vehicle on the highways of this state until [such time as] the administrative penalty has [penalties have] been remitted to the department. (q) [(f)] The department shall impound any commercial motor vehicle owned or operated by a person in violation of Subsection (p) [(e)] after the department has first served the person with a notice of claim. Service of the notice may be by certified mail, registered mail, personal delivery, or any other manner of delivery showing receipt of the notice. (r) [(g)] A commercial motor vehicle impounded by the department under Subsection (q) [this section] shall remain impounded until [such time as] the administrative penalties imposed against the person are remitted to the department, except that an impounded commercial motor vehicle left at a vehicle storage facility controlled by the department or any other person shall be considered an abandoned motor vehicle on the 11th day after the date of impoundment if the delinquent administrative penalty is not remitted to the department before that day. Chapter 683 applies to the commercial motor vehicle, except that the department is entitled to receive from the proceeds of the sale the amount of the delinquent administrative penalty and costs. (s) [(h)] All costs associated with the towing and storage of the commercial motor vehicle and load shall be the responsibility of the person and not the department or the State of Texas. (t) A proceeding under this section is subject to Chapter 2001, Government Code. SECTION 16.05. Section 644.155, Transportation Code, is amended to read as follows: Sec. 644.155. COMPLIANCE REVIEW AND SAFETY AUDIT PROGRAM. The department shall implement and enforce a compliance review and safety audit program similar to the federal program established under 49 C.F.R. Part 385 for any person who owns or operates a commercial motor vehicle that is domiciled in this state. SECTION 16.06. Subsection (a), Section 683.002, Transportation Code, is amended to read as follows: (a) For the purposes of this chapter, a motor vehicle is abandoned if the motor vehicle: (1) is inoperable, is more than five years old, and has been left unattended on public property for more than 48 hours; (2) has remained illegally on public property for more than 48 hours; (3) has remained on private property without the consent of the owner or person in charge of the property for more than 48 hours; (4) has been left unattended on the right-of-way of a designated county, state, or federal highway for more than 48 hours; [or] (5) has been left unattended for more than 24 hours on the right-of-way of a turnpike project constructed and maintained by the Texas Turnpike Authority division of the Texas Department of Transportation or a controlled access highway; or (6) is considered an abandoned motor vehicle under Section 644.153(r). SECTION 16.07. Subsection (b), Section 683.012, Transportation Code, is amended to read as follows: (b) The notice under Subsection (a) must: (1) be sent by certified mail not later than the 10th day after the date the agency: (A) takes the abandoned motor vehicle, watercraft, or outboard motor into custody; or (B) receives the report under Section 683.031; (2) specify the year, make, model, and identification number of the item; (3) give the location of the facility where the item is being held; (4) inform the owner and lienholder of the right to claim the item not later than the 20th day after the date of the notice on payment of: (A) towing, preservation, and storage charges; or (B) garagekeeper's charges and fees under Section 683.032 and, if the vehicle is a commercial motor vehicle impounded under Section 644.153(q), the delinquent administrative penalty and costs; and (5) state that failure of the owner or lienholder to claim the item during the period specified by Subdivision (4) is: (A) a waiver by that person of all right, title, and interest in the item; and (B) consent to the sale of the item at a public auction. SECTION 16.08. Section 683.015, Transportation Code, is amended by adding Subsection (e) to read as follows: (e) If the vehicle is a commercial motor vehicle impounded under Section 644.153(q), the Department of Public Safety is entitled from the proceeds of the sale to an amount equal to the amount of the delinquent administrative penalty and costs. SECTION 16.09. (a) This article takes effect September 1, 2003. (b) The changes in law made in Section 16.04 of this article apply only to an administrative penalty for a violation that occurs on or after the effective date of this article. (c) An administrative penalty for a violation that occurred before the effective date of this article is governed by the law in effect at the time of the violation, and the former law is continued in effect for that purpose.
ARTICLE 17. NONREPAIRABLE AND SALVAGE MOTOR VEHICLES; SALVAGE VEHICLE DEALERS
SECTION 17.01. Section 501.0234(b), Transportation Code, is amended to read as follows: (b) This section does not apply to a motor vehicle: (1) that has been declared a total loss by an insurance company in the settlement or adjustment of a claim; (2) for which the certificate of title has been surrendered in exchange for: (A) a salvage vehicle [certificate of] title issued under this chapter; (B) a nonrepairable [motor] vehicle [certificate of] title issued under this chapter; (C) a certificate of authority issued under Subchapter D, Chapter 683; or (D) an ownership document issued by another state that is comparable to a document described by Paragraphs (A)-(C); or (3) with a gross weight in excess of 11,000 pounds. SECTION 17.02. Subchapter E, Chapter 501, Transportation Code, is amended to read as follows:
SUBCHAPTER E. NONREPAIRABLE AND SALVAGE MOTOR VEHICLES
Sec. 501.091 [501.0911]. DEFINITIONS. [(a)] In this subchapter: (1) "Actual cash value" means the market value of a motor vehicle [as determined:[(A) from publications commonly used by the automotive and insurance industries to establish the values of motor vehicles; or[(B) if the entity determining the value is an insurance company, by any other procedure recognized by the insurance industry, including market surveys, that is applied by the company in a uniform manner]. (2) ["Automobile recycler" means a person in the business of dealing in salvage motor vehicles for the purpose of dismantling the vehicles to sell used parts or a person otherwise engaged in the business of acquiring, selling, or dealing in salvage parts for reuse or resale as parts. The term includes a dealer in used motor vehicle parts.[(3)] "Casual sale" means the sale by a salvage vehicle dealer or an insurance company [at auction] of not more than five [one] nonrepairable motor vehicles [vehicle] or [late model] salvage motor vehicles [vehicle] to the same person during a calendar year. The term does not include: (A) a sale at auction to a salvage vehicle dealer; or (B) the sale of an export-only motor vehicle to a person who is not a resident of the United States. (3) "Damage" means sudden damage to a motor vehicle caused by the motor vehicle being wrecked, burned, flooded, or stripped of major component parts. The term does not include gradual damage from any cause, sudden damage caused by hail, or any damage caused only to the exterior paint of the motor vehicle. (4) "Export-only motor vehicle" means a motor vehicle described by Section 501.099. (5) [(4)] "Insurance company" means: (A) a person authorized to write automobile insurance in this state; or (B) an out-of-state insurance company that pays a loss claim for a motor vehicle in this state. [(5) "Late model motor vehicle" means a motor vehicle with the same model year as the current calendar year or one of the five calendar years preceding that calendar year.] (6) ["Late model salvage motor vehicle" or "salvage motor vehicle" means a late model motor vehicle, other than a late model vehicle that is a nonrepairable motor vehicle, that is damaged to the extent that the total estimated cost of repairs, other than repairs related to hail damage but including parts and labor, is equal to or greater than an amount equal to 75 percent of the actual cash value of the vehicle in its predamaged condition.[(7)] "Major component part" means one of the following parts of a motor vehicle: (A) the engine; (B) the transmission; (C) the frame; (D) a [the right or left front] fender; (E) the hood; (F) a door allowing entrance to or egress from the passenger compartment of the motor vehicle; (G) a [the front or rear] bumper; (H) a [the right or left] quarter panel; (I) a [the] deck lid, tailgate, or hatchback; (J) the cargo box of a one-ton or smaller truck, including a pickup truck; (K) the cab of a truck; [or] (L) the body of a passenger motor vehicle; (M) the roof or floor pan of a passenger motor vehicle, if separate from the body of the motor vehicle. (7) "Metal recycler" means a person who: (A) is predominately engaged in the business of obtaining ferrous or nonferrous metal that has served its original economic purpose to convert the metal, or sell the metal for conversion, into raw material products consisting of prepared grades and having an existing or potential economic value; (B) has a facility to convert ferrous or nonferrous metal into raw material products consisting of prepared grades and having an existing or potential economic value, by method other than the exclusive use of hand tools, including the processing, sorting, cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or changing the physical form or chemical content of the metal; and (C) sells or purchases the ferrous or nonferrous metal solely for use as raw material in the production of new products. (8) "Motor vehicle" has the meaning assigned by Section 501.002(14). (9) [(8)] "Nonrepairable motor vehicle" means a [late model] motor vehicle that: (A) is damaged, wrecked, or burned to the extent that the only residual value of the vehicle is as a source of parts or scrap metal; or (B) comes into this state under a title or other ownership document that indicates that the vehicle is nonrepairable, junked, or for parts or dismantling only [or missing a major component part to the extent that the total estimated cost of repairs to rebuild or reconstruct the vehicle, including parts and labor other than the costs of materials and labor for repainting the vehicle and excluding sales taxes on the total cost of the repairs, and excluding the cost of repairs to repair hail damage, is equal to or greater than an amount equal to 95 percent of the actual cash value of the vehicle in its predamaged condition]. (10) [(9)] "Nonrepairable [motor] vehicle [certificate of] title" means a document issued by the department that evidences ownership of a nonrepairable motor vehicle. [(10) "Older model motor vehicle" means a motor vehicle that was manufactured in a model year before the sixth preceding model year, including the current model year.] (11) ["Other negotiable evidence of ownership" means a document other than a Texas certificate of title or a salvage certificate of title that relates to a motor vehicle that the department considers sufficient to support issuance of a Texas certificate of title for the vehicle.[(12)] "Out-of-state buyer" means a person licensed in an automotive business by another state or jurisdiction if the department has listed the holders of such a license as permitted purchasers of salvage motor vehicles or nonrepairable motor vehicles based on substantially similar licensing requirements and on whether salvage vehicle dealers licensed in Texas are permitted to purchase salvage motor vehicles or nonrepairable motor vehicles in the other state or jurisdiction. (12) "Out-of-state ownership document" means a negotiable document issued by another state or jurisdiction that the department considers sufficient to prove ownership of a nonrepairable motor vehicle or salvage motor vehicle and to support the issuance of a comparable Texas certificate of title for the motor vehicle. The term does not include a title issued by the department, including a regular certificate of title, a nonrepairable vehicle title, a salvage vehicle title, a Texas Salvage Certificate, Certificate of Authority to Demolish a Motor Vehicle, or another ownership document issued by the department. (13) "Public highway" has the meaning assigned by Section 502.001. (14) [(13)] "Rebuilder" means a person who acquires and repairs, rebuilds, or reconstructs for operation on a public highway [highways], three [five] or more [late model] salvage motor vehicles in a calendar year [any 12-month period]. (15) "Salvage motor vehicle": (A) means a motor vehicle that: (i) is damaged to the extent that the cost of repair exceeds the actual cash value of the motor vehicle immediately before the damage; or (ii) is damaged and that comes into this state under an out-of-state salvage motor vehicle certificate of title or similar out-of-state ownership document that states on its face "accident damage," "flood damage," "inoperable," "rebuildable," "salvageable," or similar notation; and (B) does not include an out-of-state motor vehicle with a "rebuilt," "prior salvage," "salvaged," or similar notation, a nonrepairable motor vehicle, or a motor vehicle for which an insurance company has paid a claim for: (i) the cost of repairing hail damage; or (ii) theft, unless the motor vehicle was damaged during the theft and before recovery to the extent described by Paragraph (A)(i). (16) [(14)] "Salvage [motor] vehicle [certificate of] title" means a [any] document issued by the department that evidences ownership of a salvage motor vehicle. (17) [(15)] "Salvage vehicle dealer" means a person engaged in this state in the business of acquiring, selling, dismantling, repairing, rebuilding, reconstructing, or otherwise dealing in nonrepairable motor vehicles, salvage motor vehicles, or used parts. The term does not include a person who casually repairs, rebuilds, or reconstructs fewer than three salvage motor vehicles in the same calendar year. The term includes a person engaged in the business of: (A) a salvage vehicle dealer, regardless of whether the person holds a license issued by the department to engage in that business; (B) dealing in nonrepairable motor vehicles or salvage motor vehicles, regardless of whether the person deals in used parts; or (C) dealing in used parts regardless of whether the person deals in nonrepairable motor vehicles or salvage motor vehicles [has the meaning assigned by Section 1.01, Article 6687-1a, Revised Statutes]. (18) "Self-insured motor vehicle" means a motor vehicle for which the evidence of ownership is a manufacturer's certificate of origin or for which the department or another state or jurisdiction has issued a regular certificate of title, is self-insured by the owner, and is owned by an individual, a business, or a governmental entity, without regard to the number of motor vehicles they own or operate. The term does not include a motor vehicle that is insured by an insurance company. (19) "Used part" means a part that is salvaged, dismantled, or removed from a motor vehicle for resale as is or as repaired. The term includes a major component part but does not include a rebuildable or rebuilt core, including an engine, block, crankshaft, transmission, or other core part that is acquired, possessed, or transferred in the ordinary course of business [(b) For purposes of this subchapter:[(1) the estimated cost of repair parts shall be determined by using a manual of repair costs or other instrument that is generally recognized and commonly used in the motor vehicle insurance industry to determine those costs or an estimate of the actual cost of the repair parts; and[(2) the estimated labor costs shall be computed by using the hourly rate and time allocations that are reasonable and commonly assessed in the repair industry in the community in which the repairs are performed]. Sec. 501.092 [501.0912]. INSURANCE COMPANY TO SURRENDER CERTIFICATES OF TITLE TO CERTAIN [LATE MODEL] SALVAGE MOTOR VEHICLES OR NONREPAIRABLE MOTOR VEHICLES. (a) An insurance company that is licensed to conduct business in this state and that acquires, through payment of a claim, ownership or possession of a [late model] salvage motor vehicle or nonrepairable motor vehicle covered by a certificate of title issued by this state or a manufacturer's certificate of origin [through payment of a claim] shall surrender a properly assigned [certificate of] title or manufacturer's certificate of origin to the department, on a form prescribed by the department, except that not earlier than the 46th day after the date of payment of the claim the insurance company may surrender a certificate of title, on a form prescribed by the department, and receive a salvage certificate of title or a nonrepairable certificate of title without obtaining a properly assigned certificate of title if the insurance company: (1) has obtained the release of all liens on the motor vehicle; (2) is unable to locate one or more owners of the motor vehicle; and (3) has provided notice to the last known address in the department's records to each owner that has not been located: (A) by registered or certified mail, return receipt requested; or (B) if a notice sent under Paragraph (A) is returned unclaimed, by publication in a newspaper of general circulation in the area where the unclaimed mail notice was sent. (b) For a salvage motor vehicle [described by Section 501.0911(6) but not by Section 501.0911(8)], the insurance company shall apply for a salvage [motor] vehicle [certificate of] title. For a nonrepairable motor vehicle [described by Section 501.0911(8)], the insurance company shall apply for a nonrepairable [motor] vehicle [certificate of] title. (c) An insurance company may not sell a [late model salvage] motor vehicle to which this section applies unless the department has issued a salvage [motor] vehicle [certificate of] title or a nonrepairable [motor] vehicle [certificate of] title for the motor vehicle or a comparable ownership document has been issued by another state or jurisdiction for the motor vehicle. (d) An insurance company may sell a [late model salvage] motor vehicle to which this section applies, or assign a salvage [motor] vehicle [certificate of] title or a nonrepairable [motor] vehicle [certificate of] title for the motor vehicle, only to a salvage vehicle dealer, an out-of-state buyer, a buyer in a casual sale at auction, or a metal recycler [person described by Subsection (g), Article 6687-2b, Revised Statutes]. If the motor vehicle is not a [late model] salvage motor vehicle or a nonrepairable motor vehicle, the insurance company is not required to surrender the regular certificate of title for the vehicle or to be issued a salvage [motor] vehicle [certificate of] title or a nonrepairable [motor] vehicle [certificate of] title for the motor vehicle. (e) An insurance company or other person who acquires ownership of a motor vehicle other than a nonrepairable or salvage motor vehicle may voluntarily and on proper application obtain a salvage vehicle title or a nonrepairable vehicle title for the vehicle. Sec. 501.093 [501.0915]. INSURANCE COMPANY [TO SUBMIT] REPORT ON CERTAIN VEHICLES [TO DEPARTMENT]. (a) If an insurance company pays [after payment of] a [total loss] claim on a [late model salvage motor vehicle or a] nonrepairable motor vehicle or salvage motor vehicle and the [an] insurance company does not acquire ownership of the motor vehicle, the insurance company shall submit to the department, before the 31st day after the date of the payment of the claim, on the form prescribed by the department, a report stating that the insurance company: (1) [the insurance company] has paid a [total loss] claim on the motor vehicle; and (2) [the insurance company] has not acquired ownership of the motor vehicle. (b) The owner of a [late model salvage] motor vehicle to which this section applies may not operate or permit operation of the motor vehicle on a public highway or transfer ownership of the motor vehicle by sale or otherwise unless the department has issued a salvage [motor] vehicle [certificate of] title or a nonrepairable [motor] vehicle [certificate of] title for the motor vehicle or a comparable ownership document has been issued by another state or jurisdiction for the motor vehicle. (c) Subsection (b) does not apply if: (1) the department has issued a nonrepairable vehicle title or salvage vehicle title for the motor vehicle; or (2) another state or jurisdiction has issued a comparable out-of-state ownership document for the motor vehicle. Sec. 501.094. SELF-INSURED MOTOR VEHICLE. (a) This section applies only to a motor vehicle in this state that is: (1) a self-insured motor vehicle; (2) damaged to the extent it becomes a nonrepairable or salvage motor vehicle; and (3) removed from normal operation by the owner. (b) The owner of a motor vehicle to which this section applies shall submit to the department before the 31st day after the date of the damage, on the form prescribed by the department, a report stating that the motor vehicle was self-insured, damaged, and was removed from normal operation. (c) When the owner submits a report under Subsection (b), the owner shall: (1) surrender the regular certificate of title or manufacturer's certificate of origin for the motor vehicle; and (2) apply for a nonrepairable vehicle title or salvage vehicle title under this subchapter. Sec. 501.095 [501.0916]. SALE, TRANSFER, OR RELEASE OF NONREPAIRABLE MOTOR VEHICLE OR [LATE MODEL] SALVAGE [OR NONREPAIRABLE] MOTOR VEHICLE. (a) If the department has not issued a nonrepairable vehicle title or salvage vehicle title for the motor vehicle and an out-of-state ownership document for the motor vehicle has not been issued by another state or jurisdiction, a business or governmental entity described by Subdivisions (1)-(3) [A person] may [not] sell, transfer, or release a [late model salvage motor vehicle or a] nonrepairable motor vehicle or salvage motor vehicle only to a person who is [other than]: (1) a licensed [person who holds a] salvage vehicle dealer or metal recycler [license issued] under Chapter 2302, Occupations Code; (2) an insurance company that has paid a claim on the nonrepairable or salvage motor [former owner of the] vehicle; (3) a governmental entity; or (4) an out-of-state buyer[;[(5) a buyer in a casual sale at auction; or[(6) a person described by Section 2302.003, Occupations Code]. (b) A person, other than a salvage vehicle dealer or an insurance company licensed to do business in this state, who acquired ownership of a nonrepairable or salvage [who sells, transfers, or releases a] motor vehicle that has not been issued [under Subsection (a) shall deliver a properly assigned certificate of title for the vehicle to the person to whom the motor vehicle is sold, transferred, or released. If the assigned certificate of title is not a salvage motor vehicle certificate of title,] a nonrepairable [motor] vehicle [certificate of] title, salvage vehicle title, or a comparable ownership document issued by another state or jurisdiction[, the purchaser] shall, before selling the motor vehicle, surrender the properly assigned [not later than the 10th day after the date the purchaser receives the] certificate of title for the motor vehicle to the department and apply to the department for: (1) a nonrepairable vehicle title if the vehicle is a nonrepairable motor vehicle [surrender the certificate of title to the department]; or [and] (2) [apply for] a salvage [motor] vehicle [certificate of] title if the vehicle is a salvage motor vehicle [or a nonrepairable motor vehicle certificate of title for the vehicle, as appropriate]. (c) If the department has issued a nonrepairable vehicle title or salvage vehicle title for the motor vehicle or another state or jurisdiction has issued a comparable out-of-state ownership document for the motor vehicle, a person may sell, transfer, or release a nonrepairable motor vehicle or salvage motor vehicle to any person [A salvage vehicle dealer that acquires ownership of a late model salvage motor vehicle or a nonrepairable motor vehicle for the purpose of dismantling, scrapping, or destroying the vehicle shall, before the 31st day after the date the dealer acquires the vehicle, submit to the department, on the form prescribed by the department, a report stating that the vehicle will be dismantled, scrapped, or destroyed, accompanied by a properly assigned regular certificate of title, salvage motor vehicle certificate of title, nonrepairable motor vehicle certificate of title, or comparable ownership document issued by another state or jurisdiction for the vehicle.[(d) On receipt of the report and the certificate of title, the department shall issue the salvage vehicle dealer a receipt for the certificate of title, salvage motor vehicle certificate of title, nonrepairable motor vehicle certificate of title, or comparable ownership document issued by another state or jurisdiction.[(e) A salvage vehicle dealer who submits a report under Subsection (c) shall report to the department after the action is taken that the vehicle was dismantled, scrapped, or destroyed]. Sec. 501.096. NONREPAIRABLE MOTOR VEHICLE OR SALVAGE MOTOR VEHICLE DISMANTLED, SCRAPPED, OR DESTROYED. (a) If a salvage vehicle dealer acquires ownership of a nonrepairable motor vehicle or salvage motor vehicle for the purpose of dismantling, scrapping, or destroying the motor vehicle, the dealer shall, before the 31st day after the date the dealer acquires the motor vehicle, submit to the department a report stating that the motor vehicle will be dismantled, scrapped, or destroyed. The dealer shall: (1) make the report on a form prescribed by the department; and (2) submit with the report a properly assigned manufacturer's certificate of origin, regular certificate of title, nonrepairable vehicle title, salvage vehicle title, or comparable out-of-state ownership document for the motor vehicle. (b) After receiving the report and title or document, the department shall issue the salvage vehicle dealer a receipt for the manufacturer's certificate of origin, regular certificate of title, nonrepairable vehicle title, salvage vehicle title, or comparable out-of-state ownership document. (c) The salvage vehicle dealer shall: (1) [Sec. 501.0917. SALVAGE VEHICLE DEALER TO SUBMIT REPORT TO DEPARTMENT. (a) A salvage vehicle dealer that acquires an older model vehicle for the purpose of dismantling, scrapping, or destroying the vehicle and that receives a properly assigned certificate of title for the vehicle shall, before the 31st day after the date the dealer acquires the vehicle:[(1) submit to the department, on the form prescribed by the department, a report stating that the vehicle will be dismantled, scrapped, or destroyed, accompanied by the properly assigned regular certificate of title, salvage motor vehicle certificate of title, nonrepairable motor vehicle certificate of title, or comparable ownership document issued by another state or jurisdiction for the vehicle; and[(2)] keep on the business premises of the dealer, until the third anniversary of the date the report on the motor vehicle is submitted to the department, a record of the vehicle, its ownership, and its condition as dismantled, scrapped, or destroyed; and (2) [. (b) A salvage vehicle dealer that is required to submit a report under Subsection (a) shall] present to the department, on the form prescribed by the department, evidence that the motor vehicle was dismantled, scrapped, or destroyed before the 61st day after the date the dealer completed the dismantling, scrapping, or destruction of the motor vehicle. Sec. 501.097 [501.0920]. APPLICATION FOR NONREPAIRABLE VEHICLE TITLE OR SALVAGE [MOTOR] VEHICLE [CERTIFICATE OF] TITLE. (a) An application for a [salvage motor vehicle certificate of title or a] nonrepairable vehicle title or salvage [motor] vehicle [certificate of] title must: (1) be made on a form prescribed by the department and accompanied by a $8 application fee [established by the department, not to exceed an amount that is sufficient, when added to other fees collected under this chapter, to recover the actual costs to the department of issuing the certificate]; [and] (2) include, in addition to any other information required by the department: (A) the name and current address of the owner; (B) a description of the motor vehicle, including the make, style of body, model year, and vehicle identification number; and (C) a statement describing whether the motor vehicle: (i) was the subject of a total loss claim paid by an insurance company under Section 501.092 or 501.093; (ii) is a self-insured motor vehicle under Section 501.094; (iii) is an export-only motor vehicle under Section 501.099; or (iv) was sold, transferred, or released to the owner or former owner of the motor vehicle or a buyer at a casual sale; and (3) include the name and address of: (A) any currently recorded lienholder, if the motor vehicle is a nonrepairable motor vehicle; or (B) any currently recorded lienholder or a new lienholder, if the motor vehicle is a salvage motor vehicle [description of the damage to the vehicle;[(D) the estimated cost of repairs to the vehicle, including parts and labor; and[(E) the predamaged actual cash value of the vehicle]. (b) On receipt of a complete application, the properly assigned title or manufacturer's certificate of origin and the [prescribed] application fee, the department shall, before the sixth business day after the date the department receives the application, issue the applicant the appropriate [a salvage motor vehicle certificate of] title for the [or a nonrepairable] motor vehicle [certificate of title, as appropriate]. (c) A nonrepairable [motor] vehicle [certificate of] title must state on its face that[, except as provided by Sections 501.0925 and 501.0927,] the motor vehicle: (1) may not: (A) be repaired, rebuilt, or reconstructed; (B) be issued a regular certificate of title or registered in this state; (C) be operated on a public highway, in addition to any other requirement of law; and (2) may only be used as a source for used parts or scrap metal. (d) The fee collected under Subsection (a)(1) shall be credited to the state highway fund to defray the costs of administering this subchapter and the costs to the department for issuing the title. Sec. 501.098 [501.0921]. RIGHTS [POSSESSION AND OPERATION] OF HOLDER OF NONREPAIRABLE VEHICLE TITLE OR SALVAGE [MOTOR] VEHICLE TITLE. (a) A person who holds a nonrepairable vehicle title for a motor vehicle: (1) is entitled to possess, transport, dismantle, scrap, destroy, record a lien as provided for in Section 501.097(a)(3)(A), and sell, transfer, or release ownership of the motor vehicle or a used part from the motor vehicle; (2) may not: (A) operate or permit the operation of the motor vehicle on a public highway, in addition to any other requirement of law; (B) repair, rebuild, or reconstruct the motor vehicle; or (C) register the motor vehicle. (b) A person who holds a nonrepairable certificate of title issued prior to September 1, 2003: (1) is entitled to: (A) repair, rebuild, or reconstruct the motor vehicle; (B) possess, transport, dismantle, scrap, or destroy the motor vehicle; and (C) sell, transfer, or release ownership of the vehicle or a used part from the motor vehicle; and (2) may not: (A) operate or permit the operation of the motor vehicle on a public highway, in addition to any other requirement of law; or (B) register the motor vehicle. (c) A person who holds a salvage [motor] vehicle [certificate of] title for a motor vehicle: (1) is entitled to possess [the vehicle, record a lien on the vehicle], transport, dismantle, scrap, destroy, repair, rebuild, reconstruct, record a lien on [the vehicle], and sell, transfer, or release ownership of the motor vehicle or a used part from the motor vehicle; and [.] (2) [(b) A vehicle for which a salvage motor vehicle certificate of title is the most current title] may not operate or permit the operation of the motor vehicle [be operated] on a public highway, in addition to any other requirement of law. Sec. 501.099. SALE OF EXPORT-ONLY MOTOR VEHICLES. (a) This section applies to a nonrepairable motor vehicle or a salvage motor vehicle that is offered for sale in this state to a person who resides in a jurisdiction outside the United States. (b) A person may purchase a nonrepairable motor vehicle or a salvage motor vehicle only if: (1) the person purchases the motor vehicle from a licensed salvage vehicle dealer or a governmental entity; (2) the motor vehicle has been issued a nonrepairable vehicle title or a salvage vehicle title; and (3) the purchaser certifies to the seller on a form provided by the department that the purchaser will: (A) remove the motor vehicle from the United States; and (B) not return the motor vehicle to any state of the United States as a motor vehicle titled or registered under its manufacturer's vehicle identification number. (c) A salvage vehicle dealer or a governmental entity that sells a nonrepairable motor vehicle or a salvage motor vehicle to a person who is not a resident of the United States shall, before the sale of the motor vehicle, obtain a copy, photocopy, or other accurate reproduction of a valid identification card, identification certificate, or an equivalent document issued to the purchaser by the appropriate authority of the jurisdiction in which the purchaser resides that bears a photograph of the purchaser and is capable of being verified using identification standards adopted by the United States or the international community. (d) The department by rule shall establish a list of identification documents that are valid under Subsection (c) and provide a copy of the list to each holder of a salvage vehicle dealer license and to each appropriate governmental entity. (e) A salvage vehicle dealer or a governmental entity that sells a nonrepairable motor vehicle or a salvage motor vehicle to a person who is not a resident of the United States shall: (1) stamp on the face of the title so as not to obscure any name, date, or mileage statement on the title the words "FOR EXPORT ONLY" in capital letters that are black; and (2) stamp in each unused reassignment space on the back of the title the words "FOR EXPORT ONLY" and print the number of the dealer's salvage vehicle license or the name of the governmental entity, as applicable. (f) The words "FOR EXPORT ONLY" required by Subsection (e) must be at least two inches wide and clearly legible. (g) A salvage vehicle dealer or governmental entity who sells a nonrepairable motor vehicle or a salvage motor vehicle under this section to a person who is not a resident of the United States shall keep on the business premises of the dealer or entity until the third anniversary of the date of the sale: (1) a copy of each document related to the sale of the vehicle; and (2) a list of all vehicles sold under this section that contains: (A) the date of the sale; (B) the name of the purchaser; (C) the name of the country that issued the identification document provided by the purchaser, as shown on the document; and (D) the vehicle identification number. (h) This section does not prevent a person from exporting or importing a used part obtained from an export-only motor vehicle. Sec. 501.100 [501.0922]. APPLICATION FOR REGULAR CERTIFICATE OF TITLE FOR SALVAGE [MOTOR] VEHICLE. (a) A vehicle for which a nonrepairable certificate of title issued prior to September 1, 2003 or a salvage [motor] vehicle [certificate of] title has been issued may be issued a regular certificate of title [only] after the motor vehicle has been repaired, rebuilt, or reconstructed by a person described by Section 501.104(a) [application] and, in addition to any other requirement of law, only if the application is accompanied by a separate form that: (1) describes each major component part used to repair the motor vehicle; and (2) shows the identification number required by federal law to be affixed to or inscribed on the part[; and[(2) is accompanied by a written statement signed by a specially trained commissioned officer of the Department of Public Safety certifying to the department that:[(A) the vehicle identification numbers and parts identification numbers are accurate;[(B) the applicant has proof that the applicant owns the parts used to repair the vehicle; and[(C) the vehicle may be safely operated and complies with all applicable motor vehicle safety standards of this state]. (b) [The Department of Public Safety may impose a fee, in an amount not to exceed the lesser of $200 or the actual cost to that department, for conducting an inspection and providing the written statement required by Subsection (a).[Sec. 501.0923. ISSUANCE OF CERTIFICATE OF TITLE FOR REBUILT SALVAGE MOTOR VEHICLE. (a)] On receipt of a complete application under this section [Section 501.0922,] accompanied by the $13 [peace officer's statement and the appropriate] fee for the certificate of title, the department shall issue the applicant a regular certificate of title for the motor vehicle. (c) [(b)] A regular certificate of title issued under this section must: (1) [bear on its face the words "REBUILT SALVAGE"; and[(2)] describe or disclose the motor vehicle's former condition in a manner reasonably understandable to a potential purchaser of the motor vehicle; and (2) bear on its face the words "REBUILT SALVAGE" in capital letters that: (A) are red; (B) are centered on and occupy at least 15 percent of the face of the certificate of title; and (C) do not prevent any other words on the title from being read or copied. (d) In addition to the fee described by Subsection (b), the applicant shall pay a $65 rebuilder fee. (e) On or after the 31st day after the date the department receives a rebuilder fee under Subsection (d), the department shall deposit $50 of the fee to the credit of the state highway fund to be used only by the Department of Public Safety to enforce this chapter and $15 to the credit of the general revenue fund. (f) The department may not issue a regular certificate of title for a motor vehicle based on a: (1) nonrepairable vehicle title or comparable out-of-state ownership document; (2) receipt issued under Section 501.096(b); or (3) certificate of authority. Sec. 501.101 [501.0924]. ISSUANCE OF [CERTIFICATE OF] TITLE TO MOTOR VEHICLE [CERTAIN VEHICLES] BROUGHT INTO STATE. (a) This section applies only to [On proper application by the owner of] a motor vehicle brought into this state from another state or jurisdiction that has on any certificate of title or comparable out-of-state ownership document issued by the other state or jurisdiction: (1) a "rebuilt," "salvage," ["nonrepairable,"] or similar [analogous] notation; or (2) a "nonrepairable," "dismantle only," "parts only," "junked," "scrapped," or similar notation. (b) On receipt of a complete application from the owner of the motor vehicle, the department shall issue the applicant the appropriate [a] certificate of title [or other appropriate document] for the motor vehicle. (c) [(b)] A certificate of title [or other appropriate document] issued under this section must show on its face: (1) the date of issuance; (2) the name and address of the owner; (3) any registration number assigned to the motor vehicle; and (4) a description of the motor vehicle or other [as determined by the department; and[(5) any] notation the department considers necessary or appropriate. Sec. 501.102 [501.0926]. OFFENSES [OFFENSE]. (a) A [Except as provided by Section 501.0927, a] person commits an offense if the person: (1) applies to the department for a regular certificate of title for a motor vehicle; and (2) knows or reasonably should know that: (A) the vehicle is a nonrepairable motor vehicle that has been repaired, rebuilt, or reconstructed; (B) the vehicle identification number assigned to the motor vehicle belongs to a nonrepairable motor vehicle that has been repaired, rebuilt, or reconstructed; (C) the title issued to the motor vehicle belongs to a nonrepairable motor vehicle that has been repaired, rebuilt, or reconstructed; (D) the vehicle identification number assigned to the motor vehicle belongs to an export-only motor vehicle; (E) the motor vehicle is an export-only motor vehicle; or (F) the motor vehicle is a nonrepairable motor vehicle or salvage motor vehicle for which a nonrepairable vehicle title, salvage vehicle title, or comparable ownership document issued by another state or jurisdiction has not been issued. (b) A person commits an offense if the person knowingly sells, transfers, or releases a salvage motor vehicle in violation of this subchapter. (c) A person commits an offense if the person knowingly fails or refuses to surrender a regular certificate of title after the person: (1) receives a notice from an insurance company that the motor vehicle is a nonrepairable or salvage motor vehicle; or (2) knows the vehicle has become a nonrepairable motor vehicle or salvage motor vehicle under Section 501.094. (d) Except as provided by Subsection (e), an offense under this section is a Class C misdemeanor. (e) If it is shown on the trial of an offense under this section that the defendant has been previously convicted of: (1) one offense under this section, the offense is a Class B misdemeanor; or (2) two or more offenses under this section, the offense is a state jail felony. Sec. 501.103 [501.0928]. COLOR OF NONREPAIRABLE VEHICLE TITLE OR [DEPARTMENT TO PRINT] SALVAGE [AND NONREPAIRABLE MOTOR] VEHICLE [CERTIFICATES OF] TITLE. (a) The department shall print a nonrepairable vehicle title: (1) in a color that distinguishes it from a regular certificate of title or salvage vehicle title; and (2) so that it clearly shows that it is the negotiable ownership document for a nonrepairable motor vehicle. (b) A nonrepairable vehicle title must state on its face that the motor vehicle: (1) may not be: (A) issued a regular certificate of title; (B) registered in this state; or (C) repaired, rebuilt, or reconstructed; and (2) may be used only as a source for used parts or scrap metal. (c) The department shall print a salvage [motor] vehicle [certificates of] title: (A) [and nonrepairable motor vehicle certificates of title] in a color that distinguishes it [them] from a regular certificate of title or nonrepairable vehicle [certificates of] title; and (B) so that each document clearly shows that it is the ownership document for a [late model] salvage motor vehicle [or a nonrepairable motor vehicle]. (d) [(b) A nonrepairable motor vehicle certificate of title for a vehicle that is nonrepairable because of damage caused exclusively by flood must bear an appropriate notation on its face.[(c)] A salvage [motor] vehicle [certificate of] title for a vehicle that is a salvage motor vehicle because of damage caused exclusively by flood must bear a [an appropriate] notation on its face that the department considers appropriate. If the title for a motor vehicle reflects the notation required by this subsection, the owner may sell, transfer, or release the motor vehicle only as provided by this subchapter. (e) The department may provide a stamp to a person who is a licensed salvage vehicle dealer under Chapter 2302, Occupations Code, to mark the face of a title under this subchapter. The department shall provide the stamp to the person for a fee in the amount determined by the department to be necessary for the department to recover the cost of providing the stamp. Sec. 501.104 [501.0929]. REBUILDER TO POSSESS [CERTIFICATE OF] TITLE OR OTHER DOCUMENTATION. (a) This section applies only to: (1) a rebuilder licensed as a salvage vehicle dealer; (2) a person engaged in the business of a rebuilder, regardless of whether the person is licensed to engage in that business; or (3) a person engaged in the casual repair, rebuilding, or reconstruction of fewer than three motor vehicles in the same 12-month period. (b) A person described by Subsection (a) [rebuilder] must possess: (1) a regular certificate of title, [a salvage motor vehicle certificate of title, a] nonrepairable vehicle title, salvage [motor] vehicle [certificate of] title, or [a] comparable out-of-state ownership document [issued by another state or jurisdiction] for any motor vehicle that is: (A) owned by the person; (B) [(1)] in the person's [rebuilder's] inventory; and (C) [(2)] being offered for resale; or (2) a contract entered into with the owner, a work order, or another document that shows the authority for the person to possess any motor vehicle that is: (A) owned by another person; (B) on the person's business or casual premises; and (C) being repaired, rebuilt, or reconstructed for the other person. [(b) A person who rebuilds a late model salvage motor vehicle for which the department has issued a salvage motor vehicle certificate of title, or who assembles a late model salvage motor vehicle from component parts, may apply to the department for a certificate of title for the vehicle. A certificate of title issued by the department under this subsection must bear the words "REBUILT SALVAGE."] Sec. 501.105. RETENTION OF RECORDS RELATING TO CERTAIN CASUAL SALES. Each licensed salvage vehicle dealer or insurance company that sells a nonrepairable motor vehicle or a salvage motor vehicle at a casual sale shall keep on the business premises of the dealer or the insurance company a list of all casual sales made during the preceding 36-month period that contains: (1) the date of the sale; (2) the name of the purchaser; (3) the name of the jurisdiction that issued the identification document provided by the purchaser, as shown on the document; and (4) the vehicle identification number. Sec. 501.106 [501.0930]. ENFORCEMENT OF SUBCHAPTER. (a) This subchapter shall be [exclusively] enforced by the department and [or] any other governmental or law enforcement entity, including the Department of Public Safety, and the [agency or its] personnel of the entity[, except] as provided by this subchapter. (b) The department, [or] an agent, officer, or employee of the department, or another person enforcing this subchapter is not liable to a person damaged or injured by an act or omission relating to the issuance of a regular certificate of title, [salvage motor vehicle certificate of title, or] nonrepairable [motor] vehicle [certificate of] title, or salvage vehicle title under this subchapter. Sec. 501.107 [501.0931]. APPLICABILITY OF SUBCHAPTER TO RECYCLER. (a) This subchapter does not apply to[, and does not preclude or prohibit] a sale to, purchase by, or other transaction by or with, a metal recycler [person described by Subsection (g), Article 6687-2b, Revised Statutes,] except as provided by Subsections (b) and (c). (b) A metal recycler [person described by Subsection (g), Article 6687-2b, Revised Statutes,] shall submit to the department the properly assigned manufacturer's certificate of origin, regular certificate of title, nonrepairable vehicle title, salvage vehicle title, or comparable out-of-state ownership [equivalent] document that the person receives in conjunction with the purchase of a motor vehicle not later than the 60th day after the date the metal recycler [person] receives the [certificate of] title or out-of-state ownership [equivalent] document. (c) This subchapter applies to a transaction with a metal recycler [person described by Subsection (g), Article 6687-2b, Revised Statutes,] in which a motor vehicle: (1) is sold or delivered to the metal recycler [person] for the purpose of reuse or resale as a motor vehicle or as a source of used [motor vehicle] parts; and (2) [if the motor vehicle] is [so] used for that purpose. [(d) This subchapter does not:[(1) prohibit the owner of a late model salvage motor vehicle or a nonrepairable motor vehicle from selling the vehicle to any person, if the vehicle is so classified solely because of water damage caused by a flood; or[(2) limit the ability or authority of an insurance company to adjust or settle a claim for loss on a motor vehicle.] SECTION 17.03. Section 2302.001, Occupations Code, is amended to read as follows: Sec. 2302.001. DEFINITIONS. In this chapter: (1) ["Actual cash value" has the meaning assigned by Section 501.0911, Transportation Code.[(2)] "Casual sale," "damage," "insurance company," "major component part," "metal recycler," "motor vehicle," "nonrepairable motor vehicle," "nonrepairable vehicle title," "out-of-state buyer," "salvage motor vehicle," "salvage vehicle title," "salvage vehicle dealer," and "used part" have [has] the meanings [meaning] assigned by Section 501.091 [501.0911], Transportation Code. (2) [(3)] "Commission" means the Texas Transportation Commission. (3) [(4)] "Department" means the Texas Department of Transportation. (4) [(5)] "Federal safety certificate" means the label or tag required under 49 U.S.C. Section 30115 that certifies that a motor vehicle or equipment complies with applicable federal motor vehicle safety standards. (5) [(6) "Late model motor vehicle" has the meaning assigned by Section 501.0911, Transportation Code.[(7) "Major component part" has the meaning assigned by Section 501.0911, Transportation Code.[(8) "Motor vehicle" has the meaning assigned by Section 541.201, Transportation Code.[(9) "Nonrepairable motor vehicle certificate of title" has the meaning assigned by Section 501.0911, Transportation Code.[(10) "Out-of-state buyer" has the meaning assigned by Section 501.0911, Transportation Code.[(11) "Person" means an individual, partnership, corporation, trust, association, or other private legal entity.[(12) "Salvage motor vehicle certificate of title" has the meaning assigned by Section 501.0911, Transportation Code.[(13) "Salvage part" means a major component part of a salvage motor vehicle that is serviceable to the extent that it can be reused.[(14)] "Salvage pool operator" means a person who engages in the business of selling nonrepairable motor vehicles or salvage motor vehicles at auction, including wholesale auction, or otherwise. (6) [(15)] "Salvage vehicle agent" means a person who acquires, sells, or otherwise deals [employed by a salvage vehicle dealer to acquire, sell, or deal] in nonrepairable or salvage motor vehicles or used [salvage] parts in this state as directed by the salvage vehicle dealer under whose license the person operates. The term does not include a person who: (A) is a licensed salvage vehicle dealer; (B) is a partner, owner, or officer of a business entity that holds a salvage vehicle dealer license; (C) is an employee of a licensed salvage vehicle dealer; or (D) only transports salvage motor vehicles for a licensed salvage vehicle dealer. [(16) "Salvage vehicle dealer" means a person licensed under this chapter who engages in the business of acquiring, selling, dismantling, repairing, or dealing in salvage motor vehicles or vehicle parts of a type required to be covered by a salvage motor vehicle certificate of title or nonrepairable motor vehicle certificate of title.] SECTION 17.04. Subchapter A, Chapter 2302, Occupations Code, is amended by adding Section 2302.0015 to read as follows: Sec. 2302.0015. CONSENT TO ENTRY AND INSPECTION. (a) A person consents to an entry or inspection described by Subsection (b) by: (1) accepting a license under this chapter; or (2) engaging in a business or activity regulated under this chapter. (b) For the purpose of enforcing or administering this chapter or Chapter 501 or 502, Transportation Code, a member of the commission, an employee or agent of the commission or department, a member of the Public Safety Commission, an officer of the Department of Public Safety, or a peace officer may at a reasonable time: (1) enter the premises of a business regulated under one of those chapters; and (2) inspect or copy any document, record, vehicle, part, or other item regulated under one of those chapters. (c) A person described by Subsection (a): (1) may not refuse or interfere with an entry or inspection under this section; and (2) shall cooperate fully with a person conducting an inspection under this section to assist in the recovery of stolen motor vehicles and parts and to prevent the sale or transfer of stolen motor vehicles and parts. (d) An entry or inspection occurs at a reasonable time for purposes of Subsection (b) if the entry or inspection occurs: (1) during normal business hours of the person or activity regulated under this chapter; or (2) while an activity regulated under this chapter is occurring on the premises. SECTION 17.05. Sections 2302.005, 2302.006, 2302.007, 2302.051, 2302.052, and 2302.101, Occupations Code, are amended to read as follows: Sec. 2302.005. APPLICABILITY OF CERTAIN MUNICIPAL ORDINANCES, LICENSES, AND PERMITS. This chapter [Subchapters B-E]: (1) is [are] in addition to any municipal ordinance relating to the regulation of a person who deals in nonrepairable or salvage motor vehicles or used parts; and (2) does [do] not prohibit the enforcement of a requirement of a municipal license or permit that is related to an activity regulated under this chapter [those subchapters]. Sec. 2302.006. APPLICATION OF CHAPTER [SUBCHAPTERS B-E] TO METAL RECYCLERS. (a) Except as provided by Subsections [Subsection] (b) and (c), this chapter does [Subchapters B-E do] not apply to a transaction in which a metal recycler is a party. (b) This chapter applies to [, other than] a transaction in which a motor vehicle: (1) is sold, transferred, released, or delivered to a [the] metal recycler for the purpose of reuse or resale as a motor vehicle or as a source of used [motor vehicle] parts; and (2) is used for that purpose. (c) Sections 2302.0015 and [(b) Section] 2302.205 apply [applies] to a metal recycler. [(c) Subchapter G does not apply to a sale or purchase by a metal recycler.] Sec. 2302.007. APPLICATION OF CHAPTER [SUBCHAPTERS B-E] TO INSURANCE COMPANIES. This chapter does [Subchapters B-E do] not apply to an insurance company [authorized to engage in the business of insurance in this state]. Sec. 2302.051. RULES AND ENFORCEMENT POWERS. The commission shall adopt rules as necessary to administer this chapter [subchapter and Subchapters A and C-E] and may take other action as necessary to enforce this chapter [those subchapters]. Sec. 2302.052. DUTY TO SET FEES. The commission shall set application fees, license fees, renewal fees, and other fees as required to implement this chapter [Subchapters C-E]. The commission shall set the fees in amounts reasonable and necessary to implement and enforce this chapter [those subchapters]. Sec. 2302.101. LICENSE REQUIRED FOR SALVAGE VEHICLE DEALER. [(a) In this section, "automobile recycler" has the meaning assigned by Section 501.0911, Transportation Code.[(b)] Unless a person holds a salvage vehicle dealer license issued under this chapter, the person may not: (1) act as a salvage vehicle dealer or rebuilder [an automobile recycler]; or (2) store or display a motor vehicle as an agent or escrow agent of an insurance company. SECTION 17.06. Section 2302.107(d), Occupations Code, is amended to read as follows: (d) A salvage vehicle agent may acquire, sell, or otherwise deal in [late model salvage motor vehicles], nonrepairable or salvage motor vehicles or used [, or salvage] parts as directed by the authorizing dealer. SECTION 17.07. Sections 2302.201, 2302.202, 2302.204, 2302.205, 2302.251, 2302.302, 2302.351, and 2302.353, Occupations Code, are amended to read as follows: Sec. 2302.201. DUTIES ON ACQUISITION OF SALVAGE MOTOR VEHICLE. (a) A salvage vehicle dealer who acquires ownership of a salvage motor vehicle from an owner must receive from the owner a properly [an] assigned [certificate of] title. (b) The [If the assigned certificate of title is not a salvage motor vehicle certificate of title, a nonrepairable motor vehicle certificate of title, or a comparable ownership document issued by another state or jurisdiction, the] dealer shall comply with Subchapter E, Chapter 501 [Section 501.0916(b)], Transportation Code. Sec. 2302.202. RECORDS OF PURCHASES. A salvage vehicle dealer [license holder] shall maintain a record of each salvage motor vehicle and each used [salvage] part purchased or sold by the dealer [license holder]. Sec. 2302.204. CASUAL SALES. This chapter does [This subchapter and Subchapters B-D do] not apply to a person who purchases fewer than three [a] nonrepairable motor vehicles [vehicle] or salvage motor vehicles [vehicle] from a salvage vehicle dealer, an insurance company or salvage pool operator in a casual sale at auction, except that: (1) the commission shall adopt rules as necessary to regulate casual sales by salvage vehicle dealers, insurance companies, or salvage pool operators and to enforce this section; and (2) a salvage vehicle dealer, insurance company, or salvage pool operator who sells a motor vehicle in a casual sale shall comply with those rules and Subchapter E, Chapter 501, Transportation Code. Sec. 2302.205. DUTY OF METAL RECYCLER. A metal recycler who purchases a motor vehicle shall submit a regular certificate of title or a nonrepairable or salvage vehicle [, not later than the 60th day after the date the recycler receives the certificate of] title or comparable out-of-state ownership [equivalent document in conjunction with the purchase, submit the certificate or] document to the department and comply with Subchapter E, Chapter 501, Transportation Code. Sec. 2302.251. DEFINITIONS. In this subchapter: (1) "Component part" means a major component part as defined in Section 501.091, Transportation Code, or a minor component part [:[(A) a front-end assembly or tail section;[(B) the cab of a light or heavy truck;[(C) the bed of a one-ton or lighter truck; or[(D) an interior component part, a special accessory part, or a motor vehicle part that displays or should display one or more of the following:[(i) a federal safety certificate;[(ii) a motor number;[(iii) a serial number;[(iv) a manufacturer's permanent vehicle identification number; or[(v) a derivative of a vehicle identification number]. (2) ["Front-end assembly" means a motor vehicle hood, right or left front fender, grill, bumper, radiator, or radiator support, if two or more of those parts are assembled together as one unit.[(3)] "Interior component part" means a [the front or rear] seat or [the] radio of a motor vehicle. (3) "Minor component part" means an interior component part, a special accessory part, or a motor vehicle part that displays or should display one or more of the following: (A) a federal safety certificate; (B) a motor number; (C) a serial number or a derivative; or (D) a manufacturer's permanent vehicle identification number or a derivative. (4) "Special accessory part" means a tire, wheel, tailgate, or removable glass top of a motor vehicle. [(5) "Tail section" means a motor vehicle roof, floor pan, right or left rear quarter panel, deck lid, or rear bumper, if two or more of those parts are assembled together as one unit.] Sec. 2302.302. LIMITS ON OPERATION OF HEAVY MACHINERY. (a) A salvage vehicle dealer may not operate heavy machinery in a motor vehicle salvage yard between the hours of 7 p.m. of one day and 7 a.m. of the following day. (b) This section does not apply to conduct necessary to a sale or purchase by the dealer. Sec. 2302.351. INJUNCTIONS. (a) The prosecutor in the county where a motor vehicle salvage yard is located or the city attorney in the municipality where the salvage yard is located may bring suit to enjoin for a period of less than one year a violation of this chapter [Subchapter G]. (b) If a salvage vehicle dealer, [or] an employee of the dealer acting in the course of employment, or a salvage vehicle agent operating under the dealer's license is convicted of more than one offense under Section 2302.353(a) [2302.353(a)(2) or (b)], the district attorney for a [the] county in which the dealer's salvage business is located may bring an action in that county to enjoin the dealer's business operations for a period of at least one year. (c) An action under Subsection (b) must be brought in the name of the state. If judgment is in favor of the state, the court shall: (1) enjoin the dealer from maintaining or participating in the business of a salvage vehicle dealer for a definite period of at least one year or indefinitely, as determined by the court; and (2) order that the dealer's place of business be closed for the same period. Sec. 2302.353. OFFENSES. (a) A person commits an offense if the person knowingly violates: (1) a provision of this chapter other than Subchapter G [Subchapter C, D, or E or a rule adopted under Subchapter C, D, or E]; or (2) a rule adopted under a provision of this chapter other than Subchapter G [Subchapter F]. (b) [A person commits an offense if the person violates Subchapter F in conjunction with a violation of Section 31.03, Penal Code.[(c)] A person commits an offense if the person knowingly violates Subchapter G. (c) [(d) An offense under Subsection (a) is a Class A misdemeanor.[(e)] An offense under Subsection (a) [(b)] is a Class A misdemeanor unless it is shown on the trial of the offense that the defendant has been previously convicted of an offense under that subsection, in which event the offense is punishable as a state jail felony [of the third degree]. (d) [(f)] An offense under Subsection (b) [(c)] is a Class C misdemeanor. SECTION 17.08. Section 152.001(4), Tax Code, is amended to read as follows: (4) "Motor Vehicle" does not include: (A) a device moved only by human power; (B) a device used exclusively on stationary rails or tracks; (C) road-building machinery; (D) a mobile office; (E) a vehicle with respect to which the certificate of title has been surrendered in exchange for: (i) a salvage vehicle title [certificate] issued pursuant to Chapter 501, Transportation Code; (ii) a certificate of authority issued pursuant to Chapter 683, Transportation Code; (iii) a nonrepairable [motor] vehicle [certificate of] title issued pursuant to Chapter 501, Transportation Code; (iv) an ownership document issued by another state if the document is comparable to a document issued pursuant to Subparagraph (i), (ii), or (iii); or (F) a vehicle that has been declared a total loss by an insurance company pursuant to the settlement or adjustment of a claim. SECTION 17.09. The following provisions are repealed: (1) Sections 501.0913, 501.0914, 501.0918, 501.0919, 501.0925, and 501.0927, Transportation Code; and (2) Sections 2302.002, 2302.003, 2302.004, and 2302.352, Occupations Code. SECTION 17.10. This article takes effect September 1, 2003. SECTION 17.11. (a) A person who owns a nonrepairable motor vehicle for which a nonrepairable motor vehicle certificate of title was issued before the effective date of this article may repair, rebuild, or reconstruct the motor vehicle and receive a regular certificate of title for the motor vehicle. (b) On the effective date of this article, the Department of Transportation shall: (1) deem a salvage certificate issued before the effective date of this Act to be a salvage vehicle certificate of title; and (2) discontinue issuance of salvage certificates. (c) On the effective date of this article, the Texas Department of Transportation shall consider a salvage motor vehicle certificate of title issued before the effective date of this article to be a salvage vehicle title. (d) On the effective date of this article, the Texas Department of Transportation shall issue a nonrepairable vehicle title as the certificate of authority to dispose of a motor vehicle as provided for in Chapter 683, Transportation Code. SECTION 17.12. (a) The changes in law made by this article apply only to an offense committed on or after the effective date of this article. For purposes of this section, an offense was committed before the effective date of this article if any element of the offense occurred before the effective date. (b) An offense committed before the effective date of this article is covered by the law in effect when the offense was committed, and the former law is continued in effect for this purpose.
ARTICLE 18. FUNDING OF PORT SECURITY, PROJECTS, AND STUDIES
SECTION 18.01. The heading to Chapter 55, Transportation Code, is amended to read as follows:
CHAPTER 55. FUNDING OF PORT SECURITY, PROJECTS, AND STUDIES [TEXAS PORT TRANSPORTATION AND ECONOMIC DEVELOPMENT FUNDING]
SECTION 18.02. Section 55.001, Transportation Code, is amended to read as follows: Sec. 55.001. DEFINITIONS. In this chapter: (1) "Commission" means the Texas Transportation Commission. (2) "Committee" means the [Texas] Port Authority [Transportation and Economic Development] Advisory Committee. (3) [(2)] "Department" means the Texas Department of Transportation [Economic Development]. (4) [(3)] "Fund" means the port access account fund. (5) [(4)] "Port security, transportation, or facility project" means a project that is necessary or convenient for the proper operation of a port and that will improve the security, movement, and intermodal transportation of cargo or passengers in commerce and trade. SECTION 18.03. Section 55.002, Transportation Code, is amended to read as follows: Sec. 55.002. [TEXAS] PORT [TRANSPORTATION AND ECONOMIC] DEVELOPMENT FUNDING. (a) From [Using only] money in the fund, the department shall fund: (1) port security, transportation, or facility projects; and [or] (2) port studies. (b) The department may not fund a port security, transportation, or facility project unless an amount at least equal to the amount provided by the department is invested in the [a] project by a port authority or navigation district. (c) Port security, transportation, or facility projects eligible for funding under this chapter include: (1) construction or improvement of transportation facilities within the jurisdiction of a port; (2) the dredging or deepening of channels, turning basins, or harbors; (3) the construction or improvement of wharves, docks, structures, jetties, piers, storage facilities, cruise terminals, or any facilities necessary or useful in connection with port transportation or economic development; (4) the construction or improvement of facilities necessary or useful in providing port security; (5) the acquisition of container cranes or other mechanized equipment used in the movement of cargo or passengers in international commerce; (6) [(5)] the acquisition of land to be used for port purposes; (7) [(6)] the acquisition, improvement, enlargement, or extension of existing port facilities; and (8) [(7)] environmental protection projects that: (A) are required as a condition of a state, federal, or local environmental permit or other form of [state] approval; (B) are necessary for the acquisition of spoil disposal sites and improvements to existing and future spoil sites; or (C) [that] result from the undertaking of eligible projects. (d) The department, in consultation with the committee, shall review the list of projects recommended by the committee to evaluate the economic benefit of each project. The commission [department], after receiving recommendations from [in consultation with] the committee and from the department, shall approve projects or studies for funding based on its review. SECTION 18.04. Section 55.004, Transportation Code, is amended to read as follows: Sec. 55.004. AUDIT. The department may subject a project that receives money under this chapter to a final audit. [The department may adopt rules and perform other acts necessary or convenient to ensure that the final audits are conducted and that any deficiency or questioned costs noted by the audit are resolved.] SECTION 18.05. Section 55.006, Transportation Code, is amended to read as follows: Sec. 55.006. [TEXAS] PORT AUTHORITY [TRANSPORTATION AND ECONOMIC DEVELOPMENT] ADVISORY COMMITTEE. (a) The committee [Texas Port Transportation and Economic Development Advisory Committee] consists of seven members appointed by the commission. The members shall be appointed as follows: (1) one member from the Port of Houston Authority [a member of the governing body of each of the ports that are members of the Texas Ports Association or their designees]; [and] (2) three members who represent ports on the upper Texas coast; and [as a nonvoting member, the executive director or the designee of the department] (3) three members who represent ports on the lower Texas coast. (b) A committee member serves at the pleasure of the commission [The committee shall develop bylaws under which it operates. The bylaws must specify the procedure by which the presiding officer of the committee is elected. A majority of voting members constitutes a quorum sufficient to conduct meetings and business of the committee. A vote of the majority of the voting members present is sufficient for any action of the committee, unless the bylaws of the committee require a greater vote for a particular action]. (c) [The committee shall meet at the call of its presiding officer, at the request of a majority of its membership, or at times prescribed in its bylaws.] The committee must meet at least semiannually. (d) A member is not entitled to compensation for service on the committee but is entitled to reimbursement for reasonable expenses the member incurs in performing committee duties. (e) Section [Sections] 2110.002 [and 2110.008], Government Code, does [do] not apply to the committee. SECTION 18.06. Section 55.007, Transportation Code, is amended to read as follows: Sec. 55.007. DUTIES OF COMMITTEE. The committee shall: (1) prepare a port mission plan; (2) review each project eligible to be funded under this chapter and make recommendations for approval or disapproval to the department; (3) maintain trade data information that will assist ports in this state and international trade; (4) annually prepare a list of projects that have been recommended by the committee, including: (A) the recommended funding level for each project; and (B) if staged implementation of the project is appropriate, the funding requirements for each stage; and (5) advise the commission and the department on matters relating to port authorities [adopt rules for evaluating projects that may be funded under this chapter, providing criteria for the evaluation of the economic benefit of the project, measured by the potential for the proposed project to increase:[(A) cargo flow;[(B) cruise passenger movement;[(C) international commerce;[(D) port revenues; and[(E) the number of jobs for the port's local community]. SECTION 18.07. Section 55.008, Transportation Code, is amended to read as follows: Sec. 55.008. CAPITAL PROGRAM. (a) The committee shall prepare a two-year port capital program defining the goals and objectives of the committee concerning the development of port facilities and an intermodal transportation system. The port capital program must include projects or studies submitted to the committee by any [each] port [that is a member of the committee] and recommendations for: (1) the construction of transportation facilities connecting any port to another transportation mode; and (2) the efficient, cost-effective development of transportation facilities or port facilities for the purpose of: (A) enhancing international trade; (B) enhancing security; (C) promoting cargo flow; (D) [(C)] increasing cruise passenger movements; (E) [(D)] increasing port revenues; and (F) [(E)] providing economic benefits to the state. (b) The committee shall update the port capital program annually and shall submit the capital program not later than February 1 of each year to: (1) the governor; (2) the lieutenant governor; (3) the speaker of the house of representatives; and (4) the commission [department]. SECTION 18.08. Chapter 55, Transportation Code, is amended by adding Section 55.009 to read as follows: Sec. 55.009. RULES. The commission shall adopt rules to implement this chapter.
SECTION 18.09. Chapter 53, Transportation Code, is repealed.
SECTION 18.10. This article takes effect immediately if this Act 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 article takes effect September 1, 2003.
ARTICLE 19. MISCELLANEOUS PROVISIONS
SECTION 19.01. Section 201.601, Transportation Code, is amended by adding Subsections (c) and (d) to read as follows: (c) The plan must include a component that is not financially constrained and identifies transportation improvements designed to relieve congestion. In developing this component of the plan, the department shall seek opinions and assistance from officials who have local responsibility for modes of transportation listed in Subsection (a). (d) The plan shall include a component, published annually, that describes the evaluation of transportation improvements based on performance measures, such as indices measuring delay reductions or travel time improvements. The department shall consider the performance measures in selecting transportation improvements.
SECTION 19.02. Section 222.103(h), Transportation Code, is amended to read as follows: (h) Money granted by the department each [federal] fiscal year under this section may not exceed $800 million [30 percent of the obligation authority under the federal-aid highway program that is distributed to this state in that year]. This limitation does not apply to money required to be repaid.
SECTION 19.03. Subchapter E, Chapter 548, Transportation Code, is amended by adding Section 548.257 to read as follows: Sec. 548.257. LOST, STOLEN, OR DESTROYED CERTIFICATE. (a) If an inspection certificate is lost, stolen, or destroyed during the period during which the certificate is valid, the vehicle must be reinspected and any applicable fee paid before a new certificate is issued, except that the vehicle is not subject to any emissions inspection. The replacement certificate is valid for the remaining period of validity of the original certificate. (b) The department by rule shall specify the method for establishing that: (1) the certificate has been lost, stolen, or destroyed; and (2) the reinspection is within the period of validity of the lost, stolen, or destroyed certificate. (c) As part of its rules under Subsection (b), the department shall adopt measures to ensure that the reinspection procedure provided by this section is not used fraudulently to avoid any required inspection.
SECTION 19.04. Section 544.007, Transportation Code, is amended by adding Subsection (i) to read as follows: (i) An operator of a vehicle facing a traffic-control signal that does not display an indication in any of the signal heads shall stop as provided by Section 544.010 as if the intersection had a stop sign.
SECTION 19.05. Section 545.151(a), Transportation Code, is amended to read as follows: (a) An operator approaching an intersection: (1) shall stop, yield, and grant immediate use of the intersection: (A) in obedience to an official traffic-control device, including a stop sign or yield right-of-way sign; or (B) if a traffic-control signal is present but does not display an indication in any of the signal heads; and (2) after stopping, may proceed when the intersection can be safely entered without interference or collision with traffic using a different street or roadway. SECTION 19.06. (a) Section 545.066(c), Transportation Code, is amended to read as follows: (c) An offense under this section is a misdemeanor punishable by a fine of not less than $200 or more than $1,000, except that the offense is: (1) a Class A misdemeanor if the person causes serious bodily injury to another; or (2) a state jail felony if the person has been previously convicted under Subdivision (1). (b) The change in law made by Section 545.066(c), Transportation Code, as amended by this section, applies only to an offense committed on or after the effective date of this Act. For purposes of this section, an offense is committed before the effective date of this Act if any element of the offense occurs before that date. (c) An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. SECTION 19.07. Chapter 551, Transportation Code, is amended by adding Subchapter D to read as follows:
SUBCHAPTER D. NEIGHBORHOOD ELECTRIC VEHICLES AND MOTOR-ASSISTED SCOOTERS
Sec. 551.301. DEFINITIONS. In this subchapter: (1) "Neighborhood electric vehicle" means a vehicle subject to Federal Motor Vehicle Safety Standard 500 (49 C.F.R. Section 571.500). (2) "Motor assisted scooter" means a self-propelled device with: (A) at least two wheels in contact with the ground during operation; (B) a braking system capable of stopping the device under typical operating conditions; (C) a gas or electric motor not exceeding 40 cubic centimeters; (D) a deck designed to allow a person to stand or sit while operating the device; and (E) the ability to be propelled by human power alone.
Sec. 551.302. OPERATION ON ROADWAY. (a) A neighborhood electric vehicle or motor assisted scooter may be operated only on a street or highway for which the posted speed limit is 35 miles per hour or less. The vehicle may cross a road or street at an intersection where the road or street has a posted speed limit of more than 35 miles per hour. (b) A person may operate a motor assisted scooter on a path set aside for the exclusive operation of bicycles or on a sidewalk. Except as otherwise provided by this section, a provision of this title applicable to the operation of a bicycle applies to the operation of a motor assisted scooter. (c) A county or municipality may prohibit the operation of a neighborhood electric vehicle or motor assisted scooter on any street or highway if the governing body of the county or municipality determines that the prohibition is necessary in the interest of safety. (d) The department may prohibit the operation of a neighborhood electric vehicle or motor assisted scooter on a highway if it determines that the prohibition is necessary in the interest of safety. (e) A provision of this title applicable to a motor vehicle does not apply to a motor assisted scooter. SECTION 19.08. (a) Section 681.001, Transportation Code, is amended by adding Subdivision (7) to read as follows: (7) "Stand" or "standing" means to halt an occupied or unoccupied vehicle, other than temporarily while receiving or discharging passengers. (b) Section 681.011, Transportation Code, is amended by amending Subsections (a)-(c), (e), and (m) to read as follows: (a) A person commits an offense if: (1) the person stands [parks] a vehicle on which are displayed license plates issued under Section 502.253 or 502.254 or a disabled parking placard in a parking space or area designated specifically for persons with disabilities by: (A) a political subdivision; or (B) a person who owns or controls private property used for parking as to which a political subdivision has provided for the application of this section under Subsection (f); and (2) the standing [parking] of the vehicle in that parking space or area is not authorized by Section 681.006, 681.007, or 681.008. (b) A person commits an offense if the person: (1) stands [parks] a vehicle on which license plates issued under Section 502.253 or 502.254 are not displayed and a disabled parking placard is not displayed in a parking space or area designated specifically for individuals with disabilities by: (A) a political subdivision; or (B) a person who owns or controls private property used for parking as to which a political subdivision has provided for the application of this section under this Subsection (f); or (2) stands [parks] a vehicle displaying a white on red shield disabled parking placard or license plates issued under Section 502.253 in a space designated under Section 681.009(e) for the exclusive use of vehicles displaying a white on blue shield disabled parking placard. (c) A person commits an offense if the person stands [parks] a vehicle so that the vehicle blocks an architectural improvement designed to aid persons with disabilities, including an access aisle or curb ramp. (e) In a prosecution under this section, it is presumed that the registered owner of the motor vehicle is the person who left [parked] the vehicle standing at the time and place the offense occurred. (m) A person commits an offense if the person: (1) stands [parks] a vehicle on which are displayed license plates issued under Section 502.253 or a disabled parking placard in a parking space or area for which this chapter creates an exemption from payment of a fee or penalty imposed by a governmental unit; (2) does not have a disability; (3) is not transporting a person with disability; and (4) does not pay any applicable fee related to standing [parking] in the space or area imposed by a governmental unit or exceeds a limitation on the length of time for standing [parking] in the space or area. (c) The change in law made by this section applies only to an offense committed on or after the effective date of this Act. For purposes of this section, an offense is committed before the effective date of this Act if any element of the offense occurs before that date. (d) An offense committed before the effective date of this Act is governed by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. SECTION 19.09. Section 451.362, Transportation Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows: (a) Notwithstanding other provisions of this chapter and except as provided by Subsection (c), the board, by order or resolution, may issue bonds that are secured by revenue or taxes of the authority if the bonds: (1) have a term of not more than 12 months; and (2) are payable only from revenue or taxes received on or after the date of their issuance and before the end of the fiscal year following the fiscal year in which the bonds are issued. (c) In an authority in which the principal municipality has a population of 1.5 million or more, bonds may have a term of not more than five years. The bonds are payable only from revenue on taxes received on or after the date of their issuance.
[ARTICLE 19A. RESERVED]
ARTICLE 19B. FINANCIAL RESPONSIBILITY REQUIREMENTS
SECTION 19B.01. Chapter 601, Transportation Code, is amended by adding Subchapter N to read as follows:
SUBCHAPTER N. DATABASE INTERFACE SYSTEM TO VERIFY
FINANCIAL RESPONSIBILITY
Sec. 601.450. FEASIBILITY STUDY. (a) The department and the Texas Department of Insurance shall jointly conduct a study on the feasibility, affordability, and practicability of using a database interface software system for verification of whether owners of motor vehicles have established financial responsibility as required by this chapter. The study must include consideration of an affirmative finding that the system: (1) is likely to reduce the number of uninsured motorists in this state; (2) operates reliably; (3) is cost-effective; (4) will sufficiently protect the privacy of the motor vehicle owners; and (5) will sufficiently ensure the security and integrity of each database to which it is applied. (b) Before July 1, 2004, the department and the Texas Department of Insurance shall complete the study and jointly issue an order stating a determination of whether the system should be implemented. (c) If it is determined that the system should be implemented, the department may implement the system before January 1, 2005, and this section expires January 1, 2005. The department is not required to carry out the other sections of this subchapter before the determination is made. (d) If it is determined that the system should not be implemented, this subchapter expires on the date of issuance of the order stating the determination. Sec. 601.451. IMPLEMENTATION OF SYSTEM; RULES. (a) The department may establish a database interface software system for verification of whether owners of motor vehicles have established financial responsibility. (b) The department shall adopt rules to administer this subchapter. Sec. 601.452. AGENT. (a) The department, under a competitive bidding procedure, may select an agent to develop, implement, operate, and maintain the system. (b) The department and the Texas Department of Insurance shall jointly enter into a contract with the selected agent. (c) A contract under this section may not have a term of more than 10 years. Sec. 601.453. INFORMATION PROVIDED BY INSURANCE COMPANY; PRIVACY. (a) Each insurance company providing motor vehicle liability policies in this state shall allow a chosen agent sufficient access to its databases to allow the agent to carry out this subchapter, subject to the agent's contract with the department and the Texas Department of Insurance and rules adopted under this subchapter. (b) The agent may have access only to information determined by the department and the Texas Department of Insurance to be necessary to carry out this subchapter. (c) Information obtained under this subchapter is confidential. The agent may use the information only for a purpose authorized under this subchapter and may not use the information for a commercial purpose. (d) A person commits an offense if the person knowingly uses information obtained under this subchapter for any purpose not authorized under this subchapter. An offense under this subsection is a Class B misdemeanor. SECTION 19B.02. Section 502.104, Transportation Code, is amended to read as follows: Sec. 502.104. DISPOSITION OF CERTAIN SPECIAL FEES. Each Monday a county assessor-collector shall send to the department an amount equal to collections for the preceding week for: (1) each transfer fee collected under Section 502.175; and (2) each fee collected under Section 502.169(b), 502.1715, or 502.279.
SECTION 19B.03. Subchapter D, Chapter 502, Transportation Code, is amended by adding Section 502.1715 to read as follows: Sec. 502.1715. ADDITIONAL FEE FOR MOTOR VEHICLE FINANCIAL RESPONSIBILITY VERIFICATION PROGRAM. (a) In addition to other fees imposed for registration of a motor vehicle, at the time of application for registration or renewal of registration of a motor vehicle for which the owner is required to submit evidence of financial responsibility under Section 502.153, the applicant shall pay a fee of $1. (b) Prior to August 31, 2005, fees collected under this subchapter shall be deposited to the credit of the state highway fund. Subject to appropriation, the money shall be used by the Department of Public Safety to: (1) support the Department of Public Safety's reengineering of the driver's license system to provide for the issuance by the Department of Public Safety of a driver's license or personal identification certificate, not to include use of biometric information; and (2) establish and maintain a system to support the driver responsibility program under Chapter 708. (c) On or after August 31, 2005, fees collected under this section shall be deposited to the credit of the state highway fund. Subject to appropriation, the money may be used by the Department of Public Safety, the Texas Department of Insurance, and the department to carry out Subchapter N, Chapter 601. (d) The Department of Public Safety and the Texas Department of Insurance shall adopt rules and develop forms necessary to administer this section.
ARTICLE 20. GENERAL PROVISIONS; EFFECTIVE DATE
SECTION 20.01. Money required to be deposited to a specific
fund or account by a change in law made by this Act is exempt from
Section 403.095, Government Code.
SECTION 20.02. (a) The comptroller shall establish the
Texas mobility fund debt service account as a dedicated account
within the general revenue fund.
(b) Notwithstanding Sections 780.002(a) and (b), Health and
Safety Code, as added by this Act, of the money allocated to the
undedicated portion of the general revenue fund by Section
780.002(a), Health and Safety Code, as added by this Act, other than
money that may only be appropriated to the Department of Public
Safety, in fiscal year 2004 the comptroller shall deposit that
money to the credit of the Texas mobility fund debt service account,
which is subject to the provisions of Subsection (d).
(c) Notwithstanding Section 542.4031(g)(1), Transportation
Code, as added by this Act, of the money allocated to the
undedicated portion of the general revenue fund in Section
542.4031(g)(1), Transportation Code, in fiscal year 2004 the
comptroller shall deposit that money to the credit of the Texas
mobility fund debt service account, which is subject to the
provisions of Subsection (d).
(d) Funds deposited to the Texas mobility fund debt service
account pursuant to Subsections (b) and (c) may be transferred to
the Texas mobility fund upon certification by the Texas
Transportation Commission to the comptroller that a payment is due
under an obligation pursuant to Section 49-k, Article 3, Texas
Constitution. Funds in the Texas mobility fund debt service
account are not appropriated in the state fiscal year ending August
31, 2004.
(e) Notwithstanding Sections 521.058, 521.313(c),
521.3466(e), 521.427, 522.029(i), 524.051(c), 548.508, 644.153(i),
and 724.046(c), Transportation Code, as added by this Act, to the
extent that those sections allocate funds to the Texas mobility
fund, in fiscal year 2004 the comptroller shall deposit those funds
to the credit of the general revenue fund instead of to the credit
of the Texas mobility fund.
SECTION 20.03. Any new court cost created by this Act takes
effect September 1, 2003. Section 51.607, Government Code, as
added by Senate Bill 325, 78th Legislature, Regular Session, does
not apply to court costs imposed under this Act.
SECTION 20.04. Except as otherwise provided by this Act,
this Act takes effect September 1, 2003.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3588 was passed by the House on May
10, 2003, by the following vote: Yeas 137, Nays 3, 2 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3588 on May 30, 2003, 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. 3588 on June 1, 2003, by the following vote: Yeas 146,
Nays 0, 1 present, not voting; and that the House adopted S.C.R. No.
65 authorizing certain corrections in H.B. No. 3588 on June 2, 2003,
by a non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3588 was passed by the Senate, with
amendments, on May 28, 2003, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
3588 on June 1, 2003, by the following vote: Yeas 31, Nays 0; and
that the Senate adopted S.C.R. No. 65 authorizing certain
corrections in H.B. No. 3588 on June 1, 2003.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor