2004 Republican Party of Texas Victories

Yes, -May 28 - 2003. Hence, the Republican Party saw problems, and like many thousands of Texas believe it important to do away with the Trans-Texas Corridor. Look for legislative amendments to be introduced in the next session. -MD

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.
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 is
probated.

[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
amended 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

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.