81R3866 JTS-F By: Geren H.B. No. 2334 A BILL TO BE ENTITLED AN ACT relating to the powers and duties of a regional tollway authority, including the establishment of an administrative adjudication hearing procedure; creating an offense. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 366.038, Transportation Code, is amended to read as follows: Sec. 366.038. TOLL COLLECTION. (a) An authority shall provide, for reasonable compensation, customer service and other toll collection and enforcement services for a toll project in the boundaries of the authority, regardless of whether the toll project is developed, financed, constructed, and operated under an agreement, including a comprehensive development agreement, with the authority or another entity. (b) An authority may not provide financial security for the performance of services it provides under Subsection (a) if: (1) the authority determines that providing security could restrict the amount, or increase the cost, of bonds or other debt obligations the authority may subsequently issue under this chapter; or (2) the authority is not reimbursed its cost of providing the security. SECTION 2. Section 366.178, Transportation Code, is amended by adding Subsection (j) to read as follows: (j) In addition to the other powers and duties provided by this chapter, an authority has the same powers and duties as the department under Chapter 228, a county under Chapter 284, and a regional mobility authority under Chapter 370, regarding the authority's toll collection and enforcement powers for: (1) the authority's turnpike projects; and (2) other toll projects developed, financed, constructed, or operated under an agreement, including a comprehensive development agreement, with the authority. SECTION 3. Section 366.185, Transportation Code, is amended by adding Subsection (d-2) to read as follows: (d-2) Notwithstanding Subsection (d-1), if the contract amount exceeds $50 million, the rules adopted under Subsection (d) may provide for a stipend to be offered to an unsuccessful design-build firm that submits a response to the authority's request for additional information, in an amount that: (1) may exceed $250,000; and (2) is reasonably necessary, as determined by the authority in its sole discretion, to compensate the unsuccessful firm for: (A) preliminary engineering costs associated with the development of the proposal by the firm; and (B) the value of the work product contained in the proposal, including the techniques, methods, processes, and information contained in the proposal. SECTION 4. Subchapter E, Chapter 366, Transportation Code, is amended by adding Sections 366.186 and 366.187 to read as follows: Sec. 366.186. ORDER PROHIBITING OPERATION OF MOTOR VEHICLE ON TURNPIKE PROJECT. (a) An authority by order of its executive director may prohibit the operation of a motor vehicle on a turnpike project if: (1) an operator of the vehicle has failed to pay a toll, fine, or administrative fee imposed under Section 366.178; and (2) the authority provides notice to the registered owner of the vehicle of the unpaid toll, fine, or administrative fee. (b) The notice required by Subsection (a)(2) must be mailed to the registered owner of the vehicle at least 30 days before the date the prohibition takes effect. (c) If the registered owner of the vehicle fails to pay a toll, fine, or administrative fee before the 31st day after the notice under Subsection (b) is mailed, the authority may impose a reasonable cost for expenses associated with collecting the unpaid toll, fine, and administrative fee. Sec. 366.187. VIOLATION OF ORDER; OFFENSE. (a) A person commits an offense if the person operates a motor vehicle or causes or allows the operation of a motor vehicle on a turnpike project in violation of an order issued under Section 366.186. (b) An offense under this section is a Class C misdemeanor. SECTION 5. Section 366.260, Transportation Code, is amended to read as follows: Sec. 366.260. CERTAIN CONTRACTS [AND SALES] PROHIBITED. (a) A director, agent, or employee of an authority may not, outside the person's service to that authority, otherwise[: [(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 not to exceed $1,000. SECTION 6. Section 366.303, Transportation Code, is amended by amending Subsection (d) and adding Subsections (f) and (g) to read as follows: (d) The term of an agreement under Subsections (a) through (c) [this section] may not exceed 40 years. (f) Except as provided by Subsection (g), a local governmental entity may not own, construct, maintain, or operate a turnpike project or other toll project, as that term is defined by Section 201.001, in a county that is part of an authority unless the local governmental entity and the authority enter into a written agreement specifying the terms and conditions under which the project will be undertaken. (g) Subsection (f) does not apply to a turnpike project or toll project located in a county to which an authority has transferred under Section 366.036 or leased, sold, or conveyed under Section 366.172: (1) all turnpike projects of the authority that are located in the county; and (2) all work product developed by the authority in determining the feasibility of the construction, improvement, extension, or expansion of a turnpike project to be located in the county. SECTION 7. Section 366.407(g), Transportation Code, is amended to read as follows: (g) Except as provided by this subsection, a comprehensive development agreement with a private participant that includes the collection by the private participant of tolls for the use of a toll project may be for a term not longer than 50 years from the later of the date of final acceptance of the project or the start of revenue operations by the private participant, not to exceed a total term of 52 years. The contract must contain an explicit mechanism for setting the price for the purchase by the authority [department] of the interest of the private participant in the contract and related property, including any interest in a highway or other facility designed, developed, financed, constructed, operated, or maintained under the contract. SECTION 8. Chapter 366, Transportation Code, is amended by adding Subchapter I to read as follows: SUBCHAPTER I. ADMINISTRATIVE ADJUDICATION HEARING PROCEDURE Sec. 366.451. ADOPTION OF ADMINISTRATIVE ADJUDICATION HEARING PROCEDURE. (a) The board of an authority may adopt an administrative adjudication hearing procedure for a person who is suspected of having violated an order issued under Section 366.186 on at least two separate occasions within a twelve-month period. (b) A hearing procedure adopted under Subsection (a) must: (1) establish a period of not less than 30 days from the date notice of the second violation is provided as described in Section 366.186 during which a person may: (A) pay the toll, fine, or administrative fee; or (B) request a hearing; (2) provide for appointment by the authority of one or more hearing officers to conduct administrative adjudication hearings and authorize the officers to administer oaths and issue orders compelling the attendance of witnesses and the production of documents; and (3) establish the amount and provide for the disposition of the toll, fine, and administrative fee. (c) An order issued under Subsection (b)(2) may be enforced by a justice of the peace. Sec. 366.452. NOTICE OF HEARING. (a) If a person requests a hearing under Section 366.451(b)(1)(B), the authority shall: (1) inform the person of the time and place of the hearing; and (2) notify the person that the person has the right to a hearing without delay. (b) The original or any copy of the summons or citation is a record kept in the ordinary course of business of the authority and is rebuttable proof of the facts it contains. Sec. 366.453. ADMINISTRATIVE HEARING: PRESUMPTION; EVIDENCE OF OWNERSHIP. (a) In an administrative adjudication hearing under Section 366.451, it is presumed that the registered owner of the motor vehicle that is the subject of the hearing is the person who operated or who caused or allowed the operation of the motor vehicle in violation of the order. (b) In an administrative adjudication hearing under Section 366.451, a computer record of the authority or the department of the registered vehicle owner is prima facie evidence of its contents and that the person named in the record was the registered owner of the vehicle at the time the violation occurred. (c) In an administrative adjudication hearing under Section 366.451, proof of the violation of the order may be shown by testimony of a peace officer or authority employee, video recording or surveillance, photograph, electronic recording, or any other reasonable evidence, including evidence obtained by automated enforcement technology. (d) In an administrative adjudication hearing under Section 366.451, it is a defense 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. (e) In an administrative adjudication hearing under Section 366.451, a registered owner who is the lessor of a vehicle for which a notice of nonpayment has been issued is not liable for a toll, fine, or administrative fee if, not later than the 30th day after the date the notice of nonpayment is mailed, the registered owner provides to the authority a copy of the lease agreement covering the vehicle on the date of the nonpayment. The name and address of the lessee must be clearly legible. If the lessor timely provides the required information, the lessee of the vehicle on the date of the violation is considered to be the registered owner of the vehicle for purposes of an administrative adjudication hearing under Section 366.451. The lessee is subject to prosecution for failure to pay the proper toll if the authority sends a notice of nonpayment to the lessee by first-class mail not later than the 30th day after the date of the receipt of the information from the lessor. Sec. 366.454. ATTENDANCE AT HEARING. (a) A witness of a violation of an order adopted under Section 366.186 is not required to attend the administrative adjudication hearing related to that violation. (b) The failure of the person who requested the hearing to appear at an administrative adjudication hearing under Section 366.451 is considered an admission of liability for the violation. Sec. 366.455. DECISION OF HEARING OFFICER. (a) At the conclusion of a hearing under this subchapter, the hearing officer shall issue a decision stating: (1) whether the person is liable for a violation of the order; and (2) the amount of the toll, fine, and administrative fee to be assessed against the person. (b) The hearing officer shall file the decision with the secretary of the authority. (c) Each decision of a hearing officer filed under Subsection (b) must be kept in a separate index and file. The decision may be recorded using a computer printout, microfilm, microfiche, or a similar data processing technique. Sec. 366.456. ENFORCEMENT OF DECISION. (a) An authority may enforce a decision issued under Section 366.455 by any or all of the following: (1) requesting any peace officer or other public servant authorized to do so to place a device that prohibits movement of a motor vehicle on the vehicle that is the subject of the decision; (2) imposing an additional fee if the amount specified in the decision is not paid within a specified time; and (3) requesting the department to refuse to allow the registration of the vehicle that is the subject of the decision. (b) The department may refuse to register a vehicle as requested by an authority under Subsection (a). Sec. 366.457. APPEAL OF HEARING OFFICER DECISION. (a) Except as provided by Subsection (b), a person determined by a hearing officer to be in violation of an order may appeal the decision to any justice court in the county in which the authority's main administrative office is located. (b) If applicable law either prohibits an appeal from being filed in a justice court or instead requires the appeal to be filed in a county court-at-law, the person may appeal the determination to the county court-at-law in the county in which the authority's main administrative offices are located. (c) To appeal, the person must file a petition with the court not later than the 30th day after the date the hearing officer's decision is filed with the secretary of the authority. The petition must be accompanied by payment of the costs required by law for the court. Sec. 366.458. HEARING ON APPEAL. The court in which a petition is filed shall: (1) schedule a hearing; (2) notify all parties of the date, time, and place of the hearing; and (3) conduct a trial de novo. Sec. 366.459. EFFECT OF APPEAL. Service of notice of appeal does not stay the enforcement and collection of the decision of the hearing officer unless the person who files the appeal posts a bond with an agency or entity designated by the authority to accept payment for a violation. SECTION 9. Section 552.116(a), Government Code, is amended to read as follows: (a) An audit working paper of an audit of the state auditor or the auditor of a state agency, an institution of higher education as defined by Section 61.003, Education Code, a county, a municipality, a school district, [or] a joint board operating under Section 22.074, Transportation Code, or a toll project entity as defined by Section 371.001, Transportation Code, as added by Chapter 103 (H.B. 570), Acts of the 80th Legislature, Regular Session, 2007, including any audit relating to the criminal history background check of a public school employee, is excepted from the requirements of Section 552.021. If information in an audit working paper is also maintained in another record, that other record is not excepted from the requirements of Section 552.021 by this section. SECTION 10. Section 552.116(b)(1), Government Code, is amended to read as follows: (1) "Audit" means an audit authorized or required by a statute of this state or the United States, the charter or an ordinance of a municipality, an order of the commissioners court of a county, a resolution or other action of a board of trustees of a school district, including an audit by the district relating to the criminal history background check of a public school employee, or a resolution or other action of a joint board or the governing board of a toll project entity described by Subsection (a) and includes an investigation. SECTION 11. Sections 366.2521 and 366.2522, Transportation Code, are repealed. SECTION 12. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.