Texas 2013 - 83rd Regular

Texas Senate Bill SB1018 Compare Versions

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1	1	By: Carona S.B. No. 1018
2	2	(In the Senate - Filed March 4, 2013; March 12, 2013, read
3	3	first time and referred to Committee on Transportation;
4	4	April 15, 2013, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 6, Nays 0, 1 present not
6	6	voting; April 15, 2013, sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 1018 By: Paxton
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to the agreements, costs, revenues, and finances of
13	13	regional tollway authorities; authorizing taxes, fees, and
14	14	assessments.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Subsection (d), Section 222.108, Transportation
17	17	Code, is amended to read as follows:
18	18	(d) In this section, "transportation project" has the
19	19	meaning assigned by Section 370.003 and includes a turnpike project
20	20	and a system under Section 366.003.
21	21	SECTION 2. Subsection (e), Section 222.110, Transportation
22	22	Code, is amended to read as follows:
23	23	(e) The sales and use taxes to be deposited into the tax
24	24	increment account under this section may be disbursed from the
25	25	account only to:
26	26	(1) pay for the transportation project for which the
27	27	transportation reinvestment zone was designated, and for aesthetic
28	28	improvements within the zone [projects authorized under Section
29	29	222.104], including the repayment of amounts owed under a contract
30	30	[an agreement] entered into under Section 222.106 or 222.107, as
31	31	applicable [that section]; and
32	32	(2) notwithstanding Sections 321.506 and 323.505, Tax
33	33	Code, satisfy claims of holders of tax increment bonds, notes, or
34	34	other obligations issued or incurred for a transportation project
35	35	for which the zone was designated [projects authorized under
36	36	Section 222.104].
37	37	SECTION 3. Subdivisions (8), (9), and (11), Section
38	38	366.003, Transportation Code, are amended to read as follows:
39	39	(8) "Governmental [Local governmental] entity" means
40	40	a political subdivision of the state, including a municipality or a
41	41	county, a political subdivision of a county, a group of adjoining
42	42	counties, a district organized or operating under Section 52,
43	43	Article III, or Section 59, Article XVI, Texas Constitution, the
44	44	department, another state agency, [or] a nonprofit corporation,
45	45	including a transportation corporation created under Chapter 431,
46	46	or any other public entity or instrumentality.
47	47	(9) "Revenue" means the tolls, rents, and other money
48	48	received by an authority:
49	49	(A) from the ownership or operation of a turnpike
50	50	project; or
51	51	(B) under an agreement under Section 366.302 or
52	52	366.303.
53	53	(11) "Turnpike project" means a highway of any number
54	54	of lanes, with or without grade separations, owned or operated
55	55	wholly or partly by an authority under this chapter and any
56	56	improvement, extension, or expansion to that highway, including:
57	57	(A) an improvement to relieve traffic congestion
58	58	and promote safety;
59	59	(B) a bridge, tunnel, overpass, underpass,
60	60	interchange, service road, ramp, entrance plaza, approach, or
61	61	tollhouse;
62	62	(C) an administration, storage, or other
63	63	building the authority considers necessary to operate the turnpike
64	64	project;
65	65	(D) a parking area or structure, rest stop, park,
66	66	and other improvement or amenity the authority considers necessary,
67	67	useful, or beneficial for the operation of a turnpike project;
68	68	[and]
69	69	(E) property rights, easements, and interests
70	70	the authority acquires to construct or operate the turnpike
71	71	project; and
72	72	(F) improvements in a transportation
73	73	reinvestment zone designated under Subchapter E, Chapter 222.
74	74	SECTION 4. Section 366.004, Transportation Code, is amended
75	75	to read as follows:
76	76	Sec. 366.004. [CONSTRUCTION] COSTS OF TURNPIKE DEFINED.
77	77	(a) The cost of [acquisition, construction, improvement,
78	78	extension, or expansion of] a turnpike project or system under this
79	79	chapter includes the cost of:
80	80	(1) the actual acquisition, construction,
81	81	improvement, extension, or expansion of the turnpike project or
82	82	system;
83	83	(2) the acquisition of real property, rights-of-way,
84	84	property rights, easements, and other interests in real property;
85	85	(3) machinery and equipment;
86	86	(4) interest payable before, during, and after
87	87	acquisition, construction, improvement, extension, or expansion as
88	88	provided in the bond proceedings;
89	89	(5) traffic estimates, revenue estimates, engineering
90	90	and legal services, plans, specifications, surveys, appraisals,
91	91	construction cost estimates, and other expenses necessary or
92	92	incidental to determining the feasibility of the acquisition,
93	93	construction, improvement, extension, or expansion;
94	94	(6) necessary or incidental administrative, legal,
95	95	and other expenses;
96	96	(7) compliance with laws, regulations, and
97	97	administrative rulings, including any costs associated with
98	98	necessary environmental mitigation measures;
99	99	(8) financing;
100	100	(9) the assumption of debts, obligations, and
101	101	liabilities of an entity relating to a turnpike project or system
102	102	transferred to an authority by that entity; [and]
103	103	(10) expenses related to the initial operation of the
104	104	turnpike project or system;
105	105	(11) payment obligations of an authority under a
106	106	contract or agreement authorized by this chapter in connection with
107	107	the acquisition, construction, improvement, extension, expansion,
108	108	or financing of the turnpike project or system; and
109	109	(12) any other cost and expense for the maintenance,
110	110	repair, administration, or operation of a turnpike project or
111	111	system, including all cost and expense for provision of tolling
112	112	services or financial security under Section 366.038.
113	113	(b) Costs of [attributable to] a turnpike project or system
114	114	[and] incurred before the issuance of bonds to finance the turnpike
115	115	project or system may be reimbursed from the proceeds of sale of the
116	116	bonds.
117	117	SECTION 5. Subsections (a), (g), and (k), Section 366.033,
118	118	Transportation Code, are amended to read as follows:
119	119	(a) An authority, acting through its board, without state
120	120	approval, supervision, or regulation, may:
121	121	(1) adopt rules for the regulation of its affairs and
122	122	the conduct of its business;
123	123	(2) adopt an official seal;
124	124	(3) study, evaluate, design, finance, acquire,
125	125	construct, maintain, repair, and operate turnpike projects,
126	126	individually or as one or more systems;
127	127	(4) acquire, hold, and dispose of property in the
128	128	exercise of its powers and the performance of its duties under this
129	129	chapter;
130	130	(5) enter into contracts or operating agreements with
131	131	similar authorities, other governmental entities, or agencies of
132	132	the United States, a state of the United States, the United Mexican
133	133	States, or a state of the United Mexican States;
134	134	(6) enter into contracts or agreements necessary or
135	135	incidental to its duties and powers under this chapter;
136	136	(7) cooperate and work directly with property owners
137	137	and governmental entities [agencies] and officials to support an
138	138	activity required to promote or develop a turnpike project or
139	139	system;
140	140	(8) employ and set the compensation and benefits of
141	141	administrators, consulting engineers, attorneys, accountants,
142	142	construction and financial experts, superintendents, managers,
143	143	full-time and part-time employees, agents, consultants, and such
144	144	other persons as the authority considers necessary or useful;
145	145	(9) apply for and directly or indirectly receive and
146	146	spend loans, gifts, grants, and other contributions for the
147	147	construction of a turnpike project or system, and receive and spend
148	148	contributions of money, property, labor, or other things of value
149	149	from any source, including the United States, a state of the United
150	150	States, the United Mexican States, a state of the United Mexican
151	151	States, the commission, the department, any subdivision of the
152	152	state, or any other [local] governmental or private entity, to be
153	153	used for the purposes for which the grants or contributions are
154	154	made, and enter into any agreement necessary for the grants or
155	155	contributions;
156	156	(10) install, construct, maintain, repair, renew,
157	157	relocate, and remove public utility facilities in, on, along, over,
158	158	or under a turnpike project;
159	159	(11) organize a corporation under Chapter 431 for the
160	160	promotion and development of turnpike projects and systems;
161	161	(12) adopt and enforce rules not inconsistent with
162	162	this chapter for the use of any turnpike project or system,
163	163	including:
164	164	(A) rules relating to enforcement of tolls,
165	165	fares, or other user fees;
166	166	(B) speed and weight limit rules; and
167	167	(C) traffic and other public safety rules;
168	168	(13) enter into leases, operating agreements, service
169	169	agreements, licenses, franchises, and similar agreements with
170	170	public or private parties governing the parties' use of all or any
171	171	portion of a turnpike project and the rights and obligations of the
172	172	authority with respect to a turnpike project; and
173	173	(14) do all things necessary or appropriate to carry
174	174	out the powers expressly granted by this chapter.
175	175	(g) An authority and any [local] governmental entity,
176	176	including the department, may enter into a contract under which the
177	177	authority will operate a turnpike project or system on behalf of the
178	178	[local] governmental entity. [An authority may enter into a
179	179	contract with the department under which the authority will operate
180	180	a turnpike project or system on behalf of the department.]
181	181	(k) If an authority enters into a contract or agreement to
182	182	design, finance, construct, operate, maintain, or perform any other
183	183	function for a turnpike project, system, or improvement authorized
184	184	by law on behalf of a [local] governmental entity, including the
185	185	commission, the department, a regional mobility authority, or any
186	186	other entity, the contract or agreement may provide that the
187	187	authority, in performing the function, is governed by the
188	188	applicable provisions of this chapter and the rules and procedures
189	189	adopted by the authority under this chapter, in lieu of the laws,
190	190	rules, or procedures applicable to the other party for the
191	191	performance of the same function.
192	192	SECTION 6. Section 366.034, Transportation Code, is amended
193	193	by adding Subsection (c) to read as follows:
194	194	(c) Notwithstanding Subsection (b), the board may authorize
195	195	the transfer of revenue from one or more turnpike projects or
196	196	systems to a general fund of the authority if the transfer does not
197	197	violate, and is not inconsistent with, any bond proceedings
198	198	governing the use of the revenue. An authority may use revenue or
199	199	other money in a general fund for any purpose authorized by this
200	200	chapter.
201	201	SECTION 7. Section 366.036, Transportation Code, is amended
202	202	to read as follows:
203	203	Sec. 366.036. TRANSFER OF TURNPIKE PROJECT OR SYSTEM.
204	204	(a) An authority may transfer any of its turnpike projects or
205	205	systems to one or more [local] governmental entities if:
206	206	(1) the authority has commitments from the governing
207	207	bodies of the [local] governmental entities to assume jurisdiction
208	208	over the transferred projects or systems;
209	209	(2) property and contract rights in the transferred
210	210	projects or systems and bonds issued for the projects or systems are
211	211	not affected unfavorably;
212	212	(3) the transfer is not prohibited under the bond
213	213	proceedings applicable to the transferred projects or systems;
214	214	(4) adequate provision has been made for the
215	215	assumption of all debts, obligations, and liabilities of the
216	216	authority relating to the transferred projects or systems by the
217	217	[local] governmental entities assuming jurisdiction over the
218	218	transferred projects or systems;
219	219	(5) the [local] governmental entities are authorized
220	220	to assume jurisdiction over the transferred projects or systems and
221	221	to assume the debts, obligations, and liabilities of the authority
222	222	relating to the transferred projects or systems; and
223	223	(6) the transfer has been approved by the
224	224	commissioners court of each county that is part of the authority.
225	225	(b) An authority may transfer to one or more [local]
226	226	governmental entities any traffic estimates, revenue estimates,
227	227	plans, specifications, surveys, appraisals, and other work product
228	228	developed by the authority in determining the feasibility of the
229	229	acquisition, construction, improvement, extension, or expansion of
230	230	a turnpike project or system, and the authority's rights and
231	231	obligations under any related agreements, if the requirements of
232	232	Subsections (a)(1) and (6) are met.
233	233	(c) A [local] governmental entity shall, using any lawfully
234	234	available funds, reimburse any expenditures made by an authority
235	235	from its feasibility study fund or otherwise to pay the costs of
236	236	work product transferred to the [local] governmental entity under
237	237	Subsection (b) and any other amounts expended under related
238	238	agreements transferred to the [local] governmental entity. The
239	239	reimbursement may be made over time, as determined by the [local]
240	240	governmental entity and the authority.
241	241	SECTION 8. Subsections (a), (c), and (f), Section 366.037,
242	242	Transportation Code, are amended to read as follows:
243	243	(a) In addition to the powers granted under this chapter and
244	244	without supervision or regulation by any state agency or other
245	245	[local] governmental entity, but subject to an agreement entered
246	246	into under Subsection (c), the board of an authority may by
247	247	resolution, and on making the findings set forth in this
248	248	subsection, authorize the use of surplus revenue of a turnpike
249	249	project or system for the study, design, construction, maintenance,
250	250	repair, and operation of a highway or similar facility that is not a
251	251	turnpike project if the highway or similar facility is:
252	252	(1) situated in a county in which the authority is
253	253	authorized to design, construct, and operate a turnpike project;
254	254	(2) anticipated to either:
255	255	(A) enhance the operation or revenue of an
256	256	existing, or the feasibility of a proposed, turnpike project by
257	257	bringing traffic to that turnpike project or enhancing the flow of
258	258	traffic either on that turnpike project or to or from that turnpike
259	259	project to another facility; or
260	260	(B) ameliorate the impact of an existing or
261	261	proposed turnpike project by enhancing the capability of another
262	262	facility to handle traffic traveling, or anticipated to travel, to
263	263	or from that turnpike project; and
264	264	(3) not anticipated to result in an overall reduction
265	265	of revenue of any turnpike project or system.
266	266	(c) An authority shall enter into an agreement to implement
267	267	this section with the department, the commission, or another [a
268	268	local] governmental entity[, or another political subdivision]
269	269	that owns a street, road, alley, or highway that is directly
270	270	affected by the authority's turnpike project or related facility.
271	271	(f) Except as provided by this section, an authority has the
272	272	same powers and may use the same procedures with respect to the
273	273	study, financing, design, acquisition, construction, maintenance,
274	274	repair, and operation of a highway or similar facility under this
275	275	section as are available to the authority with respect to a turnpike
276	276	project or system.
277	277	SECTION 9. Section 366.038, Transportation Code, is amended
278	278	by amending Subsection (c) and adding Subsection (c-1) to read as
279	279	follows:
280	280	(c) An authority may [not] provide financial security,
281	281	including a cash collateral account, letter of credit, surety bond,
282	282	or other credit agreement, for the performance of tolling services
283	283	the authority provides under this section, regardless of when an
284	284	agreement to provide such services was entered into, unless [if]:
285	285	(1) the authority determines that providing security
286	286	could restrict the amount, or increase the cost, of bonds or other
287	287	debt obligations the authority may subsequently issue under this
288	288	chapter; or
289	289	(2) the authority is not reimbursed its cost of
290	290	providing the security.
291	291	(c-1) Financial security provided and any related agreement
292	292	entered into by an authority under this section does not require the
293	293	approval of the attorney general under Section 366.116 or any other
294	294	law.
295	295	SECTION 10. Subsection (a), Section 366.071,
296	296	Transportation Code, is amended to read as follows:
297	297	(a) An authority may pay the expenses of studying the cost
298	298	and feasibility of a proposed turnpike project or system, the
299	299	expenses of designing and engineering a proposed turnpike project
300	300	or system, and any other expenses relating to the preparation and
301	301	issuance of bonds for a proposed turnpike project or system by:
302	302	(1) using legally available revenue derived from an
303	303	existing turnpike project or system;
304	304	(2) borrowing money and issuing bonds or entering into
305	305	a loan agreement payable out of legally available revenue
306	306	anticipated to be derived from the operation of an existing
307	307	turnpike project or system; or
308	308	(3) pledging to the payment of the bonds or loan
309	309	agreements:
310	310	(A) legally available revenue anticipated to be
311	311	derived from the operation of an existing turnpike project or
312	312	system;
313	313	(B) proceeds from the sale of other bonds; or
314	314	(C) revenue legally available to the authority
315	315	from another source.
316	316	SECTION 11. Subsection (c), Section 366.072,
317	317	Transportation Code, is amended to read as follows:
318	318	(c) Money in the feasibility study fund may be used only to
319	319	pay:
320	320	(1) the expenses of:
321	321	(A) studying the cost and feasibility of a
322	322	proposed turnpike project or system; or
323	323	(B) designing and engineering a proposed
324	324	turnpike project or system; or
325	325	(2) [and] any other expenses relating to:
326	326	(A) [(1)] the preparation and issuance of bonds
327	327	for, or the financing of:
328	328	(i) the acquisition and construction of a
329	329	proposed turnpike project or system; or
330	330	(ii) [;
331	331	[(2) the financing of] the improvement, extension, or
332	332	expansion of an existing turnpike project or system; or [and]
333	333	(B) [(3)] private participation, as authorized
334	334	by law, in:
335	335	(i) the financing of a proposed turnpike
336	336	project or system;
337	337	(ii) [,] the refinancing of an existing
338	338	turnpike project or system;[,] or
339	339	(iii) the financing of an improvement,
340	340	extension, or expansion of a turnpike project or system.
341	341	SECTION 12. The heading to Section 366.073, Transportation
342	342	Code, is amended to read as follows:
343	343	Sec. 366.073. FEASIBILITY STUDY BY MUNICIPALITY, COUNTY,
344	344	OTHER [LOCAL] GOVERNMENTAL ENTITY, OR PRIVATE GROUP.
345	345	SECTION 13. Subsection (a), Section 366.073,
346	346	Transportation Code, is amended to read as follows:
347	347	(a) One or more municipalities, counties, or [local]
348	348	governmental entities, a combination of municipalities, counties,
349	349	and [local] governmental entities, or a private group or
350	350	combination of individuals [in this state] may pay all or part of
351	351	the expenses of studying the cost and feasibility of a proposed
352	352	turnpike project or system and any other expenses relating to:
353	353	(1) the preparation and issuance of bonds for, or the
354	354	financing of:
355	355	(A) the acquisition and construction of a
356	356	proposed turnpike project or system by an authority; or
357	357	(B) [(2)] the improvement, extension, or
358	358	expansion of an authority's existing turnpike project or system; or
359	359	(2) [(3)] the use of private participation under
360	360	applicable law in connection with the acquisition, construction,
361	361	improvement, expansion, extension, maintenance, repair, or
362	362	operation of a turnpike project or system by an authority.
363	363	SECTION 14. Section 366.111, Transportation Code, is
364	364	amended by amending Subsection (a) and adding Subsection (i) to
365	365	read as follows:
366	366	(a) An authority, by adoption of a bond resolution, may
367	367	authorize the issuance of bonds to pay all or part of the cost of a
368	368	turnpike project or system, to refund any bonds previously issued
369	369	for the turnpike project or system, or to pay for all or part of the
370	370	cost of a turnpike project or system that is or will become a part of
371	371	another system.
372	372	(i) Bonds issued under this chapter shall be considered
373	373	authorized investments under Chapter 2256, Government Code, for
374	374	this state, any governmental entity, and any other public entity
375	375	proposing to invest in the bonds.
376	376	SECTION 15. Subsections (a) and (b), Section 366.113,
377	377	Transportation Code, are amended to read as follows:
378	378	(a) The principal of, interest on, and any redemption
379	379	premium on bonds issued by an authority are payable solely from:
380	380	(1) the revenue of the turnpike project or system for
381	381	which the bonds are issued, including tolls pledged to pay the
382	382	bonds;
383	383	(2) payments made under an agreement with the
384	384	commission or a [local] governmental entity as authorized
385	385	[provided] by this chapter [Subchapter G];
386	386	(3) revenue [money derived from any other source
387	387	available to the authority, other than money derived] from a
388	388	turnpike project that is not part of the same system or [money
389	389	derived] from a different system[, except to the extent] that [the
390	390	surplus revenue of a turnpike project or system] has been pledged
391	391	for that purpose under Section 366.175; [and]
392	392	(4) amounts received under a credit agreement relating
393	393	to the turnpike project or system for which the bonds are issued;
394	394	(5) revenue or other money in a general fund of an
395	395	authority;
396	396	(6) proceeds of the sale of other bonds; and
397	397	(7) revenue or other money derived from any other
398	398	source available to the authority.
399	399	(b) Bonds issued under this chapter do not constitute a debt
400	400	of the state, a governmental entity, or any of the counties of an
401	401	authority or a pledge of the faith and credit of the state, a
402	402	governmental entity, or any of the counties. Each bond must contain
403	403	on its face a statement to the effect that the state, the authority,
404	404	[and] the counties of the authority, and any other governmental
405	405	entity are not obligated to pay the bond or the interest on the bond
406	406	from a source other than the amount pledged to pay the bond and the
407	407	interest on the bond, and [neither] the faith and credit and taxing
408	408	power of neither the state, any governmental entity, or the
409	409	counties of the authority are pledged to the payment of the
410	410	principal of or interest on the bond. This subsection does not
411	411	apply to a governmental entity that has issued bonds or entered into
412	412	an agreement under Subchapter G.
413	413	SECTION 16. Subsection (a), Section 366.114,
414	414	Transportation Code, is amended to read as follows:
415	415	(a) A lien on or a pledge of revenue from a turnpike project
416	416	or system under this chapter, a lien on or a pledge of revenue from
417	417	[or on] a reserve, replacement, or other fund established in
418	418	connection with a bond issued under this chapter, or a lien on or a
419	419	pledge of revenue from a contract or agreement entered into under
420	420	this chapter:
421	421	(1) is enforceable at the time of payment for and
422	422	delivery of the bond or on the effective date of the contract or
423	423	agreement;
424	424	(2) applies to an item on hand or subsequently
425	425	received;
426	426	(3) applies without physical delivery of an item or
427	427	other act; and
428	428	(4) is enforceable against any person having any
429	429	claim, in tort, contract, or other remedy, against the applicable
430	430	authority without regard to whether the person has notice of the
431	431	lien or pledge.
432	432	SECTION 17. Subsection (a), Section 366.117,
433	433	Transportation Code, is amended to read as follows:
434	434	(a) A bank or trust company incorporated under the laws of
435	435	this state or that maintains an office in this state that acts as
436	436	depository of the proceeds of bonds or of revenue may furnish
437	437	indemnifying bonds or pledge securities that an authority requires.
438	438	SECTION 18. Section 366.118, Transportation Code, is
439	439	amended to read as follows:
440	440	Sec. 366.118. APPLICABILITY OF OTHER LAW; CONFLICTS. All
441	441	laws affecting the issuance of bonds by [local] governmental
442	442	entities, including Chapters 1201, 1202, 1204, and 1371, Government
443	443	Code, apply to bonds issued under this chapter. To the extent of a
444	444	conflict between those laws and this chapter, the provisions of
445	445	this chapter prevail.
446	446	SECTION 19. Subsection (a), Section 366.162,
447	447	Transportation Code, is amended to read as follows:
448	448	(a) An authority may construct or improve a turnpike project
449	449	on real property, including a right-of-way acquired by the
450	450	authority or provided to the authority for that purpose by the
451	451	commission, a political subdivision of this state, or any other
452	452	[local] governmental entity.
453	453	SECTION 20. Subchapter E, Chapter 366, Transportation Code,
454	454	is amended by adding Section 366.1631 to read as follows:
455	455	Sec. 366.1631. PARTICIPATION PAYMENT FOR REAL PROPERTY.
456	456	(a) As an alternative to paying for an interest in real property or
457	457	a real property right with a single fixed payment, an authority may,
458	458	with the property owner's consent, pay the owner by means of a
459	459	participation payment.
460	460	(b) A right to receive a participation payment under this
461	461	section is subordinate to any right to receive a fee as payment on
462	462	the principal of or interest on a bond that is issued for the
463	463	construction of the applicable segment.
464	464	(c) In this section, "participation payment" means an
465	465	intangible legal right to receive a percentage of one or more
466	466	identified fees related to a segment constructed by the authority.
467	467	SECTION 21. Subsection (b), Section 366.168,
468	468	Transportation Code, is amended to read as follows:
469	469	(b) At its option, an authority may negotiate for and
470	470	purchase the severed real property or any part of the severed real
471	471	property if the authority and the property owner agree on terms for
472	472	the purchase. Notwithstanding Section 272.001, Local Government
473	473	Code, an [An] authority may, by any commercially available method,
474	474	sell and dispose of severed real property that it determines is not
475	475	necessary or useful to the authority. Severed property must be
476	476	appraised before being offered for sale by an authority.
477	477	SECTION 22. Subsections (a), (b), and (c), Section 366.169,
478	478	Transportation Code, are amended to read as follows:
479	479	(a) An authority may use real property, including submerged
480	480	land, streets, alleys, and easements, owned by the state or another
481	481	[a local] governmental entity that the authority considers
482	482	necessary for the construction or operation of a turnpike project.
483	483	(b) The state or another [a local] governmental entity
484	484	having charge of public real property may consent to the use of the
485	485	property for a turnpike project.
486	486	(c) Except as provided by Section 228.201, the state or
487	487	another [a local] governmental entity may convey, grant, or lease
488	488	to an authority real property, including highways and other real
489	489	property already devoted to public use and rights or easements in
490	490	real property, that may be necessary or convenient to accomplish
491	491	the authority's purposes, including the construction or operation
492	492	of a turnpike project. A conveyance, grant, or lease under this
493	493	section may be made without advertising, court order, or other
494	494	action other than the normal action of the state or another [local]
495	495	governmental entity necessary for a conveyance, grant, or lease.
496	496	SECTION 23. Subsection (c), Section 366.170,
497	497	Transportation Code, is amended to read as follows:
498	498	(c) An authority has full easements and rights-of-way
499	499	through, across, under, and over any property owned by the state or
500	500	another [any local] governmental entity that are necessary or
501	501	convenient to construct, acquire, or efficiently operate a turnpike
502	502	project or system under this chapter. This subsection does not
503	503	affect the obligation of the authority under other state law,
504	504	including Section 373.102, to compensate or reimburse the state for
505	505	the use or acquisition of an easement or right-of-way on property
506	506	owned by or on behalf of the state. An authority's use of property
507	507	owned by or on behalf of the state is subject to any covenants,
508	508	conditions, restrictions, or limitations affecting that property.
509	509	SECTION 24. Section 366.173, Transportation Code, is
510	510	amended by amending Subsections (b), (c), and (d) and adding
511	511	Subsection (h) to read as follows:
512	512	(b) Tolls must be set so that the aggregate of tolls from an
513	513	authority's turnpike project or system, together with other revenue
514	514	of the turnpike project or system:
515	515	(1) provides revenue sufficient to pay:
516	516	(A) the cost of maintaining, repairing, and
517	517	operating the turnpike project or system; [and]
518	518	(B) the principal of and interest on the bonds
519	519	issued for the turnpike project or system as those bonds become due
520	520	and payable; and
521	521	(C) any other payment obligations of the
522	522	authority under a contract or agreement authorized under this
523	523	chapter; and
524	524	(2) creates reserves for a purpose listed under
525	525	Subdivision (1).
526	526	(c) Tolls are not subject to supervision or regulation by
527	527	any state agency or other [local] governmental entity.
528	528	(d) Tolls and other revenue derived from a turnpike project
529	529	or system for which bonds are issued, except the part necessary to
530	530	pay the cost of maintenance, repair, and operation and to provide
531	531	reserves for those costs as may be provided in the bond proceedings,
532	532	shall be set aside at regular intervals as may be provided in the
533	533	bond resolution or trust agreement in a sinking fund that is pledged
534	534	to and charged with the payment of:
535	535	(1) interest on the bonds as it becomes due;
536	536	(2) principal of the bonds as it becomes due;
537	537	(3) necessary charges of paying agents for paying
538	538	principal and interest; [and]
539	539	(4) the redemption price or the purchase price of
540	540	bonds retired by call or purchase as provided by the bond
541	541	proceedings; and
542	542	(5) any amounts due under credit agreements.
543	543	(h) Notwithstanding any other provision of this chapter, an
544	544	authority may pledge all or any part of its revenue and any other
545	545	funds available to the authority to the payment of any obligations
546	546	of the authority under a contract or agreement authorized by this
547	547	chapter.
548	548	SECTION 25. Section 366.175, Transportation Code, is
549	549	amended to read as follows:
550	550	Sec. 366.175. USE OF [SURPLUS] REVENUE. The board of an
551	551	authority may by resolution authorize the use of [surplus] revenue
552	552	of a turnpike project or system to pay the costs of another turnpike
553	553	project or system [other than a project financed under Subchapter
554	554	G]. The board may in the resolution prescribe terms for the use of
555	555	the revenue, including the pledge of the revenue, but may not take
556	556	an action under this section that violates, impairs, or is
557	557	inconsistent with a bond resolution, trust agreement, or indenture
558	558	governing the use of the [surplus] revenue.
559	559	SECTION 26. Subsection (b), Section 366.176,
560	560	Transportation Code, is amended to read as follows:
561	561	(b) An authority is exempt from payment of development fees,
562	562	utility connection fees, assessments, and service fees imposed or
563	563	assessed by a county, municipality, road and utility district,
564	564	river authority, any other [state or local] governmental entity, or
565	565	any property owners' or homeowners' association.
566	566	SECTION 27. Subsection (c), Section 366.182,
567	567	Transportation Code, is amended to read as follows:
568	568	(c) An authority may contract with any [state or local]
569	569	governmental entity for the services of peace officers of that
570	570	entity [agency].
571	571	SECTION 28. Subsections (j) and (k), Section 366.251,
572	572	Transportation Code, are amended to read as follows:
573	573	(j) The board of an authority shall select one director as
574	574	the presiding officer of the board to serve in that capacity until
575	575	the person is no longer [person's term as] a director or the board
576	576	selects another director as the presiding officer [expires]. The
577	577	board shall elect one director as assistant presiding officer. The
578	578	board shall select a secretary and treasurer, neither of whom need
579	579	be a director.
580	580	(k) If a vacancy exists on a board, the majority of
581	581	directors serving on the board is a quorum. The vote of a majority
582	582	attending a board meeting is necessary for any action taken by the
583	583	board, provided that the directors of an authority may adopt rules
584	584	requiring a vote of greater than a majority of directors attending a
585	585	board meeting to approve:
586	586	(1) transferring all or substantially all of the
587	587	authority's assets or a material portion of a turnpike project or
588	588	system;
589	589	(2) assuming another entity's debts, obligations, or
590	590	liabilities;
591	591	(3) undertaking a turnpike project that is not
592	592	expected to satisfy financial criteria within a time as provided by
593	593	a rule adopted by the board;
594	594	(4) the inclusion of a county in the authority under
595	595	Section 366.031(d);
596	596	(5) the authority's cessation of operations,
597	597	abolishment, or reconstitution as an entity different from a
598	598	regional tollway authority;
599	599	(6) removing a director; or
600	600	(7) amending a rule adopted under Subdivision (1),
601	601	(2), (3), (4), (5), or (6). [If a vacancy exists on a board, the
602	602	majority of directors serving on the board is a quorum.]
603	603	SECTION 29. Section 366.302, Transportation Code, is
604	604	amended by amending Subsections (a), (b), (c), and (d) and adding
605	605	Subsection (h) to read as follows:
606	606	(a) An authority may enter into an agreement with one or
607	607	more [a] public or private entities [entity], including a toll road
608	608	corporation, the United States, a state of the United States, the
609	609	United Mexican States, a state of the United Mexican States, or a
610	610	[local] governmental entity, [or another political subdivision,]
611	611	to permit the entity, jointly with the authority, to study the
612	612	feasibility of a turnpike project or system or to acquire, design,
613	613	finance, construct, maintain, repair, operate, extend, or expand a
614	614	turnpike project or system. An authority and a private entity
615	615	jointly may enter into an agreement with another governmental
616	616	entity to study the feasibility of a turnpike project or system or
617	617	to acquire, design, finance, construct, maintain, repair, operate,
618	618	extend, or expand a turnpike project or system.
619	619	(b) An authority has broad discretion to negotiate
620	620	provisions in a development agreement with a private entity. The
621	621	provisions may include provisions relating to:
622	622	(1) the design, financing, acquisition, construction,
623	623	maintenance, and operation of a turnpike project or system in
624	624	accordance with standards adopted by the authority; and
625	625	(2) professional and consulting services to be
626	626	rendered under standards adopted by the authority in connection
627	627	with a turnpike project or system.
628	628	(c) An authority may not incur a financial obligation on
629	629	behalf of, or otherwise guarantee the obligations of, a private
630	630	entity that acquires, constructs, maintains, or operates a turnpike
631	631	project or system.
632	632	(d) An authority or a county in an authority is not liable
633	633	for any financial or other obligation of a turnpike project or
634	634	system solely because a private entity acquires, constructs,
635	635	finances, or operates any part of a turnpike project or system.
636	636	(h) For purposes of this section, "turnpike project"
637	637	includes a toll project, as defined by Section 372.001, of another
638	638	entity regardless of whether the authority will ever own or operate
639	639	the project.
640	640	SECTION 30. Section 366.303, Transportation Code, is
641	641	amended to read as follows:
642	642	Sec. 366.303. AGREEMENTS BETWEEN AUTHORITY AND [LOCAL]
643	643	GOVERNMENTAL ENTITIES. (a) A [local] governmental entity [other
644	644	than a nonprofit corporation] may, consistent with the Texas
645	645	Constitution, issue bonds or enter into and make payments under
646	646	agreements with an authority to acquire, construct, maintain, or
647	647	operate a turnpike project or system, whether inside or outside the
648	648	geographic boundaries of the governmental entity.
649	649	(a-1) Agreements under Subsection (a) may:
650	650	(1) include agreements for the governmental entity to
651	651	pay the principal of, and interest on, bonds, notes, or other
652	652	obligations issued by the authority; and
653	653	(2) make payments under any related credit agreements.
654	654	(a-2) The governmental entity may levy and collect taxes to
655	655	pay the interest on [the] bonds issued under Subsection (a) and to
656	656	provide a sinking fund for the redemption of the bonds.
657	657	(b) In addition to the powers provided by Subsection (a), a
658	658	[local] governmental entity may, within any applicable
659	659	constitutional limitations, agree with an authority to:
660	660	(1) issue bonds or enter into and make payments under
661	661	an agreement to acquire, construct, maintain, or operate any
662	662	portion of a turnpike project or system of that authority;
663	663	(2) create:
664	664	(A) a taxing district;
665	665	(B) a transportation reinvestment zone under
666	666	Subchapter E, Chapter 222; or
667	667	(C) an entity to promote economic development;
668	668	and
669	669	(3) collect and remit to an authority taxes, fees, or
670	670	assessments collected for purposes of developing turnpike projects
671	671	or systems.
672	672	(b-1) An agreement under Subsection (b) may include a means
673	673	for a governmental entity to pledge or otherwise provide funds for a
674	674	transportation project that benefits the governmental entity to be
675	675	developed by the authority.
676	676	(c) To make payments under an agreement under Subsection
677	677	(b), to pay the interest on bonds issued under Subsection (b), or to
678	678	provide a sinking fund for the bonds or the agreement [contract], a
679	679	[local] governmental entity may:
680	680	(1) pledge revenue from any available source,
681	681	including annual appropriations;
682	682	(2) levy and collect taxes;
683	683	(3) use funds deposited in a tax increment account
684	684	established for a transportation reinvestment zone under
685	685	Subchapter E, Chapter 222; or
686	686	(4) [(3)] provide for a combination of Subdivisions
687	687	(1), [and] (2), and (3).
688	688	(d) The term of an agreement under this section may not
689	689	exceed 40 years.
690	690	(e) Any election required to permit action under this
691	691	subchapter must be held in conformity with Chapter 1251, Government
692	692	Code, or other law applicable to the [local] governmental entity.
693	693	(f) The governing body of any governmental entity issuing
694	694	bonds, notes, or other obligations or entering into agreements
695	695	under this section may exercise the authority granted to the
696	696	governing body of an issuer with regard to issuance of obligations
697	697	under Chapter 1371, Government Code, except that the prohibition in
698	698	that chapter on the repayment of an obligation with ad valorem taxes
699	699	does not apply to an issuer exercising the authority granted by this
700	700	section.
701	701	(g) An agreement under this section may contain repayment or
702	702	reimbursement obligations of an authority.
703	703	SECTION 31. Subsections (f) and (g), Section 366.407,
704	704	Transportation Code, are amended to read as follows:
705	705	(f) If an authority enters into a comprehensive development
706	706	agreement with a private participant that includes the collection
707	707	by the private participant of tolls for the use of a turnpike
708	708	project or system [toll project], the private participant shall
709	709	submit to the authority for approval:
710	710	(1) the methodology for:
711	711	(A) the setting of tolls; and
712	712	(B) increasing the amount of the tolls;
713	713	(2) a plan outlining methods the private participant
714	714	will use to collect the tolls, including:
715	715	(A) any charge to be imposed as a penalty for late
716	716	payment of a toll; and
717	717	(B) any charge to be imposed to recover the cost
718	718	of collecting a delinquent toll; and
719	719	(3) any proposed change in an approved methodology for
720	720	the setting of a toll or a plan for collecting the toll.
721	721	(g) Except as provided by this subsection, a comprehensive
722	722	development agreement with a private participant that includes the
723	723	collection by the private participant of tolls for the use of a
724	724	turnpike project or system [toll project] may be for a term not
725	725	longer than 50 years from the later of the date of final acceptance
726	726	of the project or system or the start of revenue operations by the
727	727	private participant, not to exceed a total term of 52 years. The
728	728	contract must contain an explicit mechanism for setting the price
729	729	for the purchase by the authority of the interest of the private
730	730	participant in the contract and related property, including any
731	731	interest in a highway or other facility designed, developed,
732	732	financed, constructed, operated, or maintained under the contract.
733	733	SECTION 32. Subsection (a), Section 366.409,
734	734	Transportation Code, is amended to read as follows:
735	735	(a) Payments received by an authority under a comprehensive
736	736	development agreement shall be used by the authority to finance the
737	737	acquisition, construction, maintenance, or operation of a turnpike
738	738	project or a highway.
739	739	SECTION 33. This Act takes effect September 1, 2013.
740	740	* * * * *