CHAPTER 370. REGIONAL MOBILITY AUTHORITIES

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TRANSPORTATION CODE

TITLE 6. ROADWAYS

SUBTITLE G. TURNPIKES AND TOLL PROJECTS

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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 June 22, 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

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;

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;

(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, other than an airport that on September 1, 2005,

was served by one or more air carriers engaged in scheduled

interstate transportation, as those terms were defined by 14

C.F.R. Section 1.1 on that date;

(G) a pedestrian or bicycle facility;

(H) an intermodel 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;

(M) a transit system; and

(N) 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;

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.

(16) "Mass transit" means the transportation of passengers and

hand-carried packages or baggage of a passenger by any means of

surface, overhead, or underground transportation, other than an

aircraft or taxicab.

(17) "Service area" means the county or counties in which an

authority or transit provider has established a transit system.

(18) "Transit provider" means an entity that provides mass

transit for the public and that was created under Chapter 451,

452, 453, 454, 457, 458, or 460.

(19) "Transit system" means:

(A) property owned or held by an authority for mass transit

purposes; and

(B) facilities necessary, convenient, or useful for:

(i) the use of or access to mass transit by persons or vehicles;

(ii) the protection or environmental enhancement of mass

transit.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003. Amended by Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec.

5.07, eff. Jan. 11, 2004.

Amended by:

Acts 2005, 79th Leg., Ch.

281, Sec. 2.62, eff. June 14, 2005.

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;

(9) the assumption of debts, obligations, and liabilities of an

entity relating to a transportation project transferred to an

authority by that entity; and

(10) 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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

281, Sec. 2.63, eff. June 14, 2005.

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.

has a population of 105,000 or more has the same authority as a

county, within its municipal boundaries, 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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

281, Sec. 2.64, eff. June 14, 2005.

Sec. 370.0311. CERTAIN MUNICIPALITIES. (a) This section

applies to a municipality:

(1) with a population of 5,000 or less; and

(2) in which a ferry system that is a part of the state highway

system is located.

(b) A municipality has the same authority as a county under this

chapter to create and participate in an authority.

has the same powers and duties as a county that creates or

participates in an authority under this chapter.

(d) The governing body of a municipality that creates or

participates in an authority has the same powers and duties as a

commissioners court of a county that creates or participates in

an authority under this chapter.

(e) An elected member of the governing body of a municipality

that creates or participates in an authority has the same powers

and duties as a commissioner of a county that creates or

participates in an authority under this chapter.

Added by Acts 2005, 79th Leg., Ch.

877, Sec. 5, eff. June 17, 2005.

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.

from an authority without the approval of the commission.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

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, the Texas Mobility 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) or a transit system under Section 370.351.

(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.

(o) Except as provided in Subchapter J, an authority may not

provide mass transit services in the service area of another

transit provider that has taxing authority and has implemented it

anywhere in the service area unless the service is provided under

a written agreement with the transit provider or under Section

370.186.

(p) Before providing public transportation or mass transit

services in the service area of any other existing transit

provider, including a transit provider operating under Chapter

458, an authority must first consult with that transit provider.

An authority shall ensure there is coordination of services

provided by the authority and an existing transit provider,

including a transit provider operating under Chapter 458. An

authority is ineligible to participate in the formula or

discretionary program under Chapter 456 unless there is no other

transit provider, including a transit provider operating under

Chapter 458, providing public transportation or mass transit

services in the service area of the authority.

(q) An authority, acting through its board, may agree with

another entity to acquire a transportation project or system from

that entity and to assume any debts, obligations, and liabilities

of the entity relating to a transportation project or system

transferred to the authority.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

281, Sec. 2.65, eff. June 14, 2005.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

(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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

(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 permanently charge a toll for use of a

ferry transferred under this section. An authority may

permanently charge a fee or toll for priority use of ferry

facilities under Section 370.193.

(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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

877, Sec. 6, eff. June 17, 2005.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

Sec. 370.039. TRANSFER OF TRANSPORTATION PROJECT OR SYSTEM. (a)

An authority may transfer any of its transportation projects or

systems to one or more governmental entities if:

(1) the authority has commitments from the governing bodies of

the governmental entities to assume jurisdiction over the

transferred projects or systems;

(2) property and contract rights in the transferred projects or

systems and bonds issued for the projects or systems are not

affected unfavorably;

(3) the transfer is not prohibited under the bond proceedings

applicable to the transferred projects or systems;

(4) adequate provision has been made for the assumption of all

debts, obligations, and liabilities of the authority relating to

the transferred projects or systems by the governmental entities

assuming jurisdiction over the transferred projects or systems;

(5) the governmental entities are authorized to assume

jurisdiction over the transferred projects or systems and to

assume the debts, obligations, and liabilities of the authority

relating to the transferred projects or systems; and

(6) the transfer has been approved by the commissioners court of

each county that is part of the authority.

(b) An authority may transfer to one or more governmental

entities any traffic estimates, revenue estimates, plans,

specifications, surveys, appraisals, and other work product

developed by the authority in determining the feasibility of the

construction, improvement, extension, or expansion of a

transportation project or system, and the authority's rights and

obligations under any related agreements, if the requirements of

Subsections (a)(1) and (6) are met.

funds, reimburse any expenditures made by an authority from its

feasibility study fund or otherwise to pay the costs of work

product transferred to the governmental entity under Subsection

(b) and any other amounts expended under related agreements

transferred to the governmental entity. The reimbursement may be

made over time, as determined by the governmental entity and the

authority.

Added by Acts 2005, 79th Leg., Ch.

281, Sec. 2.66, eff. June 14, 2005.

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.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

cannot be paid from revenue derived from owning or operating the

authority's transportation projects or from other revenue

provided by law.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

(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;

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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

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;

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) Repealed by Acts 2005, 79th Leg., Ch. 281, Sec. 2.102, eff.

June 14, 2005.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

281, Sec. 2.102, eff. June 14, 2005.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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 203, relating to the condemnation or purchase of real

property for a toll project.

(b) Repealed by Acts 2005, 79th Leg., Ch. 281, Sec. 2.101(17),

eff. June 14, 2005.

the authority to condemn a bridge connecting this state to the

United Mexican States that is owned by a county or municipality.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

281, Sec. 2.68, eff. June 14, 2005.

Acts 2005, 79th Leg., Ch.

281, Sec. 2.101(17), eff. June 14, 2005.

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.

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

(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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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).

property or yield possession is subject to forcible entry and

detainer under Chapter 24, Property Code.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

legal right to receive a percentage of one or more identified

fees related to a segment constructed by the authority.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

281, Sec. 2.69, eff. June 14, 2005.

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.

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.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21,

2003.

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.

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 p

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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