CHAPTER 370. REGIONAL MOBILITY AUTHORITIES
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
(C) telecommunications information services, or cable television
infrastructure or associated equipment, including fiber optic
cable, conduit, and wireless communications facilities.
(11) "Revenue" means fares, fees, rents, tolls, and other money
received by an authority from the ownership or operation of a
transportation project.
(12) "Surplus revenue" means revenue that exceeds:
(A) an authority's debt service requirements for a
transportation project, including the redemption or purchase
price of bonds subject to redemption or purchase as provided in
the applicable bond proceedings;
(B) coverage requirements of a bond indenture for a
transportation project;
(C) costs of operation and maintenance for a transportation
project;
(D) cost of repair, expansion, or improvement of a
transportation project;
(E) funds allocated for feasibility studies; and
(F) necessary reserves as determined by the authority.
(13) "System" means a transportation project or a combination of
transportation projects designated as a system by the board under
Section 370.034.
(14) "Transportation project" means:
(A) a turnpike project;
(B) a system;
(C) a passenger or freight rail facility, including:
(i) tracks;
(ii) a rail line;
(iii) switching, signaling, or other operating equipment;
(iv) a depot;
(v) a locomotive;
(vi) rolling stock;
(vii) a maintenance facility; and
(viii) other real and personal property associated with a rail
operation;
(D) a roadway with a functional classification greater than a
local road or rural minor collector;
(E) a ferry;
(F) an airport, 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;
(C) an administration, storage, or other building the authority
considers necessary for the operation of a turnpike project;
(D) a parking area or structure, rest stop, park, and other
improvement or amenity the authority considers necessary, useful,
or beneficial for the operation of a turnpike project; and
(E) a property right, easement, or interest the authority
acquires to construct or operate the turnpike project.
(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;
or
(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.
(c) A municipality that borders the United Mexican States and
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.
(c) A municipality that creates or participates 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.
(c) A county may not become part of an authority or withdraw
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.
(c) The exercise by an authority of the powers conferred by this
chapter in the acquisition, design, financing, construction,
operation, and maintenance of a transportation project or system
is:
(1) in all respects for the benefit of the people of the
counties in which an authority operates and of the people of this
state, for the increase of their commerce and prosperity, and for
the improvement of their health, living conditions, and public
safety; and
(2) an essential governmental function of the state.
(d) The operations of an authority are governmental, not
proprietary, functions.
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.
(c) An authority may, if requested by the commission, perform
any function not specified by this chapter to promote or develop
a transportation project in the authority's area of jurisdiction.
(d) An authority may sue and be sued and plead and be impleaded
in its own name.
(e) An authority may rent, lease, franchise, license, or make
portions of its properties available for use by others in
furtherance of its powers under this chapter by increasing the
feasibility or the revenue of a transportation project. If the
transportation project is a project other than a public utility
facility an authority may rent, lease, franchise or make property
available only to the extent that the renting, lease or franchise
benefits the users of the project.
(f) An authority and a governmental entity may enter into a
contract, agreement, interlocal agreement, or other similar
arrangement under which the authority may plan, design,
construct, or operate a transportation project on behalf of the
governmental entity. An authority may enter into a contract with
the department under which the authority will plan, develop,
operate, or maintain a transportation project on behalf of the
department, subject to the transportation project being in the
authority's area of jurisdiction.
(g) Payments to be made to an authority under a contract
described by Subsection (f) constitute operating expenses of the
transportation project or system that is to be operated under the
contract. The contract may extend for the number of years as
agreed to by the parties.
(h) An authority shall adopt a written drug and alcohol policy
restricting the use of controlled substances by officers and
employees of the authority, prohibiting the consumption of
alcoholic beverages by employees while on duty, and prohibiting
employees from working for the authority while under the
influence of a controlled substance or alcohol. An authority may
adopt policies regarding the testing of employees suspected of
being in violation of the authority's drug and alcohol policy.
The policy shall provide that, unless required by court order or
permitted by the person who is the subject of the testing, the
authority shall keep the results of the test confidential.
(i) An authority shall adopt written procedures governing its
procurement of goods and services that are consistent with
general laws applicable to the authority.
(j) An authority may not apply for federal highway or rail funds
without the approval of the department.
(k) An authority may not directly provide water, wastewater,
natural gas, petroleum pipeline, electric transmission, electric
distribution, telecommunications, information, or cable
television services.
(l) If an authority establishes an airport in Central Texas, the
authority may not establish the airport at a location prohibited
to the department by Section 21.069(c).
(m) If an authority receives money from the general revenue
fund, 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.
(c) If the commission agrees to the transfer under Subsection
(a), the authority shall convey the turnpike project and any real
property acquired to construct or operate the turnpike project to
the department.
(d) At the time of a conveyance under this section, the
commission shall designate the turnpike project as part of the
state highway system. After the designation, the authority has no
liability, responsibility, or duty to maintain or operate the
transferred turnpike project.
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.
(c) In computing the cost of the ferry, the commission shall:
(1) include the total amount spent by the department for the
original construction of the ferry, including the costs
associated with the preliminary engineering and design
engineering for plans, specifications, and estimates, the
acquisition of necessary rights-of-way, and actual construction
of the ferry and all necessary appurtenant facilities; and
(2) consider the anticipated future costs of expanding,
improving, maintaining, or operating the ferry to be incurred by
the authority and not by the department if the ferry is
transferred.
(d) The commission shall, at the time the ferry is transferred,
remove the ferry from the state highway system. After a transfer,
the commission has no liability, responsibility, or duty for the
maintenance or operation of the ferry.
(e) Before transferring a ferry that is a part of the state
highway system under this section, the commission shall conduct a
public hearing at which interested persons shall be allowed to
speak on the proposed transfer. Notice of the hearing must be
published in the Texas Register, one or more newspapers of
general circulation in the counties in which the ferry is
located, and a newspaper, if any, published in the counties of
the applicable authority.
(f) The commission shall adopt rules to implement this section.
The rules must include criteria and guidelines for the approval
of a transfer of a ferry.
(g) An authority shall adopt rules establishing criteria and
guidelines for approval of the transfer of a ferry under this
section.
(h) An authority may 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.
(c) A governmental entity shall, using any lawfully available
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.
(c) The use of any money of a transportation project to study
the feasibility of another transportation project or used to
repay any money used for that purpose does not constitute an
operating expense of the transportation project producing the
revenue and may be paid only from the surplus money of the
transportation project as determined by the authority.
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.
(c) Money in the feasibility study fund may be used only to pay
the expenses of studying the cost and feasibility and any other
expenses relating to:
(1) the preparation and issuance of bonds for the acquisition
and construction of a proposed transportation project;
(2) the financing of the improvement, extension, or expansion of
an existing transportation project; and
(3) private participation, as authorized by law, in the
financing of a proposed transportation project, the refinancing
of an existing transportation project or system, or the
improvement, extension, or expansion of a transportation project.
(d) Money spent under Subsection (c) for a proposed
transportation project must be reimbursed from the proceeds of
revenue bonds issued for, or other proceeds that may be used for,
the acquisition, construction, improvement, extension, expansion,
or operation of the transportation project.
(e) For a purpose described by Subsection (c), an authority may
borrow money and issue promissory notes or other interest-bearing
evidences of indebtedness payable out of its feasibility study
fund, pledging money in the fund or to be placed in the fund.
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.
(c) An authority may sell the bonds at public or private sale in
the manner and for the price it determines to be in the best
interest of the authority.
(d) The proceeds of each bond issue shall be disbursed in the
manner and under any restrictions provided in the bond
resolution.
(e) Additional bonds may be issued in the same manner to pay the
costs of a transportation project. Unless otherwise provided in
the bond resolution, the additional bonds shall be on a parity,
without preference or priority, with bonds previously issued and
payable from the revenue of the transportation project. In
addition, an authority may issue bonds for a transportation
project secured by a lien on the revenue of the transportation
project subordinate to the lien on the revenue securing other
bonds issued for the transportation project.
(f) If the proceeds of a bond issue exceed the cost of the
transportation project for which the bonds were issued, the
surplus shall be segregated from the other money of the authority
and used only for the purposes specified in the bond resolution.
(g) Bonds issued and delivered under this chapter and interest
coupons on the bonds are a security under Chapter 8, Business
& Commerce Code.
(h) Bonds issued under this chapter and income from the bonds,
including any profit made on the sale or transfer of the bonds,
are exempt from taxation in this state.
(i) Bonds issued under this chapter shall be considered
authorized investments under Chapter 2256, Government Code, for
this state, any governmental entity, and any other public entity
proposing to invest in the bonds.
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.
(c) A bond resolution authorizing interim bonds may provide that
the interim bonds recite that the bonds are issued under this
chapter. The recital is conclusive evidence of the validity and
the regularity of the bonds' issuance.
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.
(c) An authority may not incur a financial obligation that
cannot be paid from revenue derived from owning or operating the
authority's transportation projects or from other revenue
provided by law.
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.
(c) A bond indenture may:
(1) set forth the rights and remedies of the bondholders and the
trustee;
(2) restrict the individual right of action by bondholders as is
customary in trust agreements or indentures of trust securing
corporate bonds and debentures; and
(3) contain provisions the authority determines reasonable and
proper for the security of the bondholders, including covenants:
(A) establishing the authority's duties relating to:
(i) the acquisition of property;
(ii) the construction, maintenance, operation, and repair of and
insurance for a transportation project; and
(iii) custody, safeguarding, and application of money;
(B) prescribing events that constitute default;
(C) prescribing terms on which any or all of the bonds become or
may be declared due before maturity; and
(D) relating to the rights, powers, liabilities, or duties that
arise on the breach of a duty of the authority.
(d) An expense incurred in carrying out a trust agreement may be
treated as part of the cost of operating the transportation
project.
(e) In addition to all other rights by mandamus or other court
proceeding, an owner or trustee of a bond issued under this
chapter may enforce the owner's rights against an issuing
authority, the authority's employees, the authority's board, or
an agent or employee of the authority's board and is entitled to:
(1) require the authority or the board to impose and collect
tolls, fares, fees, charges, and other revenue sufficient to
carry out any agreement contained in the bond proceedings; and
(2) apply for and obtain the appointment of a receiver for the
transportation project or system.
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.
(c) On receipt of the legal opinion of the attorney general and
the record of proceedings relating to the authorization of the
bonds, the comptroller shall register the record of proceedings.
(d) After approval by the attorney general, the bonds, the bond
proceedings, and any supporting contract are valid, enforceable,
and incontestable in any court or other forum for any reason and
are binding obligations according to their terms for all
purposes.
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
(C) the commissioners court of the county agrees to the proposed
acquisition, construction, operation, maintenance, expansion, or
extension of the transportation project in that county; or
(3) a county in another state or the United Mexican States if:
(A) each governing body of a political subdivision in which the
project will be located agrees to the proposed acquisition,
construction, operation, maintenance, expansion, or extension;
(B) the project will bring significant benefits to the counties
in this state that are part of the authority;
(C) the county in the other state is adjacent to a county that
is:
(i) part of the authority constructing, operating, maintaining,
expanding, or extending the transportation project; and
(ii) has a municipality with a population of 500,000 or more;
and
(D) the governor approves the proposed construction, operation,
maintenance, expansion, or extension.
(b) 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.
(c) The authority granted under this section does not include
the authority to condemn a bridge connecting this state to the
United Mexican States that is owned by a county or municipality.
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.
(c) An authority may not file a declaration of taking before the
completion of all:
(1) environmental documentation, including a final environmental
impact statement or a record of decision, that is required by
federal or state law;
(2) public hearings and meetings, including those held in
connection with the environmental rules adopted by the authority
under Section 370.188, that are required by federal or state law;
and
(3) notifications required by the rules adopted by the authority
under Section 370.188.
(d) The declaration of taking must include:
(1) a specific reference to the legislative authority for the
condemnation;
(2) a description and plot plan of the real property to be
condemned, including the following information if applicable:
(A) the municipality in which the property is located;
(B) the street address of the property; and
(C) the lot and block number of the property;
(3) a statement of the property interest to be condemned;
(4) the name and address of each property owner that the
authority can obtain after reasonable investigation and a
description of the owner's interest in the property; and
(5) a statement that immediate possession of all or part of the
property to be condemned is necessary for the timely construction
of a transportation project.
(e) A deposit to the registry of the court of an amount equal to
the appraised value as determined by the authority of the
property to be condemned must accompany the declaration of
taking.
(f) The date on which the declaration is filed is the date of
taking for the purpose of assessing damages to which a property
owner is entitled.
(g) After a declaration of taking is filed, the case shall
proceed as any other case in eminent domain under Chapter 21,
Property Code.
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).
(c) A property owner or tenant who refuses to vacate the
property or yield possession is subject to forcible entry and
detainer under Chapter 24, Property Code.
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.
(c) In this section, "participation payment" means an intangible
legal right to receive a percentage of one or more identified
fees related to a segment constructed by the authority.
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.
(c) Except as provided by Section 228.201, this state or a local
government may convey, grant, or lease to an authority real
property, including highways and other real property devoted to
public use and rights or easements in real property, that may be
necessary or convenient to accomplish a purpose of the authority,
including the construction or operation of a transportation
project. A conveyance, grant, or lease under this section may be
made without advertising, court order, or other action other than
the normal action of this state or local government necessary for
a conveyance, grant, or lease.
(d) This section does not deprive the School Land Board of the
power to execute a lease for the development of oil, gas, and
other minerals on state-owned real property adjoining a
transportation project or in tidewater limits. A lease may
provide for directional drilling from the adjoining property or
tidewater area.
(e) This section does not affect the obligation of the authority
under another law to compensate this state for acquiring or using
property owned by or on behalf of this state. An authority's use
of property owned by or on behalf of this state is subject to any
covenants, conditions, restrictions, or limitations affecting
that property.
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.
(c) An authority has full easements and rights-of-way through,
across, under, and over any property owned by the state or any
local government that are necessary or convenient to construct,
acquire, or efficiently operate a transportation project or
system under this chapter. This subsection does not affect the
obligation of the authority under other law to compensate this
state for the use or acquisition of an easement or right-of-way
on property owned by or on behalf of this state. An authority's
use of property owned by or on behalf of this state is subject to
any covenants, conditions, restrictions, or limitations affecting
that property.
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.
(c) The authority shall use its best efforts to provide an
affected utility with plans and drawings of the project that are
sufficient to enable the utility to develop plans for, and
determine the cost of, the necessary relocation of a public
utility facility. If the authority and the affected utility enter
into an agreement after negotiations under Subsection (b), the
terms and conditions of the agreement govern the relocation of
each public utility facility covered by the agreement.
(d) If the authority and an affected utility do not enter into
an agreement under Subsection (b), the authority shall provide to
the affected utility:
(1) written notice of the authority's determination that the
public utility facility must be removed;
(2) a final plan for relocation of the public utility facility;
and
(3) reasonable terms and conditions for an agreement with the
utility for the relocation of the p