Law:Title 6. Roadways. Subtitle B. State Highway System from Chapter 228. State Highway Toll Projects (Texas)

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Subtitle B. State Highway System

Contents

Chapter 228. State Highway Toll Projects

Subchapter A. General Provisions

Section 228.001.  Definitions.

In this chapter:

(1)  "Air quality project" means a project or program of the department or another governmental entity that the commission determines will mitigate or prevent air pollution caused by the construction, maintenance, or use of public roads.

(2)  "Bond" means bonds, notes, or other obligations issued under Subchapter C or another law with respect to a toll project or system.

(3)  "Region" means:

(A)  a metropolitan statistical area and any county contiguous to that metropolitan statistical area; or

(B)  two adjacent districts of the department.

(4)  "System" means a toll project or any combination of toll projects designated as a system under Section 228.010.

(5)  "Toll project" has the meaning assigned by Section 201.001(b).

(6)  "Transportation project" means:

(A)  a tolled or nontolled state highway improvement project;

(B)  a toll project eligible for department cost participation under Section 222.103;

(C)  the acquisition, construction, maintenance, or operation of a rail facility or system under Chapter 91;

(D)  the acquisition, construction, maintenance, or operation of a state-owned ferry under Subchapter A, Chapter 342;

(E)  a public transportation project under Chapter 455 or 456;

(F)  the establishment, construction, or repair of an aviation facility under Chapter 21; and

(G)  a passenger rail project of another governmental entity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1171, Sec. 7.03, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 920, Sec. 1, eff. June 14, 2001; Acts 2003, 78th Leg., ch. 312, Sec. 3, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.03, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.001 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.34, eff. June 14, 2005.



Section 228.002.  Agreements With Public Entities.

(a) The department may enter into an agreement with a public entity to permit the entity, independently or jointly with the department, to design, develop, finance, construct, maintain, repair, or operate a toll project.

(b)  An agreement entered into under this section with a regional tollway authority governed by Chapter 366 may provide that a function described by Subsection (a) that is performed by a regional tollway authority is governed by the provisions of Chapter 366 applicable to the performance of the same function for a turnpike project under that chapter and the rules and procedures adopted by the regional tollway authority under that chapter, in lieu of the laws, rules, or procedures applicable to the department for the performance of the same function.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.17, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 312, Sec. 58, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.56, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.301 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.34, eff. June 14, 2005.



Section 228.003.  Agreements With Other Governmental Agencies.

(a) The department may, with the approval of the commission, enter into an agreement with another governmental agency or entity, including a federal agency, an agency of this or another state, including the United Mexican States or a state of the United Mexican States, or a political subdivision, to independently or jointly provide services, to study the feasibility of a toll project, or to finance, construct, operate, and maintain a toll project.  The department must obtain the approval of the governor to enter into an agreement with an agency of another state, the United Mexican States, or a state of the United Mexican States.

(b)  If the department enters into an agreement with a private entity, including a comprehensive development agreement under Subchapter E, Chapter 223, the department and the private entity may jointly enter into an agreement under Subsection (a).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.19, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 312, Sec. 66, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.63, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.18, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.307 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.34, eff. June 14, 2005.



Section 228.0031.  Agreements With Local Governments.

(a) In this section, "local government" means a:

(1)  county, municipality, special district, or other political subdivision of this state;

(2)  local government corporation created under Subchapter D, Chapter 431; or

(3)  combination of two or more entities described by Subdivision (1) or (2).

(b)  A local government may enter into an agreement with the department or a private entity under which the local government assists in the financing of the construction, maintenance, and operation of a turnpike project located in the government's jurisdiction in return for a percentage of the revenue from the project.

(c)  A local government may use any revenue available for road purposes, including bond and tax proceeds, to provide financing under Subsection (b).

(d)  An agreement under this section between a local government and a private entity must be approved by the department.

(e)  Revenue received by a local government under an agreement under this section must be used for transportation purposes.

Added by Acts 2005, 79th Leg., Ch. 1297, Sec. 1, eff. September 1, 2005.

Transferred from Transportation Code, Section 361.308 by Acts 2009, 81st Leg., R.S., Ch. 87, Sec. 23.002, eff. September 1, 2009.



Section 228.004.  Promotion Of Toll Project.

The department may,  notwithstanding Chapter 2113, Government Code, engage in marketing, advertising, and other activities to promote the development and use of toll projects and may enter into contracts or agreements necessary to procure marketing, advertising, or other promotional services from outside service providers.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1171, Sec. 7.08, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 920, Sec. 4, eff. June 14, 2001; Renumbered from Transportation Code Sec. 361.042 and amended by Acts 2003, 78th Leg., ch. 312, Sec. 6, eff. June 18, 2003 and Acts 2003, 78th Leg., ch. 1325, Sec. 15.06, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.032 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.34, eff. June 14, 2005.



Section 228.005.  Revenue Of Toll Project Or System.

Except as provided by Subchapter C, toll revenue or other revenue derived from a toll project or system that is collected or received by the department under this chapter, and a payment received by the department under a comprehensive development agreement for a toll project or system:

(1)  shall be deposited in the state highway fund; and

(2)  is exempt from the application of Section 403.095, Government Code.

Added by Acts 2005, 79th Leg., Ch. 281, Sec. 2.35, eff. June 14, 2005.



Section 228.0055.  Use Of Contract Payments And Other Revenue.

(a) Payments, project savings, refinancing dividends, and any other revenue received by the commission or the department under a comprehensive development agreement shall be used by the commission or the department to finance the construction, maintenance, or operation of transportation projects or air quality projects in the region.

(b)  The department shall allocate the distribution of funds to department districts in the region that are located in the boundaries of the metropolitan planning organization in which the project that is the subject of the comprehensive development agreement is located based on the percentage of toll revenue from users from each department district of the project.  To assist the department in determining the allocation, each entity responsible for collecting tolls for a project shall calculate on an annual basis the percentage of toll revenue from users of the project from each department district based on the number of recorded electronic toll collections.

(c)  The commission or the department may not:

(1)  revise the formula as provided in the department's unified transportation program, or its successor document, in a manner that results in a decrease of a department district's allocation because of a payment under Subsection (a); or

(2)  take any other action that would reduce funding allocated to a department district because of payments received under a comprehensive development agreement.

(d)  A metropolitan planning organization may not take any action that would reduce distribution of funds or other resources to a department district because of the use of a payment or other revenue under Subsection (a).

Added by Acts 2005, 79th Leg., Ch. 281, Sec. 2.35, eff. June 14, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 264, Sec. 6.01, eff. June 11, 2007.



Section 228.006.  Use Of Surplus Revenue.

(a) The commission shall authorize the use of surplus revenue of a toll project or system to pay the costs of a transportation project, highway project, or air quality project within a department district in which any part of the toll project is located.

(b)  The commission may not revise the formula as provided in the department's unified transportation program, or its successor document, in a manner that results in a decrease of a district's allocation because of a payment under Subsection (a).

(c)  The commission may not take an action under this section that violates, impairs, or is inconsistent with a bond order, trust agreement, or indenture governing the use of the surplus revenue.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1171, Sec. 7.16, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 312, Sec. 39, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.37, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.12, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.189 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.36, eff. June 14, 2005.



Section 228.007.  Toll Lanes. (a)

Subject to Section 228.201, the commission may by order authorize the department to charge a toll for the use of one or more lanes of a state highway, including a high occupancy vehicle lane designated under Section 224.153 or an exclusive lane designated under Section 224.1541.

(b)  If the commission authorizes the department to charge a toll under Subsection (a), the department may enter into an agreement with a regional tollway authority described in Chapter 366, a transit authority described in Chapter 451, 452, or 453, a coordinated county transportation authority under Chapter 460, a regional mobility authority under Chapter 370, a county acting under Chapter 284, or a transportation corporation:

(1)  to design, construct, operate, or maintain a toll lane under this section; and

(2)  to charge a toll for the use of one or more lanes of a state highway facility under this section.

(c)  The commission may by order authorize the department or the entity contracted to operate the toll lane to set the amount of toll charges.  Any toll charges shall be imposed in a reasonable and nondiscriminatory manner.

(d)   Revenue generated from toll charges and collection fees assessed by an entity with whom the department contracts under this section shall be allocated as required by the terms of the agreement.

Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.24, eff. Sept. 1, 1997. Amended by Acts 2003, 78th Leg., ch. 1049, Sec. 4, eff. June 20, 2003.

Transferred from Transportation Code, Section 224.154 by Acts 2005, 79th Leg., Ch. 281, Sec. 2.36, eff. June 14, 2005.



Section 228.008.  Tolls On Exclusive Lane.

The department may not charge a toll for the use of an exclusive lane unless:

(1)  the lanes or multilane facility adjacent to the exclusive lane is tolled; or

(2)  a vehicle that is authorized to use the tolled exclusive lane is authorized to use nontolled adjacent lanes or an adjacent nontolled multilane facility.

Transferred from Transportation Code, Section 224.1541(d) and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.37, eff. June 14, 2005.



Section 228.009.  Audit.

Notwithstanding any other law to the contrary, the department shall have an independent certified public accountant audit the department's books and accounts for each toll project or system at least annually.  The audit shall be conducted in accordance with the requirements of any trust agreement securing bonds issued under Subchapter C that is in effect at the time of the audit.  The cost of the audit may be treated as part of the cost of construction or operation of a toll project or system.  This section does not affect the ability of a state agency to audit the department's books and accounts.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 920, Sec. 5, eff. June 14, 2001; Renumbered from Transportation Code Sec. 361.054 and amended by Acts 2003, 78th Leg., ch. 312, Sec. 7, eff. June 18, 2003 and Acts 2003, 78th Leg., ch. 1325, Sec. 15.07, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.033 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.38, eff. June 14, 2005.



Section 228.010.  Establishment Of Toll Systems.

(a) If the commission determines that the mobility needs of a region of this state could be most efficiently and economically met by jointly operating two or more toll projects in that region as one operational and financial enterprise, it may create a system composed of those projects.  The commission may create more than one system in a region and may combine two or more systems in a region into one system.  The department may finance, acquire, construct, and operate additional toll projects in the region as additions to or expansions of a system if the commission determines that the toll project could most efficiently and economically be acquired or constructed if it were 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 toll project that is not part of the system or with the revenue of another system.

Added by Acts 2005, 79th Leg., Ch. 281, Sec. 2.39, eff. June 14, 2005.



Section 228.011.  Toll Projects In Certain Counties.

(a) This section applies only to a county acting under Chapter 284 and the development, construction, and operation of all or a portion of any of the following toll projects, a component of that project, or the functional equivalent of that project:

(1)  Beltway 8 Tollway East, between US 59 North and US 90 East;

(2)  Hardy Downtown Connector, consisting of the proposed direct connection from the Hardy Toll Road southern terminus at Loop 610 to downtown Houston;

(3)  State Highway 288, between US 59 and Grand Parkway South (State Highway 99);

(4)  US 290 Toll Lanes, between IH 610 West and the Grand Parkway Northwest (State Highway 99);

(5)  Fairmont Parkway East, between Beltway 8 East and Grand Parkway East (State Highway 99);

(6)  South Post Oak Road Extension, between IH 610 South and near the intersection of Beltway 8 and Hillcroft in the vicinity of the Fort Bend Parkway Tollway;

(7)  Westpark Toll Road Phase II, between Grand Parkway (State Highway 99) and FM 1463;

(8)  Fort Bend Parkway, between State Highway 6 and the Brazos River; and

(9)  Montgomery County Parkway, between State Highway 242 and the Grand Parkway (State Highway 99), and if the Grand Parkway project has not begun construction, a nontolled extension of the Montgomery County Parkway to allow a connection to Interstate Highway 45.

(b)  The county is the entity with the primary responsibility for the financing, construction, and operation of a toll project located in the county.  A county may develop, construct, and operate a project described in Subsection (a) at any time, regardless of whether it receives a first option notice from the commission or the department under Subsection (e).

(b-1)  Consistent with federal law, the department shall assist the county in the financing, construction, and operation of a toll project in the county by allowing the county to use state highway right-of-way owned by the department and to access the state highway system.  The commission or the department may not require the county to pay for the use of the right-of-way or access, except to reimburse the department as provided by this subsection.  The county shall pay an amount to reimburse the department for the department's actual costs to acquire the right-of-way.  If the department cannot determine that amount, the amount shall be determined based on the average historical right-of-way acquisition values for right-of-way located in proximity to the project on the date of original acquisition of the right-of-way.  Money received by the department under this subsection shall be deposited in the state highway fund and used in the department district in which the project is located.

(c)  The department and the county must enter into an agreement that includes reasonable terms to accommodate the use of the right-of-way by the county and to protect the interests of the commission and the department in the use of the right-of-way for operations of the department, including public safety and congestion mitigation on the right-of-way.

(d)  Subsection (b) does not limit the authority of the commission or the department to participate in the cost of acquiring, constructing, maintaining, or operating a project of the county under Chapter 284.

(e)  Before the department may enter into a contract for the financing, construction, or operation of a proposed or existing toll project any part of which is located in the county, the commission or department shall provide the county the first option to finance, construct, or operate, as applicable, the portion of the toll project located in the county:

(1)  on terms agreeable to the county; and

(2)  in a manner determined by the county to be consistent with the practices and procedures by which the county finances, constructs, or operates a project.

(f)  A county's right to exercise the first option under Subsection (e) is effective for six months after the date of the receipt by the county of written notice from the commission or the department meeting the requirements of Subsection (e) and describing in reasonable detail the location of the toll project, a projected cost estimate, sources and uses of funds, and a construction schedule.  If a county exercises the first option with respect to a toll project, the county must enter into one or more contracts for the financing, construction, or operation of the toll project within two years after the date on which all environmental requirements necessary for the development of the project are secured and all legal challenges to development are concluded.  A contract may include agreements for design of the project, acquisition of right-of-way, and utility relocation.  If the county does not enter into a contract during the two-year period, the commission or the department may enter into a contract for the financing, construction, or operation of the toll project with a different entity.

(g)  An agreement entered into by the county and the department in connection with a project under Chapter 284 that is financed, constructed, or operated by the county and that is on or directly connected to a highway in the state highway system does not create a joint enterprise for liability purposes.

(h)  If the county approves, the commission may remove any right-of-way to be used by a county under this section from the state highway system.  If the right-of-way used by a county under this section remains part of the state highway system, the county must comply with department design and construction standards.

(i)  Notwithstanding an action of a county taken under this section, the commission or department may take any action that is necessary in its reasonable judgment to comply with any federal requirement to enable this state to receive federal-aid highway funds.

(j)  Notwithstanding any other law, the commission and the department are not liable for any damages that result from a county's use of state highway right-of-way or access to the state highway system under this section, regardless of the legal theory, statute, or cause of action under which liability is asserted.

Added by Acts 2007, 80th Leg., R.S., Ch. 264, Sec. 7.01, eff. June 11, 2007.



For expiration of this section, see Subsection (r).

Section 228.0111.  Toll Projects Of Local Toll Project Entities.

(a) In this section:

(1)  "Local toll project entity" means:

(A)  a regional tollway authority under Chapter 366;

(B)  a regional mobility authority under Chapter 370; or

(C)  a county acting under Chapter 284.

(2)  "Market valuation" means the valuation of a toll project that:

(A)  is based on the terms and conditions established mutually by a local toll project entity and the department for the development, construction, and operation of a toll project, including the initial toll rate and the toll rate escalation methodology; and

(B)  takes into account a traffic and revenue study of the toll project using agreed-upon assumptions, an agreed project scope, market research, the estimated cost to finance, construct, maintain, and operate the project, and other information determined appropriate by the local toll project entity and the department.

(3)  "Region" has the meaning assigned by Section 228.001, except that the region of a county acting under Chapter 284 is composed of that county and the counties that are contiguous to that county.

(4)  "Toll project subaccount" means a subaccount created under Section 228.012.

(b)  This section does not apply to a toll project described in Section 228.011(a).

(c)  A local toll project entity is the entity with primary responsibility for the financing, construction, and operation of a toll project located within its boundaries.

(d)  Subsection (c) does not limit the authority of the commission or the department to participate in the cost of acquiring, constructing, maintaining, or operating a toll project of a local toll project entity.

(e)  Except as provided in this subsection, if a local toll project entity or the department determines that a toll project located within the boundaries of the local toll project entity should be developed, constructed, and operated as a toll project, the local toll project entity and the department mutually shall agree on the terms and conditions for the development, construction, and operation of the toll project, including the initial toll rate and the toll rate escalation methodology.  The terms and conditions for the procurement and operation of the State Highway 99 project shall be approved by the metropolitan planning organization in which the project is located.

(e-1)  If the local toll project entity and the department are unable to mutually agree on the terms and conditions for the development, construction, and operation of the toll project as required by Subsection (e), neither the local toll project entity nor the department may develop the project as a toll project.

(f)  After agreeing on the terms and conditions for a toll project under Subsection (e), or after metropolitan planning organization approval of the terms and conditions for the State Highway 99 project, the local toll project entity and the department mutually shall determine which entity, including a third party under contract with the local toll project entity or the department, will develop a market valuation of the toll project that is based on the terms and conditions established under Subsection (e).  The department and the local toll project entity have 90 days after the date of the receipt of a final draft version of the market valuation designated as "complete; subject to approval by the Texas Department of Transportation and (name of local toll project entity)" to mutually approve the market valuation included in the draft version or, in the alternative, negotiate and agree on a different market valuation.  If the department and the local toll project entity are unable to agree on a market valuation within the 90-day period, the market valuation in the draft version is considered to be final for purposes of this section and mutually approved on the last day of that period.

(f-1)  The department and a local toll project entity may agree to waive the requirement to develop a market valuation under this section.

(f-2)  If the department and the local toll project entity are unable to mutually determine which entity will develop the market valuation of the toll project under Subsection (f), neither the department nor the local toll project entity may develop, construct, or operate the project as a toll project.

(f-3)  A third party that develops a market valuation under Subsection (f) may not:

(1)  invest money in a private entity that participates in the financing, development, construction, or operation of that toll project, either directly or indirectly through investment in the entity's equities or obligations, provided that fees for services are not considered direct or indirect investment; or

(2)  directly or indirectly through one or more intermediaries, control, be controlled by, or be under common control with a private entity that participates in the financing, development, construction, or operation of that toll project, as the term "control" is described by Section 21.605, Business Organizations Code.

(g)  A local toll project entity has the first option to develop, finance, construct, and operate a toll project under the terms and conditions established under Subsection (e).  A local toll project entity, other than a regional mobility authority under Chapter 370, has six months after the date that the market valuation is mutually approved under Subsection (f) to decide whether to exercise the option.  For a project proposed to be located within the boundaries of a regional mobility authority under Chapter 370, after the market valuation is final under Subsection (f), the metropolitan planning organization for the region in which the project is located shall determine whether the toll project should be developed using the business terms incorporated in the market valuation.  If the metropolitan planning organization determines that the toll project should be developed using the business terms in the market valuation, the regional mobility authority has six months after the date the metropolitan planning organization decides whether to exercise the option to develop the project.  If a local toll project entity exercises the option with respect to a toll project under this subsection, the local toll project entity, after exercising the option and within two years after the date on which all environmental requirements necessary for the development of the toll project are secured and all legal challenges to development are concluded, must:

(1)  enter into a contract for the construction of the toll project; and

(2)  either:

(A)  commit to make a payment into a toll project subaccount in an amount equal to the value of the toll project as determined by the market valuation, to be used by the department to finance the construction of additional transportation projects in the region in which the toll project is located;

(B)  commit to construct, within the period agreed to by the local toll project entity and the department, additional transportation projects in the region in which the toll project is located with estimated construction costs equal to the market valuation of the toll project; or

(C)  for a regional mobility authority under Chapter 370, commit to using, for a period to be agreed upon by the department and the authority, all surplus revenue from the toll project for the purposes authorized by Section 370.174(b) in an amount equal to the valuation of the project.

(h)  If a local toll project entity exercises the option with respect to a toll project under Subsection (g) and has not begun the environmental review of the project, the local toll project entity shall begin the environmental review within six months of exercising the option.

(i)  If a local toll project entity does not exercise the option to develop, finance, construct, and operate a toll project under Subsection (g), or does not enter into a contract for the construction of the project and make a commitment described in Subsection (g)(2) within the two-year period prescribed in Subsection (g), the department has the option to develop, finance, construct, and operate the toll project under the terms and conditions agreed to under Subsection (e).  The department has two months after the date the local toll project entity fails to exercise its option or enter into a construction contract and make a commitment described in Subsection (g)(2) to decide whether to exercise its option.  If the department exercises its option with respect to a toll project under this subsection, the department, after exercising the option and within two years after the date on which all environmental requirements necessary for the development of the project are secured and all legal challenges to such development are concluded, must:

(1)  enter into a contract for the construction of the toll project; and

(2)  either:

(A)  commit to make a payment into the toll project subaccount in an amount equal to the value of the toll project as determined by the market valuation, to be used by the department to finance the construction of additional transportation projects in the region in which the toll project is located; or

(B)  commit to construct, within the period agreed to by the local toll project entity and the department, additional transportation projects in the region in which the toll project is located with estimated construction costs equal to the market valuation of the toll project.

(j)  If the department does not exercise the option to develop, finance, construct, and operate a toll project under Subsection (i), or does not enter into a contract for the construction of the project and make a commitment described in Subsection (i)(2) within the two-year period prescribed in Subsection (i), the local toll project entity and the department may meet again for the purpose of agreeing on revised terms and conditions for the development, construction, and operation of the toll project, and the local toll project entity and the department shall follow the process prescribed in Subsections (f)-(i).

(k)  Consistent with federal law, the commission and the department shall assist a local toll project entity in the development, financing, construction, and operation of a toll project for which the local toll project entity has exercised its option to develop, finance, construct, and operate the project under Subsection (g) by allowing the local toll project entity to use state highway right-of-way and to access the state highway system as necessary to construct and operate the toll project.  Notwithstanding any other law, the toll project entity and the commission may agree to remove the project from the state highway system and transfer ownership to the local toll project entity.  The commission or the department may not require a local toll project entity to pay for the use of the right-of-way or access, except to reimburse the department for actual costs incurred or to be incurred by the department that are owed to a third party, including the federal government, as a result of that use by the local toll project entity.  If a local toll project entity exercises its option to develop, construct, and operate a toll project under this section, the following shall be deducted from the amount of the toll project entity commitment under Subsection (g)(2):

(1)  an amount equal to the amount reimbursed under this subsection, if any; and

(2)  with respect to a county operating under Chapter 284, an amount equal to the costs of any road, street, or highway project undertaken by the county under Section 284.0031 before the acceptance of the market valuation, if the county requests a deduction and specifies in reasonable detail a description and cost of the project and the department agrees that any such road, street, or highway project constitutes an additional transportation project under Subsection (g)(2)(B).

(l)  A local toll project entity shall enter into an agreement with the department for any project for which the entity has exercised its option to develop, finance, construct, and operate the project under Subsection (g) and for which the entity intends to use state highway right-of-way.  An agreement entered into under this subsection must contain provisions necessary to ensure that the local toll project entity's construction, maintenance, and operation of the project complies with the requirements of applicable federal and state law.

(m)  Notwithstanding any other law, the commission and the department are not liable for any damages that result from a local toll project entity's use of state highway right-of-way or access to the state highway system under this section, regardless of the legal theory, statute, or cause of action under which liability is asserted.

(n)  An agreement entered into by a local toll project entity and the department in connection with a toll project that is financed, constructed, or operated by the local toll project entity and that is on or directly connected to a highway in the state highway system does not create a joint enterprise for liability purposes.

(o)  Notwithstanding an action of a local toll project entity taken under this section, the commission or department may take any action that in its reasonable judgment is necessary to comply with any federal requirement to enable this state to receive federal-aid highway funds.

(p)  A local toll project entity and the department may issue bonds, including revenue bonds and refunding bonds, or other obligations, and enter into credit agreements, to pay any costs associated with a project under this section, including the payments deposited to the applicable toll project subaccount, and the costs to construct, maintain, and operate additional transportation projects that the local toll project entity or the department commits to undertake in accordance with this section, as follows:

(1)  the bonds or other obligations and the proceedings authorizing the bonds or other obligations must be submitted to the attorney general for review and approval as required by Chapter 1202, Government Code;

(2)  the bonds or other obligations may be payable from and secured by revenue of one or more projects of the local toll project entity or the department, including toll road system revenues, or such other legally available revenue or funding sources as the local toll project entity or department shall determine;

(3)  the bonds or other obligations may mature serially or otherwise not more than 40 years from their date of issuance;

(4)  the bonds or other obligations are not a debt of and do not create a claim for payment against the revenue or property of the local toll project entity or the department, other than the revenue sources pledged for which the bonds or other obligations are issued; and

(5)  the local toll project entity and the department may issue obligations and enter into credit agreements under Chapter 1371, Government Code, and for purposes of that chapter, a local toll project entity and the department shall be considered a public utility and any cost authorized to be financed in accordance with this subsection is an eligible project.

(q)  The provisions of this section requiring metropolitan planning organization approval of the terms and conditions for the State Highway 99 project expire August 31, 2009.

(r)  This section expires August 31, 2011.

(s)  This section does not apply to:

(1)  any project for which the department has issued a request for qualifications or request for competing proposals and qualifications before May 1, 2007, except for the State Highway 161 project in Dallas County;

(2)  the eastern extension of the President George Bush Turnpike from State Highway 78 to IH 30 in Dallas County;

(3)  the Phase 3 and 4 extensions of the Dallas North Tollway in Collin and Denton Counties from State Highway 121 to the Grayson County line, and the planned future extension into Grayson County, regardless of which local toll project entity develops the extension into Grayson County;

(4)  the Lewisville Lake Bridge (and portions of FM 720 widening projects) in Denton County; or

(5)  the Southwest Parkway (State Highway 121) in Tarrant County from Dirks Road/Altamesa Boulevard to IH 30.

Added by Acts 2007, 80th Leg., R.S., Ch. 264, Sec. 7.01, eff. June 11, 2007.

Amended by:

Acts 2009, 81st Leg., 1st C.S., Ch. 1, Sec. 3, eff. July 10, 2009.



Section 228.012.  Project Subaccounts.

(a) The department shall create a separate account in the state highway fund to hold payments received by the department under a comprehensive development agreement, the surplus revenue of a toll project or system, and payments received under Sections 228.0111(g)(2) and (i)(2).  The department shall create subaccounts in the account for each project, system, or region.  Interest earned on money in a subaccount shall be deposited to the credit of that subaccount.

(b)  The department shall hold money in a subaccount in trust for the benefit of the region in which a project or system is located and may assign the responsibility for allocating money in a subaccount to a metropolitan planning organization in which the region is located.  Except as provided by Subsection (c), money shall be allocated to projects authorized by Section 228.0055 or Section 228.006, as applicable.

(c)  Money in a subaccount received from a county or the department under Section 228.0111 in connection with a project for which a county acting under Chapter 284 has the first option shall be allocated to transportation projects located in the county and the counties contiguous to that county.

(d)  Not later than January 1 of each odd-numbered year, the department shall submit to the Legislative Budget Board, in the format prescribed by the Legislative Budget Board, a report on cash balances in the subaccounts created under this section and expenditures made with money in those subaccounts.

(e)  The commission or the department may not:

(1)  revise the formula as provided in the department's unified transportation program or a successor document in a manner that results in a decrease of a department district's allocation because of the deposit of a payment into a project subaccount or a commitment to undertake an additional transportation project under Section 228.0111; or

(2)  take any other action that would reduce funding allocated to a department district because of the deposit of a payment received from the department or local toll project entity into a project subaccount or a commitment to undertake an additional transportation project under Section 228.0111.

Added by Acts 2007, 80th Leg., R.S., Ch. 264, Sec. 7.01, eff. June 11, 2007.



Subchapter B. Use And Operation Of Toll Projects Or Systems

Section 228.051.  Designation.

Subject to Section 228.201, the commission by order may designate one or more lanes of a segment of the state highway system as a toll project or system.

Added by Acts 2005, 79th Leg., Ch. 281, Sec. 2.40, eff. June 14, 2005.



Section 228.052.  Operation Of Toll Project Or System.

The department may enter into an agreement with one or more persons to provide, on terms approved by the department, personnel, equipment, systems, facilities, and services necessary to operate a toll project or system, including the operation of toll plazas and lanes and customer service centers and the collection of tolls.

Added by Acts 2005, 79th Leg., Ch. 281, Sec. 2.40, eff. June 14, 2005.



Section 228.053.  Revenue.

(a) The department may:

(1)  impose tolls for the use of each toll project or system and the different segments or parts of each project or system; and

(2)  notwithstanding anything in Chapter 202 to the contrary, contract with a person for the use of part of a toll project or system or lease part of a toll project or system for a gas station, garage, store, hotel, restaurant, railroad tracks, utilities, and telecommunications facilities and equipment and set the terms for the use or lease.

(b)  The tolls shall be set so that, at a minimum, the aggregate of tolls from the toll project or system:

(1)  provides a fund sufficient with other revenue and contributions, if any, to pay:

(A)  the cost of maintaining, repairing, and operating the project or system; and

(B)  the principal of and interest on the bonds issued under Subchapter C for the project or system as those bonds become due and payable; and

(2)  creates reserves for the purposes listed under Subdivision (1).

(c)  The tolls are not subject to supervision or regulation by any other state agency.

(d)  The tolls and other revenue derived from the toll project or system for which bonds were issued, except the part necessary to pay the cost of maintenance, repair, and operation and to provide reserves for those costs as may be provided in the order authorizing the issuance of the bonds or in the trust agreement securing the bonds, shall be set aside at regular intervals as may be provided in the order or trust agreement in a sinking fund that is pledged to and charged with the payment of:

(1)  interest on the bonds as it becomes due;

(2)  principal of the bonds as it becomes due;

(3)  necessary charges of paying agents for paying principal and interest; and

(4)  the redemption price or the purchase price of bonds retired by call or purchase as provided by the bonds.

(e)  Use and disposition of money to the credit of the sinking fund are subject to the order authorizing the issuance of the bonds or to the trust agreement.

(f)  The revenue and disbursements for each toll project or system shall be kept separately.  The revenue from one project may not be used to pay the cost of another project except as authorized by Sections 228.0055 and 228.006.

(g)  Money in the sinking fund, less the reserve provided by the order or trust agreement, if not used within a reasonable time to purchase bonds for cancellation, shall be applied to the redemption of bonds at the applicable redemption price.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.09, eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 920, Sec. 12, eff. June 14, 2001; Acts 2003, 78th Leg., ch. 312, Sec. 30, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.31, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.10, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.179 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.41, eff. June 14, 2005.



Section 228.054.  Failure Or Refusal To Pay Toll; Offense.

(a) Except as provided by Subsection (e), the operator of a vehicle, other than an authorized emergency vehicle, as defined by Section 541.201, that is driven or towed through a toll collection facility shall pay the proper toll.  The exemption from payment of a toll for an authorized emergency vehicle applies regardless of whether the vehicle is:

(1)  responding to an emergency;

(2)  displaying a flashing light; or

(3)  marked as an emergency vehicle.

(b)  The operator of a vehicle who drives or tows a vehicle through a toll collection facility and does not pay the proper toll commits an offense.

(c)  An offense under this section is a misdemeanor punishable by a fine not to exceed $250.

(d)  In this section, "authorized emergency vehicle" has the meaning assigned by Section 541.201.

(e)  Notwithstanding Subsection (a), the department may waive the requirement of the payment of a toll or may authorize the payment of a reduced toll for any vehicle or class of vehicles.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.15, eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 1246, Sec. 6, eff. Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch. 23, Sec. 1, eff. September 1, 2005.

Transferred from Transportation Code, Section 361.252 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.41, eff. June 14, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 258, Sec. 4.01, eff. September 1, 2007.



Section 228.055.  Administrative Fee; Notice; Offense.

(a) In the event of nonpayment of the proper toll as required by Section 228.054, on issuance of a written notice of nonpayment, the registered owner of the nonpaying vehicle is liable for the payment of both the proper toll and an administrative fee.

(b)  The department may impose and collect the administrative fee, so as to recover the cost of collecting the unpaid toll, not to exceed $100.  The department shall send a written notice of nonpayment to the registered owner of the vehicle at that owner's address as shown in the vehicle registration records of the Texas Department of Motor Vehicles by first class mail and may require payment not sooner than the 30th day after the date the notice was mailed.  The registered owner shall pay a separate toll and administrative fee for each event of nonpayment under Section 228.054.

(c)  The registered owner of a vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under Subsection (b) and fails to pay the proper toll and administrative fee within the time specified by the notice of nonpayment commits an offense.  Each failure to pay a toll or administrative fee under this subsection is a separate offense.

(d)  It is an exception to the application of Subsection (a) or (c) if the registered owner of the vehicle is a lessor of the vehicle and not later than the 30th day after the date the notice of nonpayment is mailed provides to the department:

(1)  a copy of the rental, lease, or other contract document covering the vehicle on the date of the nonpayment under Section 228.054, with the name and address of the lessee clearly legible; or

(2)  electronic data, in a format agreed on by the department and the lessor, other than a photocopy or scan of a rental or lease contract, that contains the information required under Sections 521.460(c)(1), (2), and (3) covering the vehicle on the date of the nonpayment under Section 228.054.

(d-1)  If the lessor provides the required information within the period prescribed under Subsection (d), the department may send a notice of nonpayment to the lessee at the address provided under Subsection (d) by first class mail before the 30th day after the date of receipt of the required information from the lessor.  The lessee of the vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under this subsection and fails to pay the proper toll and administrative fee within the time specified by the notice of nonpayment commits an offense.  The lessee shall pay a separate toll and administrative fee for each event of nonpayment.  Each failure to pay a toll or administrative fee under this subsection is a separate offense.

(e)  It is an exception to the application of Subsection (a) or (c) if the registered owner of the vehicle transferred ownership of the vehicle to another person before the event of nonpayment under Section 228.054 occurred, submitted written notice of the transfer to the department in accordance with Section 520.023, and, before the 30th day after the date the notice of nonpayment is mailed, provides to the department the name and address of the person to whom the vehicle was transferred.  If the former owner of the vehicle provides the required information within the period prescribed, the department may send a notice of nonpayment to the person to whom ownership of the vehicle was transferred at the address provided the former owner by first class mail before the 30th day after the date of receipt of the required information from the former owner.  The subsequent owner of the vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under this subsection and fails to pay the proper toll and administrative fee within the time specified by the notice of nonpayment commits an offense.  The subsequent owner shall pay a separate toll and administrative fee for each event of nonpayment under Section 228.054.  Each failure to pay a toll or administrative fee under this subsection is a separate offense.

(f)  An offense under this section is a misdemeanor punishable by a fine not to exceed $250.

(g)  The court in which a person is convicted of an offense under this section shall also collect the proper toll and administrative fee and forward the toll and fee to the department for deposit in the depository bank used for that purpose.

(h)  In this section, "registered owner" means the owner of a vehicle as shown on the vehicle registration records of the Texas Department of Motor Vehicles or the analogous department or agency of another state or country.

(i)  The department may contract, in accordance with Section 2107.003, Government Code, with a person to collect the unpaid toll and administrative fee before referring the matter to a court with jurisdiction over the offense.

Added by Acts 1995, 74th Leg., ch. 872, Sec. 2.15, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 1246, Sec. 7, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 312, Sec. 49, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.47, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.253 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.41, eff. June 14, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 918, Sec. 1, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch. 933, Sec. 2B.01, eff. September 1, 2009.



Section 228.056.  Presumptions; Prima Facie Evidence; Defenses.

(a) In the prosecution of an offense under Section 228.054 or 228.055, proof that the vehicle was driven or towed through the toll collection facility without payment of the proper toll may be shown by a video recording, photograph, electronic recording, or other appropriate evidence, including evidence obtained by automated enforcement technology.

(b)  In the prosecution of an offense under Section 228.055(c), (d-1), or (e):

(1)  it is presumed that the notice of nonpayment was received on the fifth day after the date of mailing;

(2)  a computer record of the Texas Department of Motor Vehicles of the registered owner of the vehicle is prima facie evidence of its contents and that the defendant was the registered owner of the vehicle when the underlying event of nonpayment under Section 228.054 occurred; and

(3)  a copy of the rental, lease, or other contract document, or the electronic data provided to the department under Section 228.055(d), covering the vehicle on the date of the underlying event of nonpayment under Section 228.054 is prima facie evidence of its contents and that the defendant was the lessee of the vehicle when the underlying event of nonpayment under Section 228.054 occurred.

(c)  It is a defense to prosecution under Section 228.055(c), (d-1), or (e) that the motor vehicle in question was stolen before the failure to pay the proper toll occurred and had not been recovered before the failure to pay occurred, but only if the theft was reported to the appropriate law enforcement authority before the earlier of:

(1)  the occurrence of the failure to pay; or

(2)  eight hours after the discovery of the theft.

Added by Acts 1995, 74th Leg., ch. 872, Sec. 2.15, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 1246, Sec. 8, eff. Sept. 1, 2001.

Transferred from Transportation Code, Section 361.254 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.41, eff. June 14, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 918, Sec. 2, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch. 933, Sec. 2B.02, eff. September 1, 2009.



Section 228.057.  Electronic Toll Collection.

(a) For purposes of this section, a "transponder" means a device, placed on or within an automobile, that is capable of transmitting information used to assess or to collect tolls.  A transponder is "insufficiently funded" when there are no remaining funds in the account in connection with which the transponder was issued.

(b)  Any peace officer of this state may seize a stolen or insufficiently funded transponder and return it to the department, except that an insufficiently funded transponder may not be seized sooner than the 30th day after the date the department has sent a notice of delinquency to the holder of the account.

(c)  The department may enter into an agreement with one or more persons to market and sell transponders for use on department toll roads.

(d)  The department may charge reasonable fees for administering electronic toll collection customer accounts.

(e)  Electronic toll collection customer account information, including contact and payment information and trip data, is confidential and not subject to disclosure under Chapter 552, Government Code.

(f)  A contract for the acquisition, construction, maintenance, or operation of a toll project must ensure the confidentiality of all electronic toll collection customer account information under Subsection (e).

Added by Acts 1995, 74th Leg., ch. 872, Sec. 2.15, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 1246, Sec. 9, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 312, Sec. 50, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.48, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.255 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.41, eff. June 14, 2005.



Section 228.058.  Automated Enforcement Technology.

(a) To aid in the collection of tolls and in the enforcement of toll violations, the department may use automated enforcement technology that it determines is necessary, including automatic vehicle license plate identification photography and video surveillance, by electronic imaging or photographic copying.

(b)  Automated enforcement technology approved by the department under Subsection (a) may be used only for the purpose of producing, depicting, photographing, or recording an image of a license plate attached to the front or rear of a vehicle.

(c)  This section does not authorize the use of automated enforcement technology for any other purpose.

(d)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 258, Sec. 4.07, eff. September 1, 2007.

Added by Acts 2001, 77th Leg., ch. 1246, Sec. 10, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 312, Sec. 51, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.49, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.256 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.41, eff. June 14, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 258, Sec. 4.07, eff. September 1, 2007.



Section 228.059.  Toll Collection And Enforcement By Other Entity; Offense.

An entity operating a toll lane pursuant to Section 228.007(b) has, with regard to toll collection and enforcement for that toll lane, the same powers and duties as the department under this chapter.  A person who fails to pay a toll or administrative fee imposed by the entity commits an offense.  Each failure to pay a toll or administrative fee imposed by the entity is a separate offense.  An offense under this section is a misdemeanor punishable by a fine not to exceed $250, and the provisions of Section 228.056 apply to the prosecution of the offense under this section.  The entity may use revenues for improvement, extension, expansion, or maintenance of the toll lane.

Added by Acts 2007, 80th Leg., R.S., Ch. 264, Sec. 13.01, eff. June 11, 2007.



Subchapter C. Toll Revenue Bonds

Section 228.101.  Construction Costs.

(a) The cost of construction, improvement, extension, or expansion of a toll project or system under this chapter includes the cost of:

(1)  the actual acquisition, design, development, planning, financing, construction, improvement, extension, or expansion of the project or system;

(2)  acquisition of real property, rights-of-way, property rights, easements, and interests;

(3)  the acquisition of machinery, equipment, software, and intellectual property;

(4)  interest before, during, and for one year after construction, improvement, extension, or expansion;

(5)  traffic estimates, engineering, legal and other advisory services, plans, specifications, surveys, appraisals, cost and revenue estimates, and other expenses necessary or incident to determining the feasibility of the construction, improvement, extension, or expansion;

(6)  necessary or incidental administrative, legal, and other expenses;

(7)  financing; and

(8)  placement of the project or system in operation and expenses related to the initial operation of the project or system.

(b)  Costs attributable to a toll project or system for which bonds are issued that are incurred before the issuance of the bonds may be reimbursed from the proceeds of the sale of the bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 920, Sec. 2, eff. June 14, 2001.

Transferred from Transportation Code, Section 361.004 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.102.  Issuance Of Bonds.

(a) The commission by order may authorize the issuance of toll revenue bonds to pay all or part of the cost of a toll project or system.  The proceeds of a bond issue may be used solely for the payment of the project or system for which the bonds were issued and may not be divided between or among two or more projects.  Each project is a separate undertaking, the cost of which shall be determined separately.

(b)  As determined in the order authorizing the issuance, the bonds of each issue shall:

(1)  be dated;

(2)  bear interest at the rate or rates provided by the order and beginning on the dates provided by the order and as authorized by law, or bear no interest;

(3)  mature at the time or times provided by the order, not exceeding 40 years from their date or dates; and

(4)  be made redeemable before maturity, at the price or prices and under the terms provided by the order.

(c)  The commission may sell the bonds at public or private sale in the manner and for the price it determines to be in the best interest of the department.

(d)  The proceeds of each bond issue shall be disbursed in the manner and under the restrictions, if any, the commission provides in the order authorizing the issuance of the bonds or in the trust agreement securing the bonds.

(e)  If the proceeds of a bond issue are less than the toll project or system cost, additional bonds may be issued in the same manner to pay the costs of a project or system.  Unless otherwise provided in the order authorizing the issuance of the bonds or in the trust agreement securing the bonds, the additional bonds are on a parity with and are payable, without preference or priority, from the same fund as the bonds first issued.  In addition, the commission may issue bonds for a project or system secured by a lien on the revenue of the project or system subordinate to the lien on the revenue securing other bonds issued for the project or system.

(f)  If the proceeds of a bond issue exceed the cost of the toll project or system for which the bonds were issued, the surplus shall be segregated from the other money of the commission and used only for the purposes specified in the order authorizing the issuance.

(g)  In addition to other permitted uses, the proceeds of a bond issue may be used to pay costs incurred before the issuance of the bonds, including costs of environmental review, design, planning, acquisition of property, relocation assistance, construction, and operation.

(h)  Bonds issued and delivered under this subchapter and interest coupons on the bonds are a security under Chapter 8, Business & Commerce Code.

(i)  Bonds issued under this subchapter and income from the bonds, including any profit made on the sale or transfer of the bonds, are exempt from taxation in this state.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.05, eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 920, Sec. 11, eff. June 14, 2001; Acts 2003, 78th Leg., ch. 312, Sec. 22, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.22, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.04, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.171 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.103.  Applicability Of Other Law; Conflicts.

All laws affecting the issuance of bonds by governmental entities, including Chapters 1201, 1202, 1204, 1207, and 1371, Government Code, apply to bonds issued under this subchapter.  To the extent of a conflict between those laws and this subchapter, the provisions of this subchapter prevail.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.386, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 312, Sec. 23, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.23, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.05, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.172 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.104.  Payment Of Bonds; Credit Of State Not Pledged.

(a) The principal of, interest on, and any redemption premium on bonds issued by the commission under this subchapter are payable solely from:

(1)  the revenue of the toll project or system for which the bonds are issued, including tolls pledged to pay the bonds;

(2)  the proceeds of bonds issued for the project or system;

(3)  the amounts deposited in a debt service reserve fund as required by the trust agreement securing bonds issued for the project or system;

(4)  amounts received under a credit agreement relating to the project or system for which the bonds are issued;

(5)  surplus revenue of another project or system as authorized by Section 228.006; and

(6)  amounts received by the department:

(A)  as pass-through tolls under Section 222.104;

(B)  under an agreement with a local governmental entity entered into under Section 228.254;

(C)  under other agreements with a local governmental entity relating to the project or system for which the bonds are issued; and

(D)  under a comprehensive development agreement entered into under Section 223.201.

(b)  Bonds issued under this subchapter do not constitute a debt of the state or a pledge of the faith and credit of the state.  Each bond must contain on its face a statement to the effect that:

(1)  the state, the commission, and the department are not obligated to pay the bond or the interest on the bond from a source other than the amount pledged to pay the bond and the interest on the bond; and

(2)  the faith and credit and the taxing power of the state are not pledged to the payment of the principal of or interest on the bond.

(c)  The commission and the department may not incur financial obligations that cannot be paid from tolls or revenue derived from owning or operating toll projects or systems or from money provided by law.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.06, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 312, Sec. 24, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.24, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.06, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.173 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.105.  Sources Of Payment Of And Security For Toll Revenue Bonds.

Notwithstanding any other provisions of this subchapter, toll revenue bonds issued by the commission may:

(1)  be payable from and secured by:

(A)  payments made under an agreement with a local governmental entity as provided by Section 228.254;

(B)  the proceeds of bonds issued for the toll project or system;

(C)  amounts deposited in a debt service reserve fund as required by the trust agreement securing bonds issued for the project or system; or

(D)  surplus revenue of another toll project or system as authorized by Section 228.006; and

(2)  state on their faces any pledge of revenue or taxes and any security for the bonds under the agreement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2003, 78th Leg., ch. 312, Sec. 25, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.25, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.07, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.174 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.106.  Interim Bonds.

(a) The commission may, before issuing definitive bonds, issue interim bonds, with or without coupons, exchangeable for definitive bonds.

(b)  An order authorizing interim bonds may provide that the interim bonds recite that the bonds are issued under this subchapter.  The recital is conclusive evidence of the validity and the regularity of the bonds' issuance.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 15.27, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.1751 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.107.  Effect Of Lien.

(a) A lien on or a pledge of revenue, a contract payment, or a pledge of money to the payment of bonds issued under this subchapter is valid and effective in accordance with Chapter 1208, Government Code, and:

(1)  is enforceable in any court 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 in any court against any person having a claim, in tort, contract, or other remedy, against the commission or the department without regard to whether the person has notice of the lien or pledge.

(b)  An order authorizing the issuance of bonds is not required to be recorded except in the regular records of the department.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 15.27, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.1752 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.108.  Approval Of Bonds By Attorney General.

(a) The commission shall submit to the attorney general for examination the record of proceedings relating to bonds authorized under this subchapter.  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. 15.27, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.1753 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.109.  Trust Agreement.

(a) Bonds issued under this subchapter may be secured by a trust agreement between the commission and a corporate trustee that is a trust company or a bank that has the powers of a trust company.

(b)  A trust agreement may pledge or assign the tolls and other revenue to be received but may not convey or mortgage any part of a toll project or system.

(c)  A trust agreement may not evidence a pledge of the revenue of a toll project or system except:

(1)  to pay the cost of maintaining, repairing, and operating the project or system;

(2)  to pay the principal of, interest on, and any redemption premium on the bonds as they become due and payable;

(3)  to create and maintain reserves for the purposes described by Subdivisions (1) and (2), as prescribed by Section 228.053; and

(4)  as otherwise provided by law.

(d)  Notwithstanding Subsection (c), surplus revenue may be used for a transportation or air quality project as authorized by Section 228.006.

(e)  A trust agreement may:

(1)  set forth the rights and remedies of the bondholders and the trustee;

(2)  restrict the individual right of action by bondholders as is customary in trust agreements or trust indentures securing corporate bonds and debentures; and

(3)  contain provisions the commission determines reasonable and proper for the security of the bondholders.

(f)  The expenses incurred in carrying out a trust agreement may be treated as part of the cost of operating the toll project or system.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.08, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 312, Sec. 27, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.28, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.176 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.110.  Provisions Protecting And Enforcing Rights And Remedies Of Bondholders.

A trust agreement or order providing for the issuance of bonds may contain provisions to protect and enforce the rights and remedies of the bondholders, including:

(1)  covenants establishing the commission's duties relating to:

(A)  the acquisition of property;

(B)  the design, development, financing, construction, improvement, expansion, maintenance, repair, operation, and insurance of the toll project or system in connection with which the bonds were authorized; and

(C)  the custody, safeguarding, and application of money;

(2)  covenants prescribing events that constitute default;

(3)   covenants relating to the rights, powers, liabilities, or duties that arise on the breach of a duty of the commission, including the right of the trustee to bring actions against the commission or the department in any state court to enforce the covenants in the agreement, and the sovereign immunity of the state is waived for that purpose; and

(4)  provisions for the employment of consulting engineers in connection with the construction or operation of the project or system.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2003, 78th Leg., ch. 312, Sec. 28, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.29, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.08, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.177 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.111.  Furnishing Of Indemnifying Bonds Or Pledge Of Securities.

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 the department requires.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1999, 76th Leg., ch. 344, Sec. 5.015, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 312, Sec. 29, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.30, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.09, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.178 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.112.  Feasibility Study By Municipality, County, Or Private Group.

(a) One or more municipalities, one or more counties, a combination of municipalities and counties, 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 toll revenue bonds for the construction of a proposed toll project or system;

(2)  the improvement, extension, or expansion of an existing project or system; or

(3)  the use of private participation under Subchapter E, Chapter 223.

(b)  Money spent under Subsection (a) for a proposed toll project or system is reimbursable, with the consent of the commission, to the person paying the expenses out of the proceeds from toll revenue bonds issued for or other proceeds that may be used for the financing, design, development, construction, improvement, extension, expansion, or operation of the project.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2003, 78th Leg., ch. 312, Sec. 33, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.32, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.183 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.113.  Trust Fund.

(a) All money received under this subchapter, whether as proceeds from the sale of bonds or as revenue, is a trust fund to be held and applied as provided by this subchapter.  Notwithstanding any other law, including Section 9, Chapter 1123, Acts of the 75th Legislature, Regular Session, 1997, and without the prior approval of the comptroller, funds held under this subchapter shall be held in trust by a banking institution chosen by the department or, at the discretion of the department, in trust in the state treasury outside the general revenue fund.

(b)  The order authorizing the issuance of bonds or the trust agreement securing the bonds shall provide that an officer to whom or a bank or trust company to which the money is paid shall act as trustee of the money and shall hold and apply the money for the purpose of the order or trust agreement, subject to this subchapter and the order or trust agreement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1999, 76th Leg., ch. 1306, Sec. 3, eff. Aug. 30, 1999; Acts 2003, 78th Leg., ch. 312, Sec. 35, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.33, eff. June 21, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 8, Sec. 1.11, eff. Jan. 11, 2004.

Transferred from Transportation Code, Section 361.185 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.114.  Remedies.

Except to the extent restricted by a trust agreement, a holder of a bond issued under this subchapter and a trustee under a trust agreement may:

(1)  protect and enforce by a legal proceeding in any court a right under:

(A)  this subchapter or another law of this state;

(B)  the trust agreement; or

(C)  the order authorizing the issuance of the bond; and

(2)  compel the performance of a duty this subchapter, the trust agreement, or the order requires the commission or the department or an officer of the commission or the department to perform, including the imposing of tolls.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2003, 78th Leg., ch. 312, Sec. 36, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.34, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.186 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.115.  Exemption From Taxation Or Assessment.

(a) The commission is exempt from taxation of or assessments on:

(1)  a toll project or system;

(2)  property the department acquires or uses under this subchapter; or

(3)  income from property described by Subdivision (1) or (2).

(b)  Bonds issued under this subchapter and income from the bonds, including any profit made on the sale or transfer of the bonds, are exempt from taxation in this state.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.12, 2.13, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 312, Sec. 37, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.35, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.187 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.116.  Valuation Of Bonds Securing Deposit Of Public Funds.

Bonds of the commission may secure the deposit of public funds of the state or a political subdivision of the state to the extent of the lesser of the face value of the bonds or their market value.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2003, 78th Leg., ch. 312, Sec. 38, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.36, eff. June 21, 2003.

Transferred from Transportation Code, Section 361.188 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.42, eff. June 14, 2005.



Section 228.117.  Funding For Department District.

The commission may not revise the formula as provided in the department's unified transportation program, or its successor document, in a manner that results in a decrease of a district's allocation because revenue bonds are issued for a toll project located within the department district.

Added by Acts 2005, 79th Leg., Ch. 281, Sec. 2.43, eff. June 14, 2005.



Subchapter D. Transfer Of Toll Project

Section 228.151.  Lease, Sale, Or Transfer Of Toll Project Or System.

(a) The department may lease, sell, or transfer in another manner a toll project or system, including a nontolled state highway or a segment of a nontolled state highway converted to a toll project under Subchapter E, to a governmental entity that has the authority to operate a tolled highway or a local government corporation created under Chapter 431.

(b)  The commission and the governor must approve the transfer of the toll project or system as being in the best interests of the state and the entity receiving the project or system.

Transferred from Transportation Code, Subchapter H, Chapter 361 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.44, eff. June 14, 2005.



Section 228.152.  Discharge Of Outstanding Bonded Indebtedness.

An agreement to lease, sell, or convey a toll project or system under Section 228.151 must provide for the discharge and final payment or redemption of the department's outstanding bonded indebtedness for the project or system.

Transferred from Transportation Code, Subchapter H, Chapter 361 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.44, eff. June 14, 2005.



Section 228.153.  Repayment Of Department's Expenditures.

(a) Except as provided by Subsection (b), an agreement to lease, sell, or convey a toll project or system under Section 228.151 must provide for the repayment of any expenditures of the department for the financing, design, development, construction, operation, or maintenance of the highway that have not been reimbursed with the proceeds of bonds issued for the highway.

(b)  The commission may waive repayment of all or a portion of the expenditures if it finds that the transfer will result in substantial net benefits to the state, the department, and the public that equal or exceed the amount of repayment waived.

Transferred from Transportation Code, Subchapter H, Chapter 361 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.44, eff. June 14, 2005.



Section 228.154.  Approval Of Agreement By Attorney General.

(a) An agreement for the lease, sale, or conveyance of a toll project or system under this subchapter shall be submitted to the attorney general for approval as part of the records of proceedings relating to the issuance of bonds of the governmental entity.

(b)  If the attorney general determines that the agreement is in accordance with law, the attorney general shall approve the agreement and deliver to the commission a copy of the legal opinion of the attorney general stating that approval.

Transferred from Transportation Code, Subchapter H, Chapter 361 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.44, eff. June 14, 2005.



Subchapter E. Limitation On Toll Facility Determination; Conversion Of Nontolled State Highway

Section 228.201.  Limitation On Toll Facility Designation.

(a) Except as provided by Section 228.2015, the department may not operate a nontolled state highway or a segment of a nontolled state highway as a toll project, and may not transfer a highway or segment to another entity for operation as a toll project, unless:

(1)  the commission by order designated the highway or segment as a toll project before the contract to construct the highway or segment was awarded;

(2)  the highway or segment was open to traffic as a turnpike project on or before September 1, 2005;

(3)  the project was designated as a toll project in a plan or program of a metropolitan planning organization on or before September 1, 2005;

(4)  the highway or segment is reconstructed so that the number of nontolled lanes on the highway or segment is greater than or equal to the number in existence before the reconstruction;

(5)  a facility is constructed adjacent to the highway or segment so that the number of nontolled lanes on the converted highway or segment and the adjacent facility together is greater than or equal to the number in existence on the converted highway or segment before the conversion;

(6)  subject to Subsection (b), the highway or segment was open to traffic as a high-occupancy vehicle lane on May 1, 2005; or

(7)  the commission converts the highway or segment to a toll facility by:

(A)  making the determination required by Section 228.202;

(B)  conducting the hearing required by Section 228.203; and

(C)  obtaining county and voter approval as required by Sections 228.207 and 228.208.

(b)  The department may operate or transfer a high-occupancy vehicle lane under Subsection (a)(6) as a tolled lane only if the department or other entity operating the lane allows vehicles occupied by a specified number of passengers to use the lane without paying a toll.

Added by Acts 2005, 79th Leg., Ch. 281, Sec. 2.45, eff. June 14, 2005.



Section 228.202.  Commission Determination.

The commission may by order convert a nontolled state highway or a segment of a nontolled state highway to a toll project if it determines that the conversion will improve overall mobility in the region or is the most feasible and economic means to accomplish necessary expansion, improvements, or extensions to that segment of the state highway system.

Transferred from Transportation Code, Section 362.0041(a) and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.46, eff. June 14, 2005.



Section 228.203.  Public Hearing.

Prior to converting a state highway or a segment of a state highway under this subchapter, the commission shall conduct a public hearing for the purpose of receiving comments from interested persons concerning the proposed conversion.  Notice of the hearing shall be published in the Texas Register, one or more newspapers of general circulation, and a newspaper, if any, published in the county or counties in which the involved highway is located.

Transferred from Transportation Code, Section 362.0041(b) and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.46, eff. June 14, 2005.



Section 228.204.  Rules.

The commission shall adopt rules implementing this subchapter, including criteria and guidelines for the approval of a conversion of a highway.

Transferred from Transportation Code, Section 362.0041(c) and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.46, eff. June 14, 2005.



Section 228.205.  Queen Isabella Causeway.

The commission may not convert the Queen Isabella Causeway in Cameron County to a toll project.

Transferred from Transportation Code, Section 362.0041(d) and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.46, eff. June 14, 2005.



Section 228.206.  Toll Revenue.

Toll revenue collected under this section:

(1)  shall be deposited in the state highway fund;

(2)  may be used by the department to finance the improvement, extension, expansion, or operation of the converted segment of highway and may not be collected except for those purposes; and

(3)  is exempt from the application of Section 403.095, Government Code.

Transferred from Transportation Code, Section 362.0041(f) and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.46, eff. June 14, 2005.



Section 228.207.  County And Voter Approval.

The commission may only convert a state highway or a segment of a state highway under this subchapter if the conversion is approved by:

(1)  the commissioners court of each county within which the highway or segment is located; and

(2)  the qualified voters who vote in an election under Section 228.208 and who reside in the limits of:

(A)  a county if any part of the highway or segment to be converted is located in an unincorporated area of the county; or

(B)  a municipality in which the highway or segment to be converted is wholly located.

Transferred from Transportation Code, Section 362.0041(g) and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.46, eff. June 14, 2005.



Section 228.208.  Election To Approve Conversion.

(a) If notified by the department of the proposed conversion of a highway or segment under this subchapter, and after approval of the conversion by the appropriate commissioners courts as required by Section 228.207(1), the commissioners court of each county described by Section 228.207(2)(A) or the governing body of a municipality described by Section 228.207(2)(B), as applicable, shall call an election for the approval or disapproval of the conversion.

(b)  If a county or municipality orders an election, the county or municipality shall publish notice of the election in a newspaper of general circulation published in the county or municipality at least once each week for three consecutive weeks, with the first publication occurring at least 21 days before the date of the election.

(c)  An order or resolution ordering an election and the election notice required by Subsection (b) must show, in addition to the requirements of the Election Code, the location of each polling place and the hours that the polls will be open.

(d)  The proposition submitted in the election must distinctly state the highway or segment proposed to be converted and the limits of that highway or segment.

(e)  At an election ordered under this section, the ballots shall be printed to permit voting for or against the proposition: "The conversion of (highway) from (beginning location) to (ending location) to a toll project."

(f)  A proposed conversion is approved only if it is approved by a majority of the votes cast.

(g)  A notice of the election and a certified copy of the order canvassing the election results shall be sent to the commission.

Added by Acts 2005, 79th Leg., Ch. 281, Sec. 2.46, eff. June 14, 2005.



Subchapter F. Joint Toll Projects

Section 228.251.  Definitions.

In this subchapter:

(1)  "Bonds" includes certificates, notes, and other obligations of an issuer authorized by statute, municipal home-rule charter, or the Texas Constitution.

(2)  "Local 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 defined district, or a nonprofit corporation, including a transportation corporation created under Chapter 431.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.22, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 312, Sec. 77, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.74, eff. June 21, 2003.

Transferred from Transportation Code, Section 362.001 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.47, eff. June 14, 2005.



Section 228.252.  Applicability Of Other Law; Conflicts.

(a) This subchapter is cumulative of all laws affecting the issuance of bonds by local governmental entities, particularly, but not by way of limitation, provisions of Chapters 1201 and 1371, Government Code, and Subchapters A-C, Chapter 1207, Government Code, are applicable to and apply to all bonds issued under this subchapter, regardless of any classification of any such local governmental entities thereunder; provided, however, in the event of any conflict between such laws and this subchapter, the provisions of this subchapter prevail.

(b)  This subchapter is cumulative of all laws affecting the commission, the department, and the local governmental entities, except that in the event any other law conflicts with this subchapter, the provisions of this subchapter prevail.  Chapters 1201 and 1371, Government Code, and Subchapters A, B, and C, Chapter 1207, Government Code, apply to bonds issued by the commission under this subchapter.

(c)  The department may enter into all agreements necessary or convenient to effectuate the purposes of this subchapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.23, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, Sec. 30.20, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1420, Sec. 8.388, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 312, Sec. 71, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.68, eff. June 21, 2003.

Transferred from Transportation Code, Section 362.003 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.47, eff. June 14, 2005.



Section 228.253.  Use Of Federal Funds.

The department may use federal funds for any purpose described by this subchapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Transferred from Transportation Code, Section 362.006 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.47, eff. June 14, 2005.



Section 228.254.  Agreements Between Authority And Local Governmental Entities.

(a) Under authority of Section 52, Article III, Texas Constitution, a local governmental entity other than a nonprofit corporation may, upon the required vote of the qualified voters, in addition to all other debts, issue bonds or enter into and make payments under agreements with the department, not to exceed 40 years in term, in any amount not to exceed one-fourth of the assessed valuation of real property within the local governmental entity, except that the total indebtedness of any municipality shall never exceed the limits imposed by other provisions of the constitution, and levy and collect taxes to pay the interest thereon and provide a sinking fund for the redemption thereof, for the purposes of construction, maintenance, and operation of toll projects or systems of the department, or in aid thereof.

(b)  In addition to Subsection (a), a local governmental entity may, within any applicable constitutional limitations, agree with the department to issue bonds or enter into and make payments under an agreement to construct, maintain, or operate any portion of a toll project or system of the department.

(c)  To make payments under an agreement under Subsection (b) or pay the interest on bonds issued under Subsection (b) and to provide a sinking fund for the bonds or the contract, a local governmental entity may:

(1)  pledge revenue from any available source, including annual appropriations;

(2)  levy and collect taxes; or

(3)  provide for a combination of Subdivisions (1) and (2).

(d)  The term of an agreement under this section may not exceed 40 years.

(e)  Any election required to permit action under this subchapter must be held in conformance with Chapter 1251, Government Code, or other law applicable to the local governmental entity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.26, eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 1420, Sec. 8.389, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 312, Sec. 72, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.69, eff. June 21, 2003.

Transferred from Transportation Code, Section 362.007 and amended by Acts 2005, 79th Leg., Ch. 281, Sec. 2.47, eff. June 14, 2005.


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