81R5090 KJM-D
By: Carona S.B. No. 1353
A BILL TO BE ENTITLED
AN ACT
relating to contract provisions in comprehensive development
agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 371, Transportation Code,
as added by Chapter 264 (S.B. 792), Acts of the 80th Legislature,
Regular Session, 2007, is amended by adding Section 371.105 to read
as follows:
Sec. 371.105. PROHIBITION AGAINST CONCESSION PAYMENTS;
REVENUE SHARING. (a) In this section, "concession payment" means
an up-front payment made by a private participant in return for
which the private participant is granted a right to operate and
receive revenue from a toll project.
(b) A toll project entity is prohibited from accepting a
concession payment as part of a comprehensive development
agreement.
(c) A toll project entity may enter into a revenue sharing
agreement with a private participant as part of a comprehensive
development agreement.
SECTION 2. Section 371.151(a), Transportation Code, as
added by Chapter 264 (S.B. 792), Acts of the 80th Legislature,
Regular Session, 2007, is amended to read as follows:
(a) Before a toll project entity enters into a contract for
the construction of a toll project, the entity shall publish in the
manner provided by Section 371.152 information regarding:
(1) project financing, including:
(A) the total amount of debt that has been and
will be assumed to acquire, design, construct, operate, and
maintain the toll project;
(B) a description of how the debt will be repaid,
including a projected timeline for repaying the debt; and
(C) the projected amount of interest that will be
paid on the debt;
(2) whether the toll project will continue to be
tolled after the debt has been repaid;
(3) a description of the method that will be used to
set toll rates;
(4) a description of any terms in the contract
relating to competing facilities, including any penalties
associated with the construction of a competing facility;
(5) a description of any terms in the contract
relating to a termination for convenience provision, including any
information regarding how the value of the project will be
calculated for the purposes of making termination payments;
(6) the initial toll rates, the methodology for
increasing toll rates, and the projected toll rates at the end of
the term of the contract; and
(7) the terms of any revenue sharing agreement [the
projected total amount of concession payments].
SECTION 3. (a) The changes in law made by Section 371.151,
Transportation Code, as amended by this Act, and Section 371.105,
Transportation Code, as added by this Act, apply only to a
comprehensive development agreement entered into on or after the
effective date of this Act.
(b) A comprehensive development agreement entered into
before the effective date of this Act is governed by the law in
effect on the day the agreement was finalized, and the former law is
continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2009.