Texas Senate Bill SB1353

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/17/09
• Voted on by Senate: 4/22/09
• Out of House Committee: 5/20/09

Caption

Relating to contract provisions in comprehensive development agreements.

Impact

The implications of SB1353 on state laws include a shift in how toll project finances are structured. By disallowing concession payments, the legislation seeks to reduce the potential financial risks associated with upfront payments that might not align with future toll revenues. This change is expected to enhance fiscal transparency, requiring toll project entities to publish detailed financial information about project financing and toll rates. These provisions may encourage more equitable financial arrangements that consider long-term operational sustainability over immediate revenue capture.

Summary

SB1353 relates to the regulation of contract provisions in comprehensive development agreements, specifically focusing on toll projects in Texas. The bill introduces a prohibition against concession payments within these agreements, which are upfront payments made by private participants in return for the right to operate toll projects. Instead, the bill allows for revenue sharing agreements between toll project entities and private participants, intending to create a more stable financial structure for the operation of toll projects.

Contention

Notable points of contention surrounding SB1353 may arise from stakeholders concerned about the implications of restricting concession payments. Opponents argue that without the flexibility to negotiate upfront payments, private entities may be less interested in participating in toll projects due to perceived financial uncertainty. Supporters, however, assert that this move protects public interests from potentially burdensome financial arrangements that do not provide adequate returns on investment or adequately plan for future toll rate increases. Ultimately, the balance struck by this bill could affect stakeholder participation in transportation projects within Texas.