By: Carona S.B. No. 1383
A BILL TO BE ENTITLED
AN ACT
relating to the creation and administration of the Texas Local
Participation Transportation Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 403, Government Code, is amended by
adding Subchapter O to read as follows:
SUBCHAPTER O. TEXAS LOCAL PARTICIPATION TRANSPORTATION PROGRAM
Sec. 403.351. DEFINITIONS. In this subchapter:
(1) "Commission" means the Texas Transportation
Commission.
(2) "Department" means the Texas Department of
Transportation.
(3) "Fund" means the Texas local participation
transportation fund.
(4) "Local project sponsor" means:
(A) a municipality;
(B) a county, including a county acting under
Chapter 284, Transportation Code;
(C) a regional mobility authority under Chapter
370, Transportation Code; or
(D) a regional tollway authority under Chapter
366, Transportation Code.
(5) "Program" means the Texas Local Participation
Transportation Program created under this subchapter.
(6) "Project" means a tolled or non-tolled facility:
(A) authorized under Section 222.104,
Transportation Code; and
(B) sponsored by a local project sponsor.
(7) "Total project cost" in connection with a project
means the estimated costs of:
(A) planning, environmental assessment,
regulatory permitting and compliance, design, construction,
construction oversight and inspection, right-of-way acquisition,
utility relocation, program management, legal services, and
financial advisory services; and
(B) financing, but only to the extent financing
costs relate to the securitization of amounts received from the
fund.
Sec. 403.352. TEXAS LOCAL PARTICIPATION TRANSPORTATION
FUND. (a) The Texas local participation transportation fund is a
dedicated account in the general revenue fund.
(b) The fund is composed of:
(1) money transferred to the fund at the direction of
the legislature;
(2) gifts and grants contributed to the fund;
(3) interest and earnings received from investments of
money in the fund; and
(4) money repaid by a local project sponsor under a
loan made under this subchapter.
(c) Money from the state highway fund may not be transferred
to the fund.
(d) Money in the fund may be used only for the
administration of the program and may not be appropriated for any
other purpose.
(e) Sections 403.095 and 404.071 do not apply to the fund.
Sec. 403.353. GIFTS AND GRANTS. The comptroller may
solicit and accept gifts and grants to the fund. A gift or grant to
the fund may be used in the same manner as other money in the fund,
subject to any limitation or requirement placed on the gift or grant
by the donor or granting entity.
Sec. 403.354. RULEMAKING AUTHORITY. The comptroller may
adopt rules and guidelines relating to the comptroller's
responsibilities under this subchapter.
Sec. 403.355. TEXAS LOCAL PARTICIPATION TRANSPORTATION
PROGRAM. (a) The comptroller shall administer a program to
encourage local project sponsors to participate in the delivery of
eligible projects by providing the sponsors financial assistance
from the fund.
(b) In administering the program, the comptroller shall
develop a process for certifying the eligibility of projects
nominated by local project sponsors for financial assistance from
the fund and for certifying that a project promotes economic
development and diversification in the area in which the project is
located. The process must require a local project sponsor to submit
a request for certification that includes:
(1) a description of the anticipated impact of the
project on local economic development and diversification;
(2) a proposed schedule for the development and
completion of the project, including an estimate of the date on
which the project will be open to traffic;
(3) sufficient information to determine that the
applicant is a local project sponsor eligible to receive funding
under this subchapter;
(4) a specific description of the project, including
project limits and connections with other transportation
facilities;
(5) identification of the scope of work to be
completed and a detailed estimate of total project costs, developed
after coordination with the department concerning the scope and
design criteria for the project;
(6) documentation demonstrating that the project is
included in the unified transportation program approved by the
commission and any applicable transportation plan for the area in
which the project is located;
(7) evidence that a copy of the request for
certification submitted to the comptroller was also submitted to
the department; and
(8) a proposed plan for funding the project that:
(A) is in compliance with Subsection (c); and
(B) specifically identifies the contribution of
local sources to the total project cost.
(c) An eligible project may not receive more than 50 percent
of the total project cost from the fund.
Sec. 403.356. DETERMINATION OF CONTRIBUTION. For purposes
of determining the amount contributed by local sources to the total
project cost under Section 403.355, a local project sponsor may
include, as applicable, funds on hand, ad valorem taxes, local
option taxes or fees dedicated to the project, economic development
grants, other project-specific gifts and grants, and, if the
project is planned as a toll facility, toll revenues.
Sec. 403.357. ADMINISTRATION OF PROGRAM. In administering
the program the comptroller shall:
(1) prepare an annual report projecting the amount of
funding available based on estimates of future deposits to the fund
and of money to be repaid to the fund by local project sponsors
under loans made under this subchapter; and
(2) establish guidelines for disbursements from the
fund that link disbursements with proposed project development and
completion schedules submitted under Section 403.355(b)(2).
Sec. 403.358. PROJECT CERTIFICATION. If the comptroller
finds that a project for which a request for certification is
submitted is eligible for financial assistance from the fund and
that the project promotes economic development and diversification
in the area in which the project is located, the comptroller shall
issue a certification to the local project sponsor to begin
negotiations with the department under Section 222.104,
Transportation Code. The certification must identify the maximum
total funds available for the project in consideration of the total
project costs and the money available in the fund.
Sec. 403.359. FUND DISBURSEMENTS. (a) The disbursement of
funds by the comptroller is subject to the department's
certification that the project is consistent with the unified
transportation program and any applicable transportation plan for
the area in which the project is located, and that the project may
be effectively integrated with the state highway system.
(b) After a project is certified under Section 403.358 and
Subsection (a), the comptroller may make disbursements from the
fund to a local project sponsor in the form of a grant or loan in
accordance with guidelines established under Section 403.357(2).
(c) The comptroller may not make a disbursement from the
fund for a project until there is a signed agreement under Section
222.104, Transportation Code. The department may not be required
under the signed agreement to contribute any funding toward the
cost of the project.
(d) The comptroller may make disbursements from the fund to
reimburse the portion of total project costs composed of funds
contributed from local sources. The payment shall be made in the
same manner as a pass-through toll payment made under Section
222.104, Transportation Code.
Sec. 403.360. PROJECT DEVELOPMENT. An agreement negotiated
under Section 222.104, Transportation Code, for a project that
receives funding under this subchapter must:
(1) prescribe the roles and responsibilities of the
parties for all significant work to be performed; and
(2) provide that a local project sponsor is required
to meet state design criteria, construction specifications, and
contract administration procedures unless the department grants an
exception.
Sec. 403.361. FEES. In connection with each application
for certification of a project under this subchapter, the
comptroller shall impose and collect from the local project sponsor
an application fee in an amount sufficient to cover the costs
incurred by the comptroller in administering this subchapter.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.