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Texas Senate Bill SB1669

Texas 2009 - 81st Regular

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11 81R33471 JD-F
22 By: Nichols S.B. No. 1669
33 Substitute the following for S.B. No. 1669:
44 By: Phillips C.S.S.B. No. 1669
55
66
77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the authority and powers of regional mobility
1010 authorities.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Subdivisions (12) and (14), Section 370.003,
1313 Transportation Code, are amended to read as follows:
1414 (12) "Surplus revenue" means revenue that exceeds:
1515 (A) an authority's debt service requirements for
1616 a transportation project, including the redemption or purchase
1717 price of bonds subject to redemption or purchase as provided in the
1818 applicable bond proceedings;
1919 (A-1) an authority's payment obligations under a
2020 contract or agreement authorized by this chapter;
2121 (B) coverage requirements of a bond indenture for
2222 a transportation project;
2323 (C) costs of operation and maintenance for a
2424 transportation project;
2525 (D) cost of repair, expansion, or improvement of
2626 a transportation project;
2727 (E) funds allocated for feasibility studies; and
2828 (F) necessary reserves as determined by the
2929 authority.
3030 (14) "Transportation project" means:
3131 (A) a turnpike project;
3232 (B) a system;
3333 (C) a passenger or freight rail facility,
3434 including:
3535 (i) tracks;
3636 (ii) a rail line;
3737 (iii) switching, signaling, or other
3838 operating equipment;
3939 (iv) a depot;
4040 (v) a locomotive;
4141 (vi) rolling stock;
4242 (vii) a maintenance facility; and
4343 (viii) other real and personal property
4444 associated with a rail operation;
4545 (D) a roadway with a functional classification
4646 greater than a local road or rural minor collector;
4747 (E) a ferry;
4848 (F) an airport, other than an airport that on
4949 September 1, 2005, was served by one or more air carriers engaged in
5050 scheduled interstate transportation, as those terms were defined by
5151 14 C.F.R. Section 1.1 on that date;
5252 (G) a pedestrian or bicycle facility;
5353 (H) an intermodal [intermodel] hub;
5454 (I) an automated conveyor belt for the movement
5555 of freight;
5656 (J) a border crossing inspection station;
5757 (K) an air quality improvement initiative;
5858 (L) a public utility facility;
5959 (M) a transit system;
6060 (M-1) a parking area, structure, or facility, or
6161 a collection device for parking fees; [and]
6262 (N) if applicable, projects and programs listed
6363 in the most recently approved state implementation plan for the
6464 area covered by the authority, including an early action compact;
6565 and
6666 (O) improvements in a transportation
6767 reinvestment zone designated under Subchapter E, Chapter 222.
6868 SECTION 2. Subsection (a), Section 370.004, Transportation
6969 Code, is amended to read as follows:
7070 (a) The cost of acquisition, construction, improvement,
7171 extension, or expansion of a transportation project under this
7272 chapter includes the cost of:
7373 (1) the actual acquisition, construction,
7474 improvement, extension, or expansion of the transportation
7575 project;
7676 (2) the acquisition of real property, rights-of-way,
7777 property rights, easements, and other interests in real property;
7878 (3) machinery and equipment;
7979 (4) interest payable before, during, and for not more
8080 than three years after acquisition, construction, improvement,
8181 extension, or expansion as provided in the bond proceedings;
8282 (5) traffic estimates, revenue estimates, engineering
8383 and legal services, plans, specifications, surveys, appraisals,
8484 construction cost estimates, and other expenses necessary or
8585 incidental to determining the feasibility of the acquisition,
8686 construction, improvement, extension, or expansion;
8787 (6) necessary or incidental administrative, legal,
8888 and other expenses;
8989 (7) compliance with laws, regulations, and
9090 administrative rulings, including any costs associated with
9191 necessary environmental mitigation measures;
9292 (8) financing;
9393 (9) the assumption of debts, obligations, and
9494 liabilities of an entity relating to a transportation project
9595 transferred to an authority by that entity; [and]
9696 (10) expenses related to the initial operation of the
9797 transportation project; and
9898 (11) payment obligations of an authority under a
9999 contract or agreement authorized by this chapter in connection with
100100 the acquisition, construction, improvement, extension, expansion,
101101 or financing of the transportation project.
102102 SECTION 3. Subsections (a), (f), and (g), Section 370.033,
103103 Transportation Code, are amended to read as follows:
104104 (a) An authority, through its board, may:
105105 (1) adopt rules for the regulation of its affairs and
106106 the conduct of its business;
107107 (2) adopt an official seal;
108108 (3) study, evaluate, design, finance, acquire,
109109 construct, maintain, repair, and operate transportation projects,
110110 individually or as one or more systems, provided that a
111111 transportation project that is subject to Subpart C, 23 C.F.R. Part
112112 450, is:
113113 (A) included in the plan approved by the
114114 applicable metropolitan planning organization; and
115115 (B) consistent with the statewide transportation
116116 plan and the statewide transportation improvement program;
117117 (4) acquire, hold, and dispose of property in the
118118 exercise of its powers and the performance of its duties under this
119119 chapter;
120120 (5) enter into contracts or operating agreements with
121121 a similar authority, another governmental entity, or an agency of
122122 the United States, a state of the United States, the United Mexican
123123 States, or a state of the United Mexican States;
124124 (6) enter into contracts or agreements necessary or
125125 incidental to its powers and duties under this chapter;
126126 (7) cooperate and work directly with property owners
127127 and governmental entities and officials to support an activity
128128 required to promote or develop a transportation project;
129129 (8) employ and set the compensation and benefits of
130130 administrators, consulting engineers, attorneys, accountants,
131131 construction and financial experts, superintendents, managers,
132132 full-time and part-time employees, agents, consultants, and other
133133 persons as the authority considers necessary or useful;
134134 (8-a) participate in the state travel management
135135 program administered by the comptroller for the purpose of
136136 obtaining reduced airline fares and reduced travel agent fees,
137137 provided that the comptroller may charge the authority a fee not to
138138 exceed the costs incurred by the comptroller in providing services
139139 to the authority;
140140 (9) notwithstanding Sections 221.003 and 222.031 and
141141 subject to Subsections (j) and (m), apply for, directly or
142142 indirectly receive and spend loans, gifts, grants, and other
143143 contributions for any purpose of this chapter, including the
144144 construction of a transportation project, and receive and spend
145145 contributions of money, property, labor, or other things of value
146146 from any source, including the United States, a state of the United
147147 States, the United Mexican States, a state of the United Mexican
148148 States, the commission, the department, a subdivision of this
149149 state, or a governmental entity or private entity, to be used for
150150 the purposes for which the grants, loans, or contributions are
151151 made, and enter into any agreement necessary for the grants, loans,
152152 or contributions;
153153 (10) install, construct, or contract for the
154154 construction of public utility facilities, direct the time and
155155 manner of construction of a public utility facility in, on, along,
156156 over, or under a transportation project, or request the removal or
157157 relocation of a public utility facility in, on, along, over, or
158158 under a transportation project;
159159 (11) organize a corporation under Chapter 431 for the
160160 promotion and development of transportation projects;
161161 (12) adopt and enforce rules not inconsistent with
162162 this chapter for the use of any transportation project, including
163163 tolls, fares, or other user fees, speed and weight limits, and
164164 traffic and other public safety rules, provided that an authority
165165 must consider the same factors that the Texas Turnpike Authority
166166 division of the department must consider in altering a prima facie
167167 speed limit under Section 545.354;
168168 (13) enter into leases, operating agreements, service
169169 agreements, licenses, franchises, and similar agreements with a
170170 public or private party governing the party's use of all or any
171171 portion of a transportation project and the rights and obligations
172172 of the authority with respect to a transportation project;
173173 (14) borrow money from or enter into a loan agreement
174174 or other arrangement with the state infrastructure bank, the
175175 department, the commission, or any other public or private entity;
176176 and
177177 (15) do all things necessary or appropriate to carry
178178 out the powers and duties expressly granted or imposed by this
179179 chapter.
180180 (f) An authority and a governmental entity may enter into a
181181 contract, agreement, interlocal agreement, or other similar
182182 arrangement under which the authority may plan, design, construct,
183183 or operate a transportation project on behalf of the governmental
184184 entity. An authority may enter into a contract with the department
185185 under which the authority will plan, develop, operate, or maintain
186186 a transportation project on behalf of the department, subject to
187187 the transportation project being in the authority's area of
188188 jurisdiction. A contract or agreement under this subsection may
189189 contain terms and conditions as may be approved by an authority,
190190 including payment obligations of the governmental entity and the
191191 authority.
192192 (g) Payments to be made to an authority under a contract or
193193 agreement described by Subsection (f) constitute operating
194194 expenses of the transportation project or system that is to be
195195 operated under the contract. The contract may extend for the number
196196 of years as agreed to by the parties.
197197 SECTION 4. Subsections (a) and (b), Section 370.071,
198198 Transportation Code, are amended to read as follows:
199199 (a) An authority may pay the expenses of studying the cost
200200 and feasibility of a transportation project, the design and
201201 engineering of a transportation project, and any other expenses
202202 relating to the preparation and issuance of bonds for a proposed
203203 transportation project by:
204204 (1) using legally available revenue derived from an
205205 existing transportation project;
206206 (2) borrowing money and issuing bonds or entering into
207207 a loan agreement payable out of legally available revenue
208208 anticipated to be derived from the operation of an existing
209209 transportation project; [or]
210210 (3) pledging to the payment of the bonds or a loan
211211 agreement legally available revenue anticipated to be derived from
212212 the operation of transportation projects or revenue legally
213213 available to the authority from another source; or
214214 (4) pledging to the payment of the bonds or a loan
215215 agreement the proceeds from the sale of other bonds.
216216 (b) Money spent under this section for a proposed
217217 transportation project must be reimbursed to the transportation
218218 project from which the money was spent from the proceeds of bonds
219219 issued for the acquisition and construction of the proposed
220220 transportation project, unless the transportation projects are or
221221 become part of a system under Section 370.034.
222222 SECTION 5. Subsection (c), Section 370.072, Transportation
223223 Code, is amended to read as follows:
224224 (c) Money in the feasibility study fund may be used only to
225225 pay the expenses of studying the cost and feasibility of a
226226 transportation project, the design and engineering of a
227227 transportation project, and any other expenses relating to:
228228 (1) the preparation and issuance of bonds for the
229229 acquisition and construction of a proposed transportation project;
230230 (2) the financing of the improvement, extension, or
231231 expansion of an existing transportation project; and
232232 (3) private participation, as authorized by law, in
233233 the financing of a proposed transportation project, the refinancing
234234 of an existing transportation project or system, or the
235235 improvement, extension, or expansion of a transportation project.
236236 SECTION 6. Subsection (a), Section 370.073, Transportation
237237 Code, is amended to read as follows:
238238 (a) One or more municipalities, counties, or other
239239 governmental entities, a combination of municipalities, counties,
240240 and other governmental entities, or a private group or combination
241241 of individuals in this state may pay all or part of the expenses of
242242 studying the cost and feasibility of a transportation project, the
243243 design and engineering of a transportation project, and any other
244244 expenses relating to:
245245 (1) the preparation and issuance of bonds for the
246246 acquisition or construction of a proposed transportation project by
247247 an authority;
248248 (2) the improvement, extension, or expansion of an
249249 existing transportation project of the authority; or
250250 (3) the use of private participation under applicable
251251 law in connection with the acquisition, construction, improvement,
252252 expansion, extension, maintenance, repair, or operation of a
253253 transportation project by an authority.
254254 SECTION 7. Subsection (a), Section 370.113, Transportation
255255 Code, is amended to read as follows:
256256 (a) The principal of, interest on, and any redemption
257257 premium on bonds issued by an authority are payable solely from:
258258 (1) the revenue of the transportation project for
259259 which the bonds are issued;
260260 (2) payments made under an agreement with the
261261 commission, the department, or other governmental entity as
262262 authorized [provided] by this chapter [Subchapter G];
263263 (3) money derived from any other source available to
264264 the authority, other than money derived from a transportation
265265 project that is not part of the same system or money derived from a
266266 different system, except to the extent that the surplus revenue of a
267267 transportation project or system has been pledged for that purpose;
268268 [and]
269269 (4) amounts received under a credit agreement relating
270270 to the transportation project for which the bonds are issued; and
271271 (5) the proceeds of the sale of other bonds.
272272 SECTION 8. Section 370.114, Transportation Code, is amended
273273 to read as follows:
274274 Sec. 370.114. EFFECT OF LIEN. (a) A lien on or a pledge of
275275 revenue from a transportation project under this chapter or on a
276276 reserve, replacement, or other fund established in connection with
277277 a bond issued under this chapter or an agreement entered into under
278278 this chapter:
279279 (1) is enforceable at the time of payment for and
280280 delivery of the bond or on the effective date of the agreement;
281281 (2) applies to each item on hand or subsequently
282282 received;
283283 (3) applies without physical delivery of an item or
284284 other act; and
285285 (4) is enforceable against any person having a claim,
286286 in tort, contract, or other remedy, against the applicable
287287 authority without regard to whether the person has notice of the
288288 lien or pledge.
289289 (b) A copy of any bond resolution shall [is not required to]
290290 be maintained [recorded except] in the regular records of the
291291 authority.
292292 SECTION 9. Section 370.172, Transportation Code, is amended
293293 by amending Subsection (b) and adding Subsection (k) to read as
294294 follows:
295295 (b) Tolls, fees, fares, or other charges must be set at
296296 rates or amounts so that the aggregate of tolls, fees, fares, or
297297 other charges from an authority's transportation project, together
298298 with other revenue of the transportation project:
299299 (1) provides revenue sufficient to pay:
300300 (A) the cost of maintaining, repairing, and
301301 operating the transportation project; [and]
302302 (B) the principal of and interest on any bonds
303303 issued for the transportation project as those bonds become due and
304304 payable; and
305305 (C) any other payment obligations of an authority
306306 under a contract or agreement authorized under this chapter; and
307307 (2) creates reserves for a purpose listed under
308308 Subdivision (1).
309309 (k) Notwithstanding any other provision of this chapter to
310310 the contrary, an authority may pledge all or any part of its
311311 revenues and any other funds available to the authority to the
312312 payment of any obligations of the authority under a contract or
313313 agreement authorized by this chapter.
314314 SECTION 10. Subsection (c), Section 370.173,
315315 Transportation Code, is amended to read as follows:
316316 (c) The authority may use money in the revolving fund to:
317317 (1) finance the acquisition, construction,
318318 maintenance, or operation of a transportation project, including
319319 the extension, expansion, or improvement of a transportation
320320 project;
321321 (2) provide matching money required in connection with
322322 any federal, state, local, or private aid, grant, or other funding,
323323 including aid or funding by or with public-private partnerships;
324324 (3) provide credit enhancement either directly or
325325 indirectly for bonds issued to acquire, construct, extend, expand,
326326 or improve a transportation project;
327327 (4) provide security for or payment of future or
328328 existing debt for the design, acquisition, construction,
329329 operation, maintenance, extension, expansion, or improvement of a
330330 transportation project or system;
331331 (5) borrow money and issue bonds, promissory notes, or
332332 other indebtedness payable out of the revolving fund for any
333333 purpose authorized by this chapter; and
334334 (6) provide for any other reasonable purpose that
335335 assists in the financing of an authority as authorized by this
336336 chapter.
337337 SECTION 11. Section 370.177, Transportation Code, is
338338 amended by adding Subsection (l) to read as follows:
339339 (l) In addition to the other powers and duties provided by
340340 this chapter, with regard to its toll collection and enforcement
341341 powers for its turnpike projects or other toll projects developed,
342342 financed, constructed, and operated under an agreement, including a
343343 comprehensive development agreement, with the authority or another
344344 entity, an authority has the same powers and duties as the
345345 department under Chapter 228, a county under Chapter 284, and a
346346 regional tollway authority under Chapter 366.
347347 SECTION 12. Subsections (a) and (b), Section 370.251,
348348 Transportation Code, are amended to read as follows:
349349 (a) Except as provided by Subsection (a-1), the governing
350350 body of an authority is a board of directors consisting of
351351 representatives of each county in which a transportation project of
352352 the authority is located or is proposed to be located. The
353353 commissioners court of each county that initially forms the
354354 authority shall appoint at least two directors to the board.
355355 Additional directors may be appointed to the board at the time of
356356 initial formation by agreement of the counties creating the
357357 authority to ensure fair representation of political subdivisions
358358 in the counties of the authority that will be affected by a
359359 transportation project of the authority, provided that the number
360360 of directors must be an odd number. The commissioners court of a
361361 county that is subsequently added to the authority shall appoint at
362362 least one director to the board. The governor shall appoint one
363363 director to the board who shall serve as the presiding officer of
364364 the board and shall appoint an additional director to the board if
365365 an appointment is necessary to maintain an odd number of directors
366366 on the board.
367367 (b) The appointment [Unless the commissioners courts] of
368368 additional directors from a county subsequently added to an [the
369369 counties of the] authority or from a [unanimously agree otherwise,
370370 the commissioners court of each] county of an authority that
371371 contains an operating transportation project of the authority shall
372372 be by a process unanimously agreed to by the commissioners courts of
373373 all the counties of the authority [appoint one additional
374374 director].
375375 SECTION 13. Section 370.303, Transportation Code, is
376376 amended by amending Subsections (a) and (b) and adding Subsections
377377 (b-1) and (g) to read as follows:
378378 (a) A governmental entity [other than a nonprofit
379379 corporation] may, consistent with the Texas Constitution, issue
380380 bonds, notes, or other obligations or enter into and make payments
381381 under agreements with an authority in connection with the
382382 financing, acquisition, construction, [to acquire, construct,
383383 maintain,] or operation of [operate] a transportation project by an
384384 authority, whether inside or outside the geographic boundaries of
385385 the governmental entity, including agreements to pay the principal
386386 of, and interest on, bonds, notes, or other obligations issued by
387387 the authority and make payments under any related credit
388388 agreements. The entity may impose and collect taxes to pay the
389389 interest on the bonds and to provide a sinking fund for the
390390 redemption of the bonds.
391391 (b) In addition to the powers provided by Subsection (a), a
392392 governmental entity may, to the extent constitutionally permitted,
393393 agree with an authority to:
394394 (1) issue bonds, notes, or other obligations;
395395 (2) [,] create:
396396 (A) a taxing district;
397397 (B) a transportation reinvestment zone under
398398 Subchapter E, Chapter 222; or
399399 (C) an entity to promote economic development;
400400 (3) collect and remit to an authority taxes, fees, or
401401 assessments collected for purposes of developing transportation
402402 projects;
403403 (4) [,] fund public improvements to promote economic
404404 development;[,] or
405405 (5) enter into and make payments under an agreement to
406406 acquire, construct, maintain, or operate any portion of a
407407 transportation project of the authority.
408408 (b-1) An agreement under Subsection (b) may include a means
409409 for a local governmental entity to pledge or otherwise provide
410410 funds for a transportation project that benefits the governmental
411411 entity to be developed by the authority.
412412 (g) An agreement under this section may contain repayment or
413413 reimbursement obligations of an authority.
414414 SECTION 14. Section 370.304, Transportation Code, is
415415 amended to read as follows:
416416 Sec. 370.304. ADDITIONAL AGREEMENTS OF AUTHORITY. An
417417 authority may enter into any contract, loan agreement, or other
418418 agreement necessary or convenient to achieve the purposes of this
419419 subchapter.
420420 SECTION 15. Subsection (a), Section 371.051,
421421 Transportation Code, as added by Chapter 103 (H.B. 570), Acts of the
422422 80th Legislature, Regular Session, 2007, is amended to read as
423423 follows:
424424 (a) A toll project entity may not use motor vehicle
425425 registration or other information derived from a license plate on a
426426 vehicle using a toll project, including information obtained by the
427427 use of automated enforcement technology described by Section
428428 228.058, for purposes other than those related to:
429429 (1) toll collection, [and] toll collection
430430 enforcement, and toll project development and operation; and
431431 (2) law enforcement purposes on request by a law
432432 enforcement agency[, subject to Section 228.058(d)].
433433 SECTION 16. Subsection (d), Section 370.317,
434434 Transportation Code, is repealed.
435435 SECTION 17. This Act takes effect immediately if it
436436 receives a vote of two-thirds of all the members elected to each
437437 house, as provided by Section 39, Article III, Texas Constitution.
438438 If this Act does not receive the vote necessary for immediate
439439 effect, this Act takes effect September 1, 2009.