Texas House Bill HB2574

Texas 2011 - 82nd Regular

• Out of House Committee: 4/19/11
• Introduced: 3/8/11
• Refer: 3/15/11
• Report Pass: 4/11/11

Caption

Relating to the authority of regional mobility authorities to enter into comprehensive development agreements.

Impact

One significant impact of HB2574 is the delineation of authority regarding ownership and revenue from transportation projects. The bill specifies that unless explicitly authorized by the legislature, regional mobility authorities cannot grant private entities ownership or leasehold interests in transportation projects, nor can they permit these entities to retain revenues generated from the operation of such projects. This measure ensures that the public retains control over essential transportation infrastructure, while still allowing private participation in construction and possibly financing.

Summary

House Bill 2574 pertains to the authority of regional mobility authorities in Texas concerning their ability to enter into comprehensive development agreements (CDAs) with private entities for transportation projects. The bill seeks to amend the Transportation Code, particularly Section 370.305, which governs how regional mobility authorities can conceptualize and execute CDAs for the construction and operation of transportation infrastructure. Under the proposed changes, these authorities have designated powers to enter agreements that could encompass not just construction, but also financing and operations, albeit with restrictions designed to prevent excessive control by private entities.

Contention

Opponents of HB2574 may argue that the restrictions placed on private entities could hinder the potential for innovative public-private partnerships that are essential for advancing substantial infrastructure projects. Debates may arise regarding the balance between public authority and private sector involvement in transportation project funding and development. Proponents may contend that maintaining a public majority in these agreements is crucial for accountability and the safeguarding of public resources, particularly in large-scale projects that could significantly impact state highways and public transport systems.